August Market Update

Happy August friends! I would like to begin by saying THANK YOU SO MUCH to our amazing clients and friends! Hatch Realty Group has helped 57 families reach their real estate goals in the past 12 months due your continued support and referrals. You guys are the absolute BEST and I want you to know that you are greatly appreciated!

Now that we are nearing the end of the summer I can't help but think that the holidays are just around the corner….But I won't go there because there’s still lots of fun left for us to have in the sunshine. Some of you are enjoying the final days before your kids go back to school and for many, finding housing is not on people’s minds. I’m going glamping this weekend at KOA in Petaluma with a group 30 of my friends and their kids for one of our last get togethers before they’re all back on the grind.

That’s what a majority of the people do this month and that’s why this is also a great time to buy a house! I have seen so many price reductions and homes sitting on the market it almost seems like as a free for all for those looking to buy a home. Yes there are still multiple offers, but they’re not necessarily all over the asking price and not within the week that the home is listed. If you’re a pre-approved buyer, there’s no need to be afraid anymore. This is your time. If you’re a seller, there’s also no need to worry. If your home is priced right, looks great and is easy to show, it will sell!

We just got in contract for a home in San Jose in a good neighborhood with an inspection contingency in place and $50k below asking price. According to the listing agent, we were in competition with two other buyers and they choose us over one other identical offer that they put in back up position. All three offers were below list price! (They chose to work with us due to our well-packaged offer and the buyers’ introduction letter)

One of my big shot real estate friends in the Lamorinda area told me that for his listings, he too is still generally getting multiple offers, but they are “all over the place” and taking a little longer than what he’s used to. After sitting on the market for 3 weeks, one of his HOT listings (which he thought would be gone in a week) got 4 offers at the same time. 2 of the offers were below asking price, one was right at asking and another was $200k above with a 40% downpayment. Needless to say in his case, it worked out well for his seller, but hadn’t it been for that outlier buyer, one lucky buyer would have gotten in contract for just the list price.

Builders and new developments are giving more incentives in the summer months. We just helped one client in Belmont secure an additional parking space for her unit. Sold for an additional $40k earlier in the process, this was a nice score for our buyer. New developments in Santa Rosa, Sacramento and many others just outside of the Bay Area are also offering rebates for using their in house lenders and are increasing commissions for agents to entice them to drive the buyers their way. With that said, don’t go to a new development without us or without saying you have an agent. Bring our card. We can negotiate for you things that you wouldn’t know to negotiate for. Once you go and sign in without an agent, you might have waived your right to having one. Builders do not reduce the price when there is no agent. Corporate pays the commission from a different “pot” as the builder wants to keep their prices trending upward to protect the value for their early buyers. Incentives are typically offered outside of the purchase price for the larger developments. Let us know if you have more questions about this. We would love to assist with your new home purchase.

Typically there’s a real estate rally at the end of the year from mid-September to the end of the year. That has been the trend with the exception of last year, when the 4th quarter was dead. With all the new IPO money itching to get vested and our current steady market condition, I am hopeful that the market will remain strong to the end of 2019 and again in the Spring. Rates just went down again and are super LOW for purchases and even refinances. There are plenty of people in the Bay Area that need homes and many others who would finally like to retire, cash out and move out of the area. This is my favorite market. We are entering into a more even keel market prices are generally stable.

A MILLION THANK YOU’s again to our friends for your continued support and referrals. If you or someone you know is in the market to buy, sell or rent, please contact Hatch Realty Group today!