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What To Repair Before You List

When you’re getting ready to list your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its strengths and fix up some of its possible weaknesses can make a big difference in how fast it sells. Here are our top five recommended repairs to make before selling your home.

Repaint walls.

Giving your home a fresh coat of paint is one of the most cost-effective ways to spruce it up, and generally, it can be a do-it-yourself project. Make sure cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat.

Repair floors.

Hardwood floors are a very desirable feature in a home, so you want to ensure they look their best by fixing scratches or dull areas. If your carpet is worn or stained, consider replacing them. And don’t forget the tile in your kitchen or bathrooms. Re-grouting can go a long way in making dingy tile work look brand new!

Refresh the landscaping.

Show buyers your home is the full package by dressing up the outside as well as the in. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix your fixtures.

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment

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Three Factors Expected to Shape the Housing Market in 2018

CoreLogic (a data provider that primarily serves the real estate industry) recently published a list of factors they believe will influence the U.S. housing market in 2018. Specifically, these are trends the company expects will reduce affordability for many home buyers in 2018.

These three factors also make a strong argument for buying a home sooner rather than later. If these forecasts prove to be accurate, buyers who postpone their purchases until later in 2018 will likely end up paying more.

In its “U.S. Economic Outlook for December 2017,” CoreLogic’s economists cited three current real estate trends that could shape the market in 2018 as well. Their forecasts include the following:

  1. Home prices will continue to rise in most parts of the country.
  2. Mortgage rates will rise gradually during 2018.
  3. Tight inventory conditions will carry over into 2018.

Home Prices Still Moving North

Rising home values could affect home buyers nationwide in 2018, by reducing affordability and buying power. This is especially true in those cities and metro areas where there is a lot of demand from buyers.

CoreLogic’s Home Price Index (HPI) for the nation rose at a pace of 6%, or more, over the past year. The annual gains were even higher in the “starter home” price range where first-time buyers tend to shop, but it has affected the broader market as well.

“We expect this trend [of appreciation] to continue in 2018, with the CoreLogic Home Price Index for the U.S. up another 5 percent,” the company stated.

This is a primary consideration for anyone who is thinking about buying a home in 2018, because it relates to affordability. Buyers who stay “on the fence” too long could encounter higher housing costs.

Mortgage Rates Expected to Rise as Well

Mortgage rates are another hot topic among home buyers, particularly those who rely on financing to make their purchases. And there’s a cautionary tale here as well. CoreLogic points to an ongoing policy shift at the Federal Reserve as one of several factors that could increase mortgage rates in 2018.

As the company wrote on its blog:

“The Federal Reserve has signaled its plan to increase its federal funds target, pushing other short-term interest rates up including initial rates on ARMs … Fixed-rate loans are forecast to rise in 2018 by at least one-half a percentage point to as much as a full percentage point.”

Granted, this is just a prediction from one group of economists. Housing and mortgage rate forecasts have been wrong in the past. But the general consensus appears to be that mortgage rates will rise during 2018, after a long period of hovering at historical lows.

This outlook, combined with the expectation of rising home values, should create a sense of urgency among buyers who are eying a purchase in 2018.

Low Housing Inventory Fuels Competition

Over the last couple of years (and especially during 2017) real estate markets across the country have experienced inventory shortages. A limited supply of homes for sale has increased competition among buyers, leading to multiple-offer scenarios and quick sales. These conditions will likely carry over into 2018, for many cities across the U.S.

“As low inventory confronts the rising desire for homeownership by a growing number of millennials, home sale conditions will favor the seller,” CoreLogic wrote.

Real estate conditions vary from one market to the next. But the trends outlined above could affect the majority of home buyers across the country in 2018.

Buying, Selling

“How are Real Estate Agents Paid?”

I get this question a lot from clients and even friends. Now usually people don’t like to discuss pay but I believe being transparent can educate others interested in the industry or those who are simply curious of the structure. Real estate agents aren’t paid by the hour, nor are they paid for the work they perform. They only get paid for their work if the transaction is formally closed. An agent can spend days and months working with a buyer or seller. They don’t get rewarded for their time if the buyer and seller don’t go through with the transaction. Agents only get paid at closing.

 

Infographic Source : DIGGSY

how are real estate agents paid

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Selling a Home in 2018: Three Things You Need to Know

Are you thinking about selling your home in 2018? If so, there are some things you need to know before you start down the path. Here are three important trends sellers should be aware of in 2018.

1. Home prices continue to rise in most markets.

Home prices across the United States have risen steadily over the last couple of years. While some cities have leveled off a bit, the overall trend has been upward in nature. This is expected to continue in 2018 as well. The economist at Zillow, for example, recently forecast that home prices nationwide would rise by an average of 3.2% over the next 12 months (through November 2018).

What it means to sellers: If you’re planning to sell your home in 2018, you should have an experienced real estate agent help you determine your list price. Chances are, your home’s value has changed since you first purchased it. That’s why it’s important to do a thorough round of research using current sale prices and other market data.

2. Housing inventory is still tight across the country.

According to housing experts, a “balanced” real estate market has around five to six months worth of supply. In November, the country on average had about a  three-month supply of homes for sale. That’s well below what is considered to be a balanced market. Some of the tightest markets – like those in the Pacific Northwest – have even less inventory. But this is a trend that applies to most cities across the country.

What it means to sellers: Housing markets with limited inventory tend to favor sellers over buyers. In such a market, there are typically plenty of buyers looking for homes, but not enough properties listed for sale to meet that demand. This gives sellers an advantage when it comes to price negotiation. With that being said, you still have to price your home realistically based on current market conditions. And this is another area where an experienced real estate agent can help you.

3. Loan limits have increased, and the mortgage industry has eased.

Federal housing officials recently increase loan limits for conventional, FHA and VA home loans. This is good news for sellers, because it increases the chance that a buyer can afford to purchase your home. Additionally, there has been some easing within the mortgage industry over the last couple of years. For example, Freddie Mac and Fannie Mae will now purchase home loans with debt-to-income ratios up to 50% (they used to set the bar lower).

These changes will likely result in a more robust mortgage market, with a higher percentage of loans that actually close. This is good news for home buyers and sellers alike.

So there you have them, three important trends a home seller should know about in 2018. Home prices are expected to continue rising, though they could slow down a bit over the coming months. Inventory conditions will likely remain tight in 2018. And it could be easier for some borrowers to qualify for mortgage financing.

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Why Pricing Is So Important When Selling a Home

Do you plan to sell a home in 2018? If so, it’s time to start thinking about your asking price. Better yet, you could work with an experienced real estate agent to determine your list price. It’s one of our specialties. In this article, we’ll look at the reasons why it’s so important to price a home effectively, in order to get a quick sale.

Pricing Your Home to Sell Quickly

When selling a home, you can set the initial asking price in one of three ways. You can price it to sell quickly, eventually, or not at all. The first option is the one that appeals to most sellers, for obvious reasons.

The primary goal when selling a home is (A) to get the highest possible price, and (B) to sell within the shortest time possible. So let’s talk about how you would price a home to sell it more quickly.

When selling a home, it can be helpful to change your mindset from “owner” to “seller.” In reality, you’re both of these things. You’re the person who owns the home, and you’re also the one who is selling it. But you’ll want to think more like a salesperson than a homeowner, especially when it comes to pricing your home for the market.

Here’s a short maxim to help you adopt a salesperson’s mindset: “It’s not personal. It’s business.” You can repeat this little mantra when determining your asking price, and when negotiating with buyers. The personal and emotional connection you have to your home does not translate into market value.

Depending on when you first purchased your home, there’s a good chance it has risen in value. That’s because home prices across the country have generally risen over the last few years — and they continue to do so in most cities. So you’ll want to have the property evaluated by a real estate agent prior to setting your price. Your agent will review recent home sales in the area and other relevant data to figure out what your house might be worth in the current market.

The Market Determines Value

And speaking of the market, that is what determines how much your home is worth. The primary market forces of supply and demand dictate how much a seller can charge for an asset (in this case, a house). So it’s important to analyze the broader real estate market — and not just the house itself — when deciding on your initial asking price. This is another area where an experienced agent can guide you.

Setting the list price too high is a common mistake among sellers, particularly those who go it alone without an agent’s help. We live in the Information Age. Thanks to the internet, home buyers are more price-savvy than ever before. Most buyers conduct a lot of research before entering the real estate market. So it’s important that you establish a realistic asking price based on (A) recent sales activity and (B) the unique features of your home.

Pricing is one of the “Three P’s” of a solid home-selling strategy. The other two P’s are preparation and promotion. If you want to sell a house quickly and for top dollar, you must prepare it for the market, price it wisely, and promote it widely.

Have questions? Please contact me if you have questions about selling your home, or if you’d like a market analysis to help determine a good price. This is one of my specialties. I can help you avoid common pitfalls and support your price with current sales data.

Gina Villanell, PA
954-812-2832
[email protected]

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Tips for Selling Your Home in Winter

Real estate experts agree that it’s generally best to sell your home during the warmer months of spring and summer. For one thing, home buyers with children will often plan their house hunting / home buying process for the summer, when their children are out of school. And they make up a pretty big segment of the buyer pool.

But what if you can’t sell your home during the spring or summer? What if it’s just not in the cards? Perhaps you cannot afford the home any more and you need to sell it fast, regardless of the season. Or maybe you have a job transfer that requires you to move during the winter months.

Whatever the reason, you need not despair. While there are certain challenges to selling a home during winter, they do not by any means make it impossible. On the contrary, if you follow the selling techniques and tips in this article (and the advice provided by your real estate agent), you should be able to sell your home in the winter nearly as easily as you would in the summer.

Contrast the Cold With Warmth

Emotions play a big role in the home buying process. Granted, buyers will be most concerned with the size of the home, the number of rooms, and other tangible items. But “gut” feelings and first impressions go a long way as well. So even in the coldest winter months, you can put this knowledge into practice. In fact, you can even take advantage of the winter cold!

The best way to do this is by showcasing the warmth and coziness of your home. By doing this, you will create a favorable first impression that buyers will carry with them throughout your house. Let’s look at an example of this concept in action.

Imagine This Realistic Scenario

Local home buyers John and Jane visit your home while house hunting. It’s cold outside, with wind and rain on top of that — the kind of conditions that make you want to hunker down someplace warm. John and Jane open the front door and enter the home. The house is well lit and exudes warmth. Candles burn atop the mantle. A fire crackles softly in the fireplace. The smell of gingerbread cookies (recently baked and offered on a glass plate) permeates the air.

Doesn’t that feel inviting? It will be the same way for buyers. So just by showcasing the warmth of your home, you have increased the likelihood of selling it. You are creating a favorable first impression by literally welcoming buyers in from the cold.

It’s a combination of psychology and physiology. The first physical impression will be one of warmth and relaxation, just as soon as the buyers walk in. This will lead to a favorable mental impression as well, and the buyers will carry this impression with them through the rest of the home. They will feel comfortable.

Conclusion

Some people will tell you that selling a home during winter is impossible. I say it depends upon two things: (A) the amount of effort you put into it, and (B) the type of real estate market you are in. Use the tips provided in this article, follow the expert advice of your real estate agent, and you have every chance of selling your home during winter!

Selling

How to Prepare for a Home Appraisal When Selling

As a home seller, you will most likely encounter a home appraiser at some point. You might even hire one yourself, to help you determine the current market value (and asking price) of your house. Or you might go through the process later on, when the buyer’s mortgage lender sends an appraiser to visit.

In either case, there are certain things you can do to prepare for the home appraisal process. You probably won’t be able to add value to the house — at least not on short notice. But you can give the appraiser a positive first impression, so he doesn’t reduce the appraised value.

How a Home Appraisal Works

If you want to know what your home is worth in the current market, a professional home appraisal is your best option. Sure, you can get a ballpark estimate from one of the many home-value websites online today. But these websites only account for recent sales data in your area. They don’t know about, or consider, the improvements and upgrades you might have made to the home. After all, how could a website possibly know about such things?

If you want to get the best possible estimate on your home for pricing purposes, you should pay for an appraisal. Through this process, a licensed home appraiser will visit your house to evaluate it in person. He will do a room-by-room assessment of the home. He will look at the overall condition. He will account for upgrades to the property and the landscaping. Lastly, he will look at recent sales data for comparable homes in your area.

In the end, you’ll be presented with an appraiser’s report. You can use this document to help determine your asking price (if you’re selling), or to determine how much equity you have (in the case of refinancing). Just bear in mind that if you do sell the home, the buyer’s lender will have their own appraiser pay a visit as well. Still, it helps to do your own research ahead of time.

How to Prepare for It

As for how to prepare for an appraisal, I can sum that up with one statement. Prepare the home like you would for a buyer’s visit, and then don’t sweat it. Many of the things on the appraiser’s checklist are things you cannot change — the size of the home, the location, the number of rooms, recent sales data, etc. You have no control over these factors. They are what they are. So you shouldn’t worry about that side of things.

Instead, focus your attention on the things you can do to prepare for a home appraisal. In essence, these are the same things you should do when preparing the home to sell:

* Make any necessary repairs around the house.
* Update any outdated fixtures (but don’t overspend in this area).
* Freshen up any paint that might be faded, chipped, etc.
* Do whatever you can to improve your curb appeal.

It’s important to note that the items listed above won’t add a lot of value to your home appraisal. They may help some, and every little bit helps. But more importantly, they will prevent the appraiser from entering your home with a negative mindset. When somebody is coming to put a value on your house, the last thing you want to do is give them a bad first impression. That’s where the above list of items comes into play.

It’s also important to tell the appraiser about any upgrades you’ve made to the house. This is critical, because it could increase the base appraised value of the home. This includes new flooring, decks, major landscaping additions, swimming pools, new cabinets or counters, etc.

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EPIC HOUSING SHORTAGE BEING REPORTED

EPIC HOUSING SHORTAGE BEING REPORTEDThe Joint Center of Housing Studies (JCHS) at Harvard University recently released their 2017 State of the Nation’s Housing Study, and a recent blog from JCHS revealed some of the more surprising aspects of the study.

The first two revelations centered around the shortage of housing inventory currently available in both existing homes and new construction.

Regarding Existing Home Inventory:

“For the fourth year in a row, the inventory of homes for sale across the US not only failed to recover, but dropped yet again. At the end of 2016 there were historically low 1.65 million homes for sale nationwide, which at the current sales rate was just 3.6 months of supply – almost half of the 6.0 months level that is considered a balanced market.”

Regarding New Home Inventory:

“Markets nationwide are still feeling the effects of the deep and extended decline in housing construction. Over the past 10 years, just 9 million new housing units were completed and added to the housing stock. This was the lowest 10-year period on records dating back to the 1970s, and far below the 14 and 15 million units averaged over the 1980s and 1990s.”

Bottom Line

The biggest challenge in today’s market is getting current homeowners and builders to realize the opportunity they have to maximize profit by selling and/or building NOW!!

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YOUR OPPORTUNITY TO ACHIEVE THE AMERICAN DREAM KEEPS GETTING BETTER!

YOUR OPPORTUNITY TO ACHIEVE THE AMERICAN DREAM KEEPS GETTING BETTER!

Forbes.com recently released the latest results of their American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the American Dream.”

The monthly index measures several different economic factors, including goods-producing employment, personal and commercial bankruptcies, building permits, startup activity, unemployment insurance claims, labor force participation, and layoffs.

The national index score was rounded out to 100.0 in January as a baseline for comparison and it rose the fourth straight month in a row to 101.8.

Alaska, coming in at 89.4, represented the lowest score on the index due in part to the recent collapse in oil prices. In contrast, Wyoming came in with the highest score at 115.1. The full results can be seen in the map below.

Your Opportunity to Achieve the American Dream Keeps Getting Better! | Keeping Current Matters

Forbes Senior Editor Kurt Badenhausen explained why many states saw a boost in the index last month:

“The American Dream Index rose for the fourth straight month to 101.8 propelled by gains in goods-producing jobs and building permits, as well as declines in unemployment claims and mass layoffs.

Goods-producing jobs (manufacturing, mining, construction and agriculture) were up for the ninth straight month in May…Building permits rose for the fourth straight month compared to the prior year.”

Bottom Line

The American Dream, for many, includes being able to own a home of one’s own. With the economy improving in many areas of the country, that dream can finally become a reality.

 

Article by Keeping Current Matters – Click here for the original article 

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NAR DATA SHOWS NOW IS A GREAT TIME TO SELL!

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. Two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house.

Let’s look at the data covered in the latest REALTORS® Confidence Index and Existing Home Sales Report.

REALTORS® CONFIDENCE INDEX

Every month, NAR surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions.” This month, the index showed (again) that home-buying demand continued to outpace supply in May.

The map below illustrates buyer demand broken down by state (the darker your state, the stronger the demand is there).

NAR Data Shows Now Is a Great Time to Sell! | Keeping Current Matters

In addition to revealing high demand, the index also mentioned that “compared to conditions in the same month last year, seller traffic conditions were ‘weak’ in 24 states, ‘stable’ in 25 states, and ‘strong’ in D.C and West Virginia.”

Takeaway: Demand for housing continues to be strong throughout 2017, but supply is struggling to keep up, and this trend is likely to continue into 2018.

THE EXISTING HOME SALES REPORT

The most important data revealed in the report was not sales, but was instead the inventory of homes for sale (supply). The report explained:

  • Total housing inventory rose 2.1% to 1.96 million homes available for sale
  • That represents a 4.2-month supply at the current sales pace
  • Unsold inventory is 8.4% lower than a year ago, marking the 24th consecutive month with year-over-year declines

According to Lawrence Yun, Chief Economist at NAR:

“Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.” 

In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values.

As we mentioned before, there is currently a 4.2- month supply, and houses are going under contract fast. The Confidence Index shows that 55% of properties were on the market for less than a month when sold.

In May, properties sold nationally were typically on the market for 27 days. As Yun notes, this will continue, unless more listings come to the market.

“With new and existing supply failing to catch up with demand, several markets this summer will continue to see homes going under contract at this remarkably fast pace of under a month.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. And the supply will continue to ‘fail to catch up with demand’ if a ‘sizable’ supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out searching for your house.

 

Article by Keeping Current Matters – Click here for the original article 

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