The Perks of Buying a Home in the Fall

Editor’s Note: This post was originally published on September 16, 2015. Housecall continues to share this piece due to ongoing requests and reader interest.

As we close out a summer marked by rising home prices and limited supply, we’re conditioned to expect the inevitable end-of-season slowdown. But the change of season doesn’t mean activity drops off completely – in fact, fall’s arrival presents opportunities for homebuyers, in part due to a “back-to-school mentality,” according to a survey by ERA Real Estate.

If you’re a prospective homebuyer, tap into that renewed sense of motivation – and consider the following perks – while hunting for a home this fall.

You can enjoy year-end tax breaks. Buying before the year’s out allows fall homebuyers to take advantage of tax breaks such as the mortgage interest and property tax deductions. “There are certain deductions that can be claimed by homeowners only,” explains 1040Return.com Founder John Gregory. “If you have taken out a homeowner’s loan, consider these deductions as Uncle Sam’s gift to you.” To learn more about the tax benefits available to homeowners, click here.

You can sidestep the multiple-bid minefield. Bidding wars dominated low inventory markets this summer, but competition tends to wane as activity slows in the fall. With fewer folks searching for homes, fall homebuyers can spend less time chasing supply and more time finding – and getting – the perfect home.

You may have more bargaining power. Aside from less competition, fall homebuyers may have the opportunity to purchase their home of choice at a reduced price, especially when negotiating with sellers who had hoped to unload their homes over the summer.

Related Link: If Your Home Didn’t Sell This Summer, Don’t Despair – Fall and Winter Are Great Times to Sell, Too

You’ll be home for the holidays – literally. As ERA reports in their survey, fall homebuying activity is also fueled by emotional motivation. “As vacations wind down after Labor Day and people become more focused, the desire to be in a new home for the holidays is a historically strong driver of fall home sales,” says ERA President and CEO Charlie Young.

 

Posted by Suzanne De Vita on RISMedia’s House Call

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NAR Reports Show It’s A Great Time to Sell!

We all realize that the best time to sell anything is when the demand for that item is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that right now continues to be a great time to sell your house.

Let’s look at the data covered in the latest Pending Home Sales Report and Existing Home Sales Report.

THE PENDING HOME SALES REPORT

The report announced that pending home sales (homes going into contract) are down 2.3% from last year and have continued to fall on an annual basis for seven straight months.

Lawrence Yun, NAR’s Chief Economist, had this to say:

“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

Takeaway: Demand for housing is strong and will continue to grow in 2019. Without an influx of new listings for sale, pending home sales will continue to decline. Listing now means you will be able to take advantage of the demand currently in the market.

THE EXISTING HOME SALES REPORT

The most important data point revealed in the report was not sales-based, but was instead the inventory of homes for sale (supply). The report explained:

  • Total housing inventory decreased 0.7% to 5.34 million homes available for sale in July
  • This represents a 4.3-month supply at the current sales pace
  • Sales are now 1.5% below a year ago

There were two more interesting comments made by Yun in the report:

“Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million.”

In real estate, there is a guideline that often applies: When there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation; between 6-7 months is a neutral market, where prices will increase at the rate of inflation; and more than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are (and will remain) in a seller’s market and prices will continue to increase unless more listings come to the market.

“Listings continue to go under contract in under a month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties. Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a sizable supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out looking for your house.

Posted by The KCM Crew

Are you ready to sell? Click HERE to get started!

5 Reasons You Should Sell This Fall!

Here are five reasons why listing your home for sale this fall makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! In fact, more often than not, multiple buyers end up competing with each other to buy the same homes.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now 

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon!

Historically, a homeowner stayed in his or her home for an average of six years, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all that they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 44 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The abundance of inventory available in these higher price ranges has created a buyer’s market for anybody looking to purchase these homes. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 5.1% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life 

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you feel you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

 

Posted by The KCM Crew

Are you looking to sell your home? Visit our website TODAY to get started!

September Home Checklist

4 Reasons to Sell This Fall [INFOGRAPHIC]

Some Highlights:

  • Buyer demand continues to outpace the supply of homes for sale! Buyers are often competing with one another for the listings that are available!
  • Housing inventory is still under the 6-month supply that is needed for a normal housing market.
  • Perhaps the time has come for you and your family to move on and start living the life you desire.

Posted by The KCM Crew

Ready to sell? Click HERE to see how much your home is worth!

Check Yourself: 7 Home Maintenance Tasks You Should Tackle in October

schulzie/iStock; realtor.com

Ah, October. Temperatures are dropping, the days are growing shorter, and the pumpkin spice latte is, in a word, inescapable. But before you go hog wild with the Halloween decorations and settle in for that horror movie binge session, take some time to prep your home for winter’s onslaught (buzzkill, we know!).

Luckily, we’re here to make it a breeze with our handy checklist of home maintenance chores to tackle this month. Some of these are so quick and easy that you won’t even miss a beat of that “Friday the 13th” marathon (although we’d recommend skipping “Jason X.” He’s in space—do we need to say more?) Read on for details about where to start, and who to call if you need reinforcements.

1. Clean your dryer vents

This one’s a lot more serious than it sounds. Excess lint can dramatically increase the risk of fire.

“A key indicator of a dryer vent needing to be cleaned is if clothes aren’t drying as fast as they usually do, or if it takes multiple cycles to get them completely dry,” says Maria Vizzi of Indoor Environmental Solutions.

DIY: Prevent buildup from the get-go by emptying your lint trap every single time you use your dryer. If possible, move your dryer closer to an exterior wall; if your vent pipe is particularly long or has to snake around corners, you’re at a greater risk of a clog.

Call in a pro: If you want peace of mind that all your vents are squeaky clean, call in a professional. You’ll spend anywhere from $90 to $180.  Look for a dryer technician specially trained by the Chimney Safety Institute of America.

2. Seal your outdoor surfaces

Cold temperatures and snow can cause your paint to peel, leading to moisture intrusion and wood rot, says Brian Osterried, a product manager at paint company PPG. Protect your exterior surfaces by applying a stain and sealant.

DIY:  Clean the surface first—taking care to remove any built-up ickiness between planks or in crevices—using a screwdriver or putty knife. Wait at least 48 hours before sanding the surface using 80-grit sandpaper, then sweep or vacuum, and apply your sealant.

Call in a pro: The cost of professional sealant jobs vary depending on size and the surface to be sealed, but for an average deck, expect to spend around $800.

3. Store your yard furniture

The fastest way to make your outdoor furniture look faded is to leave it out in the elements. Store your grill, deck chairs, and outdoor set in a shed or garage.

Shortcut: If you don’t have the storage space, invest in durable covers for your furniture to protect it from snow and rain.

Call in a pro: We suppose you could hire a personal assistant for this task (who are you, the Queen of England?!), but this one really just requires a little lifting and five minutes of your time. You’ve got this!

4. Stow that hose

If you live where it snows (yes, it’s time for that word again—sigh), it’s a good idea to drain and store your garden hose before temps start significantly dropping.

“Hoses with water in them will freeze and burst,” says Lisa Turner, author of “House Keys: Tips and Tricks from a Female Home Inspector.”

DIY: Here’s a clever hack: Unroll your hose on a downslope and then recoil it upslope so the water drains out, Turner recommends. You can store the hose outside in a shed or underhang if most of the water is removed. But it’s best to stash it inside if possible.

Next, shut off the water supply to your external faucets. Then drain the line by turning the faucet on and letting the residual water drain out.

For extra protection from freezing temps, install a foam insulator cover over each external faucet.

Call in the pros: If you see any faucet damage or leaking that won’t stop, call in a pro ASAP to repair or replace it. Expect to spend anywhere from $150 to $300.

5. Do a ‘fall cleaning’

“Open those windows up wide and do a thorough fall cleaning of your home that includes dusting areas that don’t always make the cut, like ceiling fans and ceiling corners,” says home organization expert Marty Basher.

DIY: Wash your draperies, dust your blinds, remove your window screens, and wash the windows inside and out.

Call in a pro: Depending on where you live, a professional home cleaningcould run you upward of $100. Now is also the time to have your carpets and rugs professionally cleaned to rid them of dust and other allergens (you should do this once a year). For a professional carpet cleaning, expect to spend anywhere between $100 and $250.

6. Feed and seed your lawn

“After a long, hot summer your lawn could probably use a bit of extra TLC, and seeding is proven to be the most effective way to repair damage,” says Bryan Raehl, general manager of Agronomic Lawn Management in Virginia Beach, VA.

Plus, by seeding now—before the first frost of the season—you can allow seeds to begin taking root in the soil and get a jump on spring growth.

DIY: Choose a seed for your lawn that’s right for your budget and your geographic region. You can complete a soil test, which will allow you to measure your soil’s health and nutrients, using a DIY kit. You’ll then have to prepare your lawn, lay the seeds by hand or using a spreader, and water.

Call in a pro: If you don’t know what you’re doing (or if your thumb isn’t the greenest), call in a professional landscaper, who will charge between $250 and $1,300.

7. Inspect your gutters and downspouts

Maintaining gutters and downspouts, which direct water away from your home, can go a long way toward preventing catastrophic roof leaks—especially if you live in an older home. This is particularly important during autumn, since it’s prime time for those gutters to get clogged with fallen leaves and twigs.

DIY: If you’re comfortable shimmying onto the roof, grab a ladder and have at it. Clear leaves, dirt, and pine needles from gutters, and examine downspouts for damage or loose pieces. Use a hose to flush out small bits of debris, and check the underside of the gutter to ensure no water leaks through. Inspect the downspout to verify that water is running freely through it and away from your home. Then inspect the flashing around your chimney and any openings in the roof (like skylights) for leaks.

Call in a pro: If you’re afraid of heights (guilty!), call in a pro for a thorough inspection. Expect to shell out around $150.

 

Posted by Holly Amaya on realtor.com

More Americans Say Now is a Good Time to Sell!

Recently released data from Fannie Mae’s National Housing Survey revealed that rising home prices were the catalyst behind an eight-point jump in the net percentage of respondents who say now is a good time to sell. The index is now 21 points higher than it was this time last year.

Overall, 62% of Americans surveyed said that now is a good time to sell (up from 58%), while 26% of respondents said that now is not a good time to sell (down from 30%). The net score is the difference between the two percentages, or 36%.

According to CoreLogic, home prices are now up 6.7% over last year and 78.8% of homeowners with a mortgage in the US now have significant equity (defined as 20% or more).

As home prices have increased, more and more homeowners have realized that now is a good time to sell their homes in order to take advantage of the extra equity they now have.

At the same time, however, rising prices have had the exact opposite impact on the good-time-to-buy scale as many buyers are nervous that they will not be able to afford a home; the net score dropped 5 points to 18%.

Doug Duncan, Vice President & Chief Economist at Fannie Mae, had this to say,

“In the early stages of the economic expansion, home selling sentiment trailed home buying sentiment by a significant margin. The reverse is true today.

The net good time to sell share is now double the net good time to buy share, with record high percentages of consumers citing home prices as the primary reason for both perceptions. Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.”

Buyer demand continues to outpace the supply of homes for sale, which has driven prices up across the country. Until the supply starts to better match demand, there will be a gap between the sentiments surrounding buying and selling.

Bottom Line

If you are considering listing your home for sale this year, now is the time!

Posted by The KCM Crew

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