Save Time and Effort by Selling with an Agent

 

Save Time and Effort by Selling with an Agent

Selling a house is a time-consuming process – especially if you decide to do it on your own, known as a For Sale By Owner (FSBO). From conducting market research to reviewing legal documents, handling negotiations, and more, it’s an involved and highly detailed process that requires a lot of expertise to navigate effectively. That’s one of the reasons why the percentage of people selling their own house has declined from 19% to 8% (See graph below):To help you understand just how much time and effort it takes to sell on your own, here’s a look at a few of the things you need to think about before putting that “For Sale” sign up in your yard.

1. Making a Good First Impression

While it may sound simple, there are a lot of proven best practices to consider when prepping a house for sale.

• Do you need to take down your personal art?
• What’s the right amount of landscaping to boost your curb appeal?
• What wall colors are most appealing to buyers?

If you do this work on your own, you may invest capital and many hours into the wrong things. Your time is money – don’t waste it. An agent can help steer you in the right direction based on current market conditions to save you time and effort. Since we’re in a hot sellers' market, you don’t want to delay listing your house by focusing on things that won’t change your bottom line. These market conditions may not last, so lean on an agent to capitalize on today's low inventory while you can.

2. Pricing It Right

Real estate professionals have mission-critical information on what sells and how to maximize your profit. They’re experienced when it comes to looking at recent comparable homes that have sold in your area and understanding what price is right for your neighborhood. They use that data to price your house appropriately, maximizing your return.

In a FSBO, you’re operating without this expertise, so you’ll have to do your own homework on how to set a price that’s appropriate for your area and the condition of your home. Even with your own research, you may not find the most up-to-date information and could risk setting a price that’s inaccurate or unrealistic. If you price your house too high, you could turn buyers away before they’re even in the front door, or run into problems when it comes time for the appraisal.

3. Maximizing Your Buyer Pool (and Profit)

Contrary to popular belief, FSBOs may actually net less profit than sellers who use an agent. One of the factors that can drive profit up is effective exposure. Simply put, real estate professionals can get your house in front of more buyers via their social media followers, agency resources, and proven sales strategies. The more buyers that view a home, the more likely a bidding war becomes. According to the National Association of Realtors (NAR), the average house for sale today gets 5 offers. Using an agent to boost your exposure may help boost your sale price too.

4. Navigating Negotiations

When it comes to selling your house as a FSBO, you’ll have to handle all of the negotiations. Here are just a few of the people you’ll work with:

• The buyer, who wants the best deal possible
• The buyer’s agent, who will use their expertise to advocate for the buyer
• The inspection company, which works for the buyer and will almost always find concerns with the house
• The appraiser, who assesses the property’s value to protect the lender

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate potential snags that may pop up. When appraisals come in low and in countless other situations, they know what levers to pull, how to address the buyer and seller emotions that come with it, and when to ask for second opinions. Navigating all of this on your own takes time –a lot of it.

5. Juggling Legal Documentation

Speaking of time, consider how much free time you have to review the fine print. Just in terms of documentation, more disclosures and regulations are now mandatory. That means the stack of legal documents you need to handle as the seller is growing. It can be hard to know and truly understand all the terms and requirements. Instead of going at it alone, use an agent as your shield and advisor to help you avoid potential legal missteps.

Bottom Line

Selling your house on your own is a lot of responsibility. It’s time consuming and requires an immense amount of effort and expertise. Before you decide to sell your house yourself, let’s discuss your options so we can make sure you get the most out of the sale.

Mortgage Rates Rise Above 3%

Mortgage Rates Rise Above 3%: Economists expect borrowing costs to increase the rest of the year. So, is the era of 2% mortgage rates over?

Homebuyers: Hang in There [INFOGRAPHIC]

 

Homebuyers: Hang in There [INFOGRAPHIC]

Some Highlights

• Today’s sellers’ market provides unique challenges—and benefits—for buyers.
• Current low interest rates won’t last forever, and home prices are forecast to rise.
• If you’re a homebuyer, hang in there. Homeownership improves your quality of life, and the long-term benefits outweigh the short-term challenges.

Pre-Approval Makes All the Difference When Buying a Home

 

Pre-Approval Makes All the Difference When Buying a Home

You may have been told that it’s important to get pre-approved at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer.

Being intentional and competitive are musts when buying a home right now. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.

With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes are receiving an average of 5.1 offers for sellers to consider. As a result, bidding wars are more and more common. Pre-approval gives you an advantage if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.

Freddie Mac explains:

“By having a pre-approval letter from your lender, you're telling the seller that you're a serious buyer, and you've been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don't already have one.”

Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly changing. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate agent making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.

Bottom Line

In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.

Clever Uses for Useless Spaces

 LaTasha Beal

There are a lot of areas around the home that may seem kind of useless or wasted. Partial dividing walls, areas below (or even above) a staircase, or little nooks or alcoves that were created by the house’s unique design are all common examples. You might not think much about these areas, but if you consider them for a moment, you might see how they could be some serious missed opportunities. With a little bit of creativity, though, you can change all of that for the better.

That blank wall around a doorway doesn’t have to stay empty, and the space under the stairs isn’t just for boy wizards anymore. There are a number of ways that you can revamp these empty and otherwise useless spaces and make your home more functional and fun in the process. Here are just a few ideas to get you started.

Surfaces and Seating

Look around your home at the various nooks and crannies that seem to just be empty space. With a little bit of work, it’s easy to add seating, tables, desks, and more to these areas and make them much more functional. Once you start thinking creatively, a whole wealth of options opens up.

Some of the open space in your foyer could have benches added for you and your family to sit and get your shoes on in the morning, possibly with bins that slide under the benches to keep those shoes in when they’re not being worn. A little alcove could be a great place to install a small desk or computer workstation for homework, bill paying, creative writing, or even grabbing a quick bite to eat. You could even stick a chaise lounge or part of a sectional couch in a largely unused corner to give people a private place to wind down or relax. And this is just the tip of the iceberg.

Storage and Organization

Some of these seemingly useless places can be a great place to add storage solutions to your home. Shelves and cabinets can instantly transform empty walls, giving you additional storage even in the small spaces around doorways or in closets. Drawers are also great additions, as are sliding cabinet racks that pull out and then slide fully back into the wall. There are even more options available if you really want to get creative.

If your kitchen has a small dividing wall separating it from other rooms, consider adding a built-in wine rack within it to hold a few of your favorite bottles. A pull-out vertical cabinet next to the sink or stove can also be a great area to add a spice rack or store cutting boards. Bookcases are relatively easy to install, and if you have a large unused area, it might even be an ideal place to add a built-in pantry. Not only do details like these really liven up your home, but they can also help reduce clutter in other areas and make everything a bit more organized in general.

A Use for Every Space

You might be surprised at just how much space there is in your home for these types of projects. The options can increase even more if you start looking at the outside of your home or in the garage, too. While some projects might require a bit of work, others are simple modifications that can really go a long way toward improving both the look and functionality of your home.

If you aren’t sure where to start, consider bringing in an interior designer or general contractor to discuss what you want and see what your options are. HomeKeepr can help you find the right pro for the job, too. Sign up for a free account today to get connected with professionals in your area that can help make your renovation dreams come true. They may even be able to offer up suggestions you haven’t even thought of yet.

Why This Is Not Like 2008 Again

 

Why This Is Not Like 2008 Again

During the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies out of business (ex. Lehman Brothers) and many more into bankruptcy.

The financial crisis that accompanied the current pandemic caused hardship to certain industries and hurt many small businesses. However, it hasn’t rattled the world economy. It seems that a year later, things are slowly getting back to normal for many companies.

Why is there a drastic difference between 2008 and now?

In a post from RealtyTrac, they explain:

“We changed the rules. We told banks they needed more reserves and that they could no longer underwrite toxic mortgages. It turns out that regulation — properly done — can help us navigate financial minefields.”

Here are the results of that regulation, captured in a graph depicting the number of failed banks since 2007.

What was different this time?

The post mentioned above explains:

“In 2008 the government saw the foreclosure meltdown as a top-down problem and set aside $700 billion for banks under the Troubled Asset Relief Program (TARP). Not all of the $700 billion was used, but the important point is that the government did not act with equal fervor to help flailing homeowners, millions of whom lost their homes to foreclosures and short sales.

This time around the government forcefully moved to help ordinary citizens. Working from the bottom-up, an estimated $5.3 trillion went to the public in 2020 through such mechanisms as the Paycheck Protection Program (PPP), expanded unemployment benefits, tax incentives, and help for local governments. So far this year we have the $1.9 billion American Rescue Plan with millions of $1,400 checks as well as proposals to spend trillions more on infrastructure…Bank deposits increased by nearly $2 trillion during the past year and credit card debt fell.”

Bottom Line

Many have suffered over the past year. However, the economic toll of the current recession was nowhere near the scope of the Great Recession, and it won’t result in a housing crisis.

Home Price Appreciation Is as Simple as Supply and Demand

 

Home Price Appreciation Is as Simple as Supply and Demand

Home price appreciation continues to accelerate. Today, prices are driven by the simple concept of supply and demand. Pricing of any item is determined by how many items are available compared to how many people want to buy that item. As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale hovers at historic lows.

Let’s use three maps to show how this theory continues to affect the residential real estate market.

Map #1 – State-by-state price appreciation reported by the Federal Housing Finance Agency (FHFA) for the first quarter of 2021 compared to the first quarter of 2020:As the map shows, certain states (colored in red) have appreciated well above the national average of 12.6%.

Map #2 – The change in state-by-state inventory levels year-over-year reported by realtor.com:Comparing the two maps shows a correlation between change in listing inventory and price appreciation in many states. The best examples are Idaho, Utah, and Arizona. Though the correlation is not as easy to see in every state, the overall picture is one of causation.

The reason prices continue to accelerate is that housing inventory is still at all-time lows while demand remains high. However, this may be changing.

Is there relief around the corner?

The report by realtor.com also shows the monthly change in inventory for each state.

Map #3 – State-by-state changes in inventory levels month-over-month reported by realtor.com:As the map indicates, 39 of the 50 states (plus the District of Columbia) saw increases in inventory over the last month. This may be evidence that homeowners who have been afraid to let buyers in their homes during the pandemic are now putting their houses on the market.

We’ll know for certain as we move through the rest of the year.

Bottom Line

Some are concerned by the rapid price appreciation we’ve experienced over the last year. The maps above show that the increases were warranted based on great demand and limited supply. Going forward, if the number of homes for sale better aligns with demand, price appreciation will moderate to more historical levels.

Prepping Your Home for Sale

 Maximize Curb Appeal

Getting them through the front door starts at the curb. Manicure the lawn, trim the trees and shrubs. Pull weeds and plant some colorful flowers. Clear the walkways. Fix peeling paint and wind up that hose. Paint the address number on the curb.

Make Repairs to Visible Blemishes
Is there something that’s an eyesore, but an easy fix? If looking at it bothers you, it could bother a potential buyer and reduce the appeal of your home. Replace burnt out light bulbs, fix that loose door handle, make needed paint touch-ups.

Make a Buyer’s Entrance Inviting
Freshly paint the front door with a color that contrasts the house. Add a new welcome mat. Hang a fresh wreath on the door.

Let the Light Shine In
Removing heavy window coverings to let in the natural light we all crave. Add lamps to brighten up darker areas to add more cheer.

Remove the Clutter
This serves two purposes. First, you want your home to have an open and inviting appearance. Removing clutter will make rooms appear larger and more appealing. Second, it helps YOU prepare to move. Going through the clutter and getting rid of what you don’t need will make your move much easier.

Remove Personal Items
It will be much easier for a potential buyer to imagine your home as theirs when they can envision their own items in it.

Highlight Special Features
Use accents and color to draw eyes to special features that you want potential buyers to notice—throw pillows, plants or other eye-catching accessories.

Add Mirrors
Use mirrors to make rooms look larger and lighter. Position opposite windows for best effect.

Clean Out Cabinets and Closets
Buyers are nosy and they WILL open the cabinets. Make sure your contents are orderly and organized.

Eliminate Odors
Clean to remove any odors and do not cook any meals with heavy, lasting smells before a showing.

Add Aromas
You can easily add appeal by quartering an orange and adding it to a pot of water with a cinnamon stick. Simmer on low for an inviting aroma. Or bake a fresh batch of cookies (and leave a plate of them on the counter for visitors).

Top Reasons To Own Your Home [INFOGRAPHIC]

 

Top Reasons To Own Your Home [INFOGRAPHIC]

Some Highlights

• June is National Homeownership Month, and it’s a great time to consider the benefits of owning your own home.
• If you’re thinking of buying a home, it might just help you find the stability, community, and comfort you’ve been searching for over the past year.
• Let’s connect today to determine if homeownership is the right next step for you.

HVAC Hacks for High Ceilings

 Many people like homes with high ceilings because of the spaciousness they convey and the vertical space they provide for hangings, artwork, and a variety of other items. There are a few drawbacks to high ceilings, though, and one significant one is how difficult they can make heating and cooling your home. If you aren’t careful, those high ceilings that look so nice can result in a significant increase in your heating and cooling costs when compared to similar homes with lower ceilings. This doesn’t mean that you’re doomed to spend a lot on heating and cooling, however; there are a few things that you can do to make your HVAC system more efficient in your home even if you do have high ceilings.

Improve Air Circulation

One big thing that you can do is to get the air in your home moving by using ceiling fans or other types of fans. Even though the fans won’t heat or cool the air on their own, they do move the hot or cold air around to provide a more comfortable environment overall. This can be especially important during the hottest parts of summer and the coldest parts of winter, as in both instances fans keep hot air from collecting up high and cool air from staying too low for you to really enjoy.

A whole-house fan can help in this regard as well, especially in the heat of summer. This type of fan will remove the hottest air from your home, which keeps your attic from heating up the rest of the house or trapping warm air. Once the days start cooling down, the fan can then be shut off and insulated to keep warm air from escaping.

Make Use of the System Fan

Most people keep their HVAC system on automatic, which uses the system fan to circulate air while the air conditioning or heater is on and then shuts it off afterward. Just like with ceilings fans, though, the system fan can help to circulate air even when the unit isn’t actively heating or cooling the air. This circulation helps to eliminate stagnant, still air that can seem uncomfortable regardless of the temperature you’re shooting for.

Turning on the system fan can be useful throughout the year, but it’s especially useful during the summer when it’s coolest near the floors. HVAC registers at the floor level will move that cool air higher into your home. The added air circulation also provides some benefit in winter too, helping to get heat out from around the high ceilings and down into the rest of the house. During the milder spring and fall, you can enjoy the added air circulation if you wish or simply switch the fan back to auto.

Consider Your HVAC System

If your HVAC system can’t keep up even with additional air circulation, it may be that your unit is too exposed outdoors or simply isn’t powerful enough to fully heat and cool your home. If possible, your HVAC unit should be in the shade for at least part of the day to keep its components as cool as possible even during the heat of summer. Installing a shade or awning over the unit can be one way to accomplish this, just so long as you don’t use large supports or side pieces that could restrict airflow. If the unit is too small, though, there’s not much that you can do other than installing supplementary air conditioning or heating solutions or upgrading the whole system.

If you’re not sure whether you need an HVAC upgrade, HomeKeepr can help with this. You can connect with HVAC pros in your area who will help you determine whether your unit is the right size for your home and who can provide the maintenance necessary to keep it running smoothly all year long. Best of all, you can sign up with HomeKeepr for free.

Pending Home Sales Drop 4.4% in April

Pending Home Sales Drop 4.4% in April: All four U.S. regions recorded year-over-year increases, but only the Midwest witnessed month-over-month gains in terms of pending home sales contract transactions.

6 Reasons to Celebrate National Homeownership Month

 

6 Reasons to Celebrate National Homeownership Month

Our homes are so much more than the houses we live in. For many, they’ve also become our workplaces, schools for our children, and safe harbors in which we’ve weathered the toughest moments of a global pandemic. Today, 65.6% of Americans call their homes their own, a rate that has risen to its highest point in 8 years.

As National Homeownership Month kicks off this June, homeowners have every reason to celebrate. A survey by Gallup just ranked real estate as the best investment you can make for the eighth year in a row. However, unlike other investment options, the benefits of owning a home aren’t purely financial. Here are the top ways Americans are winning by owning a home.

Non-Financial Benefits:

1. Civic Participation: Owning a home is owning a part of your neighborhood. Homeowners have a stronger connection to their neighborhoods and are more committed to volunteer work and other ways to get involved.

2. Pride of Ownership: Owning a home is having a space that is uniquely yours. You can customize it to your personal liking and make it reflect your personality and values.

3. A Safe Space: Owning a home gives you a sense of security and privacy – two things that have become even more valuable as we’ve tackled the challenges of the recent health crisis.

Financial Benefits:

1. Forced Savings: Owning a home builds equity. Your equity grows with each payment you make toward your mortgage. This form of forced savings can be used down the road to help you accomplish your biggest financial goals.

2. Appreciation: Owning a home is making an investment that steadily gains value, and experts project home values will continue to rise in the years to come.

3. Stability: Owning a home means having better control over your future housing payments. Over the years, a mortgage stays relatively steady, but rent costs continue to rise.

Bottom Line

If you own your home, take time this June to celebrate the ways homeownership has added value to your life. If you hope to become a homeowner this year, let’s connect today to take the first steps toward achieving your goal.