2019 Coachella Valley Annual Real Estate Report
and 2020 Projections
Coachella Valley Real Estate Market
Our market has become more year round with the number of sales during the summer months exceeding sales during “season” in the past two years running.
WHO WERE THE HOME BUYERS
Remote Owners represented 50% of our home buyers who were looking for a second home or investment property. Nearly 68% of those Remote Owners came from other California cities, followed in numbers by Washington state. Canadian Home Buyers are making an appearance again, with 14% of the Remote Owners coming from Canada.
Home Buyers from other metropolitan markets; especially our drive markets such as Los Angeles, Orange County and San Diego see great value here in Coachella Valley Real Estate. Baby Boomers are cashing out from other areas, and looking for a Lifestyle in their retirement; that’s largely what’s driving home sales in the Coachella Valley. Our sunny blue skies are pretty inviting, compared to snow and rain in other parts of the country.
WHAT WERE THE HOME BUYERS LOOKING FOR?
Bigger is not necessarily better in the case of our home buyer demographic. Aging Boomers want a simpler lifestyle and a home that requires less maintenance. Great Room Living, Each Bedroom with en-suite baths, Master Suite separate from the Guest Bedrooms, No Stairs and Light and Bright inside – with the current design trends showing Sleek White Gourmet Kitchens. Outdoor Living is a Must with Covered Outdoor Seating and Outdoor Kitchen / BBQ, most home buyers want a private pool and Views.
HOME BUYERS WANT TO BE WHERE THE ACTION IS
With more and more commercial development and signature events going on here in the desert, growth is on a fast pace and home buyers want to be where the action is. The Coachella Valley has an attractive lifestyle and home prices are a bargain comparatively speaking.
COACHELLA VALLEY REAL ESTATE BY THE NUMBERS
2019 Coachella Valley Real Estate had 9,787 sales. That number is down about 5% from the 10,295 units that sold in 2018. The reason is mostly due to a lack of inventory, (3.9 month supply of homes on the market), but price sensitivity is also a factor.
VALLEY HOUSING INVENTORY
January 1, 2020 there were 3,200 units for sale vs 3,398 units for sale January 1, 2019. The valley median price for detached homes was $425,000 up 9% in 2019. Median prices for attached homes was also up, 2% at $279,000.
The Luxury Home Market has seen in increase in both home value and sales. The California Desert Association of Realtors reports in the million dollar plus market, there was a 22% increase in sales in the 4th quarter of 2019.
|Coachella Valley Luxury Country Club Sales 2019 vs 2018|
|COUNTRY CLUB||2018 SALES||2018 AVERAGE SALE PRICE||2019
|Andalusia||32||$ 1,439,578||27||$ 1,581,415|
|BIGHORN||36||$ 3,892,153||31||$ 3,688,519|
|Eldorado CC||4||$ 1,713,750||16||$ 2,260,250|
|Indian Wells CC||45||$ 1,154,953||23||$ 1,044,192|
|Ironwood CC||22||$ 958,364||18||$ 1,422,800|
|Mission Hills CC||30||$ 914,666||44||$ 1,043,920|
|Mountain View||42||$ 881,012||25||$ 866,619|
|PGA West||121||$ 890,691||111||$ 964,449|
|Tamarisk CC||14||$ 1,090,643||12||$ 1,181,742|
|The Citrus Club||46||$ 871,464||48||$ 900,020|
|The Hideaway||28||$ 2,434,571||44||$ 2,467,545|
|The Madison||8||$ 6,275,000||6||$ 6,529,167|
|The Palms||9||$ 873,333||9||$ 821,555|
|The Reserve||11||$ 1,750,000||14||$ 2,176,607|
|The Quarry||2||$ 2,856,750||2||$ 2,492,500|
|Thunderbird CC||7||$ 1,640,000||5||$ 721,800|
|Toscana CC||37||$ 1,965,600||38||$ 2,171,903|
|Tradition GC||22||$ 2,409,431||22||$ 2,449,045|
|Vintage CC||11||$ 3,271,818||13||$ 3,081,154|
The National Real Estate Outlook
Home prices increased across the country in 2019 and experts predict the National Housing Market will remain strong through 2020 in the January Forbes article: “Five Housing Market Predictions for 2020” they cite crazy rents in the luxury apartment market is driving Millennials to buy instead of rent. More aging Baby Boomers are expected to sell their homes looking to transition into smaller homes with less maintenance. Some estimates say as much as 27% of the housing inventory in the country could hit the market between now and 2040, easing the housing shortage. The National Association of Home Builders report home builder confidence is at a 20 year high, paving the way for a boom in new home construction. That combined with low mortgage rates the outlook for 2020 is strong.
California Real Estate Outlook
The median home price in California was up about 4.1% in 2019, while the number of sales were down slightly. The California Association of Realtors forecast a similar uptick in prices through 2020. Housing affordability, (just 32% of households can afford a median priced home), and low inventory have been an ongoing challenge in California, mortgage interest rates at near historic lows are giving home buyers more buying power.
DESERT REAL ESTATE MARKET REPORT
2018 Year in Review
As we start 2019, it’s time to take look back at how the Desert Real Estate Market performed last year and look for developing trends.
In 2018, there were 5,836 single family home sales throughout the Coachella Valley. Those homes sold at an average of $610,300 and an average of $260. / Sq Ft. Homes that were priced correctly for the market, sold on average in 89 days. The highest sale price in 2018 was $12,000,000 for a home located in The Madison in La Quinta.
With those statistics, we compared 2018 sales to the previous year and found that while the number of sales were down slightly overall, (2%), Selling Prices were up 10% and the price / sq ft was up 8%. The time it took to sell was down 10% from the year prior. The highest priced home sale in 2017 was $8,700,000. for a home located in The Vintage Country Club in Indian Wells.
While prices are up, inventories remain low as compared to this time of season in years past. Historically when the inventory of homes for sale is low, prices tend to rise due to the pressures of supply and demand.
Interest rates also play an important role in how markets perform; rates are still low despite the fact that the Fed gave us 4 rate increases in 2018. As rates increase, buyers can afford less house for the same mortgage payment, which ultimately puts downward pressure on home prices.
But good news, rates pulled back a bit this week. Conforming loans, (up to $484,350) for a 30 year fixed rate is still just 4.47%.
The Coachella Valley has long been viewed as a destination for the soon to retire and already retired home buyers looking for an active lifestyle, but with the increase in mobile commuting, people can work from anywhere. We’re also seeing more young home buyers who are looking for a quality lifestyle, moving to the Desert full time. Easy Freeway and International Airport access makes that possible.
Combine the Lifestyle that only the Coachella Valley offers along with affordable home prices – the Valley is and will continue to be a destination for both full time residents, second home buyers and
We have a strong and steady real estate market here in the Coachella Valley.
If you would like more detailed information about your neighborhood specifically, drop me a line – we just finished our 2018 “Year in Review” Market Report, I’m happy to send you a copy.
Broker Associate with Bennion Deville Homes
SUMMER STAGING TIPS
Did you know that more than 50% of the desert home sales happen during the summer months? The desert summer real estate market is as hot as it is outside; knowing how to present your home for sale will be an important factor for you to ask and receive top dollar.
Top 6 Summer Staging Tips
Keep it cool as a cucumber. no one wants to walk into a hot house. All of a sudden, they’re thinking how do I get out of here instead of looking at your home. Now is not the time to skimp on energy bills.
Show that the grass is greener. High water costs and water conservation are hard on our summer desert landscape. However, keeping at least the front landscape looking fresh and lush will make your home stand out as the gem. The curb appeal will lure them in.
Set the Mood. set up a refreshing beverage station for your hot and tired home buyer’s and their agents. Place a vase with fresh flowers. Have a pitcher of Ice Tea or Lemonade with lots of ice and pretty glasses set out just before your showing.
Visual Power. Use fresh flowers in as many places througout your house as you can. Make sure your home looks fresh, cheery and refreshing as possible.
Making Scents. Aromatherapy can help make your home more alluring. Scents like Citrus, Eucalyptus or Rosemary say summer. They add a clean refreshing scent to your home.
In the Swing. There is an intimate relationship between music and marketing. Music can evoke an emotional response. The awkward sound of heels on a hard floor is hardly inspiring. Heighten the senses of your buyer with background music, it changes the ambiance and heightens the senses and mood of buyers touring a home. Music has a persuasive impact and can create an illusion of life inside your home for buyers increasing their emotional attachment. The music you play is important, pair the music style to the style of your home and the buyer’s you’re targeting.
Summer Desert Market Report – Median home prices rose for the 8th straight month. Up 9.6% from last year. The hottest cities for sales by volume were Palm Desert (233), Palm Springs (213), La Quinta (156), Indio (131), Rancho Mirage (97). Each city and each community has its own story some communities have seen huge growth, while others are relatively flat. The cities that had the largest price increases, have seen the number of sales flatten, which tells us that prices were getting ahead of the market.
Inventories are down again putting upward pressure on pricing. Overall the desert has seen a decline in the time it’s taking to sell, nicely presented homes in a good location and priced well are selling quickly. Currently there is a 3 month supply of homes for sale in the desert, which puts us in a “Sellers Market” as we head into season.
The Fed has indicated there will likely be two more interest rate increases before the end of the year, which could start to weigh on the market and slow sales until the shock is absorbed.
Southern California and specifically, the Coachella Valley continues to be a sought after destination for a second home get a way.
As we head into our “Season”, we expect to see continued strong home sales and price appreciation valley-wide.
How’s your neighborhood doing? Send me an email, I’ve got the details!
Staging your home during the holidays can be a challenge; it’s never fun to have your home on the market during the Holiday – it adds more stress to what can be an already stressful time of year. Many home sellers will take their home off the market during the Holiday Season and restart after the new year; which provides an opportunity for you to sell your home while there is less competition.
Unless you’re a Scrooge, we all like the glitter lights and colorful accents during the Holiday’s, it makes any home look more cheerful and inviting.
But, there are particular ways to decorate for the season that can make you happy and get your potential buyer excited about your home too.
Here’s a Crash Course – Essential Guide to Staging Your Home During the Holidays with ways to decorate your home for the Holiday without turning off your potential buyer.
1.) Less is More always holds true when staging your home to sell, but never more true than during the Holiday’s when we usually break out the full glitz and glam. Enhance features of your home with simple elegant touches. Such as, a Crackling Fire in the Fireplace with a simple vase of white flowers with Evergreens on the mantle adds the Holiday scent to the air and makes your home look and feel warm and cozy. A tall tree can highlight your volume ceilings.
2.) Celebrate with Color by complementing your current color palette – Make sure your Holiday collection matches your current decor. If your home is painted an ocean blue, skip the clash of red and green. Choose instead Branches, Pine cones, white accents with crystal, and silver. If your home is earth-tones, accent with rich tones including fresh greenery with cranberries and gold.
3.) Create a Cozy Vibe – A few subtle touches like a bowl of pinecones, an evergreen wreath, fire in the fireplace and a pot of cider simmering on the stove can say “come hither” to a potential buyer by creating a warm and festive feeling in your home.
4.) Light on Lights – While your home is on the market, Keep the inflatable snowman in the attic. One person’s “merry” is another persons “tacky”. Use simple white string lighting to play up your home’s architecture or draw attention to the beautiful landscape with mature trees.
5.) Keep it Simple – While your home is on the market, you’ll want to keep the knick-knacks, nativity scenes, stockings with all the kids and grandkids names, holiday cards packed away. Don’t feel obliged to hang every last ornament on the tree or display every decoration you’ve accumulated over the years, save them for next season in your new home. Limit yourself to a few well-chosen, elegant hints of Holiday Flair.
6.) Depersonalize the decorations – Think of decorating your home as packaging a product for sale, not personalizing one. Your personal life should not be prominently featured throughout the home. Remove the named stockings hanging on the mantle and overtly religious symbols. Find an out of sight place to collect holiday cards as they arrive, save photos of the grandkids first Christmas for next year in your new home.
Staging your home during the holidays and selling a home during the holidays can be a challenging experience, but it’s not impossible. If done well, decorating for the holidays and keeping your home on the market during the season can actually work to your advantage while there is less competition on the market.
Want more insider tips and tricks on staging your home to sell? Get a Free copy of our Essential Guide to Staging Your Home During the Holidays
HOME SALE NEGOTIATIONS
Home Sellers Want the Highest Price and Home Buyers Want a Deal.
How Can They Ever Find Common Ground?
THE TUG OF WAR BEGINS!
The foundation for any negotiation starts with the data, the black and white of it all. Then it becomes a dance of personalities, emotions, and skill.
At the end of the day, Sellers want to sell and Buyers want to buy and both have the goal to close the deal. It’s the in between that can get a little murky along the way.
In every market, one party has the upper hand; in a Buyer’s market, there are lot’s of choices and it can be easy for the Buyer to walk away in favor of the home down the street. In a Seller’s market, inventories are tight with limited choices, which can create multiple offers or bidding wars and the Seller can be picky about the price and terms.
Typically, in any kind of market, a truly motivated Seller is less inclined to want a lengthy negotiation, they just want to get the deal done.
TOP 10 THINGS TO KNOW WHEN YOU’RE
NEGOTIATING YOUR NEXT REAL ESTATE DEAL
PRICE – it means different things to different parties. The Seller wants the highest price and the Buyer wants to pay the least amount possible. They don’t want to overpay or price themselves out of a resale when it comes time for them to sell.
CLOSING COSTS – Buyers will pay the prepaid closing costs for their mortgage. Items like taxes and insurance. The Buyer might ask for a flat amount paid by the Seller to go towards their closing costs; up to 3% of non-recurring closing costs are allowed by the lender. In this case, if the Seller is asked to make a concession, that will typically end up in a higher sales price for the Buyer.
CLOSING DATE – Sellers may want to get out from under the monthly costs as quickly as possible to preserve their capital. Buyers, when getting a mortgage will pre-pay the first month’s mortgage payment so they don’t have to make their 1st mortgage payment until the 2nd month, in this case, the Buyer will likely want to move in at the beginning of the month so they can skip the next month.
FINANCING CONTINGENCIES – Buyers who are getting a mortgage are competing with all cash offers, which is more appealing to any Seller knowing that there isn’t a financing contingency. The best way for a Buyer to compete is to get complete loan approval prior to making the offer, that way they can move quickly to remove or waive the financing contingencies.
APPRAISAL CONTINGENCY – If the Buyer is getting a mortgage, the Seller can push the Buyer to waive the appraisal contingency. On a conventional mortgage, banks will lend 80% of the appraised value or the purchase price, whichever is lower. But if the house doesn’t appraise for the contract purchase price and the appraisal contingency has been waived, the Buyer must come up with the difference. Any shortfall would have to be paid in cash by the Buyer.
HOME WARRANTY – The Home Seller will typically provide a one year home warranty that covers the mechanical’s, appliances and pool equipment. This is a “Peace of Mine” insurance policy for the home seller in case something goes wrong.
LEASEBACK – The Seller may need a little extra time to make the move, especially if they’ve lived in the home for many years. The Buyer could offer a zero cost rent back for 30 days to entice the Seller to accept a price that they may not otherwise accept.
REPAIRS – When a home needs a lot of updating, the Buyer has a lot of room to negotiate if the home is priced on par with properties that are updated. If the Kitchen and Baths are out of date, the appliances are old and there’s popcorn on the ceilings the Buyer will make a lower offer to accommodate the repairs necessary. The Seller can price the home accordingly ahead of time and say they won’t make any repairs, in this case, there will be less room to negotiate on price.
FURNITURE – Negotiation over personal property such as the furniture has killed more than one deal, this is when emotions can get heated. It’s best if the Seller will consider selling the furniture to make out a list of items and their prices ahead of time. An important note here, a lender will not lend on personal furniture. If there will be personal property transferred it must be done outside of escrow with a bill of sale.
APPLIANCES – The stove, dishwasher, built-in microwave and any other built-in appliance will be included, but a free-standing refrigerator or the Washer and Dryer don’t necessarily. Seller many times will wait to see how the negotiation goes first before they commit.
INSPECTION CONTINGENCY – Buyer’s remorse and waiving their home inspection contingency generally go hand in hand. It’s never a good idea to waive the home inspection unless it’s a complete remodel and you re a skilled investor / contractor / remodeler. But the Buyer can shorten the time frame for the inspection from 17 days to maybe 10 or even 7 days.
HOA ASSESSMENTS – If the home is in a homeowners association – there could potentially be special assessments in place or coming up. The Buyer may ask the Seller to clear the assessment, paying it all. This can be negotiated between Buyer and Seller for who pays and how much they pay toward the assessment.
6 Signs You Might Be Your Own Worst Enemy When Selling Your Home
You’ve Had Your Home on the Market for a while now and all you hear are crickets….. very few showings and no offers. What’s the problem?
The Bad News? You could the problem.
The Good News, you’ve got the power to fix it.
1. Do your Listing Photos Make an Old Polaroid Look Good? Buyers cruise for homes from the couch. If your online photos look like a 4-year-old took them, you’ll lose buyer interest before they ever pull up to the curb. That’s why it’s important to work with a pro who knows how to make your home shine on camera. You’d be amazed at the difference the right lighting and a wide-angle lens can make when selling your home.
2. Buyers Can’t See the Counter for the Clutter. Let’s play a game of pretend. Imagine you’re about to move. What’s the first thing you do? Pack up! So here’s an important strategy, Start packing now! Every little thing you have sitting out shrinks your space and reminds buyers that someone else lives there. It’s time to give your stuff an eviction notice! Clear off every surface, get your furniture out of the way, and tidy up all storage areas.
3. Your Home Smells Like Warm Cookies and Wet Dog Your pup may be the cutest craze on YouTube, but cute doesn’t move real estate. If you want to attract buyers, you’ve got to pretend Lassie doesn’t live here anymore. Keep pets out of sight and out of mind by eliminating odors, stains, and half-chewed rawhides before your first showing. think about maybe sending your fur babies to Grandma’s house for an extended stay until your home sells.
4. You’re setting the wrong mood. Dark corners are not your friend. Bright rooms make your home look bigger when selling your home, so throw back the curtains and shine a light on every nook and cranny! Start by filling lamps and overhead fixtures with 100-watt bulbs. Add a warm and cozy feel with a few candles and a fire in the fireplace.
5. Three’s a Crowd – News flash: You and your home are not a matching set! Sticking around for showings does nothing but make everyone feel awkward. Leave the questions to the agent and give the buyer room to look around without you breathing down their neck. After all, do you really want to stand in the way of the buyer’s ability to see your house as their dream home?
6. The Price is Wrong – It’s hard to put a price on the place that’s housed so many memories over the years. We get it! But it’s time to set sentiment—and your mortgage statement—aside and be realistic about what someone will pay for your home. An experienced real estate agent will help you price your home competitively based on current market values.
If you’ve had your desert home on the market and aren’t sure why it hasn’t sold, we can help. Give us a call today to find out more. Call Cathi and Ben Walter (760) 218 – 5752 or send us an email we’re happy to help.
Kitchen and Bath Design Trends…
Each year, all the major Kitchen and Bath suppliers come together for The National Kitchen and Bath Show, the “Design and Construction Week” is the place to be and be seen for Architects, Designers and Contractors to meet and greet new suppliers, spot new Kitchen and Bath Trends and designs for the coming years.
According to KBIS, (Kitchen and Bath Industry Show), and NKBA, (National Kitchen and Bath Association) There are several developing trends you’ll want to take into consideration if you’re beginning a new remodeling project. Here are the biggest Kitchen and Bath Design Trends they see that will carry you into 2018 and beyond.
SAY FAREWELL TO GRANITE COUNTER TOPS!
We’ve seen the transition away from granite for about 2 years now. Quartz is now the number one trend and is here to stay for a while. It’s durable, there are many finish choices and Quartz gives your Kitchen and Bath a fresh new look.
BELIEVE IT OR NOT, BRASS IS BACK!
Yep, it is hard to believe. The trend started about a year ago, we were seeing hints of Blush Blonde accents, (they were trying to ease us 50 something’s into the transition), now bold brass is everywhere you look, from furniture accents to full on Lighting, Plumbing Fixtures and more. Chrome and satin still reign supreme….for now, but if you want to lean into the trend ahead Brass is it!
STONE SINKS STAND THE TEST OF TIME
Carved stone sinks are where the trend is headed. Porcelain is still classic and will withstand the test of time but the new hot trends are stone.
BLEACHED WOOD WITH CONTRASTING FINISH CABINETS
A huge trend showing up for 2018 is bleached woods and two tone cabinets. White has come and is now on its way out.
The biggest trend in Kitchens and Baths right now is color, especially blues. It’s showing up in everything from cabinets to appliances.
COLOR IS EVERYWHERE
Cabinets Faucets, Appliances, and even Sinks.
WHITE SUBWAY TILE IS ON ITS WAY OUT
Finally, boring white subway tile is on its way out, Texture, color, pattern and unique design are the hottest trends for back splashes and more.
Selling a home in the desert has unique opportunities and perhaps some challenges as well. Home Buyer’s may or may not be full time residents, this might be their weekend get away for the family or a winter respite; they may be more willing to try the newest trend as a departure from the style and design of their main home.
The main thing to remember in any remodeling project, they must blend well and look like they belong in your home. While the newest trends are exciting, incorporating them into your existing home can be a challenge so the remodel doesn’t stand out like a sore thumb. The project needs to fit with the overall style of your home. For example, if you have a Spanish Hacienda, remodeling the Kitchen to look like a sleek mid century modern may not be the best choice for re-sale. Likewise, remodeling your Kitchen to state of the art Chef’s Kitchen, while the rest of the house and bathrooms remain 1980’s vintage can thwart your best intentions if you’re looking for top dollar on resale.
Before starting a remodeling project, consult with a designer yes, but also consult with your realtor! Everyday, we see and hear first hand what works and what doesn’t; we hear directly from our Buyers what they’re looking for and where they see value. When you’re thinking about selling your home, often times it’s some of the smallest things that will give you the biggest return.
As one of the leading teams in the desert real estate market and staging professionals, we work with our home sellers to help bring focus to the highest value projects for the best return on investment. We are local Professionals and offer a Full Suite of Services for our clients, as we did for this client at La Casa Feliz in Thunderbird Terrace, Rancho Mirage, who did a major remodel and wanted to sell their home for top dollar.
If you’re thinking about selling your home in the desert, and want to talk about the latest Kitchen and Bath Design Trends for your home, give us a call today; (760) 218 – 5752. We’re here with information to share and happy to help. Get your copy of Desert Living Online, with an ongoing series of home staging articles and desert events. Drop me a line at Cathi@DesertAreaHomeFinder.com and we’ll be happy to keep you in the loop!
Being able to negotiate well impacts so many key factors of our lives and can certainly impact the outcome of Home Selling. Strong negotiation strategies will create a better outcome for you.
We are often guarded or reluctant to reveal much of anything; thinking this is the smart way to open a negotiation. It can actually have a negative impact on our outcomes and can inhibit trust between the parties. It’s human nature to match with reciprocity. People generally respond in kind to how we treat them. If we want to be trusted, we must first offer trust.
Revealing some information, even unrelated to the negotiation can improve your outcome. You don’t have to put all your cards on the table to start. But putting something of yourself out there – your hobbies, personal concerns, or hopes – can set a positive tone that creates an environment that is more conducive to agreement.
Sequencing or Ranking
Typically when we negotiate, we know what our key issues are and we Rank or Sequence them based on the importance to our circumstance. For example, if we’re trying to negotiate a purchase contract, we might say that the price is most important, and if we don’t agree, there’s no use to continue.
However, if your buyer has a deadline to move in within 30 days as opposed to 45 or 60 +days, you may want to reorder your priorities and be more flexible on your price if you know you won’t have another mortgage payment, property taxes, homeowners ins. or utilities to pay.
You can typically achieve better outcomes by being flexible on your ranking and leaving all the issues on the table as you move through your negotiation.
Target Price and Walk Away Terms
Do you have “walk away power”? Rarely will a price negotiation match what you want to clear, or what you need to buy a home where you’re going. Unless you’re in a super-heated Seller’s Market, the market is the market and is not reflective of personal circumstances.
Your Target Price is what you’re hoping for; your walk away price or terms is your reservation price. Often, we go into negotiations with one or the other. In real estate, we often say when an offer doesn’t come together over price, the seller has essentially bought their home back for the price that the buyer was willing to pay.
It’s critical to do the market research ahead of time, research based on firm data, will provide more confidence for you, in Home Selling, it will help you make better decisions in the moment, and help you be more clear about your limits.
Are you thinking about selling your home soon? You need a strong team like Cathi and Ben Walter, on your side with the skills and market knowledge it takes to negotiate a great outcome. Call us today to find out how our Marketing and Negotiation Strategies will Get Your Home Sold Quickly at the Highest Possible Price. Cathi 760.218.5752 Cathi@DesertAreaHomeFinder.com See What Clients Are Saying
#HomeSelling, #SellYourPalmDesertHome, #SellYourIndianWellsHome, #SellingYourHome
Tips on How to Deal with Low Ball Offers on Your Home.
You’ve worked hard to get your home ready to sell, studied the market and listed at a price you think is fair. Finally, you get an offer and it’s so low you think it must be a bad joke! You really want to tell them to go jump in the lake, but maybe not so fast.
Buyers will be Buyers and Negotiation is how selling a home works; low offers are better than no offers. The fact that someone wants to buy your home is a good thing.
4 Tips to Help you work with a low ball offer
1.) Control your emotions – Selling a home can be surprisingly emotional. You’ve spent years in your home, you’ve probably done a ton of work making your home special and you have a lot of great memories. All this can make the house feel like a treasure instead of a piece of real estate. But, when you’re selling it’s time to leave your emotional attachments at the door. You’re engaging in a business transaction and it’s a business negotiation. It doesn’t matter where the buyer starts it’s where they end up and the first person to lose their cool loses; so take a step back and let reason prevail.
2.) Assess the situation with your agent – How long have you been on the market? How many showings have you had? How many offers have you had? What is the current market value, has the market moved away from you since you went on the market? Look at the comps, Is this low ball offer fairly accurate with market comps? Now is the time to take a hard look at your position in the market and ask yourself if you’re being realistic?
3.) You are in Control – You may have found your next dream home and would like to move quickly, but don’t have to accept any offer you don’t want to. We said it before, it’s good news that you have an offer, you just need to figure out how to make it work if it’s possible.
4.) Make a Counter Offer – You don’t know, the Buyer may not be listening to their agent or they could be relying on Zillow or other online values. While most Real Estate agents understand the chances of Zillow pegging a real estate value accurately is very slim, buyers do not. Instead, they rely on data that is completely out in left field.
When you are confident you’ve priced your home correctly, you can hold the line close to your asking price. Typically, sellers will leave a cushion between the list price and where they expect it to sell. For the same reason the buyer is now bidding low because they too are expecting to meet somewhere in the middle. When you really want or need to sell meeting in the middle makes everyone feel like a winner.
Countering over asking price or not responding at all can be viewed as confrontational. It can make you feel better in the short term but they don’t work towards accomplishing the desired goal of selling your home.
The middle is usually what buyers are looking for, but if you counter in the middle they will likely counter once again below what was the middle. If, in your initial counter, you find the middle and add a little cushion from there the buyer can comfortably counter in the middle and you’ll be more likely to make the deal. They may even feel like a little above the middle works for them.
If after you’ve countered with something at least minimal and the buyer doesn’t come up substantially, you now know you’re wasting your time and can move on.
Having the right team on your side with the knowledge and experience it takes to bring a winning deal together will be critical when selling your home for top dollar. Call Cathi and Ben Walter today to find out how their winning strategies will get your home sold quickly for top dollar. (760) 21 8 – 5752