Selling Your Home THRICE

In the latest blog post by Keeping Current Matters, Steve Harney points out that agents have to sell your home twice -- to buyers and then to the bank. I would say we have to sell it THRICE -- to other agents, to buyers, and to the bank. Savvy agents will do everything they can to keep their customers from looking at a home they feel is over priced or poorly maintained. Read the KCM blog post here

Should You Hire a Professional?

Steve Harney's Keeping Current Matters has an excellent post today on whether you should hire a professional to sell your home or try to do it yourself.  You can see the whole post here, but one particular section really spoke to me.  I have had several "commission negotiation" discussions lately, and what takes me 7 or 8 minutes to explain is summed up here in a concise and clear manner:

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

I have joked before that if you think I am a bulldog with you, imagine how I am with people across the table who are not on my side!  Considering how important my paycheck is to the livelihood of my family, it is very very difficult for me to give any of that up.  If I negotiate (or settle) easily for my own family, how can you trust that I won't do the same for yours?

Why You Should Buy NOW!

I follow Steve Harney and his blog at KCMBlog.com.  Today's post summarizes perfectly what I just tried to explain to a potentail purchaser, but trust me, I wasn't so clear and concise!  As usual, thank you KCMCrew!

 

According to Jed Kolko, Trulia’s Chief Economist:

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat. Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets.”

However, Kolko went on to say that this opportunity may soon disappear:

“Although buying a home is still cheaper than renting, the gap is closing. In 2013, home prices should rise faster than rents, and mortgage rates are likely to rise in the next year as the economy improves. By next year, buying could be more expensive than renting in some housing markets, even for people with the best credit.”

Again, the only way to lock-in your monthly housing expense is to take that decision out of the hands of a landlord by owning. With both prices and interest rates set to increase, the best time to buy is right now.

Another GREAT post from KCMBlog! Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying: Supply Is Shrinking With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy. Price Increases Are on the Horizon Prices were expected to bounce along the bottom this winter. However, many pricing indices (examples: CoreLogic, FHFA, LPS, Case Shiller) are reporting that prices are continuing to rise. Rents Are Skyrocketing Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%. Interest Rates Are Projected to Rise The Mortgage Bankers Association has projected that the 30-year mortgage interest rate will be 4.4% by the end of 2013. That is an increase of approximately one full point over current rates. Buy Low, Sell High We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy.

3 Questions You Must Ask...

The KCMBlog had a great post for anyone considering purchasing a home. Click here for the full article, but the 3 questions are: 1 -- What are the experts recommending? 2 -- When will I begin to see an appreciation if I buy now? 3 -- Why am I buying a home in the first place? Number 3 is particularly important. Forget the financial aspect and think about what your "picture" of homeownership includes -- a fenced backyard where your kids can play? somewhere you can paint a different color every week? Regardless, Lisa and I have extensive experience in working with both empty nester buyers, first time buyers, and all types in between. Contact us today!

Why Spending $$ is Sometimes the Best Way to Save $$

Yet another great post from KCMBlog on why you need to hire a professional. You may think it's costing you money, but there are so many instances I personally know of where it has SAVED people money!
Click here for more.

Patience is NOT Always a Virtue

"If you are thinking of selling, it would be wise to put your house on the market before prices fall again."

Read why here!

Info taken from KCMBlog.com

Picking the Right Agent

Steve Harney once again gives great advice to both buyers AND sellers on his KCMBlog. Read about why you need not just any agent but THE agent here.

Say it Ain't So, FSBO...

I returned from vacation last week and then lost my grandfather a few days later, so it has been a while since I have been on here! One of my goals as I returned to the office today was to update my blog, and I had an excellent article just fall into my lap concerning the founder of forsalebyowner.com. Click here to read the blog post on Steve Harney's website. Very interesting perspective if you are considering going it alone!

No Homes Available?

From KCM Blog:

It is also a terrific time to sell. I heard an agent say just last week that there is NO INVENTORY available. He further explained that properly priced homes are selling almost immediately and the only homes on the market more than 30 days are ones that won’t sell because of unreasonable seller expectations (and agents who aren’t strong enough to deliver the truth to those sellers).

THIS IS RINGING MORE AND MORE TRUE IN MY BUSINESS!

Professional or Pretender?

A pretender worries about your feelings and places great emphasis on whether or not you will like them. A professional worries about your family and how they can help. A pretender will tell you what you want to hear. A professional will tell you everything you need to know.
WOW -- this is from the latest Steve Harney post. Sellers, always remeber there are some agents out there who will buy your listing at any cost to get their sign in the yard. The professional agent will give you a true value, no matter how much skepticism it may create. Soo the KCMBlog for more!

The Bottom Line

There is currently a window of opportunity to sell your home before the discounted properties again re-enter the market and put downward pressure on prices. If you plan to sell within the next year, now might be the time.

I know I reference Steve Harney a LOT in my blog, but the KCM Crew has sent out yet another good one. So many folks are talking about the fall of prices and speculating when they will begin to go back up, but not many people understand the reasoning why. KCMBlog.com gives an excellent illustration in today's post, likening the foreclosure crisis to water behind a dam. In short, the banks need to release just enough to stimulate the market and relieve some pressure, but releasing too many at once will flood it and cause to to spiral. Check it out yourself for more details. Good reading!

What Makes Up Your Credit Score?

KCMBlog.com has posted an excellent explanation of credit scores. I encourage you to visit the website to read the information in full, but I am going to post what actually makes up the score. Very interesting!

35% is based on payment histories
30% is based on amounts owed (yikes for me)
15% is based on length of credit history
10% is based on new credit and inquiries
10% is based on the type of credit used
VERY GOOD INFO TO KNOW! Please visit http://www.kcmblog.com for more details!

Do NOT Wait!

KCMBlog.com has an excellent, but sobering, post today about projected home prices. The post boils down to one crucial statement: "If you are looking to sell within the next two years, the highest sales price you will be able to attain for your home is its current value." If you would like to read the whole article, just visit KCMBlog.com. Fannie Mae has forecasted prices will fall and not return to present levels until 3rd quarter 2012... so sell while you can!