Michael E. Anderson
Broker Assoc. ABR, RSPS DRE# 01417114
(805) 698 - 3770
Anderson Home Pros Real Estate
Rita G. Anderson, Broker
CRS, GRI, SRES, e-PRO, DRE# 00569537, CA
When I decided to move to the Central Coast I knew exactly what I wanted. I wanted a house as nice as the one I was selling, plus an ocean view, plus a little coastal charm, all in the nicest city there was (Pismo Beach, Shell Beach, Grover Beach or Arroyo Grande). That’s all. Oh yeah. I wanted it all at just a wee bit more than my Valley home was costing me.
My Realtor broke it to me gently and incrementally, bless his heart. Instead of rolling his eyes, then falling on the floor laughing, he gently suggested that I would find home values in the area I was considering a bit higher than I was used to. He showed me what I could expect for my money here by scheduling appointments to see homes that were in my price range in beach towns. I was amazed and horrified! The money that went so far and bought such a fine place in my Valley city (Visalia) bought a two-bedroom oldie, and the only ocean view involved standing on the toilet seat and looking out the bathroom window. I am a very stubborn woman but thank goodness, my Realtor is a very patient man. Although it took me a long time to accept that I was going to have to change my search parameters, I am now happily enjoying a really beautiful home two towns away (Santa Maria) from where I thought I had to be. Life on the Central Coast is everything I had hoped it would be, even better.
By the same token, many sellers initially want to put their homes on the market for far more than either appraisal values or comparable neighborhood listings (comps) suggest is reasonable. Sometimes need/greed/expectations pushes their decision, sometimes just love and happy memories, but selling price needs to be supported by factual numbers. Also, to get the most out of any home, be prepared to spend some money on painting, landscaping, cleaning and staging. Spending five thousand to spruce up your house can bring many times the rewards in increased selling value. Ask your Realtor(R), agent or broker for the most up-to-date advice on how to maximize your selling dollar.
Deep cleaning (does your home have odors…pet, cooking or other offensive smells), landscaping for curb appeal and de-cluttering are always a must when getting a home ready for selling and they are relatively simple and inexpensive things that are within the reach of any homeowner. How about other upgrades? Painting is always a great idea if you stick to popular neutrals and do a neat job, or can afford a professional painter. A sloppy job done in your favorite over-bright shade can turn off buyers. How about bigger up-grades? Think carefully before you invest. Studies show that most buyers are interested in upgraded kitchens with granite counter tops and bathrooms upgrades pay off as well, but adding a second story in a neighborhood of single story homes may not net any return at all. You may like the idea of solar pool heating but your buyer may prefer the look of shiny, rust-free faucets throughout your home. If any part of your home it looks old and tired consider changing it.
Whether you are a buyer or a seller, the experience and education of a Realtor(R) can help make the entire experience run much more smoothly. That after all is their job. Homeowners themselves, they’ve not only “Been there, done that” but their profession is dedicated to making your great expectations into reality.
By the way, that wonderful Realtor(R) now has his Real Estate Broker’s license and enough certifications to fill a wall, but he’s still just as patient. Call Michael E. Anderson at (805) 698-3770, or email him at Mike@AndersonHomePros.com.
I have been writing for a couple of years about the impending shortage of homes and the increase in property values after the balloon bust in the market. Homeowners who survived the downturn and felt the upside down home values dragging their retirement investments below water are now seeing the light of day. Buyers who have been sitting on the sidelines may regret waiting much longer.
Homeowners now face a conundrum, do we stay the course, do we jump ship and sell while the market it hot, do we downsize or move up before the market out-paces our ability to pay or interest rates rise? Every homeowner’s situation is different and they will need to make difficult decisions. I try to educate my buyers and sellers so that they can make educated choices. Here is the current release from the California Department of Real Estate. This is not a dire warning but an insight that should not be ignored:
LOS ANGELES (April 15) Strong sales in higher-cost coastal regions and heated market conditions drove California’s median home price to its highest level in March since May 2008, while inventory shortages continued to stifle home sales, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) reported.
“While home sales were essentially flat from February, sales declined moderately from last year, as an extreme shortage of available homes continued to dictate the market,” said C.A.R. President Don Faught. “Statewide inventory dropped 36 percent from last March and was below 3 months for the second time in the past few months. Supply conditions are particularly tight in the lower-priced segment of the market, as inventory for homes priced below $300k plunged more than 50 percent from the previous year.”
The statewide median price of an existing, single-family detached home climbed 13.7 percent from February’s $333,380 median price to $378,960 in March, reversing a two-month decline. The month-to-month increase was the highest since C.A.R. began tracking this statistic in 1979. The March price was up 28.2 percent from a revised $295,630 recorded in March 2012, marking the 13th consecutive month of annual price increases and the ninth consecutive month of double-digit annual gains.
“No doubt the dearth of home listings is driving the upsurge in the median price, as is an increase in sales in the higher-priced segments,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Sales of homes priced $500,000 and higher are up more than 34 percent from last year, and have been on a rising trend since early 2012. Sales growth in the coastal regions – Marin, Orange, San Diego, and San Luis Obispo, in particular – helped push the statewide median price up to the highest level in more than four years.”
Other key facts of C.A.R.’s March 2013 resale housing report include:
The available supply of homes for sale fell significantly in March, falling to a 2.9-month supply, as measured by C.A.R.’s Unsold Inventory Index. The March Unsold Inventory Index for existing, single-family detached homes was down from 3.6 months in February and down from 4.2 months in March 2012. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal.
As you can see from the numbers, the market has indeed changed and is heading in a positive direction…albeit more for sellers than buyers. In last month’s blog I gave you the local values in different cities that we work in and those numbers have caused some buyers to look at making the move. Sellers who are still sitting back and waiting for even more appreciation may regret waiting much longer. Maximizing your return is my primary goal and is something I strive toward every day. History is the only source for a reasonable perception in a difficult marketplace.
It is just a matter of time before the home builders gear up for massive expansion in the market. This will cause some price stabilization since they often sell for less than the re-sale market. This will also fill a large void in the housing supply issue.]
I don’t know the future, I didn’t come here to tell you how this is going to end. I came here to tell you how it’s going to begin…Again.