Why Sellers Are So Stressed in a Seller’s Market

Home sellers say the greatest challenge for them this year is the lack of homes to choose from when it’s time for them to move, according to a new survey of more than 800 real estate professionals from Redfin.

“It’s a seller’s market, but the catch is, most sellers need to buy as well,” says Eileen Lorway, a Redfin real estate professional in the Boston area. “This is a conversation I have with many clients at our first meeting. We discuss options like ‘seller to find suitable housing’ contingencies for the sale contract, ‘purchase contingent on sale of current home’ options for the buy offer, rental options, stay-with-family options, and bridge loans. Sellers who are buying need to think outside the box a little bit. It’s not easy, but we often do end up closing on sale and purchase on the same day.”

Lorway also encourages more of her sellers lately to sell first, then buy. They will need to consider temporary housing options, but “then they will be able to take the time they need to find their dream house, know exactly what they’ll have to work with financially, and won’t end up adding unnecessary contingencies to offers, which will give them a better chance to get the home,” Lorway says.

Inventories of homes for sale have hit record lows in many parts of the country. Buyer demand, however, remains high. About fifty-seven percent of real estate professionals surveyed by Redfin say they have been involved in at least one instance of a home receiving 10 or more offers this year.

Source: “Lack of Homes for Sale Is a Problem for Sellers, Too,” Redfin (March 31, 2017)

Millennials Buying Big in the ‘Burbs

Millennials are calling. They want the suburbs back.

Like generations before them, millennial homebuyers are beginning to shy away from city life, taking up residence in the suburbs—with one key difference.

According to a report by Zillow, millennial homebuyers are passing over starter homes, paying up for square footage typical of older generations: roughly 1,800 square feet.

Their preferences, however, reflect those of their older counterparts—specifically, an appetite for community amenities and townhouses.

“Millennials have delayed home-buying more than earlier generations, but don’t underestimate their impact on the housing market now that they’re buying,” says Jeremy Wacksman, CMO at Zillow. “As members of this huge generation start moving into the next stage of life, expect the homeownership rate to tick up and suburbs to change to suit their urban tastes. We’re constantly learning about this young group of homebuyers—we’re finding that they are more similar to older generations than many thought. Their views on community and homeownership are pretty traditional, and they don’t all fit the urban stereotype you might have in your head.”

Millennial homebuyers are also putting down roots like older generations—64 percent of those who moved in 2016, in fact, stayed within the same city, and only 7 percent relocated to another state, according to the report.

Half of millennial homeowners are in the suburbs, while 33 percent are in urban areas and 20 percent are in rural areas. Forty-two percent of homebuyers in 2016 were millennials.

For more information, please visit www.zillow.com.

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10 Tips for Homebuyers and Sellers This Spring

Spring is here, and so is spring home-buying and -selling. Buyers and sellers preparing to take action this season should put those plans into play now—according to Zillow Group’s Report on Consumer Housing Trends, the No. 1 regret for both buyers and sellers is “not starting their home search or prepping their home to sell soon enough.”

“This spring, both buyers and sellers should be prepared for fast-moving sales, intense negotiations, and even bidding wars,” says Jeremy Wacksman, CMO at Zillow Group. “Home shoppers and sellers are motivated to become more strategic and knowledgeable about what’s happening in their neighborhood. Understanding whether you are in a buyer’s or a seller’s environment will help you manage your expectations and will give you insight into what you’re going to need to bring to the table in order to close the deal.”

For buyers, that means:

Keep your options open. More than half (52 percent) of homebuyers surveyed in the report said they also considered renting, and more than one-third (37 percent) of first-time buyers seriously considered continuing to rent. Savvy shoppers should have a Plan B in place, hoping to buy if it works out, but willing to sign a lease for a home if they don’t make a deal by the time they need to move.

Be realistic with your budget. Once you set it, stick to it. First-time home buyers are more likely to exceed their budget than repeat buyers (39 percent versus 26 percent), according to the report. Before you meet with a lender to determine how much mortgage you’ll be approved for, take a good look at your individual finances and spending preferences to determine the monthly payment range that you feel you can comfortably afford. (Use Zillow’s mortgage calculator to help with you with the math.)

Get your financing squared away early. Plan to meet a few lenders four to six months ahead of when you’re planning to buy to ensure you can make a competitive offer quickly when you find your dream home. The majority (82 percent) of buyers get pre-approved, with 77 percent getting pre-approval from a lender before finding a home on which they are interested in placing an offer.

Find an agent with a winning track record. Take the time to find an agent who has expertise in fast negotiation, leveraging escalation clauses, and winning bidding wars. Only 46 percent of buyers got the first home on which they made an offer, according to the report, demonstrating that competition is now part of the process. Use search tools, like Zillow’s Agent Finder, to choose an agent based on sales and listing activity, area of expertise and reputation.

Communication is key. Make sure your preferred method—and frequency—of communication matches that of your agent. One-third (33 percent) of all buyers surveyed in the report preferred phone calls with their agent over emailing (21 percent) or texting (15 percent). Buyers can use the agent reviews on Zillow to learn more about prospective agents and their clients’ experiences.

And for sellers:

Start early and be strategic. Sellers consider putting their home on the market for five months before they list it—but the top seller regret is that they wished they spent more time prepping for the sale. Many cities have a magic window in the spring when homes have a higher likelihood of selling quickly for more money.

Work with an agent from the start. The vast majority (90 percent) of sellers surveyed in the report who sold quickly and for more than list price worked with an agent, and two out of three (58 percent) began working with an agent at the very beginning of their selling journey.

Pay attention to your online curb appeal. The majority of buyers begin their search online. Sellers who sold their home for more than list price made imagery and home information available online: 48 percent had professional photos taken of the home; 30 percent shot video footage; and 21 percent shot drone footage. Zillow’s video walk-throughs give sellers an easy way to show home features that are hard to capture in photos.

Home improvements can be a worthwhile investment. Sellers who fetched above list price tackled home improvements before listing their home, being 50 percent more likely to take on a large project like modifying an existing home plan and 20 percent more likely to renovate a kitchen than the average seller.

Don’t be afraid to try again. In many markets, nearly half of listing views occur in the first week the home is on the market. Twenty-six percent of those who sold above list price took their home off the market once to adjust the sales price, opting to start anew, rather than letting the home languish on the market with minimal activity. 

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

6 Things Every Homeowner Should Know About Property Taxes

(TNS)—You might not have factored in property taxes when planning to buy your dream home, but the cost of homeownership goes beyond your mortgage payment. It’s important to discover how your property tax bill works—once you know how it’s calculated, you can challenge it if you feel it’s too high. Additionally, property taxes can be a valuable write-off, and as a homebuyer, you should take advantage of all of the available tax breaks for homeowners. Here are six things every homeowner should understand when it comes to property taxes.

You might need to pay different types of property taxes.
Home property taxes include your annual assessment and direct assessments, which are flat fees for specific services such as street cleaning or landscaping. Some localities also impose special assessments to pay for a specific project, like a new park or library. When you’re buying a home, research how much its property taxes are—including direct and special assessments—so you can budget for your future as a new homeowner.

A tax assessor calculates your property tax.
To calculate property tax, the tax assessor attaches a property value to your home and makes adjustments based on local rules to determine the assessed value. For example, your county might calculate property taxes based on 20 percent of your home’s assessed value, so the county assessor would multiply the fair market value of your home by 20 percent to determine the assessed value.

The assessor divides the assessed value by 1,000 and then multiplies that by the mill rate—the number that represents the amount per $1,000 of the assessed value of the property—to calculate your property tax bill. For example, if the mill rate is seven and your home has a taxable value of $150,000, your property tax bill would be $1,050.

Property tax rates vary depending on where you live. It’s important to know that your tax bill might increase if you’re adding additional square footage to your home, because completing construction on a renovation could increase your home’s value.

Property tax due dates vary.
Property tax due dates vary depending on where you live. Some counties require you to pay the annual property tax bill in one payment and others break it up into two installments. If you receive two tax notices, don’t assume the second one is a duplicate bill.

Different states and counties accept various forms of payments. For instance, some allow you to pay property taxes with a credit card online; if you pay by card, you’ll likely have to pay a convenience fee equal to a percentage of your bill.

If you have a mortgage, you might pay an extra amount each month into an escrow account, which the bank uses to pay property taxes on your behalf. For example, if your annual real estate taxes are $1,200, you would pay an extra $100 on your mortgage each month. Consider the fees before paying property tax online with a credit card, because it could end up costing you more than what you’d earn in credit card rewards.

You could be subject to interest and penalties for not paying property taxes.
If you don’t pay your property taxes on time, you could owe interest and penalties. If you continue to be delinquent, the government could put a tax lien on your home or foreclose on it and sell it to generate cash to pay your bill.

If you have a lien on your home, any proceeds from a sale go first to pay off the delinquent taxes. Sometimes your mortgage lender will pay the property taxes on your behalf and request reimbursement from you. If you don’t pay the money back, your lender might consider you in default on your mortgage and foreclose.

You might be eligible for property tax relief.
Governments often offer special property tax relief to certain groups like veterans, the disabled and those who have lived in the same home a long time. The exemptions don’t reduce your tax rates; instead, they lower the assessed value of your home.

You can also challenge the property tax assessment through the tax collector’s office. For example, if you believe your tax bill is too high because the assessed value of your property exceeds its actual value, you can submit evidence of that to the tax collector. If you win your appeal, your property tax bill will be reduced.

You can deduct property taxes from your federal income taxes.
If you itemize your deductions on your federal income tax return, you can deduct the amount of property taxes you pay, but you can’t deduct the cost of special assessments. If you pay your property taxes through an escrow account, you can deduct only the amount that actually went to the government, not the total amount you paid into the account.

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10 Easy Improvements to Make on Your Fixer Upper

There is something awesome about buying a fixer upper and doing the renovations yourself. Some people fix them up a bit at a time, using cash as they have it available. If you want to make a big impact by doing small things, here are 10 things you need to include.

1. Change Out the Lighting

Nothing says outdated like an old-fashioned gold chandelier. Lighting is something that can be updated easily and won’t cost a bunch of money. It is one of the smallest things you can do that will have the biggest impact.

2. Paint

There is an old saying that states “if a barn needs to be painted, slap some paint on it.” You will be amazed at what some paint can do to your home. A new hue can cover imperfections and give the room the blast of color it needs. Forget drab, white walls that are lackluster. Give your home a color makeover.

3. New Fixtures

Just like the lighting, the fixtures in the home become outdated quickly. Start with the kitchen faucet and then move on to the bathroom. You can update and upgrade a fixer upper by just adding these small touches.

4. Paint Cabinets/Add New Hardware

If you have new cabinets in the budget, then you should go for it. However, if your budget is limited, then you may want to try to paint them. Painting old cabinets and installing new hardware will give the kitchen a facelift. If the cabinets are old but sturdy, then you can bring them back to life. Painting is inexpensive and has a huge impact.

5. Rip Out Old Carpeting

Carpet is great when it is new; however, when it is old and dingy, it can really have a negative impact on a space. Hardwoods are the best option, followed by laminate floors. However, if you are stretched for money, you may try a bag floor or a penny style one. There are creative options online that allow you to do great things with your floors for less.

6. Add Curb Appeal

The curb appeal of the home is everything. It does not matter how great the inside looks if the outside is in shambles. Clean up any dead plants and add some new. Be sure to pick flowers and shrubs that bloom at different times. This will allow you to have color year-round. Add some shutters and a fresh coat of paint to the porch. Use decorative numbers to display the address. Finally, replace the mailbox if necessary.

7. Repaint Ceilings

Ceilings are often overlooked. They are usually white and the color is reserved for the walls. However, people do not realize how dirty these ceilings can be. A fresh coat of paint on the ceiling can really enhance the whole room. The walls are not the only thing that needs to be painted.

8. Upgrade the Exterior Façade

The biggest impact you can have on the outside of a home is to replace or paint siding. If you have it in the budget, you can add brick and stone accents. Most fixer upper homes have chipping paint and worn out siding. Splurge for some nice siding or paint a great color to update the home’s look.

9. Replace the Windows

New windows are expensive, but they are important. If you have old windows in your home, you need to spend the money to upgrade them. Windows are great for keeping the elements at bay. You will save yourself money in the long run by sealing off old-drafty openings.

10. Update the Heating and Cooling Unit

To help the process of heating and cooling a home, you need to make sure the home has an updated HVAC unit. The air filters are just as important as the unit. Filters with a rating of Merv 11, have "astro pleating" to help ensure no dirt or dust gets into your system. Extend the livelihood of your unit by selecting quality air filters.

By Cary Teller  http://blog.rismedia.com/2017/fixer-upper-improvements/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

Now You Can Own Ellen DeGeneres and Portia de Rossi’s Santa Barbara Villa

Do you want to live with Ellen DeGeneres and Portia de Rossi? Well you can’t, but you can live in their old villa. That is, if you have a spare $45 million roosting in the bank—the posh Santa Barbara pad just hit the market. Known simply as "the villa," the estate boasts a lap pool, sunken tennis courts, a super-fancy indoor-outdoor entertaining pavilion for all of your fabulous future parties, and incredible views of the ocean, harbor, and mountains.

Originally built in the 1930s, the two-story, 10,500-square-foot spot was created by famed architect Wallace Frost who modeled the home after a traditional 17th-century Italian villa. The 6-bedroom, 8-bathroom space was featured in Ellen's 2015 book "Home."

The comedian/author/talk show host and her Australian actress of a wife bought the place in 2012, gobbling up the properties on either side to make the villa the expansive estate that it is today.

Listed for: $45 million
Listed by: Suzanne Perkins, Sotheby's International Realty

Photos courtesy of http://thevillasb.com.

by Zoe Eisenberg  http://blog.rismedia.com/2017/ellen-portias-santa-barbara-villa/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

In Like a Lion: Spring Gets Roaring Start With High Values, Low Supply

The spring home-buying season is off to a roaring start, with home values up 7 percent and supply down 3 percent year-over-year, according to Zillow’s Real Estate Market Reports for February. Competition is expected to be fierce as homebuyers chase down few listings, says Zillow Chief Economist Dr. Svenja Gudell.

“Low inventory, strong demand and tough competition will be the defining characteristics of this year’s home shopping season,” Gudell says. “Even though interest rates are rising, buyers are eager to start their home search.”

High values and low supply are especially pronounced in Minneapolis-St. Paul, Minn., where values are up 7.1 percent year-over-year and supply is down 18 percent; Cincinnati, Ohio, where values are up 6.4 percent and supply is down 14.9 percent; and Detroit, Mich., where values are up 10 percent and supply is down 14.4 percent. The median home value in Minneapolis-St. Paul ($239,700) is above the national median, $195,700, while the median home values in Cincinnati ($150,500) and Detroit ($137,500) are below it.

The highest home value appreciation occurred in Tampa, Fla., Seattle, Wash., and Dallas-Fort Worth Texas, where values rose more than 11 percent year-over-year—above the national appreciation, 6.9 percent.

“If you’re a prospective buyer about to enter the market, keep in mind that it’s rare to get the first home you make an offer on, and homes in particularly hot markets frequently sell for over asking price,” says Gudell. “Buyers should give themselves enough time to get their finances in order and find a real estate agent they know and trust before jumping into the market.”

For more information, please visit www.zillow.com.

Mortgage Rates Retreat Slightly This Week

The 30-year fixed-rate mortgage decreased slightly, following two months of steady rises.

"The 10-year Treasury yield fell about 10 basis points this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate moved with Treasury yields and dropped 7 basis points to 4.23 percent. This marks the greatest week-over-week decline for the 30-year mortgage rate in over two months, a stark contrast from last week's jump following the FOMC announcement."

Freddie Mac reports the following national averages with mortgage rates for the week ending March 23:

• 30-year fixed-rate mortgages: averaged 4.23 percent, with an average 0.5 point, falling from last week’s 4.30 percent average. Last year at this time, 30-year rates averaged 3.71 percent.
• 15-year fixed-rate mortgages: averaged 3.44 percent, with an average 0.5 point, dropping from last week’s 3.50 percent average. A year ago, 15-year rates averaged 2.96 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.24 percent, with an average 0.4 point, dropping from a 3.28 percent average last week. A year ago, 5-year ARMs averaged 2.89 percent.

Source: Freddie Mac

Could Rising Rates Be Good for Housing?

The Federal Reserve is finally taking more action to raise its short-term rates. Last week, it voted to raise the Fed funds rate by 25 basis points. That is expected to add pressure to mortgage rates, too. Many housing analysts fear that rising mortgage rates could further impact home affordability and lead home buyers to pause.

Read more: Rising Rates, Rising Sales

However, Rick Sharga, executive vice president of Ten-X and former senior vice president at RealtyTrac, disagrees. He thinks the rise in mortgage rates could prove to be a good thing for the housing market.

He argues that it will cause buyers to get off the fence faster and move into the market sooner, before rates go any higher. He expects that to help increase home sales in 2017, too.

Sharga also believes that higher rates will cause lenders to loosen some of the tight underwriting standards that have plagued the housing market the last few years and that has prevented many would-be borrowers from moving forward.

“This will happen partly just due to higher mortgage interest rates, which will provide a bit of a cushion for lenders to take on a little more risk,” Sharga writes in a recent column. “And higher rates will also drastically reduce the number of refinance loans being issued, which lenders will try to offset by doing more purchase loans.”

Also, Sharga doesn’t discount that the Fed’s 25 basis point hike may not actually have that big an impact on mortgage rates. “The 25 basis point hike was well within the range that most industry analysts had expected, which means it’s possible that today’s hike won’t cause mortgage rates to rise significantly from current levels, which are already the highest they’ve been in years,” Sharga notes.

Source: “Why Rising Federal Funds Rate Might Be Good for the Housing Market,” HousingWire (March 16, 2017)

Go 3D With Your Wall Designs

Photo credit: WallArt, mywallart.com

Add a third-dimension to your walls: 3D wall panels can offer a unique, eye-catching look.

One company called WallArt offers chic, environmentally friendly wall coverings. The three-dimensional effect can help add the “wow” factor to a room, whether styled as ultra-modern or country chic. You can choose from several geometric designs, like minimalist Tetris or more characterful Bricks. An added bonus with these 3D wall panels: The coverings are washable.

The 3-D wall panels can be painted to suit any color scheme in a home too. For example, go more trendy by painting the 3D wall panels in shades of green, such as lime or emerald, while the rest of the room is in more muted shades, like pale grey, blush pink, white, or beige. Metallic tones–like in silver, gold, or bronze–can also be used to add more drama for a feature wall.

Take a look at some of these examples from WallArt.

Photo credit: WallArt, mywallart.com

Photo credit: WallArt, mywallart.com

Photo credit: WallArt, mywallart.com

Photo credit: WallArt, mywallart.com

Posted in Home Trends, by Melissa Tracey on March 13, 2017http://styledstagedsold.blogs.realtor.org/2017/03/13/go-3d-with-your-wall-designs/

Green Your Space: 5 Tips for a Healthy Home

Every homeowner wants a healthy home for his or her family and pets. Making the right choices in your house isn't always easy though. Keep reading to learn more about how you can create a healthy space and enjoy your home even more. These five tips should put you on the path.

Update Your Insulation

Individuals and families in older homes should consider the fact that they may have unhealthy types of insulation in the walls keeping them comfortable. If you're not sure about your insulation, have the pros check it out first. In the case of asbestos or any other hazardous material, you don't want to be digging around in the walls on your own.

Asbestos and hazardous insulation remediation can be a big job, but for a homeowner, it should be a top priority in terms of a healthy home. Updating your insulation will also be a major plus when and if you go to sell your home.

Get a Mold Check

Most homeowners never think about mold until they get an inspection related to selling their home. For others, mold isn't even a consideration until damage to the home occurs and a mold issue more or less reveals itself. Getting a mold check for your home can help your family breathe easier in the house. While most recently built homes won't have mold, getting a check isn't going to hurt you.

Pick the Right Paint

According to the Environmental Protection Agency (EPA), paint, wood stain and other varieties of coatings account for about nine percent of volatile organic compounds (VOC) emissions in the country every year. For a healthy home, look for low-VOC paint. They are water-based, low or no odor and non-toxic. While it can be hard to identify low-VOC paint on store shelves, online searches and on-can labeling should make it easy to find this type of paint if you're looking for it.

Take Your Shoes Off

Taking your shoes off every single time you come in your home might be a hard habit to get into, but for many people, it can lead to a healthier home environment. Your home might also require a little less cleaning, which is an added benefit. If you have a mudroom or a large entryway, removing your shoes should be easy. Tracking less outside germs from your shoes into your home can also help keep pets and children with a tendency to spend time on the floor healthier all year round.

Add Plants to Your Décor

Fresh, live plants can beautify almost any space. Live plants do more than just make your home look a little bit nicer though. Spider plants, lilies and aloe vera can help get rid of formaldehyde in the air, and English ivy, asparagus ferns and bamboo plants can work to clean indoor air as well. Whatever plant you choose, make sure they're not toxic to your pets if they roam free around your home.

Making your home a healthier place isn't exactly as glamorous as buying new furniture or adding a room to your house. Don't take your home's health for granted and you won't have to worry as much about home-related hazards.

By Andrea Davis http://blog.rismedia.com/2017/5-tips-healthy-home/?utm_source=newsletter&utm_medium=email