Real Estate News for 2017

By Joel Perez

Well, I’m sure you’ve heard that interest rates have gone up a little bit recently. If you feel like you’ve missed your opportunity to buy a home, it’s important to have some perspective as interest rates are still at historical lows. So, whether you’re applying for an FHA loan, a conventional loan or a VA loan, you can still enjoy a great value.

On the other hand, the small rise in interest rates have put some pressure on buyers to get off the fence and purchase now before rates have a chance to go up again. On the other hand, many experts believe that interest rates should either hold steady or inch up a little more.

For a number of years during and after the Great recession, lenders dramatically increased their requirements to purchase a home loan. Fortunately for people looking to purchase a home in the near future, 2017 looks bright as lenders are expected to loosen up a bit. This all means that there should be more opportunities for folks to get loans.

If you have tried to qualify for a home loan in the past few years but were rejected, don’t give up hope. Perhaps all you need to do is make a few little adjustments that would put you in a better position in the near future to qualify for a loan. I’m confident that I can help you if you’re in this situation as I do have a very competent team of lenders that can offer advice on subjects like credit repair or other challenging situations.

If you’re on the other side of the fence and planning to sell your home, I will be happy to assist beyond just marketing your home. For example, if you need some work done to improve your property, I have a strong network of professional contractors, plumbers, home inspectors and other trades-people to help you sell faster, easier and hopefully put more money in your pocket. These professionals have the highest standards of integrity and knowledge and we will be there to help you every step of the way, whether you’re buying or selling your home.

As we enter 2017, it’s important to understand that inventory levels are still very low, which means that home values are expected to continue go up some, likely in the single digits. If you’re planning to purchase a home, it’s important to work with an agent who is very familiar with the home values of the specific neighborhood you’re interested in. That should increase the likelihood that your offer is more than just competitive: it’s accepted. The same goes when you list a property because you want to be priced at a point that generates maximum interest and gives you the best value for your property.

How to Sell Your Home Fast

By Joel Perez

If you're in the market to sell your home, chances are you're probably going to be pretty happy. Why? Because inventory levels are at an all time low, which means you will probably get quite a few offers. Even though there's not that much inventory out there, I strongly encourage you to make your house look as attractive as you possibly can in order to get the strongest possible offers. Here are a few simple things you can do that are relatively inexpensive in order to get the best price out of your home and sell it fast!

1. Reduce or Eliminate Clutter: Get rid of any clutter that's in the house. This really helps make the house look more attractive and the rooms often appear larger. A cluttered home makes it more difficult for the buyer to visualize how their furniture and personal items will look in the space. It also helps to remove all the family pictures, because you want buyers to focus more on the house and not your personal items.

2. Keep the Front Yard Clean: Curb appeal is still extremely important in today's market. I've had several experiences where my buyers refused to get out and see a house with poor curb appeal. If you manicure your yard a little bit, it should give potential buyers the all important positive first impression.

3. Paint Your Home in Neutral Colors: The cost to paint your interior or exterior is relatively inexpensive and can really help make your home stand out. Neutral and warmer colors give the buyer a blank canvas to work with and they have a much broader appeal.

If you've had a difficult time selling your home, feel free to contact me at (916) 997-7393. I would be happy to come out and give you an honest professional assessment of what you need to do to make your home sell fast and put more dollars in your pocket.

If you’re looking for a real estate professional, it really behooves you to find somebody that has adapted to these changes in the market. Whether you're buying or selling, choose a realtor that has a lot of strong connections with other realtors in the market. If you're buying, they may be able to help you find a great home before it hits the open market. If you’re selling, a well connected agent can line up lots of potential clients who would love to be in your home.

Real Estate Trends

By Joel Perez

I’m sure most active buyers realize that we’re now having a shortage of inventory. With fewer houses for sale, it makes it real difficult for a buyer to get an offer accepted. So, my advice is to have a lot of patience in this market. The principal of supply and demand is in full effect. There’s just not that much supply and there’s a huge demand, so I convey that to my buyers. I advise them to be patient and do my best to reassure them that we’ll be able to find them the house that they want; it just might take a little longer.

Q: Who are the biggest competitor’s in today’s real estate market?

A: If you’re a financed buyer, if you’re an F.H.A. or even a conventional financed buyer, the investor’s are taking the majority of houses because they’re getting the winning bids on a lot of these houses.

Q: Are most investors bidding below asking price, at asking price or above asking price?

A: Most investors are coming in with all cash and cash is king. Sometimes they do come in over asking price, depending on that particular market. I’ve also seen them come in below asking price and a seller will take it because it is a cash offer.

Q: Why is it important to have a real estate agent who has lots of connections in today’s market?

A: It really behooves the buyer to have an agent who is well connected, that knows the inventory and has good relationships with other agents, where they may have done transactions together in the past. I always let other agents know that I have a buyer that’s looking for a specific type of property, so once they come up with a listing, they will think of me right away. The market is ever changing, so know it would really be to the benefit of the buyer to have an agent who has those relationships, understands the market and can employ some of those strategies.

Q: How much inventory is available in today’s market?

A: Right now we’re looking at a lot of areas where there is less than a month’s supply of inventory, which means that it is a very tight market. Under normal times, we might have a two to three month supply. When we had the big foreclosure boom, we sometimes had a six month supply, so the pendulum has really swung the other way and we’re probably going to see this trend continue for the remainder of the year. This inventory shortage is driving home values back up, with the median price for a home in Sacramento County up 19% from last year (January 2012 to January 2013), according to Data Quick.

Q: Why should buyers choose you to find a home for them?

A: I have several years of experience, I know how the market has changed and I’ve adjusted to the market, so I know what strategies work best for my clients. I’ve lived and worked in this community my whole life, so I understand the local market and I have a natural interest in seeing our community thrive. It’s a special feeling to think that you might be a part of that and also help people achieve their goals, whether it’s buying or selling a home.