Real Real Estate Talk with Apryl Lopez

As summer winds down and the school season begins, I put together a handful of key real estate insights I noted this summer and my thoughts on what to expect this fall. Let’s get real…

 

It happens every year, don’t disregard the summer real estate market!

This summer there was a noticeable deceleration in buyer activity. Traditionally, summer can be a quieter period in real estate as people are preoccupied with vacations and other seasonal activities. For instance, a property in Santa Rosa perfect for a first-time homebuyer, received only one offer, contrary to expectations. However, the offer was a great offer and both sides were very happy when it was all said and done. This suggests that while buyers are still out there, they can be more reserved and selective, which leaves room for great deals and negotiations (that’s where I come in ;)). 

So it’s an election year…

With the upcoming election, there’s added uncertainty which could further influence market activity. Historically, election years can contribute to a slower market due to political and economic uncertainties.  I personally believe buyers are more driven by their personal financial priorities rather than political events, however the numbers don’t lie. If interest rates drop, this very well could spur a surge in activity, especially after the fluctuations in interest rates we have seen over the last few years. I think people are eager to see rates drop, for the buyers out there waiting on the potential of this, please be informed that if there is a significant increase in buyers to the market, prices of homes inevitably go up so make sure you account for a higher down payment, if necessary.   

Rate Buy-Down Strategies

A strategy gaining traction is the rate buy-down. This involves negotiating with sellers to offer credits that can be used to lower mortgage rates. This can make a significant difference in monthly payments, especially in a competitive market. Leveraging buy-downs can be advantageous in a market where competition is not as fierce, allowing buyers to secure favorable rates and save on their monthly expenses.

Contingent Sales and Equity Utilization

Understanding how to utilise home equity effectively is crucial for sellers, particularly those considering upgrading their homes. Contingent sales, where buyers make an offer contingent upon selling their current home, are becoming more common. This allows sellers to use the proceeds from their current home as a down payment for a new one without having to move out immediately. It’s essential for sellers to be well-prepared and understand the market trends to price their homes competitively and attract the right buyers. This strategy can be a lot to navigate but if you have a good real estate agent it should feel as straightforward as possible. 

Marketing and Timing

Effective marketing is vital for sellers in the current market. Pricing competitively and staging homes well can help attract more buyers. I recommend strategic pricing, as setting prices too high can lead to fewer offers and prolonged market time. Sellers should also be flexible with their timing and adjust their pricing strategy based on current market conditions, which shift from week to week.

The Seasonal Trends You’ve Always Heard About

Spring and fall are typically the busiest times in real estate, with higher buyer activity. However, for me, personal readiness and financial stability should guide the timing of buying or selling a home. The best strategy is to align real estate decisions with personal circumstances rather than waiting for market peaks.

The Human Side of Real Estate

A significant takeaway from my time as a realtor is the importance of understanding the emotional aspects of buying and selling homes. Sellers often have strong attachments to their properties, and while getting the highest price is important, finding the right buyer who will appreciate the home is equally valuable. Bearing this in mind it’s equally, if not more, important to look to the future when selling your home. Cherish the memories you made there while trying to not put too much focus into what you’re leaving behind.

Looking Ahead

As the year progresses, I will be focused on continuing to support clients effectively and making meaningful connections. Despite the financial aspects of real estate, my primary goal remains to assist people in finding homes that suit their needs and lifestyles. And I’m excited about what the Sonoma real estate market will do in the coming months.

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Preparing to Sell Your House in the Fall: A Sonoma County Guide

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Renting vs. Owning a Home in Sonoma County, California: A Comparative Overview