Are you looking to build a new construction home in Orange County? Do you wonder what the difference will be in home design pre- and post-COVID-19? If so, then you’ll be interested to learn how the coronavirus might affect future home design.
Understanding future home design trends will help to stir your imagination and plan for the features you want, before you set out to find or build your next home. We are beginning to see old spaces used in new ways, with novel additions to current homes and adjusted open floor plans, just to name a few.
See below for an in-depth guide on several COVID-19 architecture design solutions that you can expect to see in a post-COVID world!
Everyone loves an open floor plan. It’s a trend that has become commonplace in many modern home designs, whether you’re building a new construction home or remodeling an existing structure.
However, the worldwide pandemic revealed something to us about open floor plans that we didn’t consider before: productivity is just as important at home as it is in the workplace. Really, the home has become a workplace itself.
Among those who were able to maintain their employment during the pandemic, many were forced to share space with their family members in ways they had never imagined. Suddenly, mom and pop were forced to work at home, while kids ran around, eating, playing, destroying, sometimes learning…
All of a sudden, those coveted open floor plans became more distracting than invigorating. Productivity declined as a result.
That brought on the invention of what we’re calling the “new-look open floor plan”. In this design, the entire space is maximized. What was once a living room/kitchen combo is now a living room, kitchen, office, arts and craft station, play area, study room, and more.
When looking at a new home, we at the Stavros Group believe that we need to embrace these changes, not run from them. It makes your home more functional and, thus, more valuable to your family!
Sounds like an awesome comic book title, right? While it might not be picked up by Marvel for their next blockbuster, this is certainly a growing trend in the home design industry.
We all had those neighbors, friends, and relatives that used the 2020 pandemic as a way to catch up on their home renovations, both inside and outside. Maybe you did too.
Many homeowners used that opportunity to improve the outside of their properties, like patios and porches. For some, it was the deck in their front yard. For others, it was the balcony or the roof lounge atop their home.
With more time spent at home, homeowners want better exterior living spaces to maximize their enjoyment of the great outdoors. A good portion of them preferred covered patios so that they could enjoy the fresh air in any weather (it helps that we’re blessed in Southern California with great weather most of the year).
These homeowners are on to something! Not only does the “super porch” give you more ways to enjoy the outdoors, but it also enhances the curb appeal of your home for when it comes time to sell. It’s what we like to call a “win-win,” improving your enjoyment of the home now and your sale price later.
Did you know that Orange County has been ranked the healthiest county in California
This can be attributed to the residents, who are often health-conscious and committed to bettering their health and fitness each day. Unfortunately, when the pandemic struck, all the gyms we frequent to stay in shape were temporarily shuttered.
Everything was closed: CrossFit gyms, big-name gyms, the track at the nearest high school football field. All completely closed off to the public. Even public parks were shut down for a time!
So, many homeowners made their own workout solution. They invested in creating an at-home gym, which gradually continued to evolve as the year 2020 went on. Since everyone at once started looking for gym equipment, buyers had to hunt and buy piecemeal to put it all together. But now, a home gym has become a feature that many homebuyers are looking for in their next home.
As if land wasn’t already at a premium in Orange County real estate, the 2020 coronavirus pandemic made it even more of a hot commodity.
Economists believe that this is a direct correlation to many families having relatives move in with them during the pandemic, especially elderly relatives. Now, they’re with them for the long haul, and many homeowners are looking to build additional living space to give their new “roommates” their own private area.
Having a bonus bedroom suite or standalone ADU (Accessory Dwelling Unit, aka “granny flat”) is a huge boon for housing multiple generations of family. An ADU is amazing when you have teens or grandparents living with you. Homebuyers know this too and will pay a premium for it!
An aging, dirty or broken HVAC system is never great, but homebuyers these days are putting even more attention on ventilation and comfort. After all, if the COVID-19 pandemic taught us anything, it’s to be more conscious of the air we’re breathing (and who’s breathing it near us).
The indoor air quality of a home is no different. Home inspectors put an emphasis on checking the home’s HVAC system for signs of mold or build-up in the air ducts, signs of poor air quality, etc.
Good cooling and heating has become a primary selling point. If you’re in the market for a new home, make sure that the home’s HVAC system is inspected by an expert. This pandemic has shown us all how much air quality truly matters!
Now that you have seen a few ways that COVID-19 has affected future home design, be sure to use these to your advantage while you search for or build your new house!
Getting ready for a big move? It’s never too early to start planning. See this article for a list of tips and tricks for a stress-free move.
For any other inquiries and questions about real estate, please feel free to connect with us and we will be happy to assist you further!
Are you trying to make a new neighbor feel welcome and cared for in the community?
Moving to a new area can be disorienting and lonely, especially in this era of social distancing. Being there for your neighbor in this crucial time can build the foundation for a beautiful friendship, cordial conversation, and maybe a shared cup of flour or two.
So be a good neighbor! Given the busy real estate market these days, chances are you have or will have at least one new neighbor on the street sometime soon. Take a look through some of our favorite creative housewarming gift ideas that will help you welcome your new neighbor home.
Here’s something that will bring joy (and a little extra oxygen) to your new neighbor’s life. If you’re concerned about the difficulty of taking care of a plant, try getting something that doesn’t require a lot of maintenance, like a succulent.
Houseplants can have a lot of personality. Whether you go for something cute or elegant, this thoughtful housewarming gift could be the start of a great neighborly relationship.
If you like the ecological vibe of a plant gift but you want to go for something more practical, try gifting your neighbor an herb garden! These days, there are lots of handy little kits that can get your neighbor growing basil, mint, and whatever else they find tasty in no time.
This is a unique housewarming gift that tells your neighbor you’re excited for their roots to grow in this new home. Plus, anyone who frequently cooks at home knows the extraordinary value of being able to step outside for fresh herbs!
Whether you’re a seasoned chef or simply doing your best, there’s nothing like a home-cooked meal to warm the heart. This doesn’t have to be a full-on, 3-course, Michelin-star-quality meal if you’re nervous! Try baking a batch of your favorite cookies (but avoid using nuts or other allergens, just in case). Moving to a new place can be disorienting and lonely, so a thoughtful food gift can go a long way. Nothing warms the heart like a freshly baked treat or meal.
Lots of people bring flowers to a housewarming, but where do those flowers go? If your neighbors are first-time homebuyers, they are probably still building up their basic supply of home items. A beautiful vase will help them fill out their cache of decor, and it lasts far longer than the flowers you gift inside it.
Try picking out a pretty clay or glass vessel for your blooming beauties. Your new neighbors will think of the kind gesture every time they see your gift of flowers, and every time they use the vase! It’s a gift that keeps on giving.
Ever used a garlic press? How about a tortilla warmer? Items like these are well-loved by the people who use them, but chances are your neighbor doesn’t have one yet.
When people move to a new home, they’re often thinking of the basic items they need in order to get started. By giving them some thoughtful specialty kitchenware, you can make their cooking experience that much more unique and efficient.
If you’re worried about going the specialized route because you don’t know your neighbors too well, here’s something that almost everyone would love.
A good cast iron pan can upgrade the quality of every meal. Cast iron is durable and truly timeless, an heirloom gift that can be passed down through generations. And even if your neighbor already has one, it’s nice to have another!
You might have to sneakily find out what kind of coffee your neighbor likes to make before you get them a coffee set. But the nice thing here is that you can scale the gift up or down.
For a casual gift, you might go with some high-quality beans and a grinder. And for something more generous, you can get your neighbor a nice coffeemaker. There are also “coffee of the month” subscriptions that you can gift to your neighbor, so they can try all kinds of coffee and discover something new.
Taking the time to pick out a thoughtful gift for your new neighbor says more than the gift itself could ever convey. After going through the homebuying process, then moving in and getting situated, then learning the neighborhood and meeting new people… it’s a lot to do all at once. By reaching out to a new neighbor, you will plant the seed of friendship and community right away, and you’ll brighten your neighbor’s day.
So be a good neighbor! And if you want to hear about our experience matching homebuyers and neighborhoods, reach out! We’d love to hear from you.
Moving is a double-edged sword. While you probably can’t wait to get settled in your dream place and start a new chapter in your life, you also likely have a lot of stress and anxiety heading into the process.
With some tips for a stress-free move, you don’t have to worry about losing your head. The tips in this article will show you how you can guarantee a stress-free move.
Hiring a professional can help get rid of the stress of a move. By leaving it to some pros, it is a lot easier to relax, since you won’t have to worry about putting together all of the pieces yourself.
Since this is what they do for a living, you also get more of a guarantee that the job will be done properly. This means not having to worry about items breaking or being mishandled during the move.
While it will cost you a bit of money, you can’t put a price tag on the peace and stress-relief that you get by hiring movers.
Procrastination kills the dream!
Of course, it’s difficult to get excited about your move if you stress yourself out by waiting too long to get started. You will bring back the stresses of school all-nighters — and unnecessarily so.
You have plenty of time to plan out every part of your move. So start early and make it fun instead of anxiety-inducing.
If you’re going to plan a move, you also need to be sure you have the right supplies.
Start by finding boxes and other containers that will store all of the items you are moving. Choose boxes that are sturdy and not likely to crumble or allow your belongings to break. You can purchase quality moving boxes from your local hardware store.
You can also look into specialty containers, such as hard plastic containers. Buy boxes and containers that fit together like a puzzle, so it’s easy to arrange them in your truck.
Handling your move becomes easy and stress-free when you learn how to pack.
If you have a uniform way of packing things, it’s easier for you to get them on and off the truck. You will remember where things are, and this will make it easier for you to get set up at your new place.
Go room by room and get organized about the way you pack things up. By having a strategy, the move will be as stress-free as possible.
It’s best to have a schedule for every part of your move. Set the dates on your calendar and give yourself plenty of time leading up to the move to pack things up, turn your utilities on in your new place, talk to some movers, and other parts of the move.
Scope out your new home as well to see if there are any traffic patterns you should know about. Get to know the neighborhood so you can figure out the best place to park so you can unload.
Having some rental storage space is also an excellent way to make your move easier. When you have storage, it gives you some time so that you don’t feel rushed with the move.
You can rent a storage unit while you are packing up your current home so that you can move into your new home little by little. Find a storage rental company that has affordable monthly rates, along with the best storage space for your needs.
You need to handle the financial part of your move as well. A price tag that you have trouble affording is one of the biggest areas of stress when you’re moving.
The easiest way to manage your costs is to first figure out what you can do on your own, and what you need professional help with. If you are hiring any kind of professional help, you should get some price estimates from three different movers.
You should also shop for the most affordable moving equipment and supplies so the price doesn’t become too inflated.
Don’t make the mistake of trying to do too much. Working a full work week right before or after a move can also make the move more stressful than it has to be.
Take some time off from work so you can plan out your move, go room by room, and check and double-check every part of it. You will thank yourself that you took time off when you can get a good night’s sleep before the move and have clear thoughts and low anxiety.
Don’t hesitate to lean on the help that friends and family members can provide. It would surprise you to see how much work you can get done when you have people by your side.
If you have kids, getting family members to watch them at certain parts of the move can also decrease stress because you’re only focusing on the task at hand — not the temperament of your little ones.
Breathe! It’s easier to relax when you have your mind made up that you aren’t going to let stress get the best of you.
Control what you can control, and give yourself permission to just live in the moment and let the move play out how it’s supposed to.
You can enjoy a stress-free move when you follow these tips. Since moves can be one of the more stressful things that you do, you will be glad that you had these tips at your disposal.
We are happy to hear from you. Take time to connect with us when you need some real estate help.
Property tax laws are changing in California.
Throughout the past year, the real estate housing market began slowing down, especially in the older demographic. Older people were less likely to buy or sell a home than younger generations.
Over the course of two years, the California Association of Realtors put together a plan known as Proposition 19 (or commonly, Prop 19). The overall goal of this proposition is to motivate older homeowners to buy and sell their property.
Prop 19 offers tax incentives to older California residents who buy a new home, but with these benefits come a few drawbacks. To balance the tax breaks of Prop 19, it includes higher property taxes for others.
Could you benefit from Proposition 19? Here’s what you need to know about California’s new Proposition 19.
Proposition 19 is a proposed tax change that Californians voted to approve in 2020. Two parts take effect on February 16th and April 1st of 2021.
The proposition offers a mix of tax changes designed to assist elderly individuals, some people living with disabilities, and natural disaster victims. Proposition 19 will also raise property taxes for those inheriting a second house to use as an investment property.
California’s Proposition 19 proposes that seniors — those aged 55 and over — can receive a tax incentive when they buy a new home.
When you buy a new home, you’ll have to pay property taxes based on the home’s current value. If you buy a more expensive home, your property taxes will increase accordingly.
Proposition 19, however, waives this property tax increase for homebuyers who are 55 and older. Rather than having to pay a higher property tax for a new home, they can pay a much lower property tax. Starting April 1st, older residents have the opportunity to buy a home of equal or lesser value and enjoy the same tax benefits as their old home.
The reason behind this is to address the surge in prices and value. The longer you own a home, the more tax benefits you can enjoy from lower property taxes on its older assessed value. Your home may rise in value, but your property taxes and tax bills remain the same.
When you sell, you’ll likely earn a nice profit, but you’ll face higher property taxes and fees when you buy a new home at a higher assessed value. This is a major reason many older generations are hesitant to sell and move into a new home.
Proposition 19 will make buying and selling real estate an easier decision for older generations. Elderly homebuyers have an opportunity to buy a home and enjoy these tax benefits.
Another goal of Proposition 19 is to help alleviate the lack of housing for aging adults. Currently, there isn’t enough available senior housing to accommodate everyone. The ability to buy a new home at a lower tax value can help with this shortage.
Do these property tax benefits extend to those buying a more expensive house? The answer is yes, but not it’s not as progressive as it would be if you bought a house of equal or lesser value than your current home.
Imagine you bought a house 30 years ago for $600,000 and today, you can sell it for $1 million. The new house you’re looking to buy costs $1.2 million.
When you buy this new home, your property tax will be based on the sum of your previous home’s old assessed property value, plus the difference between the sale price of your old home and the purchase price of the new home. The property tax value you’d pay would be $800,000 (ie. $600,000 + $1.2 million – $1 million).
This tax break has a limit of three uses. Buying and selling a fourth time will cause your property taxes to rise to today’s market value
Proposition 19 isn’t solely for assisting elderly people. Those living with severe disabilities, and those who lost their home in a natural disaster, can also benefit. Like seniors, those who survived natural disasters, such as earthquakes or wildfires, can enjoy many of the tax benefits offered by Proposition 19.
The additional tax revenue generated by Proposition 19 can help natural disaster victims, as well as generate funds to help fight wildfires.
Younger buyers, and the real estate industry as a whole, will also see benefits as more homes are put on the market that may previously have been held tight by seniors. Many real estate professionals throughout California and the country are supporting Proposition 19. But more than the benefits it offers to the health of the real estate market, many count on this new law to help Californians in need.
Unfortunately, Proposition 19 doesn’t conjure these tax advantages out of thin air. To balance the lower property tax on seniors who relocate, younger generations will have to pay higher property taxes on any home they inherit from their family. But only if they intend to keep the inherited home as a second house or a rental property.
Over the past ten years, children and grandchildren who inherited property from older family members benefited the most from California’s property tax laws. When they inherited a property, even as a second or third property, they could continue paying the same tax rates as their parents or grandparents, essentially locked in at a lower assessment.
This inspired many young beneficiaries to use the property as an investment. They could rent out the property at current market rates, while paying taxes based on an assessment that was anything but current.
Proposition 19 aims to eliminate this property tax break for those who plan to use the property as an investment. First time buyers who inherit a property and use it as their primary residence can continue paying the same tax rates as their parents.
Adjusting these tax breaks would generate enough tax money to offset the new tax breaks granted to the elderly, natural disaster survivors, and those with disabilities. This part of the Proposition took effect on February 16th, 2021.
Proposition 19 aims to assist the elderly and others who need help in California, while also generating tax revenue for schools and natural disasters. If you are a senior looking to move, or a younger individual inheriting a home to live in, you can enjoy the benefits that Proposition 19 provides.
Have questions, or are you looking to buy or sell a home? Let us know! We’re happy to help you and anyone you send our way to make the most of your real estate goals.
Hi friends,
Show of hands: Who has done some DIY home improvement in the last 6 months?
Statistics show… probably most of you!
To no one’s surprise, a huge amount of Americans have decided to make the most of their unplanned and extended homestay by finally making the updates and improvements they’ve dreamt about for years.
Combined with a bit of elbow grease and a wealth of YouTube how-to videos, this extra time at home has led to all-time-high stock prices for brands like Home Depot and Lowe’s.
A recent survey of 1,000 homeowners and renters reveals some interesting findings:
The most popular DIY projects these days are bathroom repair, interior painting, and bedroom decor.
Among the most successful projects for homeowners and renters alike is installing or enhancing a garden, while the least successful projects involve DIY repairs. (Better call a professional?)
A fresh coat of interior paint is both one of the cheapest and most successful projects undertaken, but exterior painting led to higher costs and lower success rates.
Home improvements are a great way to keep busy (if you’re not already busy enough) and reinvigorate your love for where you live. Of course, DIY only goes so far.
If you’re interested in making bigger changes to your living arrangements, now is a uniquely good time to do so. Today’s home buyers benefit from record-low mortgage rates, and sellers benefit from searing hot demand — and buyer/sellers enjoy the best of both!
As always, if you have questions about the market, or if you or someone you know is thinking of making a change, don’t hesitate to get in touch. We’re happy to help!
Talk soon,
Andy Stavros
The start of 2020 put California’s housing market into a big ol’ slump. The coronavirus pandemic led to strict stay-at-home orders enforced throughout the state. For a short time in March, the California housing market was essentially frozen in place.
In the proceeding weeks, the freeze began to thaw, and by the start of the summer the market was heating up. Buyer demand began to rise, sales were beginning to rise, and more homeowners came around to the notion that it actually might be a good time to sell. This sudden change of course was one of the largest monthly surges in almost 40 years.
Now, the question folks are asking is, “How long will it last?” Will housing prices continue to rise the rest of this year? Or is it too good to be true?
Are you curious about how buyer demand is impacting the housing market this year? Here’s everything you need to know for fall of 2020!
At the start of the pandemic, the housing market chugged along at a snail’s pace. While the most motivated buyers and sellers continued in their pursuits, many more elected to postpone their buying or selling for a later time when pandemic restrictions loosened.
Those who did buy during this time saw record-low mortgage rates. The pandemic caused mortgage rates to drop as low as 3.29% for a 30-year conventional mortgage, at the time a 50-year record low which has since been lowered even further.
While homebuyers enjoy these low mortgage rates, housing prices are rising due to limited availability of listings. Those looking to buy have a smaller selection of homes available to purchase, and what is available is selling for more money than ever due to increased demand. Because of this scarcity of listings, many buyers are eagerly waiting in anticipation for more sellers to bring their homes to market.
As is natural in economics, limited supply has led to an increase in prices. While rising prices have become the trend in the last decade, the rise has been even more forceful in 2020. In May of 2019, the median closing price in the United States was around $278,200 which grew about 2.3% by May of 2020.
For 3 continuous months, housing sales declined. It wasn’t until June that the housing market finally hit a turnaround point.
Home sales have spiked, particularly in existing homes, but also in new construction. From May to June of 2020, there was an increase of around 20% more home sales which includes condominiums, townhomes, and single-family homes. This is largely due to increased buyer demand.
While many buyers and sellers enjoy success in this recovering, booming market, some are wondering about what the Fall will bring. There have been second and third waves of the pandemic affecting different parts of the globe. What will the housing market look like for the rest of 2020?
June through August showed considerable promise in regards to a recovering housing market. Home sales all over the country continue to rise, as they did throughout the summer.
The country’s coasts are leading the recovery, showing greater sales than even before the pandemic hit in March. The end of July showed a rise in not only sales but in demand and price as well.
Buyer demand is continuing to grow as we enter the Fall Season. By the end of July, the demand index was almost 17 points above that of January. Analysts calculate this number by tracking search activity online.
Some may find this surprising, as house prices are rising and inventory remains low. But with rock-bottom mortgage rates, many homebuyers want to get in while it’s good. On the other hand, many home sellers are still waiting before putting their homes on the market.
Researchers believe buyer demand will continue to grow throughout the Fall of 2020. The biggest challenge sellers are facing is that a large number of them are also buyers.
Growing buyer demand and limited inventory can make finding the right new home to buy a challenging process these days. Some prospective sellers are finding it easier to refinance and renovate their current home than to find something better.
Other issues sellers face include health and safety concerns during the coronavirus, along with potential job loss given the tumultuous state of the economy.
Buyer demand will likely fade towards the end of the year, as it always does in the holiday season. But this fall, activity should remain very strong compared to the spring market. Millennial buyers will continue to make up a huge part of the buyer demand as they search for their first taste of home ownership.
Will current home buyer demand be sustainable throughout the rest of the year? If more sellers come to market this fall, buyer demand may be satiated. But if buyers are still fighting for a small supply of listings well into next year, then high demand isn’t going anywhere either.
Like buyer demand, housing prices are also rising. Compared to the median home price in January, homes in September are about 5.5 points above January prices.
What’s causing this rise in house prices? The main 2 factors influencing home prices are a record low housing supply and a growing buyer demand. The few sellers on the market feel more confident asking for more as they’re likelier to make a sale with such a large demand. Bidding wars are becoming more frequent.
Typically during an economic downturn, housing prices remain stagnant, or grow more slowly, or even fall. This year has been a clear exception, as housing prices have accelerated upwards throughout the summer.
This upward trend may slow later this year and early into next year. Future economic impacts remain to be seen, and a hit to the economy could slow the rate of buyer demand and increasing home values. In any case, it’s unlikely that home values will rise at such a quick pace for many more months to come, though they will likely continue to rise.
Since May, home sales have risen monthly by 16.6%. There has also been an increase this year of 6.3% since June of 2019.
Most buyers are looking for affordability and space. The combination of stay-at-home orders, working from home, and schooling from home, is driving people to look for more spacious places to live. Of course, this is a greater challenge given the limited inventory of active listings.
Listings are spending less time on the market compared to a year ago. Buyers and sellers are connecting and closing sales much faster than before.
Since the spring, supply of listings has been slowly increasing. Compared to years before, however, the supply is still growing at a much slower rate than in January. More sellers are re-entering the housing market, but with a certain amount of caution.
Some prospective sellers express concern that their homes are unlikely to sell due to social distancing. Some are unwilling to show their homes in person and others are waiting until the pandemic passes. After months of working safely according to state and local regulations, these fears are largely unfounded, though it’s always good to be safe.
The reopening of the United State’s economy plays a key role in the housing supply. The current trend is an increase in housing supply, but everything hinges at least in some part on the future twists and turns of the COVID pandemic.
The overall number of home sales in 2020 is likely to be significantly less than the year before. Many houses will sell this fall, indeed, but the overall rate will likely drop to one not seen since the early nineties.
Many analysts believe the economic cost of the pandemic will continue to burden the economy in 2021 and for years to come. The projections for the 2021 housing market have also lowered from 6.3 million to 6 million sales.
A few likely scenarios for the rest of 2020 and into 2021 include:
– Housing prices will continue to grow, but growth may slow
– Mortgage prices will almost certainly remain at record lows
– Housing availability will remain lower than normal, but should continue to rise through the fall
– Buyers will continue to prioritize affordability and space, both inside and out
– Buyer and seller confidence will continue to rise, barring any unfortunate developments in the pandemic
The unforeseen health crisis and its economic impacts will continue to influence buyer demand and listing supply. Some of the largest metro areas in California and throughout the United States have seen an increasingly tight inventory of listings in recent months. If more sellers decide to jump into the fray, this trend could reverse in a busy fall selling season.
The affordability of homes remains an ongoing struggle and will be an even greater challenge as prices rise. Before the COVID pandemic, many younger buyers struggled to find a home that fit their budget.
Unfortunately for them, housing prices will continue to rise for the rest of 2020. Newly constructed homes will not be much help, as homebuilders continue to focus on mid-high to high-end homes rather than affordable housing solutions.
Since the lull in early spring, the housing market has been looking up. There have been glimmers of hope in the pandemic, giving the economy a chance to breathe. Uncertainties still abound, but buyer demand remains strong thanks to low mortgage rates.
If you’re looking to buy or sell a home this year, now is the time. Buyers can enjoy all-time low mortgages. Sellers can benefit from selling their homes at higher prices and potentially a faster rate than before the pandemic.
Are you looking for a home or planning to list yours? Do you know a friend or family member who is? Let’s connect for a no-pressure conversation. We’re happy to lend our expertise and carefully guide you through every step of the home-buying and selling process!
We all know the reasons that people buy a home — more space, more freedom, swapping rent payments for equity — but the reasons why Orange County homeowners sell their homes can be more complicated… right? Not quite! In fact, the reasons an Orange County homeowner might sell their home boil down to six simple points: the six “D’s.”
You undoubtedly know some of the six D’s already, but first let’s test your real estate IQ, if you don’t mind. I bet you do know the three most important things in determining the price of real estate. Sure you do! Let me jog your memory and give you the first one: location. Yes, location is the first and most important thing to ask in real estate. Where is the property located?
How about the second and third most important factors involved in pricing a property? Give up? Number two is location, and — drum-roll please — number three is… location! Yes, the three most important factors in establishing the value of a property are location, location, location. Sound familiar? Of course, other factors certainly come into play, but the point of repeating the word “location” three times is to emphasize that the true value of a property — the real property, the land, not the house itself — is based on where it is located more than anything else. Structures are built, they age, they are repaired and replaced, but the land is forever. That’s price in a nutshell.
So how about selling? Do you think you know why real estate is put on the market? Can you pinpoint the “six D’s” of real estate? Let’s try to do this together. This time there’s no gimmick (the same word doesn’t repeat six times), but each word does start with the letter D. They are easy.
1. The first reason a property is put on the market is Death. When a death occurs, many times the house is sold, or at least the option of selling is considered. Death is unfortunately a very difficult time in life, but it’s one we all must face with our loved ones.
2. The second D is Divorce. Again, this is an emotionally stressful time. A divorcing couple will often choose to sell rather than negotiate for one party to stay in the property.
3. The third D is Disability, yet another difficult situation. Homeowners facing disability are often met with the very challenging prospect of selling in order to find more suitable accommodations.
4. The fourth D is Decrease in Income. This can be due to many things, including the loss of a job, a cut in pay, one spouse quitting to stay at home with the kids, and so on. The inability to keep up with expenses is another major reason why homeowners might put their home on the market.
5. The fifth D is Distance. This can mean that there is too great of a distance between the homeowner and a new job, between the homeowner and a child or grandchild, or between the homeowner and sunshine! When a homeowner decides that there is too great a distance between their home and happiness, it’s time to put the home on the market.
6. The sixth and final reason for a property being listed for sale is Default. A default occurs when mortgage payments have become too difficult to handle. This can sometimes be related to any of the first five D’s, including loss of a job, a health crisis, death or divorce. Upon default, a property is typically sold on the market via a short sale, or even lost in foreclosure.
That’s all six D’s! How did you do? Did you guess them all? I’m sure you got at least a few.
Think about all your friends, family, and colleagues who have sold a home. Chances are, you can fit the motivating factors behind their home sale into one or more of these six categories. Who knew that the real estate business could be reduced to just nine letters! The three L’s (Location, Location, Location), and the six D’s (Death, Divorce, Disability, Decrease in Income, Distance, Default).
If you’re looking to buy or sell a home in Orange County, you may be wondering what difference this all makes. How can one real estate professional or another influence the outcome of your transaction? When it comes to the three L’s, a good or bad agent makes no difference at all — the property is located where it is located. In regards to the six D’s, however, an experienced and thoughtful real estate agent makes all the difference.
Whether you are in the midst of a death in the family, a lost job, a divorce, or any of the other six D’s, each of these situations can be incredibly taxing and stressful. It is of the utmost importance to work with a caring, knowledgeable, determined real estate agent to get the job done with the least amount of additional stress. You don’t need more fuel in the fire! The right real estate professional can make all of the difference between having a smooth transaction with minimal stress and a nightmare that drains more of your precious time, energy and money.
Managing stress in a real estate transaction comes down to experience, knowledge and care. You can pick a realtor for a variety of reasons, but the realtor can’t change the location of your property. It is more important to pick a realtor that has the wisdom and the character to help you get the results you need.
Your agent needs the experience to know how to navigate the complicated trail of legal paperwork in real estate, how to call people back and to take responsibility as a professional in the business. You need an agent who tells you honestly how the system works and then holds your hand through the entire process. You need an agent who would prefer to see your dreams become reality, rather than make a quick buck. Through the difficult “D” moments in your life, you will absolutely need an agent with the wisdom to guide you and provide the tools to make the right decisions. Your co-workers and neighbors need that as well. Why should anyone settle for less?
At The Stavros Group, that’s what we provide. We’ve sold hundreds of homes in Orange County, and helped as many buyers and sellers through some of the biggest decisions of their lives. After successfully closing so many deals, we know his business, and we’ve seen it all. We know how to delve through a contract with a fine-tooth comb to catch little things that other agents might easily miss. We know how to market your property and expose it locally and globally through multiple marketing platforms. We know how to negotiate contracts to get you the best deal possible. Most importantly, we know how stressful your life can be during these times, and how important this six- or seven- or eight-figure transaction is to you.
Right you, you or someone you know may be experiencing one of the six D’s of real estate. It is unfortunate if it is one of the stressful D’s, where the pain and sorrow of the situation necessitates a sale. Let us help you, your loved ones, or your friends through this difficult time. Please don’t hesitate to reach out and start a no-pressure conversation. Let’s get to know each other. We’re ready to listen.
Hi friends,
Maybe more than anything else, your home determines your quality of life.
It’s what makes our job as real estate agents so rewarding: every closed sale marks the start of a bright, new chapter for our clients.
It’s also why, during these months of home-bound living, Google searches for “home improvement” have shot through the roof, and why Home Depot’s stock has risen 30% year-to-date.
With mortgage rates at historic lows, Orange County homebuyers are jumping at the chance to upgrade their living arrangements and improve their quality of life.
Coupled with a low supply of listing inventory, this increase in buyer demand has coaxed Orange County closing prices to new heights. We expect this trend to continue into a busy fall season.
Maybe you’re just looking for an incremental upgrade to your lifestyle. Given the smoky skies, we recommend investing in an air purifier and changing your HVAC filters.
If you feel it’s time for a bigger change, we’re happy to help! It’s a unique time with lots of opportunity for both home sellers and buyers. Let us know your real estate goals, and let’s talk strategy.
Talk soon,
Marilie Bunce
Stavros Group
Hi friends,
Amid a sweltering heat wave, the Orange County housing market is red-hot too. Much like your valiant AC unit, home sellers and their agents are working overtime to meet a blaze of unforseen demand.
Last month, Orange County listings spent an average of 16 days on market. That’s a 36% decrease from July 2019. Sales prices are higher than ever as supply struggles to keep pace, and OC homeowners find themselves in an enviable position.
Today’s fast-paced market can be attributed to a few things. Record-low mortgage rates have empowered buyers, and social distancing has shifted their priorities. Pent-up demand is being released. Plus, real estate remains a relatively safe bet in a time of economic uncertainty.
Buyers want more space to cook, to school, to play and to relax. They want views of nature without leaving the house. Our newest listing certainly fits the bill.
2675 Riviera
Meet 2675 Riviera Drive.
A 13,000 SF estate in the ultra-exclusive Abalone Point (seen above) in Laguna Beach’s guard-gated Irvine Cove enclave, featuring unmatched views spanning nearly 300°.
See below for more info.
Whether you are in the market to sell or to buy, for an ultra-luxury oceanfront estate or a cozy suburban retreat, there is opportunity for everyone. But you have to be fast to make it happen.
If you’re interested in making a change to your living arrangements, or if you have a question about the market, please don’t hesitate to reach out. We’re happy to help.
Talk soon,
Andy Stavros
