May 15, 2020 | Real Estate
A “buyer’s market” happens when people looking to buy a home have a stronger bargaining position than the sellers have. In a classic economic sense, a buyer’s market occurs when the supply of homes available for sale exceeds the demand for them. However, other things in real estate create a buyer’s market.
Causes Of A Buyer’s Market
Besides having too many homes for sale and too few buyers, a buyer’s market in real estate may come from widespread credit market problems. There may be plenty of buyers interested in homes that are for sale, yet they may not be able to get a loan to buy the home. This may be caused not only by the credit history and qualifications of the buyers but also by the lending institutions’ available funding to make loans.
Another thing that can cause a buyer’s market for homes to suddenly emerge is a major relocation or closing of a large employer in an area. If the jobs disappear for many people, then they may have to move to find work.
Ways to determine if a specific area is a buyer’s market include tracking the median number of days that homes stay for sale on the market listings. Another strong indicator is the number of homes that lower their listing price.
Selling A Home In A Buyer’s Market
In a buyer’s market, trying to sell a home may be much more challenging. Here are our tips to sell a home in a buyer’s market:
- Price: To be competitive, price the home at a very compelling level that is up to 5% less than the market value of comparable properties.
- Staging: Stage the home to be in a perfect immaculate condition with extremely attractive interior design elements. Remove everything from the home, repaint, and then rent brand-new furniture. Use the services of a professional interior designer to make the home aesthetically stunning.
- Paint: Paint the home inside and out. Use contemporary colors in a trending color scheme that is attractive for the most potential buyers. Avoid brash colors. Color choices should be neutral but not boring.
- Home Inspection: Conduct a professional pre-inspection of the home, fix all the items that need repair, and show the inspection report and the receipts for the work done to any potential buyers.
- Home Warranty: Offer a one-year home warranty included in the sale price, which covers the major appliances and home systems.
- Energy-Efficiency: Install energy-efficient windows, seal around windows and doors to prevent leaks, and upgrade insulation to make the monthly utility bills as low as possible.
- Use a Top Real Estate Agent: Work with an agent that has a track record of selling homes recently, who is a “closer” when it comes to making a sale.
Summary
If possible, try to avoid selling a home in a buyer’s market and wait for a better time. If that is not possible, or the market is permanently damaged and will be a buyer’s market for a long time, then take these steps to give your home advantages when compared to other homes that are for sale.
May 14, 2020 | Real Estate
Attractive landscaping is one of the first things that potential home buyers notice. They may see the landscaping in the photos of a home for sale or may even do a physical drive-by. The view of the property from the street is called “curb appeal.” It is important to make this be as nice as possible.
In many parts of the country, there are pressures on the water supply that make having a lush-green, living lawn very costly or even prohibited by the local regulations. Innovative technology and the use of natural ground covers, such as stone and rocks are replacing the green lawns that most people think of when considering landscaping a home properly.
Here is a guide to some landscaping that is attractive and worth considering to make a home look spectacular and require little maintenance:
Artificial Turf
Artificial turf has improved dramatically over the past few years. There is no longer the need to use the obvious green plastic covering of cheap fake grass. The newest artificial turf products look so much like real grass that it is nearly impossible to tell that they are not real. They can be installed over drainage rock and washed down with water like real grass.
Decorative Concrete
Molded concrete is now available in so many surface treatments, textures, and colors that it can represent almost any popular covering. For example, a nice European-style, cobbled-stone, street look is a popular choice for driveways and walkways. It is made out of molded, colored concrete, not stone, and installs easily.
Rock And Stone
Replacing areas of grass in the front yard with decorative rock and stone makes a nice look. It is better not to use wide swathes of this ground covering in big blocks. Instead, for a better aesthetic appeal, use natural rock and stone to create unique, eye-catching areas. For example, surrounding a wishing well with a nice circular area of rock pebbles creates a nice look.
Artificial Trees And Bushes
Advancements in the manufacturing of artificial bushes and trees developed very convincing products that are durable enough for exterior installation. Some best looking ones are the evergreen bushes.
They come in perfect heights of various sizes. They never need watering or trimming to make them look attractive. The only maintenance that they need is the occasional spray washing to remove dust and things that might fall on them like leaves from neighbor?s trees.
There are many to choose from. The modest-sized bushes are very inexpensive and usually less than $50 each. At the other end of the spectrum, are the exotic 11-feet tall artificial cheery trees that have built-in LED illumination. These are very dramatic and cost many thousands.
Summary
With these interesting ideas to consider, take a look at landscaping in a new way. Even though artificial landscaping requires an upfront investment, it can last for many years and may reduce overall maintenance costs significantly. If you ever want to sell the home, there will be much less landscaping needed to get it ready for sale.
May 13, 2020 | Real Estate
Once you’ve accepted an offer on your house, the next thing you should do is schedule a moving company. The earlier you plan for the moving company, the more time you’ll have to research your options and ensure that you can reserve the date you need.
Narrow Down By Services
The first step is to narrow down your choices so you can focus on moving companies that are best suited for your needs.
- First, determine if you need a long distance mover or a regional mover. Long distance movers will have larger trucks and/or semi-trailers; regional movers will have mid-to-small sized trucks only.
- Next, decide if you want to do all your packing yourself or if you want the movers to pack your possessions. Don’t worry about the furniture; most movers will insist on wrapping furniture to protect it from damage.
- Finally, decide if you want help unpacking on the other end.
Once you’ve narrowed down the list with these three criteria, you’re ready to start contacting moving companies.
Ask Questions
Prepare a list of questions to ask all the moving companies you’re considering. This way, you’ll be comparing apples to apples and it will make your final decision more clear. The first things to ask are if they meet the criteria that’s mentioned above. Next, move on to your prepared list.
Following are some questions you should definitely ask. You may also have other questions to add to the list.
- What kind of insurance coverage do you provide?
- What if my moving date needs to change?
- What guarantees do you offer as far as showing up and delivering the possessions as promised?
- Do you have at least two previous clients I can call for references?
- How many hours does it typically take you to do a move of this size?
Get Estimates
A quality moving company will want to send over a representative to inventory your possessions to ensure an accurate estimate. This is standard procedure, and you should lead the rep through your home so you can answer any questions.
Your final decision should be based on the criteria you need, the affordability, and quality you think you’ll receive based on the answers to your questions and your impression of the representative.
May 12, 2020 | Real Estate
In the wake of the recent news reports, you might be looking for ways to make your home safer. Some of the most common accidents and events that take place in homes include poisoning events, falls, and even burglaries. The good news is that there are ways to improve the safety of your home. You might even be rewarded with a lower home insurance premium!
Invest In An Alarm System
It is not easy to figure out exactly how many burglaries are prevented every year by having an alarm system; however, even having a sign in the front yard could be enough to scare off potential intruders. If you are looking for a quick and easy way to make your home safer, invest in a home alarm system.
The price of a home alarm system from vary from provider to provider. Homeowners can tailor their security services to meet their needs. This is a great way to keep burglars at bay.
Purchase A Video Doorbell System
There has even been a rise in the frequency of porch pirates, or those who steal the packages of others from their front door! If you are someone who buys a lot of stuff online, then you should get a video doorbell to watch your packages when they get dropped off.
Furthermore, you can even use this video doorbell system to see who ringing your doorbell when you aren’t home. In some cases, you can even communicate with them, providing them instructions, or asking them to leave when necessary.
Buy Automatic Outdoor Lighting Systems
Lights are often enough to scare people away. There are plenty of motion sensor lights that you can purchase for your driveway, porch, and front door. These lights can even be set to turn off when the sun comes up to save energy.
Keep Your Home Safe
These are a few of the easiest ways that you can make your home safer. If you take steps to keep burglars at bay, not only will you protect your home but you might even save some money on home insurance!
May 11, 2020 | Financial Reports
Last week’s economic releases included readings on public and private sector employment, the national unemployment rate.
Economic Destruction Continues as Coronavirus Spreads
ADP reported 20.2 million private-sector jobs lost in April as compared to 149,000 jobs lost in March. The government’s Non-Farm Payrolls report showed -20.5 million public and private-sector jobs lost in April as compared to -870,000 jobs lost in March. Both of these jobs reports typically show job growth, but they now report jobs lost due to the coronavirus pandemic and efforts to control it.
Likewise, the national unemployment rate grew in April to 14.70 percent as compared to the normal reading of 4.40 percent in March.
Mortgage Rates Mixed as New Jobless Claims Fall
Freddie Mac reported higher average mortgage rates for 30-year fixed-rate mortgages, which were three basis points higher at 3.26 percent. The average rate for 15-year fixed-rate mortgages fell by four basis points to 2.73 percent. Rates for 5/1 adjustable rate mortgages rose by three basis points to 3.17 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.
First-time jobless claims fell to 3.17 million claims, which exceeded expectations of 3.10 million new claims filed. While new jobless claims were lower than the prior week’s reading of 3.85 million initial unemployment claims, the millions of claims filed were far above normal readings in the hundred-thousands. While jobless claims remain high, they are lower than the seasonally-adjusted peak of 6.90 million initial claims filed in March.
Analysts said that unemployment figures would increase as small business claims increase.
Credit Card Use Falls In March
Consumers stopped using credit cards in March as the coronavirus took hold and the economic shut-down limited shopping, travel, and dining out. Credit card companies tightened lending standards and reduced credit lines as unemployment rates rose. Credit card use fell by nearly 31 percent to – $28.20 billion in March; installment loans including education and vehicle loans rose by 6.20 percent to $16.1 billion.
Auto dealers offering attractive incentives including low to no interest rates encouraged consumers to purchase vehicles. Home loans were not counted in the reading for installment loans.
What’s Ahead
This week’s scheduled economic releases include readings on inflation, retail sales, and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.
