Whether it's because of proximity to work or business or simply because your family has grown. You will come to think at some point that your home cannot keep up with your needs anymore.
It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it's okay to admit that your home no longer fits your needs!
According to CoreLogic's latest Home Price Index, prices in the starter home market have appreciated faster than any other category over the last year, at 9.4%. At the same time, inventory in this category has dropped 14.2%.
These two stats are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.
This is great news if you own a starter home and are looking to move up to a larger home as the equity in your home has risen as prices have gone up. Even better is the fact that there is a large pool of buyers out there searching for your starter home to help them achieve their American Dream!
If you have outgrown your starter home, contact a local real estate professional who can explain the market conditions in your area and help you find your next home!
Currently, sellers are enjoying huge if not undivided attention from buyers as their visibility is at peak. There are reports, however, that this will change in the following months to come as permits for single-family units are granted.
According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of building permits issued in June was 850,000, a 0.8% increase from May.
How will this impact buyers?
More inventory means more options. Mark Fleming, First American's Chief Economist, explained that this is good news for the housing market -- especially for those looking to buy:
"The continued year-over-year growth in completions means more homes on the market in the short-term, offering some immediate relief in alleviating housing supply shortages."
How will this impact sellers?
More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:
If you are considering selling your house, you'll want to beat this new competition to market to ensure that you get the most attention on your listing and the best price for your house.
The law of supply and demand has been an existential issue in basically all known market (real estate included) since the early days of commerce. This has been seen and used time and again by power players in the arena as an opportunity to dominate and earn more. A lot of studies and speculation points at the recent mortgage rate changes as the main reason for home value increase this year. Here's the reason why we think otherwise.
"The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price."
When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.
Here are the numbers for supply and demand as compared to last year since the beginning of 2018:
The increase in the June numbers doesn't mean that prices won't continue to appreciate. In that same report, Lawrence Yun, NAR's Chief Economist, explained:
"It's important to note that despite the modest year-over-year rise in inventory, the current level is far from what's needed to satisfy demand levels.
Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up."
The reason home prices are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.
Coming soon to the market! This spacious home located at Sycamore Drive Newburgh has 4 bedrooms, 3 baths, an enclosed porch, mother-daughter set up at a dead-end street and walking distance to school for only $275k.
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More and more Millennials turn up eager, ready and capable of becoming a homeowner. As the demand grows and supplies dwindle, there will be strict competition in the real estate arena. Here are a few things you need to know before you enter the market.
Comparatively speaking, millennials have taken longer to obtain traditional milestones (like getting married, having kids and buying a home) than generations before them, but that does not mean that they do not aspire to still achieve those things.
For older millennials (aged 25-34) who have established themselves in their career and are starting to build their families, homeownership is the next logical choice.
According to the Urban Institute's State of Millennial Housing, the probability of a millennial becoming a homeowner increases by 17.9% if they are married, and by an additional 6.2% if they have children.
Last year, according to the US Census Bureau, the average age at first marriage was 30 for men and 27 for women, while the National Association of Realtors (NAR) reports that the average first-time homebuyer was 32 years old.
With most of this generation having yet to age into the 'Responsibility Zone' (the time in their lives when their responsibilities start to dictate their behaviors), there will be a steady wave of buyers for years to come!
Those who are currently out in the market searching for a home are being met with a strong, highly competitive sellers market. NAR's Chief Economist Lawrence Yun recently commented,
"Realtors throughout the country continue to stress that there's considerable pent-up demand for buying a home among the millennial households in their market.
Unfortunately, they're just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains."
If you are currently renting and thinking about jumping into the real estate market this year, contact a local real estate professional who can help you navigate your market.
Everyone is invited to our OPEN HOUSE this Sunday, 12th of August at 12pm-2pm. This luxurious home is located at 9 Woodland Road Bedford, NY 10506. Plus! We just reduced the price by $40,000. What are you waiting for?
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"If you are good at something, never do it for free", these are wise words from a fictional movie "The Dark Night" spoken by the antagonist called the Joker. This emphasizes that expertise on any particular activity is not for everyone to achieve, some people just don't have the time, while others just might have their passion set for something else. Needless to say, the occupation real estate professional was created because people realized a need for it. Here are some of the top reasons why it's best to hire one before entering the market.
1. What do you do with all this paperwork?
Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.
2. So you found your dream house, now what?
There are over 230 possible steps that need to take place during every successful real estate transaction. Don't you want someone who has been there before, someone who knows what these actions are, to ensure you achieve your dream?
3. Are you a good negotiator?
So maybe you're not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you'll soon realize the value in selecting a real estate professional. From the buyers (who want the best deals possible), to the home inspection companies, all the way to the appraisers, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.
4. What is the home you're buying/selling really worth?
It is important for your home to be priced correctly from the start in order to attract the right buyers and shorten the amount of time that it's on the market. You need someone who is not emotionally connected to your home to give you its true value. According to a recent article by the National Association of Realtors, FSBOs achieve prices significantly lower than the prices of similar properties sold by real estate agents:
"FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent."
Get the most out of your transaction by hiring a professional!
5. Do you know what's really going on in the market?
There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; how do you know what's going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?
Dave Ramsey, the financial guru, advises:
"When getting help with money, whether it's insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman."
Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
You wouldn't replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?
Be thankful to people who push us to be better. Let's not settle with what we have and be stagnant when we know we can have more.
If we work on it right, every one of us could be sitting on our very own gold mine. According to millionaire David Bach, buying a home could be our ticket to wealth. This may sound counter-intuitive to some if given some thought will actually make a lot of sense. Homes have been at the top of the list of peoples investments for centuries.
In a CNBC article, self-made millionaire David Bach explained that: "Buying a home is the escalator to wealth in America. Homeownership can also help you retire early, that is, if you pay your mortgage off."
Bach suggests that homebuyers should, "Take out a 30-year mortgage, but with the intention of paying it off in 25, 20 or ideally, 15 years."
How does he suggest you do this?
Here's the secret:
"...If you were paying $1,000 a month, now you're going to make $1,100 payments every month. Inform the bank that you are doing this and that you want the extra $100 a month to be applied to the principal (not the interest)."
What will happen to your mortgage?
Bach explains that, "If you keep this up, you'll wind up paying off your 30-year mortgage in about 25 years. Increase your monthly payment by 20 percent, and you'll have that mortgage retired in about 22 years."
Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice - buy a home and pay off your mortgage early so that you can retire sooner with the money you will have saved!
Buying or selling a property has never been this cool!
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It's a simple case of supply and demand. Lower inventory equates to higher demand which in turn leads to faster sales and occasionally, even higher prices. So this means higher yield, less time in the market with little effort. Let's discuss.
The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that home sales declined 0.6% to a seasonally adjusted annual rate of 5.38 million in June from 5.41 million in May, and are 2.2% below a year ago. Some may look at these numbers and think that now is a bad time to sell their house, but in fact, the opposite is true.
The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are out in the market looking for their dream homes! In fact, the inventory of homes for sale had fallen year-over-year for 36 consecutive months before posting a modest 0.5% gain last month and has had an upward impact on home prices.
NAR's Chief Economist Lawrence Yun had this to say,
"It"s important to note that despite the modest year-over-year rise in inventory, the current level is far from what's needed to satisfy demand levels. Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up."
The few houses that are on the market are selling fast! According to NAR's Realtors Confidence Index, properties were typically on the market for 26 days.
If you are one of the many homeowners who is debating listing your house for sale this year, the time is now! Meet with a local real estate professional who can guide you through the process and discuss the specifics of your market!
Most people can't help but be concerned that mortgages changes may lead to another disaster, and we can't blame them for we've been there before. The question remains, is there any foothold to peoples worries? Are lending standards truly propping up our home prices?
Back in 2005, Federal Reserve Chairman Alan Greenspan described the dramatic increases in residential real estate values as a "froth in housing markets." Greenspan went on to say:
"The increase in the prevalence of interest-only loans and the introduction of more-exotic forms of adjustable-rate mortgages are developments of particular concern...some households may be employing these instruments to purchase homes that would otherwise be unaffordable, and consequently their use could be adding to pressures in the housing market."
Greenspan was warning that the loosening of lending standards could lead to disaster. And it did.
With home prices again appreciating at percentages well above historic norms, many are wondering whether the market is again becoming "frothy." Mortgage standards are much stricter now, however, than they were in 2005.
The Urban Institute's Housing Finance Policy Center issues a monthly index which measures the percentage of home purchase loans that are likely to default. A lower score indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards. A higher score indicates that lenders are willing to tolerate defaults and are taking more risks.
Their July Housing Credit Availability Index revealed credit availability rose to 5.9%. For context, they went on to explain:
"Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market."
Here is a graph depicting the Urban Institute's findings:
Though it may be slightly easier to get a mortgage today than it was a year ago, lending standards are nowhere near where they were during the build-up to the housing bubble.
Despite the common belief that renting will save you more bucks, research shows a big gap in between buying and renting wherein for the first time in six years favors going to the former.
The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting, with a traditional 30-year fixed rate mortgage, in 98 of the 100 largest metro areas in the United States.
In the six years that Trulia has conducted this study, this is the first time that it was cheaper to rent than buy in any of the metropolitan areas.
It's no surprise, however, that those two metros are San Jose and San Francisco, CA, where median home prices have jumped to over $1 million dollars this year. Home values in San Jose have risen 29% in the last year, while rents have remained relatively unchanged.
For the 98 metros where homeownership wins out, 97 of them show a double-digit advantage when buying. The range is an average of 2.0% less expensive in Honolulu (HI), all the way up to 48.9% in Detroit (MI), and 26.3% nationwide!
Below is a map of the 100 metros that were studied. The darker the blue dot on the metro, the cheaper it is to buy there.
In order to calculate the true cost of renting vs. buying, Trulia includes all assumed renting costs, including one-time costs (like security deposits), and compares them to the monthly costs of owning a home (insurance, mortgage payments, taxes, and maintenance) including one-time costs (down payments, closing costs, sale proceeds). They also assume that households stay in their home for seven years, put down a 20% down payment, and take out a 30-year fixed rate mortgage. The full methodology is included with the study results here.
Below is a chart created with the data from the last six years of the study, showing the impact of the median home price, rental price, and 30-year fixed rate interest rate used to calculate the 'cheaper to buy' metric.
In 2016, when buying was 41.3% less expensive than renting, the average mortgage rate was the driving force behind the difference. Rates this year are the highest they have been in six years which has narrowed the gap, all while home price appreciation has also been driven up by a lack of homes for sale.
Cheryl Young, Trulia's Chief Economist, had this to say,
"One point deserves emphasizing: The ultra-costly San Francisco Bay Area is not a harbinger for the nation as a whole. While renting may outweigh buying in San Jose and San Francisco, it is unlikely that renting will tip the scales nationally anytime soon."
Homeownership provides many benefits beyond the financial ones. If you are one of the many renters out there who would like to evaluate your ability to buy this year, meet with a local real estate professional who can help you find your dream home.
Not all agents are the same, some may be better than others particularly because of their knowledge of the demographics and there are some who just have the right priorities. Let's talk about what you should look for in an agent before deciding to hire them.
One great example of an agent who is in your corner and is always looking out for your best interests is one of the main characters on ABC's Modern Family, Phil Dunphy.
For those who aren't familiar with the character, Phil is a REALTOR with a huge heart who always strives to do his best for his family and his clients.
In one episode, he even shared an oath that he created and holds himself accountable to:
"On my honor, I promise to aid in man's quest for shelter, to recognize I'm not just in the business of houses -- I'm in the business of dreams in the shape of houses. To disclose all illegal additions, shoddy construction, murders, and ghosts. And to put my clients' needs before my own."
While this might seem silly, as it was definitely written with humor in mind, the themes of helping someone achieve the American Dream and putting a client's needs above his own are not to be taken lightly.
When you make the decision to enter the housing market, as either a buyer or a seller, make sure you look for an agent who exemplifies these values and will help you through every step of the process.
Don't miss the opportunity to witness the beauty of this home. Open House tomorrow, July 29th at 1PM-3PM located at 9 Woodland Road Bedford, NY 10506.
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In the ever competitive world of real estate, the measure of the effectiveness of a marketing strategy is an average of different things. For instance, the cost of your marketing material, how long does it take for you to actually sell your inventory, the amount of effort you have to put in and a few more that I would like to discuss with you in detail on our future posts. The term "the end justifies the means" does not apply at all in this industry anymore. With this in mind, I like to introduce you to Customer-centric Marketing Strategy.
Focus on What the Customer Wants, Instead of What You Want.
Traditionally, if you wanted a customer to purchase a home from your client, you would advertise that specific home in the newspaper. You might target postcards featuring the listing to the demographic you are trying to reach. And you'd probably fill your Facebook page with information about the home and the open house you have scheduled next Saturday. You want someone to buy that house. So naturally, you focus your attention on selling that house. And maybe that works for you sometimes. But focusing your marketing efforts exclusively on the product you're trying to sell is a short-sighted strategy that takes a lot of energy and money. It ultimately doesn't do anything to build your brand as the sharp and helpful real estate professional you are. It's all about you and what you want right now. But what about the customer?
What's in It for Me?
People who are thinking about buying or selling a home typically have a lot of questions. As a licensed real estate professional, you are uniquely positioned to answer those questions from a perspective of expertise. In fact, you could probably give them answers to questions they haven't even thought of yet. Your knowledge is the kind of thing potential clients value, and the kind of thing they really need. There are a million different ways you could share that knowledge with them, from social media and blogging to live information sessions and webinars. You could even try to partner with your local newspaper to answer these questions in a weekly column. It would be a much better use of the money you're spending on newspaper ads.
The "how" of your marketing is important, but it isn't nearly as important as the "who," "what," and "why." If you dedicate yourself to becoming a resource for real estate buyers and sellers, you have the opportunity to build a relationship with them that has nothing to do with buying and selling. It has everything to do with you providing valuable support to them when they need it. And when that person is in a position to buy or sell a home, who do you think they're going to call?
A Customer Focus Allows You to Take Control of Your Lead Generation
Lead generation is something many real estate professionals struggle with. First of all, it's difficult getting people to give you their contact information and grant you permission to market to them. So, you probably take a sign-in sheet to all of your open houses. You probably add every potential lead you speak with to a database. The other difficult part about lead generation is that you have no idea how qualified your leads are, or specifically what they're interested in. So, you probably market to all of them with the exact same message.
Focusing your marketing on the customer you serve will allow you to better qualify your leads, and communicate to them with a message they're more willing to hear. For instance, what if you conducted a free Q&A session on things to consider when shopping for your first home? You would simply field questions on the process of purchasing a home and help them become more comfortable with the big step they're about to take. You could follow up that event with a series of emails that provide additional tips to consider when purchasing a first home. Itâs a targeted message, it provides value to the customer, and it keeps you top of mind when they're ready to begin the buying process.
Make Your Marketing Budget Work for You
You don't have an unlimited marketing budget. Why not spend at least some of it saying something people actually want to hear? As consumers today, we are bombarded by messages to buy. It's all around us, but we've naturally been trained to ignore it. This is your opportunity to build a long-term marketing strategy that breaks through the clutter, fills your lead pipeline, and keeps your business running for years to come. Compared to all of the other activities you're probably already investing in, this is a low-cost alternative that relies primarily on your willingness and ability to demonstrate your expertise. Helping people, even when there's not an immediate financial reward for you, will ultimately be to your benefit.
Traditional real estate marketing tactics will likely always be a part of your mix. It's important to make sure people are aware of the listings you have at any given time. But if you focus the bulk of your marketing efforts on meeting the needs of your clients, you'll have a more attentive audience when you solicit new clients and market the homes you're trying to sell.
Congratulations, Tiffany West! Another home sold! We would like to express our gratitude to our sellers for trusting our service. Keep the sales coming!
If you're thinking about selling. Don't hesitate to get in touch with us.
Many can't help but worry that we may be on the verge of another housing bubble. Believe it or not, despite what statistics may seem, experts say that we shouldn't be too concerned about an impending housing bust.
Here are four key metrics that will explain why:
There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.
Last week, CoreLogic reported that,
"The inflation-adjusted U.S. median sale price in June 2006 was $247,110 (or $199,899 in 2006 dollars), compared with $213,400 in March 2018." (This is the latest data available.)
2. MORTGAGE STANDARDS
Many are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble. However, there is proof that today's standards are nowhere near as lenient as they were leading up to the crash.
The Urban Institute's Housing Finance Policy Center issues a monthly index which,"â¦measures the percentage of home purchase loans that are likely to default--that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan."
Their July Housing Credit Availability Index revealed:
"Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market."
3. FORECLOSURE RATES
A major cause of the housing crash last decade was the number of foreclosures that hit the market. They not only increased the supply of homes for sale but were also being sold at 20-50% discounts. Foreclosures helped drive down all home values. Today, foreclosure numbers are lower than they were before the housing boom.
Here are the number of consumers with new foreclosures according to the Federal Reserve's most recent Household Debt and Credit Report:
4. HOUSING AFFORDABILITY
Contrary to many headlines, home affordability is better now than it was prior to the last housing boom. In the same article referenced in #1, CoreLogic revealed that in the vast majority of markets, "the inflation-adjusted, principal-and-interest mortgage payments that homebuyers have committed to this year remain much lower than their pre-crisis peaks."
They went on to explain:
"The main reason the typical mortgage payment remains well below record levels in most of the country is that the average mortgage rate back in June 2006, when the U.S. typical mortgage payment peaked, was about 6.7 percent, compared with an average mortgage rate of about 4.4 percent in March 2018."
The "price" of a home may be higher, but the "cost" is still below historic norms.
After using these four key housing metrics to compare today to last decade, we can see that the current market is not anything like that bubble market.
Lifestyle changes are dramatic during retirement, so is the change in finances. The question is, "will your home be still a good fit for you after retirement?". There are a lot of factors to consider in order to determine if your current home will still be sustainable after you retire.
According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.
"It may be easy enough to afford your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities - all the things that will be due whether or not you have a mortgage on the property"
Would moving to a complex with homeowner association (HOA) fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?
"If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage."
The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $16,300 in equity last year.
"As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline."
As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind in knowing that you do not have to do the maintenance work yourself?
"Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind."
As scary as that thought may be, any additional security and an extra set of eyes looking out for you always adds to peace of mind.
"Renting won't do if the dog can't come too! The companionship of pets can provide emotional and physical benefits."
Evaluate all of your options when it comes to bringing your 'furever' friend with you to a new home. Will there be necessary additional deposits if you are renting or moving in to a condo? Is the backyard fenced in? How far are you from your favorite veterinarian?
"No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility."
Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn't mean that down the road you won't need your home to be more accessible. Having to install handrails and make sure that your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.
"Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!"
How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider.
When it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, contact a local real estate professional who can evaluate your ability to sell your house in today's market and get you into your dream retirement home!
Sometimes to be able to get the best out of things, we must act against our gut will. This applies to what we are about to discuss with you today. Selling your home may sound to be simple enough, but not when you what to get the best price for your home's value at the time. Here are two sure way to sell your home for the best value.
1. Price it a Little Low
This may seem counterintuitive, but let's take a look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation when, in actuality, it just dramatically lessens the demand for their houses (see chart below).
Instead of the seller trying to 'win' the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.
Realtor.com gives this advice:
"Aim to price your property at or just slightly below the going rate. Today's buyers are highly informed, so if they sense they're getting a deal, they're likely to bid up a property that's slightly underpriced, especially in areas with low inventory."
2. Use a Real Estate Professional
This, too, may seem counterintuitive as the seller may think that he or she will make more money by avoiding a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by real estate professionals.
A study by Collateral Analytics, reveals that FSBOs don't actually save any money, and in some cases may be costing themselves more, by not listing with an agent. The data showed that:
"FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate."
The results of the study showed that the differential in selling prices for FSBOs, when compared to MLS sales of similar properties, is about 5.5%. Sales in 2017 suggest the average sales price was near 6% lower for FSBO sales of similar properties.
Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.
"A new home is a haven for love, memories, and happiness." Congratulations to our clients and thank you for trusting our service in finding your dream home. Great job to Kavita for another closing!
If you are looking for a property or want to sell your home give us a call at 914.920.2299 or check our website www.nyreex.com
Be in the know. Here's the Yonkers' update for this week, read all about it.
In 1849, John T. Waring founded the Waring Hat Manufacturing Company in the City of Yonkers. It was one of three hat manufacturers in Yonkers at the time. However, by the end of the 19th century, the company produced more hats per day than any other hat company in the world!
Everyone is bound to retire at some point, and everyone wants to spend their retirement days comfortably and securely. What most don't know is that investing a portion of one's retirement fund to real estate will provide more yield and let one get the most out of the fruit of their life's work.
Ultimately, the goal of most individuals when they retire is to live a comfortable lifestyle while drawing from their retirement accounts. This is where the self-directed retirement account comes into play. This retirement vehicle allows accountholders the ability to own investment real estate within their retirement account. Instead of selecting bonds or annuities, which have long been the traditional investment of choice by most retirees, investment real estate often provides a higher annual yield and more flexibility for the accountholder.
For example, let's suppose you are 60, ready to retire, and your retirement account is worth around $500,000. Let's also assume your self-directed retirement account purchases three investment rental properties totaling $450,000. The rental income minus expenses equals $31,500 (a 7% return) each year. Keep in mind, this is the net cash flow back into the retirement account and does not include any property appreciation. So, in this scenario, you have $50,000 in cash within your retirement account for easy liquidity should a personal need arise, $450,000 worth of real estate, and $31,500 of rental income being generated each year.
Under this scenario, provided the properties remained occupied with no major property expenses, you could draw $31,500 per year from the account in perpetuity without reducing the value of your retirement account. Down the line, you may want to liquidate an investment property to give you the ability to take more money out per year, which will then begin to actually deplete the value of the account.
Owning real estate within your self-directed retirement account allows you to preserve your retirement income, and gives you the flexibility to control how you retire.
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With experts forecasting the next recession in the horizons, how will the real estate industry be affected? The good news is, it will not fall victim to the next economic storm at all.
Here are the opinions of several experts on the subject: