Sunday, October 20, 2019

Bringing a Desire for Home Ownership to Reality! 107924606

Many people desire to own a home, but don’t know where to begin to start the project.  When some people try to take the step to own a home, they hit a roadblock and back off and shelve the idea for a season, maybe even for years.  But I say to my readers, all blocks and obstacles to owning a home are solve-able.  ALL!  Maybe it has never been broken down for you so I will attempt it here.

Some people do not earn enough money to buy a home, and this is most difficult item to correct. But it is changeable. A person can get a better job or seek raises by being a stronger employee; they can get a 2nd job or even start a supplemental home business. There are ways to maneuver for people with too little income. If they are on the border of income or just below it, a lease option may be what they need. That is leasing a home with an option to purchase it at a contractually specified time. If they are not ready at that time, it can be extended if both parties agree, or, they simply lose their option fee which is not that large, and, they are not obligated to proceed.

The next big block is income verification.  But this is solve-able too. The loan people look for 2 years of employment to verify. If self-employed, then 2 years of IRS 1040 forms are used. If a person cannot produce the 1040’s, for whatever the reason may be, they may be able to be qualified based on their bank statement history over 24 months. As you can see, there are ways to work the issues, if you the buyer has the desire and the will to get into a home. Home ownership in America is based on desire, plain and simple. An easier road is to go rent an apartment or house and just not think about obstacles. But home ownership procrastinated or delayed can lead to other problems, such as rent increases or landlords selling homes out from under renters.

The last thing I want to mention is credit, credit scores and credit unworthiness. This may be the easiest block in buying a home to solve. Many credit issues can be changed in just a handful of months. Many people rely on Credit Karma to keep up on their scores. But Credit Karma lowballs your scores in hope that you will take out a higher interest credit card like Capital One. It’s a money maker for them and highly deceptive. Those are not FICO Scores they are quoting you, and FICO is the only scoring system that home lenders use.  

Currently, my own Credit Karma score runs about 50 points lower than my FICO score.  Imagine if that particular deception blocked you from buying a home in the past while housing prices continued to climb up higher and higher. A good house lender will run your credit for FICO scores and give you a true reading. Forget fearing inquiries on your credit, if you don’t do it often it is not that damaging. At times, one person may be score qualified and their spouse is not due to credit issues. Focusing on that other spouse’s credit scores is the answer especially if they have an income that qualifies the couple for more home and a higher price.

I realize timing is everything in home buying, and people may be holding off due to high prices of homes. But there may be a location or neighborhood that is still affordable for you and beginning to think about it and educate one’s self is the way to establish thought processes that can later bring the desired home ownership to pass. I will continue to share practical helps and ideas in upcoming blog issues. Knowledge is very powerful for consumers. If you’d like to discuss anything further with me about home buying or getting access to a competent and honest home lender, call me.  916-580-7235, Greg Nichols, MFN Realty.

But who are we? Greg Nichols, Broker of MFN Realty markets homes in Sacramento, Placer and El Dorado Counties. We are based in Roseville. I am a highly seasoned agent with much experience. Call us at 916-580-7235 if you wish to discuss your home, and find out the value of your home, if you are planning to sell.

Greg Nichols
MFN Realty
DRE # 00632894

A Licensed California Real Estate Broker

Wednesday, October 2, 2019

Are You Interested in a Fixer-Upper Home? 107924606

Consider a Renovation Mortgage Loan. If you desire to buy a fixer-upper or just a home that needs updating, you can use just one loan application and one loan that finances the whole package, the purchase and the repairs all included. This type of loan allows you to locate a fixer property and to make a low offer and secure the home at a price that saves you money by the time the repairs are all done. 

At times, a buyer might buy a home that needs updating so the buyer buys it and then must resort to using credit cards or 401K funds to update it, hoping to refinance it later and pay back the accounts. The Renovation Mortgage Loan may be a solution, as you are borrowing all that you need up front in one loan. Call me to discuss this special financing or any of your real estate needs. 


But who are we? 

Greg Nichols
MFN Realty
DRE # 00632894

A Licensed California Real Estate Broker

Monday, September 2, 2019

The Internet Firms Are Listing Old Information! 107924606

The Internet Firms Are Listing Old Information!

It is very frustrating to have 4 different buyers all call you as an agent with a list of bogus listings of houses to look up. I won't name any names, but we all know who those Internet firms are that create these lists. These firms allow buyers to sit at home in their pajamas to look over houses. Now sometimes, they are actually accurate. Often, they are not, with the home having been sold about 3-4 years prior. I am referring to Trulia, Zillow,, Redfin, and others. 

Furthermore, many of their listings are not only old sales, but were never on the market at all. If an individual agent did this, it would be a punishable crime. It is "bait and switch." These firms are seemingly untouchable by the regulating authorities or the agencies just don't care. 

These firms are in the business of making the phone ring for agents who pay them money to get unsuspecting buyers to call the agents, and when they call, the agents who take the calls have a much more sparse selection of homes to share, a selection that more represents the true reality of the marketplace. These agents are actually paying and supporting these firms to use unscrupulous tactics, and, these agents know they are doing it.   

Sadly, I have also noticed many real estate agencies also leaving very old sales on their own lists as "Active" to also make the phone ring. Buyers have not totally realized what kind of damage this "come on" marketing does, as it tends to skew the buyer's perception of just what kind of a market we are in.

A buyer simply needs to hook up with an honest agent who will run a computerized list of the true market and actual "available" homes. We at MFN Realty can do this list for you and we can make sure you get the latest new listing in your desired area sent to you instantly by email as they are entered into the system.

If professionals play games with the truth in business, then who knows what other truth they will bend? Food for thought!

Greg Nichols
MFN Realty
DRE # 00632894

A Licensed California Real Estate Broker

Monday, August 19, 2019

We Can Sell Any Home No Matter the Issues! 107924606

Fixers, Probates, Trusts, Code Issues,

Permit Problems, Inheritance Homes!

We Can Sell Any Home!

I have years of selling properties with issues: family trusts, fixers, family properties, probates, foreclosures, code violations, permit problems, short sales, divorce forced sales and inheritance properties with problems. Call me if you or a friend or loved one needs help with selling a piece of real estate for the "most value possible" in Sacramento County or Placer County areas! I take care of our sellers, and we have a waiting list of buyers. Call us at 916-580-7235 Greg Nichols, Broker of MFN Realty, #00632894

Greg Nichols
MFN Realty
DRE # 00632894

A Licensed California Real Estate Broker

Monday, July 22, 2019

Buy a New Home With Us and Obtain a Substantial Rebate! 107924606

New Home Buyers - Get a Huge Rebate!

If you have been wanting a brand new home, contact our firm first and receive an extremely large refund at closing. Contact us anywhere in the Tri-county area to get this refund, if you are in Sacramento, Folsom, El Dorado Hills, Roseville, Rocklin, West Sac, Elk Grove, Rancho Cordova and many other areas. 

This is quite simple:  Call us at 916-580-7235. One of our agents need to accompany you to the new home models on the first visit. Do not go there without getting to us first. Think what you can do with this money!  Our firm simply refunds you $1000 of the commissions at closing  (certain restrictions apply)

If You Have a Home to Sell!

We have an incredible marketing system set up to get you top dollar in this current market. I have a network in the Bay Area where your home is promoted there and here in Sacramento when we are your listing agent.  This costs you nothing extra.  This is an extra blitz we offer our sellers.  It helps create more and higher offers. Call us today at 916-580-7235  Another rebate may be a potential here too, giving you two rebates on both homes. 

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

Wednesday, May 15, 2019

More and Higher Offers with Our Service! 107924606

Our System Can Enhance Your Bottom Line As a Seller!

We have set up a proprietary marketing arm online in the SF Bay Area to display your home to millions of additional people over and above the Sacramento Valley people we show it to. This costs you nothing extra, we pay for this. 

Call us today to discuss selling your home. 916-580-7235

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

Friday, March 1, 2019

A Blog to Help Buyers and Sellers Understand the Marketplace! 107924606

This is a blog to help homeowners and home buyers figure out and get a handle on what exactly is going on in the marketplace in Sacramento, Placer and El Dorado Counties.  We will share many expert sources with you and give our opinion too.  Is there a downturn coming?  When will it begin?  Should I get my house sold now before it's too late?  Should we wait to buy another home?  These are questions we hear. 

No one in the industry knows the future, but past history, certain indicators, and basic real estate principles can help you make decisions as you become more savvy about the market and real estate.  My goal is to help my blog readers become more knowledgeable and gain some understanding so that they make more educated decisions and lose less money in real estate over the rest of their lives. Does that sound fair?  Some may use this blog update to launch a career in house flipping or more conventional real estate investing.  You can subscribe with us to receive the updates if you would like. 

A Few Critical Inspections in a Home Purchase Transaction

There are a few inspections that no home sale should be without, except in cases of the most knowledgeable buyers such as property flippers.  But even most of the flippers want to see at least a pest inspection.  Most consumers desperately need at least 2 inspections: a Pest Control Inspection, and a Whole House Inspection.  A few weeks ago, I covered Pest Inspections here.  On this blog entry, I will discuss Whole House Inspections. 

What is a Whole House Inspection Report?

"Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections. The inspector prepares and delivers to the client a written report of findings. A professional home inspection is an examination of the current condition of a house."*

*Source: Wikipedia, the Free Encyclopedia, Home Inspection page,

From Greg:  Last time we discussed termite inspections and the Whole House Inspection is another critical inspection done during an escrow to protect the buyer.  The Whole House Inspections did not even exist When I began in real estate.  The buyer and I would go check over the home right before closing to find a fix list and then present it to the agent of the seller.  The industry has certainly come a long way to do things better.  The inspection is now done by an expert.  It can cost anywhere from $250 to $400, depending on the inspection firm, and the buyer usually pays for it at the time it is done.  It is done early in the escrow, before the contingency lapse time, so a buyer is not obligated to buy the home if something earthshaking is found by the inspector.  It also allows time for buyer and seller to negotiate through their agents over what findings on the inspection are valid and unacceptable to the buyer and should be done by the seller. 

Items inspected by a home inspector are the electrical, plumbing, roofing, appliances, and many other items too many to list.  It is a totally comprehensive inspection and report. 

The home inspector usually provides a written report and supporting photos to the buyer, and often it is 20 to 30 or more pages, so it is quite thorough.  I always urge buyers I represent to use an inspector right away after buying a home, and the cost of it is a routine buyer's closing cost.  An inspector's trained eye can find a serious but hidden major defect.  It is just good business to always have the two reports I covered here when you are buying a home. 

Neither of the 2 minimum inspections are usually done on new builder homes, as the builder usually has a company representative inspect the home with the buyer at closing and then fix defects found from the builder.  Then, the builder is responsible along with the builder's subcontractors for 3 years afterward.  The whole house inspection is done on most resale purchases and is an integral part of almost all house transactions to protect the buyer. 

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

Thursday, February 21, 2019

Bay Area Home buyer Exodus to Sacramento CA? 107924606

As a Sacramento real estate agent, I use a separate marketing blog, directed to the Bay Area, to draw interest from the many migrating home buyers and investors that are interested in our Sacramento area.  I began that project last summer.  The average home in San Francisco is selling for $1.37 Million dollars.* (Note, I said "average.")  The average home in San Jose is selling for $1.09 Million dollars.* 

We also have a Facebook, Instagram and You Tube Audience in the Bay Area that follows our listing and blogs. We even do a video tour of your home and show it to all of those Bay Area buyers who have cash money to buy your home. 

Imagine if their home is above average. That is who is exiting the Bay Area, looking for better values in Sacramento and Roseville/Rocklin, etc., and they are carrying boatloads of cash with them as they come. No wonder they make all cash offers, and they don't mind over bidding everyone else. They can sell an average home over there and come over here and buy an exceptional above average home in Sacramento or surrounding communities for all cash and still have cash to put in their pocket also. Some Sacramento based buyers are angered at having to bid against Bay Area money and with good reason. But Sacramento sellers love it. 

Let's say they sold their home in the Bay Area and netted $1.3 Million in cash. Then let's say they see your home you just listed for $800,000. Someone brings you $790,000 as an offer. But this Bay Area person, who netted $1.3 Million in cash on the sale of their home, offers you an over the bid price of $830,000. Done deal. Were they injured at all for over paying you for your home? No, they used inflated money from their home and your $800,000 home was probably much bigger and nicer than their Bay Area home they sold for well over a Million. It does make you stop and think, doesn't it.

A new survey says that 53% of Californians want to leave the state.* The article I quote below cites the high cost of living as the main reason. But a huge problem which most will agree on in California, is the difficulty in finding affordable housing.

So, if there is a looming exodus in seed form on the minds of many Californians, which may or may not happen, what we do know is that there is an exodus already happening from the big cities, including the Bay Area, due to prices and economics. Apparently, the Sacramento region has been the biggest recipient of the Bay Area outward migration which has resulted in the influx of home buyers to the Sacramento Valley. I want to show you an excerpt from the San Francisco Chronicle SFGate Online article from 2/13/19:

Excerpt begins:

"There have been other signs of the California exodus. In December, it was revealed that one of the most frequently Googled questions in California last year was "Should I move out?" The Bay Area was also found to be leading the nation in outward migration, meaning more people are leaving the region than moving in. However, most people who moved out of the Bay Area didn't go too far; the number one destination was Sacramento, followed by Los Angeles, Seattle, Portland and San Diego."*

End of Excerpt!    To read the full article, go here.

I have set up a marketing system for our clients in the tri-county area to maximize their chances of getting their home noticed by Bay Area home sellers who have cash. It is all about strategic positioning. If our market has softened, then skill and finesse and experience are again going to be in demand as qualities needed in a local real estate agent and firm. In some cases, the way the market was the last few years, a 6th grader could have sold a person's desirable and hot home as the market and the house did its own selling due to low inventory. Commissions nevertheless were paid just the same. Contact us today to discuss your needs and to see how we can help you succeed in selling your home and receiving the best possible offer.

*Source: 53 percent of Californians want to leave the state, according to new survey!
By Alix Martichoux, SFGATE-Online, Chronicle, Published 12:13 pm PST, Wednesday, February 13, 2019

Disclaimer/Indemnification:  This blog is meant for informational purposes only and is not meant to be advice for daily real estate practices. Readers using the materials and sources in this blog understand that the facts are shared as principles, and are not exact advice for specific persons or specific situations. The principles and notifications and facts shared in this blog are meant to raise awareness for consumers so that they may make decisions based on knowledge they obtain from many different sources including this blog. Readers agree to indemnify and hold harmless Greg Nichols and any sources used from liability due to any decisions readers may make in real estate matters based on reading this blog. Readers need to seek out advice from their attorneys or from real estate brokers that they are in contract with who are acting as their legal agents.

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

Tuesday, February 12, 2019

What 5 Housing Experts Said About 2019 Sacramento Real Estate Prices! 107924606

From Greg: I quit law school in 1977 to go into Sacramento real estate.  I was 22 years old, and the firm that I joined was Kiernan Realtors, a very large multi-office firm, headquartered at 3001 P Street.  Maybe some of you older individuals that have been around awhile remember that firm.  As I recall, they later merged with TRI Realtors, a firm from San Francisco.  Another firm bought TRI out, I think it was Prudential Real Estate.  Unless I am mistaken, Coldwell Banker now owns all those offices that still exist. 

That was a different era of real estate.  The purchase agreement and offer form back then was a single, legal size page.  There were no disclosure forms that I remember unless provided from the lender later for the seller and buyer to sign.  Now, in 2019, the offer form, called a Residential Purchase Agreement, is 10 letter sized pages long with further attached disclosures plus many, many separate disclosures also.

     The California real estate law has grown enormously since I began in the industry, with aggressive legislation and many court precedents handed down based on lawsuits filed.  This is why there are so many documents, literally myriads of paperwork to sell a single house.  But every document and disclosure is necessary to protect you in this modern litigious environment we have in 2019 California.  Now, most of these forms are signed with e-signing in the client's own home, saving mountains of literal paperwork.  A good real estate agent understands the land mines out there today that can blow up on a seller or buyer, or the agent.  Great care is taken on every escrow to dot every "i" and cross every "t."  These are the times we live in.  In some ways it is better, in some ways it is not.  I began this blog to help sellers and buyers get more understanding of the marketplace and gain information that can protect and serve them in making better decisions and save them $$ on their bottom line.

And now, our feature article.     

What 5 Housing Experts Said About 2019 Sacramento Real Estate Prices!

Just today, I ran across this recent article, written by Tony Bizjak, quoting 5 experts about 2019 home prices.  I was interested to find out that they mostly agreed with my comments to you in the previous 2 blog entries.  entry1  entry2  Not only is there a consensus that there will be home value appreciation this new year, but they also seem to agree with each other that we are not in a bubble like the one that burst in 2008.

The 5 experts are:

Excerpts begin here:

"Our team: Dean Wehrli is an analyst for John Burns Real Estate Consulting.  Erin Stumpf is a Realtor with Coldwell Banker.  Greg Paquin heads The Gregory Group, a real estate research and data firm.  Pat Shea is president of Lyon Real Estate.  And Ryan Lundquist is an appraiser and author of the Sacramento Appraisal Blog.


Stumpf: 'I believe Sacramento will see a slight increase in home prices in 2019. I foresee a balanced market between buyers and sellers, and that is great news as far as I am concerned. The number of homes available on the market will be slightly higher than in past years, and homes will take slightly longer to sell on average. Appealing homes that are appropriately priced ... will still see competitive multiple offers and sell quickly.'

Wehrli: 'Home prices are likely to be pretty stable, rising modestly by year end. I expect a decent spring selling season, particularly if mortgage rates remain lower as they have been very recently. Inventory is likely to rise a bit, but, remember, we are coming from a few years now of extraordinarily low levels of inventory.'

Shea: 'Look for a very predictable sales pattern once again in 2019. One can expect (house price) appreciation to (be in) the 4 percent to 6 percent range. Continued job growth and upward pressure on employee compensation appear to remain in play for the foreseeable future in Northern California. Mortgage rates remain incredibly favorable.'

Lundquist: 'If buyers put their foot back on the gas pedal, with mortgages rates going down now, there is room in the market to see values increase. It all boils down right now to what buyers are going to do. It’s a blank canvas.'

Paquin: 'We are optimistic for sales and pricing in 2019. There is a real possibility that sales will equal and perhaps exceed 2018 numbers. (Newly constructed homes) should see a modest increase of between 2 percent and 3.5 percent.'


All five experts: No

Wehrli: 'The factors that led to a bubble last time — easy money boosting demand artificially and very high levels of supply — are not present now. That is not to say we are not in for a slowdown when the economy cools, but it should be nothing like last time.'

Shea: 'A respectable number of homes in greater Sacramento are free and clear, and the majority with mortgages have significant equity. Payments are very manageable, due to low interest rates and salary escalations.'

Stumpf: 'Previous buyers (a decade-plus ago) hyper-extended themselves and could not actually afford those homes, and when the market declined many had to short sell or were foreclosed. We just do not have those lending products anymore, and buyers have to qualify for loans. Your average buyer today cannot get a loan without a “skin in the game” down payment, good credit, and verifiable income and employment.'

Paquin: 'As compared to the last housing boom-bust cycle of 2008, there has not been the rapid or significant price increases, the artificial lending that helped facilitate the rapid price increases and lenders have become much more diligent in who can or cannot receive a new-home loan.'"*

End of excerpts

*Source:, Real Estate News, writer - Tony Bizjak, January 10, 2019, updated January 17, 2019. 

From Greg: There are some great insights above, especially about the 2019 prices and appreciation.  As far as the part about not being in a bubble, I will, for now, not say much but I may have some thoughts on it.  It is possible we may actually have a current price bubble though smaller and less destructive than 2008's bubble, but a bubble just the same, but that is a subject for a future blog.

See the last 2 blogs: 

What is Going on in the Local Real Estate Market?

Are Real Estate Prices Going Up or Down?

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

Wednesday, February 6, 2019

Are Real Estate Prices Going Up or Down? 107924606

     In our previous blog, we stated that many believe the market has leveled out and softened, but we also stated that there seems to be a pent up demand for many types of houses in newer and higher socio-economic neighborhoods.  One basic rule of economics is that if the demand exceeds the supply, then prices will not decrease, but "may" yet increase more.  Is there still a demand for certain types of homes?  Yes, I believe most of us believe that a huge demand is here.  How many of us even since the New Year of 2019 have heard people shout out on social media, "my house just sold in one day," or, "my house just sold in two days?"

     Not only are there qualified buyers with housing needs right now within our own tri-county region, there are also Bay Area people wanting affordable "nice" housing and many of them have cold hard cash and will even sometimes pay more to beat the competition, thereby eliminating the appraisals that are needed on usual transactions.  This drives prices up.  So if we have mixed signals of a softening marketplace or a leveling, then can that cause a pause in buyers to wait and see?  Probably not because home-buying is an emotional act from the heart which causes people to buy quickly, even at wrong times.  You have the "softening" lingo on one side, and the "demand" principle on the other.  

     A Note on iBuyer firms.  These may seem like a simple solution to softened market selling as you get an instant offer.  One such firm is Opendoor. These firms do charge a fee to the seller.  "iBuyer profits mostly stem from the service fee they charge, which tend to be higher than typical listing agents' commissions."*

*Source:  From the "California Real Estate" magazine, September 2018 issue, page 23, from article, The ERA of iBuyers.

A Critical Inspection Needed in a Home Purchase Transaction

     There are a few inspections that no home sale should be without, except in cases of the most knowledgeable buyers such as property flippers.  But even most of the flippers want to see a pest inspection too.  Right here I will discuss one of the most important inspections a buyer should have. 

What is a Pest Inspection Report?

     "Also called a termite inspection, this visual inspection is conducted by a state-licensed professional hired to look for signs of infestation or damage to a structure by wood-destroying pests.  Pest inspectors look for: Wood-destroying pests, such as termites, carpenter ants, rot fungus and wood-infesting beetles."**

     From Greg: One of the most expensive pest report finds to repair is dry rot. (rot fungus)  Dry rot is a slow creeping thing caused by moisture and if not put in check periodically, can cause a home seller a fortune at selling time.  It is good to get a pest inspection at least every 2-3 years when owning a home.  The danger to one's pocket book is that dry rot is not always visible but can be growing in a home internally and out of site.  It is up to a buyer to request a pest inspection when making an offer, and a good agent will guide them to do so.  Either the buyer or the seller may pay for the inspection.  The buyer then has a contingency period to examine the report and the seller can be required to fix the problems if the offer was written and accepted that way.  Only in rare cases would I ever sell a person a home without having a pest control inspection report provided.  Talk about flying blind.  A pest inspection is worth its weight in gold but only costs about $95 to $125 depending on the firm.

     My goal with this section about inspections is to give buyers and sellers better understanding of the escrow and inspection process.  My next blog entry will discuss another critical inspection.

**Source:  State of California Structural Pest Control Board, Q & A PDF

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker

Wednesday, January 30, 2019

What is Going On in the Local Real Estate Market? 107924606

From Greg Nichols, Real Estate 

Broker Associate w/ MFN Realty:

      Welcome to my Local Real Estate Insight update.  I get many questions from people about the market and what is going on.  I have kept my finger on the pulse of the marketplace for years in this industry.  I have seen many upward trending markets and many downward trending markets.  We currently are near the tail end of an upward trending market.  However, buyers are still looking for more inventory so a pent up demand for housing is still with us.  The money is out there to be invested in housing in our region - the Sacramento Valley.

      The last upward trend that we were in in this country and region began about 1997 and it lasted until about 2006.  The current upward trend began in about 2013 and is still with us, but some believe it has leveled out right now.  Maybe you are thinking of selling and you just don't know when it is best to do so.  Right now is a great and strategic time. Below is one expert who is not expecting an imminent crash for real estate in California and their reasons why. 

      Will values be crashing soon in California?

The following is an excerpt from an online article by Managecasa, a software service for property managers:

Housing Crash Predictions? 

"Hoards of millennials, working poor, and homeless people are praying for a California housing market crash, but prices have only leveled or dropped a little. With such strong demand driving the whole California housing market in 2018, 2019 and beyond, it’s unlikely a crash will happen. In fact, with the extra economic activity spawned by housing construction and household formation, there is upward price pressure. And the US economy as a whole is booming and we could be looking at an even longer run of economic prosperity.
That spells opportunity for buyers in California if home construction is allowed in an era of ecology-inspired building code red tape. How confident are you right now in buying a home or rental income investment property? Which cities are best for buying?
Let’s take a closer look at the California housing market for those people and demand factors that are influencing the business of housing here. By the end of this post, you’ll have a better idea of price predictions and whether you should buy or sell or rent in this market in 2019/2020." *

End of Excerpt:  You may read the whole article here! *

*Source:  Managecasa is a property management software firm based in San Francisco.

How Do Homes Get Priced When Selling?

      Your real estate agent has the job of helping you price your home if you are selling.  Many home owners think that the extra dramatic features and upgrades in their home carry the most weight in pricing.  That is only a secondary consideration.  There is an overlying principle in appraising real estate called "conformity."

What is the Principle of Conformity?

      According to the Real Estate Glossary, "it's the idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood."  

      This means that your house value is tied to the comparable sales of similar houses in your area.  If you price your home without regard for this principle, you can possibly price it wrong and have it not sell for months.  Here is the good news.  You get to use the 3 best comparable house selling prices of neighboring homes, as long as they are less than 6 months from their selling time.  Your agent locates these comparable sales and then they are compared to your house to see if you have any differences that might allow you an upward adjustment of the prices found.  Isn't that simple?  A good agent will give you the knowledge about pricing so you can help the agent set the price in an educated manner.

Greg Nichols
eXp Realty
DRE # 00632894

A Licensed California Real Estate Broker