Area Real Estate News & Market Trends

You’ll find my blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because I care about the community and want to help you find your place in it. Please reach out if you have any questions at all. I would love to speak with you!

March 6, 2018

2 Ways to Get the Most Money from The Sale of Your Home

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

Posted in Selling
March 5, 2018

Housing Market Expected to "Spring Forward" This Year

 

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

That hasn’t happened this year.

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March 1, 2018

Are Home Values Really Overinflated?

Last week, the National Association of Realtors (NAR) released their most recent Existing Home Sales Report. According to the report:

“The median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January’s price increase marks the 71st straight month of year-over-year gains.”

Seventy-one consecutive months of price increases may have some concerned that current home values may be overinflated.

However, at the same time, Zillow issued a press release which revealed:

“If the housing bubble and bust had not happened, and home values had instead appreciated at a steady pace, the median home value would be higher than its current value.”

Here are two graphs that help show why home prices are exactly where they should be.

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Feb. 21, 2018

Home Design Trends to Watch in 2018

 

Feb. 12, 2018

#1 Reason To Sell Now Before Spring

The price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2017:

The #1 Reason to Sell Now Before Spring | Simplifying The Market

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

Posted in Selling
Feb. 9, 2018

Real Estate-What to Expect in 2018

HOME VALUES WILL CONTINUE TO RISE

Get ready for another strong year! U.S. home values and sales volume will continue to rise in 2018. 

Experts agree that home prices will increase this year, but predict a slower rate of appreciation than 2017, which clocked in at nearly 7 percent nationwide. National Association of Realtors (NAR) Chief Economist Lawrence Yun predicts a growth rate this year of 5.5 percent, while Freddie Mac’s September Outlook Report forecasts a rate of 4.9 percent. Either way, all indicators point towards continued growth in 2018.

What does it mean for you?

If you’re a current homeowner, real estate proves once again to be a solid investment over the long term. If you’re in the market to buy this year, don’t wait any longer. Prices will continue to go up, so you’ll pay more six months from now than you would today.

 

NEW CONSTRUCTION WILL MAKE REAL ESTATE MORE ACCESSIBLE

Lack of inventory in the housing market has been a primary impediment to homeownership for many Americans. “Ten years ago, the problem in the housing market was lack of buyers,” says Yun. “Today, the problem is lack of sellers. Inventory levels are near historic lows.” And this lack of inventory has pushed prices up beyond levels affordable for many first-time buyers.

The good news? Yun expects a 9.4 percentage point increase in single-family new home construction starts.

Economists predict that builders will focus more on entry-level homes this year, due to increasingly high demand. Robert Dietz, of the National Association of Home Builders, agrees. “The markets that are going to grow are ones where builders can add that entry level product.”

The new entry-level construction will come with a catch though … it will be located in the suburbs, where the availability of land and fewer zoning requirements make it more cost-effective to build. Economists predict that’s where millennials and first-time buyers will flock for the greater variety of homes at affordable prices. In fact, the National Association of Realtors’ 2017 Home Buyer and Seller Generational Trends found that 57 percent of millennial buyers opted for a suburban location.

What does it mean for you?

If you’ve been frustrated by lack of inventory in the past, or are looking for more space for your growing family, 2018 may bring new opportunities for you to build a budget-friendly home in the suburbs, customized to suit your needs. 

INTEREST RATES WILL RISE

No one knows exactly what will happen with mortgage rates this year, but the Mortgage Bankers Association anticipates the Federal Reserve will raise rates three times in 2018, with Freddie Mac’s 30-year fixed rate mortgage reaching 4.8 percent by the end of Q4, up from around 4 percent at the end of 2017.

Kiplinger.com Economist David Payne also predicts interests rates will rise this year, with short-term rates outpacing long-term rates as the Fed aims to curb inflation in a tightening job market. He predicts the bank prime rate that home equity loans are based on will increase from 4.25 percent to 5 percent by the end of 2018. 

What does it mean for you?

If you’re in the market to buy, act now before interest rates go up! And if you’re a current homeowner who is considering refinancing or a home equity loan, don’t wait.

I'M HERE TO HELP

While national real estate numbers and predictions can provide a “big-picture” outlook for the year, real estate is local. And as a local market expert, I can guide you through the ins and outs of our market, and the local issues that are likely to drive home values in your particular neighborhood. 

If you are considering buying or selling a home in 2018, contact me now to schedule a free consultation. I can help you figure out the best to time to list your home, or begin your property search, and develop an action plan to ensure you meet your real estate goals this year.

 

 

 

Feb. 1, 2018

Consider Real Estate Agent AND Brokerage

When considering a real estate brokerage, the name DID matter to me.  I'm not talking about the a corporate name or franchise.  This is a personal choice, but the companies I knew that fit that description were not a cultural fit for my personality. To me, the company name is a direct reflection of my core values.

I was looking for innovative, fresh, but MOST OF ALL, REPUTATION.  Ethical reputation.  Solid representation. 

It was to no surprise that the company I found that fit this profile also happened to be #1 in marketshare in this area.   This company was founded by one of most incredible woman I know of.  Her story is inspirational.  

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Jan. 31, 2018

The 10 Commandments for Buyers Between Now and Closing

Imagine this:  

You have a well qualified buyer.  The loan process (and entire transaction) seems to be going so smooth. These buyers have all of their financial ducks in a row, have worked hard over the years to maintain great credit, they have all their information together, and provide any necessary documention right away. Wow-dream buyers!  

You meet with them as closing approaches and they pull up in their brand new car! <record screech>

What went wrong here?  Unfortunately, this happens all too often:  The buyers simply were not informed:  NOOOO!

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Jan. 30, 2018

Love It Or List It? Sell or Remodel -Which is right for you?

Sell Or Remodel - Which Is Right For You? 

 

Whether the initial love has faded, or your home just doesn’t work for you and your family anymore, deciding between selling your home and 

remodeling can sometimes be a difficult decision.  So what should you 

consider before making the decision to ensure that you will be more satisfied with the end result than you are with your home now? 

 

What Is The Current Condition Of Your Home? 

 

If part of the reason your home isn’t working for you or your family anymore is that several areas of the home need updating or improving, then you may want to reconsider selling your home.  Often an outdated kitchen and bathroom can have a considerable effect on the resale value of your home, and a renovation of these areas may be necessary anyway to get the maximum profit from your home. 

 

What Is It You Need From Your Home? 

 

If you are thinking of selling your home because its current size or the size of your property is no longer working for you, or if the area in which the house is located no longer serves the needs of your family, then selling your home is likely the best choice versus a remodel. 

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Jan. 26, 2018

8 Cabinetry Details to Create Custom Kitchen Style