Discussing how Zillow can help you to pay more to sell your home and make less money at the same time, remodeling increases, new home sales and prices and more…
Zillow announced it will begin testing the Zillow Instant Offers™ marketplace, a way for homeowners to sell their homes quickly by providing them with offers from investors and a comparative market analysis (CMA) from a local real estate agent, as an estimate for what the home might fetch on the open market. In addition to investors being required to use an agent, should a homeowner select an investor’s offer, Zillow will also offer to connect them with a local agent to represent them throughout the transaction.
Sounds like Zillow is getting in the same business as the people that put the crudely hand drawn “We Buy Houses” signs on the side of the road…
This plan boils down to Zillow charging you 9% and the investor/buyers are NOT going to pay you full price for your home. Sounds like a great deal for everyone except the seller. If you need to sell quickly and don’t mind getting screwed, this is a great option…
Let me tell you why you should use a REALTOR when buying or selling a home. Today, people are used to instant gratification and using the internet to solve all their problems. This can help to fool home sellers into thinking that they can sell their house with using a real estate agent!
However, the reasons you NEED a REALTOR haven’t changed but have grown! With the predictions of higher mortgage rates and increasing home prices, it is crucial that sellers do not make any mistakes!
Every state has various rules or laws in connection with sale of real estate. And these policies are continually changing. A REALTOR is a professional in their industry and will show you how to deal with the piles of papers required to sell a home.
Finding the Home Is the Easy Part
Even in today’s market of homes going under contract in just a few days, finding a home is still the easiest part for buyers. You will discover so much must be done when selling a home. You need someone that has the knowledge and experience to help you buy or sell successfully!
Negotiating and Emotions
Selling a home can be a stressful and emotional experience. Once you think about all the different people you will need to work with, you’ll quickly understand why having a REALTOR on your side is a must. Just a few of the people you must deal with include the buyer, their agent, the home inspector, the appraiser, etc etc. There are many different individuals that you must be able to deal with in a logical and unemotional manner during the home buying or selling process.
Determining a Home’s Value Isn’t Easy
It is crucial for your house to be listed at the correct price from day one! This will attract the maximum number of serious legitimate buyers and reduce how long that it’s for sale. You need a REALTOR that isn’t emotionally connected to your property to provide you with the ugly but honest truth about your property’s price. According to the NAR, the typical FSBO home sold for $185,000 compared to $245,000 for homes sold with the assistance of an agent.
What is Happening in the Local Real Estate Market
There’s so much in the news and on the internet about real estate that it can become confusing. How do you know what’s happening especially in your local area? Who can help you correctly and competitively price your home? How can you tell exactly what to offer without paying too much? Do you understand all of the various contingencies that must be used to protect you?
There is a difference between finding answers on the internet and having the expereince to know what to do when the SHTF.
Dave Ramsey, the financial guru, says:
When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.
Very true advice and really sounds like he is describing this blog…
Working with a REALTOR that knows the local housing market will always make your buying or selling experience better. You’ll need a REALTOR that is going to give you the Ugly But Honest answers to your questions.
You can pay more and sell for less OR you can use a Realtor to sell your home!
The remodeling industry opened 2017 on a strong note with the national Residential Remodeling Activity Index reaching a new all-time high of 107.3, which represented a solid gain of 4.5 percent from one year earlier. The index has now seen twenty consecutive quarters of year-over-year gains since 2011, which was the bottom of remodeling activity nationwide. The index has posted annual gains above 4.0 percent since the second quarter of 2015 and is forecast to continue doing so through fourth quarter 2017, before some slight moderation is expected.
Mark Boud, Chief Economist at Metrostudy said:
The current strength of the remodeling market can be attributed primarily to economics – low mortgage rates, strong existing home sales, the bull stock market run, good job gains, and now more recently, wage gains. Yet, as the economic cycle matures over the next few years, rates increase and full employment translates to less robust job growth over time, demographic trends will play a bigger role in driving demand for remodeling.
Baby-boomers will continue retiring and aging in place as they have been, and Millennials will be increasingly maturing in their life stages –jobs, dating, marrying (or not marrying), buying a home, and choosing to remodel that home. And, with housing affordability an issue in many markets across the country, Millennials will be more inclined to purchase older, more-affordable existing homes that will necessitate renovations. Demographics will matter greatly to remodeling over the next few years as the economic cycle matures.
Location is one of the most important factors in whether a buyer likes a home. A home may need updating but have a great location. Some buyers realize they can change the house but cannot change the location.
Also, many Baby Boomers are deciding to make changes to their current homes so they can age in place. If you love the location, why sell when you can remodel?
A shortage of homes for sale has bedeviled U.S. house hunters in recent years, so why don’t builders build more? One problem is that they’re running out of lots to build on—at least in the places that people want to live.
Cities that were sprawling before the Great Recession have begun to sprawl again. Space-constrained cities, meanwhile, have run out of room to build. That reality has spurred developers to focus on center-city neighborhoods where high-density building is allowed—and new units command exceedingly high prices.
This ties into the reason why we are seeing remodeling hitting a new all time high. We usually only see a lack of lots around the lakes in our area since there is plenty of land still available for development out in the country.
President Donald Trump’s administration will seek to slash spending on affordable housing and community development programs, a plan that housing advocates condemned as “immoral” and a blow to voters who sent him to the White House.
The administration is seeking to cut spending on affordable housing and community development and wants mortgage lenders to fund technology fixes at the Department of Housing and Urban Development, according to a budget draft obtained by POLITICO. The proposal also eliminates the Housing Trust Fund, a program financed by Fannie Mae and Freddie Mac profits.
Strangely, they think that private companies will step in and start building affordable housing for low income people. Will we eventually see Third World type shanty towns right here in America?
Bank of America and the National Fair Housing Alliance (“NFHA”) announced today an agreement to support homeownership in Charleston, South Carolina. Under the terms of the agreement, Bank of America will invest in efforts designed to increase Latino homeownership in Charleston, including $50,000 donations to Metanoia and Origin SC, two Charleston-area organizations. The $100,000 will be used for down payment and closing cost assistance for Latino homebuyers in the Charleston area. Bank of America will also give NFHA $336,380 in support of NFHA’s mission of ensuring equal housing opportunity. In addition, Bank of America is committed to continuing its community partnerships with organizations focused on promoting homebuyer education and counseling and financial literacy to all prospective homebuyers in the Charleston area.
The agreement is related to a complaint filed by NFHA in 2014 with the U.S. Department of Housing and Urban Development. The complaint arose from three preapplication mortgage loan tests performed by NFHA at a Charleston, South Carolina financial center. Bank of America rejects all of the allegations in the complaint and voluntarily entered into an agreement with NFHA to resolve the matter.
Since we see stories such as this on a regular basis, do you really think private money is going to step up to help provide affordable housing? Not very likely unless they can make a shit ton of money and screw over the poor and helpless at the same time…
From HUD and the Census Bureau:
New Home Sales
Sales of new single-family houses in April 2017 were 11.4% below the revised March 2017 rate but 0.5% above the April 2016 level. The decrease from the previous month isn’t good but we did see a YoY increase. A small increase but still an increase…
The median sales price of new houses sold in April 2017 was $309,200. The average sales price was $368,300. These are the average and median price for all of the US and will not reflect what is happening in every local real estate market.
Inventory of Homes for Sale and Months’ Supply
The seasonally-adjusted estimate of new houses for sale at the end of April was 268,000. This represents a supply of 5.7 months at the current sales rate. Again these are national and not local statistics.
Manufacturers in the Fifth District were somewhat less upbeat in May than in the prior three months. The index for shipments and the index for new orders decreased notably, with the shipments index falling to slightly below 0. The index for employment was relatively flat, but the decline in the other two indexes resulted in a decline in the composite index from 20 in April to 1 in May. The majority of firms continued to report higher wages, but more firms reported a decline in the average workweek than reported an increase.
Looking six months ahead, manufacturing executives remained generally optimistic, although the only index to increase was expected capital expenditures. Nonetheless, the expected shipments index had a strong reading of 39 in May (from 42 in April) and the expected new orders index remained relatively high at a reading of 35.
Survey respondents reported that growth in both prices paid and prices received moderated somewhat.
While not bad it could be better.
Activity in the service sector improved further in May, according to the latest survey by the Federal Reserve Bank of Richmond. More firms continued to report revenue increases than decreases, with the revenues index for the overall service sector hitting 34 — its highest mark since 1997. This was driven by an increase in the share of both retail and non-retail services firms reporting revenue growth.
Although the revenues index rose notably, the index for employment in the overall service sector remained relatively flat. Meanwhile, the average wage index fell, although it remained solidly in positive territory, with a reading of 24 in May. The index for expected demand during the next six months also fell, but remained high at a level of 40.
Price growth in the overall service sector changed little from April while the expectation for price growth during the next six months picked up very slightly, from 1.67 percent to 1.88 percent.
Good except for the wage index falling. We must have incomes increase for everyone to have a truly healthy economy. There is much more to having a healthy economy besides how Wall Street is doing.
Americans remained marginally positive about the economy last week, with the weekly average of Gallup’s U.S. Economic Confidence Index at +4. This is similar to the +2 the index hit the week before last, a post-election low.
Major U.S. stock market indexes declined by nearly 2% last Wednesday, marking the largest one-day loss since September 2016. Analysts said the drop reflected the concerns of many stock traders and financiers that the Trump administration will be too clouded by scandal to pursue its market-friendly economic agenda. While stock market changes can influence consumer confidence, there was no obvious evidence of that last week, perhaps because the indexes recovered slightly in the following two days.
Americans’ confidence in the economy remains notably lower than where it stood in earlier parts of the year. The index has not been able to sustain this optimism and has fallen closer to the “neutral” level. Nonetheless, assessments remain positive, which was seldom the case from 2008 until the week after last year’s presidential election.
Nice that attitudes are remaining positive despite the drama in DC.
34% Say U.S. Heading in Right Direction
Thirty-four percent (34%) of Likely U.S. Voters think the country is heading in the right direction, according to a new Rasmussen Reports national telephone and online survey for the week ending May 18.
That’s down three points from the previous week and is the lowest weekly finding since President Trump took office. This number dipped to 35% in late-March, the previous lowest level in the Trump administration, before moving back to the low-40s in mid-April. It ran in the mid- to upper 20s for much of 2016.
Maybe I spoke to soon about attitudes remaining positive. Rasmussen said that 60% think we are headed in the wrong direction. I guess that means 6% did not answer or don’t know where we are going or why we are in this hand basket…
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