Real Estate Podcast with Troy Davis: Recent Episodes

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Here are a few different ways that you can stay competitive as a homebuyer in this fierce market:

1. Be prepared. If you’re purchasing with a loan, make sure you’ve met with a loan officer and provided them with your tax returns, bank statements, and pay stubs. The goal is to obtain a pre-approval letter that verifies your assets, income, and down payment. If you’re paying with cash, you’ll need a proof of funds letter from your bank. If you do use a bank statement to verify your funds, make sure you black out all your account numbers and personal information.

2. Be aggressive. You may have to make an offer over asking price. If you intend to live in this home and it’s the home of your dreams, offering above asking price might only mean a few extra dollars on your monthly payment. On a 30-year loan with a 4.5% interest rate, the monthly payment is around $1,031 for a $200,000 home. If the purchase price is bumped up to $210,000, the monthly payment just goes up to $1,064. That’s just a $33 difference to potentially own the home of your dreams.

“You may have to make an offer over asking price.”

1. Be creative. Sometimes offering above asking price either isn’t an option or isn’t enough. To make your offer really stand out, consider structuring it with a short inspection period. Most sellers will appreciate you getting these done as quickly as possible so they can concentrate on closing and moving. Talk with your lender about shortening your appraisal and financing contingencies to get the extra edge. You could also pay for the seller’s closing fees or write a heartfelt letter to the sellers letting them know why you like the home and why you’d love to have it.

If you’re a homebuyer and you want to get more expert advice or need our help making your next purchase or sale, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

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Buying or selling a home is a major undertaking, so having a professional to guide you can make an incredible difference in your success. On the other hand, working with the wrong agent can be a costly mistake. So how do you go about choosing an agent who’s a good fit for you?

One of the best ways to find the right agent is by interviewing a number of candidates and asking each of them these three questions:

1. How many homes have you sold in the last 12 months? Many real estate agents will tell you how many years they’ve been in the business, but recent activity can be more relevant than their time spent in the business. Knowing their recent track record of success can show you how well they understand the current market. While you’re discussing the recent transactions they’ve worked on, also make sure to ask whether they work more frequently with buyers or with sellers.

“The right agent will be experienced, diligent, and have a concrete plan for meeting your specific goals.”

1. Can I contact your past clients for references? Anyone can boast about their own expertise, but speaking directly with their past clients can give you a more accurate gauge of whether or not their claims are true. 

2. What is your strategy for my specific needs? If you’re a buyer, you’ll want to know how the agent plans to find properties for you. And if you’re a seller, you’ll want to determine how the seller will advertise your home. 

As an agent answers each of these questions, you should get the sense that they are someone you can trust. The right agent will be experienced, diligent, and have a concrete plan for meeting your specific goals.

If you have any other questions, would like more information, or would like to see whether my team and I could be helpful in meeting your real estate needs, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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Sellers often ask me how they can generate multiple offers on their home sale. Here are a few ways of doing that:

1. Preparation. Homes with a fresh, inviting feel will attract more attention. A few ways to provide that feeling are by decluttering or adding fresh paint or carpet. Buyers are looking for a turnkey home. Consider sprucing up the yard by doing some landscaping and powerwashing the driveway.

2. Pricing. Position your home for maximum value against the competition. What are the prices of the homes you are competing against? You want your home to be the best looking and the best priced of the bunch.

“Take the time to study trends, pricing, and interest rates in your market.”

1. Consider an offer deadline. If possible, you want your home to have at least five days of marketing and one full weekend of exposure. Let buyers know they can submit their offers, but you won’t respond to them until the deadline date.

2. Understand your market. Know the inventory in the different price ranges in your market. Take time to study the trends in home pricing, interest rates, and seasonality.

Implementing these strategies and understanding the market will help you generate multiple offers on your home. If you have any questions in the meantime or would like to learn more about the market, don’t hesitate to give me a call or send me an email. I would love to help.

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What’s the latest update from our Butte County market? Here are the answers to some common questions I’ve been getting, which should give you an idea.

First, is it a buyer’s market or a seller’s market?

Currently, we’re in a seller’s market. This means there is high demand for homes but low inventory—we have more buyers than we have homes for sale.

What does housing inventory look like?

It depends on your location and price bracket. For example, in Chico, which is a really good price bracket, there is less than two month’s worth of inventory for homes under $800,000. In Paradise, it’s the same story for homes priced under $400,000—there is less than two months’ worth of inventory. In Magalia and Oroville, there is less than two months’ worth of inventory for homes under $300,000. This means that at the current pace these homes are selling in these price brackets, it will take about two months to sell all of them.

“If you’re a buyer, you need to act quickly.”

How does this inventory affect home values?

For sellers, this inventory means home values will continue to appreciate. For buyer’s, it just means you might need to be aggressive to increase your odds of getting your offer accepted.

What do interest rates look like?

They’re still low. However, this can vary depending on your credit.

What does this all mean for buyers and sellers?

Again, if you’re a buyer, it means you need to be ready to act quickly. Have your pre-qualification letter and verification of funds ready to submit with your offer. If you’re a seller, it means you must be proactive when preparing your home for the market—doing so will help you net more money at the closing table.

If you have any other questions or you’re thinking about buying or selling in our market, don’t hesitate to reach out to me. I’d love to help you.