May 28, 2015 | Home Seller Tips
Getting an offer on your house is the first step in getting it sold, but buyers often feel that they have to come in lower than your asking price. After all, everyone wants the deal to work out in their favor. If the offer you received isn’t quite what you hoped, you can always make a counter-offer. Getting the details right can help make your deal go more smoothly.
Deciding On A Price
When your real estate agent helped you set the price of your home, you already had an idea of what it should fetch in the marketplace. If the offer wasn’t far off from your asking price, it’s acceptable to counter with your original asking price. Many buyers could be willing to pay full price. If you feel that technique is a bit brazen for your style, you could instead drop the original price by a few thousand dollars.
Another technique is to try to “meet in the middle”. For example, if there’s a $10,000 difference between the asking price and the offer price, you might offer to drop the price $5,000. Of course, the bigger the difference, the less enthusiastic you’ll be about dropping your price.
Factors To Consider
Keep in mind that the actual selling price of the house isn’t the only thing that will be negotiated. If you’re giving in a little bit, then you should expect to get a bit in return, but the same is true for the buyer. For example, a first-time homebuyer might not have a lot of money for a down payment. If you counter with an offer that’s too high, they might respond with another offer accepting the price, but asking for seller’s concessions at closing time.
Additionally, as you start to come down in price, you might consider taking out items that you might have included in the original offer, such as high-end appliances.
Don’t Forget The Fine Details
Discuss the details of what you want with your real estate agent. They’ll be able to let you know if you’re making the right move, considering the current market in your area. They may also have information about the buyers, such as an educated guess about how high they’re willing to go. Your agent will also have all the paperwork you need readily available. In most cases, all you have to do is fill in the blanks in a few spaces.
You want the highest price for your home, but getting the best deal is often a delicate dance. Know your limits and work together with the buyers to reach an agreement that is mutually beneficial.
May 27, 2015 | Market Outlook
San Francisco, California where home prices rose 10.30 percent year over year in March, and Denver, Colorado with an even 10 percent gain in year-over-year home prices led the Case-Shiller 20-City Composite Index for March. Rounding out the top-five cities for year-over-year home price growth were Dallas Texas at 9.30 percent, Miami, Florida at 8.70 percent and Tampa, Florida with a year-over-year average gain in home prices at 8.10 percent. San Francisco’s reading for March was the first double-digit increase in home prices since last July.
The five lowest year-over-year price gains occurred in Washington, D.C. and Cleveland, Ohio tied at gains of 1.0 percent, New York City with a year-over-year gain of 2.70 percent, Minneapolis, Minnesota with a gain of 3.00 percent and Phoenix, Arizona with a year-over-year increase of 3.10 percent.
Overall, the Case-Shiller 20-City Home Price Index rose by 5.0 percent year-over-year and by 0.90 percent in March. Analysts said that while home prices remain 16 percent below their pre-recession peaks, home prices are 31 higher than the lows recorded in March 2012.
When asked if house prices are in a bubble, David Blitzer, chairman of the S&P Index Committee said that “The only way to tell if housing prices were in a bubble is looking back after it’s over.” Mr. Blitzer said that adjusted for inflation, home prices have increased on average by one percent per month since 1975, and that the current 4.10 percent monthly growth of home prices could suggest a bubble. Mr. Blitzer cautioned that home price increases are outpacing increases in personal income and national wage growth, a circumstance which reduces the pool of potential home buyers due to affordability issues.
FHFA House Price Index Posts 5.2 Percent Gain Year-Over-Year
The Federal Housing Finance Agency (FHFA) reported that as of March, prices for homes connected with Fannie Mae and Freddie Mac mortgages rose by 5.20 percent year-over-year. The agency also said that average home prices increased by 1.30 percent in the first quarter of 2015.
Home prices were 5.0 percent higher in the first quarter of 2015 than for the first quarter of 2014. This data is consistent with the unrelated Case-Shiller home price data for March. FHFA reported that home prices rose in 48 states between the first quarters of 2014 and 2015. The states with the top rates of year-over-year home price growth were:
Colorado 11.20 percent
Nevada 10.10 percent
Florida 8.70 percent
Washington 7.60 percent
California 7.50 percent
The Mountain Division led the nine Census Bureau Divisions in home price growth with a growth rate of 2.60 percent in the first quarter and a year-over-year growth rate of 6.80 percent.
May 26, 2015 | Market Outlook
Last week’s economic reports included several readings related to housing The Wells Fargo/National Association of Home Builders Housing Market Index, the Commerce Department’s releases on Housing Starts and Building Permits, and the National Association of Realtors® report on Existing Home Sales supplied mixed news on recent developments in housing. Freddie Mac and the Labor Department released their usual reports on mortgage rates and weekly jobless claims. The details:
NAHB: Builder Confidence Slips, But Remains Positive
The Wells Fargo/ National Association of Home Builders (NAHB) released its Housing Market Index report for April. Although April’s reading was two points lower at 54, any reading over 50 indicates that more builders consider housing market conditions positive than not. April’s reading on builder confidence was the 11th consecutive index reading over 50.
According to NAHB, builder confidence in present housing market conditions dropped by two points to a reading of 59, while builder confidence in market conditions over the next six months rose one point to 64. Builder expectations for buyer foot traffic dropped by one point to 39. The lower readings for buyer traffic could be related to more home shoppers starting their home search online.
Building Permits, Housing Starts Show Improvement
The Commerce Department reported that building permits for April were higher at 1.14 million as compared to the March reading of 944,000 permits issued in March. Analysts expected a reading of 1.03 million permits issued, This was the highest reading for building permits since mid-2008.
Housing starts rose by a noteworthy 20 percent to a reading of 1.14 million in April, but analysts cautioned that this reading was inconsistent with the more moderate pace of improvement in overall housing markets. The Commerce Department reported that starts of single family homes rose by 17.60 percent to a reading of 666,000 starts. This was the highest rate of single-family starts since early 2008, but analysts noted that April’s high reading for housing starts could reflect delayed starts that were impacted by winter weather.
Existing Home Sales Fall Due to Rising Home Prices
The National Association of Realtors® reported that sales of previously owned homes dropped as home prices increased. A tight supply of available homes and higher home prices slowed the sales pace of existing home sales. April sales of existing homes fell from the March level of 5.21 million sales to 5.04 million sales; analysts had forecasted a higher sales volume of 5.24 million existing homes sold.
Rising home prices pose challenges to first-time and moderate income home buyers, and strict mortgage standards can make it tough for those with less than stellar credit scores to qualify for mortgages. Rising home prices are good news for homeowners as bidding wars have been reported in high-demand areas.
Mortgage Rates Lower, Jobless Claims Up
Freddie Mac reported that average mortgage rates were slightly lower. Mortgage rates for a 30-year fixed rate mortgage dropped by one basis point to 3.84 percent. Discount points rose from 0.60 to 0.70 percent. Mortgage rates for a 15-year fixed rate mortgage averaged 3.05 percent with average discount points of 0.60 percent. The average rate for a 5/1 adjustable rate mortgage was one basis point lower at 2.88 percent; discount points were unchanged at 0.50 percent.
Weekly jobless claims rose to 274,000 new claims filed. This reading exceeded expectations of 269,000 new claims and the prior week’s reading of 264,000 new claims. Analysts said that although this was a four-week high for new unemployment claims, layoff s remain low. Year-over-year, new jobless claims were 16 percent lower. New jobless claims remain close to a 15-year low and layoffs hit their lowest level on record. This news could build prospective home buyer confidence as job security plays a major rrole in most decisions to buy a home.
What’s Ahead
This week’s housing related reports include the S&P Case-Shiller 10 and 20-City Home Price Indexes and the FHFA Home Price Index. New and Pending Home Sales reports and the usual mortgage rates and weekly jobless claims reports are also scheduled.
May 22, 2015 | Around The Home
In many areas, the spring months mean warmer temperatures, more sunshine and plenty of beneficial rainfall that your yard may thrive with. These are prime growing conditions for your lawn, but they can also make lawn maintenance a challenge. By following these helpful tips, you can take better care of your yard during the rainy spring season.
Re-Seed or Re-Sod Carefully
The spring months are one of the best times of the year to re-seed or re-sod your lawn. If you have bare spots in your yard, these spots can turn into giant mud puddles during a heavy rainstorm that can be a true eyesore. New grass seed and fresh sod both require ample water to grow, so you can take advantage of the rain to grow new grass in your bare areas.
Mow When Possible
The sunshine, warm temperatures and ample rain can all make your grass grow quickly, and it can also make your weeds grow even faster. Mowing your lawn frequently will help you to keep the weeds from spreading seeds throughout the yard and creating an even greater problem. It can be difficult to find a time when the grass is dry enough to mow at certain times, so you may need to make mowing a priority during dry spells. This will also help you to keep your yard looking neat and tidy during the peak growing season.
Fertilize As Needed
Fertilizing the yard can also be beneficial during the warm weather season. Fertilization now can give you lush, green grass for many months to come. It can also be beneficial for you by helping to get rid of weeds that may be cropping up. Fertilizer needs water, so fertilizing before a light rain storm is a smart idea.
Avoid Walking On It
Grass can easily become damaged when you walk across it after a rain storm. It can tear the blades from the roots and create a trampled upon look that is not desirable. You can minimize damage to your yard by not walking on it until the ground has dried out again.
Taking care of your lawn may be a top priority year-round, but your focus may be drawn to it after the chilly winter months transition into warmer, wetter spring months. By following these tips, you can take better care of your yard throughout the spring and beyond.
May 21, 2015 | Real Estate Tips
When many people think about investing in property, they think about purchasing income-producing real estate such as a residential property or an office building with tenants. There are indeed many benefits associated with investing in income-producing property. For example, these properties may produce rent that can offset your ownership expenses. However, buying raw land can also be an excellent long-term investment strategy.
By learning more about the benefits of investing in raw land, you may be ready to start searching for real estate to invest in soon.
Minimal Ownership Expenses
Raw land will not have as many ownership expenses as land. This property may not produce rental income for you, but you also will not have to maintain or repair a building or pay for property insurance. Property taxes and a mortgage payment may be lower as well. Typically, your main expense will be the mortgage payment, and this may be far less than what a mortgage payment on developed land may be.
You essentially will be able to pay for the property outright to have no expenses or to leverage your investment and make affordable mortgage payments to pay for your investment.
Significant Potential Gain
There is a significant potential for long-term financial gain with your purchase of raw land. Consider that you can adjust the zoning or subdivide the property as desired. You can also wait for urban sprawl to reach the area to drive up demand and value for the property. It can be difficult to predict when the property value will increase. However, when you select a property in an area that seems to be growing, you may expect there to be some demand for that property in the coming years. Many who have invested in raw land may realize a significant gain when they make plans to hold onto the property for several years or longer before selling it.
Before you make any financial investment, it is important that you consider the amount of time that you wish to hold the investment before seeing a return on it. With raw land, you generally need to anticipate hanging onto the asset for several years or even decades before seeing a financial gain.
Keep in mind that land is a limited resource, and there is increasing demand for it as populations rise in many areas. With this in mind, you can generally expect most property values to eventually rise over time.
