Blog - Deidre Pfeifer

5 Tips To Price Your Home To Sell For Top Dollar

November 6, 2018 by Deidre Pfeifer

5 Tips To Price Your Home To Sell For Top Dollar Many home sellers are confused about how to price their home to sell. It’s definitely challenging to try and find that sweet spot between pricing it low enough so it flies off the market without undercutting the home’s value. Emotions play into the decision, too. If the seller has a lot of sweat equity in the home, or the property is the only place the children have ever called home, owners may tend to place a higher value on the house.

Here’s how to correctly price a home to sell in any market.

Rely On Your Real Estate Agent

Your Realtor is an expert in all matters related to home buying and selling. They have a vested interest in selling your home within a reasonable time frame. As such, they provide a valuable, objective perspective that you should closely pay attention to in order to correctly price your home to sell.

Look At Comps In Your Neighborhood

One thing that your real estate agent does is analyze the comparable properties in your neighborhood. Remember, what a home sells for in a nearby city doesn’t impact how to price your home in a neighborhood far removed. Your prospective buyers will also compare your home’s price to others they could buy in the same neighborhood.

Consider Special Features

Don’t discount special features that your home has, such as built-in shelving units, out buildings, a home movie theater, etc. These give you an advantage in that you can safely set your price a little higher than comparable homes without those features. Be sure your real estate agent mentions them on your MLS listing so buyers understand the higher asking price.

Be Prepared To Make Price Adjustments

Remember that you might have to come down from your asking price, so keep that in mind when you and your real estate agent set that number. Don’t expect that you’ll get exactly what you’re asking for unless you’re in a high demand area. When you give yourself some margin, you gain negotiating power you can use to make a sale happen.

Consider Your Own Finances

Pricing your home to sell is only one factor to consider. The larger equation takes your entire financial picture into account. Figure out how much you owe, how much commission you’ll pay and any sales concessions, if any, you’d be willing to offer a prospective buyer. This due diligence ensures you’ll be satisfied with the outcome after all the money has changed hands.

Pricing your home to sell correctly is a critical part of making the transaction happen. Remember that your real estate agent is the best judge of the best price point, but you can always point out the reasons why you’d like it higher or lower.

What’s Ahead For Mortgage Rates This Week – November 5th, 2018

November 5, 2018 by Deidre Pfeifer

What's Ahead For Mortgage Rates This Week - November 5th, 2018 Last week’s economic news included readings for Case-Shiller Home Price Indices, Commerce Department readings on construction spending and the University of Michigan’s reading on consumer confidence. Labor sector reports on jobs growth and the national unemployment rate were posted along with weekly readings on mortgage rates and first-time jobless claims.

Case-Shiller: Home Price Growth Lowest in 20 Months; Construction Spending Falls

Home price growth hit its lowest pace in 20 months according to Case=Shiller’s 20-City Home Price Index for August. Home prices grew by 5.80 percent year-over-year as compared to July’s growth rate of 6.00 percent.

Sales have slowed in recent months due to rapidly rising home prices, high demand for homes and slim inventories of available homes. Increasing supplies of homes for sale are a sign that housing markets are balancing to accommodate prospective buyers.

Construction spending was flat in September at a seasonally-adjusted annual rate of $133 trillion. Analysts expected 0.20 percent growth in construction spending based on August’s growth rate of 0.80 percent. The slowdown in spending was likely due to seasonal dips in construction activity as winter approaches.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week; rates for 30-year fixed rate mortgages averaged three basis points lower at 4.83 percent. Rates for a 15-year fixed rate mortgage averaged 4.23 percent. Rates for 5/1 adjustable rate mortgages were 10 basis points lower at 4.04 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims were lower last week with 214,000 new claims filed; analysts expected 212,000 new claims to be filed based on the prior week’s first-time claims 216,000 new claims filed. Reported. The Commerce Department reported 250,000 public and private sector jobs added in October. ADP added 227,000 private sector jobs in October. The national unemployment rate was unchanged at 3.70 percent.

The University of Michigan’s Consumer Confidence Index reported an index reading of 137.90 in October as compared to September’s reading of 135.30 and an expected reading of 136.40.

What‘s Ahead

This week’s scheduled economic reports include the post-meeting statement from the Fed’s Federal Open Market Committee along with weekly reports on mortgage rates and new jobless claims.

Last week’s economic news included readings for Case-Shiller Home Price Indices, Commerce Department readings on construction spending and the University of Michigan’s reading on consumer confidence. Labor sector reports on jobs growth and the national unemployment rate were posted along with weekly readings on mortgage rates and first-time jobless claims.

Case-Shiller: Home Price Growth Lowest in 20 Months; Construction Spending Falls

Analysts said that slowing growth of home prices could signal that home prices have reached their peak; Inventories of homes for sale are near the six-month inventory reading considered a normal inventory of homes for sale. Sales have slowed in recent months due to rapidly rising home prices, high demand for homes and slim inventories of available homes. Increasing supplies of homes for sale are a sign that housing markets are balancing to accommodate prospective buyers.

Mortgage Rates, New Jobless Claims Fall

The University of Michigan’s Consumer Confidence Index reported an index reading of 137.90 in October as compared to September’s reading of 135.30 and an expected reading of 136.40.

What’s Ahead

This week’s scheduled economic reports include the post-meeting statement from the Fed’s Federal Open Market Committee along with weekly reports on mortgage rates and new jobless claims.

5 Real Estate Professionals Who Assist You When You Buy Your First Home

November 2, 2018 by Deidre Pfeifer

5 Real Estate Professionals Who Assist You When You Buy Your First Home So you’re set to buy your first house. But where do you begin?

Buying a house for the first time can be nerve-racking. Most advice articles often concentrate on the steps involved in buying a house. To streamline things, let’s focus on the people who will likely be involved in your purchase transaction.

Concentrating on the finding the right professionals can help you navigate the entire buying process easier and more comfortably. Most people start with their home loan financing or locating a property with a real estate agent. Many of the other people involved in the transaction will be referred by these two important folks.

Apart from you and the seller, a number of other people will probably get involved. Some of them get involved throughout the whole process, others pop in and out, while others are optional. Below is an overview of five people involved.

Mortgage Loan Officer

First-time home buyers rarely pay all cash for their property. Most of them borrow money to purchase the property. As such, your mortgage loan officer becomes part of the process from the start to the end. From the moment you inquire if you can afford to the time of transferring ownership, your loan officer will be there.

Real Estate Agent

Most first-time buyers employ a real estate agent to assist them purchase their houses. Agents can help you find the house, draft your offer and advise you on ways to negotiate with the seller. They will likely help you circumnavigate through inspection and closing steps.

Settlement Agent

A settlement agent or a closing agent becomes involved from the moment you reach an agreement with the seller until the transfer of ownership is complete. In most cases, a settlement agent is most involved in the last days before you assume ownership.

Home Inspector

Home inspectors get involved for a short period of time. Most of them pop in, carry out an inspection, write a report and they’re gone. You may never hear from your inspector again. Your real estate agent or mortgage loan officer will most likely be able to recommend a trustworthy home inspector.

Appraiser

Mortgage lenders usually ask appraisers to estimate the market value of the house you’re purchasing. An appraiser makes sure that your lender isn’t advancing you more money than the actual market value of the house. Though the appraiser reports to your lender, you usually pay for the appraisal in your home loan closing costs.

Please keep in mind that legal requirements for transferring house ownership vary from one state to another. For instance, some states require a real estate attorney in the transfer of ownership. Check with your preferred real estate professional to get the details in your local market.

If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.

5 Trends Shaping Green Homes

November 1, 2018 by Deidre Pfeifer

5 Trends Shaping Green Homes Think green home design is a fad? Well, think again. Sustainable home designs are gaining popularity at a breakneck speed. In 2017, green homes accounted for more than 60 percent of family home builder’s portfolios, according to a survey conducted by the National Association of Home Builders.

But what is really driving green home designs? In this post, we explore five trends shaping sustainable homes.

1. Energy Efficiency

Home designs that cater to consumers’ need to reduce utility bills continue taking center stage. From net-zero energy homes to energy conserving products, home buyers want to save money. Moving forward, industry experts predict that ultra-efficient building designs like net-zero-energy or passive home designs will continue dominating the industry.

2. Health

Most home buyers are more aware of the dangers of chemicals than before. As such, most of them are seeking non-toxic interior products.
The manufacturing industry trend is leaning towards healthier materials. As the demand rises and prices stabilize, these products are more likely to be game changers. Most home designs will probably focus on eliminating troublesome chemicals such as VOC paints and phthalate free flooring.

3. Home Performance And Monitoring

Home energy audits are major factors considered by consumers, and home performance is key. Some cities like Austin expect new homes to undergo performance tests before recommendation for resale.

Energy software programs allow home builders and remodelers to monitor how slight changes in home designs can save thousands of dollars in utility bills. Homeowners are also benefiting from energy monitoring devices to track their household energy consumption.

4. Water Efficiency

80 percent of American states anticipate water shortages in a few years, says a Government Accountability Office survey. Therefore, wise water usage is becoming crucial as consumers demand for water efficient homes. Most builders are already getting their homes HERS Rated as consumers look for ways to save dollars from rising water prices.

5. Biophilic Home Designs

Nature is beneficial to us biologically, physically and psychologically. However, in the last century, home designs separated us from nature. Today, biophilic designs (connected to nature) strive to reverse that by integrating nature into homes. Modern building can capture the sun’s movement using windows, architectural details and patterns, connecting us to the season, time of day and our inner biorhythms.

If any of these green trends are on your list of must-haves for your new home, be sure to tell your trusted real estate professional.

Case-Shiller: Home Price Growth Slows to 20-Month Low

October 31, 2018 by Deidre Pfeifer

Case-Shiller Home Price Growth Slows to 20-Month Low Home price growth slowed to its lowest rate in 20 months according to the 20-City Home Price Index issued by Case-Shiller. After years of dismal readings, Las Vegas, Nevada led the cities included in the index.

Top three cities for August included Las Vegas, Nevada where year-over-year home prices grew by 13.90 percent. San Francisco, California saw home prices increase by 10.60 percent year-over-year and Seattle, Washington home prices rose by 9.60 percent year-over-year. August’s 20-City Home Price Index overall reading fell below six percent for the first time in a year.

Cooling Home Price Growth Helps Balance Housing Markets

Cooling home prices have been forecast for months, but August’s reading indicated that home prices have peaked and that current home price growth rates may ease pressure on overheated real estate markets, where high home prices, limited inventories of homes for sale and rising mortgage rates have limited buying opportunities. Home price growth remained above current rates of wage growth and inflation, but slower appreciation of home values will help balance the housing market from an extreme sellers’ market to more moderate market conditions.

Rising Mortgage Rates Not Sole Cause of Easing Home Prices

Dallas Federal Reserve President Robert Kaplan recently said that rising mortgage rates were not the only cause of slowing growth of home prices. Mr. Kaplan said that multiple factors including rising building costs, labor shortages and rising mortgage rates combined to ease record demand for home; Mr. Kaplan said that the Fed is closely monitoring the economy and housing markets and mentioned that he had previously forecast slower housing markets as 2019 approaches.

Recent stock market sell-offs boosted the 10-year Treasury note price, but this momentum appears to be settling. Fixed mortgage rates are connected to yields on 10-year Treasury notes. Yields rise as note prices decline. Mortgage rates rise as the 10-year Treasury yield rises. While nothing is set in stone, this situation indicates that mortgage rates could continue to rise.

Rising mortgage rates and strict mortgage lending requirements have barred home buyers concerned with affordability and less than perfect credit profiles. As prospective home buyers abandon their home searches, demand for homes should ease and may further reduce gains in home prices.

If you are interested in buying a new property or selling your current property, contact your trusted real estate agent to discuss market specifics in your area.

4 Reasons To Buy Or Sell A Home This Winter

October 30, 2018 by Deidre Pfeifer

4 Reasons To Buy Or Sell A Home This Winter The winter real estate market tends to be significantly different from other seasons. Buyers and sellers alike are often driven by different reasons than at other times of the year. That can be a win-win for both motivated buyers and sellers in the right climate.

Many homeowners list their property during spring and early summer hoping to maximize their return on investment during the competitive seasons. Families with school-aged children tend to be highly motivated buyers because they prefer not to take a child out of school mid-term.

Given the nationwide housing shortage, those seasons were hot seller’s market with Millennials scooping up listings quickly at or near asking price. But since the dog days of summer, the housing industry has changed substantially.

These are four meat-and-potatoes reasons to buy or sell property this winter.

Inventory Shortage: During the first six months of 2018, the national housing shortage stood at a 20-year worst. That was great news for sellers who enjoyed higher prices and fewer days on the market. It wasn’t great for buyers who were in heated competition for homes. A shortage is expected during the winter months. That could be good news for sellers. But there is likely to be less competition, and that may allow buyers a little wiggle room in negotiations.

Interest Rates: The Fed announced that interest rates would inch up in four increments by the end of 2018. While that may seem like bad news, it could be helpful for motivated buyers and sellers this winter. The rate increases will likely result in listing prices leveling off, and that could help buyers from being priced out of the market. The Fed also announced that rates would likely increase further by the end of 2019, which should motivate people to buy sooner rather than later. Simply put, the winter market forecast looks hot.

Tax Cuts: The Tax Cuts and Jobs Act helped many Americans keep more of their own money and ratchet up the economy. A recent announcement from the White House says a middle-class tax cut of 10 percent is expected to be pushed through Congress. Rates may eek up but keeping another 10 percent of your money can provide a great deal of mortgage bandwidth.

Employment Opportunities: As mentioned above, spring and summer markets are often driven by family considerations. The winter market tends to be driven by others. One of the key reasons buyers and sellers relocate during the winter is driven by jobs. It is common for large and mid-sized companies to hire for the first of the year. Given the tremendous opportunities in this robust economy, higher salaries and dream jobs may present themselves. This winter could be a carpe diem homes market.

Although winter housing markets may have been sluggish in some years, it’s been a long time since everyday Americans were immersed in a thriving economy. With unemployment at a near 50-year low and wages rising, this winter could be a winner for buyers and sellers.

Whether you are buying or selling, your trusted real estate agent is available to help you navigate the market any time of the year in your area.

What’s Ahead For Mortgage Rates This Week – October 29th, 2018

October 29, 2018 by Deidre Pfeifer

What's Ahead For Mortgage Rates This Week - October 29th, 2018 Last week’s economic news included readings on sales of new homes and pending home sales. A reading on consumer sentiment was also released along with weekly reports on mortgage rates and new jobless claims.

Sales of New Homes Slide to Near 2 – Year Low

According to Commerce Department readings on new home sales, the pace of sales slipped close to a two-year low in September; new homes sold at a seasonally-adjusted annual pace of 553,000 sales.

September’s reading was 5.50 percent lower than for August and was 13.20 percent lower year-over-year. Analysts expected a reading of 620,000 sales; August’s reading showed an annual pace of 585,000 new homes sold.

Real estate pros reported a 7.10-month supply of available homes, which was a six-year high. A six-month supply of homes for sale is considered a normal inventory in many markets.

Home prices had a median of $320,000 in September, which was 3.50 percent lower year-over-year. Strong demand for homes coupled with limited supplies have caused home prices to rise and buyers to compete with cash-buyers and ever escalating home prices. Rising mortgage rates and few choices of available homes have sidelined moderate and first-time buyers.

Pending Home Sales Rise in September

The National Association of Realtors® reported rising pending home sales, which provided hope for lagging home sales. Pending sales are sales for which a purchase contract is signed but the sale has not yet closed. Pending home sales had an index reading of 104.6 in September as compared to 104.1 in August. No change from August’s reading was expected in September. The pending sales index pending home sales index was one percent lower year-over-year.

Pending sales rose 4.40 percent in the West; The Midwest posted a gain of 1.20 percent and the South posted a negative reading of – 0.40 percent. The South posted a negative reading of -1.40 percent in pending home sales.

Pending home sales are considered a predictor of completed sales and new mortgages.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week. Rates for a 30-year fixed rate mortgage rose one basis point to 4.86 percent; the average rate for a 15-year fixed rate mortgage rose three basis points to 4.29 percent and the average rate for 5/1 adjustable rate mortgages was four basis points higher at 4.14 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose last week to 215,000 new claims filed. Analysts expected no change from the prior week’s reading of 210,000 new claims filed. The University of Michigan reported a dip in its consumer sentiment index for October. September’s reading was adjusted from and index reading of 99 to 100.1. October’s reading was 99. Lower consumer sentiment was based on stagnant wage growth according to analysts.

What‘s Ahead

This week’s scheduled economic news includes readings from Case-Shiller on home prices, Labor sector reports on private and public sector employment and the national unemployment rate.

4 Housing Market Trends To Expect In 2019

October 26, 2018 by Deidre Pfeifer

4 Housing Market Trends To Expect In 2019 Just like Fantasy Football players try to predict who will score the most touchdowns, pass for the most yardage and win the Super Bowl, people with an eye on the real estate market also engage in speculation. Like sports fans, expectations are often driven by statistics from the previous season.

That being said, these are some of the important housing market trends buyers and sellers can expect in 2019.

1: New Construction To The Rescue (Sort Of)

The 2018 housing shortage has been well documented. The inventory shortfall has driven up listing prices and created a powerful seller’s market. The law of supply and demand would indicate that the construction sector will ramp up new home building in 2019.

Materials and labor costs are relatively modest when compared to new homes selling for approximately $150 per square foot on average. Home prices are expected to rise throughout 2019 creating more opportunity for construction outfits to build custom and spec houses. It is unlikely that new construction will keep pace with the high demand for homes. But buyers can expect more availability and custom-design options by working directly with builders.

2: Millennials Will Drive The Housing Market (Again)

In 2018, the full presence of Millennials was felt in the housing industry. There are now an estimated 75 million adults who fall into the demographic and they were reportedly responsible for upwards of 34 percent of all recent single-family home sales. Millennial home buyers were significantly responsible for higher than usual competition for starter homes in 2018.

At the older end of the spectrum, many are now in their mid-30s and fully engaged in careers. At the younger end, many are graduating from college and looking for starter homes as they enter the workforce. With more looking to buy first homes and others trading up, sellers would be wise to remain keenly aware of what Millennials want. Having grown up immersed in technology, Smart homes, and other integrated technologies tend to be attractive to this class of buyer.

3: Waiting May Result In Higher (But Still Low) Rates

The Federal Reserve continues to roll out interest rate increases against the fast-growing economy and employment stability. This did not come about unexpectedly and should not frighten off home buyers.

The Fed dropped rates to historic lows in 2008 after the Great Recession hit in an effort to stimulate growth. These days, business is thriving and there are reportedly 7 million unfilled jobs. All this good news means that the Fed will likely continue its planned increase throughout 2019. However, rates are likely to remain relatively low and buyer friendly.

4: Economy Expected To Remain Robust

To say we live in unusual times would be something of an understatement. The country has been embroiled in a series of tariff wars and trade negotiations many thought would cripple the GDP. The exact opposite seems to have occurred.

With the NAFTA deal now being redone as the USMCA, trade with Canada and Mexico are expected to be more beneficial for American businesses and wages. The administration is currently reworking a trade deal with the EU and a zero-tariff goal is on the table. The U.K. is in the midst of Brexit and a more beneficial trade agreement is expected there as well.

In terms of the dust-up with China, manufacturers appear to have simply shifted their output to other plants to avoid paying hefty tariffs. The price of goods appears to be staying low and the U.S. Business Confidence Index remains over 100 percent. These trends seem to overwhelmingly favor the American economy and housing market in 2019 and beyond.

Whether you are buying or selling, your trusted real estate professional is aware of the trends in your area and ready to help you find success with your real estate transactions.

Inexpensive Updates That Will Appeal To Buyers

October 25, 2018 by Deidre Pfeifer

Inexpensive Updates That Will Appeal To Buyers While you could spend tens of thousands of dollars or more completing a home makeover, there are more than a few budget-minded ideas that you may consider.

Add Color To Molding And Trim

One cool idea in home décor and interior design is to get rid of the standard white trim and molding and to add color to these areas. Neutral hues like grays and browns have universal appeal, or you can give your space a more contemporary look by adding black to these areas. Generally, you will want a more neutral color like a creamy beige on the walls when executing a look with colored trim.

Another idea is utilizing a color consistent with your wall color as opposed to a contrasting or complimentary color. This helps the trim blend in and almost disappear. This is an especially effective concept when used in small rooms, narrow halls with several doorways or in rooms with low ceilings.

Update Light Fixtures

If you have a little more money to spend, you may consider updating your light fixtures. There are rather affordable yet stylish fixtures available in a wide range of finishes. When your rooms are empty or staged to perfection, the light fixtures can easily set the tone of the room and may be focal points. Outdated fixtures may have limited appeal to buyers who are looking for a home that is modern and current with today’s trends.

When thinking about lighting, don’t forget to consider updating your outdoor lighting. The right fixtures may add an additional element of curb appeal that many buyers appreciate.

Redefine Outdated Spaces

In some older homes, some of the rooms may have originally been built with outdated uses in mind. Today’s savvy buyers may be looking for a home with an exercise room, a media room or a study rather than a formal living or dining area. With this in mind, you may consider how you can stage your home to show that it can be used for modern purposes.

This may simply mean moving your formal dining room set into storage, adding French doors and investing in an affordable desk and side chairs for staging purposes. Murphy beds that offer space for guests that can be hidden away when not in use are a clever way to show dual purpose. Turning a closet or the area under the stairs into a small office is also a clever use of space.

Your trusted real estate agent should be able to offer additional suggestions to help update your home and get it ready for market.

You Ask, We Answer: What is Private Mortgage Insurance or ‘PMI’ and How Does It Work?

October 24, 2018 by Deidre Pfeifer

You Ask, We Answer: What is Private Mortgage Insurance or 'PMI' and How Does It Work? For many homeowners, their mortgage payment contains more than just principal and interest. A little something called PMI could be representing a significant portion of that payment, and it’s important for home buyers to understand this cost.

What Is PMI?

PMI stands for private mortgage insurance, or sometimes just mortgage insurance. However, it isn’t intended to mitigate risk for the homeowner, but rather the bank.

Statistics show that when a home buyer puts less than 20% down on a home, he/she is much more likely to default. So, requiring these buyers to carry PMI helps the bank hedge their losses in the event of a default.

It’s important to note that the home buyer doesn’t shop for PMI; this is all taken care of by the lender. However, the cost of PMI should be calculated out well before closing to help the home buyer be aware of his/her final mortgage payment.

Who Needs PMI?

Who will need to carry PMI depends on factors like the credit rating of the buyer and the exact mortgage being sought out. However, it’s safe to say that most home buyers with less than a 20% down payment will be required to carry PMI.

Does PMI Ever Go Away?

Eventually, PMI can be removed from a mortgage once enough of the principle has been paid down or enough years have passed.

It’s important for home buyers to fully understand the terms of their PMI requirement. Sometimes, it will be automatically removed once 20% of the house has been paid off, while other times, refinancing may be required.

Should Those Who Cannot Put 20% Down, Not Buy A House To Avoid PMI?

Unfortunately, this is not an easy question to answer. Yes, PMI is an extra cost that needs to be calculated into the cost of the home – but putting off a home purchase isn’t necessarily the right course of action.

For many families, it’s financially challenging to save up 20% of the cost of a home. After all, in 2010, the median home price of new homes sold in America was $221,800. A 20% down payment on such a home would be $44,360.

However, many find that it’s still cheaper, or just financially wiser, to buy a home with PMI than to continue renting. Each potential home buyer should call their real estate professional to get more information about market trends in their area and to decide the appropriate course of action.

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