Q3 Market Report - Sonoma County
Choosing the right realtor: questions to ask before you hire
A knowledgeable and experienced realtor can make a significant difference in your overall experience. To ensure you find the best fit for your real estate needs, here are some questions to ask potential realtors before hiring one.
1. What’s your experience in the local market?
Ask about their years in the business and how many transactions they’ve completed, especially in your target neighborhood.
Experience in your specific market can be a valuable asset.
2. What’s your business philosophy?
While there’s no right or wrong answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals match yours.
3. Are you a full-time realtor?
Some realtors work part-time or have other commitments.
While this doesn’t necessarily disqualify them, you would want to know how accessible and dedicated they will be during your real estate transaction.
4. What’s your marketing strategy for sellers?
Ask about how they plan to market your property, including online listings, open houses, and any unique tactics they may use to attract potential buyers.
5. How will you help me find the right property as a buyer?
For buyers, know how the realtor plans to help you find the right property.
Ask about their approach to searching for homes, scheduling viewings, and negotiating offers on your behalf.
6. Can you explain the process step-by-step?
A good realtor should be able to explain the buying or selling process in detail.
They should walk you through each step, from the initial consultation to closing, and answer any questions.
7. How will you keep me informed about the progress of my transaction?
The best answer here is a question. A realtor who pays close attention to the way you prefer to communicate and responds accordingly will make for the smoothest transaction.
8. What’s your approach to negotiation?
Negotiation skills are essential in real estate. Inquire about the realtor’s approach to negotiation and their track record in securing favorable deals for their clients.
9. Do you have any designations or certifications?
Real estate professionals have to undergo additional specialized training to obtain these distinctions.
Designations and certifications help define the skills that an agent can apply to your particular real estate needs.
10. What sets you apart from other realtors?
This question can help you understand the realtor’s unique strengths and value proposition.
Look for qualities and services that align with your specific needs.
In conclusion,
Choosing the right realtor is a significant decision that can impact the success of your real estate transaction.
By asking these questions, you can make an informed choice and work with a realtor who is best equipped, like Randy and me, to help you achieve your goals.
Additionally, we not only have the knowledge that comes with being a professional realtor and are highly adept at negotiating the best terms on behalf of our clients, but we also have a keen sense of neighborhoods, homes, and the people we are working with.
Also, unique homes require skillful marketing, through our local expertise and Sotheby’s International Realty’s interconnected global network of offices that are dedicated to the extraordinary.
Finally, we strive to provide the highest level of service and build lasting relationships with our clients. Randy and I can be there by your side, protecting the interests that you trust. Call us!
Navigating the Closing Process: A Guide for Homebuyers
The closing process is the final step in a real estate transaction. Although this process seems overwhelming, it can be a smooth experience with proper planning.
If you plan to purchase a property, we are here to provide insights about this process.
Closing Process Timeline
You may expect to close 30 to 45 days after the contract is signed. However, this timeframe can vary depending on different circumstances, such as mortgage approval and the complexity of the transaction.
The Escrow Process
You are officially in escrow once both parties have signed the purchase agreement. Escrow refers to a financial arrangement in which a third party, the escrow agent, holds the deposited earnest money.
The escrow process typically involves the following:
- Opening the escrow account
- Completing the inspection and repair requests
- Mortgage application and underwriting
- Appraisal
- Acquiring homeowners insurance and title insurance
- Loan approval
- Final walk-through
- Closing appointment
Is Earnest Money Refundable?
NAR, Earnest Money & Escrow Real Estate: There are several scenarios when a buyer could face forfeiting their earnest money. If a buyer waives contingencies, ignores timelines, or gets cold feet, it could mean losing the earnest money deposit.
When it comes to real estate, a case of buyer’s remorse could be even more painful than a lost deposit. To avoid both, ensure the home you’re bidding on is “the one.”
How Much Are Closing Costs?
Zillow: Buyer closing costs are usually between 2% to 5% of the home’s purchase price. For example, if the home costs $300,000, you might pay between $6,000 and $15,000 in closing costs.
A lot of factors impact how much you’ll pay in closing costs. For buyers, it depends on your loan program, the size of the loan, and individual lender practices. For sellers, it comes down to what you’ve negotiated in terms of concessions and agent commission.
Track Your Closing Costs
Be prepared and know who’s responsible for the fees and expenses at the closing table. We have prepared a worksheet to help you track your closing costs.
Homeowners Insurance
A homeowners insurance policy will protect you against certain losses and damage to your new home and is generally required by lenders before closing.
Moreover, some lenders will collect the money you owe for homeowners insurance as part of your monthly mortgage payment and place it in an escrow account, paying the insurer on your behalf when the bill is due.
Title Insurance
Title insurance protects your ownership right to your home; from fraudulent claims against your ownership and mistakes made in earlier sales.
Additionally, in some states, it is customary for the seller to purchase the policy on your behalf.
Final Walk-Through
Conduct a final walk-through of the property before closing. To guarantee that the house is in the same or better condition if you negotiated repairs after the home inspection.
Here’s a detailed list of what to check on your final walk-through.
Transfer of Ownership
Once all the documents are signed, funds are transferred, and the closing is complete, property ownership officially transfers to you.
Congratulations! At this point, you will receive the keys to your new home.
In Conclusion,
Preparation is vital; from gathering all necessary documentation to conducting a thorough home inspection.
Also, staying in close communication with your real estate agent and other parties involved will keep you updated on the progress.
Furthermore, we understand that the closing process can be daunting, and we are here to help you fill the gaps in your home-buying knowledge. Call us, and we will establish a plan to achieve your personal real estate goals.
Finally, best of luck on your journey, and may your new home bring you years of happiness and fulfillment!
Prepare for the Spring Real Estate Market 2023
As the flowers start to bloom, the real estate market is getting ready for one of the most active real estate seasons: spring. The spring real estate market can be very competitive, with more buyers and sellers entering the market. If you plan to buy or sell a home this season, it is important to be prepared.
Start preparing for the Spring Real Estate Market
Here are some tips to put you in the best position this season. Whether you are buying or selling a home, the spring market can be a great opportunity to achieve your real estate goals.
- Start planning early: The earlier you start planning, the better prepared you will be. If you are planning to sell your home, start decluttering and cleaning out your home. If you are planning to buy a home, start researching neighborhoods and determining your budget.
- Find a reputable real estate agent: A good real estate agent can help you navigate the competitive spring market. Look for agents like Randy and Heidi who are experienced, have a good track record of success in the local market, and know the local sales trends. Read more on About Us to get to know us.
- Get pre-approved for a mortgage: If you plan to buy a home, get pre-approved for a mortgage before you start house hunting. This will give you an advantage in a competitive market and show sellers that you are a serious buyer.
- Price your home correctly: If you are planning to sell your home, make sure you price it correctly. A real estate agent can help you determine the appropriate price based on comparable homes in your area and current market conditions.
- Make necessary repairs and improvements: If your home needs repairs or improvements, make them before listing your home. This can help your home sell faster and for a higher price.
- Stage your home: Staging your home can help it sell faster and for a higher price. Hire a professional or use online resources to stage your home and make it more appealing to buyers. Check out Home Staging Success for staging tips and tricks.
Homebuying Forecast
Michael Hyman, NAR Research Data Specialist, Housing Affordability Conditions Improved in January 2023 for the Third Consecutive Month, at the national level, housing affordability rose in January compared to the previous month, according to NAR’s Housing Affordability Index. Compared to the prior month, the monthly mortgage payment decreased by 3.3% while the median price of single-family homes declined by 2.4%, making home buying more affordable in January. The monthly mortgage payment decreased by $62 from last month.
Sonoma County Housing Market
Redfin: In February 2023, Sonoma County home prices were down 4.9% compared to last year, selling for a median price of $745K. On average, homes in Sonoma County sell after 48 days on the market compared to 29 days last year. There were 226 homes sold in February this year, down from 332 last year.
Work with experienced real estate agents
The real estate market is busy during the spring season as many houses are put up for sale. Unique homes require skillful marketing, and we can help you make your home stand out and be marketed effectively. If you are planning to enter the real estate market this season, give us a call!
Discovering The Communities in Sonoma County
Sonoma County is known for its natural beauty, diverse communities, and thriving real estate market. One of its highlights is its wine industry, with over 400 wineries producing world-class wines.
Aside from wine, it is also home to several charming cities and towns, each with its unique character. If you are looking to buy a home in Sonoma County, there are many great communities to choose from:
Petaluma
Nestled on the side of Sonoma Mountain, Petaluma is a small town with a historic downtown. With a history in the Gold Rush and many historic ties to a rich agricultural heritage, Petaluma is a town with the ranch’s work ethic and the artist’s culture.
It is now a hub for technology and innovation. Petaluma is where history, culture, and innovation find confluence and was also ranked No. 1 in Niche as the best place to live in Sonoma County.
Click here for active Petaluma listings.
Data Dive
| Key Facts | Petaluma |
| Population | 59,776 |
| Median household income | $100,379 |
| Median home value | $697,700 |
| Median rent | $2,144 |
| Avg. commute (mins.) | 31.3 |
Source: American Community Survey data. Medians are weighted based on the number of owner-occupied housing units, 2021 ACS 5-Year Estimates Data Profiles.
Sebastopol
Located only 52± miles north of urban San Francisco, Sebastopol has a small-town feel with culture beautifully mixed in. Only a 20± minute drive to the Pacific Ocean, this charming town is influenced by the natural scenery surrounding it and the artistic and agricultural endeavors throughout the area.
Furthermore, the rural areas directly outside Sebastopol are covered in luscious vineyards and productive orchards. Crops are celebrated through annual festivals such as the Apple Blossom Festival and the Gravenstein Apple Fair.
Sebastopol is a popular destination for those who value a slower pace of life.
Click here for active Sebastopol listings.
Data Dive
| Key Facts | Sebastopol |
| Population | 7,521 |
| Median household income | $89,679 |
| Median home value | $696,500 |
| Median rent | $1,555 |
| Avg. commute (mins.) | 25.9 |
Source: American Community Survey data. Medians are weighted based on the number of owner-occupied housing units, 2021 ACS 5-Year Estimates Data Profiles.
Healdsburg
Healdsburg is situated amidst the country’s three most important wine regions, giving this town accolades including a continuous award as one of the “Top 10 Smallest Towns in America.”
With the Russian River, Dry Creek, and Alexander Valley in the surrounding area, Healdsburg is yet another charming gateway to wine country.
Moreover, with its central plaza, from the 19th century, Healdsburg has an impeccable charm that is only rivaled by its mild climate and a strong sense of community.
Click here for active Healdsburg listings.
Data Dive
| Key Facts | Healdsburg |
| Population | 11,340 |
| Median household income | $94,375 |
| Median home value | $824,300 |
| Median rent | $1,942 |
| Avg. commute (mins.) | 21.3 |
Source: American Community Survey data. Medians are weighted based on the number of owner-occupied housing units, 2021 ACS 5-Year Estimates Data Profiles.
Santa Rosa
Being the largest city along the Northern California coast, Santa Rosa attracts the standard American amenities and artisan businesses that make Northern California unique. Located 55± miles north of San Francisco, this small city is the perfect gateway to Sonoma wine country.
The Mediterranean climate allows for the luxurious indoor-outdoor lifestyle enjoyed by residents and visitors and is also perfect weather for all the grapes grown in the area.
For all these reasons and more, the horticulturist Luther Burbank said of his home, “I firmly believe, from what I have seen, that this is the chosen spot of all this earth as far as Nature is concerned.”
Click here for active Santa Rosa listings.
Data Dive
| Key Facts | Santa Rosa |
| Population | 178,127 |
| Median household income | $84,823 |
| Median home value | $598,700 |
| Median rent | $1,837 |
| Avg. commute (mins.) | 23.2 |
Source: American Community Survey data. Medians are weighted based on the number of owner-occupied housing units, 2021 ACS 5-Year Estimates Data Profiles.
Forestville
Nestled 60± miles north of San Francisco, this small town has a long history of cultural richness. With the redwood forests to the west and the rolling hills speckled with prolific vineyards to the south, the natural beauty helps create the artistic energy emanating from Forestville.
With the town’s unofficial motto being “Forestville, The Good Life”, this idyllic local lives and breathes its self-adopted mantra.
In addition, with events such as the Forestville Youth Park Parade, eateries like the Russian River Pub, and innumerable outdoor opportunities, the sense of place and pride of the community in Forestville is felt by residents and day-trippers alike.
Click here for active Forestville listings.
Windsor
Windsor is a vibrant community that attracts visitors and residents alike. It offers visitors and residents a unique blend of outdoor recreation, cultural events, and fine wine.
The Foothill Regional Park, located just south of Windsor, features hiking trails, picnic areas, and a lake for fishing and swimming.
Whether you’re looking to explore the outdoors, relax with a glass of wine, or immerse yourself in the local arts scene, Windsor is the place to be.
Click here for active Windsor listings.
In conclusion,
These are just a few of the many communities that Sonoma County has to offer. Whether you’re a wine lover, foodie, nature enthusiast, or history buff, there’s plenty to enjoy. Consider these communities when searching for your dream home in this beautiful part of California.
Heidi and I are experts in Sonoma County as lifelong residents. We have hiked the trails, ridden our motorcycles up and down the roads, camped in the parks, attended festivals, shopped in the stores, and attended community meetings. Involvement in the community is our passion.
Additionally, we have worked in real estate for 45 years combined, bringing our love for this place to our craft to help you make a home here as we have in Northern California.
Learn more about what it is like living in a wine country.
We know Sonoma County; we know real estate. Call us, and we can help you reach your real estate goals.
Sonoma County First-time Home Buyer Loans in 2023
Purchasing a home can seem like a completely overwhelming endeavor. After all, it is one of the most significant investments you can make, with numerous steps and requirements.
However, various types of loans are available to Sonoma County first-time home buyers who require assistance.
First-time home buyer loans:
The average down payment for a house in California is between 15% and 20% of the purchase price. If you can afford this price, you can get a conventional loan with a low-interest rate.
However, there is some first-time home buyer who doesn’t have this much money saved for a down payment. Fortunately, there are mortgage plans that have a low-down payment:
VA loan: Sponsored by the Department of Veterans Affairs, VA Loans are open to veterans, reservists, active-duty personnel, and surviving spouses and are one of the only options available for zero down payment loans.
FHA loan: Backed by the Federal Housing Administration, FHA loans are open to anyone, and while they require a down payment, they can be as low as 3.5 percent. Drawbacks include a slower loan process and the need to pay mortgage insurance for FHA loans.
USDA loan: Organized by the U.S. Department of Agriculture as part of its Rural Development Guaranteed Housing Loan program. USDA offers financing with no down payment, lenient requirements, and competitive mortgage rates.
Conventional 97: With Fannie Mae, you may qualify to borrow up to 97% of the value of your home, leaving you with only 3% to cover your down payment. This type of loan requires a credit score of 620 and higher, and at least one of the borrowers must qualify as a first-time home buyer.
If you’re not sure which type of loan to get when buying your first home, your lender or realtor can help you find the right fit based on your finances, and your realtor can also guide you by discussing alternatives and developing a plan of action to achieve your personal real estate goals.
How to choose your realtor on your first home-buying:
When choosing a realtor, it’s essential to know how long they have been in residential real estate. Like most professions, experience is no guarantee of skill. However, a large portion of real estate is learned on the job. Randy and I bring 45 years of industry experience in residential, commercial, and land sales.
We are here to help you fill the gaps in your home-buying knowledge. The more familiar you are with the procedure, the less overwhelming it will be.
If you are considering becoming a homeowner in Sonoma County, we hope you’ll give us a call. There is never any obligation, of course—and the old saying is true in this case: it can’t hurt to ask!
Home Design Trends You Need to Know in 2023
The new year is upon us, signifying a time of change and new beginnings. Home design trends come in waves and now feels like the perfect time for a change.
If you are looking to buy a new home or make changes to your current one, you are probably curious about the design trends that will be popular in 2023.
Color of the year
According to The Psychology of Color in Spaces by Stoneside, color psychology focuses on color to create a specific atmosphere and mood. Hues are carefully chosen to invoke a certain emotional response in people and set a particular mood.
Furthermore, research into color theory has ascribed defined emotions to each hue, and it also takes into account various factors such as tint, saturation, and tone.
Moreover, if you have been thinking of repainting your walls, colors that bring warmth and coziness to the room are relevant in the year 2023.
However, this does not mean that you should avoid the darker hues entirely, as they will help you create a sleek and sophisticated space, so keep this in mind when designing your interior.
- Warm White
This color is neutral and has always been the safest pick. As a result, it allows you to use richer, brighter furniture or even go with the classic beige, which is the most versatile tone to create that warmth and calming effect.
- Desert Carnation
If you want to create a cozy and inviting atmosphere, use earth-tone colors because they promote a nature-friendly atmosphere that creates a sense of tranquility.
- Blue Arrow
“A shade that promotes balance within the home, merging cool tones of blue with a warm undertone.”
– Sue Kim, Valspar®
Dark Countertops
Dark countertops add character to your kitchen, giving it a dramatic look and strong appeal. This design can result in a refreshing, luxurious, and moody appearance.
Organized Space
Gena Kirk, Design expert in KB Home Design Studio says, “we’re seeing a lot less desire for open shelving—a very big trend for a long time—and glass front doors. We’re seeing customers who want to close things up and organize them well.”
Additionally, if you want to keep clutter at bay, invest in some furniture with hidden compartments to help you store your belongings without taking up any additional space in a room.
Minimalism
Minimalism has been a thing for some time and is here to stay. This interior design creates a simple and clean space that usually uses a monochromatic color scheme.
Kristin Hohenadel, Interior Design Expert, says that “minimalist design is about prioritizing the essentials. A minimalist building, object, or interior design is stripped to its core function, realized using limited materials, neutral colors, simple forms, and avoiding excess ornamentation to achieve a pure form of elegance.
Additionally, while the final expression of a minimalist design might appear effortlessly simple, as spare as a poem, and as clear as a bell, achieving this kind of powerful simplicity is anything but easy.”
In line with this, the overall takeaway from what design experts anticipate will emerge in 2023 is a functional, inviting, natural, and comfortable space.
If you are looking for ideas for a new kitchen, bedroom, living room, or other home space to remodel, this will hopefully help.
Finally, we wish you a happy new year! May it be filled with new adventures and good fortunes. We look forward to helping you with all your real estate needs in 2023. Give us a call!
Renting vs. Buying a Home: Which is Better?
Which is better? Should you rent or buy a home? Because it requires less capital, renting is frequently perceived as less expensive than purchasing a home. Buying a home, on the other hand, is an investment that increases your equity. Aside from these obvious factors, there are others to consider. To assist you in deciding whether to rent or buy, we have listed the pros and cons of each option in this article.
Deciding between renting or buying a home depends on your lifestyle and financial situation. Do you intend to temporarily live in the area, maintain flexibility and mobility, or save money for a down payment? Renting might be the ideal decision for you. At least for the time being.
Alternatively, if you want to build investment equity over time while also having the stability and freedom to change your living space, now is the best time to buy a home.
Furthermore, in most cases, purchasing a home may save you money. Because the interest on your home mortgage is tax deductible, you will save money on taxes. If you rent, your landlord gets the break. Also, the sooner you buy a home, the sooner you can begin building equity in an investment that you can use for retirement or other investment plans. Why pay the landlord’s mortgage when you can pay your own?
Finally, you would want to evaluate the real estate market. Heidi and I are very knowledgeable about current real estate trends and offer our clients exceptional expertise in assessing and securing an upcoming purchase in the current market. If you have a dream home that you can’t wait to build or are still not sure whether renting or buying is the best option for you, contact us and let us help you with our professional advice.
Questions to Ask Yourself Before Buying a Home
Purchasing a home is one of the most significant investments you can make. There are numerous factors to consider, it is important to know all of the facts first before making a decision. The overall housing situation is undoubtedly difficult, so there is no reason not to be cautious and thoughtful when approaching this topic. Before deciding on one to call your own, consider asking yourself these questions to make your future home-buying experience go more smoothly.
1. How much money have I set aside for a down payment?
The average down payment for a house in California is between 15% and 20% of the purchase price, but this can vary depending on your mortgage lender and financial situation.
Lenders will lend you hundreds of thousands, if not millions, of dollars when you buy a house. Buyers, in turn, contribute a portion of the purchase price to gain initial equity in the property. Each mortgage option, however, is distinct, and homebuyers must determine which financing options are best for them. More money put down at closing results in lower monthly mortgage payments and interest.
As a result, California residents thinking about buying real estate should create a budget and start saving for a down payment well in advance of making a decision.
2. Is my credit score high enough?
If buying a home is one of your financial goals, think about the role a good credit history plays in the process. Most mortgage loans require a minimum credit score, and some lenders may have stricter requirements for certain borrowers.
3. Do I have a steady income?
A stable job, consistent income, and a good credit score are the best indicators of readiness. Your family situation must also be taken into account.
4. What kind of home do I like?
Before purchasing, ensure that the property offers everything that you look for in a home. It is vital to consider learning about its neighborhood and have it thoroughly inspected as it is critical to understand what repairs the house may require.
5. Can I trust my agent?
The right real estate agent can make or break your home-buying experience, so find one that you can truly rely on. Your agent should be able to give you an honest assessment of a home’s value, as well as the pros and cons of its size, location, and condition.
In conclusion, purchasing a home can be overwhelming in a competitive market and stressful during the best of times. Although, understanding what you are getting into, knowing what is required of you, and finding the right real estate agent will help you reach your goal smoothly.
Do you think you’re ready to become a homeowner? Heidi and I bring a combined 45 years of industry experience in residential, commercial, and land sales. We strive to provide the highest level of service in all phases of the buying and selling process. If you’re looking for your next Sebastopol real estate investment, Heidi and I can be there to serve as your voice—as well as to offer our experience, guidance, and advice you can count on. Call us!
Some Sage Advice Shared by Buyer’s and Seller’s Agents
The dual nature of Sebastopol real estate agents is unlike most other professions. A medical doctor who is a family physician in the morning doesn’t switch hats and become a surgeon in the afternoon—any more than a lawyer who pleads in court for a defendant can decide to become a prosecuting attorney that afternoon.
On the other hand, Sebastopol Realtors® may begin any single day in negotiations representing a seller, then spend the afternoon escorting a buyer client through a series of Sebastopol home showings. I’m happy to say this isn’t evidence of a split personality disorder. It’s perfectly normal: the California real estate agent’s license I carry specifically permits me to perform as either a buyer’s or a seller’s agent. That’s noteworthy because each of the agencies carries distinct professional obligations.
The subject of the duality of being a real estate agent came to mind this week when I happened across an article on the topic of the 3 things you shouldn’t talk about with a seller’s agent. The author listed the 3 things: how much you like (or dislike) a house; the size of your budget; and (well, the last one wasn’t specifically what not to talk about)—just the advice to buyers to “let your agent do the talking.”
I can vouch for all three, but go it one further: the same real estate agent advice works for sellers, too. Your agent is there to expertly gather and dispense relevant information, at the same time preventing the divulging of any and everything that might weaken your side of the coming bargain. Doing so while maintaining a positive, upbeat tenor is an art—one that sharpens with practice. For sure it’s one place where there is no substitute for experience.
Whether your next Sebastopol real estate role will be as buyer or seller, Heidi and I can be there to serve as your voice—as well to offer our experience, guidance, and advice you can count on. Call us!