Jul 13, 2018 | Real Estate
Historians like to say that those who do not learn the lessons of the past are doomed to repeat them. In the real estate industry, the chances of that happening are slim because agents and other professionals follow market trends closely.
That being said, a careful examination of 2017 market trends and other factors can help highlight where the housing market is headed. Consider these top trends when deciding about whether to buy or sell a property.
Millennials Scooping Up Homes
According to resources such as Zillow, the low inventory and emergence of Millennials in the home-buying market helped break records last year. Millennials comprised upwards of 34 percent of the market and about two-thirds of them were reportedly first-time home buyers.
Given the shortage of entry-level homes for this demographic, 2018 and 2019 should have them in the driver’s seat in terms of buying trends. Although home prices are expected to rise in the single digits during the foreseeable future, the second wave of Millennial home buyers are likely to take a big bite of listed properties. As this group moves into their mid-30s, expectations are that last year’s 34 percent turns into about 43 percent of homes purchased. Millennials appear to be setting the pace.
Gen Z Home Buyers Expect Smarter Homes
Consider those born between 1995 and 2001 are adults or on the cusp of becoming adults. The front end of Generation Z is graduating college and looking for starter homes. This group is bound and determined to be different and they were basically weaned on technology.
Tech-friendly kitchens, lights and home-integrated devices have been trending and this demographic is likely to make them a priority when buying a home. Homeowners who are considering updating to a so-called “Smart Home” could be rewarded with resale value once Gen Z enters their collective mid-30s. Smart homes are trending and could go vertical with Gen Z buyers.
Generation X Returns From Great Recession
The housing crisis of 2007-09 put upwards of 10 million Americans out of their homes. Forced into foreclosure and bankruptcy, the financial aftermath of that catastrophe is coming to an end.
Those that filed for bankruptcy during the crash are in position to put their rebuilt credit to work. According to reports, approximately 1.5 million people could become eligible to re-enter the housing market in 2019.
A large portion of these potential returning homebuyers fall into the Gen X age group. They are likely to be savvier than the first time out. Many of these 50-somethings are expected to be frugal and cautious value buyers that could target properties that are traditionally considered starter homes. Regardless of how the trend plays out, Gen X is coming to a housing market near you.
If these emerging trends indicate anything, it’s that the shortage of homes on the market will only get tighter. Several large emerging demographics and returning buyers are going to speed an already fast-selling market. The trending idea may be to buy a home in today’s market and save money.
Your trusted real estate agent is sure to keep up to date on all the trends. Be sure to contact them as soon as you are ready to list your current home or find the new home of your dreams.
Jul 12, 2018 | Real Estate
There’s perhaps no better indicator that we are living in the technology age than Smart gadgets infiltrating the kitchen. Whether they are little conveniences or big-ticket items, the chef in every home can benefit from the devices that help improve cooking, storage and food preparation. These are some of the next generation kitchen items that are making life a little easier and homes a tad more valuable.
Samsung Family Hub Smart Fridge Provides Constant Contact
This big-ticket Samsung line has definitely taken refrigeration to the next level. It features a touchscreen that you can connect to with handheld devices to connect with your unit. One of the key features is that it enjoys an embedded camera and you can literally look at what is on your shelves while shopping for the evening meal. The days of being one ingredient short are over.
But beyond the shopping aid, the Family Hub lets you know when food is expiring, provides recipe suggestions, plays music and can utilize an Internet of Things method of ordering items for you. The Smart fridge has all the bells and whistles that can help improve your quality of life.
Smart Ovens Are Trending
Star Trek: Next Generation fans may recall Capt. Jean-Luc Picard ordering tea by simply saying “Earl Grey, hot.” The days of voice-activated meals may be closer than you think.
The latest lines of Smart ovens are integrating WiFi and connecting to recipe apps as well as that friendly home bot Alexa. Amazon reported that Alexa will be integrated into the kitchen and laundry room going forward. Several lines of Smart ovens on the market are already set up for tech-oriented homes. This Smart kitchen trend is likely to be popular with Millennial homebuyers who are flooding the real estate market.
Tech-Savvy Toaster Ovens Rule
The sometimes-forgotten toaster oven could be making a comeback in a huge way. Some of the new lines, such as Breville’s Smart Oven and Smart Oven Pro could double for a full-sized unit. Reviews on the brand tout the device’s ability to cook a 13-inch pizza or 14-pound turkey.
But the next generation aspect of these Smart ovens are things such as the “air fry” capabilities. It also features 13 pre-programmable cooking options including dehydrate. Those college dorm room days of crumb-filled toaster ovens heating up pre-cooked frozen foods are last generation.
Futuristic PancakeBot Amazes
Tech buffs often see 3-D printers as the device that could make the largest difference in terms of machinery and even ending hunger. The 3-D technology has been put to use making amazing and artistic pancakes of all shapes and sizes. You simply program it with a computer image to create the pancake design you desire, pour in the batter and serve.
The next generation of Smart kitchens are shifting the way home cooks function. In terms of property values, integrating Smart technologies appear to be highly sought after and can be a difference-maker in home sales.
If high-tech kitchen gadgets are on your list of must-haves, be sure to let your trusted real estate agent know so they can help you find the right home for you.
Jul 11, 2018 | Real Estate
In the ideal home-buying scenario, you’d have plenty of time to find the perfect home. However, this is not always possible. Maybe you are relocating for a job and have to buy a house from across the country. If this is the case, you might have to limit the time that you spend house hunting.
Here are some tips to help you make your search as productive as possible.
Get A Mortgage Pre-Approval
Before attending open houses and searching for a home, you should get pre-approved for a mortgage. Getting pre-approved for a mortgage will help you identify the exact price range that you should be shopping for. It will also let home sellers know that you are a serious buyer. If you are competing with other buyers, a seller will be more likely to take your offer seriously if they know that you can afford the home.
Sometimes you’ll hear the terms pre-qualification and pre-approval thrown around interchangeably. However, these two terms are very different. A pre-approval is much more valuable when it comes to buying a home. Although you will have to provide a lot more information for a full pre-approval, this qualification will provide you with a specific loan amount that you are approved for.
A pre-qualification is just an estimate of the amount that you can afford based on your income and other factors. It is not as personalized or customized for your specific situation as a pre-approval.
Find A Good Real Estate Agent
Find a good real estate agent who is knowledgeable of the area that you want to buy in. Ideally, they have lived in the area for a long time and know the community. A good local agent can bring invaluable knowledge to the table about the city. They should be familiar with the homes in the area. They might even know about homes that aren’t on the market yet but will be soon. This knowledge can be invaluable when you are in a time crunch and want to get the most out of your house hunting time.
Make A List Of Your Must-Have Amenities
You don’t want to spend time looking at homes that won’t meet your needs. There are probably some things that you’d like to have in a house, as well as things that you must have. So, if you’re in a time crunch, the first thing you should do is make a must-have list. Make a second list of things that you’d like to have but that are not required. Don’t bother looking at homes that lack the qualities on your must-have list.
Contact your trusted real estate agent to help with your home search today!
Jul 10, 2018 | Real Estate
The perfect home has been found, the one in the right neighborhood with the right amount of bedrooms and bathrooms. The home inspection is complete, but a few issues have been found. At this point, a home buyer has decisions to make.
What Repair Requests Can Be Made After a Home Inspection?
Structural defects found during a home inspection are the responsibility of the seller and must be fixed. In addition, Realtor.com states that the following must also be repaired by the seller:
- Water penetration such as mold or wet basement/crawlspace
- Any code and safety violations like unstable decking or missing handrails
Cosmetic issues like bold paint choices or peeling paint, nail holes, and other normal wear-and-tear are the responsibility of the buyer, not seller.
Additional Repairs to Request
Home buyers do have the option of requesting repairs they believe are the seller’s responsibility. These often go beyond obvious structural issues like a sinking foundation or mold in the basement.
Additional repairs that home buyers may request include but are not limited to:
- Replacing pipes with leaks
- Replacing galvanized pipes due to lead contaminant, low water pressure, and leaks
- Upgrading electrical wiring in a home built before 1960
- Fixing cracked window(s)
- Installing new HVAC and/or water heater
Sellers may be willing to replace old sewer lines known as “tar paper” pipes. These “tar paper” pipes are called Orangeburg sewer pipes and often found in older homes. On average, this older type of sewer pipe has a 50-year life span. However, as it ages, it can begin to disintegrate with tree roots penetrating the material. A home buyer can hire a plumbing professional who specializes in sewer pipes to inspect the system as part of the overall home inspection.
There may be additional issues that the seller is not required to fix, but that leave the buyer unhappy. When this happens, it can be possible for the buyer to request a repair credit be added to the final contract. Typically, this works best when the repair or issue has a potential cost of more than $500.
Qualified Home Inspection
Repair requests made by the home buyer, whether major or minor, usually are more credible when done in conjunction with a qualified home inspection. Not every state requires home inspectors to have specific certifications or even licensing, so it’s essential to work with real estate agent to select a qualified professional. A qualified and independent home inspector is the buyer’s responsibility. This inspector should have established credentials and belong to trade association, versus a friend or family member that “knows houses”.
Home buying can be an overwhelming experience, but knowing which repairs to request the seller to fix after the home inspection, is one less item to worry about. Your trusted real estate agent is available to discuss these issues and more to ensure a smooth home buying or selling experience.
Jul 6, 2018 | Real Estate
Once you and the seller have negotiated an offer and you’ve been pre-approved for a mortgage, you might think that you are in the clear as far as your closing goes. However, that is not always the case. Many surprising things can put a halt to closing. Some may ultimately stop the closing altogether while others could simply cause a delay.
Here are a few unexpected things that can derail a real estate closing:
A Job Promotion
While you might know that changing employers is one way to interfere with the closing, another deal-breaker can be switching positions with your current employer. If you are a salaried employee and switch to a non-salary commission job, for instance, you could be looking at a problem when it comes to closing on a house.
Whenever you have any change in employment, even if it is with the same employer, most lenders will require a two-year history. A new job title could be a problem at closing — even if the new position pays more money. In some cases, the lender might not be able to include the income from your new job. If so, you could quickly end up not being qualified for the loan.
Therefore, it’s best to avoid any change in employment until after closing even if it is with the same company. Talk with your mortgage finance professional regarding your personal circumstances before making any employment changes.
Last-Minute Requests for Documents
It is easy to assume that lenders will already have all the documents that they need by closing, but that is not necessarily the case. Lenders can become overwhelmed with work, especially during a hot real estate market. Lenders will sometimes realize that they need more information last-minute.
They might ask for a canceled check, copies of your rental agreement, current pay stubs or other items. If you don’t have the documentation handy, it could cause your closing to be delayed or even completely canceled if you can’t produce the requested information.
To avoid this situation, make sure that you consistently communicate with your lender throughout the loan process.
A Delayed Transfer
You will most likely need cash at closing. If you are relying on your bank to transfer funds right before closing, then you might be shocked if the transfer falls through at the last minute. Bugs in the bank’s system or other issues could affect the transmission.
Therefore, make sure you time your transfer to reach you or your closing agent a couple of days before closing.
Closing on a mortgage is something that you don’t want to derail. Avoiding the above mistakes will help ensure a hassle-free closing transaction.
As always, remember that you can count on your trusted real estate professional to remain committed to your success throughout the entire home buying and/or selling process.
Jul 5, 2018 | Real Estate
If you’ve decided to sell your home, you’ve probably paid a lot of attention to the inside of your home. You have likely cleaned and staged your living room, bedrooms and kitchen to perfection. If you were like most other homeowners, you might have forgotten to stage one of the most critical areas of your home — the garage.
Most home buyers want a perfectly organized garage stage. A clean, organized garage is more important than you might think when it comes to selling a home. In fact, the Active Spring Shopper’s Report found that more than 30 percent of home buyers said that the garage is one of most essential rooms in a home. That means that 3 out of 10 buyers would rank a garage higher on their list of priorities than say a beautiful kitchen or bathroom.
If your garage has become a grease-stained dumping ground, that is okay. There are still plenty of things that you can do to get it looking like the showroom of an auto dealer. Get your garage in top shape with these tips.
Clear The Clutter
Garages tend to be the one place where you can throw everything to keep out of sight. Anything that you don’t have room for probably goes into the garage. As a result, you might have quite a bit of clutter in there. Start by taking everything out. Before putting anything back in the garage, sort it into piles. Make three piles — keep, donate and throw away. Next, sort items accordingly.
Clean Thoroughly
Clean the floor and walls thoroughly. Use a concrete degreaser and a large scrubbing brush. If your floors are still dingy after cleaning, consider painting your concrete with epoxy. Garage floor epoxies are specially designed for concrete and can make your garage floor look brand new. This detail can impress buyers.
Organize
The last step is to organize the remaining items. Consider installing different types of shelving to expand your garage storage. Metal and wire shelving, storage benches and metal cabinets are all excellent storage ideas for a garage. Consider installing storage racks on the ceiling of your garage to use the space above.
Your trusted real estate professional will have loads of tips to help you make your home presentable and appealing for buyers. Make sure to utilize this valuable resource.
