7 Reasons to List Your House This Holiday Season

7 Reasons to List Your House This Holiday Season | MyKCM

Around this time each year, many homeowners decide to wait until after the holidays to list their houses. Similarly, others who already have their homes on the market remove their listings until the spring. Let’s unpack the top reasons why listing your house now or keeping it on the market this winter may be the best choice you can make.

Here are seven great reasons not to wait:

  1. Relocation buyers are out there now. Many companies are still hiring throughout the holidays, and they need their new employees to start as soon as possible.
  2. Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now.
  3. You can restrict the showings on your home to days and times that are most convenient for you. You will remain in control.
  4. Homes show better when decorated for the holidays.
  5. There is minimal competition for you as a seller right now. Over the past few months we’ve seen the supply of homes for sale decreasing year-over-year, as shown in the graph below:7 Reasons to List Your House This Holiday Season | MyKCM
  6. The desire to own a home doesn’t stop during the holidays. Buyers who were unable to find their dream homes during the busy spring and summer months are still searching, and your home may be the answer.
  7. Late fall and early winter make up the “sweet spot” for sellers. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge and reach new heights in 2020, which will lessen the demand for your house next year.

Bottom Line

It may make the most sense to list your home this holiday season. Let’s get together to determine if selling now is your best move.

Visit  https://www.nexthomevictors.com/cma/property-valuation/ to get an idea of what your home is worth in today’s market!

Dani

Forget the Price of the Home. Cost is What Matters.

Forget the Price of the Home. The Cost is What Matters. | MyKCM

Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months.

The reacceleration of home values will cause some to again voice concerns about affordability. Just last week, however, First American came out with a data analysis that explains how price is not the only market factor that impacts affordability. They studied prices, mortgage rates, and wages from January through August of this year. Here are their findings:

Home Prices

“In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house. By August, that home had appreciated to $395,000, an increase of $21,100.”

Mortgage Interest Rates

“The 0.85 percentage point drop in mortgage rates from January 2019 through August 2019 increased affordability by 9.7%. That translates to a $40,200 improvement in house-buying power in just eight months.”

Wage Growth

“As rates have fallen in 2019, the economy has continued to perform well also, resulting in a tight labor market and wage growth. Wage growth pushes household incomes upward, which were 1.5% higher in August compared with January. The growth in household income increased consumer house-buying power by 1.5%, pushing house-buying power up an additional $5,600.”

When all three market factors are combined, purchasing power increased by $24,500, thus making home buying more affordable, not less affordable. Here is a table that simply shows the data:Forget the Price of the Home. The Cost is What Matters. |  MyKCM

Bottom Line

In the article, Mark Fleming, Chief Economist at First American, explained it best:

“Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”

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Thinking about buying a home? Download my free Buyers Guide, “Things to consider when buying a home”.

Dani

Buying Your Dream Home When Inventory is Low

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If you are actively searching for a new home, you know that low inventory of homes for sale has made things difficult for buyers.  In a “Seller’s Market” there are not many homes for sale, and when a new home comes on the market, it is met with multiple offers.  Not only do these homes sell within days, but often over asking price.

If you are a buyer in this market, you may feel overwhelmed. However, with a solid strategy, you can still find your dream home, even when inventory is low.

  • One Step at a Time: Home buying is not a one-time moment, but a series of steps. Make decisions as they come, as you move through the process; make sure each discovery is one you can live with. Your REALTOR should provide you with a Home Purchase Process to help with the buying process.
  • Start with a Lender: Understand your financial possession and lending options before looking for a new home. There is nothing more disappointing than finding the “home of your dreams,” and then discovering that you cannot qualify for the loan to buy it.   Most buyers have an “idea” of how much they can afford to buy, but a lender can tell you what mortgage you can qualify for and the monthly payments with principal, interest, and taxes.  You will also receive a Pre-approval letter from your lender so the seller will feel comfortable accepting your offer when submitted.
  • Write a Competitive Offer: You don’t want to over-pay for a new home, but if the property is priced at Market Value and you want it, offer that amount. If you don’t, the next buyer will.
  • Keep Contingencies to a Minimum: Stick to the basics: home inspection, well and septic, attorney approval, and finance approval. If you are buying with FHA financing, you may ask for 3% towards your closing cost, and if you have a home to sell, you may include a 72-hour contingency.
  • Write a Clean Offer: Make it easy for the sellers to say “Yes!”.

Ready to look at new construction options? Please send me a message using the box to the right, or call, text or email me! If you are active on social media, please look me up on Facebook, LinkedIn, Twitter and Instagram using the icons on the bottom right of this page.
Dani

Why is the Market Value of Your Home Important when You Decide to Sell?

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Nothing is more frustrating to a home seller than to have their home sit on the market without an offer. Selling a home is a big decision and an emotional one. By the time a homeowner determines the time is right to sell, they are ready to move. Besides, keeping a home show-ready is exhausting, so a listing that sits is frustrating.

The truth is there is only one reason why a listing doesn’t sell and eventually expires…price. It’s always the price. There is a price at which any, and all, homes will garner offers. Even the most run-down foreclosure will receive offers when priced low enough. Home sellers naturally want to get the best possible sales price for their home, but it’s important to be realistic. Present the house in the best possible light and offer it at market value.

So how can you determine the market value of your home? Talk to a local REALTOR®; they are the experts in your community. Only local real estate agents and appraisers have access to complete and reliable information by affiliation with the local Multiple List Service.

The market value of a property is merely the amount of money a buyer will pay for it. On the other hand, the assessed value of a home is based on a complex set of calculations to determine property taxes, and rarely the same as the market value. A professional appraiser determines the appraised value of a home, and that is the value your REALTOR® will be shooting for.  If the house is overpriced and the appraisal comes in lower than the sales price, the buyer may not have the extra money to buy the home since the bank will only mortgage up to appraised value.

Past transactions reveal market value so your REALTOR® will use the sales prices of homes sold in your neighborhood during the past six months that are similar to your home. He/she will also take into consideration location, condition, and upgrades of your home and the comparable homes. Current homes on the market in this location will also be taken into consideration when determining market value.

There is nothing to be gained by pricing a home above market value, and sellers lose valuable time by trying to do this. A listing will always get the most attention when it’s new on the market. This is the time to create excitement and get offers. When the house is over-priced, it will also be over-looked and eventually, the listing expires.

Curious to know the market value of your home? Through my membership with the National Association of REALTORS® and Realtor Property Resource® (RPR), I can give you an estimated market value for homes anywhere in the United States. Simply send me a message in the box to the right. I’m always available via phone, text, and email too!

Dani