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That's So 2018! The Most Outdated Home-Selling Advice You Should Now Ignore

by Amy McLeod Group


There's one thing more scary than buying a house, and that's selling a house.

There is so much pressure to list your house and sell it quickly—and for a great price—that you probably find yourself turning to those who've been there before for advice.

But here's the problem: The housing market changes on a dime, meaning whatever worked for them might not necessarily work for you. In fact, it may backfire, big-time! Here are some of the most outdated words of wisdom you might hear that you may be better off ignoring.

Wait for spring to sell your home

Odds are you've heard that the best time to sell your house is in the spring, because that's when the buyers are out and about. But it also means you'll be competing against a slew of sellers.

"Listing in the spring means you are positioning yourself to compete with several other homes. So as a seller in the spring, you have to price and market your home flawlessly to show buyers that your home is more desirable than the house next door," says real estate agent Cheyanne Banks, of Nest Seekers International in Jersey City, NJ. "Because buyers have more choice in the spring market, they’re more likely to negotiate a lower price."

In fact, Banks now advises her clients to list in the summer and winter, when there's less competition.

Price your home high

Not too long ago, it was a seller's market—meaning competition was so fierce between buyers that you could still almost guarantee a sale if you priced your home over market value. According to Daniel Martinez, real estate agent and founder of HOULIVING, a boutique real estate company located in Houston, that's not the way it works these days.

"We are seeing homes on the market last longer and listings become stale one after another," says Martinez. "In today’s market, we need to be realistic about what is selling for what dollar per square foot and adjust, because the market decides what it’s willing to pay for a home. Not you or me."

And if you think you're going to start it at a higher price just to test the market, you should think again.

"Testing the market with an above-market price means your home will not fly off the shelf, and the longer it’s on the shelf the more potential buyers wonder what’s wrong with it," warns Phyllis Brookshire, president of Allen Tate Realtors in the Carolinas. "This results in more carrying costs for you and dramatic price reductions later."

Leave room to negotiate

Another reason sellers were pricing high was to leave room for buyers who were eager to negotiate, but real estate broker Gill Chowdhury, with Warburg Realty in New York City, says today's buyers won't play that game.

"With supply higher than it was a few years ago, if you're not priced at market, or at least very close, you're not going to get that many people in the door to begin with," she says. "Price your property to sell."

Sell your home as is

As recently as just a few years ago, sellers were often told not to invest too much into remodeling, as buyers would want to customize themselves. Why worry about it when they're going to do it anyway, right? Well, not only has the market changed, but so have the buyers.

"With many millennials entering the housing market, one of their biggest desires is to have a turn-key home, meaning they don't want to have to make changes or repairs, such as modernizing appliances and amenities—essentially the home is move-in ready," explains Nick Giovacchini, head of client services at AlphaFlow. "Not updating an older home could leave sellers at a disadvantage, especially if other homeowners have updated their homes before selling, even if the unimproved home is priced at a discount compared to more updated homes in the area."

Even though home prices are going down, the  buyers that remain are willing to pay a premium for homes that look the part, so put in some elbow grease before you put up that "For Sale" sign.

Amateur photos of your house are fine

If you've ever sold a home before, you probably remember the real estate agent coming in and snapping a few quick photos of your home to place with your listing. Heck, you may have even taken the photos yourself. We're sorry to say that's just not going to fly this time around.

"How your property looks online will have a direct impact on the number of buyers who will be interested in purchasing your home," says Nancy Wallace-Laabs, a real estate broker with KBN Homes, in Frisco, TX. "Hiring a professional photographer and adding drone pictures are an increased cost to a seller, but well worth the investment."

In fact, it may be a good idea to take it even further, says Mark Cianciulli, real estate agent and co-founder of the CREM Group in Los Angeles and Long Beach, CA. "For instance, the benchmark has become getting professional photos taken of the property, creating high-quality videos for your property that allow buyers to see different perspectives inside and outside the home, as well as 3D tours of the home that allow buyers to navigate though the home at will and in any direction they choose," Cianciulli explains.

So much for just snapping a few pics with your smartphone.

Holding an open house is a must

There was a time that hosting an open house (featuring freshly baked cookies, of course!) was a near guarantee that your house would sell before the weekend was over. Unfortunately, open houses aren't the shoe-in that they used to be.

"In my experience, those attending open houses are just putting their toes in the water and seeing what's out there—or they're just your typical nosy neighbor. Serious buyers will be out looking at the houses they want any chance they can get and not waiting until an open house to submit an offer," says real estate agent Heather Carbone, of Heather Carbone Team Big River Properties in Boston.

"Real estate agents like open houses because they create good opportunities for them to find unrepresented buyers, or to create a frenzy around the listing. Ultimately, an open house should be just one small piece of a bigger marketing plan for the property," says Carbone.

The McLeod Group Network is here to assist with all your home-selling needs!  971.208.5093 or [email protected]

By: Realtor.com, Whitney Coy

Why It Makes No Sense to Wait for Spring to Sell

by Amy McLeod Group


The price of any item (including residential real estate) is determined by the theory of ‘
supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

The supply of homes for sale dramatically increases every spring, according to the National Association of Realtors (NAR). As an example, here is what happened to housing inventory at the beginning of 2018:

Putting your home on the market now, rather than waiting for increased competition in the spring, might make a lot of sense.



Bottom Line
Buyers in the market during the winter are truly motivated purchasers and they want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

Let The McLeod Group Network evaluate the demand for your house in our market971.208.5093 or [email protected]

 

By: KCM Crew

Why You Should Not For Sale By Owner

by Amy McLeod Group


In today’s market, as home prices rise and a lack of inventory continues, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for most sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

According to NAR’s 2018 Profile of Home Buyers and Sellers, 95% of buyers searched online for a home last year. That is in comparison to only 13% of buyers looking at print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home, do you?

2. Results Come from the Internet

Where did buyers find the homes they actually purchased?

  • 50% on the Internet
  • 28% from a real estate agent
  • 7% from a yard sign
  • 1% from newspapers

The days of selling your house by putting out a lawn sign or putting an ad in the paper are long gone. Having a strong Internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interests of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 7% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they can save on the real estate commission by selling on their own, but they don’t realize that the main reason buyers look at FSBOs is because they also believe that they can save on the real estate agent’s commission. The seller and buyer can’t both save the commission.

study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is that,

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Bottom Line

Before you decide to take on the challenges of selling your house on your own, get together with The McLeod Group Network to discuss your needs.  971.208.5093 or [email protected]

By: KCM Crew

If You Are Thinking of Selling? You Must Act NOW!

by Amy McLeod Group

If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned about the concept of supply and demand, so we understand that the best time to sell something is when the supply of that item is low and demand for that item is high. That defines today’s real estate market.

Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:

Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity.”

Yun goes on to say:

The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver's seat right now. It might be time to hit the gas. Contact McLeod Group Network at 971.208.5093 or [email protected] to find out how much your home is worth! 

By: KCM Crew

The #1 Reason to List Your House for Sale NOW!

by Amy McLeod Group

If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes for Sale

The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun recently commented on the current lack of inventory:

“Inventory coming onto the market during this year’s spring buying season– as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand. 

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

The latest Existing Home Sales Report shows that there is currently a 4.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market, and 6.1% lower than last year’s inventory level.

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

Anything less than a six-month supply is considered a “seller’s market.”

Bottom Line

Let’s get together to discuss the supply conditions in our neighborhood so that I can assist you in gaining access to the buyers who are ready, willing, and able to buy right now! 971.208.5093 or mcleodgr[email protected]

By: KCM Crew

5 Reasons Why to Sell This Summer!

by Amy McLeod Group

Here are five reasons listing your home for sale this summer makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! More often than not, multiple buyers are competing with each other to buy the same home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory has declined year-over-year for the last 35 months and is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 41 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly, AND you’ll be able to find a premium home to call your own!

Prices are projected to appreciate by 5.2% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Want to know how much your home is worth? Contact The McLeod Group Network today! 971.208.5093 or [email protected].

By: KCM Crew

Home Prices: The Difference 5 Years Makes

by Amy McLeod Group

The economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The goal of the report was to look at economic recovery since the Great Recession of December 2007 through June 2009.

One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from December 2012 to December 2017 to show how prices over the last five years have fared.

Frank Nothaft, Chief Economist at CoreLogic, commented on the importance of breaking out the data by state,

“Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011. After finally reaching bottom in 2011, home prices began a slow rise back to where we are now.

Greater demand and lower supply – as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to pre-crash levels.”

The map below was created to show the 5-year appreciation from December 2012 – December 2017 by state.

Nationally, the cumulative appreciation over the five-year period was 37.4%, with a high of 66% in Nevada, and a modest increase of 5% in Connecticut.

Where were prices expected to go?

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

According to the December 2012 survey results, national homes prices were projected to increase cumulatively by 23.1% by December 2017. The bulls of the group predicted home prices to rise by 33.6%, while the more cautious bears predicted an appreciation of 11.2%.

Where are prices headed in the next 5 years?

Data from the most recent HPES shows that home prices are expected to increase by 18.2% over the next 5 years. The bulls of the group predict home prices to rise by 27.4%, while the more cautious bears predict an appreciation of 8.3%.

Bottom Line

Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even higher than before the Great Recession.

If you’re wondering if you have enough equity to sell your house and move on to your dream home, let’s get together to discuss conditions in our neighborhood! 971.208.5093 or [email protected].

By: KCM Crew

The #1 Reason to Sell Now Before Spring

by Amy McLeod Group

The price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2017:

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

Want to know how much your home is worth? Contact The McLeod Group Network today! 971.208.5093 or [email protected].

By: KCM Crew

U.S. Housing Inventory Crunch Continues… List Your House Today!

by Amy McLeod Group

Every winter, families across the country decide if this will be the year that they sell their current houses and move into their dream homes.

Mortgage rates hovered around 4% for all of 2017 which forced many buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!

At the same time, however, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Trulia reported that “in Q4 2017, U.S. home inventory decreased by 10.5%. That is the biggest drop we’ve seen since Q2 2013.”

Here is a chart showing the decrease in inventory levels by category:

The largest drop in inventory was in the starter home category which saw a 19% dip in listings.

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2018, now may be the perfect time.

How much is your home worth?? 971.208.5093 or [email protected].

By: KCM Crew

Thinking of Selling? Now is the Perfect Time

by Amy McLeod Group

It is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year.

The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring as compared to the rest of the year? The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2017. Here is a graphic showing the results:

The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,680,000.

That number spiked to 1,970,000 by May!

What does this mean to you?

With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for homes right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition amongst buyers.

Bottom Line

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.

Let’s discuss your options! 971.208.5093 or [email protected].

By: KCM Crew

Displaying blog entries 1-10 of 32

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The McLeod Group Network
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 971-599-5229

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.