Today’s Episode is called “Your feelings can shape your real estate experience”Now more than ever your feelings matter. Some agents and clients I know are saying things aren’t selling as fast, their seeing more price reductions, the buyers are a bit more cautious, so what’s going on?”
The top four things you need to know:
- You can’t look at any one metric alone. You need to look at the entire picture. Have an agent who geeks out on the numbers and will play it to your advantage.
- Why the price reductions? Is there less demand, or did the seller price it too high over fair market value? You’ll find the price reductions are happening because they didn’t start at fair market value. Look at your specific neighborhood listings to see the facts.
- Let’s go with what it is; not what it could be. Live in the moment. Live in the now. National Association of Realtors recently report from their survey:
- 68% of the respondents believe now is a good time to buy
- 75% of the respondents believe now is the best time ever to sell a home.
- Hire a true professional, not the Pre-Madonna or Cousin Louie who lives an hour away. Now more than ever you need someone willing to work hard and do the work. They pick up the phone, they door knock, they network and they work open houses. Get an agent who’s out there mingling with the buyers on a Sunday at open house for example.
Danae Aballi is a full-time realtor based out of Newport Beach, CA. Often working up and down the coast wherever she can be helpful to her clients, and also inland in Redlands where she grew up. She works with Douglas Elliman Real Estate. She’s known as “Newport Beach’s Best Realtor” and many clients call her simply “The best real estate agent”. Reach out anytime for all your real estate questions.
Strategies for a shifting market – emerging buyer trends. Top 4 things you should know as of 6/30/2018. Each week I’ll give you a market update.. the number 1 question I always get is, “How’s the Market?” so I’ll answer that each and every week! In today’s episode:
1) Buyer’s attitudes are different than 2 years ago. They’re stepping into the driver seat, and their approach isn’t as desperate. They know they’re paying top dollar, and while the realize buying is a smart option, they’re not going to just lay down. They’re tuned into value, and want a turnkey property. They’re simply a little tougher on the seller now.
2) Don’t be an “Online Lead”. You can certainly start your search (for an agent) online, but choose your agent via a face to face consultation to choose the best! Online leads get treated as a statistic which is only 3% ever buy, and they’re usually not pre-qualified, and will not buy until 12-18 months. Online leads don’t get as much love as a real client who they’ve met in person.
3) Give an agent exclusivity, and they’ll give you 110%. Agents with an exclusive client will give you their all. Their customer service will rise to the top, and you’ll get them to dig up pocket listings, door knock, mail letters, whatever you need them to do.
4) You owe it to yourself to hire the best! Excellent negotiator, someone who knows their craft, and who will put in the energy to be your advocate!
Closing thoughts: As we enter this market shift, you can start your search online, but team up with the best and take the opportunity seriously. There’s opportunity everywhere if you (or your agent) know where to look.
For Sale By Owner (FSBO) Statistics
FSBOs accounted for 8% of home sales in 2016. The typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales.
FSBO methods used to market home:
Yard sign: 35%
Friends, relatives, or neighbors: 24%
Online classified advertisements: 11%
Open house: 15%
For-sale-by-owner websites: 8%
Social networking websites (e.g. Facebook, Twitter, etc.): 13%
Multiple Listing Service (MLS) website: 26%
Print newspaper advertisement: 5%
Direct mail (flyers, postcards, etc.): 4%
None: Did not actively market home: 28%
Most difficult tasks for FSBO sellers:
Getting the right price: 15%
Understanding and performing paperwork: 12%
Selling within the planned length of time: 13%
Preparing/fixing up home for sale: 9%
Having enough time to devote to all aspects of the sale: 3%
Source: 2017 National Association of REALTORS® Profile of Home Buyers and Sellers. Request a copy of the full report
Several times throughout the past year, we’ve begun to hear the “B Word” again: have home prices gotten out of whack again? Are we at the tipping point yet? How much longer can this go on? Is California in the midst of another housing bubble? Read the full report
I received this email from a lender I work with, Jay Carr. Good info about the California Real Estate market so I’m sharing with you all. Enjoy and let me know if you have any questions.
I’m passing along a chart you may find interesting. It’s OC Median Home Price Over Time .
With home values increasing year over year since the big downturn in 2008 I was curious what the overall improvement in values has been over a long period of time. I’ve been in this business for over 20 years, and prices are much higher than when I started, but I was wondering if the increases are reasonable given expectations of appreciation in Orange County of 5%-10% a year. I downloaded the median prices of Orange County single family homes since January 1990 until today from the California Association of Realtors (CAR) site and compiled a graph. Then I calculated the annual increase over the past 28 years. It is just 4.775%. That includes a pretty flat 1990’s market and includes the “bubble” from about 2002 thru 2007 – which is obvious on the graph. I also did the math from 1997 – when the market started gradually improving to today, and the annual increase was 7.1%. Then looked at the recovery from 2009 to today where we would expect the biggest increases, and that period of time was 7.8% . That period has several ups and downs which would be expected in a recovery, but it levelled out to normal in about July 2013. From July 2013 to today the annual increase is just 4.3%.
What this helped confirmed for me is that, although over a long period of time OC real estate values have increased quite a bit and have been a boon for OC homeowners, the overall market today is on track with reasonable expectations of property appreciation. That’s not to say we wont see prices level off or even drop slightly in the next 5 years before continuing their upward trend, but it does make it clear we are not in another “bubble”. I analyzed other financial market statistics that support this, and am happy to share those too. This graph I found most useful though. Median Price OC 2018.05
A video of Jay and Danae: https://www.youtube.com/channel/UC5Na3jsNcY8jrCsUvCMnW4g
I showed this listing last week and this is a DEAL ALERT! Best deal of all 10 properties I showed and here’s why you should buy it:
- LIMITED PRODUCT: The only place in OC that you can take a few short steps to swim in the ocean (without scaling a 5 story house on a cliff) is The Ritz front row, and The Strand front row. Well I should clarify – these are the only two spots that aren’t completely flat like Huntington Beach or Newport’s Peninsula so that you loose views. So you get both views, as well as ability to jump in the ocean without putting on your flip flops to get there.
- PRICE: It has a long listing history and I think the owner is finally really ready to sell! It was first listed in June 2013 for $18.9 or $2577 a sq ft. Over the years dropped to $16.9, then $16M, then $14M, and now $12.995M!
- UPDATING: Note that the home needs updating to become “current” but I still think this is a steal of a price. 17 Ritz Cove sold in July 2016 for $12.750 and the new owners tore it down. Note too that lots in The Strand are selling for $11.950 – 35 Strand (Sold in August 2017)
Here’s the link to the listing on my real estate app: http://sa.elliman.com/fs5cmis
Video – over the years it’s been listed with 4 different brokers so there’s been lots of marketing videos and photos done of the property. Here’s one of the earlier videos from 2013: https://youtu.be/MuwRAEvRnr0
Want more info or to set up a showing? Call Danae Aballi for expert buyer representation 714-709-6558.
At the time of this posting (4/8/2017) Listed by McMonigole Group Corp.
Danae Aballi CA BRE#01414653. All information deemed reliable but not guaranteed.
Thanks for joining me! I am creating this site to document my opinions on Orange County’s Luxury Real Estate. Have you ever read a luxury home paragraph description? It’s full of fluff and doesn’t make any sense. Get to the point. Tell me the facts, and why I should buy this luxury home.. and that’s exactly what I’m going to do in this blog. Here’s a real example…
Earlier this week I showed a buyer a home and it’s MLS description reads, “Inside, an elegant and relaxed atmosphere defines the home. Warm tones, rich materials, and a spacious plan provide the optimal environment for living and entertaining.” Blah blah blah. Could be a copy and paste sentence they use on every listing. I’d prefer to actually say why you should buy it – and that’s what I’m going to do. Real opinions on the properties. Welcome to my blog.
Good company in a journey makes the way seem shorter. — Izaak Walton