Orange County, CA Real Estate Podcast with Frank Del Rio Frank Del Rio

Can you believe we’re already halfway through 2018? With that being the case, it’s time for a mid-year real estate market update. Looking to buy a home? Check out our free home search Looking to sell a home? Check out our free home value report The local housing market is like a big game of tug of war between buyers and sellers. Sellers have been controlling the market since 2012 with multiple offers and buyers tripping over themselves to be the winning bidder. As a result, prices have accelerated and reached record levels. However, there is change in the air, and now buyers are beginning to pull back. In the tug of war, sellers are still “winning,” but not if they overprice their homes. Home sellers are no longer getting away with arbitrarily stretching their asking prices. You know what I’m talking about and I’m sure you’ve seen it before. Today’s buyers are approaching housing a bit differently than they did from 2012 through 2017. They are much more cautious these days. The biggest culprits of this caution are interest rates and values. Values have increased significantly. The median sales price was up nearly 6% from April 2017 to April 2018. This follows six solid years of home price appreciation. It may still be a seller’s market, but buyers are starting to pull back. At the end of May 2017, interest rates were in the mid to high 3% range. Meanwhile, today we are in the high 4% range with talks of the Federal Reserve increasing them to the low 5% range. With higher values and higher mortgage rates, today’s buyers still want to buy; but, they are getting to the point that they just do not want to pay much more than the most recent relevant sale. Buyers are approaching housing very carefully and home sellers are wondering what happened to the hot seller’s market that everybody has been talking about for years. Home sellers who are not priced extremely close to their fair market values or do not have a unique selling proposal are not finding success. One of the major indicators that overpricing is spreading can be found in the number of price reductions. Right now, 12% of the active inventory is reducing their asking price every single week. The bottom line is clear: It may still be a seller’s market, but home sellers must carefully price their homes in order to be successful in this evolving market. In the tug of war between buyers and sellers, buyers are starting to pull back. If you’d like to know how this information could impact your home sale or your home search or if you just have any questions, give me a call or send me an email today. I’d love to help.

There are five things you must never say out loud to a prospective buyer while your home is on the market. Looking to buy a home? Check out our free home search Looking to sell a home? Check out our free home value report You know the expression “Loose lips sink ships?” Well, that saying holds true for the real estate world too. If you’re selling your home, there are certain things you must disclose to a buyer, such as whether your home has lead paint, there has been a death on the property in the recent past, the home is located near a busy street, etc. However, there is plenty more information you might volunteer that you’d be much better off keeping your mouth strategically shut about. The same goes for the Realtor representing you. To help hone in on your “less is more” attitude when it comes to talking to prospective buyers or their agents, here are five things you should never utter (in no order of importance): 1. “Our house is in perfect condition.” Of course it is. Your home is your castle, and in your eyes it may seem perfect, but don’t make claims that aren’t true. The home inspection might reveal otherwise, and you don’t want to wind up putting your foot in your mouth. There is no such thing as a perfect condition when it comes to a home. Every home—whether it’s brand new or a resale—has something that could be fixed, adjusted, replaced, or improved upon. There is no such thing as a perfect condition when it comes to a home. 2. “It’s been on the market ___ days.” Never ever discuss how long your home has been on the market with a prospective buyer or their agent. This information is already provided on the MLS or the home’s information sheet, and bringing it up—especially if the home’s been on the market for a while—can send the wrong message. No one wants to buy the white elephant of the neighborhood. If they do, it’s probably because they think they can get it dirt cheap. 3. “We’ve always wanted to fix or renovate that, but…” Mum’s the word when it comes to fixes you intended to address. This only alerts the buyer of more upcoming costs for them, and they may not even want to take on a bathroom or kitchen renovation. Why plant those extra dollar signs in their head? 4. “We spent a ton of money on (the patio/kitchen/etc).” Just because you love the Brazilian cherrywood flooring you installed on the first floor doesn’t mean prospective buyers will be willing to shell out for that. The buyer doesn’t care whether you spent $10,000 or $100,000 on your kitchen—they’ll only offer what they think the home is worth in relation to the area comparables. You would do the same thing. Save your breath, or else you’ll sound like you’re trying to justify your price, and nobody wants to hear that. 5. “I’m not taking less than ___ for my home.” I understand that you want to sell for top dollar, but it’s important to be realistic and open to offers within a reasonable range—something that’s fair to you and you would be happy with. If you send a message right out of the gate that you’re inflexible or not open to negotiation, it doesn’t invite buyers to even try to work out an acceptable price and terms with you. They may feel defeated from the very start and word might spread about your sentiment as a seller. This can cause people to avoid your house altogether. If you have any questions or need to sell your home, don’t hesitate to give me a call. I’d be happy to help you.

Mortgage interest rates are on the rise, so should you stop waiting to buy a home? Our preferred lender joins us today to explain this topic. Looking to buy a home? Check out our free home search Looking to sell a home? Check out our free home value report With mortgage rates on the rise, should you wait to buy a home? I've brought in our preferred lender Lauren Williams with Vision One Mortgage to help me discuss this topic. Rates have gone up over the last several weeks. Fannie Mae, Freddie Mac, the Mortgage Bankers Association, and the National Association of Realtors all agree rates will continue to go up over the next four quarters, too. Because of this, some buyers regret the fact that they might not be able to get an interest rate of less than 4% on a mortgage. However, you must realize that current interest rates are still at historic lows. Back in the 1970s, interest rates averaged 8.86%, and in the 1980s, the average was as high as 12.7%. Current interest rates are still at historic lows. The bottom line is that although you may have missed getting the lowest mortgage rates ever offered, you can still get a better rate than your older sibling did 10 years ago, your parents 20 years ago, and your grandparents 40 years ago if you buy a home or refinance your mortgage now. If you're interested in buying a home or refinancing your mortgage, don't wait to get in touch with Lauren at 714.625.0130 or at lauren.theloanofficer@gmail.com. If you have any other questions for me or you're thinking about selling your home in LA and Orange County, give me a call or send me an email. We look forward to hearing from you!

I want to be a resource to you, and here’s how I can do that. Looking to buy a home? Check out our free home search Looking to sell a home? Check out our free home value report Who can I put you in touch with? I ask because it’s my job to be a resource to you, and I can do that in so many different ways. One way is by referring you to the right person. Over the years, I’ve retained many relationships with people in all different lines of work. Are you moving out of state? I know and network with the top agents all across the country, and I see them in person at multiple events every year. I’d love to be your resource. I can put you in touch with virtually anyone, be it mortgage brokers, trust attorneys, financial planners, home cleaners, tax attorneys, landscapers, contractors, local and out-of-state movers, and many, many more. So, if you or someone you know has a question or a project coming up and need some help, please don’t hesitate to reach out to me. I’d love to help!

When does the spring market start? According to the calendar, it should be March; however, the spring real estate market kicks off much sooner than that. Looking to buy a home? Check out our free home search Looking to sell a home? Check out our free home value report When does the spring market start? Officially, according to the calendar, the spring market starts in March. However, in real estate, the spring market starts in January. Immediately after the new year we have a whole new set of buyers coming into the marketplace. Then, after the Super Bowl in early February, the spring market will continue to pick up speed, sometimes all the way through the end of June. As we begin the new year, families across the country will be deciding if this is the year they sell their current house and move into their dream home. Many people think that they should wait until March to list their home, which made sense in the past. However, this winter is not like recent years. The spring market starts right after New Year’s. Thanks to recent increases in mortgage rates, buyers have been forced off of the fence and into the marketplace. At the same time, inventory levels of homes for sale have dropped dramatically compared to this year. So, right now there is incredibly high demand from buyers and low competition for home sellers, making now a great time to put your home on the market. The bottom line is that the spring market has already begun. If you have any questions about the market or about listing your home, give me a call or send me an email. I would be happy to help you!

Looking to buy a home? Check out our free home search Looking to sell a home? Check out our free home value report Merry Christmas! We hope you and your family enjoy all that this amazing holiday has to offer. We just wanted to take a moment to thank you for your continued support throughout the years. We wouldn’t be where we are today without your help! Thank you for watching, asking questions, and giving us feedback! It truly brings us joy to help you make your real estate dreams a reality. If you have any questions, please don’t hesitate to reach out to us. We’re here to help you in any way we can. In the meantime, have a very merry Christmas!