Some Trends in the 2016 Real Estate Market

Social Media and the Internet

Social media has undoubtedly changed the way various business markets operate, including the real estate industry, for buyers, sellers, and realtors.  Customers seeking to buy homes turn to the online world before ever speaking with a realtor or a broker.  Websites like Zillow, Trulia, and Realtor.com are usually the first place for a potential buyer or seller to search for a realtor.  Realtors are upping their online game by optimizing on websites such as these.  They try to provide the most attractive and informative profiles and many even pay for upgrades and “pro” versions in attempt capture the attention of potential clients.  Blogs are another popular tool for realtors due to increase in popularity of blogs and customer reviews.  Many realtors will have a professional Facebook page for their business to retain relationships with past clients, gain referrals, and to keep friends and family updated on new listings or blog posts.  Linkedin is a great way for realtors to grow their business and to network with other realtors and brokers.  Buyers and sellers use social media to try to learn more about realtors on a more personal and professional level before ever meeting.  They want to see what type of person their potential new realtor is like and what kind of experiences their past clients had.  Social media and the Internet are the best free source of marketing that a realtor can take advantage of.

Younger Buyers

Booming in popularity within the real estate industry is the rising amount of millennials as first-time homebuyers.  Rolling over as a growing trend from 2015, millennials are looking to buy rather than rent.  With the rise in rent prices and the improved availability of finances, millennials rather make the most out of their finances and investments and try to avoid wasting money on rent. 

Other Generations

2016 isn’t just the year for millenials and other first-time homebuyers but, other generations will be affecting the market.  The Gen Xers who are financially recovering and older boomer who are thinking about or entering retirement with both make an imprint on the real estate market in 2016.  Both of these generations are already homeowners but, they’re most likely to play a double role, both boosting the market as both buyers and sellers.  Approaching, or already in, retirement, older boomers are looking to downsize and obtain a lower cost of living while Gen Xers are in their prime earning years and seek to relocate to better neighborhoods for their families.  With the movement of these two generations, the millennials will have a great suburban inventory to choose from. 

Pushing Great Deals

A buyer’s market will emerge in 2016 with the increase of quality inventory available, especially in single-family homes.  Realtors will be getting creative with how they pitch the best deals.  With a decreasing trend in distressed sales, there will be an increased inventory of large, high-quality deals for new and experienced buyers.  Agents will have to understand the buyers that they are working with in order to really be successful this year. 

More Mortgage Brokers in the Office

In-house office teams are beginning to have more brokers available than ever before with the trending lower rates. 

Creative Gifting

Realtors love nothing more than building a business upon referrals.  In order to do this, realtors have sent gift baskets, magnets, calendars, and other traditional gifts.  The best realtors know the true importance of post-sale transactions so they’re getting more creative.  Hand-made address stamps featuring clients’ new home address are just one unique way for realtors to make their customers feel special.  Realtors who gift these tend to notice a boost in social media recognition from their client’s being happy about their new home.  Whatever the creative gift idea may be, realtors know that they can be critical in securing referrals and second-home purchases.

Second Tier Cities Taking Place

Some 24-hour cities like New York, Chicago, San Francisco, and Dallas, have been popular and ideal for many homeowners but, with a younger, trendier, and more frugal wave of homebuyers, second-tier cities are rising in popularity.  Some of these second-tier cities are Nashville, San Antonio, Austin, Portland, and Raleigh.  Residents of these cities benefit from lower cost of living (compared to 24-hour cities), more affordable and available investment opportunities, the ability to stay connected far from main hubs, and an increase in sophistication of realtors.

Sources:

http://www.curbed.com/2016/1/27/10842856/top-10-real-estate-trends-of-2016

http://www.inman.com/2015/10/21/10-real-estate-marketing-trends-to-keep-an-eye-on-in-2016/

http://www.realtor.com/news/trends/five-key-trends-for-2016/

Tips on Selling Your Home During the Winter

Don’t let any winter blues detour you from successfully selling your home!  Many people believe that the housing market goes on some sort of unintentional hold but, reality is quite the contrary.  Winter may not be the most convenient time to move but “homes listed between December and March sell faster than homes listed in other months, and for more money” according to Redfin, a real estate company.  People tend to escape the cold and go on tropical trips and the blistering cold can make house hunting unappealing, making the winter a challenging time to sell your home.  What this all really means is that there are fewer homes on the market which means that yours will get more attention from buyers!  Buyers looking in the winter are sure to be motivated and make their efforts worthwhile since they are brave enough to face the cold.  There are numerous things that home owners can do to make their home stand out to buyers. 

Before doing a huge remodel to get your home ready for the winter market, take note that interior designers, Realtors, and home stagers agree that doing any sort of large-scale remodels or extravagant staging of any kind before selling your home isn’t worth the investment.  Instead, the key to making your home stand out and successfully selling it in the wintertime lies in small renovations, upping the cozy factor, paying attention to details, and making the most of winter assets.  Here are some ideas for preparing your home for success by creating a warm and welcoming vision for home buyers:

Warm your Home

There are various ways to do this.  The obviously first is to light a crackling fire.  Fireplaces create a warm, cozy, inviting, and homey feel to a house.  Light a fire if you have a gas fireplace or a new clean-burning woodstove but if your home’s fireplace is older and leave a smoky smell in the room, hold off.  Smoke can be off-putting to those with allergies or sensitivities.  Instead, consider offering a warm beverage such as hot apple cider, coffee, or hot cocoa!

First Impression Entryways

A clean and clutter-free house will sell more easily, and maybe even at a higher price, any time of the year.  Entryways in winter can consist of slushly melting snow, wet boots, rock salt crystals, mud and muck, and winter gear thrown everywhere.  Entryways are one of the very first impressions of a home and can definitely play a factor in buyer’s overall feeling about a house.  Some simple ways to keep an entryway clean is to use a nearby closet to store winter coats, hats, boots, and scarves, have a rug at the door for feet wiping, have a trunk in the entryway to for storage, and have a light and quick mop or Swifter nearby to wipe up any messes. 

 

Lighten Up!

During the winter, daytime can often mean gloomy dim sun light.  Turn on the lights throughout your home to give buyers a brighter idea of what your home is all about, literally! Lamps and under lights aid in creating a warm and welcoming feel to the home too.

Pay Attention to Detail

Even the smallest of details can go unnoticed and make a real difference for prospective buyers.  Use what you already have in your home and do simple things like throwing a draped blanket over the back of an armchair or at the foot of a bed, throw some decorative throw pillows on the couch, a chair, and the bed, put area rugs consisting of warm hues throughout the home in open areas. 

Use Your Outdoor Rooms

If you have a covered porch or outdoor fireplace, it’s a great idea to keep that area fully furnished and visually appealing.  Turn on outdoor lights, put out some throw pillows and drape a quilt over any outdoor furniture.

 

Emphasize Spaces

To make your home even more appealing, emphasize spaces and rooms that will catch prospective buyers’ eyes and heighten their interests.  These types of rooms and spaces include: finished basements, playrooms, indoor exercise areas, tool sheds, finished attics, sun rooms, decks, rec rooms, built-in bar areas, cigar or game rooms, and any other special spaces in your home.  Remove any unrelated stuff or storage in the space to enhance clarity and appeal.  Be sure to tell your Realtor to show these spaces. 

Entertaining Possibilities

Who doesn’t like a home fit for entertaining friends and families?  Show the grand hosting possibilities of your home by holding holiday open houses and setting up for prospective buyer walk throughs.  Winter is a popular time of year for holiday parties and family gatherings.  Show just how warm and inviting your home can be by putting out plates of holiday snacks or cookies and warm beverages.  Decorate your tables with fresh winter flowers or outdoor foliage like decorative pine cones in a beautiful glass bowl.  Place popular winter vegetables and fruits in bowls on the kitchen counter like pomegranates, currants, figs, lemons, squash, and mixed nuts.

Winter Gardens

Among the snow and ice, it can be difficult for buyers to visualize a beautiful blooming garden.  There are ways to display the great potential of a garden by placing large urns and planters, benches, rock walls, and other garden structures. 

Shovel and Salt!

There’s nothing more off-putting about touring a house than not being able to get to the house due to an icy pathway.  Make sure open house guests and potential buyers can easily and safely walk all the way around the house and access outer buildings like garages and sheds.  Try to provide as much off-street parking as you can to make things easy for visitors.

Holiday Decorations

Help buyers envision living in your home by taking advantage of the holiday season and lively décor.  Let buyers see what their holidays could look like living in their home.  Twinkling lights, green wreaths, and other festive décor can definitely make a difference.  Don’t go overboard with the decorations, even the smallest of décor can make the biggest difference.

Hire a Motivated Realtor

The winter season isn’t a time for agents to kick back and relax or take off all winter to a tropical island.  You want an agent who is just as motivated at getting your home sold as you are.  Winter is a great time for Realtors to put their marketing techniques to good use.  It’s the perfect time to get creative and gain exposure.  As your friends and family if they have an Realtor to refer to you.  Make sure your Realtor focuses on targeting the right motivated buyers such as those on a deadline, relocations, investors on tax deadlines, college students and staff, and military personnel if you live near a military base.

Price to Sell

Who doesn’t like getting a great deal on a home?  A home that’s priced low for the market will make buyers happy, any time of the year.  Instead of making gradual small price reductions, many real estate agents advise sellers to slash their prices before putting the home on the market.

Attractive Curb Appeal

With the heaps of snow that can pile up during the winter time, it’s important to make sure your home looks just as good from the outside as it does inside.  Put up some sparkling holiday lights, do some minor repairs and paint touch ups to the outdoors, clean the gutters from Fall leaves, and shovel a nice pathway.

Take Great Photos

With the winter winds and snow-filled streets, homebuyers are more likely to begin their house hunt from the comfort of their warm cozy home by searching the Web for listings.  Therefore, it’s in your best interest to make sure that you take great photos to catch their attention.  Offer a generous amount of flattering, high-quality photos.  To make things even better, include a few summer and spring photos if you can.

Create a Video Tour

Another way to grab the attention of Web-browsing homebuyers is to make a virtual tour video of your home.  Make your home as attractive as it can be, utilize holiday décor, light a fireplace, light candles, and shoot a clear video tour of your home to post online.

Don’t Sell, Don’t Worry!

If you don’t sell your home before the New Year, don’t worry, there’s always next year!  The holiday season can be stressful enough with holiday parties, work goals, family gatherings, holiday shopping, cooking, and more, that you don’t need added stress with your home on the market.  As long as you and your Realtor do your very best, don’t let it get to you if you don’t sell.  The right buyers will come at the right time!

Are You Ready to Buy a Home or Should You Continue to Rent?

Are you looking for a new place to live but aren’t sure if you should buy or continue to rent?  That’s a decision that almost everyone faces at some point in their life.  Buying a house can seem like a daunting idea but there are many benefits to being a homeowner.  Owning a home can be very rewarding and a sound financial investment.  There are advantages and disadvantages that go along with being a homeowner.  Hopefully this blog post will help you with your decision.

Some questions to consider if you’re ready to be a homeowner:

Does it suit your lifestyle?

Does it make sense for you financially?

Do you plan to stay in the same place for a few years?

What does your next five-year-plan look like?

Do you want the responsibility of maintaining the home and making repairs when needed?

Is it a commitment that you’re willing to make at this time in your life?

Homeownership comes with many enticing financial and emotional advantages.  They are as follow:

Build Equity

Homes typically rise in value anywhere from 4% to 6% every year.  Even if your home doesn’t increase in value, you will be building equity by paying off your mortgage as long as your home maintains its value.  You increase your degree of ownership in your home with each payment when you have a home mortgage.  You can refinance your mortgage at more favorable rates or once you’ve paid your mortgage off entirely, you can borrow against the equity in your home.  This borrowed money can aid in funding major purchases like another home or your children’s education. 

Tax Breaks for Homeowners

Homeowners can deduct their property taxes and mortgage interest payments when they itemize their federal income taxes.  The deductions will offset the cost of your housing.  These deductions can equal huge savings, especially early on in your mortgage when interest makes up the bulk of your payments. While you might not be excited about paying property taxes on your new home, you are able to deduct them as well!

Your House Payments Will Remain Stable

If you choose a fixed-rate mortgage, your principal and interest payments will remain the same for the duration of the loan. You won’t have to worry about any increases in your monthly mortgage payment like you might when renting.  Keep in mind that your homeowner’s insurance and property taxes can change. 

You Can Settle in a Community

Once you are committed to being a homeowner, you are more likely to become better involved in your community.  You know that you will be there for years to come and a greater sense of community will help you feel even more at home.  You can get to know your neighbors, get involved in volunteer work, perhaps join a homeowners’ association, or get involved in local churches or schools. 

Potential Investment Possibilities

If you are a homeowner and you decide to move, you can choose to rent it out to generate income rather than sell it.  Covering the cost of your mortgage, or more, with rental payments can lead to success.  If you may consider this as an option, be sure to select a home that would make a potentially good rental property in the future. 

Decorate and Construct as You Please

If you want a purple kitchen or a blue bathroom, feel free! It’s your home! When you own your own home, you are free to paint, rearrange, and decorate as you please.  Unlike renting, you have the freedom to do whatever with your home, unless you are part of a homeowners’ association in which you will have not as much freedom with your home’s exterior.  If you wish to have another room, add one!

Maintenance Freedom

Living in a house enables you with the freedom of how to approach maintenance issues.  You can choose to either fix it yourself or choose your own contractor.  Keep in mind, there may be a monthly fee to pay for maintenance work covered by the association’s contractors if you live in a condo or a homeowner’s association.

Increase the Property Value with Improvements

Improvements to your home benefit the homeowner when you rent, you just get to enjoy them while living there.  When you are the owner of your home, you can increase your property value with any improvements that you make.

Develop Stability and Pride

Develop a more stable living situation as a homeowner.  It is an exciting and proud moment when you purchase a home. You gain a sense of independence and freedom.  When you are a homeowner, you have control over your home and you can do as you please with it. 

Some Homeownership disadvantages are:

Paying for Your Own Maintenance

Although you make your own maintenance decisions when it comes to your home, as a homeowner you must spend time and money keeping your home in good repair.  It is wise to set aside funds for unexpected expenses such as malfunctioning appliances, window replacements, or other repairs.

Your Home is an Illiquid Asset

In a sudden need for relocation due to a new job or a change in circumstances, you may not be able to list and sell your home as quickly as you would like or at the price point that you desire.  This is something to keep in mind as a homeowner.

Property Taxes

It is important to know that property taxes can rise, lowering the affordability of your home.  You can calculate the amount that you will pay in property taxes by taking your property’s assessment and multiplying it by the property tax rate, which is based on your jurisdiction or location.

Cash Investments

You may need use up your savings for a down payment on your home, closing costs, and other homeowner expenses.  That cash won’t be available for other investments. 

Losing Property Value

There is no guarantee that the value of your home will increase over time.

Homeowner’s Insurance

Homeowner’s insurance is mandatory if you have a mortgage payment.  As a renter, you aren’t required to have renter’s insurance but, as a homeowner, your lender requires you to insure your residence.  Typically you have to pay those insurance premiums along with your monthly mortgage payments. 

Commitment

As a homeowner, you are locked in to your property.  If you were to lose your job, you wouldn’t be able to simply and quickly downsize your home and monthly payments like you would when renting.  You still must make your mortgage payments each month otherwise your lender has th right to eventually take your home away.

Responsibility

When you own a home, you are responsible for maintenance and repairs.  When renting, landlords are responsible for maintenance and repairs but as a homeowner, that responsibility is on you.  This will cost you time and money. 

Additional Costs when Buying

There are several additional costs outside of the price tag of the house.  Some of these costs include a home inspection, bank origination fees, real estate transfer taxes, and more.

Resources:

http://www.moneycrashers.com/rent-or-buy-a-house/

http://www.zillow.com/home-buying-guide/rent-vs-buy/

http://mashable.com/2015/04/20/home-investment/#.pR6Q4S0aZqf

I'm the Realtor of the Week!

I am so honored to be featured as the Realtor of the Week by the Milwaukee Journal Sentinel in November 2015.  Thank you to all of my wonderful clients and my awesome team for helping me become the realtor that I am!  I love making my clients happy and helping them find the home of their dreams.  

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