California Real Estate Market is on Fire!

The CA real estate market is on fire, however as seasonality kicks in more inventory will be coming and that means more competition and choices for home buyers. If you are thinking about selling your house, now may be the time.  Get a free price evaluation here:  Free Home Value Estimate

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Where do people want to live?

What season of life are you in? It says a lot about where you might want to live!

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The Real Deal…A look back at the 2017 San Diego real estate market.

2017 will be remembered as the year of shrinking inventory.  We finished the year with a 10 year low inventory level. There were just 2905 single family detached homes fro sale as of December 31, 2017. What will 2018 hold for the market? Great question, but for now here’s a recap video for you.  I’d love your thoughts and feedback.

2017 San Diego real estate recap 

I get asked about this all the time!

Maybe the most asked question I get is, “What are the crime stats in this area?”  That’s a tough one because perception is not always reality.  However, the San Diego Union tribune releases this handy interactive map that shows exactly what is happening and where.  Simply click here to access the map.

 

What if my appraisal comes in low?

appraisal2It has been known to happen.  A seller puts their house on the market.  A prospective buyer makes an offer.  The seller accepts it.  Now the real work begins.  Next come the inspections, physical, pest, HVAC, roof, pool, etc.  And if the buyer is getting a loan, the most important one of all…the appraisal!

What is an appraisal?  Well it is basically how the lender determines if the home is worth what they are being asked to loan.  But it’s more than that.  The appraisal is an opinion of value at the given moment.  Huh?  You see, appraisals can change on the fly based on what the market is doing.  As an example, let’s say your appraisal came it at a value of $480,000, and that is what the accepted offer was.  Great we have a deal.  Now let’s say the next day the exact same floor plan closes at  $500,000.  There is a new baseline established and the buyers just benefited by having the equity rise by $20,000.

But what happens if the appraisal on that $480,000 offer came in at $460,000?  The lender is not going to loan on a property that they feel is not valued at the agreed upon sales price.  In essence the seller has to sell the home twice, once to a buyer and then to the lender.  So now a renegotiation between the buyer and seller takes place and typically there are a few outcomes that happen.

  1. The seller can lower the price to the appraised value.
  2. The buyer can agree to pay the difference and bring in more cash.
  3. The buyer and seller can split the difference.
  4. The deal can be cancelled and everyone goes their separate ways.

If an agreement cannot be reached, and the contract included an appraisal contingency, meaning the home had to appraise at the agreed upon price or higher, the buyer can cancel and get their deposit, if any, returned in full without penalty.  It’s also important to remember that an appraisal is an opinion of value in a given moment.  So if a seller had an appraisal done say 3 months ago, the lender will not accept that and will still have an independent appraiser go out.

The last thing to consider is that depending on the type of financing the buyer is getting, the appraisal could be more detailed.  As an example, if the  buyer is getting an FHA or VA loan, the appraiser may “call out” things like chipped paint, structural issues, mold and the systems in the home.  If you are thinking about selling, you need to understand how the financing terms you will consider could affect the appraisal and ultimately the sale.  So it’s not just about price, consider what types of terms will be acceptable to you.

 

Hell…Just sell!


Sorry to use profanity in the title. However with the news that the median home price in San Diego county has gone over $600,000 for the first time ever, it might make sense to just put that damn place on the market and roll the dice. What we have here is what’s known as an extreme sellers market. Of course the flipside is, “What will you buy”. For the right price maybe it doesn’t make any difference!

In all seriousness, if you have been thinking about maybe downsizing or moving to a different area in San Diego, you should take a serious look at what homes are selling for in your neighborhood. If you can maximize your net income at close of escrow, downsize, and buy something smaller that suits your current lifestyle, that could be a really good decision. Heck who wouldn’t want to live in a nice little condo in Little Italy?

There are also several areas in San Diego where listings are more abundant. Maybe considering a small coastal community, someplace like Imperial Beach, where values are still good relative to their location to the water. The other option might be looking toward East County, where the day begins and the sun rises. Often you can find postwar, suburban homes in neighborhoods that are easily walkable, kid and pet friendly, and close to all the amenities you need. You might want to check out neighborhoods like North La Mesa, San Carlos, the College Area, or even Del Cerro and Allied Gardens.

If you’d like more information on any of these neighborhoods or others, or if you’re looking to get the value of your home in today’s market, please contact me today and I’d be happy to send you a free and detailed analysis so you know exactly what is going on in your neighborhood.