Tag Archives: real estate

10 Tips for Homebuyers and Sellers

Spring is here, and so is spring home-buying and -selling. Buyers and sellers preparing to take action this season should put those plans into play now—according to Zillow Group’s Report on Consumer Housing Trends, the No. 1 regret for both buyers and sellers is “not starting their home search or prepping their home to sell soon enough.”

“This spring, both buyers and sellers should be prepared for fast-moving sales, intense negotiations, and even bidding wars,” says Jeremy Wacksman, CMO at Zillow Group. “Home shoppers and sellers are motivated to become more strategic and knowledgeable about what’s happening in their neighborhood. Understanding whether you are in a buyer’s or a seller’s environment will help you manage your expectations and will give you insight into what you’re going to need to bring to the table in order to close the deal.”

For buyers, that means:

Keep your options open. More than half (52 percent) of homebuyers surveyed in the report said they also considered renting, and more than one-third (37 percent) of first-time buyers seriously considered continuing to rent. Savvy shoppers should have a Plan B in place, hoping to buy if it works out, but willing to sign a lease for a home if they don’t make a deal by the time they need to move.

Be realistic with your budget. Once you set it, stick to it. First-time home buyers are more likely to exceed their budget than repeat buyers (39 percent versus 26 percent), according to the report. Before you meet with a lender to determine how much mortgage you’ll be approved for, take a good look at your individual finances and spending preferences to determine the monthly payment range that you feel you can comfortably afford.

Get your financing squared away early. Plan to meet a few lenders four to six months ahead of when you’re planning to buy to ensure you can make a competitive offer quickly when you find your dream home. The majority (82 percent) of buyers get pre-approved, with 77 percent getting pre-approval from a lender before finding a home on which they are interested in placing an offer.

Find an agent with a winning track record. Take the time to find an agent who has expertise in fast negotiation, leveraging escalation clauses, and winning bidding wars. Only 46 percent of buyers got the first home on which they made an offer, according to the report, demonstrating that competition is now part of the process. Choose an agent based on sales and listing activity, area of expertise and reputation.

Communication is key. Make sure your preferred method—and frequency—of communication matches that of your agent. One-third (33 percent) of all buyers surveyed in the report preferred phone calls with their agent over emailing (21 percent) or texting (15 percent). Buyers can use the agent reviews on Zillow to learn more about prospective agents and their clients’ experiences.

And for sellers:

Start early and be strategic. Sellers consider putting their home on the market for five months before they list it—but the top seller regret is that they wished they spent more time prepping for the sale. Many cities have a magic window in the spring when homes have a higher likelihood of selling quickly for more money.

Work with an agent from the start. The vast majority (90 percent) of sellers surveyed in the report who sold quickly and for more than list price worked with an agent, and two out of three (58 percent) began working with an agent at the very beginning of their selling journey.

Pay attention to your online curb appeal. The majority of buyers begin their search online. Sellers who sold their home for more than list price made imagery and home information available online: 48 percent had professional photos taken of the home; 30 percent shot video footage; and 21 percent shot drone footage. Zillow’s video walk-throughs give sellers an easy way to show home features that are hard to capture in photos.

Home improvements can be a worthwhile investment. Sellers who fetched above list price tackled home improvements before listing their home, being 50 percent more likely to take on a large project like modifying an existing home plan and 20 percent more likely to renovate a kitchen than the average seller.

Don’t be afraid to try again. In many markets, nearly half of listing views occur in the first week the home is on the market. Twenty-six percent of those who sold above list price took their home off the market once to adjust the sales price, opting to start anew, rather than letting the home languish on the market with minimal activity.

Reprinted with permission from RISMedia. ©2017. All rights reserved.

Advertisements

National Association of REALTORS 2nd Quarter HOME Survey Results

Yesterday, the National Association of REALTORS® (NAR) released the  July Housing Opportunities and Market Experience (HOME) Survey Results.july HOME

According to NAR, the HOME report was created to monitor consumer sentiment about the housing market. It covers core topics that will be tracked on a monthly basis such as views on housing as a good financial investment, whether homeownership is part of the American Dream, if now is a good time to buy or sell a home and perception of home price changes.

Highlights include:

  • In the second quarter of 2016, 74 percent of people believe that now is a good time to buy a home.
  • Only 26 percent of people believe that now is not a good time to buy a home.
  • Sixty-one percent of people believe that now is a good time to sell a home, up from 56 percent in Q1 2016. Thirty-two percent believe that strongly, up from 28 percent in Q1 2016.
  • Forty-seven percent of those 34 years or younger have student loan debt.

Click here to download the full report.

First Look: Home-Buying Season Is Already Booming

The 2016 home-buying season is in full swing, with homes in April moving 7 percent faster than one year ago, even as asking prices continue to break records. This, according to new data released this week by Realtor.com.

Median age of inventory is now 68 days, moving five days faster in April than a year earlier and 6 days faster than last month – pointing to solid momentum this spring. The median-priced home was listed at $245,500, 9 percent higher than one year ago and 2 percent higher than March. For-sale housing inventory is increasing on a monthly basis, but remains lower than one year ago.

“A robust buying season has already fully bloomed this spring, clearly demonstrated by our preliminary read on April inventory and activity on realtor.com,” says Jonathan Smoke, chief economist of realtor.com. “Pent-up demand, lower mortgage rates and strong employment continue to power the strongest and healthiest real estate market we have seen in a decade. Close to 550,000 new listings came onto the market in April, which helped total inventory grow 2 percent over March. However, we know that sales are picking up faster than inventory since the median age of inventory fell again by six days after falling a whopping 22 days in March. As a result we have 4 percent fewer homes available for sale compared to last year and homes stay on the market five fewer days.”

The median age of inventory for April is expected to be 68 days, down 7 percent year over year and down 8 percent from March.

The median listing price for April will likely reach a record high of $245,500, a 9 percent increase year over year and a two percent increase month over month.

Listing inventory in April showed a 2 percent increase over March. However, inventory decreased 4 percent year over year.

Realtor.com’s Hottest Markets receive two to three times the number of views per listing compared to the national average. In terms of supply, these markets are seeing inventory move 17-45 days more quickly than the rest of the U.S. They have also seen days on market drop by an average of four days from March.

Reprinted with permission from RISMedia. ©2016. All rights reserved.

Consumers See Interest Rate Increase from Opposite Angles

Real Estate News

Prospective homeowners express concern over increase and perceived effect on real estate decisions and lifestyles; existing homeowners stand indifferent to rate boost

Berkshire Hathaway HomeServices, part of the HSF Affiliates LLC family of real estate brokerage franchise networks,  released results from its 2015 Homeowner Sentiment Survey indicating a significant split in the way real estate consumers perceive the Federal Reserve’s anticipated raising of its benchmark interest rate and the subsequent impact on mortgage rates.

Existing homeowners expressed indifference to the notion of a lift in mortgage rates as a result of the Fed’s action. By contrast, 62% of prospective homeowners – a survey group composed mainly of millennials and Gen-Xers – said rising mortgage rates would make them feel anxious about their current financial situations.

It’s been nearly 10 years since the Fed raised its benchmark rate, which stands near zero as part of the Fed’s effort to stimulate the U.S. economy. Accordingly, mortgage rates, which move in response to the fed funds rate, have hovered at or near historic lows for years. Yet in the survey, 67% of prospective homebuyers categorized the level of today’s mortgage rates as “average” or “high.”

“The Fed is seeing more people going back to work and with the expectation of job growth for America it feels comfortable with its intent to raise rates,” said Berkshire Hathaway HomeServices President Stephen Phillips. “But the reality is that an entire generation of first-time buyers has never experienced a meaningful rate increase; this is a new and unfamiliar phenomenon to them.”

Should mortgage rates rise in response to a boost in the fed fund rate, many prospective homeowners said they would have to alter their home searches and 51% would adjust their savings pace. In addition, exactly half of prospective homeowners believed they would experience more difficulty affording their ideal home. Current homeowners, whose ranks are mostly Boomers and Gen-Xers, said that increased mortgage payments would mean more personal sacrifices in areas such as family vacations, home improvements and shopping.

Fed policymakers have said the pace at which they’ll raise interest rates will be gradual – an increase of a quarter of a percentage point is typical. A similar rise in mortgage rates would add about $43 a month to a hypothetical $300,000, 30-year mortgage with a 3.75% rate, explained Gino Blefari, CEO of HSF Affiliates. “A bump in mortgage rates has more bark than bite,” he said. “The average American spends about twice as much every month on coffee[1].”

A majority of current homeowners (59%) and half of prospective homeowners believed interest rates are holding steady. Lower interest rates remain the top reason why many survey respondents view the current housing market favorably.

Respondents also identified factors they believed are driving U.S. real estate forward. Increased residential construction and increased construction in urban areas offering more housing choices closer to work topped the list. Respondents also indicated that the housing market is benefiting from an increase in millennial buyers and by a boost in housing inventory; the latter factor has hamstrung real estate in many markets since the downturn. (See Homeowner Sentiment Survey results from September.)

“As always, our agents and the industry as a whole must take great care to educate buyers and sellers about the real estate process, which includes mortgage rates,” said Blefari. “A Fed rate increase may grab people’s attention, yet the cost of borrowing money to buy a home remains historically low by all measurements. From our perspective, even though we can’t predict the future, it looks like mortgage rates will remain attractive, and that’s good for consumers and the real estate market.”

The full survey details are available upon request.

 

Berkshire Hathaway HomeServices Consumer Sentiment Survey Methodology

Interviews with 2,502 respondents were conducted online by Edelman Berland in November 2015. The respondents captured were either current homeowners (individuals who currently own a home as a primary residence) or prospective homeowners (individuals who are looking to buy a home within the next six months). The margin of error is +/-2.2% for current homeowners and +/- 4.4% for prospective homeowners.


Real Estate News

About Berkshire Hathaway HomeServices and HSF Affiliates LLC

Berkshire Hathaway HomeServices, based in Irvine, CA, is a real estate brokerage network built for a new era in residential real estate. The network, among the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the real estate market a definitive mark of trust, integrity, stability and longevity. Visit www.berkshirehathawayhs.com.

 

Irvine, CA-based HSF Affiliates LLC operates Berkshire Hathaway HomeServices, Prudential Real Estate and Real Living Real Estate franchise networks. The company is a joint venture of which HomeServices of America, Inc., the nation’s second-largest, full-service residential brokerage firm, is a majority owner. HomeServices of America is an affiliate of world-renowned Berkshire Hathaway Inc.

[1] According to a National Coffee Association study.

Housing Market and Forecast for 2016

Lawrence YunIn a recent Forbes article Lawrence Yun, Chief Economist and Senior Vice President National Association of Realtors, predicted that nationally the housing market should show another gain in 2016, simply because there is still sizable pent-up demand for home buying — and supply will steadily rise to help meet that demand.

But what exactly does that look like? Hear it right from Mr. Yun himself as he talks to Washington Journal about housing and mortgage trends, the housing market’s impact on the overall U.S. economy, and what recent trends might portend for 2016.

Protecting Tenants at Foreclosure Act Expires

Hey DC property owners and renters… this just in from Capitol Title, one of our title partners…

The federal law that was enacted in 2009, which protected tenants from immediate eviction by persons or entities that became owners of residential property through the foreclosure process, expired as of Dec. 31, 2014.  The law provided that the purchaser in a foreclosure sale of a residential dwelling, including a bank that takes title to a house upon foreclosure, will assume the interest subject to the rights of any bona fide tenant and will need to comply with certain notice requirements. Under this law, the immediate successor in interest of a dwelling or residential real property must provide tenants with a notice to vacate at least 90 days before the effective date of such notice. The date of a “notice of foreclosure” is defined as the date on which complete title to a property is transferred to a successor entity or a person as a result of a court order or pursuant to provisions in a mortgage, deed of trust, or security deed.

Two bills were introduced during last Congress, but neither were enacted and. as of yet, nothing in regard to renewing the Protecting Tenants at Foreclosure Act has been filed in the 114th Congress.  

When I hear more I will be sure to post here!

Maintain Your Bathroom in 3 Easy Steps

QuestionBathrooms need to be cleaned and maintained often, just like your kitchen. In the long run, it can prevent costly problems such as mold, mildew and plumbing leaks. Here are three ways to keep your bathroom looking great and working well for years to come:

1. Maintain grout and sealant. Moisture, heat and humidity can cause the tub and tile grouting in your bath to crumble and crack. Apply new grout to crumbly tiles and seams to prevent water from leaking into the walls or beneath the floor. When you are cleaning the bathroom, use bleach to disinfect the area and kill any mold growth. Keep an eye on the grout for new growth and be ready to scrub.

2. Look for leaks around the shower, bathtub, sink and toilet. Check the basement beneath the bathroom too, if possible. If you find puddles of water anywhere, look for the source of the leak and use waterproof caulk to seal it.

3. Clean your bathroom once a week. It may seem like a lot to fit in, but think about how many times you and your family use the bathroom each day. A clean bathroom will make it easier to maintain appliances and fixtures that should last for years.

Do you make time to clean and maintain your bathroom every week? Be sure to keep an eye out for drips, cracks, leaks and mold, and don’t put off any necessary repairs. They can quickly turn into bigger messes and cost you more in the long run.

This great article is compliments of our friends at HMS Home Warranty