For the past several years Orange County has been experiencing a seller’s market. Prices have been coming back up since the bubble burst with meteoric sped and inventory has had to recover from historic lows. However, the real estate market is once again changing and normalizing in Orange County.
The OC Register recently spoke with several local real estate specialists who revealed sellers are unrealistically pricing homes and consequently 80-90 percent of recent sales are reductions.
Unrealistic seller expectations are in part due to a misinterpretation of market data – sellers are looking at listing prices, not sold prices. According to Trendgraphix data, average listing prices in Orange County are over a million where as average sold prices are around $700,000. A recent report from RealtyTrac also supports a change in the market, showing home appreciation slowing across the country since the end of summer.
So whether you’re a buyer or a seller, here are 3 crucial tips for navigating the changing real estate market:
1. Have realistic expectations about price
Sellers – That means pricing your home based off of recent sold prices, not listing prices. Looking at listing prices is getting into the mind of the seller and what they believe their home to be worth, not what buyers are actually paying today. But don’t worry, with the right price your home will do well on this market. First Team Real Estate agent Brad Feldman told the OC Register, “A well priced home with good marketing sells quickly, which makes me believe that there is a strong, pent-up buyer demand. But consumers have options where, the last several years, they didn’t.”
Buyers – While it can be risky to low-ball sellers, realize that as more inventory comes onto the market, the more negotiating power you possess. Work with an agent who knows the local market, and fair prices, so you can settle on the right offering price. And don’t be afraid to negotiate with sellers, the changing market means more options for you.
2. Make sure your agent is your advocate
Sellers – It’s imperative to have an agent that’s on your side during a transaction. Every agent wants to see a house close – that’s when they get paid for all their hard work – but make sure your agent will negotiate and pursue your best interests until the deal is sweet for you too.
Buyers – Work closely with your agent so they understand what’s most important for you in your real estate transaction. Whether that’s fighting for new appliances or credits for renovations, let your agent know so they can be your advocate and negotiate a deal that satisfies your needs.
3. Study the market trends of your specific area
It doesn’t matter whether you’re a buyer or seller in this market it’s important to know the facts, and specific ones at that. City specific or even neighborhood specific market trends and comparables are crucial to understanding a fair home price. You can take a look at our latest September OC Real Estate Market Update to get city specific data, or work with an agent to get more targeted info on your local market.
Find an agent online or reach out and we’ll connect you with an expert in your area to help you navigate the sometimes rough and changing waters of real estate today.
Email us at clientservices@firstteam.com
Call us at 888-870-1142
