The Best and Worst Times to Sell or Buy a House in 2024

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One of the most common questions in real estate is: When is the best and worst time to sell or buy a house? The answer is complex, influenced by location, market conditions, personal preferences, and goals. However, there are general trends and patterns that can guide you in making an informed decision. Let’s explore the best and worst times to sell or buy a house in 2024, based on historical data, expert opinions, and future projections.

Best Time to Sell: Spring 

Spring is the Peak Season for Sellers

According to Zillow, the best month to sell a house in the US is May, with an average premium of 5.9% over the median sale price. Here’s why spring is advantageous:

– High Demand: Home buyers are eager to find their dream home before summer.

– Favorable Weather: Longer days and better weather enhance curb appeal.

– Family Moves: Families prefer to move during this time to settle before the next school year starts.

 

Location-Specific Considerations

The ideal time to sell can vary based on location and property type:

– Ski Resorts: Winter may be better for selling properties in ski resorts.

– Beach Houses: Summer might attract more buyers for beachfront properties.

 

Worst Time to Sell: Winter 2024

Winter is the Slowest Season for Sellers

Zillow reports that December is the worst month to sell a house in the US, with an average discount of 3.3% below the median sale price. Here’s why winter poses challenges:

– Low Buyer Motivation: Fewer buyers are willing to move during holidays and cold weather.

– Less Curb Appeal: Dull landscapes and shorter days can make homes less attractive.

– Holiday Distractions: Potential buyers are often preoccupied with holiday plans.

 

Exceptions to Consider

Certain properties might still perform well in winter:

– Cozy Cabins: Winter can be a good time to sell a cozy cabin or holiday home.

 

Best Time to Buy: Fall 2024

Fall is the Optimal Season for Buyers

According to Realtor.com, October is the best month to buy a house in the US, with an average discount of 6.1% below the median listing price. Here’s why fall is beneficial:

– Seller Flexibility: Sellers are more willing to negotiate and lower prices after the summer rush.

– Increased Inventory: More options are available with less competition.

– Better Deals: Buyers can take their time to compare and find the best deals.

 

Location and Property Type Factors

The best time to buy can vary based on specific circumstances:

– College Towns: Avoid fall if buying in college towns due to higher demand.

– Tourist Destinations: Prices may still be high in popular tourist areas.

Worst Time to Buy: Spring 2024

Spring is the Toughest Season for Buyers

Realtor.com indicates that April is the worst month to buy a house in the US, with an average premium of 4.1% above the median listing price. Here’s why spring is challenging:

– High Seller Confidence: Sellers are less flexible with pricing.

– Limited Inventory: More competition among buyers leads to bidding wars.

– Market Frenzy: The peak selling season results in higher prices and more pressure.

 

Potential Exceptions

In some markets, spring might still offer good opportunities:

– Rural Areas: Lower supply and demand can make spring a viable time to buy.

– Niche Markets: Specialized markets may not follow general trends.

Understanding the best and worst times to buy or sell a house can help you make more informed decisions in the real estate market. While these general trends provide a helpful starting point, always consider local market conditions, your personal circumstances, and specific property types. At Real Property Management Select, we are here to help you navigate the real estate landscape and make the best choices for your needs.

Stay updated with us for more insights and tips on managing your real estate investments effectively.

Navigating Insurance Challenges in Sacramento

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California’s rental housing owners are facing unprecedented insurance challenges due to significant shifts in the insurance market. These changes include reduced availability of insurance options and increased premiums. According to the California Apartment Association (CAA), understanding these complexities is crucial for navigating this turbulent environment.

The Challenges

Several notable challenges in the California insurance marketplace include:

Natural Disasters: Extreme weather events cause severe property damage. The frequency and severity of these catastrophes continue to rise, with global insured losses from natural disasters expected to exceed $100 billion.

Inflation: Inflation has significantly impacted commercial and personal property insurance, leading to higher premiums and claims expenses. It has also increased property replacement cost valuations.

Reinsurance Capacity Challenges: As natural disasters become more severe and inflation remains high, property reinsurers face increased claims and reduced profitability. This has led some reinsurers to reduce capacity for catastrophic exposures and increase primary insurers’ premiums.

Multiple Agents: Limited carriers and the need for creative shopping can lead to multiple agents working on the same location(s), potentially blocking each other from carriers. Agent selection is crucial in this market to avoid inadvertent blocking.

Broker of Record Letters: A “broker of record” (BOR) letter designates a specific broker as the official representative of the insured for a particular policy or set of policies. Once signed, this letter can prevent other brokers from negotiating or placing coverage with insurers, limiting the insured’s options.

Strategic Steps for Landlords

Despite these challenges, rental housing owners can take strategic steps to protect their interests:

Maintain Property Conditions: Keep your property in good condition and promptly address building issues. Provide all relevant loss control documentation, safety upgrades, and mitigation strategies to your agent when shopping.

Work with a Knowledgeable Broker: Choose a broker who can navigate this insurance environment successfully and explain the implications of signing a BOR letter.

Analyze Catastrophe Exposure: Implement adequate mitigation and response measures if your property is located in a disaster-prone area.

Insure to Value: Review the replacement cost of your property. Inflation necessitates higher replacement cost valuations. Ignoring this could result in a coinsurance penalty at the time of loss. Consider the deductible amount you are comfortable with.

Start Early: Begin the process early, as most insurance carriers start accepting new business submissions 90 days before the current effective date. Provide your information early to increase your chances of receiving a quality quote.

 

Navigating the current insurance crisis requires rental housing owners to be informed and strategic. By understanding market dynamics and potential pitfalls, you can make more informed decisions and better safeguard your properties. Real Property Management Select is here to keep you updated through these challenging times, ensuring you have the resources and guidance needed to secure the best possible coverage.

 

Disclaimer: Information used for quotation purposes ONLY and does not contemplate coverage bound.

Top 10 Reasons Homeowners in Sacramento Love Our Property Management Service

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Owning a rental property can be a rewarding investment, but managing it can come with its own set of challenges. At Real Property Management Select, we pride ourselves on offering services that alleviate these challenges and enhance the homeowner experience. Here are the top 10 reasons why homeowners in Sacramento love our property management service:

  1. Comprehensive Tenant Screening

Finding reliable tenants is crucial for a successful rental property. Our thorough screening process includes background checks, credit assessments, and employment verification to ensure you get the best tenants. This helps minimize risks and ensures consistent rental income.

  1. Effective Marketing and Advertising

We leverage our expertise in digital marketing to advertise your property across multiple platforms, including major rental websites, social media, and our website. Our strategies are designed to attract high-quality tenants quickly.

  1. Responsive Maintenance and Repairs

We understand that timely maintenance and repairs are essential for tenant satisfaction and property value. Our network of trusted vendors allows us to address issues promptly, keeping your property in top condition and your tenants happy.

  1. Transparent Financial Reporting

Stay informed about your property’s financial performance with our detailed monthly statements and annual summaries. We provide easy-to-read reports that include income, expenses, and maintenance costs, so you always know where your money is going.

  1. Proactive Property Inspections

Regular inspections are key to maintaining your property’s condition and identifying potential issues before they become costly problems. Our team conducts thorough inspections and provides detailed reports to keep you informed.

  1. Legal Compliance and Risk Management

Navigating the complex landscape of rental laws can be daunting. Our team stays up-to-date with local, state, and federal regulations to ensure your property is compliant. We handle all legal aspects, including lease agreements, eviction procedures, and security deposit management, reducing your risk of legal disputes.

  1. Personalized Customer Service

At Real Property Management Select, we believe in building strong relationships with our clients. Our personalized approach means you’ll have a dedicated property manager who understands your needs and goals, providing you with tailored solutions and peace of mind.

  1. Maximized Rental Income

We use market analysis tools to set the optimal rental price for your property, ensuring competitive rates that maximize your income while keeping vacancy rates low. Our dynamic pricing strategy adjusts to market conditions, helping you get the most out of your investment.

  1. Stress-Free Rent Collection

Collecting rent on time can be a hassle. Our automated systems ensure timely rent collection and disbursement, providing you with consistent cash flow. We also handle late payments and enforce lease terms, so you don’t have to.

  1. 24/7 Emergency Support

Emergencies can happen at any time. Our 24/7 emergency support line ensures that urgent issues are addressed immediately, minimizing potential damage and ensuring tenant safety and satisfaction.

Choosing Real Property Management Select means choosing a partner dedicated to the success and well-being of your rental property. Our comprehensive services and commitment to excellence make us the preferred choice for homeowners in Sacramento.

New Law Limiting Security Deposits in Effect as of July 1, 2024, Sacramento

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As of today, July 1, a new California law limiting security deposits to one month’s rent for both furnished and unfurnished units is now in effect. According to Mike Nemeth, Marketing and Communications Director for the California Apartment Association (CAA), this legislation, AB 12 by Assemblyman Matt Haney, D-San Francisco, was signed into law by Gov. Gavin Newsom in October 2023.

Previously, landlords could charge up to two months’ rent for an unfurnished unit and three months’ rent for a furnished one, except for tenants who were service members. The new law marks a significant change from these previous regulations.

The legislation includes an exception for certain small landlords. Property owners with no more than two residential rental properties, collectively including no more than four dwelling units offered for rent, may still collect up to two months’ rent as a security deposit. To qualify for this exception, the owner must hold the property as a natural person, a limited liability company (in which all members are natural persons), or as a family trust. This small-landlord exception does not apply when the tenant is a military service member.

“It’s crucial for landlords across California to understand and comply with these updated security deposit regulations,” said Whitney Prout, Executive Vice President of Legal Affairs for the California Apartment Association. “We strongly encourage all CAA members to review our updated security deposits background paper, which reflects the changes brought by AB 12. This resource is designed to help our members navigate this significant change and ensure they’re operating within the bounds of the new law.”

Stay updated with us on the latest regulatory changes and best practices in property management to ensure you’re always compliant.