Lake Oroville Poised for a Wet Winter… We Hope.

lake oroville visitor centerShowing 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.

4 Buyer Beliefs that are Hard to Break

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

The post 4 Buyer Beliefs that are Hard to Break appeared first on Charity Berry .

Weekly Oroville Home Sales Roundup

This latest edition of the weekly Oroville home sales roundup shows that the Lake Oroville real estate market may finally be normalizing.

Price stabilization seems to be taking hold as monthly  median prices have barely moved over the past 12 months. Between April 1, 2014  and March 31, 2015 the median Oroville area home price (the midpoint price of all homes sold)  was $145,000. During this time, the highest monthly median price was September 2014 at $159,000 and the lowest price being recorded this March at $128,895. In addition, March was the first month since May 2013 that the monthly median price was lower in the current year than it was in the same month of the previous year.

There are two things that you should be watching very closely if you are trying to gauge the health of the Oroville real estate market. One of those things is the number of current home sales pending (or in Realtor-speak, “in escrow”, and the other is the inventory of Lake Oroville homes currently on the market. You can see that over the past three weeks both the number of pending sales and the number of homes currently on the market are steadily increasing. While this is encouraging news, there is still a ways to go. It has been my opinion for quite some time that an adequate supply of homes for sale should be at, or close to, 300 and that the number of pending home sales should be in the neighborhood of 130-140. As you can see, we are significantly short of those benchmarks, but we appear to be making some inroads to a healthier market.

If you have been a frequent follower of my market reports you will notice a couple of changes to chart. One change is that I will no longer be reporting the number of foreclosures and short sale homes that are currently on the market. These homes are no longer having any significant impact on the local market so I will not bother you with irrelevant information. The other change I have made is the addition of my tracking the number of agents from outside the local Oroville market that are doing business here. In my opinion, this is a disturbing trend as some of these agents from outside the area have absolutely no expertise in assisting buyers or seller in the Oroville real estate market. I’ll continue to monitor this and keep you apprised of the situation.  Be sure to leave any comments you may have about this post. I always appreciate the feedback.

The post Weekly Oroville Home Sales Roundup appeared first on Mark Wisterman’s Oroville, Chico & Paradise Real Estate Blog.