real estate Archives - Page 16 of 97 - Real Estate News and Commentary

May 6, 2019May 6, 2019

Home buying process simplified

An article by Tracey Barbour for the Alaska Business Monthly (Younger buyers partial to homeownership, home-buyer education, online resources: akbizmag.com; September 2017) describes the growing phenomenon of millennial homeownership. Not surprisingly, many millennial home buyers are taking advantage of home buyer assistance programs. Because millennials grew up with the internet, you might think that they would rely less on professionals when home buying. But the opposite seems to be true. A majority of millennials prefer to connect with a single point-of-contact when applying for a mortgage (and likely when dealing with real estate agents). However, millennials do rely on the internet when it comes to understanding the home buying process. They spend copious amounts of time doing their own research on the home buying process.

It’s not just millennials, but most home buyers are taking advantage of online and digital resources to learn about the home buying process. Maybe it’s because we live in an era of information overload that home buyers are more aware of the many factors that need to be considered before buying a home. Regardless, the abundance of “home buying process” resources are helping home buyers decide if they are suited to buy a home, assisting with financial planning of buying a home, finding down payment assistance, mortgage application information, and so much more.

It used to be that if you were a first-time home buyer, you relied heavily on your real estate agent for the education of the home buying process. You placed a great deal of trust on their guidance. The home buying process was envisioned as a step-by-step formula to purchasing a house. The purpose of explaining the home buying as a process was to reduce the major aspects of home buying into distinct parts and make it seem simple and trouble-free.

The home buying process is a big ball of stuff…

Today, the standard “home buying process” as explained by real estate agents seems nebulous and lacking detail. Maybe even a little pedestrian. Maybe it’s because real estate agents tried to make their job easy and have control, but the word “process” incorrectly suggests that there is an exact order that is “one size fits all.” However, the home buying process is more aptly described by adapting the “timey-wimey” quote of the 2007 episode of Dr. Who (Blink) to say “People assume that home buying is a strict progression of cause to effect, but it is more like a big ball of home buying stuff.”

Moreover, all home buyers are different. Not just in their preferences, but also in their needs and expectations. And thus, home buyers will experience the process differently. One thing I can confirm from eighteen years of listing and selling homes is that all transactions are different.

But don’t discount the value of the traditional “home buying process” meme. Consider it a framework of mini-processes that are critical to buying a home. Each mini-process will be proceeding at its own pace parallel to other processes.

Choose your buyer agent well. The role of your buyer agent should go beyond helping you visit homes and writing an offer. Your agent should be there every step of the way to settlement helping you maneuver through the “big ball of home buying stuff.” When going through home buying process you can encounter pitfalls and setbacks that are time consuming and emotionally draining. Your agent should be able to offer guidance on coping and resolving any potential issues.

Original published at https://dankrell.com/blog/2019/05/06/home-buying-process-simplified/

By Dan Krell
Copyright © 2019

If you like this post, do not copy; instead please:
link to the article
like it on facebook
or re-tweet.

Protected by Copyscape Web Plagiarism Detector

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

April 27, 2019December 13, 2022

Home buyer preferences

Homes can vary along a spectrum of many factors. Size, style, location, are just the basic differences and are generally used by home buyers in their home search. However, even similar homes in the same neighborhood can differ depending on the homes’ features. Home buyer preferences and trends toward home features is usually the reason for price differences on similar neighborhood homes. This truth was validated by a study conducted by the National Association of Home Builders (How Features of a Home Impact Its Price; nahb.org; November 30, 2004). If you’re selling this spring, consider home buyers preferences and current home buyer trends.

In past columns, I talked about how most home buyers in the current housing market want a turn-key home. And that still holds true. Home buyers still prefer to buy a new home. However, buying a recently updated/renovated home is the next best thing. Generally, homes with new kitchens, bathrooms, and flooring get multiple offers and sell very quickly. Alas, updating and renovating a home takes time and money. Discuss with your listing agent how making (or not making) updates and renovations affect your sale price. You may have to adjust your pricing expectations accordingly.

So, what tops the list of home buyer preferences? The National Association of Home Builders latest “Trends in Home Buyer Preferences” (nahb.org) indicates that the kitchen is a prime area of focus. Current kitchen trends include a strong preference to either “traditional” or contemporary style cabinets. The styling would depend on the kitchen overall (consulting with a design center would be helpful). Additionally, water filtration has also become a desirable feature. If not already installed, water filtration can be added when replacing a refrigerator, as it is now a common function of modern refrigerators.

In today’s growing awareness of environment and sustainability, it’s a given that home buyer preferences show a strong preference toward energy efficiency. When updating, consider Energy Star (energystar.gov) certified appliances. Energy Star appliances typically use 50 percent less energy than standard models. Additionally, consider having an energy audit prior to listing your home. The energy audit will reveal the home’s energy efficiency. It will also highlight where improvements are recommended. The report itself is useful to the home buyer, even if you don’t follow all the recommendations.

New flooring is also important to home buyers. The preference towards wood flooring has always been strong. However, be aware that there are differences in quality of flooring products, as well as workmanship of installers. Even if you purchase top quality hardwood, poor installation can actually negatively impact the sale price. If you’re installing wood, tile or similar flooring, hire an MHIC licensed flooring contractor. Your flooring contractor can also help with trendy flooring options.

As a home seller, you certainly consider your home as being special. And you probably spent a good amount of money on customizing your home over the years. However, a problem many home sellers encounter is that over customization and personalization can negatively affect the home sale price. The truth is that home buyers have preferences too, and their preferences may not reflect yours.

Home buyer preferences and trends are constantly changing. Your listing agent should be able to help understand how current home buyer preferences and trends impact your home sale. Additionally, consulting with a home staging or interior design professional can assist you with deciding on making relevant updates to your home.

Original published at https://dankrell.com/blog/2019/04/27/home-buyer-preferences

By Dan Krell
Copyright © 2019.

If you like this post, do not copy; instead please:
link to the article
like it on facebook
or re-tweet.

April 18, 2019August 26, 2019

Short sale is still relevant

Believe it or not it’s been over ten years since the financial crises and Great Recession, and the short sale is still relevant! And this is why…

Coming on the heels of a dismal January, the National Association of Realtors March 22^nd data release announced good news declaring a home sales “surge” during February (nar.realtor). February’s closings increased 11.8 percent, compared to January! But the bad news is that the number of sales also decreased 1.8 percent from last year. If you follow real estate news, you know that homes sales stats were disappointing during the winter. (Consider that 2018’s total existing home sales were lower than the previous year’s total, according to NAR’s statistics). February’s adjusted annual home sale rate of 5.51 million is lower than the same time last year, and pales in comparison to the 6.48 million home sales in 2006.

Although February was indeed a busy month, NAR’s March 28^th data release of the Pending Home Sale Index predicts a slow start to the spring market. Homes that went under contract during February decreased 1 percent from the previous month and decreased 4.9 percent from the previous year. This “forward looking index” indicates that next month’s home sales may disappoint.

But there is a silver lining. Home sale prices continue to rise, meaning that home owner equity is not eroding. February’s median existing home sale price increased 3.6 percent from the same time last year. And according to NAR’s statistics, home sale prices have risen for 84 consecutive months (which equates to 7 years of continued gains)!

There are many reasons for a short sale

Although home sale prices are rising, there are still many home owners who are underwater. According to Attom Data (attomdata.com), distressed home sales still account for 12.4 percent of all home sales. Of course, this is far from the 38.6 percent in 2011. And the percentage of distressed sale continues to decrease. However, the number is still significant.

It’s estimated there are millions of underwater home owners. There are a number of reasons why home owners may be underwater, including (but not limited to) years of deferred maintenance, or a negative equity mortgage. Many short sales today include investment properties. Some home owners don’t know they are underwater until they list the home for sale.

Although not as prevalent as in 2011, the short sale is still relevant! Many underwater home owners don’t have to sell, as they are not financially distressed, and are happy to stay put for many years. However, some are compelled to sell for a number of reasons (such as divorce, bankruptcy, etc.). Some underwater home owners may have a desire to move, but can’t because they are underwater (such as empty nesters and retirees).

If you think your home sale may result in a short sale, get the facts. Question what you hear from others and what you find on the internet. There is a lot of information circulating about short sales. A majority of the information is either misleading, erroneous, and/or outdated. Consult with an attorney who negotiates sales to help you understand the legal aspects. Also consult your accountant for the financial implications.

There is much to consider, and a lot at stake! Be careful when considering your listing agent. Due your due diligence and hire an experienced short sales agent that knows the process and is savvy about appealing lender values. Many listing agents will give up on a short sale, mostly because it’s hard work. So most important, make sure your agent has a track record of getting the short sale to settlement.

Original published at https://dankrell.com/blog/2019/04/18/short-sale-is-still-relevant

By Dan Krell
Copyright © 2019.

If you like this post, do not copy; instead please:
link to the article
like it on facebook
or re-tweet.

April 15, 2019July 22, 2019

Over-aggressive agent harassment

Something has happened in the last few years where unsolicited phone calls and text messages have hit critical mass. It’s bad enough that unscrupulous individuals take advantage of technologies, such as phone number spoofing, to scam consumers. But it’s not a good sign for an industry when “professionals” abuse technology without regard to the law. You’re not alone if you’re feeling harassed by over-aggressive real estate agents who place multiple unsolicited calls and texts daily. There is a way to stop the over-aggressive agent calling and texting harassment.

When over-aggressive real estate agents abuse technology

Like other industries, technology has been integral in evolving the business of real estate in the last twenty years. As a result of proper application, consumers are empowered. However, some technologies are abused by real estate agents. The combination of aggressive sales tactics and technology can sometimes go over the line and become harassment. Recent lawsuits highlight alleged abuse of technology by real estate agents.

A recent class action lawsuit filed in California is taking on real estate agents who “cold call.” Realtor Magazine (Cold Calling in Real Estate Under Fire in New Lawsuit; magazine.realtor; April 8, 2019) reported that the suit originated from a request for the defendant brokerage to stop directing their agents to make unsolicited calls. The suit alleges that calling without consent violates the Telephone Consumer Protection Act and unsolicited auto-dialer calls violate the Federal Trade Commission’s National Do Not Call Registry.

The plaintiff alleges that he received unsolicited calls from multiple agents affiliated with the same brokerage to his cell phone, which is listed with the National Do Not Call Registry. The calls solicited to re-list his home after it did not sell. Although it’s sometimes easy to find a phone number (typically a land line) associated with a property, the plaintiff said his cell phone was not associated with the property listing in any way.

Two other lawsuits filed earlier this month in Florida focus on unsolicited texting. In one, the plaintiff alleges they received thousands of unsolicited text messages, violating the Telephone Consumer Protection Act, advertising homes for sale. The other alleges the use unsolicited texting to find potential home sellers.

Haru Coryne, for the Real Deal, reported that the suits are really about the abuse of auto-dialer technology that transmits “thousands” of text messages from a spoofed local number (Unsubscribe! Resi brokerages sued over text message spam; therealdeal.com; April 4, 2019). The founder of a popular real estate technology platform acknowledged to Coryne that real estate agents who use these technologies without knowing the law can get into trouble. He further stated, “A typical real estate agent will have five, six, seven programs, probably never took the time to see what the law is. [But] Just because they offer it doesn’t mean you can abuse it. It’s like eating candy and wondering why you’re getting fat. You can’t take technology and abuse it and wonder why you’re getting sued.”

There are many platforms selling these services to real estate agents. New technologies mine data (including emails and phone numbers) and “communicate” with consumers (including internet auto-dialers). There are several popular services that sell contact information (including cell phone and email) for expired listings and Sale by Owner. The data can be used in conjunction with text/email broadcasting, phone number spoofing, and auto-dialers. Many consumers feel harassed by the over-aggressive agent because they are bombarded with auto-dialers, texts, and emails, after opting-out or asking the agent to stop.

Stopping the over-aggressive agent

If you want to stop unsolicited calls and texts from the over-aggressive agent, simply opt-out. If they continue, contact the agent. Contacting the agent should put an end to the unsolicited communication. However, you may have to call the agent’s broker. If, in the slight chance, you continue to be bombarded with unsolicited communication after opting out and contacting the agent’s broker, you may have to consult an attorney.

This can be a watershed moment for the industry to educate consumers about professional Realtors and reign in the “bad actors.” The National Association of Realtors (nar.realtor) and local Realtor associations advocate for the responsible use of technologies and cold calling. With regard to telemarketing, the NAR states, “There’s no fine line or gray area: There are laws you must not break. But you still have a lot of flexibility on the right side of the law.”

By Dan Krell
Copyright © 2019.

Original located at https://dankrell.com/blog/2019/04/15/over-aggressive-agent-harassment/

If you like this post, do not copy; instead please:
link to the article
like it on facebook
or re-tweet.

April 9, 2019May 2, 2019

After you move in

Moving into your new home is exciting. You just went through an intensive process that tested your character. You feel a sense of relief it’s over. But the work is not over, it’s just beginning. What you do after you move into your new home can help maintain its value. It also can save you time, money, and keep your home functioning.

Of course, there are the standard items that needs immediate attention after you move in. Changing the locks is the number one item on the new homeowner list for obvious reasons. Deep cleaning the home is a task that is also performed, especially if the previous owner had pets. Keep all warranty information, including a home warranty policy (if you have one), in a safe place so you can find it if you need it. Make sure you know where the water shut off valve and the main electrical breaker is located in case of an emergency. Change of address forms from the USPS need to be completed to ensure you receive your mail. A visit to the DMV is necessary to change the address on your driver’s license.

But what else can you do after you move in to make life easier in your new home? Revisit your home inspection report. If the home seller made repairs, make sure you keep those invoices (your agent should have asked for those receipts prior to closing). If there is a problem with any of the repairs, you can call the associated contractor to reinspect the repair. However, it’s likely that the seller didn’t repair everything in the inspection, or maybe they didn’t repair anything. Review the report to see which items require your immediate attention, or may require attention within the year. Make sure you install any missing safety items (such as smoke and carbon dioxide detectors). Taking care of the urgent items immediately will likely prevent expensive repairs down the road. Keep the list of items likely needing attention in the future, so you can check them when you conduct regular maintenance.

Next on the list , after you move in, is to create a maintenance schedule. For most new home owners, maintenance seems to be a dirty word. After all, you just moved in and the last thing you want to focus on is “upkeep.” But putting off repairs can make the likelihood of damage to your home and repair expense increase over time. Research has even verified that deferred maintenance lowers your home’s value. Your home inspection report also should have information about maintaining systems such as (but not limited to): HVAC, electric, plumbing, roof, and exterior.

If you haven’t yet created a maintenance budget, do it now. Some of the systems may need replacing sooner than others. Check your home inspection report for the systems’ age and average life expectancy. Start saving to replace systems (HVAC, roof, etc.) so it’s not as much of a financial burden when the time comes to replace them.

Life happens and so does the occasional surprise. It is not uncommon for maintenance and other “surprises” to occur your first year in the home. Although it may seem correct to blame the home inspector, they are not perfect. They are limited to what they can see. “Surprises” often occur in a system or area that was not observable during the time of the inspection. It is my experience that home inspectors make themselves available within the first year of ownership to answer questions relating to their report. Some will even reinspect the item in question.

Original published at https://dankrell.com/blog/2019/04/09/after-you-move-in/

By Dan Krell
Copyright © 2019.

If you like this post, do not copy; instead please:
link to the article
like it on facebook
or re-tweet.