Well, we see the tides changing. We are coming into a seller’s market in Canadian Lakes. While it is still at the transition point, we see less inventory and more multiple offers. All signs lead to the beginnings of a seller’s market.
Caution – don’t overprice your home just yet. It is going to take a bit of time for all of this to digest. Remember just a few short years ago, sellers would not believe that the market prices were going “that low”. Well they did – and they were – we just didn’t want to believe it. It took time for sellers to get on the right track and lower their prices. We will most likely see this happening the other way around now. Buyers will not believe that prices are truly going up and they will not be able to buy a home without a bidding war. So, make it count – that first offer that is. Make it good so that you are the best in the bunch trying to buy that home! Success will be with those that truly know what the market is doing.
Yes indeed – we are coming into a seller’s market!
See my current inventory – click here!
OPEN HOUSE…OR NO OPEN HOUSE?
A lot of clients ask about hosting an open house. Actually, it is what we do every day. Once your home is on the market – we are hosting an open house for anyone interested in seeing the home – anytime.
There was a time when an open house drove traffic to the area and more people came to see a home. Today, unless you are in a highly populated area, an open house may not work the same.
Today’s buyer is using a Real Estate Agent most of the time in their home search. The second most popular tool the buyer is using is yard signs – believe it or not! People still like to drive around neighborhoods and look for homes for sale. The mobile marketing tools and open house statistics for 2013 were real near the same – which was a surprise to me. Most of the buyers I work with have used either a Realtor or Internet Searches to find homes.
Home Buyer Statistics:*
- First time home buyers: 38%
- Repeat buyers median age: 52
- Median Age of first-time home buyers: 31
- Information sources used in home search:
- Real Estate Agent 89%
- Yard Sign 51%
- Mobile or Tablet Website Application 45%
- Open House 45%
- Mobile or Tablet Search Engine
- Print Newspaper Advertisement 23%
*Source: National Association of Realtors Guide to Quick Real Estate Statistics for REALTORS®
The great debate continues – open house or not? My experience – even when heavy advertising has been done – is that they have been poorly received. Most of the time if we get one person at an open house we celebrate.
If you really want to sell it – drive more traffic to your home by having a quality product in a great location with a fair price. That’s it! If you are missing one of the main elements, make up for it with one of the other. For instance, if your home is not in a great neighborhood, perhaps a lower price would do the trick. In the National Association of Realtor’s 2013 Community Preference Survey, 78% of home buyers responded that neighborhood quality is more important than size of home. If you are in a great neighborhood, make sure the home shows well by keeping it maintained in and out. And do not overlook the pricing – overpricing can be deadly. Check out the neighborhood and what the sales have been. Make sure you are not pricing yourself too high and missing a buyer.
For more information and tips on buying or selling a home visit my website or contact me! Happy shopping and selling
CONTACT KATHY – CLICK HERE!
It’s a new year – 2014 – and many changes are taking place in the Real Estate Industry. Mortgage changes, tax changes, etc. are upon us as the new year starts. Keep up with the latest and greatest information with your local real estate professional. They can help guide you through the process of purchasing or selling a home.
Look forward to a fresh new year with a new home! Come and see what we have to offer in Canadian Lakes, Michigan. G
How is your December going? Are you busy with the holiday rush? Let’s remember to stop and enjoy the season of giving a bit. Why not try changing a few things this holiday to help someone out. Giving up something might be a way to give to someone. A few years ago I gave up sending holiday cards. I use that time and money savings to do a few nice things in the community. I actually feel better about the giving of my time for that purpose as well. Writing holiday cards always seemed stressful and too time consuming. It wasn’t enjoyable for me. I know some of you may love doing it, but I am not that person.
What can you change to be someone’s giving elf this year? It could be as simple as making cookies for a neighbor, or taking someone their mail on a nasty day. Look around you and see who or what you can do to be a giver of a different kind of gift this season – the gift of kindness is always warm and welcome.
Happy season of giving to all of you! Warm your Heart and Home with Love and Laughter.
Hopefully when you sign that purchase agreement, you don’t go away feeling “oops what did I buy?” That would be a dreadful feeling. If this is the feeling you have after your first purchase agreement signing – maybe your gut is telling you something. Yes you have a chance to get out of the deal if the inspections fail, or financing fails, but that can all take you down a road that costs money. To avoid overspending to buy that home, take a little time to think it through thoroughly. Take someone along to help your sort everything out. Another set of eyes can’t hurt. Be objective, let your excitement get put aside for a moment and think logically through all that you are looking for and whether that home will do it. Remember a wish list is always packed with more than is usually reasonable, so compromise on the little things, not the big things.
Last week I had a new buyer get excited about a home for the wrong reasons. The feature they liked was not expensive, but the rest of the house was a mess. It would have been more cost-effective to buy a home more move in ready and add the feature they wanted.
Before moving on to inspections, appraisals, and other things that cost money, make sure your eyes are not deceiving you – it can be costly. It’s like painting – preparation, preparation, preparation – then paint. This will save you money!
Happy home shopping!
Up, up and away is something my first time home buyers are now crying. After doing pre-qualification work, then shopping for their first home, it all comes down to offers. Some of what they see, and like, while shopping is beginning to get “scooped-up” quickly. They are starting to see the trends of upward prices and limited inventory. That’s good news for sellers, but not especially for first time home buyers on a tight budget. How you can get ahead of the rest of the buyers is to be prepared. Here are a few tips to keep it straight and get it done:
- Have your pre-qualification letter ready, printed and in the hands of your Realtor.
- Have your good faith deposit ready to go. Not, I will have it when I get paid next week. Set it aside and be ready when you find that perfect home. In today’s market of “bank owned” properties, the typical deposit requirement is $1,000.00. That is CASH. Not money they will “take out” at closing. You need CASH, today, to write the offer.
- Probably the most important tip, do not shop out of your budgeted amount. Last year this would have been different. Everyone was shopping in a bit higher price range because you could get deals. Today, the prices have corrected to the point that banks are marketing the property at prices that are bringing in multiple offers. So, if your budget will not allow a full price, or sometimes, an over full price offer, expect to be disappointed when the offer is rejected or outbid by another buyer. This disappointment can lead to a deflation in spirit and sometimes can turn a buyer to renting longer.
- Roll off disappointment and start over. The best thing to remember is the ultimate goal – owning your home and not paying rent. We all know the foreclosure market has led to more renters and higher rent prices. Don’t get caught in the disappointment of losing a bid on a home. It’s a lot of work to shop, and write offers, etc. for all parties involved; but so worth the reward when you finally accomplish your goal.
Get it done should be your mindset when shopping for a home. With the proper planning it should not be hard to accomplish your goal of buying a home. So don’t let that perfect home go up in price, up in a bidding war, and away from your hands! Get it done!
See an inventory of the area’s homes here:
No money down is a term heard often in Real Estate today. What does no money down really mean? I have had first time home buyers come in to “shop”. They are pre-qualified with a bank for a “no money down loan”. Now I know the banks are informing the client about the loan products they will be using. There are certain products that require “no money down”. But “no money down” does not mean “no money at all”.
Buyers shopping for new homes do need to have some money to buy a home. First of all, you will need a “good faith deposit”. This usually consists of cash deposit made when putting forth an offer on a home. Most of the time, and especially when buying a foreclosed home, the deposit required is a minimum $1,000.00. Next, you will need money for inspections. Typically, inspections run $350 and up. An average home inspection is more near the $400 mark. Inspectors expect to be paid at the time of inspection. What about lender expenses. Are you expected to pay for the appraisal? Will the lender be rolling expenses into the mortgage? When first time home buyers are shopping, these numbers can be overwhelming. If you expect to buy a home with “no cash” this can be a shocker!
Buyer’s beware, no money down does not mean no cash required. There is a difference and you should be prepared. It’s great to get pre-approved with a lender. This gives you an edge to know what your buying power is. Next look at your household budget and decide how that fits in your overall plan. Next, establish a cash fund to use for expenses during the purchase process. Planning will elimate all the surprises for new home buyers.
For more help with purchasing a home, or answers to any real estate questions, please get in touch with me.