What Every Seller Should Know in Today's Market!

When you decide to sell your home and invite an agent to come by to list the property, a good part of the appointment is centered around the Comparative Market Analysis (CMA).  If you are not familiar with this term, here’s a brief overview of how a CMA works…It’s all about your home versus every other comparable property in the immediate or surrounding area.  This is how agents help their sellers establish a realistic asking price.  Recently sold listings, listings that have expired and active listings all need to be taken into account while establishing an acceptable price range.

Active Listings are your competition.  A good move is to attempt to out-price your competitors as you address subtle differences in value between your home and the rest.

Expired listings should be considered since those are the ones that were in many cases overpriced and therefore, did not sell.  Recently sold or closed listings are the homes that made it to closing and obviously the successful ones.  It’s important to use these homes as an indicator as to how well your home will do in the current market.

I can’t stress enough how important it is to price your property correctly in the beginning.  One of the most frequent questions that I receive from prospective buyers is: How long has it been on the market?  If the buyer perceives that it’s been on the market for too long. They will often “low ball” their offer, assuming that you are either desperate or that there is something wrong or undesirable about the property.

When you are ready to discuss the CMA with your agent, be sure not to place much emphasis on anything that sold prior to three months ago.  If you sell your home, the majority of buyers will be obtaining a home and when the bank sends out an appraiser, he or she will only consider properties within that time frame.

I hope this information is helpful to you and just so you know, I’m never too busy for your referrals!

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415

When Will Home Prices Go Up?

When will home prices go up?

This is the main question asked by homeowners who purchased their home several years ago and have sadly watched their equity reduce, or even worse, completely disappear.  Others are now in a negative equity position, owing more than their home is worth.

Most of us are aware by now that interest rates are historically low, swarming buyers  are buying again, and most recently, there is a shortage of homes for sale. The main reason for the shortage is that  homeowners who don't have to sell, are sitting on the sidelines waiting for prices to go up. In addition, banks have dramatically slowed down their foreclosure process due to the robo-signing scandal.

So it seems that with the low rates, shortage of homes and "willing and able" buyers, that prices would begin to rise.  I believe that they will but probably not within the time frame that some homeowners would like

For the next year, we will continue to see foreclosures come on the market as they are gradually released by the banks.  There will not  be a  huge release of foreclosures called "shadow inventory" . That is a term used to frighten people and is simply unfounded.

Some pockets of the market are already beginning to see a slight rise in prices, but it will be a year or so before it will be enough to get excited about.

Remember, if you sell low now and are planning to purchase another home anyway, you get to buy your new home at a bargain price too!  Watch for future articles on how you can actually improve your equity position immediately ifyou are purchasing a higher value home.  If you can't wait, call me to discuss your personal situation.  I always enjoy hearing from you!

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415

Buyers Compete in Today's Market

Today's housing market has surpised many buyers who may have been waiting for home prices to hit bottom.  For example, they may have heard that the market is turning around, and so they are becoming more active in their home search.   They finally find a property that suits their needs and then make what they consider a reasonable offer.  Excited to have their offer presented to the seller, they are dismayed to hear that there other offers  on the same property that have all come in within the past 24 hours!

Buyers need to know that an increasingly  popular listing strategy  is to price the house low in order to create a "multiple offer" situation.  The agent presents all of the offers and the seller chooses the "best" one. The  rest of the offers are then rejected.  In a few multiple offer situations, all buyers receive a counter offer, providing an opportunity for the buyer to come in higher or with better terms. Buyers should not expect this will be the case with every home they bid on though because they often find that the seller is not interested in negoitating with them if they have a better offer.

To know more about how to get your offer accepted once you find the right home, watch for future articles or give me a call anytime to discuss your particular situation.  I always enjoy hearing from you!

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415

Driveways & Walkways Make First Impression

Once you have decided to sell your home, be sure to create a positive first impression.  Most sellers realize how important it is to make sure their home’s interior is up to par, but it’s just as important to make sure the exterior is in good shape. If you’re in the process of getting ready to list your home, be sure that your driveway and walkway aren’t overlooked. Paying attention to these areas will not only provide prospective buyers with a positive first impression, it will also help reel in interested buyers.

A well-maintained  driveway  and path to the front door adds curb appeal to your house. It’s the first impression of your home that people see and it should look as good as it can.

Once a potential buyer leaves their car to head to the front door, the walkway begins to play an important role. That’s why it’s vital to make sure both the driveway and walkway are looking their best.

I recommend that you do a thorough inspection of both the driveway and walkway and repair any cracks that you see. If you have the time and money, you may want to consider getting the driveway repaved as this will go a long way toward creating a positive first impression. Cracks in the walkway should be repaired with concrete paint. This can usually be done in a few hours and is a relatively inexpensive fix.

In addition to making repairs, make sure there are no toys,  leaves or gardening equipment blocking someone’s path to the front door. Potential buyers shouldn’t have to maneuver through an obstacle course to reach the front door. Driveways should also be free of clutter and debris.

Once the walkway is clear, make sure that no grass or weeds are growing in the cracks. Spend the time necessary to create a perfect walk to the entrance of your home.

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415

First Offer Could Be Best Offer

First Offer Could Be Best Offer

Why is it that more often than not, the first offer a seller receives on their home is usually the best offer? Of course, this is not true in every situation, but there are reasons why sellers should give serious consideration to the first offer they receive.

Buyers usually start off slowly by going to a few open houses, going online, and doing their homework.  They then  make first contact with an agent to assess what the agent thinks about the local market.

From there, the buyers begin to get more serious.  They may go on a few private showings with their agent and eventually become what we call a "real buyer"  approved for a mortgage, and actively engaged in the process of buying a home. Real buyers are often the ones who write the first offer a seller receives on a property, and that’s why their offers should be taken seriously.

A real buyer's offer may not come in within days of a property going on the market.  It will, however,  come from an informed buyer who is knowledgeable of the market.  If a home is priced too high and a month or two goes by without an offer, it will be the real buyer who has been watching the listing and waiting to see how the market responds.  If the buyer sees that there aren’t any offers on it and there is no activity after some time,  the real buyer will come in with a low offer, which actually may be a good offer, on the seller’s home.

While sellers sometimes see the low offer as insulting,  the seller should still look at this offer closely and investigate who the buyer is, how long they have been looking, ask whether they’ve written other offers nearby, determine if they are working with a good local agent, and ask if the offer comes with a pre-approval letter.

As hard as it may be for a seller to contemplate an offer much lower than their asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Time to Push the Reset Button!

Time to Push the Reset Button!

It is safe to say that there are conflicting reports coming from the media on a daily basis regarding the real estate market.  The truth is that the housing market is  definitely turning around.  Why? Because there is a shortage of homes that are available for sale combined with the fact that most builders stopped building when it became evident the economy was on a downward slide. The result of the shortage is that buyers are now competing with each other, many losing out to a better offer if the home is in a good location, priced right and shows well.

Here on the Central Coast of CA, we  have been experiencing this shortage ot inventory since January. What I didn't expect to find, however, was that after attending an event hosting 200 top Realtors across the country this week, almost every Realtor I met reported the same conditions in their area!

Low interest rates are fueling this new surge of buyers coming on the market as economists and lender predict a rise in rates at some point. 

It's important to know that things have not returned to the old normal.  A lot has happened over the past few years and it is important that you discuss your particular situation with a trusted real estate advisor.

The world is not changing.  It has changed already! If  you are waiting for things to go back to normal, you will miss the boat waiting for something that likely will not happen.   As usual, some change is good and some not so good. If we want to move forward with our lives, one thing is sure that a certain level of acceptance of the facts is necessary to operate in the new world we live in! 

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Beware of Mortgage Scams

Beware of Mortgage Scams

If someone, even an attorney, has made you a promise or guaranteed mortgage relief and asked for money up-front,  my advice is not to do it.

Mortgage fraud reports have shown an increase from more than 6,900 in 2003 to more than 93,500 in 2011, according to the FBI.  The nonprofit Homeownership Preservation Foundation reported the number of mortgage foreclosure scams has shot up 60 percent so far in 2012.

In response, the California Association of Realtors (CAR) is educating homeowners and warning consumers they are at risk of being scammed by third parties, such as those that promise loan modifications for an up-front fee, which is illegal. 

Many so-called foreclosure rescue companies or foreclosure assistance firms review foreclosure notices in newspapers, the Internet, and public files to identify potential victims.  They then ask for money up-front and claim they can help homeowners save their home.  Some are bold enough to offer a money-back guarantee.  However, the scammers simply take the homeowners’ money, often leaving them in worse circumstances than before.

Consumers should NEVER pay money up-front for services promised. Instead, get a referral to a free HUD-approved housing counselor to advise on loan modifications, short sales, and other alternatives for avoiding foreclosure by calling (888) 995-HOPE. http://www.995hope.org.

To learn more about loan fraud,  go to the California Association of Realtors website and watch videos in Spanish, English and other languages. http://www.car.org/aboutus/forconsumers/loanfraud/

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!