A+ Reasons to Hire a Real Estate Pro

Some Highlights:

• Hiring a real estate professional to help you buy your dream home or sell your current house is one of the most ‘educated’ decisions you can make!
• A real estate professional has the experience needed to help you through the entire process.
• Make sure that you hire someone who knows current market conditions and can simply and effectively explain them to you and your family!

Why are Existing Home Sales Down?

The latest Existing Home Sales Report issued by the National Association of Realtors (NAR) revealed that home sales have decreased for four consecutive months and are at their slowest pace in over two years. This has some industry leaders puzzled considering the fact that the economy is strengthening, unemployment is down, and wages are beginning to rise. This begs the question: “Where are the buyers?”
Actually, agents in the field of most communities are still seeing strong desire from prospective purchasers. They have a list of potential buyers ready to go if the right houses come on the market and they claim it is not a shortage of demand, but is instead a shortage of inventory that is causing the market to soften.

Why is there a shortage of inventory?

You only need to look at the graph below to understand:



New construction sales over the last ten years are far below historic numbers from 1995-2002.
A recent industry report looked at building permits and concluded:

“If construction over the past decade matched historic norms, accounting for population change, the country would have had 2.3 million more single-family home permits.”

That decade of not building enough homes is the primary reason for the concerns about today’s market.

Wait, weren’t we talking about ‘existing’ home sales?

Some may argue that NAR’s sales report deals with existing home sales and not new construction, and they would be correct. However, reports have shown that one of the main reasons why existing homeowners are not selling is because they can’t find homes that meet the needs of their current lifestyles. Historically, the upgrades in a newly constructed home were the answers to those needs.
Over the last decade, however, there were fewer homes built to satisfy this move-up seller. Consequently, there are many homeowners who stayed in their homes for a longer tenure, instead of putting their homes up for sale.

Bottom Line

As more new homes are being built, there will be more housing inventory to satisfy current demand which will cause prices to moderate and sales volumes to increase.

CREATING CURB APPEAL

Creating #curbappeal more homeowners are turning to low-maintenance plants to enhance their front yards, along with native plants and those that attract birds.

Survey: Owners Say HOAs Protect Home Values

Many Americans recently surveyed say they prefer to live in a neighborhood with a homeowners association. Ninety percent of survey respondents say their association’s rules protect their investment and enhance their property values, according to the survey.

timgrissett.com

OUTDATED & UNWANTED

What State Gives You the Most 'Bang for Your Buck'?

Some Highlights:

• The majority of states in the Midwest and South offer a lower cost of living than states in the Northeast and West.
• The ‘biggest bang for your buck’ comes in Mississippi where, compared to the national average, you can actually purchase $115.74 worth of goods for $100.
• For more information regarding the methodology used to create this map, visit the Tax Foundation.

It's an honor to help wonderful people navigate our local real estate market!

What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?

Last week, in a new report from Zillow, it was revealed that there has been a rash of price reductions across the country. According to the report:

• There are more price cuts now than a year ago in over two-thirds of the nation’s largest metros
• About 14% of all listings had a price cut in June
• Since the beginning of the year, the share of listings with a price cut increased 1.2%
• This is the greatest January-to-June increase ever reported, and more than double the January-to-June increase last year

Senior Economist Aaron Terrazas further explained:

“A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsized price gains in recent years.”

What this DOESN’T MEAN for the real estate market…

This doesn’t mean home values have depreciated or are about to depreciate.
A seller may put a home worth $300,000 on the market for $325,000 hoping a bidding war will occur and an overanxious buyer will pay more than its actual value. That has happened often over the last few years. If the seller gets no offers and reduces the price to $300,000, it doesn’t mean the home dropped in value. It is still worth $300,000.
Home prices will continue to appreciate over the next 12 months. In this same report, Terrazas remarks:

“It’s far too soon to call this a buyer’s market, home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”

What this DOES MEAN for the real estate market…

This does mean that sellers should be more conservative when it comes to the price at which they list their homes – especially sellers in the upper end of each market.
Sellers have been listing their homes at inflated prices hoping a super-hot market will deliver a buyer willing to pay virtually any price to ensure they don’t lose the house. That strategy has worked somewhat successfully over the last two years. However, the time that strategy would have worked may have passed.
Again, quoting Aaron Terrazas in the report:

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly.”

Bottom Line

Prices are not depreciating. However, if you want to sell your house quickly and with the least amount of hassles, pricing it correctly from the beginning makes the most sense.

Overlooked Questions to Ask When Buying a Home. Thank me later!

Just a few benefits of homeownership!

Real Estate Tip of the Day

Do-it-yourself disasters can happen to anyone. Here's how to avoid them in your next home project

The Cost of Waiting: Interest Rates Edition

Interest rates are projected to increase steadily heading into 2019. The higher your interest rate, the more money you end up paying for your home and the higher your monthly payment will be. Rates are still low right now – don’t wait until they hit 5% to start searching for your dream home!

The Atlanta Mimosa Festival is coming to @AtlanticStation on Sat 9/29 1-5pm. $15+. Live music, bottomless drinks, college football and more! Info: http://ow.ly/YW3530lpVQ9

Homebuyers Willing to Sacrifice 'Must-Haves' in Favor of Good School Districts

It should come as no surprise that buying a home in a good school district is important to homebuyers. According to a report from Realtor.com, 86% of 18-34 year-olds and 84% of those aged 35-54 indicated that their home search areas were defined by school district boundaries.

What is surprising, however, is that 78% of recent homebuyers sacrificed features from their “must-have” lists in order to find homes within their dream school districts.
The top feature sacrificed was a garage at 19%, followed closely by a large backyard, an updated kitchen, the desired number of bedrooms, and an outdoor living area. The full results are shown in the graph below.


Buyers are attracted to schools with high test scores, accelerated academic programs, art and music programs, diversity, and before and after-school programs.
With a limited number of homes available to buy in today’s real estate market, competition is fierce for homes in good school districts. Danielle Hale, Chief Economist for Realtor.com, explained further,

“Most buyers understand that they may not be able to find a home that covers every single item on their wish list, but our survey shows that school districts are an area where many buyers aren’t willing to compromise.
For many buyers and not just buyers with children, ‘location, location, location,’ means ‘schools, schools, schools.’” (emphasis added)

Bottom Line

For buyers across the country, the quality of their children’s (or future children’s) education ranks highest on their must-have lists. Before you start the search for your next home, meet with a local real estate agent who can explain the market conditions in your area.

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The seller sets the price but ultimately, the buyer determines value

Preparing For an Open House

Putting your home on the market can be a stressful season overall. There are many ways to prepare your home’s interior for an open house but don’t forget to also tend to the exterior of your home as well. Check out these tips for preparing your outdoor space for an open house.

Keep It Tidy

This one is kind of a no-brainer when it comes to selling your home but you may be surprised at overlooked things in your yard. Make sure to really step back and look at things in your yard that need to be cleaned up. For example, take care of old brush piles as well as any trash that has blown into the yard. If you have vinyl siding, quickly clean the exterior of your home using a power washer. Clean out gutters and make sure that downspouts are in proper working condition. Clear away any cobwebs that have been created underneath awnings and in corners in order to keep everything as clean looking as possible for the open house.

Keep It Trimmed

Make sure to mow your lawn the day before an open house to keep the lawn looking nice. Pay special attention to the edges of the lawn in order to keep grass clippings in place. Don’t neglect to blow away clippings as well in order to keep the yard in tip-top shape. If you don’t have time to complete these tasks consider hiring a temporary lawn care service while your home is on the market in order to have one less thing on your to-do list.

Fix the Small Things

You probably won’t have a lot of extra time right before an open house to tackle a big outdoor project but there are many things that you can do in order to fix smaller issues. Consider replacing that rusty hinge on the door or adding a new light bulb to the porch light that you have been meaning to do for weeks now. Add some touch-up paint to the door, woodwork, or exterior of your home in areas that are needed most. Take a few minutes to tackle these extra little jobs that are more annoying than time-consuming in order to encourage a big offer from a potential buyer.

Add Some Flowers

There is nothing like a nice pot of beautiful flowers to welcome guests to your home. Consider choosing a few different potted flowers at your local garden center in order to provide an easy splash of color to your outdoor area. Choose flower arrangements that are already potted and ready to go that will require no planting on your end. Place them near the front door and on either side of the back door to help draw potential buyers in with a sense of beauty and care for your home.

Turn On the Lights

If you have exterior lights consider turning them on for an open house in order to welcome guests. Even if your open house is during the day, providing that little touch of extra light can go a long way in brightening a space. Flip on any other outdoor lighting that may be in your private backyard space, like string or rope lights, in order to encourage potential buyers to check out the outdoor living areas of your home.
There are many things that you can do to the exterior of your home prior to an open house. Make sure to keep the lawn trimmed and the yard tidy in order to show buyers that you care for your home. Consider adding colorful flowers near the entrances to your home as well as fix a few of the small things that won’t take up too much time. Finally, flip on those lights to help showcase your home to potential buyers prior to your next open house.

Have You Outgrown Your Starter Home?

For many Americans, buying their first home is their first taste of achieving part of the American Dream. There is a sense of pride that comes along with owning your own home and building your family’s wealth through your monthly mortgage payment.
It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it’s ok to admit that your home no longer fits your needs!

According to CoreLogic’s latest Home Price Index, prices in the starter home market have appreciated faster than any other category over the last year, at 9.4%. At the same time, inventory in this category has dropped 14.2%.



These two stats are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

This is great news if you own a starter home and are looking to move up to a larger home as the equity in your home has risen as prices have gone up. Even better is the fact that there is a large pool of buyers out there searching for your starter home to help them achieve their American Dream!

Bottom Line

If you have outgrown your starter home, contact a local real estate professional who can explain the market conditions in your area and help you find your next home!

The Master's Suite

 

There are many different master bedroom designs and styles. As with any room, think of the ways you envision using the space and start your design from there. For example, do you want a personal retreat, a passionate boudoir, or just simply a quiet place removed from the activity of the rest of the house? Your decision will determine your master bedroom decor. If you want a personal retreat, take your inspiration from luxury hotel suites. Here, every item for a comfortable stay is in one room. Consider having a small writing desk, a television easily viewable from bed, and a mini refrigerator. Do not let these items overwhelm the room, though. Use dark, warm colors to create a feeling of security and help relaxation. Add personal touches, such as family photos or meaningful artwork to make the space truly your own. #design #inspiration #color #decoration 

Mistakes That Keep People From Selling Their Home

If your home is struggling to catch the eye of a buyer, it could be for an entirely valid reason. Maybe you're stuck in a sluggish market or have the poshest place on the block (always a tough sell). But there's another possibility, too—your home could be sitting on the market because of a rookie selling mistake. All of us can make 'em, even those of us who actually have a few home sales under our belts.

The good news? These basic slip-ups can be easily corrected or avoided. To help you out, we spoke to real estate agents to identify some of the most common mistakes people make in trying to sell their home. Sidestep these flubs to avoid sabotaging your own sale.

Rookie mistake No. 1: Overpricing your home

All sellers want to get top dollar for their house. Unfortunately, says Julie McDonough, a real estate agent in Southern California, “many people overestimate the value of their home.” For example, she says, “if a neighbor sells their house for $400,000, you might automatically assume that your house is worth at least that much money, but that’s not necessarily the case.”

“Price is typically the reason why a house doesn’t sell,” says Irvine, CA, real estate agent Benny Kang. And the last thing you want to do is list too high right from the start, because it could cause your house to sit on the market—which might require you to make a serious price reduction in order to sell it.

“If a home is on the market for more than four weeks, prospective buyers are going to assume that there is something wrong with it,” says Kang.

Your best approach: Listen to your agent’s listing price recommendation, and try not to get too emotional if your agent's suggestion isn't as high as you'd hoped.

Rookie mistake No. 2: Not budging on price

Even if the price is right, you might need to be flexible—especially if you’re in a buyer’s market. So, if you receive an offer that’s below list price, you should at least consider making a counteroffer. After all, receiving $5,000 or $10,000 less for your house than what you wanted is a small concession in the long term.

Rookie mistake No. 3: Doing a lousy job of cleaning

Let's make this clear: Your home needs to be spotless. That might mean hiring a professional cleaner to do a deep and thorough cleaning of the entire place. You might want to consider renting a storage locker to make the process of cleaning out the garage, closets, and attic less onerous. But it will likely be worth it, because clutter distract buyers in a big way.

Bonus: A clean house will also enable you to take great photographs for your listing (see our next point).

Rookie mistake No. 4: Using crummy photographs

Unless you’re an artist with the camera, you’ll want to hire a professional photographer to take pictures of the house, because nearly half of home buyers start their search online, a recent survey by the National Association of Realtors® found.

“You can write a beautiful description, but people aren’t initially focusing on the description," says Philadelphia real estate agent Patrick Conway. “They’re looking at the pictures.”

A photographer will cost between $150 and $400—a good investment.

Rookie mistake No. 5: Leaving religious or political belongings in plain sight

“You never know what type of buyer is going to look at your house,” says McDonough, so put away all personal belongings—specifically, religious or political items, which can be awfully polarizing. “You don’t want anything that’s going to distract buyers.”

Rookie mistake No. 6: Lurking around at your own open house

This is a huge mistake for several reasons.

“If the buyer knows that the seller is there, they might feel uncomfortable asking the listing agent honest questions about the home,” says Kang. Buyers might also feel like they’re intruding if you're present, which is kind of crazy.

“People like to open closet doors and look closely at the home without someone hovering over their shoulder,” says Conway.

Rookie mistake No. 7: Making it difficult for agents to show your home

When selling your house, “be prepared for little privacy,” says Kang. Translation: You'll need to be flexible when buyers ask to see your home on short notice. To make it easy for buyer’s agents to show the property while you're away (see No. 6), let your agent install a lockbox with keys to the house, advises Conway.

Rookie mistake No. 8: Leaving pets at home during showings

Some people are simply scared of pets, (yes, even your cute little pug), or they might have allergies that will make them want to steer clear. So don’t just crate your dog or cat during showings; instead, take them with you or drop them off with a neighbor while buyers are viewing the house. And because pets, like humans, tend to accumulate lots of stuff—leashes, collars, toys, water bowls, and the like—make sure you stow their paraphernalia in a cupboard or closet. And do a quick vacuum of pet hair before you go

Celebrating another year!🎂

The Wave of Millennial Homebuyers Continues to Swell

Many have written about the millennial generation and whether or not they, as a whole, believe in homeownership as a part of attaining their American Dream.
Comparatively speaking, millennials have taken longer to obtain traditional milestones (like getting married, having kids and buying a home) than generations before them, but that does not mean that they do not aspire to still achieve those things.

For older millennials (aged 25-34) who have established themselves in their career and are starting to build their families, homeownership is the next logical choice.

According to the Urban Institute’s State of Millennial Housing, the probability of a millennial becoming a homeowner increases by 17.9% if they are married, and by an additional 6.2% if they have children.

Last year, according to the US Census Bureau, the average age at first marriage was 30 for men and 27 for women, while the National Association of Realtors (NAR) reports that the average first-time homebuyer was 32 years old.

With most of this generation having yet to age into the ‘Responsibility Zone’ (the time in their lives when their responsibilities start to dictate their behaviors), there will be a steady wave of buyers for years to come!

Those who are currently out in the market searching for a home are being met with a strong, highly competitive seller’s market. NAR’s Chief Economist Lawrence Yun recently commented,

“Realtors® throughout the country continue to stress that there’s considerable pent-up demand for buying a home among the millennial households in their market.  
Unfortunately, they’re just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains.”

Bottom Line

If you are currently renting and thinking about jumping into the real estate market this year, contact a local real estate professional who can help you navigate your market.

Saving MORE for A Down Payment

HOMEBUYERS: 5 Things Not To Do During the Closing Process

Selling a home?

These 7 Home Buying Mistakes Can Cost You

Thinking of buying a home in the near future? Keep in mind that there are several things that you should do, and a number of others that you shouldn’t. Buying real estate is a huge deal that involves a ton of money and commitment, so you want to make sure you’re making all the right moves.

To help keep you on the right track, be sure to avoid the following costly home buying mistakes.

1. Not Shopping For a Mortgage Before Shopping For a House

This is a common mistake among first-time homebuyers. They tend to get all excited about the prospect of buying and owning a home and forget about the need to get approved for a mortgage first. Many people may have an idea of what they can get approved for based on their income, but lenders look at a lot more than just what you take home with every paycheck.

When you’re ready to buy, it’s very important to get a pre-approval letter from a lender. You may have begun the process of getting approved for a home loan, but you really won’t have a clear indication of exactly how much you can afford to spend and what a lender may be willing to loan you if you don’t get pre-approved first.

Always make a stop at the lender’s office before you start house hunting.

2. Spending More Than You’re Comfortable With

Getting pre-approved for a mortgage is an important step, but don’t let that price limit mesmerize you. Just because you may be able to get approved for a loan of a certain amount doesn’t necessarily mean you should spend all that. The bank may have been diligent about checking your income, assets, debt load, and credit, but they don’t know what type of lifestyle you lead and what your other expenses may be aside from how much you’ll be spending to maintain and operate your home.

Life comes with so many more expenses other than home-related costs. Child care, hobbies, vacations, children’s education, retirement savings, and other expenses are not included in the calculations made by your lender. It’s your responsibility to crunch the numbers and factor in how much you typically spend before buying a home in the upper price range. You don’t want to be so stressed with your mortgage payments that you’ve got nothing left over to pay for anything else. 

3. Making a Small Down Payment

If you want to avoid paying Private Mortgage Insurance (PMI), you’ll need to come up with at least a 20% down payment if you’re applying for a conventional mortgage. This insurance policy is meant to protect your lender – not you – even though you’re paying for it. But it’s obviously pretty difficult to come up with that kind of cash, especially if you’re buying a home in a particularly expensive market.

There are other home loan programs available for those who can’t come up with a lot of money for a down payment. For instance, FHA home loans require as little as 3.5% down, making it easier to get approved for a mortgage to purchase a home with a smaller down payment. But as convenient as these programs may be, many homeowners find themselves regretting not putting much more down.

Sometimes it’s worth waiting a little longer to buy a home to provide you with more time to save up for a larger down payment. The less money you put down, the bigger your loan amount and monthly payments will be.

That said, it’s important to assess the current market and mortgage rates and try to determine where the market and rates will go in the near future. Sometimes waiting too long can leave you paying a much higher interest rate on your mortgage and a lot more for a home. Be sure to consult with your real estate agent about what your best course of action would be in this circumstance.

4. Making Some Big Financial Moves Before Closing on a Home

You’ve been pre-approved for a mortgage, found the house of your dreams, put in an offer and it was accepted. Fantastic! But the house isn’t yours yet. In fact, your lender probably hasn’t finalized the mortgage just yet if closing has not yet occurred. During this time, it’s imperative that you don’t make any major financial decisions, or else it could throw a wrench in the mortgage approval process.

If you decide to take out a loan to buy a car, take out a couple of credit cards, or make any other large expenditure on credit, you could be shooting yourself in the foot. Your lender is working with the financial information you provided before you put in an offer on a home.

Now that you’ve added more debt into the mix, your lender will essentially have to start over, which can delay closing. It can even cause you to get turned down for a mortgage if the lender determines that your new debt makes you ineligible to afford your mortgage payments.

5. Forgoing a Home Inspection Because the House Looks Like it’s in Mint Condition

Just because a house looks like there’s nothing wrong with it doesn’t mean there aren’t any potential issues lurking. Some buyers mistakenly neglect to include a home inspection contingency because the house looks like it’s perfect. They may even forgo this contingency in order to speed up the process. But doing so can prove to be a very costly mistake.

While sellers might love the idea of not having to deal with another contingency and accept your offer as a result, you can end up with a ton of issues on your hands that you never thought you would. Even a new house can have certain things wrong with it, which is why it’s important to have the chance to have a home inspected by a professional before you seal the deal.

6. Ignoring the Neighborhood

Obviously, you want to make sure that the house you inevitably choose is a perfect fit for your lifestyle and your finances. But the structure itself is only a part of the equation. You’ll want to give just as much attention to the neighborhood it’s in before you make a purchasing decision.

The place might be a dream home, but if it’s located in a sub-par community, that will seriously impact how much you’ll end up enjoying your new home. Maybe the schools aren’t that great for your kids, or you’re right under an airplane route that will keep you up at night, or you don’t feel safe walking the streets when the sun sets.

Whatever the case may be, it’s important to uncover all traits of a neighborhood before you decide to invest in one.

7. Not Thinking About Resale Value

It might sound strange to think about selling your future home when you haven’t even bought anything yet but considering resale value is very important. You might have intentions of staying put for years to come, but you just never know when life throws you a curveball that prompts you to make an unexpected move.

Whatever may happen that could put you in a position to move again, you’ll need to make sure that it will be relatively easy to sell the home for a decent price. When it comes to listing your house, how easy or difficult will it be to sell? Always keep resale value in mind when shopping for a new home, even if you plan to stick around for the long haul.

The Bottom Line

Considering the financial significance of a home purchase, it makes sense that you’d want to make each move very carefully and methodically in order to avoid making any potentially costly blunders. Keep the above mistakes in mind and do your best to steer clear of them in order to ensure a successful real estate transaction.