Thursday, March 31, 2016

The Top 5 Reasons You Should Not For Sale By Owner

 In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five of those reasons: 1. There Are Too Many People to Negotiate With Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value
2. Exposure to Prospective Purchasers Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 3. Results Come from the Internet Where do buyers find the home they actually purchased?
  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. 4. FSBOing has Become More and More Difficult The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. 5. You Net More Money when Using an Agent Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Monday, March 28, 2016

91.5% of Homes in the US have Positive Equity

91.5% of Homes in the US have Positive Equity





91.5% of Homes in the US have Positive Equity | Keeping Current Matters CoreLogic’s latest Equity Report revealed that one million borrowers regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties would regain equity if home prices rose another 5% this year. 

The study also revealed:

  • 95% of homes valued over $200,000 now have a positive equity position
  • 87% of homes valued under $200,000 have entered a positive position
  • The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit gains
Below is a map showing the percentage of homes with a mortgage, in each state, that have positive equity. (The states in gray have insufficient data to report.)91.5% of Homes in the US have Positive Equity | Keeping Current Matters

Significant Equity Is On The Rise

Anand Nallathambi, President & CEO of CoreLogic, believes this is great news for the “long-term health of the U.S. economy.” He went on to say:
“The number of homeowners with more than 20% equity is rising rapidly. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and ultralow interest rates are also factors.”
Of the 91.5% of homeowners with positive equity in the US, 72.6% have significant equity (defined as more than 20%). This means that nearly three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now. The map below shows the percentage of homes with a mortgage, in each state, with significant equity.91.5% of Homes in the US have Positive Equity | Keeping Current Matters

Bottom Line

If you are one of the many homeowners who is unsure of how much equity you have in your home and are curious about your ability to move, meet with a local real estate professional who can help evaluate your situation.

Wednesday, March 23, 2016

Home Improvement Projects for Under $1,000

paint door
Just like the paint on the rest of your home, your front door can be subject to things like peeling, cracking and fading over time. The freeze/thaw cycle in the winter can make this even more obvious, as can things like salt or ice melt getting splashed on the door by slush as people make their way indoors. Repainting your door is fairly easy and inexpensive, and can really give your home’s curb appeal a big boost.
Cost
The average cost of painting a front door is about $100 per door. The total cost ranges from about $20 for a DIY job to $300 for high-end doors and paint jobs.
Money Saving Tips
The best way to save money on front door paint jobs is to invest in high quality enamel paints for the job. They’re less likely to need touch ups as frequently as other paints, which means you need to paint less often. If you’re comfortable painting the door yourself, tackling this job DIY can really save you a lot of money as well. Just be sure to use a primer and two coats of paint to ensure you’re doing it right.
DIY Considerations
Most people can comfortably tackle the job of painting themselves. The only time you may want to leave it to the professionals is if you have a door with windows, glass inserts, or a lot of carvings and features that may take a specialized approach.

Stain Your Deck
stain your deck
All that snow, ice and freezing rain hitting your deck this winter could have done a lot of damage to the stain and finish of the wood. Stain is necessary not only to keep your deck looking great, it also helps prevent the wood from absorbing moisture and rotting over time. So if your deck has begun to peel and show the wood through in places, it’s time to put on a new coat of stain. Doing so will not only help protect your deck from the elements, it will also improve your home’s curb appeal.
Cost
The average cost of staining a deck is around $2 a square foot, assuming a deck of around 500 square feet. In most cases the cost will not be any higher than $400 for the total job.
Money Saving Tips
Your deck will need to be power washed before it can be stained, and this needs time to dry before the stain can be applied. Save time and money by doing the power washing yourself; schedule the professionals to come in after the deck has had a chance to dry. If you’re comfortable with tackling the job yourself, DIY can also save you professional fees, as most pros will take about 4-5 hours to do the job, and charge for their time.
DIY Considerations
Most able bodied homeowners will be able to tackle this job on their own. Keep in mind that you will need to rent or purchase a power washer to thoroughly clean the deck. You’ll also need to remove old, peeling stain, and apply at least two coats to ensure good coverage.
Air Duct Cleaning
air ducts
After running your furnace all winter, it’s a good idea to get your air ducts cleaned come spring. This is particularly crucial if you’ve had any work done indoors over the past year, as construction dust and debris can build up in your ducts, reducing your HVAC system’s efficiency. Likewise, if you or your family suffer from allergies, cleaning out the ducts periodically can help improve your air quality.
Cost
The average cost of having your ducts cleaned is between $300 and $500 for a professional cleaning. The total range of costs is between $200 for cleaning the ducts in a small house to $900 for older ductwork that may need some upgrades done at the same time.
Money Saving Tips
Change your filter regularly on your HVAC system to help prevent dust and dirt build up in your ducts. You should change these seasonally at a minimum, but some brands recommend changing them monthly. Remove your filter and hold it up to the light; if you can’t see through it, it’s time to replace it. Clean and wipe down your grates periodically as well to help get rid of buildup that could be falling into the ducts, necessitating their cleaning.
DIY Considerations
Special equipment and knowledge is required to clean out the ducts properly. While you could possibly clean around the openings and the grates, cleaning the ducts themselves should be left to the professionals.
Fertilize Your Lawn
Grass
Help bring your lawn back to life after a cold, snowy winter with fertilizer. Fertilizing your lawn helps feed it with nutrients it needs to grow. Some fertilizers can also help eliminate weeds, and improve the overall quality of your lawn at the same time, so it requires less water or maintenance in the future.
Cost
The average cost to fertilize your lawn is around $.03 a square foot, assuming a 6,000 square foot lawn. The total costs range from around $.02 a square foot for a DIY job to $.04 a square foot during the peak season.
Money Saving Tips
Make the most of your lawn fertilization by ensuring that you water your lawn either early in the morning or late in the evening to prevent the sun from drying out both your grass and the fertilizer at the same time. If you have your lawn professionally serviced regularly, ask about bundling in fertilization with other services such as mowing to help reduce costs.
DIY Considerations
Nearly any able bodied homeowner should be able to tackle this job. All you need is a spreader and the ability to traverse your entire lawn. If you have a lot of steep hills or other issues, however, it may be better to hire a professional.
Keeping your home looking and functioning well in the springtime doesn’t have to cost a fortune. Follow these tips to help ensure your home looks and functions its best this year. For more cost savings, visit these Cost Guides.

Tuesday, March 22, 2016

The Importance of Hiring a Real Estate Professional

The Importance of Using an Agent To Sell Your House | Keeping Current Matters When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold. In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. For the past three years, 92% of all buyers have used the internet in their home search according to the National Association of Realtors’ most recent Profile of Home Buyers & Sellers. However, the report also revealed that 95% percent of buyers that used the internet when searching for a home purchased their home through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their home directly from a seller whom the buyer didn’t know. Buyers search for a home online, but then depend on an agent to find the actual home they will buy (53%), or to negotiate the terms of the sale & price (48%), or to help understand the process (60%). The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots”. This is obvious, as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.

Monday, March 14, 2016

What If I Wait Until Next Year To Buy A Home?

Posted: 14 Mar 2016 04:00 AM PDT
What If I Wait Until Next Year To Buy A Home? | Keeping Current Matters As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen over the next 12 months?

According to CoreLogic’s latest Home Price Index, prices are expected to rise by 5.5% by this time next year. Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.5% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:What If I Wait Until Next Year To Buy A Home? | Keeping Current Matters

Friday, March 4, 2016

Home is Where the Heart Is

Home Is Where The Heart Is | Keeping Current Matters Yesterday, we discussed the reasons why homeownership makes sense, financially. Today we wanted to touch on the emotional or ‘real’ reasons that many Americans strive to become homeowners. The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership. The top 4 reasons to own a home cited by respondents were not financial.

1. It means having a good place to raise children & provide them with a good education

From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase. 

2. You have a physical structure where you & your family feel safe

It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.

3. It allows you to have more space for your family

Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list. 

4. It gives you control over what you do with your living space, like renovations and updates

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home? The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents: 

5. Owning a home is a good way to build up wealth that can be passed along to my family

Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future? 

Bottom Line

Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home.