Analyzing the market trends in real estate is just as important as your other investment tracking strategies. I do my best to inform clients how to find and negotiate the best deal possible and market statistics play a big part. Understanding can mean success or failure and will determine if you overpay for a property.
As an example, homes that are selling in an FHA range of loans – (ceilings of $625,000) represent 68% of the demand but only approximately 42% of the available homes for sale in this range. This means that the nicest homes in this price range will get multiple offers and will only last a few days before going into escrow. On the flip side, luxury homes priced over $1,500,000 represent only 4% of the demand but 22% of the inventory!
It is a sellers market for the lower priced homes and a buyers market in the luxury home market.
So what doe this mean for you? Here are my top 5 recommendations to keep in mind when buying a home:
1.) Stay on top of the listings on a day to day basis.
Use speciality websites like HomesinSouthOrangeCounty.com or FindHomesinOC.com to track your searches. These are updated regularly rather than sites like Zillow or Redfin.
2.) Work with your broker or agent making sure they know what you want.
Often times agents learn about homes before they are ready to hit the MLS. You can possibly avoid the arduous process of open houses and multiple offers.
3.) Don’t think too long before visiting these homes. If you see something you like, go and see them right away with your agent.
I, like other agents will prioritize your needs if you have an active search plan in process involving your agent. I am always available to take calls in the evening and on week-ends.
4.) Make sure you have a team working for you.
Make sure you are ready during all stages of a purchase. I strongly recommend a pre-approval qualification letter be put ready from your mortgage banker so when you find your home, your offer will be strong and stand out. Our team consists of a broker, a mortgage banker, a transaction coordinator, a title officer, an escrow officer, a property inspector, a handyman, a team of termite and repair professionals, a roofer and more. You will need all of these professionals before you move into your new home.
5.) Make sure you have a plan to address any special needs.
i.e. If you have a home that you need to sell, share that with your broker. Brokers like me are experts in helping you with transitional ownership. Selling your home and buying your home can put you in a disadvantage if you don’t have a plan in place.
Our next blog post will address transitional ownership. This will highlight both the journeys of rent-to-own as well as sell-and-then-buying a new home.
Call or email today to discuss your needs and to get a plan working for you! : firstname.lastname@example.org