Orange County Real Estate Podcast with Valerie Van de Zilver

News flash: The Dow Jones is down! Interest rates have risen to 4.5%! The tax law will impact California homeowners! The list of sensationalist headlines goes on. These days, all the stories being run about our market is enough to make your head spin. All this news has gotten people worried about an impending market crash. Well, I’ve got a news flash of my own to share with all of you: The market is not going to crash.  People who claim a crash is on the way are using their guts instead of their heads. Remember when prices were high before the last market crash? Surveys say this isn’t going to happen again. Yes, there’s a new tax law. Yes, interest rates are rising. And, yes, the stock market is volatile. “Our Orange County market is hot and will continue to be so in the future.” Still, I’m confident in telling you that a crash is not on the way. In Orange County especially, we’re likely to be in a seller’s market for quite some time. The housing market here is still hot, hot, hot.  While rates have risen, they’re still at historic lows. In order for rising rates to impact our market, they would need to go up another full point, and no one is forecasting this in the coming months. At the time of the mortgage meltdown, interest rates were over 6%.  Today’s interest rates are a gift. Buyers should be jumping on opportunities, and sellers should do the same while demand is high. Low supply is one contributing factor of today’s high demand. From 2012 to 2017, 30% fewer homes have come on the market compared to those in 2000 to 2008.  There are currently about 4,300 homes on the market, which is significantly lower than the long-term average of 8,000 homes. So, ignore the chatter. Our Orange County market is hot and will continue to be so in the future. If you have any other questions, would like more information, or want to know how you can benefit from these unusual market conditions, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I’m excited to give you a video tour of Mickey’s Retreat, our newest listing in Anaheim, California. This 3-bedroom, 2-bathroom home is a perfect family home. You’ll love the custom built-in entertainment center, as well as the beautiful, open kitchen. Any home chef would love to cook here day in and day out. The master bedroom features a king-size bed, great color scheme, and walk-in closet. The master bathroom has custom tiles, shower, and granite countertops. The hall bathroom is Finding Nemo-themed, there is a princess-themed room, and there is a Cars-themed room for the boys. “You can buy this home as a primary residence or as a short-term rental property to create cash flow.” In true Orange County style, what could be better than a heated pool? If the pool isn’t your style, there’s a separate hot tub as well. The asking price for this home is $675,000. Give me a call today and we can arrange your private showing appointment. This home can be purchased as a primary residence or as a short-term rental. No new permits are being offered for short-term rentals in Anaheim, but this home is grandfathered in. The home comes with all the furnishings and even retains the reservations that have already been made. From the moment you close escrow, you’ll start generating cash flow. If you have any questions in the meantime, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.

On my recent trip to New York City, I had the pleasure of discussing the state of our nation and its marketplace with a few distinguished economists. Today, I’ll be sharing their forecasts with you. The economic consensus outlook is very bright going into 2018. We’re in a synchronized global economy and expansion phase after a long and slow recovery from the real estate downturn in 2008. Consumer-positive sentiment is at an all-time high, unemployment is low, and wages are starting to rise.Also, the tax reform promises to have an additional positive impact on the market and the economy in general. The outlook for real estate also continues to be optimistic for the coming years, with millennials entering their prime home buying age bracket. And continued low interest rates have increased the affordability factor for buyers in our market. “The economic consensus outlook is very bright going into 2018.” Of course, those of us who live in Southern California are especially blessed with great weather and a desirable location. The number of homes on the market in Orange County is significantly low. As of Jan 1st, 2018 there were less than 4,000 homes on the market, the lowest new year inventory since 2013. Between the low number of homes on the market, the low interest rates, and the high level of affordability buyers are seeing from our market, it is a great time to be a seller. So, if you’re thinking of listing your home, now is a fantastic time to do so. Let my team’s 99-point marketing plan go to work for you. There are also great advantages right now for buyers in our market. Low interest rates won’t last for long, so buyers should take advantage while they can. As always, we want to hear from you. Send us your questions and if we answer yours in a video, we will give you a $50 Amazon gift card. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Today, I want to give you a brief recap of the 2017 Orange County real estate market. I also want to explain why now is a good time to buy or sell real estate. Overall, 2017 has been a great year for real estate. I hope you had an amazing 2017. Thank you for allowing us to help you achieve your real estate goals this year. Typically, December is a slow month for real estate. People are going to holiday parties, shopping, preparing special meals, and wrapping gifts. With all of this going on, why are we still in a hot market? Well, the number of homes on the market is at a historic low. We will start 2018 with less than 4,000 homes on the market, which is the lowest inventory we’ve seen since 2013. In fact, there are 20% fewer homes on the market right now than there were at this time last year. In the $500,000 and under range, there are 30% fewer homes on the market year over year. Unfortunately, in Orange County the $500,000 and under price range is slowly disappearing. Interestingly, the median listing price is $1.8 million, which is pretty high. This number is slightly tweaked by high prices in the luxury real estate market.For homes under $750,000, the market is hot. Anything under $1 million in good condition is flying off the market. The list-to-sales price ratio is over 99%, and these homes often get multiple offers as well. “Inventory is at a historic low, so now is a great time to sell your home.” If you are thinking of buying and selling, you may want to wait until the selling season. When is the selling season? A few of your friends or other agents might have told you that the selling season is at another time of year, but let me tell you a few reasons why now would be a good time to buy or sell: There are fewer homes on the market, which means less competition for you. You may not have to give as much when it comes to seller concessions this time of year. Buyers are more serious. They have been wanting to buy a home, and they are taking the opportunity to get out there and look. Buyers have more time to look for homes. Some companies close for one or two weeks over the holidays, which means they are able to get out and look at homes during the day. There are a lot of vacation and international visitors in our area over the holidays. Some of them come here specifically to look at real estate. They may want to buy a second home, a vacation home, or a permanent residence. Some even buy houses for their kids who attend college here. Now is a great time for them to come and look at homes. After the holidays, there will be more homes coming on the market in 2018. People will decide to list their homes. There will be more competition, prices might go down, and you may have to give more seller concessions to make that deal. The new tax law will impact the California real estate market. We’re not sure how yet, but it will have some impact. If you plan on buying or selling a home, go ahead and do so now. As you can see, it might be in your best interest to enter the market now instead of waiting for the so-called “selling season.” We hope you’ve had a great year. I wish you all a wonderful holiday season and peace, joy, and lots of laughter in 2018. If you have any questions, please don’t hesitate to give me a call or send me an email. I would be happy to talk to you about how you might be able to enhance or improve your existing real estate portfolio in 2018. I look forward to hearing from you!

Today we’re welcoming you from Anaheim, California from one of our outstanding vacation homes—a 7-bedroom property we call “Ritz Meets Disney.” Today we’re going to talk about short-term rentals, vacation homes, and how you can be a part of this exciting business opportunity. It used to be that vacation homes were only for the rich and famous. We all grew up wishing that we could have a vacation home at the beach, or in the mountains where we could go for special family vacations. Well, thanks to the sharing economy and technology, vacation homes are now an opportunity for so many people all over the world. There’s a new term that’s evolved: short-term rentals, or STRs. What does that mean? An STR is a home that’s available year-round, where people come to visit for as short a term as three nights or maybe seven nights, or even 30 days or longer.You might be surprised to find out that if you have a current investment property, and you’re generating around $2,300 or $3,000 a month, we can show you how you could convert that to a short-term rental and generate $5,000 a month, or maybe more. Let’s discuss some things you would want to know if you are considering a short-term rental as a real estate investment opportunity. “Thanks to the sharing economy and technology, vacation homes are now an opportunity for so many people all over the world.” Location. Is the city in which the home is located STR-friendly? They may allow short-term rentals now, but will they in the future? It’s important to know the city’s philosophy on STRs. Additionally, what features are located nearby? Parks, natural vacation spots, tourist attractions, and so on are features that would attract visitors. Budget. While price is important, there are other things that you should consider. Is it a short-term or long-term rental? What utilities, maintenance, housekeeping, and insurance will you need to keep the place in order? Maintenance. We can show you without a shadow of a doubt that a short-term rental is a much better investment from a maintenance standpoint, and that it is much more easily maintained than a long-term rental. Every time a guest comes and goes, your home is cleaned professionally from top to bottom. If anything needs to be fixed or repaired, it’s handled right away. Marketing. How will people find you? At Val’s Vacation Rentals, we do a great job of marketing our homes and presenting them to specific market segments and staging them. We get thousands of leads a month from people who are interested because of the size, location, market segment, or a particular event occurring in the area. Management.There are several ways you can manage property. You could do it yourself, but if you live far away, that’s not practical. You could also share the management responsibilities, hire someone just to do meet-and-greets, and make sure the guests have arrived and are checked in safely. Another option is to hire a full-service management company, like Val’s Vacation Homes. We can help you convert your existing rental property into a short-term rental, or find another property to stage and furnish it, then manage it completely. What could be easier than that? If this world of short-term vacation rentals is of interest to you, give us a call. We’d be glad to do a free analysis of your current investment property, or to help you find another one to start from scratch. Our passion is helping people find an investment that’s best for their individual needs.

How does the current market’s inventory affect you as a buyer or seller? Right now, a major factor in our market is that we have high demand and low inventory. Over 51% of the home sales are in the mid range, which is $500,000 to $750,000. In 2016, only 50 homes sold for less than $300,000 in Orange County.We also have a shortage of inventory by nearly 65,000. That means even if 65,000 units came on the market today, we would still barely meet the demand of people looking to buy in Orange County. “Value is rising in every price range.” We have more people who want to buy than we have homes for sale so value is rising in every price range. Because of this, buyers need to be prepared to make an offer on a home and have a very experienced agent. Sellers need to make sure their home is priced well and select the offer that is most likely to close, which may not always be the highest priced offer.If you are looking to buy or sell a home or if you have any other questions about the market, feel free to give me a call or send me an email. I look forward to hearing from you!

We’ve all heard that it’s a seller’s market out there, meaning there is more demand than supply. When a home goes on the market that’s priced reasonably well, it will likely receive multiple offers. If you’re a home seller, here are a few tips on how to make your home sale even more successful under these market conditions. You might be surprised to know it’s not only about price. After all, what does it accomplish if your home sells but you don’t really receive top dollar for it or it doesn’t close on time? The first tip is to make sure you have a winning agent. The right agent will strategize with you and create a position within the market that gives you the best exposure and the best offer. This includes professional photography, strategic marketing, and open houses. After all, you want to have maximum exposure. “Have a winning agent on your side who knows how to close deals.” Secondly, make sure the terms are right for you. You should have short contingency periods, short inspection periods, and a short closing period. Another thing you can do is be prepared so that when an offer comes in from the right buyer, they can close even faster. That means you can have your home inspected in advance and you can do any repairs in advance that might need to be done so there are fewer things the buyer can ask for. Furthermore, you want to know that the buyer can close. If they say they’re a cash buyer, do they really have the money to close? Is the money readily available in an account and could they close tomorrow? If the buyer has to get a loan, make sure they’re fully approved and they’re ready to close quickly by a credible and reliable lender. When you have a winning agent on your side who knows how to close deals, you can maximize your price and position in the market. You’ll not only have a home that looks good and is priced well, but you’ll be able to get more than you ever expected in a seller’s market. If you have any questions or are thinking about buying or selling a home, don’t hesitate to give us a call. We’d be happy to help you.

Many buyers get frustrated trying to buy a home and don’t even know why a seller didn’t accept their offer and ultimately give up trying to buy a home. If you want to buy a home in a seller’s market like Orange County, there are a few things you can do to be successful. Don’t despair and don’t give up. It’s not all about the price, so there is hope for non-cash buyers. Start by being absolutely sure you can prove to the seller that you’re approved for financingand ready to close quickly with a credible lender. Price is important, but you don’t have to go way over the asking price. However, you also shouldn’t offer a price below the list price. Next, consider the terms of your offer. How fast can you close? Can you reduce the inspection periods? Sellers don’t want to sit around for weeks waiting to find out if you’re going to give them a long list of repair requests when they could have accepted a different offer that would have closed faster. You can also gain an edge by making your offer more personal.Give the seller a reason to believe they should sell you their home! You can also make an effort to make your offer look good. Sellers will receive a stack of papers for each offer—would you accept an offer that was messy, poorly presented, and half complete, or would you accept an offer that’s well-presented and professional? “You can gain an edge by making your offer more personal.” Finally, the most important way to win the home you want is by choosing the right agent. The right agent will do their research in advance and give you all the information you need, as well as finding the seller’s motivations. This will help you craft an offer that has all the important elements and will make your offer stand out to the seller above all other offers. If you have any other questions about buying a home in seller’s market or you’re thinking about selling your current house, just give us a call or send us an email. We’d love to help you out!

Is Orange County a buyer’s or seller’s market? Good news: it’s both! How can that be? First of all, interest rates are still at historic lows. With rates in the 4% range, buyers can afford more house. In other words, thanks to the low interest rates, buyers can purchase homes that they might not be able to afford otherwise. Historically low rates help sellers, too. Since buyer demand is so high, homes are selling at a much faster pace than usual. Buyers can afford to purchase homes and sellers can get peak prices. Sellers also benefit from the lack of inventory. So, what is the outlook for 2017? “Now is a great time to be in the real estate market.” There is no question that interest rates will rise this year. However, they are expected to rise slowly, so they shouldn’t get much higher than 5%. What does all of this mean for you? If you are thinking of buying a home, buy now while interest rates are still low. Not only will you be able to afford more house than you would otherwise, if you buy now, then your home will go up in value. If you want to sell your home, then sell now. It is a seller’s market with low inventory. The average days on market is 45. However, we often sell homes within 14 days, and sometimes we sell them much faster than that. This market will allow you to make your money and move into another home or invest in other properties. If you have any other questions about our current market, please don’t hesitate to give me a call or send me an email. I would be happy to help you!