This is the strongest market we have experienced around here since 1990. I remember that since my beautiful wife and I were newlyweds and looking to buy our first home. That summer of 1990 we had to look at houses like this: We met back in the living room and said, “do you want to write an offer?” Things were moving that fast. Remember, there was no internet yet, so there was no “offer review date.”
So, yeah, things that are priced right and look great really move.
Which brings me to the point of this post: What difference does your real estate broker actually make? Before I answer that, ask yourself this question: How many thousands of dollars do you want to risk?
The new brokerage in our area advertises aggressively about the low commissions they charge with billboards about “1% Listing Fee!!!” Woo Hoo! Of course there’s no mention of the commission that you’ll pay to the cooperation broker. I charge a total of 6% to 7% and offer half that to the cooperating broker. If you feel that’s outrageous, then let’s talk, I am negotiable, I’m a small business guy at the end of the day and I don’t need Windermere’s approval, or any managers approval like at a car lot. You are dealing directly with the owner.
Recently I have handled multiple offers with most of my listings, and the seller’s have benefited tremendously. Buyers that I have represented have been able to win with their offers as well.
So why pay the extra money in commission, whatever it might be? Because it’s highly likely you will end up making thousands more! Which do you want, the lowest dollar amount that says “commission” on the closing statement? Or, the biggest check with your name on it? It’s up to you. Hopefully it’s the latter.
Here’s another byproduct of this market. Everyone’s getting a real estate license again. I know, I know, your cousins sister’s ex-father-in-law just got his license and well, you know, you want to work with family. I get it, blood is thicker than water, and well, you know, he’s a really great guy and all that. Again, how many thousands of dollars is it worth for you to use a broker with no experience? I love working with them on the other side, I’ll say that!
After 25 years of helping buyers and sellers negotiate a great deal, you can be assured and confident you are not leaving money on the table.
Here’s a bit of a market update and what we can expect to see over the next few months and the rest of 2017. First of all, inventory is down 45% from where it was this time 2 years ago. What that means as an example is let’s say there were 10 buyers looking for a home, they had 9 homes and 1 condo to look at. Today, those same 10 buyers would have 5 homes and 1 condo to look at. So, obviously there are likely going to be multiple offer situations which always drives prices up. While we’ve seen interest rates go from 3.5% to about 4.25%, and expect them to perhaps reach 4.75% this year, it shouldn’t affect the number of buyers in the market and their motivation. The economy in our area remains good, people have jobs and want to buy houses. That will not be changing this year. So, with demand remaining constant, the supply shortage will continue to drive prices up. We’re expecting somewhere around a 7% increase this year—most of which will occur from March through June.
So, what does this mean for sellers? If you want to sell this year, let’s start talking now about getting your home ready to sell. Usually it takes a couple of months. Even though there’s a shortage of homes on the market, buyers are discerning and most buyers today don’t want to move into a fixer. What that means is your home will sell for significantly more money if you take the time to prepare it for market.
What this means for buyers is if you’re ready to go, start looking right now and be prepared to write a strong offer right now. You can either “ride the escalator” to the 7% increase, or you’ll be “taking the stairs”, meaning you can expect to pay 7% more when you find the right home. In real terms, a house that sold for $200,000 2 years ago will sell for $250,000 today, and will probably sell for $267,500 by this fall.
Stunning Princeton Place Unit in Fircrest
Very nice, well cared for unit in Princeton Place. This is a wonderful community of well cared for yards and consistent, very nice homes. The floor plan is inviting and perfect for entertaining. The back patio provides fantastic western exposure for afternoon sun and time spent around the BBQ. The spacious master features a large walk-in closet and a beautiful master bath. The 2 car garage is just what you're looking for as well, it keeps the car clean and you dry during the winter.
4 Bedrooms, 1.75 Bathrooms
Wonderful kitchen remodel with quartz countertops. Both baths updated as well. Lovely, bright family room, perfect for entertaining and movie nights. Large back yard with firepit, perfect for patio BBQ's and whiffle ball parties. Gas fireplace in the living room makes for enjoyable evenings as well! The nice, attached garage keeps the car clean and you dry during the rainy returns home.
The beautifully updated livingroom features warm hardwood floors and a handsome gas fireplace.
The kitchen has an efficient layout and view of the private back yard.
This home features one full bathroom, and a three-quarter bathroom as well.
Gorgeous family room, perfect for entertaining.
Serene and private outdoor spaces!
This large backyard filled with possibilities.
In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five of those reasons: 1. 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 interest 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
2. Exposure to Prospective Purchasers Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 3. Results Come from the Internet Where do buyers find the home they actually purchased?
- 44% on the internet
- 33% from a Real Estate Agent
- 9% from a yard sign
- 1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. 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 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. 5. You Net More Money when Using an Agent Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.
This is a truly gorgeous rambler in a nice community with access to Lk. Steilacoom. You will love the fantastic kitchen and the amazing master suite with see through fireplace tucked in with the soaking tub. The closet is ample as well. If you're looking for bedrooms AND an office look no further, this home has it. The 3 car garage is wonderful for keeping the cars and toys clean, yet still has plenty of storage. Also has a nice sized yard for pets or play, yet not too much care needed.
According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, homeownership is a better way to produce greater wealth, on average, than renting. The BH&J Index is a quarterly report that attempts to answer the question:
Is it better to rent or buy a home in today’s housing market?
The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers use a “'horse race' comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.” Ken Johnson Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:
“The nation as a whole is in buy territory. Continued near record low mortgage rates, unsteady stock market performance, and rents (on average) now out pacing the cost of ownership (maintenance, taxes, insurance, etc.) all combine to favor owning and building wealth through home equity over renting and reinvesting in a portfolio of stocks and bonds.”
Dallas, Denver and Houston currently remain deep in rent territory but, “there is some degree of good news from these markets for homeowners as the cost of renting is now increasing at a faster rate than the cost of homeownership — reducing the advantage of renting over buying.”
Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now. To Find Out More About the Study: The BH&J Index and other FAU real estate activities are sponsored by Investments Limited of Boca Raton. The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent