Why buy? Many friends ask me questions about the state of the Real Estate market today, some with sadness, some feel bad for me - after all - I am a Realtor. What is the state of the market? Well, let’s look at the numbers for starters. Prices in our area have dropped 35% since this time last year, that is a huge drop by any measure. However, the relevance to that drop in price is that the previous estimates were hovering around the market being roughly 30% overpriced. How does anyone decide when it is over priced - and how much? They look at the demographics of the area, how much does residents make and how much would that allow them to spend on housing. So, when the market drops 35% in an estimated 30% overpriced market, one might consider the possibility of the market being very close to corrected.  At the same time, our local markets currently have a 16% drop in inventory along with a 17% increase in sales. We do know that the average time on market is still astronomical, but consider that correctly priced properties are selling in anywhere from 1 day to a month, those properties are currently the items to look for.  Essentially, when demand changes, the market will follow. In our current market, demand is going up and it is expected to start driving prices over the summer.  If you are considering a purchase, now would really be the time to start, since it takes a little time to get ready financially and then find your property, a good 90 days would be the timeframe for closing. That would at writing time put us in mid Sept. and in what is expected to be the end of the bottom of the market.  When my friends feel bad for me, I tell them a few things about the current state of our market. Most of them ask how many they can have and how soon. As you know, the best investments are made at the bottom of the market - and that would be now.   Terkel Sørensen Realtor®
 Watch Terkel’s Commercial 41108 Royal Sunset Rd - Rosetta Canyon. 31507 Plum Way - Wolf Creek. 44857 Cosentino CT - Morgan Hill. 733 Torino Ave - San Jacinto.  HouseValues.com Independent Agent
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www.terkelsorensen.com

Century 21 Award - Redhawk
32401 Highway 79 South
Temecula, CA 92592

Office: 951-491-7000
Direct: 951-805-0773
Toll Free: 800-530-6536
Fax: 951-491-7001

With the real estate market, being the way it is, what are the options for selling today?  As a Realtor® I am faced with this question, and the ensuing challenge, quite frequently.  As you can imagine, selling a property today is not as simple as it may sound, the rules have not changed, they are just being enforced more firmly. Realtors® have always been in a position of finding the middle ground, a) getting the best possibly price got the client and b) sell the property in a reasonable amount of time. In the past few years, that was not a big challenge, as buyers would generally write offers, on any property they could get close to. Today, the buyer have far more properties to look at, and time to decide which one they like. This makes pricing the property right, so much more important, and unfortunately “Right” currently means a good deal lower than what any seller would like. If you are negotiating the listing of your property, have the agent show comps (comparable sales in the past 3 months), ask for an explanation about how the price was arrived at, and keep in mind that listing at a higher price than the market will bear is currently not a good idea – if an agent suggests this, consider if you wish to sell, or just to hang a sign in your yard? Recently I wrote a little about shell shock for sellers in today’s market, the other part of the shell shock, is increased amount of marketing an agent have to commit to. It used to be that a sign would sell a house, now, you must have a Virtual Tour at the very least. Tools such as property specific 800 numbers and web sites also help promote your property. Realtor.com just added an option for a Video Tour, so that is becoming a needed item, ask your agent if they have those capabilities and are willing to pay for it.  In addition to the pricing, marketing exposure, there is the condition of the property, my general recommendation is to keep your property in showing condition (that is a nice place to live) and should you find yourself in need to sell, it will be much easier to get the property ready.  Factors that sell a property:Price, price, price… It has to be priced right.Marketing of the property, the MLS is NOT enough.Condition of the property, make sure it looks great. Recap: The market is slow, but not dead. Selling is more difficult today, however, selling your property is very doable with the right Realtor®. If you have questions or want to know more about your options, call me, Terkel Sorensen, at (951) 805-773l; Century 21 Award, Temecula, CA or visit me at www.terkelsorensen.com.