Ask the Agent Episode 3 – Shannon Orrand

This week in episode 3 of Ask the Agent, Shannon Orrand answers the question “What price per square foot can you expect to pay to build your own home?” 

If you have anymore questions please give us call at Direct (615) 948-4098, Shannon (615) 753-3251 or the office (629) 202-7333.

Will Your Home’s Value Be Affected By President Trump?

home value trump cover 300x157 - Will Your Home’s Value Be Affected By President Trump?We all heard the threats…

“If Donald Trump is elected President, I’m moving to Canada.” (Or whatever other country…)

Mostly it was celebrities saying that, although you probably heard some joking, offhand remarks from people you actually knew locally.

But you probably had to be a real estate agent to hear people say this…

“Will the value of my house be affected, because of everyone moving out of the country, if Donald Trump is elected?”

Well, he was elected. And as of now, no matter how much research you do, it’s hard to pinpoint how many people actually moved because he was elected. It seems like very few…if any. So, the chances of the value of your house being affected by a mass exodus are very low.

Now that we know Donald Trump was elected, the questions real estate agents hear have become a little more specific.

More along the lines of…

“Do you think the value of my house will go up, because Donald Trump was elected?”

-or-

“Do you think the value of my house will go down, because Donald Trump was elected?”

Here’s the thing…

You’ve probably heard something along these lines before. But, real estate agents don’t have a crystal ball they can gaze at, or a magic 8 ball they can shake, to get answers to those sorts of questions.

It’s almost impossible to predict future real estate values.

But yet you hear people speculating all the time. From economists, to politicians, to TV pundits, and on down to some real estate agents at cocktail parties.

The problem with people doing it is that they seem credible. And you may base your hopes or concerns upon what you are hearing. But most of what you hear is broad and general. It is prediction. Speculation. Entertainment to some degree…

For the most part it is stuff people say in order to make conversation, or to fill the need for content to put on a TV or computer screen.

But the person saying it has no responsibility to you. They don’t know your specific life scenario. And they don’t know your home or real estate market.

Real estate agents (at least good ones) can’t and don’t speculate. We base home values and our advice upon local data…what has recently sold…and the current buyer activity. Not what might happen.

So, at the end of the day…

There’s no way to absolutely answer whether or not Donald Trump becoming President will cause the value of your home to go up or down. And you’re better off ignoring speculation.

If you want to know the value of your home, or whether it makes sense for you to buy another home in the near future, just give your local real estate agent a call.

They will analyze the market as it is, and your specific life situation, in order for you to make a truly informed decision.

Dealing with Financing

As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.Dealing with Financing 300x200 - Dealing with Financing

Get pre-approved. Sub-primes may be history, but you’ll probably still be shown homes you can’t actually afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.

Choose your mortgage carefully. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.

Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like Zillow. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.

5 Tips for Buying a Home

 

Looking to buy a home? Here are five essential tips for making the process as smooth as possible.5 Tips for Buying a Home 1 300x200 - 5 Tips for Buying a Home

Get your finances in order.

Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable lender and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house.

Find a house you can afford.

As with engagement rings, there’s a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc.

Hire a professional.

While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. If possible, recruit an exclusive buyer agent, who will have your interests at heart and can help you with strategies during the bidding process.

Do your homework.

Before making a bid, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at sales trends of similar homes in the area or neighborhood. Look at prices for the last few months. Come up with an asking price that’s competitive, but also realistic. Otherwise, you may end up ticking off your seller.

Think long term.

Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home’s resale value down the line. When it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future.

Downsizing Your Home? Use These Tips to Plan Your Move

kitchen and dining roomMaybe the thought of moving to a smaller, low-maintenance home has only briefly crossed your mind, or maybe you’re seriously considering downsizing. But before you trade your too-large house in for, say, a cozy condo downtown, there are a few things to consider.

Downsizing requires quite a bit of planning: You may need to figure out what to keep and what to discard, choose between the love seat and the sofa for your new living room, and determine which furniture pieces can serve multiple functions.

Here are a few downsizing tips to help you prepare to sell your current home.

Start Reducing Your Possessions Now

The sooner you are able to get rid of furniture, household items, and knickknacks you no longer use or need, the better off you’ll be. When you do decide to sell your home, you will thank yourself for spending a few hours a week decluttering now rather than waiting to do everything all at once.

If You Can, Sell Instead of Discard

Many homeowners choose to downsize to spend less money on a mortgage and more money on fun experiences. If you are able to start decluttering weeks in advance, you will have the time to sell unwanted possessions and save the money for future vacations. Consider hosting a yard sale, posting items for sale online, or having high-end items appraised.

Have a Plan

notepad with wadded paperTo avoid getting overwhelmed by all the work involved in downsizing, form a plan to keep your stress at bay. Consider these planning tips:

  • Make a checklist of possessions you cannot live without in your new home.
  • Create a checklist of wants and needs for your new home.
  • Determine which items you can pack now and which items you need to keep handy.
  • Start packing your nonessential belongings.

Get Started by Working with a Real Estate Expert

One of the biggest mistakes home sellers make, whether or not they’re downsizing, is not hiring a real estate professional to make the most of their investment. An agent’s experience and knowledge will help you sell your home for the most money possible, allowing you to use the proceeds to purchase a smaller home.

Are you thinking about downsizing? Start the process by requesting a market analysis for your property. Contact us to learn more.

The Essentials for Entertaining Big in a Small Home

homeowner setting dining tableWith the holiday season approaching, many homeowners are starting to plan get-togethers with friends or family. While entertaining can be more of a challenge in a smaller home, it’s not impossible to host a memorable dinner party with your loved ones if you’re working with limited space.

Here are a few tips for throwing a large dinner party in a small area.

Before Guests Arrive, Clean and Clear Your Home

You don’t have to put as much effort into cleaning and decluttering as if you were selling a home; the basics will do.

Put away any unnecessary furniture, home décor, and kitchen appliances before the dinner party. Clean and dust the rooms that guests will visit: bathrooms, the kitchen, and the dining area. If you have pets, don’t forget to vacuum upholstery and stash toys or the litter box out of sight.

Get Creative with Guest Seating

You likely don’t keep a dozen matching chairs in storage just for dinner parties. Show off your creativity by relocating chairs, stools, benches, or ottomans currently in your home around the dinner table.

appetizers on raised food standsMaximize Your Table Space

Invest in a tiered platter for dinner parties. Raising the serving plates gives the appearance of more space on your counters and tables and keeps your serving stations from looking cramped.

To further free up space on your dining room table, keep the centerpiece decorations to a minimum. Instead, hang decorations from your walls or ceiling to maximize your space.

Trying to Make the Most of Your Space?

If you’re downsizing but still want to entertain friends and family in your new home, there are many ways to make the most of your space while still enjoying memorable occasions with your loved ones. As real estate experts, we can share downsizing tips and help you find a home that’s just the right size. Contact us to learn more.

Starting to Look for a Home? Know What You WANT vs. What You NEED

Starting to Look for a Home? Know What You WANT vs. What You NEED | Simplifying The Market

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale with rose-colored glasses.

Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave of your dreams be a future renovation project instead of a make or break now?

The first step in your home buying process should be to get pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

  • ‘Must Haves’ – if this property does not have these items, then it shouldn’t even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
  • ‘Should Haves’ – if the property hits all of the must haves and some of the should haves, it stays in contention, but does not need to have all of these features.
  • ‘Absolute Wish List’ – if we find a property in our budget that has all of the ‘must haves,’ most of the ‘should haves,’ and ANY of these, it’s the winner!

Bottom Line

Having this list flushed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before starting to show you houses in your desired area.

The ‘Great News’ About Rising Prices

The ‘Great News’ About Rising Prices | Simplifying The Market

Recently there has been a lot of talk about home prices and if they are accelerating too quickly. In some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers out looking for a home, which has caused prices to rise.

The great news about rising prices, however, is that according to CoreLogic’s latest US Economic Outlook, the average American household gained over $11,000 in equity over the course of the last year, largely due to home value increases.

The map below was created from CoreLogic’s report and shows the average equity gain per mortgaged home from June 2015 to June 2016 (the latest data available).

The ‘Great News’ About Rising Prices | Simplifying The Market

For those that are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new found equity in their homes and themselves, not in depreciating assets.

The added equity is helping families put their children through college, and even invest in starting small businesses, allowing them to pay off their mortgage sooner or move up to the home that will better suit their needs now.

Bottom Line

CoreLogic predicts that home prices will appreciate by another 5% by this time next year. If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options!

What to Expect When Home Inspecting

What to Expect When Home Inspecting | Simplifying The Market

So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. More often than not, your agent may have made your offer contingent on a clean home inspection.

This contingency allows you to renegotiate the price paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. Realtor.com suggests that you consider the following 5 areas when choosing the right home inspector for you:

  1. Qualifications – find out what’s included in your inspection & if the age or location of your home may warrant specific certifications or specialties.
  2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report the better in most cases.
  3. References – do your homework – ask for phone numbers and names of past clients that you can call to ask about their experience.
  4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Often membership in one of these organizations means that there is continued training and education provided.
  5. Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human after all, and it is possible that they might miss something they should have seen.

Ask your inspector if it’s ok for you to tag along during the inspection. That way they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof, crawling around in the attic, and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace & chimney, the foundation and so much more!

Bottom Line

They say ‘ignorance is bliss,’ but not when investing your hard-earned money in a home of your own. Work with a professional you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.

Buying is Now 37.7% Cheaper Than Renting in the US

Buying is Now 37.7% Cheaper Than Renting in the US | Simplifying The Market

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 17.4% less expensive in Honolulu (HI), all the way up to 53.2% less expensive in Miami & West Palm Beach (FL), and 37.7% nationwide!

Other interesting findings in the report include:

  • Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
  • Home prices would have to appreciate by a range of over 23% in Honolulu (HI), up to over 45% in Ventura County (CA), to reach the tipping point of renting being less expensive than buying.
  • Nationally, rates would have to reach 9.1%, a 145% increase over today’s average of 3.7%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to help you find your dream home.