Atlanta Real Estate BlogRecently posted or modified blog posts by tag - Pricinghttps://www.premieratlantarealestate.com/blog/Copyright PremierAtlantaRealEstate.com2023-03-24T06:37:20-07:00tag:premieratlantarealestate.com,2012-09-20:3054How To Show Value To Clients Using Statistics - Absorption Rates<br /><br />Sometimes, the best way to demonstrate value when someone asks the question “how’s the market?” is by using custom statistics. Today I’m going to show you how to find the absorption rate and relate it into meaningful information that shows your professionalism and expertise to win a new client and you can do this literally in less than 10 minutes<br /><br />Not everyone wants to know all the details when you dive into real estate market statistics so first make sure you know your audience. It can demonstrate your professionalism and your expertise for some and it can bore someone else to death.
This is something that is relatively easy to do and once you are proficient, it can be done pretty quickly so let’s get started.
I’ve got a hypothetical potential client that’s on the fence about selling his home and buying a new one. He’s asked me about the market and heard it’s a good time to sell. I’ve already asked what it would take to get him to sell and he’s unsure. Since he hasn’t made a decision about selling or even to use me as his agent, I’m going to position myself as his go-to expert for all things real estate. I’ll use market statistics specific to his situation and relate it to the surrounding market as an opportunity to further our conversations and demonstrate my expertise and value to help secure this person as a client. If I can demonstrate, objectively, that this is a good time to sell and not just because I say so, I build trust and rapport because I get to keep communicating with him and I give him something he currently doesn’t have - market statistics which are repeatable, provable and objective to decide if it’s a good time to sell.
The first thing I need is the location of the house where he lives. Since these stats are custom, you’ll need to decide on some of the parameters for your stats. It can be cities, neighborhoods, school districts, price point, or something else and it will usually be an area + a price point.
When I sit down at the computer to do this, I’ll usually start with the neighborhood if possible and work my way out until there is enough data to be meaningful. If the neighborhood is large, you may have all you need. If not, you may need to look within a mile of the home or something different, like the high school district. Try to keep this part small if possible.
This is the data I need to get started: # of active listings, # of under contract listings, and # of sold listings (I like to use 3 months back if possible but it can be different, and most real estate is seasonal so think about that also) and make sure you are using a bracketed price range around your client’s price.
I’ve gone to my MLS and looked at his neighborhood and his price point and I don’t have enough data to be meaningful so here is what I used for my example:
I extended my search to the high school district and price point and found there are 8 homes for sale, 8 more under contract, and 10 sold in the last 3 months. I’m going to write this down somewhere so I don’t forget. Now I need to find the absorption rate for homes like his. This is also known as the supply of homes or inventory levels. This is the time it’ll take to sell the current active listings. Remember, 6 months or less is basically a buyer’s market, and 6 months or more is a seller’s market for most homes here in Atlanta but it may be different for you and it changes for the luxury market as well. To find the absorption rate, you take the number of available homes divided by the average sales in a month.
We know that in the last 3 months, 10 sold so 10/3 = 3.3 homes sell on average every month.
Stay with me here…
Remember that we found that there are 8 homes available and now we know that 3.3 sell each month. Simply divide those 2 numbers and you’ll have your absorption rate so 8 active listings / 3.3 sales per month = 2.42 months of inventory and now we know it’s a seller’s market for this home and homes near him that are at his price point.
You could stop here but in my experience, you will be making a mistake if you do. When working with small data sets, it’s possible that an outlier can dramatically alter the reality of what’s really going on so we need to repeat these steps on a larger and comparable sample to verify that what we found is in fact correct. By doing so, you increase the likelihood that your stats are correct.
Since we used a high school district for our starting numbers, now let’s use the entire city and compare it to the high school stats.
So, the same thing here again, but more quickly this time. In my example case, the logical next larger size up from the high school district is to use the entire city so that’s where I’ll start. But wait - when I ran the city numbers at the price point, there were only 17 homes available. I’d really like a sample that’s bigger than that since it isn’t really much bigger than my original sample in the school district. Only you can figure this part out because you are the expert in your area. For me, I’m going to draw a map search in my MLS of what I know to be a mostly homogenous housing stock so I can get more data.
So in my bigger “example” area, there are 50 active, 72 pending, and 74 sold homes at his price point in the last 3 months which is 74 homes/3 months=24.67 sales/month. Divide 50 active by 24.67 and we see an absorption rate of 2.02 months. Even lower than in our small sample.
What we’ve done is confirm the small market is probably accurate for what’s really going on anywhere near my potential client’s house and I can inform him that it’s a seller’s market and a great time to capitalize on selling.
Now, if you were paying attention, I had you pull pending listings also and I haven’t talked about those yet.
Remember these 2 statements:
Closed sales are lagging indicators<br />Pending sales are leading indicators
One is based on the past (closed sales) and one on future sales (pending).
In our larger sample area, we had 50 active listings and 72 more under contract. If the number of pending sales is greater than the active listings, it’s likely to continue as a strong seller's market. This is additional information you can use to illustrate “how’s the market?” Answer.
When I go back to him with this information, I’m going to explain that I ran some custom statistics on homes like the one he owns and compared it to the larger market around their home to be sure that we had some very accurate information that’s critical to helping him decide if now is a good time for them to sell his home.
I'll explain what an absorption rate is and let him know that with only about 2 months of inventory, now is as good of a time to sell as we’ve seen historically. It could stay like this for the next several months or it could change. None of us are smart enough to truly predict what will happen in the future but we do know what’s happening now and that’s the best way to make an informed decision.
So that wraps up a quick how-to on generating custom market statistics for clients to demonstrate your expertise and value.
If you can learn how to run these stats for your clients, you’ll be seen by them as a trusted ally and someone who’s a true professional and worth doing business with.
I hope you found this video helpful and if you did, please consider subscribing to my channel so you will get notified of more videos like this one. Thanks for watching!2021-03-01T04:35:00-07:002021-03-01T04:43:17-07:00Ryan Wardtag:premieratlantarealestate.com,2012-09-20:2995Make The Most Money With Staging To Sell Your Home<br /><br />Click Below To Subscribe To My Channel:
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Edited Transcript:
Here at Premier Atlanta Real Estate, we think staging is so important, we offer a complimentary staging consultation for all of our seller clients. An objective and trained stager will be able to improve the presentation of a home, and help to sell the home for more money and in less time than a home that’s not staged properly. A recent study from the National Association of Realtors found that 83% of buyer’s agents interviewed said that a staged home made it easier for a buyer to visualize the property as their future home and according to buyers surveyed, the 3 most important rooms that needed to be staged are the living room, master bedroom, and kitchen.
Along with staging, we typically find there are a few additional basics that need to be addressed including; decluttering, professionally cleaning the inside of the house, sprucing up the curb appeal, and addressing any deferred maintenance items. We can generally help with getting professionals to get these items completed for our clients if need be. In addition, we offer our Premier Design and Remodel Service for those that want to take it to the next level and transform their property to ensure it sells for top dollar. I’ll post a link to that video series for you as well.
Q. Ok Lisa, I have a few questions for you and the first is…what is home staging to you - and how is it different than decorating a home?
A. When we are designing a home for a homeowner, we are specifically choosing colors, and design for the homeowner and their tastes only. But when we are staging a home for sale, we must take an opposite approach and open up the design to appeal to the largest group of people, which usually means, a less specific design and a more neutral palette.
Q. When you meet with a client for a consultation, what’s the first thing you do and say? What does the process look like from your perspective?
A. When I meet with a client I make sure that they know that everything I advise them is completely optional, however, the more of the things on the list they do, the higher the probability of them selling the home quickly for the most amount of money. I am there to help them obtain their goals!
Q. How much money does a seller have to spend to get their home ready for sale?
A. Obviously that depends on the condition of the home, however, sometimes, it's literally all just lots of labor! Decluttering and getting a jump on packing up is key to staging your home for sale, and that doesn’t cost a thing! However, sometimes a home needs a deep cleaning or carpets cleaned or some fresh paint, so it is anywhere from a few hundred dollars to a few thousand. But anytime we invest in the appearance and modernization of the home, it usually is an investment and helps get the home sold easier!
Q. Can’t a seller just declutter to get the home looking good for buyers?
A. Yes, as I said, a home that has been maintained well and is already somewhat updated can certainly just be decluttered, some furniture rearranged or removed and some nicely staged décor items added and be perfectly ready for pictures and showings!
Q. What if a home is vacant? What do you do or recommend?
A. For a vacant home, I am not usually an advocate for bringing in furniture, which can quickly get very expensive and start cutting into your profits. However, it's key that a vacant home is very clean because there is no hiding anything with rugs or furniture. I usually bring in some nice décor items to brighten up the bathrooms and the kitchen on a vacant home, maybe a pop of color. We can also do some virtual staging, where we digitally add furniture, and rugs, and décor to a picture of an empty room to help buyers be able to picture the potential of a room.
Q. What are the 2 most important rooms to get right in your opinion?
A. The heart of the home is the kitchen. It’s key that there is no clutter in the kitchen, we want clean surfaces to show off the counter space. Hide the trash cans and all the extra appliances. The master bathroom is also an important room, make sure all personal items on not on display while other people are touring your home, this includes your soaps and shampoos and daily used items that you may normally just leave in there, make sure to remove all of that stuff. And of course, the main living area, which makes the first impression!
Q. What can a homeowner do before you arrive to prepare for a staging appointment?
A. When I arrive, I am going to ask you to give me a tour of the home, then I like to be able to walk around the house alone freely and take my time to make notes of what I may advise you to do. The best way to prepare is to simply open your mind, and know that your home is beautiful, I am just trying to help you make it appeal to the most amount of people we can to get those people into your home so you can get it sold quickly!
Q. 2 things I notice many sellers overlook in the presentation of their home is the lighting, or, color of the lighting, and the curb appeal from the street to the front door. How important are these items and what are some easy fixes homeowners can do to get this right?
A. Great point! There are so many different light bulbs out there today, different hues of color, blue light, white light, yellow light, soft light….I usually advise making sure all bulbs are replaced and working and make sure they are all the same color and temperature! Two or three different hues in one room can make walls and cabinets appear to be different color tones and an array of lighting colors can ruin the appeal of a room. And curb appeal is a definite must, the first impression is from the curb, so freshen up your pine straw, or mulch, mow the lawn, pressure wash the house. Make sure your home is gleaming when that buyer steps out of their car.
Q. Why do you think staging a home actually works?
A. Staging a home is imperative to get the home ready, removing “you” from the home and helping to make buyers comfortable and to be able to picture themselves in the home is key to helping them make the decision to purchase your home!
Q. Do you have any final thoughts or advice for a homeowner getting ready to put their home on the market?
A. Remember, you are selling the home, not you and your family and your furniture, so we have to focus our marketing on the home itself! This is how staging the home helps accomplish that! This is great advice.
Thank you Lisa for sharing your expertise with everyone today and thanks to all of you for watching. As with all of my videos, if you enjoyed this video please make sure you hit the like button and <a href="https://www.premieratlantarealestate.com/Premieratlantarealestate?sub_confirmation=1">subscribe to my channel</a> for more real estate content like this and if you’re local and are thinking about selling your home, drop a comment below or give us a call. Thanks for watching!<br /><br />Today we’re gonna talk about getting your home ready to sell and specifically staging your home so that when it sells, it does so for the highest possible price. My name is Ryan Ward, I’m the broker and owner of Premier Atlanta Real Estate and I’m going to be joined by my wife, co-owner and design and staging specialist, Lisa Ward to discuss the most important items we recommend every homeowner get right before listing their home for sale.2021-02-02T09:39:00-07:002023-03-24T06:37:20-07:00Ryan Wardtag:premieratlantarealestate.com,2012-09-20:2975Housing Market Crash In 2021 - What The Media Missed!<br /><br />Click Below To Subscribe To My Channel:
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Transcript of video:
My name is Ryan Ward, I’m the broker and owner of Premier Atlanta Real Estate and I’m going to try and add the proper context around these housing market stories so you can have the correct perspective and be better able to draw more accurate conclusions about what may or may not happen in the real estate market so you can feel comfortable and confident buying, selling or investing in real estate.
News and conventional media are still important sources of current information. Just be aware that context matters and news media, no matter how hard they try, are not really experts at anything including the real estate market. Their job is to report what they believe to be important stories - which is fine. However, if you see or hear something on the news of interest or concern, I recommend further investigation into what all of it means before drawing conclusions. There are plenty of people, including myself with an opinion of what the future holds, and the truth is, none of us really know for sure what it will look like but reading the tea leaves and gathering all of the pertinent information correctly can at least give us a more educated prediction than a journalist reporting a story.
The most frequently cited reasons concerning a pending crash basically revolve around a few basic ideas:
Home prices are rising too fast and they are becoming unaffordable
Unemployment is/was through the roof and too many people are in forbearance and that will lead to a wave of foreclosures that will flood the market causing prices to plummet
Rising interest rates could kill the market
Recent citations of increasing mortgage rates and news stories of month to month sales slowdowns
In a previous video on the Atlanta real estate market, I looked at a Freddie Mac study about forbearance that provides a great deal of evidence that we will ultimately have far fewer foreclosures than some will lead you to believe. When you look at all of the available information on forbearance it’s pretty clear it won’t happen the way worst case scenarios play out unless something unforeseen takes place to alter our economy in ways we can’t yet imagine. We’re literally months away from the country and the economy reopening fully and even places with the most severe shutdowns are now coming out with statements about the need to reopen as soon as possible. The latest Mortgage Bankers Association report shows a reduction in the total number of homeowners in forbearance and I think it’s reasonable to expect that number to shrink as the vaccine gets implemented and more of the economy opens and more jobs return. I’ll post a link to the section in my last video and to Freddie Mac’s article if you would like to learn more about it. Just know there will be no foreclosure wave in 2021 especially with the extension of the foreclosure moratorium through the end of March.
In my intro, I noted that many are throwing around the words bubble and crash. For some, it’s just a headline grabber to get views and ratings and for others, I think there’s a sincere belief we are currently in a bubble. I’ve been selling real estate since 2004 and have had a team of agents since 2006 and we experienced the real bubble, first hand. Back in the last housing crash, under qualified owners became speculators because basically, if you could fog a mirror, there was a lender ready to give you money and the rush was on and demand soared. What happened then was that underqualified owner-speculators and over-easy credit guidelines set the ball rolling for the bubble in 2006-2007. There were of course more intricate and nuanced reasons related to the mortgage and finance industries but the easy credit led to a speculative frenzy.
It’s very different now. There’s no speculative frenzy and there aren’t any over-easy credit opportunities occurring like last time and, speculation really is one of the requirements and main ingredients for a bubble. However, prices really are rising and doing so fast so it’s very easy to see how it feels like a bubble. It’s at this point you start to look for statistics that confirm your belief, confirmation bias sets in, and some objectivity is lost.
For example, the chart you see here shows housing prices calculated with inflation. This is a scary chart and if you look, you do see what appears to be a bubble. I really think it lacks some context because it’s missing how important interest rates are when we think about the housing market. John Wake of Real Estate Decoded has a great article on this and I’ll post a link to his analysis for you. He created a chart that shows something very different than the first scary chart I put up after you adjust for rising prices, inflation, and interest rates. Surprisingly, he found that if you have a mortgage today, your payment is lower today than it was in 1990. Hard to believe this could be the case and makes it that much harder to believe we are in a bubble as well.
The next thing you may have heard is that sales are down for 3 consecutive months. You know what? They are supposed to be. It’s not a news story!
Here’s an important tip:
Anytime I hear sales data in a format that compares one month of sales to the previous month, I get a little suspicious and you should too. A better measure is to look at current sales in a month vs the same month one year earlier because it accounts for the real estate sales cycle. Market predictions can’t be made in a meaningful way comparing a month to the next month alone. Instead, We would compare June with the previous June. Or the last 3 months with one year to one year and three months back. This gives us better data to assess what’s actually happening.
Nobody should be surprised that November sales are lower than October sales or that January is slower than December. This seems to me to be hijacked data to sell you ideas based on what might be a faulty premise. I would again suggest you check with a local real estate expert to see what’s really going on. Let me give you an example:
The Atlanta housing market sales cycle looks like what you see here in this graph. Slow at the beginning of the year and picks up in March through June-July and slows down through November and picks up in December and slows in January. It’s consistent. It does this every year. Imagine if I tried to tell you the market was going to crash because sales were down from July to August to September. It’s missing the needed context that it does this every year and it is expected and it doesn’t mean there is a problem or even a change in what is expected in the market! With that in mind, here’s some actual real estate data that shows there’s no trend of negative sales on statistics that actually matter here in the Atlanta real estate market:
There were 7,201 sold homes in December 2020. There were 6,548 sold homes in December of 2019. That’s actually a 10% increase in sales year over year and definitely not a slowdown. Sales are a lagging indicator and so to look ahead we can use the leading indicator of pending sales. December 2020 is the last full month of data and we see that in December of 2020 there were 5,650 pending sales and in 2019 there were 4,638. That’s a 21.8% increase in pending sales compared to what happened the previous year so it doesn’t look like we are heading for that slowdown we heard about from leading indicators either.
Different regions run in different cycles. Warmer climates may have more sales in the winter months compared to colder climates. I don’t know how it happens in your local market and this is exactly why I recommend you get your information from a local real estate expert.
Interest rates will have to rise at some point as the economy opens up and we begin to see real economic growth. It’s going to happen at some point for sure. Freddie Mac suggests it won’t happen too soon though saying: “This low mortgage interest rate environment is projected to continue through 2021 and 2022 as the Federal Reserve has voted to keep the interest rates anchored near zero for a longer period of time if needed until the economy rebounds. With mortgage interest rates averaging around 2.8% in the fourth quarter of 2020, it is forecasted to average around 2.9% through the end of 2021.”
It’s true that eventually, more inventory will come into the market as well and that will help bring a little better balance to the market but it’s going to take a lot of inventory for that to happen. The truth is we are already in a real estate crisis. It’s an inventory crisis and it’s too low. It’s so low that inventory could triple and we would still be in a seller's market here in Atlanta and as long as rates don’t double at the same time it’s difficult to imagine a scenario that would see prices decline let alone crash. With more people receiving the vaccine, confidence should return for sellers to let buyers back in their homes and that should help bring additional inventory to the market which, I believe, , will be healthy. Just ask any buyer fighting for a home right now.
Maybe the advice regarding what we hear on the news is this: when we seek real estate information, the news media can’t be your only source. Especially in the world we live in today where headlines often don't even match the stories and those headlines are often created just for clickbait and to sell ads. As is usually the case, your best source of information is likely going to be from an expert in the real estate market, locally. Even when a news story interviews an expert on a news show, they’ve usually sought out an “expert” that already fits the narrative for their “news” story.
With that in mind, as we move into the new year with the election behind us, the vaccine being distributed, and the economy poised to rebound, it’s my opinion that there will be no housing crash in 2021 and probably not at all even farther out into the future.
If you enjoyed this video, please make sure you give it a like and <a href="https://www.premieratlantarealestate.com/Premieratlantarealestate?sub_confirmation=1">subscribe to my channel</a> so you can be notified when I upload a new video. Until next time, thanks for watching!<br /><br />The national news media continues to push the narrative of a housing crash looming just beyond the horizon and they feed the flames of fear by pushing information that appears to indicate that the real estate market has peaked and is about to decline rapidly. They use trigger words like “bubble” and “crash” and headlines like “pending home sales fall for 3 straight months” that seem to indicate it’s already starting to happen. If you like to stay informed about real estate, whether it’s the Atlanta real estate market or somewhere else, you can’t help but find these stories.2021-01-22T08:47:00-07:002021-03-01T04:49:30-07:00Ryan Wardtag:premieratlantarealestate.com,2012-09-20:1334Do Your Homework!It’s hard to believe, but the beginning of a new school year is just around the corner! Although I am sure your kids are still enjoying their summer vacation, it will be no time before they have picked out the perfect backpack and stuffed it with all the essential school supplies.
<img src="https://assets.site-static.com/userfiles/678/image/education-school-apple_800.jpg" width="800" height="450" />
One of the top search criteria I hear from buyers is schools. Schools can be a primary reason for moving and a major deciding factor for the home you choose to buy. First and foremost, parents want the best schools for their kids - that is a given. But beyond that, the school district where a home resides can determine the market value of a home and it’s potential to gain value in the future. And, the sought after schools can also help you down the road when it comes time to sell your home - making it more desirable to potential buyers.
Looking for a home in a particular school district? On the Premier Atlanta Real Estate site, we have an awesome tool to help you search for available homes located near the most popular schools in the area. Check out this link:
<a title="Homes For Sale By School District" href="https://www.premieratlantarealestate.com/homes-for-sale-by-school-district-in-atlanta.php" target="_blank">https://www.premieratlantarealestate.com/homes-for-sale-by-school-district-in-atlanta.php</a>
Want to do some more homework? Request a copy of the Atlanta Business Chronicle annual school guide. When doing research on schools, I recommend reviewing test scores and visiting schools in person to speak with staff who can then provide you with more information about each school. A good place to start is with the annual Atlanta Business Chronicle School Guide. Send me an email at <a href="mailto:marci@premieratlantarealestate.com" target="_blank">marci@premieratlantarealestate.com</a> to request a copy and I will mail you one directly.
Are you are ready to start looking for a home and schools are important to you - I can help! Give me a call and let’s talk about how I can help find you find a great home in the desired school district and make the process hassle-free!2017-07-13T11:14:00-07:002017-08-11T07:35:53-07:00Marci Chambers Smithtag:premieratlantarealestate.com,2012-09-20:1328What's The Real Story? It's Probably Pricing!Time and again, I come across a home listing that is well kept, with awesome features, in a great neighborhood... but it just isn't selling.
Buyers will ask, "why has is been on the market so long?" Sellers will ask, "why isn't my house selling?"
And the answer is usually: PRICE.
My job, as your highly skilled real estate professional, is to do the research and give you the tools and information to price your home properly, or to make the appropriate offer on a property. To get that information, I look at factors such as style, size, features, geographic location, schools, etc. in comparison to comparable recently sold (in the last 3 - 6 months) properties. I don't set the price - you don't set the price - THE MARKET SETS THE PRICE.
The goal is to sell the property in the least amount of time for the most money. And your pricing strategy will have a direct effect on your success of selling for the most money in the least amount of time. Statistics show that if you price your property too high, you risk sitting on the market for months. And in the end, you will probably be selling for less than if you priced properly from the beginning, because you will need to do price reductions to offset the perception that there is something wrong with the property. Price your property too low, and you aren't maximizing the potential profit from the sale - and the bidding war you hoped to achieve may never materialize.
Take a look at the snapshot below which demonstrates the effect price has on sales vs. listing price and days on market. Getting the price right from the beginning, is your best bet for selling your home for the most amount of money in the least amount of time.
<img src="https://assets.site-static.com/userfiles/678/image/pricing_info_graphic_2000_02.png" alt="" width="800" height="2000" class="img_box_center" />
Are you ready to have a chat about selling your home? I would love to meet with you to discuss how Premier Atlanta Real Estate will help you market, prep and price your home so that you can sell with success. Give me a call at 404-561-1842!2017-05-03T12:17:00-07:002017-08-11T07:33:42-07:00Marci Chambers Smithtag:premieratlantarealestate.com,2012-09-20:1326Keys to Successful House HuntingUse the tried and true newspaper reporters tool to have a fabulous home buying experience! Answer these five Ws and one H to buy your next home with confidence and success!
<img src="https://assets.site-static.com/userfiles/678/image/key-metal-home-security-67609_800.jpg" alt="" width="800" height="531" class="img_box_center" />
Why Do You Want A New Home?<br />The first, and most important question you need to ask yourself is “Why do I want to move?”. Your reason or motivation for moving will drive the rest of the process and will help you answer the rest of the questions. Maybe you are taking a new job in a new city. Maybe you want to be closer to the grandkids. Maybe your family is growing and you need more space. Or maybe you are just ready for new home. Whatever the reason you have for moving, it is the right reason, and it will play a key role in helping you make those key home buying decisions. Figure out your big “WHY” and then keep that as the focus during your house hunting.
How Much Do You Want To Spend?<br />This will be one of the most expensive purchases you will ever make so you need to begin with a discussion about financing. ALL HOME BUYERS NEED TO MEET WITH THEIR BANKER OR A LENDER BEFORE LOOKING AT ANY HOMES! Pardon my “shouting” - but having your financial ducks in a row before embarking on the home buying process is a crucial step you should take to ensure you start off the process on the right foot. If paying cash, your banker can discuss the status of your accounts, your budget, and provide you with a letter verifying you have the funds available to purchase a home. If financing with a mortgage, the lender can help determine your budget and provide information on the various loan programs available to you, as well as providing documentation of your pre-qualification. The professionals can also help you determine if it is not quite the right time, financially, to purchase a home. Take all the great info you glean from your visit to the bank and use it to set realistic expectations and a sensible budget for your home purchase. And as an added bonus, getting your financing locked down, puts you in the perfect position to act quickly when you find your dream home. In this fast moving, low inventory market, being ready to make an offer is essential to getting the house you want.
Where You Want To Be?<br />You probably have heard the adage “The three most important things in real estate are location, location, location.” Figuring out WHERE you want to live is vital to buying a house. What state, city, town, school district, neighborhood? Do you need to be close to work or other family members? Do you want your home to face a certain direction? Do you want to live on a cul-de-sac or near the freeway? Would you like to be within walking distance of entertainment or public transportation? If you need some guidance, ask family, friends and co-workers to give you recommendations. Your professional real estate agent is an excellent source for community and school information. Your budget can often impact where you will be looking for a home, so it is important to research the price-points of the areas where you are interested in living. Knowing where you want to be is paramount to conducting an efficient and effective home search.
What Do You Want?<br />When buying a home, the options can seem endless and overwhelming. It is important to wrap your head around WHAT you want before you start looking. First you need to ask yourself what features are the most needed and the most wanted, and why. Make a list of your top five necessities in a new home. Buying a home with someone else? Have all parties make a list of their top fives, and then compare notes and discuss. Come to an agreement on those items that will be deal breakers and the things that would be “nice to haves”. No house will have everything on your wishlist - so you need to be ready to decide on which items you are willing to compromise.
Here is a shortlist of things to think about:<br />Style: ranch, traditional, contemporary, colonial, cape cod, farmhouse, etc.?<br />How many bedrooms?<br />Do you need a basement?<br />How many garage spaces do you need?<br />What type of kitchen do you want? Gas or electric cooktop?<br />Do you need to accommodate any current or future mobility requirements?<br />How important is a yard? How much yard do you need?<br />What types of finishes and fixtures do you like? <br />(always remember, finishes, fixtures and paint can be changed!)
When Do You Want To Move?<br />Timing is everything! The timing of your move can be affected by many of the factors we have previously discussed. You may need to relocate in time for the start of a new job. Is there a house to sell first? You might need to complete your taxes to maximize your financing options. Is there a baby on the way requiring a move in nine months or less? Or maybe you need to wait til the end of your current lease. Think about the optimum time to be in your new home - you will want to start home hunting at least three to four months before that time. Also, it is necessary to study the current market. We have been experiencing low inventory nationwide, making it challenging for home buyers to find homes to purchase. Because of that, it may take a little longer to find the right home. If you have very specific needs regarding location or features, your search may take a little longer, as well. Being flexible regarding the timing of your move will give you many more options for potential homes to purchase and will work to your advantage in the negotiation stage. Before commencing your home search, you need to make sure you know when the TIME is right for your move.
Who Do You Want To Work With?<br />Buying a home can be challenging, whether you are a first time homebuyer or have several house purchases under your belt. Every transaction is unique. You need a REAL ESTATE PROFESSIONAL on your side to help you navigate the entire process. A great agent not only works with you to find the right house, but also helps you negotiate a solid contract and completes all the necessary details to see the whole process through to the closing table. Look for an agent that is a good communicator, detail oriented, a strong negotiator, and swift in taking action or responding to requests. But most importantly, your agent should be focused on your needs and should look out for your best interests. Get recommendations from family, friends and valued advisors. Chat with potential agents to see if you “click” and to see how they operate. A great agent is knowledgeable and forthright and willing to hunt down the answer to any of your questions. Remember, you are working with a professional - they have first hand knowledge and expertise regarding the market, best practices, and how to make your transaction have the best outcome. Listen to your agent’s experienced advice and work together to find and purchase a wonderful new home!
Give me a call today to chat about finding a new home that fits the who, what, when, where, why and how much. Let’s discuss how I can help you find a property that will fit your needs as well as check off items on your wish list. I want to make sure your next home purchase is an enjoyable and rewarding experience!2017-03-29T11:39:00-07:002019-06-14T03:41:11-07:00Ryan Wardtag:premieratlantarealestate.com,2012-09-20:1325Your Guide To Home InspectionsYou have searched and searched and finally found that perfect home to purchase... what is the next step? As soon as you have a property under contract the next important step in the home buying process is conducting an inspection of the property. A home inspection is a valuable tool in evaluating the condition, soundness and safety of the property. The resulting report is a fantastic source of information about the home you are buying, and can highlight items that need to be addressed prior to purchase.
<img src="https://assets.site-static.com/userfiles/678/image/home-inspection_800.jpg" alt="" width="800" height="433" class="img_box_center" />
A home inspection should be conducted by a professional, licensed, experienced and highly recommended home inspection contractor. As in every industry, there are good and bad home inspectors. Ask for recommendations from your real estate agent - they have worked with many inspectors and have valuable insights to help with the selection process. Your agent will know which inspectors will provide the best and most useful information and provide excellent customer service, all for a reasonable price. You can also ask trusted family and friends for inspector recommendations. Once a professional is selected, your agent will schedule the inspection, coordinating with the listing agent and home seller.
A home inspection is usually paid for by the buyer. On the day of the inspection, the buyer (along with the buyer's agent) is invited to walk through the property with the inspector so they can verbally discuss and visually point out any findings . The inspector will also provide a written report for the buyer and agent to review, documenting all the things they observed while evaluating the property.
What is usually evaluated as a part of the inspection:<br />• Structure of property, including foundation and framing.<br />• Exterior features such as siding, soffit, porches, decks, walkways, and driveways.<br />• Roof system including shingles, flashing and skylights.<br />• Electrical system including service panels, breakers and/or fuses.<br />• Plumbing systems including pipes, drains, water heating equipment and sump pumps.<br />• Heating and cooling systems.<br />• Interior features including walls, ceilings, floors, windows, doors, stairs and railings.<br />• Insulation and ventilation including those in the attic and other unfinished spaces.<br />• Fireplaces including chimneys and vents.
Additional items that may be included - check with the inspector:<br />• Kitchen appliances and central vacuum systems.<br />• Lawn sprinkler systems.<br />• Fire and smoke detection and suppression systems.<br />• Detached structures like a garage or shed.<br />• Code compliance.
Items that usually require a separate evaluation by your inspector or from another contractor:<br />• Environmental hazard report like radon, asbestos or lead.<br />• Well systems.<br />• Termite and pest report.<br />• Hot tubs and swimming pools.<br />• Alarm/intrusion detection systems.<br />• Television antenna or satellite dishes.
So what should be done with the information received from a home inspection? Inspection reports can be quite lengthy, covering dozens of items observed about the property. The information overload can often be mind-boggling to buyers. Try to not be overwhelmed. When walking through the property with the inspector, ask them to point out the items they think are most notable from a safety, structural and condition standpoint. When reading the report, critically note the items that are of a significant concern versus those that are meant to be informational in nature. Discuss the report with your real estate agent - they are an excellent source of knowledge and resources for answering questions raised by the inspection.
Remember, first and foremost, the inspection and resulting report are meant to be a tool to inform you about the property. No property is in perfect condition. If the inspector identifies problems, it doesn't mean you should or shouldn't buy the house, only that you will know in advance what to expect. And as I always say - the inspection report is NOT a punch list of items to fixed by the seller. Use your inspection to realistically and reasonably address concerns about the property you are about to purchase and to be more fully informed as you make your home buying decision.
One last tip - keep your inspection report handy once you move to your new home. The report is an excellent reference for planning routine maintenance and future improvements to your home.
For more information about standards, ethics and policies in home inspections, visit the National Association of Certified Home Inspectors. <a href="https://www.nachi.org/" target="_blank">https://www.nachi.org/</a>2017-02-27T12:56:00-07:002017-08-11T07:36:37-07:00Marci Chambers Smithtag:premieratlantarealestate.com,2012-09-20:1324Will You Be Early Out of the Gates?<img src="https://assets.site-static.com/userfiles/678/image/horses_starting_gate_steve_fitzpatrick_800.jpg" alt="" width="800" height="548" class="img_box_center" />
You have probably heard lots of advice about the best time of the year to put your house on the market … “Spring! Sell in the spring, it’s the best time” they will say. But getting a jump on the real estate market may be your best opportunity to come up a winner when selling your home. Here are just a few of the ways listing your home in January and February can benefit you in the home selling race.
Inventory is Low
The holidays did little to slow down the robust real estate market and we find ourselves still deep into a Seller’s Market. What that means is inventory is low and there are not enough homes to meet the demand of the buyers in the current market. This is the case both nationally and locally. According to realtor.com, on a national level, active listings are down a staggering 11% when compared to 2015.* Here in Atlanta, intense demand is resulting in a 12.1% reduction of listings compared to this time last year.
So who remembers their Economics 101 class? Bueller? Bueller? When demand is high and the inventory is low, it is the BEST TIME TO SELL! As long as you follow the professional and knowledgeable advice of your carefully selected listing agent, you will likely be able to get more for your home and sell quickly.
As we head in to the spring months, inventory will inevitably increase. Your home will have more competition, you will have to work extra hard to get the attention of the buyers out shopping. That may mean pricing lower than the house for sale around the corner, making extra updates to your home, and dealing with fickle buyers. Be the star of the show by listing your house in January or February reap the rewards!
Serious Buyers
People who are house hunting in January and February are usually serious buyers. Whether it is job, family or school related - house hunters that are looking early in the year are ready to buy and have a sense of URGENCY. As a seller, you want those serious buyers to give you serious offers because those offers have a better chance of making it to the closing table.
Spring Fever
I don’t know about where you live, but it is already heating up here in Atlanta. And when the temps go up, the buyers start buying. Even if you are in colder climates, buyers start doing their research online right after the holidays. Why not have your stellar listing pop up on their screen so that they can’t get it out of their mind and HAVE TO BUY NOW! Take full advantage of the spring fever and be the house they fall in love with.
Movin’ On Up
Chances are you will be selling your home to move on to something bigger and better. Timing the sale of your home to optimize the purchase of your next home can be tricky. The best advice I can give you is START EARLY and have a great real estate agent to coach you through the challenges. You want to be ready to buy with confidence, a great offer and the most options.
Will you be early out of the gate? Fast off the starting line? You need a professional agent with outstanding marketing, customer service and negotiation skills to help you list your home and cash in on the opportunities of the early spring housing market. Give me a call!
<a href="http://public.tableau.com/views/ECONDB_REDSHIFT_TEMPLATE_MarketSpotlight/Dashboard1?:embed=y&:loadOrderID=0&:display_count=yes" target="_blank">* Real Estate Trends</a>2017-01-18T16:30:00-07:002017-08-11T07:37:19-07:00Marci Chambers Smithtag:premieratlantarealestate.com,2012-09-20:1323A New Home for Christmas? <img src="https://assets.site-static.com/userfiles/678/image/blog/christmas-present-housesm_300.jpg" alt="" width="300" height="200" class="img_box_right" />Have you been thinking about buying a new home, but planning to wait til spring? You might want to consider doing your home buying during the holidays... this can be a fantastic time of year for you to find that dream home and get a great deal! Who says the best presents come in small packages? How about a two story with a pool and a fireplace sized package? Let’s talk about a home shopping during the holidays.
Deals! Deals! Deals!
Let’s face it, no one really wants to put their house on the market during the holidays. Listing your home usually means the hassle of prepping the house for sale, and keeping it clean for showings, and scheduling open house events. Now try doing all that while putting up festive decorations, hosting special events, attending school programs, wrapping gifts, and still finding time for work and family. So a seller who has decided it is time to sell is probably finding that prospect a necessity, whether for a employment relocation, a family need, or any number of other reasons.
This is where you, as the buyer, can have some purchasing power. Homes on the market during this time may be ripe for offers under the list price, due to the urgency of the seller to sell. Sellers may be more willing to take care of those inspection items because they need to get moving. And if you have the ability to move quickly, sellers may be very happy to oblige a short escrow period. (one caveat - check with your lender to check for any delays the holidays pose regarding time needed for closing the transaction).
Houses that have been on the market a while will likely try to price drop before or during the holidays to get some action on the home and get it sold before the end of the year. With fewer buyers in the market, sellers are trying everything they can to get more traffic to their property.
In the market for a new home? Many builders are anxious to get their spec homes (completed new homes) off the books for the current year, to clear the way for upcoming construction projects. This can mean close-out pricing and added incentives, such as basement completion or add-on allowances, to get those homes sold. December is a great time to buy a spec home!
What competition?
During the hot selling season - usually in the spring, possibly longer - buyers can often find themselves up against several other buyers vying for a home - especially the really great homes in great locations. This can make the home buying process frustrating. Potential new homeowners get their hopes up and then face defeat and frustration as they are beat out in a bidding war. And that happens over and over again. But during the holidays, there are definitely not as many buyers in the market. This can mean much less frustration for buyers with the home shopping process AND less need for bidding wars and over-inflated offers to beat the competition - YEAH! Win-Win!
Oh, and you can get some tax benefits too!
Purchasing a home before December 31 can help you come tax time - you can deduct property taxes, mortgage interest, origination points on your loan, and interest costs. Every little bit helps when April 15 rolls around. Check with your preferred tax professional to explore your tax savings options.
Lenders Lull
It’s a slow time for mortgage bankers too, so loan officers may be offering special incentives and possibly waiving or reducing origination fees. With less transactions happening during the holidays, underwriting may be able to provide a quicker turnaround time than possible during the busy season. Before looking at homes, make an appointment with a lender to chat about your budget and finances, as well as any perks they are offering for buyers during the holiday season.
Let’s find a place to hang some mistletoe!
So what do you say? Want to get a new home from Santa? I may not be an elf, but I can sure help you find a wonderful home and will work hard to get you a fabulous deal. Give me a call to help you find that perfect picture window in the perfect house for your family Christmas tree.2016-12-06T11:59:00-07:002017-08-11T07:37:58-07:00Marci Chambers Smithtag:premieratlantarealestate.com,2012-09-20:1302Pricing a Home in a Down Market - You Can't Underprice a HomeThis is something that we (and I think many other agents) struggle with in the market today. We meet with a client and go over what we believe should be the list price of a home and it's seldom a pleasant conversation. Typically, sellers know it's worth less than it was a few years ago, but getting the price right today really is more important than it used to be.
A home gets it's most activity from potential buyers in the early part of a listing period - the first 2 weeks. If it isn't priced for the market, it won't get an offer. Still, seller's feel they need to leave room to negotiate because they feel they need to squeeze every penny they can out of their sale. It's a fair enough idea, but it isn't grounded in what the data says they should do.
First, I'd like to discuss an important concept that regularly gets overlooked by both seller's and agents: It's impossible to underprice a home. Let me reiterate - you can't underprice your home. In a free market, it doesn't matter if you underprice by $1,000 or $50,000. It will sell for as much as the market will pay. Not more, not less.
So let's try to do a better job of recognizing the understandable objection about pricing and do a better job of explaining how the market works. If you list your home for the correct price, it will sell and it will happen fast regardless of your price point. It's not like homes aren't selling (see chart).
<img title="home-sales_610" src="https://assets.site-static.com/userfiles/678/image/home-sales_610.png" alt="home-sales_610" width="610" height="421" class="img_box_center" />
As you can see from this chart which shows home sales during this declined market, home sales are actually quite consistent. It's just that only the ones that represent exceptional value sell. If you price it at the right number, it's impossible for it not to sell. So the obvious question is that if you list it low and it sells fast, doesn't it meant that you could have listed it a little higher, waited and got a higher offer? The answer is of course no. Emphatically. If you overprice your home and need a price reduction to sell, it will sell for less than it would have had you priced it correctly to begin with (see charts below).
<img title="priced-right_610" src="https://assets.site-static.com/userfiles/678/image/priced-right_610.png" alt="priced-right_610" width="610" height="430" class="img_box_center" />
<img title="best-pricing_610" src="https://assets.site-static.com/userfiles/678/image/best-pricing_610.png" alt="best-pricing_610" width="610" height="428" class="img_box_center" />
This second chart is very telling. If you price high and reduce, it will sell for less than it would have had you priced it correctly to begin with.
It is possible however to have missed the mark by pricing it a little bit too low. Guess what happens next...you get multiple offers and the price will be brought up to the highest possible price.
Still not convinved? Look how long it will take if you overprice your home instead of pricing it correctly (pay special attention to the fact that it doesn't matter at all at what price point your home is in).
<img title="days-on-market_610" src="https://assets.site-static.com/userfiles/678/image/days-on-market_610.png" alt="days-on-market_610" width="610" height="416" class="img_box_center" />
Red is the time to sell of homes that did not get a price reduction. Yellow is homes priced correctly at the start.
So, don't fear low pricing. It's your best chance to get the highest amount for your home.2011-09-21T08:23:00-07:002019-06-14T03:52:09-07:00Ryan Ward