Realty Executives Midwest
One of the most important parts of being an agent is being able to have a relevant market opinion based on facts.
And this goes beyond just your local data. When you think about it, most clients are already forming their own opinion of the market because of what they see in the national media.
So, you not only need to know what’s happening in real estate locally and nationally, you need the facts and data to back it up.
Here are the biggest misconceptions about today’s housing market and the facts to help you explain it best to your clients.
While today’s housing market is anything but normal, it’s not because of the same circumstances surrounding the housing bubble of the early 2000s that caused the crash.
Back then, new construction single-family homes flooded the market, lending standards were incredibly loose, and many homeowners were cashing out their equity left and right.
Today’s market is nearly the exact opposite.
Since the housing crash of 2008:
Plus, housing market experts are forecasting continued price appreciation this year, as demand continues to outweigh home supply.
Stories about the volume of foreclosures are all over the news today. But the most important thing to remember is context is everything.
Yes, many homeowners were able to pause their mortgage payments during the forbearance program, and there was legitimate concern from many experts that it would result in a wave of foreclosures coming to the market.
However, the number of foreclosures we’re seeing today is nothing like the last time.
Here are some of the reasons why that’s happening:
Today’s data shows that most homeowners are exiting their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again.
For all of these reasons, experts don’t anticipate a wave of foreclosures that would negatively affect housing prices.
This might be one you’ve heard a time or twenty.
Skyrocketing price appreciation has many sellers and buyers sitting on the fence. However, experts don’t project home prices to go down anytime soon. Instead, data from earlier in the year has already been adjusted to be higher than previously anticipated.
So, how do you help answer this question? First American explains it like this:
“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”
For both buyers and sellers, this means one thing: playing the waiting game is a risky business.
When it comes to sellers, the higher price appreciation over the last two years has been great for their home’s value. But if they’ll also be buying a home after selling, they shouldn’t wait for prices to fall.
In both cases, waiting will only cost more in the long run because climbing mortgage rates and rising home prices will have an impact on their next home purchase.
As an agent right now, you have a tremendous opportunity to step up and be the advisor your clients need in this tough market.
And that means being able to clear up a lot of confusion about what’s really happening in real estate.
By educating yourself, you can then help educate your clients. And the best way to do this is by constantly keeping yourself and them up-to-date on the latest market insights.
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
If you have lived in your home for some time or are in search of a new home, you might be out of the loop on the latest features a home can include. From the newest technology to bonus rooms, we will cover a few must-have features to help you maximize convenience and increase your home value.
Today’s modern home should come with some smart technology with it. This tech can make home living more convenient while keeping you safe.
For example, a smart thermostat allows you to adjust or schedule temperature changes through your app. This feature can be convenient by keeping your AC at a higher temperature when you’re not home, then turning it on when you’re heading back to come home to a cool home. In addition, smart thermostats save energy, making the price worth it.
Another instance of smart technology is a home security system, letting you look through your home’s cameras at your convenience. Having this system can keep you safer compared to a base security setup.
Smart technology can also include your wall outlets, which can shut off when not in use. These outlets also come with USB slots, making charging small electronics more accessible.
You can also consider smart appliances, from your fridge to your oven. These appliances can make kitchen work more straightforward and can often keep you up with the news. For instance, smart fridges might have a display that tells you the weather, or a digital grocery list.
Your home probably won’t have every piece of smart tech in existence, so think of the basics and go from there. You can always buy more.
Many homeowners are looking for a laundry room where the appliances can connect. However, most laundry rooms are small and built into another room. One must-have home feature the modern homeowner should pursue is a larger room that makes storing dirty clothes and folding clean ones easier.
If your home doesn’t have a room like this, don’t count it out yet. Homes that have a spacious basement could double as a larger laundry room. As long as you have an area where doing laundry can be more accessible, you’re golden.
A garage is essential for a modern homeowner. It lets you store your vehicles and other belongings or act as a hobby room. However, many garages lack heating, which can be a problem. Even though a garage can be warmer than the outside, it can still damage cars and even invite cold air into your home, worsening your heating bill. Portable heaters are usually not powerful enough to warm the entire space, and can pose fire hazards.
A garage with heating built-in can be a valuable solution, keeping every part of your home warm during the winter.
Of course, this feature ultimately depends on the severity of your winters. For example, you might not need this if you live in an area known for its milder winters. However, if you expect plenty of snow, ensure your garage has some heating.
Another must-have home feature your property needs is exterior lighting. This type of lighting can include walkway lights or spotlights in your yard. It also emphasizes your yard, making it the envy of everyone who passes by. Many of these lights can be solar-powered, so there is no additional expense on your electric bill.
Sensor-activated lights can come on automatically at night or when someone is walking toward them. Both can work well as security systems, making it easier to see a possible burglar. Well-lit homes are less likely to be targeted.
Another feature that many homeowners should look for is a walk-in pantry. Although most people immediately think of a closet at the mention of walk-in, the pantry is another area that can benefit from additional space. The kitchen can become crowded, particularly if you’re a bulk buyer or have many appliances you use. We recommend storing larger appliances in the pantry to create counterspace. Additional, you can stash non-perishable food in case of an emergency. Overall, a pantry makes storage easier while avoiding clutter in and around your main cooking operations.
One feature many future homeowners look for is a suitable patio. The patio is the place where magic can happen. Think of family cookouts or having a deep conversation with your friends at midnight over a few drinks.
The size of the patio can depend on your needs and budget. If you don’t have a large patio, many come with conveniences to give you more room, including built-in fireplaces and grills. Envision how you want to spend your nights on the patio and come up with a design that can suit them.
When buying a home, having an extra room can be a lifesaver. If your home already has everything you need, you might feel like an extra room is unneeded. But, it’s nice to have some cushion for future changes. What happens if you get into a new hobby like sewing and need extra space for your machine and supplies? What if you want to build an in-home gym? What if you end up having a child?
A bonus room can be a convenient solution when life has a few extra surprises it wants to throw at you. Avoid stress over building a new room or planning an addition to your home by starting with an additional room (if budget allows).
These seven features are what many modern homeowners look for when buying a home. There are many more features that suit individual tastes, and you probably have some must-haves that we missed.
Remember, your home might not have everything on the list, so pick the must-haves you feel are most important to you. You can improve your home over time, meaning that you can eventually have the house that has it all!
Source: Realty Executives
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Because buying or selling a home is such a big decision in our lives, the need for clear, trustworthy information and guidance is crucial. And while no one can give you perfect advice, when you align yourself with an expert, you’ll get the best advice for your situation.
Let’s say you need an attorney, so you seek out an expert in the type of law required for your case. When you go to their office, they won’t immediately tell you how the case is going to end or how the judge or jury will rule. What a good attorney can do, though, is discuss the most effective strategies you can take. They may recommend one or two approaches they believe will work well for your case.
Then, they’ll leave you to make the decision on which option you want to pursue. Once you decide, they can help you put a plan together based on the facts at hand. They’ll use their expert knowledge to work toward the resolution you want and make whatever modifications in the strategy necessary to try and achieve that outcome.
Similarly, the job of a trusted real estate professional is to give you the best advice for your situation. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. They can’t because it’s impossible to know exactly what’s going to happen throughout your transaction. They also can’t predict exactly what will happen with conditions in today’s housing market.
But an expert real estate advisor is knowledgeable about market trends and the ins and outs of the homebuying and selling process. With that knowledge, they can anticipate what could happen based on your situation and help you put together a solid plan. And they’ll guide you through the process, helping you make decisions along the way.
That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with an expert real estate advisor.
If you want trustworthy advice when buying or selling a home, contact a local real estate professional.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
After months of anticipation, the Federal Reserve last week raised interest rates. The move was not a surprise – persistently high inflation and a strong labor market have monetary policymakers anticipating six rate increases over the course of 2022.
Amid a strange, hard-to-predict economy, rising interest rates add yet another unique variable. And compared to other industries, real estate stands to be strongly affected by rising interest rates.
Put simply, rising interest rates make it more expensive to buy a home. Rising interest rates mean rising mortgage rates, and rising mortgage rates mean that buyers have to shell out more to pay off their mortgage every month.
How will rising interest rates affect the housing market? What outcomes should agents anticipate when advising leads and clients about rising rates in 2022?
It’s been the biggest point of discussion in the housing market for nearly two years, and rising interest rates will only fan the conversational flames: Are home prices going to stop rising?
Traditionally, rising interest and mortgage rates tamped down home prices, as competition for homes decreased because of higher borrowing costs. Some experts think that will be the case in 2022, but others aren’t sold.
Just consider:
If general consumer prices continue to rise, home prices are unlikely to fall. And without many homes on the market, people may be willing to buy a home at its listing price, even as mortgage rates increase.
Research indicates that a median first-time home buyer is in his or her early thirties. Millennials, who make up a plurality of the American population, are the generation that currently occupies this cohort. As interest rates rise, the home buying behavior of millennials will indicate the broader health of the housing market.
On one hand, many millennials may not be able to enter the housing market as interest rates rise. Millennials already hold less wealth relative to other generations, since they came of age during the Great Recession and are disproportionately burdened by student debt.
On the other hand, one result of the 2008 housing crash was the underbuilding of new homes. So, the number of millennials who make a good salary and are at the age to buy a home may not meet the supply of available properties. Despite higher interest rates, these millennials may power a housing market that remains robust, at least until the supply of homes meets or exceeds their demand.
Rising interest rates mean rising mortgage rates. Is it possible that rising mortgage rates are, for now, actually heating up the real estate market?
The answer is maybe. Remember that last week’s interest rate hike was the first of six scheduled for this year. Mortgage rates are currently rising but still may be at their lowest point for the foreseeable future.
Home buyers are not unreasonable to think that buying conditions are better now than they will be in a year. If some home buyers determine that rising interest rates will make the market even more challenging in the future, they may act to buy now. Buyers deciding to enter the market while they still can may maintain or even raise the price of homes and the negotiating leverage of home sellers.
Source: Homesnap
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
One of the biggest concerns for a homeowner looking to sell is the time they’ll have to put in before listing their house. If that’s the case for you, you should know – your home might be closer to list-ready than you think in today’s housing market. A survey of recent sellers from realtor.com finds that many were able to get their house ready in less than a month. It says:
“With many homeowners expecting a quick sale, and in many cases a lack of contingencies, the preparation process took less than a month for over 50% of home sellers this past year, with 20% completing it in less than two weeks.”
Those sellers expecting to sell quickly are following recent buyer trends. With mortgage rates and home prices rising, buyers in today’s market are serious about finding a home quickly. But with the limited number of homes for sale, there are very few options for those buyers to choose from. That means many may be willing to take on projects after they purchase.
Because of this, you may be able to focus on less time-consuming tasks before putting your house on the market. According to the survey mentioned above, some of the top things recent sellers completed before listing over the past year include landscaping, making minor cosmetic updates, and touching-up paint (see image below):
Of course, each situation is different, and knowing what repairs or updates your house needs to stand out in your local area is critical. That’s where a trusted real estate professional comes in. In a recent article, NextAdvisor explains:
“. . . Real estate can be hyper-local, and demand can vary from one neighborhood to the next. It’s a good idea to work with a local real estate professional to determine an ideal listing price and if any improvements or repairs need to be completed before putting your home on the market.”
Your trusted real estate advisor knows the ins and outs of the market in your specific area. They’ll help you identify the places where you should and shouldn’t spend your time and money – and that can enable you to list quickly.
If you’re ready to take advantage of the incredible conditions for sellers in today’s real estate market but are worried about the time it’ll take to get your home ready, you might be closer than you think. Partner with a local real estate advisor to see what you need to do before listing your house today.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
