May saw a $30K jump in the median price of single family home prices in the SCV.
Good news for Santa Clarita homeowners came from the Southland Regional Association of Realtors who recently reported that home prices continued to rise in May, with the median price of a single family home jumping to an average of $530,000. That’s a $30,000 jump from April, and a $45,000 jump from May of 2014.
We’ve seen single family home prices steadily rise throughout this year, with gains rebounding from recession-era lows since the end of 2012.
Is this what’s known as a “seller’s market?”
Sellers have been able to take advantage of the upswing in equity over the past few years. This does not necessarily mean that “anything goes” when it comes to pricing their home, however.
Smart sellers are still taking advice from experienced real estate agents who remind them to price their home competitively within market conditions and fair market value parameters. Pricing your home competitively gives you the advantage of driving more buyers through your door, which potentially brings you more offers. This is what creates “seller’s market” conditions.
What does this mean for home buyers?
Home buyers who plan ahead, get their finances in order, and pre-qualify for a home loan before setting out to find their dream home are in a much better position to find what they are looking for. The more solid and reliable a buyer looks to a seller, the better chance they have of getting their offer accepted.
Going for the “win-win” scenario.
Whether you’re buying a home, or selling, you should always consider the “win-win” when it comes to making the transaction work to a positive conclusion. Buyers should make offers based on Fair Market Value conditions, and not try to “lowball” the seller with a ridiculously low price. Likewise, sellers should consider all offers based on their quality and not necessarily just on price. For example, you have an offer that comes in $5,000 below asking price, but the buyer has been pre-approved (Not just pre-qualified, but pre APPROVED) for a 30 year fixed rate mortgage with 20% down. Buyer number two has submitted a full price offer, but has not been pre-qualified by a lender, and has provided only $2000 as a good faith deposit. Buyer number three has an all cash offer, but it’s $20,000 below your asking price. Which offer looks more solid to you as a seller?
We are all about the “win-win” scenario.
The Lichen-Hooper Real Estate Team is ready to help you fulfill all of your real estate goals. Contact us today for a no obligation consultation.