When the COVID-19 pandemic first hit, there were a lot of concerns about how it would impact the housing market—including whether it would spark a decrease in home values.
But, as it turns out, the opposite is true—and sellers are netting significantly more profit when they sell their home than anticipated.
According to a recent report from ATTOM Data Solutions, during Q2 of 2020, home sellers netted a median $75,491 when they sold their home—up from $65,620 from Q2 2019. Q2’s profit represents a 36.3 percent return on investment compared to original purchase price—the highest ROI for sellers since the Great Recession.
On the local front in Mammoth Lakes, we are seeing “ready to go” properties are selling quickly. People want to be here now without having to do any work. This is true across all price ranges – entry level to over $1M. Many clients are telling me they can now work remotely and since the kids won’t be going back to a traditional classroom, why not be here in gorgeous Mammoth instead of the big city? Although the majority of the interest has been in Mammoth Lakes, this is starting to trickle over to the outlying areas as well.
All this translates to a hot market for sellers with properties that are in good condition. The nicer the property the more interest and offers.
So, what does this mean for you? If you’re thinking about selling, now is a great time to make a move, fetch top dollar for your home, and walk away from the sale with a healthy profit.
Mammoth Lakes Real Estate Market Update – November 2018
Mammoth Lakes Real Estate Market Update – October 2018
Mammoth Lakes Real Estate Market Update – September 1, 2018
According to real estate mogul Barbara Corcoran (you might know her from Shark Tank) if you are in the position to consider making a down payment on another property, now’s the time to do it. According to Corcoran, “It’s the smartest thing you can do right now,” adding that the second-home market is “the last area you can still get a steal of a deal.” But if you’re thinking of taking the plunge, Corcoran advises you act fast. “In the second home market, the homes are abundant but starting to shrink up.” As for Mammoth Lakes specifically, inventory levels are extremely low for both condos and single family homes.
If you decide to make a second home purchase, be sure and avoid some of the biggest mistakes made by second home buyers.
Buying Where Your Friends Live: Too often, Corcoran says, people fantasize about vacationing with or near friends and end up making a purchase that isn’t right for them.
Not Having a Budget: Set a budget and stick with it. “Look over your budget,” Corcoran says. She also adds that it’s a smart move to make a low bid on a property that is out of your price range, especially if it has been languishing on the market for months. “People who have the nicest homes always overprice, and it just sits on the market,” she adds.
Focusing on the Wrong Amenities: Don’t buy into a community because of its amenities. If you’re not a tennis player now, you won’t become one because your new development has a court. “Most people generally won’t use the extra stuff and they get blinded by all of that,” Cochran explains.
For previous articles, visit www.sonjabush.com
For more information on Ms. Corcoran, visit www.BarbaraCorcoran.com
There are distressed sales in almost every market. Before we look at Mammoth Lakes specifically, it is important to understand the definition of distressed sale.
A distressed sale in real estate is defined as the urgent need to sell property when the owner can no longer make the mortgage payments. He/she must sell the property immediately to pay off the mortgage, even if it involves losing money on the property. There are two primary types of distressed sales:
Foreclosure: A situation in which a mortgage lender takes possession of the property because the borrower has not made payments on interest or principal for a certain period of time.
Short Sale: An agreement between a mortgage borrower in distress and the lender that allows the borrower to sell the house and remit the proceeds to the lender. A short sale is an alternative to foreclosure or a deed in lieu of foreclosure.
Foreclosure-related sales are on the decline but distressed sales continue to claim a “disproportionately high portion” of total home sales across the country, according to RealtyTrac’s most recent foreclosure and short sales report. The firm also found increases in prices for distressed properties in 2012.
Distressed property sales made up 43 percent of all home sales nationwide in 2012, according to RealtyTrac. Foreclosure-related sales made up 21 percent of all sales, while non-foreclosure short sales made up 22 percent of sales. Together, foreclosure and REO sales decreased 6 percent from 2011 with a total of 947,995 sales over the year in 2012.
Here in Mammoth Lakes, in 2012 distressed property sales made up 41 percent of all home sales. Foreclosure sales made up 15 percent of all sales and short sales were 26 percent.
A qualified licensed real estate agent can provide information on available distressed sales. Often the lender has special requirements for buyers and although there are some “good deals,” patience is a virtue when dealing with distressed sales.
For previous articles, visit www.sonjabush.com
We all know houses are not selling like they used to. If you are considering selling your home, there are several tips that will make it easier to sell. First impressions make a huge difference between a sale or no sale. These tips apply to any economy or market.
- Less is More: Even if you have not moved out, removing some furniture can help the home feel more spacious. This also provides a potential buyer with a better visual of how the property could look as their home.
- Odor Control: Sometimes homes have an odor you may not even notice since you there every day. Ask a friend (or your agent) to be honest about any odor. While the house is on the market, take the trash out every day and clean the refrigerator regularly. If you have pets, keep an eye on the situation (i.e. litter box). I have been in some gorgeous homes but a strong offensive odor has turned buyers away.
- The Little Things: There are small and often inexpensive changes you can complete yourself to freshen up your home. For example, replace dated/cracked light switch covers , install new hardware on cabinets, remove broken window treatment (no window covering is often better than broken blinds). Although potential buyers know the house is lived it, it is helpful to remove excess clutter such as newspapers, mail, laundry and shoes.
- A Neutral Appeal: If you have customized every room with dark paint or wall paper, you may want to update the colors to a more neutral tone. This can help potential buyers create their own vision for the home and also when they are comparing their options, your home may need less investment and work if they buy the house.
- Curb Appeal: This one is pretty obvious to most but again look at the exterior of your home from the potential buyers’ perspective. Is the home welcoming? Is there a clear path to the front door? Is the front porch clean and appealing?
Keep these tips in mind when selling your property. The best way to do this is to walk through your home with an honest friend as if you are both touring the home for the first time. An experience real estate agent can also help.
For previous articles, visit www.sonjabush.com
Fractional ownership offers individuals the opportunity to buy partial ownership of generally high-end properties in resort areas (golf course, ski area or beach communities). Usually the fractional ownerships are divided into fourths, sixths or eighths, with each owner having an equal number of days a year to use the unit.
At first glance it looks and sounds like a time share. The main distinction between timeshare and fractional ownership is with a timeshare you buy the right to use a certain period of time (not usually flexible), but with fractional ownership you are buying real estate with more usage available and increased flexibility on scheduling. You get a deeded piece of luxury real estate which you can sell, transfer or trade like regular real estate. That being said, the cost of fractional ownership is higher than that of typical timeshare, though still much less expensive than whole ownership of a luxury home in the same location.
Depending on the property, most fractional developments provide the amenities of a first-class hotel such as concierge, housekeeping, ground transportation and grocery shopping services. Fractional properties may be hotel suites, cabins, town houses or detached homes. By only paying for a fraction of a luxury property, fractional ownership can be a much more cost-effective way to stay in desirable properties and locations.
In Mammoth Lakes there are two luxury fractional opportunities. 80|50 offers fractional ownership in one, two or three bedroom elegant condos with Gondola access, while Tallus offers fractional ownership in 5000 sq foot luxury homes located on Sierra Star Golf Course.
Fractional ownership is not right for everyone. The family that wants to come to Mammoth every other weekend or an entire month in the summer should consider full ownership properties. However, the family looking for 4-8 weeks per year in a high-end property offering both onsite and offsite amenities should consider fractional. A qualified real estate can help you determine if fractional ownership is right for you.
For previous articles visit: www.sonjabush.com