How we know our real estate market is shifting and not about to crash.

Are we headed toward a market crash? People ask me that constantly. Our market is not heading for a crash, but what makes today's market different from the one we had back in 2008 (the last time it crashed)?

In 2008, people were upside down with their loans. They couldn’t afford their homes, and many had creative financing that limited their options. Tons of people stopped making payments altogether, and they lost their homes. That influx of inventory is what created the housing bubble. There weren’t enough buyers to tackle the massive supply.

What about today’s market? We’re seeing a correction, and the reason I say that is because our inventory is still low. We just came out of an abnormal market with no inventory and record-low rates, which stirred up a huge frenzy. The natural thought is that we’re headed in the opposite direction, but that’s not the case. The market is stabilizing, not crashing.

"The market is stabilizing, not crashing."

Interest rates are higher than last year, but they’re still low from a historical perspective. Inventory also remains low. We simply no longer have an abnormal market where there aren’t enough homes to go around. However, markets all across the country are currently shifting, and each one is finding its place.

Don’t buy into the market crash hoopla. Some areas will do better than others, but that’s why it’s important to hire a professional real estate agent. They can show you these differences and help you make smart real estate choices.

If you have any questions about our market or real estate in general, feel free to call or email me. I’d love to help.

Here’s how I helped a client buy and sell simultaneously with marketing.

How can you sell a home without being homeless while looking for a new one? Today I want to share an example of how I helped a client sell and buy at the same time. 

"Out of 44 showings, we brought in 18 buyers for negotiations."

This client had already purchased their next property, but it was new construction and wouldn’t be completed for five months. What could they do in the meantime? 

I sat down with them and gave them three pricing options. They chose to price their home right at market value. From there, my team would use our marketing to create a buying frenzy. We highlighted not just the property but the lifestyle it provided. This way, my clients could dictate terms to their buyers. 

We pre-screened every buyer, so we knew each one was well-qualified. It was a very methodical process, which is the opposite of how people usually think of the selling process. Out of 44 showings, we brought in 18 buyers for negotiations. 

Because the marketing on their sale was so strong, my sellers could get the best terms possible. They negotiated with their buyer to stay in the home while they waited for their new house to finish being built. At the end of the day, it worked out for everyone, and it was all because of our strong marketing campaign. 

If you want to know what your options are or have any questions, please call at (714) 335-0844 or email fdelrio@live.com. I look forward to hearing from you!

Here’s another excellent client success story for the books!

One of our home-selling clients had listed their home on the market last year, right at the beginning of the coronavirus pandemic. If you’ll recall, between March and June, the market was slow; if anything, we were experiencing a downturn in prices and showings. My sellers had to make a decision: Should they drop the price to sell the home, or should they weather the storm and come back to the market when things change?

Fortunately, my clients decided to take the home off the market for a while. During that time, we revamped the property and eventually put it back on the market this year. The current market is completely different from the one that existed when they first tried to sell. They could have put the home and the market and gotten slightly above fair market value, but instead, I suggested that we do something different and leverage the frenzy of the market.

"We got 40 offers on the home and ended up selling it for $147,000 over their asking price!"

The sellers allowed me to showcase the property in a unique way; we created some amazing videos that captured the story and essence of the home in a way that no one else could. Over three days, we had over 150 people come through for showings in five-minute increments. We made sure that every buyer who came through the property for a showing was financially qualified and excited about the property. We got 40 offers on the home and ended up selling it for $147,000 over their asking price!

I would love the opportunity to show you our marketing strategy and see if it’s a good fit for your situation. If you have any questions, give me a call or send me an email. Hope to hear from you soon!

Should you ask your Realtor for a discount or pay full commission?

Across the nation, the average Realtor only sells three homes per year. Here in California, the average Realtor sells only 1.5 homes. That shows you the average Realtor isn’t doing all that much to get your home sold. For example, they may take a few photos on their iPhone instead of hiring a professional photographer. Then they’ll put the listing on the MLS and wait for someone to submit an offer.

Because the market is so hot right now and homes are selling quickly for record prices, you might think that anyone could do that. So why shouldn’t you get discounted services?

"In real estate, you get what you pay for."

It’s important to understand that the average home only sells for between 3.5% and 4% over asking price. On the other hand, our team sells homes for an average of 10% to 15% over asking price. I’ve even had a few sell for 20% over! We also sell between 50 and 60 homes a year, so we’re well above the average.

That’s why, when you’re looking to hire a Realtor for your home sale, you should meet with more than one and ask them to show you their track records. A strong professional will be able to show you client testimonials that prove they’ll bring you value.

You get what you pay for in real estate. I once helped a client who had been told by other Realtors that their home would sell for $1.1 million. Those agents were offering discounts on commissions, but ultimately, the sellers were referred to our team. Instead of offering the sellers discounts, we talked about the highest possible price that we could get for them. When we listed the property, we ended up selling it for $1.375 million—$150,000 over asking price!

These are the benefits that you pay us for. We negotiate aggressively on behalf of our clients and bring them results they didn’t even think were possible. If your Realtor can’t show you these kinds of results, maybe you should ask them for a discount. However, you can get high prices by working with above-average professionals, and the buyers ultimately end up paying for the commission anyway!

If you’re looking to sell this year and want to see what kind of value I could potentially get for your home, don’t hesitate to give me a call or send me an email. I’d love the opportunity to meet with you for a conversation.

A quick market update and a few ways to find out what your home is worth.

Many of you have reached out and asked, “What’s my home worth?” So I figured I’d give you a quick update on our market to help answer that question.

The short of it is that home prices are up everywhere. Until inventory increases, home prices will continue to rise steadily. Plenty of people have taken advantage of this by refinancing. However, that might not be an option for long.

We’ve already experienced true interest rate hikes this year; they climbed from 2% to 4%. Historically, 4% is still a fantastic rate, but we expect more increases. The Federal Reserve said they want to do two or three more rate hikes this year, so our interest rates might hit 5% by the end of 2022. 

If you want to know what your home is worth, I have a free tool that can tell you! You can find it on my website or follow this link. I pay money for this tool, but it is free for you. I know that there are a lot of other online estimates you could use, but keep in mind that they’ll give you a much broader view. The estimates we use are based on neighborhood sales, while those free tools use the whole city.

"Until the inventory increases, home prices will continue to rise steadily."

If you want a more detailed price, send me pictures of the most recent upgrades or remodeling you’ve done so that I can factor in what the algorithms can’t. If you’ve knocked down a wall, remodeled the bathrooms, or maybe even put in a pool, that could increase your home’s value.

If you’re thinking about selling in 2022, I’m here for you. I’m still selling houses at record-breaking prices, and I’d love to do the same for you. If you have any questions, feel free to call or email me. I hope to hear from you soon.

Here’s our 2021 market recap and what you should know for 2022.

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Today I’m sharing our 2021 year-end review and predictions for the 2022 real estate market. Will things continue to increase the way they have been, come crashing down, or level off nicely? I’ll also be providing some valuable information about how to navigate our market this year. The market itself was crazy in 2021; it was one of the most frenzied markets we’ve ever seen.

Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video:

0:00 — Introduction to today’s topic

0:55 — The 2021 market in a nutshell

2:15 — The difficulty I personally went through last year

3:00 — We’re still in a strong seller’s market

3:55 — Be on the lookout for information that it’s fully factual, not misleading

4:55 — Make sure the real estate agent you work with is a true professional

5:50 — The five questions to ask when interviewing agents

7:00 — Our 2022 market predictions

7:15 — Wrapping up

I would love the opportunity to sit down, meet with you, and go over your real estate goals. Call or text me if you’d like to have a conversation or have any questions. I’m here for you.

Here’s a story that shows just how important it is to hire the right agent.

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In the real estate business, the people you work with are the keys to your success. We’re here at another closing for an amazing client who hired us to list and sell their property after not being happy with the initial offer that another agent had received for them. We sold it for a record-breaking price. Here’s the story:

The homeowner’s first agent was telling them that the offer they had was the best they would ever get. This was a trap, and unfortunately, there are a lot of people out there who would fall for that kind of conversation. We’re living in the greatest real estate economy of all time for home sellers. We have low inventory, low rates, and extremely high demand.

The reason I’m bringing this up is that these clients could have easily taken the $1.9 million offer that the previous Realtor got them. They didn’t, and it made all the difference. We took over the listing and ended up selling it for $2.25 million. We got this homeowner $350,000 more that they would have just left on the table if they accepted the first offer. Not only did we get them an incredible price, but we also negotiated a four-month rent-back agreement to give them more time to find their next home.

My point is this: There are countless stories of homeowners who decide to sell at prices that are too low because they got a discount in commission from their agent. Unbeknownst to them, they end up leaving hundreds of thousands of dollars on the table trying to save $10,000 on commission.

Be mindful of this if you’re a homeowner who is thinking about listing. Speak with multiple Realtors, interview them, and see what they’re doing differently. Don’t just hire a friend or family member because you feel obligated. You could be costing yourself thousands in hard-earned equity.

I have 23 years of professional real estate experience, and my team is always innovating and looking for new and better ways of marketing properties to receive that higher price. If you have questions about selling, buying, or anything else related to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

Here’s an overview of the past 15 months and what’s in store next.

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It’s been almost 15 months since I last checked in with you all. For that, I’m very sorry. Between the pandemic, the shutdowns, and my accident, I’ve been held back a bit. However, now I’m back in full force and ready to share my knowledge.

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:

0:15 — Getting back to making videos

0:43 — What’s been happening with the business

2:42 — What to expect going forward

3:50 — The influence of social media

5:04 — My accident

6:07 — Wrapping up

When that time comes for you or someone you know to make a move, I would love the opportunity to help you. Follow us on social media and YouTube, and if you have any questions, don’t hesitate to call or text me at 714-335-0844. I look forward to hearing from you.

Here are the top five reasons people are moving this season.

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Today’s sellers are moving for a variety of reasons, and the health crisis has truly reshaped our lifestyles and needs. Spending extra time where we currently live is allowing people to reevaluate what homeownership means. Here are what I believe to be the top reasons people are reconsidering where they live and making moves this season (in no order of importance):

1. Working from home. Remote work is the new norm, and this trend has continued a lot longer than what was expected. Many in the workforce have discovered that they don’t need to live so close to their offices. They’re also discovering that they can get more for their money by moving farther away from cities—some have even left their states completely. If you’ve tried converting a guest room or dining room into a home office with minimal success, it might be time to find a house that’s more suitable for you. The reality is that your current house may not be optimally designed for your lifestyle, thus making remote work very challenging.

2. Virtual and hybrid schooling. A lot of school districts are adopting this model and converting their curriculums into a digital format. If you have school-age children, they may need a dedicated learning space. If so, it may be time to find a larger house to provide your children with a quiet room that allows them to focus on their schoolwork just like you probably need for your home office.

3. Home gyms. Staying active and healthy is a top priority for so many people. With various levels of concern regarding the safety of returning to fitness facilities, dreams of a space for a home gym have grown stronger than ever. Keep in mind, a significant decrease in physical activity is more than just a vanity issue—it’s also a mental health issue. Having room to maintain a healthy lifestyle at home, both mentally and physically, may prompt you to consider finding a new place to live that includes space for home workouts.

4. Outdoor space. In helping 76 families move last year, I’ve found that many homeowners have the desire for more usable exterior features. For example, some think having a yard encourages them to be more active. Some want a large backyard to spend more time with their family. Others want space for outdoor entertainment. I’ve even heard of people who want more outdoor space to grow gardens and create more of a daily farm-to-table experience.

5. Moving out of state. For the last five years, California has been among the top states people are moving out of, and last year saw more migration than ever. High taxes, a high cost of living, and even politics are prompting people to move away from California. Because I network with hundreds of top agents throughout the country, I’ve been able to connect the dots for a plethora of home seller clients in many states, and I can do the same for you. Call, text, or email me, and I’d be happy to connect you to a professional in any part of the country.

So, are you living in your dream home? Are you living in a home that accommodates all your needs? If you’re clamoring for more room to accommodate your changing needs, moving may be your best option. You can take advantage of today’s high sales prices and low mortgage rates. It’s a great time to get more home for your money, just when you need it most.

If you need help deciding whether now’s the time for you to upgrade to a new home or have any other real estate needs, don’t hesitate to reach out to me. I’d love to discuss your options and take it from there.

Here’s why the real estate agent you choose to work with matters so much.

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Today I’m standing in front of one of our listings that just went under contract. We had over 130 people walk through the home, but something interesting happened while I was conducting these showings. More than half of the buyers who showed up had no idea who their real estate agent was, and some agents also didn’t know who their clients were. Almost every Realtor we saw also didn’t know anything about the property; they came looking for me to give them information to take back to their clients.

Who you work with to buy or sell a house matters enormously. There are some excellent agents in our area, and I was fortunate enough to see some of them show up to see this listing; we talked, they knew what they were doing, and they knew what to expect. It’s currently a very chaotic time in our real estate market, but things are in a frenzy because a slew of Realtors don’t know what they’re doing. As a consumer, you think that agents are pros and should be able to help you, but just because they’re licensed doesn’t mean they know what’s needed to assist you in this market.

As a buyer, ensure your Realtor knows the market and the home you’re going to see. More importantly, they should know about you and your goals because that’s the cement that will help your deal come together smoothly. Many buyers are making offer after offer and nothing’s working out, and often it’s because of who they’re working with. We professionals know the market we’re in, how to prepare, and set the right expectations for our clients to be successful.

If you’re a seller, make sure you’re working with a professional who understands the market dynamics. Ensure they aren’t simply telling you what you want to hear or what you already know from researching by yourself. If your Realtor gives you the same exact value of your home that you saw online, they just looked online the same way you did—they didn’t put any work into it. They need to base that on today’s market trends and your property’s features and amenities. If they aren’t speaking in those terms, there’s a good chance they don’t have much experience, and they’ll be practicing on your home, which could cost you tens of thousands of dollars.

I have 22+ years of experience and have sold close to 1,000 houses, so I have the experience to help my clients in this insane market. Ensure you’re working with a pro, not a random agent from Zillow or Redfin or some other free website. Do yourself a favor and talk to a professional when the time comes to buy or sell.

If you have questions or ever need anything real estate-related, you can call or text me. I would love to help you.