Short-Term vs. Long-Term Rentals: Pros and Cons

Short-Term Rental

Short-term rentals have become increasingly popular in recent years as a way to generate (mostly) passive income. However, there are pros and cons to both options of renting out your property for the short or long term. Below, we will discuss the advantages and disadvantages of each type of rental structure. We hope that this information will help you decide which is right for you.

Pros of Short-Term Rentals

By city ordinances, short-term rentals are typically defined as lasting less than 30 days. However, in practice, most short-term rental stays (like those with AirBnB and VRBO) last for maybe a week or less.

One of the main advantages of short-term rentals is that they offer flexible pricing. This means that you can charge more during peak times such as holidays and/or weekends and less during slower times to attract visitors. Additionally, you may use this property for personal vacations provided the property is not reserved.

Another advantage of short-term rentals is that they may be eligible for certain tax deductions for certain expenses. Speaking with your tax specialist will ensure the most accurate, current information to optimize your returns.

Cons of Short-Term Rentals

There are also some disadvantages to short-term rentals. One of the main drawbacks is that it can be difficult to screen tenants. This is because people who are only renting for a short period of time may not have the same level of commitment to taking care of your property as someone who is renting for a longer period of time.

Additionally, short-term rentals can sometimes be less stable in terms of income, as you may go through periods where there are no tenants. This can be especially challenging if you rely on the income from your rental property to cover your mortgage or other expenses.
Finally, short-term rentals generally require more work than their counterparts, as you will need to find new tenants on a more frequent basis leading to increased property marketing costs as well as maintenance/cleaning fees.

Pros of Long-Term Rentals

In a competitive market, you want your abode to stand out from the rest. Although coastal Orange County real estate has been a strong seller’s market for years, you can still maximize your sale price by making strategic updates and decor choices in your listing. When it comes to decoration, try exhibiting works of art that are unique and exciting—not just another carbon copy of what everyone else has on their walls. Choose pieces that complement the color scheme and overall ambience of the home.

Long-Term Rental

Cons of Long-Term Rentals

However, there are also some drawbacks to going the long-term route. One of the main downsides is that you will not be able to use your rental property as a vacation home, like you would in a short-term rental situation. Another issue to consider is the inability to enter the home often to assess for any damages or problems that need to be addressed. Though you may technically own the home, you do not possess the right to go inside as you please. There are important laws protecting renters from landlords, which includes your at-will access to the property. Finally, long-term rentals can sometimes result in more wear and tear, as tenants may treat the home as their own instead of like a short vacation house where they are generally more careful.

Maximizing Your Home Purchase and Investment

Which type of rental is right for you? Ultimately, the decision comes down to your personal preferences and needs. If you want more flexibility in terms of pricing and use of your property, and you are willing to put in more work for a potential higher income, then a short-term rental might be a good option for you. If you want a more stable income stream and less work, then a long-term rental might be the better choice.
Whichever way you go, make sure to do your research beforehand so that you know what to expect! As always, we are here to assist you with all of your real estate needs. To start the no-pressure conversation and discuss your options, please don’t hesitate to reach out.

Thinking Of Selling? We’re Here To Help

If you are considering your options to sell your home in Orange County, CA, our top luxury real estate team is here to serve. At no obligation, please reach out for a consultation to discuss your options and see how we can help you plan and execute a strategy to reach the best possible sale price for your property. Contact us today.

Andy Stavros              

DRE #: 01408840

Phone: 949.290.0139

Email: andy.stavros@elliman.com

Address: The Stavros Group

12 Corporate Plaza #250,

Newport Beach, CA 92660

 

 

 

Scandinavian interior design: How to Bring Scandi Style to your Home

Deciding on an aesthetic for your home can be difficult for a variety of reasons. Considerations include choices in furniture and colors, function and accents, personal touches, cohesiveness, home size, and more! Design can be a challenge for any homeowner, so where does one begin? There are a huge variety of well-known design schemes inspired from all over the world – a quick google search can easily bring you a plethora of results! Our featured design for today comes from Scandinavia – one of the most popular interior design methods of our time. This nordic design is rooted in earthen tones, high-quality craftsmanship, and functionality, with significant nods to minimalism. For more information on how to incorporate this design in your home, read on! 

Scandi style has impacted the world of interior design through its focus on functionality and minimalistic detailing. Minimalism has been on the rise, but who wants a home that feels more boring than stylish? There is a fine line between the two. Used in homes around the world, Scandi style is ageless and highly elegant. Natural and neutral materials (pale woods, wools/linens, leather, glass), tactile fabrics, metal accents, and high-quality craftsmanship elevate minimalism. Scandi style is all about the details.

When capturing Scandinavian-inspired themes in your home, consider colors in muted tones or shades of white, beige, or brown. Scandi style pairs gorgeously with earth tones and natural pieces such as wooden accent tables, woolen fabrics, and other earthy designs. Older pieces passed down through generations can often be incorporated into a purposeful style in your home. Wooden furniture (bed frames, dining tables, etc.) in particular – regardless of their color – can be shown off when the colors and accents surrounding them are simple. 

Draw focus to what matters to you. Do you have lovely china you wish was featured? Or maybe curtains with bold colors that always cheer you up? Scandi design balances your home and creates a gorgeous canvas in which to showcase the decor that matters most to you. In no way does this design need to be devoid of color or life, in fact the exact opposite is true. Blues, reds, and other vibrant colors ‘pop’ when combined with wood, metal, and earth tones. 

The Scandinavian interior design movement began in Sweden, Denmark, Finland, Norway, and Iceland in the 1900s, and became a worldwide phenomenon by the 1950s. Scandinavian designs you may recognize include Alvar Aalto’s stools in Apple stores, the PH lamp series, the Egg Chair, the Spanish Chair, and the Finlandia glassware series. Who knew elegance could be so simple and yet effective? 

Where to Start?

If you’re wondering where to find Scandinavian inspiration, we recommend these two sites in particular:

The Nordic Nest is a Scandinavian company inspired to bring nordic design to homes across the world. 250 Brands

My Scandinavian Home “Niki started My Scandinavian Home blog in 2011 with a simple vision: to inspire like-minded people with ethereal Scandinavian inspired homes often with a vintage touch.”

Hopefully you feel more comfortable diving into the process of design. Home buying can be daunting, but there are so many other considerations that come after! Will you turn your home into a Scandinavian oasis? If so, enjoy the serenity, style, and simplicity of this gorgeous design, and always remember – personalized twists are what make a house a home!

WANT MORE ADVICE ON HOW TO SELL AND STAGE YOUR HOME?

Are you looking to sell your Orange County home? If so, it’s helpful to know what to expect and how to maximize your investment. Even moreso, it also helps if you have the best real estate listing agent in Orange County. At the Stavros Group, we are expert marketers with a proven track record of preparing OC real estate to net the best return.

Visit our seller’s page to start the no-pressure conversation and tell us more about your situation. We can help expertly price your home and work with you throughout the entire home selling process. Questions about Orange County real estate? Contact us today and we’ll get back to you as soon as possible.

2022 Outlook + Feature in Most Amazing Homes ✨ Stavros Group

Facebook
Instagram

Hi Friends,

What’s your favorite thing about living in Orange County? Is it the wide sandy beaches, the incredible mild climate, or just the coveted Southern California lifestyle in general? Whatever it is that draws you to this beautiful place, you aren’t alone! 

For the past 10 years, housing prices have been steadily rising in the OC. This is mainly due to the housing shortage and high demand for real estate. In September, the median sales price for a detached home was $1,101,508 which is more than 20% higher than the same time last year. However, we’re starting to see a dip in sale prices which is forecasted to continue through 2022. 

In addition to this, mortgage rates are also anticipated to increase in the coming months after a year of record low numbers.

What does this mean for you? 

Whether you’re a buyer searching for your dream home or a homeowner who’s considering selling, reach out to me. I’d be happy to get you started on the process and to help you determine what the best timing is for you to maximize your investment!

Warmly,
Andy Stavros

One of our listings was recently featured on an episode of Most Amazing Homes with Jennifer Farrell. Click above to watch as I walk her through this amazing blufftop Laguna Beach estate.

Is real estate a
hedge against inflation?


View Article

Forbes

See why buyers are willing to pay a premium for fully furnished homes


View Article

Mansion Global

56 N La Senda Dr

Laguna Beach


5 BD | 7 BA | 5,042 SQ FT
Offered at $19,995,000

Co-listed with The Altman Brothers


600 Powell Pl

Newport Beach


3 BD | 2 BA | 1,705 SQ FT
Offered at $2,250,000


25151 Rockridge Rd

Laguna Hills


6 BD | 7 BA | 6,420 SQ FT
Sold for $4,025,000

Copyright © 2021 Stavros Group, All rights reserved.
12 Corporate Plaza #250, Newport Beach, CA 92660
Douglas Elliman Real Estate


View this email in your browser

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Luxury At Light Speed: Stavros Group August 2021 Newsletter

 

Hi friends,

When it comes to marketing a listing, everything is on the table.

We network, post, email and advertise, from “coming soon” til the contract is signed.

Last year only emphasized the importance of marketing early and often. Restrictions to showings and open houses, wariness of buyers trudging through a listing, and a hot luxury market all contributed to the growing number of fast-paced sales.

In the last six months, Orange County homes sold for $3+ million averaged just 18 days on the market — a historic low, nearly five times faster than just a year ago. Our latest luxury listing in Newport Coast’s Crystal Cove, 19 South Sur, was under contract in just three days.

While the growing number of pocket listing and coming soon sales rings alarm bells for housing opportunity nationwide, buyers of eight-figure properties are at little risk of being shut out of the market.

A luxury or ultra-luxury home seller’s biggest risk? It’s hiring an agent without the connections or expertise to get maximum exposure from day one, and without the negotiating savvy to capitalize.

If you are looking to maximize your investment buying or selling, please don’t hesitate to reach out with questions. It’s our pleasure to help you and anyone you send our way.

Warmly,
Andy Stavros

 
IN THE NEWS
How California wildfires are changing the way we buy and sell real estate
View Article
Forbes
Home prices are now higher than the peak of the 2000s housing bubble
View Article
NPR
 
ON THE BLOG
Top 7 tips to get your home ready for a baby
View Post
Stavros Group Blog
Pop of pantone: decorate with 2021’s colors of the year
View Post
Stavros Group Blog
 
FEATURED LISTINGS

19 S Sur
Newport Coast
6 BD | 6.5 BA | 7,028 SQ FT
Sold for $13,550,000
 

56 N La Senda
Laguna Beach
5 BD | 7 BA | 5,042 SQ FT
Offered at $19,995,000

Co-listed with The Altman Brothers
 

25151 Rockridge Rd
Laguna Hills
6 BD | 7 BA | 6,420 SQ FT
Offered at $4,295,000
 
RECENT SUCCESS
1631 Louise St
Laguna Beach

3 BD | 2.5 BA | 2,269 SQ FT
Sold for $2,600,000
24 Tideline Blf
Newport Beach

4 BD | 5 BA | 3,948 SQ FT
Sold for $8,010,000 | Rep. Buyer
24102 Lapwing Ln
Laguna Niguel

4 BD | 3 BA | 2,863 SQ FT
Sold for $1,725,000
1612 Highland Dr
Newport Beach

5 BD | 4.5 BA | 4,120 SQ FT
Sold for $4,175,000
 
YOURS COULD BE NEXT!

What Does Proposition 19 Mean for Homeowners and First-Time Homebuyers?

Closeup of tax wooden blocks on mallet at table in courtroom

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.

 

What is 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.

 

How Older Californians Will Benefit

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.

 

What If Someone Buys a More Expensive House?

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

 

Others Who’ll Benefit

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.

 

How Proposition 19 Balances the Tax Benefits

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.

 

Will Proposition 19 Affect You?

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.

Orange County Real Estate Updates & Luxury Listings ✨ Stavros Group April Newsletter

Facebook
Instagram
APRIL 2021

Hi friends,

If Isaac Newton were buying a home today, he might wait.

“What goes up must come down,” after all.

But unlike gravity, the forces that apply downward pressure on real estate are not so predictable.

Southern California real estate is booming. Last month in Orange County, single-family homes averaged just 6 days on the market, and the price paid per square foot was up 15% from a year ago. Why?

It’s not a bubble, according to NAR chief economist Lawrence Yun. “It is simply a lack of supply.”

While the last housing craze was driven by dangerous lending that made disaster all but inevitable, the factors driving today’s market show no signs of slowing.

Buyer demand is high thanks to low mortgage rates and more time spent at home, and financial institutions are further adding to demand. On the other hand, housing supply is at historic lows. Some sellers would rather not compete for their next home, listings that do hit the market are snatched up fast, and builders are facing higher material costs.

Will any of this change substantially any time soon? No one has a crystal ball to know for certain. Prices could go down, stay flat or keep rising. But there’s no guarantee of a discount or a smoother ride for those who wait. Looking back a year from now, today’s listings might seem a relative bargain.

So, if your goals and finances align to buy or sell right now, what are you waiting for?

As always, we’re here to help you and anyone you send our way!

I hope you find something of value in this monthly newsletter I’ve crafted for you.

Warmly,
Andy Stavros

IN THE NEWS
Region’s housing boom continues
with record prices in 5 out of 6 counties


View Article
Los Angeles Daily News

Are you buying at the top of the real estate market?


View Article
Forbes

FEATURED LISTINGS
56 N La Senda
Laguna Beach


3 BD | 5 BA | 5,446 SQ FT
Offered at $25,000,000
Co-listed with The Altman Brothers

14 Sandy Cv
Newport Coast

5 BD | 8 BA | 4,722 SQ FT
Offered at $8,999,000
1612 Highland Dr
Newport Beach


5 BD | 4.5 BA | 4,120 SQ FT
Offered at $4,295,000

4601 Tremont Ln
Corona Del Mar


5 BD | 7 BA | 8,401 SQ FT
Offered at $13,495,000

1631 Louise St
Laguna Beach


3 BD | 3 BA | 2,269 SQ FT
Offered at $2,975,000

2442 S Coast Hwy
Laguna Beach


16 BD | 14 BA | 8,991 SQ FT
Offered at $8,950,000

RECENT SUCCESS
30 Tide Watch
Newport Coast

5 BD | 6 BA | 6,204 SQ FT
Sold for $10,000,000 | Rep. Buyer
3312 Marcus Ave
Newport Beach


3 BD | 4 BA | 2,756 SQ FT
Sold for $3,335,000

YOURS COULD BE NEXT!
Copyright © 2021 Stavros Group, All rights reserved.
12 Corporate Plaza #250, Newport Beach, CA 92660
Douglas Elliman Real Estate

A Tour of OC’s Luxury Real Estate 🏠 Local Updates & Luxury Listings ✨ Stavros Group November Recap Newsletter

 
Facebook
Instagram
NOVEMBER 2020
 

Hi Friends,
 

Unmatched views. Private beach access. The finest in… well, everything!

Join me on a tour up and down the coast to explore some of the most incredible homes on the market!

From Corona Del Mar to South Laguna Beach, you’ll see blufftop grandeur, expansive ocean views, decadent home theaters, an in-home bowling alley and more, in this new video series I’m tentatively calling “Deals on Wheels” (open to a better name from our poetically inclined readers).

Ultra-luxury real estate is more than selling homes. It’s about curating an experience for the buyer, for their guests, for the ages. I know we’re doing our job right when I’m still blown away every time I step through the door. You can tell in the video, representing these properties is one of my favorite perks of the job.

And what kind of friend would I be to not share these perks with you?

Click on the image above to experience them for yourself!

With the holidays upon us, I hope you’re happy, healthy and near the ones you love. Have a wonderful Thanksgiving!


Talk soon,
Andy Stavros
 
FROM THE BLOG
What is a smart home and why should you want one?
View Blog
Stavros Group
 
IN THE NEWS
What home features are buyers wanting in the COVID era?
View Video
Realtor.com
Southern California’s home sales jump 17% in October
View Article
OC Register
 
RECENT SUCCESS
989 Cliff Dr
Laguna Beach
4 BD | 5.5 BA | 4,041 SQ FT
Sold for $13,000,000
 
2430 Monaco Dr
Laguna Beach
4 BD | 5 BA | 4,158 SQ FT
Sold for $8,350,000
 
1639 Eleanor Ln
Laguna Beach
Over 12,000 sq ft lot
Offered at $3,495,000
 
FEATURED LISTINGS
4601 Tremont Ln
Corona Del Mar
5 BD | 7 BA | 8,401 SQ FT
Offered at $13,995,000
 
3312 Marcus Ave
Newport Beach
3 BD | 4 BA | 2,756 SQ FT
Offered at $3,695,000
 
32 N La Senda Dr
Laguna Beach
4 BD | 5.5 BA | 5,144 SQ FT
Offered at $17,995,000
 
2442 S Coast Hwy
Laguna Beach
16 BD | 14 BA | 8,991 SQ FT
Offered at $8,985,000
 
YOURS COULD BE NEXT!

Don’t hesitate to reach out for a no-pressure conversation. Connect with us today! It’s our pleasure to help guide you through the process, start to finish, and help you make the right choices while minimizing your stress.

A Record Year for DIY 🏠 Local Updates & Luxury Listings ✨ Stavros Group October Newsletter

*|MC:SUBJECT|*
Facebook
Instagram
OCTOBER 2020

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
FROM THE BLOG
Orange County new home sales and construction bounce back
View Blog
Stavros Group
IN THE NEWS
Sustainable Living: 10 tips for a greener home
View Article
Redfin
SoCal’s summer homebuying surge continues in fall
View Article
OC Register
RECENT SUCCESS
989 Cliff Dr
Laguna Beach
5 BD | 5 BA | 4,041 SQ FT
Offered at $13,995,000
1639 Eleanor Ln
Laguna Beach
Over 12,000 sq ft lot
Offered at $3,495,000
2430 Monaco Dr
Laguna Beach
4 BD | 5 BA | 4,158 SQ FT
Sold for $8,350,000
FEATURED LISTINGS
4601 Tremont Ln
Corona Del Mar
5 BD | 7 BA | 8,401 SQ FT
Offered at $13,995,000
616 Bolsana Dr
Laguna Beach
4 BD | 3 BA | 4,263 SQ FT
Offered at $2,895,000
32 N La Senda Dr
Laguna Beach
4 BD | 5.5 BA | 5,144 SQ FT
Offered at $17,995,000
2442 S Coast Hwy
Laguna Beach
16 BD | 14 BA | 8,991 SQ FT
Offered at $8,985,000
YOURS COULD BE NEXT!
Copyright © 2020 Stavros Group, All rights reserved.
12 Corporate Plaza #250, Newport Beach, CA 92660
Douglas Elliman Real Estate


View this email in your browser

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

The 6 D’s: Why Orange County Homeowners Sell

Why People Buy and Sell Orange County Real Estate

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.

 

Reasons to Sell: The Six D’s

 

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).

 

Choosing Your Orange County Real Estate Agent Matters. A Lot.

 

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?

 

We Help Orange County Buyers and Sellers

 

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.

Mastering Real Estate Negotiations

 

 

If you want to work with the top Orange County real estate agent, get the best price and favorable terms, and feel great about the outcome when it’s done, you need an expert negotiator. 

 

 

Real Estate Negotiations Matter

At its core, a real estate transaction is a push and pull between buyer and seller. Buyers want the best deal. Sellers do too. Both sides of a transaction are looking for every edge to maximize their investment. 

 

For home buyers who finance their home purchase with a mortgage, the closing price is further multiplied over the lifetime of their loan. On the other side, sellers want to feel like they are getting the most money possible when they part with their property. They may have an emotional attachment to their home, on top of their financial incentive. Decisions can be emotional and not always based on fact, logic and reason. It can seem like a miracle that any deal comes together! 

 

 

For the best results, you need an expert negotiator.

 

Of course, a home is about more than money. A home buyer might love a home so much that they will pay just about anything for it. A home seller might want or need to sell badly enough that price is a secondary concern. But no matter what, you probably do not want to leave money on the table. You probably want to feel that you did the best you could. 

 

 

You need an expert negotiator.

 

 

Negotiations provide the greatest opportunity for improving the results of your real estate sale. There are many steps involved in listing a home, and each one is valuable. Our team at The Stavros Group is proud to bring decades of experience to our clients, helping them win at every stage. But while things like strategic repairs, improvements, staging, and marketing are important, negotiations create value seemingly out of thin air through skill and tact alone.

 

Whether your listing receives one or five or fifty offers, you want to make sure you obtain the full market value for the home. It can seem like the results do not vary agent to agent. If you look at marketing plans, you might get the sense that we all do the same thing. Make no mistake, there is a difference.

 

Would it surprise you to know that a listing agent who is a skilled negotiator can increase the sales price anywhere from 1–10% or more from the highest offer that was originally submitted?

 

Real Estate Negotiations By the Numbers

Let’s say you put your home on the market. When a good offer comes in, does it make sense to accept the offer or go back for more?

 

We start with the listing price. Next is the initial highest offer, which the buyer originally submitted. That initial offer is influenced by many factors, including list price strategy, staging, marketing, overall market conditions, and initial negotiations between the listing agent and the buyer or their agent. After the initial offer, we negotiate further to arrive at the final price.

 

Through precise, strategic negotiations, we are able to boost the selling price by thousands of dollars, even with only one or two offers on the table. Our listings frequently close at a substantially higher price than the initial highest offer.

 

 

 

You really do need an expert negotiator.

 

 

Best Orange County Listing Agents | Real Estate Agent Negotiator

While most media depicts the real estate process as one big house hunt (and who doesn’t like to watch couples argue over cabinetry?), it often omits the critical steps that happen after buyers submit an offer. 

Part of an agent’s job is matchmaking, finding buyers a home or finding a home a buyer. The other part of the job is what happens next. What separates the best Orange County real estate agents from the rest is the ability to create additional value for the client.

 

With a skilled negotiator on your side, you’ll come to a smooth resolution with more money in your pocket. Without a skilled negotiator, you’ll leave money on the table (if a deal is made at all).

 

You need an expert negotiator.

 

If you are thinking of buying or selling a home in Orange County, please don’t hesitate to reach out. Contact top Orange County real estate listing agents The Stavros Group.