Opportunity in the Luxury Market This Year

Opportunity in the Luxury Market This Year

Opportunity in the Luxury Market This Year

Opportunity in the Luxury Market This Year | MyKCM

Homes priced in the top 25% of a price range for a particular area of the country are considered “premium homes.” At the start of last year, many of the more expensive homes listed for sale hadn’t seen as much interest, since much of the demand for housing over the past few years has come from first-time buyers looking for starter homes. It looks like buyer activity, however, is starting to show a shift in this segment.

According to the January Luxury Report from the Institute for Luxury Home Marketing (ILHM):

“In a snapshot of 2019, despite pessimism at the start of the year, the last quarter showcased a strengthening, with an upswing in the luxury market for sales in both the single family and condo markets.”

Momentum is growing, and those looking to enter the luxury market are poised for success in 2020 as well. With more inventory available at the upper-end, historically low interest rates, and increasing average wages, the stage is set for buyers with an interest in this tier to embrace the perfect move-up opportunity.

The report highlights the increase in buyer activity in this segment, resulting in growing sales toward the end of 2019:

“According to reports from many luxury real estate professionals, the significant increase in number of properties bought at the end of 2019 versus 2018 is reflective of an early 2019 holding pattern.

Many of early 2019’s prospective luxury buyers held off while waiting to see how prices would react to new tax regulations and other policy changes. Buyer confidence returned in late spring and compared to 2018, above average sales were reported in the final quarter of 2019.”

With evidence of strong buyer confidence, this is great news, as more homeowners are building equity and growing their net worth throughout the country:

“Many homeowners are now diversifying their wealth, owning several properties rather than a single mega mansion. In addition, there have been an increase number of home purchases taking place in smaller cities, reflecting the rising number of people relocating from major metropolises. Their property equity wealth or ability to pay high rental costs have afforded them the opportunity to purchase luxury properties in…secondary cities throughout North America.”

With a strong economy and a backdrop set for moving up this year, it’s a great time to explore the luxury market. Keep in mind, luxury can mean different things to different people, too. To one person, luxury is a secluded home with plenty of property and privacy. To another, it is a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent understand what you’re after as you define the scope and location for the home of your dreams.

Bottom Line

If you’re thinking about upgrading your current house to a luxury home, or adding an additional property to your portfolio, let’s get together to determine if you’re ready to make your move.

Breaking News Housing Inventory

Breaking News Housing Inventory

Breaking News!

Housing Inventory Is Falling!

February 2-22-20

Utah Active Homes From Utah Real Estate >>> 6161

Salt Lake County Active Homes for Sale >>> 1265

Utah County Active Homes for Sale >>> 1387

Davis County Active  Homes for Sale >>> 360

Utah is experiencing a housing shortage. Most prevalent across the Greater Wasatch Front in Utah and Salt Lake County.

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Top reasons that sabotage a For Sale by Owner

FOR SALE BY OWNER??

Why some homeowners try to sell their home on their own. So is this a good idea? Many past For Sale By Owners say “ this wasn’t such a good idea”.
Top reasons that sabotage a For Sale by Owner.
1. So many people to keep track of and Negotiate With. You must be prepared to negotiate the sale yourself. The savvy buyer wants the best deal possible! The buyer’s agent solely represents the best interest of the buyer (90% of all buyers are represented by a Realtor®). DEAL KILLERS! Home inspection companies. Their job is to find problems with your home! A savvy buyer will then usually ask for a substantial price reduction! The appraiser, who is blindly selected by the buyers lender often times, will question value.
2. Exposure to home buyers. New studies have shown that up to 91% of buyers search online for a home. And some experts say that the large sites such a Zwillow and Trueila are notorious for posting old data. And only a tiny percentage is actually there for home shopping. The large sites are mostly just used by people for entertainment. Most Realtors® have multiple internet strategies to promote the sale of your home. Do you?
3. Results Come from the interweb. Where do buyers find the home they actually purchased? 43% on the internet, 9% from a yard sign, 1% from newspaper. The days of selling your house is not about just putting a sign in the yard an ad in the paper. It is critical to have a successful internet strategy.
4. For sale by owner selling 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 selling their own home has dropped from about 20% to less that 10% over the last two decades.

5. Netting more money when using Realtor®

What ?? this usually the case.
Save the commission and sale yourself? Unfortunately the main reason buyers look at for sale by owners is for the same reason, they can save the commission! A sad fact the seller and buyer can’t both save the commission. The buyer just reduces the price what he or she thinks the commission is.
Experts say thought various studies that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 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.
In Conclusion
You might want to sit down with a Realtor® before you decide to take on the challenge.

For Sale By Owner

For Sale By Owner

 

For Sale by  Owner

Why some homeowners try to sell their home on their own. So is this a good idea? Many past For Sale By Owners say “ this wasn’t such a good idea”.

Top reasons that sabotage a For Sale by Owner.

1. So many people to keep track of and Negotiate With. You must be prepared to negotiate the sale yourself. The savvy buyer wants the best deal possible! The buyer’s agent solely represents the best interest of the buyer (90% of all buyers are represented by a Realtor®). DEAL KILLERS! Home inspection companies. Their job is to find problems with your home! A savvy buyer will then usually ask for a substantial price reduction! The appraiser, who is blindly selected by the buyers lender often times, will question value.

2. Exposure to home buyers. New studies have shown that up to 91% of buyers search online for a home. And some experts say that the large sites such a Zwillow and Trueila are notorious for posting old data. And only a tiny percentage is actually there for home shopping. The large sites are mostly just used by people for entertainment. Most Realtors® have multiple internet strategies to promote the sale of your home. Do you?

3. Results Come from the interweb. Where do buyers find the home they actually purchased? 43% on the internet, 9% from a yard sign, 1% from newspaper. The days of selling your house is not about just putting a sign in the yard an ad in the paper. It is critical to have a successful internet strategy.

4. For sale by owner selling 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 selling their own home has dropped from about 20% to less that 10% over the last two decades.

5. Netting more money when using Realtor®

What ?? this usually the case.

Save the commission and sale yourself? Unfortunately the main reason buyers look at for sale by owners is for the same reason, they can save the commission! A sad fact the seller and buyer can’t both save the commission. The buyer just reduces the price what he or she thinks the commission is.

Experts say thought various studies that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 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.

In Conclusion

You might want to sit down with a Realtor® before you decide to take on the challenge.

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