Marketing in Santa Cruz, no matter what is being marketed, requires unique strategies. This is even more true when it comes to marketing real estate. The real estate market in that part of California is unique in that prices are high and continue to rise, but not due to a high demand from those who are currently living in the area. What is driving up these prices, and how does this fact affect the marketing process?
Wealthy individuals who do not live and work in the area are frequently the ones who purchase Santa Cruz real estate. Some purchase property to use as vacation homes, while others purchase property to use as a primary residence and then commute to their jobs. For this reason, local marketing efforts typically focus on reaching these wealthy potential buyers.
What does this mean for the person looking to sell property in this exquisite part of the world? First, those who are going to successfully sell property in this unique market need some expertise in marketing properties in this unique area. Marketing the property to the wrong target audience will cause it to sit without a buyer longer than necessary. Real estate in this part of California is hot, and carefully targeted marketing ensures a quick sale.
Santa Cruz marketing also requires the right tools. First, you need a clearly visible for sale sign, as well as signs pointing drivers to your property from main roads. Those who are in the market for a home in in this area often drive around the area to see what properties are available.
Clear signage is an essential marketing tool in this diverse area of windy mountain roads and tiny beach neighborhood streets. Along with a proper sign, sellers will want to have a flyer box with professional flyers highlighting the benefits of the home. Serious buyers who have the money for a property will want to leave with some information that they can use to help them make a decision.
When marking real estate in Santa Cruz, the seller must focus on increasing exposure to potential buyers. The internet is one way to increase exposure to property. The people who are shopping for property in this area are typically busy, so they often turn to the internet to do their house shopping.
Sellers need to work with realtors that can offer online listings, complete with descriptions and photos of the property. Magazine ads, newspaper ads, and ads in online classifieds are other ways to increase the amount of exposure to a property.
Finally, properly marketing a property in this eclectic market requires carefully setting the selling price. Properties that are priced too high, even in this highly desirable part of the country, will have a hard time selling. Some areas in Santa Cruz are more desirable than others, so knowing the real selling value of a property can be challenging.
On the other hand, houses that are priced too low will sell quickly, but the seller will lose potential profit on the sale. Working with a local, experienced marketing specialist, usually a Realtor who has expertise in this particular market, is one way to ensure that you set the best price for your property.
If you have ever driven by your dream Santa Cruz home, only to notice that it is vacant and there is a tag on the door, chances are you have driven by a home that has fallen subject to the city's strict building codes. People who renovate their homes outside of the boundaries of the city's building codes will have their homes red tagged. These homes may be available to you at a deep discount if you know how to buy red-tagged properties in Santa Cruz
Reasons for Red Tagging
Homes can be red tagged for a variety of reasons. One common reason is changing a portion of the home into an apartment to rent illegally. These homes are usually not available for sale, because all the homeowner has to do to make the property meet the building codes again is remove certain parts of the apartment, such as the kitchen or bathroom, to make it impossible for that part of the home to be rented again.
However, homes can also be red tagged because they are unsafe. For instance, if a home has serious structural damage, the city will red tag it and ask the owner to move until repairs can be made. The cost of these repairs will make it nearly impossible for most homeowners, and thus the homeowner will be forced to sell. Because of the circumstances, the owner will need to sell the home at a steep discount in order to find a buyer.
Red-Tagged Properties Bring Deep Discounts
Red-tagged properties are often intriguing to buyers because of the deep discounts they offer. Not only is the property discounted due to the cost of repairs, but it is also discounted further because financing is difficult to attain. The seller may have to discount the property enough so that a buyer could afford to pay cash for it. This can be a great way to get in to the highly popular Santa Cruz real estate market.
Buying Red-Tagged Properties
To buy a red-tagged property, you first need to find a realtor who has experience with these homes to help you find available properties and make offers on them. Then, you will need to find financing. This is the difficult part, because lenders view red-tagged properties as a high risk. If you cannot afford to make the necessary repairs, you will be forced to sell the property again shortly after buying it, and the lender will not make much money. You will probably have to choose a hard money lender and put a lot of money down on the property. These lenders will charge higher interest rates, but you can use the loan to get the property, make the repairs, and then refinance. The other option is to pay cash for the property if you can.
Keep in mind that some red-tagged properties may not be listed for sale, but they may be available. You can sometimes contact an owner of a red-tagged property with an offer and get a sale even before the property is offered for sale. Your realtor can help you make these offers.
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