Exciting Market Predictions for 2020

Discover why remorse, surprise repair issues, or appraisal hiccups leave buyers with no choice but to cancel escrow. Why do buyers cancel escrow, and what can you do to stop it? Continuing our educational series, we’re tackling one of the most frustrating issues in real estate, and understanding why buyers back out after accepting an offer can save you time, money, and a lot of headaches. Here are the top three reasons deals fall apart and, more importantly, how you can prevent these deal-breaking problems from derailing your sale: 1. Buyer’s remorse. In today’s 2024 market, approximately 30% of all properties in escrow end up back on the market. The No. 1 reason? Buyer’s remorse. With interest rates high and homes more expensive than ever, buyers often feel pressure to make quick decisions. Unfortunately, around 50% of cancellations happen within the first few days after an offer is accepted. This can be difficult to prevent, but experienced agents often sense when a buyer hesitates. By asking the right questions and getting a feel for the buyer’s motivation and agent, you can minimize the risk of a deal falling through due to buyer’s remorse. "Buyer’s remorse, repair issues, and appraisal discrepancies are the top reasons deals fall through in 2024." 2. Repair issues. The second most common reason for escrow cancellations is repair issues. After a buyer’s offer is accepted, they typically conduct inspections. If unexpected repair needs arise during these inspections, it can make buyers second-guess whether they still want the property. This creates a “second negotiation,” as buyers often request repairs or concessions, leading to heightened tensions. To prevent this, I recommend completing pre-inspections and handling necessary repairs before listing the home. At Elevate Realty Group, we follow this process 99% of the time, drastically reducing the risk of cancellations. When buyers find nothing unexpected in their inspections, the transaction moves forward smoothly. 3. Appraisal discrepancies. The third issue that often causes deals to fall apart is appraisal discrepancies. Imagine this: the buyer offers $500,000 for your home, but the appraisal comes back at $450,000. Now you’ve got a problem. Appraisal issues create another round of negotiations, and if the buyer and seller can’t agree, the deal may collapse. The best way to mitigate this is by working with an experienced agent who can price homes within market value. Pricing your home accurately helps prevent surprises during the appraisal process and keeps the deal on track.  These potential issues—buyer’s remorse, repairs, and appraisal problems—can often be avoided with careful planning and the right real estate agent. When sellers take the proper steps upfront, they significantly increase the chances of a successful sale. If you have any questions or need help with your real estate needs, please contact us at (916) 862-5463. Most of the horror stories in real estate stem from not having a clear plan or an experienced agent who knows how to manage these challenges.

Learn about the latest news on interest rates in today’s market. We’ve been in a challenging interest rate environment for almost two years now, but that might be about to change. If you’re planning to buy a home, refinance, or if you bought a home in the last year and a half and your payments are higher than you’d like, then here’s some good news for you. We can finally say without a doubt that interest rates have peaked. We’re certainly well off the high of about 8.5%. We’ve been starting to hear and see that the core inflation numbers year-over-year have started to moderate, and they’re within the range where the Feds want them to be. While not everything is perfect, as many goods continue to be very costly, inflation is well under control and not rising. In the last two years, the Consumer Price Index data showed that when you consider food, groceries, gas, motor vehicles, auto insurance, and other items, prices have increased by nearly 28% across the board, which is ridiculous. However, the most recent CPI numbers range between 2.5% and 3%. This means that the statistics for July are only 2.5% to 3% higher than they were in July of last year. The Fed wants to see this trend continue month-over-month to confirm that inflation is truly evening out and not increasing. "I believe we’ll see rates drop below 7% within the next six to 12 months." Because of this, people are anticipating some changes in interest rates. We might see some quarter- to half-point decreases in the federal funds rate as early as next month, and by September, we’ll likely start to see interest rates adjust and come down. It’s important to remember that this is not a prediction, and do not rely only on it to make any sudden decisions. However, if you’ve been priced out of the market due to high interest rates or are waiting to refinance, I believe we’ll see rates drop below 7% within the next six to 12 months. Currently, rates are between 7% and 7.5%, but I wouldn’t be surprised to see them at 6% to 6.5% by the end of the year. This could create opportunities for many to enter the market or refinance. If you’re considering buying or selling, reach out to us at www.homesbyelevate.com or call us at (916) 436-5050.

Learn more about today’s inventory and its impact on buyers and sellers. It’s summer, and we are halfway through the year. Even though I am on vacation in the mountains of Truckee, I couldn’t wait to share some important updates with you. There's big news in the national and Sacramento real estate markets that you need to know about inventory. Nationally, we’ve seen a significant increase in the housing inventory. It surpassed four months of supply for the first time in over three years. This is big news because low housing inventory has been a major factor that drives competitiveness in the market, like what we have been experiencing lately. There are several factors that influenced the rise in inventory. Initially, the COVID-19 pandemic led many homeowners to hold onto their homes. But as the pandemic started to ease, buyer demand surged—during this time, homes sold quickly. But then, the rising interest rates discouraged homeowners from selling and moving, which affected the number of inventory in the market. "With more homes available, there’s less competition and better opportunities to negotiate." Now, we are seeing a 30% to 35% increase in inventory nationally. This resulted in slower home sales, potentially affecting home prices. We’ve also seen a 20% increase in price reductions locally, and while it’s not unusual during the summer months, it’s still good to be aware of it. For buyers, this increase in inventory is good news. With more homes available, there’s less competition and better opportunities to negotiate. As interest rates moderate, buying a home is easier. Locally, we haven’t yet reached three months of supply, meaning, we are still in a seller’s market. But the trend toward increased inventory favors buyers. If you're thinking about buying or selling a home, don't hesitate to contact us at 916-436-SELL. We're also offering free, no-obligation renovation consultations, even if you're not planning to move for a while. We're committed to providing value and helping you make the best decision for your real estate goals.

Find the perfect place for your out-of-state move according to recent data. I’m back again for another breakdown of the hottest states that Californians move to for their next home. We first released this list two years ago, and it has gained lots of interest from our clients. These are anecdotal pieces of evidence from us based on my experience as the number one team in the market. We’ve helped move over 70 families out of state this year, and have perfected a seamless process to make it easy. Here’s where most Californians are going when they move out of state: 1. Tennessee. As with last year, I received a lot of questions about the best and most affordable locations to move to in Tennessee. While it's still popular, it’s not as cheap as before. Franklin and the suburbs of Nashville are the most common places that people move to. Now, you might want to consider areas like Thompson Station or other suburbs outside Nashville. You can also check out Knoxville if you like a more hilly landscape similar to the Sacramento foothills. "We’ve helped hundreds of clients move in and out of state seamlessly over the years." 2. Texas. This state remains popular for Californians thanks to lower taxes, and there are still a lot of affordable locations available. Anecdotally, the Dallas-Fort Worth area has been a popular choice since five or six years ago. People are also looking in Austin, but the suburbs are getting pricier. 3. North and South Carolina. These two states continue to gain popularity with people looking to enjoy the great weather and beauty of the coast without major hurricane risks, unless you’re right up on the coast. Most of all, affordability is incredible compared to Tennessee, Texas, or Florida. You can find great homes in North and South Carolina under $400,000. We’ve helped hundreds of clients move in and out of state seamlessly over the years. We can even help you buy your next home out of state first, then renovate and sell your Sacramento home after you’ve settled in. As always, if you’d like to schedule a time to talk about this, visit our website at homesbyelevate.com or call us at (916) 436-SELL. I have partners and great agents all over the nation who will be happy to sit down with you and talk with you.

Things may seem unpredictable, but patience will pay dividends. In a recent conversation, we dove into the current state of the real estate market—a landscape characterized by uniqueness, unprecedented conditions, and a touch of confusion and concern. These insights shed light on some pressing questions many homeowners and prospective buyers are grappling with. Feel free to watch the full message above or use these timestamps that will direct you to various points in the video. 0:00 — Introducing today’s topic 0:15 — Are we headed for a crash? 2:00 — selling in this climate 4:30 — the future of the market 6:00 — Wrapping up There's no perfect time to buy or sell, but strategic decisions aligned with personal goals can lead to long-term success in real estate. If you have any questions, don’t hesitate to reach out to us by phone or email.

You don’t want to face the busy spring market without a great agent. As we dive into the bustling spring real estate market, the landscape may feel familiar yet subtly different from the previous year. While inventory remains tight, there's a slight uptick in listings compared to last year, about 8% to 10%. However, amidst this flurry of activity, one critical aspect stands out: the pivotal role of selecting the right agent when buying or selling a home. The decision to buy or sell a property is significant, and the choice of your agent can make all the difference in ensuring you secure the best deal. So, what's the number one thing you can do to set yourself up for success in this process? It's simple: interview at least three agents. Feel free to watch the full message above or use these timestamps to direct you to various points in the video. 0:00 — Introducing today’s topic 1:30 — Use your network 2:30 — Do research 3:40 — Find well-reviewed agents 5:00 — Local provider network 6:30 — Wrapping up Don't hesitate to reach out if you have any questions or need guidance throughout the process. Choosing the right agent is the first step toward achieving success in the spring real estate market.

Navigating the changes in real estate after the NAR settlement. In the realm of real estate, recent headlines have sparked widespread discussion and concern. The lawsuit and settlement involving the National Association of Realtors (NAR) have led to rumors of disappearing real estate agents and the end of 6% commissions. Today, we dive deep into these developments to provide clarity and honest insights from both a licensed real estate agent and an experienced consumer perspective. Feel free to watch the full message above or use these timestamps that will direct you to various points in the video: 0:00 — Introduction 1:07 — The case in a nutshell 2:38 — The core issues 3:45 — Commissions aren’t fixed 6:43 — Issues with the system 7:35 — What will change? 9:38 — This will drive more value 10:32 — Wrapping up While sensational headlines capture attention, it's crucial to look beyond them and understand the reality of these industry changes. The settlement highlights the importance of transparency, negotiation, and value in real estate transactions. As we navigate these developments, our commitment to providing exceptional service and empowering our clients remains unwavering. For those considering a career in real estate or seeking more information on this topic, please reach out by phone or email today.

All things Folsom! Elevate is your Folsom real estate experts! Folsom, California, is a vibrant city with a rich history and an abundance of activities for locals and visitors alike. Whether you're a history buff, outdoor enthusiast, or looking for family-friendly activities, Folsom has something for everyone. Here are the top 10 things to do in Folsom, CA, that you won't want to miss. Being Folsom residents of course we absolutely LOVE LOVE it here! We wanted to share some of the best things about our beloved city.

Here’s why it does not pay to wait to purchase a home in this market. We've officially entered springtime for Real Estate, and I've been repeatedly asked whether now is a good time to buy a home. Many buyers seem hesitant, and I believe it's worth addressing. So, is now the right time to buy a home? Imagine you were considering buying a home in early spring 2023 but decided to hold off until interest rates fell. Now, if you're entering the market this year with the same expectation, it might end up costing you substantially. Here's why: First, interest rates haven't decreased; they're averaging around 7%, and there's little evidence to suggest they'll drop significantly anytime soon. Second, home values have risen 4% on average since last year. So, compared to 2023, you could end up paying $20,000 to $25,000 more for a $500,000 property this year, with interest rates remaining the same. "Your primary residence gains value as an investment over time." Furthermore, consider the long-term vision when purchasing a home. While your primary residence isn't solely an investment, it significantly contributes to your net worth over time. Those who have kept their first homes often find themselves with substantially more wealth later on. The fear of buying now due to potential future interest rate drops or price decreases lacks substantial evidence. Don't let fear hinder your ability to build long-term net worth. Remember, the average net worth of a homeowner far surpasses that of a renter. Finally, we'll be hosting an event at the end of March featuring a trust attorney discussing the importance of trusts for your family and home. This is a free event, so keep an eye out for the invitation. If you have any questions or are considering buying a home, feel free to call or email us. We're always here to help!