The #1 Reason to List Your House, NOW!

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The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that sales rose 0.7% month-over-month, but remain 1.5% lower than they were a year ago. Some may look at these numbers and think that now is not a good time to sell their house, but in fact, the opposite is true.

The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are out in the market looking for their dream homes! The inventory of homes for sale has fallen year-over-year for the last 28 months and has had an upward impact on home prices.

NAR’s Chief Economist Lawrence Yun had this to say,

“Home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable buyer interest in most parts of the country.

Realtors® this fall continue to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings – especially at the lower end of the market – and fast-rising prices that are straining the budgets of prospective buyers.” (emphasis added)

The houses that are on the market are selling fast, too! According to NAR’s Realtors Confidence Index, the median number of days it took for a house to go from listed to under contract over the past three months was 34.

Bottom Line

If you are one of the many homeowners who is debating listing your house for sale this year, the time is now! Let’s get together to discuss the specifics of our market!

What People Say About Your Home When You’re Not There

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I have heard every one of these comments at one time or another:

If you’re putting your home on market, you’re probably dying to know what home buyers will have to say as they tour your property. While you hope there’ll be nothing but oohs and aahs, that’s not always the case.

Just so you know what potential buyers are really thinking when you’re not there, we asked Realtors® to reveal some of the most noteworthy—and cringeworthy—statements they’ve overheard as potential buyers inspect the goods. Wince, take note, and act accordingly.

‘What’s that smell?’

When Heather Witt Leikin, a real estate adviser at The Partners Trust, was asked about a home’s odor recently during a tour, she had what she thought was a logical answer: The smell was of carpet cleaner, because the owners had just cleaned the rugs for the showings. Sure they looked nice, but the smell was harsh, nasty even—so much so that the buyer said, “I could never live here” and scrammed. Odious odors, by far, top the list of things home buyers comment on. Here are some of their favorite things to say:

  • ‘Did someone die in here?’ “I have shown homes where the smell was so bad that the clients asked, ‘Did someone die in here and their body is in here decomposing?’” says Maryjo Shockley, a Realtor with Keller Williams.
  • Wow, this place smells like a dog, cat, hamster, ferret, etc.’ No, we’re not sure what ferrets smell like either. But do your best to keep pet odors in check by regularly grooming your critters, cleaning litter boxes, and making sure they don’t leave a scent trail of any kind.
  • A smoker lives here—let’s leave’ “If it smells of tobacco smoke, more and more people walk in, take a few whiffs, and then walk right back out,” says Cara Ameer, a Realtor with Coldwell Banker.

It goes without saying that a good cleaning and opening the windows will eliminate most funky smells, but if an odor won’t budge, consider lighting some scented candles. And since even cleaning products can have an off-putting scent, Witt Leiken suggests leaving some time between shampooing those carpets and putting your place on the market.

I don’t know where you’ll keep your clothes, honey’

Here’s a joke frequently heard by Wendy Flynn, a Realtor with Keller Williams in College Station, TX: A couple walks into a closet. One person turns to the other and says, “Well, this closet is great, but I don’t know where you’ll keep your clothes, honey!”

Joke or not (and we’re not entirely sure it is one) , there’s a huge grain of truth here: Every inch of storage space matters. Even if you have to store clothing and accessories elsewhere, it pays to make your closets look as spacious as possible. Remove stuff.

Wow, these people take a lot of meds’

You’ve been warned: “Buyers will open kitchen cupboards, medicine cabinets, and anything else they feel they need to see to make a decision on the home,” says Shockley. And that can come with some snide commentary on your stash of Zoloft, Viagra, or prescription laxatives. So do yourself a favor and hide your medicine some place safe, like inside your nightstand (even the most prying home buyer usually won’t go there).

Adults live here?’

This is one of Shockley’s personal favorites. The questions came as buyers toured a home that featured a Disney theme throughout. As much as you (or your kids) may love your “Frozen” shower curtain and Elsa and Anna salt and pepper shakers, try to stick with neutral decor, says Natalya Price, a home stager and Realtor with Coldwell Banker in Summit, NJ.

The house seems dark and depressing’

Even if your home is pristine, dark or dimly lit rooms are a mood killer, say Realtors. Luckily, this is a flaw that can easily be remedied, even if your home doesn’t get tons of natural light.

For starters, be sure to pull back the curtains, take them down completely, or switch them to a sheer material that lets in light but maintains your privacy. And if you need even more help, flip on every switch or get more lamps. Many buyers won’t care if they’re basking in sunlight or lamplight as long as it’s bright.

It’s awfully loud’

Since homes are supposed to be our place of refuge, noise—from traffic to rowdy neighbors—can be a huge turnoff. So if you live in a noisy area, do what you can to block it out by planting trees and shrubs between your home and the road, or between you and our neighbors’ yards. You can also get soundproof windows, which could be well worth the investment.

If these walls had a fresh coat of paint…’

Betsy Bingle, an associate broker with LintonBingle Associate Brokers, says she often hears buyers say, “If this had a fresh coat of paint it would make it so much nicer!” Talk about a missed opportunity.

“It’s true that a nice bright coat of paint goes a long way,” Bingle says. “It is an inexpensive way to brighten up any space.” And to get top dollar on your home, of course.

Courtesy of REALTOR.com

Liz Alterman is writer who has covered a variety of subjects, from personal finance issues for CNBC.com to career advice for The Muse. Her hobbies include reading, baking, and failed attempts at gardening.

No Matter Which Groundhog You Listen To, You Should Sell Before Spring!

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Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season. Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages. Here are five reasons to sell now. 

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now! Take advantage of the strong buyer activity currently in the market. 

2. There Is Less Competition Now

Housing supply just dropped to 3.9 months, which is well under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last three years. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference). The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next 12 months according to CoreLogic. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by three-quarters of a percent by the end of 2016.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Top Reason to List Your House For Sale Now!

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If you are debating listing your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage: “While feedback from REALTORS® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.” The latest Existing Home Sales Report shows that there is currently a 5.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below November 2014 numbers. The chart below details the year-over-year inventory shortages experienced in 2015.

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Bottom Line

CALL me so that I can show you the supply conditions in Central Florida and assist you in gaining access to the buyers who are ready, willing and able to buy now!

Homeownership Builds Wealth and Offers Stability

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The most recent Housing Pulse Survey released by the National Association of Realtors revealed that the two major reasons Americans prefer owning their own home instead of renting are:

  1. They want the opportunity to build equity.
  2. They want a stable and safe environment.

Building Equity

In a recent article, John Taylor, CEO of the National Community Reinvestment Coalition, explained that those who lack the opportunity to become homeowners have a weakened ability to reinvest their wealth:

“We traditionally have been huge supporters of homeownership. We see it as a way to provide stability for households but also as an asset-building strategy. If you continue to be a renter, locked out of the homeownership arena, increasingly those things are further and further out of reach. They’re joined at the hip. They perpetuate each other.”

Family Stability

Does owning your home really create a more stable environment for your family? A survey of property managers conducted by rent.com last month disclosed two reasons tenants should feel less stable with their housing situation:

  • 68% of property managers predict that rental rates will continue to rise in the next year by an average of 8%.
  • 53% of property managers said that they were more likely to bring in a new tenant at a higher rate than negotiate and renew a lease with a current tenant they already know.

We can see from these survey results that renting will provide anything but a stable environment in the near future.

Bottom Line

Homeowners enjoy a more stable environment and at the same time are  given the opportunity to build their family’s net worth.

Don’t Wait To Buy Your Dream Home!

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As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen over the next 12 months?
According to CoreLogic’s latest Home Price Index, prices are expected to rise by 4.7% by this time next year.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.7% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

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