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Is It Possible To Time A Real Estate Market?

Is It Possible To Time A Real Estate Market?

As a local Laguna Niguel Realtor®, Ron Buck is in the trenches, so to speak, every day. Many times we Realtors® believe we feel the pulse of the market and that feeling is often verified in the media about sixty days later. Have we hit the bottom of the market and should you consider buying real estate? Please allow me to share this chart. The point is that when you are sure you have reached the bottom of the market, it will be too late to get the best price on a home. Consider that interest rates are once again below 4.5% for 30-year-fixed and you can obtain five and seven year ARMs in the 3s. If the market goes down 10% more and the rates go up 1% you will gain nothing. Remember, Laguna Niguel is a great place to live and if your time horizon is five years or more I, Ron Buck, have just one question for you: what are you waiting...

Two Real Estate Questions Buyers Always Ask

As a working Realtor for 16 years I have spoken to hundreds of real estate buyers. There are two common questions that always seem to be asked. First, buyers ask, “How long has this property been on the market?” Second, they ask, “What is the price per square foot?” These are not bad questions, of course, but there is so much more to it. Here are two better questions. What are the comparable sold properties in the area? The second, what is the inventory like in that price range? Here is another one. Is this the smallest home in the tract or the largest home in the tract? Price per square foot is one measurement but it can also be misleading. Today in Laguna Niguel there are 38 homes active on the market between $1 and $2 Million. The average price per square foot is $390. Also in Laguna Niguel today there are 49 homes active on the market between $700k and $1 Million. These homes are listed at $304 per square foot. Single story homes will always sell for a higher price per square foot than a comparable two story. Another deviation is that within any given tract the smaller homes will bring a higher price per square foot than the largest homes in the tract. Also don’t forget the all important remodeling, views and location. The low inventory we are experiencing is causing multiple offers on some homes, which I, Ron Buck Realtor, have written about in past weeks, but why would a detached home listed in the high $400k range linger on the market when there...

Laws of Nature

  Have you ever noticed this natural law? Whenever I order coffee to go there is about a 90% chance that the hole in the top will line up perfectly with the seam in the cup. Hence the stains on my dress shirt. I would expect 10% maybe but why 90%? It is a little-known law of nature. Have you ever noticed that when you feel it is safe to buy real estate again, so does everybody else? It must be a law of nature. Actually, it is said that fear of loss is the greatest motivator. During the summer of 2011 I, Ron Buck Realtor and Owner of JonRon Real Estate, was showing fantastic homes to prospective buyers and begging them to buy. There was very little competition and decent selection. Most buyers were afraid of a possible 5% drop in the market. Now, after the “business channel” proclaims a bottom to the real estate market things are quite different. When a super-nice property comes on the market today we see utter chaos. This week I, Ron Buck,  represented a buyer making an offer on a home in the $600,000 range. Believe it or not, there were 16 offers in 2 days. The listing agent expected maybe three and I guessed five or six. It must be a law. (A tip: Hire the best agent you can if you are a buyer right now.) Here is another law you will deal with now whether you like it or not. There are no appraisal comps. Don’t be angry, just remember this principle: Appraisers always deal with history. Realtors® always...