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Mistakes to Avoid When Buying a House
Buying a house is a life-changing event, so you have to be careful to dodge mistakes that could cause setbacks in the home-buying process.
In the beginning, you have to make sure not to hire the wrong agent. Just because someone might be a niece, nephew, friend, friend of a friend, or have any other connection with you, that doesn’t mean that person will work best for you. If you want the home-buying process to flow smoothly, you want to make sure your agent is communicative and dedicated to their work. Hiring an agent just because you may have a pre-established association with them doesn’t mean they’re the right agent to use, and a mistake like this can derail the process shortly after it begins. You shouldn’t feel obligated to work with someone just because you know them. The home-buying process is a fun, but serious task, and you want to have the most qualified professional on your side to guide you through it.
Although looking at houses is the most fun part of the process, you can’t jump into it right away. First, you have to figure out how much the bank will loan you for a mortgage and get pre-approved. If you visit some properties prior to your pre-approval, you may be disappointed to find out they are out of your price range. I understand you’re excited about house hunting, but getting pre-approved for a mortgage is an important task to accomplish before you start visiting houses. Plus, having a pre-approval is a sign of determination that will show sellers you are taking the process seriously, which will help you stand out from other potential buyers.
Similar to when you’re buying a car, never settle with the first “perfect” house you see, no matter how much you like it. If you do this, you’ll likely miss out on other possible houses that might have met your needs and interests. It’s recommended you keep an open mind about the several housing choices you have, instead of lunging at the first house that fits your criteria. I know the home-buying process isn’t something you want to prolong, and ending the process might be tempting if you find your dream house right away, but quickly attaching yourself to a house will likely do more harm than good, so visit a few houses before making your choice. You’ll feel a lot better having done so, and it’s always best to have multiple options.
Speaking of wanting to speed up the buying process, buyers might sometimes choose to skip the home inspection in order to make their offer more appealing to the seller, which the sellers will like if they’re trying to hide any problems. Foregoing the inspection is something you should not do. A home inspection is very important when it comes to buying a house because the inspector will go through the property to make sure everything is in working order. If you skip this step and it turns out the house needs repairs, you’ll have to spend money to fix these problems, on top of having already bought a house for hundreds of thousands of dollars. Please forgive the cliche, but this is a sort of don’t-judge-a-book-by-its-cover situation because, although you are drawn to the house based on the details that are more apparent, you need a professional to find if there’s something you would have normally missed in your walkthrough.
The real estate market is an unpredictable beast, and no matter how favorable it may look one day, you can never tell how it’s going to present itself the following day. Even if it looks like you’ll be paying a great deal on a house, you might feel compelled to wait and see if the price drops. While you may like playing the odds, waiting for a price reduction may result in hurting your chances on buying your preferred house, or even losing it to another buyer. The housing market is constantly changing, so leaving the possibility of a good price now for a better price later isn’t the wisest choice to make when dealing with something as big as a housing purchase, especially if there’s a chance of someone else swooping in and taking the house you wanted.
When you buy a house, one of the last things you’ll probably think about is selling it at some point down the road. However, considering this actually makes a big difference. When you look at a house, you have to think about the possibility of selling it later on in your life. After all, it’s better to be safe than sorry. You never know, you may need a bigger house to raise a family, maybe you’ll have to move because of a job transfer, or you may find yourself wanting to downsize. In life, anything can happen, and it’s this reason why you should think about the resale value of a house before you purchase it.
As a homebuyer, you want to find a house that’s as close to your liking as possible. While the prospect of searching for a new house is fun, you can’t let that excitement make you forget the important steps you have to take in order to prevent any mistakes from being made. There’s a lot of time that goes into the home-buying process, and diligence is key. If you work hard to evade any blunders that may get in the way of your search for a new house, your commitment to the process will be very worthwhile.
Come back next week when we discuss the mistakes to avoid when selling a house!
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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Why You Should Hire a Buyer’s Agent
Believe it or not, there are some people who might choose to search for a new house without assistance from a real estate professional. While it may seem like the ideal route, I want to explain why working with a buyer’s agent is the way to go. There is a lot of work involved when purchasing a new house, and a professional will be there to guide you through the intricacies as seamlessly as possible from your initial search, all the way through your closing.
When you’re buying a house, especially if this is your first time, you’ll want to have an agent with you who can answer whatever questions you may have. In the rare chance they’re not sure of the answer, they will find it for you and get back to you as soon as possible. Agents are very conscientious when it comes to keeping in touch with their clients, so if they have to get back to you on certain questions or have other bits of valuable information to share, you can be sure they will contact you in a timely fashion. The dedication of a realtor is the best tool you can have when looking for a house, so working with a professional who can help make the home buying process simpler is a huge benefit.
Speaking of questions, you’ll probably have a few regarding the paperwork when it comes time to close on a house. I know “paperwork” is a word that causes some apprehension, but for a task as big as buying a house, it’s a necessary evil. While going through the paperwork, you’ll want to have an agent in case you require any help. If you need clarification on anything mentioned in the documents, you’ll be thankful your agent will be with you to help clear anything up because you want to make sure not to sign anything unless you have a full understanding of what’s been written. With everything the paperwork includes, it might be somewhat intimidating, but keep in mind that countless other people have gone through this same process, so you should have confidence that you’ll get through the procedure as well.
Regarding the home’s cost, agents are up to date and experts in the market, so they know the current price trends and the true value of a house. With a professional backing you up, they can help negotiate with the selling party a price that will work for both you and the seller. Because buying a house is one of the most important financial decisions you’ll ever make, you want to be sure you pay a fair price and don’t get taken advantage of by the selling party. The negotiation process can be very tricky, so having a buyer’s agent at the table to discuss a fair deal with the seller’s agent is essential for a smooth transaction.
When you have an agent, they will be able to assist you in narrowing down your choice of houses to the ones that fit your financial situation. Given your busy schedule, there isn’t any point in visiting houses that are out of your price range, no matter how nice they look, so using an agent will help you focus on which houses are more financially attainable. Besides finding houses that fit your budget, agents will also get to know what kind of features you’re looking for in a house. With an agent knowing the cost and qualities you want for your new house, they may find a suitable house you overlooked in your search, a house that may even become one of your final choices.
Moving into a new house is one of the best moments you can experience. But, to get there, you have to make sure you avoid difficulties during the home buying process. With an agent involved, they will work hard to get you through the transaction as easily as possible, and you’ll be happy to have them.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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Why You Should Hire a Real Estate Agent to Help Sell Your House
Selling a house is one of the biggest undertakings you can face in your life, which is something I’ve been saying a lot, lately. But, it’s one of those things you really need to realize when you’re about to list your home. As you’re getting ready to do so, you also have to think about contacting an agent. An agent will be a tremendous help during the selling process, so here are some reasons why you should hire a real estate professional.
When you hire an agent, you won’t need to worry about having your time consumed by the responsibility of being available when a potential buyer wishes to see your house. With an agent, you’ll have a lot of assistance because they will be showing the house for you. Besides personal showings, agents will be able to host open houses where buyers and other agents are invited to tour your house. This way, you’ll be able to get multiple potential buyers in your house at one time and obtain a better idea of how much interest your house is generating throughout the community.
When you have an agent on your team, they will be able to gather feedback from the potential buyers about your home. Normally, the buyers will provide their opinions to their agent, who will relay that information to your agent, who will then bring that information to you. This way, any awkwardness is left on the sidelines, and you will be able to receive honest opinions from the buyers because they won’t have the pressure of having to give their feedback directly to you.
Marketing your home properly is extremely important. By having an agent on your team, they will be able to attract attention to your house through their list of contacts and marketing capabilities. As with any line of business, contacts are everything, so if you want to have the best chance at selling your house, hiring an agent with many contacts will give you a shot at meeting the results you’re looking for, and in a timely manner as well. With the technology we have today, the ability to reach hundreds of people is at our fingertips, and an agent will use that digital advantage to notify consumers that your house is on the market and waiting for an offer. Given how most people today use the Internet as their main tool for researching real estate, it’s a no-brainer your agent will work to attract buyers through computers, mobile phones, tablets, and other devices. With online tools, such as MLS websites and social media, your agent is likely to find a wealth of interested buyers. But, although we’re living in a world that’s becoming increasing electronic, additional marketing tools, such as flyers, brochures, and newspaper advertisements still hold power in the real estate industry.
Determining your house’s selling price should be left up to an experienced professional. You will most likely harbor great memories of your house and price it to what you believe the value is based on your emotional attachment. The seller’s agent will come with comps of similar houses in your area, which will show the length of time these homes have been on the market, how much they are listed for, and how much they sold for. All of this will help when determining a realistic market price. Additionally, when you have an agent working with you, they will be able to add positivity to any negative feedback potential buyers may have about the property, and will possibly help with a resolve on a situation.
Real estate agents are professionals, so they know what they’re doing and won’t steer you wrong. They are at your service and will assist you however they can. When selling something as significant as a house, placing it in the care of a real estate professional is the first step to a successful process. If you want to have the best experience you can when selling your house, do yourself a huge favor and hire an agent.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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House-Hunting Lunch-Break “To-Dos”
If you’re a home shopper, you’re probably overwhelmed by all of the tasks that go into such an undertaking. Buying a home is stressful, but once you finally sign the closing papers, all of that hard work feels very rewarding. As you’re looking for a home with your agent, there are a few tasks you can easily complete on your own during your lunch break. I know you already have a lot to think about when buying a home, but contributing some daily attention to these tasks will help you in the long run.
When you have an idea of where you want to look for a home, go through the housing inventory online and see what homes are in your desired area that you may be interested in visiting. If you conduct frequent checks of the inventory, you’ll stay up to date with what’s available, and you will be able to add any homes to your list that may be new on the market, while also taking homes off your list that may come off the market. When keeping in mind which homes you may want to consider, this will show your realtor that you are committed to your search.
You can drive through some of the streets and ride past the homes you’re interested in to see how they look in the beauty of autumn. Winter is creeping up on us, so before the snowy weather hits, take some time to look for homes in the crisp weather and colorful foliage. I’m not saying to stop your car right in front of a house and look like a weirdo, but simply cruise past it to get a glimpse of how it looks up close.
You should also check out some community hotspots, as this will help you get to know the kind of people that inhabit a certain town. If you go to a location such as a park or library, you won’t only see the types of people who live in the area, but will also get an idea of the kinds of programs and activities the community offers.
While seeing different houses and visiting their respective towns, it can also be fun to walk around and visit the local businesses, such as a bakery or coffee shop, to see what the small-town economy has to offer. Although you shouldn’t let the tempting aroma of a bakery persuade you into buying a home in a certain town, you can’t deny having a small, family-owned bakery nearby your house is a perk.
Of course, you can also use social media as a way to look for a house. If you go onto any of these types of pages for a real estate company, you might find that they are giving attention to a certain house that may be worth checking out. At Better Homes and Gardens Rand Realty, they do the weekly hashtag, #FreshListingFriday, where they pick a newly listed house in one of the counties they serve and give a shoutout to it on their Facebook and Twitter pages. You can also go on their Pinterest page, where you will find some eye-catching decorating ideas that you may want to consider for your new house.
I know you have a busy schedule and don’t need more on your plate, but if you’re in the middle of looking for a new house, these are a few practices to which you should dedicate some time. When involving yourself in a real estate transaction, you have to be proactive because this is going to be one of the biggest financial decisions you will ever make. If you take these steps, your search for a new house will be less arduous and a lot more fun.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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Best Mobile Apps for Buying a House
Home Set of apps icons. Vector illustration.
Let’s face it, our world has become, and continues to become, increasingly technological, and we must be thankful for the mobile tools that help make stressful and challenging tasks a little less so. There are so many tech-savvy methods you can use to help guide yourself through this process, that buying a house can become a fun challenge. With your mobile devices, there is a plethora of apps you can download that will help you when you’re buying a house.
If you’re curious about the local real estate market, one app that you might want to consider using is Doorsteps Swipe. Basically, you receive a photo and address of the property, and then you swipe left or right to indicate whether or not you liked the house. Sounds fun, right? After you have saved five listings, you will receive a summary of information pertaining to what you liked. I like this app because it educates you about houses and helps build you into a buyer who feels comfortable navigating the market.
As you begin your venture in the housing market, you should do your best to familiarize yourself with real estate terms, and you can achieve this with the Barron’s Dictionary of Real Estate Terms app. This app offers the user about 3,000 real estate terms that will assist in keeping you up to speed with the workings of the real estate industry. Brushing up on these terms will help you become more knowledgeable of how real estate works.
Homesnap is another great app that allows for the user to take a photo of any house with their smartphone and instantly receive details of the property, such as its value, number of bathrooms and bedrooms, local school ratings, and much more. If the house is on the market, you may also be able to view interior photos. What’s great about this app is how accurate and timely it is, which it achieves by employing the same listing information realtors use. When looking at a particular house, you want to make sure you have as much information as possible about the property, so having this app will certainly provide you with the details you need to consider whether or not a certain house will be a possibility.
Although buying a house takes a lot of work, the fact that we have information at our fingertips to help us with the process is a comforting thought. You should brush up on a few of these apps and decide which ones will work best for you. You might even want to ask your agent if they have any favorite apps to recommend. There is so much help via technology available to us, so using it during one of the biggest purchases of your life is a must.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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So What’s Going on in the Morris County Real Estate Market?: The Rand Quarterly Market Report for 2015Q3
The Morris County housing market softened a bit in the third quarter, with sales up modestly but prices a little flat. Over the longer-term, we’re seeing sustained increases in buyer demand that are likely to have a meaningful impact on prices by 2016.
Sales. Morris County sales were up modestly in the second quarter, rising 5.7%. This marked the fourth straight quarter with year-over-year sales growth, capping a rolling year where sales were up 9.4%. Indeed, the 1,768 quarterly sales and the 5,492 yearly sales represented the highest totals since the height of the seller’s market. Clearly, buyer demand in Morris remains robust.
Prices. This continued surge in sales activity, though, has not had a sustained impact on pricing. We’ve seen Morris pricing bouncing around for the last year or so – up one quarter, down the next. And this was a down quarter, with the average falling 2.6% and the median down 1.6%. Over the longer-term, though, the trend is encouraging, with the rolling year average price up 1.5% and the median up 1.3%. If buyer demand continues to strengthen, it’s just a matter of time before we see more meaningful price appreciation.
Negotiability. The negotiability indicators – the amount of time sold homes were on the market, and the rate at which sellers were able to retain their full asking price – were basically flat. The days-on-market was up a tick for the quarter, but down for the year. And the listing retention rate was up just slightly for both the quarter and the year.
Going forward, we expect that the Morris County market will continue to grow through the end of the year and into 2016. With homes still at historically affordable prices, interest rates low, and a generally improving economy, we believe that buyer demand will stay strong and drive more meaningful price appreciation by the spring market of next year.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
So What’s Going on in the Passaic County Real Estate Market?: The Rand Quarterly Market Report for 2015Q3
The Passaic County housing market surged in the third quarter of 2015, with sales activity up dramatically but prices relatively flat. If we continue to see these kinds of increases in buyer demand, though, it’s only a matter of time before Passaic experiences meaningful price appreciation.
Sales. Passaic sales were up dramatically in the second quarter, rising 22.3% from last year, marking the fourth straight quarter of year-over-year sales growth. Indeed, we’ve now seen sustained increases in buyer demand for over four years, with quarterly sales up in 16 out of the last 18 quarters. The 932 quarterly sales marked the highest total since the height of the seller’s market, and the 2,898 rolling year sales were more than in any calendar year since 2006.
Prices. Even with this continued increase in buyer demand, though, we’re not yet seeing a meaningful sustained impact on pricing. For the quarter, pricing was mixed, with the average down 0.2% and the median up 3.3%. For the year, the results are a little more encouraging, with average up just a tick and the median up almost 2%. Passaic is still struggling to shake off the after-effects of the market correction, with pricing still at a non-inflation-adjusted 2003 level.
Negotiability. The negotiability indicators did not reflect what we would expect to be the tightening effects of increased buyer demand. The days-on-market were up over 5% in the quarter, indicating that homes are taking a little longer to sell. And the listing retention rate fell pretty sharply, down to 96.3%, signaling that sellers are discounting more heavily to get into contract.
Going forward, we expect that Passaic County buyer demand will stay strong through the end of the year, but not necessarily at the rate of growth that we’re seeing right now. But the economic fundamentals are good: homes are priced at attractive levels, rates are near historic lows, and the economy is relatively stable. If buyer demand continues to stay at its current rates, we are bound to see some meaningful price appreciation in 2016.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
So What’s Going on in the Bergen County Real Estate Market?: The Rand Quarterly Market Report for 2015Q3
The Bergen County housing market continued to gain momentum in the third quarter of 2015, with sales up sharply and modest price growth. If buyer demand continues to grow, it’s only a matter of time before we start seeing more meaningful price appreciation.
Sales. Bergen single-family home sales surged again in the third quarter, rising 14.1% for the quarter and now up 9.0% for the rolling year. This marked the fourth straight quarter that year-over-year sales were up, and the second time we saw a double-digit increase. Indeed, we are starting to see transactions at “seller market” levels, with the 5,999 rolling year sales higher than any full calendar year since 2006.
Prices. With these sustained increases in buyer demand, we’re also seeing some upward pressure on pricing. Prices were up for the quarter, rising 2.5% both on average and at the median. We’re also starting to see meaningful price appreciation over the longer-term, with the rolling year average sales price up 2.3%. Overall, the market has recovered from the bottom, with the $572,775 rolling year average price higher than the calendar year price for any year since the market correction in 2008.
Negotiability. The negotiability indicators were a little mixed. Homes were getting into contract more quickly, with the days-on-market falling 7.7% for the quarter. But the listing retention rate fell a bit to 96.2%, indicating that sellers are not able to command offers closer to their asking price.
Condos & Coops. The Bergen condo market was up, but not as sharply as the single-family market. Quarterly sales were up 4.6%, but pricing was mixed. For the year, sales are basically flat (up 1.2%), and pricing is up just a tick. We expect that if the single-family market takes off, the condo market will follow.
Going forward, we remain bullish that the Bergen County housing market is moving in the right direction. Buyer demand is strong, which is driving up sales and starting to have a meaningful impact on pricing. With pricing close to 2004 levels, rates near historic lows, and the economy relatively stable, we expect demand to stay strong through the end of the year and into 2016.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
So What’s Going on in the Dutchess County Real Estate Market?: The Rand Quarterly Market Report for 2015Q3
The Dutchess County housing market continued to enjoy sustained levels of increasing sales activity, but we’re still seeing a difficult pricing environment. These levels of buyer demand are bound to push up prices eventually, but we understand if Dutchess homeowners and sellers are getting impatient.
Sales. Dutchess County single-family home sales surged in the second quarter, with transactions up 47.2% from last year. Indeed, the 667 quarterly sales represented the highest total since the third quarter of 2006, at the height of the last seller’s market. Similarly, the 2,080 rolling year sales is the highest total we have seen since 2007. For comparison, note that Dutchess closed about 1,500 sales in all of 2008. .
Prices. Even with this torrid activity, pricing was still soft, with the average down 5.6%, the median down 0.8%%, and the price-per-square foot falling almost 20%. Over the longer term, we’re seeing some pricing challenges, with the average price down about 3% over the past 12 months. We keep expecting Dutchess prices to rebound, especially at these torrid levels of sales activity, but full recovery from the effects of the market correction remains elusive.
Negotiability. The negotiability indicators also show that Dutchess sellers are still struggling to get some leverage. Homes were selling for a little closer to the asking price, with the listing retention rate up above 95%. And the days-on-market fell just a bit, indicating that homes are selling a little more quickly.
Condominiums. The condo market was similarly robust, with sales up 44.2%. Unfortunately, we saw the same pricing dynamic, with prices down significantly across the board.
Going forward, we believe that Dutchess is poised for price appreciation, but we remain puzzled as to why it hasn’t happened yet. Basic economics tells us that increased demand coupled with stable inventory drives up prices, so we remain hopeful that we will see meaningful price appreciation by 2016.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
So What’s Going on in the Orange County Real Estate Market?: The Rand Quarterly Market Report for 2015Q3
The Orange County housing market continued to surge in the third quarter, with sales up dramatically in both single-family and condo markets. Pricing was more mixed, but it’s only a matter of time before these sustained levels of buyer demand drive meaningful price appreciation.
Sales. Orange County sales spiked again in the third quarter, rising 31.5% from last year and over 25% for the rolling year. We have now seen sustained sales growth for more than three years, with transactions up four quarters in a row and 13 out of the last 14. Indeed, we are starting to see closings approaching “seller market levels,” with the 880 sales the highest since the third quarter of 2006, and the 2,714 yearlong sales the highest since 2007. To put this in perspective, we note that Orange closed about 1,200 yearly sales in each 2009, 2010, 2011, and 2012.
Prices. Prices were mixed, but “mixed” is a lot better than prices have been in the past few years. Indeed, Orange showed small signs of progress, with the average up 1.4%, the median down 0.4%, and the price-per-square foot up 1.6%. Prices are still down for the year, but at least the trajectory is pointing upward. We believe that prices have fallen as far as they will go, down to 2002-03 levels.
Negotiability. The negotiability indicators were both relatively flat: homes are selling a little more quickly, down from 202 days to 190 days, and are also selling for a bit closer to the asking price, with the listing retention rate up to 95.5%. We expect that sellers will continue to gain leverage as the market tightens.
Condominiums. The condo market simply exploded in the third quarter, with sales up more than 50%. Even with that surge in activity, though, we are still seeing significant downward pressure on Orange condo pricing, because the gap between single-family and condo prices is narrow enough to draw buyers into buying homes instead of condos.
Going forward, we believe that Orange County will not be able to sustain its current torrid level of sales growth, especially now that sales are close to seller market levels. But we still see significant room for price appreciation, given that prices are at attractive 2003 levels and rates are still near historic lows. Even with activity leveling off, we expect that demand will stay strong, and that will start to push prices up by 2016.
To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
