Blog Archives

How Staging Impacts Buyers …

Home Seller’s may wonder how staging their home when it’s time to sell will impact potential Buyer’s opinions during viewings …  now we know. The National Association of Realtors (NAR) asked over two thousand Realtors to share their experiences of showing staged vs. not-staged homes to Buyers – here’s what they said.

Home-Staging

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6 Keys to Selling Your Home in Today’s Market

Published: 05/16/2012
Posted by: RET Staff
RIS_sold_home_signAccording to the National Association of REALTORS®, more than 4.25 million homes sold in 2011. That’s a lot of real estate and such numbers raise the question: How are sellers doing it?”Because individual homes are unique, there isn’t one single strategy that works equally well for every property,” says Wendy Forsythe, the executive vice president of a real estate company. “The real trick is understanding that today’s marketplace is cash driven, quick and highly competitive. Owners who understand their local markets and work with a knowledgeable agent are those most likely to succeed.”

In March, roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future.

Instead, they can act quickly and, in many cases, seek properties which can be bought today and occupied tomorrow.

To ready a home for sale in today’s marketplace, Forsythe says owners should consider six basic keys to selling success.

Six Keys to Success

1) Curb appeal counts. Most home buyers want homes which look great from the outside. It’s not just a question of curb appeal — it’s about perception. If a home looks good from the street, it probably means the property is ready for a new occupant without a lot of cost or hassle.

Buyers tend to pass on a home that doesn’t appeal to them from the street–not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.

2) A clutter-free home. With the new emphasis on cash sales and speed, owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market — not only as a sales tactic, but also as a practical step toward relocation.

3) Working condition. Having your home’s systems in good mechanical condition is an advantage in today’s market. Most distressed homes can’t compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don’t want to face the unknown costs and delays sometimes associated with major renovations.

4) List and negotiate properly. According to Forsythe, “A seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace.”

5) Seek prequalified buyers. While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home — meaning you have lost time — and potentially money — and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.

Such letters from lenders are not binding, but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.

6) Distressed properties. Roughly 30 percent of today’s home sales involve “distressed” properties — a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation.

“Home sellers can compete with these offerings,” according to Forsythe. “There’s no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they’re not the right choice for buyers who want homes that offer move-in condition — homes in better shape that can often command higher prices.”

While the housing market is just in the beginning stages of a recovery, it’s still possible to successfully sell your home by making sure you’re catering to the kind of buyers in the market today, and by making sure that you — and your home — are ready to move as quickly as these buyers are.

To view the original article, visit RISMedia.com.

What I’ve experienced in this hot spring market…

Hello and thank you for finding my blog!

I hope you have been well and enjoying the spring weather. I ran across this interesting blurb about the housing market along the Front Range of Colorado and thought I would share this great news with you. What I have experienced in this spring rush is the current market is “red hot” and I feel it’s a great time for both buyers and sellers. The inventory levels of homes for buyers to choose from are very low and I’m receiving multiple offers on homes that I have listed and the interest rates for buyers are still phenomenal floating around 4.0%.

Please click on this link and enjoy the good news.

http://www.9news.com/news/article/264058/339/Denver-2nd-hottest-housing-market-in-the-US

If you are considering purchasing a home or selling your existing home please call me. We can discuss the current market conditions and if it makes sense to make a move. Thank you for your attention and look forward to speaking to you. Have a great spring.

Garry Callis

Broker/Owner

Legacy Real Estate Group

Cell/Text: 303-257-4725

Office: 303-682-9299/888-919-TEAM

garry@legacyrealtor.net

Visit our website at www.LegacyRealtor.net

Cash buyers in the market

All-cash transactions are becoming the common way for investors to buy investment and vacation homes with roughly half of all investment buyers paying cash in 2011 and 42 percent of vacation home buyers paying cash. Dr. Yun points to tight credit conditions for the decline in owner-occupant purchases.

Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes. The median investment home price in 2011 was $100,000, up 6.4 percent over the year, while the median vacation home price was $121,300, down 19.1 percent.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Dr. Yun said.

Dr. Yun also pointed out that for investment and vacation home buyers that used mortgage financing, the median downpayment was 27 percent in 2011.

Seniors, Young Adults Will Influence Housing

Logo of the National Association of Realtors.

Logo of the National Association of Realtors. (Photo credit: Wikipedia)

Saw this great article from Nation Association of Realtors, explains “Echo Boomers” and the impact on your housing investment…

 

Daily Real Estate News | Tuesday, March 13, 2012

Aging Baby Boomers and their “Echo Boomer” children will significantly impact trends in the nation’s housing market over the next 20 years. In a new report released by the Bipartisan Policy Center, “Demographic Challenges and Opportunities for U.S. Housing Markets,” researchers at the National Association of REALTORS®, The Urban Institute, and the University of Southern California analyze key demographic trends and their likely influence on housing and homeownership in the United States.

Over the next two decades, the aging baby boomer generation will swell the nation’s senior population by 30 million. That demographic shift will likely help increase the supply of housing, since people over age 65 typically release much more housing than they absorb.

“The Northeast and Midwest are most likely to see a large number of older home owners selling their homes to younger home owners as the baby boomers age,” says NAR Chief Economist Lawrence Yun. “This increased supply could mean additional buying opportunities for Echo Boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020.”

The Echo Boom generation includes nearly 65 million people born between 1981 and 1995. NAR’s analysis illustrates the potential impact of economic and housing policy on this generation’s demand for homes as they come of age.

“Housing, jobs, and the economy are inextricably connected,” Yun says. “A strong recovery with favorable housing market conditions would encourage substantial growth in Echo Boomer households, which would help absorb the current vacant inventory and stabilize conditions for residential construction. Under a reasonable ‘middle’ recovery scenario, approximately 12 million new households will be formed over the next decade, requiring construction of up to 15 million new housing units.”

NAR President Moe Veissi notes that current market trends favor would-be home owners of all ages. “As the supply of rental housing continues to fall, rents are increasing,” he says. “At the same time, affordability for home owners is at a record high. For buyers who qualify and are ready to assume the responsibilities of owning a home, opportunity is knocking.”

Source: NAR

Why You Need Proper Representation from Real Estate Professionals

Our belief – one of our CORE beliefs – is that consumers are best served through proper representation from a licensed professional.

For most, buying or selling a home is an infrequent transaction with enormous financial and emotional considerations.

It’s stressful, emotionally-charged and high-stakes. Having a real estate professional central to the process of pricing, listing, selling and purchasing a home is important; real estate is not entertainment, and it’s not a game – bad data, inaccurate “value estimates,” and inflating inventory levels on websites creates confusion about what’s really happening in a market.

We understand that serious consumers want the real facts about a market. And we understand that these consumers also want to find a professional who can clearly articulate what these facts mean to their personal situation.

Connecting with a local real estate professional, a professional that’s immersed in local trends. Well versed in neighborhood nuances. Someone who can take the science of real data and apply it to the art of local real estate.

For sellers, this professional is someone who can navigate changing markets deftly and help price a home appropriately. Someone that helps ensure a smooth ride all the way from contract acceptance to settlement.

For buyers, this professional is a sounding board during their search, and their advocate during contract negotiations all the way to the first day in a new home.

Ultimately, there is a lot more than search to consider throughout the course of a transaction.

Pricing. Negotiations. Offers. Counter-Offers. Contracts the size of novellas. Addenda. Inspections. Appraisals. Financing. Contingencies. Walkthroughs. Punch Lists. The list goes on and on and on. Navigating all of this takes skill and determination, and we are the licensed real estate professionals. Just the folks that can help.

After all, it’s what we do for a living, 24-7, 365.

This article comes to us from the REALTOR.com Lockbox blog. You can view the original article at Lockbox.REALTOR.com

Local Opportunities, Local Problems

From a local market perspective, the 2012 ActiveRain real estate survey shows markets where real estate agents are significantly more optimistic and others in which real estate agents are concerned about 2012.  Based on our survey data, the ActiveRain real estate network has created a real estate confidence index and ranked the top real estate markets.
Below is a list of the TOP 10 and BOTTOM 10 real estate markets ranked by real estate agent confidence.

Description: US Market Confidence ActiveRain

A Bottom of the American Real Estate Market

American real estate agents expect the US real estate market to be largely flat from 2011 to 2012.  Real estate agents predict that real estate values will be flat from 2011 to 2012, signaling a bottom to the real estate market or the end of the real estate bubble.  Given historically low interest rates as well as a bottoming of real estate values, real estate agents expect that the number of real estate transactions and new construction starts will increase slightly in 2012.   Additionally, real estate agents believe local economies are on the mend and we will see improvements in the economy.

Description: US Real Estate Confidence

Real Estate Recovery or Not?

2012 Predictions By the Pro’s Infographic

Data, data everywhere, but what should you believe?  Are we on, in the middle, or at the tail of a deflating real estate bubble? There is A LOT of conflicting data emerging about the 2012 real estate market and 2012 real estate transactions.

So what should you believe?  Nearly all data on real estate transactions and real estate values is historical;  it does not forecast the future and may not reflect the situation in your local market.   Real estate is inherently local, so if the national real estate market is in decline or on the mend, what does that say about your local market?

The largest real estate social network ActiveRain Corp surveyed 1,835 real estate agents and real estate brokers in the US and Canada to understand if the real estate market and economy are poised for recovery in 2012, both nationwide and in local markets.

Will the Real Estate Market Heat Up This Spring?

Real EstateI read this article today and thought it worth the share… I am seeing signs of a local recovery everywhere I look. All good news here!

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Daily Real Estate News | Monday, February 06, 2012

The spring season usually brings an increase in buying and selling to the real estate market, and housing experts are mostly optimistic that this spring will be even better than recent years.

Some signs are already there: Housing inventories are declining, housing affordability is at record highs, mortgage rates are at all-time lows, and the job market is improving.

Existing-home sales have been edging up in recent months, and for-sale housing inventories were at nearly 2.4 million units in December, reaching its lowest point since 2005, according to National Association of REALTORS® data.

NAR’s Chief Economist Lawrence Yun says home prices are beginning to stabilize in many markets.

Also, NAR’s Housing Affordability Index is at its highest level since the 1970s, which indicates that for the average family housing is very affordable.

However, threats to a housing recovery still loom this spring. Strict mortgage lending is keeping some buyers on the sidelines, and foreclosures continue to put downward pressure on overall home prices in many markets.

“The signals are a little hard to extrapolate, but ultimately by the end of this year we should see the housing market on more solid footing,” says Celia Chen, senior housing economist with Moody’s Analytics. “So an improvement but off of very, very weak activity.”

Source: “Real Estate: A Buy or Bust This Spring Selling Season?” Investor’s Business Daily (Feb. 2, 2012)

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Hope you enjoyed as much as I did.

Thanks,

Garry

Logo of the National Association of Realtors.