Archive for the ‘home value’ Category

The Unwritten Rule All Listing Agents Need to Follow (Sellers: Take Note)

Thursday, April 13th, 2017

If you are a listing agent or a seller who has hired an agent to sell your home, this is an important rule that is often ignored by agents – and it can cost home sellers a sale. It is not written down anywhere and is not required, but it is necessary in order to assure smooth closings. What is this rule? Listing agents must prepare reports for appraisers.

As long as I have been listing properties I have been preparing reports for appraisers. The appraiser, who is sent out by the buyer’s lender to evaluate a property that is in escrow, may not know the neighborhood well or even be from the immediate area. He or she also may not understand why a similar home sold for more or for less. Since the buyer’s agent is not allowed to communicate with the appraiser it is in the best interest of both parties that the listing agent take this advice to heart and come prepared.

I have had many appraisers tell me that they did not need me to meet them at the property or prepare anything, but I still do both and I have to say that almost all of them end up spending at least a few moments at the end going through my report with me.

Here is what I include in my appraiser reports:

1. A brief but concise analysis of all comparable sold properties – usually within the last 6 months, comparing and contrasting them to the subject property. I also let the appraiser know if there were multiple offers, as this can attest to the fact that many thought the property value was accurate.

2. A list of any upgrades or improvements in the subject property

3. Analysis of any pending sales, including prices I can usually obtain from the listing agents to help

4. A comparative market analysis sheet that lists all the comps and the pending subject property

5. All relevant listing sheets (for each property analyzed)

6. Any relevant sales statistics graphs for the area, and

7. A listing flyer

I have never had a listing that did not appraise.

Every listing agent should be sure to include this report as one of their duties. It is the duty of a listing agent to represent their sellers to the best of their abilities, and this simple step – which usually takes about an hour (more for tricky comparable listings) could make a difference in getting the buyer and seller to closing.

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Home Values Remain Strong

Tuesday, February 3rd, 2015

The latest CoreLogic report shows that home values rose 5.0% in December nationwide, compared to a year ago. This figure includes distressed sales. For the entire year of 2014 home prices increased 7.4%, which is down from the 11.1% increase in 2013.

This news is great for the housing market, and shows that the housing market was definitely on a healing path in 2014. Many wonder whether it will continue as we move through 2015, and there are many opposing views.

It is important to caution, as I always do, that to truly understand what is happening in the real estate market you need to study your own specific market, as of course the market will vary depending on area (for example, homes in the mid-west may not have the same trajectory as homes in San Diego, California). Looking at San Diego’s market as we head into February, it looks like the market remains strong and prices continue to either rise slightly or remain steady. Demand is definitely growing, and at least personally it seems listings are selling a lot quicker.

Below is a chart for the median price of homes sold in San Diego County up through January 1, 2015. You can see prices climbing back up after a (typical) seasonal dip during the holiday period.

Here is a chart showing San Diego County inventory since March of 2014. Again, after a typical seasonal dip over the holiday season, we can see inventory rates starting to climb back up as we head into February and toward the Spring season.

There are currently 5,373 active properties on the market today in San Diego County, and 3,634 pending properties. Since January 1, 1,595 properties have closed. During the same period last year (January 1 through February 3) 1,894 properties closed escrow. If you would like more data that is specifically tailored to where you live or would like to live, please contact me and I will be happy to send you detailed reports on your specific area.

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