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home buyerIt’s more than just bad luck when a buyer misses out to a more attractive offer. Normally it’s a bad strategy that causes the continued anguish of losing out to better offers. Those that fail to learn from history are doomed to repeat it, that phrase actually works well when attempting to purchase a home in Davis, California. How can a buyer put themselves in a more favorable position?

I have personally worked on both sides of the spectrum. First with sellers that have been fortunate enough to receive multiple offers, but also with buyers that were competing with other buyers for the same property. The process of preparing an offer for a buyer on a home with multiple offers can be agonizing for each party involved. It always boils down to who wants the property the most.

Some buyers will not get involved in a competing war, so that shrinks a percentage of the competition. Here’s an itinerary for those that want to stay in the fray. In most cases, the highest price wins out, but understand it’s not always the price that wins. Buyers have to be willing to bite the bullet and give up some of their contingencies, depending on how many buyers you are competing with. An example, let’s say you make an offer $20,000 above asking price, to make this proposal even more appealing, you might consider removing your appraisal contingency. This only makes sense if the property can justify the higher price. Buyer beware with this tactic.

There are many cash buyers on the market that are purchasing homes and making strong aggressive offers. There are ways to combat those buyers that can at least put you on a more level playing field. Removing your loan and appraisal contingency will do the trick. This strategy only works if you are completely pre approved for a loan and there’s no chance the property won’t appraise at value.

Your realtor should try to get as much information as possible about the sellers needs and requirements. They can do this through conversation with the listing agent. For instance, a seller doesn’t mind a quick close, but wants a 30 day rent back or they desire to sell their home “as is”. Trying to adapt to the sellers needs puts you in a better position.

I also use a tried and true philosophy that seems to work if you have a motivated buyer. This one takes guts and not for the weak at heart. A buyer offers $5000 increments depending on the amount of competition. For instance, a home has two offers, that third offer might consider going $15,000 above the listed price. There are many strategies that can put a family in a stronger position and these are just a few. Please visit my website JohnnyBrooksHomes.com for helpful tips on selling or buying a home or to view all homes for sale in Davis, California and the surrounding communities.

 

 

 

 

 

 

 

 

 

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creekside-place-homeTiming is important in every aspect of someones life, never more so than the optimum time to sell their home. There’s probably fewer landmines when selling a home in Davis than other areas and timing is not as important here than maybe some other communities. Even now as the inventory increases, well priced homes are selling rapidly and in some cases, above asking price.

Even as the year started, home buyers were out in mass visiting open houses and making offers. As home values continue to increase, up 20% since 2012, there are a few concerns that might reverse the current trend. Mortgage rates are expected to rise between now and the Fall season. This will affect how much home a buyer can purchase and possibly put a dent in the surplus of buyers that are currently on the market.

The other obstacle is the new Cannery Subdivision that is now laying the ground work for a Summer grand opening. The expected price of these new homes will be in the neighborhood of $600,000 and up. They will also have some of the highest taxes in Davis, but families looking for a new home will certainly wait for this opportunity. Beware of the first phase of any new subdivision, they always offer the least desired location.

Enough of the negative. We currently have 85 properties for sale in Davis at an average listed price of $694,685 and a price per square foot of $346. There are 77 homes in pending status that average $593,195 and a price per sq ft of $334. As of May 11th this year, there have been 158 properties sold at an average sales price $556,608 and a price per sq ft of $330.

Through the same period in 2014, there wer 139 Davis homes sold at an average sales price $551,372 and a price per sq ft of $306. In 2013 we had 163 sold properties at an avg. sales price of $483,344 and a price per sq ft of $273. The early signs are obvious that property values are up, but those numbers would also suggest that home values in Davis will continue to rise for the immediate future.

The pending home sales will increase the overall sales price over the next few months. Timing is vital when selling a home in Davis, California and the time is perfect for home sellers in the current housing environment. Please visit my website JohnnyBrooksHomes.com for helpful tips on buying and selling a home or to view any property on the market in Davis or our surrounding communities.

 

 

The Golden Rules of Selling A Home.

12454836-key-with-tag-saying-sold-on-small-family-houseWith society being so litigious, it’s no wonder the most expensive commodity anyone will buy or sell might create anxiety on the part of most consumers. When it comes to selling a home, there are numerous rules a seller should adhere to. Most of the principles start well before the sell actually happens. There are also circumstances that determine the sequence a seller should take.

Upfront Inspections: Rather you occupy your home or own it as an investment getting inspections prior to listing can save both money and suspense. A pest inspection will confirm any concerns with termites and dry rot. The cost for this inspection can run any where from $100 to $200. Using a local reputable pest inspector that doesn’t bid on the work they find is important instead of the $50 fly by night companies that give you a cheap inspection but does bid on their findings. can any one say conflict of interest.

Most owners that have been in their home for many years probably know the ins and outs of their home quiet well and find my next suggestion unreasonable. Get a full-scale whole house inspection. This inspection runs from $400 to $600 and they inspect every inch on the property with a fine tooth comb. This inspection should always be done prior to listing on investment properties, especially if the owner lives out-of-town and maybe sees the home sporadically. Whole house inspectors are jack of all trades but masters of none, meaning if they find a problem they can’t diagnose the issue. A further inspection by a competent expert to identify the problem would be recommended. Knowing the issues with your home before you get an offer can assist in negotiations and make life easier during this stressful process.

Disclose, Disclose, Disclose: The quickest road to litigation is through non disclosure. In today’s real estate there are numerous disclosures that sellers have to answer honestly. Any current or prior issues with your home should be disclosed to the buyer. If it’s broke fix it, is the best policy when it comes to defects.

Additional Incentives: When you get an offer on your home, negotiate fairly. I’m not suggesting giving your home away, but scrabbling over the most minuet aspect is pointless. Offering a buyer a one year home warranty is inexpensive ( less than $400) and gives the buyer the added security in case anything happens in that first year, but it also gives the seller the peace of mind of knowing the buyer is protected and less likely to demand those defects be paid by the seller six months after closing. Please visit my website http://www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home or to view local area homes for sale in Davis, California and the surrounding communities.

first-time-homebuyer-advice-276x300Selling a home during the holiday season can be a nerve wrecking venture for a home owner. The stress of the season and the added importance of keeping a home ready to show on the spur of the moment is one of the reasons sellers take their property off the market until the new year. What about those families that have no choice but to sell. A job transfer or a vacant investment property can’t wait for next year. The features that sell a property any other time of the year is just intensified during the holiday season.

Price it to sell it: Properties naturally stay on the market longer at the end of the year because fewer buyers are looking. Sellers have to take that into consideration and price their home accordingly. The value you could get in spring and summer are no longer relevant. In a prior blog, I pulled up stats that back that up. Over the last three 60 day cycles, prices have dropped by 10% in Davis from the peak. The comparable sales you use to price your property should be the last 60 days, going back further than that has less relevance.

Condition is vital: All through 2014, properties sold in Davis that received the best value were those homes that were in pristine condition. The end of the year sale is even more important because of the shrinking demand. To expect peak value for a home that needs multiple improvements at any time is difficult, in the holiday season it’s virtually impossible. If your home has flaws a price adjustment is a must, especially when the buyer pool has been depleted. If you can’t lower the price, it might be wise to remove your home from the market and put it back on in February or March.

Make your home accessible: With the number of buyers dwindling In November and December it’s important to allow viewings and open houses. Make concessions when a family wants to view your home. You can’t make false judgements and assume this family isn’t serious and can wait until you feel like having your home shown. Find something to do on weekends and allow your agent to hold the property open. There’s no sure-fire guarantees that every home will sell at the end of the year, but you can certainly increase your chances by following these golden rules. Please visit my website http://www.JohnnyBrooksHomes.com for helpful tips on selling or buying a home or to view all local area homes for sale in Davis, California and the surrounding communities.

The Best Time of Year To Buy A Home.

home buyerThe title is a bit misleading because there are circumstances that determine when a buyer can or will purchase a property. Anytime is a good time to buy a home, but the optimum time has always been the last couple of months of the year and the beginning of a new year. Let’s analyze why now is the best time to purchase a home.

Less Competition Than Normal: The majority of serious buyers have already bought a home before the Autumn leaves have fallen. The competition from other home buyers lessens the demand and increases your chances of negotiating with a seller on price and terms. It’s quiet common for the Spring and Summer buyer to compete against other buyers for the same property. Multiple offers are more the norm during the buying season, not so much in the later stages of the year. There’s a double edge sword in waiting though. The selection of homes are scarce in October through December. The chances of finding that special home is limited during the holidays.

Sellers Are Normally Motivated: For a buyer willing to wait until the end of the year to buy a home creates a perfect storm for that purchaser. The anxiety for a home seller is overbearing when their home hasn’t sold before school starts back. Their motivation increases ten-fold and the buyer benefits from this added impetus. As demand dwindles sellers might start making price deductions and other incentives that would have been unheard of three months ago. All is not lost for the seller though, the limited inventory can work in their favor when negotiating with a buyer. In Davis, the difference in asking price and eventual sales price is less than 1% during the Spring and Summer and slightly higher in the Fall and Winter.

Other Benefits In Waiting: Other minor aspects that work in the buyers favor are lenders have plenty of time to focus on your loan and you certainly won’t get lost in the shuffle of a loan officer trying to put 20 loans together at the same time. They can spend more time with your loan package than they normally would have time for. This also works for whole house, pest, roof inspectors. Much less hectic schedule for those professionals makes it easier to schedule appointments expeditiously. Patience is a virtue is true for those smart home buyers that have decided to wait until now to get serious about buying a home. Please visit my website http://www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding communities.

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