Savvy Lane has bridged the gap between for sale by owner and traditional brokerages. We realize real estate is not a one size fits all traditional commission. Our do-it-yourself platform enables our customers to buy and sell real estate for a fixed fee. Join the thousands that have save millions by using our services.
Thursday, April 28, 2016
Wednesday, April 27, 2016
7 Day a Week Customer Suport
Spring Landscaping Checklist
Ah – finally! After a long, dark winter, spring’s bright sun and warmer weather lends a sigh of relief. With the nicer weather just around the corner, it’s the perfect time to declutter and spruce up the inside and outside of your home. From assessing your home for winter weather damage, to decluttering your office of old paperwork, there are a lot of tasks on homeowners’ to-do lists.
Tuesday, April 26, 2016
Comparative Market Analysis: A Do-It-Yourself Guide
As a prospective home seller (or home buyer), you’ve probably heard of comparative market analysis. This tool has long been used by realtors and homeowners to gauge the value of their properties. This tutorial will teach you how to carry out a competitive market analysis of your home.
For more detailed lessons on real estate analysis, check out this course on the fundamentals of real estate valuation.
What is Comparative Market Analysis?
A comparative market analysis – simply called ‘CMA’ in industry parlance – is an analysis of active and recently sold homes similar to yours within a region. This is a very subjective analysis that can range from a couple of pages to a 50-page guide detailing each and every aspect of a home. Keep in mind that a CMA is not an appraisal. The value assigned to a home in a CMA is purely subjective and based on what a realtor believes he can sell a home for. It doesn’t have any legal or financial value. Full Article
CMAs have long been used by realtors as a marketing tool to win listings. If your home has been on the market for a while, you may have already received letters and pamphlets from real estate agents offering a free CMA report to gauge the prospective value of your home. Depending on the realtor, these reports may be extraordinarily detailed or be just a couple of pages of comparable home sales within the region. The objective remains the same: to compare your home to recently sold and active listings in the surrounding area and give you a better idea of your home value.
How to Conduct a Comparative Market Analysis
As mentioned before, a CMA is a very subjective exercise. You (or your realtor) may look at ten or ten dozen sales. Your analysis may be limited to homes with the same block, or may expand to a couple of miles. The CMA might be entirely objective with a focus on square footage, number of bedrooms/bathrooms, key amenities, etc., or it may include subjective features as well such as design, construction, and style into account.
Which is to say: there are no hard and fast rules to conducting a CMA.
Having said that, any effective CMA should analyze the following things:
Home Analysis
The first step in conducting a CMA is to analyze your home. Ideally, this should include both objective and subjective elements, such as:
Square footage
Number of bedrooms and bathrooms
Land area
Number of floors
Construction age A comprehensive list of amenities and features such as swimming pool, fireplace, etc.
Location, including proximity to major roads, marketplaces, schools, etc.
Subjective features such as views, design, style, etc.
Recent improvements, if any.
Investing in real estate? Master the basics of real estate investment analysis in this course.
Listing Analysis
A CMA will always consider recently sold homes. It may also consider active, pending and withdrawn listings for an even better idea of prospective value.
1. Recently sold homes: Homes within the same region and with similar size, construction, amenities and location will often sell within the same price range. A long, hard look at recently sold listings will often tell you everything you need to know about your home’s prospective value. In fact, professional appraisers also use these listings to assign a value to a home. Most realtors consider sold listings from the past six months. Depending on the circumstances, they may expand their analysis to a year if there are very few comparable sales, or reduce it to the last few weeks in busy real estate markets. Realtors usually call similar recently sold homes comparables.
2. Active listings: This includes homes currently on the market. Understand that a home still waiting for a buyer represents prospective, not real value. Some sellers have high expectations and list their homes for far higher than their actual value. Others may reduce prices in hope for a quick sale. Market conditions also affect values of unsold homes. A sellers’ market tends to inflate values, while a buyer’s market tends to deflate values. Therefore, always consider active listings as an adjunct to recently sold home values.
3. Pending listings: This includes recently finalized deals that haven’t fully closed yet. You most likely won’t have access to actual selling price of these listings, but it does give you a general idea of the state of the market at the moment, at least in terms of the number of days a property spends on the market (called ‘DOM’ in realtor parlance).
4. Expired listings: These are listings that expired because they couldn’t find any buyers. Listings mostly expire when prices are too high. If homes similar to yours find their way into the expired listings, it might be an indication that you may have to price your home a bit more aggressively.
Getting Data on Home Pricing Trends
Getting access to MLS data is difficult for the average homeowner. This limits your ability to gather data on recently sold and active listings. However, thanks to the internet and FHFA, you can still learn a lot about home sales within your region.
Here are a few sources of data on home pricing trends:
1. Federal Housing Finance Agency: The FHFA website is an incredible source of data on recently concluded sales within a region. This includes all home mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration.
2. FNC Residential Price Index: FNC is an organization that specializes in conducting home appraisals. Over the years, it has conducted millions of home appraisals across multiple metro areas. It offers a Residential Price Index for over 20 metropolitan areas. Use it to understand pricing trends if you reside in any of the covered cities.
3. Real Estate Websites: Zillow.com, Redfin.com, Trulia.com, etc. are great for checking prices of recently sold and active listings. Although not entirely accurate, these tools can give you a fair idea of home prices within your region.
Buying a new home? This course will explain the entire home buying process visually.
Comparing Your Home Against Recently Sold Listings
Once you’ve gathered enough data on your home and recently sold, active and expired listings, you can start performing a comparative market analysis. Depending on how deep you want to go, this exercise might take you anywhere from few hours to a weekend.
There are a few things you must look out for when comparing homes:
1. Square Footage: Square footage and home values don’t necessarily follow a linear relationship. After a certain size, larger homes are actually worth less per square foot than smaller homes. When comparing homes, you ideally want to look at houses that fall within +- 200-400 square feet of your home size.
2. Amenities: Amenities such as a swimming pool, fireplace or large garage can go a long way in increasing home value. Make sure to consider these when comparing homes.
3. Location: Location, as any realtor would tell you, is one of the biggest factors in determining a home’s value. However, since you will likely consider sales within the same region, this shouldn’t be a big concern. What you do need to look at are whether your comparables face a quiet street or a busy intersection (quiet = higher price), whether the bedrooms face a stunning view or a back alley, and whether schools, marketplaces and public transport are nearby.
4. Construction Age: Construction age plays a big role in determining the price of a home. Older homes tend to have historic value and character, while newer homes are often perceived as bland and boring. At the same time, old homes might require extensive upgrades and renovations, which can be a significant financial drain. Ideally, you want to consider houses constructed within +-10 years of your home, especially if the home was constructed after 1950s (since such homes would have little historic value).
5. Upgrades and Renovations, if Any: Make sure to consider upgrades and renovations while conducting a CMA. A kitchen or bathroom remodel can often add a few thousand dollars to your home value.
6. Subjective Features: Buying a home is an emotional decision. Something as simple as a tree in the backyard or a quirky window can make a home appear more charming and desirable. Subjective features such as design, style, landscaping and even color can affect home prices. Even if your comparables don’t have the same subjective features as your home, it is important to include them in your analysis.
Conducting a comparative market analysis by yourself is a daunting task. Depending on your circumstances, you may choose to go with your own analysis or hire a realtor to do the same. In either case, a self-conducted CMA will give you considerable insight into the valuation process and may reflect a price more rooted in reality (especially considering how realtors aren’t immune to inflating statistics).
For more detailed lessons on real estate analysis, check out this course on the fundamentals of real estate valuation.
What is Comparative Market Analysis?
A comparative market analysis – simply called ‘CMA’ in industry parlance – is an analysis of active and recently sold homes similar to yours within a region. This is a very subjective analysis that can range from a couple of pages to a 50-page guide detailing each and every aspect of a home. Keep in mind that a CMA is not an appraisal. The value assigned to a home in a CMA is purely subjective and based on what a realtor believes he can sell a home for. It doesn’t have any legal or financial value. Full Article
CMAs have long been used by realtors as a marketing tool to win listings. If your home has been on the market for a while, you may have already received letters and pamphlets from real estate agents offering a free CMA report to gauge the prospective value of your home. Depending on the realtor, these reports may be extraordinarily detailed or be just a couple of pages of comparable home sales within the region. The objective remains the same: to compare your home to recently sold and active listings in the surrounding area and give you a better idea of your home value.
How to Conduct a Comparative Market Analysis
As mentioned before, a CMA is a very subjective exercise. You (or your realtor) may look at ten or ten dozen sales. Your analysis may be limited to homes with the same block, or may expand to a couple of miles. The CMA might be entirely objective with a focus on square footage, number of bedrooms/bathrooms, key amenities, etc., or it may include subjective features as well such as design, construction, and style into account.
Which is to say: there are no hard and fast rules to conducting a CMA.
Having said that, any effective CMA should analyze the following things:
Home Analysis
The first step in conducting a CMA is to analyze your home. Ideally, this should include both objective and subjective elements, such as:
Square footage
Number of bedrooms and bathrooms
Land area
Number of floors
Construction age A comprehensive list of amenities and features such as swimming pool, fireplace, etc.
Location, including proximity to major roads, marketplaces, schools, etc.
Subjective features such as views, design, style, etc.
Recent improvements, if any.
Investing in real estate? Master the basics of real estate investment analysis in this course.
Listing Analysis
A CMA will always consider recently sold homes. It may also consider active, pending and withdrawn listings for an even better idea of prospective value.
1. Recently sold homes: Homes within the same region and with similar size, construction, amenities and location will often sell within the same price range. A long, hard look at recently sold listings will often tell you everything you need to know about your home’s prospective value. In fact, professional appraisers also use these listings to assign a value to a home. Most realtors consider sold listings from the past six months. Depending on the circumstances, they may expand their analysis to a year if there are very few comparable sales, or reduce it to the last few weeks in busy real estate markets. Realtors usually call similar recently sold homes comparables.
2. Active listings: This includes homes currently on the market. Understand that a home still waiting for a buyer represents prospective, not real value. Some sellers have high expectations and list their homes for far higher than their actual value. Others may reduce prices in hope for a quick sale. Market conditions also affect values of unsold homes. A sellers’ market tends to inflate values, while a buyer’s market tends to deflate values. Therefore, always consider active listings as an adjunct to recently sold home values.
3. Pending listings: This includes recently finalized deals that haven’t fully closed yet. You most likely won’t have access to actual selling price of these listings, but it does give you a general idea of the state of the market at the moment, at least in terms of the number of days a property spends on the market (called ‘DOM’ in realtor parlance).
4. Expired listings: These are listings that expired because they couldn’t find any buyers. Listings mostly expire when prices are too high. If homes similar to yours find their way into the expired listings, it might be an indication that you may have to price your home a bit more aggressively.
Getting Data on Home Pricing Trends
Getting access to MLS data is difficult for the average homeowner. This limits your ability to gather data on recently sold and active listings. However, thanks to the internet and FHFA, you can still learn a lot about home sales within your region.
Here are a few sources of data on home pricing trends:
1. Federal Housing Finance Agency: The FHFA website is an incredible source of data on recently concluded sales within a region. This includes all home mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration.
2. FNC Residential Price Index: FNC is an organization that specializes in conducting home appraisals. Over the years, it has conducted millions of home appraisals across multiple metro areas. It offers a Residential Price Index for over 20 metropolitan areas. Use it to understand pricing trends if you reside in any of the covered cities.
3. Real Estate Websites: Zillow.com, Redfin.com, Trulia.com, etc. are great for checking prices of recently sold and active listings. Although not entirely accurate, these tools can give you a fair idea of home prices within your region.
Buying a new home? This course will explain the entire home buying process visually.
Comparing Your Home Against Recently Sold Listings
Once you’ve gathered enough data on your home and recently sold, active and expired listings, you can start performing a comparative market analysis. Depending on how deep you want to go, this exercise might take you anywhere from few hours to a weekend.
There are a few things you must look out for when comparing homes:
1. Square Footage: Square footage and home values don’t necessarily follow a linear relationship. After a certain size, larger homes are actually worth less per square foot than smaller homes. When comparing homes, you ideally want to look at houses that fall within +- 200-400 square feet of your home size.
2. Amenities: Amenities such as a swimming pool, fireplace or large garage can go a long way in increasing home value. Make sure to consider these when comparing homes.
3. Location: Location, as any realtor would tell you, is one of the biggest factors in determining a home’s value. However, since you will likely consider sales within the same region, this shouldn’t be a big concern. What you do need to look at are whether your comparables face a quiet street or a busy intersection (quiet = higher price), whether the bedrooms face a stunning view or a back alley, and whether schools, marketplaces and public transport are nearby.
4. Construction Age: Construction age plays a big role in determining the price of a home. Older homes tend to have historic value and character, while newer homes are often perceived as bland and boring. At the same time, old homes might require extensive upgrades and renovations, which can be a significant financial drain. Ideally, you want to consider houses constructed within +-10 years of your home, especially if the home was constructed after 1950s (since such homes would have little historic value).
5. Upgrades and Renovations, if Any: Make sure to consider upgrades and renovations while conducting a CMA. A kitchen or bathroom remodel can often add a few thousand dollars to your home value.
6. Subjective Features: Buying a home is an emotional decision. Something as simple as a tree in the backyard or a quirky window can make a home appear more charming and desirable. Subjective features such as design, style, landscaping and even color can affect home prices. Even if your comparables don’t have the same subjective features as your home, it is important to include them in your analysis.
Conducting a comparative market analysis by yourself is a daunting task. Depending on your circumstances, you may choose to go with your own analysis or hire a realtor to do the same. In either case, a self-conducted CMA will give you considerable insight into the valuation process and may reflect a price more rooted in reality (especially considering how realtors aren’t immune to inflating statistics).
Monday, April 25, 2016
Keywords That Can Sell Your Home Faster
When listing your home for sale, there are some keywords that can be more influential than others for describing your home’s features. This article by Daniel Goldstein of MarketWatch highlights a Zillow analysis of the most effective keywords and phrases, and how they can impact the sales value of your home and the length of time on the market.
When it comes to listing your home, choose your words carefully. Zillow analyzed more than 60 keywords used in 2 million real estate listings between January 2014 and March 2016 and concluded that buyers jumped at certain features more than others. For example, home listings that contained the words “barn door” (a rustic-style sliding door often found in kitchen pantries and bedroom closets) sold for more than 13% above the expected value and 57 days faster. Other keywords that helped sell homes faster and at higher values included the terms “Shaker cabinet” and “subway tile,” as well as “farmhouse sink” and “Craftsman-style.”
Zillow noted that there were regional differences, too. “Craftsman” proved popular in Seattle, helping move homes off the market 14 days faster and with a 5.4% price premium.
Skylar Olsen, a senior economist with Zillow, noted that phrases like “new carpet” or “new paint” had no significant effect on listing price and days on market, as they may be regarded as a last-minute (and low-cost) effort by a seller to make the home more desirable prior to putting it on the market, but homes with “hardwood floors” in their listings sold for 2% more, on average. Full Article
When it comes to listing your home, choose your words carefully. Zillow analyzed more than 60 keywords used in 2 million real estate listings between January 2014 and March 2016 and concluded that buyers jumped at certain features more than others. For example, home listings that contained the words “barn door” (a rustic-style sliding door often found in kitchen pantries and bedroom closets) sold for more than 13% above the expected value and 57 days faster. Other keywords that helped sell homes faster and at higher values included the terms “Shaker cabinet” and “subway tile,” as well as “farmhouse sink” and “Craftsman-style.”
Zillow noted that there were regional differences, too. “Craftsman” proved popular in Seattle, helping move homes off the market 14 days faster and with a 5.4% price premium.
Skylar Olsen, a senior economist with Zillow, noted that phrases like “new carpet” or “new paint” had no significant effect on listing price and days on market, as they may be regarded as a last-minute (and low-cost) effort by a seller to make the home more desirable prior to putting it on the market, but homes with “hardwood floors” in their listings sold for 2% more, on average. Full Article
Friday, April 15, 2016
Active Listings
Savvy Lane is on a roll with listings. And better yet our Savvy sellers are saving thousands in commissions.
Start saying no to listing commissions and join the revolution with Savvy Lane. Call us 800-915-9174 to see how much you can save listing your home "for sale by owner".
Check out our latest listings.
Start saying no to listing commissions and join the revolution with Savvy Lane. Call us 800-915-9174 to see how much you can save listing your home "for sale by owner".
Check out our latest listings.
Thursday, April 7, 2016
Weekly Round-Up
Another busy dat in the office/ Here are a few homes we listed this week. Here is a link of all homes we have listed
$489,000
5 Bedroom/ 2 Bath
2140 square feet
Located in private rural subdivision of 5 acre homes. Within 2 miles of 2 golf courses, about 1 mile to HS and shopping. Beautiful 400 sq ft covered back porch overlooking fenced in back yard with firepit and fenced 50 X 60 garden. Horse property with 2 stalls, fenced. 50 X 36 outbuilding with 2 car garage. Stainless steel appliances.
$999,900
4 Bedroom/ 3.5 Bathroom
3060 square feet
This ultra-private residence is meticulously crafted to the highest standards & uniquely situated well above its neighbors. Large windows and over-sized decks surrounding the house create a dramatic visual experience from every room with spectacular 180◦ views of the Puget Sound & Mt. Rainier! This spacious, modern style home is filled with ocean breeze and natural light. Spotless interior features beautiful hardwood floors, over-sized ceramic tiles, and top of the line appliances.
$748,900
5 Bedroom/ 3.5 Bath
2440 square feet
This beautiful spacious Mt Tabor home features 5 bedrooms, 3.5 baths, hardwood, tile & city view! Built in 2008, double car garage, air conditioning, gas heat & fireplace. Luxurious master bath features granite & claw foot slipper tub. Loads of storage, back patio and garden.
$199,000
1 Bedroom/ 1 Bath
871 square feet
This impeccable updated condo features open floor plan, vaulted ceilings, granite, computer center,gas fireplace, tiled bathroom floors, covered balcony w/ gas hookup for your grill, storage galore, stack-able washer and dryer and much more located in quiet gated community. Nicest place in West Linn for under 200K, looks like a model home, close to freeway, shopping, restaurants.
This is the first time in over 40 years that this home is being listed. Exceptional schools. Abundant wildlife - seals, eagles, occassional dolphins & whales! Easy maintenance and move-in ready. This has been an active VRBO since 2006 so provides a good cash flow while giving owner access when needed if you are not ready to move in full-time. Offshore boat mooring, close to Olympia. Fee Simple property/home with tideland ownership.
$404,900
4 Bedroom/ 2 Bath
2243 square feet
Custom built 4 bdrm, 2 bath on sunny lot in Gate 1 on golf course. Lake and Mtn. views, huge 2-car and golf cart heated garage, tile roof w/leaf guard gutters, hot tub, lrg. front/back decks and vaulted ceilings. Natural gas cooking and BBQ. Gourmet kitchen w/granite countertops, SS appliances, 2 pantries, wine cooler. New toilets, water heater, furnace, skylights. Amenities: PGA golf course, clubhouse/restaurant, marina/swim beaches, library, YMCA gym, pools, tennis, dog park, 24/7 security
$249,500
3 Bedroom/ 2 Bath
1477 square feet
Newly remodeled. Open floor plan with vaulted ceilings. Large RV/Boat Parking. Neighborhood park directly across the street. One block from Tukwila golf course. Easy access to I-5 freeway and easy commute to Canby and other outlying areas. Covered porch and patio. Fenced yard. Large cement patio in back yard. Laminate floor throughout. Appliances and window coverings included.
$439,900
5 Bedroom/ 2.5 Bath
2942 square feet
Pride of ownership home located in desirable Kylie Park neighborhood. Home boasts extensive upgrades and attention to detail including slab granite counters, hardwoods, custom covered deck, wrought-iron staircase, custom closet organizers, built in wine refrigerator, full irrigation, home automation with cameras, mature landscaping, playground, fruit trees and plants, organic planting beds, outdoor lighting, remodeled laundry room with concrete counter, leaded glass entry door.
How to buy and sell a home at the same time—without losing your mind
Ah, to be a first-time home buyer again: How easy it was to buy a home when you weren’t carrying another mortgage on your back!
If you’re looking to graduate from first-timer to repeat buyer, you know things are about to get much trickier. Unless you’re a bona fide house collector, you’ll have to sell your home in order to buy anew—adding a whole separate layer of anxiety to what you already know is a stressful home-buying process.
n an ideal world, you’d buy a new home, move, and then, and when all the dust settles, deal with the turmoil of selling. But for most people, that’s totally unrealistic. Not only does it cost significantly more, since you’ll be paying two mortgages, but sellers might be quick to judge if you’re holding on to your current home.
Drew Snyder, a Realtor® with Snyder Sutton Real Estate in Topanga, CA, says one of his clients had difficulty getting sellers to “take them seriously unless the house was on the market or in escrow. As soon as we put it on [the market], they were considered as serious buyers.”
You can do this! If selling and buying simultaneously is the only way to go, here’s what you need to know to make sure both processes go as smoothly as possible. Full Article
Know the market first Before you start seriously searching for a new home—or put your current home on the market—make sure you have a solid understanding of the housing market in your area (and the area where you’re planning to buy). Is the market weighted toward buyers or sellers?
Only then will you be able to fully strategize. As is so often the case, the best plan of action may differ depending on exactly who has the power. That doesn’t mean to find one house you like and call it a day: Find multiple suitable options.
That way, you’re less likely to find yourself in trouble if your purchase falls through—your newly sold home won’t leave you stranded.
Similarly, make sure to hire an appraiser and price your old home fairly. Now is decidedly not the time for delusions of grandeur: Two extra months on the market because you couldn’t humble yourself to lower the price means two months you’ll be paying double mortgages. Two very long months…
Plan your schedule carefully… Should you buy first, then sell—or vice versa? Both have their risks and rewards. Selling first makes getting a mortgage easier, but it also means you’ll need to find a temporary place to live. Buying first means moving will be easier, but it also skews your debt-to-income ratio, making it harder to qualify for a new mortgage—not to mention the difficulty of juggling two monthly house payments.
“It’s walking a tightrope,” says Gary DiMauro, a Realtor in New York’s Hudson Valley. And he’s not just talking about scheduling: Your finances will be on the highwire, too. When determining whether you should sell or buy first, think beyond “How can I make the move as easy as possible?” Instead ask: “Can I handle two mortgages? What if my home sells for less than its listing?”
Whichever option you choose, make sure you’re prepared to accept the consequences: having to store your stuff and rent temporarily, or undergoing the financial burdens of dual mortgages.
… but don’t rely on timing When buying and selling a home simultaneously, “there are so many external circumstances,” says DiMauro. “I’ve yet to see it really work smoothly and efficiently.”
Remember: You’re not the only party in this equation. For every seller there’s a buyer, for every buyer a seller. While things might appear to be working smoothly when viewing your master plan from above, that doesn’t take into account the variabilities of other people. Closings are rife with delays. Your buyers might have difficulty securing their mortgage; your home inspector may bring up issues that need to be fixed before you can move in.
“You’re relying on the seller of the place that you’re buying to be ready to move in concert with the buyer of your house,” DiMauro says.
So even if you’ve planned to sell your home first and are prepared to rent while buying, know that even the best-laid plans go awry—and you might end up juggling both mortgages. Preparing yourself for this (however remote) possibility ahead of time will ensure a smooth transition.
Know your financial solutions For those who choose to sell first, the process is relatively straightforward other than the additional cost of a rental between homes. However, there is the option of a rent-back agreement, where you negotiate with the lenders and buyers to be able to remain in the property for a maximum of 60 to 90 days—often in exchange for a lower selling price or rent paid to the buyers. This can relieve some of the pressure of finding a new home, giving you additional time to house hunt.
But if you’re buying first, talk to your Realtor about ways to decrease your financial burden and risk. Here are the two most popular options for buyers:
Contract contingency: Buyers can request that their new home purchase be dependent on the successful sale of their old home. If you’re looking in a competitive market, this may not be a good option; however, if the seller of your intended home has had difficulty attracting interest, this may be a good deal for all parties involved—assuming you can convince them that your home will sell quickly.
Bridge loans: Bridge financing allows you to own two homes simultaneously if you don’t have deep pockets for a second down payment. This option is especially attractive if you’d planned to sell your home first and use the proceeds to buy the second. It functions as a short-term loan, intended to be repaid upon the sale of your original house.
Don’t let fear rush you If your home has sold but you haven’t found a new place to live, don’t let anxiety push you toward a bad decision. DiMauro usually recommends that his clients pre-emptively plan on a short-term rental “so they don’t feel stressed or pushed into something that they would not normally be interested in,” he says. “They shouldn’t make a purchase because they felt like they were pressured from the time constraints.”
Found the perfect home right on schedule? That’s great. But don’t feel like you have to compromise on things that are important to you just because you need to find a home. Conversely, don’t accept a bid that you feel is too low just because your finances are strained by two mortgages. If you have a temporary apartment set up, you’re less likely to compromise.
Certainly, selling and buying a house simultaneously will be stressful—but carefully considering and planning for the risks and hurdles can mitigate the stress.
If you’re looking to graduate from first-timer to repeat buyer, you know things are about to get much trickier. Unless you’re a bona fide house collector, you’ll have to sell your home in order to buy anew—adding a whole separate layer of anxiety to what you already know is a stressful home-buying process.
n an ideal world, you’d buy a new home, move, and then, and when all the dust settles, deal with the turmoil of selling. But for most people, that’s totally unrealistic. Not only does it cost significantly more, since you’ll be paying two mortgages, but sellers might be quick to judge if you’re holding on to your current home.
Drew Snyder, a Realtor® with Snyder Sutton Real Estate in Topanga, CA, says one of his clients had difficulty getting sellers to “take them seriously unless the house was on the market or in escrow. As soon as we put it on [the market], they were considered as serious buyers.”
You can do this! If selling and buying simultaneously is the only way to go, here’s what you need to know to make sure both processes go as smoothly as possible. Full Article
Know the market first Before you start seriously searching for a new home—or put your current home on the market—make sure you have a solid understanding of the housing market in your area (and the area where you’re planning to buy). Is the market weighted toward buyers or sellers?
Only then will you be able to fully strategize. As is so often the case, the best plan of action may differ depending on exactly who has the power. That doesn’t mean to find one house you like and call it a day: Find multiple suitable options.
That way, you’re less likely to find yourself in trouble if your purchase falls through—your newly sold home won’t leave you stranded.
Similarly, make sure to hire an appraiser and price your old home fairly. Now is decidedly not the time for delusions of grandeur: Two extra months on the market because you couldn’t humble yourself to lower the price means two months you’ll be paying double mortgages. Two very long months…
Plan your schedule carefully… Should you buy first, then sell—or vice versa? Both have their risks and rewards. Selling first makes getting a mortgage easier, but it also means you’ll need to find a temporary place to live. Buying first means moving will be easier, but it also skews your debt-to-income ratio, making it harder to qualify for a new mortgage—not to mention the difficulty of juggling two monthly house payments.
“It’s walking a tightrope,” says Gary DiMauro, a Realtor in New York’s Hudson Valley. And he’s not just talking about scheduling: Your finances will be on the highwire, too. When determining whether you should sell or buy first, think beyond “How can I make the move as easy as possible?” Instead ask: “Can I handle two mortgages? What if my home sells for less than its listing?”
Whichever option you choose, make sure you’re prepared to accept the consequences: having to store your stuff and rent temporarily, or undergoing the financial burdens of dual mortgages.
… but don’t rely on timing When buying and selling a home simultaneously, “there are so many external circumstances,” says DiMauro. “I’ve yet to see it really work smoothly and efficiently.”
Remember: You’re not the only party in this equation. For every seller there’s a buyer, for every buyer a seller. While things might appear to be working smoothly when viewing your master plan from above, that doesn’t take into account the variabilities of other people. Closings are rife with delays. Your buyers might have difficulty securing their mortgage; your home inspector may bring up issues that need to be fixed before you can move in.
“You’re relying on the seller of the place that you’re buying to be ready to move in concert with the buyer of your house,” DiMauro says.
So even if you’ve planned to sell your home first and are prepared to rent while buying, know that even the best-laid plans go awry—and you might end up juggling both mortgages. Preparing yourself for this (however remote) possibility ahead of time will ensure a smooth transition.
Know your financial solutions For those who choose to sell first, the process is relatively straightforward other than the additional cost of a rental between homes. However, there is the option of a rent-back agreement, where you negotiate with the lenders and buyers to be able to remain in the property for a maximum of 60 to 90 days—often in exchange for a lower selling price or rent paid to the buyers. This can relieve some of the pressure of finding a new home, giving you additional time to house hunt.
But if you’re buying first, talk to your Realtor about ways to decrease your financial burden and risk. Here are the two most popular options for buyers:
Contract contingency: Buyers can request that their new home purchase be dependent on the successful sale of their old home. If you’re looking in a competitive market, this may not be a good option; however, if the seller of your intended home has had difficulty attracting interest, this may be a good deal for all parties involved—assuming you can convince them that your home will sell quickly.
Bridge loans: Bridge financing allows you to own two homes simultaneously if you don’t have deep pockets for a second down payment. This option is especially attractive if you’d planned to sell your home first and use the proceeds to buy the second. It functions as a short-term loan, intended to be repaid upon the sale of your original house.
Don’t let fear rush you If your home has sold but you haven’t found a new place to live, don’t let anxiety push you toward a bad decision. DiMauro usually recommends that his clients pre-emptively plan on a short-term rental “so they don’t feel stressed or pushed into something that they would not normally be interested in,” he says. “They shouldn’t make a purchase because they felt like they were pressured from the time constraints.”
Found the perfect home right on schedule? That’s great. But don’t feel like you have to compromise on things that are important to you just because you need to find a home. Conversely, don’t accept a bid that you feel is too low just because your finances are strained by two mortgages. If you have a temporary apartment set up, you’re less likely to compromise.
Certainly, selling and buying a house simultaneously will be stressful—but carefully considering and planning for the risks and hurdles can mitigate the stress.
 |
| WB Digital/Getty Images |
Tuesday, April 5, 2016
Savvy Lane Listings
Go ahead, snoop at our latest listings.
We have revolutionized property sales by streamlining the entire process. We provide a faster, easier and less stressful experience. By prepaying for our services you can be sure to get unbiased advice and support.
We have revolutionized property sales by streamlining the entire process. We provide a faster, easier and less stressful experience. By prepaying for our services you can be sure to get unbiased advice and support.
3 Things That Can Speed Up Your Home Sale
Listing a home only to have it sit on the market day after day can be a very frustrating experience for sellers. Being unable to close the deal quickly can leave home and property owners with limited options, and may even increase the risk that future market volatility may have a negative impact on the sale price. Full Article
Here are just a few insider tips that can help ensure you are able to attract the interest of the right buyer, sooner rather than later.
ENHANCE THE CURB APPEAL First impressions are very important. A shabby exterior or unattractive lawn can be a significant liability when it comes to a quick and successful sale. Landscaping upgrades, new exterior siding, or paint and other simple cosmetic upgrades that will enhance the curb appeal of a property are a proven and effective way to minimize the amount of time a home will sit on the market. Creating and maintaining a more attractive exterior environment may even allow owners to increase the sale price of their home.
DEPERSONALIZE THE PROPERTY Prospective buyers often have difficulty getting the right feel for a home when interior environments are cluttered with personal belongings. In addition to a thorough cleaning, minimizing clutter, and removing decorations and furnishings that may be too distinctive or eclectic can ensure that potential buyers are presented with a blank canvas, one that they may be better able to picture themselves transforming into the home of their dreams.
NAIL DOWN A MARKETING STRATEGY FIRST Effective marketing is crucial to close the deal as quickly as possible. Relaying on conventional or ineffective marketing methods can make it difficult to capture the attention of prospective buyers in greater number. In addition to open house signs, flyers, advertisements, and marketing app like Homecodec, working with a professional who has a tried and true business plan can ensure that property owners are able to enjoy greater success.
The right strategy is important so when you're looking for a real estate agent, make sure you understand specifically what they can bring to the table. Our strategy is called the New Rules of Real Estate. Contact an agent or check them out for yourself hereon our site to learn how best to tackle your home sale so that things go swiftly and smoothly.
Here are just a few insider tips that can help ensure you are able to attract the interest of the right buyer, sooner rather than later.
ENHANCE THE CURB APPEAL First impressions are very important. A shabby exterior or unattractive lawn can be a significant liability when it comes to a quick and successful sale. Landscaping upgrades, new exterior siding, or paint and other simple cosmetic upgrades that will enhance the curb appeal of a property are a proven and effective way to minimize the amount of time a home will sit on the market. Creating and maintaining a more attractive exterior environment may even allow owners to increase the sale price of their home.
DEPERSONALIZE THE PROPERTY Prospective buyers often have difficulty getting the right feel for a home when interior environments are cluttered with personal belongings. In addition to a thorough cleaning, minimizing clutter, and removing decorations and furnishings that may be too distinctive or eclectic can ensure that potential buyers are presented with a blank canvas, one that they may be better able to picture themselves transforming into the home of their dreams.
NAIL DOWN A MARKETING STRATEGY FIRST Effective marketing is crucial to close the deal as quickly as possible. Relaying on conventional or ineffective marketing methods can make it difficult to capture the attention of prospective buyers in greater number. In addition to open house signs, flyers, advertisements, and marketing app like Homecodec, working with a professional who has a tried and true business plan can ensure that property owners are able to enjoy greater success.
The right strategy is important so when you're looking for a real estate agent, make sure you understand specifically what they can bring to the table. Our strategy is called the New Rules of Real Estate. Contact an agent or check them out for yourself hereon our site to learn how best to tackle your home sale so that things go swiftly and smoothly.
Monday, April 4, 2016
9 Surprising Things That Add Value to Your House
A home’s value is dependent on many things. Here are nine factors you might not have thought about. Full Article
1. Surf Breaks Being within a mile of a surf break (a spot where surf-able waves happen) adds about $106,000 to a home’s value, according to surfonomics experts at the Monterey Institute of International Studies.
Reality check: Mother Nature makes surf breaks, so it’s not like you could build your own DIY break to boost your home’s value.
2. Parks and Open Spaces A desirable public park or other recreational open space boosts the property value of nearby homes by 8%-20%.
One study looked at 16,400 home sales within 1,500 feet of 193 public parks in Portland, Ore., and found these boosts to home values:
Reality check: A park that’s not maintained and overcrowded can drag down nearby home values.
3. Living Near a Walmart Along with making it easier to run out for a gallon of milk at midnight, researchers at the University of Chicago concluded that living within a mile of a Walmart store could raise your home’s value by 1%-2%, and living within half a mile could boost your property value by an additional 1%.
For an average-size home, that’s an uptick of $4,000-$7,000.
Realty check: What you gain in home value, you may end up spending at Walmart
4. Solar Photovoltaic Systems California homes with solar photovoltaic (PV) systems sell for a $17,000 premium over homes without solar systems, according to research from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory.
Reality check: Although costs for residential solar power systems are falling, they’re still rather pricey at $15,000-$40,000, depending on the size of your house.
5. Walkability Being able to stroll to schools, parks, stores, and restaurants will raise your property value anywhere from $4,000-$34,000, says a 2009 study from CEOs for Cities.
Reality check: The biggest boost in walkability values occurred in large, dense cities.
6. Accessory Dwelling Units Whether it’s a granny flat, an in-law apartment, or a carriage house, having a separate unit can increase your home’s value by 25%-34%, according to a study of 14 properties with accessory dwelling units in Portland, Ore. You can also get a steady stream of income from a second unit.
Reality check: Local governments often ban accessory dwelling units, so check zoning laws, building codes, and homeowners association rules before you add a unit.
7. Professional Sports Arenas A new pro sports stadium can raise property values in a 2.5-mile radius by an average of $2,214. The closer you are to the new facility, the larger the increase in home value. Researchers from the University of Illinois at Urbana-Champaign and the University of Alberta examined house sales in Columbus, Ohio, before and after the city added two sports stadiums.
Reality check: If a stadium is proposed, home values can decline a bit until the project is complete. And if you live really close to a stadium, you may encounter traffic and parking issues.
8. Community Gardens Planting a community garden raises the value of homes within a 1,000-foot radius by 9.4% within five years, according to research by the Office of the Comptroller of the Currency and New York University School of Law.
The impact increases over time, and high-quality community gardens have the greatest positive influence. Poor neighborhoods saw the biggest gains in home values.
Reality check: Gardens on privately owned land and in higher-income neighborhoods don’t have the same beneficial influence.
9. Trees No real surprise here — whether trees are in your yard or just on your street, they’re a valuable asset you should be aware of. Here’s a gauge of how much trees are worth to your home value according to a University of Washington research survey:
Reality check: Trees usually mean work — raking leaves, trimming branches, and keeping roots out of sewer lines.
1. Surf Breaks Being within a mile of a surf break (a spot where surf-able waves happen) adds about $106,000 to a home’s value, according to surfonomics experts at the Monterey Institute of International Studies.
Reality check: Mother Nature makes surf breaks, so it’s not like you could build your own DIY break to boost your home’s value.
2. Parks and Open Spaces A desirable public park or other recreational open space boosts the property value of nearby homes by 8%-20%.
One study looked at 16,400 home sales within 1,500 feet of 193 public parks in Portland, Ore., and found these boosts to home values:
- Natural areas: $10,648
- Golf courses: $8,849
- Specialty parks: $5,657
- Urban parks: $1,214
Reality check: A park that’s not maintained and overcrowded can drag down nearby home values.
3. Living Near a Walmart Along with making it easier to run out for a gallon of milk at midnight, researchers at the University of Chicago concluded that living within a mile of a Walmart store could raise your home’s value by 1%-2%, and living within half a mile could boost your property value by an additional 1%.
For an average-size home, that’s an uptick of $4,000-$7,000.
Realty check: What you gain in home value, you may end up spending at Walmart
4. Solar Photovoltaic Systems California homes with solar photovoltaic (PV) systems sell for a $17,000 premium over homes without solar systems, according to research from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory.
Reality check: Although costs for residential solar power systems are falling, they’re still rather pricey at $15,000-$40,000, depending on the size of your house.
5. Walkability Being able to stroll to schools, parks, stores, and restaurants will raise your property value anywhere from $4,000-$34,000, says a 2009 study from CEOs for Cities.
Reality check: The biggest boost in walkability values occurred in large, dense cities.
6. Accessory Dwelling Units Whether it’s a granny flat, an in-law apartment, or a carriage house, having a separate unit can increase your home’s value by 25%-34%, according to a study of 14 properties with accessory dwelling units in Portland, Ore. You can also get a steady stream of income from a second unit.
Reality check: Local governments often ban accessory dwelling units, so check zoning laws, building codes, and homeowners association rules before you add a unit.
7. Professional Sports Arenas A new pro sports stadium can raise property values in a 2.5-mile radius by an average of $2,214. The closer you are to the new facility, the larger the increase in home value. Researchers from the University of Illinois at Urbana-Champaign and the University of Alberta examined house sales in Columbus, Ohio, before and after the city added two sports stadiums.
Reality check: If a stadium is proposed, home values can decline a bit until the project is complete. And if you live really close to a stadium, you may encounter traffic and parking issues.
8. Community Gardens Planting a community garden raises the value of homes within a 1,000-foot radius by 9.4% within five years, according to research by the Office of the Comptroller of the Currency and New York University School of Law.
The impact increases over time, and high-quality community gardens have the greatest positive influence. Poor neighborhoods saw the biggest gains in home values.
Reality check: Gardens on privately owned land and in higher-income neighborhoods don’t have the same beneficial influence.
9. Trees No real surprise here — whether trees are in your yard or just on your street, they’re a valuable asset you should be aware of. Here’s a gauge of how much trees are worth to your home value according to a University of Washington research survey:
- Mature trees anywhere in your yard: 2%.
- Mature trees on your street: 3%.
- Trees in your front yard: 3%-5%.
- Mature trees in high income neighborhoods: 10%-15%.
Reality check: Trees usually mean work — raking leaves, trimming branches, and keeping roots out of sewer lines.
Sunday, April 3, 2016
5 Most Common Pricing Mistakes Sellers Make When Listing A Property
In a favorable real estate market, it’s common for potential sellers to fall victim to the notion that they can do no wrong. In reality, nothing could be further from the truth! That's why home pricing with local market knowledge is one of our New Rules of Real Estate. It's that important for success.
Avoid these classic mistakes to ensure you attain the highest possible value for your home, in the shortest amount of time.
TAKING A ‘ZESTIMATE’ AS GOSPEL. Estimates from sites like Zillow are just that—estimates! To determine a logical listing price, it takes a trained professional. That's because a trained professional takes into account things that a simple estimate database can't like daily or weekly market conditions and intimate neighborhood knowledge. Finding an agent with focused experience in your community—and taking his or her research, experience and insight to heart—is the best way to go about things.
OVERPRICING YOUR HOME RIGHT FROM THE START. Sure, it certainly seems logical to up the asking price of a property in anticipation of negotiations. The problem with this logic however is that it often backfires, and when it does, you’ll be forced to lower the price of your home, thus painting it in a needlessly unfavorable light. Overpricing can lead to your house sitting on the market untouched and is much more dangerous than underpricing. Likewise …
PRICING FOR THE FUTURE. Home values in your neighborhood might well be on the rise, but you’d be wise to resist the urge to jack up the listing price because of it. This is merely another way to overprice your home and, ultimately, wind up in a position that forces you to lower the listing price. If you price your home based on current sales and the present state of the market, you will have more interested buyers and a better chance of competitive offers.
CHOOSING THE LISTING AGENT: Listing your home with a flat fee brokerage that allows you to list on the MLS for a flat fee rather than charging a traditional 3% listing commission will allow you to keep more in your pocket. Savvy Lane empowers sellers to sell with help and keep the commission.
LETTING EMOTION CLOUD YOUR JUDGMENT. Particularly when it comes to selling a property, this one’s often easier said than done. But it’s critical to bear in mind that, at the end of the day, selling real estate is business, and the decisions you make during this process will impact your life in more ways than one. First Team agents use competitive market analysis and our own tool Market Trends to provide you with the facts you need to set the right price, right away. Because you need the facts, not wishful thinking. For help pricing your home, talk with a First Team agent. You can search for a professional in your area or reach out and we'll match you with a top listing agent based on your neighborhood.
Avoid these classic mistakes to ensure you attain the highest possible value for your home, in the shortest amount of time.
TAKING A ‘ZESTIMATE’ AS GOSPEL. Estimates from sites like Zillow are just that—estimates! To determine a logical listing price, it takes a trained professional. That's because a trained professional takes into account things that a simple estimate database can't like daily or weekly market conditions and intimate neighborhood knowledge. Finding an agent with focused experience in your community—and taking his or her research, experience and insight to heart—is the best way to go about things.
OVERPRICING YOUR HOME RIGHT FROM THE START. Sure, it certainly seems logical to up the asking price of a property in anticipation of negotiations. The problem with this logic however is that it often backfires, and when it does, you’ll be forced to lower the price of your home, thus painting it in a needlessly unfavorable light. Overpricing can lead to your house sitting on the market untouched and is much more dangerous than underpricing. Likewise …
PRICING FOR THE FUTURE. Home values in your neighborhood might well be on the rise, but you’d be wise to resist the urge to jack up the listing price because of it. This is merely another way to overprice your home and, ultimately, wind up in a position that forces you to lower the listing price. If you price your home based on current sales and the present state of the market, you will have more interested buyers and a better chance of competitive offers.
CHOOSING THE LISTING AGENT: Listing your home with a flat fee brokerage that allows you to list on the MLS for a flat fee rather than charging a traditional 3% listing commission will allow you to keep more in your pocket. Savvy Lane empowers sellers to sell with help and keep the commission.
LETTING EMOTION CLOUD YOUR JUDGMENT. Particularly when it comes to selling a property, this one’s often easier said than done. But it’s critical to bear in mind that, at the end of the day, selling real estate is business, and the decisions you make during this process will impact your life in more ways than one. First Team agents use competitive market analysis and our own tool Market Trends to provide you with the facts you need to set the right price, right away. Because you need the facts, not wishful thinking. For help pricing your home, talk with a First Team agent. You can search for a professional in your area or reach out and we'll match you with a top listing agent based on your neighborhood.
Friday, April 1, 2016
This is Not an April Fools Joke.. We are one of the Fastest Growing Brokerages
This is not an April Fools Joke. SavvyLane.com is one of the fastest growing brokerages! Join the revolution and list your home with Savvy Lane.
Savvy Lane has rebuilt real estate from the ground up by combining For Sale by Owner and the traditional process. Using our flat fee MLS service will save you thousands of dollars by eliminating the traditional 6% commission. By listing your property on the MLS and hundreds of real estate websites you will increases your exposure tenfold.
Today 98% of buyers start their search online, make sure your property is seen on as many sites as possible with our flat fee MLS options. As a licensed brokerage Savvy Lane will provide access to the MLS, forms, yard signs, lock boxes and support to help you sell like the pros. Our proven technology has transformed the selling process.
Savvy Lane has helped thousands save millions on commissions. Join the revolution and let us help you today.
Savvy Lane has rebuilt real estate from the ground up by combining For Sale by Owner and the traditional process. Using our flat fee MLS service will save you thousands of dollars by eliminating the traditional 6% commission. By listing your property on the MLS and hundreds of real estate websites you will increases your exposure tenfold.
Today 98% of buyers start their search online, make sure your property is seen on as many sites as possible with our flat fee MLS options. As a licensed brokerage Savvy Lane will provide access to the MLS, forms, yard signs, lock boxes and support to help you sell like the pros. Our proven technology has transformed the selling process.
Savvy Lane has helped thousands save millions on commissions. Join the revolution and let us help you today.
Subscribe to:
Posts (Atom)