A PRICING PUZZLE IN ORANGE COUNTY CALIFORNIA REAL ESTATE

 A PRICING PUZZLE IN ORANGE COUNTY CALIFORNIA REAL ESTATE

If you need to sell your home, but it has lost value since you first bought it, you're facing a pricing puzzle.  But before deciding on a fair price that may be below what you really want, consider the costs of not selling by asking more.

If your home sits on the market, waiting for a higher offer, you've got to figure in the costs of continuing your monthly mortgage payments, utilities, maintenance and insurance. 

Compare the asking prices of similar homes to the actual sales prices, often determined more by the lenders than the buyers.  If you’re asking more than your home's current value, the required appraisal will show that, and the lender won't approve the buyer's loan, leaving you back at Square One.

Walk in the buyer's shoes and do your homework.  Go ahead and tour similar homes listed in your area.  Compare their price per square foot and see how yours stacks up against the competition in terms of value.  This should help you arrive at an aggressive asking price that will hopefully be your sale price.

Local inventory determines your price, too.  Divide 1 by the number of months of inventory (ask your agent for this number to determine the local "absorption rate").  8 months of inventory yields a 12.5% likelihood of selling, so speak with your agent and price accordingly.

Larry Weichman is President and Broker of Costa Mesa-based real estate powerhouse Weichman Realtors,"the most trusted name in Costa Mesa Real Estate". Larry and his highly-trained team of professionals have proudly served Costa Mesa since 1976. For questions about an upcoming sale or purchase, call him directly at 714-241-4532 or email your questions to Larry@TeamWeichman.com. Be sure to visit Larry Weichman in Costa Mesa CA for the latest news and information on the Costa Mesa real estate market.  Lic #00573423 

 

     

(714) 241-4532

1525 Mesa Verde Drive East

Costa Mesa, CA   92626-5221

 

Posted via email from Larry Weichman's Blog (714) 241-4532

DON’T GIVE IT AWAY IN COSTA MESA REAL ESTATE!

DON’T GIVE IT AWAY IN COSTA MESA REAL ESTATE

While indicators show that housing is making a comeback, the glut of negative reporting is still making people skittish about buying a home.  This has created a hot rental market, with few places available to lease and rising rent rates.  Consider some reasons why it’s always better to own than to rent.

First, as owner, you are your own landlord.  You won’t be kicked out for any reason other than not making your mortgage payments.  You control every other aspect of how you choose to live in your home.

Even more important, those monthly payments are a kind of forced savings, helping you to build equity.  Although it's possible that home values could fall further, the same could happen to your 401(k).  But over the long term, both types of investment are more likely to see gains.

Right now, interest rates are still very low, which means that if you choose a fixed-rate mortgage, that rate will never change, and you will build equity at an even quicker pace.

Another reason to opt for the ownership route is that you'll find - particularly now with so few leases available - that the nicest homes in the safest neighborhoods with the best schools will be offered for sale and not for rent.  Consult with an agent and turn that rent payment into savings and security instead.

Larry Weichman is President and Broker of Costa Mesa-based real estate powerhouse Weichman Realtors,"the most trusted name in Costa Mesa Real Estate". Larry and his highly-trained team of professionals have proudly served Costa Mesa since 1976. For questions about an upcoming sale or purchase, call him directly at 714-241-4532 or email your questions to Larry@TeamWeichman.com. Be sure to visit Larry Weichman in Costa Mesa CA for the latest news and information on the Costa Mesa real estate market.  Lic #00573423 

Posted via email from Larry Weichman's Blog (714) 241-4532