San Diego Real Estate Condos

Are you planning to sell or buy a home in San Diego Downtown? Take a moment to read and review this Market Update of San Diego Downtown for January 2010 to help you make the right choices.

The statistics for January 2009 shows that there were 13 properties for sale, while there are 11 properties for sale on January 2010. Looking into the average price of the properties for sale, it was $1,034,031 on January 2009 and dropped to $811,127 on January 2010. This is very good news for those who want to buy their San Diego Downtown property. For the buyers, the number of choices increased in January 2010 with 3 new properties listed for sale compares to the 1 new listing in January 2009.

This is truly a good time to purchase your San Diego Downtown home as all arrows point to yes! For an easy start to buying or selling your house, you may check our listings for fantastic offers.

For further information on any Downtown San Diego Condos contact:

Gregg Neuman

Gregg@sellSanDiego.com

1-800-221-2210

www.SellSanDiego.com

Park Place in San Diego downtown has San Diego bay views. That was all I needed to hear before I bought a condo at Park Place, and have been very happy with my San Diego Real Estate investment. I was looking for a modern condo in downtown San Diego with a bay view. No, let me put it bluntly, I was looking for a deal at Park Place! And I got it. When I read the description of Park Place on Gregg and Debbie Neuman's Real Estate website, I thought it might be out of my price range. Not at all, Park Place is one of the most affordable condos in San Diego with bay views! - Catherine Mosser

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A Good Inspection Will Help You Sell Your Downtown San Diego Condos

Whether you are moving into or moving out of your downtown San Diego condos, your inspection report is a tool that will be of great value to you. If you think about it, you have paid someone to do a fairly comprehensive diagnostic test on your downtown San Diego condos, and their results are yours to keep. This article is designed to educate both home buyers and potential sellers (and homeowners, too) on how to make sure their home inspection is used to their advantage.

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WHY DON'T SOME CONDOS SELL?

Many of San Diego's sellers often ask me why their homes don't sell. With over 27 years of experience and more than 5,000 closed sales in my career I have noted the following reasons homes don't sell.

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LOCATION

Unfortunately, one of the main reasons Downtown San Diego homes don't sell is often their location. Especially in a buyer's market a poorly located home will not sell. If it is too close to the freeway, impacted by railroad tracks or even located on a busy street it becomes more difficult to attract a buyer. The only thing that can be done to overcome a poor Downtown San Diego location is to attempt to compensate for the location by pricing it aggressively.

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FLOOR PLAN

Somehow in San Diego's Downtown Condominiums the developers seem to always have some challengingly designed floor plans in every building. These floor plans probably sold sight unseen when the San Diego real estate boom was in full swing, but now that the cycle has cooled these plans become more difficult to sell. The fault may be one of many reasons why floorplans are undesirable;

• poor view
• small secondary bedrooms
• too few assigned parking spaces

Again the only solution is to price the San Diego Condo low enough to overcome the design flaws.

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THE ASKING PRICE IS TOO HIGH

There is an old axiom in real estate about "location, location, location". Frankly as we discussed in the first section location is important, but the location and all other issues can be overcome by the real real estate axiom "price, price, price". There are many negative things that can occur from over-pricing.

• A property sits on the market too long gives buyers the impression that something is wrong with the property. 
• You lose buyers that should be looking at your home, but pass since they or their Realtor® don't find it because it is not located in the price range they are targeting.
• The longer a property languishes on the market the more apt the San Diego seller is to receive a "low-ball" offer, if any offer at all.  Also the more likely the seller is to sell it at a price lower than it is worth. Many sellers want to be able to "come down" when they get an offer, but you have to generate the offer before you can even come down.

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SAN DIEGO CONDO CONDITION

The majority of San Diego buyers want to purchase a condominium and not have to do any work at all. They want to turn the key and move in their belongings. Having a property listed that is in need of fixing greatly limits the number of buyers that are willing to purchase or look at the listing. Probably ten (10%) percent of buyers are looking for "fixer uppers" and those buyers anticipate buying your home at such a discount that they can fix it up and still make money themselves. Builders make model homes, car dealers wash and wax every car on the lot and so intelligent sellers also need to create a good first impression by staging the home, removing clutter and excess furniture, replacing soiled carpet and painting dingy walls.

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SELLING "AS-IS"

Most buyers regard "AS-IS" homes as too challenging to deal with. The seller may only mean that it needs carpet and paint and that the seller does not want to undertake those repairs, but to a buyer it screams out "cracked slab, damaged goods". These properties may often be a good deal for the right buyer, but advertising "AS-IS" is generally not a smart choice.

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THE LISTING AGENT SELECTED

Many Downtown San Diego real estate agents in the industry are known to other agents as "difficult agents". This often means that they do not return calls or they are slow to respond to offers or they keep a larger share of the commission and offer to the cooperating broker less than the customary three (3%) percent.

The best listing agents use numerous and aggressive marketing techniques. This is especially critical in a "down market". Websites such as www.realtor.com; www.zillow.com; and www.trulia.com are frequently visited by home buyers long before they ever contact an agent for assistance. Mailing to surrounding properties is often a great technique since many people have friends looking to move into the same condominium or neighborhood. Make sure your agent's company is connected to a relocation company with out-of-town buyers. Lastly do not  ever overlook that old standby the open house.

Read Also:  Prepare Your Downtown San Diego Condos For Sale

THE REAL ESTATE MARKET

Knowing the market you are in is critical to the success of selling your home.

• If you are in a seller's market, like San Diego experienced from 1998 until late 2005 you can be more aggressive since there is low inventory and more buyers which, in turn drives up prices.
• A buyer's market, such as we are experiencing in the San Diego Downtown Condominium marketplace, is just the opposite with more homes than buyers and lots of downward pressure on prices.
• Lastly a stable market, the most rare of all markets, is where there are an equal number of buyers and sellers and prices are generally stable.

Read Also:  Why Isn't Your Home Selling? : Downtown San Diego Condos

When interviewing for an agent find out what the average market time is for homes that are selling and when you reach that point revisit with your agent what they are doing to overcome any of the challenges and if they turn out to be the challenge make a change. 

Saving for the Down Payment For Your San Diego Homes

Saving funds for a down payment on your San Diego homes should be part of an overall program to get your finances in order prior to shopping for San Diego homes. This includes rounding up financial records, examining your spending habits, and setting a budget you can live with. Remember, too, that the down payment is not the only up-front expense. An allowance for closing costs should also be included in your savings budget.

How much is required?
The down payment is usually expressed as a percentage of the overall purchase price of the home, and varies depending on the lender, the type of financing and amount of money being lent. In the past, the typical down payment was 20%, but in recent years lenders have been willing to offer conventional financing with as little as 3% down. U.S. Government financing programs, such as those offered by the Dept. of Veterans Affairs (VA) or the Federal Housing Administration (FHA), also require minimal down payments.

Private mortgage insurance
Typically, if your down payment is less than 20% of the purchase price, lenders will require you to carry PMI, or private mortgage insurance. This insurance protects the lender in case of loan default, and usually involves an up-front payment at closing, as well as a monthly premium. However, once you have paid off 20% of the loan, you can request the policy be canceled. Some lenders cancel the premium automatically, while others require you to make a request in writing.

Gifts
If you are having trouble saving enough money, many lenders will allow you to use gift funds for the down payment-as well as for related closing costs. The gift may come from family, friends or other sources, but remember that lenders usually require a "gift letter" stating the gift doesn't have to be repaid. In addition, some lenders will also require you to pay at least a portion of the down payment with your own cash. Thus, if you plan to use gift money to purchase your house, ask your lender about their policies regarding gifts.

Earnest money
Buyers are usually required to deposit earnest money with the seller when they make an offer. If the offer is accepted, the earnest money is then credited towards the down payment. The amount varies widely depending on the seller and local custom, but be prepared from the outset to have funds earmarked for this purpose.

Don't forget closing costs
In addition to the down payment, you will also need to save for additional fees associated with the loan. Known as closing costs, these charges cover items such as title insurance, documentary stamps, loan origination fees, the survey, attorney's fees, etc. When you submit your loan application, lenders are required to supply you with a good faith estimate of your closing costs.

Some buyers are surprised by the amount of the closing costs, which can easily run into the thousands of dollars. Remember, though, that closing costs can be negotiated with the seller. For example, you may agree to pay the full asking price in exchange for the seller paying all the allowable closing costs.