Don’t Wait to Sell Your House! Buyers Are Out Now

Recently released data from the National Association of Realtors (NAR) suggests that now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.

Let’s see how this applies to the current residential real estate market.

SUPPLY

It is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.

Supply is currently very low!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report(which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”

Demand is currently very high!

Bottom Line

Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, let’s get together to discuss the conditions in our market.

 

Posted by The KCM Crew

Ready to sell? Visit our website to get started!

Advertisements

This Just In: Data Says May is the Best Month to Sell Your Home

According to a newly released study by ATTOM Data Solutions, selling your home in the month of May will net you an average of 5.9% above estimated market value for your home.

For the study, ATTOM performed an “analysis of 14.7 million home sales from 2011 to 2017” and found the average seller premium achieved for each month of the year. Below is a breakdown by month:

ATTOM even went a step further and broke their results down by day.

Top 5 Days to Sell:

  • June 28th – 9.1% above market
  • February 15th – 9.0% above market
  • May 31st – 8.3% above market
  • May 29th – 8.2% above market
  • June 21st – 8.1% above market

It should come as no surprise that May and June dominate as the top months to sell and that 4 of the top 5 days to sell fall in those two months. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season, when competition is fierce to find a dream home, which often leads to bidding wars.

One caveat to mention though, is that when broken down by metroATTOM noticed that while warmer climates share in the overall trend, it turns out that they have different top months for sales. The best month to get the highest price in Miami, FL, for instance, was January, and Phoenix, AZ came in with November leading the charge.

If you’re thinking of selling your home this year, the time to list is NOW! According to the National Association of Realtors, homes sold in an average of just 30 days last month! If you list now, you’ll have a really good chance to sell in May or June, setting yourself up for getting the best price!

Bottom Line

Let’s get together to discuss the market conditions in our area and get you the most exposure to the buyers who are ready and willing to buy!

 

Posted by The KCM Crew

Ready to sell? Visit our website today to get started!

Cheap House Improvements Under $500 That Will Increase the Value

Whether you intend to sell your home in the near future or stay put for the long haul, house improvements can increase the value of your property. But if you shudder at the thought of wasting your time on labor-intensive projects that may or may not add equity, you’re not alone.

Luckily, you don’t have to spend your entire savings—and every weekend from here to eternity—to keep your house up to date. We found a slew of smart projects that are relatively simple, will cost you no more than $500, and will be catnip to future buyers—or just make your everyday life a bit brighter.

iStock

Before you begin your house improvements…

We’ll offer this pre-project tip that will make your life a lot easier: declutter.

“A common problem I see when I initially start working with a client is too much stuff that is not being used,” says Tracie Stoll, a DIYer, designer, and decorator who blogs at CleverlyInspired.com. “Declutter first—and in many cases, you can sell those extra items to make money to tackle home improvement projects.”

Now let’s get to the projects!

Make a splash in the bathroom

The bathroom is one of the most visited rooms in your home, and just a few changes can make it one of the most functional and stylish rooms as well. Simple touch-ups like regrouting and recaulking can instantly make the room look cleaner and newer.

Also, swapping out inefficient toilets, faucets, and shower heads for products that aid in water conservation can make a big difference. A low-flush toilet uses 20% less water than a standard toilet, and water-saving shower heads can help families save almost 3,000 gallons of water a year.

“Touchless water faucets are all the rage right now, especially if you have kids,” says remodeler and licensed contractor Mark Clement of MyFixItUpLife. “Touchless faucets are clean and easy, and there are literally thousands of fixture choices, including stainless steel, brushed nickel, chrome, and bronze.”

Just be sure to keep your fixture finishes consistent throughout the bathroom.

Create style underfoot

While updating your flooring is typically seen as an expensive project, it doesn’t have to be.

“If the carpet has seen better days, pull it up to see what is underneath,” says Stoll. “If it is concrete, that surface can be cleaned up and painted. Throw an inexpensive area rug down, and the room will be updated immediately.”

Tiling is another budget-friendly flooring update for your kitchen or bathroom.

“Porcelain and stone are very inexpensive,” says Alan Zielinski, owner and president of Better Kitchens in Niles, IL, who adds that linoleum floors are also very cost-effective, and come in several styles.

“[Porcelain] tiles are very strong, and they can mimic the look of stone and wood,” says Judy Mozen, designer and president of Homecrafted Homes in Atlanta.

Beware: Tearing out an existing floor can add significant labor costs, so if it’s at all possible, lay the new flooring on top of the existing one.

Customize your cabinets

Another inexpensive bathroom and kitchen update to tackle? Fix those cabinets. If they’re in good shape, you can simply clean, sand, and paint them.

“This is also an opportunity to provide a pop of color in the bathroom,” says Clement.

So, what color should you paint them?

“White is a popular color because it is clean, and it looks good with any style,” says Mozen. Black is another popular cabinet color.

Mozen advises homeowners to weigh the condition of the cabinet’s interior area. “If there’s water damage, it’s not worth it to repaint them—that’s like polishing an old shoe,” she says.

Both Clement and Mozen say that sometimes it may be just as cost-effective to purchase new stock cabinets from a big-box store such as Lowe’s or Home Depot.

You can also update your cabinets by simply replacing the hardware. New knobs, handles, and pulls in the kitchen and bathroom will make a huge difference.

Add architectural details

You can use wainscoting, shiplap, and crown molding to add craftsmanship to your home.

“I love wainscoting,” says Clement. “It takes a two-dimensional drywall surface and immediately makes it feel homey. And there are a lot of wainscoting choices ranging from wood to PVC.”

However, Clement warns against using trims made from medium-density fiberboard in a room with a lot of moisture, because this material cannot withstand water and will mold.

“Adding crown moldings to the ceiling of various rooms or adding shoe moldings to the floor is a great way to dress rooms up without major additions,” says Allen Shayanfekr, CEO and co-founder of Sharestates, a real estate investment company that focuses on fix-and-flip properties. “Working with a trim carpenter to have these added can do a lot aesthetically for the appearance of rooms and the overall value of a home.”

Light it up

Lighting is another way to update your home without spending a fortune.

“Adding inexpensive new lighting fixtures in areas with a lot of visibility in the house can have a large impact on a home’s value,” says Shayanfekr. “Adding a few sconces and possibly an inexpensive chandelier—something around the $300 price point—can make a huge difference in a hallway, living room, or kitchen,” he says.

Create the perfect palette

Perhaps the easiest way to transform a room is with paint.

“I would say paint is the No. 1 room changer with very little expense,” Stoll says. “And don’t forget the trim; that is the icing on the cake.”

The beauty of paint is that you can use it to update practically anything. You can paint the interior or the exterior of the home. You can paint the walls, the cabinets, and other furniture.

Stoll even recommends spray-painting your lamps and then buying new lampshades. On the outside, you can paint the front door and paint or stain your deck or wood fence. You can paint your outdoor furniture and, depending on the material, you can even paint your garage doors.

 

Posted by Terri Williams on realtor.com

99% of Experts Agree: Home Prices Will Increase

Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on residential real estate prices in 2018. However, the clear majority of recently surveyedhousing experts believe that home values will continue to rise this year.

What is the Home Price Expectation Survey?

Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment & market strategists. Those surveyed include experts such as:

  • Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP
  • Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics
  • David Downs, Real Estate Finance Professor at VCU
  • Edward Pinto, Resident Fellow at American Enterprise Institute
  • Albert Saiz, Director at MIT Center for Real Estate

Where do these experts see home values headed in 2018?

Here is a breakdown of where they see home values twelve months from now:

  • 21.6% believe prices will appreciate by 6% or more
  • 71.6% believe prices will appreciate between 3 and 5.99%
  • 5.7% believe prices will appreciate between 0 and 2.99%
  • Only 1.1% believe prices will depreciate

Bottom Line

Almost ninety-nine percent of the top experts studying residential real estate believe that prices will appreciate this year, and over 93% believe home values will appreciate by at least 3%.

 

Posted by The KCM Crew

How to Set a Home Renovation Budget

Before you start picking out tile and paint chips, be sure you know how much it will cost to remodel your house.

Ready for a kitchen renovation? Anxious for a bathroom remodel? The easy part is knowing your goal for home remodeling — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value.

But figuring out how to plan a home renovation that doesn’t break the bank can be tricky.

Here are five key steps in planning your home remodeling project.

1. Estimate home renovation costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.)

For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on kitchen renovation costs. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less.

A kitchen remodel should cost no more than 10 to 15 percent of your home’s value. Photo from Offset.

Something else to keep in mind: Contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a kitchen remodel increases the value of your home by 50 cents.

The highest return on investment? A mid-range bathroom remodel.

2. Consider home remodeling loan options

If you plan on borrowing money to fund your home renovations, there are a number of loans out there to help with just that.

  • Refinancing. Depending on your current interest rate, you might be able to refinance your mortgage at a lower rate and/or for a longer loan term, which could lower your monthly payments and help you save up for your renovations.
  • Cash-out refinance. If you have enough equity, you could also consider a cash-out refinance, which means refinancing your existing loan for an amount that’s higher than what you owe. Going this route, you pay off your original mortgage and have cash left over. Use a refinance calculator to see if refinancing makes sense for you.
  • HELOC. If refinancing sounds like too big of a leap, a home equity line of credit (HELOC) might work better. A HELOC works a lot like a credit card in the sense that it has a set limit that you can borrow against.
  • Home equity loan. Although it sounds similar to a HELOC, a home equity loan is a bit different. This loan requires you to take out all the cash at one time. They’re often referred to as “second mortgages” because homeowners get them in addition to their first mortgage.

Refinancing, getting a HELOC or taking out a home equity loan are all big decisions, and it can be tough to know which one makes the most sense for you. As with any new loan, consult with a lender to see which option is best for your situation.

3. Get home renovation quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used.

Make sure that contractors’ estimates include the full scope of your project. Photo from Shutterstock.

Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

4. Stick to the home remodeling plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Even minor changes to your remodeling project’s scope can add significant costs. Photo from Offset.

5. Account for hidden home renovation costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated.

Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly.

 

Posted by Vera Gibbons on Zillow

 

4 Reasons Spring is a Great Time to Buy a Home!

Here are four great reasons to consider buying a home today instead of waiting.

Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.3% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage hovered close to 4.0% in 2017. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

 

Posted by The KCM Crew

Are you ready to buy? Click HERE to start searching for your next home!

4 Rock-Solid Reasons to Remodel Your Home in 2018

iStock; realtor.com

As 2018 dawns, there’s no question the real estate market is, well, a little crazy. Home values are surging, money is relatively cheap, and inventory is tighter than tight.

That’s all downright welcome news for owners who’ve been considering remodeling.

“Remodeling remains a very attractive option to increase your home’s value,” says Javier Vivas, director of economic research for realtor.com®. And that can be a smart move whether you’re prepping your place for sale, or giving it a refresh for the long haul.

“The big variable here is location,” says Vivas. “If you’re happy with your neighborhood and your place has some value, there’s an advantage over trying to move—because there may not be somewhere else for you to move to in your price range, or you may have to make a bigger cost jump than you would if you were simply remodeling.”

Still wondering whether to grab a sledgehammer and get swinging? Here’s the thing: The longer you wait, the more expensive renovating or remodeling gets. If you’ve been on the fence, this may be the year to get off it. Better yet, rebuild it! Here’s why you should get moving now.

1. You (likely) have more cash

Consumer confidence is high, unemployment is low, and incomes are growing—which means you likely have more money in your pocket. Plus, if you’re a homeowner, chances are good that your home equity has increased along with skyrocketing home prices over the past few years.

So when it comes to spending cash on all those get-to-it-later home projects, you’re probably in good standing.

In fact, the remodeling market is expected to grow 7% this year, saysRobert Dietz, chief economist with the National Association of Home Builders.

“This market should be sustained by the fact that homeowners are remaining in their homes longer,” Dietz says.

2. Interest rates for building loans are low

Interest rates for home equity lines of credit—which offer a flexible way of obtaining funds to pay for things such as home improvements—are still historically low. And even though interest paid on HELOCs is no longer deductible under the new tax reform legislation, experts say the building loans remain a good deal.

“Interest rates are still quite friendly but will likely go up this year—and lenders are competing for loan business,” says Tom Miller, president of the National Association of the Remodeling Industry, who also owns a remodeling company in the Pacific Northwest.

Simply put: Take advantage of those low rates now before more increases hit.

3. It could be cheaper than buying a new home

If you live in a high-cost metro area and already have a foothold in the real estate market, remodeling your existing place could be cheaper than buying a new one. Maybe a lot cheaper (unless, of course, you were planning on downsizing).

There are a lot of factors to consider, however: How much equity you have in your place, what your current mortgage rate is, and whether major renovations are even feasible. But experts agree that, in many cases, the current seller’s market makes renovating a more palatable option than buying.

“We think remodeling will be a major trend in 2018, because we’ve seen prices grow so much that a lot of potential buyers are being priced out of their own markets,” Vivas says. “And that’s where you see a turn toward giving up on trading up and buying again and considering other options like renovating.”

This is especially true in expensive markets such as New York and California. Plus, these high-cost areas are expected to feel the heaviest burden of the tax reform provisions that limit mortgage interest deductions and eliminate the deduction for state and local property taxes.

“Some of the tax benefits linked with purchasing will be sidelined or diluted,” Dietz says.

4. Costs will go up the longer you wait

The construction industry is facing a major shortage of skilled laborers and rising materials costs, and there’s little indication this trend will reverse anytime in the future. This higher demand translates into higher pay scales for available, qualified workers—and those costs ultimately get passed along to you, the consumer. The situation is expected to get worse over time.

“Labor costs will continue to escalate as remodelers pay up to get and keep construction trades on the jobs,” says Fred Ulreich, chief executive officer of the NARI.

Furthermore, the multibillion-dollar cleanups of Hurricanes Harvey and Irma drove materials prices even higher—and the effects are expected to last into 2018. The NARI predicts materials costs will rise about 5% this year, especially for supplies such as lumber, drywall, and concrete.

What’s more? Labor shortages will not be resolved overnight, Miller says. For the would-be remodeler, that means your costs will likely go up the longer you wait.

“There are no signs that remodeling demand or costs will taper off over the next several years, but will continue to rise,” Miller says. “Holding off on a project—if you can find a reputable remodeler available now— will only cost you more next year.”

 

Posted by Holly Amaya on realtor.com