Katie McBride's Blog
Interview different agents before hiring the real estate professional who will act as your representative in the purchase or sale of your property. Find an agent who will work for you. Don't be afraid to interview different prospects. The person you hire will be the individual you are relying on to uphold your desires, preferences, and best interests in all real estate matters. Find out whether the real estate agent works full time or part time and how available to you the agent will make him or herself. If you are a first time home buyer make sure your agent is knowledgeable and experienced, as you may not want your representative to be going through the same learning process that you are. If you are selling, or if you're looking to buy in a certain town, find an agent who does a lot of business in the area and may have an office nearby. Find an agent who will work with you. Real estate transactions are relatively detailed and sometimes can become lengthy processes. You want to hire someone you feel comfortable with and someone you will get along well with on a professional level. Make sure the real estate agent you hire is someone you aren't afraid to express your opinions to. You don't want to be afraid to ask questions of your agent because whether you're a seasoned real estate veteran or a first time buyer, questions may arise. Interviewing different agents to suit your needs is necessary. Certain agents may feel more comfortable with certain clients. Some agents may love working with first time buyers, are familiar with the first time buying experience, and have the ability to point these clients in the right directs, while some agents may prefer to deal strictly with sellers. In this case it would be important to be on the same page as an agent before signing any binding contracts with him/her. Determine your criteria and start interviewing!
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 2016: Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.
Bottom LineBuyers 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.
One of the many things emphasized to sellers is removing their personality from the home. Too much personality in the home can be a distraction for potential homebuyers. Consider a model home, which automatically draws you in, from the biggest of details to the smallest. Most model homes have neutral colored rooms, rugs, and décor. The reason behind this? To give the potential homebuyer the opportunity to visualize themselves living in that home. You want to replicate that approach. Here are a few tips for depersonalizing your home: Pictures: Displaying family photos in the home is a great way to show that you made this place a home. However, when it comes to selling, it’s best to remove these photos. Too many pictures and frames can make it difficult for potential homebuyers to visualize themselves and their family living there. Personal belongings: If you are still living in the home that you are selling, your personal belongings will likely be all over the house. It’s impossible for you to remove everything you own from a home when you are still living there. However, it is important to clean up and hide certain personal belongings when you can. This includes children’s toys, animal toys and beds, knick-knacks, and drawings and grocery lists from the refrigerator door. Placing these items in storage or just finding places around the house to store them while trying to sell is best. Paint: Paint is a way of expressing yourself in your home. Whether you like really dark colors, warm colors, or cool colors or even just white, it showcases your personality. Drastic color schemes on either side of the color wheel can throw buyers off, especially if it contains colors that they are not really fond of. It will make it difficult for them to visualize how they would decorate that room. If this sounds like you, it’s a good idea to go to the store and pick up some neutral tones and get to painting. Furniture: Staging is everything. You may have set up your living room or bedroom a certain way because that’s how you like it. However, that may not be the optimal use of that space. It’s best to do some research or hire a professional to assist with this. You have to pull your personal opinion out of the decision-making and think about what works best with the shape and size of the room. Whenever possible it’s best to provide the homebuyer with a clean slate. Neutral colors and removing personal belongings will only increase the chances that potential homebuyers will envision themselves living there and hopefully make an offer. Depersonalizing your home is just one tactic for prepping your home for selling. If you are looking to sell quickly, be sure to read all the tips and tricks there are to getting you’re home sold.
People across the country are beginning to think about what their life will look like next year. It happens every fall; we ponder whether we should relocate to a different part of the country to find better year-round weather, or perhaps move across the state for better job opportunities. Homeowners in this situation must consider whether they should sell their house now or wait.
If you are one of these potential sellers, here are five important reasons to sell now instead of in the dead of winter.
1. Demand Is StrongThe latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! Take advantage of the buyer activity currently in the market.
2. There Is Less Competition NowAccording to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market (which is 4.5-months). This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market soon. Also, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase, reaching historic levels in 2017. Last month’s new home sales numbers show that many buyers who have not been able to find their dream homes within the existing inventory have turned to new construction to fulfill their needs. The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.
3. The Process Will Be QuickerFannie Mae announced that they anticipate an acceleration in home sales that will surpass 2007's pace. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker & simpler.
4. There Will Never Be a Better Time to Move UpIf you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.2% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. According to Freddie Mac’s latest report, you can also lock-in your 30-year housing expense with an interest rate around 3.57% right now. Interest rates are projected to increase moderately over the next 12 months. Even a small increase in rate will have a big impact on your housing cost.
5. It’s Time to Move On with Your LifeLook at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
Pending Home Sales Report and Existing Home Sales Report.Let’s look at the data covered by the latest
THE PENDING HOME SALES REPORTThe report announced that pending home sales (homes going into contract) are up 2.4% over last year, and have increased year-over-year now for 22 of the last 25 consecutive months. Lawrence Yun, NAR’s Chief Economist, had this to say:
"The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country. It's leading to home prices outpacing wages, properties selling a lot quicker than a year ago and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices."Takeaway: Demand for housing will continue throughout the end of 2016 and into 2017. The seasonal slowdown often felt in the winter months did not occur last winter and shows no signs of returning this year.
THE EXISTING HOME SALES REPORTThe most important data point revealed in the report was not sales, but was instead the inventory of homes for sale (supply). The report explained:
- Total housing inventory rose 1.5% to 2.04 million homes available for sale
- That represents a 4.5-month supply at the current sales pace
- Unsold inventory is 6.8% lower than a year ago, marking the 16th consecutive month with year-over-year declines
"Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in. Unfortunately, there won't be much relief from new home construction, which continues to be grossly inadequate in relation to demand."In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are, and will remain, in a seller’s market with prices still increasing unless more listings come to the market.
"There's hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring. The market fundamentals — primarily consistent job gains and affordable mortgage rates — are there for the steady rise in first-timers needed to finally reverse the decline in the homeownership rate."Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a ‘sizable’ supply does not enter the market.