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Buying in Today’s Market
Buying a Home in 2021
Real estate is one of the best decisions you can make for your financial future, especially when you factor in the unknowns with renting. Without question, you’ll be sure to find that the financial benefit, both in tax deductions and long-term equity will far outweigh those of renting. Emotionally speaking, renting can leave you vulnerable to the whims of a landlord. Even in times like today, when homes are selling for record prices, the reward of owning and gaining equity is far better than putting that money into someone else’s investment pocket. High demand from qualified buyers and low interest rates, mean we are poised for continued growth and stability. Which is why the threat of a bubble or anything resembling the financial crisis of 2008 is not likely. If you read my article on “Thinkin About Selling your House” you know that the reason for the higher sales prices is because of a massive increase in demand. Due in large part to COVID-19 and the shift to more remote or hybrid working models. In addition, Millennial’s currently make up the largest population in the US. With growing families, requiring more space. Even buyers that gained small fortunes through cryptocurrencies such as Bitcoin are looking to diversify and put their money back into traditional assets such as a home. With the gift of hindsight, better lending practices for the last decade+ and the freedom to live further from the office, ,buyers have an incredible opportunity to make owning a home a reality.
Crisis Averted
Addressing the housing crisis of 2008 is important, not to drum up the ugly past, but to know why now is different. There is a lot to be gleaned from an experience like that and more importantly actions to be take. Measures have been put in place to ensure history does not repeat itself. With that said, for those of you that are still weary of the what the housing market has to offer, I find it important to snorkel some details of 2008 before we touch on today’s market. Let’s rewind the clock to 2008 – to a simpler time when Flo-Rida was getting people “Low” on the dance floor at weddings and the NY Giants won the super bowl. A world where side swooped bangs were all the rage and the financial world was just giving out money. In the simplest terms, bad loans we given to people that could not afford them. Loose lending practices such as “liar” or “ninja” loans were being approved without verification of assets or income. Crazy, right?! The loans were set as ARM’s (adjustable-rate mortgage) and set to start adjusting all around the same time. This lead to widespread defaults. This to say, since then things got better, MUCH better. Through tightened lending practices, income, employment and assets verifications now serve as a bare minimum in qualifying for a loan. Ensuring you don’t get yourself into a loan that you can’t afford. Additionally, interest rates were lowered and continue to hover around record lows to encourage buying and investing. Making your money go further and monthly payments more affordable. Even for a higher priced, high demand homes. We have learned a great deal since then, so, let’s take the bear market by the ears and run with it!
Getting to the Heart of the Acceptance
It’s no secret the game to offer and acceptance has changed or at least gotten more competitive. The practicalities of a closed transaction rely on a lot of financial factors, but it’s important to keep in mind the feelings and emotion that also gets wrapped up in all of it. Have you stopped to wonder why some offers win? Moreover, why some brokers might have higher odds at helping their client get accepted? I think you’ll find luck has less to do with it than you think. Many times, it comes down to down to the negotiation process and the nuance of it. Having a broker, you trust to have you back and best interests is the first step. You also want someone on your side that will dig deep and find the motivation of the seller and the sellers agent. Is it the easiest deal? Is it a the lifelong home of a seller wants it filled with a new family to grow up in? Is it flexibility and the ability to do a rent back? I go into negotiation with agents on behalf of my clients with two things in mind; is it fair and is it reasonable? My job is to position you in the best light and that often comes down to communication. I’ve had the opportunity to learn from some of the best and combine my real-life experience with my psychology background to do just that. That kind of leverage is powerful. I am here for you and you can rest easy knowing I will do what needs to be done. Those that win the offer game are the ones who are not afraid to communicate the needs of their clients and aren’t afraid to get down to brass tacks for them. In some cases, you might even find out something new about your likes or needs.
If you’re contemplating buying a home and you can, you should! Take advantage of the low interest rates, responsible lenders and brokers that will go to bat for you. Set the fears of the past aside as teaching moments and remember to be realistic. It also never hurts to put the good energy out into the universe, visualize and manifest what buying a home looks like for you. I can’t wait to help you find the perfect home for you!
Ferrah Seifert
253.970.7579
Ferrah@windermere.com
@FerrahChino
Selling Your Home? Here Are the Top 5 Home Updates You Can Make for the Best ROI
According to this article via NerdWallet, 70% of American homeowners believe that their house is their biggest asset. And as you might expect, taking the time to keep up with repairs and make smart improvements to your home are proven ways to increase your home’s value.
When you’re determining where to spend your time, energy, and money on home updates, many homeowners will want to focus on areas that will bring them the highest return on investment (ROI) in the long run.
Here are the top 5 areas to focus on for the best ROI:
haminteriors.com
- The Kitchen: According to Remodeling magazine’s “2018 Cost vs. Value Report,”“A minor kitchen remodel recoups 81% of its cost in added value on average, versus 53% for an upscale kitchen remodel with stone countertops, custom cabinets and commercial-grade appliances.”At the same time, according to this article on ConsumerReports.com, a survey of millennials revealed that having a modern kitchen that’s been updated is an ideal home feature for more than a third of respondents. Luckily, a few savvy kitchen updates can go a long way—stainless steel appliances, a fresh coat of paint, new flooring, on-trend counters, and even new cabinetry hardware can give a major facelift to an aging kitchen. The article shares that sellers can expect a 3-7% bump in sale price after making these updates, which can end up being well worth the initial investment.
- Bathrooms: Bathroom remodels also offer a solid ROI. This page on HomeGuide.com offers an in-depth look at not only what you can expect to pay for a bathroom remodel (depending on how much you plan to do). The article shares that bathroom remodels can offer an average ROI of 70%, but of course this will differ depending on the renovation choices you make.When you’re considering how to remodel different aspects of your bathrooms, the shower and toilet are of the utmost importance. According to this article on ConsumerReports.com, people over 50 years old generally don’t want to have to step over a tub to take a shower, so curbless showers are a great idea. Not only are curb-less showers easier to get into and wheelchair accessible, but their design is elegant and streamlined as well.If you’re choosing a new toilet, consider picking a taller toilet that makes getting on and off easier. The Glacier Bay N2428E(sold at Home Depot for $99) is one example of a great choice—this toilet is ADA compliant and the seat is 2-4 inches taller than standard toilets.
- Paint: Whether you’re giving your kitchen or bathroom an update, paint is another factor that can give any space in your home an instant update for minimal cost. If you’re giving your home a facelift as you get ready to sell, you don’t necessarily need to repaint every square inch of your home—instead, focus on areas that get used the most, or where you can get the most bang for your buck!
Sherwin Williams Paint’s 2020 Color Forecast Palette
- Curb Appeal: You only have one opportunity to make a strong first impression, so ensuring that your home features top-notch curb appeal is essential. While you don’t have to go over the top with landscaping, your yard should be well-maintained, and you might spruce it up by painting your front door or planting some flowers. Trimming overgrown shrubs, pressure washing the sidewalk, and making minor repairs to your home’s façade can also offer big results.
- The Basics: Home buyers expect a home’s basic systems to be taken care of, so you’ll want to make sure that things like electrical, plumbing, the roof, etc. are in tiptop shape.Here are a few questions to ask yourself:
- How is the condition of your furnace, water heater, roof, electrical, plumbing, and other basic systems?Making sure that you take care of the basics and possibly upgrade systems when necessary can help alleviate worries of potential buyers.
- Are your home’s systems energy efficient?Many buyers are becoming more and more mindful of the impact that their home may have on the environment, and buyers may also be interested in energy efficient systems to save money. You might also consider getting a new water heater, installing double-paned windows, enhanced attic insulation, installing energy efficient appliances, and LED lighting as ways to capture the attention of savvy buyers.
- What condition are your floors in?Is your carpet stained? Do your hardwood floors need refinishing? New flooring can be an instant way to give your home that “like new” feel.
- Can you finish any spaces (like a basement) to add more square footage to your home?If you’ve been putting off finishing any part of your home, now might be the time to transform those spaces into usable square footage!
Every situation is a bit different, and having a second opinion from an expert in your local housing market can translate to bigger profits for you down the line. Do you have any questions about how to get the best ROI on your home remodel?REALTOR® Ferrah Seifertwould love to help—you can get in touch with her at (253) 970-7579 and send her a message here.
