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Updates & Upgrades Value to Sale

Posted by admingg on Jul 9, 2019 in Buying a Home, Local Experts, Real Estate, Selling a Home | 0 comments

June 26, 2019 | by Danielle Braff

As modest increases in inventory begin to attract more buyers to the market, it may seem wise for your sellers to undertake renovation projects to boost their competitive edge. Kitchen and bathroom upgrades, for example, are among buyers’ most desired features and can fetch a handsome return on investment, according to the National Association of Home Builders. But even as remodeling demand rises—the NAHB predicts home improvement activity will jump 1.6% and 1.1% in 2019 and 2020, respectively—some real estate professionals aren’t sold on the idea that renovating always fast-tracks a home sale.

There are two types of homes that sell quickly in today’s market: fixer-uppers and completely renovated properties, says Blayne Pacelli, a sales associate with Rodeo Realty in Studio City, Calif. You’ll need to pay attention to local market dynamics to determine the salability of each type of home in your area. For example, if your market has an abundance of investors, who typically renovate anyway for flips or rental properties, your sellers may not need to upgrade their homes in order to sell. Traditional buyers, however, may want a move-in–ready property.

In the Los Angeles neighborhood where Pacelli works, investors and traditional buyers are both aplenty. His renovation advice to clients depends on each one’s situation. “If a house is already fixed up except, say, one bathroom, I would suggest updating that bathroom to [appeal to a wide market],” he says. “If the bathrooms and kitchen need updating, I would leave them as is” and market the home to investors.

Weighing Your Options

There’s no doubt that home improvement increases property values, but renovating can be expensive—and there’s no guarantee your clients will recoup all of the costs at resale. With that in mind, you must help your clients decide: Is the expense of remodeling worth it? Small improvements rather than large-scale projects may suffice. “Timing matters as does the cost to renovate,” says Elisa Uribe, a sales associate with Golden Gate Sotheby’s International Realty in Oakland, Calif. “It is a seller’s market in our area. In some cases, minor changes such as interior and exterior painting and updating the landscaping can add a lot of curb appeal and make the house more appealing to a buyer.”

Uribe has also used virtual staging to present renovation options to buyers, relieving her seller of having to do the work. In March, she sold a client’s unrenovated three-bedroom, one-bathroom home, built in 1910, at the list price of $564,000. The sale occurred even though the seller had not updated the property’s exterior siding, windows, landscaping, and hardwood floor finishes.

The buyer was attracted to Uribe’s virtual staging of the home, which showed what it would look like with the updates and new furniture. Uribe also virtually staged the home’s layout with an additional bathroom to show buyers the renovation possibilities. “My client was out of state and didn’t have the time, or the funds, to update the house himself,” Uribe says. “The buyer was an investor who planned to update the property and put it back on the market fully renovated.”

Less Is More

Sometimes, some form of home improvement is necessary to elevate the profile of an otherwise undesirable property. In these cases, it may be best to choose simple projects with big impact, such as refreshing the paint or hardwood finish. James McGrath, co-founder of Yoreevo LLC in New York, says one of his buyers recently closed on a condo that had been extensively renovated. The seller, an interior designer, saved money by designing the remodeling projects herself, but she still spent $100,000 on the actual work, which included gutting the kitchen and bathroom among other changes, McGrath says. “If it’s not the highest price per square foot in the building’s history, it’ll be pretty close,” he says of the deal.

The renovated unit received a lot of foot traffic, with 60 to 70 showings. “That being said, the owner won’t make money on the renovation,” McGrath says. Though the renovation generated a higher price for the condo—which McGrath’s client bought for $690,000— it wasn’t enough to cover the seller’s remodeling costs, he adds. This is an example of why McGrath suggests that homeowners avoid big projects prior to selling.

Another renovation con: While the improvements may be a hit with some buyers, others may have different preferences and won’t pay a higher price for the work that was done. In fact, McGrath’s buyer brought in his own contractor because he wanted to replace the tile in the kitchen and backroom. Though the tiles were new and in pristine condition, the buyer had a different vision for the space, McGrath says. “Presumably, the seller would have gotten the same offer from [my buyer] had she not spent thousands of dollars on those tiles.”

Protect Clients’ Bottom Lines

You can help keep your sellers on budget by reminding them that “restoring the home to a good state of repair” is all that’s necessary before listing, says Michael Edlen, SFR, a sales associate at Coldwell Banker Pacific Palisades in Pacific Palisades, Calif. But that may mean something different in each market. In areas where buyers have the advantage, a seller may need to do more work on his or her home. “If an owner does not perform basic repairs, many buyers tend to ‘horribilize’ what they think they see and how much it could cost to fix it.”

If your client’s home needs an overall update, focus on the smallest items that have the biggest impact first and test it on the market before deciding to invest in larger projects. Updated light fixtures and window treatments, which are eye-catching accents, are often enough to move buyers, says Dawn Levy, a sales associate with Berkshire Hathaway HomeServices Georgia Properties in Atlanta. If your clients want to take it a step further, they can install new energy efficient windows, which can be costly but is a huge selling point with buyers, Levy adds. “A home with good bones that needs a cosmetic facelift is much more appealing to buyers,” she says. “Price point also plays a role here.”

Of course, the value of any renovation depends on your market. What works in one area may not work in another, so you must be knowledgeable about your specific neighborhood. In New York, for example, condos and townhomes that aren’t completely renovated typically don’t get much attention from buyers, says Eric Rosen, a broker with Halstead Manhattan LLC. “If the apartment or townhouse requires work, then the seller would be penalized,” he says. “This means that the property will trade for less than the repairs would have netted in a sale.”

14 Things to Avoid Before Buying a House

Posted by admingg on Jun 13, 2019 in Buying a Home, Local Experts, Mortgage Info, Real Estate | 0 comments

14 Things to Avoid Before Buying a House

Many first-time home buyers are surprised to discover just how many ways you can mess up a home purchase. You may have got your pre-approval, found a home you loved and made an offer. But if you want to avoid messing up the transaction, you will need to be extremely careful until the sale has closed.

Keep reading as I tackle what not to do before buying a house. Many of these items are mortgage mistakes that can be easily avoided. If you have an exceptional mortgage broker or real estate agent, more than likely a few of these points have already been mentioned.

Use the following tips to protect yourself and your home purchase. In fact, be sure to check out what you should do before buying a home. These twenty tips will help you make the best buying decision possible.

Making mistakes is easy when you have never bought a home before. Avoid these home buying mistakes to keep the stress out of your life!

Don’t miss loan payments.

You must keep your payments current on all your loan accounts, including credit cards and car loans. The lender will look at your credit again before finalizing your mortgage, and if you have missed any payments, it may lead to you losing the loan.

Many buyers mistakenly believe that once the lender issues their loan commitment, they are golden. This is NOT the case! Lenders have the power to revoke a mortgage commitment and will do so if they see fit. Not too long ago a buyer was purchasing a home I listed in Millbury Mass. The buyer had been selling and buying a house simultaneously. They closed on their existing home but didn’t make their last mortgage payment.

Unfortunately, this was flagged on their credit report and prevented the buyer from getting the loan for their new purchase.

They had to apply at a new bank under a different program (FHA instead of conventional). Needless to say, this caused their purchase to be delayed, and in the process, they lost thousands of dollars.

Be careful before you consolidate your debt.

Debt consolidation can be tempting when you finally start looking at buying a home. Most consolidation offers make it possible for you to bring all your debt under one umbrella payment, which makes sense for some people.

But there are also often hidden fees and interest rates that can increase dramatically without warning. Consolidation may not improve your credit in the way you expect, so be sure to read all the fine print.

Avoid changing jobs.

It goes without saying that changing jobs is not something you should do in the middle of purchasing a home! One of the things lenders look closely at is your employment history. They want to be sure that you are financially stable and capable of making your loan payments.

By changing a job before you get your loan, you make yourself less appealing to the lender. Changing situations may cause the lender think you are unstable, or that you won’t have a steady income to keep up with the mortgage. The word stability is something lenders love.

Keep your move under wraps until after the closing takes place.

Don’t shift your finances around before getting the loan.

When a lender pre-approves you, the approval is based on the current state of your finances. You want to maintain that state – the one that got you the pre-approval – at all costs. Sometimes buyers make the mistake of shifting their money around to better position themselves, but this is a mistake.

Wait to make any financial changes until after you have gotten your mortgage. If a lender sees you moving money around various accounts, they will ask for an explanation.

You will need to give them a detailed accounting of why you moved your money around. Avoid making this mistake and keep your money in one place before closing.

Don’t start banking at a new institution.

Your bank may have made you angry or upset. Or maybe you saw a great offer from a competing bank that you just can’t pass up. Well, you do need to pass it up, because changing banks before getting your loan can disrupt everything.

Just like the job and the finances, your banking history and status is part of the equation that leads to you getting pre-approved. Change your bank, and you may not get final approval.

Avoid buying a car…or motorcycle, RV, boat, etc.

Without a doubt buying a car while also purchasing a home is a common mistake. Doing so is also at the top of the list of what you shouldn’t do before buying a home. Sometimes the feeling of knowing you are finally going to get a home of your own can be so exciting that you start looking at other ways to improve your life – like buying a car.

Unfortunately, purchasing a car can throw a wrench into your home buying plans. Your loan pre-approval was based on the state of your credit and your debt load at the time of pre-approval before you bought a car. Adding the debt that the car purchase will bring may make you unable to get the loan for your home.

Don’t buy furniture or household goods on credit.

Another mistake many home buyers make is using credit to start preparing for their new living arrangements. You may want to start buying furniture and appliances to fill up your new home and make it truly yours, but hold back.

Taking on new debt, even for furniture or other household related items, will change the state of your credit and may throw up a flag for the lender that leads to the loss of your loan approval.

Avoid making large deposits into your bank account or making cash deposits.

Money that appears suddenly in your bank account makes lenders uneasy. In fact, they prefer for you to have the money that is going to your down payment in the same account for at least two months.

Lenders refer to the two month period as “seasoning,” and consider it a demonstration of stability and your ability to cover the loan payments. Whenever you make a significant deposit or start doing unusual or unexpected things with your finances before the home purchase, the lender may begin to scrutinize the loan and might back out.

The bank could, in fact, think it’s fishy to see large deposits moving in and out of your account, especially if that hasn’t happened before. Doing as little as possible to make a lender scrutinize your finances.

Avoid lying or stretching the truth on your loan inquiry.

You may have no intention of lying about your finances when you fill out a loan application, but the point needs to be stated regardless. Lying on a loan application is fraud, and if the lender finds out that you mislead in any way, you will almost certainly lose your loan.

Even stretching the truth or making an honest mistake that is inaccurate, can cause you significant problems if the truth is discovered. So be very, very careful that all the information you put down is entirely accurate. Falsifying knowledge is a definite no-no when applying for a mortgage.

This a significant home buying mistake that can put you in a horrible spot.

Don’t let anyone make inquiries into your credit.

Any time you apply for a credit card, a loan or even try to sign up for a new service, like a cell phone service, the company you are working with will probably make a credit inquiry. They do this to determine if you are a safe risk, much as the mortgage lender does.

But when the mortgage company sees that inquiries are being made, it may assume you are trying to take out more debt – even if you aren’t. While one or two queries may not be enough to lose your home loan, there is no reason to take unnecessary risks when you are so close to getting your home.

One mortgage myth worth knowing – having your credit checked by multiple lenders when buying a home does not affect your credit score all that much.

From MyFICO – “FICO scores are more predictive when they treat loans that commonly involve rate-shopping, such as mortgage, auto, and student loans, differently. For these types of loans, FICO Scores ignore inquiries made in the 30 days before scoring. So, if you find a loan within 30 days, the inquiries won’t affect your scores while you’re rate shopping.”

Don’t spend the money you are going to use to cover closing costs.

For many home buyers, the period surrounding the home purchase is one of financial scarcity. Money may be tight right now, which can make the money you saved to cover closing costs tempting. But avoid spending it.

The last thing you want is to be unable to cover closing costs when you are at the point where you almost have your new home. Stay strong and avoid spending it if you can help it. AND, Don’t overspend on a home!

Don’t overextend yourself.

When buying a home, lots of lenders will gladly give you what they think you can afford on paper. What you qualify on paper, however, doesn’t necessarily mean what you’ll be comfortable living on day to day.

Some buyers make the mistake of really overextending themselves. They end up becoming a slave to their home. If going out to a nice dinner from time to time is something you have been accustomed to be more conservative with your house purchase.

Avoid being a co-signer for anyone.

When you co-sign a loan, you are obligating yourself financially. It does not matter that you are not the primary person on the loan. If the lender needs money and is unable to get it anywhere else, it will come looking for you to pay.

Home lenders are well aware of this fact and are therefore disapproving of any applicant that decides to co-sign. As with all the other points listed above, you need to focus on keeping your credit and financial situation stable and constant until you have closed on the house.

No matter how badly you may want to help out a friend or family member, try to postpone co-signing until you have the money for your home purchase.

Don’t spend more than the value of the home.

There are times when real estate markets become extremely hot! In real estate jargon, we call this a “seller’s market.” Most of the country has been experiencing these conditions over the last few years. Buyers have been put in the position where winning bidding wars are the norm, not the exception in many places.

In fact, you’re more likely to see fancy ways to beat the next guy to the punch like an escalation clause in an offer. When you are in an environment such as this, it is easy to overspend as a buyer. After all, if you have lost out on a few homes, you’re more than likely going to reach to get a house you love.

When involved with multiple offers it is not uncommon for the sale price to be pushed significantly above asking. While the buyer may be willing to do this, a lender may not. When the home doesn’t appraise, the borrower may be stuck putting up more money or risk losing the house. You can’t assume the seller will be cooperative and drop their price. You could be rejected for the loan if you can’t make up the difference.

Thinking of Selling?

Posted by admingg on Jun 13, 2019 in Featured Property, Local Experts, Real Estate, Selling a Home | 0 comments

Key Questions for Owners Thinking of Selling

For many cities throughout the U.S. real estate markets, today undeniably favor sellers. With those markets that are particularly competitive, it can be very tempting to list your home even when you haven’t made a concrete decision to sell. Taking the plunge and listing can be an exhilarating decision, but doing so without asking yourself some important questions could leave you scrambling to figure out what you’re going to do should your home be a highly sought-after property.

If you’re toying with listing, ask yourself the questions below before you make your final decision.

How much is my home worth?

Unless you consistently check real estate prices in your area or are comparing comparable homes in your neighborhood, it’s likely you may not know the true value of your home. If you’re thinking of selling, it’s important to find out how much your home is worth. If you are dreaming of a new neighborhood, with the hopes that you’ll make a good amount of money off your current residence, do your due diligence and ensure your home is worth what you think. The last thing you want is to find out your home is worth less than you thought and your dream neighborhood is no longer an option. You can work with your local real estate agent to find out the current market value of your home.

How much is it going to cost me to sell?

When you list your home it can be easy to get caught up in the thoughts of how much you’ll make from selling, but selling a house does not come without costs. Selling can get expensive, especially when one considers all the outside factors that go into a home sale. Again, your local agent can help you understand the total costs (especially since many costs are dictated by where you live in the U.S. and other factors), but as a seller you can typically expect to pay these important items:

Agent commission (Seller typically pays Buyer AND Seller commission) (6%)
Staging and home preparation costs (1%)
Seller concessions (1-3% )
Repair costs (determined based on inspection)
Home ownership/overlap/moving costs (1%)
Closing costs (1-3%)

Sellers end up paying a fair share of the costs when it comes to the home sale/purchase. If all is said and done, and you’re only going to make $10,000 off your sale, is it really worth it to sell if your main goal is a good return on investment?

How long will it take to sell my home?

For some homeowners, a quick home sale is a reality if you live in a city with a competitive real estate market. But for many others, the time it will take your property to sell is really dependent on your where you live and the price and condition of your home. If your home is in excellent condition, it’s likely buyers will be immediately interested. If your house is in need of work, you might not see as many interested buyers. According to the National Association of Realtors (NAR), the median number of days a home in the U.S. sat on the market hit a new low of 29 days in April 2017. With that being the national average, your local real estate market will have its own average (that is also impacted by the condition of your home and the listing price), so there’s no concrete answer as to how long it will take to sell your home, but if you have a home that buyers want, it could be pretty quick.

Should I make repairs?

While many owners may balk at the idea of fixing up their home to sell it, the truth is that making repairs or improving your home can help sell it faster. You by no means have to make repairs when you’re toying with listing your home, but fixing up any pretty blatant cosmetic issues may help your property sell faster. It’s even a good idea to hire an inspector prior to listing to know if there are any issues with the core components of your home to avoid any surprises when it comes to a potential buyer hiring an inspector. It’s important to remember that major items, like issues with a foundation, HVAC system, or any other major part of the home, can be total deal breakers for some buyers, so make a point to assess your home prior to listing to ensure you know what you can leave as is and what you may want to fix beforehand.

Do I know where I want to go?

This is pretty important, especially if you are inclined to impulsive decisions. For some, selling a home due to a job relocation or wanting to be closer to family provides a for sure destination. But for those thinking of selling with no idea as to where they want to go, it’s a good idea to start thinking about and looking at places to move to. In those markets where homes go fast, you’ll want to have a pretty solid plan as to the area/neighborhood you want to be in, and you’ll have to be willing to compromise if you can’t find a home in your dream area. Seller contingencies are common, so don’t feel like you have to have your home sold before looking at other properties – it’s better to be on top of this than leave it to the last minute and not have a place to go once your current home sells.

Choosing to sell can be a hard decision, especially when there’s lots to consider. If you need any help, or just want to talk to someone with current real estate knowledge, your local agent is more than happy to answer questions and provide information on your local real estate market. Reach out today if you’re thinking of selling!

4 Tips For Making A Competitive Offer

Posted by admingg on May 15, 2019 in Buying a Home, Local Experts, Mortgage Info, Pre-Market Opportunities, Uncategorized | 0 comments

So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:

1. Determine Your Price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.

Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.

Bottom Line

Whether you’re buying your first home or your fifth, having a local professional on your side who is an expert in his or her market is your best bet in making sure the process goes smoothly. Happy house hunting!

Harvard Housing Study

Posted by admingg on Mar 29, 2019 in Buying a Home, Local Experts, Mortgage Info, New Construction, Real Estate, Retirement, Selling a Home, Uncategorized | 0 comments

JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITY – 2019

Harvard released its comprehensive study on housing trends and the current state of housing. The report begins with the Executive Summary:

With new construction still slow to recover from historic lows, almost 80 percent of the nation’s 137 million homes are now at least 20 years old and 40 percent are at least 50 years old. The aging of the US housing stock has been a boon to the home improvement industry, helping to lift the remodeling market to nearly $425 billion in 2017, according to the latest estimates from the Joint Center for Housing Studies.

Indeed, in the years since the Great Recession, spending on improvements and routine maintenance to both owner-occupied and rental properties has not only increased the value of the existing stock but also contributed a dominant share of residential investment. In addition, the tens of millions of projects undertaken annually—from roof and window replacements to major kitchen and bath remodels—generated 2.2 percent of national economic activity in 2017.

Some of the recent strength of the remodeling market reflects a significant increase in spending by rental property owners. The surge in rental demand following the housing crisis prompted owners to invest in substantial upgrades to their units. Homeowners also had some catching up to do on maintenance and replacements deferred during the downturn, particularly on properties converted to rentals or left vacant for extended periods.

Get the full report here: Harvard JCHS Housing Study

Garage Organization on a Budget!

Posted by admingg on Mar 19, 2019 in Buying a Home, Local Experts, Real Estate, Selling a Home, Uncategorized | 0 comments

14 Garage Organization Ideas Under $50

HouseLogic | by: Jan Soults Walker

Easy-to-afford solutions for your tools, sporting and seasonal gear (so you’ll have room for your car, too).

If you’ve got a garage, most likely you’ve got waaayyyy more than cars in there. It’s the catch-all place to keep stuff (mostly) out of sight and out of mind.

Put order to the chaos and protect your car’s paint job with simple storage systems and organizing hacks for everything from sports equipment to tools.

Bikes, Skates, and Other Wheels

#1 Hoist bicycles to the rafters with a rope-and-pulley system (starting around $40) that makes it easy to raise the bike and lock safely in place. When you’re ready to ride, release the lock and lower your bike to the garage floor. You’ll need an hour or two and basic tools to secure the pair of pulleys to ceiling joists and thread the ropes. (Similar hoists are available for kayaks or small boats; starting around $25.)

#2 Use a specially designed wall rack to hang helmets and skateboards together;starting around $20. Secure this one to wall joists in less than an hour.

#3 Keep scooters and bikes out of the way with tool hooks installed on a length of 1-by-6-inch lumber. You’ll pay $3 for each pair of vinyl-coated screw-in tool hooks and $1 per foot for lumber. You’ll need only an hour or two to secure the lumber to wall joists and screw the hooks into place along the board.

Sporting Goods

#4 Bring together balls and bats on a convenient wire rack equipped with hangers that hold gloves too; starting around $35.

#5 Stash two pairs of snow skis, poles, and boots in one handy steel ski rack; $45. Securing this rack to wall studs helps it hold the weight of the equipment. If you can’t position it on studs, use wall anchors for a secure installation. You can do the task with or without anchors in an hour or two.

#6 Stow your fishing rods by suspending two wire shelves from your garage ceilingabout 5 feet apart, then threading the rods through the openings. Use shelves left over from a project or purchase a 4-foot-by-16-inch vinyl-coated wire shelf for less than $9, and saw it in half crosswise (or clip with bolt cutters) to make two 2-foot shelves. Snip additional wires where you need wider slots to accept pole handles or reels.

Tools

#7 Hang wrenches and bungee cords using an ordinary vinyl-coated wire tie-and-belt rack, available at big box stores; $8.

#8 Hang metal tools on a magnetized rail, keeping items in view and easy to retrieve; starting around $30. Simply screw the rail to wall studs to safely hold the weight of the tools (it’s an idea you may be drawn to.)

#9 Cushion and protect tools by padding your toolbox drawers with a soft, non-slip liner. The open-weave design keeps moisture away and prevents tools from rolling around. Enough material to line eight average-size drawers is $15. Just cut the liner to length to fit and slip it into the drawer.

#10 Organize small items — such as pencils, box cutters, and tape measures — by stashing them in electrical junction boxes; about $2 each (free if you have spares). Purchase a variety of sizes and shapes and secure them to studs or pegboard.

Yard and Garden Gear

#11 Transform an old filing cabinet into storage bins for various yard tools. Remove the drawers, turn it on its backside, and use a couple afternoons to apply paint and pegboard sides. Less than $25.

#12 Mount heavy tools, long-handled implements, and ladders on long steel rails with extruded holes high on the garage wall and secured to studs. Add hooks and pegs on the rail to hang big tools. Two 48-inch rails sell for $22.

#13 Secure a wooden pallet to wall studs to create a pocket for holding long-handled garden tools. To find free wooden pallets, check with local businesses as well as online classifieds, such as Craigslist. Cost: Free.

#14 Use a can rack to keep bottles of fertilizers, repellants, and lubricants upright and easy to retrieve. Rack ($15) prevents cans and bottles from tumbling off shelves.

https://members.houselogic.com/articles/garage-organizers/preview/

Buying & Selling At The Same Time?

Posted by admingg on Mar 14, 2019 in Buying a Home, Local Experts, Pre-Market Opportunities, Real Estate, Selling a Home, Uncategorized | 0 comments

8 Mistakes to Avoid When Buying and Selling at the Same Time
By Jamie Wiebe | Jan 24, 2019

Plenty of people find themselves buying and selling a home simultaneously, but knowing that others have gone through the same stress does not make it one bit easier. After all, the stakes are so high: If your buyer backs out, you don’t have any cash to land your next home! Or if your own purchase falls through but your current home sells, you’re homeless!

It’s all like walking across the Grand Canyon on a tightrope: The tiniest thing goes wrong, and you fall. It turns out that most buying-and-selling mistakes are easily avoidable—or at least predictable. Follow these eight tips to enter escrow with eyes wide open.

Waiting too long to prep your home for selling

Every home needs a little work before selling. You might need to repaint some scratched walls, fix broken decking, or add grout in a rarely used bathroom. Don’t wait until the last minute to kick-start this process, otherwise you could wind up in a bind.

Take, for example, one of the clients of real estate associate Kenneth Er. He was trying to buy and sell simultaneously. Er advised him repeatedly to start prepping the home, “but he kept pushing it off and pushing it off, despite actively looking for a new home and submitting offers.”

Once the client went under contract to buy a home, suddenly he and Er found themselves rushing to list his existing home. When they finally finished prepping, it was already October—precisely when the market was slowing down and it became tougher to find a buyer.

“I advised him—and would advise anyone—to get the little projects out of the way,” Er says.

Skipping the backup plan

When you’re buying and selling simultaneously, the number of moving parts doubles. And if any of those parts gets jammed, it can throw off both transactions.

For example, Miami Realtor® Juan P. Rojas was recently involved in a three-way transaction where the sellers of property A wanted to buy property B—and the sellers of property B wanted to buy property C.

“We had to coordinate two closes and three different families moving in and out of properties,” he recalls.

It worked out, but Rojas cautions: “Assume that you won’t be able to buy and sell at exactly the same time.”

And with that assumption, you better have a plan in place in case everything goes wrong. Keep your emergency fund well-stocked. In a best-case scenario, you may simply need a hotel for a week, but you may also find yourself looking into short-term rentals. Have cash on hand—in addition to your down payment funds—to survive the setback.

Buying too big

“One of the biggest mistakes that we see that simultaneous buyers and sellers make is the same one that many first-time buyers make: They fail to get pre-approved on their new loan,” says Orange Country Realtor Jessica Althoff.

Pre-approval is essential, because it puts a stop to unrealistic dreaming by telling you exactly what size of house you can afford.

“Buyers assume that with a large down payment and increased income, they will automatically qualify for a larger home loan,” she says. “Many do, but not as large as they think or wish. They begin the search and are disappointed when they can’t upgrade as much as they thought they would be able to.”

Working with too little cushion

You know what price your house should sell for. But what if the market softens? If you’re forced to take an offer that’s $20,000 less than expected, there goes the down payment on your new home.

“Give yourself a cushion on what you need to sell your existing home for,” Er says.

If you’re hoping to use the entire sale price as a down payment on another home, move forward with the assumption your home will sell for less than expected.

One of Er’s clients set a purchase budget of $2.2 million. In order to afford his new home, he needed to sell his home for about $1.3 million. Not only did he exceed his purchasing budget, Er says, “We’re unlikely to get $1.3 million for his current home, due to the softening market and the time of the year. He’s stressed out and scrambling.”

Failing to compromise

Don’t forget you’re not the only human in a stressful situation. That person selling your dream home? And the buyers under contract for your current place? They’re all probably stressed, too.

So keep that in mind when issues come up—for example, if the buyers need an extra week of escrow because there was an issue selling their home, or the sellers don’t think they need to fix a leaky pipe for you.

“One mistake is expecting so much from the people selling the home, but not being willing to give anything to the buyers of their own home,” Althoff says. “A little compromise goes a long way, especially when there are two escrows (or more) on the line.”

Using two different real estate agents

Expect this already messy process to get even messier if you’re juggling agents for your listing and for buying a new home. Simplify things by using the same agent for both transactions.

“I would always prefer to handle both sides of your sale and purchase,” says agent Michael Pacheco. “Having control and insight over both transactions allows me to make sure that we close both homes simultaneously.”

There are two instances when you should not use the same real estate agent. If you’re moving out of state, look for a reputable buyer’s agent in your new location. If you’re remaining in the same area, you may also meet and like an agent who works exclusively with buyers or sellers — not both. In that case, ask for a recommendation within your agent’s brokerage so you can, at a minimum, keep both transactions under the same roof.

Closing on a Friday…

While you should work with your agent to determine the best timing, you’d ideally want to finalize the sale of your current home first, and then close on your new one. Try to aim for closings within two or three days of the other—”and never on a Friday,” says Realtor Karen Choate.

That’s because bank transfers can take a few days to go through. In order to ensure there’s money in your account when the time comes, buffer a few days to transfer funds.

…or late in the afternoon

When you’re scheduling those closings, aim for the morning—especially on the sale of your current home.

“Banks usually stop wire transfers by 3 p.m. in the time zone where the property is located,” says Choate. Closing in the morning allows extra time for the money to hit your account.

Courtesy of Realtor.com https://www.realtor.com/advice/buy/buying-and-selling-a-home-simultaneously-8-mistakes/

8 Seller Etiquitte Rules

Posted by admingg on Mar 9, 2019 in Buying a Home, Local Experts, Real Estate, Selling a Home, Uncategorized | 0 comments

8 Unwritten Etiquette Rules Every Home Seller Should Know

If you’re trying to sell your home, you’ve probably scrutinized it, staged it, and scrubbed it down from floorboards to rooftop as if the folks from Architectural Digest were stopping by for a cover shoot. OK, so it’s in immaculate shape—but your home isn’t the only thing under scrutiny here. You are, too! That’s right: No matter how nice your home is, your behavior can also affect how buyers feel about making an offer.

Last week we told you the secret etiquette rules that every home buyer needs to know in order to nail the deal. Today we’re focusing on the selling side of the equation. Here are the (previously) unwritten etiquette rules sellers should follow to show their home—and themselves—in the best possible light.

Leave

Sure, you’re dying to know if prospective buyers will love what you’ve done with the kitchen, but Realtors® agree sellers should not be there lurking in the shadows during an open house or showing.

“Buyers don’t feel as comfortable when the owner is at the home watching their every move,” explains Nicholas Kensington of Scottsdale Real Estate. “Get out of their way so that they can start to picture themselves living there instead of being spied on.” So take a powder. Or at least hide.

Take your pets with you

You think Humbert is the cutest labradoodle ever, but not everyone is bound to share that opinion. In addition to having allergies, some home shoppers may not be in the market for a run-in with an animal they don’t know.

“Imagine, as a buyer, having the background music set to ‘barking dog’ while you are trying to take in the home’s nuances that you, as the seller, have worked so hard to hone,” says Brenda Hayward, a Realtor with Coldwell Banker. “To say nothing of the stress it puts on your beloved pet. Take your mutt for a car ride, to the dog park, or for a long walk. It will do you both good.”

Betty Clark, who claims an “irrational fear of birds,” says she was shocked by how many open houses she ran from due to unexpected tweeting and chirping from caged and uncaged feathered friends. Don’t alienate would-be purchasers by forcing your pets on them.

Move your car

“Make it easy for visitors to park and view the home,” Kensington notes. “No one likes parking issues. Having them is a sure way to get a viewing off to a bad start.” In fact, if potential buyers have to park a block away and walk, they may just skip taking the tour of your home. Or if they’re willing to make the hike, they may be in a lousy mood by the time they enter your home. Why risk it?

Lay out important documents

If questions arise while buyers are on the premises, it may help them decide to put in an offer that much faster if they can find answers quickly and in writing.

“Leaving necessary documents in an easy-to-find spot isn’t just good for selling, it’s also good selling etiquette,” says Kensington. “Put out the home inspection report, appraisal, home warranty, monthly bill information—gas, oil, electric—and proof of any major repairs are all good things to let people look through when they are considering buying your home.”

Offer some refreshments

House hunters can get parched and peckish. You can help!

“Putting out a few small bottled waters in a small bowl of ice is always appreciated, along with some light, easy grab-and-go sort of refreshments like mints or cookies,” says Cara Ameer, a Realtor with Coldwell Banker.

Be patient waiting for feedback

Of course, you’re dying to know what buyers thought of your home, but that information may not flow back to you instantaneously. Buyers often want to process what they’ve seen and think it over before making an offer. If one comes through, don’t worry, you’ll hear about it!

“It is reasonable to ask for feedback from your Realtor after the showing, but understand it may take a day or two for the buyer’s agent to respond,” Hayward says.

Don’t be greedy

Who doesn’t want top dollar for their home? But an unwillingness to negotiate can kill a possible deal and keep your home on the market long after you were hoping to be unpacking at your new place.

“Focusing on your bottom line is always important, but greed can lead to disaster. Remember a little of something is better than a lot of nothing. Generosity will lead you to your promise land,” says Josh Myler, a Realtor with The Agency.

Listen to the professionals

If your Realtor has some suggestions for improvements that may help sell the home faster, take them to heart but don’t take them personally.

“Don’t shoot the messenger,” says Caroline Gosselin, a Realtor with Sotheby’s Prominent Properties. “Keep emotions out and listen to what a licensed, trained, professional has to say about the house, be it a Realtor or an inspector. It’s immature and unmannerly not to be able to take criticism and be able to move on.”

Article published on Realtor.com

5 Big Reasons to Sell Your Home This Year

Posted by admingg on Mar 1, 2019 in Buying a Home, Local Experts, Mortgage Info, Real Estate, Selling a Home, Uncategorized | 0 comments

5 Big Reasons to Sell Your Home This Year
(Because It Could Get Tougher)

Rachel Stults | Feb 20, 2019 | Realtor.com

It’s no secret that life’s been pretty good to sellers for the past several years. Even if you had no need—or desire—to move, the housing landscape might have seriously tempted you to put your house on the market anyway. After all, it’s hard not to see visions of dollar signs when your neighbors are unloading their homes for tens of thousands over asking price.

But as they say, all good things must come to an end. And you’ve probably heard that the white-hot housing market of years past is finally beginning to cool.

So if you haven’t listed your home before now, did you miss the boat? Absolutely not. But with each passing month, the experts say, you can expect the housing climate to shift a bit more in buyers’ favor.

“It’s definitely still a seller’s market in most of the country. But it’s not the same seller’s market that you saw in the last couple of years,” says Danielle Hale, chief economist of realtor.com®. “You might have to think about how your home compares to the competition that buyers are going to see when they’re shopping. And you might have to price a little bit more competitively, or think about other enticements to attract buyers.”

There’s still a chance to cash in for top dollar, though, if you move quickly. Here are the biggest reasons to sell ASAP in 2019.

You won’t be the only listing for long

The top reason sellers have been in the catbird seat for the past several years? Inventory. There simply weren’t enough homes on the market to keep up with buyer demand. And when a “For Sale” sign did go up, you can bet a bidding war would soon follow.

“You might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price,” Hale explains.

That tide is turning this year, Hale says. That’s because the number of homes for sale is finally increasing, albeit slowly. For now, buyers still outnumber inventory. But if you’re thinking about selling and don’t want to compete with your neighbors, it’ll pay off (literally) to list earlier rather than later.

“It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing,” Hale says.

You still stand to make a ‘handsome profit’

Home prices have been on a meteoric rise for the past seven years. In January 2012, the U.S. median home price was $154,700. Today, that figure has nearly doubled—to $289,300—and sellers have rejoiced.

Now comes a twist: 15% of all home listings saw price cuts in January, according to realtor.com data.

That might sound like bad news if you’re thinking of selling. But hear us out: Those moderating prices, combined with today’s mortgage rates (more on that below), mean increased buyer demand for your house.

Plus, it’s not that home prices aren’t still increasing—they’re just not increasing at the frenzied pace of previous years, which often featured multiple offers at or above asking price, Hale says. So even though you might have some more competition as a seller, things are still looking pretty sweet for you when it comes to cold, hard cash.

“Even if you don’t get an offer above your asking price, you’re probably still going to come away with a handsome profit from being a seller in 2019,” Hale says.

But again, it’ll pay to put your home on the market as soon as you can—before conditions change.

“Sellers who list their homes earlier in the year tend to get a higher sales price, often above list, and shorter days on market,” says Ali Wolf, director of economic research at Meyers Research.

There’s high demand for homes under $300K

There’s more good news if you own a home below the national median price of $289,300. Not only is that inventory increasing at a slower rate than its luxury counterparts, but there are more buyers shopping at those price points.

“If you’re a below-median-price seller, you will see a seller’s market that is as good as what you saw in previous years—maybe even better,” Hale says. “You might still see multiple offers coming in quickly, maybe even above asking price.”

Mortgage rates are at a new low

Something strange has been happening over the past few months. Experts predicted mortgage rates would rise—and at the end of 2018, they were indeed ticking upward as expected.

But since the start of the year, rates on a 30-year fixed mortgage (the most popular home loan) have been falling, sliding last week to a new 12-month low of 4.37%. And of course, those historically low mortgage rates mean you could have more buyers knocking on your door.

Plus, this temporary dip in rates creates an opportunity for trade-up buyers as well. After all, if you’re selling your home, there’s a good chance you’ll need to buy another one.

Bottom line: Now’s the time to hustle and get both transactions done.

“Sellers need to take advantage of low rates as much as buyers do,” Wolf says. “Sellers don’t want to get stuck in their homes when rates go up and the math no longer makes sense to move.”

Millennials are flooding the market

Historically speaking, people tend to buy their first home around age 30. And guess what? We’ve got a whole bunch of people turning 30 in the next two years—nearly 5 million, in fact, according to realtor.com data. So you can count on those millennials to be a driving force in the housing market.

“Millennials want to own a home as much as prior generations,” Wolf says. “We saw millennial shoppers scooping up homes in 2018—and 2019 will be no different.”

What’s more, Hale adds, is that you won’t just be seeing demand from first-time buyers. Older millennials in their middle to late 30s have already owned a home for a few years, and could be looking at now as a prime time to trade up. “From a seller’s perspective, you’re going to have possibly more interested buyers,” Hale says. “So that’s motivation to put your house on the market.”

Courtesy Realtor.com https://www.realtor.com/advice/sell/2019-reasons-to-sell-your-home

Sell Your Home in 2019

Posted by admingg on Feb 24, 2019 in Buying a Home, Local Experts, Real Estate, Selling a Home, Uncategorized | 0 comments

5 Big Reasons to Sell Your Home This Year (Because It Could Get Tougher)
Rachel Stults | Feb 20, 2019 | Realtor.com

But as they say, all good things must come to an end. And you’ve probably heard that the white-hot housing market of years past is finally beginning to cool.

There’s still a chance to cash in for top dollar, though, if you move quickly. Here are the biggest reasons to sell ASAP in 2019.

You won’t be the only listing for long

“It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing,” Hale says.

You still stand to make a ‘handsome profit’

Now comes a twist: 15% of all home listings saw price cuts in January, according to realtor.com data.

“Even if you don’t get an offer above your asking price, you’re probably still going to come away with a handsome profit from being a seller in 2019,” Hale says.

But again, it’ll pay to put your home on the market as soon as you can—before conditions change.

There’s high demand for homes under $300K

Mortgage rates are at a new low

Something strange has been happening over the past few months. Experts predicted mortgage rates would rise—and at the end of 2018, they were indeed ticking upward as expected.

Plus, this temporary dip in rates creates an opportunity for trade-up buyers as well. After all, if you’re selling your home, there’s a good chance you’ll need to buy another one.

Bottom line: Now’s the time to hustle and get both transactions done.

“Sellers need to take advantage of low rates as much as buyers do,” Wolf says. “Sellers don’t want to get stuck in their homes when rates go up and the math no longer makes sense to move.”

Millennials are flooding the market

“Millennials want to own a home as much as prior generations,” Wolf says. “We saw millennial shoppers scooping up homes in 2018—and 2019 will be no different.”

Courtesy Realtor.com https://www.realtor.com/advice/sell/2019-reasons-to-sell-your-home

Housing Slowdown? Softening?

Posted by admingg on Jan 25, 2019 in Buying a Home, Local Experts, Mortgage Info, Pre-Market Opportunities, Real Estate, Retirement, Selling a Home, Uncategorized | 0 comments

Whatever You Call It, It’s Real and It’s Here

By Clare Trapasso | Realtor.com

Ever since the whiplash-inducing, bust-and-boom cycle of the U.S. housing market kicked into high gear with last decade’s devastating crash and this decade’s ever-escalating home prices, bidding wars, and inventory shortages, one question has been top of mind for buyers and sellers alike: Is this “party” ending anytime soon? Lately, those who read economic tea leaves have been hinting that we may be heading toward a significant correction in the go-go-go American housing market. Surely national home price increases have to slow down eventually, right?

It turns out they may be on to something.

“The signs are pointing to a market that’s shifting toward buyers,” says Danielle Hale, chief economist of realtor.com®. “But in most places, we’re still a long way from a full reversal.”

ake no mistake: Prices are not exactly tumbling down—at least, not on the national level. And there’s no evidence on the horizon of a looming housing bubble about to pop and drag the world economy down with it. Median home list prices are still up 7% year over year this August, according to an analysis of realtor.com data.

Top of Form

Bottom of Form

But hold on—those numbers are a drop-off from the past couple of years. In 2015 things were really rolling: Prices were soaring, multiple offers were the norm in many markets, and the number of homes available was falling fast. Last year, home list prices jumped 10% over the year before. The year before that, it was 9%. So while a 7% rise still sounds like a lot—especially compared with annual inflation of just 2.9%—it’s actually a very real sign that the market may finally be coming back down to earth.

And the national figures tell only part of the story. A deep dive into regional housing metrics by the realtor.com data team indicates that some of the nation’s highest-profile, bellwether housing markets are starting to slow.

Housing slowdown? | Tony Frenzel

So what does it all mean? Sellers shooting for the stars may not be able to get quite as much as they’d like. And, in a boon to buyers, the number of homes on the market is finally starting to rise. In August, 18 of the 45 largest housing markets, including such heavyweights as San Francisco, New York City, Los Angeles, Boston, and Dallas, saw more properties go up for sale than the previous year. That means folks not only have a better shot at closing on the home of their dreams, but they’ll also face less competition. And that controls runaway price inflation.

“We’ve hit that tipping point in a lot of these cities where what sellers think they can get is just not possible for many buyers,” says Daren Blomquist, senior vice president at real estate information provider ATTOM Data Solutions. “Now the pendulum is swinging away from sellers and back toward buyers.”

Now housing experts are divided on how much prices will keep going up or whether they’ll even—gasp—go flat. So what does the future hold?

Why is the real estate market beginning to slow?

One of the main reasons the housing market is beginning to turn is rising mortgage interest rates.

Do the math: The more expensive it becomes to secure a loan, the less money buyers have left to spend on a property. Rates were up 0.82% year over year to reach 4.65% on 30-year, fixed-rate mortgages as of Sept. 20, according to Freddie Mac. And each percentage point uptick adds about $143 to the monthly payments—and nearly $51,500 over the life of a loan—on a median-priced home of $300,000. (That’s assuming a 20% down payment.)

That’s no small chunk of change—and, as Blomquist points out, even a small increase can be enough to push enough buyers out of the game.

President Donald Trump‘s tax plan could also be limiting just how high prices can go, particularly in the priciest parts of the country. That’s because buyers can now deduct the mortgage interest they pay on loans up to only $750,000. Previously, they could deduct it for loans up to $1 million.

And while this sounds like a problem reserved for the 1-percenters, in some expensive markets, even starter homes go for around $1 million. Combine that with a $10,000 cap on a combination of property and either sales or income taxes, and it spells trouble for homeowners and buyers in California, New York, and New Jersey. Those states tend to have high property taxes that folks can no longer get a federal break on.

Homeowners certainly aren’t oblivious to these factors—many of them are rushing to put their homes on the market to get as much as they can before prices begin to come down, say housing experts and real estate agents. The resulting higher inventory gives buyers a bit more power.

Could California be slowing its roll?

California price reductions | Tony Frenzel

The one state in the country where the cost of housing is hurtling ever more out of reach for the 99-percenters has been California, particularly its coastal cities. The Golden State’s median home price is $542,500—well above the national median of nearly $295,000.

But now, after years as one of America’s hottest housing markets, California is showing some chinks in its armor. Many overzealous sellers who listed their homes at unrealistically high prices are now being forced to reduce them. The state experienced the nation’s biggest increase in the number of homes seeing list price reductions. But just because some sellers overshot doesn’t mean that the state’s housing is suddenly going through a clearance sale. Overall, median home prices were up 5%, and inventory increased 14% year over year.

“We are bumping up against peak prices,” says Patrick Carlisle, chief market analyst for the San Francisco Bay Area at the real estate company Compass. “Whether it will just be a slowdown or a plateau or a small adjustment in home values, and how big that adjustment is, that I don’t know.”

Santa Clara County, the heart of Silicon Valley, saw the biggest jump in the number of homes on realtor.com seeing price reductions. There, the number of homes where prices were lowered zoomed up 171% in August, even as the number of listings surged 77%. The likely culprit: rampant overpricing. It turns out home costs can’t go up forever, even in the shadow of Google and Apple headquarters.

Santa Clara–based real estate broker Rick Smith is seeing the most price reductions for higher-end properties in the $3 million-and-up range. But prices on homes located farther away from the bigger companies are also falling as folks are looking for shorter commutes to work. And buyers are more hesitant to take the plunge.

“People are concerned if we hit peak and I buy now, what happens?” says Smith, of Windermere Real Estate. So they’re waiting to see what happens.

Can Seattle’s double-digit price growth go on forever?

Now don’t get too excited: Median prices in Seattle, the birthplace of tech behemoth Amazon, aren’t coming down. (They’re about $552,600 for the metro area and $692,875 within the city limits.)

Prices are still sky high in Seattle | Mike Kane

But that doesn’t mean sellers these days can slap whatever price tag they want on their residences—and add some extra zeros. Many may have gotten overzealous in what they wanted to fetch—the number of listings on realtor.com with price reductions was up a whopping 76% in August year over year. That’s the second-biggest jump among the 100 largest metropolitan areas in the country. And it may be a blinking red light signaling that the market may be about to cool.

“A lot of people think that the market is peaking and are looking to potentially cash out” while they can still fetch the most money, says Windermere Real Estate’s chief economist, Matthew Gardner. “We’ve been on double-digit price growth for years, and that is clearly unsustainable.”

Overall prices are still soaring—at least for now. They rose 14% year over year, to reach $552,550 in August. They were up 13% the year before that and 7% in the one prior.

But prices are expected to increase more slowly in the near future, as there are more homes going up for sale, giving buyers a bit more choice—and negotiating power. Andres Carbacho-Burgos, a senior economist focused on housing at Moody’s Analytics, predicts that home price growth will slow to just 2% to 3% annually over the next few years.

The boomtowns: Austin, TX, and Nashville, TN

Austin boom | Tony Frenzel

Then there are the smaller cities, like Austin, TX, and Nashville, TN, that burst onto the national scene just a few years ago—poster children for the supercharged housing recovery. Home prices rose to meteoric heights as builders raced to put up new abodes and transplants from even higher-priced metros flooded the cities. At the same time, their populations shot up 18.5% and 10.6% respectively from April 1, 2010, to July 1, 2017, according to U.S. Census data.

And then, despite all the hype, list prices did the unthinkable—they began to fall. Austin is a particular eye-opener: List prices dipped about 3%, to a median of $362,000 in August compared with the previous year, according to our realtor.com analysis. The year before that they dipped 2%. And while median sales prices (what these abodes actually fetched) actually rose 4.2% for the year, according to CoreLogic, it’s the slowest rate of growth since 2010.

“Home prices have just gone up too fast,” ATTOM’s Blomquist says of Austin. “It doesn’t mean that all of a sudden it’s a market that’s going to crash. But it does mean there are limits to what people can afford.”

Luxury homes in Austin | realtor.com

Four years ago, real estate agent Jason Bernknopf was seeing move-in ready homes in desirable central Austin fetch six to 10 offers. Two years ago, similar homes were getting two to six offers. Lately, multiple offers are more rare.

“Now things don’t go in the first day necessarily. You have to wait three to four days,” says Bernknopf, of AustinRealEstate.com. “Sellers are having to reduce some of their prices.”

Carbacho-Burgos, of Moody’s Analytics, expects prices to fall about 3% in Austin over the next few years, and level off in Nashville in the coming year or two.

A similar pattern is emerging in Nashville: The median list price on realtor.com in the country music hot spot was about $356,000 in August, representing a 1% dip from the previous year. But the median sale price climbed 7.9% year over year, to $286,000 in June, according to the latest CoreLogic data—a slower price increase than the 11.3% rise of the previous year.

Nashville real estate broker Brian Copeland, of Doorbell Real Estate, attributes the change to the finite number of buyers.

“There was a blitz of buyers in the marketplace, and now they’ve found their homes,” he says.

But he balks at labeling the city a seller’s or a buyer’s market. Instead, it’s moving toward “an equilibrium market,” where buyers aren’t whipped into a frenzy bidding on homes that went on the market hours ago and sellers can still get nearly all of their asking prices.

Nashville affiliate broker Lisa Peebles-Chagnon, of Nashville Luxury Estates, is beginning to see some pushback from buyers. Sellers, particularly those in the $500,000-and-up range, are waking up to the fact that, if they want to fetch top dollar, they need to clean and stage their abodes. In addition, they’ll need to have it pre-inspected, with any maintenance problems corrected.

A three-bedroom home in Nashville listed at $775K. | realtor.com

Freakout alert: Is another housing bubble about to pop?

It’s time to address the T. rex in the room: Could lower price appreciation, an increase in inventory, and more price cuts on individual homes spell imminent disaster for the U.S. real estate market? Could we actually be primed for another housing bubble?

Most housing experts aren’t worried. That’s because the reasons behind the crazy-high home prices are different now than they were when the market crashed in 2008. And there are more checks in place to make sure history doesn’t repeat itself.

For starters, it’s become much harder to get a mortgage since the housing bust a decade ago. Ask anyone who’s experienced it. Folks can’t come in off the street claiming they’re making big bucks and score a lucrative mortgage anymore—without documentation or good credit scores. Those who do get a mortgage are often more thoroughly vetted and are therefore less likely to default and go into foreclosure.

And despite more “For Sale” signs going up, there is still a very real housing shortage at a time when there is strong demand for homes. So it’s not as if a ton of folks are purchasing scores of homes that they can’t afford, as there simply aren’t a ton of available properties on the market. And builders aren’t putting up enough abodes to alleviate that problem due to a variety of reasons, including a lack of available land, construction labor, and regulatory burdens.

“It’s hard to see this as the bubble popping in any way close to what we saw 10 years ago,” says ATTOM’s Blomquist. “I see it more as a deflating, letting some air out of the balloon … [so there isn’t] a bigger pop down the road.”

Data Analysis by Lance Lambert.

Courtesy of NAR: https://www.realtor.com/news/trends/housing-market-finally-becoming-buyers-market/

iBuyers: Is The Convenience Worth The Cost?

Posted by admingg on Jan 21, 2019 in Buying a Home, Local Experts, Real Estate, Selling a Home, Short Sale & Foreclosure, Uncategorized | 0 comments

Forbes | Post written by Chase Marsh, Forbes Business Council

There has been a lot of hype around a newer real estate technology trend referred to as “iBuying.” In early April, Zillow announced that it was expanding its foray into the iBuyer space it originally launched in May 2017. Other companies like Opendoor, Knock, OfferPad and even Redfin are either engaged in the space or are testing services, but what does this mean for you as a homeowner thinking about selling?

As the co-founder of an NYC-based real estate platform, my inclination when evaluating real estate technology trends is simple: What does this mean for the consumer?

First, what exactly is an iBuyer? An iBuyer is a company that will make you an offer on your home within minutes (or days), sight unseen, based on a proprietary valuation model. If you choose to accept the price, you can close in as little as a couple of days. The iBuyers tout the selling experience as quick and easy, but when would you consider selling your home this way? A few examples are if you need to move to relocate for a job, you are a distressed seller or you have found your next home and want to act quickly.

This sounds awesome, but what’s the catch? When selling to an iBuyer, the other side of the transaction is a company or an investor. Investors like to make money, and the quick and easy experience for sellers doesn’t come cheap. The iBuyer will typically charge a full commission, plus build in a discount to fair value to compensate for the risk they take by providing you with “instant” liquidity. Those who work in finance would call that a “liquidity premium” because the buyer has to use their own money to buy an asset. The iBuyer runs the risk of being unable to resell the property quickly enough, having costs add up, or being unable to sell the property for a profitable price. While there isn’t a lot of data available yet, some (paywall) estimate that these costs can add up to more than 10% of the fair market value of a home compared to 5-6% in commissions with a traditional agent.

So what does this really mean for the homeowner’s bottom line? Most homeowners purchase their home with a mortgage. If you purchased your home for $400,000 with 20% down, you showed up to closing with $80,000 of your own money, which is also your equity. If the value of your home remains the same and an iBuyer offers you $380,000 for your home — a 5% discount to fair value — you will lose $20,000 on the value of your home, plus pay a 5% commission (an additional $19,000). This is a higher transaction cost compared to selling on the open market for $400,000. More importantly, compare that combined $39,000 to your original down payment of $80,000 — you will be giving up close to 50% of the equity you put into your home partly for the convenience of a quicker sale. Does the added cost make sense for the consumer?

While iBuyers provide the convenience of selling quickly, matching expert investors against consumers isn’t always the best thing for the consumer. Zillow recently explained that 90% of sellers (paywall) who engaged its Instant Offers platform decided against the iBuyer offer and chose a traditional agent instead. If 9 out of 10 consumers pass, the pricing can’t be that compelling. Choice is good, but a home is generally your largest asset, so you may want to consult an expert before “iSelling.”

https://www.forbes.com/sites/forbesnycouncil/2018/06/05/ibuyers-is-the-convenience-worth-the-cost/#74c0446c57dc

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