Murrieta & Temecula Valley Real Estate and Community News

March 11, 2020

Should I Sell My Home To OpenDoor or Zillow?

Are you wondering if you should sell your home to OpenDoor, Zillow? If so, watch this video to get some information on these companies and the other iBuyer Platforms out there!

 


Hey guys. Hey, we're here today to answer your questions and today the question is, should you sell your home to Opendoor or Zillow offers?

Hey, my name is Justin Short. I'm a real estate agent here with RE/MAX Real Pros and we want to make sure we answer your questions today and keep you educated on what's going on out there in the real estate market. So let's go ahead and get into it. So by now, you've probably seen these companies, you've heard of these companies, you're kind of curious what they're all about. They're spending a lot of money on advertising. They're putting their name out there. So there are many companies out there. They could be Opendoor, it could be Zillow Offers, it could be Offer Now. There are many of these different companies that they're considered iBuyers. So what they are, they are investors, they are cash buyers. They're going to come in and buy your home cash as-is. You don't have to do anything. You don't have to do any repairs.

You just sit there. You'll be able to sign the paper and be able to move on. So there are some definite pluses that they're going to advertise. You're going to see they're going to have flexible closing dates. So you can close typically anywhere between the next two weeks, so the next 14 days, to the next 90 days. So you have a lot of flexibility as a home seller. They're also cash buyers, so you're not getting financing. You don't have to worry about dealing with banks, things like that, and then you also don't have to worry about showings and putting it on the traditional market. So people aren't kicking you out at dinner time to come to take a look at your home. You don't have to worry about open houses, all that. Although those are pluses, I really think there are a lot more negatives to dealing with an iBuyer.

The cons of selling a home to Zillow Offers or Opendoor is really it's the amount of money that you're going to put in your pocket. So a lot of people don't realize this because they're not keeping up on where home values are, what their real, true worth is to their home, how much equity they have, but with the way it works is you'll get an offer from a company. Let's say your home's worth $400,000 right? And they'll come in and they'll say, "Hey, we're, we're a big company. We're going to come in. We'll pay $385,000 for it right off the bat." Right? So you as a homeowner, you may say, "Hey, to give up 10, 15 grand of equity, that may make sense. I don't have to deal with showings, I don't have to deal with agents coming in."

All that type of stuff could be a great option for you, but there's a lot of fine print. So once you get that offer, you've got to read the fine print at the bottom. They're going to have big fees. So they're going to have on top of that low offer, they're going to have typically an 8% service fee. Then once you come down to home inspection time, they're going to charge you a certain amount of money for repairs. From what I've seen, those are anywhere from 10 to $15,000 depending on the home and that adds up pretty quickly.

So as you're going through it, most sellers they are looking at, they're going to net anywhere between 30 to $40,000 less by using one of those big companies. So yes, you have the convenience. If you're not worried about saving the money and maximizing the equity, it could be a good option. But most people, your home is your biggest investment. You're not going to be willing to do that and you really want to get the most money you can by putting it out there on the open market. So if you guys have any other questions, you can feel free to reach out and hopefully, you found this helpful!

Posted in Selling Your Home
March 5, 2020

January 2020 Housing Market Update For The Murrieta & Temecula Valley

If you're interested in knowing what's changing in our Housing Market here in the Murrieta & Temecula Valley, take a look at this video:

 

 

Hi guys! Hey, today we are here to go over your January 2020 real estate housing market update. Hey, my name is Justin Short with RE/MAX Real Pros. I'm a realtor here locally, and I want to make sure that we're keeping you up to date on all the different happenings out there on the market and keeping you updated on what's going on. So let's go ahead and get into the video.

 

As we've transitioned out of the first of the year, out of the holidays, into kind of the general start to the year, we've really seen things pick up here in the real estate market. So in general, it's definitely becoming more of a seller's market. There's not as much inventory out there, and homes are selling quicker and they're selling for more money than they were even just a year ago. So rates are down, there's a lot of buyers out there. And so if you are looking to make that move, it really, I think it could be a good time over the next couple of months to go ahead and make that transition.

 

So what I did is I pulled stats for the city of Temecula, city of Murrieta, city of Winchester, and city of Menifee to get a general idea of what's going on here in the market. So the biggest thing is pricing. Right now, we've seen pricing up over the last year on average, right about four percent, so that's a pretty significant increase, especially as a lot of people are waiting for the market to dip, waiting for that crash to happen. And it's really, it's not coming. Rates are very, very low. The market's been very, very steady. Homes are definitely selling, and as you can see, pricing is definitely up, about four percent on average.

 

Okay. So and the second stat that we track is the average days on market. So what that means, that's how long the average home is taking to sell. So last year, 2019, we were getting up to about 50, 52, 53 days on average, which is almost two months. So that's becoming a very normalized market, like between buyer and seller, right? Not super hot seller's market, but not a super cold buyer's market. So very normalized. But what's changed this year with where inventory is, there's not enough homes for sale. So because of that, the average home is selling faster. The average home is selling about 32, 33 days, so about one month. So almost half as, well, twice as quick as they were just a year ago. So what that means is there's not enough homes for sale and the homes are definitely selling quickly, at least the good ones, the ones that are updated and the ones that are finished well and that are presented well.

 

And then the third stat that we like to track is the months of available inventory. So what that means is that if there were no more listings that were put up on the market and out of the available homes that we have, how long would those homes take to sell? So about a year ago, we were up to a little over three months, like 3.3 months. So if no more homes were listed, it would take a little over three months for us to run out of homes. This year, that's changed significantly. We're actually under two months worth of inventory. So what that means, less than two months would it take for all the homes out there to sell. So what that's telling us, it's trending down. It's becoming more and more of a seller's market. There's not as much inventory, there's not as many homes available. And so if you're a buyer, you might have to be a little more aggressive with price wise. You might have to maybe up your pricing a little bit more. You might be more likely to be in a multiple offer situation.

 

What that means as a seller, you'll probably start seeing a little more appreciation over the next couple of months, just because there's not enough homes out there, not enough competition. So hopefully you guys found this helpful. Hopefully this helps you keep a pulse on what's going on out here in the area. If you have any questions, you can feel free to reach out and would love to provide a little more.