Seller
What is going on with the market ??
A lot of people are asking that question; What is going on with the market right now?
The current situation is not usual, many people are waiting to see what is going to happen to the economy, how the economy will recover. This is putting a lot of people on Hold for listing their properties and they may be right, why do I sell my property now if it may appreciate 50k more next month, buyers now driven by the lowest mortgage rates ever are flocking to the real estate market because they can afford way more than when those rates were higher by 1% not a long time ago.
With CARES Act Mortgage Forbearance in place, which limits the foreclosure possibility as well eviction for tenants that can’t pay their rent due to loss of income, the inventory is very tight. Many landlords cannot list their properties, and many homeowners are waiting to see what comes next.
The CARES Act forbearance was about to expire but with the new extension by the Federal Government to summer, my expectations are that the market will stay tight until that time.
Expectations are that sellers will have big leverage in pricing their properties and buyers will compete fiercely taking advantage of the lowest mortgage rates.
Feel free to contact me with your questions about your property value or any real estate advise
2021 Housing Market Expectations
The housing market has seen a record growth starting summer 2020 after a few months of slow growth during COVID-19 pandemic, despite the uncertainty in the other economic sectors, especially the jobs market.
This growth was driven by 3 key factors: Historic Low-interest rates, a low inventory of properties available for sale, and a surge in city residents looking out to relocate to the suburbs following the many cities unrest during the time of protests.
Home sales have been at the highest in the last 15 years since the last depression. This time of the year during the Holiday season historically is the slowest but so far, the real estate market has not shown any kind of weakness driven by the low-interest rates.
For the first time in so many years that we see a seller’s and buyer’s market. That may sound like a mistake but let me explain it.
It is a good time for sellers to sell because of the short inventory when they have leverage in dictating a lot of contract terms in their favor but it is also a good time for buyers to buy because they can afford more space with the low-interest rates.
The latest housing numbers are showing 16 consecutive weeks of double-digit price appreciation. When comparing this time of the year with the same time in 2019, home prices are approx. 12-14% higher.
The expectations are for a strong housing market in 2021 due to the fact that it is less likely that the mortgage interest rates will jump up all of sudden with the federal government is trying to stimulate the economy following the pandemic, as a result, buyers will keep trying to benefit from this opportunity before interest rates start going up again while sellers are closely watching the market and selling their properties for the highest price possible due to the low inventory.
Feel free to contact me with any questions you may have or if I can assist you with any real estate needs.
Selecting a Real Estate Agent
I’m going to touch base on one of the most important aspects in the process of real estate transaction; which is selecting a Real Estate Agent, whether you are buying or selling.
The market is full of Realtors from different backgrounds, with different skills, representing many brokers and brokerage firms, providing different levels of services, with different experience.
So the million dollar question will be: Which one to choose? The answer to this question will be whether you are buying or selling.
A- If you are selling your home, here are some of the characteristics sellers say they want in agent:
- Experience. With the local market is a key to succeed in selling your house.
- Education. Ask about degrees and certifications.
- Honesty. Trust your intuition. Your agent should speak from the heart.
- Networking. This is a people business. Some homes sell because agents have contacted other agents.
- Negotiation skills. You want an aggressive negotiator, not somebody out to make a quick sale at your expense.
- Good communicator. Sellers say communication and availability are key.
Two of the biggest mistakes home sellers make when choosing a listing agent are selecting an agent based on:
- Highest List Price for Your Home
- Lowest Commission
you may think that those are the 2 main keys to choose a realtor but those two criterion have very little to do with hiring a competent agent and, in many instances, are completely irrelevant. Let’s look at why.
The Highest Suggested List Price
Agents can’t tell you how much your home will sell for. That’s a not TRUE. A listing agent can show you comparable sales, pending sales and active sales. But YOU choose the sales price and a buyer will tell you if the price is right.
To get the listing, some agents distort the truth.
- Since agents can’t guarantee your sales price, the listing agent who suggests the highest price is probably untruthful. Ask the agent to show you numbers supporting that suggested list price. They probably won’t have them or the home sales will be located in a different neighborhood.
- Look for a listing agent who gives you a range.You always look for a price range. Many factors determine the range, among which are location, the market condition and improvements.
- Pricing is an art.The best time for an offer is within the first 30 days on market. If the home is priced right, you’ll get an offer. If it’s priced too high, you might not get any showings at all; buyers will shun your home and you’ll eventually end up reducing the price, leaving buyers wondering what’s wrong with your house.
Should You Choose an Agent Based on Commission?
Real estate agents are not equal; each is unique. Remember about 10% of the agents do 90% of the business. Each has their own marketing techniques and advertising budget. By choosing an agent with a large advertising budget and company dollars to match it, you will gain greater exposure to the largest number of buyers, which is ideal. Reaching greater numbers of buyers equals better chances of a good offer.
B- If you are buying a home, make sure to ask these questions:
1. Are you a member of the National Association of Realtors?
This organization requires certain standards from its members, and you don’t want to worry about having a shady agent.
2. Are you a member of MLS?
This is the Multiple Listing Service, which gives agents access to houses represented by all agencies — not just their own. For sellers, this means your home will be posted on the list as well, which means more people will see it.
3. Do you work on weekends?
Since this is when most open houses take place, the answer to this should be yes.
4. Can you outline how you would represent us?
The answer should include your housing inspections, following through with your mortgage approval process, and being present at your closing.
5. Will you show me houses listed by other companies?
Double-check that the agent isn’t partial to his or her own realty group.
6. Are you familiar with our area?
You’ll want the agent to know the ins and outs of your community.
8. What’s your business style?
Do you want a broker who calls you once a week or emails daily? Find out how the agent will keep you updated on prospects and inform them about your preferences.
Why hiring a Real Estate Agent when buying or selling a home.
1. Education & Experience.
2. Agents provide peace of mind.
3. Neighborhood Knowledge
4. Price Guidance
5. Market Conditions Information
Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices.
6. Professional Networking
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing.
7. Negotiation Skills & Confidentiality
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.
8. Handling Paperwork
One-page deposit receipts were enough to sell a house in the old days. Today’s contracts run so many pages with all forms and addendums and mandated disclosures. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures.
9. Develop Future Business Relationships
The basis for an agent’s success and continued career in real estate is referrals. This emphasis gives agents strong reasons to make you happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.
Sellers, what to do and not to do when selling your home
Selling Don’ts
1. Think you know more than your Realtor and insist on listing your home over what your Realtor advises. They are the experts and know the market. This is the most important “don’t” when selling your home, bar none!
2. Clean your home by cramming all your junk into every conceivable storage space. It’s a given that buyers will look in your closets, cabinets, basement and garage. If your storage areas are crammed with “stuff”, you’re sending a flag that their “stuff” won’t fit either.
3. Wait until a few days before your open house to discard or store unnecessary furniture, personal collections and family photos. Rent PODS – the newest, fastest growing self-storage units, or call on family to store the things you don’t absolutely need. This serves two purposes: you’ll have far less to do once you sell and showcase the room’s square footage.
4. Assume buyers are going to take on your deferred maintenance like broken doorbells, leaky faucets, chipped molding, running toilettes and/or torn screens. Buyers want turnkey homes. Moreover, you don’t want to give them instant negatives when they walk in the door.
5. Fill your home with Glad Plugins and similar products. It’s akin to spraying perfume in lieu of a shower – it doesn’t work and buyers suspect your trying to mask unpleasant odors. Clean is the only smell everyone loves!
6. Assume buyers are pet lovers – many are not and some are allergic to cats and dogs. During showings and open houses, temporarily take pets and all trances of them out of the home. Yes, this is a hassle, I know, but it’s temporary and your goal is to sell quickly.
7. Neglect curb appeal – it’s buyer’s first impression of your home in person and on MLS (where 90% of buyer’s start their home search). Hire a landscaping company or do it yourself. Don’t forget to trim hedges, add fresh mulch and blow debris clear from walkways, porch and driveway.
Selling Do’s
1. Find a reputable, seasoned Realtor and let them price your home based on their research, knowledge and comparable comps. Did you know that 85% of people think their home is worth more than it is?! Defer to your Realtor and trust that they understand the market and are experts at pricing homes!
2. Throw out any outdated, dusty floral arrangements and flower swags that went out with the eighties. Replace them with real plants, or buy high quality silk arrangements that will pass for the real thing – just not at the dollar store!
3. Paint the interior of your home in neutral colors. Nothing cleans and brightens up a home more than a fresh coat of paint. Moreover, it yields the biggest bang for your buck with a staggering 150% return on investment. Consult a home stager for the most popular neutral wall colors that have mass appeal.
4. Have your rugs shampooed so they are clean and odor free. You can rent carpet cleaners at most grocery stores or hire a carpet cleaning company. While you’re at it, open all your windows and air out your home every few days.
5. Give every room a purpose taking the guess work out for buyers. If you’re selling your home as a 4 bedroom, but have been using one of the rooms as an office/home gym, return it to a bedroom. If you have a small room with no closet, make that room an office.
6. Make your master bedroom non-gender specific.Invest in neutral bedding and add some decorative pillows. Look at high-end hotels. They are designed to appeal to the masses. Grandma’s homemade afghan isn’t going to cut it!
7. Invest in a home staging consultation. Home stagers are experts on preparing your home for the market. They understand and can implement all the necessary changes that will give your home that competitive edge it needs in today’s market.
Selling your home
Today I’m going to 
touch base on some of the services that your listing agent will provide:
1- Market Analysis.
Pricing your home properly is half of the job of selling. The agent will perform research, often before your initial interview, so that you will have the data needed to arrive at the proper listing price.
2- Information.
At the time your house is listed, the agent will collect detailed information about the property. The material will be used not only for assisting possible buyers in choosing which homes to view, but for preparing advertisements, drawing up a purchase agreement and arranging the eventual transfer of title.
3- Fixup Advise.
It can be difficult for you to view your home with an impartial eye. Being skilled in looking at houses as buyers see them, the agent can offer valuable suggestions for showing your home off at its best.
4- Interim Services.
If you must leave town for a vacation or move before the house is sold, you can expect a real estate agent to supervise the property, pick up papers, arrange for lawn care or snow removal and check for signs of vandalism or fire. Neighbors seeing anything suspicious usually call the number on the For Sale Sign, and the agent is available in an emergency.
5- Advertising.
These costs are usually borne by the real estate firm, which decides on the size and frequency of advertisements. You may be asked for suggestions, but you’ll find that the agent is experienced in writing ads.
6- Qualifying prospects.
Unless each house hunter who visits your property is financially capable of buying it, then you, the agent and the prospects themselves are just spinning your wheels. The agent has an established technique for judging buyers and will obtain information about income, assets and credit rating within the first few minutes of conversation. The process is called “qualifying” the prospect.
7- Appointments to Show.
You can expect your agent to clear appointments with you in advance, accompany all prospects, you as a seller should not be present at showings because you can jinx a sale. Every good agent has developed a skilled, professional technique for showing property to best advantage.
8- Open Houses.
For the same reasons, your agent may recommend that you leave the property during an open house. This period, usually a weekend afternoon, is advertised as a time when the public is welcome to visit the house. Special signs invite all comers, and the agent will devote several hours to your property that day.
9- Reports on progress.
While your home is on the market, you should receive periodic calls from your agent. You will appreciate these even if the agent reports only that nothing is happening. In this case you can expect suggestions for improving your home’s appeal.
10- Contract Negotiations.
The agent’s tact and diplomacy are most directly in the process of bringing you into agreement with the who wants your property. Knowledgeable in finance and law, with the experience of past transactions to call upon, the agent serves as a buffer between buyer and seller, skillfully smoothing the path to a satisfactory agreement.
How Do I Choose a Title Company?
How Do I Choose A Title Company?
Most consum
ers don’t even realize what Title Insurance really is. Many consumers don’t know they even need a title company until they were told so by their bank or realtor. The fact you are actually conducting due diligence in your search for a title insurance company is an important step. First off you are on the right path to guarantee your transaction goes smoothly and you have the adequate 3rd party protection and security that you as a consumer deserve.
How Do I Choose A Title Company? Before exploring how to make such a choice lets first make sure you understand what a title company is or even does, let’s review.
So now, how do you choose the right title company? First off, you as the buyer or borrower have the right to choose your title insurance company. The decision is not up to the Seller, Realtor or Bank. Section 9 of the Real Estate Settlement and Procedures Act or RESPA “prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.”
So there are most likely several title companies that come up as local agencies to your neighborhood. A lot to choose from right! But while most title insurance charges are state regulated and are the same across the board it’s important to know that not all title companies or individual title insurance offices are created the equal. Consider these key factors when deciding a title company to handle what is often the largest financial transaction in one’s life.
1) Company. There are many “in house” or “joint venture” title companies that possibly work exclusively with 1 real estate company, one lender or one home builder. While this obviously leads to higher efficiency within the parent company, it also creates the opportunity for price gauging. Often times a consumer will pay higher fees to such an entity and even more so get less in service.
2) Services. Closing in your home at a convenient time for you? E-Recording? The importance to these items is easy to explain. 1- Convenience to you; 2- Electronic Recording guarantees that your deed will be recorded right away as to avoid any potential discrepancies or potential fraud by past owners.
3) Fees. As mentioned previously, title insurance fees in most states are regulated by the States Department of Insurance. However, ancillary fees charged by title companies often times can create a significant difference from one company to the next. In addition to title and endorsement fees, there are recording, reconveyance, release tracking, courier, overnight delivery fees, wire fees, electronic document fees, mobile notary fees, document prep fees, etc. Additional work fees are also not uncommon. Shopping around can save you anywhere from 200-1,000 in ancillary fees depending on the County and State the transaction is in.
4) Experience: Has your escrow officer or title agent worked in the industry for 10 years or 10 days? Is the title agent an Attorney Title Company or a non-attorney title company? Some inexperienced title agents or non-attorney based firms may not be well versed in all forms of real estate transactions. Whether it’s a commercial deal, short sale, refinance, 1031 exchange, bank owned, REO, Seller Financed, Installment Sale, assumptions and wraps? Or do they have one specialty, more importantly; is it the specialty you are hiring them for?
5) Communication: Believe it or not, one of the biggest issues in the industry is lack of communication. In a business that requires communication many people are poor at communicating. How does your escrow officer or title agent communicate? Phone, email, face to face, text, fax, or all the above? It doesn’t really help to have an escrow officer that only communicates via phone if you prefer email or even text.
6) Financial Strength: Remember the title company is going to essentially place the transaction with an actual Insurer. The agent depending on the state your transaction is based in is probably just an “agent” for the Insurer. While many title companies have been around for over a hundred years, not all have. The purpose of a title company is to facilitate your escrow and provide title insurance for your most valuable asset. But will the underlying title insurer be around in a few years to pay a claim that an escrow officer with no experience and poor communication skills messed up? Ask the question, who is this being placed with? Then look up the companies rating http://www.demotech.com/01_pages/fsr/companies.aspx?t=1.
Choosing the right title insurance company is imperative to a successful closing. Many things can go wrong in a real estate transaction, it is vital that your title company be well versed in all aspects of the closing process. After all, the mark of a good company is how they respond when things go wrong.