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Just Sold in San Jose for $2,260,000

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For this home I just sold in San Jose for $2,260,000, I was the agent for the sellers. I sold this home to them as their buyer’s agent 23 years ago and now they are retired and moving out of the area. I’m always just so excited when clients come back to me after so many years. It’s just so incredibly awesome!

We had multiple offers and the home went for OVER asking price, the buyers waived ALL contingencies, and the buyers gave the sellers a FREE rent back for a couple of weeks. It was a very smooth transaction. The buyers and their agent were lovely to work with and the experience was great.

The sellers are buying a home and the timing was just perfect, both sales/transactions lined up so well and smoothly. The sellers are able to move out of this home and right into their next home.

After 29 years as a realtor, it’s crazy how I am still learning new things that just ‘come up’. For this transaction, I learned that it’s best for the seller to just let escrow pay off the mortgages/HELOCs and for the seller to not pay them off during the transaction. It’s not a huge deal if a seller does pay it off during the transaction. And, it did not affect our closing. But, apparently, per the title company, it’s just a bit of a challenge on their end for some logistical reasons. Moral of the story…when you sell your home and are in contract, just let the title company pay off the mortgages/HELOCS at closing. 🙂

 

Just Sold in San Jose for $2,260,000

Just Sold in San Jose for $2,260,000

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Is It a Good Time to Buy?

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If it is a choice between renting vs. buying, I tend to advise buying for all of the reasons I put in my last post that I wrote.

Inventory is still SUPER low, which keeps the prices from doing a complete free fall and keeps the real estate market relatively stable.

Mortgage rates aren’t bad, I checked today and I am seeing rates at about 5.25% and even lower for shorter term fixed rates. Before we were so spoiled, that interest rate would be quite good actually.

There is no competition on MANY homes and that typically opens doors to some negotiation for an even better price than the list price, especially if the home has sat on the market for some time.

Most homeowners that are selling in this market need to sell, so are motivated to do so.

This time of year is also typical for not as many buyers to be looking for a home regardless of the market, which gives those buyers looking even maybe more opportunity for a better price and terms.

The lower price will be locked in forever, the interest rate can be refinanced when the rates go down.

Renting is an 100% interest rate. No benefits at all to renting.

This market is especially good for buyers who typically can’t otherwise afford to buy with the softening of prices and/or can’t compete with other buyers when the market is hot. Also, buyers that want/need special programs, FHA, VA, low down payment buyers, first time buyer programs…this is the time.

Once the real estate market settles and it becomes more obvious that it is a ‘good time to buy’….guess what? You and EVERYONE ELSE will be ready to buy at the same exact time…and the market will be hot yet again, and there will be lots of competition and prices will rise quickly.

So, for those people that can’t compete at ultra high levels, you will once again, lose an opportunity to buy.

This is also a good time for all cash buyers that do not need financing because then the mortgage rate does not affect you, and there are some good deals to be had at this time.

This is my 27th year as a realtor. I have seen this cycle a few times and in my 27 year career, the lows don’t tend to last very long…but the highs tend to last for many years.

 

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The Long Term Benefits to Buying a Home at a Younger Age…

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This is a good read and I wanted to share:

Buy young, earn more: Buying a house before age 35 gives homeowners more bang for their buck

Today’s young adults are less likely to own a home compared with baby boomers and Gen Xers at the same age. Our recent work has investigated why millennials have lower homeownership rates than prior generations, but the long-term consequences of homeownership delays are not well understood.

Our analysis starts the conversation about these consequences. We find that delaying homeownership may reduce the wealth that millennials generate over their lifetime.

Most of today’s older homeowners bought their first homes before age 35

Using the Panel Study of Income Dynamics (PSID), a dataset that has followed US individuals since 1968, we tracked people who reached age 60 between 2003 and 2015. The PSID switched to a biannual survey in 1997, so we used information at age 61 for those who were not surveyed at age 60.

Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample (bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25 (figure 1). But only 37 percent of household heads ages 25 to 34 and 13 percent of those ages 18 to 24 owned a home in 2016.

figure 1

Those who bought earlier got the biggest bang for their housing buck

The impact of these earlier purchases is significant. Those who bought their first home between ages 25 and 34 have the greatest housing wealth by their sixties. At age 60 or 61, their median home equity (in 2015 inflation-adjusted dollars) is close to $150,000 (figure 2).

Those who bought their houses later have significantly lower housing wealth. Ten years of appreciation alone can make a big difference. There is a $72,000 difference in the median housing wealth of those who bought their first home between ages 25 and 34 and those who waited until they were 35 to 44. If they wait until they are 45 or older, the median wealth is more than $100,000 lower.

And while those who bought their houses before age 25 have a median home equity of $130,000, it’s important to understand why those who bought the earliest don’t end up with the most median home equity (table 1).

The youngest buyers have lower incomes, are less educated, and buy lower-priced homes. The median first-home value for these buyers is less than $70,000, while the median first-home value is around $125,000 for the other three groups.

But even though these younger homeowners ended up with less median equity, they have the largest return on their housing investment. The ratio between the median home equity at age 60 or 61 and median price of the first home decreases with the first age of homebuying: the ratio is highest for those who bought their first home before age 25 (1.93) and the lowest for those who bought their first homes after age 44 (0.36).

The bottom line is, those who bought houses before age 25 got the biggest bang for their housing buck.

figure 2

table 1

Those who bought earlier live in more expensive houses and have less mortgage debt in their sixties

For those who bought their first homes when they were younger, greater home equity came from home price appreciation and paying down their mortgage debt. Those who bought their first home between ages 25 to 34 live in more expensive houses in their sixties than those who bought earlier or later. Their median house value at age 60 or 61 is $240,000.

Those who bought before 25 have lower median house value when they are older (as would be expected from their lower educational attainment) but have lower mortgage debt because they have owned their home longer. Their median remaining principal is less than $11,000, considerably lower than the other three groups.

Our analysis shows that those who bought their first home earlier are financially better off in their sixties. This suggests that deferring home purchases could have long-term economic consequences for millennials and the nation’s economic well-being.

As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.

While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.

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Make Your Property More Attractive for Homebuyers

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Ensure a Good First Impression

Homebuyers make up their minds about a property in the first few minutes. Make sure your home makes that vital first impression. New paint does wonders. Make sure the front yard is flawless with manicured lawns and attractive foliage. Add a hanging basket or some flower pots at the door. The front door is also critical, make sure the hardware is presentable.

Make them Feel Welcome

Don’t forget buying a home is in many ways an emotional decision, so it’s important to give buyers that warm and fuzzy feeling! Keep the temperature in the home at a comfortable level. Light some candles in the bathrooms and make sure it smells nice and clean. Have fresh flowers around the house.

But don’t make it too personal

Make them feel welcome, but don’t go too far. Too much personality, for example in the form of personal possessions and family photos makes it hard for buyers to visualize living in the space.

Clear out the Clutter

Make sure your property is clutter-free for all your viewings. This will make your home look and feel bigger, and the buyers will be able to imagine how they could make the space their own. Make sure that there is a clean, logical flow through the home by getting rid of all excess furniture. Less is more.

Improve Lighting

This is another way to make your home seem more spacious. Open all your curtains and flood the space with natural light. Make sure the darker rooms are also lit. Invest in some light fixtures and fittings, and place them strategically to illuminate even the gloomiest of areas.

Decorate to Sell That House

Slap on a fresh coat of paint in a neutral color to give it that blank canvas look but do not be too sterile. Have some contrast in the trim as well as the ceiling. Neutral colors make properties appear lighter and brighter, so take advantage of this inexpensive and easy option. You may also add color with decorative window coverings, rugs, and towels.

Clean Up Your Act

Your home should be spotless. Make sure the beds are made and the countertops are free of clutter. The dishes should be put away and nothing should be scattered on the floor. Don’t forget to tidy your garden too: Cut the shrubs back, sweep the patio, and wipe down the backyard furniture.

Those Minor Repairs You Put Off

It is easy to forget things such as broken doorknobs, cracked tiles, holes in walls and damaged but buyers will notice them first thing as they are walking around your home.

Maximize Your Space

The golden rule of selling is to make your space look and feel bigger and better than what your competitors have to offer. We’ve already mentioned that lighting your home, both naturally and artificially, can maximize your assets, but getting rid of bulky furniture can also be a great way of making the most of what you have. Large pieces of furniture make a space feel smaller, so put these items into storage and dress your home with more compact pieces.

Don’t Forget Your Floors

Make the investment of improving and investing in those floors. Worn carpets and damaged vinyl floors need to be replaced, and wooden floors especially should undergo some maintenance. This is not chap by any means, but the prospect of selling your home for the best possible price will likely outweigh the cost.

Remove Pets During Showings

You do not need to remind the potential buyer that the previous owner kept pets.

Try to remove your pets from your home when you are showing the home. Having a pet in the house or yard can create complications for your agent while trying to show the house, and puts your pet at risk of accidentally getting out during the showing. There are also liability issues to deal with as well. They may react differently to stranger and it may cause them stress. All pet-related damage should be repaired prior to showing the home. Make sure to also remove all odors and stains. New visitors will notice smells when they come to view the house. This is not something you want to happen. Have your carpet and floors professionally cleaned or replaced. Pick up any messes in the backyard and have any sod replaced and other damage repaired.

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