🔴[LIVE] 🚨 Why SOME houses don’t sell? | The tiny but growing trend of assuming the loan (Los Gatos Homes for sale)
- Why Some Houses Don't Sell
- Los Gatos Homes for sale
- The tiny but growing trend of assuming the loan
- Tuesday Highs & Lows
🔴[LIVE] 🚨 Why SOME houses don’t sell? | The tiny but growing trend of assuming the loan (Los Gatos Homes for sale)
Is your house not selling? Today we're talking about why houses don't sell! We're also going to talk about a tiny but growing trend of assumed loans the Las Gatos house of the month of the week the Las Gatos house of the week and the Highs and lows of Santa Clara County. Let's get going All right.
Mortgage Rates and Gas Prices
The first thing we're going to talk about is rates mortgage rates ticked up this week to 7.
04 Which is funny because last week we actually had a huge jump in sales and actual pending sales which That's what we want, right? Now we're going to see it flatten out a little bit more, but that's okay. These are not quoted rates. You have to talk to a lender and get qualified and approved and get all that other stuff, but you can buy those, these rates down.
So don't be afraid of the seven number. The lowest gas price in Santa Clara County is 3 and 69 cents on Stevens Creek Boulevard is that great gas and it's right.
See if I can open that up for you. I'm trying a new shot here. There you go. See, it's right here. It's one in gray, right by Burbank.
Why do some houses not sell? Now, these are, I think, over 60 days or something like that. And there's not a whole lot of them, but houses do tend to sit on the market, depending on a lot of things. And I wanted to take a look at this one. It says it's a new listing, but it's not it's been on the market for 63 days right here.
You can see right here and it is in Where is this 9 5? This is in my area 3 so you can see it's right here Santa Teresa Boulevard, that's Oak Ridge Mall. I live over here by La Colina. But after 63 days on the market, it should have sold. There are a couple reasons why. I can tell you that the first page is the first photo you look at right here.
Yeah, that's a nice picture of the inside of the house, but When you look at it, it's a yellow house, right? Now maybe the seller didn't want to sell it, but look, the curb appeal is just horrible on this house compared to other houses, right inside. It looks great. Now you have the mulberry tree here. That should have been trimmed down.
And I probably would have painted that something a little bit less and that less yellow. And then I would have spent some time and energy on the front landscape, whether I, Threw some grass seed down, made that low maintenance, etc. So let's take a little bit more look. Now it's not a huge house, it's 1, 300 square feet, but it's nice.
It's really pretty inside. So it gives me the flavor or the flair that this might have been a flipped house. So yeah, I mean everything about it inside is brand spanking new. Why are they not selling it? Why is this house not selling? It's not on a busy street. I think it has everything to do with The way they're marketing it the way they're making it look and that yellow like it's hard for people to get past that when you're spending one point, yeah, and it's overpriced for the area that should be listed at 1.
2, 1. 3 and attract buyers instead of making the market. And again, this house kind of rings to me like it's a flipped house. They put in a bunch of brand new stuff and that's why it's sitting on the market.
Understanding Property Condition and Market Value
I've been working on this slide right here so you can look at it and it helps.
Understand helps you understand how I go to market right? It's not just the marketing. That's another part of it, but it's always location property condition, and local market. I've been telling you this for the last couple of years location, right? And when I do comps, when I do comparables, I usually do a one-mile radius and a 10 percent variance of square footage and the bed count.
Now, if it's a If it's a smaller range house, probably go three and four. And if it's a larger range house, I'd go four and five, or I would just open it up and see what's out there just so we can have an idea of what's available and the condition of the house. And I categorize it into three different categories.
That's very general, but it helps me explain and pinpoint a value to discuss how to price your house. So you have a fixer house, which is completely brand old. It's not maintained. Some things need to be repaired. There's a crack in the walls. There are cracks in the ceilings. It hasn't been painted their carpets are old and torn, they just need to be completely revamped. That's a fixer, right? And there's nothing wrong with fixers. People want to buy fixers but just don't expect to get a premium price for that. And then there's the, as is where you, over the time that you've lived in your house, like my house, I've lived in my house.
It's not completely turnkey. There some certain things that I need to get done. If I were to sell my house, I went on a listing appointment yesterday and that's where we pointed out that house really sits. It's really about. Houses that are well maintained and upgraded over time and not upgraded to sell completely turnkey like a brand new house with all the new latest fashion and gadgets and colors and schemes, right?
So you're going to get a middle-tier offer when you listed a little bit lower at that point. And sometimes you're surprised and then turnkey is when you put in a ton of money, just like we did on this house over here. We, they did on this house, but they missed the mark, right? They missed the mark because they updated the floors and the paint and the kitchen and the bathrooms.
And it looks really pretty inside a couple of things that you have to know. Gray is not necessarily the color that people are looking for today. That was from a couple of years ago. I went to taupe or grayish. And now people are looking more towards grayish and coming back to beige and more natural color.
So when you look at flooring, people want to see natural wood, which is Brown, not gray. It could be washed like this is here in the bathroom, but at the same time, you still see a lot of gray. And you're going to see gray for quite a while. That's not the trend of what people are seeing today or wanting today if that makes sense.
And quite frankly, that should have been listed at two 1. 25 1. 3 to attract buyers. And then you bid it up. So when you're looking at property condition, add into what the value is, the perceived value for the group of buyers that are looking in that specific house based on the location and the complete market.
That's why we talk about rates. That's why we talk about houses that are selling. That's why we talk about how many houses are selling and talk about inventory, et cetera. So we always look at past comparables. We look at the market trends and we also want to create a market.
Creating a Buyer Persona for Effective Marketing
The demographic of your potential buyer.
What kind of business does he do she do? Is he are they, busy professionals? Do they have children? Are the school's important? That kind of thing and we create a buyer persona or an avatar and we create the idea of who we're selling it to just like when you go to a retail outlet whether it's clothes or Records or hats, they have a specific persona or avatar that they're niching to.
And that's how we market towards your house. And out of all of that, we generally come up with a sensible price, and a marketing scheme and come into it. And then we go to market and do all the different things, but I hope this makes sense. That price, the value, the perceived value is out of whack with that neighborhood.
It will sit on the market for a long time. Guys, this isn't rocket science, right? You can sell your house on your own. If you really want it to it's been a market and they live lowered at 50, 000. What they should have done is attract the market. So now that the house has been on the market 63 days, there's a whole new slew of buyers that are coming through, but they're also saying, why is it on the market for so long?
And part of my marketing scheme is tempo. I want to have a house that's listed based on a condition just below where it should sell to attract as many buyers as possible on the Internet. So we can get them in the door and make them want to put an offer on it. So we can get multiple offers and then I can negotiate that up.
Showcasing the Las Gatos Home of the Week
Las Gatos home of the week. This is actually not a home. This is a development opportunity. If you have 6, 000 or 6 million lying around let me know because we can buy this and I know some great builders that we could look at this.
So right now it's just a two-bedroom, one-bath, 1, 100 square foot house. And I think it's over here. You can see my little cursor. I want to allow you to take a look at this. Now it is land, what you're buying, the values in the land. So it's all this right here. This is another house. That's your neighbor.
That might be the house right there. We'll see. Let's take a look. Yeah. So you're buying this entire hunk of land right here and you can put nine units on it. There's a little access road. There's another lot right there. So you can build some houses on it, right? Nine houses. So you're looking at the rolling hills of Las Gatos.
And here's an option to do 10 different units on it with this major property here. I probably would have, I don't know, I don't know if I'd have done it that way, but that's an aerial view of what it looks like. That has to be the house right there. But there's a development opportunity. If it's something that you want to do, let me know, and let's write that check for 6 million.
There's your Los Gatos home of the week. Again, that's not my listing. It belongs to an other company. So a lot of, that I follow. Ryan Lundquist, who is an appraiser up in Sacramento and Sacramento plays appraisal blog. He is my muse when it comes to statistics and that stuff that I send out on Facebook.
Exploring Assumable Loans
He also has some really great insight into what the trends are. So I follow him and I thought I'd pump his website just so we can talk about this. Now, if you have. A two-and-a-half or 3 percent loan, and you're like, I need to move. I got relocated or divorced, or it's just not working out. It's not the house I want.
You can actually sell your house and let the buyer assume that loan. This is not easy to do. This is a very difficult process. There are a lot of working parts into it, but because rates are so high right now, if you have a low rate, even if it's at 4%, it might make sense. Let's say that you buy a million-dollar house and now it's worth 1.
5 and you have a million dollar loan on it and you have to, the buyer is going to buy it at 500. They can assume that million dollars, that million dollar loan at 3 percent, and get the new rate for the delta for the difference, which is 500, 000. We're not talking down payment or whatever, just using round numbers and that's seven.
And then they come together with a blended rate, which is closer to five, four, and a half, 5 percent depending, right? There's a little math computation on that. We're saying that. Rates are going to come down probably starting March, but right now we're seeing markets, markets tick up. It went down a little bit last week and popped back up today.
And that's where we are. So find a house for sale that has an assumable loan, and typically it's an FHA or a VA loan, and you don't have to be a veteran to assume a VA loan. Just so you know that. I do talk about VA loans at San Jose State every quarter, semester, or whatever. And I should know I went there.
Anyway, why would you want to do that? Because it will actually blend your rate and make your rate lower. And it's something you can do. There are costs behind it. And it's not something people typically do. As a matter of fact, down here shows that the assumed loans that I've done so far in Sacramento are only 0.
4%. Conventional is a standard 80-20 loan and then cash and then FHA VHA. These are assumable right here. Some conventional loans are assumable and it's something you have to ask the listing agreement to find out if that loan is assumable. And what has to happen is the seller has to call the lending company and say, Hey, is this loan?
Assumable and what is the process? And then we have to follow that. So these are, this is a sample of homes that are sold with an assumed loan. So it's not impossible. It's just difficult, but that's what we get paid to do. We get paid to work through that, right? And I've never done an assumed loan, just so you know, and I'm not a clown because I'll admit it to you all day long.
It's something that I'm willing to do and learn, but it will cost a little bit more money. Just so you know. So understand that assumable loans are out there. If you're a buyer and you want to look at something like that, it's something that we can discuss with the seller and it's on a case-by-case business.
You can't, or big case-by-case potential, right? So there you go. It's something that we can talk about.
Analyzing Highs and Lows of Santa Clara County
See the highs and lows of Santa Clara County for this week. And that's it right there. Let's take a look. Carl. In Monticello, this gorgeous home has five bedrooms, five and a half baths, 552 square, 5, 552 square feet, and was built in 2008.
And this thing is just gorgeous. See, this is how you market a home. It's just that everything about this home is beautiful, right?
Wine cellar, gorgeous kitchen.
There you go. And if you want links to this, absolutely. It's down in my blog, go to my blog. It's linked into the video and podcast, et cetera. You can do it. And by the way, did you know that I have a podcast? It's basically the same thing on video. It's just if you're driving home, I want you to be safe so you can plug this in and listen.
Okay. The lowest-priced sold house in Santa Clara County is in Gilroy on church street, three bedrooms, one bath, 1, 224 square feet built in 1947.
A quick look at it. It's a nice little cottage home, original everything, right? So you remember, talk about condition, location, et cetera. Nice. That's pretty cool. This house was priced, assuming that they were going to get 700, 725. You list it low, sell it quick, create that tempo. Joseph Lane in San Jose. This is the highest list price-to-sales price ratio.
Sold in 500 square feet. And this is, And Cambrian, yeah, I sold a house over here on a stride last year right here, a stride this one smartly, we sold it for, I think 1. 8, but because this house was close to the freeway, you're going to not get as much for that house and it sold really quick. So you priced it under where the market is.
You attracted the buyers. You sold it in eight days and you got the highest, best value, and best terms too. You can negotiate terms better that way. This house is right here in Las Gatos, it took 35 days to sell 2. 4. It started at 2. 5 and then they reduced it and it went down to 2. 2. It's Garden Hill. And yeah, just in case you didn't know the arrow right there helps, right?
Yeah, that is functional obsolescence. That's not even cool anymore, but this house was sold as is,
and here's what happens when you sell a house and it's overpriced, you lose value on it. The assumed value of that house is not what buyers are going to do, but pay that for that house and theirs. When they look at houses, they're looking at, let's say that they look at a pool of 50 houses that match their criteria.
And it's not within a one-mile radius of your home, right? They might be looking at Los Gatos Cambridge Willow Glen and Cupertino. And they're like, this is my budget. This is where I want to go. And I want a three-bedroom house and they go in and I want to fix her upper. So they look at all the fixer-uppers and they come to this and they're like 2.
48 that's, and they do comps on this house. And I'm like, no, for a house that's completely targeted, that should have been, 2. 2 0. 1, 2. 2. And then it's, sold, it could have been sold a lot quicker if you look, if you came in low and, I had somebody comment a couple of weeks ago on.
My process and he's if you can't promise me 25 percent over list price over what the market averages are I'm not gonna hire you. I'm like, okay. Then go hire somebody else because I don't do magic I do process and the process works, right? I'm here to help you sell your house not create magic or pull a rabbit out of my hat It just doesn't work that way.
So there you go.
Conclusion: The Importance of Proper Pricing and Marketing
Okay, so today we went through mortgage rates, gas prices, and why houses don't sell. We looked at that little Venn diagram. House the Los Gatos House of the Week. And talked about assuming loans and the four highest and lowest list price-to-sale price ratios. And by the way, that one sold for 88 percent under the original list price where Joseph Lane, listed under, and they came in 30 percent over the list price and it sold in three days.
Versus 35 days. So why put yourself up through it through the stress? You don't determine the final sales price the buyers do your job is to allow us to attract buyers And negotiate it up to where we break all buyers except for one. So there you go Hope this makes sense if there are any other statistics ideas or stories you want to share with me, please send them I'd love to have talks about that and talk more about, what's going on in the market.
I enjoyed these videos and I hope you do too. I'm Vito with Avatano. We'll see you out there.
Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Website: www.abitano.com Get your Equity and Investment report here RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia Free Homebuyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg?sub_confirmation=1
To promote your script on social media, here are a few options for text posts: 1. Post 1: "🔴[LIVE] 🚨 Why do some houses not sell? Join me as I discuss this burning question and uncover the tiny but growing trend of assuming loans in the Los Gatos real estate market. Don't miss out on this insightful conversation! #RealEstate #HomeSellingTips" 2. Post 2: "Looking for answers on why your house isn't selling? In my latest script, I dive deep into the factors that can cause houses to sit on the market for longer periods. Plus, I explore the emerging trend of assumed loans in Los Gatos. Check it out now! #RealEstateInsights #MarketTrends" 3. Post 3: "🔍 Are you curious about the reasons behind houses that fail to sell? Join me in unraveling this mystery as I explain the nuances and challenges of the real estate market. Discover why some homes thrive while others struggle. Don't miss this eye-opening script! #RealEstateTips #HomeSelling"
Title: Why Some Houses Don't Sell: Exploring Assumed Loans and Market Strategies
Are you a homeowner struggling to sell your house? In this blog post, we will delve into the reasons why some houses fail to sell and explore a growing trend that might provide a solution – the concept of assuming loans. We will also discuss effective market strategies and the importance of location, property condition, and understanding local market trends in determining the value of your home. So, let's dive right in!
Understanding the Market:
If your house has been on the market for an extended period, you might be wondering why it's not attracting potential buyers. Several factors can contribute to a house not selling, such as pricing, marketing, and property condition. In this blog post, we'll focus on one specific example to help illustrate these factors.
Case Study: The Yellow House on Santa Teresa Boulevard
Let's take a closer look at a specific listing that has been on the market for 63 days. This house, located in the Santa Clara County area, should have sold by now. However, upon inspection, we can identify some possible reasons for its prolonged time on the market.
Curb Appeal Matters:
One of the primary issues with this particular house is its lack of curb appeal. While the interior of the house is lovely and well-maintained, the exterior leaves much to be desired. The yellow exterior color, combined with an overgrown mulberry tree and neglected front landscaping, fails to create a positive first impression for potential buyers.
Effective Marketing Strategies:
When marketing a house, it's essential to consider its location, property condition, and overall market trends. Understanding the preferences and expectations of your potential buyers is crucial. By analyzing past comparables in proximity to your property, you can determine a suitable price range and offer attractive selling points.
Condition Categories Explained:
To better understand a property's value, we categorize houses into three conditions: fixer, as-is, and turnkey. The fixer category represents properties in need of significant repairs and updates, typically sold at a lower price point. As-is houses have been maintained and upgraded over time but may still need some improvements. Turnkey homes, on the other hand, have undergone extensive renovations and offer buyers a move-in-ready experience.
Applying these concepts to the Yellow House, it's evident that despite its well-maintained interior, it falls into the turnkey category. However, certain design choices, such as using outdated colors like gray instead of the current trend of more natural tones, might hinder its market appeal.
The Importance of Assumable Loans:
Now, let's explore a unique solution for selling your house – assuming loans. An assumable loan allows a buyer to take over the seller's existing mortgage. This trend is growing in popularity due to the current high interest rates. Suppose a buyer assumes a low-rate loan on a property that has appreciated in value. In that case, they can benefit from the lower interest rate, creating a blended rate that offers substantial savings compared to securing a new mortgage.
Assuming loans can be a complex process, involving several parties and specific lender requirements. However, if you have a desirable loan with a low interest rate, it might be worth considering as an alternative selling strategy.
Selling a house is not an easy task, but with the right strategies and understanding of the market, it can be a successful endeavor. Pricing your property competitively, creating a desirable curb appeal, and leveraging market trends are essential factors to consider. Additionally, exploring alternative options like assumable loans might provide a unique opportunity to attract buyers and close the deal.
Remember, every house is different, and there is no one-size-fits-all approach. By partnering with a seasoned real estate agent who understands local market dynamics and trends, you can navigate the selling process more effectively.
If you're currently facing challenges in selling your house, reach out to us! Our expert team at Avatano is here to guide you through the process, provide valuable insights, and help you achieve your real estate goals.
How to Sell Your House: Unpacking Trends, Assumable Loans, and Santa Clara County Insights!
In this episode, Vito breaks down the reasons why some houses don't sell, touching on the importance of curb appeal and properly pricing according to the condition and local market. We also dive into the trend of assumed loans while highlighting recent fluctuations in mortgage rates. Special attention is given to Santa Clara County as we reveal and explore the highs and lows, looking at the best and worst price-to-sales ratios in the region. By covering various market trends, this video hopes to give homeowners a better understanding of how to sell their houses effectively and fast.
0:00 🔴[LIVE] 🚨 Why SOME houses don’t sell? | The tiny but growing trend of assuming the loan (Los Gatos Homes for sale)
00:20 Discussing Mortgage Rates and Gas Prices
01:09 Why Some Houses Don't Sell
03:29 Understanding Property Condition and Market Value
07:07 Creating a Buyer Persona for Effective Marketing
08:49 Showcasing the Las Gatos Home of the Week
10:29 Exploring Assumable Loans
13:46 Analyzing Highs and Lows of Santa Clara County
17:45 Conclusion: The Importance of Proper Pricing and Marketing
Why Some Houses Don't Sell
Property Condition vs Market Value.mp4
Buyer Persona for Effective Marketing
Buyer Persona for Effective Marketing #sellingyourhome #dontmakethismistake #fyp #siliconvalley #sell #luxuryhomes https://youtube.com/live/9QlL57EcmCA
Las Gatos Home of the Week
Las Gatos Home of the Week #sellingyourhome #dontmakethismistake #fyp #siliconvalley #sell #luxuryhomes https://youtube.com/live/9QlL57EcmCA
Assumable Loans #assumableloan #sellingyourhome #dontmakethismistake #fyp #siliconvalley #sell #luxuryhomes https://youtube.com/live/9QlL57EcmCA
, when to worry about a house not selling, house not sold after 3 months, should I sell my house now or wait until 2024, good signs your house will sell, tips for selling your home by owner, Rightmove, Opendoor, Silicon Valley real estate, how much will my mortgage be, santa clara county real estate tax, real estate news, stock market, real estate crash, Bond yields, Wealthion, Airbnb, Blackstone real estate, MLS listings, Zillow, redfin, santa clara homes for sale, MLS listings san Jose, Airbnb property for sale, AirBnBust