Selling Before the Holidays

 

Sell Your House Before the Holidays

As you look ahead to the winter season, you’re likely making plans and thinking about what you want to achieve before the year ends. One of those key decision points could be whether or not you want to move this year. If the location or size of your current home no longer meets your needs, finding a house that better suits your lifestyle may be a top priority for you. But with today’s cooling housing market, is it really a good time to sell your house, or should you wait?

If you’re ready to make your decision, here are three reasons you may want to consider selling before the holidays.

1. Get One Step Ahead of Other Sellers

Typically, in the residential real estate market, homeowners are less likely to list their houses toward the end of the year. That’s because people get busy around the holidays and deprioritize selling their house until the start of the new year when their schedules and social calendars calm down.

Selling now, while other homeowners may hold off until after the holidays, can help your house stand out. Start the process with a real estate professional today so you can get your house on the market and get ahead of your competition.

2. Get in Front of Serious Buyers This Season

Even though housing supply has increased this year as buyer demand has moderated, it’s still low overall. That means there aren’t enough homes on the market today, especially as the millennial generation reaches their peak homebuying years. As Mark Fleming, Chief Economist at First American, says:

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

Serious buyers will still be looking this winter and your house may be exactly what they’re searching for. If you work with an agent to list your house now, you’ll be able to get in front of the eager buyers who are hoping to make a move before the year ends.

3. Seize a Great Chance To Move Up

Don’t forget, today’s homeowners have record amounts of equity. According to CoreLogic, the average amount of equity per mortgage holder has climbed to almost $300,000. That’s an all-time high. That means the equity you have in your house right now could cover some, if not all, of a down payment on the home of your dreams.

And as you weigh the reasons to sell before winter, don’t lose sight of why you’re thinking about moving in the first place. Maybe it’s time to buy a house that’s in a better location for you, has the space you and your loved ones have been craving, or simply gives you that sense of home. A trusted real estate advisor can help you determine how much home equity you have and how you can use it to achieve your goal of making a move.

Bottom Line

If you’re thinking about selling your house so you can find a home that better suits your needs, don’t delay your plans. Let’s connect so you can accomplish your goals before winter.

Yes, Yes it is STILL a Sellers' Market

 

It’s Still a Sellers’ Market [INFOGRAPHIC]

In any market, it's always a question of SUPPLY and DEMAND.

Some Highlights

• Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
• Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. There’s a reason why 72% of people believe it’s a good time to sell.
• Don’t miss out on this unique opportunity. Let’s connect so you can take advantage of this hot sellers’ market.

Inflation and Interest Rates on the Rise

 

Experts Project Mortgage Rates Will Continue To Rise in 2022

Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Have you heard anyone in the news or housing industry say "money is on sale"? Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.14%.

What does this mean if you’re thinking about making a move? For a buyer this could mean waiting until next year will cost you more in the long run. If you are a seller, buyers are still out there with pressure to buy at the lowest rate they can get which means if you position your home correctly, you can get the best price for your home right now. As rates go up, the pool of buyers who can afford your home gets smaller. Here’s a look at what several experts project for mortgage rates going into 2022.

Freddie Mac:

“The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.”

Doug Duncan, Senior VP & Chief Economist, Fannie Mae:

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.” 

First American:

“Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.”

If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home.

As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections:Whether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals.

Bottom Line

If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher.

Improve or Move??

 

The Big Question: Should You Renovate or Move?

We have all spent a lot more time sitting around our homes in the last 18 months and not surprisingly, this has changed what many people think about their homes and how they function. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% of respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

If you’re a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:

1. A possible desire to relocate
2. The difference in the cost of a renovation versus a purchase
3. Wondering if you'll get out what you put in to a renovation
4. Finding an existing home that has exactly what you want (versus trying to restructure the layout of your current house)

In any case, you’ll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.

Home Equity Is Skyrocketing

The record-setting increases in home prices over the last two years dramatically improved homeowners’ equity. The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:

“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.

If you decide to renovate, you’ll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between the down payment and the cost of your next home.

Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you’ll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you’re one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

First Step: Determine the Amount of Equity in Your Home

If you’re ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you’ll need two things:

1. The current mortgage balance on your home
2. The current value of your home

You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.

Bottom Line

If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home.

For Sale By Owner, and Discount Services

 

Don’t Tackle Selling Your Home on Your Own – an Agent Can Help

For Sale By Owner and Discount Services are, on the surface, two separate topics, but the reasons for avoiding these options when you sell your home are largely the same. This week, Inman published an article that touched on a few things out there that are hurting the Real Estate profession and one in particular struck me, and that is the concept of the "marginal agent". I am not sure if he coined the term, but in this article, Kalama Kim, a senior vice president of Hawaii-based Coldwell Banker Pacific Properties discussed this concept of the "marginal agent" - referring to agents who don't give quality service and who therefore bring down the reputation of other agents and lower our perceived value.

If you’re looking to maximize your sale and minimize your effort, you need to work with a real estate professional. In a sellers’ market like today’s, it can be tempting to list your house on your own – known as For Sale By Owner (FSBO). But the truth is, a real estate professional can save you time and money by managing every step of the process, from pricing your home to reviewing documents and handling negotiations. Even if you go with a discount agent, you are knowingly, or unknowingly giving up the benefits of having a quality agent represent you in one of your most important transactions. (and if you don't think that discount broker is skimping on services that could end up costing you more than your discount is "saving" you, make sure you read the fine print)

Before you decide to sell your house on your own, here are five reasons why working with a full-service agent is your best bet to maximize the sale of your home.

1. First impressions are everything – and an agent knows how to make a great one.

Prepping a house for sale requires a significant amount of time and effort, even though it may seem simple at first glance. Doing it right so it stands out takes expertise and an understanding of what buyers are looking for. An agent considers things like:

• Should you take down any personal art or pictures?
• How much landscaping should you invest in to boost your house’s curb appeal?
• What wall colors are most appealing to buyers?

An expert real estate advisor relies on their experience to answer these questions and more so you don’t invest in the wrong things. Your time and money are important – you shouldn’t waste either.

2. Agents have tools to maximize the number of views your home gets.

Put plainly, the more buyers that view your house, the better your return will be. In our current market, homes are receiving 3.8 offers on average per sale, according to recent data from the National Association of Realtors (NAR). While that’s promising for the sale of your home, it’s important to understand your agent’s role in bringing buyers in.

Agents have multiple tools at their disposal – from social media to agency resources – to ensure your home is viewed by more prospective buyers. Leveraging the tools available to your agent and your agent’s expertise may help boost your sale price as well.

3. An agent won’t miss anything in the fine print.

Your agent can also save you time by taking any guesswork out of navigating the required documentation. Today, more disclosures and regulations are mandatory, meaning the number of legal documents you need to juggle is growing. Why would you want to trust all of that to the agent who represents the other side?

Because there’s so much to take care of, it can be hard to truly understand all of the requirements and the fine print. That’s where an expert advisor can truly shine. They’ve been through the process before and can be your guide to avoid any costly missteps.

4. Expert advisors know the market and how to price your home.

 Another way your agent maximizes the sale of your home is by making sure it’s priced right. You can get a Free Internet Estimate on your home's value, but only use that information as one of multiple sources of data. Until that real estate app develops the ability to walk inside your home (and all the properties it's comparing you to), these programs use algorithms that are not completely accurate and can really mess with seller expectations. Real estate professionals have the experience to compare your house to recently sold homes in your area. They also understand the market at large and can factor in any upgrades you’ve completed to your home. Combining these factors is the key to making sure your home is priced to move quickly – and at a competitive price. 

When you FSBO, you’re operating without this expertise. Even with your own research, you may not find the most up-to-date information and could risk setting a price that’s inaccurate or unrealistic. That neighbor who sold their home 3 months ago negotiated their contract 4 or 5 months ago. Their experience could be very different from the one you find yourself in when you decide to sell. The market changes month to month, season to season. If you price your house too high, you could turn buyers away before they’re even in the front door. This could also cause problems when it’s time for the appraisal.

5. Your agent will be an expert negotiator.

In addition to their experience navigating sales, real estate professionals understand how to negotiate every aspect of a deal. They also know all the parties that will be involved with the sale, including:

• The buyer, who wants the best deal possible.
• The buyer’s agent, who will use their expertise to advocate for the buyer.
• The inspection company, which works for the buyer and will almost always find concerns with the house.
• The appraiser, who assesses the property’s value to protect the lender.

An agent relies on their experience and training to make the right moves during the negotiation. They’ll know what levers to pull, how to address each individual’s concerns, and when you may want to get a second opinion. Selling your house as a FSBO means you’ll need to be prepared to have these conversations on your own. Buying and selling a home can be a very stressful process and emotions can run high on both sides. It can be invaluable to have that representative who can take on the headaches for you, see things from the outside looking in, and can protect you from costly mistakes.

Bottom Line

Selling a house takes time, effort, and expertise – don't go at it alone. Let’s connect to make sure you have an expert on your side to make the most of your sale

The Number ONE Question to Ask before Hiring an Agent to Sell Your Home

 Everyone loves to talk real estate. If you own a home, it is probably your biggest asset and well, it’s a good idea to keep tabs on what it’s worth. The year 2020 has been a difficult year for everyone, but with interest rates and inventory plummeting, the Maryland real estate market has gotten pretty interesting. I am constantly asked about the current state of things – what homes in the neighborhood sold for, how much over list price are people willing to pay, how long is this going to last? The other thing I hear frequently is that people would love to sell their home in this market. With inventory so low, I love to hear that. We need more homes for the thousands of buyers who are searching. It is easy to believe that in this market, all you have to do is stick a sign in the yard and it’ll sell, right? Yep, there’s a good chance it will, but will you be getting the best price for your home if that is all you do? Doubtful. I’ll save my speech on “For Sale By Owners” and the huge legal risks they are taking when trying to sell their own property for another time and focus on the big topic of interest. Money.

There is only ONE reason homes are selling over list price by thousands of dollars. Competition. Supply and demand is the oldest business concept in the book and it is not a secret. It is as simple as that. There are more buyers than homes for sale right now, and there will be for a while longer. So how do you take advantage of this market as a seller? You have to get the most people possible to SEE your property. If no one is seeing it, no one is buying it, and they certainly aren’t competing over it. If you are not in the MLS (multiple listing service utilized by agents), you are missing out on serious buyers working with agents who are ready and more importantly, prequalified to buy. What you might not realize is that this is just the tip of the marketing iceberg, and if putting a sign on your property and throwing it up on the MLS is all your agent is going to do to market your property, you are not going to get the highest and best price for your home, period. An overwhelming percentage of people start their homebuying search online – but if they aren’t moved to get in their car and come see your home in person, they aren’t buying it. There have always been agents who take a listing, plop a sign in the yard, toss some iphone photos up on the MLS and move on. (I expect I will write another blog solely on my feelings on smart phone property photos). In this market, many who used to provide premium service have stopped doing what they typically do because the offers will come without it. So, what is the question that is more important than what is your commission? What question will actually help you decide who to hire? Here it is: “What are you going to do to market my home?”

If you or someone you know is interesting in selling a home, please contact me at meredith.salita@gmail.com to find out what I do for every client to make sure you get the highest and best price for your home.