- Average Days on Market for a given zip code: The statewide average for the last 20 years is 53 days. When newly renovated properties that are appropriately priced are selling in less than 30 days, the market is hot.
- Ratio of median income to median home price: If mortgage expense is less than 41% of income, borrowers will qualify for most available loan products. We target zip codes where qualification ratio is below 41% based on the median income.
- Macroeconomic Market Factors: We track the Unsold Inventory Index, the First-Time Homebuyer Housing Affordability Index and Existing Home Sales.
Affordable Properties with the Right Property Parameters: After researching hundreds of zip codes in Southern California, we arrive at using the following property parameters:
- Individual Property Price: $150,000-$400,000
- Bed/Bath Count: 3-4 bedrooms, 1-2 bathrooms
- Lot Sizes: 6000-8000 sq. ft.
- Renovation: light to moderate (not to exceed $40,000)
- Geographical Regions:
- Los Angeles County
- Pasadena/Altadena
- San Gabriel Valley (San Dimas, La Verne)
- Eastern portion of Los Angeles County (West Covina, Diamond Bar)
- Inland Empire
- Temecula, Corona, Ontario and surrounding cities,
- Orange County
- Northeast portion (Anaheim, Santa Ana)
These parameters may be modified over time as the market conditions dictate, but the overall objective will remain the same--affordable properties that will sell quickly.
Comparitive Market Analysis (CMA): We use our own proprietary CMA methods and special software to make sure the property will sell for the projected price. Our comparative market analysis goes far beyond a traditional MLS comp analysis. We use two additional databases to achieve the maximum number of comps to review and we review more comps than many appraisers.
Proprietary Software: Our proprietary Discovery Software™ goes even further. After arriving at the absolute value of the property, we then compare the property to the housing stock in the surrounding area. In fact, We've received three patent pending status approvals for its unique analytical algorithms.
Progress
