Tag: real estate

Buying a Home in a Seller’s Market

Be patient, find a good realtor and get ready to move fast on a home at a moment’s notice. Sound advice in this crazy seller’s real estate market in America right now. Low interest rates led to historic sales in 2020 and now 2021 has historically low inventory. Sellers are getting dozens of instant offers and buyers have to be ready and will pay more to compete for the home they want.

Patience Is Key: Buyers will most likely be making offers on several homes before their offer is finally accepted. Stay resilient and keep forging forward without getting discouraged. Discipline is necessary for not becoming emotionally invested in any one property that could end up in a bidding war and raising the price. Know what you want and don’t want in a home. Including key features like location, the number of bedrooms, bathrooms, and know if there is anything that would be a dealbreaker.

Knowing what you want, what you can live with, and what you can’t live with will help you quickly narrow down homes during your search. It also means that when you find a home that is perfect, you won’t have to second guess yourself on whether you should move forward.

The Value of a Good Realtor: The resources, experience, and skills of a good Realtor are priceless when it comes to buying this hot seller’s market. Take the process of finding the perfect Realtor seriously, especially in this market. A high-level agent with the most experience and expertise will help you get the home and the deal you want. Take and follow all the advice he/she gives you knowing that their advice, education, and networking skills will be your best advocate in negotiating. If possible, work only with a Realtor who does real estate full time. As a buyer, you can’t wait for a “lunch break” or “after five” to see a property.

Be Ready. Move Fast: These are the days that you can’t wait. If you see a home online or on the MLS, get out and go see it immediately. Waiting a few days with the shortage of inventory out there could cost you. Homes are moving fast and if it’s a home that you think you will love? Run. Be prepared to make a same-day offer. There is also a possibility that you might have to buy a home sight unseen based only on videos and photos.

Get your financing in order, it will give you the advantage. There is strength in a preapproval letter or having proof of funds documentation on hand as well as working closely with a mortgage broker. You will be competing with other buyers and the one with the most bonafide offer will get the house.

Consider Contingencies: One of the biggest reasons a seller rejects an offer is due to the number of contingencies that are in the offer. The more that the buyer has, the greater the chance a transaction does not get completed.

While contingencies are all designed to protect you as a buyer, assuring you’re getting a safe and livable property, they are an extra burden for the seller. It all means a longer sales process, potentail repair costs and even a lost deal. Having an experienced Realtor as your advocate at this point in the process is key in helping you be careful when making a contingent offer.

The Bottom Line: The seller has the upper hand in this chaotic, hot market. Buying a home during a seller’s market is not for everyone.  There are many factors that need to be considered in order to help decide whether it’s a good idea or not.  Again, having a top Realtor is critical. He/She will be able to help you decide whether waiting is a better option and will be looking out for your best interest.

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Want to Start a New Home Project? Here Are 5 Ideas

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Are you moving to a new home? Are you thinking about expanding your existing space? Or are you renovating a room you hardly ever use? If you answered any of these questions with a positive nod of the head, you may be gearing up to start a new home project.

But even the thought of initiating such a project can be highly stressful. From finding the proper supplies to hiring the right experts, you have your work cut out for you every step of the way.

With that being said, pulling off this feat is not entirely impossible. After learning about some critical information, you can easily start and complete a new home project with the utmost ease.

To support you through the seemingly stressful process, here are 5 ideas for a new home project.

Pay Attention to Curb Appeal

If you have enough funds for a new home project, investing some of them into enhancing your curb appeal would be a good idea. It not only gives your home a fresh new aesthetic but also goes a long way toward enhancing its value.

Investments such as stunning landscaping and fresh exterior paint can all do wonders in this aspect. Depending upon your budget and comfort, you can choose the level of upgrades you want to make in this regard. These changes can be as minimal or as extensive as you may like. But in all cases, you should make it a point to make them as noticeable as possible.

It’s because when these curb appeal enhancements stand out at first glance, they boast of multiple benefits. In addition to giving your home a more attractive look among many other units in your neighborhood, these improvements appeal to any potential buyers whenever you decide to sell your home.

Get Professionals to Help You Out

While the DIY approach can work in some cases, that is not always an ideal solution. For instance, if you try to lift your furniture by yourself, you can end up with significant injuries. Similarly, if you try to paint your home all alone, it can end up in a haphazard job.

That’s why hiring an affordable moving service or a professional house painter is a great idea in these cases. This also applies to other professionals, such as kitchen contractors and pool designers. Getting help from these experts may seem like a large expense at first. But it actually saves you a lot of funds in the long run.

For instance, if you end up damaging your property or furniture with DIY efforts, associated repair costs can often run twice the expense of the original project. Similarly, refining your DIY work for optimal quality can also cost a pretty penny. On the other hand, seasoned professionals steer clear of damaging activities while also bringing the utmost quality to the table.

Invest in High Quality Supplies

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Regardless of the type of project you are undertaking, always make it a point to go after high-quality supplies. From buying a premium kitchen pantry to investing in a new air conditioning unit, these investments deliver long-lasting performance and provide you with optimal value for money.

This ensures that you are able to get the most out of your investment while living in your home. At the same time, following these approaches in certain types of renovations also helps in increasing your home’s marketability. Whether you are investing in kitchen cabinets or bathroom countertops, this approach can work wonders in terms of bringing the desired aesthetic and
durability to your home’s fixtures.

With that being said, high-quality materials don’t always have to cost you an arm and a leg. You can obtain them from various vendors who sell their items at wholesale prices. In some cases, you can find these materials through the help of your hired contractors, who are able to source massive discounts through their industry contacts.

Secure Your Existing Belongings

Securing your existing belongings is one of the most basic points of home projects. But it often gets overlooked due to the general sense of fervor that surrounds renovation or moving plans. In turn, your home improvement may end up leaving scratches, paint marks, and lasting damage on your furniture and fixtures.

Whether you are repainting your living room or rebuilding your kitchen, get some protective supplies for your existing items. Even getting items as basic as a canvas drop cloth can go a long way in terms of protection. Whether you are worried about paint stains or wood chips, these precautionary measures do a great job at protecting your home and assets.

Securing your belongings does not ask much from you in terms of costs or expertise, but there are times where expert advice may help. With that being said, this is one of those instances where DIY efforts can actually work in an effective way. By watching YouTube tutorials or reading text posts online, you can know how to secure certain floors, walls, and fixtures during specific home projects.

Spruce It Up With Some Fresh Greenery

No matter the type of decor you are aiming for, investing in a few plants can always take it up a notch. From uber modern homes to a classic vintage aesthetic, this approach applies to all types of personal statements and styles. In many cases, simply buying a gardenia plant can elevate your surroundings in an instant.

Keeping this in mind, make it a point to invest in relevant plant life that goes in line with the look you need. From hanging plants to outdoor pots, you can choose from a variety of options that fit within your home project’s desired aesthetic and end result. In addition to adding another layer of visuals, it also lets you dress up bare walls or empty spaces that look out of place in an otherwise elaborate space.

If looking after these plants is a problem due to your schedule or lifestyle, you can choose plants that are low-maintenance but stand out as a prominent enhancement to any area. This allows you to get the most out of your efforts without having to go through extensive measures.

By exploring these suggestions, you can start your new home project with proper care and planning. Whether you are revamping your entryway or redoing your bathroom, these tips can ensure a smooth execution of the whole process.

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Buying Vacant Land

With vacant land, it is very important to thoroughly understand all that you are buying. Many buyers purchase vacant land with the plan to build their dream home. With that in mind, research plays an important role in ensuring that your lot has the capacity and potential to house your dream home and all your desired features.

Equipped with essential initial knowledge about a vacant lot, potential buyers can maximize their time during a showing to ask detailed and specific questions about each property.

If you do your research, you may be able to buy land in an area soon to experience growth or revitalization. Even if you opt not to build right away, you could see some appreciation in your investment within a relatively short amount of time.

When you are researching land for sale, you have the opportunity to select the perfect lot for your dream home. You may find land near a waterfront, with breathtaking views, or as far from civilization as you like. Once you locate the perfect spot, you can create and customize the home of your dreams.

Vacant land is less expensive than developed land. With such a low price tag, you’ll enjoy a lower interest rate and pay off the mortgage faster than a traditional home purchase might allow. From there, you can start construction on your dream home.

Vacant land has many benefits but also numerous caveats. Vacant land is always a safe, appreciable investment when you do the research and due diligence to determine the property’s value and potential.

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Red Flag Warnings

Is it time for you to walk away from your dream home ? Red flags can appear anytime during a house-hunting process and depending on the size of the problem, it may just mean you have to keep searching the MLS. Some slight problems or minor defects can be fixed, but some issues can seriously detract from your investment, and even endanger your health and safety.

Foundation Issues: If your home inspection report lists concerns with the integrity of your home’s foundation, don’t ignore them.  While all poured concrete foundations will crack at one time or another, hairline cracks are not an indication of a problem. If a crack is wider than 1/2 inch, however, it’s a good idea to have a foundation contractor examine the area. This also holds true for cracks that appear to have been recently patched. Large cracks can indicate an unstable foundation. Not all foundation issues are expensive to fix. However, major structural problems that require stabilization using hydraulic piers can cost a lot of money.

Electrical Issues: If a light switch does not work when you flip it, it’s probably just a minor electrical issue that can be fixed later. But, Outdated wiring or too little voltage is cause for concern. Not only will you not be able to hook up all your electronics and appliances, but problems with your electrical setup can also increase your risk for a home fire. Major electrical issues can end up being costly projects that require permits, professionals, and inspections to bring up to code. 

Roofing Issues: A complete roof teardown is a substantial investment, so it’s important to know how old the roof is, particularly important in areas of the country where there is a lot of snowfall since that can shorten the life span of a roof.  Besides the costs of replacement or repairs, leaky roofs can lead to other problems like mold, rot, and water damage. 

Mold: If water damage or mold is found in the home, consider it a red flag. In truth, most homes will have some mold in crawl spaces and attics, and not all mold is bad for your health. But, important: mold can mean there are other problems, like water leaks from the roof or major appliances, that could be costly to correct. It’s imperative that the source of the mold is found. Otherwise, the problem could worsen, and you could end up with a health hazard.

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A Realtor’s Fiduciary Duty

The National Association of Realtors indicates that fiduciary duties cover six distinct areas: loyalty, confidentiality, disclosure, obedience, reasonable care and diligence, and accounting. Some—but not all—of these duties are self-explanatory.

Loyalty means a Realtor must act in the best interest of his clients, including placing their client interests above their own. So, for example, if an agent is interested in buying a house that he knows is perfect for one of his clients, he must give the client priority and refrain from making an offer unless and until the client rejects the house.

Confidentiality means Realtors must safeguard their clients’ secrets. Agents often know the lowest price that a seller-client will take, for example, but the agent must keep it a secret. Likewise, if a seller must sell due to an emergency, the agent may not reveal the seller’s distress. Buyer’s agents must also keep their client’s secrets. For example, the highest price that a buyer is willing to pay and that the buyer loves a given house are secrets.

Disclosure means that the Realtor is required to disclose affirmatively all information concerning the transaction as well as the property which might affect the decisions a principal makes, informing the principal what the Realtor knows.

Obedience requires an agent to carry out his client’s legal wishes. No agent is ever obligated to violate the law. In fact, the law calls for fair and honest dealing, no matter whom the agent represents. So if a seller tells an agent to lie about a leaking roof, he is under no obligation to do so. However, if a seller tells her agent to list a house at a given price, the agent must obey. If the price is unreasonable, the agent should encourage the seller to reconsider the price or do as the seller asks, but the agent cannot list it at a different price.

Realtors are obligated to use reasonable care and diligence in pursuing the principal’s affairs. The standard of care expected of a real estate broker representing a seller or buyer is that of a competent real estate professional. By reason of his license, a Realtor is deemed to have skill and expertise in real estate matters superior to that of the average person. As an agent representing others in their real estate dealings, a broker or salesperson is under a duty to use his superior skill and knowledge while pursuing his principal’s affairs. This duty includes an obligation to affirmatively discover facts relating to his principal’s affairs that a reasonable and prudent real estate broker would be expected to investigate. Simply put, this is the same duty any professional, such as a doctor or lawyer, owes to his patient or client.

The duty of accounting means that the agent must account for money and property entrusted to her. Agents must give escrow funds to their brokers or to the client’s attorney who will keep it in an escrow fund. Listing agents must keep track of showings so that they have a record of who has come and gone. They must also ensure that a listed house is secure, either by signing out keys to other licensed agents and accounting for their whereabouts or by hanging a lockbox on the property.

The Bottom Line: Fiduciary abuse is against the law and can leave an agent open to a lawsuit, and it destroys the professional and ethical standing of the real estate agent. As a Realtor, you should always be aware of your fiduciary duties to your clients. It’s a major responsibility and upholding these duties is crucial to developing a strong reputation.

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Selling & Buying a Home in a Buyer’s Market

Today in the United States, home sales are on the rise as mortgage interest rates remain low. Buyers are looking to take advantage of low-interest rates and sellers are looking to get top-dollar for their home in the low inventory, competitive market.   Is it a buyer or seller’s market?

When the supply of homes exceeds the demand it’s a buyer’s market. The inventory of homes listed for sale is large but there aren’t many interested buyers looking. These conditions give buyers leverage over sellers because when supply is higher and demand lower, the market is forced to respond.

In a buyer’s market, real estate prices decrease, and homes linger on the market longer. Because of this, sellers will need to compete with each other in order to attract buyers. What typically happens is sellers drop their asking prices to gain an advantage in the market and they are ready to negotiate offers to prevent buyers from walking away. A buyer’s market does not mean your house won’t sell. Hire an experienced Realtor to help you get your home ready to show and to price it right to sell.

A few tips for buying a home in a buyers market knowing that it’s the ideal time to buy your dream home because the prices are lower and there are less people to compete with shopping the market:

Don’t rush. This is when you can take your time because with less competition it’s not as much of a concern that you might miss out on a property you like.

Have your Realtor show you as many homes for sale as possible. Knowing what is available on the market is favorable because it will not only ensure that you find the perfect home but give you a greater ability to negotiate on price.

A good Realtor will make sure you are familiar with all the comparable properties on the market and this will help in negotiating the price. Use the comps to your advantage.

Know how long a home has been on the market. The longer it has been available the more power you will have to negotiate for a lower price.

A few tips for selling your home in a buyers market:

Make your home stand out. Take advice from an experienced Realtor on what should be done to accomplish this.

There are more properties out there when it’s a buyer’s market and they will be pickier. If your home needs repairs it’s in your best interest to get them fixed.

Clean and depersonalize each room. If buyers can’t envision themselves living in your home, they won’t make offers. Get rid of any clutter, hire a professional cleaning service and touch up your landscaping to prepare to put your home on the market. Pull out any family photos, papers, souvenirs, or anything else that makes it “your” home.

Find the Realtor that will price your home competitively. Look at all the listings in your area and see what they are offering. Make sure your asking price is either on par with or lower than the comparable homes in your area. And when you do get an offer, make sure that you judge it fairly.

A buyer’s market is the most ideal time to buy a home. You will have the advantage as a buyer. Not only are there more homes to choose from, but you have the power in most negotiations. The ability to walk away from a sale knowing there are probably comparable homes on the market gives you the power. Sellers are more likely to make concessions, drop prices and accept less favorable offers.

If your plans are to buy or sell a home soon, align yourself with a trustworthy Realtor. They are well-versed in market trends and can answer questions you may have throughout the buying or selling process.

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Real Estate and Social Media

It’s critically important, whether you’re working with an agent or selling your home on your own, to market it online. Especially now, during the COVID pandemic where there are limits on visiting homes. Using the MLS will get you the most exposure but you must put your best foot forward. Find the best Realtor and interview her to see how she will take advantage of all the opportunities to get your home in front of people. A good Realtor will have access to the best indoor photographers and understand that photos are more important than ever and they must be showcased on all social media platforms. Most American adults are online. More than 1 billion people in the entire world log in to Facebook on any given day. The potential to reach a huge number of people is exceptional.

On the subject of photographs:  The very best Realtor will help you to stage and prepare your home for professional pictures. All rooms should be clear of any clutter. The pictures MLS displays are usually grainy and of poor quality. Homebuyers more times than not, begin the search for their new home online. Take advantage of this. Stand in the doorway to rooms and snap the photo shooting into the room.  There are never too many photos!

Facebook business page:  Now those beautiful photos need to be posted and announced, showcased, and marketed. The Realtor your choose should have a strong Facebook page with a good following of people. The posts should be shared, linked, and even made into an ad. They should know how to target the ad and pinpoint people by location, interests, behaviors, age, and more. Realtors might even host open houses via Facebook LIVE and interact with people that are watching.

Instagram:  The world’s largest photo-sharing platform is the perfect place to showcase the photos taken of the home.  Instagram Stories are gaining in popularity and selling homes. A powerful and fun way to get information out. The great thing about Instagram Stories is that they are automatically featured at the top of a user’s homepage. The poster can expect their story to generate more exposure than a post in this case.  

The Bottom Line: Everyone wants a Realtor that can be trusted and will do everything she can to get the most money for a home in the least amount of time. The Realtor is the homeowner’s advocate. The marketing of the home should be exceptional.  Beyond using the MLS (Multiple Listing Service) there should be professional pictures to use on websites and every social media platform available.

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Get the Edge in a Seller’s Market

A seller’s market is when there are more people buying houses than there are houses for sale.  If you’re looking to buy a home right now, it may be hard to get one at a fair price. In the most sought-after areas, houses are going under contract in a matter of days, even hours. What can you do to be prepared if you must buy a home now?

Hire the best Realtor

Do a search on Realtors. Get the best, with the most experience, you can find. This will give you the advantage you need in a competitive market as she/he will be on the frontlines, keeping you in the know at all times.

Be ready to act instantly

No matter where you live, listings for homes in popular neighborhoods are often few and far between. When these homes do hit the market, they don’t last long. If your heart is set on buying in one of the more popular areas, starting your house hunt early and having patience means that when the moment comes, you’ll need to act quickly.

If you’re really interested in a home, ask your Realtor to get as much info as you can beforehand: property reports, disclosures, etc. Keep your schedule open so that when a home becomes available, you can get to it immediately. .

Get pre-approved

One of the smartest things you can do to ensure your chances of getting the home you want. This part can very well make or break the process. Assume others will be putting in an offer as well and having a pre-approval letter in your hand will give you an edge.

Having your lender verify your ability to afford a home loan for a certain amount lets the seller know you are qualified and motivated. It shows financial security which gives the seller the confidence to feel that the sale will go smoothly with you.

Keep your offer simple

Most offers include contingencies- things like completing inspections and receiving a mortgage commitment -that needs to happen for the transaction to move forward.

When looking at offers, sellers tend to see contingencies as potential opportunities for the deal to fall apart. As a result, they’re more likely to choose an offer that’s relatively “clean” or reduces their risk of potential hang-ups.

In a competitive market, you might see other buyers removing or reducing their contingency periods to make their offer more competitive.

But remember! If you choose to, for example, waive an inspection contingency, you’re agreeing to buy the home regardless of what problems may exist. You’ve got to be OK with that.

Start with a strong sale price

Besides keeping your contingencies in check, there is another component of the offer that will help set you apart from the crowd and it’s fairly obvious — the offer price.

If it is possible for you, consider putting down a larger deposit which will let the seller know you are serious. Be flexible with the closing date to accommodate the seller’s schedule. And know that the sellers are likely to be enticed by a big payout, or if possible, a cash offer. Offer the asking price – and even more, if you think you can swing it. Use a mortgage calculator to see what your monthly payments will look like.

Write a personal note to the seller

Remember that many sellers have an emotional attachment to their home and moving is often hard for them. They’ve put their heart and soul into the home, built families, and made memories in the home. Write a note letting them know why you love their home and how you plan to take care of it. They may love to hear how their home will be in good hands.

Be prepared to negotiate

The whole experience of buying a home is emotional and if the home you are trying to buy has multiple offers, this isn’t the time to throw in a lot of extras. Keep the contract as clean as possible by not asking for extras such as closing cost changes, home warranties, appliances or furniture.

The Bottom Line: Be flexible. As a buyer in a seller’s market, not everything will go the way you want it to. Be patient. If you are working with the best Realtor, they will have the experience to keep you calm while guiding you in the right direction.

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Real Estate Myths Debunked

Just because you read something on the internet does not mean it is true.  Real estate myths are all too common, however, they can be “debunked” with a proper explanation. Most people only deal in buying or selling real estate only once or twice in their lives. Because of this, myths about the real estate industry abound, causing confusion among new buyers and misconceptions about real estate

Set your home price higher than what you expect to get: As a seller, giving your property a price tag that is higher than the prevailing market price may reduce your chances of getting a good deal for your property. Homebuyers and agents usually do not consider homes that are priced beyond market value. Also, you might consider pulling down the price if you are not able to attract offers in the first few weeks of listing your property for sale. Also, buyers and Realtors often get suspicious about properties that have been on the market for too long.

Experienced agents are always the best ones: It is true that longevity and experience in the real estate business can be some of the indicators of an agent’s competence, but these can certainly not be the sole indicators. Among the essential and imperative traits of a credible real estate advisor are honesty, initiative, listening skills, availability and, most importantly, negotiation skills. Both buyers and sellers look for these qualities in their advisors, rather than the duration of their career.

If buyers don’t like the exterior, they will never consider going inside: It may be true in some cases, especially if the buyer is in a hurry to spot just the right property. But in most cases, buyers are out to get properties that work best for them on multiple counts. If the rest of the features of the house are exceptionally good, they might like to ignore the flaws in exteriors. For instance, even if the exterior is not very appealing, the property might have its desired amenities and features like a great layout, a specific number of bedrooms and bathrooms, a portico, or a backyard. In such cases, the buyer could consider making the purchase and revamping the exteriors later.

Going ‘for sale by the owner’ is the best option: You as a home buyer can choose the route you want to take for finding the right property for yourself. The choice is between hiring an advisor who understands your requirements and takes you on a tour of several selected homes that are relevant. Alternatively, you could access online real estate portals, go through newspaper listings, or speak to people you know are selling their properties, and then go out on your own. 

Agents say and do anything to close a deal: It is a common belief that real estate advisors say and do anything to complete a sale, only to pocket their commission. Though there might be a few aberrations, real estate advisors with a professional approach are ethical people who dutifully toil to get you the best deal. Every agent has different skills, different experience levels, and different traits.

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School District Matters

When it comes to resale value, whether you have children or not, researching school districts is a crucial step when buying a new home. it’s best to invest in a home in a top school district. Living in a good school district doesn’t just bring better teachers, better books, and better test scores — it also can help preserve home values and ensure faster resale rates. These homes often sell faster than homes in lesser school districts. In a case of bad economic times, a home in the lower quality school district declines in home value, while the homes in the top school districts will hold their value.

Do the research. Any information you need for absolutely anything is available online. Do a search to determine the school district or even the specific school, that is the best in the town you will be searching for a new home. There are websites that offer test scores, rankings and demographic information, including student diversity by race and gender, the percentage of students on free lunch programs and the student-teacher ratio, to learn about the schools and school districts you are considering. One of the best ways to dig into specifics on districts you’re considering is by talking to other parents. If you’re moving to an unfamiliar area, Facebook groups and other social media sites can be a way to connect. There’s no better way to get a feel for a certain district than engaging with people who are actually in it. 

A survey on Realtor.com asked random people about their overall buying strategy and how they viewed school performance. The results found that a surprising number of people are willing to give up things to get within the boundaries of a good school district. That, for every five buyers, one buyer would be prepared to give up a garage or bedroom for a good school.

They also found that for every three buyers surveyed, one buyer would even settle for a smaller home to get access to a good school. And over half of those surveyed said they would sacrifice nearby shopping options for a better school.

Beyond sacrificing things in their home purchase, buyers were willing to pay more money for a home in a good school district. One out of five of those surveyed said they would pay between six and ten percent more for a home – and one out of ten people surveyed stated that they’d go even higher, paying up to 20 percent more for a home with access to the right schools.

The Bottom Line: Consult with the best Realtor in the area in which you are looking. The next best resource for neighborhood and nearby school knowledge is your local real estate agent. Even if you don’t have kids, between the Realtor and the research you do, buying a home in a good school district affects the value of the home.

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