san diego real estate agent

What’s Happening With the San Diego Real Estate Market?

October 17, 2022 by Danielle Negroni Leave a Comment

It is the number one question my clients ask as the markets fluctuate and interest rates rise. Everyone wants to know if the housing market will further decline and are we heading to a “crash.” Let me share with you a few reasons as to why I believe the San Diego housing market will not “crash,” and in fact, it is an excellent time for Buyers to purchase a home for personal or investment purposes.

1. The Facts – In 2021, the San Diego real estate market appreciated up to 40%. We’ve seen a pricing decline of 10-15% in the last few months. The net result is that most homeowners still have substantial equity in their homes. Because of this equity, we do not see short sales or foreclosures. And Sellers aren’t “desperate.” The decline of the last few months is a market correction to adjust for the 2021 accelerated appreciation.

2. Historically Low Inventory – There is still a housing shortage in San Diego County, and it’s projected to take up to ten years to correct. Yes, more houses are on the market than last year. However, it’s still limited in many desirable communities.

3. Interest Rates – Interest rates are on the rise, but don’t make the mistake of thinking they will drop back to the historically low rates of 2021. Rates of 5%-6% are still fantastic, and they should not deter Buyers from making a purchase. If rates unexpectedly decline, the option to refinance is available.

4. Less Competition – Most homes today are sold without multiple offers. Take advantage of this competitive edge, and be the sole bidder. You most likely will get a discount off the list price, in addition to favorable terms that disappeared in the past year.

5. Safe Place to Hold Cash in Volatile Markets – Buying property is an excellent cash investment due to the stability of the real estate market in San Diego. Our market appreciates year after year and often outperforms other opportunities.

Have more questions about how the San Diego real estate market looks in your neighborhood or zip code? Give me a call!

4 Reasons to Buy a Home During the Holidays

December 5, 2018 by Danielle Negroni Leave a Comment

Between holiday shopping, preparing your guests, and trying to juggle all the events you’ve been invited to, it’s natural to want to put buying a home on the back burner until January. But there are a few significant advantages to purchasing a home this time of year, and if you’re serious about buying a home in San Diego, it may be worth the time and energy to fit in a few showings and open houses! Read on for four reasons why you should consider buying a home during the holiday season:

1) Less Competition

November, December, and January are usually less competitive months for buyers. With fewer buyers looking, you are less likely to compete in a bidding war. During the holidays, the home buying experience tends to feel a little more relaxed and will give you needed time to make a decision.

2) Serious Sellers

If a seller has their home on the market during the holidays, they are usually very serious about selling. This could be because they’ve already purchased another home and need to sell ASAP, so they don’t have the financial burden of two mortgages. Other reasons may be a seller is facing a major life change like a job transfer, divorce, or new baby. Whatever the reason, sellers are often more willing to negotiate because fewer buyers are looking during the holidays. Even if the price tag is still high, some sellers may be willing to compromise on other aspects of the sale like repairs or closing costs.

3) 2019 is Around the Corner

With less than a month left in 2018, everyone involved in your home purchase will be looking to help you close before the end of the year. With fewer transactions on the table, it may actually be doable! This is where you’ll want to lean on your agent to help assemble a great team who is willing and able to work quickly to get you moved in as soon as possible. Many lenders can close a loan in 15 days so long as everyone else involved is willing to speed things along.

4) After Christmas Sales

This is more a perk than anything, but it’s still worth noting that many types of furniture, appliance, and home décor companies will have impressive sales after the holidays! Of course, you need to wait until AFTER you close escrow to make big purchases, so you don’t jeopardize your loan approval. But knowing you’ll be able to save money on all the things you need for your home is a great incentive to keep house hunting.

If you come across a home that meets your requirements and is within your budget, don’t let the holidays stop you from purchasing- especially when there is still such limited inventory in San Diego. Many homebuyers let a potential home go merely due to the time of year, but if you’re serious about buying, and it’s the right fit, you should make an offer.

No matter your timing, I am here to help! Contact me today if you’re looking to make a move in the coming months.

3 Common Inspections You’ll Have When You Purchase a Home in San Diego

August 20, 2018 by Danielle Negroni Leave a Comment

Once your offer has been accepted and you’re in escrow to buy a home, you’ll have a certain amount of time to inspect the property and remove contingencies. Your agent will guide you through what inspections are necessary depending on your unique situation. There are some inspections that are common to almost all home purchases in San Diego and should be completed for peace of mind.

Home Inspection

A home inspector will review the structure of the home and all of its associated systems. The home inspector is often the first person to inspect the home during the escrow process, as they often identify potential problems in the property that will require a follow-up inspection by a specialist. For example, a home inspector may feel that there’s an issue with the plumbing and recommend you call a plumber to see what the problem is, how to fix it, and what it will cost.

The home inspector will give you an inspection report for your review and records. Following the inspection, you have the option to negotiate with the seller the completion of any of the repairs, a credit for the work, or in the alternative pay for the repairs yourself. If none of these options are acceptable, you can elect to cancel the escrow.

If you are securing a loan, on the property, there are some issues a lender will require to be addressed and fixed prior to closing. It’s important to have strong representation at this time of the transaction because many repairs are costly and you don’t want them overlooked.

Termite Inspection

All homes in San Diego should have a termite inspection, unless waived on the purchase contract. If you are getting a loan, most lenders will require a termite clearance (meaning any problems on the property have been addressed and treated) prior to closing escrow.

The seller typically pays for the cost of the termite inspection. The buyer will receive a copy of the termite report, which will be divided into Section 1 and Section 2 items. Section 1 items will need to be addressed in order for the home to close escrow and the seller usually pays for these Section 1 items. Section 2 items are usually covered by the buyer as they are not a requirement for the home to close escrow, but may be something the buyer wants to address in the future. The main difference between Section 1 and Section 2 items is that Section 1 usually refers to remedying active termite infestation or repairing dry rot or damage from termites. Section 2 items usually refer to conditions present in the home that could lead to a future infestation of termites, damage, or dry rot.

Septic/Well Inspection

Some homes in San Diego County have a septic system and/or a well on the property. If the home you are buying has either or both of these, you will want to get them inspected.

When the septic system is inspected, any known issues will need to be remedied by the seller in order to receive a septic system certificate that it is in good working order.

If there is a well on the property, a well inspection company will need to come out and review how the system is functioning. They will also test the water for coliform bacteria and certain metals and minerals that could be harmful to the health of your family or your home. You will receive a copy of all test results.

There are many other inspections available for a home (roof, pool, foundation, mold, sewer lines, roof, windows, etc) but these are three of the most common ones to consider. Every property is unique so it’s important that you work with an agent who has the knowledge and experience to guide you through the escrow process.

Thinking of buying a home in San Diego County? I would be happy to put my expertise to work for you – call (858) 735-5767 today!

3 Tips to Help You Understand What Stays With the House When You Move

July 5, 2018 by Danielle Negroni Leave a Comment

There’s so much to do between getting your home ready for sale, entering escrow, and ultimately packing up and moving out. It’s easy to make assumptions about what’s yours to keep. After all, you may have selected the window coverings and designed the built-in cabinetry. It’s essential, however, to know what contractually remains with a home upon its sale before you fill up a single box. Trust me when I say you don’t want a dispute to arise during the final walkthrough and delay closing until the issue is resolved.

Use the three tips below to avoid a misunderstanding with a buyer about what contractually remains in the home and is part of the sale:

What is Real Property?

Real property is defined as land and any property attached to it. Under the terms of a real estate contract, and in the context of a home sale, this means anything that’s nailed, bolted, screwed, anchored, built-in, or otherwise attached to the house.

Examples of real property include doors, windows, ceiling fans, most light fixtures, plumbing, fences, landscaping, built-in bookshelves and furniture, storage sheds, curtain rods, blinds, and so much more. The most commonly disputed items I’ve encountered are TV wall mounts, light fixtures, appliances, and window treatments. If you’re not sure what constitutes real property, ask your Realtor!

Write It In the Contract

One of the best ways to avoid a misunderstanding with a buyer of your home is to put it in writing. If there is a family heirloom, a light fixture, or an appliance you want to take (i.e., the high-end wine refrigerator) write in the contract that these specific items do not convey with the sale of your home. These so-called “fixtures” will otherwise be included in the contract and legally must remain with the house.

If You Want It, Swap It Out

I advise my Sellers if they have purchased expensive items for the home and can’t live without them, replace them before going to market. It’s important to note, however, these upgraded items are likely the reason the home may sell for more money. I wouldn’t strip the house of every upgraded fixture but instead, focus on just one or two items that may work well in your next home. After careful consideration, most of my Sellers realize that most of the things should stay.

If you’re thinking of selling, I would be happy to put my expertise to work for you! I’ve helped many sellers successfully navigate the sale of their home in San Diego County and am available to answer any questions you may have about real property, moving up, downsizing, and more. Please give me a call at (858) 735-5767!

8 Can’t-Miss Summer Activities in San Diego

June 24, 2018 by Danielle Negroni Leave a Comment

One of the perks of living in a tourist destination is that there’s always something to do, no matter what month it is. But summer is especially packed with activities that will take you from one end of the county to the other. Besides the obvious like the San Diego Fair, racetrack, and 4^th of July celebrations, here are eight of my favorite activities that should be on your bucket list to experience during summer in San Diego.

Humphrey’s Concerts by the Bay

No summer is complete without taking in at least one concert at Humphrey’s. This outdoor concert venue is situated on San Diego Bay between Humphreys Restaurant and Humphreys Half Moon Inn. The concerts generally take place from April to October, but summer is the ideal time to take in a musical experience at this beautiful venue. The sound is fantastic and because it’s a smaller venue, every concert feels intimate. Check the Humphrey’s 2018 concert schedule and buy tickets here.

Summer Nights at the San Diego Zoo

During the summer, the San Diego Zoo stays open late into the evening. From now through September 3^rd, you can enjoy special after-dark experiences and entertainment that you won’t get during the day. And you’ll also get to see animals that are only active at dusk or after dark. This year’s theme is Africa. Learn more about the Nighttime Zoo here.

Hyatt Rooftop Cinema Club

Want to enjoy a movie in style? The Manchester Grand Hyatt’s Rooftop Cinema Club is a film experience like no other! Take in an iconic movie from your comfy deck chair and don’t worry about the noise from downtown San Diego – all guests are given wireless headphone to use during the film screening. If your attention wanders during the movie, you can take in spectacular views of America’s Finest City and San Diego Bay. Click here to see the full schedule of movies.

Summer Pops

During the summer, the San Diego symphony takes their concert experience outdoors! Enjoy great music while taking in views of San Diego Bay and the downtown skyline. The Start Spangled Pops is the series kickoff event and it concludes with a fireworks display. Or if you prefer classical music, check out Beethoven by the Bay on July 29^th. Most concerts begin at 7:30pm. Click here to see the full schedule of upcoming concerts.

Carmel Valley Rec Center Movies in the Park

Each year, the Carmel Valley Recreation Center offers movies in the park with fun for the whole family. The games, food, and fun start each night at 6pm. On July 21^st, you can enjoy the animated feature film, Coco. On August 19^th, the rec center will be screening Guardians of the Galaxy Vol. 2. Movies start promptly at dusk each night. For more information about the movie nights, contact the rec center.

Sleepovers at the Zoo and Wild Animal Park

While you can spend the night at the San Diego Zoo or Wild Animal Park at other times of the year, there’s no better time to plan a family sleepover than during the summer. You’ll get to learn about the animals, go behind the scenes, talk to the zookeepers, fall asleep to the sound of wild animals, and more. You’ll need to make a reservation for both the Zoo and the Safari Park sleepovers so visit their websites for more information on how to book your overnight.

Cinema Under the Stars Hillcrest

Love classic films? Then you have to check out Cinema Under the Stars in Hillcrest! Films are screened beneath a retractable dome and if the night is a little chilly – they have infrared heating to keep you warm. The next film they are showing is Raiders of the Lost Ark, which will be shown on June 28^th, 29^th, and 30^th and again on July 1^st. All film screenings begin at 8pm. Click here to see the rest of the summer’s schedule.

Del Mar Powerhouse Park Summer Concerts

For one of the most unforgettable concert experiences in San Diego, mark your calendars for one of the upcoming Summer Twilight Concerts at Powerhouse Park. Bring your chairs, blankets, and beach towels and get ready to sing and dance the night away. There are concerts planned for July 10^th, August 7^th, and August 21^st. Opening acts start at 6pm, with the headliners scheduled to come on at 7pm. Learn more here.

What are your favorite things to do during the summer in San Diego? Leave me a comment below!

55 and Over Communities: They’re Not What You Think

June 18, 2018 by Danielle Negroni Leave a Comment

Where did your mind go when you read the words “55 and Over Community”? Did you suddenly have visions of golf courses and bingo nights and shuffleboard and….your grandparents?

If you’re age 55 or older, you might not consider yourself retirement ready. Perhaps, however, you are ready to live among your peers and away from the typical neighborhood chaos of young families.

Today’s 55+ communities aren’t what you think they are. Many luxury active adult projects have sprung up in recent years in San Diego, offering homeowners resort-style amenities and more.

Here are 8 reasons to consider moving to a 55 and over community in San Diego:

Lower Costs

Homes and condos in a 55 and over community are usually smaller and priced less than similar homes in the area. This may give you the opportunity to buy in a more upscale area than you were able to previously afford.

Less Maintenance

Even if you purchase a detached home, many active adult communities will take care of some or all of your home’s exterior maintenance needs. With less square footage to take care of inside, you’ll be able to spend more time enjoying your home and new community.

Floorplans Designed For Your Stage in Life

Many 55 and over communities offer single story floorplans or contain the essentials like the kitchen and master suite to the main floor. You may also find homes with wider doorways and other features that are geared towards helping you age gracefully.

Security

Gates, restricted access, and security patrols are common features of active adult communities. If you live alone, you may enjoy moving to a community with these services.

Peace and Quiet

The minimum age limit of the community means that children and younger adults will only be guests of the community and as guests, will need to abide by the community rules. This might be a welcome change if you’ve previously lived in a community with a lot of children and teenagers. Think garage band.

Location

Most 55+ communities and certainly some of the newer projects are close to shopping, dining, entertainment, medical facilities, and more. Some active adult communities provide transportation to these nearby resources.

Amenities

The amenities available in 55+ communities vary wildly from project to project, but many of the newer luxury communities offer very attractive amenities. Sparkling pools, state-of-the-art gym facilities, clubhouses, BBQ pits, pickle ball, bocce ball courts, golf courses, and more. There may also be additional services offered that are geared towards an aging community like health services, housekeeping, meal preparation, and more.

Be aware that buying into an active adult community usually means you will need to pay more fees, either in the form of increased HOA dues or just general fees to cover the cost of all the amenities and community maintenance.

Opportunities for Socialization

One of the prime reasons people choose to move to a 55+ community is because of the opportunities to socialize and develop friendships with your neighbors. Along with the great amenities, many communities offer monthly or weekly events to get you out of the house and interacting with other people. Everything from fitness classes to yes, bingo games, help retirement-age people fill their time. Homeowners will tell you it’s the social activities they love.

When shopping for a home in an active adult community, be sure to check out their events calendar to see what kinds of activities and social outings they plan. It will be one indication if the neighborhood may be a personal fit.

If you are thinking of downsizing from your current home, I would love to talk to you about your next step, whether that’s buying in a 55 and over community or somewhere else. Give me a call at (858) 735-5767!

8 Things to Do When Buying a New Construction Home

June 8, 2018 by Danielle Negroni Leave a Comment

New construction homes have a certain appeal that existing homes don’t. They’ve never been lived in so you won’t have to wonder about the home’s history. You’ll have the opportunity to customize your home from the ground up, rather than trying to modify what’s already there. And you won’t have to deal with an emotional seller.

But if you’ve decided to purchase a brand new home in San Diego, there are a few things you shouldn’t forget to do:

Hire Your Own Agent

Many buyers of new construction don’t think to hire their own real estate agent – but they really should. The sales agent is being paid to represent the builder’s interests, not yours. Plus, since you’re buying the home (not selling) the builder will most likely pay your agent’s commission. So it’s really a no-brainer to hire your own agent to represent you and negotiate on your behalf!

Ask About Extras

Don’t assume that what you see in the model home comes standard. Ask about what’s included and not included in the advertised purchase price. If you want to pay for additional upgrades, prioritize those things you can’t easily change about the home, like square footage and lot location. You can always install different flooring or repaint later and it may be cheaper to hire your own contractor to do the work anyway. Builders often mark up the prices on upgrades. You can ask your agent to give you a ballpark estimate of what a particular update might cost. Or they can refer you to a trusted vendor who can give you an estimate.

Research the Community

Depending on where the builder is in construction, you may not have a clear picture of what the community will be like when it’s finished. Make sure to ask how many total homes will be built and what community amenities will be offered. You should also find out about plans for the land outside the community. If there’s empty space now, what will be there in the future? Find out if any new schools will be built and if there are plans to modify the existing roadways to accommodate the increase in traffic.

Negotiate

While most builders do not want to compromise on price, they may be willing to throw in some extras or make concessions in other ways. It never hurts to ask. Your agent will be instrumental during this negotiation phase.

Ask About Warranties

Don’t forget to ask about warranties for the things that will be installed in the home. You can’t assume because something is new that you won’t have a problem with it. Make sure you understand what’s covered and what’s not and if there’s any special process you need to follow to get repairs done in the future.

Get Everything in Writing

Just as you would if you were purchasing an existing home, get everything you’ve negotiated and agreed upon in writing. Since the home may not be built yet, it’s important that the contract explicitly spells out how the home will be completed and what will happen if the home is not finished on time.

If you don’t understand what you’re signing, this is another area where it pays to have your own agent. Your agent will be able to help explain the contract to you and if there’s anything that stands out as a red flag, they should be able identify it for you.

Shop Lenders

Builders often prefer to use their own lender, but that lender may not be the best choice for you. You should find out if there’s any incentive to use the builder’s lender and meet with them, but you should also talk to one or two other lenders to help you make a decision. Though there may be an incentive now to use the builder’s lender, if you can get a better rate elsewhere that might make better financial sense for your family in the long run.

Get a Home Inspection

Getting an independent inspection of your new home before closing is always a good idea. After all, you want to know what you’re buying and ensure that the work was done properly and up to code. Workers can make mistakes so it never hurts to hire a professional to double-check. You will want to make the time to be there for the inspection so you can hear what the home inspector has to say first-hand.

If you’re thinking of buying a brand new home in San Diego, I would love to tell you about the great new communities that are being built and take you to tour the model homes. And if you find one you like, I’d be happy to represent you on your purchase. Give me a call at (858) 735-5767!

6 Common Home Buying Questions – Answered!

May 15, 2018 by Danielle Negroni Leave a Comment

Even if you’re not a first-time home buyer, it’s okay to admit that you still have questions about the process of buying a home. No transaction is ever the same and the mechanics can change drastically between transactions, especially if it’s been a few years since you purchased a home in San Diego. Below, I’ve answered six common questions I often receive from home buyers:

1) How Much Home Can I Afford?

Affordability is the question on everyone’s mind as home prices in San Diego continue to rise. It’s easy to feel discouraged and wonder if you can afford to buy anything. The truth is, you may not be able to afford the house you want. Yet. Or, you may be pleasantly surprised! The best way to determine how much you can afford is to meet with a lender to get you pre-qualified. You’ll still need to get pre-approved for a loan before you can buy, but getting pre-qualified will give you an idea of what you can afford for a monthly mortgage payment. Of course, you also need to consider the cost of HOA dues, Mello-Roos fees, and contributions to your emergency fund. Once you have these numbers in mind, you can compare them to home prices in the neighborhoods you’re considering.

But, if you realize you can’t buy the home you want in your dream neighborhood, don’t give up! Give me a call, I’d be happy to give you some other options to consider that might realistically fit your budget.

2) What Should I Offer For a Home?

Before you write an offer on a home, there are many things you should consider. What is the seller’s motivation for selling? How long has the home been on the market? What do the comps show? Is the home listed as-is?

I will help you evaluate each home you want to write on and help you craft a strong offer. But be prepared that as San Diego is in a seller’s market, you’re likely going to need to offer near full price or perhaps a little more to secure your home, especially if it’s turnkey and in a desirable area.

3) How (and When) Do I Set Up Home Inspections?

Once we have your home in escrow, I will help you schedule all necessary inspections and make sure we get the appointments set before we need to remove contingencies. The inspections are your chance to investigate what you’re buying so it is important that you be there for as many as you can so you can meet the inspectors and see what they see.

4) How Quickly Can I Close Escrow?

Most escrows can be closed in 30-45 days. If you’re paying all cash for your property or waiving contingencies, you may be able to close in less. However, you or the seller may need a longer escrow for a variety of reasons. We will negotiate the length of the escrow during the offer process and will find a timeframe that works for both you and the seller.

5) If I Want to Do the Repairs on My New Home Myself, Can I Ask For Concessions?

Yes, you can, though the seller may not be inclined to give them to you. A lot depends on their financial situation and the terms of your loan. The seller may be selling their home as-is because they truly cannot afford to pay for the repairs that are needed to fetch a higher price for the property. Certain repairs may also need to be completed prior to closing escrow in order to fund your loan. The lender will be able to advise on specifics, but most loans require the home to be habitable in order to fund.

6) How Much Should I Budget For Closing Costs?

Your actual closing costs will vary, but plan to budget 2% of the actual purchase price. So if the home you’re purchasing is $500,000 expect to pay around $10,000 and in closing costs. The escrow company will provide you with an estimate once you get into escrow, but in addition to your down payment, make sure you put aside money to pay closing costs – most buyers and sellers each pay their own closing costs so don’t expect the seller to cover this for you!

If you still have questions about the home buying process, please don’t hesitate to reach out. I don’t believe in stupid questions – I’m here to help you in any way that I can!

5 Things to Consider Before You Downsize

April 1, 2018 by Danielle Negroni

No matter how much you love your home, there will come a time when your house simply won’t fit your needs anymore. Perhaps your home feels too roomy now that your kids have gone off to college. Or maybe you’re just tired of lugging the vacuum cleaner up the stairs and are ready to purchase a smaller, single story home. Whatever your reasons, here are 5 things to consider before you downsize.

1) Know Your “Why”

It pays to keep your “why” firmly in the front of your mind. For most people, downsizing is not an easy task. You’ll likely need to spend a considerable amount of time decluttering and going through all the things you’ve accumulated after years in your current home. Having a strong reason to get to the finish line will keep you motivated when you’d rather throw in the towel.

2) Separate Yours Wants and Needs

As with any other home shopping experience, you’ll need to separate your needs from your wants before you start looking. This will allow you use your time more efficiently and help you avoid buyer’s remorse down the line. For tips on separating your wants from your needs, check out my recent blog.

3) Know How Small is Too Small

It’s important that you don’t get too hung up on purchasing the smallest possible home. Take time to think about the spaces you most enjoy in your current home, your hobbies, and how much time you plan to spend in your new house. You may find that “downsizing” really means downsizing on your monthly costs, not square footage.

4) Consider Your Costs

It seems simple on paper: smaller house = cheaper mortgage = more money in your pocket. But that’s not always the case. Particularly if you’re moving to a condo community, make sure you’ve factored in HOA and mello-roos fees. If your primary reason for downsizing is to save money, you’ll want to keep track of these “hidden” fees to ensure your monthly housing costs will truly be reduced.

You should also take into account how much it will cost to move and furnish a new space. Many times, people who downsize find themselves having to purchase all new furniture that will actually fit into their new space. A visit to a local furniture store can help you estimate your costs.

5) Explore Neighborhoods

San Diego truly has a neighborhood to fit every lifestyle. Just because you’ve spent the last twenty years in the same location doesn’t mean you have to buy another property in the same area. Imagining the possibilities is part of the fun of house hunting. Spend some time checking out communities before narrowing your list down to a couple to focus on during your search.

While it can be difficult to say goodbye to a beloved home full of wonderful memories, downsizing can be a fun and exciting adventure! If you’re thinking of making a change, I’d love to help you through this next step – give me a call to get started!

3 Reasons to Sell Your Home in 2018

March 20, 2018 by Danielle Negroni

“It’s a seller’s market!”

“Now is a great time to sell!”

As a San Diego homeowner, you’ve probably seen this phrase on one piece of real estate marketing mail after another for the last few years. It can be hard to discern if it actually is a great time to list your home or the Realtors who mail in your neighborhood are just saying that to get you to call them.

While it is a seller’s market and a great time to sell, it helps to have context for those statements:

In my last blog post, I took a look at the median sales price of homes in a few different San Diego housing markets. Many local markets are reporting prices we haven’t seen in ten years or more. In some areas, the median price for a detached home has far surpassed its 2006 pre-recession peak. But home values can’t continue to rise indefinitely. I believe we will see a decline in home values in the months to come as interest rates rise and the housing market peaks.

Interest rates have steadily risen nearly every week since the beginning of the year. Bankrate.com shows current interest rates for a 30-year fixed rate mortgage hovering around 4.5%.

As interest rates rise, they limit buyer purchasing power. According to a recent article from Rismedia, “If interest rates rise 1 percent and all other economic factors remain the same, purchasing power for homebuyers will decrease by just over 11 percent; therefore, every quarter-percent (0.25 percent) rise of interest rates reduces homebuyer purchasing power by 3 percent.” This means that someone who might have been able to purchase your home a few months ago might no longer have the buying power to do so, shrinking the pool of potential buyers for your home. The higher the value of your home, the more you will likely feel the effects of that shrinkage. Rising interest rates will help bring down prices at the top end of the market, as homeowners who are serious about selling might find themselves making concessions on price to get their home sold.

Once your home sells, you will likely need to purchase a replacement property. If you wait too long to sell your home, you might find yourself conceding on your sale price AND entering the market with less purchasing power that you would have had just a few months ago.

Finally, if your home is aging, you should keep in mind that you likely have some big-ticket repairs on the horizon. Depending on its composition, your home’s roof will need to be replaced every twenty to thirty-five years. The lifespan of a furnace is about fifteen to twenty years. Most appliances last no more than fifteen years. Waiting to put your home on the market means you could end up footing the bill for these repairs in order to sell the house, taking a hit on price to get your home sold, and then entering the marketplace with a lighter wallet and reduced purchasing power.

There’s one other point you should also keep in mind: the new tax law lowered the mortgage interest deduction from $1.1m to $750,000. In 2018 and going forward, your state, local, and real estate taxes are put into one pool for deductibility purposes. Between the three of them, you only can deduct up to $10,000 total. It’s hard to predict how these tax changes will impact the real estate market, but they do cumulatively place a heavier financial burden on the buyer.

If you’ve been on the fence about selling, it might be time to get off the fence and put a “For Sale” sign in your yard. I’d be happy to meet with you to discuss the specifics of your situation. Give me a call or send me an email to set up an appointment!