Three Reasons Why You Should Price Your Home Accurately!

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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!