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4 Tricks to Buying a Home in a Crazy Hot Market

Key Takeaways:

  • Despite the ongoing pandemic, the real estate market is more competitive than ever before—and that means buyers have to do more to get their offer accepted.
  • Want to stand out from the competition and score the home of your dreams? Our four tips can help you achieve real estate success in no time.
  • If you have any questions about buying in today’s hot market, just give us a call for even more personalized advice!

The 4 Tips Every Buyer Needs to Know in 2021

If you’ve been house-hunting for a while, you’ve probably noticed that today’s real estate market is more than just a little competitive. Low mortgage rates, high demand, and dwindling inventory have created ideal conditions for sellers—but it’s still very possible to score a fantastic deal on a home.

Want to know the secret to buying a home in 2021? Here are four tips that can help you take back control in a seller-driven market.

Get your finances in order

Calculating mortgage payments

First and foremost, you need to get your finances in order before you even consider looking at homes. Start by paying off as much debt as you can and increasing your credit score. It’s also a good idea to keep track of just how much you have saved for a down payment. Sellers are more likely to choose buyers who can put down at least 15% or pay cash.

Want to strengthen your offer even more? Get preapproved or attach a higher earnest money deposit to show a seller you’re serious about buying their home.

Know what you want

Buying a home is one of life’s most exciting milestones. However, it’s easy to get caught up in the little details—which is why it’s crucial to do your research in advance. Connect with a local agent early on to discuss your home-buying goals. A good agent will help you hone in on your budget, wants, and needs, as well as the right area or neighborhood.

Prepare for a bidding war

Negotiating a deal

According to a recent survey by Redfin, more than half of all buyers found themselves in a bidding war last year. And while the idea of competing against other home-seekers might seem overwhelming, there are a few things you can do to stand out.

If you’re trying to score a house with multiple bids, send in your best and final offer up front. You may also want to include an escalation clause, which automatically increases your purchase price by certain increments (like a few thousand dollars at a time) so you avoid getting outbid.

It’s also a good idea to consider homes below your budget, especially if you have your heart set on a popular neighborhood. This gives you some flexibility if you end up in a bidding war.

Appeal to the seller

Talking about real estate

Even if you find yourself in a bidding war, it’s still possible to come out ahead. Believe it or not, sellers don’t always choose the highest offer, even if it far exceeds the original asking price.

You can appeal to a seller’s peace of mind by limiting your contingencies, offering to pay closing costs, and letting them choose the closing date. Adding these extra bonuses might seem minor, but they can really impact a seller’s final decision.

Only Buy with the Best

Working with a top-notch agent can help you navigate 2021’s crazy real estate market with ease. So if you’re looking for some guidance, it’s time to give us a call!

Whether you’re at the beginning of the buying process or are already searching for a home, you can trust us to help you find your perfect place. Contact us today to get started; we look forward to working with you.

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What Makes Today’s Real Estate Market So Competitive?

Key Takeaways

  • This year’s housing market is shaping up to be the most competitive on record, but the pandemic isn’t the only thing influencing the national real estate boom.
  • There are actually quite a few factors contributing to today’s hot market, including unfettered buyer demand, historically low supply, and steady interest rates.
  • Have questions about buying a home in 2021? Get in touch with us for even more personalized advice.

3 Factors That Make 2021’s Real Estate Market More Competitive Than Ever

If you’re planning a move, you might be wondering how the real estate market will change this year—and the predictions are pretty eye-opening. Existing home sales are expected to increase by 9%, home prices could rise by a whopping 8%, and mortgage rates should stay well below 4% for the foreseeable future.

For buyers, this means you may have to work harder than usual to find the perfect place. However, this extra effort will pay off if you have a home to sell or want to take advantage of extraordinarily low interest rates.

Need help making sense of today’s market? Here are a few reasons why real estate is more competitive than ever in 2021.

The ongoing pandemic

Buying a home during the pandemic

A year ago, real estate experts had no idea how the COVID-19 pandemic would impact the housing market. While many predicted a crash akin to what we saw in 2008, we actually saw the opposite: a pandemic housing boom.

During last year’s lockdowns, many renters and homeowners grew unhappy with their living situations and wanted a change. This caused demand for homes to spike—and as panicked sellers pulled their listings, prices rose higher and higher.

The pandemic might slowly be coming to an end, but we’re still seeing remnants of 2020 in today’s market. And while more sellers are finally warming up to the idea of listing again, available housing supply is still at its lowest point ever.

Record-low interest rates

Dice changing rates

In late March, interest rates for 15- and 30-year mortgages hovered around 2.5% and 3.3%, respectively. Although these numbers aren’t quite as low as they were in 2020, buyers can still score a once-in-a-lifetime deal by moving now.

To put things into perspective, let’s say you’re thinking about buying a $300,000 house with a 20% down payment. Back when rates were nearing 4%, you could expect to pay around $1,200 per month for your mortgage. However, if you were to buy that same home with a 3% interest rate, your payment would drop to just $1,012—and that difference can save you tens of thousands of dollars over time.

Low inventory & unprecedented buyer demand

Sold sign

Real estate is all about supply and demand. And in today’s competitive market, an inventory shortage and swelling buyer demand have created perfect conditions for sellers. In particularly popular areas, it’s not uncommon for homes to sell just days after they’re listed, sometimes in bidding wars that go above the original asking price.

If you’re thinking about buying a home soon, be prepared to act fast. Many agents recommend getting pre-approved, limiting your contingencies, or even setting an escalation clause to automatically outbid other buyers.

Bottom Line: Now Is the Time to Move

Navigating 2021’s one-of-a-kind real estate market may seem like a daunting task, but the right agent will help you through every step of the process. Today’s buyers can capitalize on shockingly low interest rates, while sellers stand to make an impressive profit should they decide to list soon. And if you ever have any questions, we’re always here to help!

Buying or Selling Soon? Let’s Talk!

Don’t let the market keep you from making a move. If you’re ready to achieve real estate success in no time at all, drop us a line to get started. We’d love to offer you one-on-one buying or selling advice that’s tailored to your unique needs.

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2020 Vision: The Top Home Features You Can Expect to See Next Year

The year is winding down fast, and with the upcoming rush of the holidays, it’ll be 2020 before you know it. With a new year comes new trends, and you can expect a number of home design shake-ups both big and small.

Here are the top home features that are sure to be priorities for buyers in 2020!

Separate Laundry Rooms

It might be a little unexpected, but laundry rooms were one of the most highly sought-after home features of the year, with a whopping 91% of buyers saying they’re essential. Many people also prefer the laundry room to be on the ground floor and sectioned off from the rest of the home.

In 2020, you can expect to see buyers continue to gravitate toward homes with designated laundry rooms—try brainstorming ways to bring more focus to yours!

Industrial Designs

The rustic farmhouse motif was certainly popular in 2019, but it doesn’t quite have the staying power of an industrial design. Next year, you’ll continue to see buyer’s seek out interior design elements like artisanal light fixtures, copper and metal hardware, concrete accents, and exposed brick.

Homes that already have these components incorporated will be a major plus—and while it’s a little tough to add brick walls and concrete accents if you don’t have them, there are other simple ways to industrialize your space!

Storage Space

As more and more buyers start moving towards smaller homes, efficient storage solutions become a high priority. In 2020, you can expect buyers to be on the hunt for homes that showcase their storage potential.

Built-in shelves along the wall, storage under the stairs, walk-in pantries—no matter your square footage, every inch counts. If you’re a seller, you can also use this to your advantage, staging your home in a way that emphasizes its efficient use of space. Think: a few extra storage cubes in your laundry room, a new shelving unit on an underused wall, or roll-out cubbies under your bed.

Green Features 

According to a survey from the National Association of Home Builders, green features have shot up to become one of the most sought-after features in a new home. In particular, over half of the survey respondents would invest nearly $10,000 for green features that would save them money, such as ENERGY STAR-rated appliances and windows, improved insulation, and efficient lighting. Other priorities included bettering the air quality in the home with things like dehumidification systems and electronic air cleaners.

If you’re planning to sell next year and have a little extra money to work with, consider making upgrades that’ll appeal to your buyers’ wallet.

Natural Finishes

Next year, we’ll start seeing a move toward more unique homes, and nothing sets your space apart from the rest like natural features, including river rock, reclaimed wood, exposed brick, and steel accents. These elements don’t necessarily have to come with the home even—staging your space with a rustic wood bookcase or a contemporary geode end table will do the trick.

If you’re preparing your place for a showing or just need a few cohesive decorating tips, sprinkling plants and greenery can help balance out the heaviness of these natural elements.

Pastel Colors

While 2019 may have been a year of bold colors, 2020 will usher in a muted era. Pastel shades like the popular Millennial Pink, Neo Mint, and Buxton Blue will be giving interiors a softer aura, reminiscent of 1970s-era home trends.

Additionally, accent walls have started slipping in favor, replaced instead by more strategic splashes of color, like painted doors and cabinets, two-tone walls, and accent furniture pieces.

Don’t Fall Behind in the Latest Real Estate Trends

Each year brings new fads to the real estate world, and keeping up with them plays a major role in impressing buyers. Need a little help staying in the know? We’ve got you covered! Follow along with our blog for the latest updates, and check out our specialized resources for all of your buying and selling needs.

Have a few more questions? We’re just a phone call away.

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Tiny Houses: How These Small Homes Have Made a Big Splash

You’ve seen the shows on HGTV, the brand new series on Netflix, the craze on sites like Pinterest and Instagram—tiny houses are all the rage. These smaller spaces come with gigantic opportunities—if you’re looking for an incredibly versatile and stylish home, you may want to look into one of the hottest housing trends of the past year. We’ve got all the details you need to understand the ins and outs of tiny homes—and maybe even buy your own.

What is a Tiny Home?

Less than 1,000 square feet and often towable, tiny homes allow their owners to be economical, environmentally-friendly, and enjoy life on the move.

These small abodes are built with an emphasis on organization and maximizing space. You’ll often see stairs repurposed into cabinets, smaller appliances, and loft areas for beds. However, many tiny homes are quite luxurious, with some featuring full sized appliances, bath tubs, and multiple floors. This is proof that “tiny” doesn’t necessarily mean bare bones!

An Inside Look at the Lifestyle

Where did tiny homes come from? Well, it turns out they aren’t just a recent trend—they’ve been around since the 1970s. The tiny house “movement” is becoming increasingly popular, especially due to shows on tiny house living and construction.

Many tiny home dwellers are fully committed to this unique lifestyle, but it takes some getting used to. The most difficult part is paring down what you own, as these tight spaces don’t come with the same amount of storage as a normal home.

However, you don’t have to give up everything you love. Many residents say that living in a tiny home allows them to tour the country and live without clutter. Additionally, a well-built tiny house will allow you to have plenty of space for privacy, hobbies, and even pets.

Discover Diverse Design Options

While tiny-home living might seem pretty straightforward, there are actually quite a few variations between homes.

One major option for tiny homes is towing ability. Having a towable tiny home means you can live wherever you’d like and move at any time, but a stationary tiny house is often larger and features more amenities like multiple floors and screened-in porches.

In addition, there are many different size variations and exterior designs to choose from. Some builders even make custom designs for each homeowner. Nowadays, tiny homes are even being built in shipping containers!

Are They Here to Stay?

Tiny homes may seem like a trend, but the number of homes being built are on the rise. In 2017, the tiny home industry saw a 67% jump in sales, with numbers steadily increasing. Tiny homes also remain easy on the wallet despite rising home costs. On average, a tiny home can cost from $15,000 – $150,000, which is significantly lower than the average home cost of $218,000.

As millennials begin purchasing their first homes, tiny houses are becoming increasingly popular. This is because many millennial buyers are choosing smaller houses and prioritizing travel, making tiny homes the perfect mobile option. They’re also a terrific choice for downsizing after retirement.

Tiny homes don’t seem to be going anywhere, and as more and more people are embracing this unique way of living, tiny home designs are becoming even more elaborate. Even Amazon has started selling tiny homes, so you can order one with just a few clicks!

Ready to Make a Move?

No matter what kind of home you’re looking for, you’ll always need a real estate agent to help guide you through the process. Whether you’re buying or selling, we’ve got the resources you need to lighten your load.

Ready to make your move? Give us a call and let’s chat—we’d love to help you make your real estate dreams a reality!

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Why It Makes No Sense to Wait for Spring to Sell

The price of any item (including residential real estate) is determined by the theory of ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

The supply of homes for sale dramatically increases every spring, according to the National Association of Realtors (NAR). As an example, here is what happened to housing inventory at the beginning of 2018:

Putting your home on the market now, rather than waiting for increased competition in the spring, might make a lot of sense.

Bottom Line

Buyers in the market during the winter are truly motivated purchasers and they want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

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Jumpstart the New Year: 3 Goals for Your Home

We’re almost three weeks into the New Year, but it’s not too late to develop goals for 2018.

Now is the perfect time to jump right in and start fresh in your current home! Need ideas? Here are a few real estate goals that you can achieve this year.

Fix Those Pesky Maintenance Issues

Maybe it’s a leaky faucet. Maybe it’s a drafty window. Maybe it’s a clogged shower drain. You can probably think of one or two issues off the top of your head that you haven’t gotten around to addressing yet. The New Year is the perfect time to get those problems fixed.

Reclaim That New-to-You Feeling

The longer you live in your home, the easier it is to let the clutter build up in your closets, attic, or garage. Make 2018 your year to reorganize!

Don’t try to tackle these massive home organization projects in a weekend. Instead, follow these tips to slowly but surely reduce the clutter in your home:

  • Sort through one room (or one storage space) at a time.
  • Separate the items you want to keep, donate, and toss out.
  • Expand your storage space with shelves or over-the-door organizers.

Sell Your Home in 2018

If you have been thinking about selling your home, why not start your research early? The more information you have, the more prepared you will be when you finally list your home. Here are a few ways to start:

  • Hire a home inspector to identify any major maintenance issues — Call us and we’ll provide recommendations.
  • Learn more about the local real estate market — Ask us for a report of recent home sales.
  • Find out what your home is worth — Contact us for a complimentary evaluation.
  • Start cleaning and decluttering your home — Get in touch for additional ideas.

We’re Here to Help You Achieve Your Real Estate Goals

We have all the information you need to know about the local real estate market and the home selling process. Contact us today and we’ll provide you with our best resources.

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The Hidden Horrors of Going FSBO (For Sale by Owner)

Many home sellers have considered skipping the real estate agent to save on closing costs, but very few have actually succeeded in seeing those savings. There’s a good reason: the average homeowner doesn’t have the rigorous training and real estate knowledge that a licensed agent does.

But just what makes For Sale By Owner (FSBO) such a bad idea? From incessant inconveniences to costly paperwork mistakes, here are a few of the horror stories that FSBO sellers inevitably encounter.

The Daunting Task of Marketing Your Home

It takes more than a “For Sale” sign in your front yard to make buyers notice your home. According to the National Association of Realtors, 95% of buyers use the Internet in their home search.

This means that online marketing — starting with listing your home on the local listings database, sharing your listing to dozens of social media platforms, and advertising your listing on numerous websites with a global audience — is essential to selling your home.

Without an Agent, Home Marketing Isn’t Cheap

This is where it gets expensive: yard signs, newspaper ads, brochures, high-quality photographs, and a professional-looking website — things real estate agents have at their disposal — are your responsibility to finance and maintain when you have to do your home’s marketing yourself.

Incorrect Home Pricing: The Ghosts of Lost Profits

Even after all that marketing, FSBO sellers don’t actually make more money. In fact, many lose money.

The research backs it up: the National Association of Realtors reports that the average home sold with an agent sells for $240,000. FSBO homes, however, sell for only $185,000. What you could save in commission you lose by pricing your home incorrectly or skimping on the marketing.

Without an Agent, Finding the Right Price is Impossible

Part of the problem with a low-dollar sale is the asking price. Real estate agents have more tools and resources, plus an intimate knowledge of the local housing market, so they can spot a wrongly priced listing from a mile away. FSBO sellers, however, have only limited access to home value tools and resources about past sales activity.

The Mountains of Paperwork

Understanding the paperwork involved in a real estate transaction is one of the biggest challenges of selling For Sale By Owner.

After all, the contract isn’t just an agreement about the price; it also includes contingencies (like those for home inspections and financing), the closing date, and other important terms.

Without an Agent, Sellers Can Make Costly Mistakes

The paperwork involved in a home sale can be complicated and full of legal jargon. An oversight could mean a costly mistake or even a lawsuit. Real estate agents, however, have the knowledge and understanding to take care of all the necessary disclosures.

Don’t Become the Next FSBO Horror Story

Yes, commission is a sizable chunk of change. But so are the hidden fees and lost profits, not to mention the added stress, that come with selling a home by yourself. The best way to save money, save time, and save headaches is to work with an experienced real estate professional.

We’re here to help! Give us a call and let’s talk about the home selling process.

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Selling Your Home in 2017? Here are the Latest Market Predictions

It’s that time of year: Many homeowners are looking to the New Year and planning their 2017 real estate resolutions (sell the house, move to the suburbs, buy that dream vacation home, etc.).

If you’re planning your own New Year’s real estate resolutions, you might be researching 2017 housing market predictions to figure out when you should sell your home and what tomorrow’s home buyers are searching for. After all, you’ve invested your time and money into your property. Don’t you want to see your hard work pay off?

Here are a few real estate predictions for 2017 that may come into play when you sell your home.

Buyers Want the Best of Both Worlds

If you live in a suburban community that’s surrounded by urban amenities, chances are good that your location will be a selling point for buyers. MarketWatch predicts that buyers want “surban” homes just steps from shops, restaurants, schools, and parks.

These Home Features are “In”

Formal dining rooms and dark kitchen cabinets are out. Open layouts, white kitchens, and first-floor master suites are just a few of the “in” real estate features of 2017, according to Builder Online.

Don’t have any of these features in your current home? Don’t worry. We can help you add value to your home so you can sell for the most money possible (no costly renovations required).

Sustainable and Smart Homes are a Priority

Even though green homes aren’t a new idea, the trend will likely continue into 2017. Since many buyers are eager to save money on monthly energy bills, energy-efficient home features and “smart” home systems are inching toward the “needs” column on buyers’ wants and needs lists. REALTOR® Magazine’s 2017 design trend predictions include more efficient HVAC systems, low-E window film, and even circadian lighting.

Thinking about making “green” upgrades to your home? We can help you determine which energy-saving features will give you the highest return when you sell.

Determined to Sell Your Home in 2017?

We can help you check “home selling” off your list of New Year’s resolutions. We offer invaluable resources on our website about preparing your home for sale, understanding the current market, and pricing your home. Contact us and we’ll help you get started.

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2015 Year in Review: The Economy and National Real Estate Market

This time of year, many people like to take a moment and reflect on the year that has passed, whether it’s reflecting on good memories or how the nation is doing financially. Today, we would like to take a moment to reflect on the economy and what this year’s trends meant for real estate.

A Brief Look Back on the US Economy

The economy has done well in 2015 — personal income is increasing, new construction homes are on the rise, and the job market is strong. And looking to the new year, now is the best time to buy a home. Here are three main real estate-related takeaways from the United States’ past economic performance in 2015.

1. Unemployment is Decreasing

The job market in the United States is doing much better than in previous years following the Great Recession.

Unemployment this time last year was at 5.6%; the latest data from the Bureau of Labor Statistics  states unemployment is at 5.0%. With more jobs and disposable income, home buyers have been able to spend more on their dream home than in past years.

2. Interest Rates May Increase

The Federal Reserve is expected to raise the interest rate tomorrow, December 16th, for the first time in nearly a decade. This is a good sign — the economy is doing well and the job market is strong.

For home buyers, however, these forecasted interest rate increases mean it will soon cost more to finance your home, and that now is the best time to buy the home of your dreams.

3. The Cost of Renting is Increasing

The rental market has been surging, according to the Joint Center for Housing Studies at Harvard, reaching a 20-year high this past year.

New apartment complexes have been built all over the nation to provide more housing, and due to this high demand for rental properties and lower vacancy rates, rent costs have increased.

For former renters looking for a place to call their own, now is a great time to purchase a home.

Now is the Best Time to Buy a Home

With forecasted interest rate increases, current rent cost increases, and a growing economy in 2015, now is the best time to buy a home. As local real estate experts, we can help you find the home of your dreams and direct you to the best home buying resources, including a mortgage calculator, that can help you purchase the home of your dreams with confidence.

Connect with us and let’s talk about your home buying goals for the new year.

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Report: US Housing Market Experienced Fantastic Gains This Spring

We just love having the opportunity to share with you good news about the US housing market and this is one of those weeks!

Evidently, according to a recent article we were reading, sales of newly built homes as well as home prices in general saw some great increases during the month of April, further demonstrating that the housing market continues to improve.

If you’re considering buying or selling real estate anytime soon, we encourage you to continue reading to learn more about this exciting development.

What You Should Know About the National Housing Market

Here is some of the most pertinent information you’ll need about the current state of the housing market:

  • New home sales increased 6.8 percent from March to April, to a seasonally adjusted annual rate of 517,000.
  • The median price of a new home sold in April was $297,300, up 8.3 percent from the year before.
  • Meanwhile, the Standard & Poor’s/Case-Shiller Home Price Index increased 4.1 percent in the 12 months that ended in March.
  • Supplies of existing homes remain tight and home builders are still slow to start construction on new project.
  • So far in 2015, builders have constructed just more than 1 million housing units, which is not too much different from 2014.
  • The construction pace increased some in April and actually hit the best level it’s seen since November 2007.
  • Also so far in 2015, monthly sales of new homes have average 515,000.
  • Meanwhile, new home purchases have been up 26.1 percent over the last year.
  • The housing market in April had 4.8 months of supply of new homes, although this is still short of the six months inventory that experts consider a balanced market.
  • New home sales represent about a tenth of all home purchases.
  • Historically, new home sales peaked in July 2005, when they hit an annual pace of almost 1.4 million.
  • Sales bottomed out in February 2011 at 270,0000 units.

Experts attribute steady job growth, historically low interest rates and rising rental costs and key catalysts for the recent improvements on the national housing market.

They have also noted that they believe that the US needs construction of at least 1.5 million new homes a year in order to keep up with the growing population as well as the average loss of existing stock each year because of age.

We’re Your Dedicated Real Estate Experts!

We hope you found the above data as encouraging as we did. The market definitely continues to improve month after month and the memory of the housing market crash continues to fade overtime. This is great news for everyone!

Check back here next time for more valuable information on the current state of the housing market and how it may impact your efforts as a buyer or seller.