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Turning a House into a Happy Home

Author:Lori Pitcher
Categories:Home & Garden,Home Improvement,Information,news,Real Estate General Information,Real Estate Market Trends,Realtor Spotlight,Resources

Turning a House into a Happy Home | MyKCM

We talk a lot about why it makes financial sense to buy a home, but more often than not, we’re drawn to the emotional reasons for homeownership.

No matter the living space, the feeling of a home means different things to different people. Whether it’s a certain scent or a favorite chair, the feel-good connections to our own homes are typically more important to us than the financial ones. Here are some of the reasons why.

1. Owning your home is an accomplishment worth celebrating

You’ve likely worked very hard to achieve this dream, and whether it’s your first home or your fifth, congratulations are in order for this milestone. You’ve earned it.

2. There’s no place like home

Owning your own home offers not only safety and security but also a comfortable place where you can simply relax and kick-back after a long day. Sometimes, that’s just what we need to feel recharged and truly content.

3. You can find more space to meet your needs

Whether you want more room in your home for your changing lifestyle (think: working from home, virtual school, or a personal gym), or you simply prefer to have a large backyard for socially-distant entertaining, you can invest in a location that truly works for your evolving needs.

4. You have control over renovations, updates, and your style

Looking to try one of those complicated wall treatments you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Maybe you want to finally adopt that fur-baby puppy or kitten you’ve been hoping for. You can do all of these things in your own home.

Bottom Line

Whether you’re a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that turn a house into a happy home.

The Wheaton/Wass Real Estate Team is here to help.  Call today: 719.822.1444

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The Holidays Aren’t Stopping Homebuyers This Year

Author:Lori Pitcher
Categories:Home Buying,Home Selling,Information,Real Estate General Information,Real Estate Market Trends,Resources

The Holidays Aren’t Stopping Homebuyers This Year | MyKCM

Black Friday and Cyber Monday are behind us, yet finding the perfect holiday gifts for friends and family is certainly still top of mind for many right now. This year, there’s another type of buyer that’s very active this holiday season – the homebuyer.

Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index notes:

“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”

Here’s the breakdown of the latest activity by region of the country compared to this time last year:

  • The Northeast increased by 65.5%
  • The West increased by 64.7%
  • The Midwest increased by 55.7%
  • The South increased by 54.7%

Why is the traffic so active?

The health crisis definitely put homebuying plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.

One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.

Bottom Line

There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you’re thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now.

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Knowledge Is Power on the Path to Homeownership

Author:Lori Pitcher
Categories:Home Buying,Information,Real Estate General Information,Real Estate Market Trends,Resources

 

Homeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying process to pre-approval and down payment assistance options, uncertainty along the way can ultimately hold some buyers back.

Today, there are over 75 million Millennials and 67 million Gen Z’ers in the U.S., making up a significant number of both current and soon-to-be homebuyers. According to a recent Fannie Mae survey of more than 2,000 of these individuals:

“88% said they are confident they will achieve homeownership someday.”

In addition, the survey also reveals that for younger generations, the motivation to own a home may be more emotional than financial compared to previous generations:

  • <50% say they want to use their home as an asset
  • 78% believe it’s the best way to live the way they want, without restrictions
  • 80% believe homeownership is the best way to make it on their own

Whether homeownership goals come from the heart or are driven by financial aspirations (or maybe both), the obstacles standing in the way don’t have to bring these dreams to a screeching halt. The same survey also reveals two key roadblocks for potential buyers. Thankfully, they’re both easily overcome with the power of knowledge and trusted advisors leading the way. Here’s a look at these two challenges potential homebuyers face today:

1. 73% of future homebuyers are unaware of low-down-payment mortgage options

For those who want to purchase a home, low-down-payment options are instrumental to affording one sooner rather than later, especially given the amount of debt many younger adults have accumulated. Fannie Mae also notes:

“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as a limited ability to save and the fear of taking on more debt.”

Today, there are more than 2,340 down payment assistance programs available nationwide to help relieve this pressure. Understanding what’s out there and the options available may help many buyers become homeowners faster than they thought possible. In a year like this, with record-low mortgage rates making their mark in the history books, being able to take advantage of the opportunity buyers have right now is essential to long-term affordability.

2. 64% of buyers expect lenders and other real estate professionals to educate them about the mortgage process

While many people love to do a quick search online to find instant answers to their questions, it isn’t the only way younger generations want to consume information or build their knowledge base. As the survey mentions, having trusted professionals help them learn what it takes to achieve their dreams is definitely on their wish list too.

Bottom Line

If you’re aiming for homeownership someday, it may be in closer reach than you think. Let’s connect so you can learn about the process and get the guidance you need to make it happen.

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Chances of Another Foreclosure Crisis? “About Zero Percent.”

Author:Lori Pitcher
Categories:Information,news,Real Estate General Information,Real Estate Market Trends,Resources

Chances of Another Foreclosure Crisis? “About Zero Percent.” | MyKCM

There seems to be some concern that the 2020 economic downturn will lead to another foreclosure crisis like the one we experienced after the housing crash a little over a decade ago. However, there’s one major difference this time: a robust forbearance program.

During the housing crash of 2006-2008, many felt homeowners should be forced to pay their mortgages despite the economic hardships they were experiencing. There was no empathy for the challenges those households were facing. In a 2009 Wall Street Journal article titled Is Walking Away From Your Mortgage Immoral?, John Courson, Chief Executive of the Mortgage Bankers Association, was asked to comment on those not paying their mortgage. He famously said:

“What about the message they will send to their family and their kids?”

Courson suggested that people unable to pay their mortgage were bad parents.

What resulted from that lack of empathy? Foreclosures mounted.

This time is different. There was an immediate understanding that homeowners were faced with a challenge not of their own making. The government quickly jumped in with a mortgage forbearance program that relieved the financial burden placed on many households. The program allowed many borrowers to suspend their monthly mortgage payments until their economic condition improved. It was the right thing to do.

What happens when forbearance programs expire?

Some analysts are concerned many homeowners will not be able to make up the back payments once their forbearance plans expire. They’re concerned the situation will lead to an onslaught of foreclosures.

The banks and the government learned from the challenges the country experienced during the housing crash. They don’t want a surge of foreclosures again. For that reason, they’ve put in place alternative ways homeowners can pay back the money owed over an extended period of time.

Another major difference is that, unlike 2006-2008, today’s homeowners are sitting on a record amount of equity. That equity will enable them to sell their houses and walk away with cash instead of going through foreclosure.

Bottom Line

The differences mentioned above will be the reason we’ll avert a surge of foreclosures. As Ivy Zelman, a highly respected thought leader for housing and CEO of Zelman & Associates, said:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

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How to Refinance Your Mortgage

Author:Lori Pitcher
Categories:Information,Lending / Financial
refinance your mortgage

With interest rates hovering near historic lows, more and more homeowners are looking to lock in lower monthly payments by refinancing their mortgages. If you’re thinking of refinancing your mortgage loan, here’s how to approach the process.

Step 1: Establish a financial goal

You should have a clear reason for refinancing your mortgage, whether it’s tapping equity for debt repayment, shortening the term of your mortgage, or reducing your monthly payments. Bear in mind that refinancing doesn’t always save you money in the long run. If you’re lowering your interest rate but restarting a 30-year mortgage, you could end up paying less per month, but more over the full term of your loan. This is because most of your interest charges occur in the early years of a mortgage loan. Be sure you will be able to achieve your financial goal before you start the refi process.

Step 2: Know your credit score and payment history

To qualify for mortgage refinance you will need approval from your lender. The better your credit score, the more likely you are to get approved. You will also enjoy better interest rates if your credit score is high and your payment history is sound. It may make sense to spend a few extra months improving your credit score before you begin the refi process.

Step 3: Figure out your established home equity

Your home equity is the current value of your home minus what you still owe on your mortgage. To determine yours, get your current outstanding balance from your mortgage loan statement. Then, get a local real estate agent to run an analysis to determine your home’s current estimated value. Your equity will be the difference between the two. For instance, if you still owe $225,000 on a home that’s worth $300,000, your equity will be $75,000.

Although you might be able to refinance your loan with as little as 5 percent equity; you will get better rates and have to pay fewer fees if you have at least 20 percent equity. When it comes to equity, the more you have, the less risky the loan is from the viewpoint of your lender.

mortgage refinanceStep 4: Compare lenders

You can save thousands of dollars during the refi process by getting quotes from several different lenders. Once you settle on a specific lender, ask when it will be best to lock in your interest rate, so you won’t lose money if rates start to climb before your loan closes.

In addition to comparing lender interest rates, inquire about fees and ask if they will be rolled into your new mortgage or due upfront. It’s not uncommon for some lenders to offer “no-closing-cost loans” that ultimately add to the loan balance or come with higher interest rates.

Step 5: Document your finances

Your lender will want documentation that gives clear insight into your finances. Gather bank statements, recent pay stubs, federal tax returns and anything else your lender needs to process your application. Your lender will also look at your net worth and credit history, so be prepared to disclose your liabilities and assets upfront. By having all of your documentation available upfront, you can streamline the refi process.

Step 6: Prepare for the home appraisal

In some instances (but not always), your lender may require an appraisal to determine the property’s current market value. If so, you should expect to have to pay a few hundred dollars for the appraisal. Be sure to let the lender know of any repairs or improvements you’ve made since buying your home since this could lead to a higher appraisal.

Step 7: Raise some closing cash

Although you may be able to lower your monthly costs by refinancing your mortgage, it will cost you some money in the short-term. The loan estimate and closing disclosure should list how much money you are expected to pay out of pocket to close on your new mortgage. You can finance your closing costs, but this will generally result in a higher rate on your loan.

Step 8: Monitor your new loan

Once you close on your new mortgage loan, be sure to store copies of your closing paperwork. You should also consider setting up autopayments to make sure you always remain current on your loan. Some lenders will even give you a lower rate if you agree to sign up for auto-payments.

Bear in mind that some lenders will resell loans on the secondary market after closing or, in certain instances, years later. This means you will owe mortgage payments to a completely different company, so watch for any mail notifying you of such changes.

With six decades of collective experience, The Wheaton Team provides expert advice and invaluable guidance for clients. Our team specializes in residential real estate throughout the Tri-Lakes area and all of Colorado Springs. We can guide you through the complex buying, selling and financing process, so you can bring your vision to life.

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Common Mistakes to Avoid When Home Staging

Author:wpengine
Categories:Home Selling,Information
home staging

Staging is a critical part of the home selling process. Ideally, you want to downplay the property’s weaknesses, highlight its strengths and appeal to the greatest possible pool of potential buyers. Unfortunately, far too many sellers mismanage the staging process. Here are some of the most common staging errors that turn off buyers.

Over-Personalizing

Since taste is subjective, it’s important to avoid putting a personal stamp on your design scheme. You may love that rustic painting or wildly patterned throw pillow, but buyers may not share your opinion. Likewise, while your family photos and collectibles may seem like treasures to you, they will make it harder for prospective buyers to imagine themselves living in the home. When a buyer enters your home, they should see clean lines and a welcoming, neutral home environment. Be sure to depersonalize the property before you schedule a showing.

Going Too Neutral

While it is important to make your home feel clean, airy and relatively neutral; you can go too far. Without at least some color, a home can appear boring, bland and sterile. Some flowers and fruit baskets can help enliven the home. A general rule of thumb is to make sure your furniture is neutral and infuse a bit of color here and there with pillows, rugs and throw blankets. Avoid painting rooms with non-neutral colors, since this can make them feel dark, small and closed-in.

home staging mistakes to avoidNot Making Repairs

Unless they are especially picky, most buyers are willing to accept a few minor imperfections. When they neglect to make important fixes, however, sellers are inviting low-ball offers. While you don’t have to spend money perfecting your home, you should definitely shore up any structural issues and eliminate aesthetic eyesores. Talk to your agent about which types of repairs and improvements are most important and which aren’t necessarily worth the expense.

Making Rooms Seem Like Dungeons

Dark, poorly lit rooms do not pique buyer interest. It’s important for sellers to remove draped tassels, bulky fabrics, heavy or dark-colored window treatments and anything that blocks light. It’s generally best to go with light or translucent curtains that accent windows without blocking too much sunlight. It’s also best to add a light source in any room with fewer than four lights. It’s best to use warm or soft LED white bulbs with at least 800 lumens. You should also be sure all bulbs in your house are the same so rooms have a seamless, cohesive feel.

Not Prioritizing

When it comes to selling a home, not all rooms carry the same weight. Ideally, you want to focus your time and money on rooms that have the greatest potential to influence a buyer’s decision. These include the kitchen, master bedroom and living area. While children’s bedrooms, guest bedrooms and bathrooms also matter, they should generally take a backseat to these other critical areas.

Over-Staging

The best way to prepare your home for sale is to eliminate clutter as much as possible. When professional stagers prep a home for market, they often remove up to half the owner’s furnishings to make the property look bigger. Ideally, you want prospective buyers to be able to move from room to room without having to navigate through chairs, couches and loveseats. You also want to minimize items on the coffee table and avoid piling pillows onto furniture, since all of this can make a home look cluttered, small and unappealing.

Unfortunately, inexperienced stagers tend to have trouble restraining their impulses to do more than they should. They seed the air with artificial scents and air fresheners. They clutter rooms with too many decorations, pillows and chairs. They try to overcompensate for small floor plans by adding furniture to make the home look lived in. These rookie mistakes are so common, it’s often surprising for buyers when they walk into a properly staged home that stands out from similar properties on the market.

It takes experience and expertise to strip away needless clutter while still maintaining a warm, inviting feel. This is why it’s generally best to work with a real estate agent who knows how to professionally stage a home to appeal to a wide array of buyers.

Thinking of selling your home? The Wheaton Team is here to help. With more than six decades of collective experience, our seasoned professionals specialize in residential real estate throughout Colorado Springs and the Tri-Lakes area. Let us guide you through every step of the staging and selling process, so you can close at a price that meets your expectations.

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Buying In A Historic Neighborhood: What To Know

Author:wpengine
Categories:Home Buying,Information
historic neighborhood

Owning a home within a historic district provides a unique opportunity to celebrate and share the history of your property. It can also be a worthwhile investment since historic homes tend to maintain great property value even in slow real estate markets. To better understand the pros and cons of this type of investment, consider the following.

It comes with limitations. 

If you choose to buy a home in a designated historic district, there may be certain restrictions on what you can do to your property’s exterior. This can include everything from painting to installing new windows. Before you begin any type of renovation or upgrade, you will need to check with your local planning department to get the ok.

Districts listed only on the National Register of Historic Places don’t typically restrict what you can do to your property; that said, areas on a local or state registry often impose restrictions. While such restrictions can limit your options, they apply equally to everyone. This means you won’t have to worry about your neighbors painting their exteriors with an atrocious shade of pea green.

Easements are binding

When you set up a historic preservation easement, it will protect the historic integrity of your property in perpetuity. This legal tool imposes restrictions on what can happen to the home and requires any future owners to adhere to your rules.

You will typically pay a government agency or qualified preservation organization to hold the easement, and your payment may qualify for a federal tax deduction. Before buying a historic home, it’s important to find out if any sort of easement is already in place. You should also determine what the easement entails and who holds it.

Maintenance can be expensive.

buying in historic neighborhoodHistoric homes stand the test of time because they are structurally sound. Many people are surprised to learn that homes built in the 1980s can actually deteriorate faster than homes built in the 1800s. It all depends on the original workmanship and the quality (and consistency) of maintenance.

If any of this is lacking, you could end up paying thousands of dollars in repairs and restorations. It’s best to exercise caution if you’re thinking of purchasing a historic home that needs extensive work. Some state historic preservation offices will provide grants or tax benefits for homeowners. These can help with maintenance and repair costs for the exterior of registered properties.

Whatever the case, even structurally sound historic homes are likely to require steady maintenance to help them hold up against Father Time.

It can be difficult to get insurance and financing. 

Some lenders may hesitate to provide financing for a historic home that needs extensive repairs. In some instances, you may be unable to secure a traditional loan backed by the U.S. Department of Housing and Urban Development. You may, however, be able to acquire a private HUD Title 1 loan to cover smaller repairs.

You can also look into acquiring rehab mortgage insurance which can help pay for the purchase of the home and some of the rehab costs. You may also be able to apply for a Fannie Mae HomeStyle Renovation mortgage for similar purposes.

Bear in mind that some insurance companies are reluctant to provide policies because they often assume that replacement costs are higher for designated historic homes. You will have an easier time getting insured if your property is only federally registered and free of restrictions. Whatever the case, expect to spend some time shopping around for a decent homeowner’s insurance policy.

Historic homes are old. 

Although most lenders typically won’t demand a home inspection, it’s best to get one before purchasing an older home. While an average inspector may be great at uncovering problems with modern homes; they may not have the expertise to properly inspect a historic property. It’s best to find an inspector who has extensive experience with historic homes and the unique issues they present, such as the possible presence of asbestos and lead paint.

It’s also important to understand that historic homes may not be able to satisfy your modern-day desires. You simply may not be able to install a fully equipped kitchen or expansive master bathroom amid historic architecture. What’s more, any upgrades you make could actually devalue your home.

With this in mind, it’s best to ask yourself a few questions before you consider making a purchase. Are you viewing it as an investment or a home? Can you live without modern conveniences, and how will any changes you make affect the home’s character and resale price? It’s important to carefully assess your goals, so you won’t be blindsided by the realities of owning an older property.

If you’re interested in buying a home, The Wheaton Team can help guide you through the complicated buying process so you can find the home of your dreams. Contact us today to learn more.

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Author:Lori Pitcher
Categories:Home Buying,Home Selling,Information,Lending / Financial

Two Important Impacts of Home Equity

Two Important Impacts of Home Equity | MyKCM

Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 in equity over the past year. In addition, experts project 2020 home prices to continue rising. With prices going up, equity gains will also keep accelerating. Black Knight just reported:

“The annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”

Jeff Tucker, Senior Economist at Zillow, just qualified recent price increases as “jaw-dropping” and “within a hair’s breadth of double-digit year-over-year appreciation.”

Knowing equity will help enable many homeowners to better survive the economic distress caused by the ongoing pandemic, it’s important to break down two key homeowner benefits of increasing equity.

1. Equity Increases a Homeowner’s Options to Buy a New Home

Aside from the financial damage of the last seven months, there has also been a tremendous emotional toll on many people. Shelter-in-place mandates, quarantine requirements, and virtual schooling have all made us re-evaluate the must-have requirements a home should deliver. Having equity in your current house gives you a better opportunity to move-up or build your perfect home from scratch.

Mark Fleming, Chief Economist at First American, recently explained:

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”

If you need to make a move, the equity in your current home can help make that possible – right now.

2. Equity Enables Homeowners to Help Future Generations

An increase in home equity grows overall wealth, which can transfer to future generations. The Federal Reserve, in an addendum to their recent Survey of Consumer Finances, explains:

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”

The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:

“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”

Bottom Line

Equity can help a homeowner grow their confidence in a more stable financial future. It provides near-term move-up options and creates a positive impact for future generations. In many cases, the largest single investment a person has is their home. As that investment appreciates in value, financial options increase too.

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6 Things To Consider When Applying For Mortgage Relief During A Pandemic

Author:wpengine
Categories:Information
mortgage relief during pandemic

The recently enacted CARES Act provides a certain level of relief for borrowers who have experienced financial hardship as a result of the Coronavirus outbreak. How does it affect homeowners with federally-backed mortgages? Here’s what you should know.

  1. What it Does

The Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) directs banks and other lenders to suspend a qualified borrower’s federally-backed mortgage payments for up to 360 days. The CARES Act also stipulates that lenders or loan servicers may not foreclose on qualified borrowers until at least December 31, 2020. All of this is designed to help prevent foreclosures and avert another mortgage crisis like the one in 2008.

  1. Who Qualifies?

To qualify for mortgage forbearance as outlined by the CARES Act, a borrower must have experienced financial hardship due to the COVID-19 outbreak. This could mean you lost a job due to the outbreak. It could also mean you couldn’t work because you fell ill, or you had to stay home from work to take care of a sick family member. Whatever the case, if you were financially affected by the outbreak or state-imposed restrictions, you likely meet the criteria for relief under the CARES Act.

With that said, a borrower is only entitled to mortgage forbearance if they have a federally or GSE-backed mortgage loan.

  1. How to Request Mortgage Relief

Since your mortgage relief options depend on who backs or owns your mortgage, you need to figure out who actually services your loan. This will almost always be the company that you send your payments to each month. If you aren’t sure, call them to find out.

If you have a federally or GSE-backed mortgage loan and have experienced financial hardship due to the pandemic, you have a right to obtain a forbearance for up to 180 days. You also have the right to obtain an extension for an additional 180 days if necessary.

Start by calling your loan servicer. Be prepared to answer a few questions. It can help to review this script provided to services by the federal government.

  1. What Should I Ask?

In addition to answering key questions, you will want to ask a few questions of your own. These should include:

  • What criteria will you use to determine whether I am granted a forbearance?mortgage relief
  • What are my rights if I do not agree with your final determination?
  • What options do I have to help temporarily suspend or reduce my payments?
  • Are there loan modification, forbearance or other options that apply to my situation?
  • Are there any fees associated with each option?
  • When will you waive all the late fees on my federally or GSE-backed mortgage account?
  • What should I do at the conclusion of my approved forbearance period?
  • Will I owe interest on unpaid mortgage payments during the forbearance period?

Once you secure forbearance or another mortgage relief option, ask your servicer to deliver written documentation confirming the details of your agreement.

  1. What if Your Mortgage Doesn’t Qualify?

If you do not have a federally or GSE-backed mortgage loan, contact your servicer to ask what options are available to you. The Consumer Financial Protection Bureau and other financial regulators have strongly encouraged lenders to work with borrowers to help prevent foreclosures and delinquent payments due to COVID-19.

  1. What to Do After Receiving Mortgage Relief

During your coronavirus forbearance period, there are a number of other things you can do to protect yourself. This includes paying attention to your monthly mortgage statements and stopping any auto-payments for your mortgage. You should also keep a close eye on your credit rating and make sure you or your loan servicer is keeping up with property taxes and insurance payments.

Once your income is fully restored, it’s important to contact your servicer and resume your payments as soon as possible. With forbearance, you will still owe the payments you missed, and fewer missed payments will reduce the amount you owe down the road.

With 60-plus years of combined experience, The Wheaton Team provides expert advice and guidance for clients. Our team specializes in residential real estate throughout all of El Paso County, including the Tri-Lakes area and all of Colorado Springs. Let us guide you through each step of the buying, selling and financing process, so you can turn dreams into reality.

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Why Pricing Your House Right Is Essential

Author:Lori Pitcher
Categories:Home Selling,Information,Listings,Real Estate General Information,Real Estate Market Trends,Resources

Why Pricing Your House Right Is Essential

Why Pricing Your House Right Is Essential | MyKCM

In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.

According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values will continue climbing into next year. Today, low inventory is largely keeping prices from depreciating. Danielle Hale, Chief Economist at realtor.com, notes:

“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.”

When it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.

How to Price Your Home

As a seller, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. You’re thinking, higher price, greater profit, right? But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers and have them looking at the houses your neighbors are selling instead.

Even today, when the advantage tips toward sellers because there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running in the other direction if it isn’t priced just right.Why Pricing Your House Right Is Essential | MyKCM

A Trusted Real Estate Professional Will Help

It’s important to make sure your house is priced correctly by working in partnership with a trusted real estate professional. When you price it competitively, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the home, and that’s what ultimately increases the final sale price.

The key is making sure your house is priced to sell immediately. That way, it will be seen by the most buyers. More than one of them may be interested, and your house will be more likely to sell at a competitive price.

Bottom Line

If you’re thinking about listing your house this fall, let’s discuss how to price it right so you can maximize your exposure and your return.

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