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How a seller views your offer.

How a seller views your offer.

As a home owner and particularly a home seller in Laguna Niguel or Dana Point, you have probably become aware of the low inventory of homes on the market. This has resulted in more of a seller’s market. What about homes that are not selling? Bluntly, there must be a problem with the location, the condition or the price. If a home is in attractive condition and priced fairly it is entirely possible the seller will have multiple offers. If the price is under $500,000 it is possible to have too many offers. How will a seller view your offer? The first thing the seller will notice is the PRICE and TERMS. Price is simple and straightforward as long as you show proof of funds. What about terms? That is a little more complicated. Of course cash is king if all else is equal. Why? Because it avoids loan underwriters and appraisers and can usually be closed faster. Second, if there is a loan, WHO is the lender and what PERCENTAGE DOWN do you have? Why does that matter? If there is 20% down or more there is no second underwriter involved over at the MORTGAGE INSURANCE Company. Less than 20% down will require that second look and review. Non-local lenders can be slow and far less responsive to the contractual time frames. Third, what other terms are offered? A buyer’s agent should determine what is the optimal time and date for closing and whether the seller needs a rent back after closing. The seller will also look at what contingencies are exercised in the contract. Maybe the buyer...

Where are the homes?

Where are the homes? Yes, low active real estate inventory is still the buzz, but where are the active listings priced? These statistics might surprise you, they did me. Laguna Niguel has one hundred active detached homes for sale on April 11th. Forty-five are below one million dollars, twenty seven are between one & two million, ten are between two & three million and eighteen are above three million. Wow! Now considering that there are eighty-four pending sales under one million it is no wonder homes are selling quickly. From one million and up there are fifty-five active listings and only nineteen in escrow. Dana Point has ninety active detached homes listed and amazingly only fifteen are below one million dollars. Thirty-seven are in escrow under a million. 55% of the active listings in Dana Point are OVER two million. Wow again! If you are shopping for a detached home under $750,000, you will only find twenty-four active listings in Laguna Niguel AND Dana Point combined. Laguna Niguel has thirty-one condos for sale with sixty-six in escrow. Dana Point has twenty-nine condos for sale with twenty-eight in escrow. Real estate sales and values are always a function of supply and demand. Remember “price” is what is being asked and “value” is determined by the buyers, whether above or below the list price. Ron Buck, Realtor® Ron Buck has been a real estate broker for 16 years with over 450 successfully completed transactions. He is a 11-year resident of Laguna Niguel and is an expert in south Orange County real estate. You can contact him at Ron@JonRonRealEstate.com or...

HOME PRICE DISCREPANCIES IN LAGUNA NIGUEL

Home Price Discrepancies in Laguna Niguel If you are a potential home buyer or seller you probably have noticed a wide variance of prices, and a discrepancy within neighborhoods for the same types of homes. Every home is unique, so the price of one which has been updated should be considerably higher than one that is original. Also location and views play a large part. Remember we are in a rapidly changing market. Think of a “U” shaped curve. As foreclosures were increasing and prices were falling every sale was less than the last one. Now we are on the upward side of the curve and every sale is higher than the last. The low inventory, all-time low interest rates and high demand are launching us into a vertical market. Here is something else to keep in mind. While we are sure to see some short sales and foreclosures trickle on the market for the next three years, there are much fewer on the market now. Right now there are only 21 active condos for sale in Laguna Niguel, and they are ALL Standard Sales except one Short Sale. There are 66 condos in backup and pending status and about half of those are short sales. Detached homes are the same. There are currently 102 active detached homes of ALL prices. How many of those are distressed sales? – 1 short sale. There are 97 detached homes in escrow of which 13 are distressed sales. The good news is that many previously underwater home owners are no longer under water. I was evaluating a small neighborhood of detached homes...