San Luis Obispo County Real Estate 2013: The Year We Get Off Our Hands!

San Luis Obispo station : California (Photo credit: Loco Steve)

The holiday décor is down; neighborhood kids (and mine!) are back in school; January’s social calendar looks amazingly clear (compared with the previous two months, anyway)… so, what now?  One suggestion I might offer: put some serious thought into acting on those financial New Year’s resolutions – at least the ones dealing with your San Luis Obispo County real estate plans.

Doing so would dovetail nicely with my own New Year’s prediction, one I share with many credible real estate watchers:

2013 is the year buyers and sellers are going to really get serious about real estate.

Search all Listed Properties in San Luis Obispo County

According to Money Magazine on CNN’s website, the housing market rebound is here. Among other sources, they site the Mortgage Bankers Association forecast that “more and more house hunters will start coming off the sidelines.” They expect total dollars going to new home loans to jump a heart-thumping 55%!

For five years, local homeowners weathered the storm of the credit crisis as well as could be expected; then came marked improvement in 2012.  At last count, there were approximately 1.8 million homes for sale nationwide (half the number at the market’s deepest divot).

Here are the local statistics for the City of San Luis Obispo:

San Luis Obispo	2012	2011	2005
Number of Sales	451	381	543
Total Dollar Volume	242,875,201	200,472,875	361,983,208
Average Price	538,526	526,176	667,000
Median Price	495,000	450,000	600,000

 

While no one expects real estate prices to see crazy red-hot double-digit increases in 2013, it is encouraging to see the worst in the rear-view mirror.  And with optimism about residential real estate now broadening into general public awareness, we seem to be looking at a fresh arena for homeowners who are finally able to consider selling again…and for buyers who are past waiting for ‘the bottom’.

The message to prospective home buyers looking anywhere in San Luis Obispo County and sellers this January 2013 echoes the sentiment of Money magazine, which answered the question, “Why, as a prospective home seller or buyer, you need to stop sitting on your hands”!

Whether or not your own New Year’s resolutions involve San Luis Obispo County real estate, it is still a great time to give me a call. We can start the conversation about your real estate goals and how current 2013 market opportunities fit them!

 

San Luis Obispo County Real Estate Outlives End of the World !!

Having survived December 21, 2012, aka “The End of the World”, you might think the coast would be clear for a while. But — at least when it comes to San Luis Obispo County real estate matters — some would have you believe we are face-to-face with another extreme dire threat: the Internet buzz about a (gasp!) huge new federal sales tax on all real estate transactions.

This one was all over the web even before passage of the federal health care act. It has staying power, and comes in several forms. The one that circulates most often is an email message warning that a 3.8% Medicare surtax that is going to hit “average, middle-class investors” on January 1. Supposedly ALL real estate transactions are subject to the tax “no matter how low their income might be…”

If San Luis Obispo County real estate holders (in other words, most of us) are more than a little skeptical about this supposed mega-tax, you can understand why. The End of the World was also an Internet rumor, but now that it’s clear the Mayans found a whole new calendar behind the last page of their old one (giving us a welcome 5,125-year reprieve, wahoo!), everyone is duly cautious about these dire email warnings.

Now, I’m neither a tax attorney nor CPA, so I don’t offer tax advice — but I can tell you that you will be relieved if you visit any of the fact-checking resources (they survived the End of the World, too!). There you will find that only a tiny percentage of San Luis Obispo County real estate home sellers would ever fall under the new tax. It touches the extreme opposite of “average, middle class” homeowners. To even qualify for the tax, a couple has to have an income exceeding a quarter of a million dollars a year (before profits from real estate are counted). Even then, when a couple sells their personal residence, the sale has to clear $500,000 of profit before the tax would apply; ($250,000 for individual filers).

Clients who might be affected by the new tax don’t need an Internet rumor to tell them to seek expert tax advice! So if you are preparing to sell in the New Year, don’t let the Web trouble you: give me a call!

 

Selling in San Luis Obispo County? Give the Buyers What They Want.

Think The Way Buyers Think.

Being Prepared Can Make You More Money

One of the effects of the steady national rise in home prices is a shift in attitude by previously cautious consumers. It’s only natural to find more people focused on buying homes in San Luis Obispo County while it is still relatively inexpensive to do so, and while mortgage rates are super low.  Anywhere in San Luis Obispo County is a very popular area to move to.  After all, we are The Happiest Place in America.

If you are thinking about listing your San Luis Obispo County property this winter, keep in mind that our inventory is low, buyer demand is strong. But besides the simple supply and demand there are considerations specific to your property that can further attract  potential buyers for your property.

Buying homes – especially homes in a faraway locale – gives rise to many concerns. Positioning the way a home is marketed to anticipate those concerns can mean a sale to an out-of-town buyer here looking for their new home in San Luis Obispo County.

What Do Home Buyers Think About ?

Some of the questions out-of-towners are likely to be thinking about:

What are the neighborhoods like?

Why not do a little research into how potentially competitive neighborhoods in your town compare with your own.

Where are Your Nearest Parks?

Even if you don’t have small children, acquaint yourself with where kids go to participate in activities, local schools, parks, hiking trails etc. The information can be collected and ready to present to buyers. Links to online resources that will help prospects connect with San Luis Obispo County residents and groups. Assembling a menu book stuffed with tempting local restaurants and clubs never hurts, either!

What will my finances look like?

Evaluating relative costs of living is already at the top of the list for anyone buying homes during the last few years.  If the Cost Of Living in San Luis Obispo compares favorably with a prospect’s current address, it should be smooth sailing. If not, there may be overriding personal or professional reasons why your prospect is interested in the first place.

What special logistical hurdles are there?

What if, for instance, your perfect home cannot be ready by the mandatory moving date? Knowing local temporary housing and storage options can make an otherwise ‘impossible’ move very doable.

Buying homes in San Luis Obispo County presents a special set of challenges for out-of-towners. Being sensitive to how important these challenges can seem to a buyer can only ease their path to homeownership. (Hopefully of your home!) If you are planning to make this winter a successful selling season, contact me. 

Price It Right, or Take Less

Price Aggressively to Get the Most From Your Sale

Pricing your home is one of the most crucial decisions when putting your home on the market here is San Luis Obispo County. The price is usually the first thing buyers notice about your property. If your home is not priced correctly, it turns away potential buyers and could be stigmatized by sitting on the market too long. Price reductions at this point usually mean you will end up taking less for the property than you would have if you would have priced it aggressively in the first place. If you price your home at or just below market value, you can save carrying costs, mortgage payments and other ownership costs that you will incur the longer the property sits on the market.

The optimum listing price of your home should be based on careful analysis of the current market, comparable homes including the asking and selling price of recently sold properties as well as the current inventory of homes and the different features of the properties. While our inventory of listed homes in San Luis Obispo County is low, this does not mean that buyers will over pay for your property.

When a property is priced properly for any market in San Luis Obispo County, it will encourage prospects to act quicker to sell sooner. Some sellers even “underprice” their property to bring in multiple offers. We definitely have seen this result in several offers within a few days of listing the property. Most serious buyers are well educated about asking prices in the areas they are seeking. They will not waste their time on a home they consider overpriced. However, buyer’s fear they might lose out on a good home when it is priced right and they are less likely to make “low ball offers”. Better pricing can attract multiple offers!

Bottom line, if a home is priced right, the excitement of the market produces a higher sales price. You net more both in terms of actual sale price and less in carrying costs. Remember, be realistic and aggressive in pricing your property and understand that your price should always reflect the current market situation.

How to Sell Quickly and for Top Dollar in San Luis Obispo County

Make more money by preparing your property for market

When I visit a property that a seller wants to list for sale, I look at it with an eye for moving it through the market.  If the property is prepared and priced right, it will sell quickly. In real estate, quickly usually means for a higher price. While touring the property, I think about what I would add, remove or change, inside and out.  As a Realtor, I know what I need to do to properly market the home;  enter it into the MLS, signs and flyers, exposure locally and world wide.  When I list a property for sale I work hard to make sure all the marketing pieces are in place. But no matter what I do, if a property is not prepared or is priced incorrectly, all the marketing in the world won’t move it.  Buyers are looking for the best property at the best price in their budget. Sellers can really make a difference when preparing their home for the market. By investing a little time and money, the sale will go smoother and more quickly; and hopefully will net a higher market price. That is of course if you price it competitively right from the start. Here are the most common things that should be done, or at least considered.

1. Pack it Up and Get it Out.

   Pack up what you don’t need to live day to day. Think of it this way, you’ll have to pack it up when you move, you may as well get going on it right away. Pare down your furniture and decorations. Be ruthless.  Lean and clean is what you are aiming for. Take down family portraits or at least limit them. You want the buyer to see themselves in the property.

    

2. Yard Clean Up.

   

   Clean and Green

   Spend a day and trim all overgrown plants. Get the weeds out, and mow the lawn.I would get a few flowering plants to set in near the front door. Bark chip all the flower beds. If you don’t water much, start doing it right away; it is amazing what a greened up yard can do for your sale. Put all those toys, tools, and BBQ stuff away. Again, pack up and get out what you don’t need right now. Lean and clean and green.

    

3. Paint is Cheap.

   The biggest bang for your buck in freshening your home is paint. Get the bright wild personalized colors out. Go for a nice neutral palette, even if you hate it. You are neutralizing your home so buyers can see themselves living there. If the paint is neutral, but old and scuffed, go for a fresh coat with a modern neutral. Exterior painting is more difficult, but painting just your front door will help.

    

4. Repairs, Not Surprises.

   I would recommend that you get a home inspection and a pest inspection before putting your home on the market. That way, you will know what needs to be fixed, and you can present these inspection reports with your completed repairs listed to the potential buyers. The buyers will be reassured from the start that the home is in reasonable working order.

    

5. Clean, Clean, Clean.

   

   If the carpet is really worn and stained, replace it with inexpensive carpet. Otherwise, have it cleaned. Wash the windows. Make sure the home is ready for showing at all times. Beds made, no dirty dishes, everything in its place. No weird smells. Shiny clean bathrooms and kitchen. If any fixtures are beyond cleaning or leak, go get new ones.

    

    

   Simple common sense stuff, right? Not easy though. it is a lot of work to get a property ready for the market. But if you go through and prepare your home, you will reap the benefits of a quick sale and with that quick sale, top dollar!