It’s true. The market remains a "challenge" for buyers at all price points, and yet the market ebbs and flows each month, each week, each day. So, can serious buyers still secure superior properties as they compete in the multiple offer madness? Absolutely! I always like to discuss and analyze the unique buying power of each of my clients, and every situation is different. Overall, we want to write the cleanest offer possible. We write to win! So what does "clean" look like in today’s market? Here are just a few things we discuss:
It’s here! Spring is here!! Now... these sorts of exclamations may have you thinking, “Angela, you need to get your head examined." Yes, I realize there is snow on the ground, it is 20 degrees outside, and we are all hoping and praying the groundhog is correct. Yet, in the Real Estate World, these are the facts:
-We still have a shortage of inventory
-We still have buyers looking for homes
-We still have crazy low interest rates
-Buyers like to be settled in their new homes before summer, so they can play!
-Spring market does not wait for the weather to warm up!
Spring Market? I think so! Get ready for some fun-The Parade of Homes starts March7th, which will bring even more buyers into the market. If you’re moving; you better get moving!
Call today for a free home analysis to determine whether this year is YOUR year to make a move. Also, please don't hesitate to pass this offer of free help along to you brother, sister, co-worker or best friend-we are always happy to help!
Many of our clients call us each year asking about small to large projects that they are considering in their homes. A bathroom remodel, a basement finish, a kitchen “face lift…” All kinds of ideas. Often, we can advise over the phone, because we sold them the house and remember the spaces; yet many times this requires a visit. We are happy to help, as this is part of our “Realtor for life” opportunity and we simply love to be involved in helping our clients and prospective clients to discern the best route in home focused decision making.
Often, this conversation turns to something like this: “Well, we have always thought that a different floor plan would fit us better, so would it be better to just move?” And guess what the answer is? Sometimes yes and sometimes no. Of course! When deciding to move, there are a few considerations we discuss.
We talk to a lot of buyers and sellers each year and the home warranty discussion often comes up. Do you need or want a home warranty on your house? Is this a good use of funds as a seller?
As a buyer?
Let’s talk sellers first. As a seller, if you do a mental scan of your home, especially the major mechanicals and appliances, and you are thinking, “you know, my mechanicals and appliances are starting to get old, yet I don’t think they necessarily need to be replaced yet,” you might like to add a home warranty to the marketing of your listing. This can help buyers to overlook the older systems, as they are assured tat if anything fails in the first year, they are not all on their own to replace these high ticket items.
What about buyers? As a buyer, you may want to wait until your inspection is complete to make this determination. If it seems that one or more appliance is on its “last leg,” or the furnace is pretty old and you would like to avoid handling the entire cost of repair or replacement in your first year of ownership, you might consider adding a home warranty or having us negotiate for the seller to purchase one.
Home warranties can take a lot of the anxiety out of the transfer of a property to a new owner (for both buyer and seller), yet you will want to be sure you choose the company that is right for you and the coverage that fits your home’s needs. Also, note that many of them do not cover every issue that each system or appliance may have and most do not cover preexisting conditions. If you would like to discuss home warranties in further detail, we are happy to help and can point you to a few companies our clients have used in the past!
We have lots of clients calling us this month to ask us about timing their move from their starter home to a more spacious abode. Here are some of the points we are discussing, as we advise based on current market conditions:
So… do you happen to know a friend or family member, maybe a son or a daughter, who is looking to be a homeowner AND investor? As we know, real estate investment properties represent an amazing opportunity to create passive income. Yet, this opportunity once seemed unreachable for those who were just starting out or those who don’t have a 25% down payment. I am here to tell you: “opportunity knocks!”
Did you know that there are loan programs that allow owner-occupied buyers to purchase a duplex for as low as 3% down? A triplex or 4-plex for 5% down? What an incredible way to jump into homeownership! This option allows buyers to live in one unit and collect rent on the rest, thereby significantly offsetting the total cost of ownership.
Who do you know that might benefit from learning about this type of opportunity? Just a note; there are income restrictions on these programs, as they are meant to help those who are not (yet) millionaire investors. We are looking for newbies that are interested in investing by “dipping a toe” before taking any leaps into single unit investing. It never hurts to inquire, so call us today and we can help you figure out if this is the right opportunity for you!
Many of our clients are calling us early this year, as they are getting the “itch” to get moving on moving (did you get that?). Good move! As we start a new year and look at some of the changes in our market, I have been encouraging our clients to start planning now, so we can make sure they are educated and that they have a plan in place for that moment when they finally realize-It IS Time! So, what is going on in the market and how does it affect you?
As you have likely noticed, interest rates have crept up slightly from last year, and are hovering around that 5% mark. This is still being regulated by the Fed slightly, and we really should be up closer to around 6%. Will 6% happen this year? No one can say for certain, yet I would say that if you know your move is inevitable, we should get together and start planning sooner than later, as a 1% rate hike can certainly affect affordability in every price range (unless you have cash, of course!).
What about inventory?
Well, as we look at our stats that wrapped up 2018, we notice a few things. First off, our months supply is still a lowly 2.1 months of inventory overall. This is down 8.7% from the previous year. Remember, a balanced market is around 6 months of inventory, so it is still a great time for sellers.
Never fear, buyers! We are seeing more inventory, in most of our price ranges and areas, coming onto the market this winter. We should see more houses for you to choose from, if you are looking to make a move. Homes for sale is slightly down overall, yet in some of our mid to higher price ranges (think $300,000 and up), we have seen a 10.5% increase in listings. Good news, as this market shifts into 2019.
Overall, we are noticing a slight shift in the market, yet the outlook for 2019 is a positive one for those with a move on their radar. Every area within the Twin Cities is slightly different where these trends are concerned, so if you would like a more in depth look at YOUR area, we would love to share it with you. Give a call, shoot us a text or an email and we would be happy to spend some time with you discovering the best strategy around your plans this year!
How does having an awesome buyer specialist benefit you? Let’s find out with this month’s Buyer Bulletin.
I have recently been enjoying the book “Start With Why: How Great Leaders Inspire Everyone to Take Action” by Simon Sinek. Whether you happen to run a team, a business, a family or your own life, I would highly recommend you give it a read! Simon invites his readers to ask “Why” rather than “How” or “What” when considering the important things in our lives and businesses.
I can tell you a lot about “what” our real estate team does every day to help people. I can tell you “how” we grew and “how” we do business. What will truly inspire you, however, is “why.” Why do we do what we do? Why do you? Digging… Digging…
As a wide eyed “20 something,” I recall hearing stories from friends and coworkers about their real estate experiences. Interestingly enough, they did not sound too happy about most of the on goings in their home purchases and sales. Their Realtors had often over promised and under delivered or had not represented their clients’ best interests in a way that showed them to care more for their client than a paycheck. “There has to be a better way,” I thought; and soon after hearing several such stories, I decided “I can create a better way!”
Through much fun, heartache, success, failure, anxiety, and market tribulation over the past 13 years, I have found that building a team of dedicated individuals who seek to serve at the highest level has been one of the most rewarding endeavors I could have pursued! Why? Because at the end of each day, we can say that every decision we make is in order to add smiles to the client experience. We are not a production team; we are a personal team. We love to make our clients’ moves easy and successful and that’s what we do!
What’s your “Why?” Why do you do what you do? I will bet that if you shared it with someone you just might inspire them-the world needs you; go and inspire!
Due to low inventory in our area, many homes are being sold in multiple offers. Do you have to offer full price?
Welcome to our blog. We hope to be able to provide you with some valuable resources about selling and buying a home in the Twin Cities. We may also include a favorite recipe of ours from time to time, so check back often.