What Homebuyers Can Learn From Our 2017 Market

What can 2017 teach us about purchasing a house in 2018? Five very valuable takeaways.

Looking to buy a Home in Northeast Ohio? Search all Northeast Ohio homes for sale. Selling Your Home in Northeast Ohio? Use our home evaluation tool.

There are five lessons homebuyers can learn about our 2018 market by looking back on what happened in 2017.  

First, homes are still worth less than their pre-recession peak prices. There are some exceptions in major cities like San Francisco and Denver, but there are still a lot of great deals out there and there is still some value we’re looking to get to in the next couple years.

Second, homes are selling quickly. The average time a home spends on the market in our market is 45 to 60 days, depending on the price range and area. There is a very low supply of homes and a very high demand, so make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Third, investors are everywhere. If you’re looking to invest in a property, make sure you’re ready to put your best offer forward. Again, having an agent such as myself by your side can help you prepare your proof of funds, have your purchase agreement ready to go right after you see a property you like, and make sure you pay the amount you should be paying considering you might be in a multiple offer situation.

Make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Fourth, more deals were falling apart than ever before in 2017 because of things like mortgage and inspection issues, so when you’re ready to buy, know that you can negotiate inspections in your favor. Also, make sure you have your mortgage information ready and you’re pre-approved with a sold, qualified lender so you have the best chance possible at closing on the deal.

Finally, buying still saves over renting. People ask me all the time whether they should rent or buy. If you look at the national average of rents, you’ll see that they’re up across the entire country. This means in most markets, it would cost you more to pay rent than it would to buy a home.

For example, if you buy a $200,000 home in the Cleveland market, your monthly mortgage payment would be $800. By comparison, renting that same house at current rental rates would cost you as much as $2,000 per month. Essentially, you’d save as much as $1,200 per month by buying.

If you have any other questions about our market in 2018 or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

A Quick Update on Northeast Ohio Winter Home Prices in 2018

This winter is shaping up to be a huge moment for area homeowners who are looking to sell. Here are a few reasons why.

Looking to buy a Home in Northeast Ohio? Search all Northeast Ohio homes for sale. Selling Your Home in Northeast Ohio? Use our home evaluation tool.

This winter is likely to be a very important moment for many home sellers. That’s because three big trends are coming together to affect Ohio home prices right now:

1. Housing inventory remains extremely tight. The total number of homes on the market fell 10% year over year in the last quarter. This is the biggest drop since 2013, and it's part of a consistent pattern of very limited and decreasing housing supply. Of course, the fewer homes there are on the market, the easier it is to sell, and the higher the price you can expect to get. Home prices have increased almost 6.5% nationally since last year.

2. Buyers are increasingly optimistic. Despite the tight inventory, homebuyers are increasingly optimistic and continue to look for homes. Some of this has to do with the recent growth in income and job stability. Loosening lending standards are also making many homebuyers eager to take advantage of current mortgage rates, which slipped under 4% recently.

It’s the perfect time to get in the real estate market.

3. The new tax reform bill will impact the market. The federal government recently passed the Tax Cuts and Jobs Act, which majorly overhauled our tax code. While it’s unclear how this will affect the real estate market as a whole, there are some changes that do not favor home sellers.  As a result of the changes made to the tax code, the National Association of Realtors now projects slower growth for home prices in 2018, with an appreciation rate of 1% to 3%. By doubling the standard deduction, Congress has significantly reduced the value of mortgage interest and property deductions as tax incentives for homeownership. On the bright side, no changes were made in the rules surrounding capital gains for home sales, which is good news for home sellers.

When you put all three of these trends together, two big conclusions emerge. First, now is a very favorable moment for home sellers, thanks to the shortage in the market, the many eager buyers, and the high and rising prices. On the other hand, higher cost, higher tax areas will likely see prices decline as the result of new restrictions on mortgage interest and state and local taxes.

If you are looking to take advantage of the present moment to sell your home, please reach out by giving us a call or sending us an email. We look forward to hearing from you soon.

What’s the Best Way to Make Sure Your Listing Is Seen?

Our team uses a variety of aggressive marketing strategies to ensure our clients find buyers. Here are just a few of them.

Looking to buy a Home in Northeast Ohio? Search all Northeast Ohio homes for sale. Selling Your Home in Northeast Ohio? Use our home evaluation tool.

Today, let’s talk about how to aggressively market your home.

First, why is it important to be aggressive when it comes to marketing your home? Most homes that sell for high prices typically sell in the first 30 days, so it’s very important that you market the property to increase the amount of traffic onto your property within that time in order to bolster your chance of getting the highest price.

The more homebuyers who come to look at your home, the better your chances are of getting a good offer quickly, meaning more money for you.

Here are some tips and tricks we at the Michael Kaim Team use to promote properties:

1. Internet. Today, 90% of all buyers start their search online before even getting out to look at properties. Make sure that your home is exposed on all the major sites as a featured listing. Getting featured-listing status is easy with our team because we sign up as a Zillow premier agent, and our listings stick out like a sore thumb. Websites like Zillow, Trulia, Homes.com, and Realtor.com are our top four sites that will expose your home right at the beginning of your listing period.

2. Professional photography. When you list the property for sale, you’ll want to make sure that the house is staged properly so that it looks great in photographs, which also ties back into maintaining a strong online presence.

3. Direct mailing and print advertisements. We have ads in every major news publication, so we’ll capture all the buyers who don’t search online. Additionally, we send out “just-listed” postcards to your area, which would tell your neighbors that the house is for sale. We can also post signs in your front yard to alert passers-by.

4. Email blasts. We can send out emails to not only the top producers in the industry, but also to our database of 20,000 buyers and sellers that we have registered on our site.

Between all of these marketing tools, we’re sure to find you prospective buyers. If you have any questions, you can always reach me by phone or email. Make it a great day!