Happy Holidays!

Can you believe 2014 is just days away? As the new year approaches, I couldn't help but reflect on the past year. Our team had the best year in the history of the company and we couldn't have done it without you. From the bottom of my heart I wanted to thank you for your support and your referrals. Have a happy and safe Christmas and New Years!

10 Reasons Why Now is a Great Time to Sell Your Home

 
Traditional school of thought dictates that selling a home during the holidays is a bad idea. People are busy celebrating with their families and will hardly go shopping for a home, right? Not so!  There are numerous advantages to listing a home during this season and below are ten great reasons to put a home on the market now. 

More serious buyers – Less time wasted

These are people who are interested in buying so there is a far greater chance of actually selling the property.  Nothing is more promising to a seller than a motivated and qualified buyer that knows what they want and is actively seeking to get it.

Fewer Homes On the Market

The less competition there is, the higher the chance there is for homes on the market to sell. Where during the peak season sellers might be dealing with some interest from buyers on their home, nonetheless there is more selection for buyers to choose from and they can stray to another property.

In January Inventory Increases – Chances of Selling Decreases

With so many homeowners assuming the holidays is a taboo time to sell there is a plethora of new listings in January, resulting in a diminished chance of your home selling.  Also, there is a risk that the price you may receive on the home can be less.

Decked Halls Look Great!

Homes are very appealing to prospective buyers when they are decorated for the holidays.  With all the festive décor, lights, greenery and added beauty of the season – the home shows very well and attracts buyers faster than if shown during other times of the year.

More Time To Browse Homes

Buyers have extra time off from work and are on vacation, which translates to a more aggressive buying pattern and more chances of your home being viewed.

More Emotional Buyers

Because of the high stress of the holidays, buyers tend to be more emotional during this time than in the summer months. A more emotional buyer will tend to pay more for a new property, so selling your home during the holidays could make you more money. 

Show The Home With Flexibility

Sellers that have their home listed prior to the holidays have the added advantage to be able to “pause” the process so they can celebrate the holidays, essentially not showing the home during a period of time during the break.  When the festivities die down, things can pick up again and the seller has not only managed to save potentially lost time but can also jump right back into the market.

Transferred Employees

January is typically the month where employees are transferred into new position. In order to capture this demographic of buyers, your home must be on the market since these buyers cannot wait until the spring to buy. 

Sell Now For More Money Then Delay Closing

Extended occupancy can be negotiated, leaving both parties the leniency to get through the holiday season and past the New Year so that all sides can rest assured the deal is done but it can follow through at a more convenient time.  For sellers this option is great because they are able to secure a higher selling price on the property before the market is inundated with new listings come January when the selling values drop.

Fewer Foreclosures On the Market

Many banks will suspend foreclosure listing during this time of year, especially on properties where there are still families occupying the home.  As a result of this, some of the competition that arises for sellers from low-priced foreclosures can be avoided during the holidays.

~

Keep in mind that the idea of your home’s value increasing significantly over the next several months is a myth.  The truth is that housing values likely only go up when consumer income rises.  Pay rates increase at a rate of three to five percent each year and that is 
about the maximum yearly increase we can expect to see in a home as well.  So if you are wondering whether or not to put your home on the selling market now, or to wait – one important factor is that waiting will not provide much benefit.

Effectively Prepping Your Home

Watch on your mobile device >>

You want to sell your home quickly. The fastest way to do so is to start depersonalizing your home to create a blank canvas. You don't want to distract the buyer with your personal belongings, so pack up the photos, and let the buyer imagine their own photos on your walls and knick-knacks on your shelves all the while saying, "I can see myself living in this home!" Less is more.

To help create the blank canvas, paint is inexpensive and it will increase the value of your home, but you need to choose a neutral palette. The goal is to appeal to the masses because when you do, you get more showings, which leads to more offers and then, ultimately, the highest price possible for your property. 

Why Invest in Real Estate?

Hi, everyone. Welcome back to my video real estate blog. Today, I wanted to talk about something I am very passionate about: real estate investment. Investing in real estate can reap a lot of benefits.

Why invest?

1.    It’s safe. What I mean is, investing in real estate is safer than stock, equities and bonds.

2.    You can control it. When you purchase a property in your area, you have the ability to oversee it.

3.    Hire a great property manager. Some of you may not be the property management type and I understand that. I can recommend fantastic managers for your property to make sure everything runs smoothly.

4.    Rate of Return. The average rate of return on stocks, bonds, etc. is around 5-10%. Now, let me give you an example of a recent real estate investment: the client bought the property in total for $18,000. If he charges $700 per month for rent, he has a gross of $8,400 a year. Now, to come up with the net profit, take about half of that. His net profit for the year is $4,200. That’s a 23% return. What else can you invest in to get such a great return?

5.    It can be tax-free. Through a self-directed IRA, that 23% and anything else you profit from later on, can possibly be tax-free for life.

These are just a few of the reason I strongly believe in investing in real estate! If you have any questions, please give me a call 502.458.2722

Thanks for watching!

For-Sale-by-Owner Tips

Watch on your mobile device >>

A lot of people want to sell their home by owner because they want to save on the real estate commission. That’s understandable. Let’s first look at the facts. Nationally, the facts are that 90% who try to sell by owner end up hiring a realtor. A good realtor who advertises will get you 10 to 15% more for your house than if you would have sold it yourself, even if you’re paying a 6 or 7 % commission. You therefore come out ahead. Here are other things to consider.

 

You have to price it right. Owners often don’t understand pricing and are not objective because they are attached to their homes, so they price it way too high. To avoid pricing yourself out of the market, get some ideas of what the price should be. Get an opinion from a realtor. After all, it’s free!

Get your home ready. First and foremost, make sure you have fresh clean flooring and fresh paint because buyers make up their minds in the first 30 seconds. First impressions count.

  

Market your home. Two things sell real estate—price and marketing. Marketing is a struggle for those trying to sell their home on their own. You have to figure out a way to make your property stand out, whether it’s using the Internet, paper, a sign in your yard, etc. Marketing sells properties.

Don’t take it personally. When people look at your house, let them take their time and if they have anything to say, don’t take it personally. 

Be ready to negotiate. When you negotiate with a buyer, you have to do so in good faith and know what their real estate goals are. Never reveal why you are selling, and if they ask, say it’s personal because you don’t want to give them leverage. 

Know the steps in selling. You have to get the home ready first. When you have a buyer, make sure the buyer is prequalified with a letter from their lender. It’s not too much to ask. If a buyer isn’t prequalified, suggest a couple of lenders for them. Remember you need to negotiate a lot of things besides price such as inspections, the closing time, etc. When writing the contract, you’ll need to discuss such issues as the price, down payment, inspection time and closing time. Once you get the contract written, the inspection period is a big negotiation time where the buyer will have seven to 14 days to perform inspections on the house, so be ready to negotiate. Knowing when to move is also important, so don’t move out before or on the day of the closing. The buyer and seller should mutually agree on where the closing should take place. Last, but not least, have your documentation ready, such as seller’s disclosures the buyer needs to sign, lead-based paint forms, etc.   

If you dare to sell your home by owner, we can give you some advice. You can reach us at (502) 458-2722 or jp@jpsold.com. 

Trends on Both Sides of the Fence; Here's What is Happening

Watch on your mobile device >>

We are definitely seeing a plethora of lengthy reports about the real estate market these days, whether on a national level or honed in on a particular local area.  But the fact remains that the market is in an unstable state and keeping track of indexes, watching over home sales and how they fluctuate from month to month or year over year, is giving us a glimpse into what to expect.  It is these very measures that allow us to foresee the greater trends that exist so we can act accordingly.  Here, according to which side of the transaction you are on, are some happenings in the industry and what they mean to you as a home buyer or home seller.

Buyers Don’t Beware
Buyers Trend #1
Foreclosures have slowed down. 

For the most part, whatever foreclosures that had flooded the market have either slid into transition stage, where the banks are reviewing documents and going through the sometimes lengthy review process that comes before accepting applications to purchase a foreclosed home – or there are fewer properties available.  There was indeed a flood of distress sales in the market that occurred in the recent past but banks have now shifted away from foreclosures and they are favoring short sales instead. Short sales are a far better option for many reasons, but the two main benefits remain 1. Homeowners are either able to retain some of their credit while buying back their home at less than its current value and 2. Banks are spared the added expense and risk that goes along with foreclosures.

Buyers Trend #2
Prices remain historically low.

One thing that has not changed for the duration of our current recession, even as we have headed into a double-dip economic downturn, is that as a result home prices continue to be at their lowest level in years.  In the S&P Case-Shiller Home Price Index, it is indicated that housing prices these days rival a 30-year low and they seem to be hanging there in place as the market remains unsettled. Even though prices are as low as they are, the fact remains that these transactions that are taking place are happening with regular homeowners and simple sales deals, rather than banks for foreclosure sales.

Buyers Trend #3
Rates are still at an all-time low.

Interest rates, depending on the day, are still as low as a little under 5% for the average 30-year fixed rate mortgage loan.  For potential homeowners and those who want to move up or seize the opportunity to move into a luxury residence, this could not be a more perfect time to invest in that property.  For those people willing to remain in the mix for the long haul, the current market trends will predominantly not affect them in terms of return on investment.  The market will indeed bounce back, whether 6, 7 or even more years later.  And when it does, you will end up having much more house (in terms of value), while still paying that very low interest rate.
It’s a Small (Selling) World After All


Sellers Trend #1
There are lots of buyers looking to buy. 

When you are selling your property, the more the potential buyers the merrier.  With the number of buyers who are looking for a great deal your chances of selling are a lot better these days and if you have a home that has unique or upgraded amenities you can further avail the opportunities that will come with having that edge over other sellers.

Sellers Trend #2
Inventory is down. 

With the number of pending sales in limbo on a day-to-day basis, inventory figures are relatively low.  This is great news for people looking to sell their properties, because that translates to more buyers for the taking and the ones that do come looking at your property are far more impressionable.
~
To sum things up, right now is a great time to be a buyer – especially with all the incentives out there ranging from super low interest rates to housing prices that are closer to those from 7 or 8 years ago.  If you can afford it now, buy now.

As a seller, the main advantage you have these days is that there is less inventory for those buyers out there looking for a deal now – which means you have the edge and better chances of selling that property.
The trends keep fluctuating a bit here and there but the major things remain:  low rates, low housing prices, low inventory.  And now is the time to seize the opportunities that lie within these trends.

How to Turn Your Vision of the Future into Reality

Watch on your mobile device >>

In a nutshell the definition of success is reaching one’s goals.  Although success is defined the same for everyone, it is different for everyone because success means reaching your goals.  It’s truly individual.  Goals go beyond financial ones to those related to friendships, family, spiritual growth and more.  

Setting goals is so important, yet more than 90% don’t have written goals.  The number one reason people don’t have goals is because they don’t know how to write goals, which is not easy, but you have to drill down and overcome the inertia.  Second, people are afraid to fail.  Remember, if you don’t set your goals you’re failing automatically.  Third, people buy into the idea that it’s too late or they’re too old to set goals.  You’re never too old or too late to set goals.

There’s a formula for success that boils down to setting goals and walking toward them.  Here are 12 steps to achieve your goals.   

1.  Have a burning desire for the goal or you’ll never accomplish it.   

2.  Believe your goal is achievable.  To do this, don’t set unrealistic ones.      

  

3.  Determine why you want to attain the goal.  Drill down and say how the goal is important in your life and how it will make a difference. 

4.  Write it down.  A lot of people set goals, but they never put them in writing.  You have to be able to visualize the goals and writing them down helps you do this.  

5.  Determine a starting point.  You start by writing them down and include when and how you’re going to start the plan of action to achieve your goal. 

6.  Set a deadline. Goals without deadlines are dreams—not goals—so have a deadline, whether it’s a month, a year or five years out.   

7.  Identify what is holding you back from reaching your goals.  

8.  Determine the skills or knowledge you need to achieve your goals. 

9.  Determine the people who can help you.  

  

10.  Make an action plan to reach all your goals—and a starting point.   

  

11.  Look at your goals often.  By putting your goals on an index card and keeping them on you, such as in a binder, you can look at them daily.  If you read them aloud every day, your mind will then subconsciously push you toward your goals. 

12.  Never give up.   Even if you write down your goals and you’re three months into it and you’ve missed your deadline, don’t let that stop you.  Never give up.  The person who gives up fails, and the person who perseveres never loses.     

I hope you find this information helpful.  I live by it.  By writing down your goals, you’ll change your life, so where should you start?  Contact me for a copy of a great spreadsheet that covers personal, spiritual, adventure, income, retirement goals and more.   

~

If you or anyone you know has real estate goals for 2013, we’d love to help.  Please contact us at 502.458.2722 or jp@jpsold.com.