See my new listing in Inman Park Estates!
All posts by Joann Samelko, REALTOR®
First Impressions Count When Selling Your Home!
Psychologists say that we make up our minds about a person within the first fifteen seconds of meeting them. And the same is true when viewing a house.
Your house should be ready to show when photos are taken and before any showings take place.
Clean your home from top to bottom, from floors and countertops to windows, trim, and ceiling fans.
Don’t be over anxious to get your home on the market with lingering items to be completed. If you intend to have painting, carpeting, de-cluttering and cleaning completed get it finished before the first potential buyer walks thru the door. It is imperative to void the property of any potential drawbacks or visually unappealing characteristics.
Whether they know it or not, prospective homebuyers are heavily influenced by their first impression of a property. The average house hunter will often decide, within a matter of seconds, if they are interested in a house.
The peak traffic (showings) typically occurs in the first two to three weeks after your house is listed. Take the time to make your house show ready before potential buyers see the house and create that great first impression.
A bad first impression whether in photos or in person may be all that is needed for a potential buyer to rule out a property all together.
Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly
In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. One major challenge in such a market is the bank appraisal.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.
The gap between the homeowner vs. appraiser’s opinion has started to head in the right direction (closer to even), as June saw a slight decrease from May’s -1.95% to -1.89% nationally.
Homeowners in the western part of the country, however, have been pleasantly surprised as their homes have appraised higher than they expected. Denver received its highest HPPI last month as homes came in an average of 3.28% higher than the homeowner believed it would. Nine of the twelve metro areas that had a positive HPPI last month were located in the west.
Quicken Loans’ Chief Economist, Bob Walters explains:
“The hot housing markets along the West Coast are growing quicker than owners realize, giving way to higher than expected prices for buyers and more home equity for existing owners.
On the other hand, the housing markets are more balanced in the East and Midwest, leading owners to be slightly over-enthusiastic about their home’s appreciation.”
Bottom Line
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to talk about what’s happening in our area.
3 Reasons to Buy Luxury Property THIS Year!!
3 Reasons to Buy Luxury Property THIS Year!!
1. There are more homes from which to choose
According to a recent Wall Street Journal article, inventory in the upper end is increasing, while it is decreasing at the lower and mid-tier price ranges. Here is a graph showing the average increase/decrease in inventory for the first four months of this year as compared to last year:
2. Prices are becoming more reasonable
In a separate article, the Wall Street Journal also talked about prices in the luxury market. They explained that downward price adjustments have been more common in the luxury market than in markets with lower prices. They went on to say:
“The growing number of price cuts suggests luxury-home sellers are becoming more realistic about property values as sales have slowed, said several real-estate veterans.”
Not only will you have more to choose from, but you may also be able to get the property at a reduced price.
3. Mortgage rates are at historic lows
In the past, one of the drawbacks to purchasing a luxury property was the larger mortgage rate on “jumbo” loans which are often required on high end properties.
However, HSH.com just revealed that jumbo rates just set new record lows:
“While conforming fixed-rate mortgages eased a little this week, 30-year fixed-rate jumbos declined enough to break into new record low territory (3.66%), besting the previous low set in April by two basis points.”
Bottom Line
More choices, better prices and historically low mortgage rates may make this the perfect time for you to own one of those luxury properties you and your family have always fantasized about.
Retirement Funds for Home Purchase
For the person who has good credit and income but not enough money for the down payment on a home, their qualified retirement program could offer them some help. The rules are different depending on whether it is a 401(k), a Roth IRA or a traditional IRA.
Up to half of the balance of a 401(k) or $50,000, whichever is less, can be borrowed by the owner at any age for any reason without tax or penalty assuming the employer permits it. There can be specific rules for loans from 401ks that would determine the repayment; interest is usually charged but goes back into the owner’s account. You can consult with your HR department to find out the specifics.
A risk in borrowing against a 401(k) comes if your employment ends before the loan has been repaid. The loan may have to be repaid with as soon as 60 days to keep the loan from being considered a withdrawal and subject to tax and penalty. Even if you continue with the same employer, failure to repay the loan could be considered a withdrawal also.
Roth IRA owners can withdraw their contributions tax-free and penalty-free at any age for any reason because the contributions were made with post-tax income. After age 59 ½, earnings may be withdrawn as long as the Roth IRA have been in existence for at least five years.
Traditional IRAs have a provision for first-time buyers which include anyone who hasn’t owned a home in the previous two years. A person and their spouse, if married, can each withdrawn up to $10,000 from their traditional IRA for a first-time home purchase without incurring the 10% early-withdrawal penalty. However, they will have to recognize the withdrawal as income in that tax year. For more information, go to IRS.gov.
Another interesting fact about this provision is that the taxpayer making the withdrawal can help a relative includes children, grandchildren, parents and grandparents.
If you want more information to clearly understand the issues involved relative to your specific situation, talk to your tax professional or consult www.IRS.gov.
Working with FSBO Home Owners and FSBO Entry Only Firms
Sellers that attempt to sell their own homes or use the services of a data only entry agent have declared that they know more about real estate than real estate professionals.
These sellers are motivated to try the FSBO route often because they are financially in trouble and/or they do not want to spend money on the sale of their property.
The data entry agent charges a fee to put the listing in the MLS in hopes that the seller will fail at their endeavor and ultimately become frustrated and employ them for full service. A bait and switch strategy.
FSBOs typically price their property based on what they want out of the property not on the market. The data entry agents input whatever data the seller wants.
FSBO transactions require additional work and liability for the buyer’s agent. The buyer agent many times has to handle both sides of the transaction, as the seller is unfamiliar with the documents and the process. The data entry only agents are difficult to reach and do not assist in the transaction.
Inspection and Repair Issues often arise. In North Carolina, the standard real estate contract has a due diligence provision and the buyer is most times paying a due diligence fee that the seller may keep if the buyer terminates the contract. In negotiations with FSBO sellers the cost of repairs is often an unresolvable dispute. Buyers have to either back out after spending money on due diligence activities or accept a property in need of repairs.
Buyers and buyer agents BEWARE _ you may want to consider steering clear of these sellers.
New Listing _ Close to NCSU
Perfect for Roommates or Investors!
2-Bedroom 2-Bath Amazing Investment Opportunity. Close to NC State, Farmers Market, Downtown, I-40 and I-440 access. Fully equipped with All Appliances included (microwave, refrigerator, stove, dishwasher, washer and dryer). New AC Air Handler, Updated Appliances, Carpet, Tiled Flooring, Paint, Bathroom Cabinetry, and Ceiling Fans. Eligible for FHA Financing _ On the FHA Approved Condo List. Seller is a Licensed Real Estate Professional.
Automated Valuation Model (AVM)
An Automated Valuation Model, AVM, is a computer approach that looks at public records to make a determination based on square footage, comparable sales and other elements. It is as easy as putting your address in a blank but unfortunately, AVM results may only be accurate about 20% of the time.
A popular AVM, Zestimate®, states “It is considered a starting point at determining a home’s value.” While an AVM contains some of the same information as a comparable market analysis, it lacks a critical human factor.
Having a pair of experienced eyes consider aspects that are not easily quantified can make a big difference. A skilled professional can tell which properties are truly comparable. A knowledgeable expert can recognize features, floorplans and other things that can affect value but are difficult to quantify.
Even if a person isn’t ready to sell their investment, they like to know its value. It is easy to find the price of stocks or mutual funds on any given day but the value of a home is more difficult.
Regardless of whether you’re just curious as to how much your home is worth or are ready to monetize your equity, I’m available to give you that information without obligation.
