Len and Leslie Marma | Marshfield Real Estate, Scituate Real Estate, Pembroke Real Estate


The Feeling You Get from Owning Your Home https://www.simplifyingthemarket.com/en/2019/06/05/the-feeling-you-get-from-owning-your-home/?a=28412-23dcd4fcc91efdbe85908cce94fbbd07#HousingMarket #LenandLeslieMarma #MarshfieldRealEstate


The annual rate of home price appreciation falls to a 7-year low https://www.housingwire.com/articles/49250-the-annual-rate-of-home-price-appreciation-falls-to-a-7-year-low#.XPav1B3g9k4.twitter




Vacant homes sell for $11,306 less than comparable occupied homes

 
house

America’s vacant homes are not only selling for less money, but they are also spending more time on the market, according to a recent analysis from Redfin.

The average vacant home sells for $11,306 less and spends six more days on the market than comparable occupied homes, revealed the analysis, which compared the sale prices and time spent on the market of home listings marked as vacant with those marked non-vacant.

 

According to the report’s findings, less than 3% of homes included in the analysis started out occupied and became vacant while on the market.

“Although vacant homes are easy for buyers to tour at their convenience, the fact that the sellers have already moved on is often a signal to buyers that they can take their time making an offer,” Redfin Chief Economist Daryl Fairweather said. “It’s also likely that sellers who are in a comfortable enough financial situation to own a property that’s sitting empty aren’t as motivated to get the highest possible price for their home as sellers who need the cash from their first home in order to buy the next one.”

Although Redfin determined that vacant homes sell for less money in every housing market included in its analysis, the company revealed the amount varies by location.

In fact, Redfin discovered that vacant homes come with the biggest discount in relatively affordable inland areas. Additionally, while the price differential is smaller in expensive West Coast markets, vacant homes are still selling for less.

“In both Omaha, Nebraska and Greenville, South Carolina, where vacant homes are associated with the biggest discount, vacant homes sell for 7.2%, or about $15,000, less on average than occupied homes,” Redfin writes. “Next comes El Paso, Texas, where the average vacant home sells for 6.6% – about $10,000 – less than comparable occupied homes.”

However, Redfin highlights that in San Jose’s housing market, buyers get the smallest discount on vacant homes. According to the company’s data, San Jose buyers save about 0.9% when purchasing a vacant home instead of an occupied one.

“When the Bay Area real estate market is ultra-competitive like it was in 2018, vacant homes tend to sell faster than the ones occupied by their owners or tenants,” Redfin Agent Chad Eng said. “Vacant homes are accessible 24/7, which means homebuyers can see them and put in an offer quickly in hopes of beating out other potential buyers.”

NOTE: Redfin utilized linear regression to predict the sale price of homes sold in 2018 for each housing market the company tracks. Redfin reviewed local MLS commentary in order to determine whether or not a home was listed as vacant or occupied.


M Crew, May 16th, 2019

4 Tips for Making a Competitive Offer | MyKCM

So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:

1. Determine Your Price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.

Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.

Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality!




Builder confidence in this sector reaches record high

construction

The 55+ housing market is thriving right now as more Baby Boomers look to invest in a new nest to live out their retirement dreams.

With scores of older adults looking at new single- and multifamily builds, homebuilder confidence in this market has soared to a record high.

According to the latest from the National Association of Home Builders, builder confidence in the 55+ market reached 76 in the first quarter of 2019 – up six points from the previous quarter and the highest score since the index started more than a decade ago.

All three components of the index in both the single- and multifamily categories posted gains in Q1, with present sales, expected sales and prospective buyer traffic climbing, the NAHB revealed.

"Favorable demographics and recent declines in mortgage rates have helped support demand for 55+ housing," said NAHB Chief Economist Robert Dietz. "We expect continued growth in the 55+ housing market, provided builders are able to manage the challenges of regulatory, land acquisition and construction costs." 

Karen Schroeder, chair of NAHB's 55+ Housing Industry Council, said the market is strong, but not without its challenges.

“Overall, demand for homes in 55+ communities remain strong as more buyers and renters in that market search for simpler living arrangements," said Schroeder. "However, there are still headwinds that are impacting the market.”

Schroeder pointed to rising construction costs and a lack of skilled labor as problems for builders, factors that could drive up costs for buyers.

In order for the 55+ plus market to realize its potential, building affordable homes that appeal to this demographic is key.

Some mortgage professionals point out an answer in a little-known financing option that is specifically designed for older homebuyers.

It’s called a Reverse for Purchase or, using the official product name Home Equity Conversion Mortgage, a HECM for Purchase.

It allows an individual 62 or older to purchase a primary residence and obtain a reverse mortgage in a single transaction. With one set of closing costs, they can purchase a new home without incurring a monthly mortgage payment.

The deal requires a significant down payment, often more than half the purchase price and that equity is then used to generate the reverse mortgage.

Michael Banner, a long-time HECM for Purchase advocate and the president and CEO of Professional Mortgage Alliance, said builders that are not promoting this financing option in their marketing are missing out big time.

“You will sell a more expensive house if your client is getting a Reverse for Purchase, there is no doubt about it – statistics prove that,” Banner said. “The clients will buy more extras, and more expensive extras, due to the simple fact that they are not going to have a mortgage payment.”

Banner said builders should get in touch with a local HECM specialist for details on the product and should make sure they’re working with someone knowledgeable.

“Ask, ‘How many Reverse for Purchases have you and your company done?’ They’ve got to ask that question because this is a specialized product. If that answer is not satisfactory, they need to contact a true HECM for Purchase professional. Look on Google, YouTube, or contact the National Reverse Mortgage Lenders Association,” Banner said.

“Bottom line, you will sell more expensive homes, you will most certainly sell the higher options and extras, which, let’s face it, that’s where the builders profit.”




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