Hello Fall! (ing inventories)

If you're frustrated with your home search, you're not alone. All we can say is hang in there so that you can be ready when an opportunity presents itself. This may be within a week, month or even 6 months down the line if you're holding out for that "ideal" property.

School is already in session and Sellers may be content to wait until the 2024 selling season, but forced sellers will always need to sell and that is why you're seeing a lot of "first time on the market in 50 years" popping up here and there. Turnkey, fully remodeled properties may be limited, but if you're open to put in some work, there are opportunities to be had. This however comes with the added stress and workload of managing the project, possibly paying double rent or mortgage and the almost guaranteed, delays. 

We always advise that the Fall/Winter months are the months to purchase, but many are then concerned with what will happen with rates/prices/economy in the upcoming year, etc. Nobody can predict the future and those (Buyers, Sellers, Bank forecasts and others) that predicted rates would fall at the end of 2022 into 2023 along with a drop in prices (in highly desirable target areas) were unfortunately mistaken and now largely priced out. Focus on your own numbers, comfort level and plan for a longer ownership cycle if possible. Ultimately, give yourself some grace and set mental parameters. It's tough out there, but it doesn't mean it won't happen.

Happy home hunting and hopefully we'll have an opportunity to help save some of your well earned money.

Rates stay up, Inventory still down, Multiple Offers on Turnkey

If you're willing to put in some work and have the available funds to update an outdated home you may be in luck. With rates in the 7's, forced Sellers in highly competitive markets are still seeing increased demand with all cash offers (or those with significant down) in hand. However many of these properties haven't been updated in 20-50 years and despite a sizable footprint, will require an extensive amount of interior updating. Thinking bathrooms, kitchens, paint, popcorn removal, etc.

So the question is often turnkey at a premium or a fixer upper at a more palatable entry price, but with some immediate out of pocket expenditure and sweat equity to get it up to par. A close friend mentioned that during the time of his purchase, he wishes he had spent a little more for a bit more square footage. Rationale is that it's much cheaper and easier to remodel/update than build an addition and expand. But, we're all working with budgets so it's jus a matter of personal preference.

The Southern California market is challenging as is with many Buyers now opting for the school districts and value of suburban Orange County. We're seeing more activity from our own clientele and will likely see more.

North OC in particular has drawn a lot of interest given a relatively similar commute (all challenging) from South Bay/NELA, Pasadena, etc into workplaces especially as remote evolves into hybrid, into back in the office. 

Where are you now expanding your search into? 

New Developer Rebates - Orange County, CA Savings!

With limited resale inventory, we've been busy working with referred clients interested in new build opportunities. With just a quick phone call (or email/text), we were able to save clients thousands by helping offset closing costs and rate buy downs.

1) Reach out to us before making your first visit to the sales office and we'll accompany you during the initial appointment.

That's it!

Happy June!

Bidding Wars - A Reliable Constant

Short post as a number of our clients have gone into the offer process without truly grasping how competitive target properties are. High rates, low rates, economic slowdown or a raging bull market, no matter the climate, a property that checks many boxes, listged within reasonable price range and situated in a good school district will always draw multiples, oftentimes pushing the contract price significantly over asking price.

Unfortunately, many well intentioned Buyers are finding themselves immediately priced out of their target area even as forced sellers are putting their "first time on the market in 50+ years, original condition homes" up for sale despite the higher rates. And yes, many listing agents will price extremely low to guarantee multiple offers eliciting shock and awe from newer Buyers when the accepted offer is $200k over asking.

What can you do as a Buyer? 1) Temper expectations and 2) Focus on things that you can or can't change

We see too many prospective Buyers worrying about carpeting or countertops rather than location, wants vs needs and ultimately budget. Turnkey comes at a premium and chances are your tastes aren't completely in line with the previous seller/flipper/developer, etc. 

Lastly, the most important tip is to structure offer spectrum as best as you can. Sure you can get a deal on a property that's been on the market for 365+ days, it may not necessarily be a deal even if a favorable $/sf etc. Your goal is to get your target property under contract and if that means going over the the top a bit (but still safely within your comfort level), it may be worth it. Nobody wants to overpay, but if you're outbid and continuing your search, chances are the floor has risen and you'll find yourself both overextending AND priced out, a place no Buyer wants to be.

Buying a property is always stressful, but hopefully it becomes less so over time as you further filter your criteria.

Hang in there all!

Should we launch a dedicated Orange County Real Estate Rebate platform?

 Spring is almost here and Buyer demand continues despite inflation concerns and mortgage rate fluctuations. Limited inventory in target areas fuel multiple offers and often over asking price sales. (And this was during the sleepy November 2022 to January 2023 window when most Buyers are usually still in Holiday mode. Despite rates trending upwards, Buyers still find themselves in bidding wars despite fears that the market is slowing, flattening or declining. That may be the case in other parts of the US, but not so much in sunny Southern California when forced sellers are putting their homes up for sale after 50+ years and prospective Buyers need to transition to that particular school district or make a change before summer vacation.  Best piece of advice is to shop rates, set expectations and familiarize yourself with your local, target market. Whether the market is up or down, desirable properties that check all your boxes will be competitive. Focus on your numbers, on criteria that you can't change and disregard those that claim to have a crystal ball. If they're that clairvoyant, there would be a ton of Powerball winners everywhere.

Question for the Orange County inquirers, would it be more helpful for us to establish a separate OC Real Estate Rebate platform? Those savvy enough to do a bit of research have found their way to our services, but as more Buyers seek more value for their dollar, we're fielding more interest from those looking to switch up counties.

We'd love to hear from you and are always interested in connecting online or off! 

Good luck everyone!

LA Real Estate Rebate

OC Orange County Real Estate Rebate?

Higher Rates, Lower Prices, But (Some) Buyers Are Still On The Hunt

 Real Estate Agents (us included) often encourage Buyers to buy and Sellers to sell regardless of the climate, because there may be an impending need. They may be outgrowing a home, looking to downsize or relocating to pursue a promising opportunity. While it's difficult to time market trends, what you can do is try and minimize your costs along the way.

Typically the Fall season experiences a cool off as Buyers hunker down for the Holiday season, but we've found that savvier Buyers will focus on opportunities in Q4 versus the more competitive Spring/Summer despite lesser inventory. Despite current rates, Sellers that need to sell will ultimately have to list and realize they likely won't receive 10+ over asking price offers with waived contingencies this time around.

Those Buyers fortunate enough to purchase All Cash will have increased leverage and take advantage of time sensitive sales. Cash is often king, but didn't always win out with fully waived contingencies at over 20% over ask.

In any market, desirable, well priced properties will garner a lot of interest. Overpriced properties will correct and adjust down. Good luck to everyone looking to purchase and/or sell and remember to at least ask about commission rebates and reduced listing fees. The more time you can save your broker on the front end, the more you can potentially save.

Happy Fall!

LA Real Estate Rebate (Serving Orange County too)!

Summer cool off? Keep an eye on inventory heading into Fall/Winter!

 It's been a unique few months as bidding wars ran rampant, Sellers commanded premiums on any/all listings and any sort of Buyer side leverage slipped further and further away. However, don't feel daunted as tides may be turning. Continue to monitor active listings in your target areas and note how long it sits on the market before going under contract. Feel free to just call the listing agent and inquire about status as a heat check.

As the summer buying and selling cools, see what pops up in the fall and winter. You may be able to gain some leverage and still take advantage of lower rates.

Remember to be patient and set your own parameters. 

Call or text (preferred since we get so many robocalls now) us with any questions!

LA Real Estate Rebate

DRE#1948477