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Homes for Sale in the Dana Estates Neighborhood of Concord

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What is contributing to the shortage in single-family home inventory?

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Have you noticed that homes are in short supply even though we are in the midst of a pandemic? 

JVM Lending published a great blog on the single-family home shortage last week. In the article he named the following as top reasons for low inventory:

  1. Sellers are reluctant to list during the pandemic,
  2. Demand is surging due to low mortgage rates,
  3. New construction in California is woefully lagging,
  4. Shifts in demographics – people are staying in their homes longer.

The Homebuying Gorillas

An additional reason touched on in the article for low inventory is the addition of Wall St. Money to the home purchase market place. Just this week, the largest home owner in America announced that they had raised another $1 Billion (with a B) to buy homes in suburban neighborhoods.

America’s Largest Landlord Adds $1 Billion for Its House Hunt WSJ.com

GlobeSt.com is forecasting that demand for single-family rental market will continue to grow. 

What is the Local Impact?

Doing an address search for the mailing address of Invitation Homes provided approximately 350 homes owned by the company in Contra Costa County.

Tricon American Homes, the second largest home rental company, appears to own over 230 homes in Contra Costa County.

Combined this is nearly 600 homes that we should not expect to sell anytime in the near future as the investment model of these two companies is for long-term cash flow. 

Bottom Line

What’s the conclusion we can draw from this? Housing inventory remains extremely low despite high demand and low interest rates.

Sellers can expect a properly price property to sell quickly.

Buyers should realize that the market is competitive and they should write a very strong offer.

If you are thinking of selling, now is a great time to capture equity and position yourself in cash for the next purchase. I would love to discuss this option with you.

Peter Maclennan
Real Estate Broker
925-385-8798
DRE #01801793

Does “Aging in Place” Make the Most Sense for Dana Estates Home Owners?

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Does “Aging in Place” Make the Most Sense? for Dana Estates Home Owners

The Dana Estates neighborhood in the 94519 zip code is home to residents from various stages of life.

A desire among many seniors is to “age in place.” According to the Senior Resource Guide, the term means,

“…that you will be remaining in your own home for the later years of your life; not moving into a smaller home, assisted living, or a retirement community etcetera.”

There is no doubt about it – there’s a comfort in staying in a home you’ve lived in for many years instead of moving to a totally new or unfamiliar environment. There is, however, new information that suggests this might not be the best option for everyone. The familiarity of your current home is the pro of aging in place, but the potential financial drawbacks to remodeling or renovating might actually be more costly than the long-term benefits.

A recent report from the Joint Center for Housing Studies of Harvard University (JCHS) titled Housing America’s Older Adults explained,

“Given their high homeownership rates, most older adults live in single-family homes. Of the 24 million homeowners age 65 and over, fully 80 percent lived in detached single-family units…The majority of these homes are now at least 40 years old and therefore may present maintenance challenges for their owners.”

If you’re in this spot, 40 years ago you may have had a growing family. For that reason, you probably purchased a 4-bedroom Colonial on a large piece of property in a child-friendly neighborhood. It was a great choice for your family, and you still love that home.

Today, your kids are likely grown and moved out, so you don’t need all of those bedrooms. Yard upkeep is probably very time consuming, too. You might be thinking about taking some equity out of your house and converting one of your bedrooms into a massive master bathroom, and maybe another room into an open-space reading nook. You might also be thinking about cutting back on lawn maintenance by installing a pool surrounded by beautiful paving stones.

It all sounds wonderful, doesn’t it? For the short term, you may really enjoy the new upgrades, but you’ll still have to climb those stairs, pay to heat and cool a home that’s larger than what you need, and continue fixing all the things that start to go wrong with a 40-year-old home.

Last month, in their Retirement Report, Kiplinger addressed the point,

“Renovations are just a part of what you need to make aging in place work for you. While it’s typically less expensive to remain in your home than to pay for assisted living, that doesn’t mean it’s a slam dunk to stay put. You’ll still have a long to-do list. Just one example: You need to plan ahead for how you will manage maintenance and care—for your home, and for yourself.”

So, at some point, the time may come when you decide to sell this house anyway. That can pose a big challenge if you’ve already taken cash value out of your home and used it to do the type of remodeling we mentioned above. Realistically, you may have inadvertently lowered the value of your home by doing things like reducing the number of bedrooms. The family moving into your neighborhood is probably similar to what your family was 40 years ago. They probably have young children, need the extra bedrooms, and may be nervous about the pool.

Bottom Line for Dana Estates

Before you spend the money to remodel or renovate your current house so you can age in place, let’s get together to determine if it is truly your best option. Making a move to a smaller home in the neighborhood might make the most sense.

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.

Search for the newest homes for sale in Concord by map (click the map below):

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Concord CA Real Estate Map Search

Get Ready for the Rainy Season | Dana Estates Real Estate

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Get Ready for the Rainy Season photo

Don’t get all wet. Prepare for the rainy season while it’s dry.

According to USClimateData.com, Concord, CA and Dana Estates average over 16 inches of rain per year. The majority of that rainfall arriving between November and March each year.

We know. The last thing you are thinking about at the summer barbecue is preparing for the stormy season. But it really is worth taking a look around your house during fair weather, because finding out you have a problem during inclement conditions is at best inconvenient and at worst very costly.

“An ounce of prevention is worth a pound of cure.”

Benjamin Franklin, 1736

Tips to Get Ready for Rainy Season

Check your rain gutters.
Clear them out and make sure they are in good working order to prevent damage to the roof or house.

Look at your roof.
If you see loose or damaged shingles, get them repaired. Look for tears and buckling on flashing. Check the chimney and look for damaged bricks, cap or cracked joints. Don’t forget the flashing there too.

Check indoors for signs of roof leaks.
Look for discoloration and peeling paint on ceilings and walls. Check in the attic for damp rafters.

Check the trees.
Trim back branches and cut sections that could fall in a rainstorm.

Check doors and windows.
Make sure there are properly insulated with weather stripping.

Look for water collecting at the base of the house.
Redirect water with trenches or drains away from the foundation of your home.

Keep sandbags on hand.
If your area is prone to flooding, keep them filled and at the ready.

Check for erosion.
This is important if you live near a hillside. Shore hillsides up if necessary.

If I can connect you to a professional to assist with any of these tasks, please reach out to me.

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

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.

Search for the newest homes for sale in Concord by map (click the map below):

homes for sale in concord ca
Concord CA Real Estate Map Search

Vacant vs. Occupied: What You Need to Know Before You List Your Home

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It’s time to sell your home. You have your eye on an attractive new home in that lovely neighborhood and you can’t wait to get out of your old place. But if you rush out of your old home before it’s sold, you could be losing out on thousands of dollars.

But why?

The numbers speak for themselves: vacant homes simply don’t sell as well as occupied homes. According to the CAR.org graphic below, vacant homes sell for $11,036 less, and remain on the market an average of six days longer than occupied homes.

https://car.org

Of course, there are pros and cons to selling either way. For instance, a vacant home is easier to show; buyers’ agents can show the house any time of day without worrying about disturbing the occupants. As well, an occupied home must be kept clean and presentable for prospective buyers. Nonetheless, occupied homes continue to sell for more than vacant homes, and often appeal more to buyers due to their cozy, lived-in atmosphere.

Unable to sell before you move out? Have no fear, a professionally staged home can look just as lively and welcoming as a lived-in home if you’re willing to pay the staging fee.

Bottom Line: “Think before you move (out)”

You will certainly be best served if you consult a real estate professional before listing your home or buying a new home.

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.

Every Real Estate Broker’s 7 Most Important Jobs

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Selling a home is so easy, you can do it with a few clicks online and just wait for the offers to come in. Right?

Not exactly.

When it comes to listing your home for sale, you want to be sure it is done right in order to attract the highest offer possible. This is where full-service brokers come in. Most brokers have tested marketing strategies and networks to ensure a property gets the best exposure to the right buyers.

So what makes a full-service broker worth their commission? Here are the seven most important duties of a real estate broker.

Every real estate broker's 7 most important jobs

Jobs of a real estate broker include:

  • Property Valuation
  • Consultation
  • Photography & Staging
  • Signage
  • MLS Input
  • Tour Coordination
  • Negotiation

1. Property Valuation

Once a real estate agent has signed a listing contract (under the license of a broker), the first step in the listing process is to determine the value of the property. The agent will run a comparative market analysis to examine recent sales of similar properties in the area. Based on the sale price of these homes, the agent will determine the fair market value (FMV) of the client’s home and take into consideration the home’s condition, specific location, recent updates and amenities to recommend an market price to the seller.

Setting the initial list price is a key component of maximizing the marketing exposure for a property.

2. Consultation

One of the ongoing duties of a real estate broker is client consultation. As long as the broker is bound to the listing contract, they are required to represent the client’s best interests. This means the broker must provide candid expert advice at every step of the transaction; this includes explaining important documents to the seller and ensuring legal compliance throughout the entire sale process.

Real Estate Broker Listing Process Infographic
Click to open in new tab

3. Photography & Staging

Most real estate brokers either have in-house professionals or a reliable network of photographers and home staging experts who help make a home look its absolute best to potential buyers. The broker will arrange these services according to the seller’s wishes, though experts agree that professional photography and home staging are well worth the cost.

4. Signage

This seems like an obvious part of selling a home, but only because it is crucial to gaining exposure. Brokers will place a “For Sale” sign in front of the house, and they will also create attractive property flyers to distribute to buyers or agents who may be interested. These marketing materials not only provide visibility; a professional sign and high-quality flyers show buyers that the seller should be taken seriously.

5. MLS Input

Once a property has been staged, photographed and priced, it is time to list it for sale on a multiple listing service (MLS). An MLS is a regional online network used by real estate brokers to exchange property information, give showing instructions, and contact other brokers to buy and sell properties.

As soon as property information and photographs are added to the MLS, the real estate community is notified that the property is for sale. Because this network is the primary means of targeted exposure and is only accessible by licensed brokers, the MLS may be the most valuable tool in a broker’s arsenal.

6. Tour Coordination

When other brokers are notified that a property is on the market, it is the responsibility of the listing broker to coordinate tours for prospective buyers. This includes touring individual families as well as holding open houses.

While not all home sales require an open house, most will greatly benefit from a public open house for interested buyers to see the home in person. Most are familiar with these open houses, but a listing broker may also choose to hold a broker tour for the brokers who are representing buyers. At both open houses, the listing broker will be present to guide buyers through the house and answer questions they have about the property.

7. Negotiation

Possibly the most overlooked duty of a real estate broker is the negotiation of offers and contract terms. When buyers submit offers to the listing broker, the broker will confidentially disclose the offers to the client. If applicable, the broker will then submit a counter-offer on the client’s behalf, so as to get the best possible price for the home. Due to the broker’s required experience and knowledge, they are often able to sell the home for more than the initial offer amount. Once the broker has negotiated an acceptable price and terms, the client will accept the offer and the property enters the contract period.

A Broker’s Role

Think of it this way: The broker is like your airplane pilot. The contract is like your flight. Once the plane is in the air, it’s not difficult to fly. The route is predetermined and the autopilot can do most of the work.

But taking off and landing are much more difficult, and you would certainly want an experienced professional in the cockpit if something went wrong while you were in the air.

Your real estate broker guides you through the takeoff (entering the contract period), landing (close of escrow), and any turbulence (repairs, inspections, etc.) you didn’t expect on your journey so that you land safely and on time with your belongings intact.”

As you can see, selling a home is an intricate process that can take months to finalize. While it is possible to sell your home on your own, most homeowners realize it’s worthwhile to work with a full-service real estate broker. This saves time, money, and worry on the part of the seller.

Peter Maclennan is a licensed real estate broker serving clients in and around Contra Costa County. If you are considering selling your home, Peter will provide FREE consultation and home valuation. To reach him, send an email to peter@maclennaninvestments.com or call 925-385-8798.

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.

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.

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.

2018-2019 Dana Estates Housing Market Report

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This year has been off to a great start, with lots of activity in and around Concord. Most notably, progress has been made with regards to the Naval Weapons Station. Master developer Lennar will be implementing a city park and youth recreation complex at the site, in addition to retail space and single-family residencies. You can read more about the Specific Plan from the Concord City website.

In the real estate market, the last 16 months have been active as well. Last year we saw 56 Dana Estates homes sold, with a median sale price of $615,000. Homes are selling over list price, with the average home selling at +0.77% over list price.

Smaller homes are selling just as well as larger homes. Two- and three-bedroom homes are selling at +0.90% over list price, compared to four-bedroom homes at +0.55%.

In the Dana Estates neighborhood, the 2018 median sale price for 2-3 BR homes was $589,950 and the median sale price for 4 BR homes was $650,000.

As shown by the chart below, December had the highest number of homes sold in Dana Estates, though the average sale price remained relatively consistent year-round.

Homes sold quickly in 2018, with the median days on market (DOM) at 14; that means most homes are in contract just two weeks from the day they are listed.

This year shows a more impressive number of homes sold, with 21 sold in the first four months. The median sale price is down on all homes, but properties continue to sell at nearly 1% over list price. The DOM is down to a median eight (8) days.

As you have seen, property in Dana Estates continues to be in demand, and it remains a seller’s market as there is more competition to buy houses than to sell.

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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