Los Angeles and South Bay Real Estate Video Blog with Lenny LaRocca Lenny LaRocca

What does our team do differently when we represent our clients? Today, let me explain. Looking to buy a Los Angeles home? Search all homes for sale  Selling your Los Angeles home? Get a FREE home value report All of us at the LaRocca Real Estate Group feel very fortunate to have the opportunity to serve all of you. Today, I’d like to talk about how our service differs from that of others in our industry. First of all, communication is a No.1 priority for our team. Whether it be in real estate, family, or friendships, communication is important. For us, quality communication means being timely and direct. But there are a number of other things we do differently. We’re also a very structured group. Every member of our team is professionally coached, and we have a specific plan of action we follow for every one of our transactions.   This plan isn’t new, though. It has been used in the real estate industry for more than 40 years. The difference our team brings to this plan is the people we have executing it. Of course, before we can execute this plan, we have to generate buyer leads. One question we frequently hear from sellers is how we generate these leads. They want to know where our buyers come from. What does our team do differently when we represent our clients? Today, let me explain. About 40% of buyers may come from another agent or broker in the community a listing is in. Buyers also come to us after having seen signs outside of properties. Many people think that buyers come from open houses, but this isn’t typically the case. Because our market is so competitive right now, buyers really need to be prepared ahead of time if they want to be successful. The most important thing a buyer can do is to get pre-approved with a reputable lender. If you have any other questions, would like more information, or are interested in letting us represent you during your real estate transaction, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The 2018 real estate market started out with a bang. How are market conditions for buyers and sellers right now? Looking to buy a Los Angeles home? Search all homes for sale  Selling your Los Angeles home? Get a FREE home value report What’s happening in the February real estate market? The new year started out with a bang. Historically, the market is slow at the start of the year and picks up towards the end of January or February. Right after January 1, 2018, we saw an increase in the number of homes for sale and the number of properties going under contract. All in all, the market remains strong. The economy continues to roar. However, the Feds are going to increase interest rates over the course of 2018, which will impact buyers and sellers. There are still a few favorable elements in our market for sellers. We are currently running around 18% less inventory for sale compared to this time last year, and we know that 2017 had even less inventory than the year before that. As a result, prices will remain high and strong, which is great news for sellers. Additionally, millennials are starting to enter the market, which is a strong element for our economy. That said, it looks like 2018 will continue in a seller’s market. All in all, the market remains strong. If you are a buyer, the good news is that interest rates remain low at around 4.25%. The bad news is that limited inventory leads to more competition, so you need to have all your ducks in a row when you enter the market. The other bad news for buyers is that the Fed has announced that they will increase rates again in 2018. Rates are expected to go up three to four times between now and the end of the year. Because we are running low inventory and buyers are having a hard time finding properties, we are starting to see more activity with pocket listings. By definition, a pocket listing is when a seller wants to sell but doesn’t want to go through the rigamarole of putting their house on the MLS and dealing with showings. We are definitely seeing an increase in pocket listings in the immediate market. In 2017, 15+% of homes sold were pocket listings. That means if you’re not working with a real estate professional who’s tapped into the real estate community, you will probably not know about these opportunities to buy a home. If you have any other questions about buying or selling a home in 2018, just give me a call or send me an email. I would be happy to help you!

According to the latest statistics, it’s a seller’s market in LA County as we begin 2018, but there is good news for buyers as well. Looking to buy a Los Angeles home? Search all homes for sale  Selling your Los Angeles home? Get a FREE home value report As we head through January 2018, the latest statistics tell us we’re in a seller’s market. There were 818 homes sold in December 2017, which was a decrease of 18% compared to both November 2017 and December 2016. The total number of homes closed in December 2017 was 701 units, which was down 4.5% compared to November 2017 and 8.2% compared to December 2016. There were 530 homes placed under contract in December 2017, which was a staggering drop of 23.7% compared to November 2017 but an increase of 4.5% compared to December 2016. Most of these statistics were taken from South LA County and, specifically, the South Bay. These numbers lead me to believe that we’ll continue to have a shortage of inventory and have a very active market as long as interest rates cooperate. In December 2017, the average price per square foot continued to appreciate and settled at $549. The average days on market in December 2017 was 35 days, which was a 2.8% drop compared to November 2017 and a 23.9% drop compared to last year. The average list price for homes in December 2017 was $1,755,000, but the average sold price was $929,000. That average sold price dropped 1.1% compared to November 2017 but increased 8.3% compared to December 2016. Lastly, our average inventory for December 2017 was 1.2 months, which was a 14.6% drop compared to November 2017 and a 7.7% drop compared to December 2016. 2018 will be a fantastic year for buyers and sellers. According to a five-year study comparing the homes for sale versus the homes that have sold and those that are pending, we started and ended each year between 2012 and 2017 with a low level of inventory. In December of those years, we had between 600 and 800 homes listed for sale. As those years progressed, we usually saw a 20% to 25% increase in inventory. All in all, 2018 will be a fantastic year whether you’re a buyer or a seller. Prices will continue to remain strong for sellers, and buyers can still take advantage of interest rates near the 4% mark. If you have any more questions about our current market or you’re thinking of buying or selling a home soon, don’t hesitate to call or email me. I’d love to help you.

If you have to relist your home because your previous transaction fell out of escrow, there are three things that can dramatically affect its sale. Looking to buy a Los Angeles home? Search all homes for sale  Selling your Los Angeles home? Get a FREE home value report We are in a highly competitive seller’s market right now. The ball is in the seller’s court, which means that most of the time they can choose which offer to accept, the closing date to settle on, and which improvements will be made to the house prior to the sale. However, it’s important to remember as a seller that you don’t go too far and cross the line. There are many factors that can affect the sale of a home while in escrow. For one thing, interest rates can change and bump the buyer out of contract. The buyer’s financing may also fall through due to a financial hardship or a loss of employment. The appraisal could also not come in as high as the agreed-upon price. All of these examples are good reasons that sellers and buyers work together to make sure the sale is completed. Be advised that though the market is good, inventory levels have risen a little bit. Part of that can be attributed to the end-of-year holiday cycle, but buyer demand is still high and sellers can still negotiate the best deal for them. A buyer in hand is worth two in the bush. Should a transaction fall out of escrow, though, there are three factors that can dramatically affect your ability to resell your property: 1. Because the property was in escrow and off the market for two to six weeks, it’s not considered “fresh” in the eyes of buyers. 2. Statistically, the next offer you get will probably be lower than your original offer. 3. A new buyer means you have a whole new set of circumstances and a new inspector who may recommend different repairs on top of the ones you already made for the previous buyer. Even though we’re in a strong market, we like to remind our sellers of the following adage: A buyer in hand is worth two in the bush. Even though the adage doesn’t quite apply, the message is clear. If you have any questions about things that can affect your home sale or you have any other real estate needs, don’t hesitate to reach out to me. I’d be glad to help you.

According to the latest statistics, we may be on the verge of a market shift. However, it’s still a great time to both buy and sell in the South Bay marketplace. Looking to buy a Los Angeles home? Search all homes for sale  Selling your Los Angeles home? Get a FREE home value report My team and I believe we’re seeing the signs of an early market shift, and I have the numbers to prove it. If you follow along in the video above, you’ll see several graphics with statistics that reflect the year-to-date results of our market through September 2017. Let’s start with home sales. There were 1,360 homes for sale in September 2017, which was a decrease of 1% compared to August 2017 and an 11% decrease compared to September 2016. The number of homes closed in September 2017 totaled 861 units, which was an 11.2% decrease compared to August 2017 but a 3.6% increase compared to September 2016. There were 883 homes placed under contract in September 2017, which was a 3.6% decrease compared August 2017 but an 11% increase compared to September 2016. The average price per square foot in September 2017 was $525, which was a 1.1% drop from August 2017 but an 11% rise compared to September 2016. We’ve had a shortage of inventory throughout most of 2017, so that 11% year over year increase shows that buyers are more active and paying a premium for available homes. The average days on market for September 2017 was 33 days, which was a 6.5% rise compared to August 2017 but a 29.8% drop compared to September 2016. Buyers are more active than they were a year ago, but because we’re seeing a month-to-month slowdown, I believe that slowdown will continue. Properties in September 2017 sold at about 97% of their list price, but that number had been dropping over the last month or two, which is another indicator of a market slowdown. We’re still in a seller’s market, but now is a great time to buy or sell. The average active sales price per square foot for September 2017 was $1,654, which represents a 1% drop compared to August 2017 but a 10.6% spike compared to September 2016. The average sold price per square foot for September 2017 was $922, which was a decrease of 3.5% compared to August 2017 and 14.5% increase compared to September 2016. These statistics explain why whenever my clients ask me how much our market has appreciated from 2016 to 2017, I say a fair answer is about 10% to 11%. Lastly, we’re averaging about 1.6 months’ worth of inventory for September 2017, which is up 14.4% compared to August 2017 but down 11% compared to September 2016. As these numbers show, we’re still in a seller’s market, but now is a great time to buy or sell. Mortgage rates are still hovering around 4%, and our economy is still robust. If you’re a seller or an investor who wants to lock down your gain from the past three, five, or seven years of appreciation, this is without a doubt the market to do that. If you have any other questions about our market or you’re thinking of buying or selling in the Los Angeles County/South Bay marketplace, don’t hesitate to reach out to me. I’d love to help you.

Some real estate terms can be daunting to buyers. My goal is to help you understand them better, so you can navigate the process more comfortably. Looking to buy a Los Angeles home? Search all homes for sale  Selling your Los Angeles home? Get a FREE home value report Searching for a home can be an intimidating process, especially with regards to the language that comes up during a real estate transaction. For today’s topic, I’ll be providing a short glossary of key real estate terms you should know as a homebuyer. My goal is to make you feel more comfortable with some of the basic terminology. Closing costs: The cost to complete the real estate transaction. These costs are in addition to the price of your home. Some examples could be your loan, the closing cost points on your loan, transaction fees, escrow costs, etc. Appraisal: A professional analysis used by your bank to estimate the value of your property. This includes examples of similar homes that sold in your immediate market. Credit score: A number ranging from 350 to 850 that is based on an analysis of your credit history. Your credit history plays a significant part in securing a home mortgage; it helps the lenders determine how much of a loan you would qualify for. Many buyers believe you need a score over 780 in order to get a good home loan, but in fact, over 55% of all the home loans are done with buyers with FICO scores less than 750. Down payment: A portion of the cost of the home paid up front to secure the purchase of the property. A down payment varies widely depending on where you are in the US, and how competitive you want to be in your presentation of your offer to buy a home. I’d love to elaborate more on that specifically with you, so give me a call. Escrow: The holding of money or documents by a neutral third party for closing. Mortgage interest rate: The interest rate you pay to borrow the money you need to buy your home. Pre-approval letter: A letter from a mortgage lender indicating you qualify for a loan for a specific amount and that your income and assets have been verified. This letter is a must-have in the highly competitive market we’re in. We as real estate agents want to help you get through this sometimes confusing process. The negotiation of the transaction can also be overwhelming, but we’re here to help you. If we can assist you in any way regarding buying or selling a home, please reach out to me and I’d love to help you out.