10 Reasons to List Your Home During the Holiday Months

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Traditional school of thought dictates that selling a home during the holidays is a bad idea.  People are busy celebrating with their families and will hardly go shopping for a home, right?  Not so!  There are numerous advantages to listing a home during this season and below are ten great reasons to put a home on the market now. 

More serious buyers – Less time wasted

These are people who are interested in buying so there is a far greater chance of actually selling the property.  Nothing is more promising to a seller than a motivated and qualified buyer that knows what they want and is actively seeking to get it.

Fewer Homes On the Market

The less competition there is, the higher the chance there is for homes on the market to sell. Where during the peak season sellers might be dealing with some interest from buyers on their home, nonetheless there is more selection for buyers to choose from and they can stray to another property.

In January Inventory Increases – Chances of Selling Decreases

With so many homeowners assuming the holidays is a taboo time to sell there is a plethora of new listings in January, resulting in a diminished chance of your home selling.  Also, there is a risk that the price you may receive on the home can be less.

Decked Halls Look Great!

Homes are very appealing to prospective buyers when they are decorated for the holidays.  With all the festive décor, lights, greenery and added beauty of the season – the home shows very well and attracts buyers faster than if shown during other times of the year.

More Time To Browse Homes

Buyers have extra time off from work and are on vacation, which translates to a more aggressive buying pattern and more chances of your home being viewed.

Tax Advantages That Benefit the Buyer

Some buyers need to buy a property before the year ends so that they are able to claim a particular credit or exemption on their tax return.  The biggest tax benefit is filing for homestead. This requirement means that they are going to seek out a home and definitely purchase it prior to the New Year. 

Show The Home With Flexibility

Sellers that have their home listed prior to the holidays have the added advantage to be able to “pause” the process so they can celebrate the holidays, essentially not showing the home during a period of time during the break.  When the festivities die down, things can pick up again and the seller has not only managed to save potentially lost time but can also jump right back into the market.

Sell Now For More Money Then Delay Closing

Extended occupancy can be negotiated, leaving both parties the leniency to get through the holiday season and past the New Year so that all sides can rest assured the deal is done but it can follow through at a more convenient time.  For sellers this option is great because they are able to secure a higher selling price on the property before the market is inundated with new listings come January when the selling values drop.

Enjoy Non-Contingent Buyer Freedom

With the home sold, sellers can enjoy non-contingent buyer status during the rest of the slow season and take advantage of the market when there is a flood of new listings upon the New Year. 

Fewer Foreclosures On the Market

Many banks will suspend foreclosure listing during this time of year, especially on properties where there are still families occupying the home.  As a result of this, some of the competition that arises for sellers from low-priced foreclosures can be avoided during the holidays.
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Keep in mind that the idea of your home’s value increasing significantly over the next several months is a myth.  The truth is that housing values likely only go up when consumer income rises.  Pay rates increase at a rate of three to five percent each year and that is about the maximum yearly increase we can expect to see in a home as well.  So if you are wondering whether or not to put your home on the selling market now, or to wait – one important factor is that waiting will not provide much benefit.

Winterizing Tips to Save You Time and Money

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Our homes always need a bit of extra protection and thought before the cold winter months take hold. Have you made plans for the things that you need to do in your own home before it gets too cold this winter?

If you are planning to take any trips or be away from your home for a few days, it is even more important to be sure that you are taking those extra precautions to save yourself a lot of heartache in the event that something happens in your home.

First, make sure that you have closed the vents under your house. That is always a great thing to do to make sure that you are keeping things warmer in the winter. Of course, make sure to open them up again when the warmer months start to approach.

A lot of people are under the impression that they should turn their thermostat way down when they leave. However, turning it too low can actually be detrimental to your tile, grout and drywall. Instead, try to keep it around the 55 degree level to make sure those things stay safe.

Another thing you should do each winter is have your furnace serviced. Nothing is worse than getting into the cold winter months only to learn that your furnace is not working properly.

If you are planning to leave your home, even for just a few days, you need to shut off the water to the home. It is very easy to do using the main shutoff valve. Freezing pipes while you are gone out of town can mean big problems and expenses when you return.

Finally, make sure to shovel your deck. We saw so many more deck repairs needed this year because people did not shovel their decks last year. It gets very cold and icy, especially on higher decks, so make sure to do this or hire someone to do it for you. If you need a referral, we know lots of people who do this kind of work.

Have a great winter, and please call on us if you have any real estate related question!

7 Reasons Why This is the Best Real Estate Market

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For months, years now most agents have been calling out loud and clear to all buyers saying that it has been a good market. In fact, we have been able to witness a lot of changes during the past several years – with ups and downs in home prices, interest rates, average DOM and inventory levels. Well, today the marketplace has begun an unprecedented shift for the better, amounting to it being a fantastic real estate environment for nearly everyone.

Here are eight reasons why we are currently in the best real estate market that we have seen in a long time and why you should consider getting involved:

1. Lowest interest rates in the history of our market. Right now, at the end of June 2012, we are seeing a typical interest rate of about 3.65% on a 30 year, fixed rate mortgage. Shorter terms can be even lower for qualified buyers.

2. Banks are eager to lend money. The stall we saw a couple years ago where banks were too cautious has now eased up, allowing most well qualified buyers the ease of a smooth financing process.

3. Very low home prices. This has been the case for a while now and it has helped buyers get great deals. But as buyers realize these interest rates may not stay low forever, the low prices work to help sellers too. Also when sellers do sell their properties they will oftentimes need to move elsewhere, making it a dollar for dollar trade up with the result of less taxes and lower borrowing costs. 

4.  Very low inventory. For the first time in a long time we are seeing inventory levels so low that it is encourage multiple offers and even bidding wars in some situations. Less competition is great for sellers and smoother transactions for buyers make everyone happy. Currently we are looking at a huge decline in active listings across the board. 

5. Appraisers are being reasonable. Appraisers often hold the key to whether buyer and sellers can engage in a successful deal, especially since financing often depends on an accurate and acceptable appraisal. We are seeing more and more appraisers exercising less scrutiny in their process and working with agents plus lenders throughout their appraisal procedure.

6. The Presidential Election likely to strengthen the economy. One typical effect of a presidential election is the positive impact it has on the economy. This will of course generate further consumer confidence and of course increased real estate activity.

7.Rental rates are higher than ever before. Rents are probably as high as they have ever been, providing investors and secondary property purchases plenty of opportunity to embark on low cost purchases of property that will carry through rental income.

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If you would have been on the fence about whether to buy or sell lately, trust me – this is a phenomenal time to get into the real estate arena. Contact us today so one of our team specialists can assist and guide you to making your real estate dreams become a reality!

Four Key Strategies to Sell Your Home for Top Dollar

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Wouldn’t you love to sell your home in the least amount of time possible and get top dollar in the process? As we work with our clients, our number one goal (aside from ensuring they are completely satisfied) is to get them the most out of their transaction. For sellers, this means getting the most money for their property, in the least amount of time and without any hiccups in the process.

To achieve that, we employ four key strategies, which I’ve shared with you here that go hand in hand with our commitment to our clients.

Make Your Property Stand Out From the Crowd

Giving buyers the perception of value is very important component of the selling process and the condition of the property is critical. Go through the property, check every aspect and make sure everything is in tip-top shape. If possible, have a home inspection performed to get an idea of any areas needing attention.  Make sure that all necessary repairs are taken care of so that the buyer does not feel anything remains unresolved. Keep in mind, little things should also be resolved such as fixing weather stripping that might have worn down, or patching up holes from previously hung wall art or even just cleaning up an overcrowded garage.

Achieve Maximum Exposure of Your Home in the Market

Make sure you hire an agent that is prepared to invest heavily to make sure your property stands out in the crowd. With as many as three times the number of homes on the market as there are buyers right now, it is essential that your property is outwardly visible and stands apart from the rest. Differentiating your property will make or break your sale and even cause a perfectly viable sale never to go through if your property goes unnoticed by the perfect buyer.

Engage In a Realistic Pricing Strategy That Works

Too many homeowners make the mistake of pricing their home incorrectly. You want to price your home to market but it also must go hand in hand with buyer behavior and market trends. The number one goal when selling a home is to get the home sold and unless there is buyer interest and showings taking place, the chance for a solid sale is slim to none. Be prepared to adjust the price regularly – and review it monthly to decide whether you need to change something.

Make Sure You Are Backed By a Solid Team of Professionals

The best advice I have to offer you is to make sure you hire a strong team or a solid real estate professional that is dedicated to serving your needs. That may sound trite but the truth is that until and unless you have professionals backing your real estate dealings, you stand to go through just another run-of-the-mill transaction with mediocre outcomes. It goes without saying that the desired result is to get top dollar on the sale of your home – and it needs to be achieved effectively, without wasting a single extra minute of your time.

We are here to do that for you. Contact us today!

A Look at Year-To-Date Real Estate Numbers from 2012 Vs. 2011

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We have been watching the real estate market closely for the past several years and this year things have really changed for the better – particularly in the area of sales. Here are some market statistics to demonstrate the state of our market.

Total Number of Sales

In 2012 we sold 10,165 properties whereas in 2011 the number was merely 8,740.
Lake, Geauga and Cuyahoga counties saw a very significant 14% increase, year over year looking at year-to-date statistics.

Days On Market Average

The average number of days our properties are on the market has remained relatively unchanged with 2011’s DOM at 157 versus this year’s average at 163 days.

Median Sales Price

Sales price has also not changed in 2012 from 2011’s average – with both years at about $133,000. One thing interesting to note, however, is that there has been a significant jump in the number of upper-end properties beginning at the $1M price range. In 2012 we saw a total of 25 homes sold versus just 19 one year prior in the same time frame. This represents a 24% increase year over year.

Looking at the $100,000 - $250,000 price range we experienced a 17% increase in the number of homes sold in 2012 as compared to the previous year. In 2011, the total year to date number of homes sold through the summer were 2,896. In 2012 we have had 3,241 sold homes reported so far.

The mid-range upper level price bracket also saw an increase in sales with more homes selling through this year versus the same time frame in 2011. Eight percent more homes between $500,000 and $1M sold in 2012. We saw an increase of 12% in the number of homes sold in the $250,000 - $500,000 price range.
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I’ve been saying this for some time now and it seems we will continue to see record setting low interest rates for a while longer. Right now, qualified buyers can get a 30-year fixed rate loan as low as in the mid-3% range, with refinances even lower. Bump it down to a 15-year fixed rate and you can really lower your interest rate.

Our current market conditions make it an idea time for buyers with low interest rates and increased buying power – while sellers are also enjoying increased demand, allowing them to receive multiple offers and achieve high list-to-sale ratios.

If you would like to meet and discuss your real estate needs, contact me today at 440-974-0404 – I’d be happy to help!

Three Tips to Sell Your Home

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Yes, you can list your home with a “For Sale” sign, an open house and a few fliers handed out here and there – but do you really think that in today’s “here and how” digital age that would be enough? Of course not! In fact, I have it on good record that homeowners that hire agents subscribing primarily to older methods simply do not enjoy the same level of success that others do. So before you list your home for sale and as you decide on an agent to hire to help you sell your home and get you top dollar, consider these three essential aspects to the equation.

Your Property’s Value

Before deciding on a price, it is a good idea to know and understand the present value of your home. There are a few viable methods of determining this but the most convenient and frankly the easiest way is to request a Comparative Market Analysis from a professional. Real estate professionals are well versed in helping consumers find the values of their home and they do so by studying and compiling data from recently sold like-kind homes in your area. In addition, they evaluate current listings in the same class as your property and then assemble a report.

A Solid Marketing Plan

Just like there are two types of agents, there are two types of marketing strategies: reactive and proactive. In today’s extremely fast-paced world, it is critical that you choose an agent with an aggressive marketing plan. Not only is that a factor but also it is equally as important how they choose to put forth your property on the market. Ask whether they utilize the Internet to gain exposure for your home? Are virtual tours and other marketing tools used? Are they advising you with unique methods of marketing your property – methods that stand out from the competition?

Preparation and Staging

So many homeowners underestimate the value of preparation prior to placing their homes on the market. Though your home may very well be ready for showings and you may feel it is already staged to perfection, be prepared to need additional spruce ups in order to properly present your home on the market. Professional stagers will often advise on ways to make a home feel less personal, or more spacious, less dated or whatever else may be the desired look and feel in your community. It is critical to spend some time and energy on this aspect of listing your home as it can make or break your success in selling the property.

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If you would like to get more information on the value of your home, request a customized market data report, have your home be evaluated or anything else real estate related, please contact us today! We would love to hear from you and welcome the opportunity to serve you!

How to Evaluate an Offer On Your Home

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For most homeowners selling their home the thought of negotiating an incoming offer is a matter of settling in on a price that both sides can agree upon.  But did you know that there is another key aspect of negotiations aside from price that could have even greater impact on the sale?  The terms of your contract hold equal weight and importance as price in the sale of your home and are critical to a successful sale.

Here are five essential things to consider when navigating through the negotiation process after an offer comes in on your home.

Preapproval

After the housing market crashed in 2007 lenders, buyers and sellers have proceeded very cautiously. Lenders are staunchly following stringent requirements, buyers and sellers are savvier than ever before and what seemed like formalities in the process before are now becoming necessities.  Preapprovals are one of the things that did not always need to be done in advance of buyers finding a home. But as you receive your offer on your property, be sure that your buyer has apreapproval from a reputable lender.  The letter should indicate what the buyer can afford and how much the lender is willing to loan them, assuming they meet all requirements at the time of application.

Down Payment

One of the requirements lenders have today is to have an appraisal done on the home to equate its value with the selling price.  Unless the buyer has a significant down payment available, a less than ideal appraisal can stand to affect the sale altogether, even causing the deal to break down. Check to see how much your buyer is able to put down on the house and add up the down payment with the loan amount to see if they equal your asking price.

Existing Home

Does the buyer have an existing home they need to sell?  This can be a problem for you as a seller if they want to include a contingency in the contract that absolves them from the commitment of buying your home if their home does not sell.  This can wreak havoc on the sale of your property, as it would require you to leave the terms of your sale up to the success of another sale.  It would be best to avoid offers that include existing home contingencies.

Closing Date

When does the buyer want to close on the home?  If the requested closing date extends beyond 90 to 120 days then it might be time to reconsider the offer.  Lenders have timing guidelines that dictate a 45-day policy, within which buyers must apply for a loan before closing. Anything longer than that would get in the way of the lenders’ policy leaving the seller hanging in limbo during those off weeks.  When a buyer cannot meet the contractual obligation to get a commitment within 45 days, it might be a good idea to forego the offer altogether rather than to risk the sale.

Cash Transaction

Some buyers offer cash rather than opt for financing and though it is an attractive offer at first, you need to make sure that the buyer has the cash.  Asking your Realtor to verify the availability of those funds will become a necessary additional step before you can move on in the offer.  In some cases, buyers opt for alternative financing and when the time comes to verify the funds they are unable to do so.  The risk is too great so unless you can be sure the cash is there, it is a better idea to move on to the next offer.

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Navigating through offers is a tricky process – especially in today’s market. It is no longer just a matter of coming to agreement on a sale price, rather both parties must agree to all aspects of the terms.  For customized guidance on your real estate endeavors, contact us today!