Archive for the ‘Home Buying’ Category
April 23, 2009
This story comes to us from Atlanta, GA. It illustrates a little tip to those of you looking to get into a real estate investment or purchase a home. Here’s the advice: Your builder does not care about you.
How do we know? Let’s take an example from this Atlanta story. Why Atlanta? Well, we don’t want to smear anyone in SF on a public message board, but 2,500 miles away in the A-T-L… we’re blowing the whistle. Off the public board, however, we advise our clients how things shake out here locally.
Anyhoo, there is a company that built a high rise condo building in Midtown Atlanta in 2004. Units sold like hotcakes at the time. The sales center opened and it was like an old west land grab over the ~380 units. The building, named “Spire”, caters to a young, professional, and hip crowd addicted to city living, incredible views, and night life that never ends. Owners happily moved and settled in. The builder had acquired a nice batch of customers.
Spire was a hot commodity in '04.
Fast forward to 2007. The same builder went directly across the street and built Read the rest of this entry ?
Posted in Appraisal 101, Home Buying, Home Selling, Tips | Tagged atlanta, builder discounts, condos, inventory, over development, price gouging, san francisco, san francisco real estate, spire midtown, viewpoint midtown | 1 Comment »
April 9, 2009
The first quarter has been interesting. We’ve broken the market into price segments and tallied up the action going on in each bracket. Then we compared this year’s first quarter activity to the first quarter of 2008. The numbers are telling, and they probably explain why medians have come down so far this year. Here are the bullet points from our research:
- Activity in the lowest price bracket, under $499,999, actually increased by nearly 15% year over year.
- The next bracket, $500,000 thru $999,999 saw a drop in activity of nearly 29% year over year.
- $1M thru $1,999,999 saw a more significant drop in activity, with a 55.78% decline in the number of transactions compared to Q1 2008.
- And the highest portion of the market, $2M and above, is hurting the most, with a 71.08% drop in activity!
- Total Sales Volume for all price brackets is down nearly 35% year over year thus far.
- With more action taking place on the low end of the market and less on the high end, it’s no wonder why median prices are down so much this year.
After putting the market under the microscope, we've determined that the low end is smokin'!
When we published our Q1 2009 Report, we mentioned that we had noticed these trends in the marketplace, and now we have the numbers to prove the point. This is very useful information if you’re in the market right now. As we mentioned in our report, the time is ripening for buyers to get into the higher ends of the market. Jumbo money has slightly loosened up recently and rates have eased. If you’re selling on the low end, it could be a good time for you as well.
Want the full spreadsheet? Click HERE.
*Please note that the total number of sales is for San Francisco only, and property types include single family homes, condominiums, stock cooperatives, lofts, TICs, and 2-4 unit buildings.
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Posted in Home Buying, Home Selling, Macro-Level Info, Nerdy RE Analysis, Tips | Tagged market trends, numbers of sales, q1 2009, sales volume, san francisco, san francisco real estate, Tips, year over year change | Leave a Comment »
April 7, 2009
In the April 2009 edition of Realtor Magazine, there was a particularly interesting article about real estate market cycles. It addressed issues such as inventory levels, appreciation, and stages of a market cycle. Some of the bullet points include:
- Appreciation was out of whack from 2000-2006, a time in which values went up on average 89%.
- The market is in balance when there is 5-6 months of inventory available.
- The stages of a market cycle resemble Elisabeth Kubler-Ross’s states of death and dying. Optimism, Excitement, Euphoria, Denial, Fear, Panic, Despondency, Depression, Hope and back to Optimism.
We scanned the most interesting box, which details these bullets.
Market Cycle Info (click to enlarge)
We’re big believers in keeping close tabs on inventory levels in individual neighborhoods. We have put together a spreadsheet that contains all of San Francisco’s neighborhoods, how many properties have sold during Q1 2009, how many are for sale, and how many months of inventory there are in each. From these figures we are able to determine which neighborhoods are:
- Strong sellers’ markets
- Sellers’ markets
- In balance
- Buyers’ markets
- Strong buyers’ markets.
You may be surprised at the results from Q1 ’09. Because the spreadsheet is too large to post here on the blog, you may contact us if you’d like a copy for yourself. We continuously update this spreadsheet throughout the year so we can track the individual neighborhoods.
And why do we do all this? We’re big believers in the notion that there are a myriad of opportunities no matter the market’s condition. The key is understanding where they are. And it’s info like this that paints a picture of where the opportunities lie.
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Posted in Home Buying, Home Selling, Macro-Level Info, Nerdy RE Analysis, News, Tips | Tagged appreciation, depreciation, inventory levels, inventory spreadsheet, market absorption, market cycles, san francisco, san francisco real estate | 3 Comments »
March 4, 2009
I’m about to share something with you that I learned many years ago in real estate appraisal school. When I first heard it, I thought my instructor was joking. But as she proceeded to explain, I realized it was very real.
The story has to do with how real estate values are affected by paranormal activity, ghosts, or stigmas of being haunted. I learned that if a seller knows of any of these activities going on in their home, they must disclose it! Sound too kooky to be true? That’s what I thought… but consider this scenario:
Mike and Ann are moving from New York to New Orleans. They found a charming old home in the Garden District, one with incredible architecture, rich history, and plenty of character. The home has been on the market for nearly a year. Mike and Ann submit a low offer, and much to their surprise, it’s accepted! They are very excited about their move.
After settling in, they quickly learn from neighbors and locals that the home has long been rumored to be haunted. Mike and Ann are now the rightful owners and become frightened by the news. There was nothing in the disclosures that stated anything out of the ordinary. They decide to list their home and after 2 years on the market, realize that they’re sitting on an illiquid asset. What happens here?
First and foremost, if something is material fact it must be disclosed. The fact that the home had “paranormal activity” of course cannot be proven. The stigma in the market area, however, is very real, and is a material fact. Court rulings have set precedent in these instances that would give Mike and Ann a case.
The lesson? If you’re in doubt about whether or not to disclose something, it’s always best to disclose it. Or, like my old appraisal instructor used to say… “Disclose, disclose, disclose!!”
We got a sweeeet deal!
Interesting articles that discuss haunted houses, superstitions, and paranormal activity as it relates to real estate:
Article One | Article Two | Article Three
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Posted in Appraisal 101, Home Buying, Home Selling, Tips | Tagged disclosure, ghosts, haunted houses, law suits, paranormal activity, san francisco, san francisco real estate, superstition | Leave a Comment »
February 27, 2009
We’re sure it comes as no surprise to most of you, but did you know that interest rates have a direct affect on what one can afford? A colleague of ours put together some numbers to show just how much purchasing power is lost with interest rate increases. Here is the math*:
Current Rate (2/09)
- Interest rate – 5.25%
- Desired monthly mortgage payment – $4,418
- How much home can you afford? $1,000,000
Let’s say rates go up 1%. How does that change the scenario?
- Interest rate – 6.25%
- Desired monthly mortgage payment – $4,418
- How much home can you afford? $896,922
Let’s say rates go up 2%. What can you shop for now?
- Interest rate – 7.25%
- Desired monthly mortgage payment – $4,418
- How much home can you afford? $809,541
You can see that if rates go up just one percent, your purchasing power decreases by $103,078. And if rates go up two percent, your purchasing power goes down $190,459! Two hundred grand is a lot of house.
Many economists and industry professionals are predicting an upward trend in interest rates. Those waiting for the market to bottom out could negate any savings by paying higher rates in the future. Just something to think about if you’re currently playing the sidelines and are planning to own long term.
Another thing to consider if you’re playing the sidelines is this: When the first signs of a recovery become known, you won’t be alone in getting into the market. Right now buyers have top pick at the properties they want. But when everyone comes rushing back in, buyers will be back to settling on their 2nd and 3rd choices.
Are we saying now is the time to buy? Not necessarily. It all comes down to your individual situation. But as this article mentions, and as we’ve alluded to in past articles, buyers with a little cash saved up who are planning on holding their property long term have it pretty good right now.
Lots of would-be buyers are waiting the sidelines right now.
*Based on down payment of 20% on a 5/1 P&I jumbo ARM with one point.
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Posted in Home Buying, Tips | Tagged buyers, interest rates, market timing, purchasing power, san francisco, san francisco real estate, sidelines | 1 Comment »
February 26, 2009
All right now, get those dirty thoughts out of your heads. What we’re referring to here is the power that buyers have over the market right now. Let’s take a look at some interesting phenomena we’re seeing out there :
1) In any given market you’ve got a batch of sellers. Which ones are the truly motivated ones? Most of the time it is tough to tell. Present market conditions have created a grand exposé. The curtains are now pulled back and buyers have more insight than ever into who the eager sellers are.
2) Sellers generally have a bottom price in mind when they list their homes. They usually list their homes above that bottom to build in a little cushion to negotiate. That bottom figure is top secret. They play their cards very close to their vests and you usually never know what bottom is for them until you begin negotiating. This comes as no surprise. However, what we’re seeing play out in the marketplace lately is sellers are feeling increased pressure from falling prices, rising inventory, and the lowest consumer confidence levels on record. This is causing more sellers (particularly the smart ones) to cut to the chase and list their homes at levels that will attract attention.
Buyers are now able to peek behind the curtains.
3) The typical seller is currently challenged by chasing a moving target. The market has changed so dramatically over such a quick period that finding the true market value a home ain’t all cotton candy and ferris wheels. It’s become a major headache for sellers, who have desperately been trying to find that number with price drop after price drop, causing even more apprehension on the part of buyers. This leads to a vicious cycle.
4) Buyers are either sitting on the sidelines, waiting for confidence to build, or are bidding very cautiously. We have seen some homes selling at and above asking, with multiple offers, but nothing on the scale of years’ past. Generally speaking, buyers seem to be in complete control right now.
Why are these points important? Two reasons. First, if you’re a buyer, take full advantage of seeing the other players’ cards right now. If you’re a seller, particularly a motivated one, be realistic about your asking price and know the psychology of the typical buyer before you launch your home into the marketplace. If you’re interviewing listing agents, don’t fall for the one with the highest list price. You’ll want the agent that tells you how it is, despite how tough that pill may be to swallow.
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Posted in Home Buying, Home Selling, News, Tips | Tagged buyers, commentary, home prices, market forces, market trends, prices, san francisco, san francisco real estate, sellers | Leave a Comment »
February 24, 2009
We were perusing through some stats the other day (imagine that!) and happened upon a list of the top 5 states with the newest housing inventory. Here is the list, courtesy of Arun Barman, Research Economist at Realtor.org.
- Nevada – 7.7%
- Arizona – 6.7%
- Florida – 5.4%
- Idaho – 5.4%
- Texas – 5.0%
We’ve long held the hypothesis that run-away development can ruin a real estate market, but we’d yet to really see a macro-level list that corroborated that thought. What of course jumped off the page to us is the top 3. Nevada, Arizona, and Florida all have had major real estate busts.
Where is California, you might ask. California experienced growth in new inventory over the past real estate boom. However the growth in new inventory did not cast a shadow over existing inventory (as it did in the other states) which is why California did not make the list. With development costs in California so high, investors and/or developers are more apt to rehab and flip property than they are to build new. The places where property values have taken the biggest hits in California (and the Bay Area) are the newer suburban and exurban developments. In general, the more established communities have been hit, but not as hard.
Getting back to the hypothesis, it really all comes down to value. The four tenants of values are demand, utility, scarcity, and transferability (remember it as “DUST”). An item (any item) must have all four of these characteristics to have value. When developers go crazy, building anything and everything in a booming real estate market, they put downward pressure on the existing homes in the area. This is because all the new inventory greatly affects the scarcity portion of the value equation.
It is for this reason (we believe) that San Francisco’s market has not imploded the way other markets around the nation have. The lion’s share of San Francisco inventory is old, scarce, and one-of-a-kind. Furthermore, our local government makes it very difficult for developers to build massive structures that send un-welcomed, downward property value pressure throughout our neighborhoods.
Age of San Francisco's Housing Stock - Courtesy of Propertyshark.com (click to enlarge)
This is a big reason why we’re especially cautious when taking clients around the newer parts of the City. We’ve seen what an onslaught of new inventory can do to real estate markets and we’re wary of what it will do here (albeit localized to just a few select pockets within SF).
Do we hate developers? Read the rest of this entry ?
Posted in Appraisal 101, Home Buying, Home Selling, Macro-Level Info, Nerdy RE Analysis, New Developments, Tips | Tagged arizona, developer, florida, housing development, housing stock, markets, nevada, san francisco, san francisco real estate, value, year built | 5 Comments »
February 20, 2009
This is a very important question, as many new developments have sprung up over the years, particularly in parts of the city south of Market Street. The answer is yes, it is okay to buy in a new development, but keep in mind the following tips:
The area south of the financial district has seen rapid condo inventory growth.
1) Always bring an agent. You have to have your agent with you during your first visit to any given sales center if you plan on using one. Very few developers will allow you to visit alone, and later come back with an agent to represent your best interests. This is a developer custom that has evolved over the years, because like all sellers, they pay your agent’s commission. Fortunately, having an agent represent your interests costs you nothing.
2) Why use an agent? There are countless reasons, but an important one with regard to new developments is that good agents know how soft prices are at each development. Some make concessions, some are taking low offers (in some cases VERY low offers) and some are throwing in goodies such as hardwoods and appliance packages. Conversely, some are not making any concessions. A good agent will know what’s going on at each development and how to get you more for your money.
3) Above and beyond negotiation, another thing a good agent will do for you is keep you away from developments that are fledgling or are headed for big trouble. There are developments (both new and existing) that I wouldn’t let my clients touch with a ten-foot pole. Mismanaged HOA’s, annual budget deficits, lots of REO’s, poor construction quality, and law suits are just the tip of the iceberg. Beware the agent that says all these developments are perfectly good investments. They’re not.
Four more great tips if you continue reading –> Read the rest of this entry ?
Posted in Financial District, Home Buying, Home Selling, Neighborhood Info, SoMa, South Beach, Tips | Tagged condominium, condos, high rise, inventory, new developments, san francisco, san francisco real estate, soma, south beach, Tips, trends | 2 Comments »
February 19, 2009
If you are currently seeking a mortgage or just thinking about it, we ran across 5 good tips that could help you know what to expect. The biggest take-away from this info? Take note of the credit thresholds that lenders use. For example, did you know that if your credit score is 719 (versus 720), you can count on an additional eighth of a point added to your mortgage? This could cost you thousands over the long haul.
This brings me to another piece of advice (might as well, since I’m thinking about it). If you’re thinking of buying a home, be sure you inspect your credit reports NOW. If there is an error, or you need something altered, it can take the bureaus around 90 days to reflect changes you request today. Always get your credit ironed out first before jumping in! A few simple tweaks to your credit can save you some big time cash.
Here are the 5 tips, courtesy of the Chicago Tribune:
- Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase. [Editor's Note: We are seeing 20% in most cases. Also, the more you borrow, the more down payment you will need. TIC's are requiring higher down payments as well.]
- Credit scores count. A 720 [Editor's Note: we think they mean 740 here] on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: “A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”
- Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration or the Veterans Administration.
- Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.
- Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.
Source: Chicago Tribune, Mary Umberger (02/15/09)
Just like basketball, one measley point can make ALL the difference!
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Posted in Home Buying, Tips | Tagged credit report, credit score, down payment, fico score, mortgage, san francisco, san francisco real estate | Leave a Comment »
February 4, 2009
One can often tell how hot or cold a real estate market is by how long it takes a typical home to sell. When homes are selling within a few weeks of hitting the market, things are pretty hot. Conversely, when homes sit on the shelf for a while, the market is cold. The duration of time a home is on the market is known as “marketing time”, “days on market”, or “DOM” for short.
In any given U.S. market, marketing times averaging less than 30 days signal a red hot market where properties are selling like hot cakes. Average marketing times between 31 and 59 days signal a strong market. When marketing times are between 60 and 180 days, the market is believed to be in balance.
Remember when homes were selling like hotcakes?
Once average marketing times surpass 180 days, however, things are looking grim and signal a weakening of the market in question.
How do we know these cutoffs are reliable indicators of market conditions? Well, we didn’t just make these numbers up– they’re actually what the banks have set forth as their guidelines. Matter of fact, average marketing times are printed right there in the appraisal report, which the lender scrutinizes carefully (especially these days).
Appraisal report snipit (click to enlarge)
Now that we’ve discussed marketing times and what a hot market, a market in balance, and a cold market look like, how would you like to see some trends in San Francisco? Well that’s just what we’ve done. We plotted average and median marketing times for all property types in the City and looked at the trends over a 14-year history. Here’s the chart:
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Posted in Home Buying, Home Selling, Macro-Level Info, Nerdy RE Analysis, Tips | Tagged analysis, days on market, dom, history, marketing times, san francisco, san francisco real estate, Tips, trends | 1 Comment »
February 2, 2009
We’re having fun with our new formulas that give us the ability to adjust sales prices based on the Consumer Price Index. Just what is inflation adjusting?
Let’s say your parents bought a place in 1990 for $100,000 and today it is worth $500,000. One might assume that the value has increased $400,000. However, the value of the dollar has changed over the past 18 years, so we need to correct for those changes in order to determine how much true appreciation their home has accrued. What we find when we adjust for inflation is that $100,000 in 1990 is equivalent to $162,529 today. This changes the appreciation rate a bit. The home has actually appreciated $337,471 in real terms, not $400,000. Adjusting for inflation gives us a more accurate depiction of what the market is doing.
Balloons aren't the only things that inflate...
We wanted to revisit an old post that was one of our most popular on the blog to date. We discussed how much home prices have come down in San Francisco, and have since taken the data, inflation adjusted it, and have some new numbers (although very similar conclusions to last time).
Keep reading, this is good stuff!
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Posted in Home Buying, Home Selling, Macro-Level Info, Market Check Up, Nerdy RE Analysis, Tips | Tagged analysis, appreciation, depreciation, districts, median, median sales price, rankings, san francisco, san francisco real estate, Tips, trends, values | 2 Comments »
January 26, 2009
Psst, hey buyers:
Some of the best things you can do to ensure you are making a smart real estate investment are:
- Work with an agent who is a consultant, not a salesperson.
- Invest in a tried-and-true area with relatively static inventory levels (unless you’re going to hold for the VERY long term).
- Have a period of ownership in mind… something around 5 years or more is a good idea. Anything less and you could be gambling. Benefiting from real estate ownership works beautifully, but it takes time. Save day-trading for the stock market.
- And… imagine yourself as the seller one day in the future.
Save day trading for the stock market
Let’s talk a little about #4.
Unless you plan on passing your property to your heirs, you will one day be selling your palace. Imagining yourself in these shoes as you shop for real estate can put you on the right track. As you tour properties, ask yourself “Will buyers like this place in the future? How will this area be different? Am I selecting something with mass appeal, or am I severely limiting my future saleability with my eccentric tastes? Does this home have any incurable characteristics? How many more homes like this will be made?”
In order to answer these questions, you must first know a little bit about your local market and what buyers prefer. This is one of the reason we write our series “Snatched Up“. But we’ve got some experience from working directly with buyers and can share some common threads we’ve noticed amongst them when it comes to picking homes. Here are seven things we hear often: Read the rest of this entry ?
Posted in Home Buying, Home Selling, Tips | Tagged buyer tips, buying a home, invest, investment, real estate, san francisco, san francisco real estate, seller | Leave a Comment »
January 22, 2009
We’ve written about it before, and this little story is a good example. The wisdom? Listing prices mean nothing. The reason they mean nothing is because sellers have a million and one reasons why they list their properties at certain prices. Maybe their asking price is indicative of how much they owe on their home, their credit cards, cars, how much they need to pay their agent, closing costs, plus a little cushion. Maybe its based upon how much profit they want to turn since they made some improvements. Maybe they’ve got medical bills to pay off. Who knows? Like I said, there’s a million and one reasons.
Yeah, I'm selling. Let me go ahead and add these up so I can calculate my asking price.
Rarely do you find a home that is priced right on the money. And oftentimes you’ll see homes intentionally underpriced by $100K or more, just to create a buzz and have the market bid it up.
In any case, here’s a story about a cute home close to the Palace of Fine Arts. 3271 Baker was purchased in November 2006 for $1,700,000, just a smidge above the asking price of $1,695,000. It had only been on the market for 37 days. The buyer clearly made some nice improvements during their ownership. New kitchen, new bath, and really cleaned up the property.
Less than two years later, 3271 Baker came back on the market. It was listed on July 3, 2008 with one of San Francisco’s best and most respected agents. The list price was
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Posted in Appraisal 101, Home Buying, Home Selling, Marina, Neighborhood Info, Public Listings, Tips | Tagged 3271 baker, list prices, Marina, market, palace of fine arts, san francisco, san francisco real estate, single family home | Leave a Comment »
January 22, 2009
Are you ready for a 2009 update?
San Francisco from Treasure Island - by me
Lets kick it off with Single Family Homes.
As I write this, there have been 43 closed sales of single family homes since the 1st of the year. Interestingly, 42% of this year’s sales have taken place in District 10 with 58% taking place in Districts 1-9. The discrepancy between asking prices and selling prices is small– homes have sold for 98.88% of their asking prices using averages and 98.65% using medians.
The median marketing time is 44 days and the average is 55.
How many single family homes are available for purchase right now? MLS indicates 484 with a median asking price of $799,000. There are an additional 212 homes that are under contract or currently pending (pending means that they are under contract and that all contingencies have been removed).
We have had 23 listings expire and 44 withdrawn since the 1st of the year.
Next up, the Condominium market: Read the rest of this entry ?
Posted in Home Buying, Home Selling, Macro-Level Info, Nerdy RE Analysis, News, Tips | Tagged 2009, market activity, market report, san francisco, san francisco real estate, update | Leave a Comment »
January 10, 2009
It’s the ultimate question, and we get asked almost daily. I’ve actually been asked so many times that I have unintentionally developed a canned response, explaining how San Francisco is comprised of many different micro-markets and they all behave differently. What’s going on in South Beach isn’t what’s going on in the Sunset, ya dig?
Time to gain some perspective on the market
However, zooming out and looking at the City as a whole, we wanted to provide an answer to this broad question by looking at 14-year median value trends for all different property types (single family homes, condominiums, TICs, and lofts). Stock Cooperatives were left out because there were not enough data points to be particularly useful in the analysis. For single family homes and condos, there were thousands of data points, and for lofts and TICs, there were hundreds. So we have confidence in these medians. All data comes from the MLS so it represents open market transactions only (this is a good thing) and the resale market only (meaning it leaves out most new development sales, which is okay because if you’re an owner, the resale market should be what you’re concerned with anyway).
Now for the answer: Have prices come down in San Francisco? Read the rest of this entry ?
Posted in Home Buying, Home Selling, Macro-Level Info, Nerdy RE Analysis, Tips | Tagged city, condo, condominium, decline, increase, loft, market, median, prices, san francisco, san francisco real estate, single family home, tic, trends, values | Leave a Comment »
Show me your bottom!
February 26, 2009All right now, get those dirty thoughts out of your heads. What we’re referring to here is the power that buyers have over the market right now. Let’s take a look at some interesting phenomena we’re seeing out there :
1) In any given market you’ve got a batch of sellers. Which ones are the truly motivated ones? Most of the time it is tough to tell. Present market conditions have created a grand exposé. The curtains are now pulled back and buyers have more insight than ever into who the eager sellers are.
2) Sellers generally have a bottom price in mind when they list their homes. They usually list their homes above that bottom to build in a little cushion to negotiate. That bottom figure is top secret. They play their cards very close to their vests and you usually never know what bottom is for them until you begin negotiating. This comes as no surprise. However, what we’re seeing play out in the marketplace lately is sellers are feeling increased pressure from falling prices, rising inventory, and the lowest consumer confidence levels on record. This is causing more sellers (particularly the smart ones) to cut to the chase and list their homes at levels that will attract attention.
Buyers are now able to peek behind the curtains.
3) The typical seller is currently challenged by chasing a moving target. The market has changed so dramatically over such a quick period that finding the true market value a home ain’t all cotton candy and ferris wheels. It’s become a major headache for sellers, who have desperately been trying to find that number with price drop after price drop, causing even more apprehension on the part of buyers. This leads to a vicious cycle.
4) Buyers are either sitting on the sidelines, waiting for confidence to build, or are bidding very cautiously. We have seen some homes selling at and above asking, with multiple offers, but nothing on the scale of years’ past. Generally speaking, buyers seem to be in complete control right now.
Why are these points important? Two reasons. First, if you’re a buyer, take full advantage of seeing the other players’ cards right now. If you’re a seller, particularly a motivated one, be realistic about your asking price and know the psychology of the typical buyer before you launch your home into the marketplace. If you’re interviewing listing agents, don’t fall for the one with the highest list price. You’ll want the agent that tells you how it is, despite how tough that pill may be to swallow.
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Posted in Home Buying, Home Selling, News, Tips | Tagged buyers, commentary, home prices, market forces, market trends, prices, san francisco, san francisco real estate, sellers | Leave a Comment »