SGR-for-sale

Over the past 12 months, we’ve seen single family home prices increase by as much as 20% in some parts of the country. This is the most rapid increase since the housing bubble collapse, and largely driven by supply and demand. According to Zillow CEO Spencer Rascoff, nearly 44% of homeowners with a mortgage still owe more than their home is worth, thus even if they would like to sell they are unable. This, combined with fewer foreclosures, has created a scarcity of available homes on the market and helped push up prices.

So with home prices on the rise, if you do have equity in your home and have been considering a move-up, why sell now? Wouldn’t it make more sense to wait another year or so and take advantage of even higher prices?

Not necessarily. While low supply has been a factor in the recent price increase, it has been driven by demand created by historically low interest rates. However, mortgage interest rates are on the rise. Yesterday, in the fifth consecutive week of gains, the rate for a 30 year fixed mortgage rose to 3.91%. That is 18% higher than the lowest rate of 3.31% back in November 2012. According to chief economist for the National Association of Realtors, Laurence Yun, in an interview with Forbes magazine, “the rate will probably go up to 5% by the end of next year.”

The result of higher interest rates is likely to be a decrease in demand, especially in the higher priced areas of the country, such as coastal California, Boston and New York. Rascoff provided the following example in an interview yesterday on CNBC. “Imagine yourself buying a $300,000 home today, and in four years you may want to trade up to a $500,000 home,” he said. “That home is not just that much more expensive—but because mortgage rates are going to be higher—it’s significantly more expensive. So the trade-up market is going to be very troubled in a couple of years.”

So looking down the road a year from now, it is likely that interest rates will increase which will slow the demand, which in turn will put the brakes on home price increases. Thus, if you are considering selling your home, now may be the best time while demand is high and supply is low.

For more information about what this might mean for you and your San Diego County property, please give me a call.

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Home Depot DIY 

 

 

OK. I’m admittedly a bit of an HGTV junkie, and I personally love painting, refinishing furniture, sewing  and gardening. But, have you noticed that for some folks DIY home projects are just about as successful as DIY dentistry or representing yourself in court?

Just because you own the tool, doesn’t mean you should use it.  Let’s start with a chop saw. You want to install crown molding, but somehow figuring the miter cut involves math and angles that were obviously discussed that week you were absent in 7th grade. Walk away from the saw. Do not nail those pieces of molding to your walls and then patch all of the corners where the wood doesn’t meet.

Faux finish is a faux pas.  No matter what the brochure indicates, results are not typical. Dapping paint and layered finishes on your wall with a sea sponge is probably not a good idea unless you actually have a few artistic bones in your body.

Color me wonderful!  Who doesn’t like color? Hosting the entire rainbow in your 3 bedroom house might seem like fun, but when selling, the purple bedroom and red bathroom have to go.

So you don’t want to color within the lines.  Love your sense of expression and freedom, but please don’t pick up a paint brush! Wall paint should be on the walls; ceiling paint on the ceilings; trim paint on the trim; no paint should be on the floor. These little paint groups shouldn’t get together. They really like to have their own place. And oh, one coat is not enough.

New flooring can change the look of your home.  Yep. And I know that the tile in the entry isn’t quite level and the laminate in the family room has a little gap around the edges. Probably not a big deal though.

Love your attempt at curb appeal.  However, the plants are not happy to be lined up like little soldiers in straight rows parallel to your house and sidewalk.  Those annuals are also concerned about your plans for when they pass on…..

Do I sound mean?  Yes! I am!  That’s because I want to sell your home, not make excuses for it!  Do I believe that people can learn to improve their DIY project skills with practice? Absolutely, but please, not while trying to sell your home. When in doubt, call a professional. Stay away from Home Depot. Trust me; it’s cheaper in the long run.

If you think it’s OK to ignore the ketchup that dropped on the carpet, and that black fur growing in the bath tub is normal, do me a favor:   Don’t list your home for sale.  As a Realtor, I’ve seen more than my share of filthy, smelly houses, but yesterday’s showing put a surprising twist on what people consider acceptable. 

Entering the front door of the home I noted several rows of shoes in the foyer.  Normally, this is a sign that the occupants care about keeping their floors clean and don’t want to track dirt from the outside world into their home.  However, as I gingerly stepped onto the carpet, not only did I keep my shoes on, but I was wishing I had worn waders to protect me from whatever life forms were living in the carpet!  What were these homeowners thinking?  The carpet was stained to the point that it was difficult to determine the color and piles of dog and cat hair billowed around my feet at every step.  And they remove their shoes?  Really?

Most sellers of course don’t live in a pig pen, and if your standards of cleanliness are a bit relaxed, that’s your business.  However, most of us become so comfortable in our own environments that we may not be able to see things that will distract a buyer.  When it comes time to sell your home, listen to your Realtor!  Most buyers lack imagination and will not be able to see past dirt or clutter.  Hand prints on the walls and less than clean appliances are seen by the buyer as work they don’t want to do. 

Ready to sell your home?  Ask your Realtor for a candid evaluation of items that need to be cleaned and/or repaired before you worry about the list price.