Monday, March 28, 2016

The Top 5 Reasons You Should Not For Sale By Owner

The Top 5 Reasons You Should Not For Sale By Owner | Keeping Current Matters  

In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five of those reasons:

1. There Are Too Many People to Negotiate With Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value
2. Exposure to Prospective Purchasers Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet Where do buyers find the home they actually purchased?
  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Source: Keeping Current Matters | The KCM Crew 03282016

Wednesday, March 23, 2016

3 Charts That Scream ‘List Your Home Today’

3 Charts That Scream ‘List Your Home Today’ | Keeping Current Matters

In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise.

SUPPLY

The National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market.

3 Charts That Scream ‘List Your Home Today’ | Keeping Current Matters

DEMAND Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As seen in the graph below, buyer demand in February significantly outpaced the last six months.

3 Charts That Scream ‘List Your Home Today’ | Keeping Current Matters

Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home (if they even are able to find a home they wish to purchase). Listing your house for sale now will allow you to capitalize on the shortage of homes for sale in the market, which will translate into a better pricing situation.

HOME EQUITY

Many homeowners underestimate the amount of equity they currently have in their home. According to a recent Fannie Mae study, 37% of homeowners believe that they have more than 20% equity in their home. In reality, CoreLogic’s latest Equity Reporttells us that 72.6% actually do! 3 Charts That Scream ‘List Your Home Today’ | Keeping Current Matters
Many homeowners who are undervaluing their home equity may feel trapped in their current home, which may be contributing to the lack of inventory in the market.

Bottom Line

If you are debating selling your home this year, meet with a local real estate professional who can evaluate the equity you have in your home, as well as the opportunities available in your market.
Source: Keeping Current Matters/ The KCM Crew 03222016

Wednesday, March 16, 2016

The Main Reason to Use a Real Estate Professional when Selling Your House

The Main Reason to Use a Real Estate Professional when Selling your House | Keeping Current Matters

Every homeowner hopes to accomplish five goals when selling their home:
  1. Sell it for the best price
  2. Sell it within a predetermined time
  3. Sell it with the least amount of hassles
  4. Close on the sale the same day they move into their new home
The fifth reason is the most obvious and the most important:
  1. They want to make sure it sells.
In order to dramatically increase the chances that the house sells, a homeowner should list with a real estate professional in their market. Why? Because agents have access to the vast majority of the available buyers!! According to the National Association of Realtors(NAR) recently released 2016 Home Buyer and Seller Generational Trends Report, 87% of all buyers purchased their home through a real estate agent or broker. And more that 8 out of 10 buyers in every age group used an agent (see chart below).

The Main Reason to Use a Real Estate Professional when Selling your House | Keeping Current Matters

Bottom Line

If you want your home sold, the best way is to go where the buyers are. The NAR study revealed that the vast majority of purchasers will use an agent when they buy. Meet with a local real estate professional today if you want the best chance of selling.

Source: The KCM Crew/Keeping Current Matters 03162016

Thursday, March 10, 2016

Study Again Finds Homeownership to be a Better Way of Producing Wealth

Study Again Finds Homeownership to be a Better Way of Producing Wealth | Keeping Current Matters

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index homeownership is a better way to produce greater wealth, on average, than renting. The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers use a “'horse race' comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.” Ken Johnson Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:
“The nation as a whole is in buy territory. Continued near record low mortgage rates, unsteady stock market performance, and rents (on average) now out pacing the cost of ownership (maintenance, taxes, insurance, etc.) all combine to favor owning and building wealth through home equity over renting and reinvesting in a portfolio of stocks and bonds.”
Dallas, Denver and Houston currently remain deep in rent territory but, “there is some degree of good news from these markets for homeowners as the cost of renting is now increasing at a faster rate than the cost of homeownership — reducing the advantage of renting over buying.”

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Source: Keeping Current Matters/KCM Crew/03082016

Tuesday, March 1, 2016

WHEN THE DREAM HOUSE IS A MONEY PIT

Buyers that fail to pay attention might find that the dream house is a money pit. The vast majority of agents have little to no experience evaluating a home. Seller’s disclosures? Please, we’ve written repeatedly that home buyers should not put much faith in seller disclosures. Home inspectors should always be consulted but a good 75% of a report is boilerplate; issues noted are often followed by “…and an expert in the field should evaluate…”. If a buyer fails to follow up – any many do – problems can arise. Making a home purchase look boring takes a significant amount of experience and teamwork; one of the most important aspects is fully understanding and addressing the flaws in every home. Miss something and that dream home becomes a bottomless money pit. What to do? Plenty..... There are common sense moves that every buyer should do - and they very fist and basic thing is ensure that everyone involved is an EXPERT. The single most important asset to a buyer is their agent, yet and still so many buyers do not take this most important step seriously. Many buyers either don't care to or don't know how to properly select a real estate agent. Miss that and trouble follows because most buyers will depend on their agent to keep them out of trouble. There are three main areas to focus attention on to avoid falling into a money pit home.



1. QUALIFY everyone involved in the transaction. From agent to inspector to contractor to surveyor to.......just a few seconds on Google...do something!

2. Learn about homes, what to look for and what might be common problems for homes in the area under consideration. Knowing trends or issues in the area, age of homes, materials used, trends....all help paint a background for a buyer.

3. Understand options if and when something arises. The agent is critical here; are there outs in the contract to prevent the buyer from being trapped in a deal? While the above may be common sense, it’s fascinating how stupid – yes that’s harsh but it’s true – some home buyers are when it comes to this process. It’s baffling; would a buyer act as nonchalantly if handing 400K to a financial adviser? Why would they use Uncle Tony who is between jobs as their agent knowing Tony isn’t a pro? Read more and dive deeper into ways to avoid The Dream House that Becomes a Nightmare. Don't let what should be one of the best things become one of the worst - or a financial calamity that does lasting damage.

Sources: Realty Times, Hank Miller/Zillow/AOL Real Estate/ New York Times

Tuesday, February 23, 2016

Thinking of Buying A Home? What Are You Waiting For?


Thinking of Buying A Home? What Are You Waiting For? | Keeping Current Matters

With spring right around the corner, you may be wondering if you should wait to enter the housing market. Here are four great reasons to consider buying a home today instead of waiting.
  1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent reportprojects home values to appreciate by more than 3.2% a year for the next 5 years. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
  1. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained below 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Freddie Mac & theNational Association of Realtors are in unison projecting that rates will be up almost three-quarters of a percentage point by this time next year. An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
  1. Either Way You Are Paying a Mortgage

As a paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
  1. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Bottom Line

If you are ready and willing to buy, find out if you are able to. Meet with a local real estate professional who can help you find your dream home.


Source: Keeping Current Matters / KCM Crew 02232016

Tuesday, February 16, 2016

HOW TO KNOW IF YOUR HOME IS MAKING YOU SICK?

Between flu season and spring allergies and surprise summer colds, it can be difficult to stay healthy. But what if the biggest culprits aren't high pollen counts or people who don't cover their mouths when they sneeze? It could be that your house is making you sick. "Toxins, pesticides, gases, mites, and molds are everywhere, and the more you're exposed to them, the greater your risk for developing the health problems they can cause," said WebMD.
And the numbers are a bit staggering. According to the Environmental Protection Agency and the Department of Housing and Urban Development, "More than 30 million homes have significant health issues," said the Washington Post. "The trouble is that many homeowners and renters aren't aware of the link between their housing and their health. Carbon monoxide poisoning can initially resemble the flu. And exposure to some toxins may be confused with seasonal allergies." Here are some of the biggest offenders and what to look out for: Dirty carpet Every step you take through your house can be spreading dangerous germs. Tracking in dirt and animal waste can pose health risks, while using rugs in areas that are damp has been shown to exacerbate asthma symptoms. Vacuuming frequently and having regular deep cleanings is recommended for carpeted spaces. But, your vacuum could be doing more harm than good.



Southside Restoration
"This essential household item, which we are recommending to take care of most household allergens, could actually be spewing them all back into the air," said Huffington Post. "The best vacuum has a HEPA filter, (which) filters more than 99 percent of the particulates in air. And if you use a cleaning service, make sure they use a HEPA-filter vacuum, as well, so your home isn't being contaminated from allergens in previous houses." Open trashcans and other standing water Mosquitoes are attracted to water and will seek out the little bit that collects in the bottom of your open trashcan or kiddie pool. Keeping an eye out for potential problem areas can help keep mosquito bites at bay and help prevent more dangerous conditions like West Nile and the Zika Virus.



Total Mosquito Control
Critters Leaving dog food in the backyard can attract rats and mice, and even bobcats and coyotes. Keeping a vigilant eye out can help ward of predators and nuisances, but bringing food in promptly if you're feeding your animals outdoors is a better way to keep them safe. Dust mites Just the term alone is enough to make us cringe. But that's nothing like having to deal with a dust mite infestation. The best way to keep them away:
  • Keep cool - dust mites need a warm, humid environment to survive.
  • Clean frequently - limiting dust and dirt in your home is key.
  • Wash your bedding - bedding and mattresses are among dust mites' favorite spots to hang out. Washing them in hot water can help kill them off. A special mattress cover that protects your sleeping area can also help.
Gases According to the Centers for Disease Control and Prevention (CDC), nearly 400 Americans die from unintentional carbon monoxide poisoning every year. Carbon monoxide is a toxic gas that is colorless and odorless. Installing a carbon monoxide monitor, which you can pick up for under $100, is the easiest way to prevent a tragedy. Carbon monoxide is perhaps the most well-known combustion gas that can be a danger in the home, but it's not the only one. Nitrogen oxides and sulfur dioxide "can cause flu-like symptoms, respiratory illnesses, or even death," said WebMD. "Don't use unvented combustion appliances (such as portable kerosene heaters) indoors. Use an exhaust hood over a gas stove. Clean and maintain your chimneys and furnace every year, making sure that they are properly vented." Water pollution "The U.S. has one of the safest water supplies in the world, but that doesn't mean it's failsafe," said WebMD.

 
The Fiscal Times
Indeed. The critical situation in Flint, Michigan, which has poisoned thousands of residents with its unsafe water, is unusual - thankfully - but that doesn't mean we all shouldn't be vigilant about our drinking water. "To check the water quality in your area, call the EPA's Drinking Water Hotline at (800) 246-4791, or visit the web site at www.epa.gov/safewater/dwhealth.html. If you use a private well, test your water every year for nitrates and bacteria." Lead and radon In an older home, lead and radon could be a dangerous issue. "More than 20 million housing units have a lead-based paint hazard. And more than 6.8 million homes have radon exposures above the level at which remedial action should be taken, as determined by the EPA," said the Washington Post. There's an easy test to check for lead paint and radon - important since both can cause illness or even death. Mold One of the most dangerous substances you can be subjected to in your home is mold. Often, mold is unseen because it's behind walls. Checking for the nasty black stuff that you can see with the naked eye and then doing a leak check are the first steps toward eradication. "Unseen leaks may be causing mold growth in your home, which can be problematic for people prone to asthma and allergy induced breathing problems," said Huffington Post. "Check pipes, closets, basements, and attics to ensure all is dry. If you find any leaky areas, clean and dry where the water has accumulated, and contact a plumber or roofer to fix the situation." The air conditioner can also be a culprit. "When air-conditioning cools your home, for example, it often leaves traces of water in the ducts that become the perfect breeding ground for mold and bacteria," they said. "That microbial growth is often the cause of respiratory issues—asthma, allergies, coughing, and headaches. But it should also be said that not all air ducts become contaminated, and not all people become symptomatic from those that do." Having air ducts cleaned out by a professional every few years can help, and will also keep your machine running better.
Source: Realty Times, Jaymi Naciri, February 2016