Thinking of Selling your Home? Competition is Coming

Thinking of Selling your Home? Competition is Coming | Simplifying The Market

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.7% over last year.

How will this impact buyers?

More inventory means more options. Danielle Hale, Realtor.com’s Chief Economistexplained this is good news for the housing market – especially for those looking to buy:

“It’s not spectacular construction growth, but it’s slow and steady in the right direction. Eventually, the pickup in single-family home construction will mean [buyers] will have more options. Especially with the limited number of sales right now, more options are really needed.”

How will this impact sellers?

More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:

  1. A great price on their home as buyers outbid each other for it
  2. A quick sale as buyers have so little to choose from
  3. Fewer hassles as buyers don’t want to “rock the boat” on the deal

With an increase in competition, the seller may not enjoy these same benefits. As Hale said:

“As new construction continues to increase, home shoppers will eventually have more [choices] and a bit more time to make purchase decisions compared to today’s quick-moving housing market.”

Bottom Line

If you are considering the sale of your home, it might make sense to beat this new construction competition to the market.

Open Houses this weekend Spet 30 and Oct 1

Real Estate Open House Ideas to Sell House Fast

See this weekends open houses

Should I buy a house now or wait til next year

Should I Buy a Home Now? Or Wait Until Next Year? [INFOGRAPHIC]| MyKCM

How do you Guarantee Maximum Value for Your House?

Two Keys to Ensure you get the highest possible price!

  1. Price it a LITTLE LOW! 

This may seem counter intuitive. Let us look at this concept for a moment. Many homeowners think that pricing their home OVER market value will leave them room to negotiate. Actually, this dramatically lessens the demand for the home (see chart below)

Instead of the seller trying to “win” the negotiation with one buyer, they should price it so that demand for the home is maximized. Doing this, the seller will not be fighting with a buyer over the price; instead, they will have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they are getting a deal, they are likely to bud up a property that’s slightly underpriced, especially in areas with low inventory,”

  1. Use a Real Estate Professional

This, too, may seem counter intuitive. The seller may think they would make more money if they did not pay a commission. With this said, studies have shown that homes typically sell for more money when handled by a real estate professional.
(See 5 reasons to use a professional).

A new study by Collateral Analytics reveals FSBO’s do not actually save any money and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed homes in a variety of markets in 2016 and the first half of 2017. The data showed:

FSBOS tend to sell for lower prices than comparable home sales, and many cases below the average differential represented by the commission rate.”

The results of the study showed that the differential in selling prices for FSBOS when compared to the MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

 

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5 Reasons to Hire a Professional

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They Help with ALL the disclosures and paperwork necessary to Today’s heavily regulated environment
They are well educated in and experienced with the Entire Sales Process.
 They act as a “Buffer” in negotiations with ALL parties throughout the Entire transaction.
 They help understand today’s real estate values when setting the price on a listing or on an offer to purchase.
 They Simply and effectively explain today’s real estate headlines and decipher what they mean to you.
Price your house at or slightly below current market value and hire a professional. This will guarantee that you maximize the price you get for your house

More Than Half of All Buyers Are Surprised by Closing Costs

More Than Half of All Buyers Are Surprised by Closing Costs | Simplifying The Market

More Than Half of All Buyers Are Surprised by Closing Costs

According to a survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com gathered closing cost data from lenders in every state and Washington, D.C. in order to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

More Than Half of All Buyers Are Surprised by Closing Costs | Simplifying The Market

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

To SEE Local Jersey Shore Closing Costs 

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

 

Buyer’s Approximate Closing Costs

Buyer’s Approximate Closing Costs
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Legal, Title & Settlement Costs
• Attorney Fees $800 to $1500
• Survey (Condo $250 to $450) $450 to $900
• Title services $700 to $1200
• Title Premium—State regulated fee, based on the sales price. See schedule– NJ Rates for Title Insurance
• Settlement Fees $400 to $650
• Recording Fees $300-$400

Title and Settlement charges can also be calculated by Gloria
on the Broad Street App

Mortgage Costs
• Application Fee $300 to $1,000
• Appraisal $300 to $600
• Miscellaneous Mortgage Costs $100 to $600
• Private Mortgage Insurance– Upfront Premium & Monthly fee– Ask your lender
• Points—1% of Loan Amount to buy-down the rate

Escrows & Pre-paids
• Taxes—1 quarter paid at closing, additional taxes in reserve account
• Homeowners Insurance– 1 year paid at closing, additional HOI in reserve account
• Homeowner’s Association Fees– Statement of Accounts needed for fees
• Flood Insurance (if applicable)
• Tax, sewer, water, oil in tank, HOA adjustments

Inspections
• Home Inspection $500 to $4000
• Radon Inspection $60 to $300
• Wood Destroying Insect Inspection/Certification $60 to $150
• Septic Inspection $500 to $2,000
• Oil Tank Inspection $395 to $500
• Home Protection Plan $425 to $900

NJ Mansion Tax on Residential Properties
• 1% of the purchase price on all residential homes over $1 million

These figures are general guidelines to aid buyers calculating their closing costs.

These figures are only estimates.

Formal quotes from your attorney or title company should be obtained for actual closing costs

Buyer’s Purchasing Power by Price Range

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Why Millennials Choose to Buy

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Lack of Existing Home Inventory Slows Sales Heading into Fall [INFOGRAPHIC]

Lack of Existing Home Inventory Slows Sales Heading into Fall [INFOGRAPHIC] | MyKCM

Lack of Existing Home Inventory Slows Sales Heading into Fall [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report.
  • First-time homebuyers made up 31% of all sales in August.
  • Homes are selling quickly with 51% of homes on the market for less than a month.
  • A limited supply continues to drive up prices for the 66th consecutive month.
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