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Is It Time To Sell Your Second Home?

(Published on - 1/25/2023 6:43:24 AM)

Is It Time To Sell Your Second Home?

Is It Time To Sell Your Second Home? | MyKCM

During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a recent article, Investopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious.

A recent report from the Institute for Luxury Home Marketing (ILHM) explains just how much remote work impacted the demand for second and luxury homes:

“The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”

But what if you bought a second home that you no longer use? If you’re now shifting back into the office or are seeing your priorities and needs change, you may find you’re not utilizing your second home as much. If so, it may be time to sell it.

And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing explains:

“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.

This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.”

If you own a luxury second home that isn’t being used as much anymore, now’s the time to sell. There are still buyers in the market who are looking for a home like yours today.

Bottom Line

Let’s connect to explore the benefits of selling your second home this year.

The U.S. Homeownership Rate Is Growing

(Published on - 8/16/2022 9:36:51 PM)

The U.S. Homeownership Rate Is Growing

The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:

That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.

If you’re thinking about buying a home this year, here are just a few reasons why so many people see the value of homeownership.

Why Are More People Becoming Homeowners?

There are several benefits to owning your home. A significant one, especially when inflation is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”

When you buy a home with a fixed-rate mortgage, you can lock in what's likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.

That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home appreciates in value and you make your monthly mortgage payment.

And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.

Bottom Line

The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today.

What Would a Recession Mean for the Housing Market?

(Published on - 8/16/2022 9:35:21 PM)

What Would a Recession Mean for the Housing Market?

According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?

Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home pricesappreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage ratesdecreased.

Fortune explains that mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.

Bottom Line

There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.

If you’re thinking about buying or selling a home, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

12 MISTAKES TO AVOID WHEN SELLING YOUR HOME

(Published on - 2/28/2022 2:52:58 PM)

12 MISTAKES TO AVOID WHEN SELLING YOUR HOME

These are can’t-miss, seriously don’t do these mistakes that you can easily avoid when selling your home. 12 Mistakes to Avoid When Selling Your Home Selling your home doesn’t have to be full of missteps and mistakes. Learn from these common mistakes and avoid problems from the moment you put up that For Sale sign! Let’s start with four DON’Ts. Here are four things NOT do when you put your home up for sale:

1.DON’T Get Emotional. Maybe you’ve lived in your house for 25 years and raised your kids there. Maybe you’re moving for a reason that’s inherently emotional or difficult. Maybe you just feel the heightened stress of selling a home and let your emotions into the mix. Do your best to put your emotions on the shelf and be as pragmatic as possible about selling your home.
2. DON’T Set an Unrealistic Price. Pricing your home is one of the first, and most important, decisions you’ll make when listing your home for sale. If you get too caught up in the “whatifs,” you may set your sights too high and set an unrealistic price. This will mean your home sits on the market longer and can cost more money in the long-run.
3. DON’T Hide Major Problems. A good home inspector will find out all of the issues with your home anyway. Not being forthcoming about known issues will slow the whole process down. You don’t want to have an offer on the table that doesn’t work out because you’ve failed to disclose something or because inspection uncovered something huge.
4. DON’T Wait Until the Last Minute. There are numerous documents you’ll need to have in hand before you can list and sell your home. Don’t wait until the last minute to get your ducks in a row. Everything will go faster and smoother if you have everything you need. Here are some DOs. Not doing these are huge mistakes that home sellers make all of the time.
5. DO Film Video Walk-Throughs. Especially as virtual home buying becomes increasingly popular, your home will get more views and interaction if you have video walk-throughs. Video tours can usually be filmed by someone who works with your real estate agent. These are compelling and add value to your listing.
6. DO Make Minor Repairs. If you’ve lived in your home a long time (or even if you haven’t), you may have learned to live with squeaky hinges or broken railing. Homebuyers will be turned off by these things, and it’s a lot cheaper to fix them yourself than to have negotiations about the deal.
7. DO Make Cosmetic Improvements. It may be hard to see your lived-in home objectively. But potential buyers will be the first to notice worn-out carpeting and scuffed walls. A little bit of paint, a little bit of carpet cleaning, a pressure wash on the driveway goes a long way.
8. DO Stage Your Home. Now that many buyers are checking you out virtually, it’s even more important that your home looks bright, light, and modern. It may be worth it to pay an expert stager or have a friend with a great eye come in and update your decor. The last four mistakes many people make have to do with buyers and the buying process. Home sellers can impact the sale! BE CAREFUL that you don’t make these mistakes.
9. BE CAREFUL About Negotiations. There are great things and ways to negotiate… and poor ones. You need to sit down with your real estate agent early in the process and determine your absolute bottom-line selling price and anything you are or are not willing to talk with a potential buyer about.
10. BE CAREFUL About When You Sell. You may already know that selling during the winter months will get you a lower price for your home. There are ideal times to list your home. This may even extend to when online listings go live and when you alert the community.
11. BE CAREFUL About Buyer Qualifications. A huge time-waste that home sellers sometimes experience is trying to work with unqualified buyers. While your real estate agent should have a great process for pre-approvals and proof of funds, be sure you are in the know about who is being let through your door.
12. BE CAREFUL About Delays. Any number of things can derail your home sale. It’s super important that you don’t make impulsive decisions that could set you back several weeks. When in doubt, ask your REALTOR. One of the biggest home selling mistakes you can make is to NOT hire a real estate agent. There is plenty of data that showcases that sellers who use realtors end up with more money in their pocket.

Need a REALTOR? Contact me! Brian Bischoff,

Realty Executives Midwest,

Realtor Phone: 630-866-6591

brianbischoff@realtyexecutives.com

ULTIMATE GUIDE TO SELLING YOUR HOME

(Published on - 10/5/2021 10:56:05 PM)

ULTIMATE GUIDE TO SELLING YOUR HOME

Table of contents

Section 1: Selling 101

First time home sellers guide — 01

Questions to ask when selling a home — 02

6 questions to ask before you sell your house — 03

Section 2: Covid-19 considerations

How to buy or sell a home during a pandemic — 04

Virtual home selling — 05

Safe home selling — 06

Cost of living in the U.S. — 07

Section 3: All about the money

2021 projections: real estate opportunities — 08

5 dangers of overpricing — 09

How to increase your home value for the least amount of money — 10

25 factors that impact your home value — 11

Section 4: Time it right

2021 projections: Real estate opportunities — 12

Secrets to selling your home fast — 13

The secret to selling your home in any season — 14

Section 5: Get the best deal

12 mistakes to avoid when selling your home — 15

Curb appeal 101 — 16

How to stage a home to sell — 17

Home seller negotiation — 18

Home appraisals: All you need to know for a smooth process — 19

Section 6: Your next great space

Scaling down: Small spaces, big opportunities — 20

How to create the ultimate home office — 21

What does homeowners insurance cover? — 22

How to “Go Green” at home — 23

Grass to gables: Improving outdoor spaces — 24

All about HOAs — 25

Tech for smart homes — 26

Relocation Guide: The inside scoop for your big move — 27

Section 1: Selling 101

Find the right realtor. This will be someone local who has a good understanding of how to sell

homes in your area. You also want someone who communicates in a way that is helpful and

easy for you. Making the wrong partnership up front could be detrimental to an easy home

selling process.

PRICE/COMPS

A great realtor will be able to coach you on this. Your home value should be objectively

assessed based on comparable homes on the market. Do you want to know your home value?

Go here for a free estimate from an expert in your area.

LISTING & DESCRIPTIONS

Most people will find your home online. How it’s described is a huge make it or break it for

keeping their attention and encouraging them to stop scrolling. Crafting the right copy can

alert buyers to the desirable facts and features about your home.

PICTURES & VIDEOS

It’s a digital age. Prospective buyers will favor homes that have great, professional photos and

even video tours. There are plenty of ways to capture great digital media, even if you only have

a smartphone.

BONUS TIP

Two selling points for a home could be having it inspected before buyers start looking at it and

having a transferable home warranty. Both of these could improve the value of your home in a

buyer’s mind.

8 WAYS TO PREP YOUR HOME TO SELL

In a snapshot, here are the eight steps you’ll take to prep your home to sell.

1. Make as many minor repairs as possible.

2. Decide if any major repairs need to be made.

3. Improve curb appeal outdoors: landscaping & grooming.

4. Deep clean your home: walls, flooring, ceilings & fixtures.

5. Clean your windows inside and out.

6. Declutter and depersonalize your space.

7. Neutralize your decor.

8. Do a walk-through and improve anything else you have missed.

You may be surprised to uncover issues that would deter buyers. Do a thorough assessment of

your property and make all of the fixes you can. This will show buyers that the house is “movein”

ready, which is a great motivator to “BUY NOW!”

Bonus Tip

You may be booking showings in-person or online. For either, establish a clear system with

your realtor so that you know what is happening when and are always prepared.

Negotiating Your Home Sale

In real estate, negotiating happens in the form of counteroffers. You may receive an offer but

want to counteroffer. This could go back and forth a few times.

What can you negotiate?

Here is some info about what you may be able to negotiate:

Percentage of closing costs

Home warranty premiums

Repairs related to the inspection

Possession or closing date

Cosmetic updates

Furnishings

Household items

House price

Mortgage loan points

How should you negotiate?

Your real estate agent will be your negotiation advisor. Here are some tips when it comes to

negotiating your home sale:

Take charge and be direct

Understand contingency clauses

Work with your bank

Encourage a bidding war

Don’t be emotional

Be realistic

Be creative

All About Closing

You’ve made it! After all of the prepping, showing, bidding and negotiating is done you are on

your way to the closing table.

Here’s what you need to know about closing on the sale of your first home:

Players:

Escrow officer

Mortgage professional

Attorney

Title insurance agent

Home inspector

Buyer

Seller

Timeline from listing to closing: On average, 41 days

Closing checklist:

Home inspection

Appraisal

Loan documents

Homeowners

Insurance

Steps:

Final walkthrough

Sign documents

Final financials

What To Ask Your Realtor

Your real estate agent should be on your side. They are ready and waiting to field the majority

of your questions as you navigate selling your home. Here are some questions you may want to

ask them directly:

How long have you been licensed to practice real estate?

How many clients have you helped sell homes?

How many homes do you typically close a year?

Do you work full time or part time?

Do you have any specialties or things you are known for?

How many sellers are you working with right now?

Do you work with buyers as well as sellers?

What is the price range of homes you usually help people sell?

Will I work only with you or with a team?

At the end of the day, a commission check will be headed their way. That gives you the right

and responsibility to be sure they are a good fit for you.

What To Ask About Your House

Whether you’ve lived in your house a year or twenty, you have some major decisions to make

as you go to sell it. How to price, when to market and how to get the word out are all things

that you will work with your realtor to arrange. To make sure you fully understand the ins and

outs (and set yourself up for a top dollar sale), you should ask:

Are any major repairs needed?

How old are the HVAC, appliances and roof?

Would any of those be a barrier to selling?

Would any upgrades improve the sale price?

Is any renovation needed?

How much is home worth, according to comparable homes in the area on the market?

How much am I willing or able to negotiate?

What about the area or nearby amenities could be selling points for my home?

What kind of buyers can I/do I want to attract?

What is the best marketing and showing strategy for this home?

What is my timeline?

Depending on your timeline, you could make some simple cosmetic changes or light

renovations that dramatically improve your sale price. All of this should be discussed with your

REALTOR.

What To Ask Yourself

The last important Q & A should happen with yourself, your spouse, your housemate or anyone

else who’s putting the home up for sale with you. It’s important that you ask yourself questions

like:

What are my non-negotiables?

What is the amount I really want to get for this home?

What is the lowest price I will take for this home?

Does my timeline impact this transaction?

Do I want to negotiate?

Am I willing to take on renovations or repairs?

Am I willing to take on closing costs?

At the end of the day, going into a home sale knowing what you want and what you have to

work with will help you avoid busywork and chasing rabbit trails.

What To Ask Before Closing

This may be in your first home sale or maybe you’ve sold homes before. Either way, you’ll need

to ask the right questions and understand how to close out your mortgage.

A lot of factors, including whether or not you have your next home purchase lined up, may

cause questions.

Going in, you will need to understand what will happen if your home appraisal comes back low

or high. Another financial consideration is what arises during negotiations and if you agree to

any contingencies.

It’s important to ask these questions about closing:

What are my responsibilities for the home before closing?

What needs to be done about utilities before closing?

Do I need to perform any repairs before closing?

What am I required to bring to closing?

How much are closing costs?

Who’s paying closing costs?

All of these questions will help clarify the process and avoid missteps, getting you to the

closing table without a hitch.

1. Home Value and Sale Price

Question one: what is your home worth and what could you list it for?

To start researching this yourself, you can easily look up your home on a search engine to see

the estimated listing price. An important thing to note is what other homes in your areas have

sold for. These are called the “comps” and will definitely set a precedent for your own listing

price. This is question number one because it will give you a baseline for all of the other

decisions.

2. Equity

Question two: how much equity do you have in your home?

Home equity is the amount of your home that you (as opposed to the bank) actually own. You

can look at the market value of your home minus the balance of your home loan to calculate

your equity. First off, your equity must be positive. Secondly, the equity you have will help you

understand how much money you have to put toward moving and a new home.

3. Cost of Selling

Question three: how much will it cost to sell your home?

This is a question many hopeful sellers don’t consider… but it’s important! Many people spend

as much as 10% of the sale price on selling their homes. This includes realtor commission and

additional costs like repair costs, housing overlap costs, closing costs, seller concessions, and

more. Knowing how much all this could total out at will help you understand if you have the

budget and willingness to list.

4. Timeline

Question four: how long would it take to sell your home?

Similar to sale price, this could be informed by comps. The metric is called “Days on Market” or

DOM. DOM will track the average amount of time homes in your area spend on the market.

While you can’t nail this down entirely, you should look at when you want to move and how

long, realistically, it could take to sell your home.

5. Home Improvements

Question five: what needs to be done to your home before you sell it?

You probably already know that things like renovations are lengthy and costly. However, even

cosmetic things (like paint or flooring) can take time and money BUT can increase the sale

price of your home. This is almost always a worthwhile tradeoff for home sellers, but of course,

it also takes time and money. Wrapping your mind around what could be done to enhance the

value of your home may impact your timeline and listing date.

6. How to Sell

Question six: how are you going to sell your home?

Most people use real estate professionals and some people list a home for sale themselves.

Perhaps most importantly is determining the way you’ll present your home to buyers in a virtual

context. You’ll need to consider virtual tours, professional photographs, and live-streamed

open houses. All of these are becoming increasingly common and may make all of the

difference in getting the offer you want.

Feel like you have enough pros to list? If your ducks are in a row and you are ready to get

going, I can help! I work with homeowners in your area, helping them list and sell their homes.

Contact me and we’ll get the ball rolling!

Section 2: Covid-19 considerations

Touring and Buying a House Virtually

Think you need to be “in” a house to experience it? You can get that same “this is it!” feeling

when you are shopping for a house online. Here are some tips and what to look for:

1. See beyond the photos & request more if you want them.

2. Take video tours and ask for a one-on-one, realtime tour so you can "see" more of the home.

3. Reach out to the listing agent with specific questions and for more media or information.

Digital Communication

Nervous about the idea of only communicating remotely? Don’t be! Realtors are better

equipped than ever to stay in close contact using digital communication.

Apps

Texts

Videos

Emails

Tips for communicating digitally:

Spend time with your realtor

Be personal and honest

Prepare ideas or questions in advance

Don’t be afraid to ask for more

Find a method that works for you

Contactless paperwork and processes

Can you get all of the paperwork done without being in-person? Short answer: yes! Read on to

learn all of the ways you can buy or sell your house while maintaining social distance.

1. Mortgage applications and approvals can all happen online

2. Virtual inspections may be done remotely

3. Desktop appraisals or inperson exterior appraisals with the right personal protective

equipment

4. Digital e-signings

5. Drive-up paper signings for notarization

6. Virtual or contactless closing processes

Let’s Chat: No Handshake Necessary! Qualified real estate agents are still in the game, using

virtual property monitoring and online call platforms to meet new clients. Set up a video or

audio call and let’s get started!

Remote Property Evaluation: Clipboard-Free! Innovative technology gives us the ability to

estimate your home worth without stepping through the door. Get all you need to know your

best numbers through our seamless and simple remote property evaluation services. We also

provide virtual inspections, giving you detailed photos and video conferences to keep you in

the loop.

E-Paperwork: All Online! The documents you need to sign are all available electronically,

meaning that you don’t have to come into an office or sit across from us at a desk. What’s more,

we provide one-on-one coaching via phone or video to ensure you fully understand the

paperwork and process.

Vivid Video Tours: Our professional team is fully equipped to capture your home in the best

light. Exercising the utmost safety, our remote team can be mobilized to get the highest quality

photos and create virtual video tours for prospective buyers.

Marketing & Open Houses: We are experts at online hosting. Our highly-attended events

provide a start-to-finish service that will get qualified buyers in your virtual door and looking

around. We know how to issue online invites, generate buzz and show off your property, all

using virtual technologies. Online meet-and-greets by our winning hosts will give your house

the edge and get you the offer you want!

On the Dotted Line: All final agreements can be closed out using our virtual systems. Earnest

money can be wired or picked up. Mobile notaries can bring final, closing docs right to your

car, so you never have to come in the building. We can answer all questions while still

complying with social distancing and best practices. The final touch? We’ll deliver your keys to

you personally!

Don’t miss your moment in the market! Selling your house right now gives buyers the best

interest rates and you the best opportunities to upgrade or step into something new. Don’t let

a hassle or hangup get in the way: get in touch now to learn how you can get your home on

the market and find a new place... all from the comfort of your home.

VIVID VIDEO TOURS

Our professional team is fully equipped to capture your home in the best light! Exercising the

utmost safety, our remote team can be mobilized to get the highest quality photos and create

virtual video tours for prospective buyers.

MARKETING AND OPEN HOUSES

We are experts in online marketing. Our highly-attended events provide a start-to-finish service

that will get qualified buyers in your virtual door and looking around. We know how to issue

online invites, generate buzz and show off your property, all using virtual technologies. Online

meet and greets by our winning hosts will give your house the edge and get you the offers you

want!

ON THE DOTTED LINE

All final agreements can be closed out using our virtual systems. Earnest money can be wired

or picked up. Mobile notaries can bring final, closing docs right to your car, so you never have

to come to the building. We can answer all questions while still complying with social

distancing. The final touch? We'll deliver your keys to you personally!

Don't miss your moment in the market! Selling your house right now gives buyers the best

interest rates and you the best opportunities to upgrade or step into something new. Don't let

a hassle or hangup get in the way: get in touch now to learn how you can get your home on

the market and find a new place... all from the comfort of your home.

The Top 5 Most Expensive States

These rankings are based on a widely understood Cost Index (in which “average cost of living”

in the U.S. = 100). That means every point over 100 means that the state is that much higher

than the national average.

Here are the states that are most expensive to live in:

1. Hawaii: 92.9

2. California: 151.7

3. New York: 139.1

4. Oregon: 134.2

5. Massachusetts: 131.6

Cost factors for these high-end rankings are related to taxes, food, transportation, housing, and

more. Of course, many people choose these states for their thriving industries and highearning

employment opportunities, which offsets the price tag of a costly lifestyle.

Expensive and Affordable States For Home Prices

Home prices are a key reason why you may (or may not) be able to move into a certain state or

city. Often, prices decrease the further you get away from a metropolitan area. Of course, that

may mean a longer commute. There are plenty of tradeoffs to be made.

Here are the states with the most expensive median home prices:

1. Hawaii: $646,733

2. Washington D.C.: $599,000

3. California: $549,000

4. Massachusetts: $479,900

5. Colorado: $429,800

As you know, “median” means there are plenty of houses that cost more and plenty of houses

that cost less.

Here are the states with the least expensive median home prices:

1. West Virginia: $166,488

2. Arkansas: $179,500

3. Ohio: $179,900

4. Iowa: $180,000

5. Mississippi: $188,900

Expensive and Affordable States For Taxes

Property taxes are often one of those things that new homeowners don’t take into account. It’s

important that you do because they’ll often increase your monthly mortgage payment.

Here are the states with the most expensive property taxes:

1. Illinois: 2.22%

2. New Jersey: 2.19%

3. Texas: 2.11%

4. Vermont: 2.11%

5. Connecticut: 2.04%

Here are the states with the least expensive property taxes:

1. Hawaii: 0.36%

2. Alabama: 0.48%

3. Colorado: 0.52%

4. Utah: 0.56%

5. Nevada: 0.58%

Property taxes can be calculated based on home values, so keep in mind that the nicer the

area, the more you may shell out for property taxes. Of course, this also means the area is nicer.

Again: trade-offs.

The Top 10 Cheapest Places to Live

Some people (more than ever) have the option to live wherever they want. As working from

home becomes a permanent situation, you may genuinely want to cast a wide net and live

anywhere on the map. Knowing which places have the lowest cost of living may sway you one

way or another. Again, the index of 100 = national average is in play here, to give you a relative

understanding.

Here are the 10 cheapest places to live in the United States:

1. Mississippi: 84.8 (Housing index = 66.7)

2. Oklahoma: 86.8 (Housing index = 70.1)

3. Arkansas: 87.8 (Housing index = 75.2)

4. Kansas: 87.9 (Housing index = 71.8)

5. Missouri: 88.9 (Housing index = 71.6)

6. Georgia: 89.4 (Housing index = 71.3)

7. Alabama: 89.4 (Housing index = 70.2)

8. New Mexico: 89.6 (Housing index = 80.4)

9. Tennessee: 90.2 (Housing index = 82.6)

10. Indiana: 90.4 (Housing index = 76.5)

2020 Summary of Real Estate

2020 was a unique year for all types of real estate. For residential real estate, here’s a summary

from analysts on the trends and occurrences:

From the National Association of Realtors, reporting on Q4 2020:

Annualized Growth Rate for

Real GDP: 4.0

Consumer Prices: 2.2

Consumer Confidence: 94

Interest Rates in Percentages

Fed Funds Rate: 0.1

3-month T-Bill Rate: 0.1

Prime Rate: 3.2

Mortgage Rates in Percentages

30-Year Fixed-Rate: 2.8

Existing Home Sales: 6,777 New Single-Family Sales: 873 Median Home Prices in Thousands of

Dollars:

Existing Home Prices: 311.3

New Home Prices: 348.4

2021 Expert Projections

The projections for the next couple of years of residential real estate have some ups and some

downs. Here is a summary of the NAR projections for the overall scope of real estate by Q4

2021:

Real GDP: 5.0

Consumer Prices: 5.0

Consumer Confidence: 100

Interest Rates in Percentages

Fed Funds Rate: 0.1

3-month T-Bill Rate: 0.1

Prime Rate: 3.2

Mortgage Rates in Percentages

30-Year Fixed-Rate: 3.1

Existing Home Sales: 6,410

New Single-Family Sales: 1,050

Median Home Prices in Thousands of Dollars:

Existing Home Prices: 321

New Home Prices: 348

To see the full report from NAR: http://bit.ly/l2l-document

2021 Expert Projections

The projections for the next couple of years of residential real estate have some ups and some

downs. Here is a summary of the NAR projections for the overall scope of real estate by Q4

2021:

Annualized Growth Rate for

Real GDP: 5.0

Consumer Prices: 5.0

Consumer Confidence: 100

Interest Rates in Percentages

Fed Funds Rate: 0.1

3-month T-Bill Rate: 0.1

Prime Rate: 3.2

Mortgage Rates in Percentages

30-Year Fixed-Rate: 3.1

Existing Home Sales: 6,410

New Single-Family Sales: 1,050

Median Home Prices in Thousands of Dollars:

Existing Home Prices: 321

New Home Prices: 348

To see the full report from NAR: http://bit.ly/l2l-document

KEY TAKEAWAYS: according to these projections, while interest rates may hold relatively

steady, existing-home sales will decrease and new home sales will increase. Average home

prices will also increase in both categories. This may mean that the time to buy is NOW (before

these forecasts become a reality).

2021 For Home Sellers

Here are some key predictions from experts on what 2021 will hold for home sellers.

Mortgage Bankers Association estimates an average of 3.3% in mortgage rates for 2021.

National inventory fell 39.6% in 2020, making home listings scarce.

Both existing home sales and new home sales are projected to increase in quantity and

average listing price.

Median listing prices grew 14.4% in 2020, with no major decline predicted.

Metro areas alone saw a price increase of 8.8% in 2020, compared to YOY stats.

Bottom line: demand is high and mortgage rates are affordable, removing barriers to access

and giving more people than ever the means to buy a home. This can drive prices up, giving

home sellers an opportunity to list at higher-than-average prices.

2021 For Home Buyers

If high prices and high demand are great for home sellers, what do they mean for people who

want to buy a home? Low mortgage rates are the ticket to home buyer advantages in 2021.

There are three main things to keep in mind:

1. Because of federal mortgage forbearance, 2020 saw a historically low level of foreclosure

activity, even in the face of delinquent loans. This has shifted the typical timeline for sellers

getting out of homes and buyers getting great deals on pre-foreclosures.

2. Mortgage rates have never been and may never be lower. For now, analysts predict that

the Fed will keep mortgage rates at their current, record-making low percentages. It is

expected that mortgage rate averages will be 3.1%-3.3% throughout 2021.

3. New single-family home construction is expected to rise again in 2021 (having fallen in

2020). With as many as 940k new homes coming on the market, home prices are also

expected to grow an average of 4.1%. This may mean that the best time to buy is NOW

before home prices go up again.

1. Fewer Showings

A well-priced home is based on a lot more than comparable home prices in your area or even

your neighborhood. Listing at the right price holds a lot of psychology. There is a certain

equation of showings and foot traffic you need to create bidding wars and get the right price

for your home. If you price your home too high to begin with, you’re going to miss out on a

huge margin of potential buyers.

A home will probably get few showings if it is more than 10% above market value.

Price it right. Additionally, here are some tips that can help your home get more showings:

Get listing feedback: your realtor can get this from other real estate agents and buyers. Use

strategic and creative online marketing. Get professional pictures taken and a 360 video tour of

your home. Stage your home to sell: take care of curb appeal and cosmetic adjustments to

make your home more appealing to buyers. Appeal to emotion: as more buyers start their

journey online, you need a compelling story and reasons they should come out and see the

home.

2. Attract the Wrong Buyers

Price brackets are all-important to home buyers. If bumping up your listing price puts you into

another range, you’re going to get the wrong buyers.

In this case, wrong buyers aren’t people who are unqualified. Instead, they’re people who are

looking for a certain quality of home to match their price point. If your home is overpriced, it

won’t have what they’re looking for and you’ll waste a lot of time wooing people who aren’t

going to buy your home.

Instead, use these tips to attract the right buyers:

Update MLS listings with events and ask for an RSVP

Tap niche or specialty markets

Get referrals

Add incentives to the home sale

3. Lose in Search

The price bracket is also relevant for this issue. It’s dangerous to overprice your home because

most buyers are finding you through online searches. If you don’t show up for the price bracket

your ideal buyer is searching in, you’ll lose out.

This loss of visibility could leave your home sitting on the market and eliminate any activity it

could have had.

There are ways to win in search. Of course, the first is pricing your home right. This way, you’ll

be within the range of buyers who are looking for a home like yours.

You can also:

Use quality keywords and buzzwords

Add a thorough, colorful description to your post

Add an array of creative photos and videos

Talk to your real estate agent about every platform on which your home can be featured,

including websites and social media outlets

4. Help Your Competitors

Comparative Market Analysis (CMA) is the process real estate professionals use to analyze

recently sold or for sale homes near yours. If that isn’t done, or you ignore it and price too high,

you’re actually helping your competitors.

Buyers have certain expectations with a price point for a home. If you’re trying to sell a beer

home for a champagne price (and they don’t get champagne), they’re moving onto the next

home. What’s more, buyers in a certain price range will be looking at comparable homes. If

your home is priced the same but has inferior features, it will instantly look worse than the

homes it’s being shown next to.

In addition to helping your competitors, a home without a completed CMA could have issues

during the home appraisal process.

5. Spend Too Long on the Market

Overpriced homes don’t sell fast. The longer a home sits on the market, the less desirable it

looks. If you have to start dropping the price, that looks even worse.

Pricing your home correctly is the best way to ensure that you get early, quality traffic.

Here are some more tips for selling your home fast:

Make it show-worthy

Neutralize your decor

Time your listing

Use professional media

Be accommodating about scheduled showings and open houses

Stand apart with unique events or showcases

Get feedback

TIP THREE: The Kitchen

In most homes, buyers will spend the most time in the kitchen. Make sure your kitchen is ready

for this. If you have appliances that are dirty or old, get them cleaned spotless or consider

replacing them. You do not need to spend a lot of money replacing your stove or refrigerator

with top end appliances, but you do not want buyers walking into a kitchen, see a dirty stove or

refrigerator and then walking out because of it. And do not forget the drawers and cabinets as

buyers will open these! If you need a referral to a good cleaning service, let me know and I can

send you a couple of names.

TIP FOUR: The Bathrooms

Your bathrooms will also get the drill sergeant review from buyers, in particular any master

bathrooms. Similar to the kitchen, make sure that any old fixtures are replaced and that the

floors, bathtub & shower and walls are CLEAN. You can replace bathroom fixtures easily these

days without spending a lot of money. And a fresh coat of paint can go a long way here too. I

have seen buyers walk out of houses after walking into dirty old bathrooms.

TIP FIVE: Curb Appeal

First impressions count. Similar to a fresh coat of paint for a room, a yard that has the grass cut

nicely goes a long way. Walk outside and look at your front yard and the front of the home.

Does the front of the house need paint or residing? Are there any broken windows or shutters

that need repair? Does the yard need cleaning? You do not need to hire a landscape architect,

but you want to make sure that your yard looks clean and nice. Be sure to pick up any items in

the yard, position trash bins so that they are not visible from the street and any other general

cleaning / maintenance that might be needed. If you need information for a someone that

does this type of work, let me know and I can send you a couple of names.

TIP SIX: Declutter

If you are thinking about selling within the next year, start this now. I have seen buyers walk

through homes that have too much stuff everywhere and comment to me that it just looks

messy. When a buyer thinks a home is messy, they figure that there are other problems with

the home as well even if there is not! This is something that even I deal with sometimes as we

just get so 'used to things' laying around that we do not even see them anymore. They almost

become invisible! Do decluttering in two stages.

Stage One:

Get everything that you have not used in last few months (or years!), and do not anticipate

using in the foreseeable future boxed up and in storage or the basement (neatly!). This would

include clothes that you have not worn in long time, dishes / appliances that you have not used

in forever, paperwork piling up, bathroom items and other things. These are items that you do

not want to throw away or donate, but that you just do not need in your home on a day to day

basis.

Stage Two:

This is when you are getting close to listing your home for sale. Now you want your home to be

ready for buyers to walk through and have a good impression so that they think to themselves,

"This is a clean and neat home, the owner must take care of it!" This will also help make moving

day easier after your home is sold! Pack up even more clothes that you are not going to wear

anytime soon, pack up toys, appliances that are not being used, other kitchen items, bathroom

items, tools, books, art, etc. Put these in storage or boxed neatly into the attic or basement. Be

sure to label all boxes with both the room they belong to, like, "Kitchen" and what is in the box

"Dishes".

TIP SEVEN: Hire a Home Inspector

If you are thinking that you might sell your home in the next year, consider this, most buyers

will hire a home inspector that will inspect your home for any and all issues. Wiring, foundation,

installation, etc. In the case of a Home Inspection, you do not want to be surprised! When you

accept an offer on your home, you want to close the deal with as little hassle as possible. More

and more home owners will hire a home inspector and provide a home inspection report to

buyers as this can make buyers more ready to make an offer on your home, especially if they

are considering other homes that do not have a home inspection. The other benefit for you

though is that you can use the home inspection as a 'What do I need to do' guide if you find

something major. Please keep in mind that home inspection reports will be detailed and may

startle you initially similar to reviewing your results from a physical if the doctor is not present! If

you make the wise investment for a home inspection, have me come over after you get it to

review it with you and I can give you advice on what is common in our market and what is not.

Every market is different, so just because you see something that looks scary on the inspection

report, does not necessarily mean you need to fix it. But either way, you can be assured that

buyers will get an inspection done and you do not want to be surprised by this when you are

trying to get the home sold.

1-5: Things You Can’t Change (but can market around)

1. Street name: live on “Wimpy Way”? Street names may stick out to potential buyers and

be a detractor. You can’t change it. You can (a) make light of it or (b) downplay it in your

marketing.

2. A neighbor’s home: live next to a hoarder? You may not be able to conceal that fact, but

you can direct attention elsewhere by pointing out “nearby” amenities or positives about

the neighborhood.

3. Power plants or landfills: close to utilities? These can lower your property value. However,

you can again focus on amenities “in the other direction” or nearby that offset that

deterrent.

4. Nearby foreclosures: comps are a big deal. If there are numerous, visible foreclosures

and eyesores near your home, you’ll have to go the extra mile to amp up your own curb

appeal and show off in comparison.

5. Bad schools: if the school system is poor or has a bad reputation, it can be a stigma for

families. You may choose to market your home to elderly people or busy professionals who

may not have children.

2-10: Aesthetics

6. Bright colors inside: a common piece of advice offered by realtors is “neutralize your

decor” before selling.

7. Bright colors outside: you may love your hot pink shutters and door, but your outdoor

paint is also a point of consideration for curb appeal and home value.

8. Excessive landscaping: if you are a horticulturist, you may love the proliferation of spidery

plants and unique vines. The maintenance this implies for homeowners could be a turnoff.

9. Excessive landscaping: if you are a horticulturist, you may love the proliferation of spidery

plants and unique vines. The maintenance this implies for homeowners could be a turnoff.

10. Dirty roof: same goes with a roof. It may look older than it is if it’s caked with gunk and

grime. Get it professionally cleaned and you’ll get fewer questions about how old it is.

10-15: Positioning

11. The lot: corner lots may sell for more and where you are on a lot can be used to

promote a higher value. Some people love the phrase, “eastern facing windows” in a home

description.

12. Major roads: if you are near highly trafficked roads, it can be a drawback for some

buyers. Talk up new windows or other ways the home is shielded from the noise and

busyness.

13. Nearby neighbors: if you have a lot of renters in your neighborhood, it may be less

appealing to future buyers.

14. Major airports: if you are near an airport, buyers may be afraid of the noise. Instead, you

can bill the house has “commuter friendly”!

15. Near a cemetery: some people are superstitious or just don’t want to live near a

cemetery. The good news is, cemeteries are often beautifully kept piece of land. For the

right buyer, this can be a benefit.

15-25: Even MORE

Think we’ve covered it? Think again. Here are some additional factors that could impact your

home value:

16. Energy inefficiency

17. Broadband access

18. Invasive plant or animal species

19. Unpleasant home history

20. High crime

21. Pollution

23. Over improvements

24. Niche improvements

25. Space allocation