Buying a home is a major decision, and it can feel like a gamble. If you buy now, will real estate prices plummet? Will mortgage rates fall? Or is now the perfect time to snag the home of your dreams?
Things are looking up: Mortgage rates are low despite recent gains, and new data shows the inventory of homes on the market is starting to increase—all good news for buyers.
I’ve added my “Sold in Oroville this week” series to my blog. This link will keep you informed. I will be adding a link every Tuesday to keep you informed on our market.
Showing lake property without a lake has been an escalating problem for a few years now.
The Lake Oroville area has some amazing sights and tons of recreational activities. Unfortunately, a large portion of them have to do with accessing the lake which is kind of hard these days. With the lake levels at an historic low, the lake has been in the news more than at any other time in history. It seems that every time I pick up an article or magazine that is talking about the drought, there is a picture of Lake Oroville in its depleted state. We have become the “poster child” for California’s near crisis drought conditions.
The effect on the Lake Oroville Real Estate market is debatable. The spring/summer has been great so far with plenty of buyers still looking for that vacation or retirement home by the lake. The interest rates are still low and the home prices while going up a bit, remain stable in the area and the prospect of a wetter than average winter is making everyone I talk to positively giddy. People seem to be optimistic that the lake will fill up again SOMEDAY! Sellers are still selling and buyers are still buying, so from my perspective, things look pretty good.
According to MSN news, the ocean waters are warming up and we are in a position to experience an “El Nino” event that could rival the winter of 1997/1998. If you lived in the area at that time, you will remember the unbelievable amounts of rain that came down that year. My mom worked for the propane company in downtown Oroville at the time and recalls the huge propane tanks floating down the street on the flood waters. The engineers at the Lake Oroville Dam were very worried at one point that the dam would not hold all the water and that it would breach the dam. Scary stuff indeed.
I personally hope for a lot of rain spread out appropriately enough to fill the lake, but not to cause widespread flooding, but mother nature will do what she wants and we will deal with it. Hopefully, next spring I will be showing homes and showing off the beauty of our area that includes a FULL lake.
The vast amount of online home buying “education” can have its drawbacks. Yes, the Internet is chock-full of all sorts of information that can help homebuyers learn about the process. The down side is the online search experience can cause many homebuyers to develop all sorts of dangerous pre-conceived notions about the home buying process.
Here are 4 of the most common buyer beliefs you’re up against and ideas for how to go about handling these untrue hypotheses.
1. “Agents don’t do much… just open the doors and write a contract.”
The general perception may be that the real estate agent simply sets appointments, opens lockboxes, and shows homes. Clearly, that is just a tip of the iceberg. San Diego County Realtor® Jovani Ruiz has a handy list of 199 things that exclusive buyer’s agents do for their clients. “At our first meeting,” Ruiz states, “I provide them with some information about the buying process, and I include my list. I spend a few minutes reviewing the items in my buyer’s packet. I even joke about how some people don’t think I do much, and then I point out the list.” By addressing the elephant in the room, Ruiz is able to combat that inaccurate buyer belief.
2. “I need to see everything on the market at my price before I can make a decision.”
Buyer’s agents definitely don’t like to hear this because it means that an offer may not be forthcoming soon. One of the best ways to manage buyers who want to see everything on the market is to identify and address this notion from the start. It’s easy to understand why cautious buyers like to see everything on the market before making a decision. After all, this is a pretty significant purchase, and it’s important to make the right decision. You can help mitigate this feeling by providing lots of market data about what their dollar will buy.
3. “Someone will accept my lowball offer.”
We’ve all been in the position where the buyer makes lowball offer after lowball offer and continues to lose out on homes as a result. It’s tough for agents to continually write offers for buyers that aren’t willing to be competitive in the current market. Agents may want to show these buyers properties with deferred maintenance that have been on the market for awhile. Or, if a good conversation and market education doesn’t work, it may be time to cut bait.
4. “I know what I can afford. I’ll speak with a lender when I found the house I want.”
It’s not uncommon to hear these two sentences from your prospective buyer. The good news is that the current market is moving very quickly, and buyers need to be able to present a package complete with pre-approval if they want to compete with other buyers. “I use information about the average market time of homes in my area to show my clients the importance of being pre-qualified,” Ruiz states. “In my area, homes are receiving multiple offers in just a few days. If my clients want me to negotiate a good deal, then I need to have all the tools necessary to do that.”
Being prepared to handle tough objections is the key to getting deals closed. In addition to being prepared, it’s a good idea to set expectations accordingly and provide market education at your first meeting. In this way, you can successfully address those buyer beliefs that are hard to break.
Article Featured on Trulia by Melissa Zavala
WOW!! A one owner home that shows like a one owner home.
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