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QUESTION & ANSWERS
At the end of the day, the timeline really comes down to when the seller wants the cash in hand and the deadline for selling the home. We take that target date and work our magic from there. Our team tailors a plan, covering everything from getting the house ready for sale to marketing and the time it spends in escrow. Typically, around three months is a ballpark figure for the whole process in the Bay Area, but hey, we're flexible and can tweak things as necessary.
Our main goal is always to get the seller the most money possible. To do that, we look for offers that not only offer a good price but also have favorable terms and conditions. We consider things like buyer contingencies, who covers closing costs, and any other factors that might impact the seller's bottom line. We pick the offer that seems most likely to close the deal successfully.
Choosing the highest-priced offer without considering the bigger picture can backfire. If the highest bidder backs out or tries to renegotiate later on, it could harm the sale and the seller's profit in the end.
We have seen so much development and growth in the East Bay over the last five years that it's hard to say what the “up-and-coming” areas are in the East Bay; the East Bay, in general, has been on the up-and-up for the last decade. As the market has become increasingly competitive, I encourage buyers to focus on areas they really want to live in and look for great values in those areas. A couple of areas or neighborhoods that I think are a great value right now are neighborhoods like Glenview and the Montclair Hills in Oakland. We have seen prices come down a lot in these neighborhoods, where the average price point for a single family home (3 bed/ 2 bath in Montclair and Glen- view) was around 1.6m and is now a lot closer to 1.3m.
Condos are also a great buy for anyone looking to enter the market right now. Given the high-interest rate environ- ment we have faced the last year, affordability has impact- ed entry-level condos, especially those with high HOAs. We are seeing a TON of inventory for 1 and 2-bedroom condos all over the East Bay, and when rates come down, and these condos are more affordable, we will see some forced appreciation in the condo market as the demand picks up.
If you're getting ready to put your home on the market, updating your kitchen and bathrooms should be your first priority. They are usually the first areas that buyers focus on when considering a new property. Some relatively inex- pensive upgrades for the kitchen might include redoing cabinets and countertops, adding a backsplash, and upgrading to stainless steel appliances. Brightening and enhancing the functionality of these rooms will maximize the amount buyers are willing to pay for your home.
If you're looking to get more value for your money, consid- er painting both the interior and exterior of your home, installing or painting a new front door, and landscaping. These improvements will enhance the beauty of your home and increase its curb appeal, influencing how prospective buyers feel about it when they see it in person. Adding solar panels (preferably before the end of the year to take advantage of California government and tax incentives) is an excellent way to increase your home's value and save money on your utility bills.
I love this question because anyone who follows me knows I’m a huge advocate for purchasing a multi-family property as a first investment, and this new development is a GAMECHANGER. On November 18th, Fannie Mae and Freddie Mac effectively reduced the required down payment to purchase multifamily properties from 20% to 5%.
To put that into perspective: to purchase a $1 million property where you used to need a minimum of 200k (20%) down, you can now do with 50k (5%) down payment.
Lenders will also let you use the additional rental income on the property from the units that you are not planning to occupy to qualify for a larger loan, AND buyers looking to use the home as a primary residence have an advantage over an investor because the interest rates on loans for buyers who occupy the property are much less than what an investor would pay to purchase the property as an investment (usually a whole point of interest less).
I think there are going to be some great opportunities coming up in the multifamily segment that are perfect for first-time home buyers, and it just became that much easier to land your first home and start building wealth in real estate.
Great question! People may not realize that buyers do have some leverage in the high-interest rate environment, and there are a lot of opportunities out there. High-interest rates mean fewer buyers in the market, which means less competition.
The best way to take advantage of high-interest rates is to buy a property at a discount and have a plan to refinance. Buyers can either get the seller to buy down the rate now with a seller credit, or plan to refinance in the future at a lower interest rate. We’ve already seen some indicators that rates will likely come down next year, so now is a great time to purchase a property before rates come down and a ton of buyers flood the market and the competition make the prices climb.
For savvy buyers, now is a great time to acquire a property with less money down, do some renovations, and then refinance for some forced equity, ideally reducing your interest rate AND removing the private mortgage insurance (PMI) that comes with purchasing properties with less than 20% down.