Jeffrey Harrington's Blog
A hot housing market features residences that buyers want to purchase as quickly as possible. As a home seller, you should do everything possible to stir up interest in your residence, even in a hot housing market. Because if dozens of buyers compete for your house, you may be able generate significant profits from your home sale.
Ultimately, there are several fast, effective ways to ensure you can maximize your home sale earnings in a hot housing market, and these include:
1. Conduct a Home Inspection
A home inspection allows you to identify your house's strengths and weaknesses. Then, you can take the necessary steps to transform various home weaknesses into strengths.
It won't take long to conduct a home inspection, either. Typically, a home inspector can visit your residence, perform the evaluation and provide an inspection report in a single day. This means you can quickly gain the home insights that you need to help you upgrade your residence prior to adding it to a hot housing market.
2. See How Your House Stacks Up Against the Competition
Take a look at the prices of available houses in your city or town that are similar to your own. This housing market data can help you establish a competitive initial asking price for your residence.
Furthermore, analyze the prices of recently sold residences in your area. With this housing market information, you can see just how quickly houses are selling and map out your home selling journey accordingly.
3. Consult with a Real Estate Agent
If you're unsure about how to proceed in a hot housing market, there is no need to stress. In fact, if you collaborate with a real estate agent, you can get the help you need to optimize your home sale earnings, regardless of the current housing market's conditions.
A real estate agent is a housing market expert who understands how to navigate the home selling journey. First, he or she will meet with you to discuss your home selling goals. A real estate agent then will develop a personalized home selling strategy. Finally, this housing market professional will list your home, set up home showings and open houses and help you get the best price for your residence.
Of course, a real estate agent is happy to assist you once you receive offers on your house too. If you get a home offer and don't know whether to accept, reject or counter it, a real estate agent can help you explore the pros and cons of all of the options at your disposal. Plus, a real estate agent can offer a recommendation about how to proceed with an offer, along with plenty of insights to help you make an informed decision.
When it comes to selling a house in a hot market, there's a lot that sellers can do to achieve the best-possible results. Use the aforementioned tips, and you can boost the likelihood of maximizing your home sale profits after you add your residence to a hot housing market.
When it comes to finding your dream home, your vision is going to be both unique and personal.
For many people, their idea of a dream home may be a composite of the home they grew up in and other mental snapshots they accumulated over the years.
In some cases, the house of your dreams may bear little or no resemblance to the image you conjured up in your mind. Sometimes, you just instinctively know the right home when you see it -- even if it's not exactly the one you originally envisioned.
A good starting point for launching your home search is to develop a detailed priority list. It should consist of both "must have" characteristics and "wish list" items. Hopefully, you and your spouse (or partner) will be in full agreement on most of the important features of your next home, such as whether you want a ranch house or colonial. Being on the same page in terms of location can also make a big difference in how satisfied you both are with your real estate purchase. As an example: Someone's going to less than thrilled if, let's say, you want a townhouse in the city, while your spouse has their heart set on a Craftsman-style home in the suburbs!
Trends in Home-Buying Preferences
If you're a member of the so-called "millennial" generation, your top priority in a new home would probably be the quality of the neighborhood. That's according to a "Home Buyer and Seller Generational Trends Report" (2015) compiled by the National Association of Realtors. In order of importance, factors influencing home purchasing choices are: the convenience of the home to one's job(s), overall affordability, access to friends and family, and the quality of schools in the district.
Many buyers in that same demographic are also leaning toward homes that are energy efficient, ones that offer "smart home" capabilities, and dwellings that include a space that can be used as a home office. Since nearly 40% of Americans telecommute for their jobs on at least a part-time basis, more and more home buyers are adding that requirement to their priority lists. Surveys have also shown that prospective homeowners in their twenties and thirties are opting for low-maintenance surfaces, such as flooring, counter tops, and backyard decks. Updated interiors are also a strong preference for many in that age group since they don't have the extra money, time, or inclination to get involved in major renovation projects.
Other factors which belong on house-hunting priority lists include square footage, number of bedrooms and bathrooms, and the size of the yard. If privacy and noise levels are concerns, then key factors to consider would be fencing, trees and hedges, and the amount of space between houses.
While it's not always possible to find a home that includes every single item on your wish list, an experienced real estate agent can help you find what you want and match your requirements with the available listings in your desired neighborhoods.
If you've recently put your home on the market -- or are considering doing so in the near future -- home staging is a priority which will soon take front and center!
Since "presentation is everything" when trying to catch the interest of prospective buyers, it's crucial to be able to see things through their eyes.
Unfortunately, being able to accomplish that objective is next to impossible because, as a homeowner, you're looking at your home and property through a completely different lens than the rest of the world. The longer you've lived in your home, the more your objectivity is compromised.
Here are a few reasons why it's really difficult to "see the forest for the trees" when it comes to home staging:
First of all, there's the emotional aspect of owning a home and seeing your life unfold there over a period of years. That's especially true for first-time homeowners, parents of growing children, and people who have sunk a lot of money, time, and energy into improvements and customization. Once you've added personal touches to your home to reflect your own tastes, personality, and lifestyle, you're viewing your home through a unique perspective that may cloud your objectivity as a home seller.
Solution: Think Like a Business Owner
For the same reason business owners and executives hire outside consultants to tell them how to improve management efficiency or profitability, home sellers often need professional marketing guidance from a real estate agent or home staging consultant. Getting input from home decorators, landscapers, or home improvement contractors may also provide you with helpful ideas, but their recommendations may not always be the most economical and cost effective.
When staging your home to enhance eye appeal and attract the most potential buyers, a good guiding principle to keep in mind is ROI or "return on investment." While you don't want to sink more money into sprucing up and staging your home than necessary, you do want to cast it in its best possible light. Depending on how recently your home has been updated or improved, your investment in home staging may be relatively inexpensive. On the other hand, if you haven't updated, repaired, or made improvements for more years than you care to remember, the cost of making your home irresistible to buyers may be a lot higher!
One More Scenario
If your tastes could be described as eclectic, "off the wall", or otherwise out of the mainstream, you might need to consider a major overall in the look and feel of your property. Unless you're lucky enough to have it be a "sellers' market" at the time you're putting your house up for sale, it's generally advisable to make your home appealing to as wide a range of potential buyers as possible. An experienced real estate professional is usually in the best position to provide the guidance you need to accomplish that key objective.
If you're currently renting an apartment or house, it makes good financial sense to consider becoming a homeowner in the foreseeable future. There are pros and cons to owning your own home -- and it's not for everyone -- but for most people, the advantages far outweigh the disadvantages.
An exception would be if your job requires you to relocate frequently. In that scenario, the potential benefits of building up equity in a home would be greatly diminished.
On the other hand, if you plan on staying put for more than a few years, then the tax benefits and investment value of owning real estate could put you on a stronger financial track than if you continued shelling out your hard-earned money to a landlord. You've probably heard the argument before: "If you pay rent, you have nothing to show for it at the end of the year". However, when you buy a home, an increasing portion of your monthly payments is applied to your actual ownership of the property (as opposed to how much you owe the bank).
Tax Advantages of Home Ownership
In most cases, you can deduct all of your home mortgage interest from your federal tax returns, according to the IRS. More specifically: "The only costs you can deduct are real estate taxes actually paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums."
However, since everyone's financial situation is different and there is no "one size fits all" approach to financial management, it's always best to consult with an experienced CPA, enrolled agent, or knowledgeable tax preparer. There may be other tax benefits you could qualify for as a homeowner, too, including getting tax credits for installing a solar energy system. The government's Energy Star program says tax credits on new solar energy systems are available through the year 2021.
Getting the Process Underway
Two key steps to becoming a home owner are finding out your credit score and meeting with a mortgage lender to determine how much of a real estate loan you could qualify for. An experienced real estate agent can also provide you with a wealth of guidance and information on how to become a homeowner. They can fill you in on many of the exact steps, requirements, and advantages of buying your first home. A buyers' agent can also help you assess your readiness to take the plunge into home ownership.
In addition to finding out your credit score, which will impact your mortgage interest rate and the type of loan you may qualify for, other vital information can be gleaned from a detailed personal budget. Although the amount of rent you now pay will provide some insights into your potential house-buying budget, there are a lot of variables which will impact how much of a mortgage you could comfortably afford.
One aspect of house hunting that some prospective home buyers overlook is security. Perhaps it's because they're looking at homes in "nice neighborhoods, where you shouldn't have to worry about that sort of thing happening." Maybe another reason they're paying little or no attention to security issues is that they're more preoccupied with the layout of the kitchen, the size of the backyard, and the condition of the master bathroom.
Even though there are dozens of details to compare and think about when you're house hunting, security features are important enough to include in your checklist. By letting your real estate agent know that home security is a high priority for you, they'll hopefully point out security features that they notice and perhaps ask the listing agent for any additional information on things like installed alarms systems, deadbolt locks, or security lighting on the property.
As a side note, if the present owner has recently installed an extensive security system in the house, you can also use that as an opportunity (excuse) to inquire about crime in the neighborhood and whether there have been any recent incidents in the area. Additional research may need to be done to ferret out that information.
As you check out different houses that your buyers' agent shows you, here are a few security-related checkpoints to keep in mind:
- Do the doors look solid and are they secured by deadbolt locks?
- Do first-floor windows have functional and securely locking mechanisms?
- Are there any outside floodlights, lamp posts, and/or other forms of illumination around the house?
- Are there any overgrown bushes next to the house that could conceal a burglar's attempt to enter the house through a window?
- Are there any fences on the premises that might discourage a burglar from entering the property?
- Do the main entrances have locking storm doors that provide an extra layer of security?
- Are there any other security vulnerabilities that you or your real estate agent think need addressing, either now or in the immediate future?
When you do find the ultimate house for you and your family, it's always a good idea to change the locks on all external doors as soon as possible. You never know how many duplicate keys have been circulated over the years to contractors, neighbors, cleaning people, pet sitters, house sitters, and family members. One way to take control of your new home's security situation is to make sure there are no extra house keys floating around in the hands of people you don't know.