Most industries have experienced a downturn since the pandemic. Consider hospitality, construction, entertainment, travel, transportation, and retail. However, the opposite is true of real estate. In fact, experts agree that the housing market remains hotter than it has been in years across the country. The same can be said of housing in the San Gabriel Valley, where Eastland Escrows is based. Homes and other investment properties are selling fast. In fact, many sell for well above asking price. Low inventory pushes people to pull the trigger on buying a home instead of waiting at the risk of losing a desired property.
Housing market statistics
- The median sales price for houses bought in September 2019 was $299,400.
- The average down payment for a new home is $59,880. (No doubt California brings up that average.)
- 701,000 new houses were sold in the United States this year.
- The homeownership rate in the third quarter of 2019 was 64.8%.
- The National Association of Realtors reports that, at 37 percent, Millennials are the biggest buyers on the housing market.
- Thirty-three percent of people who purchase a home in the United States are first-time home buyers.
- The current average time it takes to sell a home in California — from listing through closing — is approximately 85 days. That’s 50 days to get an offer, plus the typical 35-day closing period.
- The average sale price in California in 2019 was $582,500. In 2020, that figure was $1,379,427.
- Nationally, the average price in 2019 was $307,750. In 2020, it was $601,428.
What the Hot Market Means for California Real Estate Agents
If you work as a realtor in California, one of the biggest challenge you may face is how tojuggle all of the work that comes your way.With homes selling so quickly and at such high prices, homes spend far less time on the market than what was once common. But this could embolden homeowners to try to represent themselves. After all, since it’s so easy to sell a home, why should they relinquish part of their profit to hire you? Although we are preaching to the choir, we have some ideas for you about how to convince buyers that your modest commission is money well spent.
Why Hire a Real Estate Agent in a Hot Market? (Feel free to reprint this to advertise your services as a realtor)
- Leave it to the Pros
Although you could probably teach yourself how to bake bread, no matter how much time you spend pouring over cookbooks, you will never be a professional baker (unless that’s your full-time occupation!) As a result, you might come close, but you won’t be able to produce professional results if you’re an amateur. When it comes to selling your house, this is also the case. You may well be able to figure out how to list your own home. But you will not have access to the Multiple Listing Services, nor will you be able to run comps. Since this is the case, you won’t know how to set your price to sell.
- Writing Offers is a Delicate Process
If you don’t know how to make your offer stand out, you could miss out on the home of your dreams. Don’t make this mistake. Hire someone who knows the market and can position your offer, so it wins the day. In today’s hot Southern California housing market, multiple offers are the norm. Without years of applicable experience, you could leave money on the table as a seller or pay more than you need to as a buyer.
- Bottom Dollar
A 2017 study indicates that FSBOs fetched 30 percent less for their owners than agent-listed properties. This is far more than the commission you would pay an agent. What’s more, you will likely pay a commission if the buyer of your listed property is represented by an agent. The buyer’s agent’s commission is typically factored into the deal. So, why not use an agent if you’re the buyer? After all, the seller pays the commission, not you. Of course, the seller could refuse to do so. But since this is a sellers’ market, the one who lists the property generally has the upper hand.
- Eagle Eye
Most buyers know what they want from a property, from the number of bedrooms to location. You’ll probably jump at the chance to make an offer for homes which fit this narrow profile. However, a real estate agent is well acquainted with issues that might not cross the average buyer’s mind. Someone with experience will recognize telltale signs of potential problems and can warn you before you borrow trouble. What’s more, they will know how to address them. This type of experience and knowledge can end up saving you thousands down the road.
ABOUT EASTLAND ESCROWS IN COVINA, CALIFORNIA
As a real estate agent, you can direct your buyer or seller to an escrow agency. Choose one that will work for you and your client!
Eastland Escrows, Inc. is an independent escrow company based in Covina, CA serving all of Southern California since 1973. With over a 100 years of combined experience, we pride ourselves in working like a dog on behalf of all our clients! We have closed thousands of escrow transactions from real estate sales and refinances to business sales.