Buying a House? Four Reasons to DO IT NOW

Buying a House? Four Reasons to DO IT NOW

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polled a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 30.8% (most optimistic) and 9.4% (most pessimistic).  The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although the Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently around 4.2%, Freddie Mac is projecting (active link) that rates will increase to 5.2% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way, You are Paying a Mortgage

As a research paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

Leslie Hanna Smitke just closed on her new house
with Liz Sandwick.  Make the right choice, contact Liz today!

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.  But, what if they weren’t? Would you wait? 

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe it is time to buy.  If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

11 Questions to Ask Before Hiring a Moving Company Was your plan to Google Moving Company? Think again.

11 Questions to Ask Before Hiring a Moving Company

Was your plan to Google Moving Company? Think again.

LINDSAY LISTANSKIYESTERDAY

Guest post by Co-Founder NorthStar Moving Company Laura McHolm

I know, you were thinking you would just Google “moving company.” Sure, you will find a zillion moving companies, but are you ready to handover your baby grand piano or other prized possessions into any stranger’s hands? So, how do you choose the mover you can trust?  Here are some handy tips on what to look for when hiring a mover.

First, when choosing a moving company, reputation is crucial. A great reputation saves you time and money. And, a great reputation equals great rates. No one ever says: “oh yes, I LOVE this company they just made me over pay for their crappy service.” So, if you take away only one tip: It’s choose your mover based on reputation.

How do you know who to trust with all your worldly possessions? Asking key questions not only uncovers a wealth of knowledge about the company and helps prepare you for moving day, but a little extra research can save you from a huge hassle in the long run. Here are some surefire questions to ask before hiring a mover:

• How long has the moving company been in business? Experience counts and a track record shows their ability to deliver each and every time. They have moved countless kids clay hand-prints and know they are simply irreplaceable: no amount of insurance is going to ever give you those back.
• Are they licensed? If you are looking for a moving company to move you from state to state the moving company should have a US DOT number, which is a unique license number issued by the United States Department of Transportation. Make sure your mover’s DOT number is valid by searching it in this database. If you’re looking for a moving company to move you with in your own state they need a state license. In California, it’s a Cal T license.
• Is the company insured? Verify that the company is insured on the same website you use to check their license number. Never use a moving company without a license number or insurance. Think underage unlicensed teenage driver at the wheel of a semi-truck. Not a good idea, right? Neither is an unlicensed or uninsured bunch of folks who call themselves a moving company or group of dudes who really only do moving as a side job. Also, check to see if your personal items are covered during a move under your homeowners or renters policy. If not, you may want to consider supplemental moving insurance.Movinginsurance.com or moveinsure.com are good resources.
• Have they won any awards or accolades for service? Can they show you any letters of recommendation? If they haven’t won any awards for service, chances are they aren’t going to win any awards from you. Remember a great reputation absolutely saves you money. NO ONE gives a glowing review to a company that over promised, under delivered and over charged.
• Be sure to check out the company’s rating with the Better Business Bureau (BBB). Social media sites such as Yelp, Citysearch and TrustLink will also give you a look into other people’s experiences with the company. Make yelpers your new BFFs.
• Low rates don’t necessarily mean a low final bill. Study rates! What do their rates really include? Are fuel charges incorporated? Also, just like the airlines, rates can vary based on season and days of the week. Will they give you a better rate if you move on a Sunday as opposed to a Monday? Repeat your new mantra: Great Reputation equals Great Rates. And repeat again: no one wins awards or great reviews when they overcharge!
• If you are moving out of state, ask the company to explain in detail its consolidation policy and delivery windows. Consolidation is when your belongings are combined with other people’s and shipped together. It’s a great way to save money, but be aware that it will add time to the delivery schedule because multiple stops for the other folks’ deliveries are made as your belongings travel across the country. Is the moving company forth coming about the fact that long distance moves almost always involve a delivery window not an exact delivery date? It’s better to know all this upfront so you can pack a suitcase that stays with you, you don’t want to start your new job in your gym shorts or pjs.
• Will the moving crew wrap and protect your furniture to prevent damages? How many movers will be on the job? How long will the job take? Are there enough hours in the day? Will you be charged if there is overtime?  By law a moving company can only give you rates on the phone not estimates on the phone. Does the moving company provide free on site estimates?
• Are they active in the community? If they care about the community, chances are they will care about you and your move. They want to continue doing business in your town a long, long time. And, they aren’t just into one night stands but really want a committed relationship with your community and you, your friends and your family.
• What sort of specialty experience do they have? Are they familiar with high rises and elevators? Additional men and equipment can mean surprising extra costs.
• Ask the movers to measure your doorways, stairways, elevators etc… and take pictures of them before the move so you can’t be blamed for any damage.
• Lastly, let the moving estimator ask YOU questions. If he/she hasn’t asked a single question, yet is ready to give an estimate, turn and run.

Laura McHolm is an organizational, moving & storage expert and co-founder of NorthStar Moving Company. NorthStar Moving Company is an award winning, “A+” rated company, which specializes in providing eco-luxury moving and storage services. www.northstarmoving.com

Pent-Up Buyer & Seller Demand About to be Released?

Pent-Up Buyer & Seller Demand about to be Released?

American consumers’ perception of the residential real estate market was revealed in a recent survey by Edelman Berland. They interviewed 2,500 Americans who are “in the market” to buy or sell a home. Respondents were between 25-64 years old with a household income of at least $50,000.

Here are the key findings of the survey:

BELIEF in the HOUSING MARKET

There is a strong belief among this segment of the population that the housing market is on the right track and that is committing almost 7 out of 10 to buy or sell a home this year. Millennials belief in real estate is actually higher than the overall population.

• 77% of consumers (and 85% of Millennials) have a favorable view of housing
• 79% of people (and 83% of Millennials) believe the housing market is on the right track
• 69% of consumers said they are committed to buying or selling a home now

CHALLENGES

The extreme weather faced by much of the U.S. definitely delayed many real estate transactions. That pent-up demand is now being released causing price appreciation in many regions of the country. This rise in prices and the expected increase in interest rates is causing many purchasers to buy sooner than later.

• The main reason (45%) people waited to make a real estate transaction is they were waiting for spring weather to arrive
• 76% of consumers believe that pent-up demand will create even more competition for existing homes
• 74% of consumers are most concerned about higher than expected prices when buying a home this spring
• 83% of consumers are motivated to act sooner than later because they fear interest rates will increase

Other interesting findings from the survey (broken down by buyers and sellers):

Buyers

• 80% of real estate consumers are more committed to buying
• 78% of potential buyers said it will be easier to purchase a home this spring since “homeowners want to sell”
• 72% are encouraged because “the economy is improving”
• 46% of buyers said spring was a more favorable time to buy a home
• 28% of buyers said summer was a more favorable time to buy a home (an 8% increase over last summer)

Sellers

• 83% of real estate consumers are more committed to selling
• 63% of sellers are buoyed this spring by the improving economy and their perception that buyers are motivated following the difficult winter

Bottom Line

The real estate market will continue to gain ground through the summer as more and more people realize this is a great time to move. And, the vast majority (88%) of those surveyed realized that hiring a real estate professional is important to their home buying or selling success.

Five Reasons to Sell Now

Five Reasons to Sell Now

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. Demand is Strong

There is currently a pent-up demand of purchasers as many home buyers pushed off their search this past winter because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which feel off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Considering Selling Your Property without a REALTOR®?

When people decide to sell their home they do it for a number of reasons and what they net from the sale of their home is important to them.  Sometimes sellers have a positive net sale - meaning they walk away from selling their home with some money  in their pockets.  And sometimes sellers have a negative net sale - meaning they bring money to the closing table. 

As a Minnesota licensed realtor I have understood that each situation is different.  Each set of buyers and sellers tend to create their own set of dynamics in the transactions of expectations, experiences and expenses.  With each situation and transaction, fiduciary duties are required including loyalty, obedience, disclosure, confidentiality, reasonable care, accounting and lots of positive energy.  :)    

Some people are not aware of all that goes into selling a house and believe their best option may be to sell the property themselves.  Sometimes this can be the case, but in other times - those sellers are missing out on many benefits of hiring a REALTOR.  See the graphic below:

There is a ton of online marketing that goes on besides just listing a property on the MLS.  As an e-PRO certified REALTOR, I can show you the value of my online marketing that can make a big difference in your bottom line.

In addition to negotiating with the buyer, buyer's agent, buyer's bank, the inspection company, appraiser, title company a REALTOR has access to buyers and buyers' agents.

Below is the research of for sale by owner as seen with the 2012 National Association of REALTORS® Profile of Home Buyers and Sellers:

But before you decide to sell your house, have a licensed REALTOR® meet with you to discuss how they can help you sell your home.  Contact me today to set up a no obligation consultation regarding selling your property.  

For Sale By Owner (FSBO) Statistics

FSBOs accounted for 9% of home sales in 2012. The typical FSBO home sold for $174,900 compared to $215,000 for agent-assisted home sales.

FSBO methods used to market home:

• Yard sign: 48%
• Listing on Internet: 32%
  • For-sale-by-owner websites: 20%
  • Sites with real estate listings (e.g. Yahoo!, Google, etc.): 11%
  • Social networking websites (e.g. Facebook, Twitter, etc.): 10%
  • Video hosting websites (e.g. YouTube, etc.): 2%
• Friends, relatives, or neighbors: 30%
• Print newspaper advertisement: 14%
• Open house: 12%
• Direct mail (flyers, postcards, etc.): 2%
• Video: 1%
• For-sale-by-owner magazine: 1%
• Television: <1%
• None: Did not actively market home: 31%
• Other: 2%

Most difficult tasks for FSBO sellers:

• Understanding and performing paperwork: 18%
• Getting the right price: 14%
• Preparing/fixing up home for sale: 11%
• Helping buyer obtain financing: 6%
• Attracting potential buyers: 6%
• Selling within the planned length of time: 6%
• Having enough time to devote to all aspects of the sale: 1%

Source: 2012 National Association of REALTORS® Profile of Home Buyers and Sellers

e-Pro Certified makes a difference in home sales

I have been blogging about real estate on my website since 2011.  Please check out my archives: LizSandwick.com.  

As an e-PRO certified MN licensed REALTOR®, I focus on being up to date with the market conditions, marketing techniques and networking skills to sell a property for the highest market value in the least amount of time.  What does it mean to be an e-Pro certified REALTOR®?

 e-PRO® certification means I am willing to go the extra mile to provide the most up-to-date and sophisticated service, and truly be a successful agent for my buyers and sellers. Applying advanced technologies and social media strategies to my business plan expands my capabilities, increases my reach, and builds trust with my clients. Being an e-PRO® is good for my business and for my clients.  :)  If you have any questions or thoughts on how I might best help you.  Please contact me in your favorite contact medium and we'll connect.  

Social media is changing how people in real estate do business
The web is often the first place people turn for answers. They use it during every stage of the purchase process for buying everything from a toothbrush, to a television, to a home. Businesses are taking notice and increasing their online presence, especially on Facebook and Twitter. Real estate professionals are also using social media to offer advice, serve as a resource, and position themselves as the expert in a particular area.

The proof is in the numbers
Today, there are over 500 million users on Facebook, over 70 million on Twitter, and millions of others on YouTube, blog sites, and numerous other social media sites. And the greatest thing about social media marketing is that you can engage these users, and see measurable results.  With innovation and commitment, I make social media a part of my real estate business.

Now is the time to connect
By incorporating social media into my business strategy now, I will grow with existing technology and be ready for what’s next.  I plan on using the right and best tools to help my clients achieve their goals and dreams.


Why Use an e-PRO®?

Social media is still relatively new, and evolving every day. An agent with NAR's e-PRO®certification is dedicated to making the most of today's social media and technology to help you with your real estate needs, whatever they may be.

e-PRO® is the only technology certification to be officially recognized, endorsed, and conferred by the National Association of REALTORS®.

Agents with NAR’s e-PRO® certification demonstrate:

• Advanced training in using the latest technology and social media to promote your property or find your next home
• A clear understanding of the ways that e-office strategies, rich media and social networking can benefit today's consumer in a real estate transaction
• Excellence in adopting, implementing, and promoting technology best practices
• Ethics with commitment to use technology in fair and responsible manner
• Professionalism by completing an education program designed to keep one’s technical knowledge and skill sets up-to-date

Three Reasons To Sell Your Home This Spring

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.

These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition - For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.

Moving up to a new home will be less expensive this spring than later this year or next year.