MARKET UPDATE

IS IT A GOOD TIME TO SELL?

This is one of the most common questions we as realtors get all the time. Contrary to what a lot of us realtors thought was going to happen with the Real Estate Market, houses are selling in record time 0-2 days on some occasions, people are literally MAKING LINE TO VIEW HOMES.  The phenomenon we are seeing is helping sellers get not only fair market value but sometimes an additional 5 to 10% more. 

HOW CAN SOMEBODY GET MORE THAN THEIR HOUSE IS WORTH?

In Real Estate there's something called contingencies; appraisal contingency is one of them. Most of the times when a buyer submits an offer it's subject to appraised value. Well,  in todays market that contingency rarely applies because most of the sellers are sending counter offers asking the buyer to remove the appraisal contingency which means that if the appraised value of a house is $400,000 but the buyer offered to pay $410,000 then the buyer will have to come with the difference to escrow in the event the property doesn't appraise to the price offered.

IS IT A GOOD TIME TO BUY?

Yes it is! The interest rates are at a historical low. If you compare the rent to a house payment you are going to see that the difference is minimum. The average rent of a 3 bedroom 2 bathroom house in Los Angeles area is $2,400 to $3,200 a month. If your credit is good and you qualify to buy a home your monthly payment could be between $2,900  to $3,150 in a $500,000 home.

IS IT EASY TO GET AN OFFER ACCEPTED IN THIS MARKET?

No. There are a lot of buyers out there trying to take advantage of the low rates and that has created a competition between buyers and sometimes is not easy to win an offer.

HOW CAN I HAVE A CHANCE TO WIN AN OFFER?

As I mentioned before, winning an offer is very difficult right now but not impossible. If you want to have more chances of winning an offer you need to hire a very experienced agent with negotiation skills. Your agent has to be well organized, and have the ability to persuade other agents to look at your offer. 

IF YOU WOULD LIKE TO KNOW MORE ABOUT THE ADVANTAGES OF BUYING OR SELLING, GIVE US A CALL. WE HAVE THE TOOLS, EXPERIENCE AND KNOWLEDGE TO GUIDE YOU THOROUGH THE PROCESS AND MAKE YOUR TRANSACTION AS SMOOTH AS POSSIBLE FOR YOU.