One on One with Frank Hufnagel
By Gina Dostler
Laguna Board of Realtors hosts its first autumn open house this weekend. Frank Hufnagel, a broker for Surterre Properties and current president of the board, discusses the benefits this event creates for buyers looking for the right home in Laguna.
Q: Tell us about the event coming up.
A: It is the final push for the fall season and is a collaboration of local brokers hosting a city-wide open house event showcasing homes for sale in Laguna Beach. There will be approximately 50 to 60 open houses available to view this Saturday and Sunday from 1-4 p.m. Prospective buyers will be able to view a vast array of spectacular homes currently on the market for sale. A map and list are available inside the Coastal Real Estate Guide, which will detail property information along with locations and list prices. Over 250 gift bags will also be available with gift certificates and other items.
Q: Why hold this event now when spring is the traditional house buying push?
A: There’s a perception that a buying season exists. But last year’s fourth quarter was very strong and we have had good solid sales throughout the year. Granted, once you get into December and January, it is a little slower. But right now buyers are still active into Thanksgiving.
Q: Will realtors offer some special incentives as enticements?
A: Other than the gift bags, some listings have recently implemented price reductions, which will make the properties available to more potential buyers.
Q: Do open houses succeed in attracting potential buyers?
A: Yes. With over 90% of homebuyers beginning their property search on the internet, today’s buyer will search online to narrow their selection of homes to their top choices. The buyer can view a number of properties over the open house weekend, and then can engage their realtor to help evaluate the pros and cons of each, negotiate pricing and manage the complicated sales and escrow process. Our open house event will allow buyers to visit more homes at one time versus having to arrange showing appointments individually.
Q: Are open houses helpful to realtors for building relationships with future buyers?
A: Open houses are definitely a good way for buyers to find a real estate agent where it gives them a good opportunity to ask questions, whether they are buying or selling. And the same goes for the real estate agent. Open houses give them direct contact with potential homebuyers and sellers. It definitely opens doors for everyone.
Q: Do open houses spur sales in the surrounding area?
A: It certainly can. This weekend’s open house event is being promoted with additional advertising, which will increase buyer activity and interest. It also offers a convenient three-hour window for buyers to view properties on either Saturday or Sunday. Now, in lieu of scheduling and coordinating showing appointments to see multiple properties, buyers will be able to visit a lot of properties over just a few hours this weekend.
Q: Are you still seeing all cash buyers in the market?
A: Absolutely. Approximately one third of Laguna Beach real estate transactions are purchased with cash, and this trend has been on the rise since 2008. Since then, the loan/lending process has become increasingly difficult as more stringent underwriting and additional down payment requirements have made it challenging for today’s buyer to qualify for a loan. In today’s market cash is definitely king!
Q: How do buyers make selections in Laguna: is price alone the issue? Or style of house? Or by neighborhood?
A: Price point is usually the first determining factor. Once a price range is established, the buyer can narrow down the neighborhoods to shop. For instance, if your price point is $1.5 million, you certainly might want to view homes in Top of the World and where different styles of homes are available. A wonderful aspect of Laguna is its eclectic housing market where there are approximately 7,500 homes within the city and no two are the alike.
Q: Are you seeing an influx of buyers from China as is seen elsewhere in Southern California?
A: Not really. I’d say more Europeans are attracted to this city but the percentage is small. Buyers from China gravitate more towards Newport Coast and Irvine.
Q: There was a rash of high-end sales at mid-year. Has the stock market correction played a role in cooling that trend?
A: Over the last three or four months, the market has cooled down a bit. Prices are down slightly, approximately 7% of the median price from last year.
Q: Laguna recently lost one of its most iconic architects in Mark Singer. Like artwork, do properties associated with a prominent architect become more valuable after their death?
A: In respect to the family, I would rather not comment on that since he passed just recently.
Frank Hufnagel
Surterre Properties
President, Laguna Board of Realtors
1088 N. Coast Highway, Laguna Beach
949-444-8718
frank@surterreproperties.com
