Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners.
1. Move-Up Opportunity
With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic,
“In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.”
This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home.
2. Gain in Seller’s Profit
ATTOM Data Solutions recently released their Q2 2019 Home Sales Report, indicating the seller’s profit jumped at one of the fastest rates since 2015. They said:
“A look at the national numbers showed that U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since the original purchase of $67,500...the average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of the original purchase price.”
Looking at the amount paid when they bought their homes, and then the amount they received after selling, we can see that some homeowners were able to walk away with a significant gain.
3. Out of a Negative Equity Situation
Negative equity occurs when there is a decline in home value, an increase in mortgage debt, or both. Many families experienced these challenges over the last decade. According to the same report from CoreLogic,
“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $485.7 billion since the first quarter 2018, an increase of 5.6%, year over year.
In the first quarter of 2019, the total number of mortgaged residential properties with negative equity decreased…to 2.2 million homes, or 4.1% of all mortgaged properties.”
The good news is, many families have moved beyond a negative equity situation, and no longer owe more on their mortgage than the value of their home.
Bottom Line
If you’re a current homeowner, you may have more equity than you realize. Your equity can open the door to future opportunities, such as moving up to your dream home. Let’s get together to discuss your options and start to put your equity to work for you.
That includes your house. Which is for sale. And thus needs to look bee-yoo-tee-ful.
Staging entails hiring experts with a flair for interior design. They reimagine your living space and give your house a makeover (with temporary decor and furnishings) so that it gets “oohs” and “aahs” from the buying masses.
Great staging isn’t an insurance policy — there’s no guarantee it will bring in more money when you sell your home — but it’s an important marketing tool. It presents your house in a flattering light and helps you compete at a favorable price. (In that sense, staging is like dressing your house for the price you want, and not the price you have.)
Staging also leads to eye-catching listing photos, which are especially valuable given that most home buyers begin their search by scrolling through listings online.
So, are you thinking about hiring stagers for your home? Here’s what to consider.
77% of buyers’ agents said staging makes it easier for their buyer to visualize the property as their future home. It’s like helping the buyer dream it so they can achieve it — and so you and your agent can make the sale.
39% of sellers’ agents said staging a home greatly decreases the amount of time a house is on the market. For you, time saved could mean moving into your new house even sooner.
21% of sellers’ agents said staging a home increases its dollar value between 6% and 10%. Simply put, that may lead to more money in your pocket.
Before You Stage, Budget Accordingly
Many listings agents offer staging services to clients as part of their services. If you want to use someone you find yourself, you typically will have to pay out of pocket.
Staging costs vary depending on where you live and how many rooms you’re staging. On average, home sellers pay between $302 and $1,358 for staging, according to HomeAdvisor.com. If your house is empty because you’ve already moved, you might also have additional expenses for renting furniture and other homey decorations to make it look lived-in.
Many stagers offer consultations for as low as $150, Fixr.com reports. Using the advice you learn during the consultation to try DIY staging may be your best option if you’re on a tight budget. Listen for tips on how to use the furniture and decor you already have to show off your home’s best assets.
Spoiler alert: No buyer wants to walk into a messy house.
So, take time to clean and declutter your home. Organize everyday household items into crates and keep them out of sight. Stow away seasonal decorations (that means no Christmas in July). Make time for — or invest in — a whole-house cleaning, including carpet shampooing. Change lightbulbs, finally make those minor repairs, and add a fresh coat of paint to any room that needs it. Clean out closet spaced- because buyers will want to check out the closets.
Also worth considering? Removing personal items from view, such as copious family photos, artwork, or religious keepsakes. The concern is not that home buyers will be offended by you or your lifestyle. The goal is to neutralize the space and help home buyers imagine themselves living there. (But don’t go overboard. You don’t want rooms to feel sterile, either.)
Yes, we did just tell you to clean out your closets. So where are you supposed to put all this stuff? If you don’t have a discrete place to tuck things away, consider renting a storage unit.
To Find the Right Stager for Your Home, Ask Questions
If your agent doesn’t offer staging services, he or she can likely recommend local stagers for you to work with. Before you hire a stager, it’s best to interview at least three candidates in person. You’ll want to get a sense of how much they charge — and whether they have good taste.
To do your due diligence, here are 10 questions to ask prospective stagers:
On average, how many days were your staged homes on the market last year? Experience is important, but it’s not the only factor to consider when vetting stagers. You want someone who stages homes that sell — ideally within 30 days, because that’s when agents often recommend making a price reduction if your house is still on the market.
What price range do you typically work in? Staging luxury homes is a totally different ball game than staging starter homes. Find someone who specializes in homes near your listing price.
What styles of homes do you usually stage? Staging different types of homes also requires different skill sets (think of a penthouse versus a bungalow, for instance). Look for someone with experience working in homes similar to yours.
What formal training have you received? A number of staging organizations, such as the Real Estate Staging Association (RESA) and the International Association of Home Staging Professionals (IAHSP), offer certification or accreditation. Training from these associations can distinguish professional stagers from beginners.
Do you have insurance? Your home could get damaged when the stager moves furniture in and out. Find someone with business insurance so that you’re protected.
Can I see your portfolio? One of the best ways to judge a stager’s skills is to look at their work. Ask to see photos from the person’s three most recently staged homes.
Do you select the accessories, furniture, and paint for the homes you stage, or do you collaborate with other experts? Some stagers work independently, while others collaborate with other vendors. Make sure you know everyone who will be involved in staging your home, so you don’t have surprise guests rearranging your living room.
What are your rates? Some stagers charge a fee for decorating services, plus a monthly fee for renting furniture, while others charge a flat fee per room for the duration of the listing. Ask about how a stager determines costs before you commit to working with him or her.
What’s your availability? If you’re on a tight timetable, make sure the stager can get your house ready by the date you want to put your house on the market.
Can you provide contacts for past clients? Get in touch with two or three people who have worked with the stager before. Ask how the stager’s services helped with the sale of their homes, and what they might have done differently.
Focus On the Rooms That Count the Most
You don’t have to stage your whole house to make buyers swoon.
Staging the rooms where people tend to spend the most time usually makes the biggest impression on buyers. Start with thefollowed by the master bedroom and the kitchen.
Keep in mind that you’re not going for an HGTV-worthy overhaul: Even small touches, like putting fluffy towels in the bathroom or replacing shabby throw pillows in the family room, can make your home that much more attractive.
Oh, and BTW: Stage Your Yard, Too
Your house has to look its best — inside and outside. After all, buyers form their first impression when they pull up in front of your home. It’s no surprise, then, that curb appeal — how your home looks from the exterior — can increase your home’s sales value up to 17%, a Texas Tech University study found.
If you’ve never had your yard professionally landscaped, now may be the time to do it. Landscaped homes have a sales price advantage ranging from 5.5% to 12.7%, according to research by Alex Niemiera, a horticulturist at Virginia Tech. That would mean an extra $16,500 to $38,100 in value on a $300,000 home.
Professional landscaping, however, can cost a lot. You’re aiming for polish, not a new garden of Versailles. If budget is a concern, start with these DIY improvements:
Plant blooming flowers and fresh greenery. Even if it's winter, you can add colorful winter blooms and seasonal touches such as garland or lights.
Mow the grass.
Reseed bare patches of lawn and add fresh sod, as needed.
Then move on to these easy upgrades to your home’s exterior:
Wash the front windows.
Power wash siding and walkways.
Repaint or stain porches and stairs, as needed.
Make sure house numbers are easy to see, visible, and pretty.
Make sure important outdoor features such as the front door, porch, and sidewalks and paths are well lit. (If not, install new fixtures or lighting.)
Even basic upgrades — like laying fresh mulch, changing porch lights, or installing a new mailbox — can help a buyer fall in love at first sight.
Just wait ’til they come inside and see what else you’ve done with the place.
In every area of the country, homes that are priced at the top 25% of the price range for that area are considered to be Premium Homes. In today’s real estate market there are deals to be had at the higher end! This is great news for homeowners who want to upgrade from their current house and move-up to a premium home.
Much of the demand for housing over the past couple years has come from first-time buyers looking for their starter home, which means that many of the more expensive homes that have been listed for sale have not seen as much interest.
This mismatch in demand and inventory has created a Buyer’s Market in the luxury and premium home markets according to the ILHM’s latest Luxury Report. For the purpose of the report, a luxury home is defined as one that costs $1 million or more.
“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”
The authors of the report were quick to point out that the current conditions at the higher end of the market are no cause for concern,
“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”
Luxury can mean different things to different people. It could mean a secluded home with a ton of property for privacy to one person, or a penthouse in the center of it all for someone else. Knowing what characteristics you are looking for in a premium home and what luxury means to you will help your agent find your dream home.
Bottom Line
If you are debating upgrading your current house to a premium or luxury home, now is the time!
3 Graphs that Show What You Need to Know About Today’s Real Estate Market
The Housing Market has been a hot-topic in the news lately. Depending on which media outlet you watch, it can start to be a bit confusing to understand what’s really going on with interest rates and home prices!
The best way to show what’s really going on in today’s real estate market is to go straight to the data! We put together the following three graphs along with a quote from Chief Economists that have their finger on the pulse of what each graph illustrates.
Interest Rates:
“The real estate market is thawing in response to the sustained decline in mortgage rates and rebound in consumer confidence – two of the most important drivers of home sales. Rising sales demand coupled with more inventory than previous spring seasons suggests that the housing market is in the early stages of regaining momentum.” - Sam Khater, Chief Economist at Freddie Mac
Income:
"A powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound." - Lawrence Yun, Chief Economist at NAR
Home Prices:
“Price growth has been too strong for several years, fueled in part by abnormally low interest rates. A mild deceleration in home sales and Home PriceIndex growth is actually healthy, because it will calm excessive price growth — which has pushed many markets, particularly in the West, into overvalued territory.” – Ralph DeFranco, Global Chief Economist at Arch Capital Services Inc.
Bottom Line
These three graphs indicate good news for the spring housing market! Interest rates are low, income is rising, and home prices have experienced mild deceleration over the last 9 months. If you are considering buying a home or selling your house, let’s get together to chat about our market!
Whether you plan on selling your home this spring or not, conducting this maintenance will help ensure your home functions well for the rest of the year.
Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!
Expecting a June 2019 completion time frame, at 5-acres, The Lagoon will be adding to Windsong Ranch's amazing amenities which include, a cafe, two pools, mountain bike trails, community garden, basketball courts, tennis courts, and approximately 30 miles of trails!
The Lagoon will boast an activity beach, sand volleyball, picnic areas with grills, a floating dock, lounge chairs & separate adult and family beach areas. The Lagoon will offer residents the resort like opportunities for swimming, kayaking, paddle boarding, & more.
To learn more about this amazing community, please feel free to give us a call!
"Inspired by US Navy SEALs (Frogmen), the Navy SEAL Foundation’s Joggin’ for Frogmen Race Series brings communities and families together to jog in honor of the Naval Special Warfare community and their families."
As a veteran of the US Army, I have seen first hand the overwhelming burden the past two decades have placed on our veteran community, & in particular members of Special Operations Forces. Events such as Joggin' for the Frogmen offer critical support to families & survivors; & brings awareness to the heavy toll our recent wars have created in the SOF Community.
Regardless of your skill or fitness level, from Tadpoles to Triatheletes, we hope you will show your support & makes this event a success!
Solve all your projects in one place in one weekend at the Greater Frisco Home & Garden Show! You’ll find the latest products and services for your home and landscape: builders, re-modelers, contractors, building materials, decks, pools, spas, entertainment systems, storage solutions, all kinds of plants, landscape displays, kitchenware, home accessories and so much more!
Our very own Christie Cannon offers a sneak peak below!
Dallas-Fort Worth is again near the top of a shopping list for commercial property investors — behind only Los Angeles in a new survey. For the third year in a row, commercial real estate firm CBRE ranked D-FW second nationally in its survey of property investors. Houston also made the top 10.
Investors said industrial and warehouse buildings and apartments were their most targeted properties for 2019.
"We are seeing unprecedented investor interest for industrial and logistics properties in Dallas-Fort Worth coming not only from U.S. investors but also global capital from Asia, primarily Singapore, Europe, and the Middle East," Randy Baird, CBRE executive vice president of Industrial & Logistics, said in the report. "D-FW is capturing the interest of all forms of capital because we are at a central point in the U.S. supply chain, we have a pro-business environment with a low cost of doing business, and we have nation-leading population growth.
"Investors are attracted not only by the current market fundamentals, which are stronger than ever but by the long-term view that D-FW and Texas as a whole will continue to outpace the country in population and job growth, translating to long-term asset appreciation. "Only 1 in 10 of the investors CBRE polled said they planned to acquire office buildings this year. And only 9 percent said they were shopping for retail properties. While 98 percent of the real estate industry execs CBRE surveyed said they planned to make property acquisitions this year, more investors indicated they would be more cautious in their buys."Pricing is at or near the previous peak for most asset types in prime locations, so investors are seeking yield in secondary markets and alternative asset types," said Chris Ludeman, Global President of Capital Markets for CBRE. CBRE surveyed investors in November and December for the annual report.
After Los Angeles and D-FW, the real estate markets that investors are most hot on are Washington, D.C., San Francisco, Seattle, Denver and Atlanta. When asked to list their top concerns for the real estate market this year, investors most often mentioned a global economic shock, rising interest rates and a property price bubble. CBRE's annual investor poll is just the latest industry snapshot in which D-FW won high marks. Last fall, the Urban Land Institute and PriceWaterhouse Coopers identified D-FW as the top market for 2019 real estate investment and development activity.
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