Cody Schaaf-Realtor-Nebraska Realty- I want to be your Real Estate Guy!
The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a big factor in this change. The average 30-year rate in 2019 as reported by Freddie Mac was 3.94%. We are now closer to 3.5%. The Census Bureau also just reported the highest homeownership rate for people under 35 since 2014. This is evidence that owning their own home is becoming important to Millennials as they reach the age where marriage and children are part of their lives. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is strong. That’s not the case, however, with seller demand, which remains weak. Here’s a breakdown by state: Demand for housing is high, but supply is extremely low. NAR indicates the actual number of homes currently for sale stands at 1.42 million, which is one of the lowest totals in almost three decades. Additionally, the ratio of all existing homes for sale to the number purchased is 3.1 months of inventory. In a normal market, that number would be double that at 6 months of inventory. What does this mean for potential sellers? If you’re thinking of selling, you may not want to wait until spring to put your house on the market. With demand so high and supply so low, now is the perfect time to sell for the greatest dollar value and the least hassle. Bottom Line The real estate market is entering the spring like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.
In today’s fast-paced world where answers are just a Google search away, there are some who may question the benefits of hiring a real estate professional. The truth is that the addition of more information can lead to more confusion. Shows like Property Brothers, Fixer Upper, and dozens more on HGTV have given many a false sense of what it’s like to buy and sell a home. Now more than ever, you need an expert on your side who’s going to guide you toward your dreams and not let anything slip through the cracks. Buying or selling a home is not something you should DIY (Do It Yourself)! Here are just some of the reasons you need a real estate professional in your corner: There Are Quite a Few Steps to Navigate in the Process There are over 230 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you have a positive buying and selling process? You Need a Skilled Negotiator In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the buyer submitting an original offer, to the possible renegotiation of that offer after a home inspection, to the potential cancelation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes. Having a Professional on Your Side Makes All the Difference 11 You Need to Know What the Home You’re Buying or Selling is Worth in Today’s Market There’s so much information in the news and on the Internet about home sales, prices, and mortgage rates; how do you know what’s going on in your local area? Who do you turn to in order to competitively and correctly price your home 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 lowball offer? Dave Ramsey, known as the financial guru, advises: “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.” Hiring a real estate professional who has a finger on the pulse of the market and is eager to help you learn along the way will make your experience an informed and educated one. You need someone who’s going to tell you the truth, not just what they think you want to hear. Bottom Line Today’s real estate market is highly competitive. Having a professional who’s been there before to guide you through the process is a simple step that will give you a huge advantage. Let’s make it happen together.
By now, you’re aware of the benefits of working with a real estate professional. However, rising home prices coupled with the current inventory in today's market may cause some homeowners to consider selling their home on their own (known in the industry as a For Sale By Owner). Believe it or not, a FSBO, as it’s candidly called, might not actually be a good idea for most sellers. Here are the top five reasons not to FSBO:
1. Online Strategy for Prospective Purchasers Studies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! 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?
• 52% on the Internet
• 29% from a Real Estate Agent
• 10% Other
• 6% from a Yard Sign
• 3% from Newspapers
The days of selling your house by putting up a sign in your yard or placing 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’s a list of some of the people with whom you must be prepared to negotiate if you FSBO:
• 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 Why You Shouldn’t “For Sale By Owner”
4. It Has Become Increasingly Difficult to FSBO The paperwork involved in buying or selling a home has increased dramatically as more industry disclosures and regulations have become mandatory. This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
5. You Net More Money When Using an Agent Many homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission. A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money (46% cite this among their top three reasons), but they don’t actually save anything, and eventually end up listing with an agent. The same report revealed that: “While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers—in other words, less than a third…actually sold without an agent.” It appears working with a real estate professional is the best answer. Bottom Line Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.
1. Make Buyers Feel at Home Declutter your house. Pack away personal items like pictures, awards, and sentimental pieces. Make buyers feel like they belong in the house. According to the 2019 Profile of Home Staging by the National Association of Realtors (NAR), “83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.” Not only will your house spend less time on the market, but the same report mentioned that, “One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.”
2. Keep it Organized Since you took the time to declutter, keep it organized. Before buyers arrive, pick up toys, make the bed, and put away clean dishes. According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers. Put out a scented candle or some cookies fresh from the oven. Buyers will remember the smell of your house.
3. Price it Right When the competition in your neighborhood heats up, you’ll want to make sure your house is noticed. A key to selling quickly is ensuring your house is Priced to Sell Immediately (PTSI). This means you’ll be driving more traffic to your property and ultimately creating more interest in your listing.
4. Give Buyers Full Access One of the top four elements when selling your house is access. If your house is available to tour anytime, that creates more opportunities to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one. Bottom Line If you want to sell your house in the least amount of time, at the best price, and with as little hassle as possible, let’s make sure it checks the box on each of these key elements.
When selling your house, there are four key elements to a quality listing. At the top of the list is access, followed by condition, financing, and price. Believe it or not, the level of access you provide can be a critical factor in how quickly you’re able to go under contract. Here are five levels of access you can provide to a buyer. Which one will you choose?
• Lockbox on the Door – This allows buyers the ability to see your house as soon as they’re notified of the listing or at their convenience.
• Providing a Key to the House – Although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show your property.
• Open Access with a Phone Call – The seller provides a showing with just a phone call’s notice.
• By Appointment Only – Example: 48-hour notice. Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential houses. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see your house.
• Limited Access – Example: the house is only available for a couple of hours a day. This is the most difficult way to be able to show your house to potential buyers. Bottom Line In a competitive marketplace, access can make or break your ability to get the price you’re looking for or to even sell your house at all.
I'm sure you have questions and concerns about the real estate process. I'd love to talk with you about what you read here and help you on the path to selling your house. My contact information is below and I look forward to hearing from you.