KimberlyJacobi, Author at The Jacobi Team, Century 21 Select Real Estate, Inc.

A Journey of Resilience and Transformation: Selling a Home and Starting a New Chapter

Life is full of unexpected twists and turns, challenging us in ways we never thought possible. Often, people find themselves buying or selling their home during these times. We’d like to share the story of one of our clients and how her journey unfolded. Let’s call her “Sharon”. Selling her home represented, for her, not only a physical transition but also a profound emotional transformation. In this blog post, we delve into the inspiring story of a woman who overcame significant hardships, embraced change, and embarked on a new chapter in her life.

Rebuilding After Adversity:

In 2008, Sharon experienced the devastating loss of her home to a fire. The destruction was not only material but deeply personal, leaving scars that took time to heal. She rallied her strength and resilience to rebuild her life from scratch and she purchased her current home—a symbol of hope and renewal.

A Beloved Career Altered:

As a beloved school teacher for over two decades, our client found immense joy and fulfillment in shaping young minds. However, five years ago, tragedy struck again when the school she taught at burned down. Transferred to a different town, she faced the difficult task of adapting to unfamiliar surroundings while mourning the loss of the community she had cherished.

Retiring with Mixed Emotions:

After years of dedicated service as an educator, Sharon decided it’s time to retire. However, this decision came with mixed emotions as she mourned the loss of her once-beloved career that lost its luster due to circumstances outside of her control. Retirement marks both an end and a beginning—a chance to redefine herself outside the confines of her profession.

A Major Life Change:

With retirement on the horizon, Sharon made the brave decision to uproot herself and move across the country to be closer to family. But she saw this as an opportunity for personal growth and rejuvenation—an invitation to embrace new experiences and forge new connections.

The Emotional Toll:

Preparing her home for sale became an emotional journey. Sharon found herself emotionally exhausted and in need of support. The memories embedded in every nook and cranny were bittersweet reminders of the life she had built within those walls. We rallied around her, providing the helping hand she needed to navigate this challenging process.

The Power of Transformation:

Selling a home is not merely a transaction; it is an opportunity for transformation. As our client bid farewell to the home she loved so much, she embraced the prospect of reinvention. She, like many others who sell a beloved home to move away, said “good bye” and detached emotionally from her home, and looked forward to opening her heart to a new and different home across the country. She took solace in knowing that her home will become a haven for another individual or family—a place where new memories will be created and dreams will be nurtured.

Conclusion:

In this extraordinary journey of resilience and transformation, Sharon was a shining example of the enduring human spirit. Overcoming personal loss and professional challenges, she embarks on a new path—one that promises fulfillment, growth, and renewed happiness. Sharon has purchased her new home in her new state and had the floors redone. She is starting her garden and planting new plants. She has even joined a social walking group that meets up to take walks through the beautiful parks in her area. She is happy and growing again as a person.

Whether you are selling your home or embarking on your own transformative journey, remember that you are not alone. You have a Realtor who can provide guidance and support along the way. Embrace change with an open heart and trust in the power of new beginnings. Your own story is waiting to be written—embrace it with courage and determination.

Crafting a Winning Offer: A Guide for Real Estate Buyers

In the competitive world of real estate, writing a winning offer can make all the difference in securing your dream home. It requires careful consideration, strategic planning, and effective communication. In today’s blog, we will explore key tips and strategies to help you craft an irresistible offer that stands out from the competition.

1. Research and Understand the Market:
Before putting pen to paper, it’s crucial to have a real estate agent who does extensive research and understands the current market conditions in your desired area. They should analyze recent sales data, average days on market, and comparable properties to gain insights into pricing trends. Armed with this knowledge, you can determine a fair yet competitive offer price that aligns with both your budget and the property’s value.

2. Get Pre-Approved for Financing:
Sellers value buyers who have their financial affairs in order. Getting pre-approved for a mortgage not only demonstrates your seriousness but also gives you a solid foundation when making an offer. It shows sellers that you are financially qualified to complete the transaction smoothly, giving them peace of mind. And in many markets, using local mortgage lending companies will give the seller more confidence in your offer. You can ask your realtor for recommendations.

3. Personalize Your Offer:
Stand out from other buyers by personalizing your offer. Include a heartfelt letter introducing yourself and explaining why this home is perfect for you. Highlight specific features or qualities that resonated with you during viewings or open houses. This personal touch can create an emotional connection between you and the seller, increasing the chances of acceptance. Because of anti-discrimination laws, it is important not to include photos or talk about your family status, race, ethnicity, sexual orientation, religious beliefs, etc. Keep the letter focused on the home itself.

4. Consider Contingencies Carefully:
Contingencies protect buyers during escrow (escrow starts once the seller accepts a buyer’s offer) by allowing them to back out of a deal if certain conditions are not met within specified timelines. However, too many contingencies can make your offer less appealing to sellers who want a quick and smooth transaction. Consult with your agent to determine which contingencies are necessary based on local customs and market conditions. Common contingencies center around investigation/inspections, the ability to obtain insurance, appraisal and loan approval.

5. Be Flexible:
Flexibility can give your offer an edge. Consider offering a flexible closing date that accommodates the seller’s needs. Offering to cover certain expenses or repairs can also sweeten the deal. By showing your willingness to work with the seller’s preferences, you demonstrate your commitment and increase the likelihood of acceptance.

Conclusion:
Crafting a winning offer requires a combination of market knowledge, financial preparedness, personalization, and flexibility. By implementing these strategies, you can position yourself as an attractive buyer who stands out from the competition. Remember to work closely with your real estate agent throughout the process for guidance and support.

How to know when this market will shift

In many parts of the United States, areas are experiencing a seller’s market: low inventory, high prices, lots of buyers= multiple offers. This kind of market is THE best time for a seller to sell. Why? Because home sellers can make the most money from selling, as well as have the most leverage for the terms of the contract with the buyer. Many people dream of buying a home but have been waiting for these home prices to come down so they can afford a home. How long can this keep up and what signs can we look for to know when this market will shift? How will we know when we’ve peaked?

Watch the inventory

As long as inventory (aka: the number of homes that are for sale at any time) remains low, then demand will remain high. Basic US economics tells us, high demand means higher prices. How can you tell if inventory is low? Your local experienced realtor will tell you how many homes were for sale at any given time during a buyer’s market. In our Chico market, we went from about 300 homes on the market at any given time in 2012 to 50 homes on the market at any given time today. That’s low. We call it the “absorption rate”. How many months would it take for us to sell out of all the homes if we froze the MLS and didn’t take any more listings? Our market is at about a month. A “normal” market, nationally, is considered 6 months absorption rate. Keep an eye on the number of homes for sale and when you notice a marked increase, it may be an indication this market will shift.

Watch the average days on market

Any pro Realtor can tell you what the current average days on market is for a homes in their market. What this means is, how many days does it take, on average, for a home to go on the market, receive and negotiate offers and accept one? In the Chico market it is 11 days. About five years ago the average was more like 45 days. Yes, averages take into account those outliers that skew the numbers, but watching the average days on market is still a very good indication as to where the market is heading. Once they start creeping up into three and four weeks we will know that in the Chico market that we are in the tides of change and sellers may have missed the peak time to sell. Watching the average days on market is a good way to know when this market will shift.

Watch the mortgage interest rates

All these buyers that are actively house shopping these days will still be able to afford the house they want as long as mortgage rates remain low. But if the interest rates go up enough then they can no longer afford the monthly payment for the house they want. They will either have to look elsewhere in a cheaper market to buy, stop shopping and wait for interest rates to go back down, or wait for housing prices to go down. Mortgage rates have stayed under 5% since 2011 (except for a short time in 2018), according to Freddie Mac. We have been under 4% since the second half of 2019, according to Freddie Mac…until recently. Obviously, we don’t have a crystal ball, but as long as the rates stay in these familiar territories of low 4’s and 3’s, this shouldn’t affect housing prices. If interest rates climb a quarter percent here and there, housing prices will begin to level off and then, eventually, begin to adjust downward. Downward prices mean the market made a shift.

If you are waiting to sell until the market peaks, use these indicators to help. All three must work in conjunction with each other. You can’t just watch one. Consulting with your local realtor in the area of the home you are wanting to sell will be a valuable asset to you. If you live in the Chico, CA area, reach out to us and we can answer your questions about our local market! Click here to send us a message that you want to talk!

This article was written by Kim Jacobi of the Jacobi Team of Century 21 Select Real Estate, Inc in Chico, CA.

How to buy a house in 2022

So you want to buy a house in 2022? Let’s look at some of the challenges you may face and then a strategy to overcome those challenges!

Challenges home buyers will face in 2022

1. Not enough choices

Most people have a list of things they want their next home to have. Maybe you want a home that has 4 bedrooms, 2 bathrooms and you want a split floor plan with lots of light and upgraded finishes. And you want the kitchen to be in the back of the house with a window that looks out into the backyard. And you want there to be a wood burning fireplace in the living room. Oh, and a pool in the backyard. So you pull up JacobiTeam.com and search for this house in Chico, CA and you see that there are currently zero for sale with those specifications. If this were 2014 you might see three or four like that in your price range at any given time, and more just like it as the price range goes up. There just aren’t very many homes for sale and it’s been like this now for three years. In fact, active listings have been declining since 2012/2013. And new home builds are way below what they should be to keep up with demand. Click here to see how many homes are for sale right now in Chico, CA.

2. Lots of competition

Let’s say, by some miracle, the exact house you are looking for actually does come on the market for sale! Yay! So you schedule a showing with your Realtor and decide you want to write an offer. You know the market is hot right now, so you offer a little over asking. You are getting a conventional loan and not asking a lot from the sellers. Then your Realtor calls you the next day and says there ended up being 7 offers on the house and your offer did not get chosen because someone came in paying all cash, short escrow, no contingencies. This has been the reality for many buyers trying to buy a home ever since COVID began.

3. High prices and rising interest rates

CA is at an all time high with median home price, and that includes Butte County where my husband and I practice real estate. Buyers have been able, for the most part, to still buy homes because interest rates have been insanely low over the last few years. But they are rising. All indications are that they will go up several times through this year. That means that not only will you be paying the highest ever price for a home, but it will cost you more to buy that home in the long run that it would have last year, when the rates were lower.

So why should I buy a house at all?

1. Renting is throwing your money away

When you rent, you are paying someone else’s mortgage, and furthering their wealth. You CAN still buy and I will tell you how in a minute.

2. Interest rates are still at historic lows

Even though interest rates are set to rise, they are still at historic lows. Over the next few years they may go up even more, so this year’s rates could be considered a good deal.

3. Real estate is still one of the best ways to grow wealth

Some people say real estate cycles every 10 years. That is true unless there is a recession or bubble burst. There was the recession in 1990. Home prices had peaked in 1989 and then bottomed out in 1997. Then there was the bubble burst of 2008. Housing prices had peaked in 2006 and bottomed out in 2009. That is seventeen years between peaks (peaked in ’89 and then down and back up to peak in ’06). But that doesn’t mean that if you paid $500,000 for a house in 2006 it took you until 2021 to be able to sell it without being underwater. Accounting for the amount you put as a down payment, and then the years you put in making payments on the loan, your equity probably caught up to you in about 2016. So for you, buying at peak pricing, means in about ten years you could sell it and be in the positive or break even. The more cash you put down, the safer you may feel buying in a peak. Just know that overall, the property will gain in equity in the long run because housing values continue to go above the previous peak and hold over the long term.

How to buy a house in 2022

As promised, here is what we are suggesting for you to get the best experience and meet your goals of buying a home this year:

1. Contact a LOCAL mortgage lender and get pre-qualified

Concerns that a seller has when accepting an offer from a buyer who has to get a loan inlcude, can their lender close the loan? Is this buyer actually able to borrow? Realtors who have been in the business long enough to do a dozen or more escrows begin to see which lenders do a good pre-approving their buyers, communicate quickly, and follow through with what they say their company will do. So the seller’s agent is going to advising their sellers to be looking for buyers with lenders that the agent knows can accomplish these things. That’s why working with a local lender with a proven track record can cause your offer to win over a buyer who submitted an offer but is using an out-of-town lender.

2. Have that lender pre-approve you

To get pre-approved your credit will be pulled, you will provide bank statements, W2, etc. Whatever the lender asks. The lender will be able to ascertain whether or not you will actually qualify for this loan. It’s more than just a conversation- it’s saying that you, the borrower, are 99.999% going to be approved for this loan. This will put you above other buyers making offers who are merely at the pre-qualification stage. All you have to do to get pre-qualified is to talk to the lender on the phone. No paperwork. No credit pulled. Just a conversation.

3. Determine your MUST HAVES and negotiables

Do you NEED a home that has brand new beautiful luxury vinyl plank flooring? Or, can you buy a home that has some other kind of flooring and then have the flooring you want put in before you move in? Being flexible on your needs and wants list will open up more choices of homes for you.

4. Find a Realtor

Find someone who works real estate full-time and gets back to you quickly. In this market you will need to act quickly when a home comes on the market and you want a realtor who is paying attention to you.

5. Focus on your price range or lower

Look at homes that are new on the market that are at or below the top amount you want to pay. If the house has been on the market three weeks or longer then you can look at homes that are a little higher (1%-3%) than you want to pay and may be able to get your price accepted if you make an offer. They are probably about to do a price adjustment anyway.

6. Highest and best

When you write an offer, make it the highest you are willing to pay right out the gate. Don’t mess around or you will most likely get beat out. This market is like a silent auction. Make your bid and hope it’s the best.

7. Other terms can also help you get your offer accepted:

*See how quickly your lender can close an escrow- if they can do it in 21 days then write your escrow for 21 days.
*Explore the private money, or bridge loan, option rather than getting a standard loan. This makes your offer as close to an all cash offer as possible. You need to have equity in your
current home as collateral to be able to have this as an option usually. You would buy your house with the private money loan then after closing refinance into a standard mortgage. Your
realtor will most likely have some private money lenders they can recommend.
*Offer to pay all the closing costs. Closing costs are typically 1% of the purchase price.
*Don’t ask for the seller to pay for any inspections. If you want inspections, pay for them yourself. In the Northern CA area you can get a whole house inspection for about $400, a pest
inspection for about $150, an HVAC inspection for about $100, a roof inspection for about $100, a chimney inspection for about $250 (including a cleaning), a pool inspection for about
$200, and a sewer line camera scope inspection for about $350. Other inspections include septic inspections (which if pumping or digging is needed can run $500-$1000), well inspections
($300-$700 depending on what you get inspected), solar panel inspections (price varies).
*Consider shortening your contingencies or releasing them altogether. There are ramifications to this, so make sure to discuss this in depth with your Realtor.

This article was written by Kim Jacobi, of the Jacobi Team of Century 21 Select Real Estate, Inc in Chico, CA. If you want to search for homes for sale in Chico, click here.

Stuck in a Lease and Wish You Could Buy?

Are you renting and stuck in a lease agreement and wish you could buy a house now? Don’t abandon your dream and wait! Interest rates are going to rise in 2022 and you will pay more for the same house if you wait! So here are three things you can do to buy NOW!

Check the fine print

Find your lease or rental contract and look for a section that talks about early termination. See if there are any fees or requirements for terminating the lease early. If the contract doesn’t say, or you don’t have a copy of the contract, then call your property manager or landlord and ask them directly! Some leases call for a fee or require you to pay two or three months rent in order to get out of your contract early. Find out! There may not be a financial penalty.

See if there is a waiting list

Right now, housing is in demand, and not just homes to buy. If you have a property management company managing the rental you live in, they may have a waiting list of people who would jump at the chance to take over your lease! Call and ask. If you deal directly with the landlord ask your landlord if he knows anyone who would want to take over your lease. If he or she does not, then ask for permission to advertise and look for people interested in taking over your lease. Depending on your area, you could advertise for free on Craigslist or Facebook Marketplace, or other online sites.

You won’t have two house payments at the same time

When you buy a house, there is a slight delay on paying your first mortgage payment! Let’s say you get an offer accepted on a home in February. It will take 30 days to close escrow. So then if you close escrow in March you won’t have a mortgage payment on your new house until April, or sometimes even May depending on several factors! We always advise our clients to give their 30 day notice to their landlord once we have passed about the halfway mark in our escrow and we see that everything is looking good to close. Because you won’t have a house payment for another month that gives you plenty of time to stay living in your rental, close escrow on the house you’re buying, and then take your time moving.

If you are currently renting and would love to buy a house before your lease term is up, reach out to us! We can help you!

Written by Kim Jacobi of the Jacobi Team of Century 21 in Chico

When You Should Fire Your Realtor

How do you choose a realtor? Are there times a realtor needs to be fired? This is a hot topic, especially for a Realtor to be writing about. There are times, as a home buyer or seller, when the Realtor you are working with should be fired. Every profession has bad eggs. Obviously, if they are breaking the law, being unethical, untrustworthy, uncommunicative, and so on, then you can tell them you no longer want to work with them. (Make sure you let the realtor know you are letting them go! Don’t just avoid them. Plus, if you have a contract with them, then you may be obligated to pay them, unless you cancel the contract- but make sure you know what your contract says!) But…there are times when you should NOT fire your Realtor too.

This is not one of the reasons

I’ve seen it time and time again: a home goes on the market and it is priced over market value. The sellers are hoping a buyer will bite, especially in this market. Inventory is low and buyers are desperate right? Buyers are smart. They have access to information and study it. This is the average buyer I’m talking about. Some buyers go even deeper. The average Buyer knows what homes, just like this overpriced listing, have recently sold for. They know how long homes are taking to sell, what the seller originally paid for the home, and, if a home was on the market recently and didn’t sell or fell out of escrow. Sellers mistakenly think a buyer will make an offer and if enough buyers make low offers then they will take the highest they can get. That isn’t how it works folks.

In Butte County, the list to sale price is 101% and has been for a couple years now. What that means is that buyers are only paying 1% over the listed price on average. For a $500,000 home that is only $5,000. So that means that if the market value of a home is $500,000 and a seller has it listed for $525,000, hoping someone will bite, they will not get any offers! Or they might get one, but buyers will wait for the listing to become stale and make a low offer.

Now we get to the part when the seller fires their realtor because their house isn’t selling. The realtor most likely told that seller what market value was for their home. But the seller did not follow their realtor’s guidance. So the seller fires the realtor and is frustrated. Then the home is pulled off the market. Hungry realtors who watch for this every day, will begin to call the seller, promising them THEY will get their house sold. Then, for some reason, the seller will re-list the home at the price their original realtor advised them to, and the home sells in a matter of days. Of course it sold. It wasn’t the realtor who sold it. It was the price.

How to choose your realtor

A GOOD realtor, representing a seller, will do the following:
1. Communicate clearly and regularly
2. Be honest and trustworthy
3. Understand the local real estate market and advise you on the best way to meet your goals (example: you want to sell for the most amount of money in the least amount of time; or you want to sell for the most amount of money but you have all the time in the world; etc)
4. Help you prepare your home for sale by giving suggestions and working within your budget, abilities and timeline. Preparing the home right will pay off big time. (Decluttering, cleaning, painting, cleaning up the yard, staging the home, etc)
5. Professional photos, 3D tours, and even drone video
6. Well-written description, fully filled-out MLS listing with accurate information about the home, and captions on the photos
7. The realtor will be on the phone, making sure that all the realtors in the area who represent the majority of the buyers, know about this listing.
8. The realtor will return calls from interested parties promptly and keep you informed on the activity of the home.
9. The realtor will understand all the facets of the sale, like any local regulations, special insurance needs, whether or not the home is lendable and which loans can qualify, and be able to anticipate and prepare the seller for demands buyers may make. Actually, the best realtors prepare the home to sell so buyers don’t make any demands.
10. Leave you, the seller, feeling fully informed, in control, and satisfied with the entire process.

If you are thinking of selling your home, it is a good idea to interview three agents. How do you choose your realtor? Ask them to show you comparables of your home, their marketing strategy for selling your home, as well as proof of their success (past client reviews, homes they sold in the past year, things like that). Choosing a good realtor will make all the difference in your experience and, when you know you’ve chosen a GOOD realtor, then you can trust their advice…and follow it.

Written by Kim Jacobi, of the Jacobi Team of Century 21 in Chico. Check out our recent Google reviews here!

Answers to Top 3 Questions Home Sellers Are Asking Today

If you are a home owner then chances are you have thought about whether or not to sell your home and take advantage of the high home values in this hot real estate market. What’s stopping you? Perhaps it’s the daunting feeling you got when you thought of it. “Where do I begin??”, ran through your head. Perhaps many more questions ran through your mind. Well, there are lots of people asking these same questions! Here are the answers to the top three questions sellers are asking themselves today:

The Top 3 questions home sellers are asking today

1. Should I sell my home first and then buy my replacement home? Or should I buy my replacement home contingent on selling? Or should I sell and then rent and then buy? Help!!! (That’s all part of the same question BTW)

In a hot real estate market many buyers are competing for the same homes. This creates multiple offer situations where prices are pushed up and contract terms are very favorable for the sellers. As a home buyer, if you are writing a contingent offer on a home you want to purchase, chances are low that your offer will be accepted. It’s not an impossible scenario, but you better have a lot of patience and tough skin to endure getting your offer rejected over and over until you luck out and find your perfect home (which is already tough to do when inventory is low!) and a seller willing to wait the week to two weeks for you to sell your house and hope YOUR buyer closes escrow so they can!

Well, if buying a home contingent on selling is not the way to go, then what about putting your home on the market and then trying to find your replacement property while you are in escrow on the sale of your current home? With housing inventory at historic lows then you will most likely end up having to settle for a house that doesn’t meet your wish list items.

The answer? Your best bet, if you have to sell your home in order to buy your next home, is to sell your home and put the proceeds of the sale of your home in the bank (or you can discuss with a financial planner or CPA other liquid options). Move into a rental in the area where you want to buy your home and search for your replacement property then. You will have better buying power then. Renting for potentially three to six months is the “cost” of selling a home in order to buy a home that checks all the boxes for you, in a market such as this one.

2. What should I do to prepare my home for sale in this hot market? It will sell itself right?

Wrong. Although there are many more buyers out there than sellers, buyers are not willing to buy homes that aren’t presentable. Buyers are making concessions like paying more for a house than they would’ve a couple years ago, or buying a home that might need a little updating, or removing their inspection contingencies. But you still need to present a good product to the market from day 1. The homes in my area (Chico, CA) that are selling with multiple offers and/or quick sales are homes in the median price range, that are clean, have great photos on the listing, and are in desirable neighborhoods. We are also seeing some gentrification happening in older, more run down neighborhoods. New buyers are coming in and taking pride in their home and neighborhoods are starting to turn around and home values are rising in those areas too because of it.

If you are thinking about selling your home then the best things you can do to prepare are:
-Deep clean EVERYTHING and declutter
-Hire a great realtor with a proven track record of selling homes in your area and who has good reviews from their clients. Then do
exactly what they tell you to do.
-Do the little repairs you’ve been putting off: fixing that broken handle, replace all the burned out lightbulbs, paint the front door,
put that cover plate on the outlet that never had one, have those carpet wrinkles stretched out by a carpet installer. All those
little things add up and buyers notice when there are a lot of deferred maintenance on a home.

3. I can push the selling price of my home up, right? Buyers will pay, right?

Wrong. The way that prices get pushed up is that a home that is for sale, that is priced at market value, receives multiple offers and those buyers bid up the price. Then, once that home closes escrow, the final sales price is then published and that becomes the new comp for homes like it. So you will want to price your home for what other homes in your area like it have actually sold for in the last 90 days. It’s important to get an objective opinion of which homes are actually comparables to your home. As a home owner, we often over-value our home and we aren’t looking at its value the same way a home buyer is looking at it. So hire a great realtor, with a proven track record of selling homes in your area that also have great reviews from their clients. Wait, I already said that earlier didn’t I?

Written by Kim Jacobi, of the Jacobi Team of Century 21 in Chico, CA. Kim and Emmett Jacobi are a husband-wife real estate team with over a decade of experience in the Chico and surrounding area. If you have more questions about selling your home, reach out and we can answer them for you so you can make the right decision for you and your household.

Why THIS Winter is a GREAT time to sell your home

In a normal seller’s market there really isn’t any bad time to sell your house. However, Spring in Northern CA, where our real estate market is located, is usually the best time to sell and winter is usually not the best time to sell. Why is that? NORMALLY, buyers get distracted during the holidays and choose to put off buying a house. NORMALLY, buyers don’t like trudging about in the cold and rain to look at houses and want to wait until the weather is nicer. But these aren’t normal times.

How COVID has affected our market

Nationwide, and definitely in our Chico and surrounding area, there are less homes on the market and more buyers than ever. WHY? COVID is one huge reason. The affects of COVID have been felt in more than just the health care, politic and economical arena. It has affected WHERE people want to live. Many people are now able to work from home. Thousands of jobs are now offered to people remotely, whereas before, it wasn’t the case. And these remote jobs are looking like they are here to stay. So more people than ever are asking themselves, where do I want to live? COVID has also got people thinking about where they are in life and where they want to be. Many people have reflected on those two things and have decided to make a change. COVID has affected schools, jobs, where people want to live, and so much more. Now, more than ever, buyers are in abundance.

And how has COVID affected sellers?

Nationwide, the number of homes that are on the market are low because sellers who want to upsize are finding it difficult to do so because they can sell their home quickly but can’t find their replacement home fast enough. Some sellers are keeping their homes off the market due to the pandemic- they don’t want people coming through their house. Some people don’t want to sell because they feel nervous to sell and make a move during perceived volatile and uncertain times. Unemployment rates are extremely high, inflation is up, and politics are crazy.

Why this winter is a good time to sell

There is a vast amount of unsatisfied buyers who want to be in a home of their own and quit renting, or want to be in a different location or closer to family, or want to take advantage of the amazing interest rates before they go up, or the myriad of other reasons people are pressed to buy now. Home buyers are more motivated this winter than in the past. Buyers are very specific about what they want, and turn-key homes that are updated, or have more land than a postage stamp, often see the most offers (in the Chico and surrounding real estate market). Buyers nationwide are still out there in droves, ready, willing, and able to purchase a home, when the right one comes along!

If you’ve been holding off selling…

…then CALL us! We can help strategize with you and help you come up with a plan that works for you. Information and expert advise is key in making a decision like this. Reach out so you can get peace of mind. You can also get a free, instant home valuation without having to talk to us, using a tool we subscribe to called “Homebot”. Your information will NOT be sold or given away, and this is a secure site, so check it out here!

This blog post is written by Kim Jacobi, of the Jacobi Team of Century 21 in Chico, CA. You can reach Kim at Kim@JacobiTeam.com if you have any questions or comments.

Appraisal vs Realtor Market Analysis

What is an appraisal?

An appraisal is a report that’s performed by a licensed appraiser. They go out to the subject property and look at the size, square footage, lot size, age, and different amenities. Amenities include solar panels, upgraded bathrooms or kitchen. Does it have a pool, or a shop? Is the roof new or old? Then the appraiser puts together a report that includes other properties in the area that have sold that are very similar. They will make comparisons side by side with those comparable homes, or “comps”, and come up with a value based on that information. An appraiser’s most common client is a mortgage banking institution. That appraiser is hired to act as the bank’s “eyes” to see if that property is worth what the bank will be lending on. For lending institutions giving out a government backed loan, such as an FHA or a VA loan, an appraiser must be specially certified with an FHA or VA appraisers license. Appraisals can cost $500-$1000, depending on the appraiser.

What is a market analysis?

A market analysis is essentially the same thing, except it is performed by a real estate professional. But the process is the same. The realtor will go out and takes a look at a property and all of its amenities. Then, looking at the current homes for sale, pending sales and past sales that realtor will come up with a range of what they think the home would sell for if it went on the market that day. Home owners will often get a market analysis if they are thinking about selling their home. They also will often ask more than one realtor to give them a market analysis, and use it as a litmus test to see which realtor they want to hire. A market analysis is a free service performed by nearly every realtor.

Which one is better?

An appraisal and a market analysis are both an opinion. Each appraiser studies the comps and amenities and will come up with a value based on their interpretation. Sometimes two appraisers can come up with different values of the same home. A realtor does the same thing. The main difference between an appraisal and a market analysis is that an appraisal often happens after the home has already been exposed to the market and received an offer from a ready, willing and able buyer. A market analysis is most often created before the market has seen that home and the realtor must use their knowledge of the market to predict what that home would sell for. A good realtor will get it right nearly every time. Set side by side, if an appraiser were to go out and perform an appraisal on a home before it is exposed to the open market, and a realtor were to create a market analysis of that same home at the same time, the two should be similar. This is because both the appraiser and the realtor are going to be looking at the same market activity.

The Final Say

A buyer and a seller, negotiating a contract, are ultimately the ones who will determine fair market value. Worded another way is, what an able buyer wants to pay, and what a motivated seller is willing to take for a sale becomes that property’s fair market value. So how do home prices rise? When more and more buyers are able and willing to pay more than what a home is listed for sale at, then those sales become next month’s comps. And so on. Appraisers and realtors alike try not to go further back than three months when looking at past sales.

If you would like a free market analysis of your home, reach out to us! Click here and fill out this quick form and we will contact you shortly! We service these following California communities: Chico, Hamilton City, Orland, Paradise, Magalia, Forest Ranch, Oroville and Durham.

Have you thought about what makes your home so special?

It’s a good question to ask when you are thinking about selling.

What led you to purchase this home?

Highlighting the unique features and benefits of your home is essential in ensuring that it receives the value it deserves. To do this it is important to help your real estate professional get to know your home as well as you do.

Let’s explore – from your point of view as the owner – what might be most attractive about your property to a potential buyer.

1. What made you purchase this home? Was it location? Was the neighborhood special or is the home convenient to shopping? Are there natural features that enhance the area such as parks or streams? Is the home sitting on a corner lot with large trees? What were some of the specific things about this home that made it attractive?

2. Which features of the home have you enjoyed the most? Maybe the property has a pool in the backyard; outdoor grilling station and/or a fire pit. Could be the layout of the home – open floor plan, fireplace, indoor laundry. Maybe the kitchen is large and inviting. Could be the basement playroom.

3. What are the features that a typical buyer might miss when they walk through? Put yourself in the place of a buyer who is unfamiliar with the home and you were doing a guided tour. What special features would you point out? Walk-in closets? Extra deep cupboards? Built-in storage in the garage?

4. What other features or benefits should be highlighted? Your real estate agent will be of great help in suggesting what other ways your home will shine when it is listed.

Deciding to sell your home is a big decision. After all you bought it and enjoyed it and now you want someone else to see and appreciate all the cool features that you have over the years. Emmett and Kim Jacobi, The Jacobi Team, are experts in navigating the ins and outs of home selling and buying. Give them a call today.

Watch the inventory

Watch the average days on market

Watch the mortgage interest rates

Challenges home buyers will face in 2022

1. Not enough choices

2. Lots of competition

3. High prices and rising interest rates

So why should I buy a house at all?

1. Renting is throwing your money away

2. Interest rates are still at historic lows

3. Real estate is still one of the best ways to grow wealth

How to buy a house in 2022

1. Contact a LOCAL mortgage lender and get pre-qualified

2. Have that lender pre-approve you

3. Determine your MUST HAVES and negotiables

4. Find a Realtor

5. Focus on your price range or lower

6. Highest and best

7. Other terms can also help you get your offer accepted:

Check the fine print

See if there is a waiting list

You won’t have two house payments at the same time

This is not one of the reasons

How to choose your realtor

The Top 3 questions home sellers are asking today

1. Should I sell my home first and then buy my replacement home? Or should I buy my replacement home contingent on selling? Or should I sell and then rent and then buy? Help!!! (That’s all part of the same question BTW)

2. What should I do to prepare my home for sale in this hot market? It will sell itself right?

3. I can push the selling price of my home up, right? Buyers will pay, right?

How COVID has affected our market

And how has COVID affected sellers?

Why this winter is a good time to sell

If you’ve been holding off selling…

What is an appraisal?

What is a market analysis?

Which one is better?

The Final Say

It’s a good question to ask when you are thinking about selling.

What led you to purchase this home?

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