Q. Tom, we are seriously considering buying a home here in the Diablo Valley but are hesitating because real estate values may drop more. We left the Phoenix/Scottsdale area 18 months ago when my job ‘moved here’–I know home prices in the desert are still dropping significantly. Should we wait out the market here a bit longer?
I know Arizona home values got spanked real hard, no doubt about it. However, you have already answered part of your question above – your job ‘moved’ here to the Bay area. And that’s what it is all about—jobs! The Bay area job market appears in many ways to be getting stronger; also, unemployment benefit claims nationwide decreased last month. Those are positive indicators that the economy is improving. Jobs give people the confidence to buy homes and the stronger job market in the Bay area continues to fuel demand for homes in many communities. My advice regarding “timing the market” is, don’t be greedy. By waiting, you may miss a fleeting opportunity to find a home at a great price and a fixed rate mortgage near 5%; neither can stay at these incredibly low levels forever. As always, I recommend that you hire a full-time professional real estate agent with skills and knowledge that will serve you well.
Q. I plan to sell my condominium in San Francisco this spring and then buy a family-sized home in the I-680 corridor. My long-time real estate agent here in the City will handle the sale of my current home; however, she also has asked if she can ‘refer’ me to a professional agent in the area where I intend to buy. Can you explain why it is in my best interest for my SF agent to formally refer me to another agent?
Great question! There are actually several reasons – first, your current agent in San Francisco wants to insure that you get the best possible representation when you purchase so introducing you to a professional Realtor is a natural extension of her service. Second, your SF agent will no doubt be coordinating the timing of your condo sale and vacancy with the closing and possession date of your new home … the better the rapport between the two agents, the more seamless the transition will be for you and your family. Third, referring clients in exchange for a referral fee is standard business in the real estate industry; in your case, in exchange for introducing you to a great agent in the I-680 corridor, that Realtor will pay your SF agent a referral fee of typically 25% of the buyer’s agent gross commission upon the successful closing. It costs you nothing and the new agent is happy to pay the fee in exchange for getting you as a new client.
Q. Dear ALIVE Magazine Reader, this is my question to you! Is this monthly real estate Q&A column interesting and beneficial to you? I would love to get additional feedback from you regarding its content and overall value. The following are your 1 & 2 options regarding a reply:
- Email tom@tomhart.com just to let me know you read the column monthly
(I promise your email address will not be distributed or utilized in any way.) - Email tom@tomhart.com with comments and/or opt to receive my monthly email newsletter to stay up to date on Diablo Valley real estate market trends & statistics.
You can contact Tom at 925-355-1187 or tom@tomhart.com
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