What does the future hold for buyers and sellers in our real estate market? Recently, you may have heard that the sky is falling, but it’s not. On the contrary, the future's still bright. Unfortunately, we do expect a housing shortage, and that will cause housing prices to continue to rise throughout 2020. We expect appreciation rates to be around 5%, which is a slight drop compared to what we’ve seen in previous years.
The beginning of the year is when people tend to think about their goals and these sometimes include real estate. It’s always good to be as prepared as possible for when it’s time to pull the trigger. If you plan on selling in April or May, you should start fixing things up around the house now so you don’t have to do it all at once right before listing. If you’re considering buying soon, talk to a lender now. It never hurts to be prepared.
If you have any questions about real estate, don’t hesitate to give me a call or send an email. I look forward to hearing from you soon.
There are certain situations where you’re better off renting. For example, if you’re moving to an area you only plan on staying in for a few years, you should rent. If you’re moving to an area you plan on staying in for longer than three years, you should buy.
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You guarantee that you’ll lose money in the long term by renting, and you guarantee that you’ll gain money in the long term by buying.
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I know people worry about the ups and downs of the real estate market, or whether they’ll lose money when they have to sell later on, but here’s the thing: In the long term, homeownership normally trends upward. If, on the other hand, you rent for three years at $2,000 a month, you only guarantee a loss of $72,000. It’s very rare to lose $72,000 by buying a home in the Triangle area.
Think of it this way: You guarantee that you’ll lose money in the long term by renting, and you guarantee that you’ll gain money in the long term by buying. It all depends on your timeline.
If you’d like to talk more about this topic or have any questions, don’t hesitate to reach out to me. I’d love to help you.
Today we’re going to discuss whether now is a good time to list your home. Around this time of year, we often see many people taking their houses off the market. Many sellers believe they should skip the winter and wait until springtime to sell their property.
While there are some advantages to the spring market, people seem to be forgetting one thing: There’s much more competition in the spring. Through the winter months, there are fewer homes on the market because everyone is waiting for spring. As a result, buyers during the winter are serious, have a real need to move, and are working with fewer options to choose from. This puts your listing in a wonderful position!
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You need to look at the reasons behind why you’re selling, where you’re moving to, and why.
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If you can’t decide whether to list now or wait until the spring, you need to look at the reasons behind why you’re selling, where you’re moving to, and why. If you genuinely need to sell in the winter, there’s no reason to cause yourself more trouble by waiting until spring. You can still find a buyer in the winter months.
If you’re considering selling your home during the winter, know this: Last year we sold over 200 properties during this season. We have an aggressive marketing plan and we work harder this time of year for our clients.
If you have any questions about buying or selling in the winter, or anything concerning real estate, give us a call or send us an email. We would love to help you.
Here are the 11 reasons why you should consider selling your home during the holiday season:
1. People who are looking for a home during the holidays are more serious buyers.
2. Serious buyers have fewer houses to choose from during the holidays. Less competition means more money for you.
3. There will be less demand for your home come January, which means less money.
4. Houses show better when decorated for the holidays.
5. Buyers are more emotional during the holidays, which means they are more likely to pay your price.
6. Buyers have more time to look for a home during the holidays than they do during the workweek.
7. Some people must buy before the end of the year for tax reasons.
8. January is traditionally the month where employees begin their new jobs. Since transferees can not wait until the spring to buy, you must be on the market now to capture their attention. 9. You can still be on the market, but restrict showings during the major holidays so as to not miss quality time with family.
10. You can sell for more money, and we can get you a delayed closing so you don’t have to move until early next year.
11. By selling now, you may have the opportunity to become a non-contingent buyer in the spring market. When more houses are on the market for less money, it will allow you to sell high and buy low.
If you have any questions for us about this list or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
The final walk-through is a critical step in the real estate process, but many buyers aren’t sure exactly why this is or what they should look for when they enter the property for the last time before closing.
Ultimately, the final walk-through is designed to help buyers verify that the home is in the same condition it was when they made their offer and that the agreed-upon repairs have been made.
In order to ensure your final walk-through goes smoothly, keep these four tips in mind:
1. Don’t schedule the final walk-through on the same day as closing. Doing this could make it difficult to fix any issues you find in the event that the home is not in the condition you expected.
2. Bring along your phone and its charger to test the outlets. Plug your phone into every last outlet. This simple trick will help you to verify that they are all in working order.
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If you made your offer on a staged home, you should expect the vacant version to look very different.
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3. Look for any belongings the seller left behind. Sometimes, items are abandoned on accident. Other times, the seller simply wanted to ditch their unwanted items with the hope you wouldn’t notice until after closing. Either way, you don’t want to be left dealing with the seller’s junk.
4. Be emotionally prepared for surprises. If you made your offer on a staged home, you should expect the vacant version to look very different. Staging can hide certain cosmetic problems, like scratches or dents, and can totally transform a home.
As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
Here are the six biggest mistakes homeowners make when selling their home that you need to avoid:
1. Picking the wrong agent. The right agent will be able to communicate with you effectively, not to mention be punctual. Timing is very important when selling your home, so communication is key. They’ll also be honest and straightforward with you, rather than agreeing with everything you say and telling you what you want to hear.
2. Overpricing your home. Price is everything when marketing your home. Even a well-priced home with a bad marketing plan will sell.
3. Failing to make a simple repair. If there’s some minor damage around your home that a buyer would spot instantly, repair that damage before listing.
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I understand if you’re emotionally attached to your house, but when you sell it, you need to think of it as a property.
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4. Neglecting to declutter. Most buyers start their home search online, and if your home’s pictures are showing your clutter instead of all the open space, there’s a good chance buyers won’t even look at it in person.
5. Not allowing adequate home-showing access. I’ve found that if a buyer wants to see a home but the seller tells them to come back another day, about 80% of them never do. Either that or their agent never reschedules. This is why it’s important that your home is show-ready at all times.
6. Getting super emotional about your house. I understand if you’re emotionally attached to your house, but when you sell it, you need to think of it as a property. This means if you get a lowball offer or a buyer who plans on doing some remodeling, you shouldn’t take it personally as long as you end up getting the price you want.
As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d be happy to help you.
If you aren’t living in your home during the winter, you need to take steps to ensure it survives the cold unscathed. Here are the 10 steps to take when winterizing your home:
Turn off the main water line to your house
Drain your water lines after turning off the main line
Disconnect all of your hoses and turn off the inside line that goes to the hose
Pour antifreeze in your toilet bowls to prevent cracking
Clean out your gutters to prevent ice dams
Turn off gas lines to appliances you aren’t using
Unplug all of your electrical outlets
Adjust your thermostat to around 50 to 55 degrees
Ensure your sump pump is functioning properly and has a backup battery
Close the damper in your fireplace so nothing comes in
If you have any questions or need further information, feel free to reach out to me. I look forward to helping you.
Here are the 11 reasons why the holidays are actually a great time to put your home on the market:
1. There are more serious buyers out and about this time of year. If they’re willing to walk and drive through snow to look at homes, you know they won’t be wasting your time when they look at your home. 2. There are fewer homes to choose from this time of year. A lower inventory means you’ll get a higher price than you would if you listed your home during other seasons where inventory is typically higher.
3. January will see lower demand because more inventory will enter the market. Like I just said, higher inventory means lower sale prices for sellers. 4. Houses show better when decorated for the holidays. This is the best time of year to show your property, so why not show it while you have it decorated for your friends and family.
5. Buyers are more emotional during the holidays. By making an emotional decision, they’re probably more willing to pay your price. 6. Buyers have more time off to look for homes. Naturally, if your home is available during this time, you’re more likely to get a great price.
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A lower inventory means you’ll get a higher price than you would if you listed your home during other seasons where inventory is typically higher.
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7. Some buyers must buy before the end of the year for tax purposes. This means, once again, they’ll be more eager to buy. 8. January is typically a month of employee relocation. Some buyers will be starting new jobs once the new fiscal year starts, so they want to buy now so they can get settled in before that. 9. You can restrict showings during the actual holidays. It’s no problem at all for your agent to take the home off the market just for those six or seven days.
10. You can sell now for more money and offer a delayed occupancy and an extended occupancy until next year. This will allow you to sell for a high price and possibly do a rent-back agreement until you close in January or February of next year. 11. By selling now, you’d become a ready, willing, and able buyer for the spring market. With higher inventory during the spring, you’ll likely get a better deal on your new home.
If you have any more questions about selling during the holidays or you have any other real estate needs, don’t hesitate to call or email me. I’d be happy to speak to you.
Today, we’ll be discussing our fourth-quarter market update of the Northeast Ohio area.
The market has been great over the last year. There’s been an average 6% appreciation of home values in our markets—something we haven’t seen in years! Unfortunately, interest rates have risen. In October 2017, we were around 3.8% to 4%. Now, they’re closer to 5%. Outside of increased rates, the market is still strong and it’s a great time to buy. The economy is doing great as well, giving you more confidence in purchasing a property. This means it’s also a good time to invest in real estate.
What is in the forecast for the next couple of years? Economists are predicting an increase in prices for the next year and a steady rise in interest rates. Though rates will continue climbing, we’ll eventually see them come back down—it’s believed that these rates will begin receding in 2020.
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Though rates will continue climbing, we’ll eventually see them come back down.
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Here are some statistics I’ve found showing our year-to-year changes:
Cuyahoga County: The average sale price is $126,000 with a 0.8% quarterly appreciation and 6.3% yearly appreciation.
Geauga County: The average sale price is $230,000 with a 1.9% quarterly appreciation and 6.1% yearly appreciation.
Lake County: The average sale price is $145,900 with a 0.8% quarterly appreciation and 5.1% yearly appreciation.
Lorain County: The average sale price is $139,400 with a 1.9% quarterly appreciation and 6.7% yearly appreciation.
Medina County: The average sale price is $196,000 with a 1.7% quarterly appreciation and 6.6% yearly appreciation.
Portage County: The average sale price is $156,700 with a 2.5% quarterly appreciation and 4.3% yearly appreciation.
Summit County: The average sale price is $131,200 with a 0.9% quarterly appreciation and 5.8% yearly appreciation.
Carroll County: The average sale price is $106,000 with a 2.1% quarterly appreciation and 9.7% yearly appreciation.
Stark County: The average sale price is $125,200 with a 1.5% quarterly appreciation and 6.9% yearly appreciation.
Because inventory is going to start decreasing as we head toward winter, it’s a great time to think about listing your home. We sold 267 properties in the winter months last year. We can help you do the same. If you are looking to buy or sell, have any questions, or would like further information, get in touch with us. We look forward to hearing from you.
If you haven’t had much luck getting offers accepted in our market, I recommend using a tactic the agents on our team are implementing with our buyer clients: an escalation clause.
How does it work? Let’s say you enter into a multiple offer situation and the listing agent tells you to make your highest and best offer, but you’re hesitant because you have no way of knowing if that offer will be high enough.
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The escalation clause is a unique proposition, but it might be just what you need to get the home you want.
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An escalation clause guarantees that you’ll offer more than the next highest bid up to a certain amount. If the house is listed for $170,099 and you’re willing to pay as much as $185,000 for it, your escalation clause will state that you’re willing to pay $1,000 more than the next highest verifiable offer. If another buyer makes an offer of $183,000 with no closing costs, your offer would automatically reset to $184,000.
The escalation clause is a unique proposition, but it might be just what you need to get the home you want.
If you have any more questions about how an escalation clause works or you have any other real estate needs, don’t hesitate to reach out to me. I’d be happy to help you.
Smart home features can save you money on bills, ensure the security of your home, and make life easier for you. Here are five examples of smart tech that are popular today.
Smart technology is becoming increasingly popular in the market. These high-tech items can attract buyers, boost your home’s value, and just make your home more convenient for you and your family. Today I’ll share five examples of smart home features you might consider installing in your own home.
1. Smart thermostats ($180 to $250). This is one of the most popular smart home features that people in the market are installing in their homes. When you leave the house, your smart thermostat will automatically adjust your temperature to your specifications, allowing you to be energy efficient in your practices and to keep your bill down. Popular brands of smart thermostats include Ecobee, Nest, and Honeywell. The cost is worth it, though; this technology can save you as much as $250 annually on your energy bill.
2. Smart door locks ($200 to $250). When you leave your house, a smart lock can automatically lock the door behind you, which can keep you from worrying about whether or not your house is secure. What’s more, if you have friends, family, or service workers coming to your house when you’re not there, you can unlock the door remotely for them from your phone. We personally recommend the August Smart Lock brand.
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Smart thermostats can save you as much as $250 annually on your energy bill.
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3. Video doorbells ($199). With these, you can see whoever walks up to your door from your phone, wherever you are. Certain brands will alert you when someone even approaches your door; some have microphones that allow you to talk with whoever is there. It’s perfect for home security and general convenience. Ring is the most popular brand that we’d recommend.
4. Smart smoke detectors (Varies). A smart smoke detector can save you 5% on your insurance premium; like other smart technology, you can access it remotely so you’ll have an idea of what’s going on in your home when you’re not there. We recommend that you use either Birdi or Nest, which also have carbon monoxide detectors built in as well. 5. Smart irrigation ($200). The Sky Drop smart irrigation system can track the local weather and water your yard or garden depending on the conditions. It will also track how much rain accumulates and adjusts the water use accordingly.
Depending on your lifestyle, any or all of these additions can add a lot to your home experience, and add value and appeal to it when it comes time to sell.
If you have any questions about smart home features or about real estate in general, reach out to us. We’d be glad to help you.
The 2018 housing market started off much like how the market started five years ago. In 2013, the Federal Reserve saw the real estate market booming and pushed interest rates up to slow down the economy.
Currently we are seeing the same inflation in terms of values and prices as we did in 2013. I believe that the federal government is going to once again slow down the economy and the real estate market by raising the rates again. In fact, they have already raised them twice.
What this means to you, if you are selling, is that you want to get your house on the market immediately.
In 2013, rates started the year at 3.75%. By September of that year, they had risen to almost 4.75%. We sold an incredible amount of homes and had record-breaking sales in the first half of the year, and then the market came to a stop.
You can expect to see the same results this year. So far, we have already seen a huge influx of buyers and sales in the first quarter of 2018. The housing market is booming right now, we’re seeing the best prices in years, and we are seeing interest rates increase.
Interest rates have already jumped by almost 0.5% within the last six months. For the second quarter, they will continue to go up probably 0.25%.
By July, most buyers who are looking will have bought a home. After that, there will be an increase in inventory for the second half of the year, which will slow down the housing market and bring prices down.
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If you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low.
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So, if you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low. You want to be on the market before the summer months when a huge increase in inventory comes on the market and values come down.
If you have any questions about this or want to list your home, please don’t hesitate to contact me. I look forward to speaking with you soon.
There are five lessons homebuyers can learn about our 2018 market by looking back on what happened in 2017. First, homes are still lower 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. On average, homes spend 45 to 60 days on our market, depending on 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 solid, 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 rental rates, 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.
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.
