Yajnesh Rai

Staging: More Money, Fewer Days on Market, Report Shows

To many real estate pros, home staging has gone from a luxury to a necessity. The National Association of REALTORS® found in a recent survey that sixty-two percent of sellers’ agents believe staging a home decreases the amount of time a home spends on the market, and a third say it increases the selling price.

The survey also found that staging can help buyers envision themselves living in that home. NAR’s Home Staging Report found that another 77 percent say that staging makes it easier for the buyers to visualize the property as their home. Staging can help transform a home into the type of residence that is demanded and desired in the market.

Some staging services that can be useful include photoshoot styling services. This involves prepping and photographing staged living areas to be featured in an online listing. This staging service is attractive because many home buyers are beginning their home search online and a nicely designed home can draw a buyer to the open house. Independent of how the market is, a staged home has a move-in ready feel and buyers will pay for it.

Of course, these benefits don’t come free. Staging services can cost hundreds or even thousands of dollars depending on the home’s condition, desired outcomes, size, and where it is and whether it is occupied or vacant. But home staging doesn’t have to involve a complete makeover. As NAR’s 2017 Profile of Home Staging shows, there are really three rooms one should consider staging: living room, kitchen, and the master bedroom.

Home buyers decide within eight seconds of seeing a home whether they like a home or not, according to the Real Estate Staging Association. That first impression can be long lasting. To help you learn more about the topic, we spoke with an NAR researcher and a Chicago-area stager and report on what they say.

5 Home Maintenance Tips for Fall | Realtor Magazine

• Check the roof. Sun exposure can cause warping, fading, chipping, and other deformities to roofs and siding materials. Inspect the roof for cracks or other damages, and repair any issues before winter.
• Sweep the chimney. If there is a blockage, or if residue is built up, the risk of fire and other safety issues increases. Homeowners will want to make sure the chimney is clean and in tip-top shape for winter use.
• Clean the gutters. Check gutters for leaves or other debris that may be blocking water flow. Be sure to clear them out so water can properly drain. Gutters are essential in preventing water damage and other costly repairs.
• Check weather stripping and caulking. This is essential to keep windows and doors sealed. Windows and doors may become slightly detached from their frames during colder months, so it’s important to make sure they are properly attached at the beginning of the season.
• Check out floors. With all the heat and moisture of the summer months, floors may be showing some signs of wear and tear. Scratched, dull, or damaged floors should be professionally scuff-sanded and recoated.

Mortgage Rates Hit New Yearly Lows | Realtor Magazine

Average mortgage rates moved lower this week, as the 30-year fixed-rate mortgage continues to sit well below 4 percent.

“The 10-year Treasury yield fell to a new 2017 low on Tuesday,” says Freddie Mac chief economist Sean Becketti. “In response, the 30-year mortgage rate dropped four basis points to 3.82 percent, reaching a new year-to-date low for the second consecutive week. However, recent releases of positive economic data could halt the downward trend of mortgage rates.”

Freddie Mac reports the following national averages with mortgage rates for the most recent week through Aug. 31:

• 30-year fixed-rate mortgages: averaged 3.82 percent, with an average 0.5 point, falling from last week’s 3.86 percent average. Last year at this time, 30-year rates averaged 3.46 percent.
• 15-year fixed-rate mortgages: averaged 3.12 percent, with an average 0.5 point, falling from last week’s 3.16 percent average. A year ago, 15-year rates averaged 2.77 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.14 percent, with an average 0.5 point, also falling from last week’s 3.17 percent average. A year ago, 5-year ARMs averaged 2.83 percent.

Simple Home Fixes to Attract Buyers | Realtor Magazine

If your sellers are looking for easy ways to increase a home’s value and get buyers’ attention before their home hits the market, here are three quick fixes for kitchens and bathrooms from Matt Karlin, president and CEO of Nemo Tile + Stone.

1. Refresh with color. As a 20-year industry veteran, Karlin has seen a lot of color trends come and go. When it comes to selecting a palette that looks fresh and has broad appeal, it’s best to go with whites and neutrals, Karlin says. Plus, if your seller is working with a small bathroom or kitchen, he recommends favoring a pale palette because it will also make the space look bigger. Sellers could also add a border of metallic tile as an accent to the room to give it a more modern look, he says.

2. Update the floors and walls. These areas receive serious wear and tear, Karlin says, so a smart move is to upgrade to a durable porcelain tile. Current design trends are replicating classic terrazzo and even wood textures. Porcelain tiles are great alternatives to traditional flooring materials, he adds.

3. Choose larger tiles. Oversized tiles not only are cost -effective (bigger tiles cover a larger area) but also help make a small room seem larger, Karlin says. He also recommends selecting simple patterns: Avoid anything too busy to ensure a clean yet modern look.

Half of Homes Sold in Less Than a Month | Realtor Magazine

Fifty-one percent of homes sold in July were on the market for less than a month, according to the National Association of REALTORS®’ existing-home sales report, released Thursday.

Properties typically stayed on the market for 30 days in July, down from 36 days a year ago.

“Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace” for existing-home sales last month, says Lawrence Yun, NAR’s chief economist. “Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month.”

Total existing-home sales—including completed transactions for single-family homes, townhomes, condos, and co-ops—decreased 1.3 percent to a seasonally adjusted annual rate of 5.44 million in July. Last month’s sale pace is the lowest of 2017, but it is still 2.1 percent above a year ago.

Large declines last month in existing-home sales in the Northeast and Midwest offset sale increases in the South and West, NAR reported.

“July was the fourth consecutive month that the typical listing went under contract in under one month,” says Yun. “This speaks to the significant pent-up demand for buying rather than any perceived loss of interest. The frustrating inability for new-home construction to pick up means inadequate supply levels will keep markets competitive heading into the fall.” 

Home prices across the country continued to rise last month. NAR reported that the median existing-home price for all housing types in July was $258,300, up 6.2 percent from a year ago.

Meanwhile, inventories of homes for sale remain tight. The total housing inventory at the end of July dropped 1 percent to 1.92 million existing homes available for sale. Inventories are now 9 percent lower than a year ago (2.11 million). Unsold inventory is at a 4.2-month supply at the current sales pace, down from a 4.8-month supply a year ago.

“Home prices are still rising above incomes and way too fast in many markets,” Yun says. “REALTORS® continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers’ budget and wish list.”

 

5 Things to Never Tell a Contractor | Realtor Magazine

Contractors may be your client’s go-to person during a home renovation. To ensure things go smoothly, realtor.com® warns of a few phrases homeowners should never say to the contractor, including:

1. “I’m not in a hurry.”

Don’t put too much pressure on the contractor. This phrase implies the contractor and crew can take as much time as they’d like with the home project, Victoria Shtainer, a residential expert at Compass New York, told realtor.com®. Time is often money and convenience.

2. “We had no idea this would be so expensive.”

“There is no worse feeling than bidding on a project, feeling good about your bid, and learning that the budget for the project is set unreasonably low,” says Nathan Outlaw, CEO of Onvico Inc., a general contracting company. “A good lesson for contractors and owners is to always get the money talks started during an early conversation.”

3. “I’ll buy my own materials.”

Contractors are often eligible for better pricing on materials. Still, “it isn’t necessarily a bad idea to check what materials a contractor is using for things like the subfloor or cabinets,” Outlaw says. “But trust them to use a good, well-established supplier to have the materials brought to the job site.”

4. “I’ll pay up front.”

Don’t take away your bargaining card from the start. A contract between you and the contractor will ensure the contractor will get paid, but make it contingent on the job being done to your satisfaction. You want to be able to hold the contractor accountable for the work they do.

5. “I’m old-school. We can use a handshake.”

“When a client says this, I know it’s time to run for the hills,” says Outlaw. “There should never be any fear about getting the scope of work and payment terms in writing.” A contract protects you and the contractor from the project being done on budget and in a timely manner. Get everything in writing first. 

4 Scary Risks ‘For Sale By Owner’ Home Sellers Face | realtor.com®

Going the “For Sale by Owner” route is a tempting alternative to hiring a real estate agent to sell your home. After all, listing agents charge a commission for their work that can eat into your own profits. So why not try to save money by selling your home yourself?

Here’s why: There are some major risks with going FSBO, from a lower sales price to landing in legal hot water. So before you pursue this DIY route, here’s a warning of some of the bad things you might encounter when you attempt a FSBO arrangement.

1. Your listing won’t be seen by many buyers

One key thing a real estate agent will do for you is create an eye-catching ad for your home, with attractive photos and a winning description that will reel in buyers (by, say, playing up those hardwood floors and granite countertops). Sure, you can probably cobble together your own ad, but there’s one thing you absolutely can’t do if you go FSBO: Post that ad on the multiple listing service.

 

Real estate agents pay to put their listings on the MLS, which is then distributed far and wide, including to sites such as realtor.com®. Which is great, since that way you know your home can be seen by thousands of potential buyers and their agents. With FSBO, however, your home won’t go on the MLS; instead, it’ll go on sites that cater to FSBO listings, which get far less traffic.

“There are thousands of agents trying to sell your house when it’s on the MLS, but when you do it alone, only one person is trying to sell your house—you,” notes Realtor® Denise Briez with Pro100 in Neosho, MO.

2. Your home could sell for a much lower price

Pricing a home can be far more challenging than most newbies assume. The majority of sellers price their home based on emotions, or what they hope it should sell for in some dreamy best-case scenario.

“Often the seller is too personally invested in the situation and too close to be objective,” says John Powell, chief development officer at Help-U-Sell Real Estate in Tucson, AZ.

But buyers want a bargain, and they know when a place is overpriced. As such, listings with bloated prices tend to sit—and sit—on the market. Even if you eventually lower the price, buyers are likely to wonder at that point if there’s something wrong with your house since it’s languished on the market so long.

A real estate agent, by contrast, will provide an accurate home value based on a solid market analysis, plus serve as a buffer between you and buyers to facilitate successful negotiations and a resolution both parties can live with. This, in turn, means you can earn top dollar for your home—which means your agent will likely earn every penny he’s paid.

3. You could run into legal trouble

Selling a home is fraught with legal pitfalls that only a real estate agent will know. As such, when you choose the FSBO route, you could do something that skirts the law but not even know it.

“There are a lot of potential legal problems that can arise during home selling,” says David Welch, a Realtor with Re/Max 200 Realty in Winter Park, FL. “I would say disclosure requirements may be your most likely issue. Most states, maybe all of them, have requirements involving seller’s disclosure of defects in the property.”

Disclosure requirements vary by state, but might include information on lead-based paint, nearby environmental hazards or sex offenders, and even whether someone died in the house. If you know of such info but keep mum, you could be committing a prosecutable offense and have one highly irate buyer on your hands to boot.

4. You might end up with a buyer who doesn’t pan out

Even if your FSBO listing gets an offer that you accept, you’re not out of the woods quite yet. For one, buyers fall through or back out for all sorts of reasons. For instance, you might inadvertently choose a buyer who can’t get a loan, which means you’ll have to start back at square one.

A real estate agent will be your ally in confirming a buyer is pre-approved for the correct loan amount, and then will ensure there is an airtight contract in place so the entire process will proceed smoothly.

Due to the risks of FSBO homes, many sellers eventually realize they can’t afford to not hire a real estate agent. So make sure to weigh the FSBO trade-offs against your money, time, and peace of mind.

Report: Kids Have Big Say in Real Estate | Realtor Magazine

Buyers with children put more weight on the neighborhood, local schools, and size of homes when shopping for the right property, according to the 2017 Moving With Kids report, produced by the National Association of REALTORS®.

The neighborhood, in particular, has a big influence on home buyers with children under the age of 18. Forty-nine percent of buyers who have children consider the neighborhood based on the quality of the school district, and 43 percent choose a neighborhood by the convenience to schools, according to the report.

Buyers with children also tended to purchase a larger home, at 2,100 square feet with four bedrooms and two full bathrooms. Buyers with no children tend to prefer a home with three bedrooms and two bathrooms at an average of 1,800 square feet.

Many buyers with children also say child care expenses can delay their home purchase. Twenty-two percent of buyers surveyed said they had to delay their home purchase due to the costs of child care. Also, they reported having to compromise on the price, style, and size of the home they purchased, according to the NAR report.

Sellers with kids also have unique needs. One notable need is that they usually have to sell their homes faster. Twenty-six percent of owners with children under the age of 18 sold their home urgently compared to 14 percent of owners with no children at home. The main reasons for selling a home for sellers with children were that the home was too small or they faced a job relocation or a change in their family situation.

The 20 Markets Dominating in August | Realtor Magazine

Half of the 20 hottest housing markets in August were located in California. Vallejo, Calif., held on to its top spot in realtor.com®’s “hot list” this month. Realtor.com® ranks the top 20 medium-to-large metro markets where homes are selling the fastest and where buyers are searching the most on realtor.com®.  

Detroit also made a comeback on realtor.com®’s list this month, entering the top five for the first time since October 2013. New metros added to the list for August include Grand Rapids, Mich.; Oxnard, Calif.; and Nashville, Tenn.

Realtor.com®’s 20 hottest housing markets in August are:

1. Vallejo, Calif.
2. San Jose, Calif.
3. San Francisco
4. Detroit
5. Stockton, Calif.
6. Kennewick, Wash.
7. Fort Wayne, Ind.
8. Columbus, Ohio
9. San Diego
10. Sacramento, Calif.
11. Dallas
12. Modesto, Calif.
13. Waco, Texas
14. Santa Rosa, Calif.
15. Fresno, Calif.
16. Grand Rapids, Mich.
17. Colorado Springs, Colo.
18. Denver
19. Oxnard, Calif.
20. Nashville, Tenn.

Living Rooms Are Heading Upstairs | Realtor Magazine

Upper-level living rooms are becoming a sought-after space among homeowners, The Wall Street Journal reports. Homeowners are finding these second-floor lounges can be cozier spaces than living areas on the first floor—and can offer more privacy, too.

Upper-level living rooms—sometimes labeled “pajama lounges”—are usually located right off bedrooms. They may include comfy sofas, a kitchenette, a television, and even a nook to work from. Architects are removing long hallway spaces upstairs to make room for these central living spaces upstairs.

The lounge area is intended for “the bedrooms [to] spill out, and the family can have a space to assemble,” says Kobi Karp, an architect in Miami who recently designed an upper-level living room in one of his projects. “It’s where you go on a Sunday morning and wait for the rest of the house to wake up.”

Upper-level living rooms tend to be more casual than their lower counterparts. They also tend to have recessed lighting instead of chandeliers and favor cozier seating areas over larger sectionals, Donna Mondi, a Chicago-based interior designer, told The Wall Street Journal. Mondi also says it’s not as important for the style of these spaces to match the rest of the home, either.

“Because it’s not part of the main area, all bets are off—you can do what you want with it,” says Mondi.

Madison Hildebrand, a real estate pro in Malibu and reality TV host, says he has sold dozens of homes over the past three years featuring these types of upper living spaces.

“After living in [an open floor] situation, [owners] realized that it’s nice to have the big open spaces, but also a little bit annoying,” Hildenbrand says. “Now there’s a bit more compartmentalizing.”

Hildenbrand says these upstairs living areas that are geared for families in larger homes are helping properties sell faster, too. Families are looking for the extra space to lounge, without having to make an office or playroom serve double duty, he says.

The idea behind these spaces are nothing new. Historic homes often have included an upstairs “retiring room” for mothers nursing children or for resting midday, says T. Jeffrey Clarke, an architect in Philadelphia.