THINGSTOCONSIDERWHEN

SELLINGYOURHOUSE

SUMMER2019

EDITION

THEHOUSINGMARKETFORECAST

WhatDoestheFutureHoldForHomePrices?

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DispellingtheMythAboutHomeAffordability

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EmptyNesters:BesttoRemodelorTimetoSell?

WHAT'SHAPPENINGINTHEHOUSINGMARKET?

WHATTOEXPECTWHENSELLINGYOURHOUSE

5ReasonstoSellThisSummer3

TheRoleAccessPlaysinGettingYourHouseSold!

PICKTHEPERFECTPARTNER

5ReasonstoHireaRealEstateProfessional

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WhyYouShouldn’tForSaleByOwner

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IsYourHousePricedtoSellImmediately(PTSI)?

HowaLackofListingsImpactstheMarket

TheKonMariMethod:HelpingYouPrepareYourHouseForSale

IstheRecentDipinInterestRatesHeretoStay?

2FactorstoWatchinToday'sRealEstateMarket

HomeBuyerDemandWillBeStrongForYearstoCome

TABLEOFCONTENTS

Belowarefivecompellingreasonslistingyourhomeforsalethissummermakessense.

1.  DemandIsStrong

ThelatestBuyerTrafficReportfromtheNationalAssociationofRealtors(NAR)showsthatbuyerdemandremainsstrongthroughoutthevastmajorityofthecountry.Thesebuyersareready,willingandabletopurchase…andareinthemarketrightnow!Moreoftenthannot,inmanyareasofthecountry,multiplebuyersarecompetingwitheachothertobuythesamehome.

Takeadvantageofthebuyeractivitycurrentlyinthemarket.

2.  ThereIsLessCompetitionNow

Housinginventoryisstillunderthe6-monthsupplythatisneededforanormalhousingmarket.Thismeansthat,inthemajorityofthecountry,therearenotenoughhomesforsaletosatisfythenumberofbuyersinthemarket.

Historically,ahomeownerwouldstayanaverageofsixyearsinhisorherhome.Since2011,thatnumberhashoveredbetweennineandtenyears.Thereisapent-updesireformanyhomeownerstomoveastheywereunabletoselloverthelastfewyearsduetoanegativeequitysituation.Ashomevaluescontinuetoappreciate,moreandmorehomeownerswillbegiventhefreedomtomove.

Manyhomeownerswerereluctanttolisttheirhomeoverthelastcoupleyears,forfearthattheywouldnotfindahometomoveinto.Thatisallchangingnowasmorehomescometomarketatthehigherend.Thechoicesbuyershavewillcontinuetoincrease.Don’twaituntiladditionalinventorycomestomarketbeforeyoudecidetosell.

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5ReasonstoSellThisSummer

3.  TheProcessWillBeQuicker

Today’scompetitiveenvironmenthasforcedbuyerstodoalltheycantostandoutfromthecrowd,includinggettingpre-approvedfortheirmortgagefinancing.Thismakestheentiresellingprocessmuchfasterandmuchsimplerasbuyersknowexactlywhattheycanaffordbeforehomeshopping.AccordingtoEllieMae’slatestOriginationInsightsReport,thetimeneededtoclosealoanis43days.

4.  ThereWillNeverBeaBetterTimetoMoveUp

Ifyournextmovewillbeintoapremiumorluxuryhome,nowisthetimetomoveup!Theinventoryofhomesforsaleathigherpricerangeshasforcedtheluxurymarketintoabuyer’smarket.Thismeansthatifyouareplanningonsellingastarterortrade-uphome,yourhomewillsellquicklyANDyou’llbeabletofindapremiumhometocallyourown!

AccordingtoCoreLogic,pricesareprojectedtoappreciateby4.8%overthenextyear.Ifyouaremovingtoahigher-pricedhome,itwillwindupcostingyoumoreinrawdollars(bothindownpaymentandmortgagepayment)ifyouwait.

5.   It’sTimetoMoveonWithYourLife

Lookatthereasonyoudecidedtosellinthefirstplaceanddeterminewhetheritisworthwaiting.Ismoneymoreimportantthanbeingwithfamily?Ismoneymoreimportantthanyourhealth?Ismoneymoreimportantthanhavingthefreedomtogoonwithyourlifethewayyouthinkyoushould?

Onlyyouknowtheanswerstothesequestions.Youhavethepowertotakecontrolofthesituationbyputtingyourhomeonthemarket.Perhapsthetimehascomeforyouandyourfamilytomoveonandstartlivingthelifeyoudesire.

Thatiswhatistrulyimportant.

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Thehousingcrisisisfinallyintherear-viewmirrorastherealestatemarketmovesdowntheroadtoacompleterecovery.Homevaluesareupanddistressedsales(foreclosuresandshortsales)havefallentotheirlowestpointinyears.Themarketwillcontinuetostrengthenin2019.

However,thereisonethingthatmaycausetheindustrytotapthebrakes:alackofhousinginventory!Buyerdemandnaturallyincreasesduringthesummermonths,butsupplyhasnotkeptup.

Herearethethoughtsofafewindustryexpertsonthesubject:

LawrenceYun,ChiefEconomistatNationalAssociationofRealtors

“Furtherincreasesininventoryarehighlydesirabletokeephomepricesincheck,thesustainedsteadygainsinhomesalescanoccurwhenhomepriceappreciationgrowsatroughlythesamepaceaswagegrowth.”

JessicaLautz,VicePresidentofNAR

“There’sasupply-demandmismatch…Moreinventoryisneededatthelowerendandapricereductionmaybeneededattheupperend.”

JavierVivas,DirectorEconomicResearchatrealtor.com®

“ThepaceofhomesalesrelativetoinventoryincreasedforthefirsttimesinceMarchoflastyear.Despiterisinghomepricesandconstrictedaffordability,recentdropsinmortgagerateshaveboostedbuyersentimentandenabledsomereaccelerationinthemarket.”

BottomLine

Ifyouarethinkingofselling,nowmaybethetime.Demandforyourhousewillbestrongatatimewhenthereislesscompetition.Thatcouldleadtoaquicksaleforagreatprice.

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HowaLackofListingsImpactstheMarket

Wehaveallseentheheadlinesreportingthatbuyingahomeislessaffordabletodaythanitwasatanyothertimeinthelasttenyears,andthoseheadlinesareaccurate.But,haveyoueverwonderedwhytheheadlinesdon’tsaythelast25years,thelast20years,oreventhelast11years?

Thereasonisbecausehomeswerelessaffordablethantheyaretoday25,20,oreven11yearsago.

Obviously,buyingahomeismoreexpensivenowthanduringthetenyearsimmediatelyfollowingoneoftheworsthousingcrashesinAmericanhistory.

Overthepastdecade,themarketwasfloodedwithdistressedproperties(foreclosuresandshortsales)thatweresellingat10-50%discounts.Thereweresomanydistressedpropertiesthatthepricesofnon-distressedpropertiesinthesameneighborhoodswereloweredandmortgagerateswerekeptlowtohelptheeconomy.

LowPrices+LowMortgageRates=HighAffordability

Priceshavesincerecoveredandmortgagerateshaveincreasedastheeconomyhasgainedstrength.Thishasandwillcontinuetoimpacthousingaffordabilitymovingforward.

However,let’sgiveaffordabilitysomehistoricalcontext.TheNationalAssociationofRealtors(NAR)issuestheirAffordabilityIndexeachmonth.AccordingtoNAR:

“TheMonthlyHousingAffordabilityIndexmeasureswhetherornotatypicalfamilyearnsenoughincometoqualifyforamortgageloanonatypicalhomeatthenationalandregionallevelsbasedonthemostrecentmonthlypriceandincomedata.”

NAR’scurrentindexstandsat152.7.Theindexhadbeenhighereachofthelast11years,peakingat197in2012(thehighertheindexthemoreaffordablehousesare).

But,theaverageindexbetween1990and2007wasjust123,andtherewerenoyearswithanindexabove133.Thatmeansthathomesaremoreaffordabletodaythanatanytimeduringthe18yearsbetween1990and2007.

BottomLine

Homepriceshavestartedtoslowtheirgrowthtomorehistoricnormsasinterestrateshaveheldsteady.Bothareindicatorsthataffordabilitywillremainsteadyorimprove.Buyingahouseisanattainablegoalinmostmarkets,sinceitislessexpensivetobuytodaythanitwasduringthe18-yearstretchimmediatelyprecedingthehousingbubbleandcrash.

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DispellingtheMythAboutHomeAffordability

Yourchildrenhavefinallymovedoutandyouandyourspousenowlivealoneinafour-bedroomcolonial(orasimilartypeofhouse).Youhavetwochoicestomake:

1. Remodelyourhousetofityourcurrentlifestyleandneeds2. Sellyourhouseandpurchasetheperfecthome

Basedontherecordofdollarsspentonremodelingandrenovations,itappearsthatmanyhomeownersaredecidingonnumberone.But,isthatthebestlong-termsolution?

Ifyoucurrentlyliveinathree-tofour-bedroomhome,youprobablyboughtitatatimewhenyourchildrenwerethemajorconsiderationindeterminingfamilyhousingneeds.Alongwithalargehome,youmorethanlikelyalsoconsideredschooldistrict,thesizeofthepropertyandthemakeupofotherfamilieslivingintheneighborhood(example:youwantedablockwithotherkidsyourchildrencouldplaywithandabackyardlargeenoughtoaccommodatethat).

Remodelingyourhometomeetyourcurrentneedsmightmeancombiningtwobedroomstomakeonebeautifulmastersuiteandchanginganotherbedroomintothemassivewalk-inclosetyoualwayswanted.However,ifyouliveinaneighborhoodthathistoricallyattractsyoungfamilies,youmaybedramaticallyunderminingthevalueofyourhousebycuttingdownthenumberofbedroomsandmakingitlessdesirabletothetypicalfamilymovingontoyourblock.

Researchshowsyouwillrecouponly64.4%ofaremodelingproject’sinvestmentdollarsifyousellinthefuture.

Yourhomeisprobablyatitshighestvalueasitstandsrightnow.Insteadofremodelingyourhouse,itmaymakebetterfinancialsensetosellyourcurrenthomeandpurchaseahomethatwasbuiltspecificallytomeetyourcurrentlifestyleanddesires.

Inmanycases,thiswell-designedhomewillgiveyouexactlywhatyouwantinlesssquarefootage(read:lessrealestatetaxes!)thanyourcurrenthome.

BottomLine

Ifyouarelivinginahousethatnolongerfitsyourneeds,atleastconsidercheckingoutotherhomesinyourareathatwouldmeetyourlifestyleneedsbeforetakingonthecostandhassleofremodelingyourcurrenthouse.

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EmptyNesters:BesttoRemodelorTimetoSell?

Therehasbeenalotwrittenaboutmillennialsandtheirpreferencetoliveincitycentersabovetheirfavoritepizzaplace.Somehaveevengonesofarastosaythatmillennialsarea“Renter-Generation.”

Andwhilethismightbetrueforsomemillennials,moreandmoreresearchhassurfacedthatshowsforthevastmajority,owningahomeisamajorpartoftheirAmericanDream!

Researchshowsthat66%ofmillennialswhocurrentlyrentaredeterminedtobuyahome!

Seventy-threepercentofthosesurveyedbyPulsenomicsplantobuyahomeinthenextfiveyears,with40%planningtodosowithinthenexttwoyears!

“Millennialswanttoownahomeasmuchaspriorgenerations,”AliWolf,DirectorofEconomicResearchatMeyersResearchsays.“Wesawmillennialshoppersscoopinguphomesin2018—and2019willbenodifferent.”

BottomLine

Thisgenerationwillcontinuetodrivehousingdemandforyearstocome.

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HomeBuyerDemandWillBeStrongForYearstoCome

Whenitcomestobuyingorsellingahome,therearemanyfactorsyoushouldconsider.Whereyouwanttolive,whyyouwanttobuyorsell,andwhowillhelpyoualongyourjourneyarejustsomeofthosefactors.Whenitcomestotoday’srealestatemarketthough,thetoptwofactorstoconsiderarewhat’shappeningwithinterestrates&inventory.

InterestRates

Mortgageinterestrateswereontheriseforthemajorityof2018,beforeslowingtowheretheyarenow,around4.3%accordingtoFreddieMac’sPrimaryMortgageMarketSurvey.

Theinterestrateyousecurewhenbuyingahomenotonlygreatlyimpactsyourmonthlyhousingcosts,butalsoimpactsyourpurchasingpower.

Purchasingpower,simplyput,istheamountofhomeyoucanaffordtobuyforthebudgetyouhaveavailabletospend.Asratesincrease,thepriceofthehouseyoucanaffordtobuywilldecreaseifyouplantostaywithinacertainmonthlyhousingbudget.

Thechartbelowdemonstratestheimpactrisinginterestrateswouldhaveifyouplannedtopurchasea$400,000homewhilekeepingyourprincipalandinterestpaymentsbetween$1,800-$1,900amonth.

Witheachquarterofapercentincreaseininterestrate,thevalueofthehomeyoucanafforddecreasesby2.5%(inthisexample,$10,000).Expertspredictthatmortgagerateswillbecloserto4.6%bytheendofnextyear.

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Principal&InerestPaymentsroundedtothenearestdollaramount

2FactorstoWatchinToday'sRealEstateMarket

BottomLine

Ifyouareplanningtoenterthehousingmarket,eitherasabuyeroraseller,let’sgettogethertodiscusswhatchangesinmortgageinterestratesandinventorycouldmeanforyou.

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Inventory

A‘normal’realestatemarketrequirestheretobea6-monthsupplyofhomesforsaleinorderforpricestoincreaseonlywithinflation.AccordingtotheNationalAssociationofRealtors(NAR),listinginventoryiscurrentlyata4.2-monthsupply(stillwellbelowthe6monthsneeded),whichhasputupwardpressureonhomeprices.Homepriceshaveincreasedyear-over-yearforthelast86straightmonths.

Theinventoryofhomesforsaleintherealestatemarkethadbeenonasteadydeclineandexperiencedyear-over-yeardropsfor36straightmonths(fromJuly2015toMay2018),butwearestartingtoseeashiftininventoryoverthelast11months.

Thechartbelowshowsthechangeinhousingsupplyoverthelast12monthscomparedtotheprevious12months.Asyoucansee,beginninginJune,inventorylevelshavestartedtoincreaseascomparedtothesametimelastyear.

Homepricesareonthetopofeveryone’sminds.Cantheymaintaintheircurrentpaceofappreciation?Willmortgageratesimpacthomevalues?Willthenexteconomicslowdowncausepricestocrash?

Let’strytoanswerthesequestionsbasedonwhathashappenedinthepastaswellaswhatweknowaboutthecurrentrealestatemarket.

TheImpactofInterestRates

Risingmortgagerateshavenotnegativelyimpactedhomepricesinthepastandprobablywouldn’tthistimeeither.FreddieMac’scommentswereverydirect:

“Inthecurrenthousingmarket,thedrivingforcebehindtheincreaseinpricesisalowsupplyofbothnewandexistinghomescombinedwithhistoricallylowrates.Asmortgageratesincrease,thedemandforhomepurchaseswilllikelyremainstrongrelativetotheconstrainedsupplyandcontinuetoputupwardpressureonhomeprices.”

Theywerecorrect.Sofarthisyear,homevalueshavecontinuedtoappreciateabovenormalhistoricpercentagesanditappearsthegradualincreaseinrateshashadlittleimpactonprices.

TheImpactofanEconomicSlowdown

Manypeoplefearthatwhentheeconomyturns,wemayseethesamedepreciationinhomevaluesaswedidadecadeago.

However,thesamegroupofeconomists,realestateexperts,andinvestment&marketstrategistswhopredictedthenextrecessionwilloccurin2020havealsoprojectedthathomepriceswillcontinuetoappreciateforthenextfiveyears,albeitatsmallerpercentages.

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WhatDoestheFutureHoldForHomePrices?

ItComesDowntoSupplyandDemand

Asalways,homepriceswillbedeterminedbythedemandtopurchasecomparedtotheavailableinventoryofhomesforsale.Forthelastsevenyears,demandhasfarexceededtheavailablesupplywhichhasresultedintheaverageannualappreciationtotop6%since2012.Thatisfargreaterthanthehistoricnormof3.6%annualappreciationthatwesawpriortothehousingboom.

Therearecurrentlysmallsignsthathousinginventoryisslowlybeginningtoincrease.Monthssupplyofhomesforsaleincreasedascomparedtolastyearoverthelast11monthsafter36consecutivemonthsofdecreasinginventory.Newconstructiondatahasalsoshownpositivesignsthatinventorywillbeincreasing.

Asinventorybeginstomeetdemand,wewillseeappreciationreturntomorenormallevels.Wearealreadyseeingprojectionscominginlowerthanthe6.6%annualaveragewehaveseenmorerecently.

CoreLogicpredictsthathomevalueswillappreciateby4.8%overthenexttwelvemonths.

BottomLine

MarkFleming,ChiefEconomistatFirstAmerican,explaineditbest:

“We’reseeingthefirstindicationsthatpriceappreciationmaybeslowing,buttheunderlyingfundamentalhousingmarketconditionssupportanaturalmoderationofhousepricesratherthanasharpdecline.”

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Interestratesfora30-yearfixedratemortgageclimbedconsistentlythroughout2018untilthemiddleofNovember.Afterthatpoint,ratesreturnedtolevelsthatwesawinAugusttocloseouttheyearat4.55%,accordingtoFreddieMac’sPrimaryMortgageMarketSurvey.

Afterthefirstquarterof2019,rateshavecontinuedtheirdownwardtrend.AsFreddieMac’sChiefEconomistSamKhaternotes,thisisgreatnewsforhomebuyers.

“Weexpecttoseetheresultoftheselowmortgageratesandstrongerwagegrowthtranslateintobetterhomesalesinthecomingmonths.”

Insomeareasofthecountry,thecombinationofrisinginterestratesandrisinghomepriceshavemadesomefirst-timebuyerspushpauseontheirhomesearches.Butwithmoreinventorycomingtomarket,continuedpricegrowth,andinterestratesslowing,morebuyerswillgetbackinthemarket!

WillThisTrendContinue?

AccordingtothelatestforecastsfromFannieMae,theMortgageBankersAssociation,andtheNationalAssociationofRealtors,mortgagerateswillincreaseoverthecourseof2019,butnotatthesamepacetheydidin2018.Youcanseetheforecastsbrokendownbyquarterbelow.

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BottomLine

Evenasmallincrease(ordecrease)ininterestratescanimpactyourmonthlyhousingcost.Ifyouareconcernedaboutgivingupalowerratetomoveontoyourdreamhome,let’sgettogethertomakeyourdecisionaninformedone.

Quarter FreddieMac FannieMae MBA NAR AverageofAllFour

20193Q 4.3 4.2 4.4 4.3 4.30%

20194Q 4.3 4.2 4.4 4.4 4.30%

20201Q 4.4 4.2 4.5 4.5 4.40%

20202Q 4.4 4.2 4.6 4.5 4.42%

IstheRecentDipinInterestRatesHeretoStay?

Soyou’vedecidedtosellyourhouse.You’vehiredarealestateprofessionaltohelpyouwiththeentireprocessandtheyhaveaskedyouwhatlevelofaccessyouwanttoprovidetopotentialbuyers.

Therearefourelementstoaqualitylisting.AtthetopofthelistisAccess,followedbyCondition,FinancingandPrice.Therearemanylevelsofaccessthatyoucouldprovidetoyouragenttobeabletoshowyourhome.

Herearefivelevelsofaccessthatyoucouldprovidetoabuyerwithabriefdescription:

•  LockboxontheDoor–Thisallowsbuyerstheabilitytoseethehomeassoonastheyareawareofthelisting,orattheirconvenience.

•  ProvidingaKeytotheHome–Althoughthebuyer’sagentmayneedtostopbyanofficetopickupthekey,thereislittledelayinbeingabletoshowthehome.

•  OpenAccesswithaPhoneCall–Thesellerallowsshowingwithjustaphonecall’snotice.

•  ByAppointmentOnly(example:48HourNotice)–Manyout-of-town/statebuyersandrelocationbuyersvisitanareatheywouldliketomovetoandonlyhavetheweekendtoviewhomes.Theymaynotbeabletoplanthatfarinadvance,ormaybeunabletowaitthe48hourstobeshownthehouse.

•  LimitedAccess(example:thehomeisonlyavailableonMondaysorTuesdaysat2PMorforonlyacoupleofhoursaday)–Thisisthemostdifficultwaytobeabletoshowyourhousetopotentialbuyers.

Inacompetitivemarketplace,accesscanmakeorbreakyourabilitytogetthepriceyouarelookingfor,orevensellyourhouseatall.

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TheRoleAccessPlaysinGettingYourHouseSold!

Intoday’srealestatemarket,withmorehousescomingtomarketeverydayandeagerbuyerssearchingfortheirdreamhome,settingtherightpriceforyourhouseisoneofthemostimportantthingsyoucando.

AccordingtoCoreLogic’slatestHomePriceIndex,homevalueshaverisenatover6%ayearoverthepasttwoyears,buthavestartedtoslowto3.7%overthelast12months.Bythistimenextyear,CoreLogicpredictsthathomevalueswillbe4.8%higher.

Withpricesslowingfromtheirpreviouspace,homeownersmustrealizethatpricingtheirhomesalittleOVERmarketvaluetoleaveroomfornegotiationwillactuallydramaticallydecreasethenumberofbuyerswhowillseetheirlisting!(seethechartbelow)

Insteadofthesellertryingto‘win’thenegotiationwithonebuyer,theyshouldpricetheirhousesothatdemandforthehomeismaximized.Bydoingso,thesellerwillnotbenegotiatingwithabuyerovertheprice,butwillinsteadhavemultiplebuyerscompetingwitheachotheroverthehouse.

Thekeytosellingyourhousein2019ismakingsureyourhouseisPricedToSellImmediately(PTSI)!Thatway,yourhomewillbeseenbythemostbuyersandwillsellatagreatpricebeforemorecompetitioncomestomarket!

BottomLine

Ifyouaredebatinglistingyourhouseforsale,let’sgettogethertodiscusshowtopriceyourhomeappropriatelyforourareaandmaximizeyourexposure!

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IsYourHousePricedtoSellImmediately(PTSI)?

Oneofthebiggestchallengessellersfacewhenlistingtheirhouseisdecluttering.Cleaningoutsomeofthemorepersonaldecoratingchoicesallowsbuyerstoimaginethemselveslivinginthehouse.

Thoseplanningtosellsoonareinluck!MarieKondo,theinventoroftheKonMariMethodofTidyingUp,hasgainedpopularitywithhernewNetflixseries.Shegivessomegreattipsforsortingthroughyearsofaccumulatedpossessionsthatweallcollectinourhomes.

“TheKonMariMethod™encouragestidyingbycategory–notbylocation–beginningwithclothes,thenmovingontobooks,papers,komono(miscellaneousitems),and,finally,sentimentalitems.Keeponlythosethingsthatspeaktotheheart,anddiscarditemsthatnolongersparkjoy.Thankthemfortheirservice–thenletthemgo.”

Whenyousubjectivelylookatallofyourbelongings,youcansortthroughtheonesthatmeanthemosttoyou.Notonlywillyouincreasespaceformorejoy-bringingitemsinyournewhome,butyouwillalsohaveamucheasiertimepackingremainingbelongings!

“Remember,tidyingupisn’taboutgettingridofstuff.Itisaboutcreatinganenvironmentthatsparksjoyandimprovesyourqualityoflife.”

Whensellingyourhouse,firstimpressionsmatter!Beforeyouoryouragentscheduleaphotographertotakephotosforyourlisting,makesuretotouryourhomewithfresheyes.Lookforanyimperfectionsthatabuyermightnotice.

Whenyousortthroughyourmoresentimentalitems,considerpackingthemawaytoensurethatyouknowwheretheyallare.Thatway,theyaresafeduringopenhousesandshowingappointments.Thiswillalsocutdownontheamountofpackingyouneedtodorightbeforeyoumove!

BottomLine

Whetheryouaresellingyourhousetomoveuptoalargerone,downsizing,ormovinginwithfamily,onlybringtheitemsthattrulysparkjoyforyou.Thiswillnotonlyhelpcutdownontheitemsyoumove,butalsoensuresthatyou’reofftoagreatstartinyournewhome!

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TheKonMariMethod:HelpingYouPrepYourHouseForSale

Risinghomepricescoupledwithalackofinventoryintoday'smarketmaycausesomehomeownerstoconsidersellingtheirhomeontheirown(knownintheindustryasaForSaleByOwner).However,aFSBOmightnotbeagoodideaforthevastmajorityofsellers.

Thetopfivereasonsarelistedbelow:

1.  OnlineStrategyforProspectivePurchasers

Recentstudieshaveshownthat95%ofbuyerssearchonlineforahome.Incomparison,only13%usenewspaperads.MostrealestateagentshaveanInternetstrategytopromotethesaleofyourhome.Doyou?

2.  ResultsComefromtheInternet

Wheredidbuyersfindthehometheyactuallypurchased?

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• 50%ontheInternet• 28%fromaRealEstateAgent

• 7%fromayardsign• 1%fromnewspapers

Thedaysofsellingyourhousebyjustputtingupasignandputtingitinthepaperarelonggone.HavingastrongInternetstrategyiscrucial.

3.  ThereAreTooManyPeopletoNegotiateWith

HereisalistofsomeofthepeoplewithwhomyoumustbepreparedtonegotiateifyoudecidetoForSaleByOwner:

•  Thebuyerwhowantsthebestdealpossible•  Thebuyer’sagentwhosolelyrepresentsthebestinterestofthebuyer•  Thebuyer’sattorney(insomepartsofthecountry)•  Thehomeinspectioncompanies,whichworkforthebuyerandwillalmostalwaysfindsomeproblemswiththehouse

•  Theappraiserifthereisaquestionofvalue

WhyYouShouldn’tForSaleByOwner

4.  FSBOingHasBecomeMoreandMoreDifficult

Thepaperworkinvolvedinsellingandbuyingahomehasincreaseddramaticallyasindustrydisclosuresandregulationshavebecomemandatory.ThisisoneofthereasonsthatthepercentageofpeopleFSBOinghasdroppedfrom19%to7%overthelast20+years.

5.  YouNetMoreMoneyWhenUsinganAgent

Manyhomeownersbelievethattheywillsavetherealestatecommissionbysellingontheirown.RealizethatthemainreasonbuyerslookatFSBOsisbecausetheyalsobelievetheycansavetherealestateagent’scommission.Thesellerandbuyercan’tbothsavethecommission.

AstudybyCollateralAnalyticsrevealedthatFSBOsdon’tactuallysaveanything.Insomecases,theymayactuallycostthemselvesmorebynotlistingwithanagent.Oneofthemainreasonsforthepricedifferenceatthetimeofsaleis:

“PropertieslistedwithabrokerthatisamemberofthelocalMLSwillbelistedonlinewithallotherparticipatingbrokerwebsites,marketingthehometoamuchlargerbuyerpopulation.AndthoseMLSpropertiesgenerallyoffercompensationtoagentswhorepresentbuyers,incentivizingthemtoshowandsellthepropertyandagainpotentiallyenlargingthebuyerpool.”

Themorebuyersthatviewahome,thegreaterthechanceofabiddingwarfortheproperty.Thestudyshowedthatthedifferenceinpricebetweencomparablehomesofsizeandlocationiscurrentlyatanaverageof6%.

Whywouldyouchoosetolistonyourownandmanagetheentiretransactionwhenyoucanhireanagentandnothavetopayanythingmore?

BottomLine

Beforeyoudecidetotakeonthechallengesofsellingyourhouseonyourown,let’sgettogetheranddiscussyourneeds.

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5ReasonstoHirea

RealEstateProfessional

ContractsTheyhelpwithalldisclosures&contractsnecessaryintoday’sheavilyregulatedenvironment.ExperienceTheyarewelleducatedinandexperiencedwiththeentiresalesprocess.NegotiationsTheyactasa“buffer”innegotiationswithallpartiesthroughouttheentiretransaction.PricingTheyhelpyouunderstandtoday’srealestatevalueswhensettingthepriceofalistingoranoffertopurchase.UnderstandingofCurrentMarketConditionsTheysimply&effectivelyexplaintoday’srealestateheadlines&decipherwhattheymeantoyou.

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I’msureyouhavequestionsandconcernsaboutsellingyourhouse.Iwouldlovetotalkwithyouaboutwhatyoureadhere,aswellashelpyouonthepathtosellingyourhouse.Mycontactinformationisbelow.Ilookforwardtohearingfromyou!

EqualHousingOpportunity

CONTACTMETOTALKMORE

SammamishMortgageCorporateCampusEastIII305112thAvenueNE,Suite214Bellevue,Washington98004(425)401-8787(425)401-8787Faxloan@sammtg.comSammmamishMortgage.com