Lee Morof's Real Estate Blog

The real estate market has been red hot this year, with many people looking to purchase a home because of record-low interest rates. This includes younger individuals, as younger generations are interested in owning a house for the first time. The past couple of years have been anything except normal, and the housing market has taken off, with demand far exceeding supply. Why is this taking place?

Record Low-Interest Rates Are Driving People Into the Market

Even though there are many reasons why people are interested in purchasing a home, incredibly low-interest rates are one of the biggest reasons. Many people are interested in taking out a home loan with a 30-year term. Potential homebuyers think that they may never see interest rates this low again. As a result, many are looking to capitalize on this opportunity before it disappears. This is increasing competition for homes on the market, driving up their values.

Interest Is Skyrocketing Among Younger Individuals

Record-low interest rates are appealing to just about everyone, but it is a particularly attractive option for young homebuyers. Many are just beginning their careers and are looking for ways to build wealth. One of the best ways to do so is through homeownership. Many research bureaus have noted that there is a sharp increase in younger individuals looking at houses. 

Many Are Facing An Uphill Battle

Even though there are many young individuals and families looking for houses, there are a number of challenges they will need to overcome. One of the biggest challenges is that there is a historic shortage of inventory. Even though potential homeowners might be able to lock in a low interest rate on a loan, they might not find a house they can purchase. It is difficult for young home buyers to compete against older individuals and families who can make a cash offer. If a bidding war takes place, younger homeowners rarely have the cash to come out on top. 

Asking For Help Is Key

Even though today’s mortgage rates are attractive, it is critical not to overpay for a house. Asking for help from a professional can help potential homeowners make the right decision. 

Today’s home buyers are savvier about their buying options than ever before. They are able to research prices, browse listings, and investigate other important factors before even making the first call to a real estate agent. So professional photography and video can make the difference between your home getting a second look or getting skipped. In today’s blog post we’ll explore how professionally-shot aerial photos and videos can help you get your home sold that much quicker.

Buyers Love Having a Birds-Eye View

It’s increasingly likely that buyers will look for aerial photography to help them make their buying decisions. Just like professional ground-level photos of the home and property, and like the video tour that really gives that first-hand feel, aerial shots are something buyers like when evaluating properties.

People enjoy looking at aerial content because it gives them a new perspective. That helps them feel good about their choice to pursue a property. Plus, they take you seriously when you take marketing your property seriously using quality material.

Quality Material Makes Your Property Look Good

Professionals create quality products. They have the skills, tools, and professional eye to make your property and its best features look amazing. Quality marketing materials can even shorten sale time and raise the final list price, too.

Aerial footage is especially effective when topography, land features, and amenities are best displayed from above. Professional aerial shots can really enhance the overall impression of your property.

Professionals Are Certified

The use of unmanned aerial systems – what we commonly call “drones” – is becoming more frequent in the production of commercial photos and videos. But that doesn’t mean there aren’t issues.

Current Federal Aviation Administration regulation requires that UAS equipment be certified and operated by a certificated pilot when used for commercial purposes. This means that you can’t just buy a drone and take pictures to sell your house. You can’t pay your real estate agent to take them either, unless they also meet the FAA regulations. Hiring a certified operator can save you fines or even legal trouble down the road.

When you’re ready to take marketing your home to the next level, contact a reputable real estate agency to get started. Professionally shot aerial photos and videos can really make the difference for a prospective buyer when they make the list of “must-see” listings.

Home sellers often feel like there may only be a small window of opportunity to sell their home. Winter is typically regarded as a “waiting period,” until buyers start being active again. But winter may be a great time to sell and move.

Your House Will Probably Have Less Competition

More and more sellers are realizing that winter can be a favorable time to put a house on the market. Still, when you decide to sell during the winter months, you’ll have much less competition due to lower inventory. In turn, this will make your house stand out and capture more attention from interested buyers.

Multiple Offers Are Likely

For the same reason that your home will have less competition, it’s likely that you’ll receive multiple offers when you list your house in the winter. You could even have a situation where there’s competitive bidding on your house! This is due to low inventory, as well as buyers’ eagerness to get settled into their new home before the first daffodils have broken ground in the spring.

Houses Sell Faster In Winter

Statistics show that houses are on the market for shorter periods of time in winter than in other seasons. The average tends to be just a little over two weeks. Again, this is likely due to buyers wanting to hurry and move into their new home so they can be ready for the first beautiful spring days.

Now Is A Great Time To Sell

Home values are at record highs right now. At the same time, mortgage rates are still at historically low rates. Therefore, this perfect storm of opportunity is ideal for both sellers and buyers. You can likely get a great sale price on your home, and your buyers will be getting terrific low rates on borrowed money to buy. It’s a win-win situation that you should take advantage of!

Don’t wait any longer to list your home for sale. If you’ve been planning to move, now’s the time to win when you sell and move. To make the transaction easy, contact a licensed real estate agent in your area to get started.

Small backyards are not the detriment that sellers seem to worry about. By putting in some work, any homeowner should be able to turn the smallest backyard into a selling feature by highlighting its assets.

Here are some surefire ways to change a cramped backyard into a cozy, outdoor paradise:

Invest In Size Appropriate Outdoor Furniture

Too many people with small backyards make the mistake of picking out patio furniture that is meant for a larger space. While this may not matter for the people living in the house, it will make a world of difference to anybody looking to buy.

Large furniture will make the yard look even smaller and cramped by comparison. Patio furniture is made in all shapes and sizes, and picking out smaller pieces to use in the backyard will make the space look larger and help play to its strengths.

Open Spaces Ignite The Imagination

Too many sellers go overboard in the staging process and end up with a result that has the exact opposite effect. While a fire pit or a water feature will add value to the home, in a small backyard these features can be cumbersome if they are all used simultaneously.

Focus on one or two signature areas, a seating area, water feature or barbeque are good examples, and keep the rest of the yard open and clear so that it looks larger and the buyers can imagine what they could do with the space. Many young couples are looking for a home to raise kids in and a clear backyard helps them visualize the space children have to play.

Treat The Backyard The Same As The Front

While curb appeal is important, it’s easy to forget that the same rules should apply to other outdoor areas of a house. Considering a yard is high on the list of criteria buyers look for in a new home, especially those starting a family, the backyard should be given the same treatment as the front yard.

Remove clutter, weed the gardens, trim the trees and put away any toys, tools or grills that are not part of the staging to keep visitors’ eyes drawn to the actual yard and not lingering away to something unsightly that wasn’t cleaned up.

With enough work and imagination, there are ways to make any perceived drawback into a selling point. Any real estate professional will be able to look through your home and help identify trouble areas and how to fix them.

Last week’s economic reporting included readings on construction spending and labor sector readings on jobs and unemployment. Weekly reports on mortgage rates and jobless claims were also released.

There’s a good chance if your children have recently moved out that your home is feeling a lot larger than it used to, and perhaps you’re re-considering the extra space. If downsizing to a condo is on your mind and you’re weighing the benefits of this kind of move, here are some that might make it worth the switch in size.

A Little Extra Money

With the additional money you should be making off the sale of your home, there’s a good chance that downsizing may provide you with extra assets to sock away for retirement, travel or whatever your heart fancies. If you don’t need the money, it might not matter, but in the retirement years a little extra can be of benefit for many.

Minimize Your Costs

Usually, there are many utility and heating costs that go along with home ownership, but by moving into a condo you can alleviate many monthly payments instantly. Instead of paying for every utility, condo living can help to simplify and minimize the amount you owe each month.

Free Up Your Retirement

Often times it may seem like home ownership is the dream, but many people approaching retirement would rather have the flexibility of renting. Because there are limited responsibilities with a rental, it means you can spend the winter months in Mexico without having to worry about who will take care of your home.

A Condominium Community

The great thing about many condo buildings is that they are built close to amenities like grocery stores, drycleaners and restaurants, so you don’t have to worry about venturing far out. It might not seem important if you’re used to driving to the store to make your purchases, but being able to walk might make you a convert to a different way of life.

Forget About The Maintenance

If you’ve gotten used to all of the maintenance that goes into a home, downsizing can be a great relief in terms of the time you’ll be saving. Instead of a lawn to cut or a multi-level home you’re responsible for, you’ll be able to rely on the building manager to do this for you.

It can be comforting to have a home you’ve bought and paid for that belongs to you, but by downsizing you may be able to save on time and significantly lower your living costs. If you’re considering purchasing a condo and would like to learn more about your options, you may want to contact one of our local real estate agents for more information.

One of the top ways to build wealth is to own a home; however, it can be challenging to qualify for a home loan. Not everyone has the finances to maintain a house, and some people might not be ready to settle down for a prolonged amount of time. Therefore, everyone has to think carefully before deciding homeownership is the right move. What are the top signs that someone is ready to be a homeowner? 

There Is Enough Money for a Down Payment

One of the top signs that someone is ready to be a homeowner is that they have enough money for a down payment. Even though it might be possible for someone to qualify for a first-time home loan with only 3.5 percent down, this might not be the best financial move. Putting more money down could secure a lower interest rate, helping someone save thousands of dollars over the life of the loan.

The Credit Score Is High Enough

For someone to afford a home, they need to have a solid credit score. A credit score is a reflection of someone’s financial character. Most lenders have a minimum credit score someone has to achieve before they can qualify for a home loan. There are many credit monitoring systems that will provide a free credit report, so potential homeowners should frequently check the report and make sure there are no inaccuracies. Then, when the credit score is high enough, it might be time to apply for a home loan. 

Geographic Stability

Finally, potential homeowners should make sure they are going to stay in one place for the foreseeable future. There is not a lot of stability when renting. A landlord could decide to terminate the lease, or they could decide to sell the property entirely. This is not an issue with homeownership. If someone is not planning on moving in the near future, they should consider buying a house. 

Consider The Prospect Of Homeownership

These are a few of the top signs someone is ready to own a home. Anyone who is tired of throwing money away on rent should consider purchasing a home instead. This is one of the top ways to build wealth and save for retirement.

Are you currently shopping for a new home? While it’s true that real estate transactions can be stressful, this stress can be minimized by following a few simple tips. For example, following proper etiquette plays a big role in making your real estate experience go smoothly, and in this post we’ll share four key etiquette tips that are sure to help.

Get Preapproved

Prior to shopping, a buyer should check with a lender to determine the maximum loan amount they qualify for. This is proper etiquette because both the seller and the real estate broker have likely prepared themselves and assume you have as well.

Keep It Professional

Shopping for a home seems personal, but keeping interactions on a professional level can ease the awkwardness of the process. One step in that direction is being considerate of others’ schedules. Proper etiquette includes being realistic about how many properties can be seen in a span of time. Allowing time for a sellers’ special conditions, pets or children is also good etiquette.

Negotiate Through A Representative

When it’s time to negotiate pricing between a buyer and seller, the real estate agent should be used as the intermediary. While touring a property, it is best not to make offers or discuss how much the house is priced for, or make any counter offers without involving the real estate agent. It is also not advisable to point out stains, outdated designs or noticeable damage in the hopes of getting a discount.

Use Closing Credits

Home sellers should not be surprised once a buyer has decided to close and begins to negotiate the price. Home inspections reveal problems a home has and the buyer’s willingness to continue negotiating can depend on how willing the seller is to address those problems. A closing credit can be a win-win for both parties. If the buyer and seller of the home agree on closing credits instead of repairs and inspections, the buyer has the option of hiring a contractor and dealing directly with the contractor if not satisfied. Meanwhile, sellers are typically ready to move out or are not living at the property, so closing credits save them time.

Well-mannered people handle real estate transactions in a way that lets them join the ranks of successful buyers and sellers who operate with as little stress as possible. The good news is that real estate agents can help with understanding what proper home-buying etiquette is. Call a real estate agent to receive guidance on how to navigate a real estate transaction with ease.

One of the most common dreams is homeownership; however, the cost of buying a house is rising quickly, and many children cannot afford to buy a house even after they finish school. They might be encumbered with student loans, and they could have a difficult time finding a job. Fortunately, there are ways parents can help their adult children buy a home.

Help Children Build A Healthy Credit History As Early As Possible

One of the biggest factors involved in an application for a home loan is the credit score. One reason why children have a difficult time qualifying for a home loan is that their credit scores are not high enough. They simply do not have a lengthy credit history. Parents should help their children build credit as early as possible. One way to do that is to help them take out a credit card and co-sign for it, giving children a lengthy credit history of on-time payments when they apply for a home loan.

Let Children Live At Home Temporarily

Another obstacle that gets in the way of homeownership is the size of the down payment. For children to qualify for a home loan with a favorable interest rate, they need to have a sizable down payment. It can take a long time for children to save 20 percent for a down payment, so parents should consider letting children live at home temporarily, rent-free, so they can save money for a down payment.

Offer To Be A Co-Signer

Finally, parents can also make it easier for children to buy a home by co-signing for the loan. While some parents might be reluctant to do so, this could be the best way to help children qualify for a mortgage. If parents are confident that their children can afford the mortgage, they should consider becoming a co-signer to give the lender a greater degree of confidence.

Make It Easier For Adult Children To Buy A Home

These are a few of the best ways parents can make it easier for their children to purchase a new home. Even though homeownership can be a challenge, it doesn’t have to be a fantasy. Parents should start planning for their children as early as possible to make it easier for them to qualify for a home loan.

Last week’s economic reporting included readings from S&P Case-Shiller Home Price Indices and the National Association of Realtors® released its monthly report on pending home sales. Weekly reports on mortgage rates and jobless claims were also released.