San Diego Real Estate Blog

How Our Industry Operates: Why do agents take on overpriced listings?

Why is it that real estate agents will list your home, even when they know it's overpriced and will not sell? Here's the truth about how our industry operates. We are taught to take the listing no matter what, even if the agent believes that it is overpriced and will not sell, because we're told to do two things. One, is to build a relationship with you over time and slowly get that price down until it finally sells. Two, is we're taught that we can use your property as a place to play so we can put that billboard in your yard, the for sale sign to generate leads from other buyers, the open houses, so that all the people that end up coming to your property will see it. Even if they don't buy your home, we can still use it to find leads that will buy other properties. We literally are told you could do two or three sales just from having a listing.

If you're ever wondering why would a business person take a listing? And if they don't believe in the price, why will they still accept it? And why do agents do this? That's why. I'm sharing this with you because not everybody operates that way, but you do have to understand who you're doing business with. You have to ask the right questions and we have to take a look at the data. If there's absolutely no support for what's being proposed to be done, then at least raise an eyebrow and make sure that person has the track record. I want a more transparent industry. I want to expose the truth.

Letting the public know what's really going on and how real estate operates and what agents are taught is a really good way for you as a seller and consumer to make decisions around how you're going to do business and who you're going to do it with. 

 

...

The Only 3 Things That Really Impact Your Home Value

There are a lot of factors in what determines your home value, but there are only three things that really make the most impact on the value of your home and how much equity you're going to be taking out of it.

#1: Competition

There's always competition for property, but typically the competition is between buyer and seller; the two of them fighting it out amongst each other. The buyer is focused on what the seller wants, what's the best price I could get, what offers should I make to get the best value?

Well, the number one factor here is you have to take the attention of the buyer, away from you as a seller, and instead pin buyer versus buyer. Creating a buyer versus buyer environment where you take control of the sale and have them fight it out amongst each other is the number one thing.

#2: Eliminate Deferred Maintenance 

These are things that are broken, torn, and obvious. Don't think about things like the oven, for example. The oven may not function, but you don't have to place that much focus or attention on it in terms of preparing for the sale because nobody's coming to your house and baking cookies during the showings. Of course, you'll want to disclose this and it will have to get addressed, but it's not going to impact what buyers will offer. However, when there's something that's just clearly out of place and distracting people's visual experience, it gets them into a place where they're thinking to themselves, “how much will it cost to fix this?” Plus, it starts to get worse from there because of course, they start to wonder what else in the house doesn't work. What else hasn't been taken care of. Ultimately ends up costing you a lot more,...

Should you turn your current property into an investment while buying your next home?

A lot of homeowners are facing that decision, "Do I hang onto my current property, and turn it into an investment while buying my next home?"

Here's what you need to think about when you're making that decision. You have a home that has appreciated and you are purchasing a new home. You might be in a position where you can purchase without having to sell. That’s an awesome spot to be in, but is it the right thing? A lot of people will tend to want to do that because if they do that, they feel like, "Hey, I'm building a real estate portfolio."

The thing is, you also have to think about how long you're going to be committed to that home that you're holding onto, because you currently have a tax-free gain (or at least the first $500,000 if you're married, $250,000 if you're single) of appreciated value that is tax-free. If you were to move it from your current property that you've lived in for at least two out of the last five years to the new home that you're now purchasing, you now have this tax-free gain you can move over.

That down payment that has already been taxed, that you would have been purchasing the new home with had you held onto this one, well, those are dollars that have already been taxed. You can go ahead and purchase an investment property with those dollars instead. Again, think about if you're going to purchase a home and you own a home now, that's your primary residence, you're moving up to a different property and are you going to hold onto your current property as an investment?

What you're doing is effectively turning this tax-free gain into a taxable event in the future versus moving that tax-free money into the new home and using dollars that have already been taxed...

Inventory is low... but nobody is talking about why?

Everybody knows that inventory right now is extremely low, but nobody is answering the question “why?” 

I think it's extremely important that we take the time to answer why inventory is low, not just tell people that it is. The reason for that is that by understanding the workings behind it and what's driving it also helps us understand when things might change and what might be coming down the road so that we can look for those changes. First of all, there are thousands of homeowners that are really unmotivated to sell their property because they don't have to pay their mortgage. Remember that the forbearance programs are still in place. 

Also, it looks like more stimulus is actually coming down the pike here so it's hard to say exactly when that's going to change, but make no mistake about it… when we finally see those mortgages come due and people have to step up and pay, motivation will naturally change. Until then we could expect to see suppressed inventory. Secondly, the home is now so much more than a home. We are all experiencing this, whether the home is now also the office or whether it's also now a school or it's entertainment, the home is doing so much more for us. Because of that, two things happen. One, is demand is driven way up so everything that does come to market tends to get absorbed. This also makes it harder to show your property.

There's people that don't want to necessarily get their home on the market, except for, it's hard to do. So if it's also literally where your children are studying and you know, doing their schoolwork and if it's also your gym and if it's also your, your only refuge then it makes it hard to have the public come in and take a look at your property. Now,...

How's the market in the face of the pandemic?

Few people truly understand what is happening in the market right now and why conditions are so favorable in the face of the pandemic.

Watch this short video where I share with you the state of our market today: 

These are the kinds of things we want to continue to uncover for homeowners. We want you to have the truth....

In fact, that's why I wrote the book, Real Estate Exposed, which was reviewed by New York Times bestselling author, Harv Eker. If you would like a free copy mailed to you, visit www.REExposedBook.com

Daniel Beer
Beer Home Team | DRE #01504952
eXp Realty | DRE #01878277

...

Buyer Solar vs. Leasing it: What should you do if you want to maximize the value of your home?

I am amazed still at how much we see people leasing solar.

If you have a solar lease right now, don't worry because you are not alone. We come across homeowners that choose this option all of the time because they just didn't know...

Here's why I encourage you to purchase solar instead of leasing it whenever possible:

The payment on a lease is typically the same as financing the purchase payment. I understand that not everybody can purchase the solar upfront with cash, but the financing on solar versus a lease payment can pretty much be the exact same thing.

You receive tax credits when you purchase.

It makes it easier to sell the home. When you go to sell the home, you’re not asking your buyer to qualify for the mortgage payment AND a separate lease payment.

 Reputable solar companies offer excellent warranty programs. One of the main reasons people opt for leasing, is because the solar leasing agent convinced them it was way more convenient not to own it because then they are responsible for the maintenance and blah blah... DO NOT GO THERE. Purchase solar from a reputable company with a warranty program.

So when you’re faced with the option of purchasing versus leasing solar, make sure you buy.

I’m Dan Beer with the Beer Home Team at eXp Realty and these are the kinds of things that we'd like to expose to homeowners. We'd like to expose the truth…

In fact, that's why I wrote the book, Real Estate Exposed, which was reviewed by New York Times bestselling author, Harv Eker. If you'd like a copy of the book, just go to www.REExposedBook.com and reserve your free copy.

#BeerHomeTeam #RealEstateExposed...

3 Options When Selling - Most Agents Only Tell you About One

No matter what you want out of your home sale, you should have options.

Get Your Home Value

Search All San Diego Homes

Have you ever noticed how most real estate agents assume they know what you want out of your home sale?

I believe you should have options—options that include:

  • Selling quickly for cash and moving out on your time frame (potentially with no commissions or closing costs)

  • Having a full market blitz (it will take longer, but you’ll achieve a higher price)

  • Allowing us to provide you with the capital to rehab your property and sell it at maximum profit

Which is best for you? Over the years, we’ve noticed that most sellers' agents pigeonhole them into using just one selling process. This is just a case of those agents assuming that they know what their sellers want. Many factors go into a home...

What to Do if You Aren’t Leaving a Fixture Behind

When selling a home, is it okay to show your property with a fixture that you don’t intend to include in the sale? Let’s discuss.



Get Your Home Value

Search All San Diego Homes

So, picture this: You’re getting ready to sell your home and you’ve got this incredible chandelier in your dining room that you want to use to wow your buyers. The catch is that you aren’t leaving it behind. This is a common problem faced by today’s sellers and, in truth, you really shouldn’t show off any fixtures you don’t intend to include with the home. Doing so could make buyers feel misled and cause tension during negotiations. A buyer would never otherwise ask for such a fixture, so don’t cause undue stress and ill will by giving them the idea in that it could be theirs, to begin with. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

...

The Truth About Selling in the Winter

Many people are under the impression that the winter is a bad time to list their homes for sale. In reality, the opposite is true here in San Diego County.

Get Your Home Value

Search All San Diego Homes

It’s that time of year when people begin to ask us, "Hey, we want to move but holiday season is approaching. Is it a good time to sell? What should we do?" No matter how the market is performing, year in and year out it’s always the same story. People think that spring and summer are the best times of the year for home selling. Many homeowners would ideally like to sell during the winter, but unfortunately they decide to wait because they think it’s not the best time to list.

Every year, sometime between September and October, we see a peak in inventory here in San Diego. This means that if you're planning on selling your home during those months, you're going to have a lot more properties to compete with compared to any other time of year.

The reason for this is that by October, we’re left with the glut of spring and...

Get Your Free Copy of “Real Estate Exposed”

Here’s what you can expect to find in my new book, “Real Estate Exposed: The Ultimate Roadmap to a More Profitable and Empowered Home Sale.”

Get Your Home Value

Search All San Diego Homes

Recently, I published a book entitled “Real Estate Exposed: The Ultimate Roadmap to a More Profitable and Empowered Home Sale.” It’s available on Amazon, but don’t go and buy it just yet—I’m going to be giving it away to you for free if it will be of use to you.

"I’ve been named among the Inc. 5000 for three years in a row, and I’ve been counted among The Wall Street Journal’s top 50 teams in the country."

By reading “Real Estate Exposed,”...

Local Service Improving Life for Seniors

By Dan Beer

     The late physicist, Stephen Hawking, liked to peer about the universe and note that the only thing for certain is change. Not only is that true in science, but also in life. So, we can thank the stars there are people like Sandi Menderson who make the lives of hundreds of Seniors immeasurably happier each year.

     One of the most logistically difficult things mature citizens go through is moving from a home they were part of for many years to an apartment, smaller home, or communal living. Sandi has solved this universally vexing situation by the exquisite services she provides through her brainchild, Bella Reflections. It came to be, as necessity proved to be the mother of invention once again, when her mother developed Parkinson’s and her father was not able to care for her. Sandi moved them from a distant town to San Diego. Her mother passed away soon after and her dad moved three times before finally settling into the right place.

     Close-up and first hand, Sandi saw a need for professional, compassionate services to help our older family and friends transition through these trying times. Having gained rich experience from years of staging homes and decorating for clients of realtors, volunteering at Children’s Hospital, sitting on the Board of a Senior Community, and achieving Certification as Senior Move Manager, Bella Reflections immediately flourished. Its sole purpose is to care for Seniors with the most comprehensive set of services anyone could imagine as folks moved from one living arrangement to another. In a service economy such as ours, I realize that’s a big claim, but just read on!

     Bella’s Senior Relocation...

A Word on Contingent Offers

Not all contingent offers are bad. Sometimes, they can work to your advantage as a seller.

Get Your Home Value

Search All San Diego Homes

Contingent offers have been popping up a lot in our market, so I want to clear up a few myths and misconceptions you shouldn’t believe about this type of offer if you’re a seller and you receive one.

First of all, they’re not always bad. Sometimes, they can even work to your advantage, although each situation is different.

Obviously, a contingent offer that’s dependent on the sale of another home can be a disadvantage because it involves something that’s out of your control. That offer, for example, could depend on a home that’s not even on the market yet, or one that’s located in a neighborhood that doesn’t support its price point.

...

30 Year Mortgages Aren't Always Best

Getting a 10-year fixed loan instead of a 30-year fixed loan will reduce the interest you have to pay and give you more purchasing power as a homebuyer.

Get Your Home Value

Search All San Diego Homes

A lot of homebuyers out there are chasing after the 30-year fixed mortgage, but does that make sense in your situation? Today I’ll tell you why I’ve always attained 10-year fixed terms for my loans and how this type of financing can benefit you.

I’ve always done 10-year financing because I’m aware of where I’m at in this stage of my life. When my wife and I bought our first townhome in Hillcrest, we knew we probably wouldn’t be there for 30 years—probably not even for six. Why, then, would we go with a 30-year fixed mortgage, which would raise our interest rate and reduce our purchasing power? For that property, we used a 10/1 ARM loan, and when we sold that house and bought our next one, we had the same type of loan.

The average American stays in their home for about seven to eight years, but in Southern California, the average is...

How to Make Sure Your Home Sale Closes

If you want to be sure a buyer is qualified to close on your home, you need to find out who they are as a person.

Get Your Home Value

Search All San Diego Homes

When you get an offer on your home, how can you make sure the buyer is qualified to close on it?

It’s important to check their finances and make sure they’re pre-approved, but you also need to understand who that buyer is. Where do they live? What do they do for a living? What kind of person are they? Are they easygoing or will they be really nitpicky when it’s time to do the inspections?

When we look at deals that fall out of escrow, it’s usually because of some kind of discrepancy involved—especially in a competitive environment. When inventory is low, buyers are more apt to squeeze themselves into a home that doesn’t really fit them. In this case, there’s a much greater probability of them eventually realizing that they’re not buying the right house and canceling escrow.

We’d only have to worry about a buyer’s finances if that...

What Role Should Home Inspection Repairs Play in a Transaction?

No home is going to have a clean inspection, but the negotiation of repairs can often delay or destroy a transaction if it’s not handled properly. Here’s my advice.

Get Your Home Value

Search All San Diego Homes

After selling over 1,000 homes, I want to share some of my thoughts and experience regarding how we think about a home inspection when representing sellers and what to expect throughout the process. This will ensure that you aren’t disappointed, you don’t let value erode, and you don’t make a short-sided decision at the expense of long-term value.

When a buyer is doing their inspection, we don’t want to allow them to negotiate what was already visible to them when they first came to the property. In other words, your agent needs to protect you from the other party trying to negotiate extra money to paint the home or change the carpet after the inspection. If the carpet was damaged in an area that wasn't visible during the showing or the paint was, that’s a different situation. ...

Join us for Movie Night on June 1

On June 1, we’ve reserved two free tickets for you to see Rocket Man, the upcoming Elton John biopic. Here are the details about the event.

Get Your Home Value

Search All San Diego Homes

Our big movie night is just around the corner. We’re giving you two free tickets to one of the biggest films of the year, Rocket Man, on its opening Saturday night, June 1, at 7:00 p.m. This movie, starring Taron Egerton, is based on the story of Elton John, and it’s going to be one of the best films of the year.

If you want two free tickets, popcorn, soda, giveaways, and more, all you have to do is register here.

"We do this as a way to say thank you."

...

How to Use the Correction Cycle to Meet Your Upsizing or Downsizing Goals

If you’re looking to downsize or upsize, then pay attention to this message on how to leverage market conditions to your advantage.

Get Your Home Value

Search All San Diego Homes

Right now, the real estate landscape is ideal for those looking to downsize. Meanwhile, the market we expect to see in the near future will be great for upsizing.

Depending on your goals, timing your move to correlate with current conditions may allow you to leverage our market to your advantage. Allow me to explain:

Leading experts believe there will be a 6% to 8% correction each year for the next three years, meaning the total correction at the end of that period will likely be between 18% and 24%. If you’re in a $1.2 million home, a market correction of even just 10% over three years would equate to a $120,000 equity loss over that time. In other words, downsizing soon is something you may want to consider.

"Timing your move to correlate with current conditions may allow you to leverage our market to your advantage."...

How Can You Sell Quickly, Conveniently, and for All Cash?

If you need to make a quick sale and bypass the traditional selling model, we can help you.

Get Your Home Value

Search All San Diego Homes

We know that the majority of home sellers out there are looking to go through the traditional selling process in order to maximize their sale.

What about those who need a quick, convenient, all-cash sale, though? The majority of people in this situation aren’t under any kind of financial hardship. Rather, they oftentimes have an opportunity they need to take advantage of that requires them to bypass the traditional home selling model.

That quick cash, of course, comes at a bit of a market discount. But if you’re wondering why someone would accept this market discount, the truth is, you’ve probably done the same thing yourself—just not with a home.

For example, think about anyone who’s ever sold their car to Carmax instead of, say, listing it on Kelly Blue Book. Even though they probably would’ve gotten more money by selling it the traditional way, they opted for a quick, easy transaction. I’ve even done this myself.

...

Inside Look at Our Operation

Today we’re going to take you “behind the curtain” of the Beer Home Team’s office so that you can see for yourself what goes into the care we offer our clients.

Get Your Home Value

Search All San Diego Homes

In truth, there are so many moving parts that go into taking a real estate transaction from start to finish that having an entire team of professionals working on your behalf is essential.

We at the Beer Home Team are always hard at work helping buyers and sellers like you reach their goals, and today we wanted to give you a behind-the-scenes look at our office life to show you where the magic happens. You can follow along in the video above to see for yourself.

Teamwork is everywhere you look in today’s world. Whether it’s at the dentist’s office or on the golf course, teams of people working together are proven to be more effective than individuals working on their own. Even solo activities will often require support. Professional golfers may play alone, for example, but they have coaches, caddies, and many other people on their side at every step of the way.

...

The Often-Ignored Truth About Open Houses

In today’s message, I’ll address one of the biggest home seller myths in the industry and bring the truth to light on how open houses should (and shouldn’t) be used.

Get Your Home Value

Search All San Diego Homes

Often to the detriment of sellers, listing agents will place the open house front and center when it comes to their marketing strategy. Unfortunately, though, the results just aren’t there: In their studies, The National Association of Realtors has revealed that a mere 4% of home sales originate from an open house.

Despite the numbers indicating very modest success, neither the agents nor the public has backed away from this practice and it remains a popular means of real estate marketing today.

Now, I don’t blame the consumer, because agents often tout the open house as an effective tool, but rather than just letting your agent heavily depend on an open house to sell your home, it’s important to press them to lay out a data-driven strategy that will systematically lead to the sale of your home.

...