by Gagner | Aug 14, 2013 | Real Estate News, Sellers
Asking Home Prices Cool Most in Hottest Housing Markets: Las Vegas, Oakland, and San Francisco SAN FRANCISCO, August 6, 2013 – Trulia, a leading online marketplace for home buyers, sellers, renters, and real estate professionals, today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor. Based on the for-sale homes and rentals listed on Trulia, these monitors take into account changes in the mix of listed homes and reflect trends in prices and rents for similar homes in similar neighborhoods through July 31, 2013. Asking Home Prices Fall 0.3 Percent Month-Over-Month Asking home prices are now starting to lose steam as mortgage rates rise, inventory expands, and investor demand declines. Nationally, asking prices dropped 0.3 percent in July – the first month-over-month (M-o-M) decline since November 2012. Seasonally adjusted, prices rose 3.3 percent quarter-over quarter (Q-o-Q), down from a peak of 4.2 percent in April. Year-over-year (Y-o-Y), prices are up 11 percent nationally; however, this change is an average over the past 12 months and is therefore slower to show changes than monthly and quarterly numbers. Asking Home Prices Now Slowing Down in the West In 64 out of 100 U.S. metros, the quarterly asking home price gain was lower than in the previous quarter. This slowdown was most apparent in the West Coast where prices have rebounded strongly already. Among housing markets where asking prices rose sharply Y-o-Y, price gains dipped the most Q-o-Q in Las Vegas, Oakland, and San Francisco. Other California metros, including Sacramento, Ventura County, San Jose, and Fresno, saw Q-o-Q gains drop by at least two percentage points between April and July. Meanwhile, many metros in the South and Midwest are seeing price...
by Gagner | Mar 27, 2013 | Before Photos, Sellers, Uncategorized
Here is a story about how one person made a great profit in Cambrian real estate with some extra cash and a small amount of effort. A previous blog of mine spoke to the hot condo market that exists in Cambrian today, and this posting takes it a step further by illustrating how big money can be made. As in all investing, the idea is to buy an asset (in this case a condo) at a low price, add value and then sell at a higher price. Sounds simple, and it is if you follow a proven strategy and avoid any big mistakes. So here goes…. In February 2012, my friend put a $274,000 offer on a condo that the bank was short selling. It required a $10,000 deposit and the bank did not give final approval until the end of October (yes, it required more than 8 months for an answer). Once the bank gave final approval, they gave my friend 10 days to close the transaction. Luckily, he had the cash in a bank account which allowed him to get the transaction done. As a side note, IF he had not had the money, there are hard money lenders who provide experienced real estate investors cash in less than 2 weeks (for a cost). Since February, the market had gone up in value, so instead of keeping the condo as a rental (his original plan), my friend decided to rehab the interior of the unit and resell to a retail buyer. This practice is commonly called “flipping”. Using a contractor I referred him to, he remodeled the...
by Gagner | Oct 30, 2012 | Sellers
The situations that home sellers find themselves in are as varied as sellers themselves. With that said, most sellers will find that using the traditional sales approach works well and helps them meet their objective of getting maximum value for their home. But there are many times when a less traditional method for selling your home might be better. Typically this is the case when a seller has another primary objective besides getting the highest offer. In this article, I will cover those situations in which a cash offer is generally the best solution. The seller that needs to move quickly often cannot wait for the process of selling their home to a buyer that requires bank financing. Buyers that are “pre-approved” still require at least 4 weeks for the bank’s final approval and funding. Further, the lending standards have become so tight that over 30% of 2012 sales transactions in CA never make it to the finish line. When this happens, the seller has to start over and the process can become painfully long. In addition, when a transaction falls thru there is typically a negative impact on the final sales price. For sellers that need to sell in less than 4 weeks, they have one choice, which is to sell to a cash investor that does not require bank approval. It’s the only way in today’s market. What about the seller that has a physically distressed property? Banks are reluctant to finance homes that are in poor condition. Whether a house is inhabitable, and thus financeable, is a subjective matter. It is important to note...
by Gagner | Oct 14, 2012 | Sellers
There are times when selling your home using the traditional approach of hiring a real estate agent might not be your best choice. It is true that a real estate agent will list your house on the MLS (multiple listing service), and therefore maximize its exposure to the market. Generally speaking, this should maximize the amount of money you can obtain for your property. So why wouldn’t this always be the best approach? To answer that question directly, let’s consider any one of the following scenarios: Your house is in disrepair and the bank is unwilling to provide a loan to your buyer. You need to move quickly and do not have time to list and show your property to the market You require very flexible terms that a “retail” buyer might not be able to provide (ie. fast close or long close, etc) You hate the hassle of keeping your house perfectly clean and having prospective buyers come thru your home for the 30-60 days required to sell You do not wish to pay a realtor the 6% commission they will charge you for selling your home These reasons and many more may be why you should consider alternatives to selling your home using the traditional sales process. For example, private investors can buy your house fast, easy and often times with no sales commissions. In addition, there are many FSBO (for sale by owner) websites which help regular folks sell their homes without paying sales commissions and on their own terms. Lastly, there are many forms of seller financing and lease-to-buy options that can be used to...
by Gagner | Oct 14, 2012 | Sellers
Are you looking to sell your house, but find your circumstances to be unusual? If so, you are not alone. We hear from sellers every day who have challenging situations where a traditional approach to selling their home just won’t work. For example, a job transfer that requires a fast move to somewhere far away, or an inherited property that is in bad disrepair, or a family situation that calls for flexible terms (ie extended close date, rent back,,etc.). As discussed in my previous blog, private investors serve a purpose to help in these and many other “unusual” circumstances. Share your goals, and in most cases a solution can be found. The beauty of working with private investors is that they can generally offer the flexibility and creativity needed to help you solve your problem. But be careful, because not all investors are created equal. Besides obvious factors like experience and money (both critical to providing a successful solution), there are other factors that will either help you or hurt you. Does the investor have a team of people that will help him or her execute a smooth transaction? How experienced is their team? Does the investor have a consistent track record of following thru and closing on all their transactions, or do they let small hurdles become large hurdles? In other words, how willing are they to work with you if new challenges arise? What about their quiver of tools to give you choices and help you solve any problem? Perfect examples are seller financing, sale lease-back options and rent-to-own solutions. These might not be right for you,...
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