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Posts Tagged ‘number of homes for sale’

How Many Homes are for Sale?

19 Jan

Its been a while since I posted the number of homes for sale in the Inland Empire/Foothill corridor area of Southern California.  We are two weeks in to 2012 and the news is that home sales are up.  Is inventory up too?  Well not yet but we are about 6 – 8 weeks from the start of the Spring selling season so let’s take a look at how many homes are for sale right now. Why is this important?  For the same reason you get a checkup at the doctor’s office, it’s good to know how healthy you are.

Upland has 207 homes for sale – 61 are short sales and 29 are REO’s (bank owned)

Rancho Cucamonga – 454 homes for sale – 220  short sales and 47 REO

Ontario – 377 homes for sale – 199 short sales and 52 REO

Montclair – 56 homes for sale – 28 short sales and 3 REO

Fontana – 574 homes for sale – 301 short sales and 67 REO

Claremont – 89 homes for sale – 21 short sales and 5 REO

La Verne – 86 homes for sale – 26 short sales and 7 REO

Pomona – 355 homes for sale – 175 short sales and 47 REO

San Dimas – 99 homes for sale – 29 short sales and 11 REO

Total homes for sale – 2297.  Short sales – 1060 and REO – 268

Overall, 46% of homes for sale today are short sales and only 11% are REO, 43% are standard sale.

But wait, didn’t the banks foreclose on 1000′s of homes in southern California the last week of 2011?  Yes, but they have not hit the market yet.  At the end of the 1st quarter we will take another look at the numbers.  Real estate has always been a numbers game,  by keeping track of the numbers we will have a good idea about the health of the real estate market.

 

 
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Posted in Buyer's market, Escrow, FHA, Home inventory, Homes For Sale, market value, Real Estate Update, REO, Seller's market, short sales, Title, total listings

 

Showing Your Home

17 Jan

Show Time!  You have hired the best Realtor in town to represent you on the sale of your home,  the flyers are in the flyer box on the for sale sign post out in the front yard and your Home is clean and ready to show!  Congratulations!  You’ve done it – you are selling your Home!

This big step is exciting and scary all at the same time.  Your phone starts ringing with Realtors wanting to make appointments to bring their Buyers to see your home.  Will they like it?  What will you do?  I firmly believe that it is ok to be home when the Realtor and Buyers come to view your home but that’s it – remove yourself to your garden, the neighbor’s house whatever – just don’t linger around interjecting tidbits that you want to tell them about your Home.  The reason I  think it is ok to be home to greet the prospective Buyers is that sometimes you will get a “feeling” about the Buyers and their agent.  That can go a long way in negotiating the sale.

Sometimes you can’t be home to greet the agent and the Buyers.  That’s ok too.  A Realtor will have a keypad that is registered to them and they will use it to open the lockbox that your agent has placed a key inside.  The great thing about the electronic lockbox is that when it opens it records the agent’s name and time.  When the agent is done showing your home and replaces the key in the lockbox it will record that too.  Your listing agent will have a log of who has been in your home.

On the downside, yes sometimes Realtors will make an appointment and never show up or call.  That is rude to leave you waiting but it is going to happen and the reason it will happen is because maybe the house right before yours was “the One” and the Buyers and their agent rushed back to the office to write an offer on it.  Another possibility is that as they drove up to your home something wasn’t right for them – your home is on a corner (some people love living on a corner – me – and others don’t), maybe it was the neighborhood – don’t worry about it!  There is a Home for everyone!

Since you have priced your home well,  you will have many showings in the first week.  This first 7 to 10 days is the most critical time for your home.  I always say if you don’t have an offer in the first 7-10 days – then your home is not priced well and you should adjust the price.  Now remember I am talking about the Inland Empire/Foothill corridor area of southern California.  The housing market is moving very fast here and this is what you should expect if you are living in Upland, Claremont, Rancho Cucamonga, Montclair, Fontana, Ontario, San Dimas or La Verne.  The supply of homes is low in these cities and Buyers are ready to buy.  Next blog will be about the home inventory in these cities.

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Price Your Home At Market Value

11 Jan

Market Value – what is that?  Real Estate 101 defines market value as the price, a ready willing and able buyer is prepared to pay for a home.

Another definition:  The sale price at which a property would change hands between a willing buyer and willing seller, both having reasonable knowledge of the relevant facts.

And another definition:  Fair market value is the value of a property, based on what a knowledgeable, willing buyer would probably pay to a knowledgeable, willing seller in the real estate market.

The Realtor you have chosen to represent you in the sale of your Home has given you “the comps” which are the comparable recent sales of similar homes in your neighborhood.  Realtors know what appraisers know about comps – compare homes by similar square footage, age, amenities, bedrooms and neighborhood.   The comps don’t lie.  Review them with your Realtor.  Drive by the houses that you are comparing.  When you are comparing homes that are currently on the market that are similar to yours, ask your Realtor to show them to you.  It will open your eyes and you will begin to see what Buyers see.

When you feel sure that you have all the information you need to price your house, ask your Realtor to give you a price range that they think your home can be priced.  Think about where you want to be positioned in the Market.

Then price your home at Market Value – not above, that doesn’t work any more.  The homes that are selling right now are priced well.  You might be tempted to price high but you don’t need wiggle room, you need Agents to show your house to prospective, well-qualified Buyers.  You need your house to sell in a reasonable amount of time.  In the Inland Empire where the market is very fast and competitive, if a Buyer sees a home that has been on the market for more than 30 days the first thing they ask is, “What’s wrong with it?”

You need to move on with your Life – so price your Home at Market Value!

 

 

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Hiring a Real Estate Agent

10 Jan

Hiring a Realtor to sell your house is a big step.  Interviewing several local Realtors is recommended.  You might have notepads, pens, calendars and various marketing items that have been sent to your home over the years.  The agent that has been giving you these items is telling you that they “work the neighborhood” and know it well.  So be sure to include that agent in your interviews.

So what do you look for in a Realtor?  Same thing you would want in any other professional: Integrity, honesty and good work ethics.   All the Realtors you interview will have comparable sales for you to review.  These are facts that won’t change from one Realtor to the next.  They all should give you a marketing plan of how they will market your home.  This should include a detailed list of items they promise to do for you such as putting up a sign, making flyers and keeping a good supply in the flyer box, promoting your home at their office meeting, advertising in the local paper.   If you want your Realtor to hold Open Houses, then let them know.  Some Sellers don’t mind having a couple of Open Houses when the house is fresh on the market.  I would encourage you to allow your agent to do at least one.  I tell my Sellers that by doing an Open House I can get feedback from the Buyers.  Buyers are smart and they know what the market is like because they are out there looking.  They have the internet to search and once your home is on the market there are sites like Redfin.com that give information on the last time your house sold, taxes, schools and neighborhood safety.

Let’s talk about lockboxes.  I highly recommend that you have one on your home.  Why?  Because if a buyer’s agent has 5 or 6 homes to show and yours is the only one that doesn’t have a lockbox and has limited viewing times then be prepared for your home to sit on the market for a long time.  If you can’t see it, you can’t sell it!   After all, you have packed up all your valuables and readied your home for sale, put a lockbox on it -  they give your Realtor information about what time your house was shown and who showed it.   I know there are special circumstances, small children’s nap schedules and dogs that need to be put in the dog run but if you really want to sell, you will figure out with your Realtor how to get arrange these things.

Last but not least – pick a Realtor that you LIKE.  That’s right, you need to feel comfortable calling, texting and emailing your agent.  They need to be there for you.  Ok, I’m getting on a tangent here but if you see your agent on a billboard, they probably aren’t the agent for you.  Why?  Because you will probably only see that Realtor once – when they come for the interview.  After that you will be dealing with an assistant.   In my opinion,  you deserve better.  There are many intricate details that can get lost in translation if you are dealing with assistants.   Selling a home is a personal thing that most people go through only a couple times in their lifetime.  Hire the Realtor with a heart and you won’t go wrong.

 
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Posted in FHA, Homes For Sale, Real Estate Update, Title

 

Fix It!

05 Jan

This seems like a no-brainer.  If something needs repair such as a curtain rod, trim around a door or a sprinkler hitting a window – then it is wise to fix it.   Sprucing up your home to show it off can bring you extra $$.

Now there is a fine line here.  I’m the type of Listing Agent that does not recommend installing new carpet, granite counters and any other high dollar improvement.  Most times the Buyer will have their own ideas and style about home improvements and it is too hard to guess what they want.  About 4 years ago I had a Seller who was insistent on updating her deceased parent’s home before putting it on the market.  It took her about 9 months and $50,000 to accomplish this.  We put the house on the market and it sold for much less than I had predicted 9 months earlier due to declining values.  If she had put it on the market without any improvements she would have sold it for a higher amount and not went through all the improvement drama and money.

Now if you are dealing with electrical, heating or roof problems and you know they are in need of repair or upgrading then by all means have these attended to right away.  These can be expensive but a Buyer will automatically put a high dollar amount on fixing them.  Plus you can give the new Buyer the receipt when you close escrow so that they know who to call if they have trouble in the future.

One other thing that I advise Home Sellers is to have a professional home inspection.  For about $350-400 a home inspector will tell you if any of the major systems of the house need attention.  This is especially a good idea if you find yourself selling a parent’s home.  It might have been your childhood home but since you haven’t lived in it for 20 or more years, you might not know if your parents have been keeping up with repairs.

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Title

 

Multiple Offers

09 Nov

I sort of skipped over the multiple offer situation but would like to talk about it now.

For most of my career in real estate in the Inland Empire I have been more of a Buyer’s agent. During these years what I have experienced is multiple offers on most homes for sale.

There is a huge demand for homes and the proof is the fact that every time, and maybe you think I’m exaggerating but it is true, every time I write an offer there are other offers on the same house. It doesn’t matter the price of the home, it can be $125,000 or $950,000 and there are more than one offer that my Buyer has to compete with. So that is the word I want you to remember – compete.

Because the number of homes for sale is low, the demand is high, there is no place for low-ball offers. If the house proves to be well priced, then offer your best. Especially when you are dealing with a bank owned home. The bank will always come back to the listing agent and ask for “Highest and Best”.

Yes, I know you say you don’t want to get in a “bidding war” but if you want to buy a home in this area, you will be competing. Read some of my earlier posts and you will find that competing is not only about price but the terms of your offer.

 
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Posted in Homes For Sale, Real Estate Update

 

Making an Offer on a House

04 Oct

Step 8

It’s not all about price.

The terms of the contract are very important. The main term of the contract that all listing agent’s eyes go directly to is the type of financing. Financing is the type of loan you are using. Are you an FHA Buyer? A conventional Buyer with 20% of your own money to put towards the purchase? A VA Buyer who can use the Veteran benefit that has been awarded to you by being a Veteran? Or a cash Buyer?

At this moment in the San Bernardino/Riverside areas, the conventional Buyer and cash Buyer are King! Sorry to break this to you. Yes, the bottom line is all the Seller is looking at. No, it is not fair. The American Dream of home ownership is being beat to pieces! The investor/buyer that has all cash or the conventional buyer have a definite advantage. An FHA buyer most times is hoping that the seller won’t “mind” paying some of the closing costs but the truth is – they do “mind”. The VA Buyer is at the bottom of the heap and it breaks my heart to say this. The Veteran should have first “dibs” but in this still extremely greedy society, sellers don’t care. Whether the seller is the owner or the dreaded “bank”, they want all the money they can drag out of a buyer.

For a while now, the banks have started saying they will not supply a buyer with a termite inspection or termite repairs, so don’t ask. The banks also will not pay for a one year home warranty which is about $350. So what do you do? You as the buyer pay for these items. Yes, this is a messy time to buy a home but if you get lucky and get your offer accepted, then it is the best of times to buy a home!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

House Hunting – Short Sales

23 Sep

Step 6

The market in the Inland Empire is about 45% short sale listings at this time. If you have unlimited time on your hands and don’t mind waiting and waiting and waiting some more – then a short sale is for you!

I’ve been on both sides of a short sale. I have listed short sales and actually sold them! My hairdresser thanks me for that as I needed lots of touch-ups to hide the gray hairs that started sprouting when I was worried that the bank would foreclose before I could get a short sale approved for sale. At this time, a short sale listing is just that – a listing for sale. There is no guarantee that the house OR the seller will qualify for a short sale with the bank. So let’s back up, the short sale listing might not be able to be sold?

Yes, that is the truth! The owner/seller of the home has to qualify for a short sale of their home. A short sale means that the bank will sell the home for LESS than the current mortgage amount. But, in order for the bank to agree to selling the house as a short sale there MUST be a hardship. A hardship is a loss of job, death, divorce or illness. A hardship is not a loss of equity in the house. In other words if the seller bought the home 4 years ago at the top of the market and they owe more on the mortgage than what the house is worth then unless you have a hardship, there will be no short sale. I get calls daily from distressed sellers about this but if you remember back in the 90′s when we first experienced short sales, these rules were not in place. An owner back then could short sell their home and go right across the street and buy another home for less and many did. The rules are pretty strict this time around. In fact, do you know that the bank asks the seller for 2 years of tax returns, current bank statements and pay stubs? The reason they do is so they can look for assets. If the seller has assets, the bank wants them and they are not shy about asking for them! After all the seller signed on the dotted line for the mortgage and they promised to make the payments.

Ok, so how does this affect a Buyer, well like I said in a previous post – don’t fall in love with the house – because the bank might not grant a short sale. As a Buyer, find an experienced Buyer’s agent that knows the right questions to ask of a short sale listing agent. It takes more research to determine if the house you are interested in is able to be sold. Another thing to remember, the short sale owner because of their hardship is usually not in a good frame of mind. They are sad, depressed and can have no motivation to cooperate. That leads to not wanting to show the house to prospective Buyers. It is very common to hear that there are no showings on short sale listings or even that it is available to view at restricted times. Some sellers decide to rent their home out and then there are tenants to deal with – messy! My all time favorite showing restriction – the house is drive by only – meaning you buy it without seeing it until the bank approves the sale!

I’m sure you have friends and family that have bought short sales and can tell you all the horror stories they went through. Trust me, they are true. According to today’s newspaper, our area will not return to normal for another 5 years. So call me if you want more information about short sales, they can be negotiated and you shouldn’t be afraid of them just educate yourself and decide if you are willing to wait.

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

House Hunting – Standard Sales

16 Sep

Step 4

You know the area you want to buy and the price and size of home that is comfortable for you but now the big question.

Do you want to buy a standard sale home, short sale or bank owned home?

The standard sale home seems like the easy route. However, a large majority of the standard sellers in today’s market think they are “losing money” by selling their home. They could have sold for much more years ago but they didn’t and now life changes are prompting them to sell. Be careful because sometimes these sellers over price a home just to see if they will get a bite. Have your agent “run the comps” which is Realtor talk for – what is the home worth according to recent sales? If you find that the house is overpriced but you want to make an offer then write a good clean offer at market value. All houses sell for market value so the Sellers will need to come to grips with that at some point. Be prepared for a counter offer, 99% of all offers will get a counter offer. If the Sellers are reasonable, you will have bought a house. Don’t feel bad if they don’t take your offer. Many Sellers reject the first offer and then their homes sit on the market and at the time I am writing this, it’s almost guaranteed that their house will go down in value by waiting. Move on to another house for sale.
In the Inland Empire there is a “Perfect Storm” at this moment. Interest rates are amazingly low, you can buy a house and make mortgage payments that are close to what you are paying for rent. And there are many homes for sale. Inventory is good in this area and more homes are coming on the market all the time so don’t worry, your dream home could be just around the corner!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Not All Homes Listed For Sale Are For Sale?

23 Jul

Say what?  That sounds ridiculous!

You’ve stayed up late looking online for your Dream Home.  The next morning you call your Real Estate Agent and tell her/him about this wonderful home that you want to see and possibly make an offer on.  But you find out the home has multiple offers and one offer has been submitted to the bank.  It is a short sale…

Why is it still listed for sale online?  It’s not available but yet it comes up every time you do more searching for homes.  This can’t be, maybe your agent doesn’t know what she/he is talking about!  So you make a call to the listing agent direct to get to the bottom of this, yes it is in escrow but you can place a back up offer.

Some Listing agents are not doing their jobs well.  This home that has an offer submitted to the bank for negotiation of the short sale should NOT be online as an active listing for sale.

So all I”m saying, don’t fall in love with that short sale home.

 
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Posted in FHA, Homes For Sale, Real Estate Update

 
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