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Week of May 13th-19th
Property Tips and Tricks
Flying Private in the Real Estate Sales Market
When it comes time to sell your home, a number of decisions need to be made before your property goes live on the MLS, and shows up on popular search website such as Zillow and Realtor.com. Among those decisions is this - should you even list your home for sale publicly? Below we’ll explore several factors when considering listing your home privately.
First, a few reasons why listing your home privately, as a pocket listing, may make sense:
Confidentiality: Maintaining privacy is always crucial, particularly during specific life events. For instance, if you're a public figure, undergoing a divorce, or relocating for a job before informing your employer.
Security: The phrase "Selling your home doesn't mean selling your safety" rings true for many clients. Some homeowners prefer not to have strangers peering into their homes or driving up their driveways. Some even prefer to keep their decision to sell a secret from their neighbors.
Market Perception: Global averages about days on market can create a false impression that a property should sell within days of listing. These averages are often misleading, so competition is inevitable. By testing price positioning and gathering feedback without accumulating days on market, you can help shape a more favorable market perception for your property.
Preparation Time: Private exclusive listings allow sellers to take their time perfecting their marketing strategy before going live. This includes capturing the best photos and videos in optimal weather conditions, which may not be immediately available, especially here on the Monterey Peninsula.
Conversely, below are several reasons NOT to list your home privately:
Potential for Higher Sales Price: While it's true that a buyer might be willing to pay a premium for exclusive access to a property, this isn't always the case. Generally, exposing the property to a larger pool of potential buyers can create higher demand, which can lead to a higher sales price.
Limited Exposure: Private listings limit the exposure of your property to a smaller group of potential buyers. This could potentially limit the number of offers you receive, and ultimately, the final selling price.
Slower Sales Process: With fewer potential buyers, the property might take longer to sell. This could be a disadvantage if you're looking to sell quickly.
For many sellers, the optimal strategy often involves initially listing their home as a private or 'pocket' listing for a brief duration. This approach provides an opportunity to gauge the market's response to the pricing and overall perception of the property. If necessary, adjustments can be made based on this feedback. Subsequently, the property is listed publicly, armed with valuable insights gained during the private listing phase. This method effectively combines the benefits of both private and public listings, while limiting drawbacks.
Real Estate News
Climate Change
As we delve deeper into the Spring season, the Monterey Peninsula's real estate market remains vibrant and dynamic. Two other markets in our region, San Jose and San Francisco, are leading the national charts in terms of the most significant month-over-month appreciation, a trend likely influenced by the AI boom. However, our market's size precludes it from being included in this data set.
The number of homes purchased by investors nationwide has seen an uptick for the first time in almost two years, and foreclosure rates across the country are showing a slight decrease, which is a positive sign for the macro housing market.
Investor purchases now make up nearly one-third of all home purchases in the U.S. (29%), with California leading the pack at 35% of all home acquisitions.
So, what's driving investors to buy more homes now?
It's certainly not due to the availability of low mortgage rates.
Approximately 34% of U.S. households are renters, and investors with available cash reserves are choosing to buy homes and rent them out. With many potential buyers being priced out of homeownership due to high rates, the rental market is seeing increased activity.
Do these investors know something that we don't? Well, owning assets in an economy experiencing inflation can act as a safeguard against inflation. After all, as the saying goes, "inflation is a feature, not a bug".
Worked with me in the past? Share your experience.
Jonathan Balog
DRE# 01980970
Broker
M: 831.747.0310
[email protected]
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
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