Happy Valentine's Day! I received a beautiful bouquet of red roses today, but I don't know who sent it. So I just wanted to say a warm THANK YOU to the sender!
And now for today's real estate news.
Look for steady real-estate sales, price increases in '06. The National Association of Realtors projects national existing-home sales in the new year to decrease by 3.7 percent. The appointment of new Federal Reserve Chairman Ben Bernanke to succeed Alan Greenspan raises some questions about the future of rate increases. Despite the increases (December's 30-year fixed stood at 6.125 percent), mortgage rates will continue to be low by historical standards and will help fuel home buying in 2006. Click here to read more.
Central Valley's hot real estate to cool a little, analysts predict. Central Valley real estate will continue to be a good investment at least for this year, although appreciation rates will likely decline from record levels of previous years, analysts said last week. Panelists at the Economic Development Corp. serving Fresno County's annual forecast agreed that the overheated real estate market that characterized the past five years will settle down to more normal conditions. But don't confuse a more normal market with a weak one. Real estate brokers said they expect 2006 to still be good. Whether real estate will remain a strong investment into the future is unsure. San Francisco-based developer Luis Belmonte predicted decreasing demand for office and industrial properties as California shifts to a technology economy. Scott Leonard, president of Guarantee Real Estate, called 2006 "a stabilizing year." He predicted an 8 percent dip in sales, which would end five years of steady gains, from 6,480 in 2000 to 10,224 in the central San Joaquin Valley in 2005. The number of homes on the market is increasing, which is likely to affect the market, Leonard said. He also said he expects investors who buy properties solely for appreciation to back away. Those factors will mean homeowners won't realize the 23.7 percent appreciation rate of 2005, but should still see values rise 7 percent if interest rates stay under 7 percent and the economy stays healthy. As a result, the number of families able to afford a single-family home should improve, he said. Figures released Thursday by the California Association of Realtors revealed 19 percent of the households in Fresno County could afford a median-priced home of $290,970 in December. Click here to read more.
Changing Housing Market Calls for Changing Sales Strategies. As the housing market begins to slow from the record pace of 2005, sellers are faced with new challenges to ensure their home sells for the best price. Since one’s home is often the biggest investment of a lifetime, here are some important tips for selling your home:
* An inspection helps set a realistic selling price. The market analysis prepared by the real estate agent will help in determining a fair selling price for the home based on the prices that other homes have sold for in the area. However, such comparison doesn’t usually reflect the true physical condition of the home and its systems, which may not be readily apparent to the untrained eye. A home inspection for the seller can give an accurate, overall picture of a home’s condition.
* The listing price should reflect deficiencies. If a house has deficiencies, the price should reflect them for a faster sale. The combination of a professional inspection report and a listing price that reflects the true condition of the house can help minimize any re-negotiation of the sales price late in the deal and, possibly, even speed up the selling process. No one wants a house that sits on the market for months at an unrealistic selling price.
* Disclosure is key. It has become a legal necessity to disclose, up front, any problems that buyers will most likely find out on their own or through their own inspection. Failure to disclose these items/defects can mean problems for the seller later on. By having their own inspection done, sellers will be aware of any issues – which the buyer’s home inspector will likely find anyway or that will become apparent once the buyer moves in.
* Make repairs before you sell. Sellers can turn lemons into lemonade with their own home inspection. For instance, if the roof needs major repairs or if the bathroom has an ongoing leak, any potential buyer is likely to negotiate the cost of these repairs off the listing price up front. The seller may save half the profit by fixing the roof and any other items on their own, positioning re-caulked bathroom tiles and new roof shingles as new upgrades or improvements instead of as a needed repair.
By having a home inspected in advance, the seller can justify a higher listing price by documenting that the home is in good condition, or it can serve to minimize re-negotiations by disclosing defects at the time of listing. It really works either way, and goes a long way towards reducing exposure for non-disclosure with the agent and seller. Click here to read more.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
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