A Bird’s Eye View Comparison of Prices, Rates and Costs Clearly Shows Today’s Golden Opportunity

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Typically homeowners and potential homeowners measure the financial viability of their purchase in two ways; the price of the home and the monthly payment. Very surprisingly to most, they both do not depict the same overall picture when examined in comparison to other factors affected by the current economy at the time.

To help illustrate exactly what benefits lie in seizing the low interest rate and housing price opportunities that are out there right now, we’ve assembled a simple comparison chart (also explained on the video blog). This chart shows you exactly how much you are getting for your monthly payment. If you haven’t been convinced already, this will surely convince you that buying now is the single best thing you can do for yourself and your family.

As a Realtor, the most exciting thing to witness in terms of how much (or how little, I should say) it costs each month to be in a home these days. The reason this is especially exciting is apparent when, looking at the chart, the other things are compared.

Living Today With a House Payment From Yesterday

Take a look at what happened to the average cost of a new car between 1989 and today. It jumped up to a few hundred dollars short of double the average price! Bread rose in price almost four times as much and the same holds true for gasoline. But what is very interesting is how the numbers look for housing, mortgage and monthly payments.

What you’re seeing is mainly a demonstration of just how significant the impact of interest rates is on relative affordability for housing. Despite such huge jumps in cost for the other items on our chart, the median home price has increased 70% and interest rates are at less than half of what they were twenty-one years ago.

In fact, the most noteworthy figure that does not deviate at all from that of almost a quarter century ago is the monthly payment. A very eye-opening way to say this: you can buy a home today and pay the same monthly payment as in 1989.

Pick Your Battles When Negotiating

Considering how the market is today and the impending rise of interest rate that will occur – it is imperative that homeowners, potential buyers and investors keep their eyes on the prize when it comes to negotiating a final price. There is nothing more disappointing for me as a Realtor than to see a buyer wasting the long-term savings and investment opportunity that is gained by these low rates and prices, on a few thousands dollars or a couple percent of the total price. If you work out the numbers, there is a very good chance that the savings from today’s interest rate alone will pay you back multiple times over the years. To calculate this, use an online tool to estimate your amortization schedule. You will be surprised.

Remember, if you compare the difference between a slight decrease in the price of a home versus a slight increase in interest rates – there is a far more significant impact on the overall cost of the loan with the interest rate increase.

Things Will Not Stay This Way Forever

We have been watching the market continue to allow us fantastic rates for several years now but when you factor in the financial volatility we are experiencing lately, with the stock market as well as the overall economy – there is no telling just how soon those interest rates will creep back up. Not only that, let’s hope they don’t go back up to the astronomical rates we saw in the low to mid- 80s, reaching levels as high as 18%!

People who are in tune with the ins and outs of the real estate industry are buying and investing in homes as much as they can these days. Top Realtors, including myself, are taking advantage and getting into second homes, vacation and rental properties and anything else they can afford at the moment. At the end of the day, these properties will appreciate. The market will recover. And those people who were smart enough to get in on the action today, will end up with low, locked-in mortgage rates and monthly payments plus plenty of equity in homes worth far more than they are today.

Need to Sell Your Home? Here Are Three Great Ways To Get It Sold?

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The challenged market these days makes it very difficult for homeowners to get their houses to sell.  A few years ago, it was more than enough to put up a listing and let the home sell itself.  But now, during a time when in most markets inventory levels exceed six months or more, it is no wonder that people need as many tools as possible to help the process along.

Factor in that you are competing directly with your neighbors also vying to sell their homes and you really have to get an edge somehow.  In this article, there are three smart ways to make sure your home sells and does so within a reasonable time.

Accurate Pricing Sets the Precedent for Successful Selling

It used to be that it was all about location.  You know the famous phrase: “Location, location, location!” but in today’s tip, it is not so much about location as it is about price.  Simply put, your price advertises your motivation.  If you are a homeowner who refused to budge on a selling price despite getting no offers even after the property has had over 90 Days On Market– maybe it is time to rethink your strategy.  Similarly, homeowners who price too low give off the impression that there must be something wrong with the property.

It is important to price accurately and realistically.  Study the prices of similar homes sold in the same area.  Consider a consultation with a Realtor to obtain in-depth studies and reports that demonstrate a wider scope of statistics that will help you set your price.  Examples of things that may affect your price are the amount of tax, the age of your community development, whether or not it is located near a commercial zone, etc.

Making Sure Your Home is Dressed to the Nines Attracts More Buyers

Sure in the dating scene we need to look our best if we want to “sell” our look and get people interested.  Houses are not much different.  If you dress up your home to perfection, set it up in a way that will have potential buyers “oohing” and “aahing” over features that are highlighted because of the way you have it arranged, you’re in great shape.

Many people have no idea how to stage homes, so there are professional stagers that can come out and help you set up your home and make it display ready.  Keep in mind that the standard you should maintain is similar to that of a design magazine.  Imagine that a professional crew will photograph your home, so you need to make sure there is no clutter and personal items are put away.

Being Accessible To Show Your Home Shows You Are Serious About Selling

These days buyers are much more savvy than they used to be.  They know they have the upper hand with inventory levels as much as they are nowadays and with the amount of competition some sellers have to face in today’s challenged real estate market.  So making your home available to show, as per the convenience of potential buyers, can really make a significant difference in your success rate.

There are several factors to keep in mind when your house needs to be shown.  First, declutter the space and remove all personal artifacts that might hinder potential buyers from envisioning themselves in the home.  Second, make sure there are no pets or signs of pets left behind as this can be a put off for those people who do not have pets or who might have allergies.  Third, invest some time to ensure there is sufficient curb appeal.  Buyers should begin to fall in love with the home starting from the moment they see it, throughout their time inside and on the way out.
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If you want to sell your home then you will have to consider things from both sides of the fence.  What amount is it that you need to sell the home for in order for it to make sense?  What would buyers be willing to pay based on other properties sold in the area?  How attractive is the space?  Could it become home for the people that are showing some interest?  Finally, are you around to make the home available for serious buyers who don’t have time to waste?  Are you wiling to accommodate requests to see the home at times that may not always be the most convenient for you?  Selling success, while largely depends on the market and trends dictated by other buyers, will also largely depend on how you – the seller -- set the precedent.

How To Avoid Spending More Than You Need to Prep Your House for Sale

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When it comes time to put your property on the market you want to get the best value from the sale.  The first instinct that many buyers get is to fix up their home, bring it up to code and make it as enticing as possible to lure the best offers.  Here’s the thing though: it ends up costing way less money to do this when you work with a professional who sees this on a regular basis. 

We’ve outlined some mandatory items that must be kept up prior to the sale of a home, some optional items that would certainly improve the outlook of your home sale and a few things that would only end up being wasted dollars spent.  Remember, the end goal is to get the best price on your home – so you want to accomplish this in the most efficient way possible. 

It’s Not Entirely In Your Hands

One thing to keep in mind is that home values fluctuate with a changing real estate market. What this means is that in today’s market what may be valued at around $350,000 may be a property that was valued at $380,000 just a few years ago.  While some things are in your hands, how the market impacts housing prices is something that no one can alter no matter how many improvements or adjustments are made to the home. 

It may be a good idea to call your Realtor before selling your home so they can give you an official estimate.  The figure would be determined by a number of factors including the general condition of your property, the mean price of other similar homes sold in the area and also current market conditions.  An advance appraisal may give you an edge over other competitors to accurately price your property so you don’t end up wasting dollars on unnecessary upkeep.

Bringing Things Up To Code

What you do have control over, however, is whether you fully comply with housing code and regulations, required to be fully in order prior to listing a property on the market.  Depending on the region you live in, this can mean things like making sure a set number of smoke detectors, fire extinguishers or carbon monoxide detectors are installed.  Sometimes, there are plumbing requirements that must be fulfilled, such as ensuring that low flow toilets have been utilized.  Outdoor electrical wiring must meet certain fire safety regulations and also, major appliances may be required to be strapped down in some regions (like water heaters in California due to earthquake susceptibility). 

Making It All Nice and Neat
The single most important part of a home sale is generating the interest of a buyer, of course.  If your home is set up in a way that allows potential homeowners to visualize themselves living in the space, you have a better chance of success.  Things that are optional but have a huge impact on the success of your sale include presenting a clean home with little or no signs of personalization, tidied up living and storage spaces plus no clutter to distract potential buyers.  The home’s exterior is also a good opportunity to make the home inviting and yield a better offer. 

Stop Short of Overkill

There is no end to how much you can do to improve a home before sellingit, but the key is to understand where to draw the line.  While a fresh coat of paint might be great, redoing the kitchen wallpaper is a waste of time since potential buyers may not like the new look either. 

Jumping the gun and getting things that may have come up on a building inspection may or may not backfire.  For example, if a termite inspection is called for and subsequent treatments are needed, it may serve you better to make sure where the potential buyers stand on the issue before spending any cash. 

The single best way to avoid wasting money on the preparation of a home for sale is to consult with your Realtor.  They deal with this on a daily basis and are in the best position to advise you before you end up spending too much.
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At the end of the day you want your home to sell.  By following these simple guidelines and through the expertise and knowledge of your trusted Realtor, you can and will save yourself a lot of wasted time, energy and resources.