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August
1

The process of buying a new home can be both exhilarating and exhausting. But the journey doesn't stop when you close on your property. On the contrary, you still have quite a bit to do before you can begin the process of settling into your new place.

Fortunately, you don't have to do everything in a day. You don't have to do it all alone, either. When you work with us to sell or purchase a home, you'll have an ally by your side long after your transaction has closed. We'll continue to be a resource, offering advice and referrals whenever you need them on packing, hiring movers and contractors, and acclimating to your new home and neighborhood.

When it comes to a life event as stressful as moving, it pays to have a professional by your side. Here are some of our favorite pro tips to share with clients as they prepare for an upcoming move.

  1. Watch out for moving scams.

Maybe you receive a flyer for a moving company in the mail. Perhaps you find a mover online. Either way, never assume that you're getting accurate information. According to the Better Business Bureau, moving-related fraud is on the rise. In 2021 alone, individuals and families reported more than $730,000 lost to moving scams, an increase of 216% over the previous year.1

How can you tell if a moving deal is too good to be true? Trust your instincts. If the price appears too low or you can't pin down the mover's physical business address, try someone else. The same goes for any moving company representative who dodges questions. Reputable movers should offer transparent pricing, conduct in-home estimates, and provide referrals and copies of their insurance documents upon request.2 For help finding trustworthy movers, reach out. We'd be happy to share our recommendations. 

  1. Insure your belongings.

Your moving company promises to take care of your custom piano or your antique furniture. But don't just take their word for it. Ask to see how much insurance they carry and talk about how the claims process works. That way, you'll know what is (and isn't) covered in case of loss or damage.

Of course, some items are priceless because they're irreplaceable. You might want to move your more sensitive valuables (jewelry, documents, family heirlooms, etc.) in your own vehicle just to be safe. For added peace of mind, call your rental or home insurance provider if you're moving anything yourself. You might already be protected or be able to purchase extra insurance to cover your move. If those options are unavailable, you could opt for moving insurance from a third-party carrier.3

  1. Start packing when you start looking for a new home.

 As soon as your house hunting begins in earnest, think about packing away things you won't need for the next few months. These could include seasonal or holiday decor, clothing, and books. Tackling just one or two boxes a day will give you a head start.

If you're going to put your current home on the market, you'll want to declutter anyway. Decluttering will make your home seem larger, and depersonalizing helps buyers envision their own items in the space. Consider selling, donating, or throwing out possessions you no longer need. The things you want to keep can be placed in storage until you officially start moving to a new place.

  1. Pack to make unpacking easier.

Have you ever opened a packed box only to find that it's filled with an assortment of items that don't belong together? This isn't efficient and will only make unpacking harder. A better way to pack is to bundle items from a single room in a labeled box. Labels can let movers know (and remind you) where to place each box, whether it's fragile, and which side needs to be up. Some people like to assign colors to each room in their new home to make distributing color-coded boxes a breeze.

Feel free to unleash your inner organizer with this project. For example, you could create a spreadsheet and assign each box a number. As boxes are packed, simply fill in the spreadsheet with a list of contents. Anyone with access to the spreadsheet can log in and quickly find the desired item.

  1. Think outside the box when transporting clothes.

Who wants to worry about boxing up clothes? If you plan on hiring professional movers, ask if you can leave clothing in your dressers. In many cases, they will use plastic to wrap the dresser so the drawers don't fall out during transport. If keeping your clothes in your furniture makes it too heavy, the movers might be able to wrap and move drawers by themselves.

Another easy transport trick involves turning clean garbage bags into garment bags. Poke a hole in the bottom of a garbage bag, turn the bag upside down, slide it over five to seven garments on hangers, and lay the items flat in the back seat or trunk of your vehicle. The bags will help prevent wrinkling, and your clothes will be ready to hang up when you get to your new home.

  1. Document prior to disassembling appliances and furnishings.

Few things are as confusing as looking at a plastic baggie filled with nuts, bolts, and screws from your disassembled dining room table or sorting through a box of electrical wires and cords to see which ones fit your TV.

The best workaround to easier reassembly is to document the disassembly process. Take photos and videos or thorough notes as you go. Whether it's your headboard or treadmill, be very precise. And just a tip: Construct your beds first when you get to your new home. After a long moving day, the very last thing you want is to be assembling beds into the wee hours of the morning.

  1. Prioritize unpacking kids' rooms.

Children can become very stressed by a big move. To ease their transition, consider prioritizing unpacking their rooms as their "safe zones."4 You aren't obligated to unpack everything, certainly. However, set up your children's rooms to be functional. That way, your kids can hang out in a private oasis away from the chaos while you're running around and moving everything else.

Depending upon how old your youngsters are, you might want to give them decorating leeway, too. Even if it's just letting them choose where furniture goes, it gives them a sense of buy-in. This can help ease the blues of leaving a former home they loved.

  1. Be a thoughtful pet parent.

Many types of pets can't handle the commotion of moving day. Knowing this, be considerate and seek ways to give your pets breaks from the action. You might ask a friend to pet sit your pooch or keep your kitty in a quieter room, like a guest bathroom.

Be sure to check in on your pet frequently. Pets like to know that you're around. Give them treats, food, and water throughout the day. When it's time to transport your pet, do it calmly. At your new property, give your pet access to just a room or two at first. Pets typically prefer to acclimate themselves slowly to unfamiliar environments.5

  1. Plan for your move like you're planning for an exciting vacation.

When you plan vacations, you probably look up local restaurants, shops, and recreational areas. Who says you can't do the same thing when moving? Create a list of all the places you want to go and things you want to do around your newly purchased home. Having a to-explore list keeps everyone's spirits high and gives you starting points to settle into the neighborhood.

And don't feel that you have to cook that first night. Once the moving trucks are gone, you can always pop over to a local eatery or order DoorDash for major convenience. The first meal in your new home should be a happy, welcoming treat. And if you're relocating to our neck of the woods, we would love to introduce you to all the hot spots in town and recommend our local favorites. 

  1. Pack an "Open Me First!" box.

You won't be able to unpack all your boxes in one day, but you shouldn't go without your sheets, pillows, or toothbrush. Designate some boxes with "Open Me First!" labels. (Pro tip: Keep a tool kit front and center for all that reassembling.)

Along these lines, use luggage and duffel bags to transport everyone's personal must-have items and enough clothing for a couple of days. That way, you won't have to rummage through everything in the middle of your move looking for sneakers or snacks.

When packing your "Open Me First!" boxes, think about which items you'll need in those first 24 hours. For example, toilet paper and hand soap are musts. A box cutter will make unpacking a lot easier, and paper towels and trash bags are sure to come in handy. Reach out for a complete, printable list of "Open Me First!" box essentials to keep on hand for your next move!

LET'S GET MOVING

Getting the phone call from your real estate agent that your bid was accepted is a thrilling moment. Make sure you keep the positivity flowing during the following weeks by mapping out a streamlined, efficient move. Feel free to get in touch with us today to help make your big move your best move.

Sources:

  1. Better Business Bureau - https://www.bbb.org/article/scams/24198-bbb-scam-alert-avoid-moving-scams-this-national-moving-mont
  2. org -
    https://www.move.org/how-to-tell-moving-company-scam/
  3. Forbes -
    https://www.forbes.com/advisor/homeowners-insurance/moving-insurance/
  4. New York Times -
    https://www.nytimes.com/2020/07/13/parenting/moving-tips-kids.html
  5. ASPCA -
    https://www.aspca.org/pet-care/general-pet-care/moving-your-pet
July
6

Getting ready for a home inspection is one of the more nerve-wracking things about selling your home. The good news is that you don't have to wait until after the inspection to fix some of the most common trouble spots.

There are certain spots in a home that every inspector will check. Focusing on these issues now is the best way to maximize your budget and your chance of a favorable inspection result.

  1. Address Electrical Issues
    Electrical systems are always an area of focus during home inspections as old or damaged wiring can present a significant safety hazard. You can take care of some of the simple stuff like replacing broken switch plates and making sure that all light bulbs are working. It's also a good idea to contact a trusted electrician for a full review of your electrical systems. Better to find and fix it now rather than learn about a problem on inspection day.


  2. Freshen Your Fireplace
    A fireplace can be a major attraction to homebuyers as long as it's clean, safe, and well-maintained. Staying on top of fireplace maintenance is always a good idea because an inspector will check it thoroughly. In addition to cleaning up, make sure your fireplace meets all relevant safety codes.


  3. Eliminate Mold and Mildew
    Mold and mildew in a home are enough to scare off most buyers before things even reach the stage of inspection. Scour bathrooms, basements, kitchens, and anywhere else mold might develop. You can find specially formulated cleaning products to deal with mold at most hardware stores. If you have a serious mold problem, it's worth calling in the pros to get the job done thoroughly.


  4. Fix Roof and Basement Leaks
    If you do have mold or mildew issues in your home, there's a good chance that leaks play a part. Roof and basement leaks are among the most common ways for water to enter the home and often cause significant damage before being detected. Have a professional contractor repair any leaks. It's an absolute must if you're preparing for inspection.


  5. Check Your Plumbing
    Leaks don't just come from the outside of the home and faulty plumbing is sure to draw the attention of any home inspector. Taking care of any leaks is the first priority, but it's also a good idea to make sure that your water systems are functioning at their best. Check that the water pressure is high and your water heater works properly.

Investing the time and resources to repair these problems now will save a lot of stress in the long run and will likely save you some money at closing time. Better yet, a positive inspection result puts you one step closer to turning your dreams of a home sale into a reality.

 

July
6

Moving doesn't have to be a stressful experience.

You're moving! Let's face it; whether you're moving across the street or across the country, it can be one of life's more stressful events. Before you surround yourself with cardboard boxes and packing tape, use these tips to find and hire a reliable moving company in your area.

  1. Stay Local
    Use someone in your local community. Ask your real estate agent, family, or friends who they trust for moving projects. They will point you in the right direction.

    The majority of moving scams are found online so stay local by searching businesses in your hometown. You can search online but remember, by staying local, it is easier to verify that they are a legitimate business.


  2. Read Reviews
    In the moving industry, reputation is everything. You're going to tell everyone how great the movers were and that word of mouth is what keeps their business going.

    Further, check out the reviews posted for several moving companies that you are researching. In doing so, you will help ensure that you get a great company for a good value.


  3. Visit the BBB
    Visit the Better Business Bureau and check for any complaints or reports against the moving company. Look for customer complaints and business reports, and even check their Department of Transportation license. Simply ask your moving company for their DOT Number.

    You can then search the database to investigate their record. Make sure the company is insured. Check their insurance number. Visit the moving companies beforehand to see what their operations are like.


  4. Get Estimates
    Get at least three estimates from three different companies that have passed your initial screening tests. Try to ask for a not-to-exceed binding estimate. This means a cap will be placed on the maximum amount they can charge you for the move.

    When the moving company comes to your home, show them your belongings. Further, let them see your home's layout and what challenges they may face with stairs or other obstacles in moving items out of your home. Estimates should be free and always conducted in person. Phone estimates are bad.


  5. Check the Paperwork
    Just like selling your home comes with paperwork, so should a good moving company provide you with several documents. They should give you a bill of lading, which is a legal document that serves as a receipt of the shipment of goods.

    Further, an inventory list should include all of the items they are moving for you. The most important document is the estimate itself which should be a written binding estimate which is dated and signed by the moving company.

You Are Ready to Move

You have checked potential companies thoroughly and should feel good about your choice. You have done your homework. Now choose the best one. A smooth transition awaits.

July
5

No matter what's going on in the housing market, the process of selling a home can be challenging. Some sellers have a hard time saying goodbye to a treasured family residence. Others want to skip ahead to the fun of decorating and settling into a new place. Almost all sellers want to make the most money possible.

Whatever your circumstances, the road to the closing table can be riddled with obstacles — from issues with showings and negotiations to inspection surprises. But many of these complications are avoidable when you have a skilled and knowledgeable real estate agent by your side.

For example, here are seven common mistakes that many home sellers make. These can cause anxiety, cost you time, and shrink your financial proceeds. Fortunately, we can help you avert these missteps and set you up for a successful and low-stress selling experience.

MISTAKE #1: Setting an Unrealistic Price

Many sellers believe that pricing their homes high and waiting for the "right buyers" to come along will net them the most money. However, overpriced homes often sit on the market with little activity, which can be the kiss of death in real estate — and result in an inevitable price drop.1

Alternatively, if you price your home at (or sometimes slightly below) market value, it can be among the nicest that buyers see within their budgets. This can increase your likelihood of receiving multiple offers.2

To help you set a realistic price from the start, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that similar properties have recently sold for in your area.

Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). We can help you find that sweet spot that will draw in buyers without undercutting your profits. 

MISTAKE #2: Trying to Time the Market

You've probably heard the old saying, "Buy low and sell high." But when it comes to real estate, that's easier said than done.

Delaying your home sale until prices have hit their peak may sound like a great idea. But sellers should keep these factors in mind:

  1. Predicting the market with certainty is nearly impossible.
  2. If you wait to buy your next home, its price could increase as well. This may erode any additional proceeds from your sale.
  3. If mortgage rates are rising, your pool of potential buyers could shrink — and you would have to pay more to finance your next purchase.

Instead of trying to time the market, choose your ideal sales timeline. This may be based on factors like your personal financial situation, shifting family dynamics, or the seasonal patterns in your neighborhood. We can help you figure out the best time to sell given your individual circumstances.

MISTAKE #3: Failing to Address Needed Repairs

Many sellers hope that buyers won't notice their leaky faucet or broken shutters during home showings. But minor issues like these can leave buyers worrying about more serious — and costly — problems lurking out of sight.

Even if you do receive an offer, there's a high likelihood that the buyer will hire a professional home inspector, who will flag any defects in their report. Neglecting to address a major issue could lead buyers to ask for costly repairs, money back, or worse yet, walk away from the purchase altogether.

To avoid these types of disruptions, it's important to make necessary renovations before your home hits the market. We can help you decide which repairs and updates are worth your time and investment. In some cases, we may recommend a professional pre-listing inspection.

This extra time and attention can help you avoid potential surprises down the road and identify any major structural, system, or cosmetic faults that could impact a future sale.3  

MISTAKE #4:  Neglecting to Stage Your Home

Staging is the act of preparing your home for potential buyers. The goal is to "set the stage" to help buyers envision themselves living in your home. Some sellers opt to skip this step, but that mistake can cost them time and money in the long run. A 2021 survey by the Real Estate Staging Association found that, on average, staged homes sold nine days faster and for $40,000 over list price.4

Indoors, staging could include everything from redecorating, painting, or rearranging your furniture pieces to removing personal items, decluttering, and deep cleaning. Outdoors, you might focus on power washing, planting flowers, or hanging a wreath on the front door.

You may not need to do all these tasks, but almost every home can benefit from some form of staging. Before your home hits the market, we can refer you to a professional stager or offer our insights and suggestions if you prefer the do-it-yourself route.

MISTAKE #5: Evaluating Offers on Price Alone

When reviewing offers, most sellers focus on one thing: the offer price. While dollar value is certainly important, a high-priced offer is worthless if the deal never reaches the closing table. That's why it's important to consider other factors in addition to the offer price, such as:

  • Financing and buyer qualifications
  • Deposit size
  • Contract contingencies
  • Closing date
  • Leaseback options

Depending on your circumstances, some of these factors may or may not be important to you. For example, if you're still shopping for your next home, you might place a high premium on an offer that allows for a flexible closing date or leaseback option.

Buyers and their agents are focused on crafting deals that work well for them. We can help you assess your needs and goals to select an offer that works best for you.

MISTAKE #6: Acting on Emotion Instead of Reason

It's only natural to grow emotionally attached to your home. That's why so many sellers end up feeling hurt or offended at some point during the selling process. Low offers can feel like insults. Repair requests can feel like judgments. And whatever you do — don't listen in on showings through your security monitoring system. Chances are, some buyers won't like your decor choices, either!

However, it's a huge mistake to ruin a great selling opportunity because you refuse to counter a low offer or negotiate minor repairs. Instead, try to keep a cool head and be willing to adjust reasonably to make the sale. We can help you weigh your decisions and provide rational advice with your best interests in mind.

MISTAKE #7: Not Hiring an Agent

There's a good reason 90% of homeowners choose to sell with the help of a real estate agent. Homes listed by agents sold for 22% more than the average for-sale-by-owner home, according to a recent study by the National Association of Realtors.5

 Selling a home on your own may seem like an easy way to save money. But in reality, there is a steep learning curve. And a listing agent can:

  • Skip past time-consuming problems
  • Use market knowledge to get the best price
  • Access contacts and networks to speed up the selling process

 If you choose to work with a listing agent, you'll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent's commission.

We can navigate the ins and outs of the housing market for you and make your selling process as stress-free as possible. You may even end up with an offer for your home that's better than you expected.

BYPASS THE PITFALLS WITH A KNOWLEDGEABLE GUIDE

Your home selling journey doesn't have to be hard. When you hire us as your listing agent, we'll develop a customized sales plan to help you get top dollar for your home without any undue risk, stress, or aggravation. If you're thinking of buying or selling a home, reach out to a Montague Miller real estate professional today to schedule a free consultation and home value assessment.

Sources:

  1. The Washington Post -
    https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/
  2. com -
    https://www.realtor.com/advice/sell/spark-a-bidding-war-for-your-home/
  3. American Society of Home Inspectors - https://www.homeinspector.org/Newsroom/Articles/Before-You-Sell-6-Reasons-to-Get-a-Pre-Listing-Inspection/15766/Article
  4. Real Estate Staging Association -
    https://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548
  5. National Association of Realtors -
    https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

 

June
24

Once you've decided to sell your home, there is one question that looms large, hanging over your head like a heavy weight. What am I going to do with all this stuff? The question is especially relevant if you will be downsizing into a smaller house.

If you have lived in your current home for an extended period of time, the problem may be just that much worse. The accumulation of life's stuff is easy to put out of sight and out of mind during the day-to-day bustle. But when it is time to start packing and getting a home ready to sell, it can be like an avalanche bursting forth from every corner.

What's the best way to start downsizing your life and do it efficiently? It may sound easy — keep the stuff you need and purge the stuff you don't — but if you aren't careful how you do it, you can create more problems for yourself than just having too much junk.

Have a Plan to Ease the Pain

  • Start with the big stuff. If you are selling your three-bedroom home to move into a two-bedroom home, there's no need to move that extra bedroom furniture. It's just not needed. Take that approach with the rest of your home as well. Consider the space you are moving into and what you will need to fill it.

  • Be cautious. It can be easy to get on a "get rid of it" kick when it comes to smaller items, but be careful. Some things you know you will never need again, sell or donate. For other things that you are on the fence about, separate boxes into "must keep" and "maybe keep" boxes. That way, you can adjust as needed if your new home has the space to accommodate more of your things.

    It also helps to think about your belongings like this: If they were all wiped away by a fire, what would I replace and in what order would I replace them. It can be counter-productive to aggressively downsize, only to find that you need to re-buy things when you get in to your new home.

  • Go through those boxes again. Do you have boxes of keepsakes or mementos that you just couldn't live without but have never been unpacked from your previous home? Go through those boxes again, separating what's truly needed from what will never be missed.

  • Some space hogs can be effectively downsized without disappearing from your life. Take this opportunity to digitize old photos, CDs, DVDs or even VHS tapes. Uploading them to the cloud keeps them accessible while reducing the amount of stuff you have to move.

  • One year rule. When selling your home and downsizing, it helps to follow one simple rule: If you haven't used it in the last year, get rid of it.

Take your new uncluttered attitude with you into your new home. Recognize clutter culprits in your old home and take pains to reduce what can build up in your new one. The easiest stuff to get rid of is the stuff you never accumulate.

June
1

 

The last two years caught many of us off guard—and not just because of the pandemic. They also ushered in the hottest housing market on record, with home prices rising nationally by nearly 19% in 2021, driven primarily by low mortgage rates and a major supply shortage.1

 But while some had hoped 2022 would bring a return to normalcy, the U.S. real estate market continues to boom, despite rising interest rates and decreasing affordability.

 So what's driving this persistent demand? And is there an end in sight?

Here are three factors impacting the real estate market right now. Find out how they could affect you if you're a current homeowner or plan to buy or sell a home this year.

 MORTGAGE RATES ARE RISING FASTER THAN EXPECTED

 Over the past couple of years, homebuyers have faced intense competition for new homes—in part due to historically low mortgage rates that were a result of the Federal Reserve's efforts to keep the economy afloat during the COVID-19 pandemic.

 However, in response to a concerning level of inflation, the Fed is now reversing those efforts by raising the federal funds rate. And as a result, mortgage rates are rising, as well. Few experts predicted, though, that mortgage rates would go up as quickly as they have.

 In January 2022, the Mortgage Bankers Association projected that rates would reach 4% by the end of this year.2 By mid-April, however, the average 30-year fixed mortgage rate had already hit 5%, up from around 3% just one year prior.3 On a $400,000 mortgage, that 2% difference could translate into an additional $461 per monthly payment.

 Since then, mortgage rates have continued on an upward trend. So what impact are these rising rates having on demand? While many buyers had hoped for a cooling effect, experts warn that may not be the case.

 Ali Wolf, chief economist at housing market research firm Zanda, told Fortune magazine, "Rising mortgage rates are having a counterintuitive effect on the housing market. Home shoppers are actually sprung into action in an attempt to buy a home before mortgage rates rise any higher."4

 Since inventory remains low, the resulting "race" has kept the homebuying market highly competitive–at least for now.

 What does it mean for you?

 While current 30-year fixed mortgage rates represent an increase over previous months, they remain well below the historical average of 8%.5 As inflation across the economy continues, the Fed is likely to raise rates further this year. Buyers should act fast to secure a good mortgage rate. We'd be happy to refer you to a lender who can help.

 For sellers, speed is also of the essence. The pool of potential buyers may shrink as mortgages become more expensive. And if you plan to finance your next home, you'll want to act quickly to secure a favorable rate for yourself. Contact us today to discuss your options.

 HOME PRICES KEEP CLIMBING

 History shows that higher interest rates don't necessarily translate to lower home prices. In fact, home prices rose 5% between 1980 and 1982, a period of significantly higher mortgage rates and inflation.5

 Forecasters expect that home prices will continue to go up throughout 2022, though likely at a slower pace than the 18.8% increase of the last 12 months.4 Bank of America predicts that prices will be up approximately 10% by the end of this year, while Fannie Mae estimates 11.2%.6,7

 In addition to limited supply and a race to beat rising mortgage rates, home values are also climbing because of positive economic indicators, like low unemployment.8 Plus, rents are soaring–up 17% from a year ago–which is prompting more first-time homebuyers to enter the market.9 Add to that the continued popularity of remote work, and it's easy to see why property prices continue to surge.

 However, it's not all bad news for prospective homebuyers. Economists expect that as mortgage rates rise, the rate of appreciation will continue to taper, though the effect may be gradual.

 "Eventually mortgage rates will slow down home prices," according to Ken Johnson, an economist at Florida Atlantic University interviewed by Marketwatch.10 "We should not see rapid upticks in prices as mortgage rates rise." Forecasters agree—Fannie Mae expects price increases to slow to 4.2% in 2023.7

 What does it mean for you?

 While the pace of appreciation is likely to decrease next year, home prices show no signs of going down. However, current labor shortages are leading to higher salaries and better job opportunities for many workers. You may find that your income growth outpaces home prices, making homeownership more affordable for you in the future.

 For homeowners, the outlook's even brighter. You could find yourself sitting on a nice pile of equity. Contact us for a free home value assessment to find out.

 INVENTORY REMAINS EXTREMELY LOW

 As noted, one of the largest hurdles to homeownership is a lack of inventory. According to a February 2022 report by Realtor.com, there's an expanding gap between household formation and home construction, which has resulted in a nationwide shortage of 5.8 million housing units.11

 The origins of this shortage date back to the 2008 housing crisis, during which crashing home values led contractors to stop building new properties—a trend that has not been fully reversed.12

 That decline in home construction also resulted in a decrease in the number of home building professionals, a trend that was exacerbated by job losses during the COVID-19 pandemic. Now, many builders are limited by their ability to find qualified labor.

 Another major challenge is a staggering increase in the cost of materials. Pandemic-related supply chain shortages have been a significant driver, with home building material costs rising on average 20% on a year-over-year basis. The price of framing lumber alone has tripled since August 2021.13

 These trends add tens of thousands of dollars to the cost of a typical home. Factors like a lack of buildable land in many areas, restrictive zoning, and a shortage of developers are also contributing to the issue.14

 Most homebuying experts agree that the lack of inventory is the primary factor driving rising housing prices and unprecedented competition for homes. With available housing units near four-decade lows, the end of the current housing boom is not yet in sight.15

 What does it mean for you?

 Prospective buyers should be prepared to compete for a home, since low inventory can lead to multiple offers. You may also need to expand your search parameters. If you're ready to look, we're ready to help.

 For sellers, the picture is rosier. In this strong market, your home may be worth more than you realize. Contact us to find out how much your home could sell for in today's market.

 WE'RE HERE TO GUIDE YOU

 While national real estate trends can provide a "big picture" outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.

 If you're considering buying or selling a home, contact one of our Montague Miller & Co real estate professionals to schedule a free consultation. We can help you assess your options and make the most of this unique real estate landscape.

Sources:

  1. Marketwatch - https://www.marketwatch.com/picks/home-price-appreciation-will-normalize-what-5-economists-and-real-estate-pros-predict-will-happen-to-home-prices-in-2022-01646940841
  2. Bankrate -
    https://www.bankrate.com/mortgages/mortgage-rate-forecast
  3. CNBC -
    https://www.cnbc.com/2022/04/16/heres-how-much-the-same-mortgage-costs-now-compared-to-last-year.html
  4. Fortune -
    https://fortune.com/2022/03/23/housing-market-interest-rate-economic-shock/
  5. National Association of Realtors -
    https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-april-07-2022
  6. Fortune -
    https://fortune.com/2022/03/16/home-prices-2022-2023-bank-of-america-forecast-mortgage-rates/
  7. Fortune -
    https://fortune.com/2022/03/07/what-home-prices-will-look-like-2023-fannie-mae/
  8. Fortune -
    https://fortune.com/2022/03/17/home-prices-drop-housing-markets-california-michigan-massachusetts-corelogic/
  9. CNN -
    https://www.cnn.com/2022/03/23/success/us-national-rent-february/index.html
  10. MarketWatch -
    https://www.marketwatch.com/story/home-prices-increase-at-one-of-the-fastest-rates-on-record-but-higher-mortgage-rates-should-slow-future-growth-11648559497
  11. com -
    https://www.realtor.com/research/us-housing-supply-gap-expands/
  12. NPR -
    https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain
  13. Investopedia -
    https://www.investopedia.com/housing-market-dips-in-early-march-2022-5222449
  14. NPR -
    https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain
  15. Fortune -
    https://fortune.com/2022/03/14/housing-market-key-metric-inventory-zillow-bad-for-buyers/

May
23

Some Highlights

What does the rest of the year hold for the Houseing Market? Here's what experts have to say about what lies ahead.

Home Prices are projected to rise and so are mortgage rates.  Experts are also forecasting another strong year for home sales as people move to meet their changing needs. 

Connect with a Montague Miller & Co local real estate professional so you can make your best move this year.

Resources: Keeping Current Matters, CoreLogic, Freddie Mac, Fannie Mae, NAR, Calculated Risk, MBA

April
2

We're still in a seller's market, but that doesn't mean your home is guaranteed to easily sell.1 If you want to maximize your sale price, it's still important to prepare your home before putting it on the market.

Start by connecting with a real estate agent as soon as possible. Having the eyes and ears of an insightful real estate professional on your side can help you boost your home's appeal to buyers. What's more, beginning the preparation process early allows you to tackle repairs and upgrades that can increase your property's value.

Use the checklist below to figure out what other tasks you should complete in the months leading up to listing your home. While everyone's situation is unique, these guidelines will help you make sure you're ready to sell when the time is right. Of course, you can always call us if you're not sure where to start or what to tackle first. We can help customize a plan that works for you.

AS SOON AS YOU THINK OF SELLING

Some home sellers want to plan their future move far in advance, while others will be required to pack up on very short notice. Whatever your circumstances, these first steps will help assure you'll be ahead of the listing game.

  • Contact Your Real Estate Agent

We go the extra mile when it comes to servicing our clients, and that includes a series of complimentary, pre-listing consultations to help you prepare your home for the market.

Some sellers make the mistake of waiting until they are ready to list their home to contact a real estate agent. But we've found that the earlier we're brought into the process, the better the result. That often means a faster sale—and more money in your pocket after closing.

We know what buyers want in today's market, and we can help devise a plan to maximize your property's appeal. We can also connect you with our trusted network of contractors, vendors, and service professionals, so you'll be sure to get the VIP treatment. This network of support can alleviate stress and help ensure you get everything done in the weeks or months leading up to listing.

  • Address Major Issues and Upgrades

In most cases, you won't need to make any major renovations before you list. But if you're selling an older home, or if you have any doubt about its condition, it's best to get us involved as soon as possible so we can help you assess any necessary repairs.

In some instances, we may recommend a pre-listing inspection. Although it's less common in a seller's market, a pre-listing inspection can help you avoid potential surprises down the road. We can discuss the pros and cons during our initial meeting.

This is the time to address major structural, systems, or cosmetic issues that could hurt the sale of your home down the line. For example, problems with the frame, foundation, or roof are likely to be flagged on an inspection report. Issues with the HVAC system, electrical wiring, or plumbing may cause the home to be unsafe. And sometimes outdated or unpopular design features can limit a home's sales potential.

Remember, when you're dealing with major repairs or renovations, it's best to give yourself as much time as possible. Given rampant labor and material shortages, starting right away can help you avoid costly delays.2 Contact us so we can guide you on the updates that are worth your time and investment.

1 MONTH (OR MORE) BEFORE YOU LIST

Once any large-scale renovations have been addressed, you can turn your attention to the more minor updates that still play a major role in how buyers perceive your home.

  • Make Minor Repairs

Look for any unaddressed maintenance or repair issues, such as water spots, pest activity, and rotten siding. This is the time to take care of those small annoyances like squeaky hinges, sticking doors, and leaky faucets, too.

Many of these issues can be handled by going the DIY route and using a few simple tools. Tackle the ones you can and be sure to call a professional for the ones you're not comfortable doing yourself. We can refer you to local service providers who can help.

Remember that it's easy to overlook these small issues because you live with them. When you work with us, you get a fresh set of eyes on your home—so you don't miss any important repairs that could make a big difference to buyers.

  • Refresh Your Design

This is a great time to think about some simple design updates that can make a significant impression on buyers. For example, a fresh coat of paint is an easy and affordable way to spruce up your home. One survey found that interior paint offered a 107% return on investment.3 For broad appeal, opt for warm, neutral colors.

 And never underestimate the importance of good curb appeal. Homes with good curb appeal sell for 7% more, on average, than similar homes with an "uninviting exterior."4 If weather permits, lay fresh sod where needed, plant colorful flowers, and add some new mulch to your beds.

Even just repositioning your furniture can make a huge difference to buyers. A survey by the Real Estate Staging Association found that staged homes sold faster, and 73% sold over list price.5 We can refer you to a local stager or offer our insights and suggestions if you prefer the DIY route.

  • Declutter and Depersonalize

Doing a little bit of decluttering every day is a lot easier than trying to take care of it all at once right before your home hits the market. A simple strategy is to do this one room at a time, working your way through each space whenever you have a bit of free time. 

Start by donating or discarding items that you no longer want or need. Then pack up any seasonal items, family photos, and personal collections you can live without for the next few weeks. Bonus: This will give you a head start on packing for your move!

1 WEEK BEFORE YOU GO TO MARKET

With just one week before your home is available for sale, all major items should be crossed off your to-do list. Now it's time to focus on the small details that will really make your home shine. Here are a few key areas to focus on during this last week.

  • Check-In With Your Agent

 We'll connect again to make sure we're aligned on the listing price, marketing plan, and any remaining prep. We will be there every step of the way, ensuring you're fully prepared to maximize the sale of your home.

  • Tidy Your Exterior

You've already done the major landscaping—now it's time to tackle the last few details. Make sure your lawn is freshly mowed, hedges are trimmed, and flower beds are weeded.

 In addition, now is the time to clean your home's exterior if you haven't already. Power wash your siding, empty the gutters, and wash all your windows and screens.

  • Deep Clean Your Interior

 Your house should be deep cleaned before listing, including a thorough deodorizing of the home's interior and steam cleaning for all carpets. Consider hiring a professional cleaning company to ensure the space smells and looks as fresh as possible.

 In addition to cleaning, take some time to tidy up. Buyers will look inside your closets, pantries, and cabinets, so make sure they are neat and organized. Small appliances and toiletries should be cleared off the countertops.

DAY OF SHOWING

 Now you're all set to go and there are just a few small things you need to handle on the day of showings or open houses. Do a final walk-through and take care of these finishing touches to give potential buyers the best possible impression.

  • Pre-Showing Prep

Happy and comfortable buyers are more likely to submit offers! Make them feel at home by adjusting the thermostat to a comfortable temperature. Open any blinds and curtains throughout the house, and turn on all lights so buyers can see all the potential in your home.

 Then tidy up by vacuuming and sweeping floors, emptying (or hiding) trash cans, and wiping down countertops. In the bathrooms, close toilet lids and hang clean hand towels.

 Don't forget to secure firearms, jewelry, sensitive documents, prescription medications, and any other items of value in a safe or store them off-site.

 Finally, it's best to have pets out of the house during showings. If possible, you should also remove evidence of pets (litter box, dog beds, etc.), which can be a turn-off for some buyers.

DON'T WAIT TO PREP YOUR HOME FOR SELLING

 If you want to get top dollar for your home, don't put it on the market before it's ready. The right preparation can make all the difference when it comes to maximizing the offers you get. The upgrades and changes you need to make will depend upon your home's condition, so don't wait to speak with an agent.

 Call our team if you're thinking about selling your home, even if you're not sure when. It's never too early to seek the guidance of your real estate agent and start preparing your home to sell.

 Sources:

  1. Fortune -
    https://fortune.com/2022/02/08/should-i-buy-house-sellers-market-housing-real-estate-fannie-mae/
  2. Forbes -
    https://www.forbes.com/advisor/home-improvement/labor-materials-shortage-impacts-renovations/
  3. PR Web -
    https://www.prweb.com/releases/2012-homegain/home-improvement-survey/prweb9433460.htm
  4. Realtor Magazine -
    https://magazine.realtor/daily-news/2020/01/27/how-much-does-curb-appeal-affect-home-value
  5. Real Estate Staging Association -
    https://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548
March
9

Highlights

  • Today's housing market is the direct result of low supply and high buyer demand. Here's what that means for you and your plans to buy or sell.
  • For buyers, expect competition, be ready to move fast, and be prepared to submit your strongest offer. For sellers,  know your house will be the center of attention  and that it'll likely sell quickly and get multiple offers.
  • If you're ready to move, let's connect to talk about our local area and how you can take advantage of today's unprecedented housing market.

Resources by Keeping Current Matters, NAR

February
27

If you're planning to sell this year, you're probably thinking about what you'll need to do to get your house ready to appeal to the most buyers. It's crucial to work with a trusted real estate professional who knows your local market to get your home ready to sell. But there are a few things you should consider when deciding what to renovate and update before listing this season. Here are three things to keep top of mind as you're making your list of projects to tackle this year.

1. The Number of Homes for Sale Is Very Low

Housing Inventory sits far below what is normally considered a balanced market. In fact, according to the National Association of Realtors (NAR), the latest data indicates inventory is hitting an all-time low. Because there's such a limited supply of homes available for sale, you're in a unique position when you sell your house to benefit from multiple offers and a quick process.

But you want to do so while buyers are still scooping homes up as fast as they're being listed. Spending time and money on renovations before you sell could mean you'll miss your key window of opportunity. Of course, certain repairs may be important or even necessary. The best way to determine where to spend your time – and your money – is to work with a real estate advisor to confirm which improvements are truly needed and which ones aren't likely to be deal-breakers for buyers.

2. Buyers May Be Willing To Take on Projects When They Purchase Your House

Today, many buyers are more willing to take on home improvement projects themselves to get the house they're after, even if it means putting in a little extra work. A recent survey from Freddie Mac finds that:

". . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations."

If more buyers are willing to tackle repairs on their own, it may be wise to let the future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. Depending on the structural condition of your house, your efforts may be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior to make sure the home stands out. Instead of over-investing in upgrades, the buyer may change anyway, work with a real estate professional to determine the key projects to tackle that will give you the greatest return on your investment.

3. Your Agent Will Help You Spotlight the Upgrades You've Made

Over the past year, many people made a significant number of updates to their homes. The most recent State of Home Spending report finds:

"Home improvement spending rose 25% year-over-year to $10,341. Homeowners who invested in home improvement did an average of 3.7 projects, up from 2.7 in 2020, . . ."

With more homeowners taking on more projects in the past 12 months, there's a good chance you've already made updates to your home that could appeal to buyers. If that's the case, your real estate advisor will find ways to highlight those upgrades in your listing.

The same is true for any projects you invest in moving forward. No matter what, before you renovate, contact a local real estate professional for expert advice on what work needs to be done and how to make it as appealing as possible to future buyers. Every home is different, so a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.

Bottom Line

In today's sellers' market, it's important to spend your time and money wisely when you're getting ready to move. Work with a real estate advisor to find out where to target your efforts before you list. 

February
4

 

There's a lot to consider when selling your home, from the market and appraisals to where you'll go next. Don't forget, however, that design is also a key factor. It's often one of the first things buyers notice when they walk into a home, and it's also a detail that you, as a seller, can easily control.

According to Realtor.com's 2022 housing market forecast, home for-sale inventory will increase from last year, as will the projected number of overall sales.1 This means, if you're looking to sell in the near future, now is the time to consider how you can stand out.

Updating your home design is one way to do that. Changes like new security features or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.

Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate a property, give us a call. We can help you realize your vision and maximize the impact of your investment.

Eco-Friendly Fixtures

Millennials account for the largest share of current homebuyers, according to the National Association of Realtors.2 Sustainable living tops the list of priorities for this generation. A recent Deloitte survey found that nearly one-third of millennials initiate or deepen their consumer investment in products or services that help the environment—this also includes the houses they choose to live in.3

Here are a few eco-friendly design features that will be attractive to these millennial buyers in 2022. Bonus, they can net a significant return on investment (ROI) for you, as a seller, too.

  • Energy-Efficient Windows: Heat gain or loss from low-performance windows drives 25–30 percent of home heating and cooling costs, according to gov.4 Therefore, energy-efficient windows can help homeowners save money.
  • Low-Flow Water Fixtures: According to the EPA, replacing your shower head with one that's labeled with WaterSense can save four gallons of water with each shower.5 Doing the same with your faucet can save 700 gallons per year. This leads to cost savings and environmental support.
  • Native Landscaping: According to the American Society of Landscape Architects, 58 percent of members report increased client demand for native trees and plants as a means to combat biodiversity loss from climate change..6 Enhance the eco-friendly appeal of your home with some native plants in the front yard.

Wellness Retreat Nooks

The pandemic has had a significant impact on mental health. For example, in an effort to prioritize mental health, many people are relocating to quieter, more peaceful homes, with 22 percent of city dwellers planning a move to less congested residential areas, according to the Home Improvement Research Institute's (HIRI) 2021 Insights Summit.7

However, no matter where you live, you can still intrigue buyers by jumping on this trend. At-home wellness amenities, which were once viewed as luxuries, are now on many homeowners' must-have lists. Indoor spaces that function as a retreat for wellness and self-care have become extremely popular, according to HIRI.

Improve your quality of life in your home with reading nooks, spa-inspired bathrooms, and exercise or meditation spaces. Even if your house doesn't have the square footage to section off an entire room for relaxation, making simple tweaks to natural light, air purifiers, and indoor plants can help you feel better in your home now while enabling future buyers to see the opportunity for their own space.

Calming Paint Colors

Paint colors that produce a calming atmosphere will also be a key selling point in 2022. Soft earth tones and natural hues will prevail this year, including various shades of blue, green,  brown, and beige. Recent research suggests steering clear of trendy paint colors in favor of a more classic palette to bring the feel of nature indoors in a subtle and soothing way.8 

In fact, the same research found that buyers are often willing to pay an extra $4,698 for a house with a light blue bathroom or an extra $1,491 for a house with a dark blue bedroom. Another crowd-pleasing hue to refresh the walls with is BEHR's 2022 paint color of the year, known as Breezeway.9

This shade of green with silver undertones was created to mimic sea glass. As the BEHR website describes it, Breezeway "evokes feelings of coolness and peace, while representing a desire to move forward and discover newfound passions." 

Home Safety Features

Buyers want peace of mind more now than ever before. According to a 2021 survey from the American Institute of Architects, members report seeing an increase in the popularity of these home safety features10

  • Emergency backup power generation
  • Accommodations for multiple generations
  • Wider accessible doorways and hallways
  • Home security monitoring equipment
  • Interior ramps and home elevator features

Consider how you can build home safety features like these into the design of your home to enhance your quality of life now and attract more buyers later. For example, you could install a backup generator in the garage and sell it with the house or update your major doorways to be wider.

Before making an investment in expensive home safety upgrades, contact us. We can help you determine what will deliver the greatest ROI for your location and goals.

Designated Work Spaces 

It may come as no surprise that after the pandemic, 63 percent of homebuyers want their next house to feature room for a designated office, according to the National Association of Home Builders.11 In addition, 70 percent of these buyers want the office to be at least 100 square feet (or a 10x10 room).    

If you can, consider turning a bedroom or a den into a work-from-home office. When designing the space, make it both functional and aesthetically pleasing. Position a desk near the window for natural light, install a bookshelf unit, arrange a few succulents on the work surface, and hang a few framed posters or a cork bulletin board on the wall. You want the space to foster productivity as well as be a place in your home you enjoy spending time.

When you get ready to sell, we can help you highlight your designated work space. Given the high demand for this design feature, it can help you interest more buyers and attract more competitive offers—if marketed creatively.

Luxury Kitchen Retouches

The kitchen has always been a main focal point of interior design, and that's no different in 2022. Families will always need this space to come together in their own homes.

This year's buyers want a kitchen with new upgrades and retouches, but you don't have to renovate the entire kitchen to make an impact. If you're not sure where to start, here are a few tips on how to create a kitchen that buyers will love without spending too much money on renovations:

  • Repaint the kitchen, keeping the calm and nature-inspired colors in mind that are most popular right now. Taking a kitchen from dark to light by painting cabinets and walls can make all the difference.
  • Update the hardware. These kitchen "accessories" stand out and add personality to an otherwise standard kitchen.
  • Update light fixtures to bring in more light while also adding a fresh look and feel to the space.

Unique Accent Walls

In a recent interview with the National Association of Realtors, Brian Santos, the director of education for Fresh Coat Painters, explains that bold, unique accent walls are trendy right now.12 An accent wall gives a home character while maintaining the calming feel of natural- and neutral-colored walls.

Santos also explains that this is part of a design aesthetic that draws inspiration from the Roaring Twenties, and it's likely to remain a sought-after home feature in 2022. Here are some bold colors to consider for your home's accent walls:

  • Solid black
  • Jewel or metallic tones
  • Textured wallpaper
  • Painted ceilings
  • Built-in shelves

If you're planning to sell in the next year, talk to us before adding an accent wall. Depending on your target buyer, it may be a design feature that actually hurts your home's value. We can run a free Comparative Market Analysis on your home to help you understand what would resell best in your neighborhood.

Exterior Siding Updates

A new exterior siding refresh is one of the most affordable renovation projects you can do to help increase a home's resale value. The average cost is just $12 per square foot, but higher-end material options can push costs closer to  $50 per square foot.13 What's more, there are many siding materials available, from fiber-cement, brick, and wood to vinyl, metal, and stone. 

While all these options can infuse the exterior with character and add curb appeal, fiber-cement and vinyl deliver the highest ROI. In fact, according to a 2021 Cost vs. Value Report, a vinyl siding replacement can boost resale value by $11,315 (68.3 percent cost recoup), and a fiber-cement siding replacement can boost resale value by $13,618 (69.4 percent cost recoup).14

Give your home this simple, affordable, and attractive facelift before putting it on the market. If you're not sure how to get started yourself, our team can connect you with a trusted vendor to guide you through the process.

Keep These Home Design Features on Your Radar in 2022

These design features can infuse personality into your home while helping to close the deal if you plan to sell in 2022. The average buyer knows just what they're looking for in a space they plan to call home, so with some investment and foresight, you can give your house an edge over the competition—and boost resale value in the process.

However, you don't need to make all these changes to attract more buyers. We can help you determine which design features you should add to your home by sharing insights and tips on how to maximize the return on your investment. We can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact us to schedule a free consultation!

Sources:

  1. Realtor -
    https://www.realtor.com/research/2022-national-housing-forecast/
  2. National Association of Realtors -
    https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends
  3. Deloitte -
    https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf
  4. gov -
    https://www.energy.gov/energysaver/update-or-replace-windows
  5. gov -
    https://www.epa.gov/watersense/about-watersense
  6. American Society of Landscape Architects -
    https://www.asla.org/NewsReleaseDetails.aspx?id=60427
  7. Home Improvement Research Institute -
    https://www.hiri.org/blog/4-major-home-wellness-trends-from-hiri-summit-speaker-dr-jie-zhao
  8. Zillow -
    http://zillow.mediaroom.com/2021-07-15-Homes-With-Light-Blue-Bathrooms,-Dark-Blue-Bedrooms-Could-Sell-for-Up-to-4,698-More-Than-Expected
  9. Behr -
    https://www.behr.com/colorfullybehr/behr-announces-2022-color-of-the-year-and-trends-palette/
  10. American Institute of Architects -
    http://info.aia.org/AIArchitect/2021/0910/aia-interactive/index.html#
  11. National Association of Home Builders -
    ​​https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2021/special-study-what-home-buyers-really-want-march-2021.pdf?_ga=2.188050984.1824982414.1639512139-1247360189.1639512139
  12. National Association of Realtors -
    https://www.nar.realtor/blogs/styled-staged-sold/hot-home-trend-the-accent-wall-is-back
  13. Forbes -
    https://www.forbes.com/advisor/home-improvement/how-much-does-siding-cost-to-install/

Remodeling Magazine -
https://www.remodeling.hw.net/cost-vs-value/2021/

January
18

If you're trying to decide when to list your house, the time is now. There are plenty of buyers eagerly waiting for your home to hit the market.

The latest data indicates home showings are rising. There are more buyers than homes for sale right now. That means you'll likely receive multiple offers, and your home won't be on the market long.

Today's market favors sellers. If you're ready to move, reach out to one of our real estate professionals to discuss the benefits you can expect when you sell this season.

Resources: ShowingTime, realtor, NSR, Keeping Current Matters

November
2

In today's hyper-competitive market, buyers are often willing to overlook cosmetic or minor repair needs if it means snagging a home in their price range.

With so few houses available for sale today, you may be able to skip the bigger renovations before you sell and cash in on the current demand for your house.

If you're ready to move, reach out to one of our Montague Miller & Co real estate professionals to determine your best next steps in this sellers' market.

September
15

How long have you lived in your current home? If it's been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That's a long time to time to be in one place, considering the average length of time homeowners used to stay put hovered closer to 6 years. 

With today's changing homebuyer needs, especially given how the current health crisis has altered our daily lifestyles, many homeowners are reconsidering where they're at and thinking about moving to a home with more space for their families. Here's why it might be a great time to make that happen.

The real estate market has changed in many ways over the past 10 years, and current homeowners are earning much more equity today than they used to have. According to CoreLogic, in the first quarter of 2020 alone, the average homeowner gained approximately$9,600 in equity. If you're considering selling your house right now, you may have accumulated more equity to put toward a move than you realize.

Dialing back 10 years, many homeowners also locked in a fairly low mortgage rate. In 2010, the average rate was only 4.09%. This motivated homeowners to stay in their houses longer than usual to keep their rate low, rather than moving. Just last Thursday, however, average mortgage rates hit a new historic low at 2.86%. Sam Khater, Chief Economist at Freddie Mac explains:

"Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery…These low rates have ignited robust purchase demand activity, which is up twenty-five percent from a year ago and has been growing at double digit rates for four consecutive months."

Ten years ago, we couldn't have imagined a mortgage rate under 3%. Looking at the math today, making a move into a new home and locking in a significantly lower rate than you have now could save you greatly on a monthly basis, and over the life of your loan. See Chart below:

Is Now a Good Time to Move? | Keeping Current Matters

 

As the example shows, you can save a substantial amount every month if you qualify for today's low mortgage rate, and the savings can really add up over the life of a 30-year fixed-rate loan.

In summary,

As a homeowner, you have a huge opportunity to move up right now. Whether you want to save more each month or get more home for your money based on your family's changing needs, it's a great time to reach out to a local Montague Miller real estate professionals in your area. Buyers are actively looking for more homes to buy, and you can win big by making a move if the time is right for you.

Research shared by Keeping Current Matters

August
23

The Answer is YES! Here's a breakdown of why it's a great time to capitalize on equity gain in today's market.

We're sitting in an optimal moment in time for homeowners who are ready to sell their houses and make a move this year. Today's homeowners are, on average, staying in their homes longer than they used to, and this is one factor driving increased homeowner equity. When equity grows, selling a house becomes increasingly desirable. 

As average homeowner tenure lengthens and home prices rise, equity, a form of forced savings, can be applied forward to the purchase of a new home. CoreLogic explains: 

"Over the past 10 years, the equity position of homeowners has positively changed as a result of more than eight years of rising home prices. As the economy climbed out of the recession in the first quarter of 2010, 25.9% or 12.1 million homes were still underwater, compared to the first quarter of 2020 when the negative equity share was at 3.4%, or 1.8 million properties. Borrowers have seen an aggregate increase of $6.2 trillion in home equity since the first quarter of 2010 and the average homeowner has gained about $106,100 in equity."

Increasing equity is enabling many homeowners who are ready to sell their current houses today to sell for an increased profit, and then reinvest their earnings in a new home. According to the Q2 2020 U.S. Home Sales Report from ATTOM Data Solutions, in the second quarter of 2020:

"Home sellers nationwide realized a gain of $75,971 on the typical sale, up from the $66,500 in the first quarter of 2020 and from $65,250 in the second quarter of last year. The latest figure, based on median purchase and resale prices, marked yet another peak level of raw profits in the United States since the housing market began recovering from the Great Recession in 2012."

If you've been taking a closer look at your house recently and are thinking it might be time for you to make a move, determining your equity position is a great place to start. Understanding how much equity you've earned over time can be a key factor in helping you realize the potential profits in your real estate investment and move toward your next homeownership goal.

Summing up...

With average home sale profits growing, it's a great time to leverage your equity and make a move, especially while the inventory of houses for sale and mortgage rates are historically low. If you're considering selling your house, contact a Montague Miller & Co real estate professional today so you can better understand your home equity position and take one step closer to the home of your dreams.

Research shared by Keeping Current Matters

 

June
29

May
21

One of the biggest questions we all seem to be asking these days is: When are we going to start to see an economic recovery? As the country begins to slowly reopen, moving forward in strategic phases, business activity will help bring our nation back to life. Many economists indicate a recovery should begin to happen in the second half of this year. Here's a look at what some of the experts have to say.

Jerome Powell, Federal Reserve Chairman

"I think there's a good chance that there'll be positive growth in the third quarter. And I think it's a reasonable expectation that there'll be growth in the second half of the year… So, in the long run, I would say the U.S. economy will recover. We'll get back to the place we were in February; we'll get to an even better place than that. I'm highly confident of that. And it won't take that long to get there."

Nonpartisan Analysis for the U.S Congress

"The economy is expected to begin recovering during the second half of 2020 as concerns about the pandemic diminish and as state and local governments ease stay-at-home orders, bans on public gatherings, and other measures. The labor market is projected to materially improve after the third quarter; hiring will rebound and job losses will drop significantly as the degree of social distancing diminishes."

Neel Kashkari, President, Minneapolis Federal Reserve Bank

"I think we need to prepare for a more gradual recovery while we hope for that quicker rebound."

We're certainly not out of the woods yet, but clearly many experts anticipate we'll see a recovery starting this year. It may be a bumpy ride for the next few months, but most agree that a turnaround will begin sooner rather than later.

During the planned shutdown, as the economic slowdown pressed pause on the nation, many potential buyers and sellers put their real estate plans on hold. That time coincided with the traditionally busy spring real estate season. As we look ahead at this economic recovery and we begin to emerge back into our communities over the coming weeks and months, perhaps it's time to think about putting your real estate plans back into play.

The experts note a turnaround is on the horizon, starting as early as later this year. If you paused your 2020 real estate plans, reach out to a local real estate professional at Montague Miller & Co today to determine how you can re-engage in the process as the country reopens and the economy begins a much-anticipated rebound.

Previously Published by Keeping Current Matters

May
11

 

Will Home Values Appreciate or Depreciate in 2020? | MyKCM

With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market's demand for that item.

Each month the National Association of Realtors (NAR) surveys "over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions" for the REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.

Buyer Demand

The map below was created after asking the question: "How would you rate buyer traffic in your area?"

Will Home Values Appreciate or Depreciate in 2020? | MyKCM

The darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, buyer demand is now 'strong' and 16 of the 50 states have a 'stable' demand.

Seller Supply

The index also asks: "How would you rate seller traffic in your area?"

Will Home Values Appreciate or Depreciate in 2020? | MyKCM

As the map above indicates, 46 states and Washington, D.C. reported 'weak' seller traffic, 3 states reported 'stable' seller traffic, and 1 state reported 'strong' seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now.

With demand still stronger than supply, home values should not depreciate.

What are the experts saying?

Here are the thoughts of three industry experts on the subject:

        Ivy Zelman:

"We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through the year."

Mark Fleming, Chief Economist, First American:

"Housing supply remains at historically low levels, so house price growth is likely to slow, but it's not likely to go negative."

       Freddie Mac:

"Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand."

Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you're thinking about listing your home, let's connect to discuss how you can capitalize on the somewhat surprising demand in the market now. Get in touch with a Montague Miller & Co REALTOR® today!

May
11

 

Why Home Equity is a Bright Spark in the Housing Market | MyKCM

Given how we have seen more unemployment claims than ever before over the past several weeks, fear is spreading widely. Some good news, however, shows that more than 4 million initial unemployment filers have likely already found a new job, especially as industries such as health care, food and grocery stores, retail, delivery, and more increase their employment opportunities. Breaking down what unemployment means for homeownership, and understanding the significant equity Americans hold today, are important parts of seeing the picture clearly when sorting through this uncertainty.

One of the biggest questions right now is whether this historic unemployment rate will initiate a new surge of foreclosures in the market. It's a very real fear. Despite the staggering number of claims, there are actually many reasons why we won't see a significant number of foreclosures like we did during the housing crash twelve years ago. The amount of equity homeowners have today is a leading differentiator in the current market.

Today, according to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity. That number is drastically different  than it was in 2008 when the housing bubble burst. The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their homes were worth. Homeowners simply walked away at that point. Now, 42.1% of all homes in this country are mortgage-free, meaning they're owned free and clear. Those homes are not at risk for foreclosure (see graph below):

Why Home Equity is a Bright Spark in the Housing Market | MyKCM

In addition, CoreLogic notes the average equity mortgaged homes have today is $177,000. That's a significant amount that homeowners won't be stepping away from, even in today's economy (see chart below):

Why Home Equity is a Bright Spark in the Housing Market | MyKCM

 

In essence, the amount of equity homeowners have today positions them to be in a much better place than they were in 2008.

The fear and uncertainty we feel right now are very real, and this is not going to be easy. We can, however, see strength in our current market through homeowner equity that has not been there in the past. That may be a bright spark to help us make it through.

April
30

 

How Buyers Can Win By Downsizing in 2020 | MyKCM

Home values have been increasing for 93 consecutive months, according to the National Association of Realtors. If you're a homeowner, particularly one looking to downsize your living space, that's great news, as you've likely built significant equity in your home.

Here's some more good news: mortgage rates are expected to remain low throughout 2020 at an average of 3.8% for a 30-year fixed-rate loan.

The combination of leveraging your growing equity and capitalizing on low rates could make a big difference in your housing plans this year.

How to Use Your Home Equity

For move-up buyers, the typical pattern for building financial stability and wealth through homeownership works this way: you buy a house and gain equity over several years of mortgage payments and price appreciation. You then take that equity from the sale of your house to make a down payment on your next home and repeat the process.

For homeowners ready to downsize, home equity can work in a slightly different way. What you choose to do depends in part upon your goals.

According to Housing Wire.com, for some, the desire to downsize may be related to retirement plans or children aging out of the home. Others may be choosing to live in a smaller home to save money or simplify their lifestyle in a space that's easier to clean and declutter. The reasons can vary greatly and by generation. 

Those who choose to put their equity toward a new home have the opportunity to make a substantial down payment or maybe even to buy their next home in cash. This is incredibly valuable if your goal is to have a minimal mortgage payment or none at all.

A local real estate professional can help you evaluate your equity and how to use it wisely. If you're planning to downsize, keep in mind that home prices are anticipated to continue rising in 2020, which could influence your choices.

The Impact of Low Mortgage Rates

Low mortgage rates can offset price hikes, so locking in while rates are low will be key. For many downsizing homeowners, a loan with a shorter term is ideal, so the balance can be reduced more quickly.

Interest reates on 10, 15, and 20-year loans are lower than the rates on a 30-year fixed-rate loan. If you're downsizing your housing costs, you may prefer a shorter-term loan to pay off your home faster. This way, you can save thousands in interest payments over time.

_______

If you're planning a transition into a smaller home, the twin trends of low mortgage rates and rising home equity can kickstart or boost your plans, especially if you're anticipating retirement soon or just want to live in a smaller home that's easier to maintain. Get together today with one of our professional real estate agents at Montague Miller & Co REALTORS® to explore your options.

Previously published in Keeping Current Matters

April
14

Every day that passes, people have a need to buy and sell homes. That doesn't stop during the current pandemic. If you've had a major life change recently, whether with your job or your family situation, you may be in a position where you need to sell your home – and fast. While you probably feel like timing with the current pandemic isn't on your side, making a move is still possible. Rest assured, with technology at your side and fewer sellers on the market in most areas, you can list your house and make it happen safely and effectively, especially when following the current COVID-19 guidelines set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).

You may have a new baby, a new employment situation, a parent who moved in with you, you just built a home that's finally ready to move into, or some other major part of your life that has changed in recent weeks. Buyers have those needs too, so rest assured that someone is likely looking for a home just like yours.

According to the NAR Flash Survey: Economic Pulse taken April 5 – 6, real estate agents indicate, not surprisingly, that there's a noticeable decline in current homebuyer interest. That said, 10% of agents said in the same survey that they saw no change or even an increase in buyer activity. So, while buyer interest is low compared to normal spring markets, there are still buyers in the market. Don't forget, you only need one buyer – the right one for your home.

Here's the other thing – people are spending a lot of time on the Internet right now, given the stay-at-home orders implemented across the country. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers too. Homes are being sold in many markets.

There Is Less Competition Right Now

The same survey indicates that 56% of NAR members said sellers are removing their homes from the market right now. This can definitely work in your favor. If other sellers are removing their listings, your home has a better chance of rising to the top of a buyer's search list and being seen. Keep in mind, listings will pick up again soon, as 57% of the respondents note that sellers are only planning to delay the process by a couple of months. If you need to sell right now, don't wait for the competition to get back into the market again.

This year, delayed listings from the typically busy spring season will push into the summer months, so more competition will be coming to the market as the pandemic passes. Getting ahead of that wave now might be your biggest opportunity.

Your Trusted Real Estate Advisor Can Help

Real estate agents are working hard every single day under untraditional circumstances, utilizing technology to help both buyers and sellers who need to continue with their plans. We're using virtual tours to show homes currently on the market, staying connected with the buyers and sellers through video chats, and leveraging resources to complete transactions electronically. We're making sure the families we support remain safe and can keep their real estate needs on track, especially as life is changing so rapidly.

Bottom Line

Homes are still being bought and sold in the midst of this pandemic. If you need to sell your house and would like to know the current status in your local market, contact one of Montague Miller & Co's estate professionals to create a safe and effective plan that works for you and your family.

December
3

 
Around this time each year, many homeowners decide to wait until after the holidays to list their houses. Others who already have their homes on the market remove their listings until the spring. Let's consider reasons why listing your house now or keeping it on the market this winter may be a good choice.
 
Here are seven great reasons not to wait:
 
1) Relocation buyers are out there now. Many companies are still hiring throughout the holidays, and they need their new employees to start as soon as possible.
 
2) Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now.
 
3) You can restrict the showings on your home to days and times that are most convenient for you. You will remain in control.
 
4) Homes show better when decorated for the holidays.
 
5) There is minimal competition for you as a seller right now. Over the last few months of the year the supply of homes for sale decrease.
 
6) The desire to own a home doesn't stop during the holidays.
Buyers who were unable to find their dream homes during the busy spring and summer months are still searching, and your home may be the answer.
 
7) Late fall and early winter make up the "sweet spot" for sellers. The supply of listings typically increases substantially after the holidays including new construction in early spring.
 
If you are considering putting your home on the market during the holiday season, reach out to one of our Montague Miller & Co real estate professionals to determine if selling now is your best move.
August
13

 

If you're thinking about selling your house, now is a great time to make your move and here's why.

There's no doubt that today's housing market is changing, and everything we see right now indicates it is time to sell. Here's a look at why selling now is likely to drive the greatest return on your largest investment.

Home values have been appreciating for several years now, growing at a strong, steady, and impressive pace. In fact, the average annual appreciation rate since 2012 has nearly doubled the average rate from the more normal market of the 1990s (think: pre-bubble).

Appreciation, however, is projected to shift back toward normal, meaning home prices will likely keep climbing over the next few years, but they are not projected to continue to increase at such a high rate.

Here's What That Means for Homeowners:

As noted in the latest Home Price Expectation Survey (HPES) powered by Pulsenomics, experts forecast an average annual appreciation rate closer to 3.2% over the next five years, which is more in line with a historically normal market (3.6%). The good news is, there's still time to take advantage of the current strength of home prices by selling your house now.

If you're thinking about selling your house, now is a great time to make your move. Don't get stuck waiting until projected home price appreciation rates potentially re-accelerate again in 2023. You'll likely earn the greatest return on your investment by selling now before the prices start to normalize next year.

 

First Published by Keeping Current Matters August 11, 2019

April
4

Highlights:

  • When listing your house for sale your top goal will be to get the home sold for the best price possible!
  • There are many small projects you can do yourself to ensure this happens!
  • Your Montague Miller & Co real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!
November
28

 

In today's housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.

If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth, and an appraiser's evaluation of that same home.

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges anyone looking to buy or sell in today's market to remember the impact of this challenge:

"Based on the HPPI, it appears homeowners in the markets where prices are rising faster than the national average – like Denver, Seattle and San Francisco – are continuing to underestimate just how quickly home values are rising, so the average appraisal is higher than homeowner estimate.  On the inverse of that, homeowners in areas where the values aren't rising as fast may think they are rising faster than they are, leading to the appraisal lagging the estimate."

The chart below illustrates the changes in home price estimates over the last 12 months.

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank's appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, your experienced Montague Miller & Co REALTOR® will be able to guide you through this and any other obstacles that may arise.

September
26

Good News!

Freddie MacFannie Mae, and The Mortgage Bankers Association are all projecting that home sales will increase in 2018. The chart below is showing what each entity is projecting in sales for the remainder of this year and the next. 

As we can see, each entity is projecting sizable increases in home sales next year. It looks like an optimistic market for 2018!


August
9

When listing your house for sale, your top goal will be to get the home sold for the best price possible! There are many small projects that you can do to ensure this happens from improving your curb appeal to giving it that "homey" feeling.

Montague Miller's REALTORS® will help guide you through the process with a list of specific suggestions for getting your house ready for market.  Many are small projects you can do yourself and for those you need help with, they know the area and are prepared to be a great resource for finding local contractors who can help you make it happen!

Here are some tips to get you started.Tips for Preparing Your House for Sale

June
1

why now is a great time to list your house to sellIf 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:

Housing Supply Year-Over-Year | Keeping Current Matters

Anything less than a six-month supply is considered a "Seller's Market".

Bottom Line

Meet with a local real estate professional who can show you the supply conditions in your neighborhood and assist you in gaining access to the buyers who are ready, willing and able to buy now!

 
March
16

hidden home equity

 

CoreLogic released their 2015 2nd Quarter Equity Report which revealed that 759,000 properties had regained equity in the last quarter. That means that 91% of allmortgaged properties (approximately 45.9 million) are now in a positive equity position. Anand Nallathambi, president and CEO of CoreLogic, reported:

"For much of the country, the negative equity epidemic is lifting. The biggest reason for this improvement has been the relentless rise in home prices over the past three years which reflects increasing money flows into housing and a lack of housing stock in many markets."

Obviously, this is great news for the financial situation of many homeowners.

But, do they realize their equity position has changed?

recent study by Fannie Mae suggests that many homeowners are unaware that their equity position has changed…in some cases dramatically. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, only 9% of homes are in that position.

The study also revealed that, though 69% of homes had "significant equity" (greater than 20%), only 37% of Americans realize it.

Significant Equity | Keeping Current Matters

This means that 32% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Fannie Mae spoke out on this issue in their report:

"Homeowners who underestimate their homes' values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes."

Bottom Line

Every homeowner should be aware of the true equity in their house and also realize the opportunities that go along with it. If you are unsure of the savings you currently have built up in your home, contact a real estate professional to help ascertain that number. You may be surprised.

March
11

Montague Miller Real Estate Feb 2016 Graphic

 
March
21

 
March
30

home prices in the next five years

 

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 3.9% by the end of 2015, 3.4% in 2016 and 3.1% in each of the following four years (as shown below). That means the average annual appreciation will be 3.2% over the next 5 years.

Projected Mean Appreciation | Keeping Current Matters

The prediction for cumulative appreciation rose from 18.1% to 21.6% by 2020. Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 13.8%.

Cumulative House Appreciation | Keeping Current Matters

Bottom Line

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

March
2

how to get the most money from sale of your house title graphicEvery homeowner wants to make sure they maximize the financial reward when selling their home. But, how do you guarantee that you receive maximum value for your house? Here are two keys to insuring you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive. However, let's look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house. (see chart)

Impact of Price on Visibility | Keeping Current Matters

Instead of the seller trying to 'win' the negotiation with one buyer, they should price it so demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price but instead will have multiple buyers fighting with each other over the house.

In a recent article on realtor.com, they gave this advice:

"Aim to price your property at or just slightly below the going rate. Today's buyers are highly informed, so if they sense they're getting a deal, they're likely to bid up a property that's slightly underpriced, especially in areas with low inventory."

2. Use a Real Estate Professional

This too may seem counterintuitive. The seller may think they would net more money if they didn't have to pay a real estate commission. Yet, studies have shown that typically homes sell for more money when handled by a real estate professional.

Recent research posted by the Economists' Outlook Blog revealed:

"The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900. However, homes that were sold with the assistance of an agent had a median selling price of $249,000 – nearly $40,000 more for the typical home sale."

Median Selling Price FSBO vs Agent | Keeping Current Matters

Bottom Line

Price it at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.

May
25

house still hasn't sold? take a look at priceThe residential housing market has been hot. Home sales have bounced back solidly and are now at their second highest pace since February 2007. Demand remains strong going into the winter. Many real estate professionals are reporting that multiple offers are occurring regularly and listings are actually selling above listing price. What about your house?

If your house hasn't sold, it is probably the price.

If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prospective buyers that will even see your house. (See Chart)

Proper Pricing Pyramid | Keeping Current Matters

Bottom Line

The housing market is hot. If you are not seeing results you want, sit down with your agent and revisit the pricing conversation.

 
May
11

selling home negotiate

Now that the market has showed signs of recovery, some sellers may be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller must realize their ability to negotiate will determine whether they can get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to 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 termite company if there are challenges
  • The buyer's lender if the structure of the mortgage requires the sellers' participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the COs permits mentioned above
  • The buyer's buyer in case there are challenges on the house your buyer is selling
  • Your bank in the case of a short sale

Bottom Line

The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process.