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Your Buyer's Market Changed To A Seller's Market....Right In The Middle Of Your Real Estate Experience

By Karen Fiddler, Broker/Owner

Real Estate Agent with Karen Parsons-Fiddler, Broker 949-510-2395 BRE# 01494165

April 12, 2012 08:09 AM

Your Buyer's Market Changed To A Seller's Market....Right In The Middle Of Your Real Estate Experience

Part of my responsibility to my clients....sellers and buyers...is to touch base periodically with Mission Viejo Real Estate Market News. The one thing that is constant in real estate is that it changes all the time. If your agent can't tell you what is going on in the real estate market TODAY, you are not working with the right agent.

Real estate is more than yard signs and unlocking doors!!! This is so important! Local and state laws and ordinances, market trends, national news...so much more goes into factors which affect your home purchase or sale. A big part of our job is to know the changes and relate them to the client.

So I like to reach out to my active clients on a regular basis about what is changing in the market. In Mission Viejo, we are suddenly working within a seller's market....do you think this might affect the buyers and sellers? You bet it will.

When the market shifts to a multiple-offer market....it's very important to adjust how both buyers and sellers respond. My Mission Viejo Sellers might want to consider a re-list to boost visibility....and perhaps a different list price. Brace yourself...they might want to list higher. Comps and comps, and when the market shifts to a seller's market, prices tend to go up. Perhaps the best course of action is to re-evaluate the list price. We might suggest that the sellers take the home off the market for a couple weeks, maybe repaint or replace the carpet, and then re-list...at a higher price.

In a multiple-offer market our Mission Viejo Buyers need to respond differently also. They do not have the luxury of "thinking it over for a few days." If we've been working with a buyer for awhile, this could be a real change for them. I like to review the current days-on-the-market stats for the homes they've been looking at and help them understand the change. I need them to realize this fact so they do not miss a great home because they've been able to view homes a few times before deciding to offer. I also want their cooperation in making sure the file is always updated so that we are not held hostage to a mortgage broker who is gone over a weekend.

Regardless of whether you are an active Mission Viejo Buyer or active Mission Viejo Listing, if the local real estate market makes a shift, it's important that you are aware that the environment has changed. One way to do this is a periodic market review with our clients...buyers and sellers.

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Karen Fiddler, Broker/Owner

Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA

Orange County & Lake Arrowhead, CA (949)510-2395

Debbie: Things are changing quickly, and we need to make sure that our clients are ready for it.

Joni: Thanks :)

Sajy: It will come....I think some markets move first and the rest of the country follows, consumer confidence is the key

Joan: We don't have that many REOs, the distressed homes tend to go as short sales. But this is on all homes, especially the equity sellers....those are the most desirable and go very quickly here.

Praful: Interesting, each market has it's own oddities, doesn't it?

Anja: I think our bottom was last fall also...and so many just waited anyway. Maybe we'll see another slow down this fall and they can get that "deal"

Charlie: I think our clients rely on us for this...and we have to be on top of the market to help them make good decisions...if the market moves into a seller's market, our sellers need to know this.

Richard/Jean: things are actually pretty good here.

Phil: Interesting....our volume is down. Everything is local, right?

Gita: That's a good point. As trends change in other parts of the country, it's important to see it and know whether your own market is about to follow suit, that's how you find the "bottom" and catch the deals at the right time.

Michelle: That's great....hopefully your buyers listen to you and get that house

Bliz: All that matters is that you know what's going on....so you can direct your clients. That's the most challenging of all markets, though...the real changing market.

Bill: Interesting, we'll have to see if this holds true. There is an election in the middle of all that.

Peter: It's all local, right? but seems that more people here are reporting a similar mini-boom

Angelica: Well thank you very much, I'd love to work with them. :)

Kathryn: That's true here also....I should have said that. Our very upper-end properties still take awhile. The easy financing on jumbo loans is gone, so alot of them do sit for a bit longer

Terkel: Thanks

Rob: The media doesn't think good news sells, I think. It's more interesting to report on a problem and maybe offer a small solution.

Cheryl: That's true....which is why I like to reivew the "days on the market" reports with buyers, so they can see that the homes they might like are moving quickly

Michael: thanks, representation is more than just opening doors

"Summers": Thanks....

Apr 13, 2012 02:07 AM

Karen Fiddler, Broker/Owner

Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA

Orange County & Lake Arrowhead, CA (949)510-2395

Norma: Sad, and they get caught without that good deal. I had that happen too, now they are buying a much smaller home. Same price

Michael: When things happen quickly, they have got to be ready to jump.

Richie: You are so right...you and I are really "earning" our pay right now.

Andrew: hmmm, hopefully our dress pants don't go up and down too quickly, though :)

Bob: I know....I have an investor and we're looking in North Orange, South LA area and we're seeing things move very quickly there too. So many here are reporting the same thing.

Apr 13, 2012 02:14 AM

Valarie Swanson

CENTURY 21 Award - San Diego, CA

San Diego Real Estate

Multiple offers, higher list prices, lower inventory and higher sales prices. I'm seeing it all in the areas I work in. Even with short sales and REO's within the area, we're still seeing an increase in buying activity.

Apr 13, 2012 02:19 AM

Bob Miller

Keller Williams Cornerstone Realty - Ocala, FL

The Ocala Dream Team

Hi Karen, seems we are both seeing the shift a seller's market. Having never seen one before I am excited.

Apr 13, 2012 02:39 AM

Curtis Van Carter

Better Homes & Gardens Wine Country Group - Yountville, CA

Your Napa Valley Broker Extraordinaire

Karen

So true, so true, I found this from a repost by Anna Banana.

The most interesting part about this seller's market here in the Napa Valley is the very moderate price increase accompanying it. Once we ever get past the REO and SS mess, I think the pop on the backside will be significant.

cheers cvc

Apr 13, 2012 03:33 AM

Marte Cliff

Marte Cliff Copywriting - Priest River, ID

Your real estate writer

Since our area is always 2 or 3 years behind California, I look forward to seeing a similar change here eventually!

Apr 13, 2012 03:34 AM

Kathy Schowe

California Lifestyle Realty - La Quinta, CA

La Quinta, California 760-333-8886

A very well written post... for many reasons. I am hoping that the positive side for sellers is moving this way-- soon! Kathy

Apr 13, 2012 04:30 AM

Dana Hollish Hill

Hollish Hill Group, JPAR Stellar Living - Bethesda, MD

REALTOR * Broker * Coach

So true in the DC area as well. Several of the neighborhoods I work in have taken off, but others are just about one sale away. I am trying to keep my buyers aware of what is happening, but some of them will have to re-evaluate where they will be able to afford to buy.

Apr 13, 2012 05:05 AM

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

Things are always changing & you need an agent that knows what to do when the market winds shift.

Apr 13, 2012 05:27 AM

Karen Fiddler, Broker/Owner

Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA

Orange County & Lake Arrowhead, CA (949)510-2395

Valarie: I think this is more than just a spring boost, maybe we will slowly get back to a more normal market

Bob: There are challenges here too. For one thing, if you represent the buyers, you have to work a lot harder to get an offer accepted.

Curtis: I think you're right, once sellers don't have as many short sales to compete with, they will increase their asking prices.

Marte: I bet you see it sooner than that....as long as it's real and not just a blip

Kathy: I bet our vacation cities will get it soon too. Lake Arrowhead is starting to see some bounce also.

Dana: I know, it's sad for those buyers who thought they had all the time in the world.

Apr 13, 2012 05:30 AM

Evelyn Kennedy

Alain Pinel Realtors - Alameda, CA

Alameda, Real Estate, Alameda, CA

Karen:

We are experiencing multiple offers in the mid range homes. Upper level homes are mostly selling at the same pace as at the beginning of the year.

Apr 13, 2012 06:44 AM

Kimo Jarrett

Cyber Properties - Huntington Beach, CA

Pro Lifestyle Solutions

You're absolutely correct with your perspective and analysis. It's like driving the freeway, you have to adapt to the conditions of the freeway, slow down or speed up or change lanes but continually moving to your destination.

Apr 13, 2012 08:10 AM

Kathy Sheehan

Bay Equity, LLC 770-634-4021 - Atlanta, GA

Senior Loan Officer

Karen, you are certainly on your game. In the 100-150 price range in my area, it has turned to more of a seller's market.

Apr 13, 2012 10:49 AM

Dorte Engel

RE/MAX Leading Edge - Bowie, MD

ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Karen,

At the lower end of the market, people are starting to overbid by 25 or 30%, which is understandable, when there are 16 or 23 offers.

Apr 13, 2012 12:45 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Karen - Things have certainly picked up recently with so much activity.

Apr 13, 2012 01:45 PM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

This has been happening here for a while. It is just getting harder and harder.

Apr 13, 2012 01:50 PM

DeeDee Riley

Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA

Realtor - El Dorado Hills & the Surrounding Areas

Karen, Great points and you are so right about real estate always changing. Our REO market has been a seller's market for some time but now the rest of our market has followed suit. Some buyers are having a hard time believing it but the statistics are right there to back up what we are trying to tell them!

Apr 13, 2012 03:40 PM

Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Karen, congratulations on the great year you are having so far, hoping the rest of the year is even better.

Apr 13, 2012 04:52 PM

Sylvie Stuart

Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ

Home Buying, Home Selling and Investment - Flagsta

It really makes a different being on top of your local market! Flagstaff has neighborhoods that are sellers market's already, and we have been very busy before our "busy" season, so I'm sure it's a just matter of time before we see a complete switch.

Apr 14, 2012 10:09 AM

Carla Freund

Keller Williams Preferred Realty - Raleigh, NC

NC Real Estate Transition & Relocation 919-602-848

Karen,

Very good points here! In our area some areas or neighborhoods are shifting to more of a sellers market but, not the entire area. It can be challenging getting those appraisal values turned around though.

Apr 15, 2012 12:31 AM