Realty Executives Midwest
It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.
When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraiser to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the price after the appraisal. A real estate professional will help you set the true value of your home.
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years (as shown in the graph below):
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.
Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.
Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, reach out to a local real estate professional to help you navigate through the process while prioritizing these must-do’s.
Article Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
The real estate market is expected to do very well in 2021, with mortgage rates that are hovering at historic lows and forecasted by experts to remain favorable throughout the year. One challenge to the housing industry, however, is the lack of homes available for sale today. Last week, the National Association of Realtors (NAR) released their Existing Home Sales Report, which shows that the inventory of homes for sale is currently at an all-time low. The report explains:
“Total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.”
(See graph below):
Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a bidding war. Calculate just how far you’re willing to go to secure a home and lean on your real estate professional as an expert guide along the way. The good news is, more inventory is likely headed to the market soon, Lawrence Yun, Chief Economist at NAR, notes:
“To their credit, homebuilders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes…However, it will take vigorous new home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.”
Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate the best possible terms. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to request more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.
The housing market will remain strong throughout 2021. Know what that means for you, whether you’re buying, selling, or doing both.
Article Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Buying or selling a home is an exciting journey. But with so many different things to research and decide, it may be overwhelming. Especially when you aren’t familiar with terms commonly used during real estate procedures. Our experts are here to help! Let’s go through some of the most common real estate terms and what each one means for you.
Annual Percentage Rate (APR)
This phrase is mostly used for home buyers who are calculating their loan amount. Your APR is the amount of interest charged every year on the loan.
Contingency
This is one of the most used words in a real estate contract or by a real estate agent. A contingency refers to certain events that must take place in order for the contract, between buyer and seller, to not be nullified or voided. For example, a buyer’s contingency may state that the seller must replace the water heater before sale is final. If the seller chooses not to meet this requirement, the buyer may pull out of the sale.
Down Payment
The down payment is the amount of money the home buyer pays at the time of closing, usually 10 to 20 percent of the listing price. Although there are some financial aid programs that assist hopeful homeowners in securing funding for this payment, it’s important to save as much as you can when looking to buy. The higher the down payment, the less your overall interest and monthly payment.
Equity
Equity refers to your part of actual ownership in your home. Yes, the home is under your name, but your mortgage lender has interest in the home until it is completely paid off.
Escrow
This part of the home journey is toward the end. It means a 3rd party, apart from the buyer or seller, is holding funds during the transaction period. Once the transaction has been completed, the 3rd party releases the buyer’s funds to the seller.
Pending
Home sales are considered pending if all contingencies have been met and the buyer and seller are moving toward closing.
Pre-Approval
As a home seller, it is common to require potential buyers to provide proof of pre-approval. The pre-approval process includes checking your credit, verifying given information and stating the specific loan amount you qualify for.
Under Contract
This is another real estate term that is only used when the home buying process is coming to an end. It means a seller has accepted an offer, but the transaction hasn’t closed yet.
There are plenty more phrases or definitions you may come across while doing your research, but with this list, you will be way ahead of the game and ready to buy or sell in no time. Of course, you can always call your local real estate brokerage and ask for some help as well. To see what offices are located in your area, visit www.realtyexecutives.com/offices.
Article Source: Realty Executives International
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
If one of the questions you’re asking yourself is, “Should I sell my house this year?” consumer sentiment about selling today should boost your confidence in the right direction. Even with the current health crisis that continues to challenge our nation, Americans still feel good about selling a house. Here’s why.
According to the latest Home Purchase Sentiment Index from Fannie Mae, 57% of consumer respondents to their survey indicate now is a good time to buy a home, while 59% feel it’s a good time to sell one:
“The percentage of respondents who say it is a good time to sell a home remained the same at 59%, while the percentage who say it’s a bad time to sell decreased from 35% to 33%. As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.”
As you can see, many still believe that, despite everything going on in the world, it is still a good time to sell a house.
There simply are not enough homes available to meet today’s buyer demand, and they’re selling just as quickly as they’re coming to the market. According to the National Association of Realtors (NAR), unsold inventory available today sits at a 2.3-month supply at the current sales pace, which is down from a 2.5-month supply from the previous month. This record-low inventory is not even half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory to balance out.
With so few homes available for buyers to choose from, we’re in a true sellers’ market. Homeowners ready to make a move right now have the opportunity to negotiate the best possible contracts with buyers who are feeling the pull of intense competition when it comes to finding their dream home. Lawrence Yun, Chief Economist for NAR, notes how quickly homes are selling right now, further confirming the benefits to sellers this season:
“The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.”
However, this sweet spot for sellers won’t last forever. As more homes are listed this year, this tip toward sellers may start to wane. According to Danielle Hale, Chief Economist at realtor.com, more choices for buyers are on the not-too-distant horizon:
“The bright spot for buyers is that more homes are likely to become available in the last six months of 2021. That should give folks more options to choose from and take away some of their urgency. With a larger selection, buyers may not be forced to make a decision in mere hours and will have more time to make up their minds.”
If you’re ready to make a move, you can feel good about the current sentiment in the market and the advantageous conditions for today’s sellers. Contact a local real estate professional today to determine the best next step when it comes to selling your house this year.
Article Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
The real estate market is affected by so many factors, and yet top, elite agents find a way to always grow and thrive in any market.
Sherri Johnson, premier real estate gives her take on how to work like the most productive agents do!
Making the difference
I remember my first manager telling me that I could make it in any market because I went out and “made it happen” and didn’t rely on one particular lead source for all my business. When you truly know how to add value and deliver five-star level service, you can create your own success. It takes grit, dedication, a business plan and a winning mindset.
Here, I share the “uncommon” characteristics of top selling real estate agents that allow them to keep growing their business regardless of outside economic factors.
These atypical but totally necessary behaviors ring true with all top, elite agents. When adopted and implemented fully, these attributes will become the “difference makers” you need to go from good to great and from wishful thinking to potentially doubling or tripling your production and income.
1. An inner drive to succeed
When you want to succeed, you will do whatever it takes to make your goals happen. First, you must know precisely what you want to accomplish. Is it an income goal or an achievement goal? Knowing what drives you will help you stay committed to the goals you set. Top real estate agents know what their inner drive to succeed is and use it to drive them every day. Know yours, share it with another person — your manager or a coach — and keep that inner drive alive. I can’t motivate a satisfied person. No one can. What motivates each of us is different, but it is that inner motivating drive to succeed that is in every top agent I know. Find it. Embrace it. Run with it.
2. Totally focused and disciplined
Successful agents maintain a laser focus on what they want to accomplish every day. How many listings, sales or calls do you need to make to hit your goals? Staying focused and avoiding distractions requires discipline, and this will help you achieve your success faster and with better clarity. Nothing will interrupt a top agent’s schedule to create new leads. Get zeroed in with your discipline and focus, and watch successful results happen almost immediately.
3. A winning mindset
Every top agent believes they are already a winner and that they can and will achieve their desired goals. Your mindset totally impacts your behavior and your daily actions. Develop the mindset that you have a listing or sale this week. You just don’t know the address yet! Create the positive, winning mindset that you are as good as the other agents in your market and that you can increase your average sale price or break into the luxury market successfully. I remember believing that I was already a $10 million producer before I was, and it gave me the self confidence and mindset to act like I had achieved my goals. Developing a winning mindset will allow you to win before you start your day and enable you to see your winning results happen just as you intended.
4. A beyond-positive attitude
I love when people say, “Are you always so positive?” And I say, “Yes, of course!” A top trait of successful agents is that they are beyond positive. They are positive about the market they sell in, positive about any offer they are negotiating, positive about any listing they are trying to sell — just always positive. Other agents love to sell homes with these agents because they are positive and keep everyone in the transaction positive too. It’s a winning trait and it works.
5. Action-based
Top agents don’t talk about what they want to do; rather, they constantly take action. They’re trying new things and making success happen for themselves. They’re not waiting for leads to come to them; they are going out and finding the opportunities. What types of action will you take to increase your business for yourself? Taking action makes opportunities happen. Top agents know this and live it!
6. Perseverance and a never-give-up attitude
There is always a way to solve an issue if you have the perseverance and attitude to exhaust all options to help put a deal together or keep one alive. Top agents have a “never, ever give up” mentality and it’s obvious. They will find a way to bring buyer and seller together for the good of both clients. This trait goes beyond the norm and really shows the dedication of adding value to clients.
7. Passion, humility and gratitude
Top agents have a humble and grateful attitude of gratitude. My belief is that this is what makes them even more amazing. They are passionate about serving.
8. Focus on listings
Top agents have always been focused on listings. Listings are the most important business activity an agent can do. All the marketing, name recognition, spin-off sales and listings, and all the credit goes to the listing agent. Top agents have mastered the art of servicing seller clients, and the payoffs are huge. Focusing on listings will make you the “name brand” and most recognized top agent in your market. Create a plan to increase your listing inventory and dominate your market with more for-sale signs with your name on them. This will create increasingly more success for your business.
Adopting these attitudes and behaviors will give you the ability to survive any market and create your own success each month. In the end, real estate is easy hard work. It’s easy if you like to proactively help people and solve their problems, but it requires a strong work ethic and commitment to work the business and make it happen.
Originally published by our partners at www.dotloop.com.
Article Source: Realty Executives International
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.
