Selling 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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What 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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We are nearly a third of the way through 2014 and Davis home prices continue to accelerate. Home values are up 16% over 2013 numbers and have jumped 22% since 2011. It’s significant when appreciation steadily increases over a three or four-year period and the market does a complete reversal from a strong buyers market to a controlled sellers market. The current inventory would suggest prices would likely continue the upward trend through the rest of this year.
There are many variables that have caused the jump in home prices. We should remember this has not been an instantaneous appreciation leap. In 2013, home values increased by approximately 10% over the prior year. So this has been a gradual rise. Home values have gained back most of the lost appreciation from the downturn. Davis home sellers are now more in control than at anytime since the housing boom in the early 2000’s.
If we just focus on some of the pertinent numbers this year compared to 2013, we can see why this is the most optimum time to sell. The inventory is down year-to-date. The average sales price has jumped by 16% this year. The average days on the market dropped from 60 days to 36 days. That’s a 40% improvement. The translation, homes are selling at a much quicker pace this year. The price per square foot increased by 10% from $263 in 2013 to $290 this year.
This improved housing market might suggest any agent or company can get the job done. Nothing could be further from the truth. it still takes a tenacious agent with the very best marketing plans to create a buyer frenzy that might generate multiple offers that exceed the initial asking price. It takes more than just placing a sign in the front yard to create the excitement and passion among home buyers as well as other realtors. The attention to detail is still of the utmost importance.
The local Coldwell Banker office represents more sellers and buyers than all of the other local companies combined. More sellers have put their trust in Coldwell Banker over the years and have been rewarded with great service and a financial rewarding experience. I want to personally thank all of my clients for helping me achieve the status of Top Listing Agent at Coldwell Banker through the first quarter this year. Please visit my website http://www.JohnnyBrooksHomes 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.
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In a hot market, the assumption is every home sells as soon as it hits the market. That’s just not the case. Many homes are sitting on the market for an extended period of time for various reasons. As a real estate professional my goal is to supply knowledge, information, preparation and vital facts to assist homeowners with marketing their home. Through 20 years of working in this business, I have worked with hundreds of sellers that have successfully sold their homes and a few homeowners that chose their own path, that weren’t so successful. A look at what might keep a property from selling.
Price It Right: Like any product for sale, if it’s not priced right it won’t sell. When prices are gradually spiking on a monthly basis, it makes it difficult for some sellers to not want to jump way ahead of the current market with expectations that values will eventually catch up. This is a horrible tactic. If you market the home today, it should be priced based on present home values. This is why we have properties sitting on the market for many months instead of a few weeks. The other problem with over pricing your home at the beginning is its fixated in the minds of agents and buyers. The perception that the property is still overpriced, even with price adjustments is very real.
Condition Is Critical: Assuming you can generate top dollar for a poorly maintained home is not using common sense. The better maintained always, I repeat always get the best price. A fresh coat of paint and new flooring can do wonders for any property. Some sellers will neglect making improvements because they’ve heard the housing market has made a complete turnaround and condition is not a priority. The only time I might suggest a seller not make at least cosmetic improvements would be if finances prevented those upgrades.
Working With A Local Realtor: Here I go again harping on this subject. This has come up on numerous blogs that I’ve written. That’s how important this issue is. I specialize in the local market and know the neighborhoods like the palm of my hand. An agent from the Bay Area for instance, knows nothing about Davis outside of locating on a map. If you own a home in Davis, list it with an experienced local realtor. If you own a home in the Bay Area, list it with a local specialist in that town. There’s a number of horror stories that I could go into with properties that were listed with out-of-town realtors. List your local home with an agent outside the region and you might get a yard sign. There’s much more to selling a home than a sign. Choose your agent wisely. Please visit my website http://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.
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In housing it normally takes three years to create a trend. The local market is boiling right now. People often ask me if now is the time to sell. The simple answer is, without hesitation, “absolutely!”. Home prices have soared in Davis. The demand far outweighs the supply and it’s now common for properties to sell above asking price. With home prices up 15% year-to-date in Davis, many homeowners have delayed taking advantage of this price boon and have decided to wait until Spring or Summer to market their property.
After the nearly double-digit price gain last year, followed by this years increase, home buyers are feeling a great deal of angst to get into a home as quickly as possible. The problem they are experiencing is there’s not enough inventory to make up for the pent-up demand. That’s the main reason behind the multiple offers that are so prevalent in not just Davis but the entire region. Some of my recent open houses have had 30 or more visitors on any given day. I had nearly 40 families that came to my most recent open house and it rained for the entire 3 hours. Most seem to be serious buyers that have been searching for a home for many months. That’s the quagmire home buyers in Davis are now experiencing. They want to buy a home but the scarcity of inventory has kept many on the fence waiting for a home that fits the criteria of that given family.
Home sellers could be costing themselves by hesitating the marketing of their homes. Demand is high and supply is low and this puts the seller in control. Spring and Summer brings out more buyers but on the other hand, it also brings out more sellers competing for those buyers. At this time, there’s little competition from other home owners. beating the competition to the punch, in this case, getting your home on the market is a shrewd move for any Davis homeowner.
Will prices continue the upward trajectory and for how long? Will the rest of this year keep home values ramped up in double-digit appreciation? If you look at properties in pending status and use those to project the next few months, prices will stay near the current level. Please visit my website http://www.JohnnyBrooksHomes.com for helpful tips on selling or buying a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.
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