Homesnap predicts homebuying demand will remain hot and inventory will continue to decline in 2021 — unless sellers can be enticed to enter the market.

As buyers have flooded the market in droves in an attempt to find their ideal home while sheltering in place during the pandemic, inventory has continued to decline while median sales prices have inched upwards.

Based on an analysis of data from 2018 through 2020, real estate technology solutions company Homesnap has released market predictions for 2021 suggesting that homebuying demand will remain hot and inventory will continue to decline — unless sellers can become enticed enough by rising prices to reenter the market.

Homesnap’s analysis shows that homeselling continues to outpace the number of new listings brought to the market each month. In October 2020, there was only a 0.22 percent increase in the total number of new listings year over year. In contrast, the number of total sales increased 19.29 percent year over year.

As a result of overwhelming homebuyer demand, home prices have continued to rise over the past several months. The average sold close price (a figure Homesnap identifies as the average list price for properties that have sold) increased a whopping 6.7 percent between September 2020 and October 2020.

Moving into 2021, Homesnap anticipates that market demand will continue to be strong and follow the traditional increase in activity that comes with the spring season. However, that activity can only remain strong as long as there is ample inventory to support it, which remains uncertain. Still, with prices on the rise, it’s possible more sellers will be drawn to market with the promise of earning a bit more on the sale than they may have otherwise expected.

“As median home prices continue to soar, homeowners who may have been interested in selling in the next three to five years may list their homes sooner, freeing up more inventory,” Homesnap’s report reads.

And as buyers continue to move away from cities to more spacious and suburban areas, Homesnap foresees those markets staying competitive in the new year as well.

With these factors in mind, Homesnap Founder Guy Wolcott advised homebuyers to be flexible in their search, be realistic about their budget and to continue to review new listings as soon as they appear.

“To land a home in a competitive market, you need to be ready to make a decision quickly,” Wolcott said. “Decide in advance which features you are willing to compromise on so that you can be as flexible as possible when it comes to moving forward with a property. Waiting days to make a decision may take you out of the running. Act decisively, with your agent’s counsel.”

Buying a new home is sort of like buying a new car where both are typically larger ticket items and make for a very exciting time of your life. However, as a home purchase will most likely be one of the single most expensive things you will ever buy, it is imperative that you don’t overlook some very important steps before you submit any offers to purchase. Here are some typical things that get overlooked that you want to be sure you don’t miss for your next home purchase.

Neighborhood Research

Other than making sure that the location works for schools, commute to work and necessary services, it is a good idea to go above and beyond. It is recommended that you make a few visits to the neighborhood during different times of day. It is also smart to walk around and talk to the neighbors to get an accurate feel for the area. 

Homeownership Expenses

Very often buyers will only project monthly costs like mortgage and utilities. However buyers should forecast all expenses that go into caring for the home including landscaping, pool maintenance, pest control and the like. In some cases operating costs are made available by the seller which can help you budget otherwise finance experts suggest that you set aside 1% of the home’s value per year for repairs and maintenance. 

Homeowners Association

Not all associations are created equal. This means that each will have their own set of rules to abide by and their own budgets. You will want to investigate some things like if there are any large assessments that are coming up or if there are many homeowners that are delinquent on their dues. Delinquencies can have a big impact on necessary repairs that may need to be made. 

Resale Value

Not everyone has a firm grasp on how long they think they will spend in the home they buy. Jobs change, families grow or other external factors may trigger a move at any given point in time. Therefore, check to see local trends in the market and how the particular neighborhood has fared over time. This can be an indication of how things may be if you decide to sell in years to come. A home may be ideal for you today, but you want to know you have options down the road if your situation should change. 

These days most everyone knows more than ever that our homes are our sanctuary. The thoughts about a home’s comfort and accommodations have been even more pronounced this year which is why I would like to share some ideas on how you can make your house even more accommodating and comfortable.

The lighting – Other than needing enough of it, lighting can really set the mood. Consider updating a chandelier over a kitchen table or adding some task lighting under your cabinets for better food prep. Try adding an accent floor lamp to any of your darker corners of your home.

Empty spaces – Does your home have an unused space or corner? Take advantage of those places and utilize it the best way you can. Ideas include setting up a comfortable chair and lamp for a reading nook or invest in nice looking shelves for some organized storage. You can never have too much!

Rugs/Antiques – An area rug always defines and warms up a space nicely. A runner can also add warmth and interest to your longer hallways. Need to spice up your walls? Antique items found at local shops or even crafts found online such as on Etsy.com can have great, unique options. 

Cabinets/hardware – For older cabinets that function well but are outdated consider painting them. A fresh coat of paint in a neutral color combined with new hardware can warm up a space and bring it into current times.

Molding/shutters – Adding some millwork to your rooms can certainly add interesting architectural flair. Molding for your ceilings is always a warm, “finished” look. For your window treatments, plantation shutters add great function and are considered a great value among buyers!

Doorstep/window box – The front of your home can set the stage for anyone who arrives. Warm things up and make it look inviting with adding some plants. Window boxes for both plants and flowers can be charming while potted trees or flowers on the doorstep work well too.

Light up the garden – Outdoor lights such as lanterns or party lights on your patio can make your outdoor space feel warm and cozy. Spot or flood lights for your front yard will add drama to your landscaping or your home’s features during the evening.

If you are motivated to prepare your home for sale in 30 days then you will need to craft a plan. Your master checklist will help you stay on track with your action items that includes employing a reliable team to complete what needs to be done and doing it in a well thought order. Here is a sample plan of what you can follow over a four week period if you are looking to sell soon.

Week One

Contact your real estate agent – One of the first things to do is contact your agent and get the ball rolling for the listing process. Get on your agent’s radar and discuss logistics.

Perform a walkthrough – Walk through your home with your agent. Have their professional eyes view your home as you decide on what needs to get done for listing.

Establish a list price – Confirm with your agent what the appropriate list price should be using the comps provided. 

Budget for updates – Based on the list of updates created during your walkthrough, put some dollar figures next to each item as you establish a budget for the projects.

Hire contractors – Schedule contractors for any items that need to be contracted out.

Week Two

Declutter – Eliminate as much excess as possible. Focus on your primary rooms like kitchen, main living areas, master and bathroom. If you must keep things then place them in well stacked bins and stow in secondary areas like a garage, carport or guest room.

Depersonalize – When decluttering you will want to remove all personal items including family photos, awards or anything monogrammed. Pack these away in closets or bins.

Update fixtures/hardware – Lighting fixtures and hardware on cabinets or vanities can be a small cost to replace. If you have worn or outdated ones, consider the small investment of replacement.

Remedy DIY projects – Squeaky doors, leaky faucets or ripped screens are all things you can usually tackle on your own. Save some money and address the issues that you can yourself.

Freshen paint – Touch up any glaring imperfections or repaint your kid’s bright pink bedroom to a neutral color that appeals to the masses. 

Stage – Show off your home’s best potential and set up your furniture accordingly. It may not serve you best to remove the leaf from your dining room table, but if it makes your home feel more accommodating then it is a wise idea.

Week Three

Purchase flowers – Flowers add life and interest. Pick up some seasonally appropriate flowers or small plants to fill in any gaps in your landscaping.

Mulch beds/plant – When planting flowers or shrubs add some fresh mulch to your beds to give a well maintained and manicured look. Bags of mulch are a cheap, easy way to elevate your home’s appearance.

Paint front door – As the main focal point for all visitors and buyers, freshen that entryway with a coat of paint.

Powerwash – Get rid of mold, pollen and grime off of walkways or patios.

Stage outdoor space – Everyone loves enjoying time outside just as much as inside. Set up a nice entertaining area with some furniture warmed up with an outdoor carpet.

Week Four

Deep clean – Once all of your projects and staging has been completed, it is time for a deep cleaning. Wipe down cabinets, window sills, appliances and even shelving.

Prepare for photos – Put away things like pet beds and put out things like a vase of flowers. Now is also a good time to make sure light bulbs match and consider which areas should be focused on for photos.

Finalize realtor – Complete all paperwork, disclosures and pull together all home warranties and the like that may be an asset to your home’s systems.

Finishing touches – Do a final scan of the home for any finishing touches like toss pillows or the like. Create a short list of action items to do to prep before each showing.

List! – Congratulations, you are now ready to list your home for sale!

As time goes on we are seeing shifts towards energy savings and efficiency across all industries and products. From fuel efficient and hybrid cars to energy saving models for a range of products. Nowadays we are seeing consumers show interest in eco-conscious home upgrades as they perform home improvement projects or are seeking a new home to purchase. If you are looking to invest in some of these upgrades at your current home, here are some helpful tips.

Sealing gaps

Some older homes may have more gaps or spots of weakness that should be sealed up. For us in South Florida, it is more about our AC seeping out that can be a loss of energy. One spot that often gets overlooked is can lights in the ceiling as a good amount of air can escape through them.

Insulate

In our climate insulating is key especially with roofs and coverings. Insulated roofs can help keep a barrier between the hot sun and your efforts in regularly cooling your home. 

Energy audit

One of the best ways to make sure you are addressing the most important areas in your home is to do a home energy audit. This would involve a professional to visit your home combined with a review of your utility bills. A recommendation would be made for how you can improve your home’s efficiency. These audits are sometimes offered by utility companies or third party vendors.

Doors/windows

If you have old doors or windows then it may be time for an upgrade. High impact, current models will often be more efficient than older more basic ones. On top of the energy savings you can also potentially save money on your insurance with high impact ones as well. 

Thermostat

Smart thermostats are where it is at. Being able to both program your thermostat but also control it from your phone regardless of your location will help you regulate your usage for what is needed. This should help you reduce your energy costs while increasing convenience. 

Ceiling fans

An already popular fixture here in South Florida, but ceiling fans can help cool the rooms you are using rather than increasing the AC output for the whole house. Be sure your key rooms like bedrooms or living rooms have them.

Tankless water heater

Simply stated a tankless water heater saves you money as it only operates as you use it. Those with tanks regularly heat throughout the day keeping a reserve warm for whenever you plan to use it.

Appliances

In your kitchen alone you can potentially make some big improvements with your appliances. Your refrigerator and dishwasher are good places to start as they are significantly more efficient than even just 15 years ago. Go one step further and check your toilets and shower heads for water efficiency too.

Despite the pandemic this year, home sales are still going strong with some speculating sales outpacing last year. As the real estate market has continued to thrive, what buyers are looking for has slightly been altered. While there are some basic necessities buyers wish to have, some are looking for other items as a result of pandemic life. Here is a look at some of these hot items so you can upgrade your Fort Lauderdale home if you are looking to sell in the near future.

Outdoor space

With more time spent at home these days buyers are looking to extend their square footage of living space. This includes maximizing outdoor spaces for full enjoyment. Take a look at your outdoor space for aesthetics and for function. Area rugs can be helpful for defining a gathering space and a low cost outdoor heater can help during those few cooler winter evenings. A fire pit could also provide options for cooler evenings. 

Home office space

The trend to do work from home has been increasing and will more than likely be more common post the pandemic. Given this pattern, having some designated working space within your home is helpful. You could add desk space to a guest room or in one of your home’s nooks. There are desks of all shapes and sizes where you can get creative depending on your space. 

Separate spaces

Most everyone loves an open floor plan, but being able to section off some areas is still important. Barn doors, curtains or room dividers can be easy solutions to give your home’s occupants more privacy and cut down on noise.

Home gym

Maintaining your physical health is important so creating a place to exercise is key. Guest rooms, larger garages or even screen rooms can be great ideas. However, if your home is short on space you can even designate a portion of a room. Fold up stationary bikes, yoga mats or your other favorite workout equipment like dumbbells can be neatly organized for your home gym. Showing buyers that you have space for this option can help them visualize how they can use the space with what they like to workout with.

Guest room

Showcasing your guest room or additional living space can be an enticing option for buyers these days. Multigenerational households or those looking to get additional rental income from a friend or roommate will be excited to see these great accommodations. 

Do you have more questions about home updates that are great for selling? Contact me today.