What's Ahead for the 2014 Real Estate Market?

What's Ahead for the 2014 Real Estate Market?

This past year has been pretty amazing to say the least. Today I wanted to reveal my predictions for 2014 real estate market; but before I begin, I wanted thank you for your continued business and your referrals. They are the lifeblood of my business and we are very appreciative and grateful for all you have done for us in 2013 and we are excited for an amazing 2014 in real estate.

In no order of importance here are my top seven real estate predictions for 2014.

1. Home prices will stabilize in some areas and others will experience gentle appreciation. In the last twelve months, most metropolitan areas across the county saw substantial increase in prices. For us here locally the upswing in values were fantastic, it's was the first time in 6 years there was good news for home seller.

This year don't expect a big upswing in prices like we just had however, gentle appreciation will occur in small markets where inventory is low. Connect with me if you'd like to know your neighborhoods inventory levels & absorption rate.

2. Home builders & new construction will compete with resale housing. We are seeing it all over the place; developers are back in the game & new construction is being built. Big homebuilders are buying large & small tracks of land all over the country, especially here in Southern California.

3. Rental housing markets will surge & go up. Rentals are in demand here locally. If you have a property you want to put on the market as a yearly rental you could have up to 8-12 applicants. Because of the shortage of good quality rentals it’s causing the rents to rise.

4. Interest rates, the market is still very interest rate sensitive. They've been extremely low for a very long time but we anticipate the rates to continue to climb.

All eyes will on Janet Yellen this year; she will become new chairperson of the Federal Reserve.

Yellen will continue to monitor the bond-buying program, but inflation will continue which will lead to higher rates and more costs involved for getting financing. Interest rates can only be suppressed for so long, we expect interest rates will rise and hit 5% or higher. Buy or refinance now and lock in the rates while you still can.
  
5. Inventory will slightly rise. According to core logic it's a company that deals in real estate statistics and this past year 2013 they estimate that there was over 3 million households that went from what we call negative equity meaning they owed more than the house was worth to positive equity.

So for theses homeowners it has a huge impact on their psyche, their financial situation and their confidence of what they're able to do with their property. So when 3 million households go from negative equity to positive equity that opens them up to make moves in the market and you will see more homes come up for sale because it.

6. Homes with good curb appeal will lead market sales. Home buyers will be extremely picky in 2014; they will only buy the best home in the best condition at the most affordable price. The Buyers mentality has shifted from doing whatever is needed to buy a home to now being extremely aware of value and cost.

7. Real estate offices and real estate licensees will increase again this year. You’re going to see real estate agents who are getting back into RE to make a quick buck cause the they think the market is booming again like the early 2001-2005 market.

When it comes time to sell your home, Be very cautious to not just go with the first agent you meet with, do your homework. Make sure your agent has been listing and selling homes successfully for a minimum 10 years more & they have a track record to prove it. Who you work with matters in 2014.

If you have any questions about this information or would like to discuss your plans, don’t hesitate to call or email me. I hope you have a prosperous and productive 2014 and thank you again for all of your referrals and past business.

Remember when it comes to buying or selling real estate, Frank gets it done!

How to Maximize Your Home’s Appraisal Value

How to Maximize Your Home’s Appraisal Value

One of the most important elements of pricing your home to sell is your appraisal value. Both buyers and their lenders want to know your home is worth the price tag. So how can you maximize your home’s appraisal value? There are eight simple, yet effective ways to getting a higher value. 

Step 1:Make sure your home is clean and offers great curbside appeal. 
First impressions are important. Make sure to maintain your landscaping. Remove your cars from the driveway to reduce the appearance of clutter. 

Step 2: Keep and Maintain an itemized list of all updates and upgrades you’ve done to your home.
Be prepared to show the money you’ve invested to increase your home value. 

Step 3: Do your homework.
Keep comps on hand of homes similar to yours to show the appraiser. Every bit of information helps increase your appraisal value. 

Step 4: Pay attention to the improvements that will increase your home’s value.
There are certain upgrades you can do that increase your value and yield better returns on investment: hardwood floors, lighting, plumbing fixtures, kitchen and bathrooms. 

Step 5: Always apply the $500 rule. 
Any repairs that cost more than $500 actually account against your home’s value. Fix what needs to be fixed, such as broken windows or any structural damage. 

Step 6: Play up your location.
If there have been any recent changes to the neighborhood such as a new school, retail store or if your home is near a landmark, make sure to mention it to the appraiser.

Step 7: Make the appraiser feel at home.
This is one of the most important steps. Make sure the home is at a comfortable temperature. If you have a pet, board it for the day. 

Step 8: Ask questions after the appraiser has appraised your home. 
I know you may get excited or anxious to talk to the appraiser while they are inspecting your home, but wait. Don’t follow the appraiser around your home. They are there to do their job; let them do it. Once they have completed the appraisal, you can ask your questions. 

If you’re thinking about making improvements to your home, make sure you don’t ‘over-improve.’ Call me and we can discuss what repairs your home actually needs. Your home should match your neighborhood’s environment.

If you have any questions about how to maximize your home’s appraisal value or if you need referrals for some great appraisers, call me. I’m here to be your real estate resource.

Why A Trust?

Why A Trust?

Hey, everyone! Welcome back to my video blog! Today, I wanted to talk about trusts and why they are preferred over wills.

So, what is a trust? A trust divides ownership of a property into two parts.
1.    Trustee. The trustee holds ownership and control of the property.
2.    Beneficiary. The beneficiary holds the soul right of the enjoyment of the property.

Did you know that often trusts are preferred over wills when ensuring the orderly transfer of property in case of a death? Trusts can be executed immediately and can handle a variety of different circumstances. If you are injured or become incapacitated, a trustee can take over your finances.

Another great thing about trusts is the assets such as personal property are not subject to probate proceedings. This is a HUGE relief in avoiding expensive fees from both attorneys and probate court.

Trusts can also be changed much easier than a will. One simple notarized page from both the trustee and beneficiary is all it takes!

The BEST part about a trust, though, is getting favorable tax treatment! If you have a personal net worth of $100,000 or more, a trust will maximize your estate tax exemptions. It will also ensure at the time of your death, your heirs can inherit the estate and avoid any penalties and fees from our good friends, the IRS.

Take it from me. You don’t want your loved one to lose their home at the time of death to the state due to lack of estate preparation.

As, always if you ever know of a friend, a coworker, relative or even a friend on a social media site that is interested in buying or selling a property, connect with me today!

Should You List Your Home in the Fall?

Should You List Your Home in the Fall?

A lot of people have asked me whether the fall is a good time to buy or sell. Should they wait until spring?

The answer is no! Fall is a great time to buy and sell. While we typically see more sales during the summer months, we also have more inventory.

The fall is a market of serious buyers and sellers. It is a great time to sell because inventory drops and there is less competition. Buyers are serious; maybe they are relocating or they just sold their home and need a replacement. There is a sense of urgency and home sells quickly.

If you are thinking about selling, do it now. We expect inventory to increase during the spring and you don’t want to wait for more competition. Give me a call at 626.780.2705 and I can help you with your buying or selling needs. Thanks for watching!

We are now with Prudential California Realty!

We are now with Prudential California Realty!

Welcome back to my video blog! I’m excited about what I am going to share with you today. I am constantly striving to improve my customer service, efficiency, communication and marketing experience that I provide for you, my customers. In doing so, we’ve recently made the change to become partners with Prudential California Reality. This change enables us to provide a more seamless and pleasant experience for you. This made sense as our main goal is to ensure every real estate transaction you have with us is great.

Ultimately, Prudential’s marketing reach and integrity made the decision natural for us as they are second to none. All of our contact information is the same and I can’t wait to tell you more. Have a fantastic day!

How long do you see this seller’s market lasting?

 
How long do you see this seller’s market lasting?

Once the inventory increases, it’s going to take away the very high demand because buyers will have more options. Once that takes place, the offers and sale prices will come back down.

In my opinion, this market is short-term. It’s not a permanent real estate market; so if you’re on the fence about selling your home, make your move now. Take advantage of this market while there is a demand for homes.

Give me call if you have any questions or want to buy or sell your home!

What to Ask Before Hiring an Agent to Sell Your Property

One of the most common things we hear as top-producing real estate agents is about how homeowners had neglected to properly interview the agent they had for their home. To help avoid that from happening, here are some factors to consider before you hire a real estate agent to sell your home.

 

Amount of Time Devoted to Profession

The real estate industry is one that can be very flexible for some yet completely encompassing for others. Your challenge will be to look for an agent that has made the profession their full-time career. The difference will be in the amount of time you can expect them to give you and the expertise level you can expect in return.

Level of Demonstrated Expertise

Experience comes from working with multiple clients in many different situations. As you interview prospective agents, take the time to inquire about past and current clients. Find out about the types of deals the agent specializes in. Are they specifically geared toward buyers or do they have experience with listing transactions? Don’t be afraid to check whether they are good at their job through references.

Length of Time Other Listings Remain on Market

Look into the length of time other listings they have taken have remained on the market. If you see a predominantly long number of days their properties sit on the market then it might indicate a lax marketing strategy – or worse, none at all. Marketing is a key component that you should be looking for and if a prospective agent lacks a viable marketing plan, you may want to think twice about that agent.

List to Sale Ratios

A lot of agents use less than scrupulous tactics to gain sellers’ business. One example is promising their clients higher selling prices only to disappoint their clients when the market dictates their home is worth less. Look for an agent’s list-to-sale ratios on other listings they have had. Are they being sold at or at least very close to the listing price? If not, it could be an indication of bad pricing advice or worse, evidence of those sneaky tactics to reel in business.

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Keep in mind that these are just a few of the things that impact the success rate of a strong real estate agent. What you need also to be looking for is a winning combination of character, values, tech-savvy and market-smart techniques. No two attributes will be enough – rather it is essential that you feel comfortable with your agent, can trust them and are fairly certain that they deliver on their promises.

4 Tips to Preparing Your House for Sale

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Google “selling a home” and you’ll end up with millions of hits with tips, tricks, to-dos and what not to-dos. But if you can see past all the fluff and get right down to the bottom line, you confirm that all you really want as a seller is top dollar and you want it fast.

Frank Del Rio & Associates knows the business of selling homes and we’ve been through it in all types of markets. Buyer-centric markets tend to make it necessary for sellers to pull out all stops while a sellers’ market like we are experiencing these days dictates something else altogether.

Here is our four-point strategy that we think you need to be doing to prepare your house for sale. Nothing else. It doesn’t need to be complicated. It doesn’t have to cost an arm and a leg. Being in the amazing market that we are in right now – you don’t have to do that much!

Bring It Up to Code
Read up online (or ask us) to find out the standard items that home inspectors look for – then go get it done in your house. Make sure the home complies with safety and building code and if not, hire a contractor to get it done. Some things are easily resolved yourself such as replacing smoke and carbon monoxide detectors or ensuring your water heater is properly strapped in place.

Let There Be Light (and Air)
One of the first things buyers look for is the flow of a house. Not only does this apply to the floor plan but also in terms of how much light and air flows through the space. The last thing you want to do is to have a buyer walk away because they were unable to see the potential in a home if it wasn’t set up right. Make sure you open windows, highlight open spaces and stage the house so buyers can see all that it has to offer.

Break Out the Broom
Have you ever walked into a dirty or cluttered space and felt good? Of course not! So when you’re selling your home keep buyers’ impressions in mind as walk through the house. Are there piles of stuff lying around everywhere? Make your home inviting and welcoming with the simple step of cleaning it up, making it fresh and allowing buyers to visualize their own lives in the space.

Don’t Go Into Overdrive
One of the biggest mistakes sellers make is to renovate, rebuild and remodel before selling their home. The problem with that is that buyers may or may not like your choices. Rather than the money being recovered in your sale price as you would have wanted, renovating often backfires and turns buyers off. No need for overkill – just sprucing up the place with some simple decorating and staging changes will do the trick. And if there is a serious need for updating – reflect it in the price so buyers can make their own design choices.

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Aside from the obvious steps to take when preparing your home for sale – the most important thing you can do is to align yourself with a really strong real estate team that will get the job done! Contact us today for a free home value report and for a walk-through with some more suggestions for your home. Remember – Frank gets it done!

It's a Sellers Market in Southern California and That Means You Get Top Dollar

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Have you been sitting around waiting patiently to sell your home? For years now, we’ve been waiting for a better time in the market, a time when sellers can expect to get top dollar for their home. Well folks – the time is NOW! The SoCal real estate market is brimming with buyer activity and that can mean only one thing for sellers that are eager to cash in on the opportunity. That’s right! The market is rife with opportunity for sellers to get the most for their home and with the market as it is right now, they are getting it done in an easy, hassle-free way.

Ninety Percent of Homes Sold Are Getting Multiple Offers
Believe it or not, nine out of ten homes sold in the month of March & April drew multiple bids. In some cases, especially for homes that are priced right, in good shape and in a great location – as many as 5, 10 or more buyers were vying for the same property. As a seller, the advantage of this kind of housing shortage is that YOU get to pocket a LOT more money than otherwise. Seems like yesterday when we had an overabundance of homes and not enough buyers out there looking.

Many Sellers These Days End Up Over Asking Price
Another benefit of a seller’s market that we’re seeing a lot of our clients enjoy is MORE MONEY! When you have multiple people interested in your home, of course you can expect them to drive the price up as they compete against each other. This is great for our clients because you can expect to yield a LOT more than you had expected in the first place!

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If you are in an equity position on a home in Southern California and selling may be something you are considering – it’s critical to align yourself with a top-notch, experienced, go-getter team to get the job done and get you the most money! Frank Del Rio & Associates is THE professional team to get it done. If you or anyone you know, whether a friend, family member, neighbor, or someone in your social community, is looking to sell or buy a home – let us know today.

Waiting for the Market to Turn? It HAS Turned and Now is THE Time to Sell!

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Just a few short years ago most of us could not have seen this coming but here we are today, at the cusp of the second quarter in 2013 and our housing market is completely changed. In fact, whereas just a short time ago sellers couldn’t get enough buyers to come through their homes, now buyers are the ones struggling to find the home of their dreams.

Sellers Enjoying a Lot More Control in the Marketplace

We are seeing multiple offers, price battles and homes selling in record time.

Buyers are competing against each other like we haven’t seen in ages and that usually means one trying to upstage the other’s offer. We are seeing fewer seller concessions requested at times and in some cases, buyers are willing to forego some contingencies on their offers.

So if you have been on the fence about selling your home, consider putting it on the market now. Not only are homeowners getting at or more than list price in many cases, but also buyers are the ones pulling out all the stops to engage sellers’ interest.

Buyer Demand Expected to Stay High Through Summer

How long will this last? No one can say but we can tell you that right now our inventory of homes available for sale is far lower than the demand for well-priced quality homes located in good locations.

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Contact us today if you’d like to experience this strong sellers’ marketplace!