Top 5 Reasons You Need a Real Estate Agent

House Flipping Heats Up at the High End

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

If house flippers flooding all ranks of the real estate market eight years ago was the sign of the impending market downturn, then what does it mean that investors are embracing high-end flipping today?

Reuters this week ran a story that looked at a growing trend in the flipping of high-end homes. "Flipping" is the term we give when someone buys a house at a low price, usually invests a bit – or a lot – of money in remodeling, then sells for a nice profit.

Flipping was once a street sport where you'd find just about anyone regardless of investing or real estate experience partaking in markets across the U.S. But it faded out pretty quickly when the downturn hit the housing market.

Even Jeff Lewis, star of Bravo's "Flipping Out" has since pivoted to a design services model.

It's back – but in a different form. And it could mean better things for the market rather than being an ominous sign for rampant speculation and decline.

This time, what Reuters reports is more flipping with luxury homes. According to Reuters, the number of flipped homes valued at $1 million or more has risen nearly 40% nationwide since 2011. It's important to note that RealtyTrac defines a flip as a home that's been purchased and sold within six months.

RealtyTrac cites a few specific markets where high-end flipping is rampant. Luxury house flipping was up 867% in Orlando between 2011 and 2012, and increased 456% in Phoenix. To get a deeper sense of what these percentages mean, the number of flipped high-end homes in Orlando went from 3 to 29 during this time, from 27 to 150 properties in Phoenix, and from 10 to 73 properties in Las Vegas.

What's driving this activity?

Well, as one source tells Reuters, the opportunity in flipping at the low end has all but dried up. And despite more risk with more dollars at the high end, the investments have paid off handsomely for those investors who know what they're doing.

I like to look at it as another example of why real estate is never just one story. With so many markets each centering on different local economies and so many different levels of each of those markets – low to high end – it's almost impossible to make blanket statements about the state of housing.

But it's easy to see how the growth in investment at the high end is a positive overall. If nothing else, the confidence investors must have going into these high-end deals is a wonderful strength that eventually will help strengthen overall confidence in the greater housing market.

5 Reasons Selling A Home Now Makes Sense

Many California homeowners are currently waiting to put their home on the market. The thought process usually involves traditional thinking that everything always looks best when the grass is green and flowers are in bloom. A home will surely be easier to sell if that is the case.

This is true, but your competition will also be using the same logic. Every year people wait until Spring to put their homes on the market. All at once there will be an influx hitting the MLS. In Gilroy there are compelling reasons why now is the time to get your home ready sooner rather than later. Here are five reasons why you should list your Gilroy home for sale now:

1. Home Inventory at Record Lows - The inventory of homes for sale in the area have dropped substantially over the last six months. The number of homes for sale in most communities has fallen to lows we have not seen for many years. When home inventory levels drop home prices tend to rise, and that has certainly been the case in Gilroy. This becomes even more prevalent in a popular neighborhood where buyer competition is high. Many times there are bidding wars. We have already started to see this trend on homes hitting the market now.
2. Demand is Up - Contrary to what some people may think there are lots of buyers out in the market place right now looking for a home to buy, and having their financing all lined up and ready to place. Some are first time buyers who are looking for a place to build some equity. There are others who see an opportunity to move up in the market as home prices have dropped substantially since the market peak in 2005.
3. Renting vs. Buying - The cost of renting versus buying a home has become the same and in some cases it is actually less expensive to buy a home. Rents in many areas have steadily increased over the last five years while home prices have dropped. If you factor in the potential benefits of building equity and some tax breaks with home ownership, you can see why it makes sense.
4. Interest Rates Going Up - Interest rates are at record lows at the moment and most economists predict they won’t stay that way for too much longer. While interest rates are not predicted to move up dramatically, every time they inch up a half a point they can knock out a percentage of first time home buyers out of the market. The first time buyers fuel the rest of the market like dominoes.
5. New Construction Coming Back - Builders are starting to get back into the fray. When builders are actively building homes it becomes harder for some who are selling their used homes to compete. There are many that will jump at the chance to have a shiny new home with all the bells and whistles customized to their specific needs.

Bonus Reason to List Now - If you’re one of the many homeowners who are hanging on with a negative ownership position, where you owe more than your property is currently worth, and don’t know where to turn, this is your best opportunity to move on. Short sales are being negotiated with lenders in far shorter timeframes than in the past, and lenders are recognizing that action needs to be taken. If you have exhausted all your options and your finances are drained, it’s time to move on.
In summary, if there are no time constraints on your part you should consider moving up your timeframe for putting your home up for sale. Our Gilroy market is extremely hot. Morgan Hill is the same, and Hollister is very close behind. Get ahead of the Summer competition and list your home for sale today. Contact Team Patereau to talk about the right price and the right time to sell your home. 

The Science of Which Day to Debut Your Home for Sale

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Any good real estate agent knows that listing and selling your home can be a science. From finding just the right price point to attract offers to staging and curb appeal, there are many details that when strung together meticulously can add up to a smooth transaction in which your house sells at the best price point in the shortest period of time.

With all of that in mind, a good question on sellers’ minds often is, “What is the right day of the week to list?”

It’s a valid question because many years of experience shows us time and again that a listing tends to grab the majority of attention on the day it debuts. The Wall Street Journal recently ran a story citing Redfin research that found that Friday apparently is the best day to list your home. How did they come up with that? They found that listing a home on a Friday versus a Sunday, which they found was the worst day to debut, could mean a difference of nearly $5,000 on a $500,000 house.

They also found that homes listed on Fridays sold in an average 81 days – the fastest of any other day of the week in their sample.

Why is that?

It almost seems counter-intuitive to say that debuting on a Sunday is the worst day. After all, Sunday is the day when most buyers are out viewing homes and visiting open houses.

But in reality, Sunday listings tend to sit around a few days before buyers start setting up their home tours for the following weekend. (Because by the time Sunday comes around, they’ve already put their viewing schedules together.)

Fridays are better because anyone planning Sunday tours is likely either starting or finishing up their list of homes late Friday or Saturday. And any new listings are going to pop up on their radar right away.

What’s the key take away from this info?

Well, first off always remember that every market is different and fluid.

For buyers in competitive markets, it’s a good reminder to not overlook those Sunday listings. Have your agent run through the MLS before you start your tour to see if something new came on the market. It may be worth tacking on a tour on Monday if you can squeeze it in.

For sellers, while the notion of the best day to list is interesting, it’s important to remember that there are many other factors that affect your sale price and time it takes to close. It’s more important to price right and have your home in the best shape possible when you hit the MLS. No theory on which day works better is going to help you if you don’t have these two things right.

Once you have those down, it doesn’t hurt to ask your agent for insight on which day has worked the best in your current market.

Contact Team Patereau for their insight. Rick and Susan will help you with which day to list, as well as every step of your real estate transaction.

Things To Do with the 1-Hour Notice You Request Before Showing Your Home

We have a listing where the homeowner requires at least a 1-hour notice before showing the home. Here’s what we suggested she do with that hour, and we think it might be helpful for you when you are showing your home, or if company is coming with short notice, etc.

 

 

 

 

 

1. Store out of sight any kids toys and/or pet toys and beds.
2. Vacuum/sweep the main living areas and bedrooms.
3. Dust lampshades and surfaces that are eye level and below.
4. Turn on ALL lights (make sure all light bulbs are working).
5. Open ALL curtains and blinds to let in as much natural light as possible.
6. Open windows (if it’s warm enough).
7. Depending on the time of year, either turn the heat up 2 degrees or turn up the air conditioning by 2 degrees. You want buyers to be comfortable inside the home while they are there for the showing.
8. Make sure there aren’t any lingering cooking odors. If you did have them, try simmering cinnamon on the stove in the hour before the showing to give your home a pleasant smell.
9. Take anything valuable with you when you leave, including your pets, i.e., jewelry, prescription drugs, cash, and irreplaceable items.

If you found these tips helpful, please let us know in the comment box!

Thanks for a Great Open House!

Just wanted to publicly thank all the people who came out to our Open House this week-end. We were open both Saturday and Sunday and were very busy. On Saturday we had 33 groups visit on their own, and 10 agents who brought clients. On Sunday we had 20 groups and 6 agents with clients. That’s a lot of exposure for the property. Enjoyed talking to everyone who came, and a great big thanks to our Sellers who had their house in tip-top showing condition.
We are going to hold the house open again on Saturday, February 2nd. We’ll be there from 1:00 to 4:00. After that we will be looking at offers on Monday, February 4th. Hope you get a chance to see this great house.

New Listing: 1223 Pappani Drive, Gilroy

 

Wonderful, well-kept single family home in Gilroy. Come and see it this week-end with Open House both Saturday and Sunday from 1:00-4:00.

Home Prices to Continue Rise in 2013 as Inventory Remains Tight

All housing and real estate indicators point to the fact that there just aren’t enough houses on the market for sale. We’ve included below Intero’s CEO, Gino Blefari’s comments about this condition. Now is certainly the time to list your property if you’re considering the possibility. Prices are as high as they’ve been since the recession began, and every correctly priced property gets sold quickly. Don’t put it off! Contact us to discuss your property, your price, and the possibilities. We’d love to hear from you.

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Now that many of us agree that 2012 was the bottom for most markets, things are already heating up. This week, we received news on home prices and a few predictions about where things are going this year.

CoreLogic released its latest Home Price Index this week, showing home prices increased 7.4% in November 2012 (on a year-over-year basis), the largest increase and highest level since 2006 when the market began to slide.

The rise in prices is due to steady demand from buyers, fewer bank-owned (REO) sales and a restricted inventory of homes for sale. Lack of inventory is expected to be the major market driver in 2013. Many owners in 2012 struggled with loan balances greater than the value of their homes, which made it impossible for them to sell and move up as they traditionally would do. While inventory will still be an obstacle in 2013, the rise in values will help more owners out of the underwater situation.
The best part of this news is that the increases are not completely contained within a few states. In fact, the index shows that all but six states are experiencing year-over-year price gains. The five states with the highest home price appreciation (including distressed sales) were Arizona (20.9%), Nevada (14.2%), Idaho (13.8%), North Dakota (11.3%), and California (11.1%).

In terms of price depreciation, the five states with the lowest home price depreciation were Delaware (-4.9%), Illinois (-2.2%), Connecticut (-0.5%), New Jersey (-0.5%) and Rhode Island (-0.3%). And excluding distressed sales, only two states experienced home price depreciation in November: Delaware (-3.5%) and Alabama (-2.2%).

Also, of the top 100 statistical areas measured by population, only 13 show year-over-year declines in November, which is seven fewer than seen in October, CoreLogic reported. That’s a marked improvement for sure.

The research firm expects bank-owned sales to decline this year, which it says will also help with overall home values as these properties tend to sell at a discount compared to comparable homes.
All the pieces are in place for housing to break out of “recovery” mode this year and move into growth. The inventory hurdle may turn out to be a good thing if it can help to push up prices a bit more this year. Then maybe in 2014, we’ll see even more homeowners pull out of their underwater loans.

Homes are Selling Like Hotcakes

'Tis the Season for Home Buyers

By Gino Blefari President & CEO
Intero Real Estate Services, Inc

It may be the best time of year for traditional retailers who find their bottom lines moving from red to black, but in the housing industry, sales tend to slow down when the yuletide rolls in. Nobody likes to move during the holidays, but if you're in the market to buy and don't mind the timing, you may actually have the best timing of all.

While a recent Fannie Mae survey shows more consumers are more negative now about buying a home, there are still plenty of folks looking for a house to own. And the great news is that deals abound!

Here are three things that home buyers have going for them this holiday season:
Inventory galore: The inventory of homes for sale of course depends on your market, but markets across the nation generally are experiencing high inventory levels. This is not exactly a great thing for the overall health and sustainability of the market and economy, but it is a good thing for those buyers who are ready to make a move.

Historically low interest rates: I can't really stress this enough – the low rates we're seeing on long-term mortgages are incredible! Forget about missing out on the home buyer tax credit earlier this year – these low rates will save you even more cash in the long run than any government incentive so far.

Relaxed competition: With high inventory comes less competition. Again, this isn't great for home sellers or for sustaining values, but as a buyer you'll find that you have more negotiating power. Use it wisely.

Here's what this season's buyers will need to watch out for:

Stellar credit gets the best deal: Sure, rates are incredibly low but you'll need a solid credit score to get the best terms. You'll also need a ton of documentation so it's best to prepare that stuff ahead of time.

Cash needed: This is true now and pretty much always – more cash will enable you to get a better loan and make for an all-around better closing experience.

Local market conditions: Is your market still on the decline? That's no reason to wait to buy, but it's something you should take into account when making your offer.

Bargains abound at all the top stores across the nation. And this year, the "real estate" store is not much different. Buyers indeed have the upper hand in many neighborhoods. Don't let the holidays derail your home hunt entirely – you may just miss the sale of the century! Talk to Team Patereau today about what's available near you.

Sign on the Dotted Line...Please

We're talking to several soon-to-be Sellers, and have found that the hardest step in selling a home is the first step.

Homeowners have a hard time disconnecting their emotional attachments to their current home. Even though people are looking forward to a new and different home, even though they have outgrown their old one, even though better things are ahead, it’s still hard to let go.

We’ve been through listing appointments that are highly emotionally charged, some with tears, some with indignation and anger. Then, when all the details are finally ironed out and we’re down to signing the listing agreement the owners sign, and, Whew! – a sense of relief comes over them. They have signed, they have released, they are ready to move on. The simple action of signing allows everyone to look forward, and stop holding on to the past.

The Price is Right

There’s a lot of information out there today about how bad the real estate market is. However, in Gilroy, and at Intero, where my license is parked, deals are being done. Besides new listings going on the board almost every day, there are actual sales. Here’s a list of the Single Family Homes that went into escrow during the week of June 11 – 18, 2007. (That’s a Monday to Monday week, because that’s how we do it in real estate.)

I have included the Original List Price of the property, as well as the Current List Price. A majority of the properties had price reductions before they sold.

I have also included the number of Days on the Market. It took a long time to sell many of these properties, but when the price got right, the property sold.

New Sales, 6/11-6/18/2007
Gilroy CA
Single Family Homes

7045 Yorktown Drive, Gilroy
Original List Price: $730,000
Current List Price: $635,000
Days on the Market: 302

1142 Del Oro Way, Gilroy
Original List Price: $620,000
Current List Price: $575,000
Days on the Market: 217

2325 Olea Court, Gilroy
Original List Price: $1,389,000
Current List Price: $1,358,960
Days on the Market: 134

1476 Senegal Court, Gilroy
Original List Price: $810,000
Current List Price: $725,000
Days on the Market: 112

1321 Fernwood Lane, Gilroy
Original List Price: $648,998
Current List Price: $599,995
Days on the Market: 97

7200 Princevalle, Gilroy
Original List Price: $580,000
Current List Price: $570,000
Days on the Market: 78

1131 Mariposa St., Gilroy
Original List Price: $629,000
Current List Price: $629,000
Days on the Market: 72

1414 Casablanca Circle, Gilroy
Original List Price: $875,000
Current List Price: $849,950
Days on the Market: 32

2585 Sunflower Circle, Gilroy
Original List Price: $1,599,999
Current List Price: $1,599,999
Days on the Market: 5

2530 Muirfield Way, Gilroy
Original List Price: $1,234,875
Current List Price: $1,234,875
Days on the Market: 51

3855 Canada Rd., Gilroy
Original List Price: $1,265,000
Current List Price: $1,199,000
Days on the Market: 88

8742 Foxglove Court, Gilroy
Original List Price: $1,270,000
Current List Price: $1,270,000
Days on the Market: 76

Gino Blefari, the President of Intero Real Estate Services, tells agents, if a property has been listed and everything has been done to tell the world about it, and it hasn’t sold – then it’s about the price.

Every property will sell if The Price Is Right!