Menu
Menu
There are so many questions swirling around today about where the housing market is headed amid this economic slowdown. In order to best understand the current state of the market and how expert projections may play out, it’s best to look at our economic history, and how today is vastly different than the housing crisis of 2008, known as the Great Recession.
Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession – the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that caused a pause in the economy and a major shutdown in many parts of the country.
We’re simply not in the same boat as we were in 2008. Here are five big reasons why that can give you greater confidence if you’re thinking of buying a home this year.
1. Home Price Appreciation
When we look at appreciation in the visual here, there’s a big difference between the 6 years prior to the housing crash and the most recent 6 year period. Leading up to the crash, we had much higher appreciation in this country than we had coming into this year. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices were rising going into this economic slowdown, but not at the rate they were climbing back when we had runaway appreciation.
2. Mortgage Credit Availability
The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way ever since.
3. Number of Homes for Sale
One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory – an undersupply of homes available for buyers.
4. Use of Home Equity
The next chart shows the difference in how people are accessing the equity in their homes today as compared to the period leading up to the housing crash. Back then, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance highend lifestyles. Today, consumers are treating the equity in their homes much more responsibly.
5. Home Equity Earned
Today, 58.7% of homes across the country have at least 60% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to foreclose on their homes.
Bottom Line
If you’re considering buying a home this year, there’s no need to fear the market. We’re not in a housing crisis, and this is nothing like 2008.
Two things working to a buyer’s advantage today are low mortgage rates and home prices.
Here’s a look at what the experts are saying, and why sooner rather than later may be an ideal time to buy a home.
1. Low Mortgage Rates
Today’s low mortgage rates are not just low – they’re hovering near historic all-time lows.
The even better news. According to Freddie Mac, rates are forecasted to remain low through the first quarter of next year (see graph).
Lawrence Yun, Chief Economist at NAR, says:
“After a pause, home sellers are gearing up to list their properties with the reopening of the economy…Plenty of buyers also appear ready to take advantage of record-low mortgage rates and the stability that comes with these locked-in monthly payments into future years.”
Whether it’s your first home, your dream home, or a long-anticipated downsizing move, if you’re thinking of buying, now may be an ideal time to lock in a low rate.
2. Home Price Appreciation
In addition to low mortgage rates, home prices are a bright spot for buyers as well. According to forecasts from leading expert institutions, prices are projected to continue rising this year, though not as quickly as they were coming into 2020.
Dr. Frank Nothaft, Chief Economist at CoreLogic notes:
“The very low inventory of homes for sale, coupled with homebuyers’ spur of record-lowmortgage rates, will likely continue to support home price growth.”
Projected appreciation, even when small, is great news, as it indicates the value of a home you buy now will continue to grow. That’s positive equity going straight into your pocket as a homeowner.
According to the Realtors Confidence Index, buyer demand is also outpacing seller traffic.
This means there are many more buyers on the market looking for homes today than sellers listing their houses. This law of supply and demand is a big factor that’s keeping home prices in check.
Mark Fleming, Chief Economist at First American says:
“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”
With demand still stronger than supply, meaning more buyers on the market than listings available, home values should not depreciate. With that information in mind, you can feel confident about buying in the current market, if the time is right for you.
Bottom Line
Mortgage rates are hovering near historic lows and prices are not forecasted to depreciate. If you’re thinking about buying a home, now may be a great time to lock in a low mortgage rate and make your next move.
Today’s everyday reality is pretty different than it looked at the beginning of the year. We’re getting used to doing a lot of things virtually, from how we work remotely to how we engage with our friends and neighbors. One of the big changes we’re adapting to is how the common real estate transaction is being revised. Technology is making it possible for many to continue the quest for homeownership, an essential need for all, especially through the evolving health crisis.
While all regulations vary by state and locality, here’s a look at some of the new elements of the process (at least in the near-term), due to the country’s revised guidelines and protocols, and what you may need to know about each one if you’re thinking of buying or selling a home.
Every market is different, so staying in touch about how these protocols continue to change is more important today than ever before.
1. Virtual Consultations:
Instead of heading into an office, you can meet with real estate and lending professionals through video chat. We can still work together to get the process started remotely.
2. Home Searches & Virtual
Showings: According to the National Association of Realtors (NAR), the Internet is one of the three most popular information sources buyers use when searching for homes. Real estate professionals have access to listing information and can help you request a virtual showing when you’re ready to start looking. This means you can walk through digital tours of homes on your wish list while keeping you and your family safe.
3. Document Signing:
Although this is another area that varies by state, today more portions of the transaction are being done digitally. In many areas, agents and loan officers can set up accounts where you can upload the required documentation and sign electronically right from your home computer.
4. Sending Money:
Whether you need to pay for an appraisal or submit closing costs, there are options available. Depending on the transaction and local regulations, you may be able to pay some fees by credit card, and most banks will also allow you to wire funds from your account.
Sometimes you can send a check by mail, and in some states, a mobile escrow agent can pick up a check from your home.
5. Closing Process:
Again, depending on your area, a mobile notary may be able to bring the required documents to your home before the closing. If your state requires an attorney to be present, check with your legal counsel to see what options are available. Also, depending on the title company, REALTOR Magazine indicates some are allowing drive-thru closings, which is like doing a transaction at a bank window.
Although these virtual processes are starting to become more widely accepted, it does not mean that this is the way things are going to get done permanently. Under the current circumstances, however, technology is making it possible to continue much of the real estate transaction today.
Bottom Line
If you’re ready to make a move, technology can help make it happen; there are options available. Let’s connect to go over the specific regulations in our area, so you don’t have to put your real estate plans on hold.
Here’s a list of some of the most common terms used in the homebuying process that you’ll want to know.
Appraisal – A professional analysis used to estimate the value of a home. A necessary step in validating a home’s worth to you and your lender as you secure financing.
Closing Costs – The fees required to complete the real estate transaction. Paid at closing, they include points, taxes, title insurance, financing costs, and items that must be prepaid or escrowed. Ask your lender for a complete list of closing cost items.
Credit Score – A number ranging from 300-850 that’s based on an analysis of your credit history. Helps lenders determine the likelihood you’ll repay future debts.
Down Payment – Typically 3-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information.
Mortgage Rate – The interest rate you pay to borrow money to buy a home. The lower the rate, the better.
Pre-Approval Letter – A letter from a lender indicating you qualify for a mortgage of a specific amount.
Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing documentation, find your dream home, negotiate any of the details that come up, and let you know exactly what’s going on in the housing market.
If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the homebuying process, and the truth on why it should never be your only go-to source of information and support when it comes to making such an important decision.
According to the National Association of Realtors (NAR), the three most popular information sources homebuyers use in the search process are:
• Online Website (93%)
• Real Estate Agent (86%)
• Mobile/Tablet Website or App (73%)
Clearly, you’re not alone if you’re starting your search online – 93% of homebuyers are right there with you – and 86% of buyers are also getting information from a real estate agent at the same time.
Here are three reasons why working with a real estate pro in addition to your digital search is key:
1. The Full Transaction Is Complex.
There’s more to real estate than finding a home online. It’s a lonely and complicated trek around the web if you don’t have a real estate professional to also help you through the 230 possible steps you’ll face in a real estate transaction.
Determining your price, submitting an offer, and negotiating successfully are just a few of the key parts of the sequence. You’ll want someone who has been there before to guide you through it. Most importantly, you’ll need someone who knows how to navigate today’s virtual steps in the process to help keep you and your family safe and healthy along the way.
2. You Need a Skilled Negotiator.
In today’s market, hiring a talented negotiator could save you thousands, maybe even tens of thousands of dollars. From the original offer to the appraisal and the inspection, many of the intricate steps can get confusing. You need someone who is willing to be your advocate and can keep the deal together until it closes.
3. You Need an Educator.
There’s so much information out there in the news and on the Internet about home sales, prices, mortgage rates, and more. How do you know what’s fact and what’s fiction? How do you know what’s specifically going on in our area? How do you know what to offer on your dream home without paying too much or offending the seller with a lowball offer?
Dave Ramsey, known as the financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring a real estate professional who has a finger on the pulse of the market and is eager to help you learn along the way will make your buying experience an informed and educated one.
You need someone who’s going to tell you the truth, not just what they think you want to hear.
Bottom Line
If you’re ready to start your search online, don’t skip over the support of an educated, experienced, and informed professional. You need someone at your side who can answer your questions and guide you through the process. It can be complex and confusing if you go at it with the Internet alone.
If you’re thinking about buying a home this year, there are important things you can do right now to keep the homebuying process moving forward. From pre-approval for a mortgage to saving for your down payment, you can still work confidently toward homeownership.
1. Learn About the Process and How Much You Can Afford
The process of buying a home is not one to enter lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.
Keep in mind, before you start the process to purchase a home, you’ll also want to get preapproved for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. According to ConsumerReports.org:
“Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.”
Pre-approval will help you better understand how much you can afford so you can confidently make a strong offer and close the deal. Today’s low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get.
2. Save For Your Down Payment & Closing Costs
In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment and your closing costs is another critical step.
What Is a Down Payment? According to Bankrate:
“A home down payment is simply the part of a home’s purchase price that you pay up front and does not come from a mortgage lender via a loan.”
Thankfully, there are many different down payment assistance resources in the market to potentially reduce the amount you may need to put down on your home purchase.
What Are Closing Costs? Trulia says:
“When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”
If you’re concerned about saving for these items, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says:
“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”
Before you know it, you’ll have enough in your savings if you’re disciplined and thoughtful about your process.
Bottom Line
If homeownership is on your wish list this year, take a look at what you can prioritize to help you get there. Let’s connect to determine the steps you should take to start the process today.
Once you find the perfect house to call your new home, making an offer can be an intimidating part of the buying process. In such a competitive market, you’ll want to make sure you make all the right moves to ultimately land your dream home.
Below are four helpful tips provided by Freddie Mac so you can feel more confident about making a solid offer on your next home.
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, the condition of the property, and what you can afford), your agent will help you determine an offer to present.
If you’ve been pre-approved for a mortgage in advance, you’ll be that much more prepared for this step. Pre-approval will show home sellers you’re serious about buying and will allow you to make your offer with confidence as it relates to your budget, savings, expenses, and more.
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 ways to make your offer stand out in this competitive market.
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, your agent can discuss any potential repairs with the seller’s agent.
4. Act Fast
The inventory of homes listed for sale today remains well below the 6-month supply that constitutes a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to be in competition for their dream homes. Presenting an offer as quickly as possible might make a big difference when you’re ready to move forward.
Bottom Line
Whether buying your first home or your fifth, let’s talk about your needs and what you’re looking for to make sure the process goes smoothly.
Once you’ve found the right home and applied for a mortgage, there are some key things to keep in mind before you close on your home. You’re undoubtedly excited about the opportunity to decorate your new place, but before you make any large purchases, move your money around, or make any major life changes, consult your lender – someone who will be able to tell you how your financial decisions will impact your home loan.
Below is a list of things you shouldn’t do after applying for a mortgage. They’re all important to know – or simply just good reminders – for the process.
1. Don’t Deposit Cash into Your Bank Accounts.
Lenders need to source your money, and cash is not easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
2. Don’t Make Any Large
Purchases Like a New Car or Furniture for Your New Home.
New debt comes with new monthly obligations. New obligations create new qualifications.
People with new debt have higher debt to income ratios. Higher ratios make for riskier loans, and then sometimes qualified borrowers no longer qualify.
3. Don’t Co-Sign Other
Loans for Anyone. When you co-sign, you’re obligated. With that obligation comes higher ratios as well. Even if you swear you won’t be the one making the payments, your lender will have to count the payments against you.
4. Don’t Change Bank Accounts.
Remember, lenders need to source and track your assets.
That task is significantly easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
5. Don’t Apply for New Credit.
It doesn’t matter whether it’s a new credit card or a new car.
When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be impacted. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
6. Don’t Close Any Credit
Accounts. Many clients believe that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those determinants of your score.
Bottom Line
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. The best plan is to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
1. Contracts
We help with all disclosures and contracts necessary in today’s heavily regulated environment.
2. Pricing
We help you understand today’s real estate values when setting the price of a listing or making an offer to purchase.
3. Experience
We are well-educated in real estate and experienced with the entire sales process.
4. Negotiations
We act as a buffer in negotiations with all parties throughout the entire transaction.
5. Understanding of Current Market Conditions
We simply and effectively explain today’s real estate headlines and decipher what they mean to you.
There are so many questions swirling around today about where the housing market is headed amid this economic slowdown. In order to best understand the current state of the market and how expert projections may play out, it’s best to look at our economic history, and how today is vastly different than the housing crisis of 2008, known as the Great Recession.
Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession – the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that caused a pause in the economy and a major shutdown in many parts of the country.
We’re simply not in the same boat as we were in 2008. Here are five big reasons why that can give you greater confidence if you’re thinking of buying a home this year.
1. Home Price Appreciation
When we look at appreciation in the visual here, there’s a big difference between the 6 years prior to the housing crash and the most recent 6 year period. Leading up to the crash, we had much higher appreciation in this country than we had coming into this year. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices were rising going into this economic slowdown, but not at the rate they were climbing back when we had runaway appreciation.
2. Mortgage Credit Availability
The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way ever since.
3. Number of Homes for Sale
One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory – an undersupply of homes available for buyers.
4. Use of Home Equity
The next chart shows the difference in how people are accessing the equity in their homes today as compared to the period leading up to the housing crash. Back then, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance highend lifestyles. Today, consumers are treating the equity in their homes much more responsibly.
5. Home Equity Today
Today, 58.7% of homes across the country have at least 60% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to foreclose on their homes.
Bottom Line
If you’re considering selling your house to make a move this year, there’s no need to fear the market. We’re not in a housing crisis, and this is nothing like 2008.
As businesses around the country move through the various phases of reopening, it’s important to understand how housing can have a major impact on the recovery of the U.S. economy. Buying a home is a driving financial force in this process. Today, many analysts believe one of the first things we’ll be able to safely bring back is the home building sector, creating more jobs and impacting local neighborhoods in a big way.
The National Association of Home Builders (NAHB) notes the impact new construction can have on the job market:
“Building 1,000 average single-family homes creates 2,900 full-time jobs and generates $110.96 million in taxes and fees for all levels of government to support police, firefighters and schools, according to NAHB’s National Impact of Home Building and Remodeling report.”
These employment opportunities, along with the home purchase, are a huge win for the economy. The National Association of Realtors (NAR) recently shared a report that notes the full economic impact of new and existing home sales.
The report shows the average economic impact of the sale of an existing home is $43,099.
Given the sheer number of workers it requires to design, build, equip, and finalize the sale of the house, the impact more than doubles to $88,416 for a newly built home.
According to the NAHB:
“Building new homes and apartments generates jobs in industries that produce lumber, concrete, lighting fixtures, heating equipment and other products that go into a home remodeling project. Other jobs are generated in the process of transporting, storing and selling these products.
Additional jobs are generated for professionals such as architects, engineers, real estate agents, lawyers and accountants who provide services to home builders, home buyers and remodelers.”
Bottom Line
Buying a home is a substantial economic driver. As businesses continue to reopen under new safety guidelines, new construction will pick back up again too, powering the economy forward. If you’re able to buy a home this year, you can have a significant impact on your local neighborhoods and safely make the move you’ve been waiting for. It’s a win-win.
Every day that passes, people have a need to buy and sell homes. That doesn’t stop during a pandemic. If you’ve had a major life change recently, whether with your job or your family situation, you may be in a position where you need to sell your home this year. While you probably feel like timing these days hasn’t been on your side, making a move is still possible.
Rest assured, with the technology available and fewer sellers on the market in most areas, you can list your house and make it happen safely and effectively, especially when following the guidelines set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).
You may have a baby on the way, a new employment situation, a parent who moved in with you, or some other major part of your life that has changed in recent months. Buyers have those needs too, so if you’re thinking of selling, know that someone is likely looking for a home just like yours.
According to the latest Realtors Confidence Index, a survey produced by NAR, buyer demand for homes is strong or stable across the entire country. People are also spending a lot of time on the Internet right now. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers too.
There Is Less Competition Right Now
Additionally, inventory across the country was low going into the economic slowdown, and it has only decreased as many homeowners have taken their listings off the market or decided to delay selling their homes until the health crisis settles down. The same survey, however, notes that while seller traffic has been remarkably slow through the spring, and understandably so, listings should be returning to the market this summer.
According to NAR, 77% of people who are getting ready to sell their homes are preparing to list once local restrictions are lifted. Most sellers are only delaying the process temporarily. So, if you’re thinking of selling this year, don’t wait for the competition to get back into the market. Let your house stand out in the market now.
Your Trusted Real Estate Advisor Can Help
Real estate agents are working hard every single day under untraditional circumstances, tapping into new tools to help both buyers and sellers who need to continue with their plans. We’re using virtual tours to show homes currently on the market, staying connected with buyers and sellers through video chats, and leveraging resources to complete transactions electronically. We’re making sure the families we support remain safe and can keep their real estate needs on track, especially as life is changing so rapidly.
Bottom Line
Homes are still being bought and sold this year. If you need to sell your house and would like to know the current status in our local market, let’s connect to create a safe and effective plan that works for you and your family.
According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear.
In addition, CoreLogic notes the average equity mortgaged homes have today is $177,000. That’s a tremendous amount of forced savings for homeowners in today’s market.
As a homeowner, you may have more equity in your house than you realize. Using it to make your move to a new home while interest rates are hovering near historic alltime lows may be the best decision you could ever make.
In a season like we’re in now, when inventory is limited, equity is high, and interest rates are low, homeowners in a position to sell are in a great place to win big.
In the current market, your trusted real estate professional can follow all the virtual guidelines and protocols recommended by NAR and the CDC to make sure you, your family, and your buyers are safe, healthy, and protected along the way.
Bottom Line
There is fear and uncertainty everywhere we turn today, but the real estate market shouldn’t be one of those places. Let’s connect to see if your home equity positions you to make your next move sooner than you may have thought possible. Taking advantage of this market – safely and effectively – may be your best bet.
In today’s fast-paced world where answers are just a Google search away, there are some who may question the benefits of hiring a real estate professional. The reality is the addition of more information can lead to more confusion. A real estate agent can be your guide, but truth be told, not all agents are created equal. Finding the right agent for you and your family should be your top priority.
The right agent is the person who can truly walk you through the whole process, look out for your best interest, and seamlessly lead you through all the steps along the way. In today’s complex market, the way we execute real estate transactions is changing constantly, especially as more elements can be done virtually. Making sure you have the best advice on your side is mission-critical, especially when you’re trying to navigate what is likely one of the biggest transactions of your life.
So, how do you choose the perfect agent?
It starts with trust. You must trust the advice this person is going to give you, and you’ll want to begin by making sure you’re connected to a true professional. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in this market. A true professional agent can, however, give you the best advice possible based on the information and situation at hand, helping you make the necessary adjustments and best decisions along the way. The right agent – the professional – will get you the best offer available. That’s exactly what you want and deserve.
What do you need to trust your agent to do?
1. Navigate the Process
There are over 230 possible steps that take place during a successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you have a positive selling experience?
2. Negotiate on Your Behalf
Today, hiring a trusted and talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step – from the buyer submitting an original offer, to the possible renegotiation of that offer after a home inspection, to the potential cancelation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.
3. Price Your House Competitively
There’s so much information in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s going on in our local area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? Dave Ramsey, known as the financial guru, advises: “When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” Hiring a trusted professional who has a finger on the pulse of the market and is eager to help you learn will make your experience an informed and educated one. You need someone who’s going to tell you the truth, not just what they think you want to hear.
Bottom Line
Today’s real estate market is highly competitive. Having a trusted professional who’s been there before to guide you through the process is a simple step that will give you a huge advantage. Let’s make it happen together.
There are many benefits to working with a real estate professional when selling your house. During challenging times like the one we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner, or FSBO, please consider the following:
1. Your Safety Is a Priority
During this pandemic, your family’s safety comes first. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings, but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, agents are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.
2. A Powerful Online Strategy Is a Must to Attract a Buyer
Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumped to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?
3. There Are Too Many Negotiations
Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:
• The buyer, who wants the best deal possible;
• The buyer’s agent, who solely represents the best interest of the buyer;
• The inspection companies, which work for the buyer and will almost always find challenges with the house;
• The appraiser, if there is a question of value.
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.
4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress that’s being made toward a purchaser’s mortgage commitment. Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was there yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.
5. FSBOing Has Become More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
6. You Net More Money When Using an Agent
Many homeowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure: “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” The more buyers that view a home, the greater the chance a bidding war will take place.
Bottom Line
Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect to discuss your options.
When listing your house, one of your top goals will likely be to get the house sold for the best price possible. In many cases, it’s the little things that make a big impact. Here are some small projects you can do to make sure your house is in tip-top shape when you’re ready to sell.
10 Tips to Improve the Curb Appeal of Your House
1 Give your entry a facelift. Try a fresh coat of paint or a new front door.
2 Landscape your yard. A well-groomed lawn shows buyers the house was cared for.
3 Make sure all exterior lights work. Replace outdoor light bulbs.
4 Wash all windows (inside and out). Don’t let dirty windows take away from a great view.
5 Clean out your garage. Consider getting a storage unit to remove any non-essential items you want to keep.
6 Plant flowers. Depending on the climate in your area, you may want to add a pop of color around your yard.
7 Remove any lawn ornaments you are planning to bring with you to your new home.
8 Replace a worn-out welcome mat. Welcome buyers with a fresh step into your house.
9 Paint or replace the street numbers on your house. Make them more visible to potential buyers.
10 Power wash outdoor surfaces. Give them a ‘like new’ feeling (ex: siding, sidewalks, driveway).
10 Tips to Make Your House Look Like Home to Buyers
1 Clean everything. A clean house will allow buyers to picture themselves in the space and not be distracted.
2 Give every room a purpose. Even if you used it as a bonus room, clear room identity helps buyers visualize.
3 Let the light in. Bright rooms feel warm and inviting; dark rooms can feel small and gloomy.
4 Fix anything that’s broken. Buyers will notice and may offer less for your house if repairs are required.
5 Declutter your house. Thinning out your closets and pantry will show how much room is available.
6 Update paint and floors. These are things you can update to sell your house faster and for more money.
7 Organize the kitchen. Pack away any non-essentials or small appliances and clean all the surfaces.
8 Clean up. Empty all trash bins and hide any dirty laundry.
9 Fix the doors. Fix any squeaks or creaks on interior and exterior doors.
10 Replace light bulbs with new ones. Make sure all the switches work properly in your house.
In a survey by realtor.com, people thinking about selling their homes today indicated they’re generally willing to allow their agent and some potential buyers inside if done under the right conditions. They’re less comfortable, however, hosting an open house. This is understandable, given the health concerns our country is facing this year. The question is, if you need to sell your house now, what virtual practices should you use to make sure you, your family, and potential buyers stay safe throughout the process?
In today’s rapidly changing market, it’s more important than ever to make sure you have a digital game plan and an effective online marketing strategy when selling your house. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd, truly giving buyers a detailed and thorough view of your home.
So, if you’re ready to move forward, virtual practices may help you win big. While abiding by state and local regulations is a top priority, a real estate agent can help make your sale happen. Agents know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:
• Virtual tour of the home;
• Accurate and detailed listing information;
• Detailed neighborhood information;
• High-quality listing photos;
• Agent-led video chat.
After leveraging technology, if you have serious buyers who still want to see your house in person, keep in mind that according to the National Association of Realtors (NAR), there are ways to proceed safely. Here are a few of the guidelines, understanding that the top priority should always be to obey state and local restrictions first:
• Limit in-person activity;
• Require guests to wash their hands or use an alcohol-based sanitizer;
• Remove shoes or cover with booties;
• Follow CDC guidance on social distancing and wearing face coverings.
Getting comfortable with your agent – a true trusted advisor – taking these steps under the new safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.
Bottom Line
In a new era of life, things are shifting quickly, and virtual strategies for sellers may be a great option. Opening your doors up to digital approaches may be game-changing when it comes to selling your house this season. As always, a trusted real estate professional can help you safely and effectively navigate through all that’s new when it comes to making your next move. Let’s connect today to make it happen.
In today’s real estate market, setting the right price for your house is one of the most important things you can do.
According to the U.S Economic Outlook by NAR, existing home prices nationwide will increase 3.8% in 2020 and 2.1% in 2021. This means experts anticipate home values to continue climbing into next year. Low inventory is largely keeping them from depreciating. Mark Fleming, Chief Economist at First American, notes:
“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”
When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way. This strategy actually increases the number of buyers who will see your home in their search process.
Instead of trying to win the negotiation with one buyer, you should price your house so demand is maximized. This way, potential buyers don’t get deterred by a high price tag and you don’t find it sitting on the market longer than it should. By doing so, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the property.
The secret is making sure your house is Priced To Sell Immediately (PTSI). That way, your house will be seen by the most potential buyers. It will be more likely to sell at a great price before more competition comes to the market.
Bottom Line
If you’re thinking about listing your house this season, let’s discuss how to price it appropriately to maximize your exposure and your return.
1. Contracts
We help with all disclosures and contracts necessary in today’s heavily regulated environment.
2. Pricing
We help you understand today’s real estate values when setting the price of a listing or making an offer to purchase.
3. Experience
We are well-educated in real estate and experienced with the entire sales process.
4. Negotiations
We act as a buffer in negotiations with all parties throughout the entire transaction.
5. Understanding of Current Market Conditions
We simply and effectively explain today’s real estate headlines and decipher what they mean to you.
We’re sure you have questions and concerns about the real estate process.
We’d love to talk with you about what you read here and help you on the path to buying your new home.
Our contact information is below and We look forward to hearing from you.
REAL ESTATE AGENTS
Flórida Connexion
Orlando FL
5411 International Drive, Orlando, FL 32819
Flórida Connexion, LLC and Find Houzes Team encourages and supports an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. All residential real estate information on this website is subject to the Federal Fair Housing Act Title VIII of the Civil Rights Act of 1968, as amended, which makes it illegal to advertise ” any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial states, or national origin, or intention to make any such preference, limitation or discrimination.” Your state or local jurisdiction may impose additional requirements. We are committed to the letter and spirit of the United States policy for the achievement of equal housing opportunity.