10 Reasons Why You Should Consider Buying A San Luis Obispo Home

10 Reasons Why You Should Consider Buying A San Luis Obispo Home

San Luis Obispo Home Ownership

 

  • Paying rent is not a good investment, but owning is a great way to start building family wealth.
  • Not only does homeownership allow you to provide your children with great education, but you can also decide whether or not your child grows up with a pet.
  • Owning a home provides you with tax benefits while also providing you with more living space to move around in.

 

How To Search Homes For Sale in San Luis Obispo

Here’s a quick video of how to search homes for sale in San Luis Obispo and all over California. You can find homes for sale, condos, lots, land, and just about every real estate listing that is currently on the market and in the various MLS systems across California. The listing data is updated multiple times daily and the most accurate info available. Neither Zillow or Trulia have this much timely accurate information on their sites. If you have any questions or need any help let me know, I am always here.

How Important Is The List Price?

Central Coast List Price

In today’s market, where demand is outpacing supply in most cities here in San Luis Obispo and Santa Barbara counties, pricing a house is one of the biggest challenges we’ll face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best real estate agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered their price. His article, Listing Price, Time on Market and Ultimate Selling Price, published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

Price Visibility Chart

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. I am here to simply and effectively explain what is happening in the your specific market and how it applies to your home. I am committed to telling you what you need to know rather than what you want to hear. This will put us in the best possible position for success in selling your home in today’s market.

The Ultimate San Luis Obispo Seller’s Checklist

Here’s pretty much everything that you need to consider and be mindful of before we put your San Luis Obispo home on the market. If you want top dollar for your property it’s crucial that we present your property in the best possible light and in the best possible condition. If you need help with referrals for contractors or any other local central coast service people let me know and I can help you with that as well.

Remember we can only make one first impression with buyers, why not make the best most attractive first impression possible?

If you are ready to get started let me know and I can guide you through this entire process, my team and I are here to help and get you to where you and family want to go.

San Luis Obispo Real Estate

San Luis Obispo Home Prices Are Up…But There is a Challenge

San Luis Obispo home values

Home values continue to climb and are projected to increase by about 5% over the next twelve months here in San Luis Obispo. That is good news for anyone who owns a home. However, it could present a challenge for a family trying to sell their house.

If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the sales price when performing the appraisal for the bank.

The National Association of Realtors (NAR) recently released information revealing just how prominent the challenge is in today’s market.

SLO real estate

And the challenge is deepening…
Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.

Central coast homes

As we can see the difference has increased each of the last two months.

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be more difficult than the first. If you are planning on putting your San Luis Obispo home on the market this year, I am here to guide you through this process, and effectively deal with any other obstacles that may arise. That’s what I am here for!