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Archive for October, 2014

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.

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The Best Time of Year To Buy A Home.

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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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imagesWhat does the housing market and weather have in common? They are both cyclical. Almost overnight there seems to be a major shift in the housing market. Some of the shift can be attributed to the time of year, but as we go through the numbers, the change will certainly catch your attention. If we use increments of 60 days, the last 3 cycles are startling.

The most recent cycle would be August 21st through October 21st. There were 90 properties sold during that period at an average sales price of $535,412. The average price per square foot was $308 and those properties averaged 35 days on the market. The second cycle would be June 21st through August 20th. This is considered the heart of the selling season for Davis and every other community in this country. There were 123 homes sold with an average price of $569,297 and a price per square foot of $313.

The last cycle from April 21st through June 20th will only reinforce the drastic changes the Davis housing market has experienced. There were 125 sold properties with an average sales price of $581,317. The price per square foot was $322 and these properties averaged 23 days on the market. That’s a 10.8% drop in home values since the April through June cycle.

The price per square foot also dropped slightly to 4% over that same period.  The average days on the market rose by 35% from the 1st to the 3rd cycle. These numbers are just small windows and not meant to alarm homeowners.  As a matter of fact, home prices are up 10.7% year to date from 2013. The average price per square foot increased from $283 in 2013 to $308 this year. That’s an 8.8% jump.

As the year’s peak selling season comes to a close, the inventory of available homes for sale will continue to decrease and buyers will be able to find good valued properties throughout the last two months of 2014. If you are contemplating buying or selling a home, please contact Johnny Brooks at Coldwell Banker in Davis. We out sell competing agents by a 3 to 1 ratio. Not only does Coldwell Banker in Davis sell more of our own listings than our competition does, we also sell more of Lyon’s and Re/Max’s listings than they do, by a wide margin. Please visit my website http://www.JohnnyBrooksHomes.com for helpful tips on selling and buying a home, scan my informative blogs and easy access to view all local area homes for sale in Davis, California and the surrounding communities.

 

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