Real Estate - John Fee - Coldwell Banker Access Realty

Tips For Sellers

Home Equity Can Be a Game Changer When You Sell

Are you on the fence about selling your house? While affordability is improving this year, it’s still tight. And that may be on your mind. But understanding your home equity could be the key to making your decision easier. An article from Bankrate explains:“Home equity is the difference between your home's value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.You'll start off with a certain level of equity when you make your down payment to buy the home, then continue to build equity as you pay down your mortgage. You'll also build equity over time as your home's value increases.”Think of equity as a simple math equation. It's the value of your home now minus what you owe on your mortgage. And guess what? Recently, your equity has probably grown more than you think.In the past few years, home prices skyrocketed, which means your home's value – and your equity – likely shot up, too. So, you may have more equity than you realize.How To Make the Most of Your Home Equity Right NowIf you're thinking about moving, the equity you have in your home could be a big help. According to CoreLogic:“. . . the average U.S. homeowner with a mortgage still has more than $300,000 in equity . . .”Clearly, homeowners have a lot of equity right now. And the latest data from the Census and ATTOM shows over two-thirds of homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below): That means roughly 70% have a tremendous amount of equity right now.After you sell your house, you can use your equity to help you buy your next home. Here’s how:Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. Investopedia states:“You may want to pay cash for your home if you're shopping in a competitive housing market, or if you'd like to save money on mortgage interest. It could help you close a deal and beat out other buyers.” Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports explains:“Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”The Easy Way To Find Out How Much Equity You HaveTo find out how much equity you have in your home, ask a real estate agent you trust for a Professional Equity Assessment Report (PEAR). Bottom LinePlanning a move? Your home equity can really help you out. Connect with a local real estate agent to see how much equity you have and how it can help with your next home.
Houses Are Still Selling Fast

Have you been thinking about selling your house? If so, here’s some good news. While the housing market isn't as frenzied as it was during the ‘unicorn’ years when houses were selling quicker than ever, they’re still selling faster than normal.The graph below uses data from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes are selling compared to more normal years: When you look at the most recent data (shown in green), it's clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). According to Realtor.com:“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”What Does This Mean for You?Homes are selling faster than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that mortgage rates have come down, but there still aren’t enough homes to go around. Mike Simonsen, Founder of Altos Research, says:“. . . 2024 is starting stronger than last year. And demand is increasing each week.”Bottom LineIf you’re wondering if it’s a good time to sell your home, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the latest updates on what’s happening in your local market, connect with a real estate agent.
Don’t Wait Until Spring To Sell Your House

As you think about the year ahead, one of your big goals may be moving. But, how do you know when to make your move? While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell. Here's why.1. Take Advantage of Lower Mortgage RatesLast October, the 30-year fixed mortgage rates peaked at 7.79%. In January, they hit their lowest level since May. That means you may not feel as locked-in to your current mortgage rate right now. That downward trend in rates has made moving more affordable now than it was just a few months ago.Another reason today’s rates make now a good time to sell? More buyers are jumping back into the market. Many had been waiting on the sidelines for rates to fall, but now that that’s happening, they’re eager and ready to buy. That means more demand for your house. According to Sam Khater, Chief Economist at Freddie Mac:“Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market.”2. Get Ahead of Your CompetitionRight now, there are still more people looking to buy a home than there are houses for sale, which puts you in a great position. But keep in mind, with the recent uptick in new listings, we’re seeing more sellers may already be re-entering the market.Listing your house now helps you beat your competition and makes sure your house will stand out. And if you work with an agent to price it right, it could sell fast and get multiple offers. U.S. News explains:“When there is low housing inventory, sellers could get top dollar for their homes.”3. Make the Most of Rising Home PricesExperts forecast home prices will keep going up this year. What does that mean for you? If you're ready to sell your current house and plan to buy another one, it may be a good idea to think about moving now before prices go up more. That would give you the chance to buy your next home before it gets more expensive.4. Leverage Your EquityHomeowners today have tremendous amounts of equity. In fact, a recent report from CoreLogic says the average homeowner with a mortgage has more than $300,000 in equity.If you've been waiting to sell because you were worried about home affordability, know your equity can really help with your next move. It might even cover a big part, or maybe all, of the down payment for your next home.Bottom LineIf you're thinking about selling your house and moving to another one, connect with a local real estate agent to get the process started now so you can get a leg up on your competition.
Agency - What Buyers and Sellers Must Know

Agency: What Buyers and Sellers Must Know When venturing into the world of real estate, both buyers and sellers are often faced with the question of whether they need representation. The answer is a resounding yes! Having a knowledgeable and experienced agent by your side can make all the difference in ensuring a smooth and successful transaction. In this blog post, we will explore the various types of agency relationships and why they are crucial for both buyers and sellers. Buyers: For buyers, having representation is essential to navigate the complex and ever-changing real estate market. A buyer's agent works exclusively on your behalf, advocating for your interests throughout the entire negotiation and closing process. They have access to a wide network of resources and are skilled in locating properties that meet your specific needs and budget. Why you need representation: 1. Expertise and guidance: A buyer's agent has in-depth knowledge of the local market and can provide valuable insights into neighborhoods, schools, and other amenities. They can also help you uncover potential issues with properties and negotiate the best possible deal. 2. Access to listings: Real estate agents have access to a vast database of listings that may not be available to the general public. They can quickly identify properties that match your criteria and arrange viewings, saving you time and effort. 3. Negotiation skills: Negotiating the best price and terms is a crucial aspect of the home-buying process. A skilled buyer's agent will advocate for your interests, ensuring you get the most value for your investment. Sellers: Selling a property can be a complex and overwhelming process. Having a qualified agent to represent you can make the experience significantly easier. A seller's agent works diligently to market your property, attract potential buyers, and negotiate the best possible terms on your behalf. Why you need representation: 1. Pricing expertise: Determining the right listing price is crucial to attract buyers while maximizing your return on investment. A seller's agent has access to market data and can analyze comparable sales to help you set a competitive and realistic price. 2. Marketing and exposure: A professional agent knows how to showcase your property in its best light. They will create compelling listings, utilize high-quality photographs, and promote your property through various channels to reach a wide audience of potential buyers. 3. Negotiation skills: When offers start pouring in, a seller's agent will negotiate on your behalf to obtain the best possible sale price and terms. They are skilled in handling counteroffers, contingencies, and other complexities that may arise during the negotiation process. Now that we understand the importance of representation, let's explore the different types of agency relationships: 1. Single Agent: A single agent represents either the buyer or the seller exclusively in a transaction. They owe their fiduciary duties solely to their client and work diligently to protect their best interests. 2. Dual Agent: In some cases, an agent may represent both the buyer and the seller in a transaction. This scenario requires the agent to remain neutral and treat both parties fairly while facilitating the transaction. Dual Agency is illegal in some states. When allowed, it must be disclosed and agreed to by all parties to the transaction. 3. Designated Agent: In situations where a brokerage has multiple agents involved in a transaction, one agent may be designated to represent the buyer, while another represents the seller. This allows for a more focused and personalized approach to each party's needs. 4. Transaction Agent: A transaction agent is a real estate brokerage firm that provides customer service to a buyer, a seller, or both in a real estate transaction. A transaction broker may be a single agent of a party in a transaction giving the other party customer service. A transaction broker also may facilitate a transaction without representing either party. In conclusion, whether you are a buyer or a seller, having representation in a real estate transaction is vital. A qualified and experienced agent can provide expert guidance, negotiate on your behalf, and ensure a successful outcome. So, don't hesitate to seek out a trustworthy agent who can help you navigate the complexities of the real estate market and achieve your goals. How you will be represented is your choice.
Experts Project Home Prices Will Increase in 2024

Even though home prices are going up nationally, some people are still worried they might come down. In fact, a recent survey from Fannie Mae found that 24% of people think home prices will actually decline over the next 12 months. That means almost one out of every four people are dealing with that fear, and you might be, too.To help ease that concern, here's what experts forecast will happen with prices this year.Experts Project a Modest IncreaseCheck out the latest home price forecasts from eight different sources (see graph below):The blue bar on the left means, on average, experts think home prices will go up over 2% by the end of this year – not down.Prices aren’t likely to depreciate in 2024 because inventory is still tight and lower mortgage rates are leading to strong buyer demand. Those two factors will keep pushing prices up as the year goes on. As Selma Hepp, Chief Economist at CoreLogic, explains:“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”What Does This Mean for You?Experts are saying home prices will go up this year, and that's good news if you're thinking about buying a home. When you become a homeowner, you want the value of your house to go up. That appreciation is what builds equity and makes homeownership such a good investment over time. Beyond that, expected home price appreciation also means if you’re ready, willing, and able to buy, waiting just means it will cost more later. Bottom LineIf you're worried home prices will come down, don’t be. Many experts believe they’ll actually go up this year. If you have questions or worries about what’s happening with prices in your area, it's a good idea to talk to a real estate agent.
3 Must-Do’s When Selling Your House in 2024

If one of the goals on your list is selling your house and making a move this year, you’re likely juggling a mix of excitement about what’s ahead and feeling a little sentimental about your current home.A great way to balance those emotions and make sure you’re confident in your decision is to keep these three best practices in mind when you’re ready to sell.1. Price Your Home Right The housing market shifted in 2023 as mortgage rates rose and home price appreciation started to normalize once again. As a seller, you still need to recognize how important it is to price your house appropriately based on where the market is today. Hannah Jones, Economic Research Analyst for Realtor.com, explains:“Sellers need to become familiar with their local market and work closely with a local agent to make sure their listing is attractive to buyers. Buyers feeling the pressure of affordability are likely to be pickier, so a well-priced, well-maintained home is the ticket to drumming up big demand.”If you price your house too high, you run the risk of deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine what your ideal asking price should be, so your house moves quickly and for top dollar.2. Keep Your Emotions in CheckToday, homeowners are staying in their houses longer than they used to. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 6 to 10 years (see graph below): This is much more than what used to be the norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.For some homeowners, that makes it even tougher to separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations and the best pricing strategy along the way. Trust the professionals who have your best interests in mind.3. Stage Your Home Properly While you may love your decor and how you’ve customized your house over the years, not all buyers will feel the same way about your vibe. That’s why it’s so important to make sure you focus on your home’s first impression, so it appeals to as many buyers as possible. Buyers want to be able to picture themselves in the home. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. As Jessica Lautz, Deputy Chief Economist and Vice President of Research at NAR, says:“Buyers want to easily envision themselves within a new home and home staging is a way to showcase the property in its best light.”A real estate professional can help you with expertise on getting your house ready to sell.Bottom LineIf you’re considering selling your house, reach out to a local real estate professional to help you navigate the process while prioritizing these must-do’s.