Hi Friends,
Many often wonder when is the ideal time to purchase a new home. While pondering this thought, most miss out on those ideal moments to make their move!
Here are a few insights from 5 Reasons to Buy A Home Now, that may help you understand if this is the right time for you to get in to the real estate market.
"Based on prices, mortgage rates and soaring rents, there may have
never been a better time in real estate history to purchase a home than
right now. Here are five major reasons purchasers should consider
buying.
1. Competition is about to Increase
Every spring a surge of prospective purchasers enter the housing market. Like you, they will want the best home available in the best location at the best price.
They will be competing with you for the ‘steals’ in the market. Don’t
miss the opportunity to get that ‘once-in-a-lifetime’ buy available
today that no longer be available as the market heats up..
2. Price Increases Are on the Horizon
Nationally, home prices are projected to appreciate
by 4.5% in 2014 and by over 19% from now until 2018. First home buyers
will probably pay more both in price and interest rate if they wait
until the spring. Even if you are a move-up buyer, it will wind-up
costing you more in net dollars as the home you will buy will appreciate
at approximately the same rate as the house you are in now.
3. Owning a Home Helps Create Family Wealth
Whether you rent or you own the home you are living in, you are
paying a mortgage. Either you are paying your mortgage or your
landlord’s. The Federal Reserve, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.
4. Interest Rates Are Projected to Rise
The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected
that the 30-year mortgage interest rate will be over 5% by the spring
of 2015. That is an increase of almost 3/4 of a point over current
rates.
5. Buy Low, Sell High
Most would all agree that, when investing, we want to buy at the
lowest price possible and hope to sell at the highest price. Housing can
create family wealth as long as we follow this simple principle. Today,
real estate is selling ‘low’ compared to where it will be next year.
It’s time to buy."
As always - if you have any questions, I'm here to assist!
~Amy
Hi Friends,
In our current market, Sellers are often looking for that "magic pill"
that will get their home sold in the blink of an eye. Unfortunately,
this option isn't available.
However, what is available is knowledge & insight from your Real
Estate Professional on how to best set Sellers up for success. The
biggest piece coming from knowing how to price your home well to attract
serious buyers.
Take a look at this article I found today - it shares some great information on the strengths of pricing your home well.
" Location may have the most effect on value but Price is without
question the most important factor controlling the sale of real estate.
Anything will sell anytime, how long will it take depends on the price.
Think about it this way – you may really want to buy a car for your
collection and your favorite happens to be a 1963 Corvette. So you hear
about one for sale, in mint condition, across town but the only problem
is the price, the owner is asking $150,000! Well, although you really,
really want a mint condition 1963 Corvette, there is no way you will
pay anywhere close to $150,000, in fact you know that the most a 1963
Corvette has ever sold for is about $200,000 and that was for a very
rare model, which this one is not.
Because you are a bit obsessed with owning one of these cars you
spend almost all of your free time, and some of the time you should be
working, searching the internet for available cars. Through this
exhaustive search you have become somewhat of an expert on the values of
1963 Corvettes, especially in your town. You happen to know that the
particular model for sale across town is worth about $95,000…maybe
$100,000. In fact, if the asking price was $100,000 or even $110,000
you would’ve driven over there today with your checkbook and driven home
in a 1963 Corvette!
So why don’t you go make an offer? Well, let’s face
it when you see a price that is so high compared to the actual value it
makes you think that the seller is either difficult to deal with and is
out of touch with reality or that he must not really want to sell the
car, instead he is just fishing for the one fool in the world that will
pay $150,000 for a car that is worth $95,000. So you don’t even go look
at it or call for more information…you just keep searching the various
websites to find the car of your dreams.
Yes, you guessed it the Corvette in this example actually represents
your home or other real estate you might be trying to sell. (in fact it
represents any item that can be bought and sold).
Wiggle room = Bad idea
Most sellers think that it is necessary to “leave a little wiggle
room” in the price. They think this because they think that all buyers
will make aggressively low offers…no matter what the asking price.
WRONG!!
Buyers pay the fair market value …in other words they will pay you
what it is worth! Your job is to find out what it is worth and price it
at or near that value.
This is where brokers and/or appraisers come into the picture. The
right way to price your property is to have a professional
REALTOR/broker or appraiser prepare a CMA (Comparative Market Analysis)
on your property. A CMA involves finding recent sales of similar
properties, adjusting for any differences, to arrive at a current market
value of your property. Once you have this value you should have your
broker set the asking price no more than 3% to 5% higher than that
current market value.
If you do this, your property will sell quickly for a price equal to
exactly what it is worth, or higher! Buyers as a general rule DO NOT
make “low-ball” offers, there are some rare occasions when that happens
but the vast majority of initial offers are 5% or less below asking
price.
If sellers price their property correctly the buyers will know it
immediately because, just like in the Corvette example, buyers spend
every spare moment searching the internet for a home, they have made
themselves experts on the market value of the particular type of home in
the particular area they desire. For this reason the buyer also knows
when a property is overpriced. Most buyers will not even go look at a
property that is overpriced, they say to themselves “why bother?” they
assume that the seller is unreasonable and/or is not truly interested in
selling the property.
Yesterday, the Buyer’s Specialist that works for my team and I were
showing a house to some buyers who were very motivated had already
decided on the neighborhood. The house was well within their price
range and met every one of their criteria. As we stood in the kitchen
discussing what price we should offer we found ourselves drawn to the
fact that the house had been on and off of the market for the last four
years!
The conversation immediately turned to “what is wrong with this
house?” It turns out that the house hasn’t sold because it was
severely overpriced most of that 4 years, it happens to be well priced
now but the stigma it carries because of the lengthy time on the market
will likely result in it selling for less than it is really worth.
Moral of this whole story is - buyers will pay what it is worth -
Seller’s job is to find out what it is worth and set the asking price
3%-5% higher than that number…then sit and wait for the offers to roll
in"
As always, I'm here if you have any questions!
~Amy
Hi Friends!
I recently came across the article below in my reading - and thought it was worthwhile to share with you!
"Whether you are buying or selling a home, you need an experienced
Real Estate Professional to lead you toward your ultimate goal. In this
world of instant gratification and Internet searches, many sellers think
that they can For Sale by Owner or FSBO.
The 5 Reasons You NEED a Real Estate Professional in your corner
haven’t changed, but rather have been strengthened in recent months with
the Federal Government continuing to taper bond purchases and the impact that decision has had on mortgage rates.
1. What do you do with all this paperwork?
Each state has different regulations regarding the contracts required
for a successful sale, and these regulations are constantly changing. A
true Real Estate Professional is an expert in their market and can
guide you through the stacks of paperwork necessary to make your dream a
reality.
2. Ok, so you found your dream house, now what?
According to the Orlando Regional REALTOR Association,
there are over 230 possible actions that need to take place during
every successful real estate transaction. Don’t you want someone who has
been there before, who knows what these actions are to make sure that
you acquire your dream?
3. Are you a good negotiator?
So maybe you’re not convinced that you need an agent to sell your
home. However, after looking at the list of parties that you need to be
prepared to negotiate with, you’ll realize the value in selecting a Real
Estate Professional. From the buyer (who wants the best deal possible),
to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.
4. What is the home you’re buying/selling really worth?
Not only is it important for your home to be priced correctly from
the start, to attract the right buyers and shorten the time that it’s on
the market, but you also need someone who is not emotionally connected
to your home, to give you the truth as to your home’s value.
According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”
Get the most out of your transaction by hiring a professional.
5. Do you know what’s really going on in the market?
There is so much information out there on the news and the Internet
about home sales, prices, mortgage rates; how do you know what’s going
on specifically in your area? Who do you turn to, to tell you how to
competitively price your home correctly at the beginning of the selling
process? How do you know what to offer on your dream home without paying
too much, or offending the seller with a low-ball offer?
“When getting help with money, whether it’s insurance, real estate
or investments, you should always look for someone with the heart of a
teacher, not the heart of a salesman.” – Dave Ramsey
Hiring an agent who has their finger on the pulse of the market will
make your buying/selling experience an educated one. You need someone
who is going to tell you the truth, not just what they think you want to
hear.
Bottom Line:
You wouldn’t hike up Kilimanjaro without a Sherpa, or replace the
engine in your car without a trusted mechanic, why would you make one of
your most important financial decisions of your life without hiring a
Real Estate Professional?"
In most cases - you just can't replace experience & professionalism!
Let me know if you have any questions!
~ Amy
