Why Americans Really Buy Homes | Why Would You Buy a Home | #ShareWithOthers #RealEstateKnowledge

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Why Americans Really Buy Homes | Realtor Magazine

For more than half of Americans, the main reason to buy a home is simply because they want a place to call their own, according to the “Homebuyer Insight Report” recently released by Bank of America.

 

“Home buyers today are motivated by both emotional and practical reasons,” says D. Steve Boland, the consumer lending executive. “Nearly all want more space, but a majority of home buyers, especially those purchasing their first home, are also looking for a place to call their own, put down roots and make memories. They value the emotional benefits of owning a home as much as financial ones.”

The survey revealed the following top emotional triggers for buyers:

  • Want a place to call their own: 52%
  • Always something they wanted to do: 43%
  • Want to put down roots: 31%
  • A place to make memories: 28%

As for the most influential financial factors, the survey found Americans are motivated to buy a home for these reasons:

  • Better than paying rent: 37%
  • Saved enough money: 26%
  • Have a steady job: 21%
  • Good time to buy a home: 15%

Survey respondents also were asked to define home ownership. Here’s what they said it means to them:

  • Security: 60%
  • Family: 58%
  • Responsibility: 58%
  • Happiness: 57%

Source: “The Top Reasons Why Americans Buy Homes,” Keepingcurrentmatters.com (April 13, 2016)

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4 Factors Boosting Housing This Month | Do You Need Help With Selling or Buying?

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4 Factors Boosting Housing This Month | Realtor Magazine

Warmer weather across the country is drawing more people to look at open houses and available homes this month, says Jonathan Smoke, realtor.com®’s chief economist.

Here are four current housing market factors that will likely translate into greater sales this April:

1. Low mortgage rates: Mortgage rates have moved lower this month and are hovering near the lowest averages in the past three years. Lower mortgage rates help boost home buyers’ purchasing power as well as buyers’ ability to qualify for a mortgage.

2. More urgency: Many buyers were frustrated last year with their inability to buy. This spring, they’re heading to the housing market more determined. Mortgage applications for home purchases are up 20 percent compared to last year.

3. More searching: Realtor.com® reports a record number of people searching and looking at its website for homes. Nevertheless, there are 2 percent fewer homes for sale that they’ll find when compared to last year.

4. Faster sales: The time that listings spend on the market has dropped dramatically. Nationwide, the median days on the market dropped 14 days in the first two weeks of April compared to the first two weeks of March.

Some of the places seeing the fastest sales are in Colorado, including Aurora, Arvada, Littleton, and areas of Denver, where the median age of a listing is less than 7 days. Gladstone, Ore., and areas of Seattle are also seeing the median age of listings at less than 7 days.

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Thinking of Selling? | Show off your home | #ShareWithOthers #RealEstateKnowledge

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3 Ways Sellers Can Show Off Outdoor Space | Realtor Magazine

Take a close look at your listing from the eye of a home buyer. Are the bushes overgrown around the front windows? Has the mulch all washed away? Is the paint on the shutters fading?

These are the questions Jon Coile, chairman of the multiple listing service MRIS in Rockville, Md., asks in a recent column at The Washington Post that aims to help sellers examine the exterior of their homes. Here are some simple ways to solve common curb appeal issues:

Stick to similar plant groupings. Aim for a continuous flow with a landscape. “It can often make small spaces feel much larger,” Coile says. To do this, select only few different types of plants for the landscaping, instead of selecting a wide variety. The majority of the landscaping should consist of similar plants so the landscape doesn’t look look broken up into too many different sections, Coile notes. Then, feel free to use a small number of accent pieces to add color and visual interest.

Use visual markers. Visual markers help draw buyers’ eyes from one end of the yard to another. “The easiest way to do this is to lay a path that subtly transitions in the same places the yard does, at slight changes in elevation or where shaded areas transition to open sun,” Colie notes. “If that isn’t possible, then a few strategically placed taller plants, subtle decorations, or lighting fixtures can create the same impression.”

Show off the entertainment value. Show grassy areas where kids can play safely as well as places where adults can socialize, Coile writes. Consider these features for an added touch to show the possibilities of a space: Fire pits and outdoor gas flames, outdoor speakers, or a wet bar near a grill.

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How Much Can You Pay Towards Housing? | Buy vs Rent | #ShareWithOthers #RealEstateKnowledge

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How Much Rent Can You Afford? – ZING Blog by Quicken Loans | ZING Blog by Quicken Loans

Please make sure you’re sitting down when you read this: A staggering 49.3% of American renters are spending more than 30% of their income on rent, according to the Joint Center for Housing Studies at Harvard University.

What’s the cause of this trend? Part of it may be that the cost of rent is rising faster than incomes.

So how can you combat this? Proper budgeting helps. However, in the right situation, your best bet to avoid the rent problem may be to avoid renting altogether.

Examine the Bottom Line

It’s generally not recommended to spend more than 30% of your income on housing expenses. It puts the rest of your financial life at risk.

With that in mind, it’s best to determine how much you can afford to spend on renting or buying a house and go from there.

There’s no substitute for a line item budget in this area. Look at housing as part of your overall expenses and come to a number you’re comfortable with. Don’t forget to leave a little money aside for savings and investment or emergencies.

If you feel you’re spending too much, it may be time to downsize or look at other options.

Once you have a number in mind, it’s time to figure out whether you should rent or buy.

Rent or Buy

Both renting and buying have some key advantages, so which one is right for you? Let’s take a look at the tale of the tape.

Why Rent?

Renting can be good for a few reasons. Let’s run through those.

Renting an apartment may be a logical first step for many young people just getting started. When you’re first starting out on your own, you may only need a small place, and a decent apartment can be just what you need. This also gives you the opportunity to build up credit by making payments on time so you can get financing for a car or house down the line.

Lease agreements also provide a certain amount of flexibility. If you finds yourself moving around a lot, the idea of being able to get out of the lease after a year without having to put the property up for sale may appeal to you.

Finally, certain amenities are included when you have an apartment. Depending on the terms of the lease, utilities, Internet and cable might be included within the rent.

Why Buy?

As compelling as the case can be to rent a place, there are an awful lot of good reasons to buy. Every market is different, but chances are it’s more affordable than you think.

The biggest reason to take the leap and purchase your own place from a logical standpoint is that you get something back for your money. When you give your money to the landlord, you get nothing back out of the investments except a place to stay.

By contrast, when you buy, you gain equity with every payment you make. This equity is very much like a traditional investment in that it can be translated into cash.

How does this work?

Once you’ve built up equity for a while, you can refinance to take cash out and use it for other purposes, such as helping to fund a college education or giving your retirement fund a boost to catch up.

You also may build value quicker in the current market as home values have been on the rise for a while now. If your property value goes up, you benefit from the gain, as part of the ratio for calculating equity has to do with property value.

Not only is buying an investment, but it may be more cost-effective than renting. With rates as low as they are, you may be able to own a home by paying as much or less than you’re paying for monthly rent.

There’s also something appealing about having a place that’s yours when you go home. You can really make the space your own. Watch your kids play on the tire swing in your front yard. It gives you a chance to really be involved in the community because you won’t be on to the next place when rent goes up in a year.

Down Payment

While there are certain advantages to a higher down payment, you shouldn’t let the fact that you don’t have 20% to put down keep you from getting a house.

There are a variety of options if you’re looking at putting less down. With a conventional loan, you could put down as little as 3% with standard programs. If you’re going with an FHA loan, the minimum is 3.5%.

If that still seems like a lot to lay out at close, Quicken Loans has an exclusive and exciting new option for well-qualified clients. You can purchase a home with as little as 1% down while gaining 3% equity. This means you can purchase a $150,000 home with a down payment as small as $1,500.

There are a few restrictions: You must have a minimum FICO credit score of 680 and you must be purchasing your primary property.

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Mortgage Rates Reach a New Low for 2016 | #Purchase #Refinance #ShareWithOthers #RealEstateKnowledge

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Mortgage Rates Reach a New Low for 2016 | Realtor Magazine

The 30-year fixed mortgage rate dipped to its lowest average of the year this week, averaging 3.58 percent, Freddie Mac reports in its latest mortgage market survey. 

“Demand for Treasuries remained high this week, driving yields to their lowest point since February,” says Sean Becketti, Freddie Mac’s chief economist. “In response, the 30-year mortgage rate fell 1 basis point to 3.58 percent. This rate represents yet another low for 2016 and the lowest mark since May 2013.”

Freddie Mac reports the following national averages with mortgage rates for the week ending April 14: 

  • 30-year fixed-rate mortgages: averaged 3.58 percent, with an average 0.5 point, dropping from last week’s 3.59 percent average. Last year at this time, 30-year rates averaged 3.67 percent. 
  • 15-year fixed-rate mortgages: averaged 2.86 percent, with an average 0.5 point, falling from last week’s 2.88 percent average. A year ago, 15-year rates averaged 2.94 percent. 
  • 5-year hybrid adjustable-rate mortgages: averaged 2.84 percent, with an average 0.4 point, rising from last week’s 2.82 percent average. Last year at this time, 5-year ARMs averaged 2.88 percent.
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How to Sell Your Home for More? | Design Features That Sell Your Home Faster, for More Money | #ShareWithOthers #RealEstateKnowledge

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Design Features That Sell Your Home Faster, for More Money | Builder Magazine

Bloomberg contributor Lisa Selin Davis says that a barn door could make a home sell faster, and for a much higher premium, than a home without that and other rustic touches, according to a report from Zillow Digs.

The report claimed that a sliding door could potentially help a home get off the market 57 days faster and sell for 13.4% more than a home without, and highlighted other design features that can amp up a home sale such as shaker cabinets (45 days faster), farmhouse sinks (58 days faster), and subway tiles (63 days faster). All four of those top terms point back to a rustic design aesthetic that has caught fire with today’s homebuyers. Zillow Digs refers to the touches, which can now be designed to also be “modern and sleek,” as “craftsman meets farmhouse.”

But Skylar Olsen, Zillow’s senior economist, knows that having “barn door” in the listing alone doesn’t directly correlate to a higher price or a quicker sale. You can’t just slap a barn door on, or in, any old home and automatically, and dramatically, increase its value. “‘Causal relationship’ are strong words,” she says.

In fact, some of these pieces are actually quite expensive to install. A modern barn door can be around $1,600, while subway tiles can run up as high as $40 per square foot and a copper farmhouse sink can be as expensive as $2,500.

A few other home features made a surprising appearance on the list, such as tankless water heaters, breakfast nooks, and exposed beams. Continue reading on Bloomberg for the full findings of Zillow’s report.

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Buyin a Home? | 7 Mistakes to Avoid as a First-Time Home Buyer | #ShareWithOthers #RealEstateKnowledge

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7 Mistakes to Avoid as a First-Time Home Buyer | Total Mortgage Underwritings Blog

First-time buyers are often a bit overwhelmed at the thought of buying a house.

The intention of this article is to help prepare you for what NOT to do when buying a house for the first time, and you’ll pick up some great information along the way.

Without further ado, let’s dive in…

1. Not educating yourself on the buying process

One of the best tips we can give to anyone who’s buying a house for the first time is to educate yourself on the steps involved when buying a house. Too many first-time home buyers are jumping into the housing market because it ‘feels’ right and this is a mistake. How can you know what feels right when you’ve never done it before?

Instead of buying a house based on feelings, you need to buy a house based on facts. Before committing to buy a home, you need to make sure that you’re ready to buy your first house.

Do you know what first time home buyer programs are available in your area? First-time home buyers have a number of benefits available to them that offer big time savings.

Find a top local Realtor in your area and ask them specifically to chat with other first time home buyers they’ve worked with in the past. Don’t hesitate to gather information on the experiences of others who have worked with them.

2. Not preparing to buy a house

Time to start saving. Once you think you have enough money saved, you are going to pay for the inspectors, the attorney, the appraiser, etc.

Not preparing properly is a common buyer mistake, especially one among first-time buyers who have never purchased a house before.

If you’re buying a house for yourself then you should have no problem putting together a list of your priorities. Those who are buying with a significant other will have to strategically prioritize what matters most to both people who will be living in the house. Those buying with the intentions of starting a family will have different priorities.

Knowing your priorities ahead of time is going to make for a much easier home search. The location should be priority #1 when buying a house – you can change the condition of a house, you can’t change the location (or the school district).

3. Finding the house before the location

A lot of time first time home buyers will wait to find the perfect house that will never hit the market. There are some things buyers MUST be willing to sacrifice in order to find a great home at a great price in an excellent location. If there is one thing a home buyer should never settle on, it’s location.

Buying a big house in a bad location is a common first-time buyer mistake. You should buy a house based on the priorities you have in a location, and narrow down your criteria before you start previewing homes.

One common mistake a first time home buyer will make is failing to buy a house in the location they want because they are ‘tempted’ to buy a mansion in a location that is less desirable. Once you start previewing homes outside of your desired area you’ll confuse yourself. For instance, someone with a budget of $300,000 will be able to buy a much bigger house in Durham, NC than they would if they bought a home in Cary, NC. The difference here is schools, amenities, safety, commute time and more.

4. Overextending on your budget

One of the worst mistakes a first-time buyer can make is overextending on your budget. Your home instantly becomes a burden instead of something you can enjoy. One of the best things you can do as a homebuyer is reverse-engineer your monthly costs before you buy a house.

If you can spend 3-6 months calculating an average cost to live, you can set budgets for how much you’re comfortable spending and saving. Whatever is left over is a comfortable monthly payment on a house (don’t forget about mortgage insurance).

For those purchasing a home with less than a 20% down payment, private mortgage insurance is likely to be included as a requirement in owning your home. Private mortgage insurance will typically go away once you have paid back 20% of the loan.

5. Not having the right real estate team in place

Your real estate team is like a group of coaches for first-time home buyers. Everyone makes mistakes, it’s human nature. It’s your real estate team’s job to make sure they coach you through the mistakes proactively.

As a first time home buyer, it’s important you assemble the right real estate team. You’ll want to ensure you have the right mortgage lender, real estate agent, home inspector, and attorney.

Having the right real estate team in place will go a long way in your home purchase as they will be able to guide you throughout the process. Make sure you find a team that works well with you and works well together to ensure a smooth home buying experience!

6. Buying based on emotion

The best decisions you can make when buying a home are the ones based on facts. Too often I watch a buyer make an offer on a home they love only to be outbid by another offer. Hearing that the home sold to someone else is not easy. It’s one of the toughest things you can hear as a buyer, especially if it’s your first time.

Becoming depressed as a buyer is a common mistake first-timers make.

When you allow yourself to become depressed your body does two things typically. One, it shuts down completely and it no longer wants to buy a house because there was too much ‘pain’ experienced. Or two, you will buy anything just to feel better about missing out on the last home.

These are commons mistakes made by all sorts of buyers, not just first-time buyers.

If you make an offer and the home sells to someone else then treat it like a GOOD thing. You just picked out one of the most desirable homes on the market, meaning you recognize a good deal! Pat yourself on the back, and go find a better one!

7. Not calculating the true costs

Are you ready for all of the costs that come with buying your first house, and all the costs that come with homeownership? There is going to be a wake-up call for first-time home buyers who are looking at just their principal and interest monthly payments. There are many more costs that come with both purchasing a home and owning a home.

Looking at ‘what you can afford’ when buying a home is a common first-time buyer mistake.

What you can afford, and what you can afford while maintaining your current lifestyle are two entirely different numbers.

Some of the recurring costs you’ll want to be sure you include when buying a house are:

  • Property Taxes
  • Mortgage Insurance (If you put less than 20% down)
  • Home Maintenance
  • Homeowner’s Insurance
  • Utility Bills

Final thoughts on mistakes made by first-time buyers:

It is imperative to factor loan origination fees, attorney fees, inspection fees, appraisal fees, mortgage insurance, and any other closing costs into your budget when buying a home. It is your job as a buyer to make sure you factor all the costs involved when purchasing a home. Your Total Mortgage loan officer or your realtor will be critical in helping you understand which fees apply to you, how much those fees will be, and what your options are.

I cannot stress to my buyers enough is that location is the most important part of a home. You can change the price, you can change conditions–you cannot change the location.

If you can avoid making these 7 mistakes when purchasing your first house, you are going to be in much better shape than most of the second and third-time home buyers out there!

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This Causes the Most Damage to a Home | #ShareWithOthers #RealEstateKnowledge

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This Causes the Most Damage to a Home | Realtor Magazine

A new study shows why home owners need to be more concerned about wind damage.

According to data released by the insurance company Travelers, wind damage nudged ahead of hail, water, theft, fire, and others to be the top homeowner’s insurance claim. But it’s the one thing that home owners are least likely to protect their homes against, says Scott Humphrey, the second vice president of risk control at Travelers.

Protecting the Home

Wind can cause tree branches to detach and hit the home, lift up roof shingles, or damage windows and doors, Humphrey says.

To protect a home during a strong storm with high winds, home owners should ensure dangling branches are removed, secure windows with plywood, and secure a garage with vertical braces, says Crissinda Ponder, a real estate analyst for Bankrate.com. Also, home owners should be proactive in repairing or replacing any loose or damaged shingles and have door bolts to keep doors in place, she adds.

Wind damage is covered by most standard home insurance policies. However, home owners in coastal and hurricane-prone areas may find wind damage excluded from their policies and may need to purchase a separate windstorm policy.

The study revealed the following five most common causes of homeowner’s insurance claims:

  • Exterior wind damage: 25% (percentage of claims)
  • Non-weather related water damage (i.e. plumbing and appliance issues): 19%
  • Hail: 15%
  • Weather-related water damage: 11%
  • Theft: 6%
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Give your first home-buying experience a shot at success by taking these tips into account | #ShareWithOthers #RealEstateKnowledge

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Are You Ready To Buy A Home? 7 Steps You Need To Take Today – Real Estate 101 – Trulia Blog

Just as there is more to owning a pet than the initial money needed to buy a dog or cat (the accessories, food, emergency vet visits, even the carpet that Fluffy uses as a scratching post), there’s more to buying a house than having a down payment.

Before you buy a home, you’ll need to consider the changes that will occur when you become a homeowner, and calculate how they’ll affect your budget and lifestyle. From neighborhood amenities to home warranties, here are seven considerations before you start perusing Charlotte, NC, real estate listings.

1. Figure out what to spend

Don’t necessarily buy what you can afford — at the top of your approved home loan. You need to plan for ongoing homeowner expenses, such as property taxes, homeowners’ insurance, and homeowner association dues. These fees are not necessarily static; they can increase, and you need to be prepared to pay them for as long as you live in the house. Try to keep your mortgage payments to no more than 28% of your salary so that you can handle extra fees that come with homeownership.

2. Research available loan programs

Check HUD.gov for state programs you might qualify for. In Maryland, for example, Community Development Administration loans are available to make homes more affordable for buyers like Kelsey Casselbury of Crofton, MD. Her only requirement was to take eight hours of a homeowner class. She also received $5,000 for closing costs, repayable upon sale of the home.

3. Scout out the neighborhood

Choose a neighborhood that matches your lifestyle. If you have kids, pick a house in a good school district. If you want to walk to restaurants and shopping, you typically need to live in a more established, historic area. Or if you want more space and a new-construction home, you might need to live farther from the city center. Listen to the neighbors: If you hear barking dogs and screaming kids, just remember, they’re staying.

4. Understand the art of negotiation

Some sellers might take lower than asking price if they believe you will treasure the house as much as they did. Debbie Kemp of Kansas City, MO, offered $2,000 below the asking price but insisted that she would keep a religious statue in place on the outside of the house. The statue was meaningful to the seller, and the seller rejected a higher offer from a buyer who asked that the statue be removed.

5. Budget for furniture

Unless you’re happy to picnic every night on a blanket spread out on the floor (with the neighbors watching through your naked windows), you’ll need to buy furniture and other home furnishings. The cost of furniture is nothing to sneeze at: Real estate professionals estimate it could run you 25% of the cost of the home.

6. Look into home-warranty plans

Rich Leffler, author of the book Insider Basics for the First-Time Home Buyer!, says buyers should always purchase a home warranty. “It’s like having a bumper-to-bumper warranty on your car.”

Home warranties, which are separate from homeowners’ insurance and purchased from home-warranty companies, usually cost a few hundred dollars annually and cover the heating system, air conditioning, water heater, and appliances. Leffler also recommends that homeowners start putting away $100 a month in a “home fund” as soon as they move in, which they can use to pay for repairs after the warranty expires.

7. Decide how long you’ll stay

Unless you know you’re buying your dream home, consider the cost of eventually moving out. If you don’t stay in the home for at least five years, you probably will not have enough equity built up to cover fees such as closing costs and a home inspection.

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Thinking of Selling Your Home? | Here Are a Few Prepration Assigment for You | #ShareWithOthers #RealEstateKnowledge

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Take Five: Selling a Home – The Sun Chronicle : Stories

Spring is the peak season for the real estate market. Buying and selling a home is typically the largest and most expensive transaction a person encounters in their life. Being prepared and knowledgeable about what to expect and how to manage the process is key to a successful deal. This week, Gil Campos, owner of Campos Homes Team in Foxboro, walks us through his five most important steps for selling a home. (Buying tips will come next week.)

Preparing a Property

 

The condition of a home is critical and properties must be staged. “Millennials are driving the market. After binge-watching HGTV they are expecting perfection. The good news is that these buyers are willing to pay more for a move-in ready house than one they have to do work on. So, a $2,000 investment in the right improvements can net $5,000 more in the asking price because the buyer doesn’t have to do the work and endure the hassle,” Campos said. The key is making the right choices about what improvements to make. Campos explains that he starts working with some clients 2 to 3 years before they are ready to actually sell the house. “If you know this isn’t going to be your long-term home, it’s wise to spread out the costs for improvements and start doing them a little at a time now.” Install granite countertops in the kitchen, replace the roof, or remodel a bathroom, for example. “These can still be enjoyed while you remain living in the home, but will add value when it’s time to sell.”

Setting a Price

“Price is the most important factor when it’s time to list the house,” Campos said. “The market is very aggressive and sellers have to make sure not to overprice the home. When the price is too high, and they’re wrong, then you have to reduce it and end up getting less in the end as it lingers on the market.” This is where a realtor adds value. A good realtor can evaluate the marketplace and develop a pricing strategy based on comparable houses that have recently sold, as well as those still active that your home will be competing against. A realtor can also properly adjust the pricing for intangibles such as privacy and location.

Pre-Inspection

“A pre-inspection makes sure you don’t have to sell the house twice,” Campos said. Real estate deals fall apart for two primary reasons — the buyer cannot get financing, or issues arise during the home inspection. “Hire a reputable inspector to evaluate your home before listing it. Then fix the scary stuff and disclose the minor stuff. This way buyers know up front what they are getting and there are no surprises when they bring in their own inspector to evaluate the home.”

Photos, Photos, Photos

“Online photos are the first showing to a buyer. They need to be high quality and include everything. And there needs to be a lot of them!” Campos said. Bad photos will turn off buyers, even if the house is great. Too few photos will leave them wondering what’s being hidden. “When a buyer actually comes to see the house, we want them saying ‘I can’t wait to see this room in person’ because the online photo got them so excited about it.”

Marketing

The market is aggressive and moves fast.””A home needs to be exposed to the entire marketplace,” Campos said. “When it’s listed on the MLS and all the real estate websites, it will get the maximum amount of exposure, garnering the most interest amongst the biggest audience.” The more potential buyers, the greater the demand and the more likely that a seller will get a competitive offer from the strongest buyer.

Selling a home is just one-half of the real estate landscape. Buying a home has its own key components to ensuring a successful outcome. Stay tuned as Gil Campos shares his tips for buyers next week.

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