Top 10 Projects to Raise House Prices – Infographic

Competition Rises as Supply Drops

The intense market competition led to more properties being sold above asking price. In 2012, the share of homes sold with a price above the list price increased to 33.1 percent, more than doubled the long-run average of 15 percent over the last 20 years. It was also the highest since 2005 when the housing market was extremely competitive. One third of the REO properties in 2012 were sold above asking price, as compared to 30.4 percent for short sales and 19 percent for equity sales.

Properties also stay on the market for a much shorter time than they did in 2011 because of the increased market competition. A typical residential property stayed on the MLS for five weeks in 2012. That’s a significant drop from 10.5 weeks in 2011, and was the lowest since 2005. Historically a property stayed on the market for an average of 6.4 weeks.

With the tight supply conditions not expected to disappear anytime soon, the intense market competition is here to stay. Multiple offers and above asking-price offers most likely will continue to be the norm of the market in the upcoming year.

If you are a seller for whatever reason, it is a good time to put your property on the market this year.

Understanding Today’s Market: Where did the inventory go?

Trends in California Real Estate

Trends in California Real Estate

Today’s Home Buyer:

Despite concerns about the performance of the market, there are buyers who are taking advantage of today’s prices and low mortgage rates.  A survey done by the California Association Of Realtors in 2011. Asked buyers what got them off the fence and what was there primary reason for buying now instead of waiting.  Their responses pointed to a familiar theme of improved affordability due to price declines and favorable financing. The majority of buyers felt that prices cannot get any lower. This was the consensus of four in ten buyers making their purchase.  Other reasons for buying now versus later. A desire for a better location or a larger home. Also safety of neighborhood, schools, and proximity of friend and relatives.

The survey also revealed the Internet is the primary tool of buyers. They used it not only for research on the housing market and neighborhoods, but to find homes and their agents.  However, while the Internet offered a wealth of information, 80 percent of buyers indicated that they found the home they purchased through an agent.  Over half of the buyers survey indicated they use social media for agent referrals, view home videos, agents Facebook pages and

to get home buying tips. The overwhelming Majority (93 percent) are receptive to receiving information about home buying via Social media.

Twelve Reasons to Work With a Realtor

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you’ll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® CODE OF ETHICS requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).