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Monthly Archives: August 2017

Real Estate Negotiations: 3 Tricks That You Can Use to Ensure Yours Is the Winning Bid

Real Estate Negotiations: 3 Tricks That You Can Use to Ensure Yours Is the Winning BidYou’ve toured through a number of listings, attended all the open houses and have found your potential new dream home. Now the hard part begins, especially if you’re working against other buyers who are keen on getting the same home as you. Let’s take a look at three tricks that you can use to make sure the bid you submit on a home is the one that wins.

Don’t Start With A Lowball Offer

First, it’s important to note that the offer itself needs to be a fair one. If you approach a home seller with a low offer, you’ll likely discover that they’re not too interested in accepting it. Even worse, if your offer is too low, you risk the seller feeling insulted. And that might prevent you from being able to counter with a higher price to be more competitive. Instead, consider bidding on the low end of a reasonable, fair price range as your starting bid. That way the seller knows that you’re serious and is more willing to entertain the conversation.

Let A Real Estate Agent Handle It

If you want to make an offer that a seller can’t refuse, you’ll want to work with a real estate agent. An experienced agent that has helped dozens of buyers with the purchasing process will have critical knowledge that will be useful in making the right bid. Plus, if you end up receiving a counter-offer from the seller, an agent can assist you with understanding the terms and touching up your bid to get the deal done.

Keep Your Cool And Be Ready For The Counter

Speaking of counter-offers, you’ll want to ensure that you keep an open mind when it comes to negotiating with the home seller. Unless your offer is close to or over the listing price, the seller is likely to counter your opening bid. This is normal and is a sign that they’re interested, so from here it’s your job to ensure that you sweeten the deal just enough that they’re willing to close.

These are just a few of the ways that you can ensure that the bid you make on a home is the one the seller accepts. For more tips and insight into buying a house in your area, contact your local real estate professional today. We look forward to connecting!

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Posted by on August 31, 2017 in Home Buyer Tips

 

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Case-Shiller Home Price Index: National Home Prices Reach Pre-Recession Level

According to the Case-Shiller National Home Price Index for June, Seattle, Washington continued to lead home price growth for the tenth consecutive month with a June reading of 13.40 percent growth year-over-year. Portland Oregon held second place for home price growth in the 20-City Home Price Index in June but trailed Seattle by 5.20 percent with 8.20 percent year-over-year home price growth. Dallas Texas held third place with a year-over-year home price growth rate of 7.70 percent. The 20-City Home Price Index increased by 5.70 percent year-over-year and was unchanged from May’s reading.

Case-Shiller’s National Home Price Index reported a reading of 5.80 percent home price growth in June as compared to May’s reading of 5.70 percent.

Wage Growth, Strong Economic Indicators Drive Demand for Homes

Case-Shiller’s month-to-month home price data also reflected continued growth. 14 cities reported higher home prices in June after seasonal adjustment. Home prices rose 0.40 percent month-to-month nationally; the 20-city index rose by 0.10 percent month-over-month after seasonal adjustment.

Shortages of homes for sale continue to drive up home prices as sales of pre-owned homes outpace new home sales. Builders haven’t kept up with demand due to ongoing labor and lot shortages and rising materials costs. There was an estimated 4.20 months’ supply of homes for sale in June; the average level is a six-month supply. Low mortgage rates continue to encourage first-time and current buyers to enter the market.

David M. Blitzer, Managing Director, and CEO of S&P Dow Jones Indices Committee said that although home prices are rising steadily, wage growth and overall economic growth were driving demand for homes in June. Mr. Blitzer said that current economic trends indicated home price growth was not expected to reverse anytime soon.

 
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Posted by on August 30, 2017 in Home Building Tips

 

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Itching to Start a Project? Don’t Forget These Four Key Tips to Avoiding Renovator’s Remorse

Itching to Start a Project? Don't Forget These Four Key Tips to Avoiding Renovator's RemorseTake a look around your home. Do you feel that burning desire to renovate or upgrade certain areas? Perhaps it’s the kitchen countertops or the décor in the master bedroom. Whatever the case, if you’re itching to take on a home renovation project you’ll want to ensure it’s one that makes your life better – not worse! Let’s take a look at four tips that will help you to avoid experiencing “renovator’s remorse.”

Ask Yourself: Will This Project Add Value?

If you’re renovating to build equity in your home, you’ll want to determine if the project is worth undertaking. There are many renovations that might seem to make the home more appealing, but in truth add next to no value that can be realized later when you sell. Be sure to choose those projects which will bump the home’s value by a significant amount.

Start With A Realistic Budget

Ask any friend or neighbor that has renovated their home and you’ll discover that costs can quickly spiral out of control if you’re not careful. With this in mind, it’s a good idea to start with a realistic budget that incorporates some additional room for last-minute tweaks or changes. Once you have the project scoped out, take a trip to your local building supply store and chat with the professionals. They’ll be able to help you understand what the actual costs of your renovation will be and they can point out things that you may have forgotten.

Measure Twice, Cut Once

Even the most skilled carpenters and tradespeople make mistakes, so you should rest assured that it can happen to you. Even if you have to go over your plans twice or three times, it’s worth knowing exactly what you’re going to do before getting started. As the saying goes: “measure twice, cut once.” Spending the necessary time preparing your work will go a long way in saving you time and money later.

Don’t Start If You Can’t Finish

The last piece of advice is to finish any home project that you start. A half-finished renovation project can degrade your quality of life significantly. And the longer it takes to get done, the less motivated you will be to finish it. Stay on task and get the job done as soon as possible.

If you’re interested in learning more about the home selling process or listing your home for sale, contact your local professional real estate agent.

 
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Posted by on August 29, 2017 in Around The Home

 

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What’s Ahead For Mortgage Rates This Week – August 28, 2017

Last week’s economic news included readings on sales of new and previously-owned homes, Weekly readings on mortgage rates and new jobless claims were also released, along with coverage of Fed Chair Janet Yellen’s remarks at a conference in Jackson Hole, Wyoming.

Home Sales Lower in July

According to the Commerce Department, new home sales fell to a seven-month low in July; 571,000 new homes were sold on a seasonally-adjusted annual basis in July.  This reading fell short of the expected sales rate of 608,000 new home sales and June’s reading of 630,000 sales. This was unwelcome news for home builders, who have been under pressure to build more homes.  pronounced shortage of available homes coupled with high buyer demand has pressured builders to increase their rate of housing starts. A sudden dip in new home sales could impact builders’ production rates if slow sales persist.

Buyer demand may be waning as home prices have continued to climb. July’s national average home price rose to $313700, which was 6.30 percent year over year. The National Association of Realtors® said the current inventory of available homes rose to 5.70 months. This was the highest reading in highest reading in several months. Real estate pros consider a six-month supply of homes for sale an average reading. Regardless of record high demand for homes and low inventories, rapidly rising home prices reduce the pool of potential buyers due to affordability.

Sales of previously owned homes also fell in July. The National Association of Realtors® reported that pre-owned homes sold at a seasonally-adjusted annual rate of 5.44 million sales. Analysts predicted a rate of 5.50 million sales based on June’s reading of 5.51 million sales.

Mortgage Rates, New Jobless Claims

Freddie Mac reported mixed mortgage rates results, but mortgage types surveyed were little changed. The average rate for a 30-year fixed rate mortgage fell three basis points to 3.86 percent; the average rate for a 15-year mortgage was unchanged at 3.16 percent. Rates for 5/1 adjustable rate mortgage averaged 3.17 percent. Discount points averaged 0.50 percent for all three mortgage types.

First-time jobless claims rose to 234,000, which fell short of the expected reading of 238,000 new claims and the prior week’s reading of 232,000 new claims.

Fed Chair Defends DoddFrank Act

Fed Chair Janet Yellen defended Dodd-Frank mortgage legislation passed after the financial crisis. The legislation established credit standards for mortgage lenders to eliminate irresponsible lending practices. Speaking at the Federal Reserve’s annual retreat in Jackson Hole, Wyoming, Chair Yellen’s comments responded to recent indications by the administration and banking officials that the Dodd-Frank Act should be repealed.

Whats Ahead

This week’s economic reports include readings from Case-Shiller on home prices. Pending home sales, construction spending and inflation reports will be released in addition to weekly readings on mortgage rates and new jobless claims. Several labor reports will also be released including ADP Payrolls, Non-Farm Payrolls, and the national unemployment rate will also be released. 

 
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Posted by on August 28, 2017 in Mortgage Rates

 

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Staging Small Spaces: How to Highlight Your Outdoor Areas Even If They’re Not That Big

Staging Small Spaces: How to Highlight Your Outdoor Areas Even If They're Not That BigIf you’re planning on selling your home, you’ve probably already started to consider how you’re going to stage it. Staging is one of the most important parts of the selling process. The way you present your home is key to leaving a positive impression on a potential buyer. Let’s explore a few ways that you can stage smaller outdoor spaces to make them feel like they’re much more than they are.

Go With Smaller Furniture Options

If you’re trying to stage a small patio, deck or yard area, you’ll want to stick with smaller furnishings. Yes, that means packing up the enormous hammock or chaise lounge that you love to lazy around on. Remember, perspective is going to matter as potential buyers have never seen your outdoor spaces before. So any large furniture sitting in a small space is going to appear to be that much bigger.

One great idea is to use furniture that you can see through, as it will give the illusion that the area around it is much larger. Consider options like open-backed or Adirondack chairs which let light pass through.

Use Glass To Create A Spacious Illusion

Keeping visibility in mind, the second trick you’ll want to leverage is to use as much glass as possible. Glass-top tables and other transparent items which let light through are an excellent way to highlight a small space. And don’t forget – keep any glass spotlessly clean! The last thing you want is to be showing off a pile of greasy fingerprints.

Take Your Plants Vertical

Another excellent tactic for making the most of smaller spaces is to grow any plants vertically. If you have the room for it, a plant wall can really shine as it adds a pop of green and other colors to the area. If not, just stick with slender plants that grow straight up. Try to avoid plants that tend to spread out wide as they grow. If they look like they’re taking up a lot of space, any potential buyers touring through will have the impression that your outdoor areas are smaller than they are.

There you have it – three easy tips for staging your small, intimate outdoor spaces. When you’re ready to list and sell your home, contact your local real estate professionals.

 
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Posted by on August 25, 2017 in Home Seller Tips

 

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Trying to Sell Your Home As a Fixer-Upper? Highlight These Key Areas to Attract Eager Buyers

Trying to Sell Your Home As a Fixer-Upper? Highlight These Key Areas to Attract Eager BuyersAre you going to sell your house in the near future? If it’s a bit of a ‘fixer-upper’ – meaning that it’s in need of some renovation work – you may find some challenges in marketing it to potential buyers. Reducing the listing price is one option available to you, but there are other ways to highlight this kind of home. Let’s have a look at three key areas that you’ll want to focus on when trying to sell a home in less than perfect condition.

Push The Customization Angle

First, try to keep in mind that most potential buyers who are on the market for a fixer-upper are likely to be interested in customizing the home. Be sure to highlight any key areas that are ripe for change. Is the décor in your kitchen a little dated? No problem – it’s a chance for your buyer to build the kitchen they’ve always dreamed of. Is the basement unfinished? There’s a perfect opportunity for a keen buyer to create a basement suite which they can then rent out to a new tenant.

Highlight The Surrounding Community

It’s a good idea to jot down a list of all of the benefits of living in your community. How are the schools? Is the area well-served by public transit? Are there any amenities like a community center worth mentioning? Is the neighborhood considered family-friendly? What are the neighbors like? Are there hospitals or other medical services nearby? What about running trails, area hikes or dog parks? Many buyers care more about their quality of life than they do about the condition of the house itself. If the community is in better shape than your home, spend more time highlighting how great it is to live in the area.

Promote The Overall Property Or Land Value

Finally, don’t overlook the value of the property that the house is sitting on. Buying real estate is a financial investment that will appreciate in value over time. While the house might get old and dated, the land will always retain value. Be sure to point out any positive land value trends to potential buyers.

These are just a few of the many ways that you can promote a fixer-upper home. For more information or to get your house on the market, contact your local professional real estate team. We’re happy to assist.

 
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Posted by on August 24, 2017 in Home Seller Tips

 

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The Quick and Easy Guide to Determining How Big of a Mortgage Your Family Can Afford

The Quick and Easy Guide to Determining How Big of a Mortgage Your Family Can AffordAre you shopping around for a new house or apartment? One of the key considerations you will need to make is figuring out how much you want to invest in your new home. Below you’ll find our quick and easy guide to determining just how much “house” you can afford. Let’s get started!

Start By Making A Proper Budget

The first thing you’ll want to do is sit down and get a full budget put together. The easiest way to get the process started is to begin with two lists: income and expenses. For the income list, write down the amount of money your family brings in each month after taxes. If you have side income sources or extra income that tends to fluctuate over time, use the average amount for the past six months.

For the expenses list, write down all the spending that you do each month. Start with the major, stable items like rent, utilities and the like. Then work your way through to discretionary spending like dining out and other sources of entertainment. If it helps, go through your bank and credit card statements to ensure that you are not missing anything.

Once you have an accurate budget, you’ll know exactly how much you can afford to pay toward your mortgage payments each month.

Figure Out How Much You Can Put Down

Next, you’ll need to think about how much cash you want to pay as a down payment on your home. The larger the down payment you can afford, the smaller amount of mortgage financing you’ll need. While it might seem like a good idea to put as much as you can down, there are some things to consider. Any money you put against your down payment is going to be unavailable to you, which reduces your financial options. You’ll also lose the opportunity to invest it, which means missing out on potential returns over time.

Determine How Much House You Actually Need

Finally, give some thought as to how large or luxurious a home you want to buy. For example, if you have a small family and don’t need a large four- or five-bedroom house, you can instead opt for a smaller but more luxurious home. Conversely, if space is a priority, you may want to forego the high-end options to ensure you have enough room.

When you’re ready to explore your options, we’re ready to help. Contact your trusted real estate professional at your convenience. We’re committed to helping you purchase the home of your dreams.

 
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Posted by on August 23, 2017 in Home Mortgage Tips

 

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