What homeowners in San Diego need to know about Assembly Bill 1033.

I'd like to shed light on Assembly Bill 1033, explaining its purpose and highlighting some concerns. AB 1033 was recently signed by Governor Newsom, aiming to increase housing units by allowing homeowners to sell off an Accessory Dwelling Unit (ADU) on their property.

The concept of creating more housing options, especially for entry-level buyers, is commendable. However, there are notable issues with the bill's loose structure. The relaxation of building codes for ADUs, while encouraging housing development, raises concerns about potential shortcuts by builders who might evade higher standards required for new constructions.

Furthermore, the bill lacks clarity on ownership types. It doesn't specify whether ADUs can be condominiums, timeshares, or subject to fractional ownership. This ambiguity may pave the way for Airbnb or vacation rentals, impacting the neighborhood's character. The bill also fails to distinguish whether investors can purchase these units or if they must be owner-occupied, potentially leading to increased competition and rising prices.

“This bill could benefit from much-needed clarification.”

The neighborhood's integrity is at stake, especially without clear guidelines for maintenance responsibilities in the absence of CC&Rs or HOA regulations. Common areas like gas meters, water meters, and sewer lines pose questions about accountability in case of breakdowns.

For retirees looking to sell their ADU, a potential issue arises with the triggering of a due-on-sale clause. This could prompt lenders to seek repayment, as conveying ownership of a portion of the property may violate single-family home loan terms.

While the bill's goal is commendable, it requires clearer specifications to prevent unintended consequences. Addressing issues such as investor involvement, neighborhood regulations, and potential triggers for loan clauses is crucial for the bill's success. If you have questions about this bill or ADUs, please call or email me. I look forward to hearing from you.

This year and every year, we’re thankful for you in our lives.

The 2023 holiday season has officially begun! I hope you are as excited as I am.

I’d like to take a moment to express my gratitude to all of you this Thanksgiving. I have met some truly wonderful people, and I'm proud to have helped so many reach their real estate goals over the years. I wouldn’t be where I am today without all of your support.

I hope you have a great Thanksgiving Day. May your turkey be plump, your pies be tasty, and may you enjoy your friends and family.

In the meantime, please don’t hesitate to reach out if you have any real estate questions. I would be happy to help you.

Happy Thanksgiving!

Sharing three projects you shouldn’t take on when preparing to sell.

Today, I'll share what you shouldn't do when selling your home. So, let's get started without delay. Perhaps you're tired of me always giving you instructions in these tutorial videos, or you're planning to sell your home without too much hassle.

What you should consider is shedding your homeowner and home seller perspectives. Instead, view your house from the eyes of a potential buyer. Those minor imperfections that may drive you crazy might not be as noticeable to them. Unless they pose health and safety concerns, you can forgo making those repairs unless they enhance the property's aesthetics.

“When selling a house, it's crucial to prioritize your efforts and investments wisely.”

When selling your home, the goal is to present it in the best possible light, but you don't need to make it look brand new unless it's a new construction home. There will always be minor issues, and the eventual buyer may want to make changes. So, for instance, if a kitchen appliance isn't the latest model, it's not necessary to replace it unless it's a safety concern.

Focus on addressing health and safety issues. Replace or repair items like heaters if they pose a safety risk. However, for borderline issues like a GFCI outlet, it's not an absolute necessity to fix it. A lengthy checklist of tasks can be stressful.

If you'd like to discuss this topic further in your specific situation, don't hesitate to contact me at (619) 200-3236 or email me.

Here’s what you need to know about the latest trends in our market.

As we step into the final quarter of the year with fall in the air and Halloween decorations adorning our neighborhoods, it's time for our third-quarter real estate market update for San Diego County. Let's reflect on the year's journey so far and look ahead to what's on the horizon.

Median Sale Price Trends: Year over year, we've seen a commendable 7.5% increase in median sale prices. However, when we consider the period from January to the end of September, the increase is less than 1%. Most of that 7.5% surge happened towards the end of the previous year. This indicates a trend of leveling off in the median sale prices in San Diego County, likely influenced by the current elevated interest rates, which have approached the 8% mark.

Shift in Pricing Dynamics: The days of multiple bids consistently exceeding list prices appear to be behind us. Currently, the list price-to-sale price ratio is hovering around 98.6%, down from the peak of 104%. This shift suggests a more balanced market and opportunities for negotiation, especially if a property has been overpriced.

Days on Market: Days on market have increased by nearly 25%, now standing at 32 days. This uptick hints at a transition toward a more typical market scenario. Homes are no longer flying off the market as they were in recent times.

“Rising interest rates have seriously affected buyers.”

Months of Inventory: While there has been a slight increase in months of inventory, we started the year with a mere 1.2 months' supply and now sit at 1.9 months. Although still under the two-month threshold, this indicates we're edging closer to a balanced market with around four months of supply.

Cash Transactions: Cash transactions are a noteworthy trend. Last year, at this time, 19 3/4 of the transactions were cash, with a median price of $850,000. We've witnessed a 9.5% increase in the median sale price for cash transactions. Many interest rate-sensitive buyers haven't been able to perform because they've gotten priced out. So people are opting to downsize or even tapping into retirement funds. Still, cash transactions are up 25% since this time last year. The median sale price on cash transactions are up 12% whereas the normal for the county is only 7.5%. With this, we're starting to see a higher purchase price in the cash department and a lot more cash coming into the market because interest rates are on the rise.

What does this mean for consumers, whether you're contemplating buying or selling? For sellers, the current scenario, with low inventory and cash buyers in the market, presents a favorable window of opportunity. However, pricing trends will largely depend on the trajectory of interest rates. Rising rates can potentially reduce purchasing power for financed buyers, leading to price adjustments.

As a buyer, the picture is a bit more complex. While rates are increasing, it's unlikely that monthly payments will decrease. Patience can be key in finding the right opportunity, but do keep in mind that inventory levels remain low. The market dynamics may vary, with some higher-end markets experiencing more significant inventory increases compared to more affordable price points.

If you're interested in specific information about the local real estate market in your area, please don't hesitate to contact me at (619) 200-3236. Have a wonderful day!

Unlock the potential of your rental property with these strategies.

Are you a landlord looking to get the most out of your rental property? Whether you're already managing rental units or considering becoming a landlord, there are essential factors to consider in today's competitive rental market, especially in areas like San Diego, where demand is high. Today, we'll explore some key strategies to help you maximize your rental property's value.

1. Know your tenant demographic. To succeed in the rental market, it's crucial to think like a tenant. Understand the demographic of potential renters in your area. Many tenants aspire to own a home but may not have the means to do so. Keep this in mind when preparing your rental property.

2. Focus on comfort elements. Tenants often seek homey, comfortable living spaces. Consider upgrades that enhance comfort, such as modern paint colors, stylish cabinetry, and attractive countertops. Even simple improvements like repainting cabinets or updating flooring can make a significant difference without breaking the bank.

“Every rental property is unique, so tailor your approach to meet the specific needs and expectations of your target tenants.”

3. Survey the competition. To determine what improvements are most valuable, research the competition in your area. See what other rental units offer and identify opportunities to stand out. Features like air conditioning, outdoor spaces, and additional parking can command higher rents.

4. Invest in tenant-friendly amenities. Think about what amenities can make your property more attractive. Installing energy-efficient mini-split air conditioning systems can be a worthwhile investment, as tenants are willing to pay a premium for comfort. Creating appealing outdoor spaces for relaxation and entertainment can also add significant value.

5. Consider laundry facilities. In-unit laundry is a highly sought-after feature for many renters. If feasible, provide washer and dryer hookups, or go the extra mile by supplying the appliances. This convenience can make your property more appealing and justify higher rental rates.

By implementing these strategies, you can increase your rental property's desirability and potentially earn higher rental income. Remember that every rental property is unique, so tailor your approach to meet the specific needs and expectations of your target tenants.

What is considered an ideal house has changed over the past few years.

In today's real estate market, the fundamentals we've always known are undergoing some remarkable shifts. Let's dive into the key changes shaping the real estate landscape in 2023:

1. Location still matters. It's often said in real estate that the three most crucial factors are location, location, and location. While coastal markets have traditionally commanded premium prices, the pandemic and remote work trends have altered the equation. Inland markets are experiencing robust demand as people continue to work from home, thanks to technological advancements. Even three years post-pandemic, the pricing gap between coastal and inland areas remains minimal. Buyers now seek more substantial square footage and larger lot sizes to enjoy spacious outdoor living.

2. The value of outdoor spaces. The importance of outdoor spaces has evolved significantly. Pre-pandemic, having a pool was a hit-or-miss factor. However, today, a well-designed outdoor entertaining area with a pool can fetch a premium price in the market. This was atypical before the pandemic, highlighting the growing importance of outdoor amenities in property valuation.

“The definition of an ideal location has evolved.”

3. Bigger isn't always better. In the past, having the largest house on the block often held little advantage over owning the smallest house in the neighborhood. Larger houses would pull up the value of smaller homes, and smaller houses might slightly weigh down the value of larger ones. But in the current market, the rules have changed. Building a larger house in a neighborhood with smaller homes can actually fetch a premium, as many buyers are eager to invest in spacious properties.

These shifting trends present exciting opportunities for both buyers and sellers. If you're considering a move in 2023, whether it's buying, selling, or both, don't hesitate to reach out. You can contact me at (619) 200-3236 or visit my website at www.sdcoastalagent.com for more information. I’m here to help you navigate this changing real estate landscape.

Here’s how you can price your property right the first time.

Today, let's delve into the critical aspect of pricing your home appropriately from the start. In the current market scenario, where housing inventory is limited, getting the pricing right is of utmost importance. Buyers are well-informed and discerning, so nailing the initial price is crucial.

The market is undoubtedly quite unpredictable, and it's baffling why certain properties sell for the prices they do, especially when neighboring houses fetch different amounts. To demystify this, let's break it down. Primarily, pricing is influenced by factors such as the specific price range, the micro-market dynamics, the financing options buyers are utilizing (cash, high down payment, or minimal down payment with varying interest rates), and their readiness to tackle projects like renovations.

Considering these variables, it's essential to delve into data mining to unearth buyers' emotional triggers and assess the available inventory. Within specific price brackets, like the range from $1.5 to $2 million and beyond, various buyer profiles emerge. These profiles factor in considerations such as a buyer's inclination towards remodels and their overall preferences.

“Unless a property is exceptionally desirable, buyers no longer rush in with offers.”

This is where hiring a seasoned professional comes into play. An expert who has experience working with both buyers and sellers can provide valuable insights. As someone who lists numerous properties and interacts with potential buyers, I also engage with lenders entrenched in local markets. This collaboration helps gauge buyer volume within specific price brackets and the associated emotional engagement.

Unlike a few years ago, the urgency that characterized the market has waned. Unless a property is exceptionally desirable, buyers no longer rush in with offers. Gone are the days of frantic 20 or 30-offer scenarios, with bids soaring far above the list price.

It's a balancing act. Underpricing might discourage competitive bids while overpricing could deter interest entirely. The repercussions of overpricing include extended time on the market, leading to additional expenses like mortgage payments, property taxes, insurance, and upkeep.

The initial pricing needs to be precise. It should generate interest, attract buyers, and ideally lead to multiple offers. If you're curious about selling your property or want to explore its potential price, don't hesitate to call or email me. I look forward to hearing from you.

Sharing all about SB10 and its potential consequences on San Diego housing.

Have you heard about the latest state bill that has been making waves in San Diego? It's called SB10, and it has the potential to significantly impact our housing characteristics and communities. SB10 aims to address the housing crisis in California by increasing housing density, but there are some concerns that need to be addressed.

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

0:19 — Explaining SB10

1:04 — What is San Diego doing differently?

2:38 — The dangers of SB10

3:42 — Why the changes are unnecessary

4:47 — Wrapping up

Click here to go to the website I mentioned. Also, if you have any questions about SB10 or real estate in general, please feel free to reach out to me by phone call or email. I would be happy to help you with all of your real estate needs.

Here’s the truth about home prices in San Diego real estate.

There's no denying that San Diego real estate is costly, and its prices are rising with increasing interest rates. The question arises: Is San Diego real estate overpriced? Let's delve into this discussion.

The term "overpriced" is subjective, as the value of something is determined by what someone is willing to pay for it. Considering this perspective, San Diego's home prices still offer a favorable deal compared to its neighboring cities like Los Angeles and Orange County, where real estate prices in Southern California are notoriously high.

San Diego has always been an expensive place to live due to its desirability, attracting people from far and wide. In the past, when the city had limited industries, the cost of living was even higher. However, the scenario is changing with the influx of more industries into the market.

“There's no denying that San Diego real estate is costly.”

Before the outbreak of COVID-19, San Diego was considered undervalued in terms of real estate. Looking at March 2020, it was undervalued by approximately 15% compared to the market. Of course, during the pandemic, the real estate market experienced significant fluctuations, but now it is gradually stabilizing. Moody's analysis of overpriced markets highlights that San Diego falls into the category of destination markets. However, unlike retirement areas or locations with limited industries, San Diego's stronger industry presence allows for a broader range of potential buyers.

When it comes to real estate, factors like supply, demand, and location play crucial roles. San Diego, with its desirable climate, proximity to coastal communities, and geographical boundaries, remains a hot spot. Its limited space for expansion due to the ocean, Mexico to the south, Camp Pendleton to the north, and mountains to the east ensures that real estate values will continue to remain high as the population increases. In contrast, other markets, particularly in the Midwest, have more room for continuous expansion and the ability to build more homes.

Considering all of these aspects, it can be said that while San Diego is undoubtedly expensive, it is not necessarily overpriced. It likely falls within a normalized market range. If you have further questions or want to discuss any other real estate topics, feel free to reach out at (619) 200-3236. I look forward to hearing from you!

Five important factors to consider when selecting a contractor.

In today's competitive real estate market, some homeowners are opting for extensive remodels instead of selling their homes. However, choosing the right contractor for your remodeling project is crucial. To help with this, I’m here to discuss a few crucial factors to consider when selecting a contractor.

1. Punctuality. Ensure that a contractor will show up on time to assess the scope of work and remain consistent throughout the project. Delays can be costly, especially if you have made arrangements to move out during the remodel. Promptness is crucial to avoid additional expenses such as renting another house in this expensive rental market.

2. Communication. Effective communication is vital during a remodeling project, as unexpected issues and changes will arise. Look for a contractor who communicates well and is responsive to your needs and concerns. Also, a contractor who keeps you informed and provides updates throughout the process will help alleviate stress and ensure a smoother remodeling experience.

“By focusing on these aspects, you can ensure your remodeling project is handled with professionalism and expertise.”

3. Access to equipment and a skilled workforce. It is important to hire a contractor who specializes in the specific scope of work you require, as they will have the expertise and resources to handle the project efficiently. Avoid contractors who may take on more than they can handle, leading to delays or subpar work.

4. Reputation and testimonials. Research the reputation of potential contractors before making a decision. Look for reviews from previous clients to gauge their reliability and quality of work. Choosing a reputable contractor will give you peace of mind and increase the likelihood of a successful outcome.

5. Customer service and integrity. A contractor who is committed to doing the job right, even if it means suggesting changes or corrections, demonstrates their professionalism and dedication to delivering a high-quality end result. Transparency and open communication are key indicators of a contractor's integrity.

Selecting the right contractor for your remodeling project is crucial for a successful and stress-free experience. By focusing on these aspects, you can make an informed decision and ensure your remodeling project is handled with professionalism and expertise. If you have any questions or need assistance with other things related to real estate, please don't hesitate to call me at (619) 200-3236. I hope to hear from you soon!