7 Reasons to Work With a REALTOR®

REALTORS^® aren’t just agents. They’re professional members of the National Association of REALTORS^® and subscribe to its strict code of ethics. This is the REALTOR^® difference for home buyers:

1. An expert guide. Selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.
2. Objective information and opinions. REALTORS^® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs^®can use that data to help you determine if the property has what you need.
3. Property marketing power. Property doesn’t sell due to advertising alone. A large share of real estate sales comes as the result of a practitioner’s contacts with previous clients, friends, and family. When a property is marketed by a REALTOR^®, you do not have to allow strangers into your home. Your REALTOR^® will generally prescreen and accompany qualified prospects through your property.
4. Negotiation knowledge. There are many factors up for discussion in a deal. A REALTOR^® will look at every angle from your perspective, including crafting a purchase agreement that allows you the flexibility you need to take that next step.
5. Up-to-date experience. Most people sell only a few homes in a lifetime, usually with quite a few years in between each sale. Even if you’ve done it before, laws and regulations change. REALTORS^®handle hundreds of transactions over the course of their career.
6. Your rock during emotional moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.
7. Ethical treatment. Every REALTOR^® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR^®’s client, you can expect honest and ethical treatment in all transaction-related matters. 

Homes Are Getting More Affordable

DAILY REAL ESTATE NEWS

Housing affordability may finally be showing signs of improvement, according to a new analysis of American Community Survey data.

View NAR's Housing Affordability Index

About 33.6 percent of households were cost-burdened in 2015, which means they spent more than 30 percent of their incomes on housing costs. That's down from 34.6 percent a year earlier, according to Jed Kolko, chief economist at job site Indeed, and senior fellow at the Terner Center for Housing Innovation at the University of California, Berkeley.

Low mortgage rates are one factor helping to improve affordability. Renters are also seeing improvement, which may be aided by recent income gains that are outpacing rent growth, Kolko notes.

About 49 percent of renters were cost-burdened in 2015, which means they spent more than 30 percent of their incomes in rent, compared to about 50 percent a year earlier. That is the lowest percentage since 2008, according to Kolko’s analysis.

Also notable, single-family home ownership has seen its biggest rise since 2007. Single-family ownership rose to 65.7 million owner-occupied single-family homes in 2015 compared to 65.2 million a year earlier.

Source: “U.S. Households Make Long-Awaited Gains in Housing Recovery,” The Wall Street Journal (Sept. 15, 2016)

A Lesson for Sellers on Disclosures

DAILY REAL ESTATE NEWS

Sellers may feel hesitant to reveal any minor problems with their home, afraid they’ll scare off buyers. But here’s a warning for your sellers: They may land in legal trouble if they fail to disclose.

Disclosure laws vary from state to state, and sometimes even on a local level. “Most sellers think it is in their best interest to disclose as little as possible,” Rick Davis, a real estate attorney in Kansas, told realtor.com®. “I completely disagree with this sentiment. In the vast majority of cases, disclosing the additional information (especially if it is something that was previously repaired), will not cause a buyer to back out or ask for a price reduction.”

“In general, sellers should disclose any known facts about the physical condition of the property, existence of dangerous materials or conditions, lawsuits or pending matters that may affect the value of the property, and any other factors that may influence a buyer’s decision,” according to a recent article at realtor.com®.

This includes disclosing issues that have been previously repaired, Davis says. Also, disclose any inspection reports.

“It is much better to lose a buyer by clearly disclosing all known issues than it is to spend two years and tens of thousands of dollars in litigation,” says Adam Buck, a certified real estate specialist with the Frutkin Law Firm in Arizona.

Rest assured, sellers won’t be put on the hook for failing to disclose issues that they didn’t know about.

They should be careful not to make any guesses when prompted, particularly when it comes to the measurements of the home — one common problem area for disclosures. 

“Even if you’ve had an appraiser check out your home, you may have no idea how many square feet it truly is because, as it turns out, there’s no single agreed-upon way to measure a home,” the article states. “Three different appraisers can come up with three different measurements.” Don’t make a guess or buyers can come back and accuse you of misleading them.

Source: “Learn These Basic Rules of Seller Disclosure So You Don’t Get Sued,” realtor.com® (Sept. 20, 2016)

MARKET OUTLOOK: HOME VALUES SEEN IMPACTING CONSUMERS

Written by MBM Research 

When we look at the broader US economy over the last decade, we have seen some very interesting market trends that have defined the period.  According to many analysts, real estate markets have yet to overcome the negatives that were seen during the housing bubble and this is important for all consumers with investments regardless of the asset type. Over the last year, the monthly housing price index has drifted lower from its highs in January and this suggests that new home buyers will still be able to find real estate opportunities in most of the country’s regional markets.

This is critcal for all types of homebuyers but it is particularly impoprtant for those buying their first home as it can essentially make all of the difference when you are looking to maximize your opportunities for buying a well-priced piece of real estate.

Chart View:  Housing Prices Monthly

In the chart above, we can see that national housing prices have really started to show stalling momentum over the last three months.  The weakness here has not been evenly dispersed, and we are still seeing slower numbers in markets like California and Florida.  This has not been the case in the Pacific Northwest,however, as markets like Seattle and Portland have benefited from California residents that have migrated to avoid the drought-ridden areas in the southern parts of the state.

Broader Volatility

When we look at the reasons for why these trends have occurred, it is important to look at the investment market as a whole.  It is true that equity markets have risen to long-term highs and have held there (for the most part) and this is something that is generally encouraging for the real estate space as well.  But there are other key areas that should be considered given the fact that commodities markets tend to have an inversely correlated relationship with what tends to be happening in real estate markets.

Overall, we have seen massive rallies in commodities and this is a large part of the explanation for why fund ownership of BHP Billiton is rising.  These types of events do not exist in a bubble, and those looking to invest in property should look at these situations before making any major purchases.

In general, property markets tend to perform best when equities are lackluster and commodities prices are lower.  This helps to cut costs in the actual home building process and when this filters into lower purchasing prices it can be beneficial for homeowners in a few different areas.  So if you are a newer homeowner or looking to buy with a limited budget, these are some of the factors that you should consider.  There are still some excellent deals available in the US housing market if you are able to choose an underserved geographical location and you are willing to put in the research needed to select the appropriate types of home and land combinations.  

Under Pressure?

Want Solar Panels on Your Roof? Here's What You Need to Know

Source: Atlantic

The cost of solar keeps on falling and the number of installations keeps rising, but there are a lot of important questions to consider before making the jump to solar energy. The nonprofit Interstate Renewable Energy Council has just released a consumer checklist and other resources for rooftop solar since the number of experienced buyers is limited. For instance, it’s advised that potential buyers start with an energy audit and look for efficiency upgrades before you draw up blueprints, as the amount of solar energy you need to produce depends on how much energy you actually use.

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Why Aren’t New Homes Going Up That Millennials Can Afford?

Source: Yahoo! Finance

  Hopeful home buyers who have to navigate newly strict lending standards to get the necessary cash for a new home aren’t the only ones facing a hard time to obtain financing. Developers and builders also have had a harder time getting the financing needed to embark on new projects, which limits the amount of new construction. The bulk of residential construction around the country is done by smaller builders who typically go to local lenders such as banks and credit unions for financing. Robert Dietz, chief economist at the National Association of Home Builders, commented, “There are limits to how fast the industry can grow, given the industry has to rebuild its workforce, rebuild the building lots supply, and also have an increased access to lending for builder loans.”

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Does Increase in Home Renovation Plans Suggest People Unwilling To Move?

Source: Marketplace

Twenty-eight percent of U.S. homeowners plan to remodel, expand, or otherwise improve their homes in the next 12 months, according to the latest Bankrate Money Pulse survey. Even lower-income homeowners are planning to renovate by using savings, credit cards, or bank loans. Some people might just be sprucing up their houses to sell them, but planning big projects seems to indicate many homeowners plan to stay put and finally tackle projects they put off during the recession. About 52 percent of homeowners planning a project over the next year indicate they want to work on their driveways, decks, patios, pools, landscaping, or fencing. One professor commented that the housing crisis forced many people to give up on the idea of buying a big, fancy house, especially since housing prices have risen out of reach.

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