Feeds:
Posts
Comments

Archive for the ‘Uncategorized’ Category

You read that right! First-time buyers across the country are getting creative when it comes to saving the necessary down payment to buy a home. (more…)

Read Full Post »

What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?

What we do know is that there have been many price reductions with some 14% of (more…)

Read Full Post »

Competition is Coming

Click here to find your current home value.

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to (more…)

Read Full Post »

Dream Home 8 14 2018

The definition of one’s dream home changes between life stages and generations.  In a recent survey, 64% of Americans say they’ll be able to own or rent their dream home within their lifetime. Here’s what they say makes up the “American Dream Home.”

With the average dream home price being $1,300,000 and an average size of 2,195 square feet.

What is your dream home?

 

Posted by John Paul Ledesma, GRI | DRE 01810644 | HomeSmart Evergreen Realty

 

 

 

Read Full Post »

Back in 2005, Federal Reserve Chairman Alan Greenspan described the dramatic increases in residential real estate values as a “froth in housing markets.” Greenspan went on to say:  (more…)

Read Full Post »

money-2724245_1280 with house on Pixabay with text 2

Proposition 5 will be on the November 6, 2018 statewide ballot and could provide you property tax relief if you are a qualified California homeowner. (more…)

Read Full Post »

According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time homebuyers purchased their homes with down payments below 6% in 2017.

Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying, but in March, 71% of first-time buyers and 54% of all buyers put less than 20% down. (more…)

Read Full Post »

We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer “house-buying power” is at “near-historic levels.”

Their index is based on three components:

  1. Median Household Income
  2. Mortgage Interest Rates
  3. Home Prices

The report explains:

“Changing incomes and interest rates either increase or decrease consumer house-buying power or affordability. When incomes rise and/or mortgage rates fall, consumer house-buying power increases.”

Combining these three crucial pieces of the home purchasing process, First American created an index delineating the actual home-buying power that consumers have had dating back to 1991.

Here is a graph comparing First American’s consumer house-buying power (blue area) to the actual median home price that year from the National Association of Realtors(yellow line).

House-Buying Power at Near-Historic Levels | MyKCM

Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last decade.

Bottom Line

Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. As Chief Economist Mark Fleming explains in the report:

“Though unadjusted house prices have risen to record highs, consumer house-buying power stands at near-historic levels, as well, signaling that real house prices are not even close to their historical peak.”

John Paul Ledesma, GRI | DRE 01810644 | HomeSmart Evergreen Realty

Read Full Post »

In a CNBC article, self-made millionaire David Bach explained that: The biggest mistake millennials are making is not buying their first home.” He goes on to

(more…)

Read Full Post »

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

 

Re-posted by John Paul Ledesma | DRE 01810644 | HomeSmart Evergreen Realty

Read Full Post »

Older Posts »

%d bloggers like this: