Cleveland West Real Estate BlogRecently posted or modified blog postshttps://www.vonderau.com/blog/Copyright Vonderau.com2023-02-10T12:09:02-07:00tag:vonderau.com,2012-09-20:1064910 Mistakes to Avoid When Selling a Home<img src="https://assets.site-static.com/userfiles/2793/image/Untitled_525_O_350_px.jpg" width="623" height="415" />
Most home sellers I’ve encountered want to get top dollar for their home but often times they don’t realize that doing so requires seeing the home selling process through the eyes of a prospective buyer. Selling a home is all about FIRST IMPRESSIONS and as the old saying goes: “You never get a second chance to make a first impression”.
In this blog post we’ll cover the 10 most common mistakes people make when selling a home.
<a href="https://www.vonderau.com/#No1">Forgetting to Declutter and Depersonalize</a>
<a href="https://www.vonderau.com/#No2">Not Making Repairs</a>
<a href="https://www.vonderau.com/#No3">Skipping Professional Real Estate Photography</a>
<a href="https://www.vonderau.com/#No4">Listing the House Before Completing Updates</a>
<a href="https://www.vonderau.com/#No5">Too Many Showing Restrictions </a>
<a href="https://www.vonderau.com/#No6">Hiding Known Defects </a>
<a href="https://www.vonderau.com/#No7">Overlooking Odors </a>
<a href="https://www.vonderau.com/#No8">Letting Emotions Get the Best of You</a>
<a href="https://www.vonderau.com/#No9">Overpricing Your Home</a>
<a href="https://www.vonderau.com/#No10">Selling Your Home “As Is” </a>
<a id="No1"></a>(1) Forgetting to Declutter and Depersonalize
The most basic thing you can do when selling a house is take the time to declutter and depersonalize. When it comes to decluttering a house you want to consider things like: Kitchen and bathroom countertops, table tops, bookshelves and closets. Anything you can thin out should be thinned out. Items can be gifted to others, sold, junked or pre-packed in boxes that you stack in an unfinished basement or garage. When a home is decluttered and depersonalized it looks bigger, cleaner and more inviting.
<a id="No2"></a>(2) Not Making Repairs
Windows and doors in disrepair, exposed electrical wiring, peeling paint, loose handrails and other similar items can be an indicator to a buyer that the house is not being well maintained. When buyers observe two or three items like this they immediately start looking for more evidence to confirm their suspicion that the house is not being taken care of and not worth top dollar. Be willing to spend a few extra dollars to make sure obvious and necessary repairs are taken care of.
<a id="No3"></a>(3) Skipping Professional Real Estate Photography
Most buyers begin their search online. They go to their favorite site, punch in their preferred zip code and price range and then start clicking picture. A buyer will eliminate a home in about six seconds. Not having photos that showcase your home in the best possible light is a major mistake. If you hire a Realtor make sure to ask them if they hire a professional photographer and ask to see some sample photos.
<a id="No4"></a>(4) Listing the House Before Completing Updates
When I’m showing a house, telling the buyer that, “the seller plans to paint this room” or worse yet, “the seller is offering a credit so you can paint this room” just doesn’t have the same impact as seeing a freshly painted room. If your home isn’t ready for market just take a few extra days to get the home show ready.
<a id="No5"></a>(5) Too Many Showing Restrictions
A home will receive the largest volume of showing requests in the first week or two — it’s imperative that you make your home as available as possible for showings during that time. Tightly limited opportunities for showings or even cancelling showings on agents will make it more challenging to sell your home, prolong your days on market and will most certainly impact your bottom line.
<a id="No6"></a>(6) Hiding Known Defects
This one should go without saying but if you know about a material defect in your home it is an absolute must that you disclose it to prospective buyers. Failing to do so can certainly create issues in a contract negotiation and possibly result in legal issues after the deal closes. It’s not fair to buyers and its not worth the trouble — When in doubt, disclose!
<a id="No7"></a>(7) Overlooking Odors
There’s an old saying in real estate: “If you can smell it you can’t sell it”. Common odors that can be disruptive to the sale of a house include: dog smells, cigarette smoke, musty basements and probably the worst of all, cat urine. Don’t just ignore these smell or hope they won’t be noticed. And, definitely don’t try to mask them by using scented air fresheners. Instead, do whatever you can to remove the smell: tear-out carpet, paint walls, run a dehumidifier and keep air moving with the furnace or air conditioner depending on the season.
<a id="No8"></a>(8) Letting Emotions Get the Best of You
Here’s where having a seasoned Realtor in your corner is imperative. It’s easy to get frustrated when offers come in lower than you’d hoped or buyers raise all kinds of issues over the results of the home inspection. One of the easiest pitfalls to succumb to is being emotionally reactive and taking a retaliative attitude toward your buyer. A good Realtor will be the rational, objective voice guiding you to keep moving the deal forward even when things get difficult.
<a id="No9"></a>(9) Overpricing Your Home
You may wonder why overpricing your home could be a big deal, after all, as many sellers have said to me: “You can always come down you can never go up.” That statement may not be as true as you think, in the past few years we’ve seen incredible numbers of homes sell well over list price. That aside, the issue with overpricing a home is that you can deter buyer interest, get your listing off to a slow start and accrue lots of days on market. After a period of time buyers will begin to ask: “What’s wrong with this house?” You can get a ballpark idea of the value of your home using an <a href="http://myhomevaluecleveland.com/">online value estimator</a> but the best way to get an accurate assessment is to contact a local Realtor who is an expert in your area.
<a id="No10"></a>(10) Selling Your Home “As Is”
Over the years, many sellers have told me: “I want buyers to know that I’m selling my house as is”. While it’s certainly possible to sell your home “as is” it is not necessarily advisable. When a buyer hears the those words “as is” they begin to scrutinize the house to try to figure out what horrible issue it is that the seller is not willing to pay for. In the world of first impressions, this is one of the worst. In some circumstances it is necessary to sell a home “as is” but in most circumstances it should be avoided.
The Bottom Line
A home is a large investment and when you’re selling it you should make every effort to sell at the best possible price. Overlooking any one of these items could easily cost you thousands of dollars and plenty of days on market. Make sure to work with an <a href="https://www.vonderau.com/about/">experienced Realtor </a>who can guide you through the listing preparation and sales process and keep you from falling victim to one of these common mistakes.
Looking for a seasoned realtor who can guide you through the sales process? Our <a href="https://www.vonderau.com/about/testimonials/">100+ Five Star Google reviews </a>speak for themselves. And if you’re looking to learn more about the sales process we always have an <a href="https://www.vonderau.com/about/upcoming-events2/">upcoming seminar</a> available so you can learn about what steps you should take to prepare for market.
<a href="https://www.eventbrite.com/e/440540226677"><img src="https://assets.site-static.com/userfiles/2793/image/Copy_of_Eventbright_-_InPerson_Seminar_1112.png" width="724" height="362" /><br /></a>2022-10-21T06:41:03-07:002022-10-28T07:25:27-07:00Michael Vonderautag:vonderau.com,2012-09-20:9870Why It's Still a Seller's Market <img src="https://assets.site-static.com/userfiles/2793/image/womanathome.jpg" width="750" height="410" />
As there’s more and more talk about the <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" target="_blank">real estate market</a> cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" target="_blank">sell your house</a>. If you’re thinking of making a move, you should know the market is still anything but normal.
Even though the supply of <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" target="_blank">homes for sale</a> has been growing this year, there’s still a shortage of homes on the market. And that means conditions continue to favor sellers today. That’s because the level of <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" target="_blank">inventory</a> of homes for sale can help determine if buyers or sellers are in the driver’s seat. Think of it like this:
A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.
In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows. The blue section of this graph <a href="https://www.nar.realtor/topics/existing-home-sales" target="_blank">highlights</a> just how far below a neutral market inventory still is today.
<img alt="Why It’s Still a Sellers’ Market | MyKCM" src="https://lh6.googleusercontent.com/F-LIVAyvYCRoV9Uy9KgAXFrGiVrtBNjZ9RZIuCgM4e3GOm7Wf6I22gNpMR2v13hbo_95ix5bUj3XbfQ6zk20l-JQOXw96YmeXYkzxTv0ITXqc2oJ1CttnGrjqc79uoK2IAALbdp1qVMHJzTBC_f8a_M" width="600" height="451.1516879796999" />
What Does This Mean for You?
Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, <a href="https://fortune.com/2022/06/26/housing-market-outlook-prices-appreciation/" target="_blank">saying</a>:
“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market.”
Conditions are still in your favor even though the market is cooling. If you work with an agent to price your house at market value, you’ll find success when you <a href="https://www.mykcm.com/2022/06/30/if-youre-selling-your-house-this-summer-hiring-a-pro-is-critical/" target="_blank">sell your house</a> today. While buyer demand is softening due to higher mortgage rates, homes that are <a href="https://www.mykcm.com/2022/06/06/why-you-need-an-expert-to-determine-the-right-price-for-your-house/" target="_blank">priced right</a> are still selling fast. That means your window of opportunity to list your house hasn’t closed.
Bottom Line
Today’s housing market still favors sellers. If you’re ready to sell your house, let’s connect so you can start making your moves.2022-08-17T06:00:00-07:002023-02-10T12:09:02-07:00Michael Vonderautag:vonderau.com,2012-09-20:97825 Tips for Choosing a Reliable Moving Company<img src="https://assets.site-static.com/userfiles/2793/image/Family_Moving_.jpg" width="1200" height="800" />
If you’re in the process of moving but are not sure the best way to go about finding and selecting movers that you can trust (and afford!), you’re not alone. Moving day is stressful enough without worrying about broken belongings or unexpected charges. We’ve compiled a list of tips to get you started so that moving is a breeze.
Take Inventory
To get an accurate estimate from moving companies, you’ll need to let them know how much you have and what kinds of belongings you have - especially large pieces of furniture and yard equipment. Begin the process of categorizing the items in your home to get an accurate handle on what you’ll be taking with you, — they will fall into one of five categories:
Take it with you to your next home.
Sell it.
Give it to a family member.
Donate it to charity, or...
Throw it out.
Ask for Referrals
Ask your friends, family, and realtor for recommendations - moving companies that they have used and been happy with in the past. This is often the best way to get started and find someone reliable. Once you get a list of names, don’t hesitate to call more than one company to determine the best estimate for your situation.
Understand Your Moving Estimate
There are several different types of estimates you may receive from moving companies. In order to get a firm grasp on what’s included and what the moving day will entail, consider the following questions:
What’s included in my quote?
Are there any extra charges?
How do you take an inventory of all my items?
Do you have a cancellation policy?
What forms of payment do you accept?
Are there any restrictions on what and how I pack?
Will you pack specialty items, such as TVs and electronics?
How long will the move take?
How do I contact you and the driver during the move?
Will my items be transferred to another party along the way? Do you subcontract your moves?
What should I expect if there’s a delay in pickup or delivery on moving day?
What happens if something breaks or gets damaged in the move?
What is your claims process like?
Make Sure the Mover Is Licensed and Insured
Make sure the mover is insured and registered. For interstate movers, a <a href="https://www.moving.com/tips/how-to-check-a-moving-companys-usdot-number/" target="_blank">USDOT number</a> is required by FMCSA. For in-state moves, regulations vary. You can check with your state, county or local consumer affairs agency or your state attorney general. You can also use the <a href="https://ai.fmcsa.dot.gov/hhg/search.asp" target="_blank">FMCSA search tool database</a> or contact the Better Business Bureau and consumer protection agencies. A list of reliable movers from associations such as the <a href="http://www.moving.org/" target="_blank">American Moving and Storage Association</a> is also available.
To ensure legitimacy and reliability, consider asking the following questions:
Are you properly licensed?
Do you have experience with my specific type of move?
What kind of liability coverage does your company provide?
Do you have references?
Ask About Discounts
Many moving companies offer <a href="https://www.moving.com/tips/where-to-find-aaa-discounts-on-moving-services/" target="_blank">discounts to AAA members</a>, students, and military members. If any of these apply to you, don’t hesitate to inquire so you can save a little extra cash.
The Bottom Line
Hiring a reputable moving company will save you from many common <a href="https://www.moving.com/tips/moving-stress/" target="_blank">moving-day stresses</a>. So, if the idea of <a href="https://www.moving.com/tips/driving-moving-truck-across-country/" target="_blank">loading and driving a large moving truck</a> solo stresses you out, we recommend prioritizing finding a quality moving company you can trust to the top of your <a href="https://www.moving.com/move-planner/" target="_blank">moving checklist</a>. Still have questions about your move? Contact our team to help you on your buying and selling journey! 2022-08-02T06:00:00-07:002022-08-02T06:53:50-07:00Michael Vonderautag:vonderau.com,2012-09-20:9642What Does an Economic Slowdown Mean for the Housing Market? <img src="https://assets.site-static.com/userfiles/2793/image/EconomicSlowdown.jpg" width="750" height="410" />
According to a recent <a href="https://www.cnbc.com/2022/05/23/americans-worried-about-the-economy-even-before-inflation-boom-fed-survey-shows.html" target="_blank">survey</a>, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.
All of this brings up many fears and questions about how it might affect our lives, jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how <a href="https://www.mykcm.com/2022/05/19/the-one-thing-every-homeowner-needs-to-know-about-a-recession/" target="_blank">economic slowdowns</a> have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" target="_blank">According</a> to Mortgage Specialists:
“Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”
Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):
<img alt="What Does an Economic Slowdown Mean for the Housing Market? | MyKCM" src="https://lh5.googleusercontent.com/D548rsr99wdWc8PCS3xLFz9pujlWt1hP_m3ENA-vTqgzmLpJvfqzEglGePgbl8k8sc4Jh9I3A-EXl734hTFHknSK1V96h0lu7eb90s8aypPAw904VAGaQoEugTTnwhczc4AATekNvB8BRylaj0m_2Ko" width="600" height="451" />
As the chart shows, historically, mortgage rates decreased each time the economy slowed down. Fortune.com helps <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" target="_blank">explain</a> the trend like this:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.
Bottom Line
Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make a proactive decision by working with a trusted real estate professional to get expert advice on what’s happening in the housing market and what that means for your homeownership goals.2022-07-19T06:00:00-07:002022-07-19T06:23:24-07:00Michael Vonderautag:vonderau.com,2012-09-20:9490Local 4th of July Fireworks & Festivities <img src="https://assets.site-static.com/userfiles/2793/image/Fireworks_Show.jpg" width="1000" height="667" />
Looking for fun activities this holiday weekend? Check out some of the local festivals and fireworks shows on Cleveland’s west side.
Avon
Fireworks on Saturday, July 2, and Sunday, July 3 at Mercy Health Stadium following the Lake Erie Crushers games
Avon Bike Parade | Monday, July 4 | 10:00 am | Avon Aquatic Center
Avon Lake
Independence Day Firework Celebration | Friday, July 1 | Event begins at 5:30 pm | Weiss Field, 33401 Webber Rd. | Fireworks at 10:00 pm (Rain date: Tuesday, July 5, fireworks only)
Bay Village
Bay Days 2022 | Thursday, June 30 through Monday, July 4 | Noon to 10:30 pm daily | Gala Fireworks Display on Monday, July 4 at 9:45 pm
Lakewood
Lakewood Fourth of July | Monday, July 4 | Parade begins at 10:00 am at Kenneth and Lake Ave. | Events at Lakewood Park following the parade | Fireworks at dusk
North Olmsted
Red, White, Blue & YOU | Saturday, July 2 | Great Northern Mall, 4954 Great Northern Blvd. | 1:00 - 3:00 pm
North Ridgeville
Freedom Festival and Fireworks | Sunday, July 3 | Event begins at 5:00 pm | Victory Park Ohio, 7777 Victory Lane | Fireworks at 10:00 pm
Westlake
City of Westlake 4th of July | Monday, July 4 | Parade and event begin at 10:00 am | Clague Park | Fireworks at dusk
2022-06-29T06:00:00-07:002022-06-29T08:03:38-07:00Michael Vonderautag:vonderau.com,2012-09-20:9479Your House Could be Closer to List-Ready Than You Think <img src="https://assets.site-static.com/userfiles/2793/image/Weed_Whacking_Backyard.jpg" width="1200" height="807" />
One of the biggest concerns for a homeowner looking to sell is the time they’ll have to put in before listing their house. If that’s the case for you, you should know – your home might be closer to list-ready than you think in today’s housing market. A <a href="https://www.realtor.com/research/2022-spring-home-sellers/">survey</a> of recent sellers from realtor.com finds that many were able to get their house ready in less than a month. It says:
“With many homeowners expecting a quick sale, and in many cases a lack of contingencies, the preparation process took less than a month for over 50% of home sellers this past year, with 20% completing it in less than two weeks.”
Those sellers expecting to sell quickly are following recent <a href="https://www.mykcm.com/2022/04/28/what-you-need-to-know-about-selling-in-a-sellers-market/">buyer trends</a>. With <a href="https://www.mykcm.com/2022/04/13/where-are-mortgage-rates-headed/">mortgage rates</a> and <a href="https://www.mykcm.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/">home prices</a> rising, buyers in today’s market are serious about finding a home quickly. But with the limited number of homes for sale, there are very few <a href="https://www.mykcm.com/2022/04/01/its-still-a-sellers-market-infographic/">options</a> for those buyers to choose from. That means many may be willing to take on projects after they purchase.
Because of this, you may be able to focus on less time-consuming tasks before putting your house on the market. According to the survey mentioned above, some of the top things recent sellers completed before listing over the past year include <a href="https://www.mykcm.com/2022/04/29/give-your-curb-appeal-a-boost-before-you-sell-infographic/">landscaping</a>, making minor cosmetic updates, and touching-up paint (see image below):
<img alt="Your House Could Be Closer to List-Ready Than You Think | MyKCM" src="https://lh6.googleusercontent.com/jYC3v-MwSfdPHIbcmzn_ZStGIE1sPIAhoO_lziNTuffCRzeQ1GWSgHZCDkwqz45JoUnLZ4mlue5yybxKcTqXkwCpTV4OH84Dd45YyHqKfrLfcL8Lp45r3-vAcHa5Bq67OTpwG9tbsRYKbRP5uQ" width="509" height="383" />
A Real Estate Advisor Will Help Streamline the Process and Keep You Focused
Of course, each situation is different, and knowing what repairs or updates your house needs to stand out in your local area is critical. That’s where a trusted <a href="https://www.mykcm.com/2022/04/12/why-a-real-estate-professional-is-key-when-selling-your-house/">real estate professional</a> comes in. In a recent article, <a href="https://time.com/nextadvisor/mortgages/mortgage-news/sping-2022-housing-market-predictions/">NextAdvisor</a> explains:
“. . . Real estate can be hyper-local, and demand can vary from one neighborhood to the next. It’s a good idea to work with a local real estate professional to determine an ideal listing price and if any improvements or repairs need to be completed before putting your home on the market.”
Your trusted real estate advisor knows the ins and outs of the market in your specific area. They’ll help you identify the places where you should and shouldn’t spend your time and money – and that can enable you to list quickly.
Bottom Line
If you’re ready to take advantage of the incredible conditions for sellers in today’s real estate market but are worried about the time it’ll take to get your home ready, you might be closer than you think. Let’s connect so you can see what you need to do before listing your house today.
2022-06-29T06:00:00-07:002022-06-29T06:15:25-07:00Michael Vonderautag:vonderau.com,2012-09-20:9293What Does the Rest of the Year Hold for the Housing Market?<img src="https://assets.site-static.com/userfiles/2793/image/Suburban_Aerial.jpg" width="1500" height="842" />
If you’re thinking of <a href="https://www.simplifyingthemarket.com/2022/05/05/three-tips-for-first-time-homebuyers/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="buying" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/05/three-tips-for-first-time-homebuyers/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw35WvM3_V4oEOW8hVPhJytp">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/05/16/if-youre-a-homeowner-you-have-incredible-leverage-when-you-sell-today/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="selling" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/16/if-youre-a-homeowner-you-have-incredible-leverage-when-you-sell-today/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw1xNdPbE-LU8WeDMYQpB23R">selling</a> a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.
The Number of Homes Available for Sale Is Likely To Grow
There are early signs <a href="https://www.simplifyingthemarket.com/2022/05/11/are-there-more-homes-coming-to-the-market/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="housing inventory" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/11/are-there-more-homes-coming-to-the-market/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw3fjkVDp48hc_tYKylQBjt5">housing inventory</a> is starting to grow and experts say that should continue in the months ahead. <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-apr-23-2022/" title="According" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.realtor.com/research/weekly-housing-trends-view-data-week-apr-23-2022/&source=gmail&ust=1654616553079000&usg=AOvVaw2bCWUquINVxDvEfPjsltPa">According</a> to Danielle Hale, Chief Economist at <a href="http://realtor.com/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://realtor.com&source=gmail&ust=1654616553079000&usg=AOvVaw09DjLp5ix7Q_YbtJEidIgK">realtor.com</a>:
“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”
As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your <a href="https://www.simplifyingthemarket.com/2022/05/03/things-that-could-help-you-win-a-bidding-war-on-a-home/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="best offer" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/03/things-that-could-help-you-win-a-bidding-war-on-a-home/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw3SeSARt4_-Qk8fKVwWBBcx">best offer</a> up front.
As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.
Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures
Experts also agree <a href="https://www.simplifyingthemarket.com/2022/04/26/how-homeownership-can-help-shield-you-from-inflation/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="inflation" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/04/26/how-homeownership-can-help-shield-you-from-inflation/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw2NvJQbbIrj1aSvzdp6gO-4">inflation</a> should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://www.marketwatch.com/story/the-pandemic-boom-in-home-sales-is-over-mortgage-rates-soar-to-highest-level-since-2009-as-the-fed-pressures-the-housing-market-11651760108" title="says" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.marketwatch.com/story/the-pandemic-boom-in-home-sales-is-over-mortgage-rates-soar-to-highest-level-since-2009-as-the-fed-pressures-the-housing-market-11651760108&source=gmail&ust=1654616553079000&usg=AOvVaw1HMfoE-M4E9UCu0OdyGVEu">says</a>:
“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your <a href="https://www.simplifyingthemarket.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="purchasing power" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw1G4pk5eyHsEEaWdsNOtzo9">purchasing power</a>. It may make sense to buy now before it costs more to do so, if you’re ready.
As a seller, rising <a href="https://www.simplifyingthemarket.com/2022/05/17/why-rising-mortgage-rates-push-buyers-off-the-fence/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="mortgage rates" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/17/why-rising-mortgage-rates-push-buyers-off-the-fence/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw01Xt6foVaJl-M4Ymq8v4zF">mortgage rates</a> are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.
Home Prices Are Projected To Continue To Climb
<a href="https://www.simplifyingthemarket.com/2022/05/02/todays-home-price-appreciation-is-great-news-for-existing-homeowners/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="Home prices" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/02/todays-home-price-appreciation-is-great-news-for-existing-homeowners/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw0S9HlrFYej8hreE4KsnOZG">Home prices</a> are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but <a href="https://www.simplifyingthemarket.com/2022/05/10/will-home-prices-fall-this-year-heres-what-experts-say/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="home prices" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/10/will-home-prices-fall-this-year-heres-what-experts-say/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw2cimT8x4UJoT4mKaMWgjDC">home prices</a> won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/first-quarter-of-2022-brings-double-digit-price-appreciation-for-70-of-metros" title="explains" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.nar.realtor/newsroom/first-quarter-of-2022-brings-double-digit-price-appreciation-for-70-of-metros&source=gmail&ust=1654616553079000&usg=AOvVaw1W9W0OKZrdWQZOA7JnFg4P">explains</a>:
“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we're unlikely to see price declines, but appreciation should slow in the coming months.”
As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against <a href="https://www.simplifyingthemarket.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="inflation" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw28kQoTRKkZ5ZodYHkgR2LI">inflation</a>.
As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.
Bottom Line
Whether you’re a home buyer or seller, you need to know what’s happening in the housing market, so you can make the most <a href="https://www.simplifyingthemarket.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="informed decision" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1654616553079000&usg=AOvVaw18QHHzdx2eS6wRoCD1OJQs">informed decision</a> possible. Let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.2022-06-06T14:07:00-07:002022-06-06T14:07:25-07:00Michael Vonderautag:vonderau.com,2012-09-20:9002How Homeownership Can Help Shield You From Inflation <img src="https://assets.site-static.com/userfiles/2793/image/Car_in_neighborhood.jpg" width="1500" height="1000" />
If you’re following along with the news today, you’ve likely heard about rising inflation. You’re also likely feeling the impact in your day-to-day life as prices go up for gas, groceries, and more. These rising consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about <a href="https://www.simplifyingthemarket.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="purchasing a home" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw0NZZwBABMo-S6Eq_YcsEs6">purchasing a home</a> this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how <a href="https://www.simplifyingthemarket.com/2022/04/11/using-your-tax-refund-to-achieve-your-homeownership-goals-this-year/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="homeownership" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/04/11/using-your-tax-refund-to-achieve-your-homeownership-goals-this-year/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw0ImOGIV0-5ZczAyR6qTGmu">homeownership</a> can help you combat the rising costs that come with inflation.
Homeownership Offers Stability and Security
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" title="explains" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.investopedia.com/terms/i/inflation.asp&source=gmail&ust=1651691901108000&usg=AOvVaw2eI2N4arXwaF69MEGttzbH">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both <a href="https://www.simplifyingthemarket.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="rental prices" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw3lG46DmGawXQBS__R7BOFQ">rental prices</a> and <a href="https://www.simplifyingthemarket.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="home prices" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw0JISdsxrY4hjLD_oqEp6yp">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in homeownership.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. If you get a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="says" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/&source=gmail&ust=1651691901108000&usg=AOvVaw2oEsoF2lISX7Tl4enqu5XL">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
So even if other prices rise, your housing payment will be a reliable amount that can help keep your budget in check. If you <a href="https://www.simplifyingthemarket.com/2022/02/25/the-difference-between-renting-and-owning-infographic/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="rent" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/02/25/the-difference-between-renting-and-owning-infographic/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw3dvdYncys1DgKB6SCmYPdU">rent</a>, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Use Home Price Appreciation to Your Benefit
While it’s true rising <a href="https://www.simplifyingthemarket.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="mortgage rates" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw06Gw0cBJXITHfROXbwe5mW">mortgage rates</a> and <a href="https://www.simplifyingthemarket.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="home prices" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw1CgefbaA26j2cMSchSPokD">home prices</a> mean buying a house today costs more than it did a year ago, you still have an opportunity to set yourself up for a long-term win. Buying now lets you lock in at today’s rates and prices before both climb higher.
In inflationary times, it’s especially important to invest your money in an asset that traditionally holds or grows in value. The graph below shows how home price appreciation outperformed inflation in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<img src="https://assets.site-static.com/userfiles/2793/image/homeownership_inflation_graph_.png" width="640" height="480" />
So, what does that mean for you? Today, experts say home prices will only go up from here thanks to the ongoing imbalance in supply and demand. Once you buy a house, any <a href="https://www.simplifyingthemarket.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="home price appreciation" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw1b2EjB3L8NvdNhyi7W7YKU">home price appreciation</a> that does occur will be good for your <a href="https://www.simplifyingthemarket.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="equity" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw2EEtkYzAzmJmxntPMRu8ta">equity</a> and your <a href="https://www.simplifyingthemarket.com/2022/03/28/a-key-to-building-wealth-is-homeownership/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="net worth" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/03/28/a-key-to-building-wealth-is-homeownership/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw2lpLfyDUs_zUQMre-8tx78">net worth</a>. And since homes are typically assets that grow in value (even in inflationary times), you have peace of mind that history shows your <a href="https://www.simplifyingthemarket.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/?a=735254-97a68024136f95ae5b3bca05ced75de4" title="investment" rel="noopener noreferrer" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.simplifyingthemarket.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/?a%3D735254-97a68024136f95ae5b3bca05ced75de4&source=gmail&ust=1651691901108000&usg=AOvVaw2ONBTeqMrltCn-gKQXmjCs">investment</a> is a strong one.
Bottom Line
If you’re ready to buy a home, it may make sense to move forward with your plans despite rising inflation. If you want expert advice on your specific situation and how to time your purchase, <a href="https://www.vonderau.com/contact/" target="_blank">let’s connect</a>.
2022-05-11T06:00:00-07:002022-05-11T11:38:34-07:00Michael Vonderautag:vonderau.com,2012-09-20:88206 Pro Staging Tips to Help Sell Your Home<img src="https://assets.site-static.com/userfiles/2793/image/Home_Stage_with_Desk.jpg" width="1600" height="1068" />
Spring is here in Cleveland!
If you’re ready to sell, now is the perfect opportunity to clear the clutter and get your house ready for staging. Try these 6 staging tips for picture-perfect listing photos and open houses.
1. Curb Appeal Matters.<a href="https://www.homedepot.com/c/pressure_washer_equipment_rental" target="_blank"> Rent a power washer</a> to clean up your home’s siding, roof, gutters, and even driveway of winter grime. Fill flowerbeds with fresh mulch and greenery, and give that mailbox a fresh coat of paint!
2. Remove the Clutter - That Means Furniture, Too! While you don’t want to empty your home to the point that it looks bare, less is more when it comes to staging. Removing those overstuffed armchairs or clunky mismatched dressers will go a long way in creating a more inviting, spacious look. Aim for streamlined pieces arranged in an easy-to-navigate layout.
3. Add An Intentional Office Space. With so many people working from home now, help potential buyers to envision themselves in your space. Whether you tidy up your dedicated home office or create a makeshift desk in a sunny nook, it will help show off the range and functionality of your house.
4. Keep It Neutral. When buyers walk into your home, they should see a beautiful blank slate that they can personalize. Swap out the family photos for more generic artwork, and opt for sophisticated neutral tones with an occasional pop of color in decorative accents -<a href="https://www.athome.com/clayton-coconut-button-throw-pillow-20/M124231419.html?dwvar_M124231419_color-code=14&pid=M124231419&quantity=1&nav=left_nav" target="_blank"> throw pillows</a> and plants are great for this.
5. Make the Surfaces Shine. Nothing is a turn-off quite like a dirty bathroom or smelly kitchen. Commit to an elbow-grease level cleaning of all countertops, appliances, cabinets, mirrors, and storage spaces. Don’t forget to vacuum up any pet hair!
6. Create a BBQ-Worthy Backyard. If you have an outdoor space, try to match it to the lifestyle of the community. With the weather warming up, consider hanging a hammock or adding some charming patio furniture and accessories.
<img src="https://assets.site-static.com/userfiles/2793/image/home_staging_deck_2.jpg" width="800" height="534" />2022-04-26T06:24:00-07:002022-04-26T06:20:24-07:00Michael Vonderautag:vonderau.com,2012-09-20:6689How Long Will The Market Be This Hot?How Long Will The Market Be This Hot?
By Mike Vonderau, Lead Agent
The Vonderau Team at Howard Hanna
“How much longer do you think the market is going to keep going like this?” Lately that is one of the most common questions I receive from friends and neighbors. While no one knows the answer to that question with complete certainty there are some indicators that give us an idea of where the market is heading.
How we got here in the first place
Most people are aware that real estate markets across the country have posted record high sales prices, though many people aren’t exactly sure why. The soaring home prices this spring can be attributed mainly to our historically low housing inventory coupled with rock-bottom interest rates which have in turn increased buying power. The limited supply of homes has meant that buyers have had to compete against one another in multiple offer scenarios in an attempt to land their dream homes. These multiple offers situations have generated sale prices significantly over the asking price.
How hot is hot?
In the Cleveland westside suburbs, for home sales that have closed in the past thirty days, homes have been selling at an average of 103% of list price. Over the last thirty days North Ridgeville has posted the highest average percentage over list price at an average of 105%. In Lakewood one home sale set a high-water mark for the west side suburbs at 140% of list price. All of this is the result of limited housing supply and increased buying power.
How things could change
While sellers are certainly benefiting from the current market scenario most agents agree that things can’t continue on like this indefinitely. And while there is ample reason to be confident that we’re not in the midst of a housing bubble (click <a href="https://www.bloomberg.com/news/articles/2021-06-10/real-estate-prices-are-soaring-but-there-s-no-sign-of-a-housing-bubble">here</a> to check out one Bloomberg article in particular) you can be certain that things will change at some point.
The change will either come in the form of decreasing demand (which doesn’t seem very likely at this point) or increasing supply. We are already seeing signs that the latter is in motion. Check out the graph below that shows the steady increase in market inventory nationally since January.
<img src="https://assets.site-static.com/userfiles/2793/image/Picture1.png" width="971" height="738" />
While we’re still a LONG way away from a “balanced market” (which is typically understood to be a 6 month inventory supply) it is likely that the inventory shortage has bottomed out and is now on the rebound. This may have to do in part with builders ramping-up production and the increase in COVID vaccination rates (and lifting of mask requirements) but it also can be at least partially attributed to homeowners responding to the elevated sale price by opting to sell now in order to capitalize on the hot market. We’ve had several homeowners reach out recently saying that they weren’t planning to move for a few years but in light of the current market they’d like to get their house up for sale ASAP – even at the ground level we are seeing a market response to these elevated sales prices. The more people that respond this way the more inventory we’ll see hit the market in upcoming months.
You didn’t miss the boat
If you’re looking to sell within the next year you may be wondering if you’ve missed the boat. Don’t worry, you likely did not. As much as we are seeing inventory steadily build back, sale prices aren’t likely to dramatically change overnight. You still have some more time to get your home on the market and capitalize on these historic prices — but don’t wait too long. The graph below gives you an idea of the historical trend in inventory going back 20+ years. As you can see, even with inventory steadily increasing we are a long way away from having enough inventory to meet current demand.
<img src="https://assets.site-static.com/userfiles/2793/image/Picture2.png" width="983" height="713" />
If you’re interested in a consultation about what price you could get for your home and what you need to do in order to prepare it for market give us a ring at 440-871-3050 or email me at <a href="mailto:mike@vonderau.com">mike@vonderau.com</a> and we’d be happy to set up an appointment. 2021-08-02T13:25:00-07:002021-08-02T13:41:09-07:00Michael Vonderautag:vonderau.com,2012-09-20:4879Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/2793/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2020-12-23T12:56:00-07:002020-12-23T12:58:53-07:00Michael Vonderautag:vonderau.com,2012-09-20:4878Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/2793/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2020-12-23T12:56:00-07:002020-12-23T12:59:03-07:00Michael Vonderautag:vonderau.com,2012-09-20:4877Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/2793/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2020-12-23T12:56:00-07:002020-12-23T12:59:00-07:00Michael Vonderautag:vonderau.com,2012-09-20:4876Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/2793/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2020-12-23T12:56:00-07:002020-12-23T12:58:56-07:00Michael Vonderau