What should I list my house at?

Rule number one in the current market is NOT to start out overpricing your home just to “see what happens”—you will only reach 10% of the buyers. Buyers are shopping price. They want a good deal.

 

For example, if you list your house 15% over market value than you are attracting only 10% of the buyers. If you ask 10% above market value you open it up to 30% of the pool of buyers.

 

Pricing it at market value in this market still only attracts 60% of the buyers. It is not until you begin to price it under market value that you will see higher activity and traffic through your property. 10% under market value typically yields interest from 75% of the buyers out there and 15% under market value widens your target market of buyers to 90%!!!

 

So, what should you list your house at?....Obtain the current market value from your Realtor, then price it at least 10% under that value to receive an offer faster and possibly multiple offers. You can create competition at the right price. Good luck!!

 

 

 

Global On-Line Bidding

Are you interested in selling your house and want to get the highest price possible in a short amount of time? Global On-Line Bidding is the answer. Here are several of the benefits to selling your house via this new innovative marketing approach.  

 

•         Create Competition Among Buyers

•         Expose the Property to a large number of Pre-approved Buyers

•         Accelerate Sales

•         Auction Brings Interested Buyers to a point of Decision

–        They must act now or lose an opportunity to purchase

•         It is a True Market Forum

–        The highest buyer pays the lowest price a seller will accept

•         You know exactly when the Property will Sell

 

Buyers love this method because they get full transparency…they know exactly what their competition is bidding and can feel comfortable going as high as they can afford.

Are we at the Bottom of the Real Estate Market?

As we have said before, we will not know that we have hit the bottom of the Real Estate market until we start going up. However, current listing prices in several Bay Area cities are indicating that we could definetly be at the bottom.

 

How do we know?...Key Real Estate economists have advised that areas which experienced 10%-20% appreciation several years ago needed to roll back to 2001/2002 pricing before home prices stabalized. Well folks, we are seeing this now. Many homes are coming on the market at the prices they sold at in 2001 and 2002.

 

We are now seeing multiple offers on properties not just in the outlining Bay Area cities such as Brentwood, Patterson and Tracy but also now in many cities around the Bay and the Tri-Valley.

 

These low prices and extremely low interest rates are the cause for this incredible market activity.

 

Homes "on-sale": Finding Value

Rich Dad Poor Dad author Richard Kiyosaki uses the example of a sale at the local supermarket to illustrate a common investor mistake---focusing on price movements instead of value. He notes that if a supermarket held a “25% off everything in the store” sale, the store would be packed.

 

But when prices plunge in the stock market or real estate market, many investors hear the bad news and head for the sidelines until prices begin climbing again. In any market, it’s important to consider value along with price. Supply and demand dictates that real estate values are easier to find in slow periods and become harder to find when markets heat up.

 

So, what’s lasting value? Here’s a list of homebuyers’ most sought-after-features, according to the NAR:

1. Central Air Conditioning
2. Garage with two or more spaces
3. Walk-in closet in master bedroom
4. Backyard/Play area
5. Cable/Satellite TV-ready
6. High-speed Internet Access
7. Separate shower in master bath
8. Patio
9. Fencing
10. Home newer than 10 years old

 

If you have looked in the past and not found these features in your price range, it may be time to check again, while properties are still “on-sale”. Be sure to consider features that will make homes more valuable in the future, such as energy-efficient construction and appliances and shorter commuting times. Features like water or mountain views, good schools, recreation opportunities and unique architecture never go out of style. For a list of homes for sale with specific features in a particular neighborhood, call or email us.

Is there a national real estate market?

Most media reports about the housing market focus on national statistics such as sales volume and median home prices. The often-repeated statement that all real estate is local is often repeated because it’s true. It’s interesting to hear about the ups-and-downs of the U.S. real estate market, but those reports really are only useful in the context of local real estate markets.

 

In reality, the national real estate market is made up of thousands of local neighborhoods, each with its own unique circumstances. The local economy, employment picture, tax situation and government policies will have more influence on local housing markets than any national trends. That’s why homes in some neighborhoods continue to sell for the asking price, while across town others languish on the market despite multiple price cuts.

 

The difference might be better schools, an exclusive location or just a neighborhood with a prestigious name. Even within the same neighborhood, Victorian-style homes may be selling well, while Colonial models sit unsold. A condo with a striking skyline view will sell better than an identical unit facing a parking lot and a dumpster. That condo doesn’t have much impact on the national real estate market – and vice versa.

HVCC: Important information regarding Home Values

Check out this video on how HVCC affects you and why you need to be aware of it…

 

https://www.thinkbigworksmall.com/public/showArchiveVideo/3909/4552  

 

 

 

Housing Market Prediction for 2009 and beyond...

 Economic guru, Carol Rodoni, predicts several trends for 2009:

 

1)      Foreclosures CA, NV, AZ and FL are going to continue to rise.

2)      Investors and first time buyers will continue moving into these areas with high foreclosure rates.

3)      Vulture funds out of the east coast are now putting $30K-$40K together; looking at things in the $150-$250K range, targeting a 3-5 year hold with no return, to put them back on the market and sell them once the market has bottomed out.

4)      This market creates opportunity in the lower end. People can now buy homes or investment properties for $150K in the San Francisco Bay Area, rent them out for $1100/month and get into a cash flow property.

5)      First time Home buyers are entering and will continue to enter the market this year. Affordability index has gone from 9-10% to 20%.

6)      Higher price points were the ones that went down 10-15-20%. Areas where a great deal of development occurred went down 20-30-40%. Looking back over the last 30 years the market would typically rise 6-8% per year adjusted for inflation. We hit 2000 and suddenly that escalated to 20% to even 60% in some of those areas that were being built in outlining commuter areas (i.e. Watsonville, Salinas and Brentwood). That growth rate was not sustainable. Most inflation was in the areas where the land didn’t have the value. Those markets are going to come down to prices of 1998-2000. Other areas (i.e. Santa Cruz, San Ramon) which are more primary markets, are going to 2000-2002 prices.

7)      After the above occurs, we are likely to see 6-7 months price of stability, not big changes in either direction, then appreciation slowing returning, mild 3-4% at first, then perhaps 5-6%, but nothing like we saw in the housing bubble cycle of 2000-2007.

8)      When will the bottom of the market occur? It will happen when we get back to these price points.

9)      Real estate is going to become the asset of choice because people are afraid of the stock market. People have seen 40-50% of their wealth dissipate in the past 6 months. The stock market is not going to jump back fast, could take 3-4 years.

10)   Underwriting is tough, but those buyers who can do verification of income, with full documentation can get loans. Interest rates are the lowest in 37 years. This is not going to last forever. We will see rates around 7-9% starting at the end of 2010 and by 2011.

11)   Lending is opening up, affordability numbers are increasing, and we have a new president motivated to get the economy going. All bodes well for the opportunity for Real Estate

 

*Notes by Datta Khalsa