Housing Recovery Slow Down

  

The housing recovery appears to be slowing down after booming over the past several months.  Lower home prices and interest rates along with fewer properties for sale, caused many buyers and investors to enter the market and create bidding wars which drove prices up.

 

 
Home prices are now higher than they have been in years.  Along with the increase in prices, mortgage rates have also gone up steadily.  As a result, some buyers have had to step out of the market.  In addition, some investors are now choosing to step away.  This has led to what is, most likely, a short term stall in the housing recovery.


The sudden and rapid increase in real estate demand caused many to be concerned that we might be heading for another bubble.  This fear can actually cause people to act irrationally.  We need to remember that the bubble did not burst because people wanted to buy homes and were willing to pay a little more this year than last year.  There were many other factors that contributed to the collapse of the real estate market.  Home values increasing over time is a normal and healthy scenario.  When there are extreme changes in the market, however,  it is not sustainable. The market's recent "cooling off" is good example of this.

 

As investors looking for quick or dramatic returns on their investment are withdrawing from the market, they are being replaced with buyers who want to purchase a home to live in for many years.  As this exchange of buyers takes hold, it will help to continue the stabilization of our market and cause it to return to a more normal state.

 

If you have any questions concerning your real estate needs, please call Nancy Puder directly at 805-710-2415 or email Nancy at NancyPuder.com.  She always loves to hear from you!  Nancy Puder is a real estate broker on the Central Coast of California.  

Mistakes Buyers Make with Lowball Offers

After the financial crisis five years ago, there were definitely deals to be had. But the economy has recovered a bit and housing inventory is tightening up, especially in metropolitan areas such as New York City, San Francisco and Atlanta. 

 

Assuming that someone’s going to be thrilled that you make an offer on their house (even a lowball offer) is not the case. When bidding wars break out, sometimes buyers have unrealistic expectations and end up being the one who lost.

 

Here are the most common mistakes that buyers make with lowball offers.

 

1.  Aggressive negotiating - This will usually get you nowhere.  There is no reason to start negotiations with a wildly lowball offer and to make outrageous demands.

 

2. Refusal to pay asking price. The idea that you should never pay the asking price isn’t realistic. Sometimes the house is worth exactly what the seller has priced it at. It's OK to pay that price.  

 

3. Ignoring the needs of the seller - Sometimes buyers are shocked to find that a seller accepted an offer for a lower amount than they had submitted.  Most buyers assume that price is the only consideration.  The truth is often a seller is more concerned about how much time they will have to move out, once the sale is completed.  In another scenario, a seller may take an offer where a buyer is not asking for any repairs even after the inspections are done.

 

Bidding wars can be invigorating or devastating for a buyer. You can end up the winner or you can be the loser. The sellers and the seller's circumstances should be taken into consideration at all times during the negotiation process, the more you understand their needs, the greater the chances are you will end the winner.

 

Nancy Puder is a real estate broker at Signature Properties, a prestigious real estate firm in Arroyo Grande, CA. You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!

What Your Realtor May Not Tell You

When buying a home, a good Realtor is a valuable resource, especially if it’s your first time. They can guide you through the neighborhood and the homebuying process, which can get complicated. They know mortgage brokers, inspectors and sometimes even listings that the rest of the public does not.

Many people like to consider themselves armchair experts when it comes to real estate, but the business is a nuanced one, best navigated by a professional. Here is something that most Realtors are too polite to tell you.

 

Qualified clients are my priority: If you have been preapproved for a mortgage, know how much you can put down and understand debt-to-income ratio, then any broker will be happy to spend day and night finding you the perfect home.

 

If you’re just getting your feet wet to either rent or buy a new place or don’t quite have the cash to start the process, then go to open houses as opposed to a private outing with a broker. Open houses are designed to let people look and ask questions without wasting a Realtor's time. Along the way, you may find a broker you want to work with who can get into specifics for your budget and needs, when you’re ready to pull the trigger.

 

Generally, brokers will ask you upfront if you’ve been preapproved for a loan. If you haven’t, they may ask you to call back when you have all your paperwork in order.  This is because for a Realtor, time is money.  At the end of the day, everyone hopes to be paid for a job well done.

 

If you are just getting started, a good Realtor will provide you with clear direction on how to begin the process and will continue to be available to answer questions along the way.

 

Nancy Puder is a real estate broker at Signature Properties, a prestigious real estate firm in Arroyo Grande, CA. You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!

Get Roofs & Heaters Inspected Before Winter

Warm and sunny days in October makes it hard to believe that summer is really over and that soon we will be well into the winter season.  Even in California, it is wise to make preparations before temperatures drop and the rainy season is upon us.  

 

Here are some tips on how you can sail through the winter without some unexpected and and too often unpleasant surprises.

 

Roofs - Now is the time to get your roof inspected.  For a surprisingly low cost, you can have your roof inspected to see if you have any existing issues that could cause a leak during the next rain.  A few dollars spent today could save you thousands later in water damage.  

 

Heaters - An inspection of your furnace on a regular basis is important, not only for safety reasons, but also to prolong the life of your furnace.  You may be surprised to find how low the cost is to have an inspection done.  The gas company will sometimes come out and inspect free of charge.  A licensed HVAC person will also clean and evaluate your heater for you.

 

Roofers and HVAC vendors are swamped with calls as soon as the weather changes.  Heaters that haven't been turned on in months, all of a sudden don't work.  Rainy days bring leaky roofs.

 

Waiting until the "emergency" happens, may result in having to wait a few uncomfortable days before a repair person is able to show up to address your problem.

 

Remember, an ounce of prevention is worth a pound of cure!  

 

Nancy Puder is a real estate broker at Signature Properties, a prestigious real estate firm in Arroyo Grande, CA. You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!