Southern California Real Estate Video Blog with Scott Himelstein

6 Pitfalls Most Home Buyers Fall Victim To

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 818-720-9922 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, we share some of the pitfalls you'll face after being pre-approved, and how you can avoid them to ensure a smooth buying experience.

Here are a few things you need to keep in mind after being pre-approved:

Don't make any major purchases: Whether it's a car, boat, jewelry, furniture, or other expensive items, these are the kind of purchases you need to avoid when applying for a loan. If the lender sees a huge purchase, they will be forced to rerun your credit, which could be detrimental to your pre-approval.
Don't apply for credit or other loans: This seems obvious, but you need to avoid doing this for the same reasons mentioned above.
Don't pay off any charges or collections: Unless specifically notified by your lender to do so, do not pay off any charges until after your purchase is complete.
Don't make any changes to your credit profile: A lot of people have an online credit service that monitors their credit. You don't want to make any changes to this profile during the approval process. Changing simple things like your address and your name could change your pre-approval status.
Don't change bank accounts: If you do, your lender will have to validate why you changed from one account to another. If this is something you want to do, make sure you wait until after you have closed escrow.
Don't make unusual deposits: Don't move large sums of money from one account to another, or deposit large amounts of money into your account, until after the deal is done.

Thanks again for watching our video blog! We want to wish you a happy holiday season, and we look forward to seeing you next year!

Is an African Safari the Escape You've Been Craving?

Today's blog comes to you all the way from Zambia, where I'm visiting the South Luangwa National Park. Considering the circumstances, I thought it might be fun to do something a little different than usual. So, I want to share with you the 3 best reasons to go on an African safari.

Wildlife: There is really no other place on the planet where you can get this close to the wildlife. On an African safari, you can see endangered wildlife that you can usually only see in zoos. Imagine being able to interact with these animals in their own habitat, taking their part in the great circle of life. This is something you can really only do in Africa.
Nature and Adventure: Africa is truly the birthplace of mankind. What better way is there to experience nature and adventure than coming out here to the bush. There are many ways you can see it: boat, four-by-four, or walking safaris are all available. From insects to large mammals, everything that works together in nature is here to be viewed and enjoyed by us.
Getting away from it all: The best part of coming out to this part of Africa is that there is very little internet, if any at all. When you're out here, you don't have access to your social media sites or your cell phone - it's a destination you can come to leave the hustle and bustle of city life behind!

Thanks for joining us once again for our video blog! We hope you enjoyed this special edition. As always, give us a call or shoot us an email with all of your real estate questions and concerns. We would love to help you!

How Can You Know if You Have a Good Offer in Hand?

When selling your home, you need to be savvy about the offers you receive. Knowing what a good offer looks like will go a long way in helping you make a profitable sale. Here are 3 tips on how to do just that:

Look at the purchase price: Buyers will often try to submit a lowball offer. It's important that you don't get offended or emotionally involved. At the end of the day, it's just a business decision made by the buyer, who is trying to see how you will react. Many times, especially in multiple offer situations, the offer that is accepted was originally the lowest - the buyer usually comes up near the original list price because they really want the home. In short, always submit a counteroffer because you never know what the buyer is willing to do unless you try.

Make sure the buyer is pre-approved: If the buyer is just buying in cash, make sure you get a proof of funds. On the other hand, if they require financing, we recommend that they get pre-approved with our lender so there are no surprises. If they own another house, their debt ratio is too high, their Fico score is not high enough, or they had a distressed home sale, they will not be able to purchase your home. To save you time and stress, we require buyers to get pre-approved with us free of charge and obligations.

Take a look at the FICO score: This will give you a good idea of where the buyer stands and gives you an inside look of what their debt ratio will really be. Again, it's just another way to make sure you're negotiating with someone who can actually afford to purchase your home.

If you follow these 3 procedures, you should be able to determine whether you have a good offer in hand. If you would like help with the process or have any questions about the Porter Ranch area market, don't hesitate to give us a call. We would be pleased to give you a hand.

When is the Best Time of Year to Sell Your Home?

We get asked all the time whether now is a good time to buy or sell. While most people think the spring and summer are the best times to sell, the numbers suggest the later months are a pretty great time to sell. Many homeowners take their home off the market because they think they'll get a better price come spring. With more sellers sitting on the sidelines, those who decide to go ahead and sell in the fall benefit from a lack of competition.

Homes sold in January often sell for a lot higher and with multiple offers because there is less for buyers to choose from. Interest rates are still quite low, hovering just above 4%, so buyer demand is still quite high. When looking at the numbers for last December in San Fernando Valley, we noticed more listings closed escrow than were on the market. We saw a similar trend in January and February of this year, before things started to change when March came around.

The months of December, January, and early February are perfect for maximizing your home's value. Competition is low and buyers are serious, giving you an upper hand in negotiations. If you want to take advantage of these favorable conditions, don't hesitate to reach out to us. We would love to assist you in any way possible.

Does it Make Sense to Invest in Solar?

Many of our clients ask us whether solar panels are worth the investment. It really depends - there are a few things to consider if you are thinking about investing in solar technology for your home:

Buying: If you buy solar panels for your home, it's going to take a long time before you see a return on your investment. If you plan on moving within the next 10 years, you're not going to save any money on your electricity bill. You have to live in your home a long time before the $200 dollars a month you save will pay off the panels.

Leasing: Leasing the panels can create many problems when you try to sell your home because the buyer will have to qualify for the lease payment. The buyer loses some of their purchasing power because it will have to be factored into their loan approval.

If you're looking to get solar panels simply to make an environmentally friendly decision, there's no reason not to. However, if you're trying to save money on your electric bill, it will take a very long time before you'll see a return on your investment.

If you have any further questions about solar, or simply have a general real estate question, please give us a call. We look forward to hearing from you soon!

How we helped Chuck with his real estate needs by keeping him posted on everything

"It was very good working with Scott. He was very clear from the beginning of the services he would provide and the costs involved. He was very thorough and always kept me posted on things. If anything came off the rails, he was very quick to react and take care of it. We had a situation that could have been a real problem but with the way Scott handled it, it didn’t turn out to be a problem at all."

-Chuck Roedel, Home Seller

The Porter Ranch Market Is Still Warm Despite Recent Cooling

Conditions here in LA County have been quite interesting lately. Going back to the beginning of the year, we had only 2,361 properties for sale on our local MLS. For the month of October, we have well over 3,700 homes for sale. What does this big shift in inventory mean?

For one, it means buyers have more options. Before, sellers were competing with 3-5 homes - now, they are competing with 10-15 homes at a time. We've also seen a jump in days on market: from 31 days to 48 days. This can be attributed to buyers having more homes to choose from and taking their time. It helps that interest rates are still at historic lows, at just below 4.5%.

The good news for Porter Ranch and the surrounding area is that we've seen a 10% gain, and distressed property sales have fallen from 17% to under 10% since this time just a year ago. Most of the sales we're seeing now are under normal circumstances.

The market was red-hot at the beginning of the year - now, we're seeing stable conditions. The market is growing at a normal pace, rather than falling after a great start to the year. The chances are, if you price your home right, you'll get it sold in under 30 days, which is certainly ideal for sellers.

Here at the Scott Himelstein Group, we've managed to get homes sold in under 20 days on average. So, if you're interested in buying or selling in the LA County area, don't hesitate to reach out to us. We'd love to make your real estate transaction as beneficial as possible!

How we helped Sean with his real estate needs by our quick response

"I’ve known Scott for a long time so it was really cool to have him help me out with my transaction. I don’t know if Scott actually sleeps, he was just so responsive at all hours of the day or night and I never had to wait more than 2 seconds for him to get back to us. We ended up with a condo that we’re very happy with and he did everything that he could so it was just an awesome experience!"

-Sean Feeney, Home Buyer

Are you missing out on the benefits of conventional financing?

Recently, we spoke of FHA financing. Today, we shift our attention to conventional financing and the benefits of it over FHA financing. Many people are unaware they can secure conventional financing for as little as 5% down. What are the other benefits?

Credit score doesn't need to be excellent: You can secure conventional financing with a credit score around 680!
FHA requires a monthly premium: With an FHA loan you have to put 3.5% down. However, it requires you to pay 1.75% up front for a mortgage premium at closing, which makes your down payment 5.25%. Typically, buyers finance that mortgage premium into their loan - with conventional financing you don't have to worry about this up front fee.
FHA monthly PMI is almost double that of conventional financing: Combine that with the the mortgage premium you have to pay and you can really start to see fees add up.
95% of condo and town home buildings are not FHA approved. Putting 5% down on a conventional loan allows you to purchase with a low down payment instead of having to put down the much higher 20% down payment.

As you can see, conventional financing allows buyers to be more flexible and affords them more opportunities that would not otherwise exist. It's a great program - especially if you're interested in a condominium.

Do you have questions about the differences between conventional and FHA financing? Don't hesitate to give us a call or shoot us an email. We are proud to be your number one Porter Ranch area real estate resource!

Why Is FHA Financing so Difficult in Condo Developments?

Back in 2010, the Department of Housing and Urban Development (HUD) started enforcing their longstanding and strict regulations on condominium approvals, which includes a rule that mandates re-certification every two years. Prior to 2010, these guidelines weren't really followed; now, however, all condo projects are held to the same level of restrictions and entire projects must be certified as a whole. This means that all condo communities must go through the same rigorous process of re-certification every two years, which basically means they have to fill out the same paperwork they did at the time of the initial approval process.

The result: condominium communities have allowed their FHA approval status to expire without going through any re-certification process. The downside to this is people who would like to use an FHA loan will not be allowed to buy in a condo development or community. This reduces the pool of potential buyers, causing condo prices to drop because there are fewer buyers in the market.

So, what is the solution now that 95% of condominiums are not FHA approved? It really comes down to urging the non-FHA condo projects to bite the bullet and become approved. This will move properties for sale by opening them up to a whole new pool of buyers - effectively increasing demand and upping prices. Home Owners Association boards of directors, with the help of their community managers, can do a lot of the work themselves and become FHA approved - or, they can hire an independent FHA approval facilitator to do the job for them. A significant increase in FHA approvals in the next few years would be a game changer in the condominium market, and we can only hope to see that happen.

If you have any questions about this or any other real estate topic, give us a call or send us an email. We would love to be your reliable resource for Porter Ranch real estate information!

Who Can You Trust When it Comes to Real Estate?

As you've probably heard, Zillow has merged with Trulia in a $3.5 billion deal. With over 140 million unique visitors in the second quarter of this year alone, the two biggest home search sites have joined forces. Data shows that 94% of people start their home search online before calling an agent. We don't have a problem with this because these sites provide some pretty good information - including tax records, sales data, schools, pictures of available homes, etc. We understand that times are changing, that people are going to use these convenient sites at some point during their real estate experience.

One thing that hasn't changed, however, is the importance of working with a real estate professional for the smoothest experience possible. Trulia and Zillow can't help you negotiate, get your offer accepted, understand the terms of your purchase agreement, or get the best deal in your transaction. If you want a personalized and successful real estate experience, you need to work with an agent - that will never change.

If you want to be as knowledgeable as possible so that the process is smooth and stress-free, don't hesitate to give us a call for any help you might need. We are always available to chat and would love to give you a hand. Thanks, and have a great week!

Fannie Mae is Changing Some of Their Guidelines- We are Here to Help!

Thanks for returning for another edition of our video blog. Today we are talking about a very important topic that's going to affect the marketplace. On August 15, Fannie Mae will change up their guidelines for those who have gone through a short sale or foreclosure. Now, instead of waiting 2 years to buy a home, which has been the case, someone who has a short sale or foreclosure will have to wait 4 years.

One of the biggest reasons we have been seeing price gains here in Southern California is because so many people that have gone through short sales or foreclosures have been able to purchase a new home relatively shortly after. Before August 15, you will have to have your DU underwriting set in stone, in addition to being in escrow. If you have to wait until after the deadline, you will be in trouble and see a lot of people in the same boat. There are exceptions, however, including extenuating circumstances that cause financial hardship. This won't be the case for a lot of people, however. People who have gone through short sales, a lot of times did so for reasons other than financial. These people will be hit hard by this Fannie Mae decision.

If you are in a situation where you have done a short sale within the last couple of years, this will really affect you - now you have to wait at least 2 years longer. We will have to see how this shakes up the marketplace.

Thanks for taking the time out of your day for us, If you have any real estate questions, please give us a call or send us a text. We would love to help you out!

How we helped Patrick with his real estate needs by being knowledgeable about the process

"Scott was on point, responsive and very thorough. He was very knowledgeable about the process and extremely friendly. He really went above and beyond and made sure that I got my house appraised to make sure that we met my closing date."

-Patrick Landis, Home Buyer

Make the winning offer with these 3 tips

There are multiple things that could lead to your offer being denied when trying to purchase a home. Today, we're here to give you 3 tips that will help you stand out of the crowd and win a multiple offer situation. Because we're currently in a seller's market, knowing these will greatly improve your chances of getting the home you desire:

Hire a full-time Realtor. This one is the most crucial. We see people all the time who want to work with a family member or friend who do real estate part-time. The problem is that part-time agents don't know the market as well as full-time Realtors and they don't have relationships with other agents. This makes it difficult for them to get an offer accepted.
Submit a clean offer. If you're asking for a closing clause or an excessive amount on a home warranty as part of the deal, it's going to be difficult to get your offer accepted. Also, asking questions about keeping the seller's appliances can hurt your cause. Finally, be aware of the seller's needs - have your agent ask how much time they need to close, whether they prefer a 30-day or 60-day escrow period.
Write a personal cover letter. Simply write a letter about you and your family to the seller, and include highlights of why the property is right for you. We have seen a buyer putting only 3% down win a multiple offer situation against a cash buyer because they wrote a nice letter. It may sound strange, but this is an effective method.

Don't let yourself get beat in a multiple offer situation - keep these tips in mind when making an offer. We can't stress enough the importance of hiring a full-time agent: they have a better understanding of the market than anyone else, are aware of different trends in varying neighborhoods, and know about the schools in a given area. If you are interested in buying or selling a home, give us a call or send us an email. We'd be pleased to assist you.

July Market Update for San Fernando Valley

The year is halfway over, making now an ideal time to give you an update on the San Fernando real estate market. Right now, the market is still very strong, with a good deal of activity from both buyers and sellers. There are currently 3,200 homes for sales, which is up from about 2,600 at the beginning of the year. However, this means we still currently have a seller's market.

At the beginning of the year, we saw homes sell quickly before interest rates went up - which had a leveling effect on the market. Today, rates have fallen back down to about 4.1% for a 30-year fixed rate mortgage. That's a solid rate if you're looking to buy a home, and we don't know how long it will be before we see rates rise again.

Another important thing you should know about the current market is that appreciation is not like it was last year, where house prices were jumping at an incredible pace. It is currently at a healthy rate, with properties appreciating at about 1-2% a month. This has brought buyers back into the market, increased demand, and created a lot of multiple offer situations - all of which are great news for those looking to sell a home.

The average time on the market is 39 days - but it is not uncommon to see a home sell with multiple offers within the first week if it is priced right. In addition, many homeowners who either had a short sale or were foreclosed in the past few years are back in the market. They represent a large pool of buyers who have been absent until recently.

As you can see, there are many reasons for buyers and sellers alike to enter the market. If you have any further questions about current market conditions in San Fernando Valley, or are interested in buying or selling a home, feel free to send us an email or give us a call. We'd love to hear from you.

How we helped Cathy sell her home in 1 day by putting our time and effort into the transaction

Scott is really great at what he does. He puts his time and effort into everything! He really makes it a personable experience because he put his time in the neighborhood. He’s very knowledgeable and an all-around guy.
Home Seller, Cathy White

Understanding the Importance of Your FICO Score

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 818-720-9922 for a FREE home buying or selling consultation to answer any of your real estate questions.

I'm willing to guess you have a general idea of how important your credit score is, especially if you're looking to buy a home. But do you know how it's calculated? Or how to manage and control it?

If your answer is no, you're not alone. When people try to by a home, many run into credit problems they didn't know they had. Today, I'll share some helpful tips that will help make your buying experience as smooth as possible.

Let's begin by talking about your FICO score, which is calculated using several aspects of your credit data. This includes your payment history, amounts owed, length of credit history, new credit, and types of credit used.

The resulting credit score ranges anywhere from 300 to 850. A score of 720 or higher makes you a premium buyer, which is your goal.

So the question becomes: how do I become a premium buyer?

It all starts with controlling your FICO - successfully doing so will allow you to get a better interest rate, and get a leg up on the competition.

The first step is to speak with a lender about your credit score. Whether you are looking to build a house now or months down the road, you need to speak with an expert so you know where your credit stands and how to improve it should you need to.

Most of the time, credit issues stem from the borrower being overextended. Many people are unaware that using too much credit is the main cause of these problems. Knowing this will allow you to put a game plan together and allow you to pay off debt, which will help your credit score and, eventually, lead to a lower interest rate.

Also, if you've done a short sale within the last 3 years, your credit may have been impacted significantly. It typically takes about a minimum of 2 years for a borrower to be qualified after a short sale.

It all comes back to this: you need to talk to a lender about your credit score before anything else. The better your FICO score when you enter the marketplace, the more successful you'll be in financing your home.

I know it's a lot to take in, but this is crucial. I want to help you have the best possible experience buying real estate here in San Fernando Valley.

If you have any questions, I'd love to hear from you! Give me a call at (818) 720-9922 or email me at Scott@ScottWorks4u.com.

Getting Pre-Approved is a Necessary Step

If you have been browsing home listings recently, you have probably seen the words "pre-approval" out there a lot. You may have just ignored these words and said, "I don't need to be pre-approved, I will just buy the best home in my budget." While that may sound like an airtight strategy, the truth is that being pre-approved is essential to making the right decision on your new home.

One important reason to get pre-approved is to see which loans or mortgages you qualify for. Finding out that you don't qualify for a program that will help you to buy your dream home can be devastating. Conversely, getting pre-approved may allow you to qualify for a much better home than you expected. You may be pleasantly surprised to find that you are able to purchase a home that you thought was out of your budget.

We are currently in a hot seller's market with very low inventory, so sellers are looking to move their homes as quickly as possible. They won't wait for you to get pre-approved, so it is very important that you get pre-approved before you start looking at homes. This way you will know what your range is and you will be able to make an offer immediately.

If you have any questions at all regarding the pre-approval process or any other questions about purchasing a home, please call us at (818)720-9922 or send me an e-mail directly at Scott@ScottWorks4u.com

Always Consult a Professional for an Accurate Home Value

The Zillow Estimator is a Dangerous Tool
A lot of my clients have been asking about the Zillow home value estimator: the Zestimate. Before I begin speaking about its disadvantages, consider the different types of values that are placed on homes.

There is the assessed value, which is the value that the County of Los Angeles places on your home. Usually this value is much below the actual market value. There is also the appraisal value, which is designated by an appraiser and is more analytic and comparative than an assessor's value.

Then there is the market value, which is really determined by the buyer and the seller in the real estate market. This is the true value of your home as determined by market conditions.

The Zillow Estimator is a popular resource for home sellers because it is convenient, but it is quite often not very accurate. If you read the fine print, Zillow actually says its estimates are only 9-12% accurate in Los Angeles County. If you have a home worth $500K and the value is off by 10%, then you have a very large discrepancy.

The problem with this estimator is that they just take the median average and they do not take into account the condition and location of your home, which are huge factors.

The Zestimate can give you a good estimate, but it is nothing compared to the value that a professional real estate agent would be able to place on your home. You should always refer to a trained Realtor for an accurate home price.

Feel free to reach out to me if you need help pricing your home in Porter Ranch. I would be more than happy to assist you in the process.

How we helped Johnny sell his home quickly and efficiently

Scott was very knowledgeable in the business. He was quick to answer any questions and he helped me out a lot. He’s friendly, good to work with, and I’d highly recommend him.

-Johnny Lee

3 Easy Mistakes to Avoid When You're Selling a Home

3 Common Seller Mistakes and How to Avoid Them

In order to educate all of my clients in Porter Ranch, I would like to go over 3 common mistakes that sellers make, and I will also be talking about how they can be avoided.

Overpricing Your Property: In a market like we have here in Porter Ranch this can happen quite often because things are selling quite quickly. Even being $5,000-10,000 dollars off can significantly reduce the amount of showings that you get.

In fact, the National Association of Realtors says that 80% of marketing comes from pricing. Also, a majority of the showings you get will happen in the first 2 weeks, so it's very important to come on the market with an attractive listing price.

Inability to show the Property: People not being able to show their properties is a common mistake, and one that is very easy to avoid. The more showings you get on your property, the more potential buyers you will be attracting to your home. If possible, you should set aside time for realtors to show your Porter Ranch home during normal business offers. The more difficult it is for an agent to show your home, then the more difficult it will be for them to sell it. It takes a bit of sacrifice to make your home available for showing at all these times, but if you want to sell quickly and for top dollar, then this is what you must do.
De-Clutter: You would think this is a given, but a lot of home sellers forget about this necessary step. This means getting rid of personal items whether it's refrigerator magnets, family photos, or artwork. You want to neutralize your home and have buyers be able to come in and imagine themselves occupying your living space. You don't want to distract buyers with unnecessary items that will lure their attention away from the home and into your personal life. Allow the buyers to envision themselves living in your home.

Hopefully this information has been helpful to you as we enter into a busy spring and summer here in Porter Ranch. If you're selling your home, contact me for more tips and suggestions on what you can do to attract buyers and generate interest.

As always, contact me for any and all of your real estate needs in Porter Ranch. I would love to arrange a time where I could speak with you and discuss your wants and needs. You can contact me via phone or email.

Determining How Long Your Home will be on the Market

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

How Long does it Take to Sell?

Clients have been asking me about this lately, so I wanted to touch on this subject. The good news for all my clients in Porter Ranch is that we're still in quite a seller's market. Although we're entering the spring buying & selling season, you will still be in good shape to sell.

The answer to this question is not so clear-cut because the sale of your home depends on a lot of different things. Usually it comes down to the pricing and conditioning of the house, but by and large we are seeing anywhere from 20-40 days on market here in San Fernando Valley.

A lot of people may also wonder why they are not seeing offers on their homes. Luckily, the National Association of Realtors has a good statistic for us that says if you have gotten 10 showings but 0 offers, then your home is likely to be overpriced. The NAR also says that if you go 2 weeks without a showing, you would also be overpriced.

Being on the market for 3-5 weeks is the norm right now, but if you're priced right and your home is in good condition, then you can expect that number to decrease further. Price and condition are the 2 main factors right now, so make sure your home is priced accurately and attractively, and that your home is in great condition. Also be sure to keep track of how long you have been on the market as well as how many showing you have been going through.

Thanks again for tuning in, and if you have any questions about this topic please feel free to contact me. If you have any other inquiries regarding real estate in Porter Ranch or San Fernando Valley, please do not hesitate to contact me either.

Expect a Hot Seller's Market in San Fernando Valley for Spring 2014

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

Is Now a Good Time to Buy?
Spring has come to us in Porter Ranch, and with that comes a flurry of real estate activity. If you're considering getting involved in real estate this year, then you need to know what's going on in our market. Let me fill you in briefly on what you can expect.

Rising Interest Rates: Interest has risen steadily over the past year and lenders do not foresee any lower interest rates in the future. Because of this, now is your best bet to buy a home affordably. With interest as low as it is right now, you could save yourself hundreds of thousands of dollars over the course of a 30 year loan.
Inventory is still very low: Even with double the amount of inventory we had last year, we are still experiencing a tremendously low amount of inventory right now. In the San Fernando Valley you need about 7,000 homes on the market to neutralize the advantage between buyers and sellers. Currently, we have around 2,700 to 3,000 homes available as we enter the spring season.

This means that if your home is priced right, it will likely sell right away and will probably receive multiple offers. So, if you're looking to get top dollar on your home, now would absolutely be the time to do so.

There is a land shortage: In all the areas outside of Los Angeles county, there is not much room to build new housing. We're seeing people coming from the edges of Los Angeles back into the San Fernando Valley. As a result, you have an increased buyer pool as well as increased buyer activity. This will probably only get worse as time goes on, because there is just not enough space in Los Angeles anymore.

So, now is actually a great time to sell and a great time to buy. Sellers will sell their homes quickly and for top dollar, and buyers can take advantage of low interest rates while they're still around.

Please contact me with any comments or questions and I would be glad to help you out in any way possible. You can contact me at (818) 720-9922 or email me at Scott@ScottWorks4u.com

Spring Marketing Tips for Sellers

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

Spring Marketing Tips for Sellers

After speaking about accurate home pricing and market competition, I would like to talk today about what sellers can do to market their homes. I have just a few tips here for you, but if you'd like to know more, please contact me directly.

Marketing Your Home

Professional Photos: If you're hiring a professional realtor, you might as well get a professional photographer. This is just one more way to make your home stand out from all the others. Too often I see listings with very poor quality photographs up, and this will instantly turn buyers away. Let people see your property, not a fuzzy image that causes suspicion.

Strong Online Presence: A whopping 94% of buyers find their home on the internet. Your realtor should have your home on hundreds of different websites to market it to as many different potential buyers as possible.

De-Clutter: To market your property, it should be clean and clutter free. Buyers want to see a nice, open floor plan and you have to do your best to give them this. Take down family photos and refrigerator magnets, and anything else that obscures the true dimensions of your home. Don't forget the exterior of your home, either, because that is what will initially attract buyers to your property. Some simple landscaping can go a long way. In general, make sure your home is clean, open, and neutral (meaning your personality shouldn't show).

Thanks again for watching. I hope this information has been helpful to you. If you want any other ideas on how to improve the value of your home or how to get it ready for a spring sale, be sure to contact me. Consider me your #1 resource for real estate.

What You Need to Know about Real Estate in Porter Ranch this March

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

What You Need to Know about Real Estate in Porter Ranch this March

The market here in Porter Ranch and the San Fernando Valley has seen tremendous growth in the past few years. However, these gains that we've seen in the past are starting to soften up a bit and lead us into more of a lukewarm market. There are a few different reasons why this is happening and I'm going to share them with you.

Why the Market is Softening Up

Inventory has nearly doubled: Buyers have a lot more options when it comes to purchasing homes, so now their choices really come down to price and condition.

Even though inventory has doubled, it is still very low, and even by doubling what was available in December and January, we are still experiencing a shortage in homes.

Demand is high and interest is very low: Multiple offers are becoming common in this market as it caters heavily to sellers.

However, homes are very price sensitive right now. This is because of the flood of new inventory. With all the extra homes on the market, these properties have to compete with each other for the best price in comparison to their real value.

This gives buyers a bit more leverage in a market that otherwise favors sellers, because buyers can gauge a good price relative to other available properties.

Hopefully this explanation has been helpful to you. If you have any questions about this analysis or any concerns relating to buying and selling property in Porter Ranch, please contact me. You can call me at (818) 720-9922 or email me at Scott@ScottWorks4u.com

Making an Offer: Are You a Contingent or Non-Contingent Buyer?

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

Making an Offer: Are You a Contingent or Non-Contingent Buyer?

Today I wanted to speak with you about the ways to go about and things to avoid when making an offer on another home before your house has sold. I am starting to see the question come up a lot of a variety of different reasons. For people who are selling their home and are looking to either downsize or move up, it can be very difficult to write an offer for home when theirs has yet to sell unless they are truly non-contingent. If you have to sell a home, put yourself in the shoes of the seller who’s trying the sell their home; if that seller has more than one offer and they don’t have a contingency, which one would you choose?

That being said, there are ways to go about doing this but it really requires placing your home on the market. There contingencies that can be in place so that you’re protected and don’t end up on the streets if you can’t find a home. In the event that you couldn’t find a home in 60-90 days, you would have the ability to back out at no cost to you. Once your house has sold and the buyer has completed the physical inspection and appraisal of your home, you have just completed two of the biggest hurdles sellers face when selling their home.

Finally, now that we’re in a market that has seen 35-40% gains since the beginning of 2012, you’ve seen a lot of buyers that have been “priced out.” As a result, the buyers who are out purchasing homes for whatever reasons have contingencies in place. This means you’re not alone! It is becoming commonplace to see people who are selling homes have contingencies that need to be listed in order to purchase a property. This could cause potential problems for you! However once your home hits the market, you will find the buyer pool.

If you have any real estate questions, we are here to answer them! Give us a call at (818) 720-9922. Thanks and have a great day!

Knowing Your Competition: How to Set Realistic Expectations When Selling Your Home

Last time we spoke about the importance of pricing your home accurately and one of the steps in doing that, which will be today’s subject, is making sure you the competition that you’re facing. Obviously you will be able to see the comparable homes that have recently sold in your neighborhood in our pre-listing package, but it’s also super important that you know your competition while you’re on the market.

I encourage sellers to go and check out their competition; not only is it important to know your neighbor’s price tag, but also being aware of updates to the kitchen or exterior of the home could be useful knowledge in the sale of your home. If their home has brand new cabinets and granite counter-tops and your home has 25 year old cabinets, you may want to consider upgrading your kitchen or pricing your home accordingly.

Sellers are often advised to view the home through the buyer’s eyes, not their own. There is no better opportunity to do this than going to other houses and critically identifying its drawbacks and assets in comparison to your home. Analyzing the square footage and condition will allow you to accurately price your home. Also, if your roof needs to be replaced or your lawn could use flowers to liven it up, this all adds curb appeal to your home.

Seeing comparable properties allows you to be more realistic as seller about pricing your home. It is critical to understand as a seller that it’s the market that sets the price for a home, not the agent and not the client! If your home is overpriced, it will make the other homes look more attractive causing them to sell faster than yours.

As for deciding what needs to be done to spruce up your house before listing as opposed to major renovations, improvements to bathrooms and kitchens tend to add the most value to your home. Other improvements may help sell your home, but not add any additional value.

If you have any real estate needs don’t hesitate to call us at (818) 720-9922. We are here 24/7 for you!

Thanks and have a great day.

Three Reasons Why You Should Price Your Home Accurately!

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (818) 993-1300 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I wanted to talk to you about sellers pricing their property right from the beginning. This is critical for a multitude of reasons especially today when buyers have so many resources at their disposal. Buyers can simply go online and have all the tools to be able to see what your house is really worth. Buyers already know from the beginning what your house is worth because remember, at the end of the day, the house is only worth what the buyer thinks its worth. As a seller, you can either agree or disagree with the buyer.

If you price your home right, you will most often receive multiple offers. This is especially important right now in a market with low inventory. Buyers right now are being priced out of properties and they will pay more than market value for properties if they are priced right. Also, if your home is in escrow and something happens where it falls out of escrow, your correctly priced home will have backup offers so you can avoid putting your home back on the market and waiting 35-40 days for an offer to come across the table.

In multiple offer situations, the seller also has more leverage when it comes to negotiating whether it is the physical inspection or enforcing loan contingencies. Lastly, you will find that you will end up netting more money when the home is priced correctly at the current market value. This helps you enter multiple offer scenarios and selling over asking price.

Thank you for visiting my video blog! If you are a buyer, check out our free MLS property search and if you are interested in selling, check out our free home value report. Please call me at (818) 720-9922 or email me at Scott@ScottWorks4u.com. Have a great day!

What Can You Expect in 2014?

I hope you had a happy New Year! Today I wanted to recap what happened in 2013 and also let you know what to expect in 2014. From the beginning of 2013 to about May, it was a feeding frenzy of multiple offers and skyrocketing prices due to the low inventory in the San Fernando Valley. In that five month period, there were only 1,700 properties for sale; towards the end of that run, there was less than one month of inventory and in some places, only 20 days of inventory. What completed the feeding frenzy was that interest rates were under 4%. From the beginning of 2012 to the end of 2013, most parts of the San Fernando Valley saw anywhere from 35-40% price increases.

In the middle to end of May 2013, we saw a jump in interest rates. This causes buyers to freeze what they were doing yet historically, interest rates were at all-time lows. Rates fluctuated in the fall and winter of 2013 before the Government announced they would no longer buy the bond cause rates to close the year at 4.5%

Looking towards 2014, we expect healthy gains and a more “normal” market if the interest rates rise slightly and hinder the buyer’s affordability. I do expect rates to be up slightly until the end of the year and into 1st quarter next year. I don’t foresee significant increases in rates until sometime in 2015. Much of this taper talk was more a question of what if and when. Also, now that the Feds said they will start the process in small increments, I think we know what to expect to some degree.

I still feel there should be a sense of urgency on the sellers part because if rates tick up even more, there will be a lot less buyers. Not to mention, the guidelines seem to be tighten up further into 2014 making it tougher to qualify for a loan. Prices could stall until the economy significantly improves.

Thank you for visiting my video blog! If you are a buyer, check out our free MLS property search and if you are interested in selling, check out our free home value report. Please call me at (818) 720-9922 or email me at Scott@ScottWorks4u.com. Have a great day!

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