Laguna Niguel Real Estate Podcast with Wayne Chang

Are you trying to sell your home? If so, make sure buyers don’t see any of these five things in your listing. Although people’s personal tastes in home features can vary vastly, there are certain universal turn-offs that no buyers will want to see in your home. So, if you’ve got a property you’re trying to sell, make sure it doesn’t have any of these five things:  1. Carpeted bathrooms. If any of the homes in your bathroom have carpet, it’s time to get rid of it. Even inexpensive vinyl tiling is a far superior choice when it comes to bathroom flooring, so fixing this unsightly faux pas doesn’t have to break the bank.  2. “Spools.” For those who are unfamiliar, a “spool” is a small backyard water fixture that isn’t quite a spa but isn’t quite a pool, either. Unlike hot tubs, spools, which are too small for swimming in, simply feel out of place. “Fixing unsightly faux pas don’t have to break the bank.” 3. Strange room additions or lofts. Adding additional space to your home is great, but shoe-horning unnecessary rooms or lofts into places without sufficient room can really hurt the overall flow of your floor plan.  4. White-tile countertops. White tile countertops with visible grout-lines were popular in the 80s and 90s, but many of today’s buyers view them as eyesores. Thankfully, replacing countertops with quartz or granite can be a relatively inexpensive fix.  5. Conflicting flooring. Sometimes homes will have mismatched flooring throughout, which can look somewhat sloppy. When buyers see things like this, their first thought (if they still consider putting in an offer) is often how they can get rid of it.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

These are the top three craziest real estate experiences that I’ve had in my career. Over my career in real estate, I’ve seen a lot of unusual things. To show you just what kinds of things can happen in a transaction, today I want to share the top three craziest experiences I’ve had in the industry. Story #1: Where’s the Rest of the House? About eight or nine years ago when I first started my career, I was showing homes in Santa Ana and we saw this really good deal. We thought we should go check it out. When we got to the house and opened the door inside, it looked pretty normal at first. There was a kitchen, some bedrooms, a hallway, etc. But when we walked to the back of the house, we saw that the entire back of the house was missing! It looked like somebody took a sledgehammer and just knocked out the entire back wall. They had a tarp to extend the roof which was supported by two-by-four wood posts in the backyard. There were tons and tons of chicken feathers around. We just turned around and left. Story #2: ‘Tasteful’ Art Pieces About five years ago, I was showing a house in Laguna Niguel. The house looked great inside; the kitchen was beautiful, the wall colors were fantastic, the bathrooms were upgraded, and the flooring was great. We eventually went upstairs to the master bedroom, where there were three very large black-and-white boudoir photos of the wife of the house—fully naked. Mind you, my buyers had two young children who were running around the house, and at one point, they came into the room. We told them to stay out in the hall, and my buyers were freaked out. At the end of the showing, the listing agent called me and asked how the showing went. I told him it went great, but I also suggested that the seller take down those boudoir photos for showings. The agent told me that they had talked to the sellers about it, but they had insisted they were “very tasteful art pieces,” and decided to leave them up. The listing photos of the house that were put online, including the ones featuring the ‘tasteful art pieces’ are now going to be online forever. “When we walked to the back of the house, we saw that the entire back of the house was missing!” Story #3: A Halloween Story About three years ago, a client called me to help them rent out their property. It was the first time I’d ever talked to the client, and the current tenant was moving out of the house at the time.  I met the landlord at the house with the tenant to do a final walk-through, and as we were leaving, the tenant mentioned that they were leaving because the house was haunted. The landlord said that the tenants had been causing trouble and that the ‘haunting’ was just an excuse. The house looked to be in good condition! Two weeks later, we finally found a tenant to move in. A few months after that, those tenants didn’t want to lease the house anymore, telling the landlord they thought the house was haunted. They’d been hearing footsteps upstairs, furniture had been moving around by itself, and their daughter said she’d been seeing someone upstairs walking around when no one else was home. I thought it must have been mice or rats. The tenants ended up moving out anyway. I went to the house after they left but never saw anything. The landlord hired another tenant to try to rent out the house, and the same thing happened again! That agent actually quit that listing because of their supernatural experiences. I hope these stories help get you into the Halloween spirit! As always, if you ever have any questions about real estate, please reach out to me. I’d be happy to help you.

Here are a few significant ways millennials are affecting our real estate market. As more and more millennials enter the prime home buying age range, here are a few trends from this demographic that are impacting the market in a big way.  First, millennials tend to be independent when starting their home search. They prefer to look at and research homes online before contacting an agent or seeing them in person. This means if you’re putting your home on the market, its listing profile needs to be on all the major real estate websites (Realtor.com, Trulia, Zillow, etc.) and you need to provide as much information about it as possible. Second, they’re very cost-conscious. Many of them are buying homes for the first time and using their savings (with perhaps help from their parents) to do so. This means you need to be careful not to overprice your home. It needs to be attractive to first-time homebuyers, and as I’ve already said, these buyers are very independent when it comes to researching a home’s history. They may already know about your home’s price history, what you bought it for, what the neighborhood comps are, etc.  “Millennial buyers may not be willing to pay for the upgrades you added to your home a decade or more ago.” Many millennials also follow what I call “HGTV culture.” In other words, they grew up watching HGTV, and for them, that’s their only exposure to real estate. HGTV shows like “Flip or Flop” or “House Hunters” tend to make it seem like it’s normal to buy a house in 100% turnkey condition. Either that, or it’s a “gut job.” As a result, that’s what they sometimes expect.  I’ve shown plenty of houses to millennials. About 10 to 15 years ago, the hottest home design trends included items like dark-wood floors, dark cabinets, and granite countertops. Homes with these features aren’t necessarily “updated” anymore, but they’re still turnkey. More often than not, though, millennials will enter a home with these features and consider it a gut job.  So remember—millennial buyers may not be willing to pay for the upgrades you added to your home a decade or more ago. They might expect everything to be turnkey or want to negotiate the price to redo the whole house. Don’t be offended if they want to make some changes.  At the end of the day, you need to be aware of the type of buyers coming through your home—especially if it’s in the lower price ranges here in Orange County. If your home is under $900,000 or $800,000, it might be attractive to millennials.  As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you. 

Did you know that filing too many insurance claims on your home could have disastrous consequences for your sale? Today I’d like to share a story that encapsulates this point.  Recently, I was representing a seller whose home was situated in a really nice neighborhood. During escrow, it came to our attention that the buyer’s efforts to obtain an insurance policy on the home were proving unsuccessful. Why? As it turns out, the seller had filed too many claims on the property over a two- to three-year period. Unfortunately, a lot of homeowners don’t think about the implications that filing claim after claim will have on their future sale. Consider this alternative: If you’re planning to sell within the next five years, you might want to avoid filing claims for issues that could feasibly be covered out of pocket or are within your deductible. “My best advice is to do a cost-benefit analysis before making a claim on your property, especially if you’re selling anytime soon.” In this particular case, about a year and a half ago, the homeowner discovered a pinhole leak originating from the master bathroom that was dripping down from the dining room ceiling—a common issue for Orange County residents. Not long after filing an insurance claim to clear up the issue, they filed yet another water-related claim: A leaky sprinkler on the lawn had caused water to seep into the home and did subsequent damage to the home’s drywall and flooring.  As a homeowner, it’s important to keep in mind that some insurance companies are sensitive when it comes to water damage claims, so if you file two or three claims in a relatively short amount of time, your future buyer will be denied coverage in all likelihood.  My best advice is to do a cost-benefit analysis before making a claim on your property, especially if you’re selling anytime soon. You might also call your insurance carrier to see if the issue in question merits a claim. And don’t worry—a simple inquiry over the phone won’t result in you receiving a case number or anything.  If you have any questions related to real estate or if there’s a topic you’d like me to cover in the future, please don’t hesitate to let me know. I look forward to hearing from you!

What’s the difference between a short sale, foreclosure, and an auction? Let’s start with defining the short sale. In this case, the owner of the home is still on the title, meaning they still own the property and sign the purchase contract and all other legal documents involved with the home sale. However, the bank has to approve the price and conditions of the sale because the bank is being sold short of the mortgage balance they owe.  To clarify, this doesn’t mean the process is any shorter; it just means the sale price of the home is short of the amount of money the homeowner owes on the property. You can purchase a short-sale house with cash or financing, and your agent can write a regular purchase contract for it with standard legal forms.  “There’s no due diligence process during auction purchases.” With a foreclosure, the bank owns the property. The owner is out of the picture, and the bank signs everything, so they’re the ones you negotiate with if you buy a foreclosure home. Your agent can help facilitate the process, but many banks have their own legal forms and contracts, so when that happens, it’s a good idea to have a real estate attorney review them since they can be different than the regular contracts agents are trained on. Foreclosure homes are usually purchased as is, and as with short-sale homes, you can buy them with cash or financing. When it comes to auctions, the bank owns the property (or sometimes the county if the owner defaulted on their taxes). Auctions are done on the steps of the county courthouse, and agents aren’t involved. Furthermore, they can only be bought with cash, which means buyers of these homes are typically seasoned investors who bring cashier’s checks with them.  There’s no due diligence process during auction purchases, and you can’t back out of the deal after you sign the purchase contract right then and there on the courthouse steps. All of the title encumbrances come with the property, too, which means you’re in charge of clearing them. That’s why it’s important to do your due diligence beforehand when buying auction homes.  If you have any more questions about short sales, foreclosures, or auctions, or you have any other real estate needs I can handle, don’t hesitate to reach out to me. I’d love to help you.

Around this time of year, it’s common for homeowners to receive brochures and mailers from local agents telling them why the fall and winter season is great for selling. Is that true, though? I have some detailed analysis to reveal to you in the video. The first one, starting at the 1:00 mark, shows the active listing inventory for each month dating all the way back to 2016. As you can see, summer time is when inventory peaks, and then it drops toward the end of the year. Some agents claim this lack of inventory means you’ll face less competition from other sellers and get a better price, but that’s not true, and if you look at the second graph at 1:47, you’ll see why. This one shows the number of homes that go into escrow during the same time period, and springtime is when most of them do. Specifically, 50% of all listings go into escrow during spring, followed by 40% during summer, and 30% to 35% during winter. “If you sell during spring, you’ll get a much higher percentage of your original list price than if you sell during the fall and winter.” In the last graph at 2:35, you’ll see the average list-to-sale price ratio for these homes. For every single year dating all the way back to 2016, the highest ratio occurs in spring and then drops to its low point near the end of the year. In other words, if you sell during spring, you’ll get a much higher percentage of your original list price than if you sell during the fall and winter. So should you sell during the colder months? That depends on what your goals are. If you have to undergo a job relocation during fall or winter or have to move due to some kind of life change you can’t avoid, then you have no choice in the matter. If you have to buy and sell at the same time, it doesn’t really matter either because you’re making a lateral move—if the market is high, you have to buy and sell high. If you can afford to wait until February or March of the following year, though, you’ll typically get a better price. If you have any questions about this topic or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you. 

In today’s digital age, scams have become increasingly common. Today, I’d like to shed light on one type of scam, in particular, that has been plaguing our real estate market: rental scams.  Anyone can fall victim to these scams if they aren’t careful. In fact, I once received a call from a would-be tenant who was interested in a property of mine that they had seen listed online for $1,500. The catch is that I had actually listed this property at $2,000. When I asked this person where they’d seen the listing, they told me they had found it on Craigslist. Unfortunately, I had to inform this person they had been the target of a scam. Scammers will often take legitimate listings, that may or may not be currently available, and place fake advertisements for them on websites like Craigslist—usually at a vastly diminished price. Then, once they trick people into paying a deposit, they take the money and vanish.  To avoid these kinds of scams, renters are far better off looking to reputable websites like Zillow, Rent.com, HotPads, and Trulia, which actually pull from the MLS.  “Anyone can fall victim to these scams if they aren’t careful.” Another good way to identify scams is if you’ve been asked to write a deposit check out to someone other than the owner.  But what about landlords? How can those who own rental properties avoid scams? For one thing, make sure all rental applications are properly filled out and come along with all the necessary paperwork, including a driver’s license, bank statement copies, and the applicant’s credit score and credit report, to name a few. If the applicant has chosen to communicate with you through their own agent, this agent will typically be the one to gather these documents.  However, things can go awry even when everything appears to be in order. I was once about to take on a tenant whose agent had given me all the necessary documentation, but upon attempting to run their deposit check, it bounced. I then decided to run their credit on my own and came to discover two things: First, their credit was horrible, and second, the tenant was actually a professional scammer.  This is why it’s always important for landlords to do some due diligence of their own. Contacting a tenant’s employer, running their credit, and verifying the validity of all provided documents are all good ways to protect yourself against fraud. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What home design trends are currently hot in our 2019 real estate market? Find out today. Design trends change every year, and it’s no different in real estate. But which home designs are en vogue this year? Which ones aren’t? Today I’ll walk you through what’s currently hot in the market—and what’s not. First, let’s talk about the design trends from prior decades that have since fallen out of style: From the 70s: Popcorn ceilings, sunken living room conversation pits From the 80s: Wet bars (just turn that bar area into a workstation or countertop) From the 90s: The unused living room Now, what’s currently popular in our market? I’ve recently been to a lot of new model homes from different builders, and it seems as though all these builders have gone to the same design shows. The homes may be different in terms of their floor plans, but the style and architecture are very similar.  “Believe it or not, contemporary wallpaper styles are in this year.” Here are the hottest home design trends I’ve seen: Sliding pocket doors that lead from the house into the backyard Large kitchen islands that serve as a focal point for the room Floating staircases Smooth, clean lines Wood tile flooring Gray and white colors Modern/contemporary wallpapers (believe it or not) If you’re thinking of remodeling your own home and would like to check out some of these model homes to see the popular design trends for yourself, don’t hesitate to reach out to me. I’ll be happy to help you out. 

What is the most accurate method for arriving at your home’s true market value?  Before I answer that question, let’s first discuss three common sources homeowners rely on that aren’t always founded on accuracy:  1. The appraisal. The problem here is that appraisers are often limited to market data that’s anywhere from three months to a year old. Data ages fast—especially during a shift where the market is rapidly trending upward or downward. So it goes without saying that old data doesn’t do a good job of gauging your home’s value today.  2. Other active listings. Many homeowners see their neighbor’s listing and wrongly assume they should price theirs in a similar fashion. This can be a problematic approach if that neighbor’s property has sat on the market for an extended period of time.  3. The Zestimate. This is Zillow’s popular home valuation tool. It’s so popular, in fact, that almost every seller I meet is quick to cite their Zestimate when we’re talking about pricing. However, not only has Zillow never set foot on your property, but their national median error rate is around 9%, which could mean your Zestimate is tens of thousands of dollars above or below your home’s true value. For higher-priced homes in Southern California, research has found Zillow’s error rate to be even more inaccurate.  “The most accurate way of determining your home’s value is instead through the sales comparison approach.” The most accurate way of determining your home’s value is instead through the sales comparison approach. We as real estate professionals apply this method by looking at recently sold homes (ideally in the last 30 days), homes in escrow, and possibly a few active listings that bear a similarity to your home.  By taking a careful look at homes that are similar to yours in condition, size, level of upgrades, and so on, we’re able to come up with a much more accurate assessment. My best advice is to work with a highly active, experienced agent who sees around 20 to 30 homes in a given week because they’ll be in a better position to compare your home against similar properties.  If you’re looking to sell soon and you’d like to know your home’s precise market value or if there are any topics you’d like to see me cover in a future video, please reach out to me. I hope to hear from you soon! 

We’re near the end of June and I wanted to bring you a quick update on the real estate market and how it’s doing. We’re going to take a look at the latest numbers and compare them to what we saw last year. Our inventory is a lot higher than we had last year. We’re currently at about 7,500 homes on the market in Orange County, which is up from the 5,500 we saw at this time last year. That’s 36% more homes on the market competing against each other and the most inventory we’ve seen in the past six or seven years. Even with the increased inventory, homes are still selling quickly if they’re priced well and show well. If it’s not priced well or not in good condition, however, it will probably sit on the market for quite a while.  As for pending sales, there are about 2,700 right now. That number remains flat from 2018, but the ratio of homes in escrow vs. homes on the market is down from 49% last year to 36% this year. That’s a significant drop, and it means that you need to be sure you’re priced right and in good condition before you list your home for sale. “This is a great time for buyers to be in the market.” We aren’t seeing homes gain half a dozen offers in their first weekend like we have over the last few years, but we are seeing homes sell in just a few weeks with one or two offers.  If you’re a buyer, this is a great time to be in the market because interest rates are super low and inventory is as high as it has been in six or seven years, giving you plenty more options. If you have any other questions for me in the meantime about our market or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Today we’re going to bust three common myths about selling your house. Here are the truths behind them: 1. Broker previews are very effective. Besides public open houses, there are broker caravans where agents can go preview homes. A lot of homeowners think this is a great way to boost their home’s chances of selling quickly and for top dollar, but it’s really not. When you have a broker preview, the most effective agents are already out there working, not at the broker preview. These previews are usually for newer agents or agents who are not doing a lot of business. We want a buyer, not an agent. I might get some flack from other agents for saying this, but in my experience, broker previews are not effective and rarely bring qualified buyers to the table. “Print ads are merely a vehicle for an agent to get their name out there.” 2. Open houses are not effective. A lot of sellers are skeptical about holding open houses because they think there will be too much traffic and too many looky-loo buyers. To an extent, I agree. If an open house is done traditionally, it’s not effective. Most agents show up on the day of, put up a few signs, and hang out at the house. Whoever shows up shows up and there typically isn’t a ton of traffic. However, if you do open houses like we do, it can be effective. We advertise them three days in advance, shoot out an email to all the local agents in the area, canvas the neighborhood by door knocking, and put up 35 to 50 signs on the day of the open house to cover all the streets leading to the home. When we do that, we get three times as many buyers at open houses. A much higher percentage of these people came specifically to see this house. A lot of millennial buyers like to be able to come to these open houses by themselves, too. 3. Newspaper and magazine ads work great. I don’t know of anybody who has ever bought a house because they saw a print ad in a magazine or newspaper. A lot of buyers are under the impression that this strategy works, but it really doesn’t. I would rather focus my time on things that are much more effective, such as internet lead generation, direct calling buyers, letting other top agents know about the house, and more. Those strategies are way more effective than print advertising. Don’t waste your time and money on these avenues. I hope this was helpful to you and these myths are officially busted in your mind. If you have any other questions for me or you’re thinking about buying or selling a home in the near future, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

A lot of people have asked me in the past about online lenders and whether or not they should use one. Today I’m going to talk about the pros, the cons, and some of the finer points of working with an online lender. The big advantage of working with an online lender is that the interest rates are generally a little bit lower than what your local bank or lender is offering. That’s the main pro. When you do use an online lender, there are also a few risks involved. First, they usually don’t process your loan in the same state that you are buying a home in. Because they are in a different state, sometimes they aren’t familiar with common local terms and escrow timelines. This can drag out your loan approval and closing date. “You are much more likely to run into delayed responses and missed deadlines with an online lender.” Another thing is that online lenders tend not to follow the contract and contingency dates very closely. They likely aren’t familiar with escrow timelines and many times don’t meet the appraisal, loan contingency, and appraisal deadlines. This puts your deposit at risk. Finally, you are much more likely to run into delayed responses with online lenders. A local lender is usually reachable 24/7 just like me, but a lot of out-of-state lenders only offer you a generic office line that you may not be able to get through consistently. Not being able to communicate effectively is huge. If you’re refinancing, using an online lender is totally fine because you don’t have to deal with tight timelines as you do in a purchase. What I recommend is that you use a local lender to help you buy your home, then refinance to a lower rate with an online lender after you have the home and timelines aren’t important. If you have any other questions for me about online lenders or anything else related to the mortgage world, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

When it comes time to buy a home, it’s important that you keep your future in mind. Things like the amount of space you’ll have, the upkeep the property will require, and even the potential resale value should all be taken into consideration. With this in mind, there are three kinds of properties you should steer clear of during your home search:  1. Homes near a busy street. Not only can living in these properties be loud, but it can also be dangerous for those with pets or small children. Even if this doesn’t bother you, it very well could be an issue for future buyers when you decide to move on.  “Buying a home that is noticeably larger or more upgraded than the others in its area may make it difficult for you to sell down the line.” 2. Properties with high HOA dues. Homeownership is expensive enough as it is without pricey homeowners association dues. Unless these dues go toward something that is truly worth the value, you’re best off leaving such properties off the menu during your home search.  3. Super-expensive properties. Buying a home that is noticeably larger or more upgraded than the others in its area may make it difficult for you to sell down the line. If you’re looking for a higher-end home, you need to look in high-end neighborhoods.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

It happens all the time: A property hits the market and instantly gains the attention of five, 10, or 15 competing buyers. It can be very frustrating to vie against other offers in your search for the right home, but now you don’t have to.  There are many “secret” properties out there right now just waiting for someone like you to come along and make an offer, and there are three ways you can find them: 1. Have your agent do some leg work. A quality agent will be more than happy to make calls and knock on doors in a neighborhood you’re interested in to find out if any of the homeowners there have been thinking of selling.  “Any hardworking, experienced agent should have a vast network of local connections that they can leverage to find homes not listed on the open market.” 2. Research expired or canceled listings. Though these properties have been taken off the market, that doesn’t necessarily mean the owner isn’t willing to sell. Taking the time to find out could be well worth it.  3. Ask your agent to use their network. Any hardworking, experienced agent should have a vast network of local connections that they can leverage to find homes not listed on the open market. By asking your agent to seek out these lesser-known opportunities, you’re giving yourself the chance to buy without the hassle of competition.  If you have any other questions, would like more information, or are curious how my team and I could help you find off-market properties, feel free to give us a call or send us an email. We look forward to hearing from you soon.

There are three things you need to consider when investing in real estate: 1. Get your finances together. Before you do anything, you want to figure out what your finances actually are. Single-family homes, condos, duplexes, triplexes, and fourplexes can be purchased through regular residential loans. You’ll need at least 20% down. Properties that have more than four units will typically need 35% to 40% down, since they’re considered commercial loans. You’ll be qualified based on your individual criteria as well as the building itself—its rent, expenses, etc. “Before you do anything, you want to figure out what your finances actually are.” 2. Know the criteria of what you’re looking for. Be very specific in your search otherwise you’ll spend too much time looking at everything and go into analysis paralysis.  Rather than say “I’m looking for a deal”, you want to be able to say “I’m looking for a 3 bedroom single family home with a two car garage that rents out for $3,000 per month.” This way when you find a home that meets your criteria, you’re ready to pull the trigger immediately. 3. There are two types of investing. You can buy a property, fix it up, and sell it. Or you can buy a property and make money long-term from renting it out. If you’re going to be a landlord, be ready to acquire an understanding of landlord-tenant law. A lot of first-time landlords are unfamiliar with the many laws involved, so it’s important to know what you’ll be dealing with. If you don’t have time to learn all the laws, hire a property management company to deal with it for you. If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.

Spring has sprung, and that means one thing: It’s time for spring cleaning.  Thankfully, a certain organization guru has appeared on the pop culture scene to make this often-daunting process a little easier. I’m talking, of course, about Marie Kondo. Using her incredible methods, decluttering your home will become much easier. You might even say it will “spark joy.” If you aren’t familiar with her methods, don’t worry—we’re going to share them with you today, but with a twist.  “Buyers want to imagine your property as their future home—not your current one.” While Marie Kondo’s method focuses on what makes you happy, we’re going to talk today about decluttering in a way that will make potential buyers happy. There are three key steps you’ll need to follow: 1. Remove clutter from pathways. This will ensure that buyers can easily navigate your home during showings. If you’ve got large pieces of furniture that would get in a buyer’s way, it’s best to remove them. The goal is to show off your room’s space, not your belongings.  2. Clear off all countertops. Cluttered countertops make any room look smaller and messier. Especially in kitchens and bathrooms, remove everything you can from counters to ensure a better first impression.  3. Declutter and depersonalize the walls. Your family photos may be lovely, but buyers want to imagine your property as their future home—not your current one. Excess clutter on the walls (especially when it’s of a personal nature) will make rooms look cramped. It’s best to treat your home as a clean slate. A single piece of large, contemporary artwork will always look better to buyers than a dozen family snapshots.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

The spring and early summer market are most conducive to sellers’ ability to earn top dollar on their home—there’s no doubt about it. Knowing that, let’s take a look at some indicators of where we’re trending.  Starting at 0:45 in the video, you’ll see a graph that illustrates Orange County’s year-over-year inventory from 2016 to now. There is one marker that stands out, in particular: In contrast to previous years, 2018 saw inventory levels go up and up and never experience an end-of-year drop-off. This trend carried over into 2019 and inventory has gone from 4,000 listings to 6,000 listings year over year as a result.  “The spring and early summer market are most conducive to sellers’ ability to earn top dollar on their home—there’s no doubt about it.” As we move further into spring, this means that sellers will face stiff competition. If you’re planning to sell your home this season, you’d be well-advised to keep your home in tip-top shape and, most importantly, to make sure it’s priced correctly. The current market will not be as kind to those who overprice as it was last spring when buyers could list at whatever price they desired and multiple-offer situations pervaded the marketplace.  At 2:30 in the video, you’ll see yet another graph that contains projections and past trends for the expected time on market year over year. Along with inventory, the expected market time continued to increase in 2018 and eventually surpassed the 120-day mark. On that count, we picked up where we left off to start the year, but we’ve seen a surprisingly steep drop in the number of days homes are spending on the market in recent weeks.  Although the number of active listings on the market remains high, this gives sellers a reason to be optimistic again; the same buyers that stayed planted on the sidelines at the end of last year are jumping back into the market again. I’m seeing this in my own business as well. In the last two weeks, I’ve listed four or five homes—all of which went into escrow in the first weekend at or near full price.  It’s clear that we’re moving into a healthy spring market where both buyers and sellers have a lot to gain.     If you have any suggestions for future video topics or if you need help with any and all of your real estate needs, please let me know. I’d love to hear from you!

Here is a quick list of things you should definitely do if you want to sell your home for a bad price and take forever doing it: 1. Neglect its presentation. If you want your home to sell slowly and repel plenty of buyers in the process, make sure to keep your home messy. Leave dishes in the sink, have laundry scattered everywhere, leave your kids’ toys out, cook something with a strong smell that permeates the entire house, and have a noisy pet in the home. Most buyers, when they see these things, will spend about 30 seconds in the home before turning around and leaving. “If you want your home to sell slowly and repel plenty of buyers in the process, make sure to keep your home messy.” 2. Show the buyers EVERYTHING. If you really want to turn a buyer off, make sure to greet them at the door and spend 30 to 40 minutes walking them through the entire house, showing them every single feature so they know how it all works. Pressuring your buyers by overloading them with information and being generally invasive of their time and space is as good a way as any to scare them away. Allowing buyers to talk freely amongst themselves and to explore the house at their leisure might encourage them to stay. 3. Restrict your showings. By being restrictive about the times that people are allowed to come and view your home, you’re sure to shrink your pool of buyers. Not everyone has the same schedule. Maybe they’ll come back later—though 90% of the time, they don’t. These tips are a good way for you to ensure that your home doesn’t sell quickly, or for the price you want. If you do want to get a good price for your home in a short amount of time, however, reach out to me. I can show you the correct way to show and price a home so that yours sells for more money, faster.

If you’ve ever submitted an offer on a home you loved only to be beaten out by someone offering to pay in cash, you know what a disappointing experience that can be. But it doesn’t have to be that way.  There are five things you can do as a buyer to make your financed offer equal to (or even better than) any cash offer out there: 1. Get fully pre-approved. The reason many financed buyers lose against buyers offering cash is that sellers are trying to minimize potential risk. Unless a financed buyer is fully pre-approved, the seller may worry that they won’t be able to afford the home when all is said and done. Getting approved by a lender will put the seller’s mind at ease and will put you on equal footing with any competing cash offers.  2. Remove the appraisal contingency. If you submit a down payment that’s greater than 20%, there’s no real reason to retain the appraisal contingency. Better still, after removing this contingency, your financed offer becomes virtually the same as an offer made in cash.  “Getting approved by a lender will put the seller’s mind at ease and will put you on equal footing with any competing cash offers.” 3. Reduce the time spent in escrow. Cash buyers can typically close within 10 to 15 days. If you can close within this same time frame, the seller will be much more likely to choose your offer.  4. Reduce your contingency time frames. In California, you’ve got 17 days to review inspection results, go over disclosure statements, etc. Reducing this period down to 10 days or less will make you even more likely to strike a deal with the seller.  5. Offer a leaseback period to the seller free of charge. Sometimes, sellers will ask to rent their property back from the buyer after closing while they finish up purchasing their next home. If you can offer to let the seller stay without asking for any payment, however, this is sure to strengthen your chances.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

For today’s message, I’d like to highlight three very important (but often overlooked) things buyers should consider when buying. Before that, though, I’d like to make you aware of a special Valentine’s Day gift our team is offering. If you or someone you know has recently gotten engaged or married, our team would like to offer you $1,000 toward your closing costs when you purchase a home with us during the month of February.  “It’s essential to know what you’re getting yourself into before making the decision to buy.” Now that we’ve covered that special announcement, let’s move on to the three things buyers should think about before buying:  1. The nearby neighbors. The people living in close proximity to your home can make or break the experience of living there.  2. The neighborhood demographic. A mismatched neighborhood culture can make for an uncomfortable homeownership experience. Some buyers prefer a neighborhood with plenty of families, while others would prefer to live in an area with no children at all. It’s best to scope out a neighborhood later during the afternoon to get a sense of its demographics. 3. The neighborhood’s homeowners association. If the neighborhood is within a homeowners association (or HOA), you need to be aware of what rules, regulations, and fees would come along with living there. Some HOAs will issue a citation for having a dirty garage window, while others will do virtually nothing to keep a neighborhood in good shape. It’s essential to know what you’re getting yourself into before making the decision to buy.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Whether you’re a buyer or a seller, everyone wants a home sale to go through. However, there are common pitfalls that can ruin an escrow and send all parties involved back to square one. Today we’ll be looking at three areas where things can go wrong: 1. The loan. Most buyers begin the formal loan application process once their offer is accepted. The lender doesn’t have a chance to underwrite the loan before escrow is opened—the process is often started in the middle of escrow and takes 17 to 21 days to complete. To avoid this, have your lender begin the process before you make an offer. This way, your loan is already approved. However, be wary of some lenders—major banks can offer low interest rates but give very poor service. “Be wary of some lenders—major banks can offer low interest rates but give very poor service.” 2. The appraisal. If you get an offer for more than what your home is worth, there’s a chance it won’t be appraised at the offered price. Let’s say you have a buyer offering $510,000, but the home is appraised at $500,000. Traditionally, the buyer can cancel escrow and walk away. To avoid this, sellers can put in a term so that appraisal differences are ignored when a buyer agrees to make a purchase. If the buyer is short on their down payment, they’ll also agree to make up the difference. 3. Seller disclosures. As buyers, we may go into escrow and find the seller discloses some big issues—issues that would have prevented us from making an offer in the first place. For example, multiple water leaks would mean costly fixes for the buyer. To avoid this, ask for disclosures up front if you are wary of a home. This way, you know everything you need to know before going into escrow. The only new things you’ll find will be during the home inspection. If you have any questions, need more information, or have any video topics you’d like me to cover, feel free to reach out to me. I look forward to hearing from you soon.

Termites, asbestos, mold: What do these three things have in common? If a buyer hears any of these words, they usually freak out! Fortunately for buyers and sellers alike, it turns out these issues are actually not as big a deal as you’d think. Today we’ll be discussing why buyers don’t need to flip their lid about any of these issues during escrow. Termites: Before I got into real estate, I thought termites came in swarms and devoured homes almost instantaneously (thanks to cartoons). In reality, this isn’t the case—they eat your house very slowly. And because California is the perfect environment for these wood-eating fellows, pretty much every home more than 10 years old has termites.  If your home is 10 or more years old and your termite inspector isn’t finding any termites, you probably need a new termite inspector. Out of over 500 transactions I’ve completed in the last eight or nine years, only two homes were termite free. Either way, termites are a treatable problem—common techniques include localized poison injections or tenting the house. “It turns out these issues are actually not that big of a deal.” Asbestos: Contrary to popular belief, asbestos is legal to use today. The government created some restrictions in the 1970s to slow down the amount of asbestos being used, but it still exists and is still used. However, most new construction does not use asbestos. Homes built during or prior to the 1970s usually have asbestos in popcorn ceilings, insulation, and HVAC ducts. Fortunately, as long as the asbestos is not compromised, its usage in homes is generally safe. The only way to know if your property has asbestos is to have it tested. Mold: People hate to think about mold, but guess what? It’s everywhere! You’re probably breathing in thousands of mold spores every single day—99% of mold is not dangerous. When you test the inside versus the outside for mold counts, the number is most likely the same. The only way to know the specific kind of mold in your home is to have a professional test it. What about mold coloration? The color doesn’t signify that it’s bad—black, brown, pink, and green are all different colors mold can have during its lifetime. The black mold that people often worry about is not actually dangerous until it dries up and begins releasing its spores so just make sure you clean it up before then. When it comes to other molds, it depends on the person; different types have different effects on each individual just like how some people are allergic to certain things while others are not. If you have any other questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.

For many people, their home is the most valuable asset they will own in their lifetime. With that being the case, it’s obviously important for this asset to be protected. A lot of homeowners will simply have their home in their name and their name alone, but this isn’t a particularly secure option. No one wants to consider the worst-case scenario, but homeowners must think about what will happen to their property if they become incapacitated or pass away. If you don’t put a plan in place for what will happen to your home if either of these events were to transpire, your property will become tied up in probate court. “A trust gives you full control of your estate.” The best way to avoid this is to create a trust. Homeowners who don’t have a trust have inadvertently given the state permission to do with their property as they please should something happen to them. A trust can dictate your wishes regarding a number of issues, including what you would like to happen to your property, how you would like custody of your children to be handled, and more. To get started in setting up a trust, the first step you must take is to contact an estate planning attorney. Once you have partnered with this professional to develop your trust, you will be able to rest easy knowing that the court would follow your wishes if something were to happen to you. A trust gives you full control of your estate. If you would like us to connect you with a local estate planning attorney so that you can set up a free consultation, we would be happy to do so. And, as always, if you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Before I begin today’s topic, I wanted to announce that I’m currently holding five $100 Visa gift cards, which I give out every year during Christmas to help those who are in need. If you know anyone going through difficult times who could benefit from one of these cards, reach out to me with their name and mailing address, and I will anonymously send them a gift card that reads something like, “Merry Christmas! Somebody you know thought about you this year. Here’s a $100 Visa gift card—hope you can spend it!” The first five people who request a card will get one, and once they’re gone, they’re gone, so act fast! So, do solar panels add value to a house? Well, normally, solar panels on a single-family house cost somewhere between $30,000 and $40,000 if you buy them outright. To be very honest with you, most buyers won’t pay that full amount when you sell your house. They see it as more of a nice feature or perk, but they may not be willing to fork over the entire amount that you paid for them. Be sure that when you install solar panels on your home that it’s really for you to save on utility costs. “Buyers see solar panels as more of a nice feature or perk, but they may not be willing to fork over the entire amount that you paid for them.” There are other ways you can structure your solar deal, however: 1. Leased solar panels. You can lease solar panels from solar companies. Usually, the lease lasts somewhere around 20 years, toward which you’ll make a payment each month. Some buyers dislike this option since they won’t likely want to be obligated to make a monthly lease payment. 2. Power purchase agreement. If you’re using electricity, all you’ll do is let the company install solar panels on your roof, and instead of buying electricity from the utility company, you just buy it from the solar company at a lesser rate; this can often amount to 50% savings right off the bat. This arrangement also comes at zero money down, though they do usually have a long-term agreement of 20 to 30 years. At the end of that lease period, they’ll sometimes just give you the panels, or else they’ll take them off and install new ones. This is definitely the better arrangement of the two. One pitfall to watch for when you put solar panels on your roof is an escalating rate clause. A lot of times, these solar companies will give you a really good rate at the beginning of your lease (for the first few years), after which, they’ll increase that rate every single year. You might save a lot in the beginning, but you may not be by the end of the agreement. Buyers will also likely heavily scrutinize whatever contract you’ve signed, so do your best to negotiate a fixed payment for the length of the contract. In short, solar panels are great if you purchase them for your own purposes. They’ll add a little bit of value to your home, but not likely full value if they’re purchased outright. They’re a nice feature that will help your home sell quickly as long as the buyer doesn’t have to take on additional risks. If you have any questions about solar panels, real estate in general, or the Visa gift cards mentioned at the beginning of this article, please don’t hesitate to reach out to me. I’d love to speak with you.

Today we’ll be taking a quick look at how our real estate market is looking this November. It’s been an interesting season so far. Our average days on market has been climbing, putting us at 117 days. When we’re at 60 days on market, it means we’re in a seller’s market. Last year during this time we saw an average of 54 days on market—it was definitely a good time to sell. A 90-day average gives us a balanced market where buyers and sellers have equal power. A buyer’s market begins at 120 days, and we’re pretty close with our current average of 117. You want to be very careful about pricing if you’re a seller, as buyers now have the luxury of being more aggressive with negotiations. “Any properties that are below perfect condition or priced incorrectly are going to be left on the market for a long time.” Our inventory is 47% higher than this time last year—a significant increase. Demand is down 30%, meaning there is plenty for picky buyers to choose from. They’re looking for turnkey homes, and any properties that are below perfect condition or priced incorrectly are going to be left on the market for a long time. Fortunately, it seems the inventory level has reached a plateau. We usually see this in August and September, but it came a little later this year. For sellers, the levels will hopefully begin to decrease soon. If you have any video topics you’d like me to cover in the future, contact me. Also, feel free to reach out if you have any real estate needs, have any questions, or would simply like some more information. I’d be happy to help you. Have a happy Thanksgiving!

When buyers are looking at properties, they tend to focus on two main areas in the house: 1. Kitchen. During the holidays and other social events held in the home, everyone gathers in the kitchen. So if you’re thinking about upgrading your home to add value, focus on the kitchen. Make it more inviting and appealing to buyers. Modern-style kitchens are very popular in the market at the moment. Buyers like to see lighter shades for the cabinets and countertops; white-on-white is definitely en vogue. It’s also okay to add in a few traditional elements as well, but stay away from bullnose, rounded countertops since that has fallen out of fashion. “If you have carpet in your bathroom, such as around the toilet or tub area, please get that out—it drives buyers (and me) crazy.” 2. Master bathroom. Buyers today like to see upgraded master showers, free-standing tubs, and nice tile flooring. However, if you have carpet in your bathroom, such as around the toilet or tub area, please get that out—it drives buyers (and me) crazy. Like the kitchen, buyers also prefer white-on-white for bathroom cabinets and countertops. Another hot item for bathrooms is a Euro clear-glass shower stall, and free-standing tubs are usually preferred to jet-tubs. If you’re going to spend money on upgrades to add value to your home and attract buyers, these are the two rooms you’ll want to focus on. For any questions you have about value-adding upgrades or selling homes in general, please reach out to us. I look forward to hearing from you.

Expensive home upgrades aren’t the best way to prepare your home for sale. Here’s what I recommend. A lot of my clients ask me for advice on how to get their home ready for sale before listing it on the market. Today I’m going to discuss the best way to maximize your home’s value without spending a ton of money. When it comes to making upgrades and improvements on your home, I don’t typically recommend them. If you spend a dollar on improvements, you will only get 50 cents back if you’re lucky. If you’re thinking about remodeling the kitchen or bathrooms, it’s typically not a good idea unless your home is in really bad shape. If something is damaged beyond repair, whether it’s your flooring or your kitchen cabinets, you should fix it. Otherwise, don’t bother. A buyer would rather have a reduction on price than have you charge them more after doing the upgrades. “Paint won’t cost much, but it will make a huge difference to homebuyers.” Another key is decluttering your home. It really helps open up the space and make the buyer feel that the home has more room. If you have extra bulky furniture or cluttered countertops in the kitchen or bathrooms, take that out. Each of the rooms in your home should function as intended. Also, if you have scuff marks on your walls, get that taken care of. A fresh layer of paint won’t cost much, but it will make a huge difference for buyers. Any other minor aesthetic issues should be taken care of as well. Make sure your yard is looking good, too. Don’t make the mistake of making huge, expensive upgrades just to increase the price of your home. We had a recent client who spent $30,000 on marble floors, only to see them replaced as soon as the new buyer moved in. If you have any questions about getting your home ready for sale or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Homeowners—if you want your next home sale to go smoothly, these are the top five mistakes that you need to avoid: 1. Overpricing your home. Especially during this time of year, when the market is a little slower, be very careful not to overprice your home, or you risk losing out on a ton of buyers. An inappropriate price tag on your listing can cause buyers to simply pass over your listing. A home priced at or a little under market value will generate a lot more interest, possibly even creating a bidding war. An overpriced home will likely sit on the market for a long time until you undergo rounds of price reductions. 2. Not prepping. Many people want to skip the process of decluttering, cleaning, repainting, etc., when it comes time to sell. However, that’s a mistake. To capture the most interest from buyers, you need to take the time to make sure your home is nice and clean. Give the home a fresh coat of paint, make sure your yard is neat, and be sure that all the appliances and systems on the inside are in working order. “Buyers tend to purchase with emotions in mind, so staging the home to maximize its appeal is a great idea if you want to sell for the most money possible.” 3. Not staging. A lot of homes already look very nice already and might only require a little bit of staging, but other homes, like those with children and pets, might need a bit more. Buyers tend to purchase with emotions in mind, so staging the home to maximize its appeal is a great idea if you want to sell for the most money possible. 4. Not accommodating buyers’ schedules. Sometimes sellers will say that they don’t want to do showings on certain days of the week. When you restrict your schedule that way, it makes it difficult for buyers to view your home, and you’ll miss out on a lot of activity, potentially reducing the amount you’ll get for the house. 5. Holding onto the original list price. Many sellers refuse to lower their list price, thinking that by doing so, they’ll get a lower sales price in the end. However, that’s not true. You have to react quickly because most homes that sell do so within the first 30 days; if your home sits on the market for longer than that and you haven’t adjusted your price, then it will probably sit on the market for much longer. This will cause you to net a lot less than you might have otherwise. If you have any questions or ideas about topics you’d like me to discuss, please reach out to me. I’d be happy to hear from you.

During the last real estate bubble in 2006, there were a lot of things that happened to encourage the problem. Today I want to take a look at three of these things to put your mind at ease that we aren’t in a real estate bubble again. 1. Stated income loans existed. Back in 2006, many people who shouldn’t have qualified for a loan got one based purely off their bank statements and what they chose to state for their income. While they were only making $50,000 to $60,000 a year, they were buying homes that were far out of their price range at $800,000 or $900,000. 2. Appraisers weren’t independent of their lenders. Even though the home prices were inflated, lenders would make sure that appraisals came in at the purchase price. Now, though, they are completely independent to avoid this issue. 3. Investors were buying at record rates. In 2006 there were people scrambling to buy whatever property they could pick up. These days it has definitely slowed. “What we are experiencing now is a regular market correction.” Usually a real estate market is about 10 to 12 years from peak to peak. What we saw in 2006 was the height of the market before it started going down to the bottom in 2011 and 2012. What we are experiencing now is a regular market correction. Inventory is about 20% higher than it was last year so there is some slowdown. Also, interest rates have increased causing further slowdown. However, it’s not a real estate bubble like we saw in 2006 because people buying homes are actually able to afford them and appraisals are independent. If you have any additional questions about our market, or if you’re interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

After speaking with many clients over the years about the value that pools can add to a home, buyers tend to fall into three categories: 1. Buyers that really want a pool. These buyers could have children or teenagers and want to have a pool for them to use or they simply just like the aesthetics. Whatever the reason, these buyers will pay a little extra for a pool. 2. Buyers who absolutely don’t want a pool. This type of buyer may simply not want the hassle of maintaining a pool or they may have young children and are concerned about safety. These buyers won’t pay extra for a pool and may actually not buy the home at all if you have one. 3. Buyers who don’t care either way. If the home has a pool, great! If it doesn’t, then that’s fine too. These buyers won’t alter their offers to accommodate a pool’s value. If you have any questions about features that add value to your home or about anything real estate-related, please reach out to me. I’ll be happy to answer your questions for you.

What has been going on in the Orange County real estate market? Today I’ll give you our latest summer update. Inventory is about 20% higher than it was last year. That means there are a lot more homes on the market this year, especially in the luxury price point between $1.2 million and $2 million. Many of those homes are sitting on the market for 90 days, or even as long as six months. For homes less than $1 million, inventory is much more plentiful. Here, there’s room for negotiation on price and terms, but remember: good homes still move fast. So if you see a good home out there that’s right for you, jump on it. There may be other competing buyers clambering to purchase it out from under you. The room for negotiation comes from the increase in time that homes spend on the market (due to the increased inventory levels), as well as rising interest rates. Though rates have increased, they’ve tapered off over the last two or three weeks; talk to your lender to see what rates they can get for you. “If you see a good home out there that’s right for you, jump on it.” What does this mean for buyers and sellers? It means that sellers have got to be very careful not to overprice their homes; otherwise, you’ll sit on the market for a long time and likely go through a series of price reductions, ultimately landing you with a lower sales price on your home than if you had just priced your home correctly. For buyers, it means that you’ve got a range of choices to pick from. Because of this, there aren’t as many multiple offer situations, so you’ll have some negotiating power. Homes that have been on the market for 30 to 45 days are the sweet spot in which you’ll want to negotiate on price. Last week, I took a buyer out to Orange County and we saw a really nice home that had been on the market for almost 45 days. After negotiating for a couple rounds, we eventually got the house for about $20,000 less than full price. We’re now in the inspection phase, and we hope that everything works out in the end. If you have any questions or need some advice about how to proceed in the market, reach out to me. I’d be happy to advise you to real estate success.