OC-Appraisals Ca Real Estate News

February 2019 Newsletter Conversation with Anxious Seller & 2019 New Year New Market
February 6th, 2019 4:39 AM
?OC-Appraisals, Orange Co, Ca Residential Appraiser
               February 2019  Monthly Newsletter
Conversation with an Anxious Seller
           What can we expect in 2019?              
 
      
(714) 328-3115



I received a call last week from an anxious Seller.....
Can you do an Appraisal...
Can you provide me a "Value" in the next "Hour" or "Day"?
My first question is always, "Why do you want/need an appraisal?"
This helps me understand the "Scope of my Work" and the  "options I can offer" them.
Legal, Pre-sale, Personal, Date of Death, Divorce, IRS, Finance...etc.

This Caller went on to explain the property was listed, had a Great Open House last weekend, did not receive any offers and had already reduced the list price in the first 15 days.
This Caller went on to explain that they did not "want to miss" the "Early Spring buying Season" and that they had a "Price they wanted" and did not want to "Chase the Market" and that they "Needed a Solid Offer by a specific date".
Then the Caller, went on to ask.... is this still a "Sellers Market?"
Are values still on the rise? 
Why did I not get an offer(s) at my first open house?
Trying to calm the Caller, I explained that it was "Early" in the 2019 season, the Market had a decline in sales volume over the last 2 years, and some markets had "Softened" depending on the product, location, improvements and value range, days on the market were longer, if not priced properly in the market and that "All Offers should be considered".

I realized that I was listening to what Realtors go through  - anyone have some chocolate or bottle of Wine?

The Caller then told me that what I shared with them, they had heard from the other realtors and advisors they had talked with.... just wanted another opinion!!! 
 I just hope the Caller, did not hang up and call someone else.

I told the Caller to  follow the advise of their Agent. 
Good Agents know how to properly market the home, to being in the prospective buyer pool and price the home for the current market.

As an Appraiser - when I call on the listing agent or the buyers agent to ask about the seller or buyers motivation, this conversation has important value.
Did the seller set the original price slightly above market value.
Did the seller have unrealistic expectations on an offer and be in escrow within 30 days?
Why did the seller want or need to sell?
The Seller and Buyer Motivations, Terms, Concessions are important factors that Appraisers consider, and want to be told about.
Another Question I like to ask is :  Could you resale this property in 3-6 months at the same price and days on the market?


New Year New Market 2019 

I ran a quick search in the MLS: for the "South Orange Co Area"
 February 4, 2019
N: I-133 Toll Rd.  E:Cleveland National Forest.  S: San Clemente
W: Laguna Beach

Jan 2019   SFR Closed  Sales: 273
$440,000 - $4,387,500   Avg: $1,040,901
Sf Ft Range: 595-10,000 sf  Avg: 2,340
Yr Built: 1900 - 2018  Avg: 1984
Lot Size Data had errors and was not reliable.
Dom: 0-391  Avg: 62

Jan 2018 SFR Closed Sales: 296
$415,000 - $12,900,000   Avg: $1,107,651
Sf Ft Range: 826-8,000 sf  Avg: 2,435
Yr Built: 1936 - 2018  Avg: 1986
Lot Size: 1,250sf - 3.5 ac  Avg: 8,125 sf
Dom: 0-475  Avg: 58

MLS Data as of February 4, 2019
SFR (Att & Det)  Active Listings:  1,335 
 (approximately 5 months of listings inventory based on the number of sales in Jan 2019)

List Price Range: $413,900 - $44,000,000  Avg: $2,006,976 
Sf range: 500 - 14,147  Avg: 3,086 sf
Dom: 0 - 1,019  Avg: 93
Yr Built: 1906 - 2020  Avg: 1990
7 listings under $499,000
130 under $699,999
168 under $799,999
127 under $899,999
83 Under $999,999
202 between  $1,000,000 - $1,299,999
211 between  $1,300,000 - $1,699,999
89 between    $1,700,000 - $1,999,999
234 between  $2,000,000 - $3,999,999
84 between   $4,000,000 - $9,999,999


SFR (Att & Det)  Under Contract and Pending: 463
Price Range: $439,000 - $9,995,999   Avg: $1,279,000
SF range: 724 - 7,639  Avg: 2,642 sf
Built: 1922 - 2019  Avg: 1990
DOM: 0 - 702  Avg: 89
17 between $439,900 - $599,999
51 under $699,999
89 under $799,999
69 under $899,999
42 under $999,999
55 between  $1,000,000 - $1,299,999
71 between  $1,300,000 - $1,999,999
 48 between  $2,000,000 - $2,999,999
18 between  $3,000,000 - $4,999,999
3 between  $6,495,999 - $9,995999

Increase in Under Contract/Pending compared to the number of sales that closed in January 2019
It's always important to look at all the  numbers:  active, under contract/pending, sales and the canceled/expired/withdrawn

February 2018: 306 Closed Sales
Price Range: $489,000 - $12,000,000  Avg: $1,155,886
SF: 969 - 9,218 sf  Avg: 2,617 sf
built: 1922 - 2017  Avg: 1986
Dom: 0-451  Avg: 55

Take Care and Stay Safe
                                                                       

 Susan Sauer
www.oc-appraisals.com
(714) 328-3115