How Should You Price Your Home?

Today I wanted to share the importance of pricing your home correctly when you’re selling. It has been especially tough in Sacramento since the last big economic downturn where some neighborhoods lost 50-55% of their value and prices were flat for 2-3 years and declining slightly.

However, in the spring of 2012, we given 15-18 months of huge price appreciation. Once that happened, it gave people the confidence to re-enter the market. When interest rates rose in the early summer of 2013 and that caused confusion in both buyers and sellers. The past six months has given us triple the inventory and prices began to stabilize with homes sitting on the market for a longer period of time. Lenders were also seeing that homes were being appraised $10,000-15,000 less than what the buyer was offering.

If you want the right kind of approach, buying or selling, to price the home correctly or make the correct offer, we can share this strategy with you. Thanks for your time and have a great day!

What Can You Do to Get the Most Money For Your Home?

If you want to get the best price for your home in today’s market, there are important factors sellers must take into account. The first step would be having me come through and evaluate your home. Most sellers want to do major projects like painting inside and out or landscape renovations, but those are usually unnecessary. The main goal is to present your house the same way you would if you were to host company.

This can be done as simply stepping outside and evaluating your curb appeal; examining everything from the yard to the doorknob. On the inside, go through every room and check things like carpet, paint on the walls and ceilings and plumbing. The ability to view your home through the eyes of the buyer is essential.

Also, the way your home is presented online and through a camera lens can be the determining factor of whether or not a buyer comes to your front door. These are things we can all help with and can save you a lot of time and money. Give us a call or text at (916) 585-3636 or email me. Thanks and have a great day!

How the Rise in Interest Rates has Affected our Market

Hi, this is Peter Parker with the Peter Parker Home Selling Team in Sacramento. Welcome back to our video blog! Today, I would like to talk to you about the increase in interest rates which we have seen both locally and nationally over the past few months.

I have been warning clients about the coming rise in interest rates all year, predicting that interest rates would be in the mid 4s by the end of the third quarter or beginning of the fourth quarter. At the end of the third quarter that is exactly where the rates are. What does this mean to buyers and sellers?

Though interest rates have increased over the past few months, looked at in an historical context, the rates are still very low. I remember in the early 1980s when interest rates were in the teens, reaching as high as 16%. As we bounce back from the historical lows that we saw late last year or early in the year, the rates seem to be reaching a number that is much more consistent with historical trends. 

Though we may have been a little spoiled with the all-time low interest rates, the jump still has a very real effect on buyers.  For each percent that the interest rate goes up, buyers lose 10% of their purchasing power. We had clients, for example, that were shopping for homes around $350,000 in April and early May. If they were unable to find a home, get into contract and close escrow by July or August, they will now have to look at homes in the $315,000 to $320,000 price range. As prices continue to appreciate in the Sacramento, this has been a “double-whammy” for buyers.

Although, we have seen interest rates go up a full point, many experts believe that interest rates will continue to rise, reaching perhaps 6% or 7%. This is the level where we will find the most stability. So, if plan on waiting for interest rates to drop again, you may be out of luck. It may be best to buy know before interest rates increase even more.

For sellers, the rise in interest rates is an important topic as well. Sellers need to realize that if they are trying to get top-dollar for their home, the increase in interest rates will shrink the pool of available buyers.

If you have any additional questions about interest rates or real estate in general, or if you or someone you know is looking to buy or sell a home, please give me a call at (916) 585-3636 or send me an email at Peter@PeterParkerTeam.com. Thanks and we look forward to hearing from you!

Sacramento Market Update September 2013

Hey, guys! Thanks for visiting my video real estate blog!

I get asked questions all the time about the real estate market. Through this blog I’ll send you updates on relevant information about our Sacramento market, from home prices to interest rates to listing your home.

A lot of people have asked me how our market is doing compared to last year. This year has been crazy. We experienced a heated bubble of activity. In fact, some neighborhoods experienced price increases of 40 percent. We also saw increases in price of eight percent in one month.

When interest rates increased, though, we saw a slow in activity and inventory doubled in some neighborhoods. We have also seen institutional investors and hedge funds back off the market since prices have increased. Now, there is less competition for first time home-buyers.

Our market is still in favor of sellers. So, if you are thinking about putting your home on the market, give me a call. I’d love to help you!

Thanks for watching!