Buyers /

Timing The Market

Are you dreaming of owning a home? Buying a home in an ascending market where demand far outpaces supply is anxiety provoking! My best advice is to take proactive steps to meet your goal and let go of what you can’t control. When I was buying my first house at 25, my broker called me and said “You HAVE to lock now, interest rates just fell from 7% to 6.75%. Guess what? Mortgage interest rates remain at historic lows, even if they are starting to increase gradually. In short, timing the market is nearly impossible in the short run, and in the long-run property values nearly always appreciate faster than the stock market. Property also acts as a hedge against inflation, so is a great place to park your money if you expect other prices (food, energy, commodities) to continue to increase.

Here are a few tips to keep things moving forward without allowing your anxiety to consume you:

  • It is never a good idea to try to time the market. I do not advise waiting for rates to go down further or for prices to drop – it’s more likely the inverse will happen.
  • Apple stock was $12 a share in 2011, now it’s $160 a share, and that doesn’t account for share splits which would make it even more valuable. People who didn’t buy because they thought the stock was at peak value or would decrease in value missed out on a great investment opportunity.
  • Get a local lender recommendation from your agent and get pre-approved. If possible, request to be fully underwritten which constitutes a robust file review and can uncover potential issues in the escrow process.
  • Once you have your underwritten pre-approval, speak with your agent to understand what listing price to target to stay on budget. Most homes in the Inner East Bay sell between 30-50% above the list price.
  • As always, make sure you are connected with an experienced, local agent who can deftly advise you on your goals.

Begin building equity in a home now! I can help you avoid timing the market to navigate this highly competitive market. I get my buyers into contract on their first offer more than 70% of the time. Reach out for a personal consultation to learn more.

Buyers /

Property Disclosure Through an Agent’s Eyes

Many of my buyers ask me how to make sense of the many documents that are included most property disclosures. While I advise my clients to read every document in the packet, there are some items that are much more important than other in evaluating the condition of a particular property. Check out my tips below on which reports I review to get an overview in just a few minutes.

Financial Review /

A Return to ‘Normal’? Real Estate Forecasts for 2022

Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that caused home prices to soar nationwide by a record 19.9% between August 2020 and August 2021.

However, there were signs in the fourth quarter that the red-hot housing market was beginning to simmer down. In the month of October, only 60.3% of sales involved a bidding war – down from a high of 74.5% in April. While this trend could be attributed to seasonality, it could also be a signal that the real estate run-up may have passed its peak.

Home Improvement /

20 Unique Home Gifts for Every Person on Your List

Every year, it seems the holidays sneak up on us—and every year, that brings with it the dreaded last-minute panic around buying home gifts. Finding a present that hits all the right notes can be surprisingly stressful, even when it comes to people you’ve known for years.

Buyers /

The Importance Of A Home Appraisal And The Role Of AMCs

Over the past several years, we’ve seen homes sell for unheard of prices due to a shortage of inventory combined with historically low mortgage interest rates. This imbalance between supply and demand has driven up prices and forced buyers to aggressively compete for the few homes being offered for sale. This often means waiving all contingencies to improve the desirability of a purchase offer. Unfortunately this leaves prospective buyers in a precarious position in the event that the home appraisal doesn’t match the price offered.

Buyers /

New Construction Home or Existing Home?

Homebuyers today are facing a huge dilemma. There simply aren’t enough homes for sale. So should you buy a new construction home or an existing home?

Nationwide, there were 1.27 million active listings in September, down 13% from the previous year. According to the National Association of Realtors, that’s about 2.4 months of inventory, which is far less than the six months that is generally needed to strike a healthy balance between supply and demand.

Buyers /

Understanding a Buyer Net Sheet

I am often asked to estimate the total closing costs involved in purchasing a home. Many of my clients are first time homeowners and don’t have the experience of working with lenders or going through the entire escrow process. Relatively early in the real estate journey, I will request a ‘buyer net sheet’ from the title company to estimate all of the costs associated with a transaction to give home buyers a better understanding of how much they will actually spend at the conclusion of the deal.