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Homes for Sale in the Dana Estates Neighborhood of Concord

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What Are the Benefits and Costs of Owning vs. Renting?

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The age-old question that continues to plague homeowners and tenants alike: Is it better to rent or own? Current homeowners say own, but many disagree. A recent Lending Tree survey showed that 67% of current homeowners prefer owning to renting. Fifteen percent of homeowners believe their renting days were easier, while 18% are neutral.

So why aren’t all homeowners happy with owning? Several arguments dominate, but each side has its pros and cons.

Owning

Owning real estate–whether for living, working, or leasing–is an investment. And just like any investment, property ownership can be both difficult and incredibly rewarding.

Pros

The Aramco Group lenders make a few great points about the benefits of owning over renting. Some of the major points are as follows:

  • Equity building – as you pay off your principal, you are building a long-term financial investment that you will have if and when you ever want to sell
  • Fixed-rate payments – most mortgages are on fixed interest rates, meaning your payments will not increase year-to-year
  • Control – you have the power to modify and improve your property to suit your needs and the needs of your family
  • Stability – not only does building equity provide you with financial stability, but a house ties you to a specific location, where you can experience the long-term comfort of a neighborhood community

Cons

Owning a home comes with cautions, as the InCharge debt experts list alongside the pros:

  • Maintenance – you are responsible for the upkeep of your home, including routine maintenance and unexpected repairs
  • Cost – between mortgage payments, property taxes, HOA and emergency expenses, the costs can really pile up; most importantly, you must be able to afford a down payment
  • Long-term commitment – once you’re tied to your community–not to mention your mortgage–it can be extremely difficult to suddenly pick up and leave

Renting

For some people, renting is their only option. For others, renting may be more appealing than buying even when they have the means to buy.

Pros

The Fiscal Fizzle finance blog provides some great pointers on the benefits of renting over buying:

  • Flexibility – rental contracts usually come with a 12-month lease, but some are on a month-to-month basis, which gives you maximum flexibility to relocate as soon as you want
  • Cost – renting a home usually means cheaper monthly payments, in addition to having maintenance expenses covered by the landlord
  • Less risk – because renting is not an investment, there is nothing to lose if the market dips or the property depreciates

Cons

InCharge.org highlights key areas in which renting loses out to buying:

  • No equity – the major problem with renting is that you will have no equity to show for it, no matter how long you rent
  • Little control – you are at the mercy of increasing rental rates, contractual restrictions, and your landlord’s plans for the building
  • No tax incentives – unlike mortgages, the IRS does not provide tax exemptions for rental payments

Whichever side of the issue you find yourself on, just remember these few things about home ownership:

  • Not everyone is suited for home ownership
  • Home ownership requires a stable income and smart financing
  • Like any investment, home ownership can return long-term financial gain

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and ensure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

To reach Peter Maclennan please call 925.385.8798 or email at peter@maclennaninvestments.com.

Fire-Resistant Landscaping to Protect Your Home

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In a climate as dry as ours, wildfires pose a particularly dangerous threat to destroy our homes and property. In fact, the Dana Estates Neighborhood recently experienced a two-alarm fire in the open space along Highway 4:

This fire burned about 12 acres in one hour, though thankfully no people or structures were harmed. As fire season enters in full stride, it is more important than ever to take precautions and protect your home.

Follow these Cal Fire landscaping guidelines to help create a fire-resistant environment around your home:

Choose Fire-Resistant Plants

By choosing plants that are high in moisture and near the ground, you can slow the spread of fire across your yard. Plants like aloe and rose shrubs are both attractive and fire-resistant. But remember, fire-resistant does not mean fire-proof. Any plant is susceptible to be burned or damaged by fire, and does not guarantee to stop its spread.

Fire-resistant does not mean fire-proof. There are no fire-proof plants.“

Cal Fire

It is also important to carefully maintain any plants you already have that may produce high amounts of dry debris or litter. Trees like the Mexican fan palm or juniper are known to retain dead debris and are fire hazards.

To learn more about fire-resistant plants, check out this helpful guide to fire-resistant plants.

Create “Fuel Breaks”

According to the UCCE landscaping guide, it is important to create open spaces in your yard in which there is little or no fuel for fire to spread to your house. These open spaces are called fuel breaks.

You can create fuel breaks by spacing plants at a distance that prevents the fire’s spread. The recommended spacing distance is 10 feet between trees, and twice the shrub height for shrubs.

http://www.readyforwildfire.org/

Another way to create fuel breaks is by replacing large beds of bark mulch or dry grassy areas with decorative rocks. Not only does this provide a fuel break, but it will prove to be lower maintenance throughout the year.

Of course, not everyone wants to redesign their entire yard. It is important to remember that proper yard maintenance and awareness of your surroundings are the best protection against wildfire. Keep your trees trimmed, debris clear, and plants watered throughout the dry season and you will be better prepared in the unfortunate event of a fire.

For more real estate advice and market news, visit the Selling Dana Estates real estate blog. You can also contact Peter Maclennan at 925-385-8798 or by email at peter@maclennaninvestments.com.

The Price Is (not quite) Right

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A recent study shows that newly listed homes get 3.4 times more online views than homes with a price drop. This evidence supports the advice I regularly give to home buyers: pricing your home accurately the first time is vital to its success on the market.

Many buyers use online platforms for property research, and every one of those sites uses the number of page views as a key performance indicator (KPI) of interested buyers. The study conducted above showed that a new home receiving 100 page views on the first day it is listed would decrease to 51 views on day two, 25 views on day seven, 17 views on day 30, and so on.

For a price change on the same home, the numbers are significantly lower. There would be 29 page views on day one, 18 page views on day two, 15 views on day seven, and leveling out to 13 views on day 30.

This shows that far fewer home buyers are interested in homes that have changed in price than they are in newly listed, well-priced homes.

Another factor in a buyer’s decision is the number of days a home has been on the market. The longer a home sits on the market, the more suspicious a buyer may be that something is wrong with it. Combine this with a lack of interested buyers, despite multiple price drops, and it could be nearly impossible to sell.

Bottom line: Price your house appropriately the first time.

Use current market data to determine your asking price, even if the data suggests a lower value. Resist the urge to price your home too high and you may see multiple buyers competing for the home rather than watching it sit on the market for months.

Want to know what your home is worth? Get your free home valuation here, or contact Peter Maclennan at (945) 385-8798 or peter@maclennaninvestments.com.

Staging Your Home: What’s It Worth?

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Home staging is useful to help buyers visualize a place as their future home, and agents think it attracts better offers. Here’s what REALTORS are saying about the cost and value of home staging.

1. Staging helps buyers visualize a home as their own

As stated by celebrity staging expert Meridith Baer in a Realtor.com interview:

In some ways, [home] staging is a lot like screenwriting in that you are telling a story. You are creating an environment in which home buyers want to be the star.”

Baer is right. A fully furnished home feels like, well, home. And the security of feeling at home is an essential part of the buyer’s motivation to write an offer.

2. Staged homes spend less time on the market

Over half of listing agents say that a staged home sells faster, according to the graphic above. Meridith Baer says staged homes sell 88% faster than nonstaged homes. The point is, staged homes are more attractive, and they motivate buyers to place an offer for reasons mentioned above.

3. Staged homes sell for more

As the graphic states, 44% of agents say a staged home is a more valuable home. And again, Meridith Baer says staged homes sell for 20% more than nonstaged homes–a margin that may not be quite so high for everyone. But even if staging a home brings in 5-10% more on an offer, it would be well worthwhile.

Either way, a home becomes more desirable if a buyer can immediately envision herself living there. This is reflected by her confidence in buying, her promptness in making an offer, and ultimately the price she is willing to pay.

Which one of the photos below looks like a more valuable home? We’d choose the one on the right.

As you likely guessed, they are the exact same room, before and after staging.

What’s the cost?

The cost of staging a home depends on the size of the home and the length of time the home needs to be staged. Realtor.com estimates home staging to cost $500 to $600 per room per month, plus a fee for an initial design consultation. For three bedrooms, a kitchen and a living room, this would cost $2,500 to $3,000 for a month of staging (plenty of time for a well-marketed home in California).

Imagine you have a 3-bedroom home in the Dana Estates neighborhood listed at $600,000. If a buyer offers 1% over asking price due to the ambiance of the staging, this would mean an offer of $606,000. With this in perspective, the $3,000 you spent staging the home would have been worth it, as you have now earned a $6,000 higher offer. Imagine if the staging brings in 5% over asking price–that is an additional $30,000!

Thinking of Selling?

Many real estate agents recommend home staging, but there may be other factors to consider when making this decision. If you have questions about getting your home ready to go on the market, please contact Peter below or via phone @ 925.385.8798.

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Having a knowledgeable and experienced real estate broker on your side helps protect your interests and ensure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

To reach Peter Maclennan please call 925.385.8798 or email at peter@maclennaninvestments.com.

What NOT to Do When Buying a House

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Purchasing a home is one of the largest financial decisions that a family can make. Because of the size of the transaction, there are many complicated decisions that surround the purchase of a home, and many myths that inexperienced buyers may be prone to believe. Here are a few common myths and the truth behind them, according to Realtor.com

outdated homebuyer advice

1. Wait until spring

A thorough market analysis shows that the spring and summer seasons are the busiest in volume of house sales. For this reason, many buyers believe they must wait until spring or summer to look for a house so they will have a better chance of finding the best home at the best price.

The reality is that while there are more homes on the market in the spring and summer, there is also more competition for the homes. In other words, the busy season means more sellers AND buyers. Holding fast to the “wait until spring” rule may lead buyers to pass up a perfect fit in the winter or fall months.

Instead, buy when you find the right property that will meet your needs for today — and the next five to 10 years.”

Realtor.com

2. Wait for market prices to drop

Buyers may want to wait for the market to dip before they buy and continue to rent until the market changes. But the truth is that while home prices are high, rent is likely to be high as well, and nothing is saved by waiting to start building equity in a home.

Even when the market dips, buying a home is an incredibly large purchase and buyers must be certain they can afford a down payment, property taxes, and monthly mortgage payments. Rather than waiting for market prices to drop while paying monthly rent, buyers should wait until they find the right house at a price they can afford and then BUY IT.

3. Make a low offer so you have room to negotiate

This one makes sense in most situations. Offer lower than you’re willing to pay so when the seller makes a counter-offer, you’re still within budget.

But when it comes to buying a home, this can be a risky strategy, especially if you like the house. Not only does the seller have other offers from competing (and motivated) buyers, but they may want to close quickly and will not humor an unnecessary counter-offer. Instead, research houses in the area and base your offer on similar homes in the area.

It is important to know the local market in the area you wish to buy. How much are comparable homes selling for? How long do homes usually stay on the market? Be sure to find a real estate professional who can help you answer these and other questions.

San Francisco Metro Housing Market – Zillow HVI

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Recently, Zillow.com released the April 2019 housing market report for the San Francisco Metro. As one of the largest cities in the East Bay, Concord was highlighted in the report. The report is based upon the Zillow Home Value Index (ZHVI), which is the mid-point of estimated home values for the area.

Zillow housing market map
Zillow.com

ZHVI San Francisco Metro – PDF

Notable findings for Concord:

  • Home Value: $593,300
  • Change Year-over-Year: 1.5%
  • Rent: $2,751
  • Change YoY: 4.2%

Notable findings for Contra Costa County:

  • Home Value: $620,100
  • Change YoY: 1.6%
  • Rent: $2,800
  • Change YoY: 3.9%

As shown by the positive year-over-year change, home values and rent values are increasing in Concord and across Contra Costa County. Following the trend of the greater San Francisco Metro, property values in the East Bay continue to increase year-to-year.

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and ensure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

To reach Peter Maclennan please call 925.385.8798 or email at peter@maclennaninvestments.com.

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