Posts Tagged ‘Real estate broker’

This is why Housing Sales Matter to our Economy

In a study by the National Association of Realtors (NAR) to determine the impact a single home sale has on the economy. They included data compiled by the Bureau of Economic Analysis, the Census Bureau, Macroeconomic Advisors and the Joint Center for Housing Studies at Harvard. After reviewing the information, they determined the total economic impact of a typical home sale in the United States is an astonishing $56,464!

This figure contributed economically to things such as home construction, real estate brokerages, mortgage lending, title insurance, rental & leasing, home appraisals, and moving truck services.

When a House is Sold in the United States:

$14,958 – Income generated from real estate related industries

Home sales turn into money for the economy

$5,647 – Additional expenditure on consumer items such as on furniture, appliances, and paint service

$3,509 – Expenditure on remodeling within 2 years of purchase

It also generates an economic multiplier impact. There is a greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be:$11,575

Home sales induce additional new homes being built. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy which is estimated in the U.S. to be:$20,775

This study was done on a national level, where home prices and the cost of living is less than in southern California. San Diego home prices are also well more than double the national average. While the above figures only cover nationally average numbers to come up with $56,464, the economic impact for a place like San Diego would be far more!

 

For more information on this topic:

619.384.2248
RyanYourRealtor@gmail.com
Visit my Website: http://ryanyourrealtor.com

Buying A Home In One Market While Selling In Another

If you end up being transferred for work or making a major move for personal reasons, you could end up selling in one market and buying in another. The ideal scenario would be to sell in a sellers market like the San Francisco Bay area or Seattle, and buy in a buyers’ market, such as Providence, RI. The worst-case scenario, of course,  is to do the opposite.

Here are some tips for buyers and sellers in any market:

Know before you go

Today, real estate markets can vary by state, town, city and even block by block. But most people don’t realize this. So it’s important to start by researching the market of the cities and neighborhoods that interests you. Read local news and blogs. Watch the number of days a home is on the market before it sells. Note the sale price to list price ratio in the town where you’re looking to buy. This research can save you a lot of time and headaches. You don’t want to rely entirely on your real estate agent to tell you about that market. Get informed and make your own conclusions as well.

Selling in a buyers’ buying a home in a buyers marketmarket

Selling your home in a buyers’ market can be a tough road. This market could be slow due to a high level of inventory, low buyer demand, or simply slow economic times. If you need to sell in a buyers’ market, it will take extra effort. Make sure your home is priced competitively. You may not be able to wait for months to test the market. Homes will sell, no matter the market, when priced correctly.

Spend time removing junk and prepping your home for the market. You’ll have to pack up when you move, so it makes sense to start packing and organizing before listing your home. Not only will it save time later, but it will help open up the house, make more space available and help the home show better during open houses and regular showings. Consider any suggestions your agent makes for slight cosmetic fixes, staging, and minor repairs.

Buying in a buyers’ market

Who doesn’t love being a buyer in a buyers’ market? You have lots to choose from and motivated, if not desperate sellers. Take your time to see as many homes as possible. Focus on the most motivated sellers, as this is where you may find the best deals. With handful of homes meet your needs, ask questions such as: Why is the seller selling? What is their time frame for moving? How long have they lived in the home? You can ask these questions through your agent. The more questions you ask, the more information you will uncover.

Selling in a sellers’ market

Along the West Coast, sellers are overwhelmed with buyers at open houses and private showings. Demand is high, and properties sell quickly. But you still have to work a bit at selling.If you fail to clean the home and make it look it’s best, you could very well leave money on the table for the buyer who is desperate for a great deal.

If you are lucky enough to receive multiple offers, focus on the best buyer and the besselling a homet terms, and not so much on the bottom line. You want the most qualified buyer who is going to close on time. The last thing you want is to have to go back on the market again. When this happens, everyone will wonder what’s wrong with your home.

If you aren’t sure who is the best buyer, ask your agent. The best buyer is the one who has seen the home multiple times, is pre-approved with a lender, has been in the market and has even lost out on recent home purchase to another buyer. This buyer is working with a local agent and committed to buying. Your agent should know who they are.

Buying in a sellers’ market

Buyers in a sellers’ market will likely find themselves frustrated over the lack of homes for sale. The one’s that are for sale sell very fast. The competition is intense, and they need to invest a good chunk of their time on buying a home.

For serious buyers, finding a home becomes a part-time job. Work closely with a good local agent and mortgage pro. When a home hits the market, don’t wait. Don’t wait for the open house, because more aggressive buyers might get in and get it before you do.

When competing with other buyers, try to do as much due diligence as possible before making an offer. An offer with few or no contingencies is what sellers love. They want to be sure the deal will close for the most money, and as quickly as possible. Give sellers what they want and you will likely win the war!

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

Things To Know Before Buying A House

Purchasing a home can be confusing, overwhelming and make buyers feel completely broke by the time they get the keys. However, being freed from a landlord and throwing away rent payments can also be extremely liberating. From finding the best Realtor to making it through a bidding war, here are 10 things homeowners wish they knew about taking the big step into being a homeowner.

1. Get pre-approved first.

It might be tempting to start hitting open houses every Sunday, but before beginning your search, get pre-approval letter for a mortgage. The last thing you want it to fall in love with a place before being prepared and able to put offer in on it. Without this pre-approval letter, no seller will take you seriously as a pre-qualified buyer.things to know before buying a house

Research recommendations on trustworthy mortgage brokers, then set up a time to talk with each one. If they won’t provide firm information about their rates and fees, or if they start giving advice before fully understanding your financial situation, keep searching. Any good loan officer will save time and money by researching loan terms and rates that work in your best interest

2. Work with an experienced agent.

Before buying a house, going through online listings is a great start. However, don’t underestimate the value of working with an experienced real estate agent. They will help navigate the confusing process of buying a home, and once you find a place you love, they can research comparable listings, advise on what your opening offer should be and negotiate for you. And since home sellers pay all broker commissions, having an agent represent you as a buyer is FREE!

To find the best one, make a short list of possible agents based on word-of-mouth recommendations and/or internet research. Then meet with them to get a feel for their personality and their knowledge on the neighborhoods.

If you are new to the home buying process, stick with a buyer’s agent. They will negotiate, point out any problems with the house that they see, and handle potential issues whenever possible.

3. Don’t be turned off by an ugly bathroom.

A funky paint color or outdated design can cause a buyer to overlook a home that’s otherwise has tons of potential. Remember, cosmetic changes are easy to make once move in, and pointing out any dated features can actually help the negotiation process.

Instead of focusing on the pink-tiled bathroom or that ugly light fixture, pay more attention to the layout of the property, the view, the amount of sunlight rooms get, ceiling height, outdoor space and of course, the location.

4. Find out about the neighbors.

Once you find a home you love, walk the neighborhood to make sure it will be a livable situation. It also helps to visit the neighborhood at different times of the day and week to get a better feel of what life there is really like. Talk to neighbors and get their take on the area as well.

5. Be prepared to move fast.

The best properties receive multiple offers after the first open house, so it’s possible to miss the chance to submit an offer. Your agent will include your pre-approval letter in the offer so the seller knows it is serious. If there is a lot of interest in the home, write a letter to the seller explaining why you’d be the best next owner. You can even included a picture of your and your family. This is also referred to as a “seller love letter” and can work wonders to getting your offer accepted.

6. Be careful about overbidding.

If you plan on financing your home and get caught in a bidding war, beware that overbidding can come back to bite you. Your bank will require an appraisal of the home. If the appraisal comes in under the amount of the loan you need, you might have to make up the difference in out-of-pocket cash in order to complete the deal. Before you make an offer, research comparable listings or ask your real estate agent for advice. If you can, consider increasing your down payment instead of going up higher in price. Cash is king, so putting more money down can give your offer an edge over other buyers.

what to expect when buying a home7. Expect a ton of paperwork.

When applying for a loan, be ready to provide a ton of paperwork, including tax returns, pay stubs and proof of your current assets. You may also be asked to provide updated information on some of the same documents right before closing. This is not the best time to switch jobs or buy a new car, since your income and credit will be closely scrutinized.

8. Hire a home inspector.

Protect yourself and hire a professional inspector to look over the home before you compete the purchase. For $300-400, their inspection will help expose potential problems that could cause you problems and a ton of money down the road. A good inspector will attend to seemingly insignificant details. It also provides a negotiation point to ask the seller for any repairs to be made at their expense.

9. Expect to feel like you are hemorrhaging money.

It’s surprising how quickly costs add up. Fees of $200 here, and $150 there can be unexpected. Besides the down payment, there is the deposit, appraisal fee, home inspection, moving, and more expenses besides the actual buying price. Additionally, most lenders ask that a buyer has enough to cover at least two mortgage payments after closing, which means there needs to be cash in the bank. Go over all of the closing costs with your lender and agent to avoid surprises.

10. It will feel like it will never happen.

Buying a home is not easy. Finding a great place to live takes time, and once you find it, you can easily get outbid. Just remember that new listings are always coming onto the market and, eventually, there will be something you love.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

Home buyers-Asking For Repairs?

It is highly recommended that home buyers have a complete home inspection done before purchasing a home. But when it is all done, some buyers ask to have every little thing fixed, while others ask for almost nothing. Which home repairs should buyers ask for?

Some repairs do seem ridiculous, but having a furnace repaired so that it works again, or having a leaky pipe fixed is not so far fetched.

Making an offer on an older home and then asking to have all the windows replaced seems a bit home buyers asking for repairsover the top, and sellers will view it that way as well. Buyers have to understand a seller’s point of view when it comes to repairs. And the old adage, “if it ain’t broke, don’t fix it” actually applies pretty well in this cases.

Sometimes buyers looking for craftsman style homes built in 1910 to 1940 expect them to have modern electrical systems where all of the electrical outlets are grounded.  Sellers often have owned a home and lived in it for a couple of decades with two pronged outlets, therefore they don’t see why they need to be changed over to grounded outlets for the buyers as a priority.

There are some things that a home has to have like working plumbing or a working furnace. I personally think that if something in a home leaks, the sellers should fix it. This is especially true with indoor plumbing or gas lines. It can both cause additional damage and can be downright dangerous.

Buyers should keep in mind that sellers might not have the money needed to make repairs.  Sellers should understand that often home buyers are short on cash and can not afford to have repairs made and buy a home all at the same time. Yet buyers need to know that there will be repairs in the future and they should budget for them.

Sellers should be prepared to fix anything that comes up as a hazard (safely issue) in the home inspection report like unsafe wiring or pressure release valves that don’t work.

Sellers can say no to any repair that the buyers ask for. And buyers can cancel the purchase agreement during the inspection period and find another home, if the inspection reveals too many issues.

The point of the inspection is for the buyers to know what they are buying. It also protects the sellers somewhat, because the inspector is finding the problems that could upset the buyers if they found out after they closed on the home.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

FSBO Executive Uses A Realtor To Sell His Mansion

Al Bennati, the longtime chief executive of BuyOwner.com, has chosen to list his home with a local real estate agent.

BuyOwner.com is one of many websites out there now that encourage home owners that they do not need to enlist the help of a professional agent to be able to sell their home. Their website tells homeowners: “BuyOwner.com allows you to reach the most potential buyers in the shortest amount of time, in the most effective (the Internet) and most cost effective manner (no commission!) possible.”

But that has not stopped their chief executive, Al Bennati from hiring professional help in listing his own Florida mansion, now on the market. Bennati has listed an estate on St. Petersburg Beach for $3.78 million with Coldwell Banker agent Donna Miller.

for sale by ownerThis isn’t the first time that a CEO of a major FSBO website has enlisted the help of an agent when the time came to sell their own home. In August of 2011, Colby Sambrotto of forsalebyowner.com who, after failing to sell his home using FSBO websites, needed an agent to sell his NYC apartment.

Two separate people made fortunes convincing others to sell their home through their FSBO sites. Yet, when it came to selling their own home, they recognized the value of using a real estate professional. There is a reason the real estate industry has been around for centuries: it performs a valuable service!

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

 

Central San Diego Market Update-February 2014

We have continued stability in the San Diego housing market. With sales, days on market, and price per square foot level out compared to the previous month. However, homes are continuing to sell at a fairly brisk rate, meaning buyers don’t have long to act on a property they love. With this more “normal” pattern, interest rates have actually been taking a slow dip over the last few weeks. They are currently at 4.32%. Inventory levels (the number of homes on the market “actively” for sale) is continuing bounce around the 6000 level for San Diego county. Finally, prices are starting to take on a more seasonal pattern, with much more modest changes than the previous year. To get the latest figures, I ran an analysis of home figures from the MLS for the central San Diego region (a 7 mile radius). This includes communities such as Mission Valley, Serra Mesa, University Heights, Normal Heights, Hillcrest, Mission Hills,  Bay Park, and Clairemont. The numbers include both condo/townhomes as well as single-family homes.  Housing Figures-Central San Diego

Date # of Sales Median Sale Price Med Price/Square Ft. Ave Days on Market    
February 2014 464 $437K $365 23
January 2014 463 $450K $370 30
February 2013 554 $401 $327 20

How's the market 2There are currently 6200 active listings in San Diego county, up from 6100 last month. That number should continue rise in the coming months as the spring selling season approaches and more people put their homes up for sale. For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com
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