Many of my clients have asked, “How do you know when the market has turned and we’ve crossed the line that changes the game?”  First, you must learn how Realtors® evaluate the real estate market. From my experience, typical home sellers would like to move within two to four months of placing their home on the market, so over time, we have developed expectations in real estate and have defined situations as follows:

• Sellers Market:  1 to 5 months supply of homes – home prices increase
• Balanced Market:  6 months supplies of homes – home prices are stable
• Buyers Market:  7 or more months supply of homes – home prices decrease.

Recently I have done several estimates of market value which showed that in some areas there is now a 4 month (or less) supply of homes on the market.

This provides a unique timing opportunity. Buyers now realize that prices are close to bottom or rising, so they are actively seeking the best buys in the market. Sellers can now take advantage of more buyers and less competition in selling their homes. This means that eventually home prices will moderately increase.

The easiest way to understand current and future conditions is to monitor the movements in the real estate absorption rate.  Mathematically, this is the measurement of current housing supply divided by the current rate of sales, expressed in months of supply. In Santa Cruz County the months of supply is 6.7 and depending on the area, this number drops significantly.

Have you been on the fence about selling? Now is a perfect window of opportunity. Give me a call at (831) 457-5510 or contact me today for any real estate need.

Many homeowners today have up to EIGHT options of what they can do with that property.

1. Keep the property, make the payments and live in it.  If you’re doing that now, great. Keep doing it if that’s your choice. No one is MAKING you sell your home right now if you’re making your payments.

2. Keep the property, make the payments, and rent it out.  If it’s been a rental, you can choose to keep it one. If it’s been your primary residence and you want to turn it into a rental, talk to a property manager, your tax advisor or CPA about what that will mean for your cash-flow and tax status for the property. (Capital gains, etc)

3. Keep the property, make the payments, and just maintain it vacant, or use it part time as a 2^nd home/vacation home. Again, talk to a PM or your tax advisor about what that means to you.

4. If you have Equity… Sell the property. Price it well and sell it now.  You CAN do this in most markets. Homes ARE selling if they are priced correctly. Note that your competition for buyers is Banks (REO), Short Sales (combined Owner and Bank), and other “Desperate Sellers with Equity”.  You MUST price it with that in mind to sell in this market. Period.

5. If you do NOT have Equity… Sell the property and bring money to closing to do so.  Note the pricing statement above.

6. If you do not have Equity and do not have Cash… Sell the property via a Short Sale. Find an experienced real estate agent to assist  you in this process as you will need Bank approval.

7. Do a deed-in-lieu of foreclosure if your Bank will approve it.

8. Allow the Bank to Foreclose on the Property.

Note #1: Options 1-5 do NOT damage your credit. Options 6-8 do damage your credit to varying degrees. Be sure you understand before choosing an option.
Note #2:  There is NO OPTION to price the home higher than it’s worth. It’s the same as option 1,2,3, or 8.
Note #3:  Why would someone sell when prices are low? They have to. They simply WANT to, and have the financial ability to take the loss. They want to buy another property and will MAKE UP THE LOSS ON THE PURCHASE.

I hope this information gave your some food for thought. If there is ever any way I can be of service to you or anyone you know, please contact me at (831) 457-5510. There is never a charge and you’re under no obligation of any kind. We’ll sit down for 15-20 minutes… no high-pressure, just plain, honest talk about what it’s going to take to achieve your personal goals. Go ahead, pick up the phone and give me a call. I’d love to help from you!

The ability to reap additional profits on the sale of your Santa Cruz area home can be accomplished easily enough, if you make the right improvements. Many changes can provide the prospective buyer with enhanced feelings about your home. Feelings of more space, more light, more rooms, more closet space, greater privacy, warmth and security. Basic, simple and inexpensive improvements can provide an improved emotional response in a potential buyer.

An example could be something as small as a crack on a wall. By simply applying some plaster and touch-up paint, you eliminated what may be an unstated concern that your home was poorly maintained. Though the feeling may be unconscious, it’s just as important that the potential buyer feel an overall sense of emotional desire for your home. If you are working with a small budget, these simple techniques will work absolute wonders. Continue reading →

To sell your home for the highest possible price, you need to avoid common mistakes! Small mistakes can cost you hundreds, even thousands of dollars. Avoiding these mistakes is easy. Just follow these simple guidelines and you should be able to get the maximum return on your investment.

1. Distress Selling: At times, selling quickly is unavoidable. That’s when knowing the right techniques to sell your home, without looking desperate and making yourself a target for low bidders, really pays off. Know all there is to know about your market before listing and work hand-in-hand with the right real estate professional. Ensure you are not settling for the first offer through the door.
2. Best Home in the Neighborhood: Your home is one of your most personal possessions. Don’t be blind to flaws and needed cosmetic improvements. This will cause overvaluing of the home, hurting its chances to be sold. Listing with the right agent gives you a well-informed third eye that will help you price your home at a fair market price.
3. Limited Home Viewing: Buyers want to view a home on their own time schedule. Unfortunately their time schedule does not always coincide with your time schedule. Leave a lockbox or key with your agent so your home can be shown when you are not around. You never know if the one who got away was your next home buyer. Continue reading →

Many homeowners believe to maximize their home sale they should sell it themselves. At first glance, they feel selling a home is simple. Why should they pay a broker fee for something they could do themselves? In fact, many homes sold last year were sold For Sale By Owner (FSBO).

However, over half of the FSBOs said that they would hire a professional next time they sold. Thirty percent said they were unhappy with the results they achieved by choosing FSBO. Why?

Many FSBOs told me the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the fees paid to consultants, inspectors, appraisers, title lawyers, escrow and loan officers, marketing, advertising, they would have been better off to have paid the broker’s fee that would have included many of these charges.

Selling a home requires an intimate understand of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. Some FSBOs discovered that they lost money as a result of poor marketing decisions. In the final outcome, this far outweighed the commission they would have paid. Continue reading →