In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.

According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values will continue climbing into next year. Today, low inventory is largely keeping prices from depreciating. Danielle Hale, Chief Economist at realtor.com, notes:

“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.”

When it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.

How to Price Your Home
As a seller, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. You’re thinking, higher price, greater profit, right? But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers and have them looking at the houses your neighbors are selling instead.
Even today, when the advantage tips toward sellers because there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running in the other direction if it isn’t priced just right.

A Trusted Real Estate Professional Will Help
It’s important to make sure your house is priced correctly by working in partnership with a trusted real estate professional (like Andy). When you price it competitively, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the home, and that’s what ultimately increases the final sale price.

The key is making sure your house is priced to sell immediately. That way, it will be seen by the most buyers. More than one of them may be interested, and your house will be more likely to sell at a competitive price.
Bottom Line

If you’re thinking about listing your house this fall, contact Andy to help you price it right so you can maximize your exposure and your return.

Property values have been continuing to rise for years now and despite the pandemic the number of home sales has as well. This all plays into the fact that homeownership is one of the greatest ways to invest into your financial future. Building home equity can act similarly to a forced savings plan as your home appreciates. Even before the current pandemic home equity was on the rise and now it has continued. This bodes well for giving sellers more options while encouraging buyers to enter the game. 

According to CoreLogic, here is what a recent report has shared after the midpoint of this year:

“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $620 billion since the second quarter of 2019, an increase of 6.6%, year over year.” 

Additionally, here is what their Chief Economist has stated:

“The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”

What this means is that many homeowners may have even more invested in their homes than they may realize. This information can be helpful to know for anyone who owns, or is looking to buy or sell.

Current Owners

For those who currently own their home the increase in equity can mean a few things. For those looking to renovate then they could potentially have an easier time doing a home equity line of credit to finance home improvement projects. Alternatively, anyone looking to purchase a second home could potentially refinance, pull out some equity and use it towards their next home purchase.

Sellers

For those looking to sell in the near future, this can yield some options. The increased equity will mean more cash for them whether they are looking to afford a larger property or more comfortably downsize to a smaller home. 

Buyers

For buyers this should instill some encouragement that property values are increasing and getting into the market sooner than later will help them take advantage of the fast growing equity.

If you are interested in learning more about the market or what your home is worth today, please feel free to contact me.

For some sellers the question may arise when they decide to sell of whether or not they should sink a lot of money into renovations. Not everyone has the time or money to put into significant home upgrades when they are planning to move out of the home. Besides, it is not always best to do so as many buyers may wish to change things to their taste anyway. There are some helpful tactics to selling a home that needs improvement, here are a list of tips on how to do it best.

Buyer pool

The most helpful thing to do is to do some research as to who your buyer pool is. Those who buy a home in need of updating typically will seek out potential over perfection. Investors or flippers are usually out to get the cheapest price possible as the transaction is all about money and business. Deal hunters are another group who may wish to live in a certain area but cannot afford most homes unless they are in need of upgrades. These buyers will see the value of purchasing the home today for its location and improving it over time. The third type of buyer may be a remodeler. This buyer is the person who has been outbid a few times and is now opening up their search to homes that may need work which may get less offers on it. Knowing who your buyer is can help you with your strategy.

Curb appeal

Your home’s curb appeal can have a big impact on buyers. This doesn’t mean that you need to build stone walls, fountains and have the best landscaping on the street. What this does mean is keep grass mowed, freshly mulch your beds and planting some flower pots for color and life. Finish with a freshly painted front door that should lead to a home’s interior that is clean and free of clutter. Eliminating a buyer’s idea that the exterior of the home would need work keeps any needed projects limited to the inside. 

Small, necessary repairs

It’s one thing if the home is dated, but another if it is dirty or in disrepair. Focus on the latter while you tend to things like fixing broken doors or hinges, caulking tubs and showers, addressing leaking faucets and making carpets free of stains. 

Renovation loans

Help some buyers out by referencing the possibility of a renovation loan. While you cannot guarantee amounts or rates to all buyers, having some preliminary information about them may help get them started on what they can do. 

Highlight good features and attributes

A perfect example of this is to make buyers fall in love with the space and floor plan of your home. Showcase your home’s open layout or spacious storage closets by keeping it free of clutter and well organized. Staging your furniture by using less of it or arranging it to make rooms appear larger and functioning will be what most buyers will be looking for.

Accurate pricing

Just like a home that has been fully renovated you still need to review the comps and price it accordingly. You can’t overprice it and expect nobody to see the work that it needs. Figure out what the price would be if it was updated, then back out the costs of what it absolutely needs without over or under pricing it. 

For anyone with a home that is in need of some updating the anticipation of renovation costs can be daunting. Sure, in some cases you may need to gut your kitchen but in others with a little creativity there can be some very reasonable updates that will not only make your kitchen look more modern, but you won’t go broke completing them. Best of all when it comes time to sell your home, many of these updates will recapture a high percentage of their original value. Here is a list of great ideas you can do for under $1,000 each.

Kitchen

Double sink – For anyone that is looking for an updated chef’s kitchen, a double sink is sure to please. Give cook’s the tools they need with a larger double sink that is ideally under mounted and stainless steel. 

Kitchen island – Everyone loves to have more versatile counter space. Islands add room for food prep and can also be a great place to dine or entertain.

Paint cabinets – For anyone who has good painting skills this can really transform your kitchen. For the cost of paint and brushes you can select a neutral color and brighten up the room making it look more modern and even larger.

Bathroom

Bathroom fixtures – Don’t leave your older and worn fixtures. Pick matching fixtures to replace your sink faucet, shower handles and head. 

Upgrade toilet – Other than the obvious aesthetics a newer toilet will save you water and money in the end. 

Bathroom vanity – A vanity is a main focal point in most bathrooms. Upgrade yours to one with a stone countertop, neutral color and has enough storage that is necessary for proper use. Finish off the upgrade with a nice mirror to match.

Other

Ceiling fans – Ceiling fans are very popular here in South Florida. Add style and function with a high design ceiling fan. Matte black with wooden blades can be a nice choice depending on your home’s motif.

Paint main rooms – Simply stated a little paint goes a long way. Neutral colors are always best while you freshen things up. Tackle your main rooms or those that are looking more tired first.

Landscaping – Trimmed hedges cost you nothing but time which you can do yourself. Spend your money on some mulch for the beds or some additional plants and flowers to dress up your home’s curb appeal. Patches of sod can also be purchased relatively cheap for filling in any bald spots on your lawn.

Smart thermostat – Technology has made lives much easier these days but also helps save money. Thermostats that are programable but also remote controlled by smartphones make life easier and are a bonus for anyone looking to buy your home. 

These days there is a lot of chatter about just how low mortgage rates are. This is part of the driving factor behind a busy real estate market as well as the cause for many to refinance their existing mortgage to realize some savings. Among the discussions comes some false or misleading information which should be cleared up. Here are some of the top myths about home mortgages. 

Getting a mortgage is simple

With rates so low lenders are extremely busy. Many are looking to take advantage and either buy property or refinance the one they own. With this influx of applicants some lenders are tightening up their requirements. Some lenders are dealing with this by increasing minimum credit scores as well as increasing down payment requirements which may make things more challenging for some. 

Who qualifies

The historically low rates of today are great news for many, but not for all. Most importantly you need to have a good credit score to qualify. Additional things like the type of home, size of loan and down payment will all play a factor in the rate as well. 

Everyone should refinance

Just because loan rates are low doesn’t mean it makes sense for everyone to refinance. Everyone’s situation is different and needs to be looked at carefully. Consider how much of a drop in rate you are looking at and how long you plan on being in the home as refinancing costs can be significant enough to make it not worth it. Also, factor in where you are in your current mortgage term and consider whether it makes sense to start the clock all over again. For anyone approaching retirement in the not too distant future it may make sense to stay on the current course and pay off the home sooner.

You can apply for a mortgage after locating a property

Especially in today’s competitive landscape you will most certainly want to apply for a mortgage first, then go look for a home. Any competing offer that doesn’t have the financial backing will simply be overlooked by sellers. Don’t get your heart set on a property and either lose out or find out for whatever reason that you cannot afford it. 

Forbearance means you don’t need to pay back your loan

With the state of affairs occurring this year many have been struggling with financial hardship and by result have been granted mortgage forbearance. What this means is that the lender has more or less granted a time out so to speak for some payments. This doesn’t mean that you don’t still owe the money however. Terms will vary from lender to lender based on what was worked out. Payments may be tacked on at the back end of the loan or shall be paid in an agreed upon period of time.