I feel a change comin’ on. – Bob Dylan
Just like the wind that’s blowing across Ventura County right now, the real estate market is moving in a new direction. Here’s what I’m seeing.
Prices Have Leveled Off
For some time it has been a very strong seller’s market. When pricing homes you could look at the last handful of sales in a neighborhood and tack a few tens of thousands and just like that, you’d have buyers fighting over it and you’d be in escrow before you could say “equity”.
The last couple of months we’ve started to see a flurry of price reductions and sold values under the asking price. The buyers who used to be fighting over properties are now being romanced like a reality dating show with sellers hoping they receive the final rose.
Requests for Repairs are Being Answered
During the escrow process the property goes through inspections. The inspections identify issues the home might have and so the buyers can make an informed decision on whether or not the home meets their needs. It is also an opportunity for the buyers to ask the sellers to repair items they feel are important before the sale goes through.
Having been on both sides of this process many times I remember this process going very differently a few months ago. I would caution buyers to be very careful in what they requested, focusing on only health and safety issues, because anything more than that could potentially upset the seller and put the home back on the market and back to the drove of buyers waiting in the wings.
Sellers are now finding themselves put in a difficult position now because those droves of buyers don’t seem to be there right now. Because of that the laundry list of repairs doesn’t seem so ‘out of bounds’. Depending on the seller’s motivation they are more willing to hear the buyers out and in the process accept more of the repairs as part of the cost of doing business in today’s market.
New Regulations are Protecting the Buyer
TRID is here and long story short, it requires a new disclosure being presented to the buyer from their lender that outlines all costs of the sale much earlier in the transaction than before. This is a good thing, but does present a challenge to sellers to provide information in a more timely manner and can add days or sometimes weeks to a transaction when not executed correctly.
Interest Rates Continue to Be at Historic Lows
Money continues to be cheap and it looks like it will stay that way until the end of the year. We are in rare air here as there has not been a better time in some time to purchase a home at a great price and not have to pay through the nose to get it.
So What Does This All Mean?
You guessed it, we are in a buyer’s market. So if you have been on the fence about buying it’s time to come down and start looking.
Should sellers run and hide? Absolutely not. Ventura County continues to rank highly as a great place to live and continues to be in high demand. Can you list your home for $5o,000 over what the last home in your neighborhood sold for? No, but if you price your home right and repair the loose odds and ends to alleviate any doubt in a buyer’s mind you can also strike while the iron is hot.
Need a Navigator in All of This?
Of course, I’m here to help you on whichever side of the ball you find yourself. If you are looking to buy please go to my website at www.sambenner.com and feel free to search among many great deals out there right now. If thinking of selling go to www.venturacountyhomevalue.com and instantly find out what has sold recently in your neighborhood, no questions asked.
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