Have you ever wanted a cottage by the sea? I know I would like one and have talked with several other people that like the idea of living a few blocks from the beach. However, it’s always a matter of price and affordability for most of us.
Recently, I attended a get-together at a home in Oceanside 92054. It was the hostess’ investment property that was used as a vacation rental. It was a historic cottage built in the 1920’s, charming, updated with vintage design, pleasing decor and furnishings! All that anyone would want in a cottage by the sea…. including a peaceful backyard setting.
I fell in love with that house and wanted to check out what the real estate market was doing in Oceanside west of Interstate 5: what was for sale, what sold, and what change in sales & price has occurred from 2006-2007. First off, I found a few cottages I liked:
This is cute cozy cottage in south Oceanside with 2 bedrooms, 1 bath, hardwood floors, a front porch to watch the world go by, 6000 sq ft lot and garage in the back.
It’s walking distance to restaurants, the beach, grocery store and much more.
Price is between $499,000 and $525,000!
On to the next cottage I found of interest and hopefully you will too….. its another 2 bedroom and 1 bath cottage with hardwood floors, open beam ceilings, built in 1951 on a 4000 sq ft lot and a one car garage!
It is close to the beach, train station, movie theater and pier! Offered at $577,000!
The third cottage I found was a Spanish Mission style home on a 5000 sq. ft. lot about 4-5 blocks to the sand! Take that walk and enjoy life at the beach! What more could you ask for from this 3 bedroom, 2 bath home that has a one car garage off the alley.
Only $579,000 for this beauty in central Oceanside!
Market Price, Overpriced or Great Deal?
Now, the question is: How do these prices compare to the sales for the last year…. are they market price, overpriced or a great deal for a buyer?
According to the First American Title Historical Median Resale Home Prices for this zip code 92054, for the last five years are as follows:
Oceanside 92054 Median Home Prices
2003 2004 2005 2006 2007
$355,000 $464,000 $525,000 $540,000 $540,000
It appears that the prices have stablized for the coastal areas of Oceanside according to the above figures. Plus looking at the individual homes on the market and those that sold last year…. prices are comparable.
However, several people will ask, "What about short sales and foreclosures? The newspapers are filled with gloom and doom." For example, the foreclosure rate for coastal Oceanside, zip code 92054, is 2.1 to 6.0% according to the Union Tribune’s "Foreclosures up and down" April 23, 2008. Yes, there are short sales and foreclosures in almost all zip codes of San Diego County…. just depends on how many! Coastal areas are not hit as hard as other areas and Oceanside may have slow sales like everywhere else; but, the prices appear to be stable.
It has often been recommended that home sellers pay for a professional home inspection when they list their home for sale so that both parties know the home’s strengths and weaknesses before an offer is ever made. With current market conditions favoring buyers, savvy home sellers understand that paying for a professional home inspection can help them better position their home within the current market.
The large inventory of homes in San Diego currently for sale provides buyers with more options and buyers tend to prefer homes that are in move-in condition. A professional home inspection is one more tool that a seller can use to determine how close their home is to move-in condition and to prioritize improvements and upgrades to best compete with the other homes for sale.
A thorough home inspection often uncovers problems unknown to the sellers. By having an inspection up front, the seller has an opportunity to address minor problems that might seem major once a contract has been signed. Plus, the home will show at its best…. for a faster sale with a higher price, in most cases.
Buyers may be more interested in a pre-inspected home because there should not be any big surprises after the contract is negotiated. A home that does not undergo inspection may have the buyer coming back within a week or two (following their own inspection) requesting upgrades, allowances, or price reductions, all of which are a hassle and inconvenience to both parties.
The buyers still have the option of obtaining their own professional home inspection, but there is less likelihood of unexpected surprises and definitely, a greater chance the sale will go through as originally negotiated.
Let me know if you’d like a list of recommended professional home inspectors that my clients use or visit the California Real Estate Inspection Association websit for a list of inspectors close to you.
Selling a home is never easy, but there are ways to make your home more appealing to buyers, which could result in a faster sale. Many homeownersmake improvements before putting their home on the market; the key is indoing them the right way.
Home sellers in 2008 should consider the trends that are going to be popular with home buyers this year. In a recent survey of several hundred top real estate agents, the following were the top eight suggestions for making your home attractive to buyers:
1. If you are redoing a kitchen or bathroom, consider using glass tiles instead of ceramic ones. They are gaining popularity again because of reflective qualities.
2. Avoid installing bowl-shaped above-the-counter bathroom sinks. They look pretty, but have proven to be harder to maintain and keep clean.
3. Use engineered stone compound for kitchen countertops. The material is less expensive than granite and is expected to be the latest trend this year.
4. Do not install too many glass cabinet doors in your kitchen. They look better in magazines than they do in real life — where homeowners must keep their cabinets in perfect order.
5. Consider replacing a wood or chain link fence with a wrought-iron one on your property. Wrought-iron fences portray a look of luxury.
6. When repainting trim for shutters, doors and window frames, go with bold and deep colors. And do not get rid of the trim around interior window openings–it leaves an unfinished look.
7. If replacing floors, avoid bamboo wood. This flooring was popular when it debuted, but now users are saying that it is easily dented and scratched. It is also more likely to warp due to weather and humidity.
8. If you are adding new construction, do not employ concrete blocks in exterior walls. They are not attractive and are more likely to leak moisture if not properly installed.
There are five major factors to consider when selling a home. These factor can greatly influence not only the final price you will get for the property, but also how quickly it may sell and how much grief you may suffer through the sale.
Location: Over history it has been said that the three things to look for in buying a property are (1) Location (2) Location (3) Location. There are positive and negative factors to almost every location.
Let us pretend your property is right next door to a fire station. You need the kind of marketing professional that can sell the benefits of not having to worry about your new home buying down, or perhaps the savings on fire insurance.
Seriously, no matter where your property may be located, there is a ready, willing and able buyer in the marketplace. The "problems" with the location of a propety can be overcome, you just need a real estate professional who will work hard to do so.
Real Estate Professionals: Not all real estate professional are the same…. gee, that applies to all professions, doesn’t it? Each agent takes a different approach in the marketing of your home, in how they work with you, other agents and the public.
The marketing approaches can range from what the discount agents do: put it in the MLS and collect your fee, to the agents who actively market the home through a structured plan of action for networking prospecting, print advertising and Internet.
Just like any other professional in your life, you need an agent who is organized, professional and hardworking. Have you ever seen a lawyer show up for a case in sweat pants and a t-shirt? How about an accountant who cannot manager his own finances? By having a true professional working on your behalf, your entire experience will be more positive.
Terms: Are you flexible on possession dates? Is your property easy to show? Would you be interesting in helping the buyer finance the home? Are you prepared to negotiate on appliances or other furnishings? This flexibility makes your home much more attractive to potential buyers.
Condition: Making a good first impression is important in getting a property sold. Painting the front door and trim, making sure the doorbell works, putting furniture and clothing in storage and cleaning off the counter tops and fridges are just a few of the little things that can be done to make properties more marketabe. Just remember that cleanliness and pride of ownership will get you more money than used dirt.
Price: Determining a price is more than just picking a number. It involves careful analysis of the property and surrounding comparable sales. Many things come into account when determining a price. In fact, it is often through price where short comings in the other factors are balanced….. But watch out, while the price can fix almost every short coming of the property and surrounding neighborhood, it is not always the solution for everything.
Having a real estate professional who will be honest with you about these factors is important and could save you thousands of dollars!!!
In cities like San Diego, one of five major metros where transactions rose, that’s good news, assuming it’s sustained. What makes transaction volume a good indicator is that it shows how easy it is for people to get loans and how much confidence there is in the market. If mortgages are available and buyers have some faith in the value of the home, they’re more likely to buy.
San Diego’s present conditions suggest that over the next half-year, prices may start to rise. That’s because "there’s usually a three- to six-month lag between when transactions go up and prices go up," says Jonathan Miller, president of Miller Samuel, a Manhattan real estate appraisal firm.
Another good sign for the coming year? Increased credit availability.
Another article stated that there were 3 communities in San Diego County that had appreciate for the last year: Encinitas, Ocean Beach and La Jolla!
I’ve seen the changes occurring and believe that now is the time for buyers to look seriously at the market and the positive opportunities available.
Yes, they are…. for certain homes and areas!!! Why… you might ask? There are probably many reasons this is occurring right now, such as:
The new jumbo conforming loan with the higher loan amounts at a reasonable interest rate.
Spring Time, the traditional high selling season for homes
Pent up demand from buyers who were watching the market and sitting on the fence
Lower listing prices came down to the point that buyers feel they aren’t over paying
Desirable properties coming onto the market for the first time
Properties with the right price and in great condition
Buyers feel that they are making a good deal and that prices will rebound.
It certainly has nothing to do with the articles in the newspapers or new broadcasts with their negative and dire predictions on real estate. However, I must admit that there have been a few headlines that indicate a change may be on its way. Take a look at a few of them:
"Prices Finally Low Enough for Buyers?" — Housing Market Tracker
"Just a Tidbit of Good News on Home Sales" — San Francisco Chronicle
"Encinitas Not Fazed by Current Marketing Woes" — 10News
What are your thoughts on these headlines? Smoke in the eye or a glimpse of the future?