Back in 2008, there was an oversupply of homes for sale. Today, there’s an undersupply. The three main sources of inventory show this isn’t like the last time.
The housing market is going through a transition. Higher mortgage rates are causing more moderate buyer activity at the same time the supply of homes for sale is growing.
And if you aren’t working with an agent, you may not realize that. Here’s the downside. If you’re not informed, you can’t adjust your strategy or expectations to today’s market. And that can lead to a number of costly mistakes.
Here’s a look at some of the most common ones – and how an agent will help you avoid them when you sell.
1. Overpricing Your House
Many sellers set their asking price too high and that’s why there’s an uptick in homes with price reductions today. An unrealistic price will deter potential buyers, cause an appraisal issue, or lead to your house sitting on the market longer. An article from the National Association of Realtors (NAR)explains:
“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers and result in unapproved appraisals . . .”
To avoid falling into this trap, partner with a pro. An agent uses recent sales of similar homes, the condition of your house, local market trends, and so much more to find the price that’ll attract more buyers and open the door for multiple offers and a faster sale.
2. Skipping the Small Stuff
You may try to skip important repairs, thinking you can pass the task on to your buyer. But visible issues (even if they’re small) can turn off potential buyers and result in lower offers or demands for concessions. As Money Talks News says:
“Home shoppers like to turn on lights, flush toilets and run the water. If these basic things don’t work, they may assume you’ve skipped other maintenance. Homes that appear neglected aren’t likely to fetch top price.”
If you want to get your house ready to sell, the best place to turn to for advice is your agent. They’ll be able to do a walk-through with you and point out anything you’ll need to tackle before the photographer comes in.
3. Not Looking at Things Objectively
Buyers today are feeling the pinch of high home prices and mortgage rates. With affordability that tight, they may come in with an offer that’s lower than you’d want to see – especially if you didn’t stage, price, or market the house well.
It’s important you don’t take this personally. Getting overly emotional can put the sale at risk. As an article from Ramsey Solutions says:
“Remember, a buyer’s offer is not a reflection of their opinion of your home or your housekeeping abilities. . . The sale of your home is strictly a business transaction. If they start out with a low offer, don’t take it personally and get emotional. Instead, channel that energy toward negotiating. Work with your agent and make a counteroffer.”
4. Being Unwilling To Negotiate
The supply of homes for sale has grown. That means buyers have more options, and with that comes more negotiation power. As a seller, you may see more buyers getting an inspection, requesting repairs, or asking for help with closing costs today. You need to be prepared to have those conversations. As U.S. NewsReal Estate explains:
“If you’ve received an offer for your house that isn’t quite what you’d hoped it would be, expect to negotiate . . . the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits . . . consider offering to cover some of the buyer’s closing costs or agree to a credit for a minor repair the inspector found.”
An agent will walk you through what levers you may want to pull based on your own goals, budget, and timeframe.
5. Not Using a Real Estate Agent
Notice anything? For each of these mistakes, partnering with an agent helps prevent them from happening in the first place. That makes trying to sell your house without an agent’s help the biggest mistake of all.
Real estate agentshave experience and expertise in pricing, marketing, negotiating, and more. That knowledge streamlines the selling process and usually results in drumming up more interest and ultimately can get you a higher final price.
Bottom Line
If you want to avoid making mistakes like these, you need to work with a real estate agent.
This post was first published on Keeping Current Matters.
If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much.
Written agreements are required for both in-person and live virtual home tours.
You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
Agent compensation for home buyers and sellers continues to be fully negotiable.
When finding an agent to work with, ask questions about their services, compensation, and these written agreements.
Can a Buyer still see homes without signing anything?
So, for a REALTOR® to tour a home with a buyer, they need a signed agreement with an agent prior to an in person or video viewing (FaceTime, Skype, Zoom, etc.) of a property. You do not need a written agreement if the buyer contacts the LISTING Agent directly, who works for the seller and not for you the buyer.
If a REALTOR® offers to show you a home WITHOUT a written agreement, and they are not representing the seller, they could be in violation of the rules.
What types of compensation will a Buyer owe their REALTOR®?
Compensation is ALWAYS negotiable. Some agreements will be written for compensation to be a percentage (X%) of final sales price paid at closing. Other agreements will be for a set dollar amount ($X) to be paid at the time of closing.
Alternative agreements could be “A La Carte” charging for each service they provide. Examples would be ($X) to show a home, ($X) to write a contract, ($X) to go to inspections, ($X) to write up a resolution, ($X) to go to closing, etc. Some agents will require those charges be paid in advance of or at the time the service is being provided.
Can you ask the Seller’s to pay the compensation a Buyer owes their REALTOR® ?
The short answer is yes. Compensation is ALWAYS negotiable. Contracts to purchase can be written asking the seller to pay part or all of a buyer’s compensation owed to their agent. Make sure you talk to your REALTOR® about what you owe and how that can be written into an offer with the seller.
Be sure to confirm what compensation you will owe when the offer is written, before you sign it. Confirm again, what compensation you owe to your agent when an agreement is reached on a contract, before you sign it. You don’t want any surprises when you get to the closing table.
Keep in mind, REALTOR® are providing a service to help a buyer with what could be the largest financial decision they make in their life. Make sure you choose an agent that will provide you with the best services that meet your needs.
They include everything from putting off pre-approval for too long, holding out for the perfect home, buying more than they can afford, and skipping out on hiring a pro.
Connect with a real estate agent to make sure you have a pro on your side who can help you avoid these mistakes.
This post was first published on Keeping Current Matters.
Market Highlights Kansas City Metro Area June 24′ vs June 23′
Home sales are ↘️ 13.1% to 3,472 closed sales.
Home prices are ↗️ 4.2% to $382,567 average sales price.
Home inventory ↗️ 5.0% to 6,305 total homes available.
Home monthly supplies are ↗️ 10.5% to 2.1 months supply.
Average days on market are ↗️ 22.6% at 38 days on market.
Percent of original list price ↘️ 1.8% to 99.1% of price received.
Pending sales are ↘️ 2.0% to 3,530 for the month.
If you have more questions about this information, feel free to reach out for more information.
Have a great day, Gregory Weis
913-579-4106 Cell
913-631-2900 Office gweis@cbregan.com
Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information. I’ll be happy to follow up and take great care of them.
In life, patience is a virtue – but in the world of homebuying, waiting too long in hopes of finding the perfect home actually isn’t wise. That’s because the pursuit of perfection comes at a cost. And in this case, that cost may be delaying your dream of homeownership. As Bankrate explains:
“One of the most common first-time homebuyer mistakes is looking for a home that checks each of your boxes. Looking for perfection can narrow your choices and lead you to pass over good, suitable options for starter homes in the hopes that something better will come along.”
The Cost of Holding Out for Perfection
Nothing in life is ever perfect – and that’s true when you search for a home too. Unless you’re building a brand-new home from the ground up, chances are there are going to be some features or finishes you wouldn’t have picked yourself. It may be as simple as paint colors, a light fixture, or the tile in the bathrooms or kitchen. Or even that the backyard isn’t fenced in. It could also be that the home itself is great, but it’s not the ideal location you were hoping for.
But here’s the trade-off you’d be making without even realizing it. In all that time you’d spend searching for the perfect place, you’d overlook a lot of homes that would’ve worked for you. U.S. News explains:
“. . . you may miss opportunities if you enter the process with blinders on and aren’t open-minded . . . Countless potential buyers never buy because of this, and thus miss great investments or never move on to the next chapter of their lives.”
It’s Time To Redefine Perfection
Especially with affordability and inventory where they are today, buying a home that needs some updates, is a few neighborhoods away from your ideal location, or doesn’t have all your desired features can be a smart move. Here’s why.
For starters, these homes are usually more affordable, which is important at a time when some buyers are struggling to find options in their budget.
And they give you a chance to make the space your own or discover a whole new area of town. You may find out you actually love that neighborhood. Or, swapping out a feature here or there after move-in isn’t such a big deal. So, look past the green shag carpet and see the bones of the house. With a little vision and creativity, you can turn a good house into a fantastic home.
How an Agent Helps You Explore Your Options
If you’re open to a home that needs a little elbow grease or is a bit further out, let your agent know. They’ll be happy to show you how this can really open up your pool of homes to pick from. They’ll also help coach you through this process by:
1. Prioritizing Your Must-Haves: Your agent will want to revisit your wish list and separate your non-negotiables from your nice-to-haves. From there, they’ll focus on what’s really most important to you as they come up with a bigger list of options for you to choose from.
2. Coaching You To See the Potential: As you tour these added options, your agent will help you look beyond cosmetic flaws and imagine what the home could be with a little work. Simple updates like a fresh coat of paint or new flooring can make a big difference.
3. Connecting You with Local Pros: And an agent’s support goes one step further. If they know what you’re hoping to change after you move in, they can connect you with local pros who can get the job done. That way it’s less work for you, and you don’t have to worry about tracking down contractors.
Bottom Line
Remember, there is no perfect home. But with expert help and an open mind, an agent can find you the right home – even in today’s market. Connect with a local real estate agent to see what’s out there.
This post was first published on Keeping Current Matters.
Market Highlights Kansas City Metro Area May 24′ vs May 23′
Home sales are ↗️ 2.3% to 3,757 closed sales.
Home prices are ↗️ 2.8% to $368,471 average sales price.
Home inventory ↗️ 8.4% to 6,229 total homes available.
Home monthly supplies are ↗️ 16.7% to 2.1 months supply.
Average days on market are ➡️ 0.0% at 35 days on market.
Percent of original list price ↘️ 0.8% to 99.6% of price received.
If you have more questions about this information, feel free to reach out for more information.
Have a great day, Gregory Weis
913-579-4106 Cell
913-631-2900 Office gweis@cbregan.com
Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information. I’ll be happy to follow up and take great care of them.
The 2024 Presidential election is just months away. As someone who’s thinking about potentially buying or selling a home, you’re probably curious about what effect, if any, elections have on the housing market.
It’s a great question because buying or selling a home is a major decision, and it’s natural to wonder how such a major event might impact your plans.
Historically, Presidential elections have only had a small, temporary impact on the housing market. Here’s the latest on exactly what’s happened to home sales, prices, and mortgage ratesthroughout those time periods.
Home Sales
During the month of November, in years when the Presidential election takes place, there’s typically a slight slowdown in home sales. As Ali Wolf, Chief Economist at Zonda, explains:
“Usually, home sales are unchanged compared to a non-election year with the exception being November. In an election year, November is slower than normal.”
This is mostly because some people feel uncertain and hesitant about making big decisions during such a pivotal time. However, it’s important to know this slowdown is temporary.Historically, home sales bounce back in December and continue to rise the following year.
The graph shows annual home sales going back to 1978. Each year with a Presidential election is noted in blue. The year immediately after each election is green if existing home sales rose that year. The two orange bars represent the only years when home sales decreased after an election.
Home Prices
What about home prices? Do they drop during election years? Not typically. As residential appraiser and housing analyst Ryan Lundquist puts it:
“An election year doesn’t alter the price trend that is already happening in the market.”
Home prices are pretty resilient. They generally rise year-over-year, regardless of elections. The latest data from NAR shows after seven of the last eight Presidential elections, home prices increased the following year (see graph below):
Just like the previous graph, this shows election years in blue. The only year when prices declined after an election is in orange. That was during the housing market crash, which was far from a typical year. Today’smarketis different than it was back then.
All the green bars represent when prices rose the following year. So, if you’re worried about your home losing value because of an election, you can rest easy knowing prices rise after most Presidential elections.
Mortgage Rates
Mortgage ratesare important because they affect how much your monthly payment will be when you buy a home. Looking at the last 11 Presidential election years, data from Freddie Mac shows mortgage rates decreased from July to November in eight of them (see chart below):
Most forecasts expect mortgage rates to ease slightly throughout the remainder of the year. If they’re right, this year will follow the trend of declining rates leading up to most previous elections. And if you’re looking to buy a home in the coming months, this could be good news, as lower rates could mean a lower monthly payment.
What This Means for You
So, what’s the big takeaway? While Presidential elections do have some impact on the housing market, the effects are usually small and temporary. As Lisa Sturtevant, Chief Economist at Bright MLS, says:
“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”
For most buyers and sellers, elections don’t have a major impact on their plans.
Bottom Line
While it’s natural to feel a bit uncertain during an election year, history shows the housing market remains strong and resilient. If you have questions, reach out to a local real estate agent. They’re here to help you navigate the market, election year or not.
This post was first published on Keeping Current Matters.
Have a great day, Gregory Weis
913-579-4106 Cell
913-631-2900 Office gweis@cbregan.com
Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information. I’ll be happy to follow up and take great care of them.
Have a great day, Gregory Weis
913-579-4106 Cell
913-631-2900 Office gweis@cbregan.com
Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information. I’ll be happy to follow up and take great care of them.
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**Sources: NAR, Census, ATTOM, Bankrate**
