Why You Should Not For Sale By Owner

In today’s market, as home prices rise and a lack of inventory continues, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for most sellers.
Here are the top five reasons:

1. Exposure to Prospective Buyers

According to NAR’s 2018 Profile of Home Buyers and Sellers, 95% of buyers searched online for a home last year. That is in comparison to only 13% of buyers looking at print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home, do you?

2. Results Come from the Internet

Where did buyers find the homes they actually purchased?

• 50% on the Internet
• 28% from a real estate agent
• 7% from a yard sign
• 1% from newspapers

The days of selling your house by putting out a lawn sign or putting an ad in the paper are long gone. Having a strong Internet strategy is crucial.

3. 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 interests 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

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 7% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they can save on the real estate commission by selling on their own, but they don’t realize that the main reason buyers look at FSBOs is because they also believe that they can save on the real estate agent’s commission. The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is that,

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.
Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

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.

May your EVERY day in the New Year be filled with great health, happiness, and prosperity. Wishing you the BEST year ever! We look forward to continuing to serve all of your Real Estate needs in 2019!

timgrissett.com

Where is the Housing Market Headed in 2019?

Kitchen Remodeling and Decorating Trends for Homeowners

“Kitchens sell homes.” Realtors® like to say that…because most of the time the kitchen can win or repel a potential buyer in the first few minutes. A kitchen remodel is a great way to improve the value of your home.

The kitchen is typically the most expensive room to update, and when the kitchen is updated, it’s a big benefit. If you’re thinking about selling in the near future, you’ll want to do some updating to have the best advantage in your local real estate market, and you’ll want to get the highest return on your investment.

Are you considering a kitchen remodel but want to keep costs low? Here are some of today’s kitchen remodeling and decorating trends for homeowners that emphasize options and high-tech features at affordable prices.

 

 

Kitchen Trends for 2019

The way that we live in our homes has changed over the decades. Homeowners have moved from formal living rooms to open floor plans. Great rooms that open to the kitchen have increased in popularity since the 90’s, demonstrating the desire for more gathering and connecting in our living spaces.

Many designers are predicting that separate kitchens, as we have always known them, will disappear with even more “open-concept” designs.

The need for dedicated rooms has switched from living spaces to rooms with specialized purposes, like a home office, craft room, exercise room, home theater, and even a dedicated music room.

Trend #1: Remodeling has Scaled Back

A new focus on moderation and value has entered the remodeling mind-set. You can often make smaller improvements that don’t break the bank, but have an impact on the style and beauty of your kitchen. The trend for smaller, but smarter homes also continues, including the kitchen. Trends that are showing up in kitchens lately include:

• Small-scale kitchen projects are big news. Changing out cabinet hardware, replacing a faucet, and refacing your cabinets can update your kitchen without a major expense.
• Scaling back cabinetry purchases, with an increased emphasis on kitchen storage and functionality over elaborate decoration. For example, rather than stacked crown moldings throughout the kitchen, more homeowners are putting their money into practical roll-out trays and drawer organizers.
• Using existing items instead of replacing them. As appliances have gotten more extravagant, more homeowners are extending the life of their appliances with good maintenance and care. When replacing cabinets, they’re more likely to build around current appliances rather than choosing new models.

Trend #2: Technology expands its kitchen presence

Many of the techno products and trends that relate to your smartphones and tablets are not only making their way into your local showrooms and home centers, they are an everyday occurrence in homes we show.

Photo by Christine Suzuki, ASID, LEED AP – Search kitchen pictures

• Appliances are equipped with USB ports and digital screens so you can display your family photographs and kids’ artwork.
• Smart, induction built-in cooktops($500-$3,000) remember your temperature settings as you move your pans across their entire surface.
• One light finger touch is all it takes to open the electronically controlled sliding doors of your kitchen cabinets — a boon to people with limited mobility. You’ll pay 40% to 70% more for cabinets with electronically controlled doors than standard models.
• Use your smart phones and tabletsto control lights and appliance settings from anywhere you have a wi-fi connection. Shop for appliances from major manufacturers right from your device.
• Internet Technology in the Kitchen is increasing, with Wi-Fi enabled appliances and app controlled items. Look for even more home-centered technologies in the next few years, as the “internet of things” increases, and more and more new tech products receive crowd-funding.
• Voice activated controls are becoming more available with internet connected appliances.
• Many are opting for LEDs for recessed lights, under-cabinet task lighting and color-changing accent lighting. We see more LED-powered pendants and chandeliers from major manufacturers as inefficient incandescent bulbs continue their march toward extinction.
• A wide selection of affordable microwave ovens with convection and even steam features gives owners of smaller kitchen spaces more high-end cooking ability.

Trend#3: Variety in Kitchen Appliances

• Appliance Trends. Stainless steel appliances have been popular for more than 2 decades, longer than most kitchen design trends. Although stainless-steel appliances are still popular, various other metals with toned down finishes are becoming popular. We’ve seen brushed nickle, pewter, copper, polished chrome and oil rubbed bronze.
• French door refrigerators, and bottom freezer drawers are still most popular.
• Expensive professional-style appliances such as free-standing stainless steel gas ranges, the trend for years, are losing popularity. They are being replaced by sleek induction cook topspaired with double wall ovens.
• Under-counter options are a growing trend, with drawers that double as refrigerators, wine storage or a pull out microwave. The placement of these appliances works better for many people.

Trend #4: Simpler, warmer cabinet styles are popular

Fussiness and excess have faded away in favor of pared-back looks that present a more timeless, flexible style.

• • As more homes today have some form of open floor plan, kitchens are outfitted to flow with the other living areas nearby. The decor is complimentary, whether it is the small items like oven mitts and tea towels, or the lighting fixtures, backsplash or cabinets and cabinet pulls.

Photo by Bartelt. The Remodeling Resource – More kitchen photos

• Along with the integration of our kitchens into the rest of the decor, people are opting for a blend of refined and rustic elements. The relaxed appeal of “Farmhouse” design is updated and modernized in today’s kitchens. It’s common to see warm, wooden ceiling beams with industrial light fixtures and sleek modern quartz or granite countertops.
•  The trend toward dark painted islands also seems to be sticking. Combining lighter uppers and darker lower cabinets became the rage last year.
• Kitchen wood finishes have gotten warmer and darker, and feature natural and stained woods. Walnut especially is growing in popularity.
• The trend toward dark painted islands also seems to be sticking. Combining lighter uppers and darker lower cabinets became the rage last year.
• Kitchen wood finishes have gotten warmer and darker, and feature natural and stained woods. Walnut especially is growing in popularity.
• Cabinet color choices include painted, stained and matte finishes, with muted earth tones and pastels as popular choices. When cabinets are on display from the other living spaces, color choices open up from the usual wood finishes, although still popular and with more choices than ever, to colors that are in keeping with the whole design. So it’s not surprising that darker cabinets are becoming popular. Mixing uppers and lowers is also a trend.With quality paints, updating your cabinets by painting them is a viable option. What colors to choose? Here’s some great advice from our expert Debbie Gartner: Best Paint Choices for Kitchen Cabinets

Trend #5: Function Trumps Appearance

• Function wins in today’s kitchens, but that doesn’t mean it has to look inferior.
  
  haker-style cabinets and drawers with simplicity in mind are popular. They are also practical, as they complement many styles and the maintenance and cleaning is easier.
• Open shelving is more popular, with fewer cabinets and easy access to items. This can be a great way to add style and color to your kitchen with decorative, yet functional items, like colorful dishes, pitchers of flowers, or plants.
• White kitchens are still timeless and classic. You can never go wrong with a white kitchen.
• Open shelving is more popular, with fewer cabinets and easy access to items. This can be a great way to add style and color to your kitchen with decorative, yet functional items, like colorful dishes, pitchers of flowers, or plants.
• White kitchens are still timeless and classic. You can never go wrong with a white kitchen.
• Cabinet decoration continues to streamline. For example, massive corbels, once fashionable as undercounter supports, are giving way to sleeker countertop supports and cantelivered countertop edges. Stacked moldings have pared back or disappeared entirely. Elaborately glazed finishes have yielded to simpler paints and stains. Bottom cabinets or islands are often a different color that upper cabinets, but in a toned down matte finish.
• Streamlined Looks. Minimalist and uncluttered. Cabinetry is following the “less-is-more” trend with clean lines and simple moldings and finishes, which are easier to maintain as well.
  
  
• Flat-panel and Shaker doors are popular. People are also mixing it up with horizontal cabinets. Hiding appliances behind cabinet doors is a continuing trend, in keeping with the minimalist trend.
  
  

  Trend #6: Eco-Friendly Kitchens

• • Eco-Friendly Design. Glass walls, French and sliding doors, and large windows are desirable in today’s kitchens, to bring the outdoors in. Patios, decks and “outdoor rooms” are ideally suited directly off the kitchen. Reclaimed wood is hot, and bamboo is growing in popularity for more than just floors. Bamboo countertops are showing up in kitchens.
  • Repurpose and Upcycle works just as well in the kitchen as the rest of the house. The big trend is the industrial look. Using industrial light fixtures works well in the kitchen. Repurposing large industrial pieces like shelves or cabinets for use in a kitchen is also very trendy.
  • Repurposed Wood makes a wonderful kitchen island:
  
  

  Trend #7: Today’s Kitchen Design is Full of Choices

• • Lighting is another aspect of kitchen design that has changed over the last few years. There is no longer a sense of “right and wrong” lighting. As our kitchens are on display from several living areas, people are choosing light fixtures that are not traditional kitchen choices. Whatever you choose, just make sure that you have adequate lighting for three types of needs: overall lighting, task lighting and accent lighting. As with appliances and cabinets, there are a plethora of colors and metallics to choose from in the coming years.
  • Natural flooring materials such as ceramic, stone, hardwood and cork are favorites, along with reclaimed and distressed wood finishes in wider, hand scraped planks.
  • Backsplashes of glossy ceramic, porcelain or glass tile in either subtle or bold color combinations – or a combination of both are in demand. Again, kitchens are increasingly “on display”, so more thought is put into the design of each aspect. Geometric designs became very popular last year. Here are some great tips on creating a backsplash that will make your kitchen a show stopper: 20 Neutral Backsplash Tiles for Kitchens, by Debbie Gartner.

• Kitchen Wall Color Trends. Modern kitchens are open to the living spaces of the home, and have a need to blend in with the rest of the decor. Kitchen colors are moving away from stark whites and more toward creamy neutrals, with pops of color. Nature is a strong influence on color choices today, with greens, blues and browns popular. Gray is still the hottest neutral, and is showing up in kitchen cabinets.
• Kitchen Sinks are no longer one of two choices, stainless or white. Colors are coming back into style in today’s sinks. Colors that will blend with the rest of the decor are being considered. The latest kitchen decorating and remodeling trends for homeowners include a variety of color-friendly choices.
• Farmhouse sinks have become super popular. Many find it more convenient to fit any oversized pots or dishes in a large sink. If you like a metallic sink, a copper farmhouse sink is all the rage!

Trend #8: Task Specialization

• Task specialization is a growing consideration in kitchen design, with thought to smarter, if smaller spaces. Pot fillers, built-in cutting boards, coffee and drink stations, appliance “garage” storage spaces, pull-out drawers instead of traditional cabinet doors, warming drawers, and specialized home management spaces are examples.
• Many kitchens today have more than one sink, with an extra sink for specialized tasks, like cleaning vegetables or fruit.
• Another popular specialized task is a pot filler at the stove. If you are a pasta lover, there’s nothing more convenient than filling the pot right on the stove. It cuts down significantly on the heavy lifting from the sink to the burner.

• 
  
  

  Trend #9: Universal Design

• Aging in place has been important to boomers. We’re also seeing many more families living in multiple generation households. Design trends include fixtures and features that are ideal for aging in place, like touch-activated and pull-out faucets, widened door and hallways, multi-level cabinets and non-slip flooring.
• While many homeowners are planning to stay in their homes longer, they are thinking about selecting a style they like today, and will still like in the future. Classic looks are in.

Classic Kitchen Looks that Last

• White kitchen cabinets are timeless and stay popular every year. The great thing about white is the ability to create style and color combinations in the less expensive items in the kitchen, decor, walls and furniture.
• Subway tiles never seem to go out of style.
• Natural stone floors and counters, whether granite, quartz, stone or marble, they continue to be a top choice for homeowners.
• Wood floors, or engineered wood floors are especially beloved in today’s open floor plans.
• Kitchen islands add real “livable” functionality to a kitchen, which is the center of the home.

Nothing warms me more than your referrals!

Multi-generational Homes

The most common multi-generational household arrangement consists of three generations. Grandparents, parents and children would be an example of a three-generational home. Typically they would want two master suites and then a mix of private and public rooms to meet their needs. A multi-generational home is designed to meet the needs of multi-generational families. Multi-generational families have unique requirements for public and private space within a home.

What Makes a House a Home For You?

We frequently talk about why it makes sense to buy a home financially, but more often than not the emotional reasons are the more powerful or compelling ones.
No matter what shape or size your living space is, the concept and feeling of a home can mean different things to different people. Whether it’s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones.

1. Owning your home offers stability to start and raise a family

From the best neighborhoods to the best school districts, even those without children at the time of purchase may have this in the back of their minds as a major reason for choosing the location of the home that they purchase.

2. There’s no place like home

Owning your own home offers you not only safety and security, but also a comfortable place that allows you to relax after a long day!

3. You have more space for you and your family

Whether your family is expanding, an older family member is moving in, or you need to have a large backyard for your pets, you can take all this into consideration when buying your dream home!

4. You have control over renovations, updates, and style

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Or maybe you want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t do all of these things in your own home?

Bottom Line

Whether you are a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that make a house a home.

Merry Christmas! May all your days be merry.

With less competition (low inventory) and prices rising, the winter months are a great time to list your home for sale.

Which of these tubs would you most want to soak in? Mountain view, forest view, ocean view or city view?

4 Quick Reasons NOT to Fear a Housing Crash

There is a lot of uncertainty regarding the real estate market heading into 2019. That uncertainty has raised concerns that we may be headed toward another housing crash like the one we experienced a decade ago.
Here are four reasons why today’s market is much different:

1. There are fewer foreclosures now than there were in 2006

A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic pre-crash numbers – much fewer foreclosures than we ended 2006 with.

2. Most homeowners have tremendous equity in their homes

Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes were worth less than their mortgage amounts. Many just walked away from their houses which led to even more foreclosures entering the market. Today is different. Over forty-eight percent of homeowners have at least 50% equity in their homes and they are not extracting their equity at the same rates they did in 2006.

3. Lending standards are much tougher

One of the causes of the crash ten years ago was that lending standards were almost non-existent. NINJA loans (no income, no job, and no assets) no longer exist. ARMs (adjustable rate mortgages) still exist but only as a fraction of the number from a decade ago. Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.

4. Affordability is better now than in 2006

Though it is difficult to afford a home for many Americans, data shows that it is more affordable to purchase a home now than it was from 1985 to 2000. And, it requires much less of a percentage of your income today than it did in 2006.

Bottom Line

The housing industry is facing some rough waters heading into 2019. However, the graphs above show that the market is much healthier than it was prior to the crash ten years ago.

More Comfortable, Convenient and Secure

Smart home technology promises to make your home more comfortable, convenient and secure.  It may not be the home from the Jetson's but artificial intelligence is the hope to make it the home of the future which is available now and controlled from anywhere you have an Internet connection.

When Alexa appeared at Christmas-time two years ago, most people thought it was a novelty to ask what the weather will be or to play a song.  Few people understood the vision of Amazon would be verbally purchasing everything imaginable and that your calendar, contacts, lights, and appliances would all be connected.

There are plenty of players in the market including Amazon Alexa, Google Assistant, Samsung Smart Things, Apple and others.  It starts with a hub that acts like a brain for your system to connect the different home automation devices.  You'll establish an online account with the hub manufacturer so that you can adjust settings and controls.
You could start simple with switch and plug receptacles that would allow you to control lights either vocally through your hub or from your Smartphone or tablet anywhere in the world where you have an Internet connection.

Programmable thermostats can lower your monthly utility costs while conveniently regulating your comfort by adjusting temperatures on your heating and cooling systems.  These can be particularly effective in homes with zoned systems where you might live in one area during the day but sleep in a different zone.

Door bells might be one of the next additions to your automation.  Not only can you communicate with the person at your door, you don't have to go to the door to do it.  The device cameras are motion activated so you'll see who is there regardless of whether they rang the doorbell or not.

Door locks can be convenient because instead of giving someone a key, you can issue a temporary code to let them enter.  You can give them permanent access and rescind it any time you want without having to change the locks.  You'll know when they enter and leave your home.

Other security options can include door and window sensors, motion detectors and cameras for outside or inside the home.  The homeowner will be able to monitor from inside or anywhere else they have an Internet connection.

Smoke and carbon monoxide detectors, as well as water sensors to determine leaking water around water heaters or in basements give homeowners peace of mind.

Most of these devices are available in wireless models so you won't have to string wire throughout the home.  The Wi-Fi can introduce a potential problem of hackers who could illegally access your system.  This is true with any home that has a Wi-Fi router and precautions should be taken.

The big box stores like Lowes, Home Depot, and Amazon offer a wide variety of brands and modules.  Many people prefer it as a do-it-yourself project and others would rather have a professional do it for them.  YouTube has a lot of videos that can probably show you exactly how to install the ones you select.

There are houses selling every single day because they are listed at the right price, have the right marketing plan, and are staged for the sale. If for some reason your home didn’t sell and you’re still motivated to get it sold, contact me TODAY so together we can figure out the reason your house isn’t selling! timgrissett.com

Why Houses DO NOT Sell in a Strong Market

As we approach the end of the year, many homeowners find themselves asking the question, “If we’re currently in a strong real estate market, why won’t my house sell?”

Below are the 5 most common reasons why a listing contract will expire:

1. The Price

Sometimes when the market is hot, homeowners attempt to set their listing price higher. Their hope is that a motivated buyer will be willing to pay any price for a house in their desired neighborhood! Sellers must remember, though, that in today’s market a house must be sold twice; first to the buyer and then to their bank.
A buyer can agree to pay the homeowner’s asking price, but after the bank conducts their appraisal, the price might need to be adjusted. The bank will only give the buyer a mortgage for the value of determined in the appraisal.
Sellers must also keep in mind that today’s homebuyers are well-educated. Before they look to buy a house, they have already seen many houses online. They’ve done their research on the neighborhoods they are interested in, including information on the school districts in the area.
They will know if your house seems overpriced and will not waste their time considering it. This is why it’s so important to make sure that your home is priced right from day one on the market!

2. The Condition of the House

In many areas, builders are taking advantage of the lack of inventory of homes for sale by building new houses. These newly constructed homes create competition for existing homes in the market. For this reason, many homeowners are making renovations and updates to their homes to compete with the new construction in their marketplace.
Most agents recommend that homeowners declutter their houses before putting them on the market. Buyers want to be able to imagine themselves living in the home instead of focusing on the current homeowner’s decor.
It’s important to take care of the small problems like dripping faucets and torn screens, while also remembering to remove any posters hanging in your teenager’s bedroom. Making sure your home is in perfect condition will make buyers fall in love with it and will ultimately help you get the right price for your house!

3. Seller’s Motivation

Why did the seller put their house on the market in the first place? Is the seller’s motivation still the same as it was when they first listed?
If homeowners are really motivated to sell, they will make sure their houses are both priced right and in good condition. The seller’s motivation will push them to consider all offers and help them make the right decision for their family’s future.

4. Marketing Plan

Having a marketing plan is important! According to NAR’s 2018 Profile of Home Buyers and Sellers, 95% of buyers searched online for a home last year. The days of looking for a newspaper ad or yard sign in your preferred neighborhood are over.
If you want to sell your home, you need a real estate professional who understands your local market and knows how to promote your home online. Something as simple as using pictures taken by a professional photographer can make a huge impact in advertising your home!

5. Lack of Communication with Your Agent

Keeping an open line of communication with your agent is crucial in getting your home sold with the least amount of hassles, in the right amount of time, and for the right price! From the beginning, establish a continuous line of communication with your agent, and make sure you review your agreement often to see if any changes need to be made. For example, adjusting the selling price!

Bottom Line

There are houses selling every single day because they are listed at the right price, have the right marketing plan, and are staged for the sale. If for some reason your home didn’t sell and you’re still motivated to get it sold, contact a local real estate professional who can help you figure out the reason your house isn’t selling!