This is one of the best times in the real estate market – as the days get longer and things get warmer, more and more people are motivated to sell their homes while at the same time others are excited about finding the perfect dream home. What is happening in today’s real estate market? To get an idea of what you can expect in the coming weeks and months ahead – we have put together some information about our local marketplace. Whether you are a buyer or a seller now is a great time to get involved and achieve your real estate goals!
Buyers Still Enjoying Record Low Interest Rates
Though we have begun coming up from the super low interest rates of just a few months ago those rates are still at record-setting lows. What this means for buyers is that they can get into much better homes for the same monthly payment as a smaller one just a few years ago when rates were much higher. Hovering at around 4%, the cost of a mortgage is one of the greatest benefits and incentives for buyers to buy now.
Home prices also remain very low. They have come up a bit in the past several months, but like interest rates, they are still lower than they have been in a very long time. But if you want to find the perfect home, there may be little time as there will be more and more competition as the months go by.
Multiple Offers Provide Sellers More Leverage
For the first time in a while sellers are beginning to see the market shifting in their favor. Especially during the warmer months and the busiest real estate season of the year, sellers will be receiving multiple offers on their homes. This is especially true for homes that are priced right, in great condition and presented well.
It is essential to hire the right agent to get the job done so together with your agent you can formulate a game plan and work to achieve your goals. At a time when buyers are savvier than ever, it becomes vital to price your home effectively. In fact, we strongly suggest working with us to pull your area’s comparable sales to make sure you know your competition and price your property accordingly.
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As we continue onward, we are expecting the market to show its true colors – something that has been a long time coming after some of the more volatile times we seem to be crossing over. One of the greatest things we are thankful for is our clients’ trust in us and their referrals. Than
A special thanks to Home At Last Decor for participating in this week's blog. Visit their website for more information! www.homeatlastdecor.com
One of the easiest ways to prepare a home for sale is by having it staged by professional home stager or interior decorator. Home staging simply means that you're decorating in a way that will show off the best features of a home. Many sellers don't realize the huge impact that home staging can have on how quickly their home sells and for how much.
One thing you have to realize as the home seller is that staging does not always create an effect that matches the way you would normally live. Instead, the house actually becomes like a product. A home stager will take your home and turn it into a marketable product that buyers want.
In this week's video, I had a professional home stager take over the challenge of staging a home office to present well for buyers. The goal was to make buyers feel like they could move right into the home and utilize the home office area. We wanted it to be inviting, yet functional.
Here are some tips to use when staging a home office, or any area in your home:
- Depersonalize: It's very important to depersonalize your home office and the rest of your home. The main idea is that you want the buyer to see themselves in your home and not be hung up on all of your personal things. This would include removing things like your personal sports team preferences, family photos and even books that refer to your own opinions such as political or religious texts.
- De-clutter: It's very important to de-clutter your home office area by putting up paperwork and other unnecessary items. Remember that you don't want people to look at your home office as a place where work will need to be done. Instead, it should look comfortable and inviting since most people will use it to sit down and pay the household bills, etc. You don't want them to be completely overwhelmed by the amount of paperwork clutter that you have around your working area.
- Artwork: If necessary, you should change the artwork in your home office to fit the theme of an office. In this particular case, the homeowner had a piece of artwork that really wasn't related to a home office. Our home stager changed that out to give it a more soothing, generic theme.
- Under the desk: It's also critical to remove anything that's under the desk. Remember that buyers are going to look everywhere in your home including closets and under your furniture. You want everything to look organized and clean. If you have a lot of stuff under your desk, it takes away from the look of the room plus it makes the space look smaller.
- Polish the desk: Remember to polish furniture throughout the house to give it a clean look. People often forget this simple step, but it can make a big impression.
- Remove dust jackets: Here's a simple tip that you can use in any home. Remove the dust jackets from hardcover books and put them between two elegant looking bookends. You can put them on a coffee table or on your desk. Removing the dust jackets gives the books a dressier look.
- Add a comfortable chair: Even if you have to make a purchase to do so, add a comfortable, elegant chair to your desk. It will be well worth the money, and you can take it with you when you move.
- Add plants: You may want to consider adding a plant to your desk or even the corner of the room. It adds texture and hides cords.
We asked our home stager to give her biggest “no-no” when it comes to showing at home. She said by far that personal items need to be removed so that people won't be focused on their opinion of you, but will be focused on the house itself. Again, this means removing religious or political books, personal pictures and anything else that might give someone an opinion of who you are. Instead, you want them to focus on living in that home.
As always, if you ever have real estate questions, we are here to help! Just give us a call or drop us an email.
With our all-time low interest rates and prices so low it’s no wonder that buyers are lining up trying to take advantage of the great deals out there right now. But if you are one of those buyers that are finding it tough to deal with the competition, what can you do better to make sure you get the home of your dreams? There are a few things that many buyers, under the guidance of their savvy agents, are doing to stand apart from the rest. Here we’ve shared them with you to make your real estate buying endeavors both fruitful and as seamless as possible!
Be Prepared In Advance and Know What to Expect
Too often when prospective homeowners walk into a new property, they do not take into consideration the all-important fact of how much they can actually afford. It’s one thing to have a ballpark figure in mind but it’s another to have an actual preapproval letter from your bank. Buyers that have a preapproval are taken far more seriously by sellers than the buyers that express an interest in the home but then have to start from square one.
Know what the market holds when you go to make an offer on a property? Many times a buyer will not have studied the area’s market trends and as a result ends up suffering the consequences. For example, in a strong market where there are good homes at desirable prices, buyers find themselves competing against others in what ends up to be bidding wars. Being prepared in advance and being willing to offer more than the asking price is sometimes what is necessary to get you that dream home. Keep in mind that eventually, the market will experience an upswing so you will see some return on your investment. By focusing on what you are getting now with the best of what the market has to offer, you will end up with a winning transaction.
Adding a Personal Touch To Appeal to Sellers
The transaction of buying or selling a house can be very impersonal at times but it does not have to be that way. One of the best ways that highly successful real estate agents succeed in helping their clients get their dream properties is to add a personal touch – especially when it comes to communication with the sellers. An example is sending a letter introducing the family that is vying for the property, with details about them, why they love the house, or what makes them the perfect fit for the home. When sellers come across this type of thing, it gives them a warm glimpse into the people that could be moving into their home – a home that they are undoubtedly very attached to and would like to see go to only the perfect new owners. Another thing that works well is complimenting the sellers on how they have maintained the home or on other aspects of the house you find very appealing. ~ At the end of the day, if the house is meant for you it will likely become yours but not without you and your agent doing the best possible to stand out from the rest. For a customized consultation on how we can help you buy the perfect home, we invite you to visit us soon!
Unfortunately, you can’t assume the keys you’re holding are the only keys to your home that could exist out there. Play it safe and have all the locks changed as soon as you can.
2. Re-program garage door opener
Again, it’s better to be safe than sorry when it comes to the security of your new home. Most garage door remotes have a reset button that you can hold down to reprogram the opener. If you want more concise instructions, note the make and model of the opener and contact the company to walk you through the steps.
3. Replace furnace filter
Most manufacturers recommend that a furnace filter be changed once a month during the heating season to ensure the most efficient performance. While there are higher-quality filters that may not require monthly replacement, it’s still a good idea to check the filter monthly and, of course, replace it when you move into a new place.
4. Install new batteries in smoke alarm and carbon dioxide detector
You have no way of knowing when the batteries were last changed and if the home has been unoccupied, it’s probably been awhile. Test the alarm and detector and put new batteries in each. This investment of time and a few dollars is well worth it, given the stakes.
5. Replace toilet seat covers
We probably don’t need to go into specific details, but most people insist on swapping out toilet seats.
It has definitely been a rollercoaster ride – one that seems to keep going up in some areas and down in others as we continue to rifle through the aftermath of the big mortgage meltdown of 2007. But as 2011 comes to an end and we have a new, refreshing start ahead of us – what can we expect to happen in our real estate market?
We examined some of the numbers of the past and projected some foreseen market performance in the future and here is what we have come up with:
Buyers Will See More Competition
Though the market will remain heavily leaning toward the buyer’s side, there will be far more competition on the table when it comes to deals they are trying to close. Homeowners will receive multiple offers, meaning that the edge buyers had recently will begin to soften. What this means is that buyers will have to be seriously ready to compete against other serious contenders for the property of choice – a situation that has not been as prevalent in 2011. Nonetheless, interest rates continue to be at all time industry lows and the low housing prices reflected in the most recent housing index report will provide buyers continued fantastic opportunities and renewed excitement to get in on the house of their dreams for the price of a lifetime!
Sellers Will Enjoy Stabilizing Prices
For the first time that we have seen in three or four years, sellers will finally enjoy prices that will be stabilizing again. After months and months of uncertainty, sellers will be able to sell more confidently – especially beneficial given the state of our economy as it remains today. In some pockets, we will see housing values increasing. Our prediction is that in 2012 housing values will come up as much as five to eight percent from their current levels in those areas. When you consider that in 2006 prices had dropped as much as 26%, the news of a projected incline in home values is fantastic news! The coming year will be the best time to sell for many sellers in a long time – and finally – we are going to see happy sellers at the table in addition to the myriad happy buyers out there.
What You Can Expect From Us in 2012
As we strive to continue to provide our esteemed and valued clients with useful and valuable information that can be implemented with our without our help, we promise to bring you more exciting topics, great ideas and insightful information that will help making homeownership or potential homeownership a wonderful endeavor for you and your family.
From our family to yours, we wish you a very Happy Holiday Season and a Happy New Year!
Traditional school of thought dictates that selling a home during the holidays is a bad idea. People are busy celebrating with their families and will hardly go shopping for a home, right? Not so! There are numerous advantages to listing a home during this season and below are ten great reasons to put a home on the market now.
More serious buyers – Less time wasted
These are people who are interested in buying so there is a far greater chance of actually selling the property. Nothing is more promising to a seller than a motivated and qualified buyer that knows what they want and is actively seeking to get it.
Fewer Homes On the Market
The less competition there is, the higher the chance there is for homes on the market to sell. Where during the peak season sellers might be dealing with some interest from buyers on their home, nonetheless there is more selection for buyers to choose from and they can stray to another property.
In January Inventory Increases – Chances of Selling Decreases
With so many homeowners assuming the holidays is a taboo time to sell there is a plethora of new listings in January, resulting in a diminished chance of your home selling. Also, there is a risk that the price you may receive on the home can be less.
Decked Halls Look Great!
Homes are very appealing to prospective buyers when they are decorated for the holidays. With all the festive décor, lights, greenery and added beauty of the season – the home shows very well and attracts buyers faster than if shown during other times of the year.
More Time To Browse Homes
Buyers have extra time off from work and are on vacation, which translates to a more aggressive buying pattern and more chances of your home being viewed.
Tax Advantages That Benefit the Buyer
Some buyers need to buy a property before the year ends so that they are able to claim a particular credit or exemption on their tax return. The biggest tax benefit is filing for homestead. This requirement means that they are going to seek out a home and definitely purchase it prior to the New Year.
Show The Home With Flexibility
Sellers that have their home listed prior to the holidays have the added advantage to be able to “pause” the process so they can celebrate the holidays, essentially not showing the home during a period of time during the break. When the festivities die down, things can pick up again and the seller has not only managed to save potentially lost time but can also jump right back into the market.
Sell Now For More Money Then Delay Closing
Extended occupancy can be negotiated, leaving both parties the leniency to get through the holiday season and past the New Year so that all sides can rest assured the deal is done but it can follow through at a more convenient time. For sellers this option is great because they are able to secure a higher selling price on the property before the market is inundated with new listings come January when the selling values drop.
Enjoy Non-Contingent Buyer Freedom
With the home sold, sellers can enjoy non-contingent buyer status during the rest of the slow season and take advantage of the market when there is a flood of new listings upon the New Year.
Fewer Foreclosures On the Market
Many banks will suspend foreclosure listing during this time of year, especially on properties where there are still families occupying the home. As a result of this, some of the competition that arises for sellers from low-priced foreclosures can be avoided during the holidays. ~ Keep in mind that the idea of your home’s value increasing significantly over the next several months is a myth. The truth is that housing values likely only go up when consumer income rises. Pay rates increase at a rate of three to five percent each year and that is about the maximum yearly increase we can expect to see in a home as well. So if you are wondering whether or not to put your home on the selling market now, or to wait – one important factor is that waiting will not provide much benefit.
Like anything else that consumers tend to buy, a home is available under a variety of different plans and packages – only in this case it’s usually packaged in the form of mortgage rates instead. With choices there will be decisions and before you can make a sound decision regarding the purchase of your new home, you need to be armed with as much knowledge as possible. Knowing what to look for in this scenario is key and we’ve put together some important tips that will help you move forward.
Look Beyond the Interest Rates
From the moment you decide you want to purchase a home, the excitement mounts. You’ll start asking and telling your friends, family and colleagues. You’ll begin looking at houses everywhere you go and think about the house from an entirely different perspective now – a buyer’s perspective. And you’ll be thinking about dollar signs. How much will it cost? Will I be able to afford the monthly payments? What all is entailed in the home buying process?
When you do start answering those questions, remember that what’s usually the first thing to consider, interest rates, is not necessarily the most important. Even though you may be able to come away with the “lowest mortgage rates of the season” if you’re not careful, you could also suffer the “highest fees” too. Depending on the entire package, a low interest rate package may not be all that it’s cracked up to be, so it’s important to be full aware of all the facts.
All Lenders Are Not Created Equal
When you are new to the industry, you may not realize the plethora of choices available, including when choosing a lender. Depending on your specific needs, your qualifications and expectations, you can tap into several avenues when considering financing for your home.
BANKS AND MAJOR LENDING INSTITUTIONS
Borrowing from regular to large lending institutions has its advantages but can bog you down too. Not particularly known for their flexibility, it can become difficult when trying to accomplish smaller, more specialized services that may be possible through smaller institutions. Further, there is additional overhead that is rolled into the end figure, something passed on directly to you.
CREDIT UNIONS
This is a favorite option for many prospective homebuyers since credit unions offer excellent values and top-notch service to go along with the regular transactions you would experience anywhere else. The downside, however, is that credit unions only serve their members – and obviously not anyone else.
MORTGAGE BROKERS
By opting to go through a broker, homebuyers can avail any number of rates and products but the cost ends up being higher since the middleman nature of a broker results in additional costs incurred after having to deal with several lenders to get that variety of rates and products. The other ‘ding’ is that brokers earn from selling higher interest rates to the end-consumer.
When in Doubt, Check the GFE Out
Lenders are required to provide home buyers with a Good Faith Estimate, completely outlining important aspects of the sale and pending transaction. With key information about costs, from expenses to closing and other fees – as well as an idea of your expected average monthly payment, the document is a good source of preparation for you. It’s important to study the contents carefully and if possible have a lawyer review it for any glitches or hidden clauses that may hurt you in the long run. The opportunity to thoroughly question anything that doesn’t seem right is there and should be availed if you’re unsure of anything like how certain fees are structured, for instance.
Negotiate Your Way To More House for Less
First-time home buyers often do not realize the potential for successfully negotiating lower interest rates, among other things. Large financial lending institutions with their long processes and industry jargon tend to be intimidating, but at the end of the day the transaction boils down to the purchase of an item, through funds obtained as a loan. While the paperwork can seem daunting, as long as you keep your eye on the bigger picture and keep in mind the simplicity of the transaction, you should be able to negotiate a better deal than the one that is offered originally. Using the services of an experienced industry regular, like your Realtor, is very useful during times likes these, when banks can be intimidating.
~ With a little bit of industry savvy, coupled with the knowledge of where to look for the information that will help you, your home buying process and the bottom line can be exactly what you want it to be. With interest rates as historically low as they are these days, by playing your cards right you can easily get into a home that just six months ago would have valued at as much as $40,000 less! With things changing on a daily basis, it’s important to have all your information lined up and ready.
And if you’re a seller, the super low interest rates work in your favor because that means more buyers can potentially qualify for your home.
This is one of the best times in the real estate market – as the days get longer and things get warmer, more and more people are motivated to sell their homes while at the same time others are excited about finding the perfect dream home. What is happening in today’s real estate market? To get an idea of what you can expect in the coming weeks and months ahead – we have put together some information about our local marketplace. Whether you are a buyer or a seller now is a great time to get involved and achieve your real estate goals!
