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Displaying blog entries 1-10 of 14

The value of accurate pricing

by Harold Powell

Selling your home without having to settle for less

One of the easiest mistakes sellers can make is pricing their property too high from the start.  The lure of pricing the property too high can actually cause the seller to loose money in the long run.   The National association of Realtors did a study of market time versus selling price.  They looked at how time on the effected the sales price of the property.  Additionally, we look at when is the property has the greatest interest level.  These 2 factors help shape the best time for the seller to receive the best pricing.  Watch today’s video to see how you can benefit from pricing your property correctly.

Zillow vs. the Realtor

by Harold Powell

One of the common questions I receive is how accurate or reliable is Zillow, Trulia or Redfin in estimating the value of my home?

Typically, the online estimates of value are usually between 5-15% plus or minus the actual market value for most tract homes. That is a pretty significant swing when you consider that the properties we sell have a list price within 2-3% of their sold properties.

This deviation becomes more pronounced as we evaluate more unique properties, custom home, homes ocean views or homes near the beach. We can see a swing of 30-40% from actual market value! Watch today's video to hear about the type of limitations of Zillow.

The Andrew Project

by Harold Powell

A few years ago my partners and I agreed to open a transitional living center at a motel that we own in downtown Ventura.  With the help of local churches, pastors, community leaders and city officials a non-profit entity was formed called The City Center.   The goal was to create hope and a hand-up, rather than a handout, out of homelessness. One of the latest success stories is from Emma. Emma lived in a tent for 94 days in the hillsides of Ventura before eventually living at the City Center.  With the help and support of The City Center staff and volunteers, she is get back on her feet and has an apartment of her own.  Emma’s testimony sums up what is possible for those that come to The City Center.  Listen to her testimony and journey.

 

Currently, there are 14 families living onsite with the ability to expand to 30.

In order to house and support the homeless families that live at The City Center – Transitional Living Community,  The Andrew Project was created.   Simply put, the goal of the Andrew Project is to have 1000+ people giving $19/month.  The former Mayor of the City of Ventura, Mike Tracy, has already pledged his personal financial support to give and is committed to enlisting others that will donate $19/month.

If you are interested in supporting this cause to help others like Emma for $19/month go to http://www.thecitycenter.org/donate-2/

 

Our summer Real Estate Market

by Harold Powell

Now that we are midway through 2014 you can see some subtle changes that have taken place in the real estate market. The median appreciation in Ventura County over the past 2 years has reach 29%.  This past year we have experienced a slow down in the pace of appreciation from the previous year.   It also means that sellers have to be more attentive in their pricing and in some cases require a price improvement to get their home sold.  Watch this month’s video for more information on today’s real estate market.

 

 

 

Current Market Trends

by Harold Powell

Today's market video answers 2 questions. What's happening with the real estate market today? Is now a good time to sell?

Real Estate Price Point Increase

by Harold Powell

The change in market pricing for different price points can best be seen when you compare 2 different points in time.

The market pricing chart reflects 2 different time periods in $50,000 increments for Ventura County. The outline chart are the number of sold properties per price point from April 2011 to April 2012.  The solid green chart reflects the same thing but from April 2012 to April 2013.


As you look at the different price points there has been a significant move up in the number of homes now selling over 350,000 from the previous year. There were a greater number of sold homes under 350,000 2 years ago due to the market conditions. You can also see that in every price category over $350,000 there has been an increase in the number of homes sold. It’s almost as is the outline chart was shifted over one increment to the right.  

The graph also reflects the continuing strength in the over $600,000 price range as well.  This is helped by the fact that the move up seller has enough equity to buy that more expensive home.


This is the 2 year median for sale and the median sold properties chart for Ventura County.  The red bars reflect the change in the median asking price(for sale price) which is up 35%.   While the median sold price is now up 24% from 2 years ago.  

To find out specifically more about your property give me a call at 805-339-3516.

 

 

85% decline in Months Supply of Inventory

by Harold Powell

Everyone is asking where did all the inventory of homes go? Over the last 2 years we have seen a 61% decline in the number of properties available.


In Feb 2011 there were 5100 homes available. Feb 2013 there are 1989 homes available. That’s a net reduction  in the supply by 3,111 homes over the past 2 years.       

An even more dramatic revelation is the months supply of inventory. The months supply of inventory is the time it would take to sell all the remaining inventory based on how fast homes sell.  Monthly supply of inventory is considered a leading indicator of sales activity and the direction that the market is headed.



 As you look at the graph you can see there is an 85% decline is the months supply of inventory from  Feb 2011 to Feb 2013. In Feb 2011 there was 7.8 months of inventory.  Fast forward to Feb 2013 and see that the supply has shrunk to 1.2 months of inventory. What that means to you is that it would only take 1.2 months time to sell all the remaining inventory.

 To give you a sense of this number, a normal market should have about 4-6 months supply of inventory. When the inventory number falls to 4 or less we begin to see appreciation in pricing. The fact that this number is hovering below 2 months means that there is a lot of upward pressure on pricing at this time.

 To show you what I mean look at the chart below which shows a 32% increase(red bars) in the median asking price and a 17% increase(green bars) in the sold price over the past 2 years.

Today’s financing..How tough is it?

by Harold Powell

I sat down with Dennis Spivey with Prospect Mortgage to ask a few questions about today’s financing.  How tough is it and what type of financing is available for the different types of buyers out there.

Increase your homes value by 11%

by Harold Powell

Today I wanted to take a couple minutes to show you how we can increase the perceived value of your home by as much as 11%.

It’s been said that a picture is worth a 1000 words and the difference between a good quality photo or poor quality photo can affect your property’s perceived value. As a seller, there are 2 groups that you are trying to persuade or influence in regards to the value of your home.  The other realtors and the home buyers themselves.

 

2 important facts

1. 90% of today's home buyers employ and rely on a professional realtor.

2.  Over 88% of prospective home buyers start their search on the Internet

A study was done with home buyers to see how home professional photography can effect
3 things...

Their perceived value of the home
How likely they were to visit a home
How quickly they thought the property would sell.



Results are very convincing...


1.Those who viewed the listing information accompanied by professional photography valued the property 11.5% more than just a property description.


2.When asked how likely they would visit a home with professional looking photography, 7 times as many respondents indicated that were “very likely” to visit the home vs. a home without photography.

3. Home buyer respondents also felt that the home was 3 times more likely to sell within a standard time frame vs. home with just a description.


Probably the most compelling bit of information is this graph of increase of perceived value. Take a look at this.

As you look at the top bar it you can see  those that who viewed listing information accompanied by professional photography, valued the property at an average price of $460,735, an increase of 11.5 percent or $52,896 over the average perceived price of the description-only property, $407,839.


Here are some photos taken from a 5 meg camera phone compared to the same photos taken by a professional. The question to ask yourself is which picture is more compelling value to you.

 

                                                                  

                

              


Understanding that there are 2 people groups we cater to when we showcase your property online.
1. The agents themselves who tour property online.  As an example this particular property had 237 agents tour this property online within the first day of being on the market.  vs. the 40-50 agents that came through on caravan.
2. The buyers who are looking online to purchase a house.  Its a known fact that 88% of the buyers who purchase a property are looking online.

While perceived value is not the same as what someone ultimately pays for a property, it sets the benchmark as to what this property is worth in a buyer's mind compared to other homes in the same neighborhood. First impressions often have a big impact on a buyers' decision-making process on which homes to visit and how much to offer.



To discuss ways more ways to help you increase the exposure to your property and adding market value at the same time,  please contact me at 339-3516.

People are asking where did all the inventory of homes go? Over the last 2 years we have seen a 61% decline in the number of properties available.

In February 2011 there were 5,100 homes available. In February 2013 there are 1, 989 homes available. That's a net reduction in the supply by 3,111 homes over the last 2 years.

An even more dramatic revelation is the months supply of inventory. The months supply of inventory is the time it would take to sell all the remaining inventory based on how fast homes go into escrow. Months supply inventory is considered a leading indicator of sales activity.

As you look at the graph you can see there is an 85% decline in the months supply of inventory from February 2011 to February 2013. In February 2011 there was 7.8 months of inventory. Fast forward to February 2013 and see that the supply has shrunk to 1.2 months of inventory. What that means to you is that it would only take 1.2 months time to sell all the remaining inventory.

To give you a sense of this number, a normal market should have about 4-6 months supply of inventory. When the inventory number falls to 4 or less we begin to see appreciation in pricing.

The lack of supply is putting a lot of upward pressure on pricing. To show you what I mean, look at the previous blog posting that shows a 32% increase in the median asking price and a 17% increase in the sold price over the past 2 years.

Displaying blog entries 1-10 of 14

Contact Information

Photo of Harold Powell Real Estate
Harold Powell
RE/MAX Gold Coast Realtors
5720 Ralston St. Ste. 100
Ventura CA 93003
(805) 339-3516