Market Conditions in Burbank>Question Details

Cpa, Mba, Home Seller in Burbank, CA

With the Burbank inventory at 225, how many months sales is this? If I put my home on the market should I expect it to take 6 months to sell?

Asked by Cpa, Mba, Burbank, CA Thu Jun 17, 2010

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Daina Burness’ answer
I agree with all who have answered you. Price will tell and so will condition. If you price it right it will sell. Interest rates are still very low. Interview agents and ask them to show you the numbers and also ask them what are you may need to do to the home to maximize it's assets and minimize it's flaws. Make sure the numbers they use are not more than 3 months old and within a mile of your home.
0 votes Thank Flag Link Wed Jun 30, 2010
While the entire number of homes in an area is worth noting, the more important comparison is how many homes is your home going to be in direct competition with. Buyers will focus on the segment they can afford, so your home will be viewed by however many buyers are looking in that particular price range.

Having said that, in Burbank for the past couple of months, the average days on market is 63 days, so if your home is priced correctly you could be in escrow within a couple of months.

Price, location, condition, floorplan all influence a buyer's decision. It's important to have an agent that knows the market and can show you the area comparables and discuss why homes would or would not be in competition with your home.
Make sure you discuss the different pricing strategies that can be utilized in selling a home as each has it's pros and cons.
0 votes Thank Flag Link Wed Jun 23, 2010
CPA MBA,
To answer your question, it all depends upon price. If you price your home where it should be, then it will sell in a couple of weeks and close in a month or two. If your price is unreasonably high, it will sit on the market. Of the 64 sales recorded in May, about half a dozen were on the market for 6 months or more. Fourteen sold within the first two weeks. A full 25% of the homes currently available have been on the market for more than 6 months.

Right now, inventory for Burbank is climbing. That says there is going to be downward pressure on the market. So, suppose your home is really worth 500k in today's market. If you price it at 525k, you may not get any offers. Two months from now, your house is worth 480k but you drop your price to 499k. You are still not at market price. You are chasing a downward curve.

I had a client that would not listen to the price I told them they needed for their house. They ended up waiting a year and lost 70k. Many times a good real estate professional will not take a listing if the price is too high. Some less experienced agents will take the listing with the thought that they can get the seller to lower the price. This rarely happens. Then there are the really new agents that will take any listing, no matter how unreasonable.

So if you are really wanting to sell your home, hire a good real estate professional, price the property right based on comps, and even price it slightly below comps so you get multiple offers. This allows you to ask for "best and final" which will drive up the price a bit. Also, offer a full 6% commission. If you really want serious activity, offer 7% and give 4% to the buyers agent. That extra commission is a powerful motivator for buyers agents.

Please give me a call if you need help.

Tommy Lee DRE#01723594
323-821-2292
tommy.lee@dilbeck.com
0 votes Thank Flag Link Mon Jun 21, 2010
Yes, there are a lot of homes on the market and many are short sales or REOs, shadow inventory is not taken into account when the papers or Trulia or Realty Trac reports the # of homes on the market or in escrow or sold. If you'd like to know how many shadow inventory homes are in your area, I can give you that answer quickly.
I could let you know, for example how many homes in your zip code are 'shadow inventory' or within 2 -3 square miles, those would be the upcoming sales that would probably hurt the value of your home.

It will not take you 6mos to sell your house if you're well informed of what the area sales are & what truly is Fair Market Value. Buyers out there are frustrated with the length of time it can take to close on a short sale and are also frustrated w/ the condition of most REOs, the Standard Equity sales that come on the market, can actually obtain a more 'premium' price because buyers see it as a convenience & are happier about writing a contract on a house & being confident that they could actually move right in, in 40 days or less.

Email me directly if you'd like to know about the shadow inventory in your area or if you'd like a well researched opinion on what your fair market value is. If you are a CPA, I do have a question for you: About form 982 & whether any owners who short sold property are able to negotiate with the IRS to pay partial tax on their 'income' / amt. they were negative when the short sale closed. (for those who may not have qualified under the mortgage debt forgiveness act.

Again, email me directly as I won't check back on this same Trulia thread.

EmilyKnell1@yahoo.com
562-430-3053 cell
0 votes Thank Flag Link Sun Jun 20, 2010
Keep in mind that a lot of the inventory you see on the market may be short sale properties. These sit on the market while the property is in negotiations with the bank. This may take many many months. So while the property is on the market still technically, they may already have severals offers, or an offer they've submitted to the bank and may not even be showing any more. Also, a lot of overpriced homes sit on the market too, with unmotivated sellers.

It all depends on your situation, and how you motivated you are. If the property is priced right, and well-marketed, it should not take 6 months to sell. I would be happy to discuss with you further, and give you a complimentary Comparative Market Analysis (CMA) to give you a better idea of your home's current value and what you should expect to price it at. I also have some strategies I have used with success to help get you the best possible price for your property. Feel free to contact me at any time.

Richard Schulman
Keller Williams Realty
(310) 482-0173
schulmanrd@yahoo.com
0 votes Thank Flag Link Fri Jun 18, 2010
The Trulia data for June 9th shows Burbank with over 320 listings and the current sales rate is around 300, so my calculations show that it would take over 12 months to sell the properties. Over 6 months is often considered a buyer's market. So if somebody wants to sell at a reasonable price(willing buyer and seller, not under duress, FMV) they should resigned themselves to many months of unconvenience of having looky lu's coming through the house.
0 votes Thank Flag Link Fri Jun 18, 2010
The length of time for it to sell will be directly related to your asking price and the home's location and condition. You could sell it in one day if you ask a low enough price and it could stay listed for years if you are asking too much. My best advice is to figure out the lowest price you are willing to sell your home at and then compare that figure to a fair market value range for the home based on your home's actual condition and location. A real estate agent can help you find comparative properties that have recently sold and you can have them set up a search for active listings that are comparable to your home as well. If your competition is listed at a much lower price than you, those homes will probably tend to sell first. Good luck!
0 votes Thank Flag Link Thu Jun 17, 2010
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