Thinking of Selling? Why Now is the Time

It is common knowledge that a large number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year.

The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring, as compared to the rest of the year? The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2016.

The three months in the second quarter of the year are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,820,000.

That number spiked to 2,140,000 by May!

What does this mean to you?

With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for a home right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition for a buyer.

Bottom Line

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.

—————————————————

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

Open Floor Plan Still Popular

Open floor plans continue to reign. Eighty-four percent of builders say that in the typical single-family home they build, the kitchen and family room arrangement is at least partially open. Fifty-four percent say it’s completely open, according to responses from a September 2016 National Association of Home Builders/Wells Fargo Housing Market Index.

“Completely open” essentially means the two areas are combined into the same room. Partially open signifies areas separated by a partial wall, arch, counter, or something less than a full wall.

Seventy percent of recent and prospective home buyers say they prefer a home with either a completely or partially open kitchen-family room arrangement; 32 percent say they prefer the arrangement completely open, according to an NAHB survey.

Only 16 percent of buyers say they want the kitchen and family rooms in separate areas of the house.

As demand continues to increase for open floor plans, homeowners of existing-homes are also looking to open up their kitchen and family room areas. Professional remodelers report that 40 percent of their projects involved making the floor plan more open by removing interior walls, pillars, arches, etc., according to first quarter of 2016 data in the Remodeling Market Index.

Source: “Builders Satisfy Demand for Open Floor Plans,” National Association of Home Builders’ Eye on Housing blog (Jan. 11, 2017)

—————————————————

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com

How to Avoid House-Hunting Drama

Horror stories often abound when house hunting enters the conversation. Whatever you’ve heard, it’s natural to feel a little apprehensive when making what could be one of the biggest purchases in your life.

Moving is one of the most stressful situations that a person can go through. It’s one of the most rewarding, but also one of the most stressful. So if you’re in the market for a house, follow these tips to drop the drama at the door during your search for a home.

Know What You Want

The first step to avoid house hunting drama is to really sit back and think about what is most important to you. What are your non-negotiables? Location? Educational opportunities? Price? Daily commute? Once you have determined what is important to you and your family, then begin your home search.

Stick to Criteria

Be sure to check that the communities in which you are conducting your search include homes that align with your values. This will narrow down your scope so you are not looking at hundreds of homes, just the ones that fit in your criteria. If you do your research ahead of time, you can be more confident that what you want is available in the area that you want. Looking in an area that’s not going to provide the home type that you want is going to cause frustration.

Get Preapproved

The search for the right home can take long enough, let alone with extra interruptions. Avoid paperwork hiccups by submitting all of the necessary documents to make sure your loan is completely preapproved. So if there is any issue, it is identified early on in the process and not the moment that you’re trying to submit a contract on the property.

Remember that you don’t make your monthly payment to the price of the home. Price is relative to the mortgage you are able to obtain. So be sure to get your numbers locked down so you know what price range you are most comfortable with.

Choose the Right Person

When choosing a real estate agent, do your research. Meet with them to make sure you are a fit. Give them your expectations and make sure they have the ability to get the job done.

Hiring the right home inspector could also ensure a smoother home buying process.

It’s all in the reports that they provide. The ideal reports by inspectors include detailed explanations as well as photographs. Unfortunately, some reports consist of a two- to three-page checklist. This can create frustration on the buyers and the sellers part because you don’t have clear enough documentation on what the problem is.

Communication is Key

Communication is the antidote for any drama disease. The more open the client is with the agent, the less drama is going to present itself in the transaction. You have to trust your agent and relate to them as a confidant, as an ally.

Be open about your biggest stressors and fears in the home buying process with your real estate agent. If you are prone to anxiety and stress, don’t be embarrassed by that, but bring that to your agent.

Know Your Personality

Let’s face it. Most of us have at least one drama queen in our lives. And some of us might just be one. Be true to yourself. If you know that you’re a drama-filled person, then embrace that. A good real estate agent will have experience in working with all different kinds of people and family dynamics. If that’s your personality type, make your agent aware.

Don’t Wait

Procrastination causes drama. If you have a deadline, many real estate professionals recommend beginning four to six months ahead of time to start educating yourself on the process. Do some research on your local housing market. For example, find out the average amount that is negotiated in your community. Have the right expectations, or else you’re setting yourself up for frustration. A little preparation will go a long way in helping your assumptions stay reasonably accurate.

—————————————————

Jon Mahoney

Director, Luxury Homes Division

Professional Financial Planner

Keller Williams, Santa Barbara

(805) 689-0532

BRE# 01269717

info@JonMahoney.com

www.JonMahoney.com