Jan. 10, 2017

Buying or Selling in Redding?

Hire an Entire Team!

Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to do it on their own. In today’s market: you need an experienced professional!

An Expert Guide
The field of real estate is loaded with land mines; you need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and is ready for you to move into can be tricky. An agent listens to your wants and needs, and can sift through the homes that do not fit within the parameters of your “dream home”. A great agent will also have relationships with mortgage professionals and other experts which will assist with securing your dream home.

A Skilled Negotiator
In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

Bottom Line
Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

Thinking of Selling Your Home? Visit www.reddinghomes.com/selling-your-home

Posted in Josh's Blog
Jan. 5, 2017

Shasta County Market Update January 2017

Your 2017 Shasta County Home Price Update Report

 

Click Here to watch Josh's video blog for the month of January


As many of you already know, a lot is happening with our economy. The election is over and both businesses and the stock market have a better understanding on what to expect. I predict our local real estate market will hit a pivotal point in 2017 since, in many areas across the state, home prices are at or above "pre-bubble" levels. Our federal reserve is confident on growth, who recently – in vague language of course – sent strong signals they will raise interest rates in 2017 even higher.

Higher interest rates make it more expensive to buy your home, especially for millennials; a BIG market this year. As your Realtor, based on what I’m seeing in Shasta County, 2017 may be the ideal year in the short term to sell your home for a great price. I feel the pent up demand of homeowners itching to sell after getting back to even. I see more people getting mortgages now that Fannie and Freddie back 3% down payment loans. I talk to people every day who are better employed and making more money; job growth is up. All these forces will come together in 2017 and I see a lot of homeowners selling their homes this spring. Which of course, if you’re thinking about selling your home in 2017, means there will be a lot of competition.

So if you’d like to know what your home could sell for, I purchased access to local public home sale information for you – 100% complimentary – so you can find out what your home is worth online.

Click here to find out what your Redding Area home is worth now
(It’s completely free. Simply enter your home address and you’ll get the value range.)

Now, there’s more of course to pricing your home than mirroring your neighbor's final sales price. That’s where my expertise comes in – we track EXACTLY what home buyers are looking for. If you are, in fact, thinking about selling your home and want to know how it works, how long it takes, and the price you can expect to get, call me at 530-222-3800 or reply to this email – it goes right to me.

No pressure or obligation to sell, of course. It’s only a discovery phone call. But we want to take “preemptive” action now before everyone lists their homes this spring. This way you get ahead of the market and make more money.

In the meantime, if we haven’t spoken recently, consider 2017 my promise to keep you better informed on what’s happening in our local market. Call or email me anytime with your real estate questions.

Thank you, and make it a great 2017!

Your Realtor,
Josh Barker

Posted in Josh's Blog
Dec. 30, 2016

Start 2017 Off Right…

As we are about to bring in the New Year, families across the country and here locally in Redding will be deciding if this is the year they will sell their current house and move into their dream home. Many will choose that it is smarter to wait until the spring “buyer’s market” to list their house for sale. In the past, that might have made sense. However, this winter is not like recent years.

The recent jump in mortgage rates has forced many Redding buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale in Shasta County has dropped dramatically as compared to this time last year.

Here is a chart showing the decrease in inventory levels by category:

Bottom Line
Demand for homes for sale in Redding and surrounding areas is very strong right now while competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2017, now may be the time. Feel free to contact me at 530-222-3800 or email josh@reddinghomes.com to discuss the options available when selling your home. Also check out www.reddinghomes.com/selling-your-home for a closer look at how we sell over 450 homes a year.

Posted in Josh's Blog
Dec. 27, 2016

FSBO in Redding: Top 5 Reasons Why You Shouldn't

In Redding's Real Estate market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of local sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers
Recent studies have shown that 94% of buyers start their search for a home online. That is in comparison to only 17% looking at print newspaper ads. We have an internet strategy to promote the sale of your home to 1,000's of prospective buyers. You can review our Proven Marketing Strategies on our website: www.reddinghomes.com/proven-marketing-strategies/

2. Results Come from the Internet
Where did buyers find the home they actually purchased?

  • 51% on the internet
  • 34% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspapers

The days of selling your house by just putting up a sign and advertising in the paper are long gone. Having a strong internet strategy is crucial to maximize exposure of your home. See the presentation of our listings at www.reddinghomes.com/buying/

3. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate with; if you decide to FSBO:

  • The buyer who wants the best deal possible
  • Buyer’s agents who solely represent the best interests of the buyer
  • The buyer’s attorney (in some parts of the country)
  • Home inspection companies, which work for the buyer and almost always find some problems with the house
  • An appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years*. *The 8% represents the lowest recorded figure since National Association of Realtors (NAR) began collecting data in 1981.

5. You Net More Money When Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own.

Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home... As studies have shown, people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own in Redding or Shasta County might not make sense.

Bottom Line
Before you decide to take on the challenges of selling your house on your own, let’s get together and discuss the options available in the Shasta County Real Estate market today. You can contact me at 530-222-3800 or email me at josh@reddinghomes.com.

Posted in Josh's Blog
Dec. 21, 2016

Renting or Buying in Redding?

There are some renters in Shasta County who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either yours or your landlord’s.

Cost of renting has, and will continue to increase, as you can see in the chart below. However, as an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.

Bottom Line
This holiday season, why not give yourself the gift of home-ownership? Lock in your housing costs for the next 30 years and guarantee that you are the one building wealth.

Visit our Buying or Selling pages for more helpful information, and as always feel free to contact me at 530-222-3800.

Posted in Josh's Blog
Dec. 19, 2016

Get Top Dollar When Selling Your Home

Every homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive. However, let’s look at this concept for a moment. Many Shasta County homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of sellers trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.

Realtor.com, gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Local Real Estate Professional

This too may seem counterintuitive. Sellers may think they would net more money if they didn’t have to pay a real estate commission. With that being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

Research posted by the National Association of Realtors revealed that:

“The median selling price for all FSBO homes was $185,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $163,800. However, homes that were sold with the assistance of an agent had a median selling price of $245,000 – nearly $60,000 more for the typical home sale.”

Bottom Line

If you're thinking of selling your home in Redding or surrounding areas, you have a choice of many Real Estate Professionals. But remember...when you choose us - you're hiring an entire team!

Check out Josh's Proven Home Marketing Strategies and see how he gets the most homes sold for top dollar in the shortest amount of time!

Posted in Josh's Blog
Dec. 15, 2016

Why You Shouldn’t Take Your House Off the Market During the Holidays

If you are one of the many Redding homeowners who is debating taking your home off the market for the next few weeks, don’t! You will miss the great opportunity you have right now!

The latest Existing Home Sales Report from The National Association of Realtors (NAR), revealed that the inventory of homes for sale has dropped to a 4.3 month supply. Historically, a 6-month supply is necessary for a ‘normal’ market, as explained below:

 

For an example: the Shasta County Multiple Listing Service (MLS) released their Market Summary for the month of November 2016 and showed an 11% increase in home sales over the same period last year. The amount of active listings has dropped by almost 2.5% versus last year. Shasta County is currently under a 4 month supply of homes for sale.

We have been in a seller's market here in Redding for some time now, and have seen home prices increase steadily. Even with home prices currently appreciating; there are even more buyers that are ready, willing, and able to buy right now! The supply of homes for sale is not keeping up with the demand of these buyers.

Bottom Line
Redding home prices are currently appreciating in this seller’s market. Making your home available over the next few weeks will give you the most exposure to buyers who will be competing against each other to buy it.

Posted in Josh's Blog
Dec. 13, 2016

Redding Home Prices: Where Will They Be in 5 Years?



Today, many real estate conversations center on Redding home prices and where they may be headed. That is why we like to refer to the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:
Home values nationwide will appreciate by 4.0% over the course of 2017, 3.2% in 2018 and 3.0% the next three years (as shown below). That means the average annual appreciation will be 3.24% over the next 5 years. We can expect a similar rate of appreciation here in Redding and Shasta County as a whole.

The prediction for cumulative appreciation ticked up from 18.7% to 21.4% by 2021. The experts making up the most bearish quartile of the survey are projecting a cumulative appreciation of 10.2%.

Bottom Line
If you are currently thinking of selling your home in Redding or Shasta County - now may be a great time to do so! Please feel free to contact me at 530-222-3800 or send me an email at josh@reddinghomes.com if you have any questions.

Posted in Josh's Blog
Dec. 6, 2016

Shasta County Market Update December 2016

From the Desk of Josh Barker,

First and foremost...I want to wish each and everyone of you a Merry Christmas and a Happy New Year! For those of you that live in the Redding area, I am sure you agree, that it is truly a treat to be surrounded by all the snow capped mountains this year. For those of you that live out of the area...you're missing out on an amazing fall and winter season...come and visit! This month I would like to take a few minutes and recap on a few of the hottest topics trending now in our local market. If you have any questions, feel free to respond to this email or contact me at 530-222-3800.

Have a great December!
Josh Barker

Click Here to watch Josh's video blog for the month of December


Year to Date Home Sales
Year to date home sales for Shasta County are up over 10% compared to last year. This increase in home sales is due in part to low interest rates, an increase in buyer confidence and the new first time home buyers entering the world of home ownership. Most experts are predicting a very similar pace in home sales in 2017.



Home Inventory
Home inventory in the local Shasta County market is beginning to trend down. This month, home inventory is down 20% compared to last year at this time. This reduction in home inventory is largely due to the reduction in distressed property listings as well as the 10% increase in home sales this year. New home construction is increasing slightly, but still falls woefully short of what is needed to sustain buyer demand. For this reason I do expect prices to remain strong and increase slightly in 2017.

You can check the general value of your home instantly by clicking here 

Interest Rates
I realize that everyone has been talking about the possibility of interest rates going up, however, over the past year there has been little to no change...UNTIL NOW...Interest rates just recently bumped up over 4% and are a full .25% higher than they were just a few months ago. This small bump in interest rates is minor, but a rate increase would have an impact on affordability. The impact of higher interest rates can be summarized like this...For every 1% that the rate increases, the payment increases by an average of 10%. A home buyer qualified at $250,000 at 4% interest rate would qualified at $225,000 at a 5% interest rate.



Buyer Home Searches Online
In years past, it was very common for the average home buyer to contact an agent when beginning their home search. It makes sense..."Full time" active agents are familiar with the active home inventory and often can offer insight into what is coming to the market in the future.

This method of home shopping has changed... Home buyers are no longer starting a search for a home with an agent... In most cases buyers are now starting their home search by browsing the most popular homes search sites, selecting homes they are interested in, and driving by them before contacting an agent. It is for this reason that home marketing has become more important than ever.

Eye catching pictures, home staging, curb appeal and frequency (the amount of time a buyers sees a home when searching the internet) has become some of the most important factors for marketing a home. In today's market, buyers are typically calling agents about homes they are already interested in. This means that your first home showing actually takes place on the internet. The good news is that home sellers have a lot of control over whether they will receive physical showings by simply controlling how the home is presented from the start.



If you would like to review our plan for selling homes simply click here

Posted in Josh's Blog
Nov. 30, 2016

Mortgage Interest Rates Just Went Up - Should You Wait To Buy?

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters.

This has caused some buyers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades.

Bottom Line
Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago; a lower rate than your parents did twenty years ago and a better rate than your grandparents did forty years ago.

Don't wait! Call us today at 530-222-3800. Even if you're only thinking about buying a home, we can give you the facts and guide you through the process.

Posted in Josh's Blog