ASK
Volume 1, 2013
A R E A L E S TAT E SELLER’ S GUI DE
QUESTIONS & ANSWERS www.McMillinRealty.com
Welcome to our first edition of ASK McMillin, A REAL ESTATE SELLER’S GUIDE. This Guide is created for sellers, with the idea in mind that as we enter into a period of market recovery, what are the considerations sellers need to be aware of when making their decisions regarding their largest investment, their home. ASK MCMILLIN is intended to be a resource to make you aware of what is affecting market values. We know the internet is a great tool. We also know that understanding trends is very valuable for current home owners. As your local real estate company, McMillin Realty has been tracking trends for over 50 years in this market area. We feel that you can trust us because the name on our doors carries the McMillin family values that started right here in San Diego. We are big enough to have the knowledge and resources you need, and we are small enough to care! ASK McMillin: Do you believe that 2013 will be the year when we see the recovery stabilize in the real estate market? SCOTT MCMILLIN: Yes, I believe that the recovery of the real estate market actually began in 2012. Our company saw continued improvement month over month in 2012. Our year-end figures totaled with an 8% increase in closed sales, and our closed sales volume was up 14% over 2011.
hours of 2013, extended the Mortgage Debt Relief Tax Forgiveness Act. This is great news for sellers who need to use the Short Sale as a means of selling their home.
ASK McMillin: What things do home sellers need to consider when selling their home? SCOTT MCMILLIN: Sellers need to be more aware than ever of the local real estate expert, the Realtor who has the most experience in the locale where their home resides. In ASK McMillin: We today’s market, a seller are hearing it is a seller’s needs to understand market? What does the competition that mean? of the homes they SCOTT MCMILLIN: will be competing A seller’s market is against when they go the name given when on the market. The we see prices rising, competition could multiple offers, and include “distressed” fewer days on the properties, such as market. Today we are the seller who needs experiencing a seller’s to sell their home as market based on the a “short sale.” The law of “supply and price accepted by a demand.” The number SCOTT McMILLIN traditional seller (one of homes available for with equity in their sale is extremely low property who will get cash back at closing) and there are more buyers in the market than versus the price accepted by a short sale the supply can handle. seller (one who will walk away with nothing, no matter what the sales price is, and with the ASK McMillin: What does that mean for bank paying all fees), can vary significantly. home sellers who owe more than their home A real estate agent with hyper-local market is worth in today’s real estate market? knowledge will be the guiding force to get SCOTT MCMILLIN: Home sellers who owe more than their home is worth still have a very the highest possible price in today’s market. There are many real estate agents who over viable option in the “Short Sale.” Although the last 5 years have only been working in the the prices are rising, many homeowners out distressed property sales. In that case, they there who bought at the high point of the market, with low or no down payment, are still may not have the tools, the marketing skills, finding that their best option is the short sale. and the knowledge to handle the traditional, Also, the federal government in the late hours equity seller, who is looking for top dollar and of December 31, 2012, going into the morning on-time closings.
NEWS YOU Can TRUST
Sources confirm market trends.