Thursday, December 14, 2006
Said it once I'll Say it again
Zillow has just started listing properties for free. The San Francisco Association of Realtors has just tightened its grip on its technologically inferior MLS. Times are changing.
Holiday RE Market is Just Fine
People have been asking me: "oh so how's the market", expecting to hear me complain about prices going down and no buyers out there.
"No complaints here! I'm as busy as ever and the markets doing just fine." Its true. The SF real estate market is rolling on in a perfectly. In-fact what I've seen in the last month or so is that buyers are moving in droves for fairly priced properties. I've seen multiple offers and properties sell in a matter of days. The thing that is different is that unrealistically priced properties are sitting on the market for an indefinite period of time and are either taken off the market or have their price dropped until its put in line with buyers expectations.
This all sounds perfect for me, perfect for my buyer clients, and you know what, its OK for sellers too. Yes, it would be nice if we could all win the lottery, but lets talk sense: sellers are getting fair prices for their properties, and if they price the property correctly, they'll still attract multiple offers. This will give them the leverage they need to make sure they are not nickled and dimed to death. Fortunately enough, my buyers can still work the greedy sellers or those represented by foolish agents who do not know enough to list their properties realistically. Because this market is rather balanced, its a new game, people are all learning what the new rules are and for those who are well positioned, the world is yours to claim.
Well positioned, I mean represented by a thoughtful experienced team, not leveraged to the hilt, and even better sitting on cash that could be mobilized to quickly take advantage of opportunities as they present themselves.
Here are the trends I'm seeing now:
1) Sellers who price properties correctly will receive multiple offers and maintain the leverage during the escrow phase of the transaction.
2) Sellers who price their properties over buyers expectations will wait forever until getting an offer, and then will be forced to lower their price below what it might have sold for if they had be realistic in the first place. A stale listing goes under the radar and is very often missed.
3) Rents are rising and many sellers have been just removing their properties from the market since they are realizing that even after having to refinance and incur higher debt service, they can survive on an increased rent.
4) The lowest priced properties are still going to have stable prices. Our electorate gave one more blow to first time buyers this fall (see my previous post), and as I just said rents are going up.
5) Buyers should be looking for the tired sellers who are just at the breaking point and ready to settle for a lower price. Work those people hard while in contract, and be patient and leave the emotion at the door. Don't be timid right now, be ready to walk, there are plenty of sellers out there.
6) I've seen lots of great deals in some off the radar places: Portola, and Sunnyside neighborhoods for example.
I always say that its never too late to have a great childhood; likewise, now is not too late to clean up your balance sheet and move ahead on your path to a better life. Now is really a exciting time in the real estate market. If you don't have any thoughts about what is going on around you or if you hadn't thought about what it means to you for this next year. Come and talk to me to find out how to take advantage of the times.
"No complaints here! I'm as busy as ever and the markets doing just fine." Its true. The SF real estate market is rolling on in a perfectly. In-fact what I've seen in the last month or so is that buyers are moving in droves for fairly priced properties. I've seen multiple offers and properties sell in a matter of days. The thing that is different is that unrealistically priced properties are sitting on the market for an indefinite period of time and are either taken off the market or have their price dropped until its put in line with buyers expectations.
This all sounds perfect for me, perfect for my buyer clients, and you know what, its OK for sellers too. Yes, it would be nice if we could all win the lottery, but lets talk sense: sellers are getting fair prices for their properties, and if they price the property correctly, they'll still attract multiple offers. This will give them the leverage they need to make sure they are not nickled and dimed to death. Fortunately enough, my buyers can still work the greedy sellers or those represented by foolish agents who do not know enough to list their properties realistically. Because this market is rather balanced, its a new game, people are all learning what the new rules are and for those who are well positioned, the world is yours to claim.
Well positioned, I mean represented by a thoughtful experienced team, not leveraged to the hilt, and even better sitting on cash that could be mobilized to quickly take advantage of opportunities as they present themselves.
Here are the trends I'm seeing now:
1) Sellers who price properties correctly will receive multiple offers and maintain the leverage during the escrow phase of the transaction.
2) Sellers who price their properties over buyers expectations will wait forever until getting an offer, and then will be forced to lower their price below what it might have sold for if they had be realistic in the first place. A stale listing goes under the radar and is very often missed.
3) Rents are rising and many sellers have been just removing their properties from the market since they are realizing that even after having to refinance and incur higher debt service, they can survive on an increased rent.
4) The lowest priced properties are still going to have stable prices. Our electorate gave one more blow to first time buyers this fall (see my previous post), and as I just said rents are going up.
5) Buyers should be looking for the tired sellers who are just at the breaking point and ready to settle for a lower price. Work those people hard while in contract, and be patient and leave the emotion at the door. Don't be timid right now, be ready to walk, there are plenty of sellers out there.
6) I've seen lots of great deals in some off the radar places: Portola, and Sunnyside neighborhoods for example.
I always say that its never too late to have a great childhood; likewise, now is not too late to clean up your balance sheet and move ahead on your path to a better life. Now is really a exciting time in the real estate market. If you don't have any thoughts about what is going on around you or if you hadn't thought about what it means to you for this next year. Come and talk to me to find out how to take advantage of the times.
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