The Importance of Using a Professional to Sell Your Home

The Importance of Using a Professional to Sell Your Home | MyKCM

When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes 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. According to the National Association of Realtors’ 2016 Profile of Home Buyers & Sellers, the percentage of buyers who used the internet in their home search increased to 94%.

However, the report also revealed that 96% of buyers who used the internet when searching for homes purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their homes 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 home they will buy (50%), to negotiate the terms of the sale (47%) & price (36%), or to help understand the process (61%).

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 have used agents to buy their homes 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.

3 Reasons the Housing Market is NOT in a Bubble

3 Reasons the Housing Market is NOT in a Bubble | Keeping Current Matters

With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble ten years ago.

Last decade, demand for housing was artificially propped up because mortgage lending standards were way too lenient. People that were not qualified to purchase were able to obtain a mortgage anyway. Prices began to skyrocket. This increase in demand caused homebuilders in many markets to overbuild.

Eventually, the excess in new construction and the flooding of the market with distressed properties (foreclosures & short sales), caused by the lack of appropriate lending standards, led to the housing crash.

Where we are today…

1. If we look at lending standards based on the Mortgage Credit Availability Indexreleased monthly by the Mortgage Bankers Association, we can see that, though standards have become more reasonable over the last few years, they are nowhere near where they were in the early 2000s.

3 Reasons the Housing Market is NOT in a Bubble | Keeping Current Matters

2. If we look at new construction, we can see that builders are not “over building.”Average annual housing starts in the first quarter of this year were not just below numbers recorded in 2002-2006, they are below starts going all the way back to 1980.

3 Reasons the Housing Market is NOT in a Bubble | Keeping Current Matters

3. If we look at home prices, most homes haven’t even returned to prices seen a decade ago. Trulia just released a report that explained:

“When it comes to the value of individual homes, the U.S. housing market has yet to recover. In fact, just 34.2% of homes nationally have seen their value surpass their pre-recession peak.”

Bottom Line

Mortgage lending standards are appropriate, new construction is below what is necessary and home prices haven’t even recovered. It appears fears of a housing bubble are over-exaggerated.

Access: A Key Component in Getting Your House SOLD!

Access: A Key Component in Getting Your House SOLD! | MyKCM

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process, and they have asked you what level of access you want to provide to potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home.

Here are five levels of access that you can give to buyers, along with a brief description:

  1. Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
  2. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
  3. Open Access with a Phone Call – the seller allows showing with just a phone call’s notice.
  4. By Appointment Only (example: 48 Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
  5. Limited Access (example: the home is only available on Mondays or Tuesdays at 2pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.

In a competitive marketplace, access can make or break your ability to get the price you are looking for, or even sell your house at all.

Home Sales Expected to Increase Nicely in 2017

The National Association of Realtors, The Mortgage Bankers’ Association, Freddie Mac and Fannie Mae are all projecting that home sales will increase in 2017. Here is a chart showing what each entity is projecting in sales for this year and the next.

Home Sales Expected to Increase Nicely in 2017 | MyKCM

As we can see, each is projecting sizable increases in home sales next year. If you have considered selling your house recently, now may be the time to put it on the market.

Are You Ready to Sell Your Home?

Time To Sell

 

For most homeowners, being financially ready to sell comes down to one factor: equity. During the housing meltdown of 2008–09, millions of homeowners found themselves with negative equity, which meant they owed more on their homes than they were worth.

Clearly, selling your home when you have negative equity is a bad deal. That’s called a short sale, and it impacts your credit almost as much as a foreclosure. Breaking even on your home sale is better, but it’s still not ideal. If you’re in either situation, don’t sell unless you have to in order to avoid bankruptcy or foreclosure.

For the last several years, home values have been on the rise, and that means most homeowners are building equity. Their homes are now worth more than they owe on them, and that trend will persist as they pay down their mortgages and home values continue to increase.

Financially speaking, it is best to sell your home when you have enough equity to at least cover the down payment on your next home. Or, you can go all the way and use the proceeds to buy your next home outright—no more mortgage for you!

How Much Equity Do You Have?

To figure out how much equity you have in your home, first find out your mortgage balance. That’s easy enough—simply look on your latest mortgage statement.

Next you’ll need to know how much your home is worth. While it’s tempting to use figures from online home valuation sites, they’re not always accurate. You don’t want to base such an important decision on iffy information.

Contact a real estate professional who will compare your home to others that have recently sold and take local market trends into account. You can trust their estimate to reflect what your home is worth based on their experience selling homes in your area.

Are You Ready to Make the Move?

If the numbers show you’re in good shape financially to make a move, great! But don’t forget, selling a home is an emotional issue too. Before you plant the For Sale sign in the front yard, take a minute to answer just a few more questions:

  • Are you ready to put in the work to get your home ready for house hunters?
  • Are you committed to keeping it ready to show for weeks or months?
  • Are you ready to hear the reasons why potential buyers believe your home is not perfect?
  • Are you ready for honest—and sometimes hardball—negotiations over what buyers are willing to pay for your home?
  • Are you really ready to move out and leave the place where your family has made memories?

Don’t get us wrong; we’re not trying to talk you out of selling your home! We just want you to be completely ready when you do decide to move on to the next stage of your family’s life.

A qualified real estate agent will give you a clear picture of what it’s like to sell a home and if now is the right time for you, both financially and emotionally.

(Courtesy Dave Ramsey blog: https://www.daveramsey.com/blog/ready-to-sell-your-home)

5 Reasons Your House Won’t Sell: How to Avoid Them

The condition of your home can either make or break a great sale. Make your home shine before you put it on the market.

The condition of your home can either make or break a great sale. Make your home shine before you put it on the market.

Giving thought to selling a home? Before you place it on the market, consider these five very important factors:

1. PRICE A home that is priced correctly will attract the greatest number of buyers. Since there is a direct correlation between the number of potential buyers who view a residence and its final sales price, properties that are priced competitively generate the largest possible net profits for the seller.

If you are considering the sale of a residence or investment property, please give serious thought to pricing it correctly. To determine the best possible asking price, employ the services of a licensed real estate expert. He/she can provide you with an accurate professional property evaluation.

2. CONDITION The condition of a home is nearly as important as are the asking price and the terms being offered. Homebuyers purchase properties as much on their emotional appeal as on any other single factor.

Home sellers who are willing to make their residences sparkle receive a greater net profit and sell their properties more quickly. Staging is a great way to make your home as appealing as possible, and hiring an experienced agent who has the expertise you need to make your residence shine.

3. LOCATION A property’s value is, in part, determined by its surroundings. Homes in great locations sell for higher prices and more quickly.

Neither a real estate professional nor the seller can control a home’s location. For this reason, location must be given serious consideration when pricing a house.

4. MARKET CONDITIONS The overall economic conditions in a home’s locale often determine the length of time it takes to sell and its final selling price.

If economic times are difficult, supply and demand must be given consideration when preparing a home for the market and when pricing it. When local economies are suffering, the demand for homes goes down and the supply of homes goes up. Under these circumstances, the only properties that sell are those that are in excellent condition and are priced correctly.

5. MARKETING An agent’s marketing skills are critical to maximizing a seller’s net proceeds and to minimizing inconveniences.

It is your real estate professional’s responsibility to attract as many well-qualified buyers as possible into a seller’s home. The agent’s ability to accomplish this task will determine the size of the seller’s net proceeds check. For this reason, it is very important for a seller to choose an agent carefully. Hire only an agent who has an organized marketing plan.

Two Graphs That Scream List Your House Today

Two Graphs That Scream You Should List Your House Today! | Keeping Current Matters

The spring and summer months have always been known as a very popular time for homebuyers to start the search for their dream home. This year is no different! We all learned in school that when selling anything, you will get the most money if the demand for that item is high and the inventory of that item is low. It is the well-known Theory of Supply & Demand. If you are thinking of selling your home, here are two graphs that strongly suggest that the time is now. Here is why…

DEMAND

According to research at the National Association of Realtors (NAR), buyer activity this year has far outpaced the same months in 2014. Purchasers who are ready, willing and able to buy are in the market at great numbers.Foot Traffic | Keeping Current Matters According toNAR, “Foot Traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.”

SUPPLY

The most recent Existing Home Sales Report from NAR revealed that the current supply of housing inventory is at a 5.1 month supply, which remains below the 6-months necessary for a normal market. Inventory of Homes for Sale | Simplifying The Market

Buyer demand is far outpacing the supply of homes available for sale.

Bottom Line

Listing your house for sale when demand is high and supply is low will guarantee the offers made will truly reflect the true value of your property.