Feeds:
Posts
Comments

Posts Tagged ‘buying a home in davis ca’

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.

 

 

 

 

 

 

 

 

 

(more…)

Advertisements

Read Full Post »

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.

Read Full Post »

gorgeous landscaping AugustWith water rates increasing in Davis, many families are cutting back on water usage by going with a low maintenance yard. Home buyers still like that luscious green lawn that says, ‘come inside!’

Creating an inviting landscape not only ensures a positive first impression with buyers but may also increase your home’s value and lead to a quicker sale.

You don’t have to spend a lot to make big improvements in your home’s curb appeal. Keeping your lawn manicured – mowed and edged – and trimming bushes and trees is an inexpensive way to make a positive impression on buyers. You’ll also want to remove any dead or diseased plants and ensure beds are weeded and freshly mulched.

Before beginning any landscape project, make a plan. And if you live in a neighborhood with restrictive covenants requiring approval by a landscape committee, be sure to follow proper procedures to avoid spending money on projects that you may be forced to undo later. A project plan will also help ensure that you make wise choices and stay within your budget.

Use color and depth to create visual interest, and select a variety of plants that bloom or change color throughout the year so your yard will be attractive regardless of the season. If your yard is open to neighbors’ yards, a street or public areas, consider screening to create a more private space. This can be accomplished with evergreen trees and bushes or with an attractive fence.

Sometimes what you remove from a yard can be as important as what you put in. If the front of your home is obscured by overgrown trees or bushes, remove them or trim them back to help buyers get a clear view of your home. Remember that the goal is to create a welcoming first impression that says, “Come in!”

Trends in landscaping

  • Low maintenance vegetation: less lawn to mow, helps keep weeds in check.
  • More trees: enhance beauty and provide shade.
  • Decks, patios and terraces: offer outdoor living space for dining, entertaining and relaxation.
  • Outdoor lighting: provides enticing views of your home and landscaping at night.
  • Irrigation system: costs more but simplifies lawn care and is attractive to buyers.
  • Please visit my website www.JohnnyBrooksHomes.com for helpful tips on selling or buying a home and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Read Full Post »

Top_Reasons_to_Buy_a_Home_at_the_Start_of_the_YearProperly priced, any property will sell in any market. But how can home sellers figure out what the proper price for a property is? The answer is both science and art. The science is about the prices of comparable properties, or comps that were recently sold or are currently on the market. The art is about the strategy that’s used to try to get the highest possible price for the seller. That doesn’t necessarily mean slapping the highest price you can on the home when it’s listed. The better solution, pricing as close to the perceived current value to encourage multiple buyers to step up with offers.

You never get a second change to make a first impression. A too high price can be risky. Make that mistake, and the home could be overlooked by buyers, resulting in fewer showings and fewer offers, only one offer or, in the worst case, no offers at all. That negative first impression means the house might be on the market longer than it would have been if it had been priced realistically.

Another risk of over-pricing is that even if a willing and able buyer can be found, the sale might get snarled up by the appraisal if the buyer needs bank financing to close. Rising home values have reduced the incidence of problematic appraisals, yet the issue hasn’t gone away. It’s always wise to meet the appraiser at the property with a list of justifiable comps that can back up the purchase price.

The proverbial jury might never deliver a verdict as to whether a realtor should accept a listing the seller wants to over price. Sellers are in charge and will make the final decision on where to price their property. In the zany market earlier this year, sellers were getting the crazy high price they wanted. A middle ground is to pre-negotiate a specific price adjustment that will take effect at a pre-set time if the home doesn’t sell at the price the seller wants.

Some sellers openly declare their desire for a bidding war and will deliberately under price their home, either at their own fruition or at the suggestion of their realtor. There are risk with this approach. It can generate resentment as multiple buyers and the agents who submitted offers are naturally disappointed. The housing market is fluid and every precaution should be taken to price your home a fair market value. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Read Full Post »

gorgeous landscaping AugustCreating an inviting landscape not only ensures a positive first impression with buyers but may also increase your home’s value and lead to a quicker sale.

You don’t have to spend a lot to make big improvements in your home’s curb appeal. Keeping your lawn manicured – mowed and edged – and trimming bushes and trees is an inexpensive way to make a positive impression on buyers. You’ll also want to remove any dead or diseased plants and ensure beds are weeded and freshly mulched.

Before beginning any landscape project, make a plan. And if you live in a neighborhood with restrictive covenants requiring approval by a landscape committee, be sure to follow proper procedures to avoid spending money on projects that you may be forced to undo later. A project plan will also help ensure that you make wise choices and stay within your budget.

Use color and depth to create visual interest, and select a variety of plants that bloom or change color throughout the year so your yard will be attractive regardless of the season. If your yard is open to neighbors’ yards, a street or public areas, consider screening to create a more private space. This can be accomplished with evergreen trees and bushes or with an attractive fence.

Sometimes what you remove from a yard can be as important as what you put in. If the front of your home is obscured by overgrown trees or bushes, remove them or trim them back to help buyers get a clear view of your home. Remember that the goal is to create a welcoming first impression that says, “Come in!”

Trends in landscaping

  • Low maintenance vegetation: less lawn to mow, helps keep weeds in check.
  • More trees: enhance beauty and provide shade.
  • Decks, patios and terraces: offer outdoor living space for dining, entertaining and relaxation.
  • Outdoor lighting: provides enticing views of your home and landscaping at night.
  • Irrigation system: costs more but simplifies lawn care and is attractive to buyers.

Beautiful landscaping can make a difference in the way a buyer will view your home. If you neglect the yard, what else have you neglected is the way a buyer approaches a home with poor landscaping. Prepare your home for sale by starting with that all important yard. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Read Full Post »

Now that the local and national elections are over, we can put that in our rear-view mirror and move on. The real estate market is proof in the pudding that our economy is on the uptick throughout the country. Davis, California real estate certainly falls into that recovery category. A high percentage of towns and cities that were hit hardest by the market crash are now experiencing an increase in housing prices and home sales. Davis is unique for a number of reasons when you consider home prices are double that of our neighboring communities. We were somewhat insulated from the huge loss in appreciation that most locales went through.

The Davis housing market had actually started showing signs even before this year of some stability. From 2009-2011, property values and the number of homes sold were steady and stable. For 2012 the number of sold properties were up compared to 2011 by over 20%. During that same window, the property values slightly dropped by 5%. We should not be alarmed by the meager decrease in home prices, they can easily be explained. More investors and first time home buyers filtered back into the market. They make up a large segment of buyers and neither are looking at the more expensive home. This will naturally bring down the average sales prices.

Comparing numbers over the last two years will show why there is so much optimism among everyone involved with real estate. For the month of October this year we had 30 properties that sold, of those homes the average sales price was $527,070 and the average square footage was 2,177. During the same month in 2011, there were 19 homes sold with an average sales price of $419,242 and the square footage was 1,652. The higher sales price can be attributed to a larger amount of repeat buyers ( owners of homes prior) buying up and purchasing more expensive properties.

For the first 10 months of 2012, we have had 426 homes sold with an average sales price $452,274 and the square footage was 1,777. During the same period in 2011, there were 331 homes sold that averaged 1,817 square feet and sold for $477,321. We are teetering on a decent recovery, assuming interest rates stay respectable and home buyers and sellers regain confidence that our elected officials can create a full-blown economic recovery.

The Davis Water Advisory should be making a decision soon on a rate structure that hopefully will be the fairest way to bill its residents for water. The $116 million surface water project will be available for a March 2013 public vote on the project. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Read Full Post »

Buyers are often tempted to cut corners on things like home inspections to save money for fun items like furniture or a big-screen television. Don’t! A home inspection is one of the best investments you can make when purchasing a new home or other real estate. As a matter of fact,  every realtor worth his weight of gold, will strongly encourage a buyer to get a whole house inspection. The money spent for this inspection, normally $350 to $500, could end up saving a buyer lots of money and pain in the long run. Just imagine a home with major foundation issues that can’t be detected by a novice, but found during a thorough home inspection. They go through a home with a fine tooth comb and diagnose any and all defects that might not even be known by the seller.

Learn how to use a home inspection to your advantage with these pointers.

Plan and Prepare

Think of a home inspection as a fact-finding mission. Having a complete home inspection performed is one step toward finding out everything there is to know about the property.

Go beyond the basics by having water, soil, electrical, HVAC, pest and other systems thoroughly tested in addition to the regular home inspection. Hidden home defects often become apparent, including poorly performed repairs, forgotten faults, structural damage or other potential pitfalls, that could transform your dream home into a nightmare.

Avoid higher insurance premiums or more stringent mortgage terms by understanding the full history of the property.

Save Money

Almost every property has a few defects – even new homes – and buyers are often surprised how seemingly insignificant items can add hundreds or even thousands of dollars to the price of a home. Having an independent inspection performed often saves more money than it costs, since the sellers are forced to fix the problem or negotiate the price based upon the new information. Remember, once a defect is known the sellers are legally bound to disclose it to all prospective buyers.

Negotiate

Motivated sellers may not have the time or interest to fix all the problems on a property.

If you have more time than money, a home inspection provides a strong rationale to lower the purchase price or work out other alternatives while the home is being repaired or renovated. Please visit my website www.JohnnyBrooksHomes.com for helpful tips in buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Read Full Post »

Older Posts »