In recent years, buyers in California markets have had to contend with bidding wars and other issues that arise during a seller's market. However, in some parts of the country, market conditions are beginning to change. For example, only 21 percent of homes listed for sale in November 2018 in Seattle saw multiple bidders. Real estate agents who are trying to attract clients and sell homes in a buyer's market will need to be creative to do so.
Those who are looking to sell a home in California or elsewhere may find that it is beneficial to stage it first. Doing so may help a prospective buyer picture him or herself living in the property. It can also help a home come off as clean and neat. As the winter months tend to be slow in the real estate market, proper staging is vital during this time of year.
First-time home buyers in California should do a lot of research about what to expect during the process since they will be investing in an asset that they are likely to keep and live in for many years to come. There are several things home buyers should expect to negotiate when buying a home.
Buying a home can be beneficial for anyone who can afford to do so. However, research says that California residents and others should aim to buy a home by age 34. This enables an individual to have maximum equity in the property when that person is in his or her 60s. On average, a person who bought a house between ages 25 and 34 had $148,625 in total equity by their 60s.
People in California considering entering the residential real estate market may have better opportunities to pursue first-time homeownership. Real estate prices have been on the rise since the end of the recession sparked by the 2008 financial crisis. While many homes dropped in value during the recession itself, for many, it was a poor time to seek a mortgage and invest in a new home. However, as people saved for down payments and prepared to apply for mortgages, real estate prices have continued to climb, putting homeownership outside of the reach of many younger people.
Individuals in California and other states may find themselves in a situation where they have to buy and sell a home at the same time. Choosing to sell a home first may be the better option. However, it may require asking for a rent-back clause in the purchase contract. This allows an individual to remain in the home and pay rent to the new owner until he or she buys a new house.
Californians may be interested to learn that home sales were down 4.1 percent in September 2018 compared to September 2017. This decrease arrived in spite of the fact that price appreciation has slowed and Millennial buyers are in need of larger living spaces. However, it should be noted that Hurricane Florence played a role in slower sales in the South. Furthermore, interest rates on home loans are going up. While they are now 4.72 percent, they were 3.83 percent at the same point in 2017.
Purchasing a home is one of the most significant investments a California resident can make. That's why it is important that they do their due diligence when selecting a property. If the potential future home is in an unfamiliar neighborhood, there are some steps they can take to make sure that they are making the right choice.
It may be hard to imagine buying a home in California or anywhere else before turning 30. However, there are many tactics a person can employ to accomplish this goal. Ideally, a home buyer will aim to make a 20 percent down payment to avoid paying mortgage insurance. That would mean paying $50,000 upfront to purchase a $250,000 home, but the buyer doesn't need to come up with that cash on his or her own.
Homeowners in California may be making critical mistakes as it relates to valuing their properties. For instance, some might rely on an algorithm to determine how much their homes are worth. This can be problematic because algorithms may not reflect changes in market conditions or other variables that can drastically alter a home's true market value. As a general rule, real estate websites should be used to track trends in a given area.