by Gagner | Feb 5, 2013 | Uncategorized
With the Cambrian (and overall Bay Area) real estate markets very hot right now, it truly is a great time to consider moving up. This means different things to different people. Perhaps you have outgrown your house and are looking for something larger or maybe a nicer neighborhood. Whatever your goals, it may be time to consider making a change for the better. Why consider moving up now? Because chances are you will get a great price for your home in today’s hot market (if priced and presented well) and mortgage interest rates are still at historic lows. To be more specific, Zillow indicates that home prices in the Cambrian Park area were up 15.8% year-over-year in Dec 2012. Interest rates for 30 year fixed mortgages are well into the 3% range for those that have good credit. So the window to buy your dream home before prices rise too high and/or interest rates start to climb is open for now. When trying to move up, it is always a balance between a strong market that provides you a good selling price for your existing home and one where the “move up” home is still affordable. I believe we are at a point where this balance is very optimal. If anything, the sales trends for Cambrian area home prices are rising faster (as a percentage) on lower priced homes than higher priced homes. Couple this balanced market with sub 4% mortgage rates, and a new home might look more affordable than ever. Of course, all of this depends on your home having equity. A discussion with an experienced realtor...
by Gagner | Feb 3, 2013 | Uncategorized
Condo markets in the Bay Area are on fire, with most “priced right” properties getting multiple offers. Real estate experts agree that people have finally begun realizing it’s less expensive to buy a condo in many areas of San Jose, such as Cambrian, than pay rent. Because of their lower cost of entry, a 25% down payment on a condo is a manageable amount of money for many to come up with. Of course, at the current rate of price appreciation, this situation may not last for very long. Since the summer, the average days on market (avg DOM) for condos in the Cambrian 95124 zip code has ranged from as little as 9 days to as much as 25 days (even thru the typically slow months of Nov and Dec). This is incredible when you think about it. On average, condos in Cambrian are basically selling the week after their 1st weekend open house. The stats are even better in Cambrian zip 95118, where the avg DOM in July was an unbelievable 6 days!!! Such demand inevitably causes bidding wars that raise prices well above list price. In 95124, selling prices above list price started in July and peaked at 107% of list in the month of August. That is pretty phenomenal until you consider condo sales in 95118, where selling prices were above asking every month of 2012, and peaking at an eye-popping 122% of list in the month of August. It all makes sense when one considers that the majority of condos in both zip codes can be fetched for between $200K-600K. Considering the central location...
by Gagner | Jan 27, 2013 | Uncategorized
For months now, the national news has been reporting that residential real estate prices have turned the corner and are rising throughout most areas of the country. Of course, real estate trends are local events, and nowhere is the rise in prices more evident than in the bay area. If you own a home in the Cambrian area of San Jose or have been considering this area, you may be surprised by the strength of the recovery. I love the Cambrian area of San Jose for many reasons, including its central location to work and play, good public schools and reasonable prices, relative to other parts of Silicon Valley. Besides the economy, this combination of factors really helps home prices over time. The positive sales trends for homes in Cambrian area began in March 2012 and have continued mostly unabated right thru the generally slower seasonal period (Oct-Dec). My intention is to provide readers with an ongoing picture of the overall Cambrian area housing market, along with specific market topics that may be of interest. Two key figures that indicate the strength of any real estate market are “average days on market” (avg DOM) and the “sale to list price ratio”. Prior to March 2012, the avg DOM in Cambrian area were well above 2 months and often pushing 3 months or more. In fact, this figure for all of San Jose was well above 3 months since the great recession began. Suddenly, beginning in March 2012, the avg DOM dropped to 40 days (95124) and 27 days (95118), and continued to mostly trend down all the way up...
by Gagner | Jan 26, 2013 | Uncategorized
You may or may not have heard about lease options. Why and when would this be a credible strategy to sell your house? We’ll discuss those concepts here. A lease-option allows a seller to sell their property when it may otherwise be difficult to sell (poor physical condition, undesirable area or neighborhood, buyer’s market, etc). In many cases, a seller can net more money when offering terms to a buyer. In addition, sellers can often avoid paying realtor sales commissions by using a lease-option agreement (as they have already found the buyer themselves). In most lease-option arrangements, the tenants agree to pay move-in “option” money that will be used for credit toward a down payment on the house. You’ll also want them to demonstrate their commitment by paying above-market rent, the “above” portion of which (10 percent and up) will be credited toward a sale. If the tenants back out of the deal at the option point — typically one to three years after move-in — you’ll get to keep those monies, which can amount to a nice little chunk of change. Another bonus is that lease-option folks are inclined to maintain a home better than conventional renters, because they have a vested interest in it. In other words, you’re less apt to suffer the dreaded “renter trashing.” Also, you get to retain the income-tax benefits of the house during the lease period and won’t have to pay taxes at all on the option money until it’s formally credited toward the house. A lease option, by the way, is not to be confused with a lease purchase, a very...
by Gagner | Jan 2, 2013 | Uncategorized
Seller financing is almost always an attractive proposition to a home buyer. This is particularly true for investors that are looking to minimize their financing costs while fixing and flipping a property. The general wisdom is that a seller can maximize their selling price with attractive terms. Seller financing generally offers the buyer the lowest cost of acquiring a given property. Why would a seller finance their own property sale? Many reasons: Make it easier and faster to sell an otherwise difficult to sell property. Seller won’t recognize capital gains until each payment is made, minimizing their tax liability Acting as a bank, the seller essentially creates an annuity, which can provide on-going funds. Maximize sales price by offering more flexible purchase terms. If funds are not immediately needed from the sale of your property, this may be a great option for you. Particularly if the interest you can charge is greater than other returns you can safely make. Think about it, IF the buyer is unable to make their payments, you can foreclose (just like a bank) and take the property back. In the meantime, you have gained the benefits of whatever interest and principal payments the buyer has made. Of course, the risk is that the buyer does not take care of the property and you end up with a house that is worth less than when you financed it. Just like a bank, you should do your due diligence on the buyer. Make sure they have a responsible payment history and reasonable credit score. Generally, people that are responsible have solid credit histories. I also recommend...
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