Category: Selling a Home

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How Real Estate Agents Take the Fear Out of Moving

Real Estate Agents Take the Fear Out of Moving

Feeling a bit unsure, or even afraid, to move with everything going on right now? The decision to move shouldn’t be scary, it should be exciting. And the best way to eliminate any fear is to work with a pro.

Real estate agents are so much more than just transaction facilitators; they’re trusted guides to help you navigate the complexities of the housing market with confidence and ease. And a great agent can turn what may feel like a daunting process into a manageable—and even enjoyable—experience.

That’s why, in a Bright MLS survey, respondents agreed partnering with an agent is essential and helps cut down on their stress:

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Here are just a few examples of why that expertise can give you so much peace of mind.

1. Explaining the Current Market

You may be seeing misleading headlines about a potential market crash, falling prices, and more. And when you’re not an expert yourself, it’s easy to get swept up in the clickbait and let that scare you. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

A real estate agent is there to help you separate fact from fiction and to debunk any headline that does more to terrify than clarify. With their deep understanding of local market trends, home values, inventory levels, and more, they’ll help you feel more confident in your decision.

2. Walking You Through the Process Step-by-Step

Is this your first time going through the process as a buyer or a seller? Don’t worry. Your agent will walk you through every step along the way, from the initial conversation all the way to closing day. As NerdWallet explains:

“If it’s your first time buying — or selling — you’re likely to come across terms you don’t recognize and tasks that seem baffling. What’s the difference between pending and contingent? Why do you need title insurance? How thoroughly do you need to fill out disclosure forms? Your agent should be able to confidently and competently explain it all.”

And if you’ve done this before, but it’s been a while, an agent will tailor how they explain it all to your previous experience. They won’t bog you down with details, they’ll only give you as much of a refresher as you want and need.

 3. Advocating for Your Best Interests

Does the thought of dealing with the back and forth of the transaction make your palms sweaty? Put that anxiety aside. Your agent is a skilled negotiator trained for these exact scenarios. And the best part is, they work for you. So, it’s your goals they’re using that expertise to fight for.

They’ll work to secure the best possible terms for you, whether it’s getting a better price as a homebuyer or negotiating a higher sale price as a seller. This removes the fear of a bad deal or being taken advantage of during the process.

4. Solving Any Unexpected Problems Quickly

Worried something is going come up that you don’t know how to handle? Rest assured, your agent has you covered.

Agents are skilled problem-solvers. They not only address issues, but they get ahead of them before they become deal-breakers – and that helps keep the process on track. So, if any challenges do pop up, know your agent has the skills and experience necessary to find a solution that works for you.

Bottom Line

Don’t let fear or uncertainty hold you back from achieving your goals. With an expert agent by your side, you can move forward with confidence.

Source: keepingcurrentmatters.com ~ Image: Canva Pro

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Is Your House Priced Too High

Is Your House Priced Too High

Every seller wants to get their house sold quickly, for as much money as they can, with as few headaches as possible. And chances are, you’re no different.

But did you know one of the biggest things that could jeopardize your success is the asking price for your home? Pricing your house correctly is one of the most crucial steps in the selling process.

So, how do you know if you’re missing the mark? Here are four signs your high asking price might be turning potential buyers away—and why leaning on your real estate agent is the best way to course correct.

1. You’re Not Getting Many Showings or Offers

One of the most obvious signs your house may be overpriced is a lack of showings. If it’s been on the market for several weeks and only a few buyers have come to see it—or worse, you haven’t gotten any offers—it could be a clear indication the price isn’t matching up with what buyers expect. Because buyers who have been looking for a while can easily spot (and write off) a home that seems overpriced.

Your real estate agent will coach you through this, so lean on their experience for what you may want to try to bring more buyers in, including considering a price cut.

2. Buyers Have Consistent Negative Feedback after Showings

And if after the showings you do have, comments from the potential buyers aren’t great, you may need to course correct. Feedback from showings is an important part of understanding how buyers see your house. If they consistently say it’s overpriced compared to other homes they’ve seen, it’s time to reconsider your pricing strategy.

Your agent will gather and analyze this feedback for you, so you can look at how your house stacks up in the market. They can also suggest specific improvements or staging changes to better justify your asking price, or recommend one that aligns with today’s buyer expectations. As the National Association of Realtors (NAR) explains:

“Based on all the data gathered, agents may make adjustments to the initial price recommendation. This could involve adjusting for market conditions, property uniqueness, or other factors that may impact the property’s value.”

3. It’s Been on the Market for Too Long

And that lack of interest is ultimately going to lead to it sitting on the market without any serious bites. The longer it lingers, the more likely it is to raise red flags for buyers, who may wonder if something is wrong with it. Especially in today’s market with growing inventory, a long listing period means your house is stale – and that makes it even harder to sell.

Your real estate agent will be able to give you perspective on how quickly other homes in your area are selling and walk you through what’s working for other sellers. That way you can decide together if there’s something you want to do differently. As a Bankrate article says:

“Check with your agent about the average number of days homes spend on the market in your area. If your listing has been up significantly longer than average, that may be a sign to reduce the price.”

4. Your Neighbor’s House Sold Without an Issue

And here’s the last one to watch out for. If similar homes in your area are selling faster than yours, it’s a clear sign that something is off. This could be due to things like a lack of upgrades, outdated features, or a less desirable location. Or, it may be priced too high.

Your agent will keep you up to date on your competition and what changes, if any, you need to make your home more competitive. They’ll offer advice on small updates that could increase your home’s appeal or how to adjust your strategy to reflect the reality of the market today.

Bottom Line

Pricing a home correctly is both an art and a science. It requires a deep understanding of the market and buyer psychology. And when the price isn’t drawing in buyers, there’s no better resource than your agent on what you may want to do next.

Source: keepingcurrentmatters.com ~ Image: Canva Pro

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What Is Real Estate? A Definition And A Guide

What Is Real Estate? A Definition And A Guide

Interested in buying a home so you no longer have to send rent checks to your landlord each month? This thought isn’t surprising: real estate is attractive to both investors and those who want to swap renting for owning.

But while real estate is an attractive alternative or addition to stocks, bonds and mutual funds, it does come with risks and challenges.

Here’s a look at how real estate works, what makes it an attractive investment and the steps and research you need to take whether you’re buying a home for you and your family or making an investment to boost your bottom line.

Real Estate Definition

When you boil it down to the basics, real estate has a simple meaning. It’s a piece of land and the property – such as a house, office building, apartment, strip center or warehouse – that sits on it. These structures can be both above and under the ground. For instance, if you own a strip center with an underground parking lot, that parking lot would be part of your property.

Real Property Definition

If you’re buying real estate, you should also understand what the term real property means. Real property is the land and any structures affixed to it that are factored into the value of the property. For instance, if you own a home, its garage would be considered part of its real property. A movable picnic table in your backyard, though, wouldn’t. Real property also gives you the right to use your property, including selling it or leasing out space in it, as you wish.

Multiple types of real estate are available – whether you’re buying a home for yourself or to rent out to others. No matter what type of real estate you purchase, the hope is that it appreciates with time so that when you do sell, you earn a profit. Be careful, though: While real estate can be a sound investment over time, appreciation isn’t always guaranteed.

Residential Real Estate

As its name suggests, residential real estate is any type of real estate where people can live, including single-family homes, townhouses, condominiums and multifamily homes.

Many people purchase residential real estate as a place to live. But you can treat residential real estate as an investment, too. You might buy a single-family home, renovate it and then sell it for a higher price. You can also buy a single-family home and rent it to tenants, collecting monthly payments to pay off the mortgage.

Even if you buy residential real estate primarily as a place to live, your home might still turn out to be a solid investment if it’s worth more when you sell than when you purchased it.

Commercial Real Estate

Commercial real estate is any property that provides a business service and isn’t used as a living space. This kind of property includes everything from office buildings and shopping malls to restaurants, clothing stores, movie theaters, gyms and gas stations.

You can earn money by holding onto the commercial property until it increases in value, then selling for a profit. Or you can earn money by leasing space in your property to business tenants. For example, if you owned a retail strip center, you’d charge that pizza restaurant monthly rent to lease space in it. If you owned an office building, you’d charge companies to lease space in the building.

You can also use commercial real estate as a home base for your own business. You might own an office storefront if you run an insurance business, for example.

Land

You can also buy land, which can be defined as real estate that has no buildings or structures on it. If you purchase land, you can then develop or build whatever you want on it, as long as you follow the local zoning codes and regulations for that lot.

Industrial Real Estate

Industrial real estate is any structure or piece of land primarily used for manufacturing facilities, warehouses, distribution centers and factories. This type of real estate can be pricey, but it’s also valuable.

As people spend more time shopping online, and as they expect the products they buy to show up at their doors in less time, the demand for industrial real estate has only grown. This makes this property type especially valuable since the odds of it appreciating in value are high.

Make Your Offer Stand Out!

If you’re ready to buy real estate – whether as a primary residence or an investment – it’s important to understand the basics of how this business works from start to finish.

Development And Construction

New buildings – everything from homes and office buildings to apartment towers, distribution centers and shopping malls – get their start during the development and construction phase of real estate. This is when development companies, municipal officials, architects, contractors, engineers and builders work together to create a new real estate project.

If you want to buy a home, it’s usually easier to purchase one already built. Buying land and building a new home on the site, though, can leave you with a home that more closely meets your housing needs. After all, you can tell your architects and builders exactly what you want.

Working With Brokerages And Real Estate Agents

You can purchase or sell real estate on your own. But navigating this process – finding the right property, qualifying potential buyers, signing documents and handling negotiations – can be time-consuming and confusing. So, this is where real estate brokerages, real estate agents and REALTORSⓇ come in.

Real Estate Agents And REALTORS®

Real estate agents are professionals who work with both buyers and sellers. Real estate agents who are members of the National Association of REALTORSⓇ are known as REALTORSⓇ.

Real estate agents help market properties, handle the buyer and seller negotiations and make sure all the right paperwork is signed during a real estate transaction. They don’t do this for free; they usually get paid a percentage of a property’s sale.

Real Estate Brokers

All real estate agents must work under a real estate broker. A real estate broker holds a real estate license and has extensive knowledge of the real estate industry. The term “brokerage” and “broker” often get confused with one another, but a broker is a real estate professional, and a brokerage is a real estate firm.

Property Management

If you buy real estate as an investment, you might opt to pay for a property management service. As the name suggests, such services manage rental properties that you purchase but don’t live in. They handle everything from maintenance and rent collection to emergency calls from renters at 2 a.m.

Let’s say you own an apartment complex in another state. You might hire a property management company to handle the maintenance of that property. This company would hire a landscaping service, cleaning service and security service. Your property management company might also screen potential tenants, market units when they come up for rent, and handle evictions if tenants stop paying their monthly rent. If a renter’s furnace conks out, one of your property managers would take the call and send out a repair service.

Working With Mortgage Lenders

Few people can purchase real estate with cash. Most people will have to take out a mortgage loan. This is where mortgage lenders come in.

If you want to buy a single-family home for a primary residence but lack the cash to make this purchase, you’ll work with a mortgage lender. You’ll provide this lender with income-verifying documents such as your most recent paycheck stubs, bank account statements and tax returns. Your mortgage lender will also check your three-digit credit score and your three credit reports, all to make sure you can pay back the money you borrow.

If you’re approved for a loan, your lender will pay the sellers of the property you’re buying. You then pay back your lender every month with a mortgage payment. You’ll have to pay interest on these payments, which is how lenders make a profit.

Lenders don’t originate loans for free but charge a range of fees to close your mortgage loan. Fees vary, but you can expect to pay 3% – 6% of your home’s purchase price in closing costs. On a home costing $200,000, then, you may expect to pay $6,000 – $12,000 in closing costs.

Investing In Real Estate

Ready to tackle real estate investing? Be prepared to do your research.

The key to maximizing your real estate investment is to study your local market. If you want to purchase a single-family home, for instance, you should study housing market indicators such as the median sales price of homes in your neighborhood, how long it takes homes to sell and whether home values are on the rise.

The same is true if you want to invest in commercial real estate such as a warehouse, office building or strip mall. You’ll need to research how much other owners are charging tenants for rents, how much traffic pours through retail areas and how high the vacancy rates are for neighboring office buildings or strip centers.

The more research you do, the better your odds of investing in a property that’ll increase in value over time and bring in a steady stream of rental income.

Ways To Invest In Real Estate

Of course, you can employ different strategies for investing in real estate. Let’s take a look at a few:

House Flipping

When some investors purchase single-family homes for a low price, they then flip these properties and sell them for a higher price. The key is to purchase a home for a low enough price and avoid overspending on improvements so you make a solid profit when you sell.

Rental Properties

You can buy a rental property and rent out apartment buildings, single-family homes, condo buildings and commercial properties. Your monthly rent collections might cover part or all of your mortgage payment, offsetting the costs of holding onto real estate while you wait for its value to rise. If you collect enough rent, you might make a monthly profit without having to sell your investment.

REITs

Buying into REITs – real estate investment trusts – is an easier way to invest in real estate. REITs are companies that own real estate, both residential and commercial. When you buy into a REIT, you purchase a share of these properties. It’s like investing in mutual funds, but instead of stocks and bonds, you’re investing in real estate. You earn money from REITs through regular dividend payments and when the value of a REIT increases. If the value goes up, you’ll earn a profit when you sell.

Real Estate Crowdfunding

In real estate crowdfunding, investors pool their money and then use it to invest in REITs, giving people who might struggle to come up with enough money to invest on their own a chance to invest in real estate.

The Pros And Cons Of Real Estate Investing

It’s easy to look at the advantages of investing when a big payout could be waiting in the end. But before you make an investment, let’s take a look at both the advantages and disadvantages of real estate investing.

The Pros Of Investing In Real Estate

Investing in real estate has plenty of potential advantages. By investing, you can:

  • Expand your investment portfolio
  • Bring in passive income
  • Live in your real estate investment
  • Get tax breaks

The Cons Of Investing In Real Estate

While investing in real estate can prove profitable, it can also:

  • Be expensive to start
  • Require selling property to gain funds
  • Lack guaranteed profits

Real Estate FAQs

Keep reading below for answers to some frequently asked real estate questions.

What is a real estate broker?

As mentioned above, a real estate broker is essentially a step above a traditional real estate agent. They have additional education and have passed the broker license exam, allowing them to employ other real estate agents under their license.

How can I finance a real estate purchase?

Real estate is most often financed through a mortgage. There are many different types of mortgages and lenders, so if you’re thinking about purchasing real estate, be sure to research your options and find the ones that best fit your situation.

What is digital real estate?

Digital real estate is any website or other online asset. This internet property can be bought and sold similarly to traditional real estate.

The Bottom Line

Real estate involves many terms that are important to understand, and investing is one of them. Investing in real estate can be a smart financial move if you understand your market, are willing to take on the risks, and borrow only what you can afford to pay back.

Source: rocketmortgage.com ~ By: Dan Rafter ~ Image: Canva

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How to Sell Your Home Super Fast

Sell Your Home Super Fast

The more work you do before you tell the world you have a house to sell, the faster it will likely happen.

Experts say one home improvement that can really help is a new paint job.

Key Takeaways:

  • You may be able to sell your house fast, but you can’t close fast. Expect that to take at least a month.
  • The more work you do before you tell the world you have a house to sell, the faster it will likely happen.
  • There are some corners you can’t cut, even if you try to sell quickly. You have to be upfront about any needed home improvements.

Some people need to sell their home, like, now. Maybe you are moving yourself, or you need money quickly. Perhaps there’s been a death in the family, a divorce, or you found your dream house, but you can’t move forward unless you sell your current home first. Whatever the reason, you’ve got to sell your home now, and there’s simply no time to upgrade, fix up the home or add curb appeal.

How do you sell your home super fast – and still get a reasonable deal?

Those two goals are sometimes incompatible. It’s also important to realize that due to the laws in your state and how your lender works, you may make a sale in a day or less, but you won’t be able to actually close on a the deal for weeks or even months – generally about 30 to 45 days, according to Rocket Mortgage. But if you’re looking to make a quick sale, here’s a roadmap.

Do a Lot of Work Beforehand

This advice doesn’t help somebody who found out yesterday they need to sell their home, and they’d like to do it today. But if you’re buying and selling a home in the same window, and you have some time before you start this game of musical houses, it will go faster and more smoothly if you can do some work beforehand.

The more prepared you are, the faster your home should sell. In theory.

Adie Kriegstein, a licensed real estate salesperson at Compass in New York City, has some suggestions for any home seller who wants to sell their home fast:

  • Make home improvements before you even list your home. You want your home “in the best possible condition for both marketing purposes and for those who will come to view it in person,” Kriegstein says. One home improvement that can really help is a new paint job, she says. You should consider painting the rooms white, she adds, if the walls aren’t already “naturally colored.”
  • Clean. Scrub everything, including the windows. “Make sure to declutter,” Kriegstein says. It’s hard for a buyer to imagine living in your house if your stuff, including your old CD collection and a pile of laundry, is everywhere.
  • Think about how you’re going to market your home. “You want to win the beauty contest,” Kriegstein says. She suggests hiring a professional photographer, possibly someone who can also shoot video. “In this digital age, marketing is a must,” she says. “People will start their search online, so it’s important to have a floor plan, stunning photos and a video.”

San Francisco real estate agent Ying He agrees that preparation is the best way to sell a home fast.
“All the painting, landscaping, and staging need to be finished before we go alive to best present the property,” she says. “Also, on the paperwork front, we need to make sure all the disclosures are ready to go.”

Pricing Is Vital

As insight goes, this is about as obvious as it gets. Still, you want to be smart about how you choose your price. You could slash the price of your home by 50% to try to sell it in a hurry, but your goal isn’t to sell your home fast and also go broke fast.

“You’ll need to price your property at what we refer to as the compelling price point or even slightly under that – depending on how fast you need or want to sell,” says Sabrina Conti Erangey, a real estate broker associate with Baird & Warner who is based near Chicago in Elmhurst, Illinois.

The “compelling price point,” Erangey says, “is slightly below the market value pricing but just enough to ramp up demand and drive up the sales price.”

This is the sweet spot where buyers spot a good deal, and they descend upon your home to take advantage of the deal and begin offering bids. This drives the price up, so you still end up doing well.

Timing Is Crucial

“Timing is extremely important. We don’t want to waste a single day on the market,” He says. “When it comes to timing, there are several layers. The first is seasonality. In San Francisco, the best time for sellers to go on market is actually the very beginning of the year. Spring and fall are good. Summer and winter are less ideal due to a smaller buyer pool.”

You also want to think about other factors, like holidays, the weather or an election. You can start selling your home in the dead of winter or during the rainy season, but “weather can be extremely important, especially for houses with a view,” He points out.

She suggests that the best day to have your property go live is on a Thursday to maximize weekend open house traffic.

Decide What Matters More – a Fast Sale or the Best Price?

You can sell a house fast and get an excellent price, real estate agents say. But if your house needs a lot of work and you won’t budge on selling as soon as possible, you may not get the best price. One way or another, you’ll need to bow to reality.

That includes trying to fix some of the issues with your home, Erangey says.

“In a fast sale, you want to do your due diligence as a seller and do what we refer to as a pre-listing walkthrough,” she says. “During this walkthrough, we will bring up factors that could be raised during the inspection and connect our clients with our vendors to make appropriate adjustments and changes to avoid concerning buyers.”

That might mean something simple, like digging up recent receipts showing that you had your heating, ventilation, and air-conditioning system fixed, Erangey says. If those need replacing or fixing, Erangey would encourage the seller to do that. You’ll sell your house faster and take less of a hit on the price, she says, if the worst of your home improvement projects are addressed.

“Price and condition determine everything,” Erangey says.

He puts it this way: If you try to sell your home quickly and cut corners, such as not fixing obvious problems or making subtle but critical repairs, you could defeat your own purpose. You may find yourself with a ready-to-sign contract and then realize, thanks to issues your buyer or the buyer’s home inspector has discovered, your interested party is now less keen and wants to negotiate your price downward – or even back out of the sale altogether.

If you have to start over, you won’t sell your home super fast, but possibly super slow.

Source: realestate.usnews.com ~ By: Geoff Williams ~ Image: Canva Pro

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How to Price Your Home to Sell

pricing your home for sale

Pricing your house to sell requires a “Goldilocks” frame of mind. A price that’s “just right” is the one that attracts a buyer, is in line with the market, and puts the most money in your pocket.

It took Goldilocks some time to find exactly what worked for her, but you might not have that luxury when selling your house. So here are some do’s and don’ts for pricing your home to sell.

Don’t price it too high

When selling a home, first impressions matter. Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing.

Let’s say you want $299,000 for your home, but you list it at $315,000 to see if anyone will pay the higher price. A buyer with a budget of $299,000 may search online only for homes priced through $300,000. Because of the way it’s priced, your home won’t appear in any of those searches, and you could miss out on a potential buyer.

Don’t price it too low

Listing a home below its market value is a strategy some sellers use to generate interest in the property and possibly spark a bidding war. It’s also used by sellers who need to sell their property quickly.

But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.

Do consider the comps

Comparable sales or “comps” are recently sold homes that are similar to yours in size, location, and features. Armed with comps, your listing agent can put together a comprehensive report called a comparative market analysis, or CMA. A CMA can help you determine a realistic listing price.

“One of the challenges we have as a seller’s agent is to really pull back the curtain and show data,” says Michael J. Franco, a licensed associate real estate broker at Compass in New York City. “You have to prove to the seller that their place isn’t really different unless it really is unique, then it deserves a premium.”

Don’t overvalue your home’s upgrades

Spending $70,000 to renovate your kitchen and install a swimming pool means you can add $70,000 to your home’s selling price, right? Not always.

While some renovations may increase your home’s value, it’s unlikely you’ll get back the full dollar amount that you put in. Before investing in any improvements, look at comparable homes for sale near you to see if upgrades are in line with the neighborhood and if they appear to have an impact on resale value.

Don’t let your emotions get the best of you

Market research should be your guide when pricing a home to sell, not your emotions. A buyer doesn’t care what you paid for the house, the sweat equity you’ve put into the property, the years of memories you’ve created in the home, or how much profit you hope for.

“You have to separate yourself emotionally from the property,” Franco says. “Yes, hold on to your memories and the experiences you’ve had in the home. But when you’re selling, you have to focus on it as a business transaction. Chances are, it’s your biggest asset and you have to do what’s right.”

Do adjust the price or approach as needed

If, despite your efforts to identify the “just right” price, your home isn’t attracting offers, regroup with your agent as soon as possible. Try to figure out why your home isn’t selling and be open to making adjustments that will fix the problem.

Pricing: While it’s unlikely in a hot market, if your home is languishing without an offer, it may be necessary to drop the price. Perhaps the market has changed since your agent conducted the CMA. Take a look at some more comparable properties and adjust accordingly.

Marketing: Make sure there aren’t any errors in your listing. Confirm with your agent that the home is being shown in all of the appropriate places. Your agent may need to boost marketing efforts to increase the number of people who see your listing, like offering more open houses or posting 3D tours on social media.

Alternate ways to sell: If your home isn’t attracting a traditional buyer, you may have to look into other options, like selling to an iBuyer. An iBuyer is a real estate company that uses technology to buy homes with cash. While the process is typically faster and you don’t have to get your house ready to sell, iBuyers don’t operate in every market and you may need to have a specific style of home to qualify.

Condition: Talk with your agent about what improvements may improve the salability of your home, including necessary repairs, staging, or curb appeal upgrades. A little TLC can go a long way.

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Thinking of Selling? You Want an Agent with These Skills

Selling your Home

Selling your house is a big decision. Your home is one of the biggest investments you’ve probably ever made, and it’s a place where you’ve created countless memories. That combo means there’s going to be a lot of emotions involved. You want someone who understands your perspective, knows what it feels like, and is an expert at helping homeowners just like you navigate the process of selling a home.

That’s where a good listing agent, also known as a seller’s agent, comes in. Here are just a few skills you’ll want your agent to have.

The Ability To Turn Something Complex into Something Simple

Some agents are going to use big, fancy real estate terms to try and impress you. But you shouldn’t have to know all the industry jargon in order to understand what they’re saying. If anything, it’s an agent’s job to keep it simple, so you don’t get overwhelmed or confused.

A great agent is going to be someone who is very good at explaining what’s happening in the housing market in a way that’s easy to understand. But they’ll take it one step further than that. They’ll explain what’s going on and, specifically, what that means for you. That way you’re always in the loop and it’s a lot easier to feel confident when you’re making a big decision. As Business Insider explains:

“Maybe you have a better rapport with one of the agents you’re considering, or you just feel like they’re easier to approach. You’re going to be working closely with this person, so it’s important to choose an agent you’re comfortable with.”

A Data-Based Approach on How To Price Your House

While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean your house will sit on the market longer because the higher price is actually turning away buyers.

Instead, partner with an agent who’s going to have an open conversation about how they recommend you should price your house. They won’t throw out a number just to win your listing. A great agent will back up their number with solid data, explain their pricing strategy, and make sure you’re both on the same page. As NerdWallet explains:

“An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.”

A Fair, but Objective Negotiator

The home-selling process can be emotional, especially if you’ve been in your house for a long time. But that sentimental tie can make it harder to be objective during negotiations. That’s where a trusted professional can really make a difference.

They’re skilled negotiators who know how to stay calm under pressure. You can count on them to handle the back-and-forth and have your best interests at heart throughout the process. Not to mention, they’ll be able to rely on their market expertise and what they’re seeing work in other transactions to offer the best advice possible. As Rocket Mortgage explains:

“Whether this is your first or third time selling a house, listing agents work to help make the home selling process smoother and less stressful. These real estate professionals know the ins and outs of the industry and can help you secure the best deal.”

Bottom Line

Whether you’re a first-time seller or you’ve been through this before, a great listing agent is the key to your success.  Feel free to connect with me. I am a skilled local expert and I will be with you through every step of the process.

Source: keepingcurrentmatters.com ~ Image: Canva pro

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Negotiation Process of Selling a Home

Selling a Home

The negotiation process can be one of the most exciting parts of selling a home, but until you get there, you may be wringing your hands, worried that you won’t be able to secure the deal. Will you be deluged with offers, or will your home be pervaded by the lulling but ever-so-unnerving sound of crickets?

And if you do get just one or two offers, and they’re not as high as you’d hoped, what do you do?

Here’s how to navigate the real estate negotiation process and come to a deal that will make you happy. More than happy, even.

Getting those offers in

If you’re not in a rush to sell your house, it may make sense to see what offers roll in over a few months. But if you need to sell quickly (or just don’t want to wait), your real estate agent (here’s how to find a real estate agent in your area) might be able to push things along by setting a deadline—usually within a week or two of listing.

“When you expect multiple offers because your price is competitive or your home is in a popular neighborhood, you should always set a deadline,” says Cathy Baumbusch, a real estate agent with Re/Max Executives in Arlington, VA.

But you’ll need to be confident that your home is priced right, relative to its appeal. If all goes well, you can sell for over asking.

The negotiation process begins

Once you have an offer in hand, you’re probably scanning for one thing: the price.

“In our area, houses rarely sell for less than 90% to 95% of the asking price,” Baumbusch says. The offers on your home may fall in that range, but don’t rely on price alone. According to Baumbusch, every offer has five important components:

    • Price
    • Closing assistance
    • Closing date
    • Buyer financing
    • Contingencies

Some offers may seem great on the surface, but significantly less so once you dig in. For instance: Is the buyer asking for closing assistance? Often first-time buyers don’t have enough money to cover the down payment and the closing costs, so they’ll ask the seller to foot some of the bill—about 2% to 3% of the total closing costs is a common request. If you agree, any assistance you give will lower your bottom line, so factor this amount into the asking price.

The buyer’s time frame to close may not seem like a big deal on the surface, but it can actually matter a lot, especially if you give the buyer a long leash. If the deal falls through, you’ll have to put the house back on the market and wait for more offers. On the other hand, if the buyer wants to move in right away, you might be left scrambling (and, quite possibly, temporarily homeless). Make sure the timing works for you.

Good so far? Now make sure the buyer has financing. Hopefully, the buyer’s agent included a note verifying the buyer’s financing and how much the buyer will put toward the down payment and earnest money. The last thing you want is to accept an offer, only to find out afterward that the buyer can’t come up with the necessary cash.

Finally, look over contingencies, which give the buyer the option to back out of the deal if something goes wrong. The buyer may say the final sale is contingent on a home inspection, or he may want to move in early. Both requests are fairly standard and acceptable. But keep an eye out for buyers asking for too much. For example, “it would be over the line for a buyer to ask a seller to wait more than 30 to 60 days for the property to go under contract,” Baumbusch says.

When to counteroffer

The negotiation process doesn’t end here. You always have the option to return the buyer’s offer with a counteroffer of your own.

“You should always counter if the price is not what you are looking for, or if you can’t support the amount of closing cost help they are looking for,” Baumbusch says. But if you do, keep it reasonable. If the buyer was 15% below asking, he probably won’t go up to full asking amount. Consider being flexible with your price; you can always make it up in other ways. For example, submitting a counter with a slightly higher price and contingencies that may help you—like having the buyer waive an inspection to speed things along—might pay off in the end.

If you don’t agree with the buyer’s contingencies, consider your position first before making the next step in the negotiation process.

“If your home is in a popular area, [you] have an advantage,” Baumbusch says. Keep in mind, the buyer may not accept your counter outright. You can play “Let’s Make a Deal,” but always consider your bottom line.

Is it worth it to keep countering for a small amount of money or single contingency?

Don’t get trapped in a loop; consider the buyer’s side of things. These prospective buyers may be maxed out. To help you decide, ask your listing agent to call the buyer’s agent and hash it out it with them. Get some insight into the buyer’s state of mind, and whether they can budge.

Source: realtor.com ~ Image: Canva Pro

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What do home inspectors look for? 6 key things

Home Inspection

When you’re under contract on a new house, it’s easy to fall in love with its potential. But before you linger on cloud nine too long, you’ll need the reality check of a home inspection. During a home inspection, a professionally trained inspector visually and physically evaluates the entire structure, from the foundation up to the roof, looking for potential defects, safety issues, environmental issues, or other red flags.

In particularly competitive markets, some buyers consider waiving the home inspection to make their offer stand out. But think very carefully before doing so: A house is most likely the largest purchase you’ll ever make. The last thing you want to do is invest a ton of money only to find out your new home needs extensive repairs or remediation. 

That’s why a home inspection is important: A good inspector can spot minor problems before they become major ones, and speak to the quality of construction and maintenance the home has been through. A home inspection helps you know as much as you can about the property before buying it, says Kenneth Carr of Precision Inspections, a licensed home inspector in New York, Connecticut, and Massachusetts. “It is part of due diligence,” Carr says. “Just as you have your attorney review the contracts, you should have your home inspector review the property, because there may be something there that you don’t have the expertise to know.”

What do home inspectors look for?

“We are looking for things that aren’t working as designed,” says Carr. “We have to describe what’s there, what may be missing, and things that are either not working as they should or not working at all, and bring it to the attention of the buyer.” Many inspectors even recommend that homebuyers attend the inspection, which allows them to see things for themselves and ask questions.

While each state provides minimum requirements that must be checked out, “how an inspector goes about inspecting the property is up to each inspector,” he says. “If you belong to an organization like ASHI [the American Society of Home Inspectors], there is greater training specialization needed, as inspectors are expected to take continuing education classes as part of their membership and state licensing.”

Here are the top six things an inspector will always look for when assessing a property.

1. Basic safety features

Whether a home is safe to live in is a primary concern for any home inspector, which is why many of the things on the home inspector’s standard checklist are safety items. Things they’re on the lookout for include:

    • Smoke detectors: Does the home have them? Are they installed correctly and in the right places (in or near sleeping areas, not too close to the stove)?
    • Ground fault interrupters: These are the special plugs that protect you from shock in areas where water and electricity are in proximity, such as bathrooms and kitchens.
    • Safety glass: Are the glass features installed near stairs or water (like tubs and showers), made of tempered safety glass?
    • Indoor and outdoor stairs: Are the steps a uniform, safe height and angle? Are they built to code? Do they have handrails and guardrails correctly installed and in the right places?

2. The foundation and exterior ‘envelope’

No matter how old the home is, your inspector will look at the basic “envelope” that shields the structure from weather and water. The inspector will walk the property to check for cracks in the foundation and look at rain gutters and flashings, drainage, and window seals.

He or she will also inspect how the walls and roof intersect. For example, an inspector doesn’t want to see lots of caulk there, because that usually means it’s not properly waterproofed. When done right, waterproofing is part of the home design — not something added after the fact. If signs of prior water penetration are found, he or she will also check whether the issue was fixed properly.

3. The roof

An inspector can tell if a roof was done properly by a professional, or sloppily by an amateur. They’ll want to make sure your roof is well constructed, isn’t showing signs of age or deterioration, and will protect you from the elements. They’ll also check to see that any openings — like a chimney or skylights — are properly sealed, flashed, and free of moss growth and debris.

The older the house, the more likely it is that the roof has already been resurfaced at least once, and roofs do need replacement from time to time, which can be an expensive process. As part of their inspection report, an inspector will typically provide an estimate of how many good years the roof has left before you should consider replacing it.

4. Major systems: electrical, plumbing, etc.

The inspector will check out all of your home’s most important interior systems, from electrical and plumbing to heating and air conditioning.

    • Heating and air: How well does the heating and cooling work? Do they serve every area in the home evenly? Is there good airflow in every room? If there’s an air return, is it properly located and sized to serve the house efficiently?
    • Plumbing: The inspector will check to see that the plumbing is in good shape, provides enough water to the house, and drains as it should — no one wants leaky pipes letting water into their home and causing flooding or mold problems. He or she will also ensure there is sufficient water flow and pressure. If the house uses well water, ask to have the pump and water quality checked.
    • Electrical: Electricity is essential for modern life, but it can also be dangerous. An inspector will make sure that your electrical system is safe, provides enough power for the house, and is installed and grounded correctly. They’ll also check to make sure there are enough outlets and look at the electrical panel — an old or obsolete panel may become a fire hazard. 

5. Ventilation

Dangerous fumes can build up in a house if appliances that run on oil or natural gas, like water heaters for example, aren’t installed and configured the right way. Proper ventilation is crucial. Many of these appliances have safety features built-in, but an inspector will make sure the safety equipment is correctly enabled.

Besides checking the water heater’s ventilation, the inspector will also check its maximum temperature to make sure your tap water can’t get hot enough to burn anyone. Additionally, he or she will make sure that clothes dryers are properly vented to catch lint and expel hot air, which helps prevent house fires and may also test for radon.

6. Signs a specialist is needed

Some areas or conditions might need further examination, often by a specific type of pro with specialized equipment. A good inspector will know when to call in the heavy hitters, and may even have a network of specialists they can refer you to.

For example, a fireplace is one feature that always gets careful evaluation. The inspector wants to see that it vents well and doesn’t have any conditions that could become a hazard, like cracks, blockages, or excessive buildup. If they see something concerning, your inspector might recommend a fireplace inspector, who will use a specialized camera to scope out the interior of the chimney and flue.

Sewers are another area that calls for extra care, especially in an older house. A septic problem hidden beneath your yard can be one of the most expensive repairs a homeowner must make. If you’re buying a home that has sewer service, consider calling in a specialist to have the whole system (from the main house to the street) video scoped or a video inspection that goes through pipes, holes, and other areas.

Source: bankrate.com ~ By: Dori Zinn & Grace Kim ~ Image: Canva Pro

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Buying or Selling a Home in Winter: What You Need to Know

Buying or Selling a Home in Winter

Nobody buys or sells a home in the winter, right? Well, if you checked the numbers, you’d find that plenty of homes are sold during the coldest months of the year. From December 2022 to February 2023, nearly 800,000 homes sold in the U.S. That’s a lot of houses!

In other words, the number of homes bought and sold during the winter is nothing to sneeze at. Plus, since most buyers search for homes online these days, it’s not like outdoor temperatures are keeping potential buyers from looking around.

If you’re wondering whether you should put off buying or selling a home until spring, there’s no need to wait. In fact, there are several advantages to buying or selling while Jack Frost is nipping at your nose. Let’s look at some of the biggest ones and go over some tips that’ll get you moving in the right direction.

Tips for Selling in the Winter

Nothing says welcome home quite like the smell of a gingerbread candle and some Christmas lights—it’s easier to stage a house and make it feel like home in the wintertime!

Here are a few tips to help you set the buying mood:

    • Keep it simple. If you’re selling around a holiday and have decorations up, make sure they accent—not overpower—a room. Less is more.
    • Crank up the cozy. Light a fire in the hearth, play soft holiday music in the background, and prepare fresh-baked goods or mulled cider for guests.
    • Shine a light outside. Winter days get dark early. Brighten your home’s exterior with outdoor spotlights.
    • Take down outside decor. Nothing says “my home won’t sell” like a house with reindeer inflatables on the lawn in February.
    • Avoid a winter wonderland. Snow is great—unless we’re talking about outside shots of your home. Buyers want to see details of the house, not a blanket of snow. Make sure you have clear-weather photos of your home.

Remember, the nicer your home looks, the more likely it is to sell—and for more money.

Advantages of Selling Your Home in the Winter

Okay, huddle up, home sellers. Let’s unpack the perks of selling when the air gets chilly.

1. You’ll face less competition.

Come spring, more sellers will flood the market and your home will be just another fish in a great big pond. But in winter, you’ve got a limited number of sellers on the market. For example, the number of active home listings in the U.S. during 2021 and 2022 dipped during the winter and didn’t begin rebounding until the spring of the following year.2

If that pattern repeats in 2023–2024, you’ll have less competition on the market if you list your home during the winter! Buyers have fewer homes to choose from, which means you could sell your house faster.

2. Buyers often mean business.

Most folks want to curl up under a blanket next to a warm fire on a cold winter day. If a buyer is trudging around in freezing weather or breaking away from their holiday schedule to look at your home, they must be serious. That’s because many winter buyers are working against a deadline, whether it’s an expiring lease, relocation, or a contract on their current home. They may also be trying to snag some tax breaks before the end of the year.

3. People have time off during the holidays.

You may think people are less likely to see your home in the midst of their hectic holiday schedules. That can definitely be true. But keep in mind, that many people also have more time off around the holidays. That means more time for browsing their favorite home apps, dreaming about their future decor, and even scheduling home showings.

Tips for Buying in the Winter

Alright, home buyers. Now it’s your turn. Below are some tips for buying a house when the weather outside is frightful.

    • Don’t buy until you’re debt-free with an emergency fund. Hold off on buying a home if you haven’t paid off all your consumer debt (think credit cards, car notes, and student loans) or saved up a full emergency fund worth 3–6 months of your typical expenses. You should prioritize those financial goals first.
    • Save up a strong down payment. You need to make a strong down payment when you buy a home because a bigger down payment means smaller monthly payments and less debt overall. Aim for a 20% down payment since that’ll keep you from having to pay monthly private mortgage insurance fees. (A 5–10% down payment is fine if you’re a first-time home buyer, though.)
    • Stick to your budget. Sure, home prices might drop a bit with the temperatures. But that doesn’t mean you should justify spending any more than 25% of your monthly take-home pay on monthly housing payments. To make sure your winter home purchase is a blessing and not a curse, calculate how much house you can afford and stick to it.
    • Negotiate with confidence. Remember, there isn’t much competition. So, sellers will probably be willing to work with you. If the home inspection brings up some issues, don’t be afraid to ask your seller to make repairs or lower the asking price.

Advantages of Buying Your Home in the Winter

Now, here are some of the biggest advantages to buying a home in winter:

1. You’ll have less competition.

Home sellers aren’t the only ones who face less competition during the winter! As we saw earlier, home sales take a bit of a plunge during the winter. So, typically, you won’t have to deal with as many competing buyers as you would if you waited to buy in spring. This probably means you don’t have to worry as much about someone else snagging your dream home before you can submit an offer, or about getting caught in a bidding war.

It’s kind of like when someone brings in holiday treats to share with the office but most of your coworkers are out of town. You get first dibs on the best desserts!

2. You may get a better deal.

Since supply and demand for housing are both down during the winter months, you might be able to save money on your purchase! Hard to believe? Get this: The median sales price of homes sold from December 2022 to February 2023 was about $20,000 lower than homes sold from March to May 2023.

That means people who bought their homes during winter saved tens of thousands of dollars compared to those who waited to buy in the spring or summer! That might make any challenges of buying during the wintertime worthwhile.

3. You can lock in the current mortgage rate.

As you’ve probably heard, interest rates have climbed up a lot lately. Well, there’s a chance that the trend will continue moving forward since the Federal Reserve (the Fed) could raise the national interest rate again at its next meeting. So, if you’re going to use a mortgage to buy a house, locking in your rate now could save you from paying even more down the road. And if rates wind up going down over the next year or so, you can always refinance.

If you follow these tips, there’s hope you’ll find the house you want and get a good price on it this winter.

Ready to Buy or Sell Your Home in Winter?

With all these advantages on your side, hopefully buying or selling your home in the winter won’t feel so daunting. We know you’ve probably got a lot on your plate this time of year though. So, we’ve put together some resources to help you check everything off your list. For a step-by-step plan that’ll walk you through every part of the process, use our free Home Buyers Guide or Home Sellers Guide.

Source: ramseysolutions.com ~ Image: Canva Pro

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What to Expect From the Housing Market in the Second Half of 2023

What to Expect From the Housing Market in the Second Half of 2023

The outlook of the U.S. housing market in the second half of the year comes down to two familiar words: mortgage rates.

In the first half, high rates have kept housing in a state of suspended animation, as borrowing costs priced out prospective buyers, while homeowners with mortgage rates of 3% or less are unwilling to sell and face having to borrow for their next home at something closer to 7%.

KEY TAKEAWAYS

  • Experts expect mortgage rates to even out around 6% by the end of the year.
  • A new trend of domestic migration into Sun Belt cities is expected to continue.
  • New single family home building will make a dent in the need for housing inventory.

Despite high demand and home prices that are now starting to fall, the market is still relatively sluggish at a point in the year where it’s historically at a peak. While new construction is rising to meet some of the demand for single-family homes, it won’t be enough to meet the current market needs.

So what can homebuyers expect for the latter half of 2023? While the Federal Reserve is expected to continue raising rates through the end of the year, industry leaders foresee mortgage rates dropping and homebuying subsequently picking up as home prices fall and affordability improves.

Still, few expect a recovery that would allow the market to catch up with the pace of activity the U.S. saw in 2022.

Rates Will Determine Trajectory of Market

The Federal Reserve has signaled that more rate hikes may be in store before the end of the year. Once the rate hikes slow or stop, affordability concerns will slowly start to ease, according to Realtor Chief Economist Danielle Hale.

“It means affordability will start to improve, but not drastically,” Hale said.

Experts see mortgage rates headed on a more stable path. As inflation is expected to continue cooling, mortgage rates are expected to decline.  Another peak is anticipated for June, but Hale predicts it could be the final uptick before conditions begin to even out.

“We think that June will have been another temporary peak in mortgage rates and we’ll see them gradually ease from the 6.7% range they’ve been in recently, down to near 6% at the end of the year, likely hovering just above 6%,” Hale said in an email.

That evening out around 6% will help homebuyers who have been waiting on the sidelines to re-enter the market, according to National Association of Realtors Chief Economist Lawrence Yun, but it may not be enough to ease the lack of inventory just yet.

“That will help boost both housing demand and supply. For homeowners who are mishoused (i.e., new child in the family, new job in the other part of town, etc.) but have been unwilling to sell due to locked-in low rates, the cost of a move becomes less costly with falling mortgage rates,” Yun said in a statement provided to Investopedia.

Inventory Boost Expected to Help Meet High Demand

As mortgage rates cool, inventory is expected to tick up again throughout the latter half the year. Chronically low inventory of existing homes is dampening market conditions.  Analysts at Fannie Mae anticipate low inventory when it comes to existing homes through the end of the year.

“We continue to expect that existing home sales will decline modestly through the rest of the year amid a broader economic slowdown, ongoing affordability constraints, and limited inventories of homes available for sale,” Fannie Mae’s economic and strategic research group wrote online.1 “The ongoing lack of existing home inventory continues to provide a boost to the new home market, though, as May represented the largest single-month jump in single-family starts in percentage terms since June 2020.”

Compass CEO Robert Reffkin told CNBC he thinks when rates drop back down to around 5.5%, that’s when the inventory logjam should begin to clear.

“The issue we are seeing is that we need to have an unlock of inventory. It’s probably going to happen when mortgage rates get to 5%, 5.5% at a sustainable level. At that point, I would expect there to be a flood of inventory in the market, and it’ll feel like the pandemic craze all over again,” Reffkin said.2

Meanwhile, homebuilding is picking up to help fill inventory gaps across the country. May brought a significant uptick in the sale of new single-family homes, which rose 20% year-over-year and 12.2% from April.3

Home Prices Likely To Decline

Weak home prices are expected over the summer months, when they are typically at their peak, according to Realtor’s Hale.

“Specifically, while June is expected to be the seasonal peak for home prices in 2023, like it is most years, we won’t see as big of a month to month climb as we did in 2022, which will mean ongoing mild declines when we’re comparing home sale prices to one year ago,” Hale said.

The declines are expected to run through the early fall, depending on the Federal Reserve.

“By the time we get to the fourth quarter, mortgage rate and seasonal home price relief could be enough to stanch the declines” Hale added. “On net, we expect average home prices in 2023 to fall 0.6% compared to 2022.”

As supply boosts and mortgage rates and home prices fall, sales are expected to rise through the end of the year, according to NAR’s Yun.

“We’re likely approaching the bottom in home sales with steady improving home sales in the second half of the year and into 2024,” Yun said.

Source: investopedia.com ~ By: MEG CUNNINGHAM ~ Image: Canva Pro