First posted by Stephanie on Mill Valley Patch Posted on April 30, 2013 at 3:07 pm

We’ve heard of buyers having a home inspection done when in the process of purchasing a home, but we don’t hear of sellers doing their own investigations. Why? Here are 5 seller benefits to having a general home inspection and/or pest inspection prior to putting a house on the market.

1. Costs – The average cost of a general home inspection ranges between $450 and $600, depending on the size of the home, and $350 to $450 for a pest inspection. If you rely on the buyer to reveal any costly issues, then you may be on the hook for cost estimates obtained from the buyer’s investigations on their repair requests. If you resolve issues on your own with your inspections, you have more choices as to choosing the most affordable service provider for the job. Also, the reports become part of disclosure to give Buyers a heads up and truly underline the “as is” clause in sales contracts.

2. City Inspections – If your property is located within the city inspection jurisdiction, you are at the mercy of the City if you leave things to chance. If the City reveals any issues that need to be resolved or (re)permitted prior to close, this could delay the close of escrow and possibly add to your selling costs. Unpermitted work is a significant reason as to why houses fall out of contract.

3. Convenience - With today’s busy lifestyle it’s always refreshing to do things at our own pace. Doing a pre-inspection offers you better control of your time which can reduce anxious moments.

4. Time – Knowing that you’ve completed a lot of general repairs based on a pre-inspection will not only shorten days on the market by appealing to a buyer it will accelerate your ability to close escrow sooner than later.

5. Peace of Mind – Selling a property is an exciting time, and doesn’t have to be the most stressful thing you’ve ever done. Planning ahead by doing pre-inspections will provide you more peace of mind as you roll with all the other unexpected issues that can surface during the sale of your home.

Of course I know that taking a chance on the results of a buyer’s inspection report might benefit you too.  It’s possible that buyers might not be concerned with issues revealed on their home inspections, but I have to say as a local agent for over the last 24 years, buyers typically ask for some type of compensation or credit for items a buyer deem in need of repair or replacement. The best offence is a good defense, and that’s knowing and resolving issues in advance!

In a few days, Pacific Union will release first-quarter results for our Bay Area and Tahoe/Truckee real estate markets. Home sales and prices rose solidly in the quarter despite an exceptionally tight supply of available properties, setting the stage for a very busy year ahead.

But first we want to give you an early look at a feature story included in the Q1 report — a report on how today’s aggressive market conditions are helping underwater homeowners regain equity and giving them added incentives to put their properties on the market.

It has been a bitterly cold few years for would-be sellers in the Bay Area, but spring is bringing welcome warmth for both home values and buyer activity.

Home prices have been rising for a year across all of Pacific Union’s eight regions in the Bay Area and Tahoe/Truckee. In San Francisco the median sales price of homes rose nearly 30 percent in the first quarter from a year earlier, and all other regions saw double-digit increases as well.

In a recent Wall Street Journal survey, economists agreed that home prices will continue rising at least through 2017, and the Bay Area’s strong economy suggests price increases here will outpace those in most of the rest of the nation.

Those rising values translate to greater equity, and many homeowners who believe they are “underwater” – owing more on their mortgages than their homes are worth – may be surprised to learn that they’ve regained equity based on recent sales prices for comparable homes in their neighborhood.

Why the lift? In part it’s because a persistent shortage of homes for sale has created a veritable army of aggressive and highly motivated buyers who are willing to outspend the competition. For example, in our East Bay offices, 90 percent of transactions in the first quarter involved multiple offers; on average, homes sold for 13 percent over asking price.

Homes in the Bay Area sold within weeks of coming on the market, frequently in all-cash deals, and multiple bids pushed sales prices above asking prices in all regions, much to the delight of sellers.

Overall, the increased velocity of real estate activity in the first quarter of 2013 was nothing short of remarkable.

This means that sellers looking to trade up to a higher-priced home may now make significant gains in the current market. For example, consider a homeowner whose property was valued at $300,000 in 2006 but dropped 20 percent in value to $240,000, for a loss of $60,000. That same 20 percent drop in value for a higher-priced home – say, a $450,000 home now worth $360,000 – gives a trade-up buyer savings of $90,000, or a net gain of $30,000 on the new home.

Today’s low mortgage rates also offer serious savings to trade-up buyers. In 2002, when the interest rate on a 30-year fixed-rate mortgage stood at 6.5 percent, the monthly payment on a $500,000 loan was $3,160. At current rates, which hover around 3.6 percent, approximately the same loan payment would buy a home with a $700,000 mortgage – a net gain of $200,000.

The benefit won’t last forever, so prospective sellers should move quickly: A report from the Mortgage Bankers Association predicts that rates will average 4.4 percent by the end of 2013. That 0.8 point rise will add $230 to the monthly payment on a $500,000 mortgage.

So if you’re thinking about selling in this blazing market, don’t get burned by waiting too long. And count on the expertise of a real estate professional who knows the local market to help assess your home’s current value and prospects.

Looks like it’s shaping up to be a hot season for sellers!

Bay Area home prices continued to climb higher in March, with the median price of all sales up 33 percent from a year earlier.

All nine Bay Area counties posted double-digit increases in year-over-year median sale prices, led by Alameda County (36.1 percent), San Mateo County (34.5 percent), and Marin County (32.2 percent), according to statistics the California Association of Realtors, or C.A.R., released Monday.

Meanwhile, a continued shortage of available homes cut into sales totals. March home sales were down an average 9 percent in the Bay Area, year over year, and ranged from a 24.9 percent decline in Solano County to a 6.1 percent rise in Marin County.

Statewide, median sale prices of single-family homes were up 28.2 percent in March from a year earlier, while overall sales were down 4.9 percent.

“No doubt the dearth of home listings is driving the upsurge in the median price, as is an increase in sales in the higher-priced segments,” C.A.R. chief economist Leslie Appleton-Young said in a statement. “Sales of homes priced $500,000 and higher are up more than 34 percent from last year, and have been on a rising trend since early 2012.

“Sales growth in the coastal regions – Marin, Orange, San Diego, and San Luis Obispo, in particular – helped push the statewide median price up to the highest level in more than four years.”

The C.A.R.’s monthly sales and price report showed that the available supply of homes for sale fell significantly in March, dropping to a 2.9-month supply, as measured by the association’s Unsold Inventory Index. That’s down from 3.6 months in February and 4.2 months in March 2012. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal.

The Realtors group also reported that homes continued to move off the market faster in March, with the median number of days it took to sell a single-family home decreasing to 29.4 in March, down from 34.2 days in February and 52.2 days for the same period a year ago.

Nearly twice as many people believe now is a good time to sell a home compared with a year earlier, according to a new survey from Fannie Mae.

The federal mortgage agency’s National Housing Survey for March found that 26 percent of Americans believe the time is right for homesellers, up from 14 percent in March 2012. Housing sentiment has been climbing steadily over the past 12 months as home prices posted double-digit increases and mortgage interest rates remain near record-low levels.

Those who believe now is a good time to buy, meanwhile, have held steady over the past year at 71 percent.

“Despite an uptick in concern expressed about the direction of the economy, it appears consumers believe that the housing recovery will march on,” Fannie Mae’s chief economist, Doug Duncan, said in a statement accompanying the survey.

“Housing sentiment remains unshaken from the highs of the last few months. At the same time, perhaps driven by the experience of the past several years, consumers remain cautious in their housing outlook.”

The number of survey respondents who favor selling a home has hit the highest level since Fannie Mae introduced the National Housing Survey in June 2010.

Also, 48 percent believe home prices will continue rising next year, up from 35 percent a year ago and another record high.

Fannie Mae said Americans are increasingly optimistic about the housing markets even as they are slightly more pessimistic about their personal finances and the economy.

The survey found 35 percent of respondents believing the economy is on the right track, down from 38 percent in February but up from 34 percent in March 2012.

The survey found 39 percent of March respondents expect their personal financial situation to improve over the next year, compared with 41 percent in February and 44 percent a year earlier. The share of those who believe the economy is on the right track fell three percentage points to 35 percent from February to March, but that number was up 1 point from a year earlier.

I have my second home on Maui at Napili Shores. Living on Maui & Oahu, left a lasting imprint on my soul. The warm & gentle breezes that caress and de-stress, warm water clear enough to see coral, fish and turtles, sand so light it brings delight, sunrises and sunsets that shimmer in my minds eye, the sweet smell of topical flowers, & a place where whales never cease to amaze, all call to me. I chose Napili Bay for its peacefulness, serenity and no high rises! It is a low-key, none-glitzy, knock dead gorgeous location.

Buying this vacation rental has been one of my best investments. If you find that “Hawaii Is Calling”, call me. I am a real estate agent in Marin County (North of SF) and have developed close ties to many agents who sell in Hawaii. I am happy to put you in touch with them. My favorite Maui connection is Gerrianne Sakamoto – a top agent on Maui, but she sells all over the islands. If you click on her link, you can check out properties on Maui and elsewhere.

Aloha and look forward to hearing from you!

Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious:

LENDERS OK SMALLER DOWN PAYMENTS
Mortgage lenders are easing back on tight loan standards that have put a crimp in the housing recovery, according to a recent CNBC report — just in time for the spring homebuying season.

Buyers may qualify for loans with down payments below the 20 percent minimum that lenders have demanded in recent years. CNBC said loans with down payments of 3 to 10 percent accounted for 18 percent of mortgage giant Fannie Mae’s business in the third quarter of 2012, although loans with minimal down payments require private mortgage insurance.

“In general, lenders have been willing to do more than they may have been willing to do in the past,” John Forlines, chief credit officer for Fannie Mae’s single family business, said in the CNBC report. “Our requirements have not changed significantly, but other parties taking risk, the lenders and mortgage insurance companies in particular, have been more flexible than they may have been in the past.”

FROM GLOOM TO BLOOM
Freddie Mac’s latest Economic and Housing Market Outlook predicts the healthiest spring homebuying seasonsince 2007.

The March report said home sales this year will be 8 to 10 percent higher than in 2012, with steadily rising home prices, continued low mortgage rates, and gradually improving consumer confidence.

“History shows us not all economic recoveries are created equal, and consumer confidence mirrors this fact,” Freddie Mac chief economist Frank Nothaft said in a statement accompanying the report. ”With the spring homebuying season upon us, the recent highs in the stock market are a welcome signal of better times ahead. But it will be the gradually declining unemployment rate and steadily improving housing market that will deliver broad-based economic benefits for Americans and, in turn, support the overall recovery.”

DREAMING BIG ABOUT HOME OWNERSHIP
Nearly nine of every 10 Americans dream of becoming homeowners, according to a recent survey by JPMorgan Chase.

Eighty-seven percent of survey respondents said owning their home is something they have always wanted, with 66 percent believing that housing is a good financial investment and 75 percent seeing it as an important part of raising a family.

HOME SALES, PRICES RISING
Existing-home sales rose solidly in February, the 20th straight month they have topped year-ago levels, according to the National Association of Realtors. Home sales increased also, for the 12th consecutive month.

“Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise,” Lawrence Yun, the NAR’s chief economist, said in a statement. “Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable. The only headwinds are limited housing inventory, which varies greatly around the country, and credit conditions that remain too restrictive.”

HOMEBUILDING IN HIGH GEAR
U.S. housing starts in February were up nearly 28 percent from a year earlier, and up 63 percent in Western states, the U.S. Commerce Department said last week, confirming earlier reports that the homebuilding industry’s recovery has shifted into high gear.

While housing starts have increased dramatically over the past year, economists point out that home construction is still less than half of what it was during its pre-recession peak and is near levels seen in the early 1990s.

(Illustration courtesy of 401(K) 2013m via Flickr.)

There is a loud buzz going around right now about the direction of our local real estate market. As a real estate agent, I am right in the middle of what’s going on, and I can safely say that 2013 is off to an optimistic start.

The California Association of Realtors recently released their 2013 California Housing Market Forecast, and in my opinion, it reflects what’s going on locally. The housing market has continued to improve over the last year in California, but the lack of inventory is reducing the number of sales.

Despite the ebb and flow of the number of sales through the years, we’ve seen a steady increase in prices over the last four decades. For example, the annual median price in 1970 in California was $24,640 according to the California Association of Realtors. In 2012 it was at $319,340. The current standing of low inventory will continue to finesse our market values in an upward direction, but this trend may not hold.

Sellers benefit from the low inventory by participating in multiple offers on their properties, which typically drives sale prices above a seller’s asking price. Buyers right now are exceptionally frustrated by this trend. It’s not uncommon to have five or more offers on one property in our market right now.

The current available stats for Mill Valley tell us the average sale price is up, the average days on market is down, and the number of properties on market is also down. See the attached graph for details.

The assumption is we will see more properties come on the market as we move through spring. If we see an influx of properties at one time, things may go one of two ways; either a high percentage of buyers will jump in and participate in more multiple offer situations, or we’ll drift slightly away from it being a seller’s market to a more balanced market. Either way, I expect this year to be an active one. Hold on tight, it’s going to be quite a ride!

REFERENCES:

Pacific Union International.(n.d.). Mill Valley Real Estate Market Conditions.

http://www.car.org/aboutus/onecoolthing/cahomeprices/.

85 Coronet Ave, Mill Valley

Very close to downtown this polished and engaging home not only has a wonderful well-manicured yard, but a very sunny disposition! The quality of this 4 bedroom 2 bath home is self-evident from the moment you walk through the door. Energized by the light, it is surrounded by decks, patios, garden – and a panoramic view out over the trees towards the ridge and downtown.

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