1. When There Isn’t Time For Improvements, There Is Still Time For Profits

Sometimes when you have to sell you have to sell. Perhaps you just received word your job is getting relocated, maybe “the perfect home” just came on the market and you want to take advantage of putting an offer in, or God forbid, maybe you are experiencing an unfortunate emergency. If you don’t have the time to spend on additions and improvements, there are more quick-fix strategies that can net large returns.

Hiring interior decorators or designers from a staging company to fill your home with coordinating furniture, fresh flowers and high-tech TVs and stereo equipment can sometimes result in a faster and higher-priced sale.

2. Maximize Storage Space

One common reason people are looking for a new home is because the place they are currently living has become too small for them. The funny thing about this is that often people move to a larger house, only to find out that they brought too much with them and once again are out of space.

 Efficient storage space easily solves this problem in the eye of a prospective buyer. Adding efficient storage in attic spaces, below staircases, in garages and even in closets will be looked upon very favorably by a prospective homeowner and in some cases could be the deciding factor between your home and another.

 The best part about these updates to your home is that they are often very inexpensive, and something you can even do yourself.

 3.Think GREEN

Whether of not you like to hear the term “Green”, the fact of the matter is that efficiency is still here. For some it is because the increased costs of utilities such as water and electric/gas. For others, it’s simply the sense of responsibility when it comes to the environment and protecting it. No matter the reasons, efficiency is still always looked upon more favorably by prospective homeowners.

 As noted above, this particular improvement definitely needs to be considered, when looking at how much money you will recoup during the sale of your home. For instance, Solar Panels may not pencil out. That said though, perhaps a tankless water heater is a great option (especially if your water heater is due to be replaced).

 Things like tankless water heaters, or even water efficient landscaping will save homeowners expense in the future, thereby making your home more attractive to them, than others.

4. Repair or Replace Any Broken Features In Your Home

Even though inventory is low in many markets, and we’re seeing home prices still at a high, homeowners should ALWAYS take into consideration the entire ramification of a particular remodeling project, if they want to recoup their costs when selling.

One of the most logical, and easiest to justify remodeling/improvement expenses would be anything that is replacing something that is broken or about to break. While it can be argued that homeowners may or may not prefer a Viking Gas Range to a GE Electric Range, it can be absolutely be assured that a prospective buyer will be greatly turned off when touring your home and discovering your stove is broken.

Getting rid of obvious problems or potentially large future problems can really pay off, as you prepare your home for the market.

5.Think Geek

Even old homes can be upgraded with electrical features and tech features that are not only affordable, but attract the attention of potential homebuyers. For instance, electrical sockets with built in USB plug in ports, pre-wired Wi-Fi, and even integrated sound throughout your home can really make potential buyers take notice. The more convenient they find your home, the better impression it is going to make on them.

Preparing your home for market is a little bit of art and a little bit of science. It can seem overwhelming, BUT the good news is we are always there to help you. If you are considering putting your home on the market, but aren’t sure where to begin, please contact us anytime. We’re happy to visit you at your home, learn about your goals, and make suggestions that will ensure you get the highest sale price possible for your home.

So you are winding down, thinking of downsizing and considering your options. There is a movement going on right now that is redefining retirement communities. Gone are the days of “retirement communities”, making way for redefined and re-outfitted active adult communities.

This period of your life should be an exciting time. You’ve “paid your dues” and it’s time for you to take it a little easier and enjoy the rewards of all your hard work. That said, preparing for this transition can seem like a big task and even be a little unsettling. Who will help you sell your current home? How much research will you have to do to find the perfect adult community? What is the right mix of social and recreational offerings vs. value for the money it costs to live in the community?

Today, we are finding that more and more, baby boomers want amenities like fitness rooms, personal trainers, media rooms, bicycle paths and cultural events, all available inside the communities they are living in. To those ends, today we wanted to share some things to consider, as you are in the process of picking your retirement destination.

1) This isn’t your parent’s retirement community

The term Retirement Community has a bad connotation. It gives one the vision of a nursing home for old people. Today’s Active Adult Communities are nothing like that. Boomers are moving to active adult communities for the amenities, sense of community and fun times.

2) Even With Vast Amenities, Active Adult Communities Can Be Affordable.

When it comes to amenities and activities, active adult communities offer a huge range of options. If you are interested in living in a place with tons of recreational and social activities, it can be very affordable. These “bundled” groups of activities are able to be offered to community residents often at discounted prices that are significantly lower than you would pay if you were to try and put all these things into action, on your own, one by one.

That said though, consider whether or not you actually want or need the recreational and social activities offered in the community you are looking at. For instance, if golf course privileges are a large part of a community's offerings, however you do not like to play golf, financially it may make much more sense to choose an alternate community.

3) Do your due diligence

Moving to an active adult community is kind of the same as living in a Condo complex that has a Home Owners Association. To those ends, you need to treat your move the same and do some checking into the health of the community and it’s association. For instance, are there lots of residents that are behind on paying their monthly dues? Are there maintenance issues that are stacking up that might put the HOA reserve funds in jeopardy? Are there lots of properties falling into foreclosure?

 All of these things can negatively impact the HOA and community, ultimately putting undue burden on the other residents that live there.

4) Don’t forget: This is supposed to be fun

Last, and certainly most importantly, do not forget that this is supposed to be FUN! You’ve worked hard, paid your dues and deserve to be able to relax and enjoy the next chapter of your life. To those ends, think long term. Make sure there are plenty of things for you to do now, tomorrow, and even 10 years from now that you are going to enjoy doing.

The more you get to experience, the happier you will be. Statistically, the happier you are, the healthier you will be. You are setting out to embark on one of the most exciting chapters of your life. You deserve nothing but happiness.

If you are considering downsizing and possibly moving to an active adult community, but don’t know where to start, please contact us anytime. We are more than happy to speak with you in a confidential, no obligation consultation, to give you tips and suggestions, and make sure you start off on the right foot.

 With the best time of the year to sell coming to a quick end, Orange County appreciation is coming to an end. 

A Ceiling in Values: Sellers are learning the hard way that they can no longer arbitrarily set the price. Buyers, sellers, REALTORS®, lenders, and everybody else involved within real estate know that there is a palpable difference in the 2014 real estate market. The number of homes fetching multiple offers is shrinking drastically. Homes are sitting on the market. The expected market time is on the rise. The active inventory has been growing all year and just surpassed the 8,000 home mark, just a few hundred short of a long term county average. 

The lesson for 2014 is that sellers cannot price their homes on a whim, on what they would like to walk away with from the sale of their home. 2012 and 2013 were completely different. In those years, values were skyrocketing. When that occurred, sellers were able to price their homes above recent sales. They dealt with multiple offers and often sold for more than their list prices. That simply is not the case anymore; yet, sellers continue to adopt that strategy and overprice their homes. 

What changed? Values reached a level where buyers were no longer comfortable paying much more than the most recent sale. They wanted to pay what is “fair,” also known as the Fair Market Value. This explains why month to month appreciation has stalled. Unfortunately, news outlets across the country mainly report on year over year statistics; whereas, month to month statistics tell the real story. Orange County’s headlines highlighted a 10% increase in the median sales price year over year in June. Drill down a little bit deeper, when you remove new home sales, residential detached houses are up 6.6% and condominiums are only up 4.2%. That’s the difference in a year. Most important, month to month appreciation is flat. 

With flat appreciation, the Orange County housing market is bumping along a value ceiling. And, the Autumn Market is right around the corner. Cyclically, housing cools a bit after the kids go back to school. It will cool further during the Holiday Market, from Thanksgiving through the first few weeks of the New Year.

When the market bounces along a value ceiling, occasionally there is a sale in a neighborhood that neighbors get really excited about and are lured to jump into the housing fray. Typically, they price above that sale in hopes that they can get more. They also add an additional amount leaving “room for negotiating.” Remember, this is a market where buyers do not want to pay too much for a home. So, the home sits on the market. Eventually, after one or two reductions, they arrive at or near the sales price of the home that motivated them to sell in the first place. Surprisingly, they still are unable to sell and just sit on the market longer. It could be condition, location, or upgrades, but often it is that buyers do not want to match the price of that most recent sale. After viewing similar properties, potential buyers feel that another buyer simply overpaid. That can still happen today, but just because one buyer is willing to stretch the value, the vast majority are not. The bottom line: when a home sits on the market even though it is priced at or near a recent closed sale, the price is too high. 

As we bounce along a ceiling, sellers should price their homes realistically right from the start, taking into consideration the most recent sales, all pending sales, their condition, location, and upgrades. DO NOT PRICE BASED UPON OTHER LISTINGS; instead, know your competition, but price according to pending and closed sales. There are neighborhoods where every single home on the market is overpriced. In that case, instead of the lowest priced home selling, everybody will sit on the market with absolutely no success. 

Active Inventory: The active inventory increased by 3% in the past two weeks and pushed past the 8,000 home mark. 

The active listing inventory added an additional 231 homes in the past two weeks and now totals 8,057. That’s the first time the inventory has been above 8,000 homes since January 2012, 2••• years ago. Thus far in 2014 the inventory has grown without pause, adding an additional 3,324, a 70% increase, and is poised to continue to increase through the end August. Keep in mind, in order for the active inventory to grow, more home need to be placed on the market than are coming off as pending sales. 

Last year at this time there were 5,522 homes on the market, 2,535 fewer than today.

 The first two quarters of 2014 are in the rearview mirror and this year is unquestionably different from prior years.

Mid-Year Update: This year’s market is marching to the beat of its own drum.

From 2007 through 2011, the Great Recession brought housing to its knees. The market was dictated by lenders and their new strict guidelines; plus, they controlled the market with the unbelievable numbers of foreclosures and short sales. Distressed properties were the norm. However, by mid-2011, housing began to mend. It was undetectable to anybody participating in the market, at first, but slowly but surely, the active listing inventory began to drop as fewer homes were placed on the market, including foreclosures and shorts sales.

In 2012 the green light was switched and, initially, investors flooded the market. They were quickly followed by a relentless stream of normal buyers. The inventory continued to drop as demand grew. Multiple offers were generated and cash was king. Homes flew off the market at prices that beat the socks off of the most recent comparable sales. Appreciation was rampant.

The first half of 2013 was nothing short of crazy. The inventory dropped to a ridiculous, anemic level. There were not enough homes coming on the market as most homeowners sat back and watched their homes appreciate, restoring just about all of the losses from the Great Recession. Buyers and investors wanted to take advantage of the incredible values and historically low interest rates; they were willing to pay any price for a home, even if that meant paying thousands more than the most recent closed sales. The uncontrollable appreciation slowed by the midpoint of 2013. Suddenly, homeowners no longer got away with overpricing their homes and they began to sit. By August, buyers were unwilling to pay extra for a home; instead, they wanted to pay as close to the Fair Market Value as possible. The inventory climbed from mid-March through October on the backs of overpriced sellers.

The second half of 2013 paved the way for 2014, a year that has been marked thus far with a relentless increase in the active inventory. Let’s take a closer look at the major changes in 2014 that have differentiated itself as a unique year:

Active Inventory - after starting the year at 4,733, the active listing inventory has increased by 60% and now sits at 7,550 and is still climbing. The long term average for Orange County is about 8,500 homes and within site. Even if that level is not reached this year, the added inventory has created quite a bit of breathing room for buyers. So many homes are overpriced, that buyers’ sense of urgency has just about vanished, unless a home is properly priced. The vast majority of sellers learn the hard way that overpricing is a front row ticket to sitting on the market without success.

Demand - there is demand for housing, but there just are not enough realistically priced homes on the market thus far this year. As a result, demand, the number of new pending sales over the prior month, has been noticeably lower than the past couple of years. Currently, demand is running about 15% less than last year at this time.

Expected Market Time - with an increasing inventory and less demand, the expected market time has been much higher than the last couple of years. Currently it is at 90 days. Compare that to last year’s 49 days and the overall feel in the streets is palpably different. At three months, it is still a seller’s market, but not like 2012 and 2013. Double digit year over year appreciation has been replaced with 3-5% annual appreciation, meaning that any appreciation from month to month is almost undetectable. In other words, sellers can no longer get away with arbitrarily and overzealously pricing their homes. It’s a seller’s market where they get to call all of the shots and may get a few thousand dollars more than the last comparable sale IF AND ONLY IF they price their homes realistically.

The Orange County housing market is not changing that much. What you see is what you will get for the rest of the year. 

Cruise Control: The inventory is increasing, demand is flat, and foreclosures and short sales are almost nonexistent. 

This year’s housing market is remarkably different than the prior two extremely hot years. The market is still really strong; it’s just not out of control crazy like before. 2012 and 2013 were marked by very low inventories and not enough homes to go around, so multiple bids and rampant appreciation were the norm. Home values were rocketing upward, almost too fast. The appreciation that occurred in those two years should have been spread over five years. It just happened overnight, way too fast. 

Flash forward to today, and the active inventory has been on the rise the entire year. We have gone from an inventory of 4,733 homes at the start of the year to 7,182 today, a 52% increase. Meanwhile demand has not changed much this spring. In the past month, demand has only increased by 24 homes and totals 2,723, far fewer than last year when it posted 3,144 pending sales. And, short sales and foreclosures only account for 7% of all closed sales thus far in 2014. For those buyers holding out for a foreclosure, they made up only 2% of closed sales. The chances of securing a foreclosure, if that’s what your heart desires, are extremely slim. You can also expect a lot of competition since everybody is sniffing around for a “deal.’ 

With a rising inventory and flat demand, the expected market time has been rising and appreciation has slowed to a crawl. As a matter of fact, appreciation is starting to bump up against a ceiling. Because values have increased substantially, they are at a point where they cannot continue to increase without taking a giant bite out of home affordability. Buyers do not want to be left holding the bag like they did right before the Great Recession, so they are not allowing the bidding up of prices to continue. They have traded in their exuberant zeal to pay whatever price to obtain a home for a methodical approach to paying the Fair Market Value of a home. That’s because home values were a deal over the past couple of years and now they are priced where they need to be. They are no longer a “deal,” but they are also not overinflated either. 

Values are bumping along a ceiling, not really changing much at all from one month to the next. The average sales price for May was $721,000 this year versus $692,000 last year, only a 4% difference and that is year over year. Month to month it is almost negligible. 

So, if you are a seller, waiting for values to rise to your overpriced level, or if you are a homeowner waiting for values to increase before you place your home on the market, you are going to be waiting a very long time. Today’s market is going to be tomorrow’s market for some time into the future. What you see is what you get. The Orange County housing market really does feel like it’s on cruise control with no major changes recently nor into the future. Sellers need to get real and price their homes according to the most recent comparable sales. If you are on the market for a while with no offers to date, the market is speaking to you loud and clear, “You are overpriced.’ For buyers, if you are waiting to purchase because you think that home values are going to drop down the road, think again. That is not going to happen anytime soon. If that’s the message that you are reading into this report, you are receiving the wrong message. Memo to all buyers: it is still a seller’s market. Sellers are in control. If they price their home at the Fair Market Value, they will procure plenty of activity and will sell quickly. Sellers are not able to randomly price their homes, but they are still in the driver’s seat. The expected market time would have to rise to 6 months for it to transform into a buyer’s market. Currently, the expected market time is 2.64 months, or 79 days. Not even close to the 180 days needed to tip the scales to a buyer’s market. 

It is as if the housing market is on cruise control. The inventory is rising and will continue to through the end of the summer. Demand is not changing much and that will continue through the end of summer as well. Distressed properties, both foreclosures and short sales, will take a backseat in the housing market for the long term. The expected market time will continue to slowly rise, but will not slip into buyer’s market territory anytime soon. This is the Orange County housing market To expect anything different right now or on the horizon is irrational. 

Despite extremely strong demand, the active inventory has doubled from last year’s historical lows.
Active Inventory: In the past month, the active inventory has increased by 9%.
In the first quarter of 2013, the active inventory in Orange County was at an unprecedented, extremely anemic level. The low was achieved at the very start of January and bounced around that bottom through mid-March where it reached a level of 3,183 before climbing without pause for seven straight months. 

It tapped out at 6,350 homes in mid-October, after nearly doubling. Typically, the inventory reaches a yearly height at the beginning of the Autumn Market, the end of August when the kids go back to school. Reaching the height was delayed because too many homes were coming on the market despite the slower season. Homeowners were hearing about massive appreciation in year-over-year numbers, so they were still clamoring onto the market. But, they were not getting the complete picture. Many of these reports failed to talk about, or highlight, month-over-month appreciation. True appreciation had come to a grinding halt at the beginning of the Autumn Market.

The best way to explain what we were experiencing in terms of housing appreciation was in the analogy of taking off from John Wayne Airport, the craziest airport takeoff pattern in the country. Because of a noise ordinance over Newport Beach, pilots accelerate their jet engines to an extraordinarily high level and then release the brake as they rapidly take off and climb into the sky. That was appreciation from January 2012 through July 2013. After hastily climbing for a very short period of time, the pilot cuts back the engines as the plane flies over the Newport Beach Back Bay. Passengers feel like they are on an amusement park ride, zooming into the air and then, suddenly, gliding over Newport. From August through now, Orange County housing has been flying over Newport Beach, experiencing very little appreciation.

The market has shifted from buyers climbing over each other, doing whatever it took to purchase a home, even if that meant wildly paying way over the last comparable sale, to a much more methodical approach, a desire to pay the Fair Market Value for a home. Sellers used to be able to get away with randomly pricing a home way over the last comparable sale because demand was high, prices were low, interest rates were low, and the inventory was at a very low level. As prices escalated, the desire to pay much more than the most recent comparable sale dropped substantially. When sellers overpriced their homes, they sat on the market and did not achieve success. More homes were coming on the market than were going off as pending sales. The active inventory blossomed. 

This year has been no different in terms of buyers approach to the market. They still are acutely aware of price and do not want to overpay. The active inventory started 2014 at 4,733 and has since added an additional 1,636 homes, again without pause. It has climbed by 35% so far this year and now sits at 6,369, a level not seen since March of 2012, over two years ago. Compared to last year’s bottom, prior to turning skyward, the inventory has increased by 100%, doubling. From here the trend will continue in adding more inventory at a faster clip than homes are pulled off the market and into escrow. It appears as if it will reach a height of 8,000 to 8,500 homes at the end of August, attaining a long term average for Orange County, a normal. To this point, the inventory has been at abnormal, anemic levels. It has been growing on the backs of overzealous, overpriced sellers.

For buyers, more inventory is great news. That means that there are more homes on the market with more choices. However, buyers need to understand that it is still a seller’s market, with an expected market time of 2.3 months, or 69 days. Sellers are still in control. That does not mean that they are in control of price, able to randomly choose a value and achieve success. It does mean that if they price according to theFair Market Value, they will sell fast, with multiple offers, and will be able to dictate many of the terms.

Ultimately, the market is moving towards balance as the inventory rises. It has come a long way since the crazy lows of last year, moving towards a healthy, sensible level.

Last year at this time, the active inventory was at 3,556, that’s 2,813 fewer than today.

The Spring Market is finally here with stronger demand and sellers who are still in the driver’s seat.

A Seller's Market: with an expected market time of 65 days, it is definitely a seller’s market.
The Orange County Spring Market arrived late this year. It’s not because of the harsh winter. It’s not because of a major change in interest rates. Instead, buyers are pulling the trigger and purchasing homes that are priced right.

Cyclically, this is the hottest time of the year in terms of pending sales activity. More buyers pull the trigger during the spring than any other time of the year. Many mistaken the Summer Market as the best time of the year to sell, but that’s just not the case. The confusion stems from reports of closed sales. There are more closed sales during the summer compared to the spring. More buyers prefer to move when the kids are out of school, over summer vacation. Depending upon the school, summer vacation runs anywhere from mid-May through August. In order to move during those months, homes are placing into escrow from now through June. Since pending sales, on average, take 45 days to close, those summertime sales are really a reflection of pending sales during the spring.

Now is the busiest time of the year for real estate. The expected market time for all of Orange County has dropped from 98 days in January to 65 days today. Anything below a five month expected market time is a seller’s market and Orange County housing is well below that threshold. Many feel the market has stalled because homes are not flying off the market like they did last year. But, for the first half of the year the market was crazy and way out of balance. The expected market time last year was at 35 days. The inventory was at an incomprehensible historical low during the spring. Home values soared and many buyers were unable to purchase due to a lack of supply.

Today’s seller’s market is a bit different because homes are not appreciating uncontrollably. Sellers are in the driver seat, enabling them to sell at a reasonable price in a reasonable amount of time. That does not mean that they are able to price a home wherever they want and they will achieve success. Last year, sellers were able to aggressively price their homes much higher than the last sale and they were still receiving multiple offers and often selling for higher than their list price. That simply is not the case today.

After a couple of years of steep appreciation, buyers no longer want to pay a lot more than the most recent closed sale. Homes that are priced too high compared to comparable sales are just sitting on the market. In order to achieve success and lure willing and able buyers, they simply will have to reduce their asking prices.

For example, if the most recent comparable sale is $500,000, a home placed on the market at $550,000 will not sell. Many sellers feel they need to leave extra “wiggle room” and will price the home at $525,000 in hopes of achieving a little bit more. Often overlooked, if the home was priced closer to $500,000, demand is much stronger right now, so the odds of entertaining multiple offers increase dramatically. As a seller, the best case scenario is to deal with multiple offers. Multiple offers squeeze the very most out of price, enabling sellers to often achieve at or over the asking price.

Buyers need to understand that they are not in the driver’s seat in today’s seller’s market. Even with an increasing inventory, the supply of homes is still well below long term averages. This is the primary reason that the expected market time is so low. There are no “incredible deals,” the distressed inventory makes up only 6% of the overall market, and sellers have the upper hand. So, paying the Fair Market Value is reasonable, but a “deal” is out of the question. If a home needs interior paint, subtracting $20,000 is not realistic. As a buyer, the winning strategy is to carefully determine price based upon comparable sales data, taking into proper consideration location and condition.

The good news for buyers, there is more inventory and the expected market time is more favorable than a year ago. But, buyers are not able to be extremely picky either. The old axiom, “you snooze, you lose” definitely applies. Many buyers are spinning their wheels with an unrealistic approach that will result in not being able to secure a home.

Active Inventory: The inventory increased by 4% in the past two weeks.
The active listing inventory added an additional 263 homes in the past two weeks and now totals 6,115, levels not seen since last November. Last year’s inventory height was reached in October and totaled 6,350. This year, the inventory has grown unabated and is poised to continue to increase through the end August. By then, the inventory may surpass the 8,000 threshold, much closer to Orange County’s long term average.

After starting the year at 4,733, the inventory has climbed 1,382 additional homes, a 29% increase. Keep in mind, in order for the active inventory to grow, more home need to be placed on the market than are coming off as pending sales. Overpricing is not helping matters either, because they sit on the market until the seller reduces the asking price closer to the Fair Market Value where buyers are willing to pay.

Last year at this time there were 3,407 homes on the market, 2,708 fewer than today. The inventory has risen 79% since last year.

Demand: Demand increased by 12% in the past two weeks and 21% in the past month.

Demand, the number of new pending sales over the past month, increased by 296 and now totals 2,818. As we roll further into the Spring Market, cyclically the hottest time of the year for housing, demand will remain elevated. It will most likely reach a height for the year by the end of this month. Last year demand was at 2,893 pending sales, just 75 more than today. The gap between last year’s demand and this year’s is narrowing considerably.

Distressed BreakdownThe distressed inventory decreased by 2% in the past two weeks.

The distressed inventory, foreclosures and short sales combined, decreased by 6 homes and now totals 273. The distressed inventory remains at a very low level. Only 4% of the active listing inventory and 8% of demand is distressed. Compare that to last year when it represented 6% of the inventory and 18% of demand, and two years ago when it represented 25% of the inventory and 49% of demand.

Distressed properties have an insignificant effect on the overall housing market because their numbers have dwindled considerably. In March, only 1% of all closed sales were foreclosures and 5% were short sales. That means that 94% of the market consisted of good ol’ fashioned sellers with equity in their homes.

In the past two weeks, the foreclosure dropped by 11 homes and now totals 72. There are 144 zip codes in Orange County, so there simply are not enough foreclosures to go around. 1% of the inventory is a foreclosure. The expected market time for foreclosures is only 40 days. The short sale inventory increased by 5 homes in the past two weeks and now totals 201. The expected market time is 34 days and is the hottest segment of the housing market. Short sales represent just 3% of the total active inventory.

Located in the highlys sought after community of Beacon Hill Summit, this home offers 4 spacious bedrooms, and fantastic views.

Property Highlights

• 4 spacious bedrooms
• 3 Remodeled bathrooms
• Upstairs teen/bonus room
• Remodeled kitchen
• Approx. 2,900 square feet

OPEN HOUSE 

Saturday, 4/12/14, 12pm-4pm

Most homeowners have one burning concern when it comes time to sell their home.
 
How much money will I end up with at the end of all of this? 
 
It’s a fair question, and there’s usually a lot riding on how much the net proceeds will be after a home sale. In most cases sellers are still carrying a mortgage on the home that they’re selling, and the many fees that can come into play during escrow can really take a bite out of the bottom line. Because of this, many sellers become hyper-focused on the price of their home, and often ironically set themselves up to receive less from the sale. This is why pricing a home correctly right from the start is crucial in the home sale process.

So how can you maximize the net proceeds from the sale of your home? Here are a few of the top guidelines to keep in mind if you’re looking to maximize your profits:

1) The Price is Right

The first 30 days after a home is listed is a critical time in which exposure to potential buyers will be at its highest. Especially in a hot market like Orange County, homebuyers often receive daily updates from their agents on homes that are brand new to the market. If the price is right, they will want to jump at your listing before someone else snaps it up.

The biggest mistake a home seller can make at this time, would be to overprice their home. Trustworthy real estate agents will tell you up front if they think your desired listing price is too high. While in the end, the seller can choose to list their home for whatever they want, it’s extremely important to heed the advice of an experienced agent. Remember, they know the market, and are in tune with what buyers will be likely to pay.

So what if it’s overpriced? If it doesn’t sell right away, we’ll just lower the price.

Many sellers want to take the “wait and see” approach, and will only agree to lower the asking price after a period of time on the market. The problem with this is that the initial pool of buyers may have already lost interest in the home. Once a home sits on the market, there is also a tendency for buyers to wonder, “What’s wrong with it?” For obvious reasons, this sentiment can greatly decrease the ultimate selling price because of decreased competition.

In short – come out of the gate strong with a competitive price, and give buyers a reason to act fast. Who knows? You might even see a bidding war!

2) Keep an Eye on Buyer Demand

Timing can be everything when it comes to listing your home. It’s important to understand the market factors that can affect the value of your home. Typically in Orange County, buyer demand for housing peaks in the springtime. That fact combined with record low inventory trends makes now an extremely opportune time to list your home for sale. However, an experienced agent should be able to guide you on how to get the maximum value for your home at any time of the year. As always, it’s important to listen to their advice if you really want to get the most for your home.

3) The Stage is Set

Possibly the most common piece of advice given to sellers, is to de-clutter and de-personalize their home before it goes on the market. It may sound simple, but proper home staging is absolutely one of the major criteria for selling your home for top dollar. Don’t take this one for granted. By working with your agent, you can create a plan to make sure your home is at it’s best before buyers come in. Give them the “wow” factor!

If you’re in Southern Orange County, and are looking for advice on when to sell your home, give the Hakola team a call today! We’ve got over 30 years experience in this market, and are always happy to answer any questions you may have about how to get top dollar for your home. (949) 661-SOLD (7653)

Please join us at one of our OPEN HOUSES this weekend! We'll be featuring two very special properties in two of the most desirable communities in Laguna Niguel, and Aliso Viejo.

Saturday we'll be at...

48 Endless Vista, Aliso Viejo

Fabulous Executive home located in the prestigious and highly sought after community of Oak View Estates set within the Westridge Development of Aliso Viejo. This former model home features 5 Spacious Bedrooms, 5 bathrooms, plus Teen/Bonus Room and Downstairs game room. Light and Bright with Beautiful Views of the Hills and City Lights. Plush Neutral Carpets, Neutral Paint and White Cabinets. Features 3 Cozy Fireplaces

Join us Sunday at...

15 Copps Hill Street, Laguna Niguel

Fabulous enlarged Beacon Hill Summit home with four bedrooms, den, three and one-half bath. The home has been extensively remodeled inside and out using the finest materials and workmanship