Strap Yourself in for the 2013 Market

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What’s driving the real estate market?  People are asking this question.   I recently sold a property for more than $500,000, which was 50% above its list price!  Three drivers are affecting the market:  interest rates are great, demand is increasing, and inventory is shrinking.  Here’s what this means to you.

First, low interest rates are fueling the market and the economy.  The mortgage loan rates are still fantastic, which makes buying a home more affordable than ever.  A 30-year fixed-rate mortgage hovered at record-low rates during 2012.  If you wait and interest rates rise, you could get locked into spending a few hundred extra dollars a month on your payment.

Second, there’s also lots of demand.   In the Bay Area, we have high tech, biotech and financial services from banking to venture capital companies.  People moving in from overseas to fill positions in these fields have fueled the demand.  So when a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller.  Remember, there’s a lot of demand.  If you hesitate, the property could be gone tomorrow because others will be making offers.    

Third, supply is drying up.  If we look at what’s happening in the REO sector—the foreclosures are decreasing.  Short sales are dropping as well.  Those in the conventional market are getting great rates, so they don’t want to move.  With the supply dropping and demand increasing coupled with favorable interest rates makes it a great time to sell.  After all, what you get for your home often comes down to supply and demand.

It’s a wild market with lots of positive signs.  Give me a call so I can tell you where to be positioned and how to be successful in this market.  Please contact me at (650) 766-5300.  We’d be happy to assist you. 

Selecting the Right Real Estate Agent

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All real estate agents are not created equal.  They may have access to the same systems, the same information and market data, similar industry tools used across the board and universal access to government agencies that house important data that may be relevant in helping you sell your home.  So what sets apart the successful ones from the bad apples?  It is how they use the things that are at their disposal – that is what makes all the difference. 

Now, unless you are completely well versed in the process of home selling and real estate, chances are you may not know all the ins and outs of these tools.  So how can you measure the success rate of potential agents you may or may not want to work with?  The answer lies in three important metrics that you can easily employ to help you make that decision.

How Much of Your Work Day Do You Dedicate to the Real Estate Industry?

You want an agent that is 100% committed to their  job and if they are focusing more on a day job with real estate being a secondary thing, you run the risk of inaccessibility, lack of knowledge and experience plus lackluster motivation.  Find out how they feel about the real estate industry and whether they are passionate about their work.

What is Their Area of Expertise?

Many times you could have an agent who is a specialist in foreclosures or short sales. They may work with equity sales or something completely different; the point is to make sure that they understand your needs and are able to fulfill them.

How Many Days on Average Does It Take You To Sell a Home?

What’s the average number of days on the market for properties listed by your prospective agent? Since this statistic can reach as high as six to nine months and in some cases and as much as a year, it is important to ask how your prospective agent ranks on the scale. 

How Close Do You Get in Sale Price Related to Asking Price?

It is important to ask for this information as it relates to the past 60 days.  Given that many agents are not that active in the market, you would be best served to obtain the most recent information possible.  As a seller, your agent’s ability to come close to the asking price is a strong attribute and can mean a difference of thousands of dollars in your transaction.

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At the end of the day, the goal is that you sell your property and sell it well. Selling it well can translate to a higher price, more efficiently managed procedures, smoother and streamlined process, and an overall quicker turn around time.  By following the suggestions in this article, you will be able to discern the best agent in your area to handle your specific needs.  Half the battle of selling your home is in choosing the right agent to help you achieve your goal.