Why Pricing Your Home Right Matters This Fall

Why Pricing Your Home Right Matters This Fall

Why Pricing Your Home Right Matters This Fall 

Why Pricing Your Home Right Matters This Fall [INFOGRAPHIC] | MyKCM

Some Highlights

  • As a seller today, you may think pricing your home on the high end will result in a higher final sale price, but the opposite is actually true.
  • To sell your home quickly and for the best possible price, you should eliminate buyer concerns by pricing your home competitively right from the start.
  • Let’s connect today to make sure you have the guidance you need to price your home right this fall.

Ready to Sell? Homebuyer Traffic Is on the Rise.

Ready to Sell? Homebuyer Traffic Is on the Rise.

 

Buyer activity is continuing to rise. Let’s connect to discuss why selling your house now could get you the price and terms you’ve been waiting for.

Two New Surveys Indicate Urban to Suburban Lean

Two New Surveys Indicate Urban to Suburban Lean

Two New Surveys Indicate Urban to Suburban Lean

Two New Surveys Indicate Urban to Suburban Lean | MyKCM

There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide.

In a recent Realtor Magazine article, they discussed the issue and addressed comments made by Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

“While migration trends were toward urban centers before the pandemic, real estate thought leaders have predicted a suburban resurgence as home buyers seek more space for social distancing. Now the data is supporting that theory. Coronavirus and work-from-home flexibility is sparking the trend reversal, Yun said. More first-time home buyers and minorities have also been looking to the suburbs for affordability, he added.”

NAR surveyed agents across the country asking them to best describe the locations where their clients are looking for homes (they could check multiple answers). Here are the results of the survey:

  • 47% suburban/subdivision
  • 39% rural area
  • 25% small town
  • 14% urban area/central city
  • 13% resort community/recreational area

According to real estate agents, there’s a strong preference for less populated locations such as suburban and rural areas.

Real Estate Brokers and Owners Agree

Zelman & Associates surveys brokers and owners of real estate firms for their monthly Real Estate Brokers Report. The last report revealed that 68% see either a ‘moderate’ or ‘significant’ shift to more suburban locations. Here are the results of the survey:Two New Surveys Indicate Urban to Suburban Lean | MyKCM

Bottom Line

No one knows if this will be a short-term trend or an industry game-changer. For now, there appears to be a migration to more open environments.

The 2020 Homebuyer Wish List 

The 2020 Homebuyer Wish List 

The 2020 Homebuyer Wish List 

The 2020 Homebuyer Wish List [INFOGRAPHIC] | MyKCM

Some Highlights

  • The word “home” is taking on a whole new meaning this year, and buyers are starting to look for new features as they re-think their needs and what’s truly possible.
  • From more outdoor space to virtual classrooms for their children, buyers have a growing list of what they’d like to see in their homes.
  • Let’s connect today if your needs have changed and your wish list is expanding too.
It’s Not Just About the Price of the Home

It’s Not Just About the Price of the Home

It’s Not Just About the Price of the Home

It’s Not Just About the Price of the Home | MyKCM

When most of us begin searching for a home, we naturally start by looking at the price. It’s important, however, to closely consider what else impacts the purchase. It’s not just the price of the house that matters, but the overall cost in the long run. Today, that’s largely impacted by low mortgage rates. Low rates are actually making homes more affordable now than at any time since 2016, and here’s why.

Today’s low rates are off-setting rising home prices because it’s less expensive to borrow money. In essence, purchasing a home while mortgage rates are this low may save you significantly over the life of your home loan.

Taking a look at the graph below with data sourced from the National Association of Realtors (NAR), the higher the bars rise, the more affordable homes are. The orange bars represent the period of time when homes were most affordable, but that’s also reflective of when the housing bubble burst. At that time, distressed properties, like foreclosures and short sales, dominated the market. That’s a drastically different environment than what we have in the housing market now.

The green bar represents today’s market. It shows that homes truly are more affordable than they have been in years, and much more so than they were in the normal market that led up to the housing crash. Low mortgage rates are a big differentiator driving this affordability.It’s Not Just About the Price of the Home | MyKCM

What are the experts saying about affordability?

Experts agree that this unique moment in time is making homes incredibly affordable for buyers.

Lawrence Yun, Chief Economist, NAR:

“Although housing prices have consistently moved higher, when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.”

Bill Banfield, EVP of Capital Markets, Quicken Loans:

“No matter what you’re looking for, this is a great time to buy since the current low interest rates can stretch your spending power.

Mortgage News Daily:

“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power. 

Forbes:

Homeowners are the clear winners. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.”

Bottom Line

When purchasing a home, it’s important to think about the overall cost, not just the price of the house. Homes on your wish list may be more affordable today than you think. Let’s connect to discuss how affordability plays a role in our local market, and your long-term homeownership goals.

Salt Lake Home Sales Climb to Record High in July 2020

Salt Lake Home Sales Climb to Record High in July

 

Salt Lake County home sales reached an all-time high in July at 2,093 homes sold, 15 percent higher than July 2019. It’s the first time monthly sales surpassed 2,000 closings since the MLS began keeping records. Home sales had tumbled in April and May as the COVID-19 pandemic forced business shutdowns and slowed consumer spending. However, sales began to increase in June as home buyers took advantage of record-low mortgage interest rates. Limited inventory remains the biggest challenge. Based on sales trends over the past six months, Salt Lake County’s housing inventory currently for sale would be sold in less than three months (2.87 months) if no new listings were added to the market.

Utah Real Estate Tip – there are no “easy” transactions.

Utah Real Estate Tip – there are no “easy” transactions.

 
 

Real Estate Legal Tip – there are no “easy” transactions.

Some people say that when the market is hot, “I can sell my home myself,” or “I don’t need an experienced agent because it costs money,” or “how hard can it be?”

Curtis Bullock From the Salt Lake Board of Realtors® Writes 

I can tell you that after being an attorney in this industry for almost two decades, there are no “easy” transactions in real estate right now – even in this hot seller’s market. Selling or purchasing a home requires a unique skill set and knowledge base to ensure the transaction goes smoothly. If you have recently purchased or sold a home and felt like it was easy, it’s probably because your Realtor® was solving problems left and right behind the scenes without you knowing about it.

I’ve shared this before, but here is a list of potential trouble spots your Realtor® will help you avoid when purchasing or selling a home. I’ve seen most of these happen when a seller or buyer tries DIY’ing the purchase or sale of their home:

* Seller misunderstanding what “as-is” condition means.
* How to deal with multiple offers.
* Husband or wife didn’t sign the REPC. Causes dispute over validity of the contract.
* CC&R’s not given to buyer causing problems.
* Seller disclosure form not delivered to buyer by the deadline. Causing lawsuit.
* Buyer not reviewing the Commitment for Title Insurance.
* Seller not providing Buyer Agent with Commitment for Title insurance by the deadline.
* Double contract. Loan fraud.
* Not using the correct contract or disclosure form in the appropriate situation.
* Buyer’s receive the key prior to recording, funding doesn’t occur, dispute arises.
* Buyer moving from out of state on friday to Settle at title company, doesn’t fund until Tuesday (Monday is a holiday) and becomes upset.
* Confusion on how the Time Clause Addendum works. Causing a disagreement.
* Lease agreements not provided to buyer before seller disclosure deadline.
* Low appraisal. Buyer sends notice of cancellation but forgets to include the appraisal.
* Multiple offers. Seller puts the property under contract with two buyers at the same time. Dispute arises.
* Counter offer is not withdrawn before accepting another offer. Problem arises.
* 10 different addenda included with the REPC. Confusion as to what has been agreed upon.
* Subject to Sale contingency not satisfied causing a domino effect resulting in two cancelled contracts.
* Missing initials on one page of the REPC causing a dispute.
* Seller repairs not completed. What to do next?
* Not delivering a document by the deadline. Dispute arises.
* Mold in the home detected. Who is responsible? Can I cancel the contract?
* Termites or radon detected in the home. What do I do now?
* No legal access to the lot. Implied easement issue.
* $10,000 earnest money not delivered by the buyer on time. Major dispute arises.
* Money wired and lost due to wire fraud.
* Mechanics lien filed on home that was “recently remodeled.”
* Sloppy language in an addendum causing a dispute.
* Air conditioner doesn’t work.
* Conflict between what is on the MLS and what is in the REPC.
* Multiple offers disclosed without seller approval, prospective buyers back out.
* Seller decides not to sell a week before settlement. Seller default. Lawsuit arises.
* Buyer backing out after deadlines expires. Buyer default. Lawsuit arises.
* Dispute over who pays for the HOA transfer fee.
* Dispute over who pays for the HOA special assessment.
* After Settlement but prior to Funding & Recording, house is vandalized.
* Missing dates on the REPC.
* Can’t get the HOA docs.
* Language on the REPC crossed out causing ambiguity.
* Sections of the REPC left blank causing ambiguity.
* The wrong address listed on the REPC.
* Two addendum number 4 – causing ambiguity and dispute.
* Seller failing to disclose major structural problem with the home.
* Fair Housing issue created after buyer submits letter with offer.
* “TBD” filled in on the REPC in too many places causing uncertainty.
* Poorly filled out forms and contracts causing problems.
* Representing multiple buyers at the same time on the same property causing a conflict.
* Angry tenant when showing a property.
* Seller didn’t accurately fill out the seller disclosure form.
* Checking “Acceptance” on page 6 of the REPC, then checking “Counter” on Addendum #1 that was also included in the offer.

Hiring an experienced Realtor® will be the best money you spend this year.

Image may contain: sky and cloud, text that says'R KEEP CALM AND HIRE A REALTOR'
Courtesy of

Curtis Bullock
Salt  Lake  Board of Realtors®
The Cost of Renting Vs. Buying a Home

The Cost of Renting Vs. Buying a Home

The Cost of Renting Vs. Buying a Home

The Cost of Renting Vs. Buying a Home [INFOGRAPHIC] | MyKCM

Some Highlights

  • The percentage of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
  • This is making buying a home an increasingly attractive option for many people, especially with low mortgage rates driving purchasing power.
  • Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.

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