In a recent survey by realtor.com, people thinking about selling their homes indicated they’re generally willing to allow their agent and some potential buyers inside if done under the right conditions. They’re less comfortable, however, hosting an open house. This is understandable, given the health concerns associated with social contact these days. The question is, if you need to sell your house now, what virtual practices should you use to make sure you, your family, and potential buyers stay safe in the process?
In today’s rapidly changing market, it’s more important than ever to make sure you have a digital game plan and an effective online marketing strategy when selling your house. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd, truly giving buyers a detailed and thorough view of your home.
So, if you’re ready to move forward, virtual practices may help you win big when you’re ready to sell. While abiding by state and local regulations is a top priority, a real estate agent can help make your sale happen. Agents know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:
Virtual tour of the home
Accurate and detailed listing information
Detailed neighborhood information
High-quality listing photos
Agent-led video chat
After leveraging technology, if you have serious buyers who still want to see your house in person, keep in mind that according to the National Association of Realtors (NAR), there are ways to proceed safely. Here are a few of the guidelines, understanding that the top priority should always be to obey state and local restrictions first:
Limit in-person activity
Require guests to wash their hands or use an alcohol-based sanitizer
Remove shoes or cover with booties
Follow CDC guidance on social distancing and wearing face coverings
Getting comfortable with your agent – a true trusted advisor – taking these steps under the new safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.
Nate Johnson, CMO at realtor.com ® notes:
"As real estate agents and consumers seek out ways to safely complete these transactions, we believe that technology will become an even more imperative part of how we search for, buy and sell homes moving forward."
It sounds like some of these new practices might be here to stay.
Bottom Line
In a new era of life, things are shifting quickly, and virtual strategies for sellers may be a great option. Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to making your next move.
The Pain of Unemployment: It Will Be Deep, But Not for Long
There are two crises in this country right now: a health crisis that has forced everyone into their homes and a financial crisis caused by our inability to move around as we normally would. Over 20 million people in the U.S. became instantly unemployed when it was determined that the only way to defeat this horrific virus was to shut down businesses across the nation. One second a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood.
The financial pain so many families are facing right now is deep.
How deep will the pain cut?
Major institutions are forecasting unemployment rates last seen during the Great Depression. Here are a few projections:
Goldman Sachs - 15%
Merrill Lynch - 10.6%
JP Morgan - 8.5%
Wells Fargo - 7.3%
How long will the pain last?
As horrific as those numbers are, there is some good news. The pain will be deep, but it won’t last as long as it did after previous crises. Taking the direst projection from Goldman Sachs, we can see that 15% unemployment quickly drops to 6-8% as we head into next year, continues to drop, and then returns to about 4% in 2023.
When we compare that to the length of time it took to get back to work during both the Great Recession (9 years long) and the Great Depression (12 years long), we can see how the current timetable is much more favorable.
Bottom Line
It’s devastating to think about how the financial heartache families are going through right now is adding to the uncertainty surrounding their health as well. Hopefully, we will soon have the virus contained and then we will, slowly and safely, return to work.
How Technology is Helping Buyers Navigate the Home Search Process
Some Highlights:
A recent realtor.com survey revealed that buyers are still considering moving forward with the homebuying process, even if they can’t see the home in-person.
While they still prefer to physically see a home, virtual home tours and accurate listing information top the list of tech specs buyers find most helpful in today’s process.
Let’s connect today to determine how technology can help power your home search.
With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not in one already. What does that mean to the residential real estate market?
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan, and Morgan Stanley are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.
Does that mean we’re headed for another housing crash?
Many fear a recession will mean a repeat of the housing crash that occurred during the Great Recession of 2006-2008. The past, however, shows us that most recessions do not adversely impact home values. Doug Brien, CEO of Mynd Property Management,explains:
“With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.”
CoreLogic, in a second study of the last five recessions, found the same. Here’s a graph of their findings:
What are the experts saying this time?
This is what three economic leaders are saying about the housing connection to this recession:
“The housing sector enters this recession underbuilt rather than overbuilt…That means as the economy rebounds - which it will at some stage - housing is set to help lead the way out.”
“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”
John Burns, founder of John Burns Consulting, also revealed that his firm’s research concluded that recessions caused by a pandemic usually do not significantly impact home values:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”
Bottom Line
If we’re not in a recession yet, we’re about to be in one. This time, however, housing will be the sector that leads the economic recovery.
With interest rates hitting all-time lows over the past few weeks, many homeowners are opting to refinance. To decide if refinancing your home is the best option for you and your family, start by asking yourself these questions:
Why do you want to refinance?
There are many reasons to refinance, but here are three of the most common ones:
1. Lower Your Interest Rate and Payment: This is the most popular reason. Is your current interest rate higher than what’s available today? If so, it might be worth seeing if you can take advantage of the current lower rates.
2. Shorten the Term of Your Loan: If you have a 30-year loan, it may be advantageous to change it to a 15 or 20-year loan to pay off your mortgage sooner rather than later.
3. Cash-Out Refinance: You might have enough equity to cash out and invest in something else, like your children’s education, a business venture, an investment property, or simply to increase your cash reserve.
Once you know why you might want to refinance, ask yourself the next question:
How much is it going to cost?
There are fees and closing costs involved in refinancing, and The Lenders Networkexplains:
“As an example, let’s say your mortgage has a balance of $200,000. If you were to refinance that loan into a new loan, total closing costs would run between 2%-4% of the loan amount. You can expect to pay between $4,000 to $8,000 to refinance this loan.”
They also explain that there are options for no-cost refinance loans, but be on the lookout:
“A no-cost refinance loan is when the lender pays the closing costs for the borrower. However, you should be aware that the lender makes up this money from other aspects of the mortgage. Usually charging a slightly higher interest rate so they can make the money back.”
Keep in mind that, given the current market conditions and how favorable they are for refinancing, it can take a little longer to execute the process today. This is because many other homeowners are going this route as well. As Todd Teta, Chief Officer at ATTOM Data Solutions notes about recent mortgage activity:
“Refinancing largely drove the trend, with more than twice as many homeowners trading in higher-interest mortgages for cheaper ones than in the same period of 2018.”
Clearly, refinancing has been on the rise lately. If you’re comfortable with the up-front cost and a potential waiting period due to the high volume of requests, then ask yourself one more question:
Is it worth it?
To answer this one, do the math. Will it help you save money? How much longer do you need to own your home to break even? Will your current home meet your needs down the road? If you plan to stay for a few years, then maybe refinancing is your best move.
If, however, your current home doesn’t fulfill your needs for the next few years, you might want to consider using your equity for a down payment on a new home instead. You’ll still get a lower interest rate than the one you have on your current house, and with the equity you’ve already built, you can finally purchase the home you’ve been waiting for.
Bottom Line
Today, more than ever, it’s important to start working with a trusted real estate advisor. Whether you connect by phone or video chat, a real estate professional can help you understand how to safely navigate the housing market so that you can prioritize the health of your family without having to bring your plans to a standstill. Whether you’re looking to refinance, buy, or sell, a trusted advisor knows the best protocol as well as the optimal resources and lenders to help you through the process in this fast-paced world that’s changing every day.
Impact of the Coronavirus on the U.S. Housing Market
The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.
With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?
“At the very least, the coronavirus could cause some people to put home sales on hold."
While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.
For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.
Bottom Line
The full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world.
How Pricing Your Home Right Makes a Big Difference
Even though there’s a big buyer demand for homes in today’s low inventory market, it doesn’t mean you should price your home as high as the sky when you’re ready to sell. Here’s why making sure you price it right is key to driving the best price for the sale.
If you’ve ever watched the show “The Price Is Right,” you know the only way to win the game is to be the one to correctly guess the price of the item up for bid without going over. That means your guess must be just slightly under the retail price.
When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way. This strategy actually increases the number of buyers who will see your home in their search process. Why? When potential buyers look at your listing and see a great price for a fantastic home, they’re probably going to want to take a closer look. This means more buyers are going to be excited about your house and more apt to make an offer.
When this happens, you’re more likely to set up a scenario with multiple offers, potential bidding wars, and the ability to drive a higher final sale price. At the end of the day, even when inventory is tight, pricing it right – or pricing it to sell immediately – makes a big difference.
Here’s the other thing: homeowners who make the mistake of overpricing their homes will eventually have to lower the prices anyway after they sit on the market for an extended period of time. This leaves buyers wondering if the price drops were caused by something wrong with these homes when in reality, nothing was wrong, the initial prices were just too high.
Bottom Line
If you’re thinking about selling your home this year, let’s get together so you have a professional on your side to help you properly price your home and maximize demand from the start.
Construction continues for a fountain courtyard that will feature a light show with surround sound at the Grandscape in The Colony.(Vernon Bryant / Staff Photographer)
That’s what Jeff Lind, president of Grandscape, a $1.5 billion development along State Highway 121 in The Colony, is hoping.
Other multibillion-dollar developments — one after another, shiny and bright from Legacy West in Plano to The Star in Frisco — entice residents to come out and meet friends and family in new entertainment and shopping environments.
At the same time, the malls in the neighborhood — Stonebriar Centre in Frisco and the Shops at Willow Bend in Plano — have spent hundreds of millions of dollars to add a wing of restaurants, multiple kid venues, a luxury gym and a high-rise hotel.
Now there’s one more new destination for eating, drinking, playing and shopping coming to the growing neighborhoods fanning east and west of the Dallas North Tollway.
“We’re trying to be very different," said Lind, who is leading Grandscape, a project next to Nebraska Furniture Mart that’s part of Warren Buffett’s expansive Berkshire Hathaway. "We wanted to create a space that’s different from other lifestyle centers in the area and to give people reasons to keep coming back.”
Grandscape, which will start to open in March and April, is not like any development in the Dallas area. Almost all the restaurants and stores, big and small, are new to the market.
“I really think this is going to be the first destination up north that will get people from down in Dallas to visit,” said Dan Bradley, who owns T-shirt and gift shop Bullzerk. He’s an exception at Grandscape as a familiar retailer, with six stores in Dallas-Fort Worth.
The D-FW retail real estate market is still considered overbuilt, but there’s been less new construction in recent years, and occupancy rates have been rising.
Grandscape is being built for “future growth in the region,” Lind said.
Instead of turning leasing over to another company, Lind and marketing director Katie Wedekind, both Nebraska Furniture Mart veterans, became the leasing agents. Lind alone clocked 288,000 air miles last year traveling the world to discover new tenants and ways to make Grandscape unique.
Here’s what they came up with.
Multiple levels, 433 acres
Grandscape, which has been in the works since Nebraska Furniture Mart opened in 2015, will operate on multiple levels with lush landscaping, water venues, digital features and lots of places to sit in a pedestrian-friendly layout.
Scheels is a sporting goods and entertainment venue at Grandscape.(Vernon Bryant / Staff Photographer)
The Grandscape shopping center, just east of NFM, is on 125 more acres, including a 7-acre man-made lake with restaurants bordering it.
It’s anchored by three additional big-box tenants that are not as big as NFM but almost:
Andretti’s Indoor Karting & Games is 110,300 square feet and has three indoor tracks, bowling lanes, an arcade, restaurants and bars on two levels.
Scheels, at 331,000 square feet, is a supersized sporting goods store with a 65-foot Ferris wheel inside with 16 cars on it.
The 85,000-square-foot Galaxy Theatres 15-screen venue that will open this spring is like only one other that Sony has built, in Las Vegas.
While the giant NFM furniture store, at 560,000 square feet, is hard to miss, Grandscape has been designed to disguise its big boxes and “foster more interesting walks across the shopping center,” Lind said.
To prevent boring long stretches across the front of Andretti’s, Scheels and the Galaxy theater, smaller spaces were built on either side of their entrances for shops and restaurants.
“No one wants to walk across the front of a 300-foot building,” Lind said.
The Homestead area of Grandscape features small buildings with local tenants. (Vernon Bryant / Staff Photographer)
‘Something for everybody’
The development has six courtyards.
One of them, the Homestead, is a new idea for shopping centers. It’s a rustic collection of small buildings nestled, not lined up, next to an outdoor wine bar with a large fireplace. The dozen businesses occupy spaces as small as 250 square feet.
On paper, the development “looks kind of crazy,” Bullzerk’s Bradley said, “but when you see it, you understand that people can come and really be here all day."
“There’s something for everybody, and it’s not luxury,” which he said Dallas has plenty of. His Bullzerk store will have a $250,000 bus inside that customers can climb into for social media shots and videos.
Construction continues at Grandscape in The Colony. Nebraska Furniture Mart can be seen in the distance. (Vernon Bryant / Staff Photographer)
Other small-business Homestead tenants include Odin Leather Goods, Tyler Kingston Mercantile, Julie’s Sweets and Gnome Cones.
The Lawn section also will be finished this spring. It’s in front of a $4.5 million, 55-foot stage with dressing rooms and three LED digital boards that can be part of an audio/digital experience.
Some parts of the project will still be under construction when it begins to open.
The Grotto will have a courtyard, restaurants and entertainment venues, a water feature and a living wall. (Vernon Bryant / Staff Photographer)
The Grotto section, Lind said, will open later this year. It’s inspired by Covent Garden in London and has a tunnel that leads to a lake with restaurants.
When it’s finished, Grandscape will have a couple of dozen restaurants, including Windmills, a restaurant from India with a library-inspired interior design, and Davio’s Northern Italian Steakhouse.
Jeff Lind of Grandscape in The Colony on Wednesday, January 8, 2020. (Vernon Bryant/The Dallas Morning News)(Vernon Bryant / Staff Photographer)
Katie Wedekind of Grandscape in The Colony on Wednesday, January 8, 2020. (Vernon Bryant/The Dallas Morning News)(Vernon Bryant / Staff Photographer)
A 12-story apartment building is under construction and will open next year with 345 luxury units with lots of amenities, including dog parks and meeting rooms.
What Lind calls a fashion section is coming later, with retail shops that will connect NFM with Grandscape.
When it’s finished, the walk from NFM to sporting goods superstore Scheels will be almost the length of six football fields, and the space is designed for stops along the way.
Lind and Wedekind said they kept three ideas always in focus: the environment, technology and a nontraditional merchandise mix.
“We’re not developers," Lind said. “We’re retailers."
Here are the firms that are working on the Grandscape project:
Master plan and design architect: Mark Tweed, HTH Architects (Los Angeles)
Architect of Record: Merriman Anderson Architects (Dallas)
Civil Engineer: Olsson Associates
Construction: VCC, which has moved its Dallas office to Grandscape
Landscape Design: Ochsner Hare & Hare, The Olsson Studio
Technology features designed and built by The Barnycz Group of Baltimore
“The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials.
Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).”
If these aspiring homeowners purchase at an early age, the Urban Institute study shows the impact it can have.
Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s had close to $50,000 left, but traditionally purchased more expensive homes.Although the vast majority of Gen Zers want to own a home and are somewhat confident in their future, “In terms of financial awareness, 65% of Gen Z respondents report that they are not confident in their knowledge of the mortgage process.”
Bottom Line
As the numbers show, you’re not alone. If you want to buy this year but you’re not sure where to start the process, let’s get together to help you understand the best steps to take from here.
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