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What to Expect in 2016’s Real-Estate Industry
It’s hard to believe 2015 is already at a close. But it’s happening, and everyone’s getting ready for the new year and preparing their resolutions. In the real-estate industry, we’re excited for the trends that are predicted to take place in the coming year. This is a business that’s used to big and rapid changes, so we’re looking forward to what the new year has in store for us.
As we enter the new year, there are plenty of agents out there who want to help you with any real estate to-dos you may have.
“2016 looks to be a very lucrative year for real estate,” said Frank DiCocco, manager of Better Homes and Gardens Rand Realty’s office in Closter/Alpine, New Jersey. “There is plenty of business out there for our agents. Agents need to hone their skills, and put themselves out there. The years of sellers and buyers falling in our lap are over. It’s the presence, so let’s make one!”
There is also going to be a potential increase in affordable single-family housing. Before 2016, builders were working more on higher-priced homes, which didn’t meet the financial criteria of entry-level buyers. However, with a decrease in new-home prices and improving credit access, builders will be focusing more on constructing homes that are more affordable for new homebuyers. If you have a family, this news couldn’t be better, so if you’re looking for a new home in 2016, keep searching for low home prices throughout the year to see if any fit your financial requirements.
One source’s prediction says home prices may start to decrease, which will influence potential buyers to revisit the market and see if there are any properties they will be able to afford. A lowered price is the best thing a buyer could be given, so 2016 is a year where you’ll want to take advantage of the lowered prices and search for your dream home. With this, you must keep an eye on the market, and also consult with your agent about their views on the industry. Once you have a better idea of the market’s current state, it will be time to dive in.
Although some people believe home prices will lower in 2016, Better Homes and Gardens Rand Realty’s third-quarter market report details that home prices will rise in the new year, therefore creating a seller’s market. Because of these increased prices, this will cause more home sellers to list their properties. Home sellers will want to receive as much money as possible from their property, so they will be eager to place their homes on the market.
The real estate industry is more technological than it has ever been before. With smartphones, tablets, computers, and social media, we are given countless options when it comes to exploring potential real-estate investments. It has become difficult to think how we would have managed this in the past without the availability of these digital-age tools. However, despite the tremendous help modern technology provides for those searching for real estate, you can’t forget it’s the human touch that has been in the real-estate industry since the beginning. After all, you’ll be dealing with an agent the entire time, so it’s important to establish a friendly connection with them as you traverse through the ever-changing real estate market. Having someone to speak with who can provide firsthand knowledge of the real estate market is a wonderful service when buying or selling, so you should value the human factor as much as the technological one.
Parking has been an important factor for real-estate clients for decades. After all, who wants to buy a house without a proper place to park their car? However, it may be surprising to know parking will be seen as less of a concern among homebuyers in the new year. Lately, it has appeared an increasing number of buyers are forgoing cars and are instead using public transportation, cycling, and ride-sharing apps, such as Über. This is especially understandable for those looking to live in the city, seeing as parking normally costs extra and is rather difficult to find.
We will also see a greater solidification of generational buying trends. It has been evident lately that millennials make up a significant portion of current homebuyers, and that doesn’t show any sign of stopping. Nearly two million sales in 2015 involved millennial consumers, which equals about one-third of homebuyers. Despite the attention millennials are receiving in regard to the housing market, it should be noted there are two other demographics that will make an impact in the 2016 housing market: Generation Xers recovering from the financial crisis, and retiring baby-boomers who are looking to downsize. With these three very different generations looking for homes in the new year, we will see a surge in both the buying and selling markets, which will surely make for an interesting and lucrative year in the real estate industry.
A new year includes new beginnings, so whether you’re planning on buying or selling a home, these are a few trends you’ll want to keep track of. The start of a new year is a perfect time to be optimistic, so let that optimism carry you throughout the year as you work to accomplish any real estate goals you may have. With that being said, I wish you all a wonderful and prosperous 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.
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Tips for Renting Out Your Home
Sometimes, if people try to sell their home, they may have trouble attracting a buyer. If you’re one of these people, you’re probably wondering what you’re going to do about it. Maybe you plan on consulting a realtor to change around the marketing, or maybe you’ll choose to take your home off the market for a bit. But, have you ever thought about putting your house up for rent? If you don’t have any interested buyers at the moment, renting out your home can be the next best step. It’s worth a try, so here are some tips on how to prep your home for renters.
When trying to estimate a rental price, you have to realize the market is what establishes it. If you set the price too high, you’ll discourage potential renter from approaching you and expressing interest in the property. Determining the rental price isn’t an arduous task because all you have to do is talk with your realtor and conduct some research on the market, which will show you what prices other rental homes are asking for in your area. If you wish to find a renter in a timely fashion, it’s important to have a fair market price, not a price reflecting how much you think your home is worth. In order to have success when attracting renters, this is something you must remember.
You must also realize, as a landlord, you’re going to have many responsibilities with the property. Although you have the benefits of an occupied home warding off vandals and earning some income from the renters, there are many things you’ll have to focus on in order for your property to stay in the best condition. Maintenance is key to not only keeping your renters pleased with the property, but also to make sure your property remains in top condition for when you finally attract an interested buyer.
It’s important to walk through your home and check for any issues you may have to fix before you have any potential renters look at it. Just as if you’re getting your home ready for a buyer, you have to do the exact same thing for a renter. Check the plumbing, the heating, the electricity, and other amenities the renters will need during their rental period. If you aren’t able to sell the house, renters are the next best option, so you don’t want to drive them away with problems that should have been fixed before advertising your rental property to the public.
When you go through your home to prepare for the renters, make a list of the furnishings you would like to take for yourself and which ones you don’t mind leaving with the renters. Even if the renters are responsible people, you never know if an accident might occur with a favorite furnishing of yours that is left in the house, so if you want that piece of furniture for your new home, you should definitely take it with you before the renters move in. After you pick out the furnishings you want, hire a moving company to take what you want for your new home.
Take some time to find the best tenants. You have to make sure you rent out your property to people you know will take care of and respect your home. When you think you have found a possible tenant, your realtor will put them through a screening process and ask them to complete an application listing their name, employers, past landlords, and references. Once your agent gets in touch with the renter’s contacts, you will have a better idea of who the renter is and if you would like to approve their application. If you rent out your house to the wrong person, this be will pose a risk to your home suffering damage and will have you pulling out your hair with stress. With the hard work it comes from being a landlord, stress is something you don’t need.
If you’re having trouble selling your home, don’t fret over this bump in the road; you still have the option to rent it out. However, you have to remember there’s a considerable amount of preparation you must take to prepare for the renters to move in, just as if you were selling your home to a buyer. At least if you have people renting out your home, there will be less time the house is unoccupied. If you have a responsible individual renting out your home, you will know your home is in good hands until the right buyer comes along.
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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Things to Consider When Buying a Vacation Home
Winter begins next week, and some of you are probably wishing you had a vacation home, either to spend some time at your favorite ski resort or escape to a warmer climate to evade the bitter chill. Think about it, if you leave your home for the winter, you won’t have to worry about shoveling, driving on icy roads, and other hassles that come with the season. No matter your reasons for pursuing a vacation home, there are a several factors you have to focus on in order to make the right purchase for your getaway spot.
Although this is very obvious, it’s important that you visit your desired area before you consider buying a home in that location. Don’t just go to a certain area once and automatically think you want to have a home there; visit the area a few times in order to get a complete feel for the community. After that, you’ll have a clearer idea of whether or not you want to buy a vacation home. When you visit a vacation area, use that time to rent a place for yourself to see how much you like spending time in that location. Once you do, you will know if that area is the type of place in which you will be able to spend a few months without getting bored. When you know for sure this is a place where you would like to buy a vacation home, hire a realtor. Some companies even have relocation teams to assists clients with purchases such as these.
Seeing as we’re talking about vacation homes, you’re not going to be there all year. Even if you’re not there, you should think about hiring someone to manage the property. Yes, it will cost some extra money, but it will be worth it to have someone maintain the home in case there are any damages or small fixes that need to be taken care of. A vacation home is a place to which you want to escape for what will possibly be an annual vacation, so you want to make sure you have someone to watch over the property when you’re not there, so when it’s time to visit for your vacation, the house will be all set for your extended stay.
Speaking of management fees, there are other costs you’ll have to think about when owning a vacation home. You should know that the costs involved in such a home will be just like those included in your regular home. These costs include a mortgage, electricity, heating, water, trash removal, and other services. You’ll be paying for two homes, so you have to make sure you have enough to cover the costs that will go into maintaining a vacation home. Before starting your search for a vacation home, take some time to review your finances so you can be certain you will be able to afford such a home. That way, you’ll see what kind of vacation homes you can afford, or if you should wait awhile before buying one.
When investing in a vacation home, you should have an idea of how often you will be staying there. If you know you’ll be spending time there every year, or if you know you’ll be renting it out to others when you’re not occupying the house, then this will be a reasonable purchase. If you know you or others won’t be in there for lengthy periods of time, you may want to reconsider making a purchase as big as this. After all, what’s the point of buying a vacation home if you or anyone else won’t be going there for any vacations? You should purchase a vacation home in a place you know you’ll want to keep going back to. This way, you know you will be getting your money’s worth.
It will work in your favor to purchase a vacation home in an area you enjoy that also has tourist appeal for more than one season. This way, if you intend to receive extra income by renting out your house to others, you’ll have the season where you spend your time in the home, while tourists can rent and enjoy it for a different season. Given how a vacation home is a significant purchase, you might as well use as an advantage to earn some money. However, if you plan on renting out your home at certain times of the year, make sure you check the rules of the property before you buy it to make sure it allows you to offer the space to renters. The ability to permit renters in your home may be one of the benefits you hope your vacation home offers, so conduct some research on that aspect when looking at your possible homes.
Having a vacation home is a wonderful luxury, but there are several important steps you must take before you finally purchase such a house. I’m sure you look forward to your yearly vacations, and having your own place to escape to will save you the hassle of reserving a hotel room, so make sure your potential vacation home meets your requirements. Once you purchase your dream vacation home, you’ll be eagerly marking your calendar for your next getaway.
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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How to Set the Best Price for Your House
Establishing a price is one of the most important aspects of the home-selling process. You want to receive as much money as you can for your property, but if you price it too high, you run the risk of driving buyers away. When setting a price, it would be wise to seek advice from a real estate agent, someone who knows the market and can gauge what would be an appropriate price. Although you’ll be using a professional, you’ll probably feel like having some input regarding the price, so here are some tips on how to successfully price your house.
“Setting the right price is like a perfect balancing act between the seller and the prospective buyers,” said Elizabeth Whiston, real estate salesperson for Better Homes and Gardens Rand Realty’s office in New Windsor, NY. “Hopefully, the price is acceptable. But, if the seller would like to start at a higher point and it is not totally unreasonable, I would list their property at the higher price. I would have an open house the first weekend after taking the listing with the understanding that if no one shows up for the open house and no one has called about the property, the price should be adjusted.”
Before you settle on a price, it’s important to study the housing market, which will tell you what you need to know about current real estate trends. A working knowledge of the market is one of the best tools you can use when determining an acceptable price. Of course, your agent will have a lot of information to offer regarding the market, due to their considerable experience in the real estate industry. Because of the kaleidoscopic nature of the housing market, it’s recommended you seek the help of an agent to assist you with pricing because they will always be on top of the present changes within the industry.
In terms of agents, it would be more beneficial to use one who’s local. That way, you will be working with someone who is familiar with your neighborhood and those around it, and they will be able to compare the prices from other properties on sale and gauge what some buyers are currently paying. A local agent will have an extensive knowledge of what houses typically sell for in a given area, so they will be able to provide you with a price range that may be attractive to local buyers.
It will also help to be patient. After all, it’s a virtue. Don’t rush your house to the market with the highest price you think the property is worth. If you use a high price first, buyers will feel apprehensive about considering your house. This will cause your property to stay on the market longer. The trick is to wait until you and your agent have figured out an appropriate price for your house, and then place it on the market. There’s always room for your agent to negotiate if a potential buyer thinks the asking price is still a little high, but at least it will look better if you establish a realistic price right at the beginning, instead of trying your luck first with a price that won’t be appealing to buyers.
Setting a price for your house isn’t just important, but it can also be fairly tricky. You may be split between pricing the house for however much you think it’s worth and how much it’s actually worth. The price you set for your house is going to either make or break the success of the sale, so by using your and your agent’s combined knowledge of the real estate market, you can figure out the best possible price for your house. Like a fish to a worm, once you hook the potential buyers with an attractive price, you’ll start reeling them in!
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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Mistakes to Avoid When Selling a House
Last week, we discussed the mistakes you should sidestep when buying a house. This week, we’ll transition to the other end of the spectrum and talk about the mistakes to dodge when selling a house. With this task being as significant as buying a house, you have to make sure to be every bit as diligent when you place your house on the market.
Curb appeal is essential. As soon as a potential buyer drives up to your property, you want them to feel excited about going into your house. But, if you don’t spruce up the exterior, it may turn away the buyer immediately, and you don’t want a buyer skipping your house before they even place a foot in the door. By neglecting to improve your curb appeal, it may send the buyers a message that you don’t upkeep your property on a regular basis, not just on the outside, but also on the inside. You’ve heard that first impressions are everything when it comes to meeting new people, and this notion applies just as strongly when it comes to properly maintaining your house for a buyer.
Never withhold any information from the buyer, such as your house having issues with pest infestations or leaking pipes. You should always make sure your agent is aware of any and all issues so they can disclose that information to the buyer. Place yourself in the shoes of the buyer and think to yourself that you wouldn’t want a seller keeping any important information to themselves if you were trying to purchase a house. If you choose to keep some details to yourself about the house’s faults, you’re setting yourself up for a very rocky negotiation, and even some possible legal troubles. The final buyer is putting a considerable amount of money into your house, and it will be very unfair to them if they are not given all of the necessary information before making an informed decision on your house.
If you have a pet or child, you know they’re prone to creating a mess every so often. However, you want to make sure your house is clean before an open house or a private showing. It’s important the buyers are able to envision themselves living in the house, but if there is a mess that gives the hint of pets or children, it will take the buyers out of their visualization. When you take your children out of the house during an open house or private showing, either take your pet with you, or place it somewhere in the house where it won’t be in the way of the agent and buyer. With these buyers taking the time to visit your house, it’s your responsibility to clean the house so they can see the house appearing at its best.
Speaking of buyers envisioning themselves in your house, this will be easier for them if you de-clutter your house. When you forego getting rid of your house’s clutter, the buyer won’t get a clear idea of the exact space a certain part of your room may have, such as a buyer taking a look at your closet, but not knowing exactly how the space looks because of your clothing taking up too much room. Although you’re still living in the house when it’s being shown, the buyers don’t want to be constantly reminded of that fact as they are looking around at someone else’s house, so remove any clutter that may prevent a buyer’s ability to imagine themselves in the home. De-cluttering will also allow a buyer to move around more freely without the worry of disturbing anything.
As far as pricing is concerned, this is probably the biggest pitfall of the home-selling process. You must realize you and your buyer are going to view the house’s price differently. Seeing as you don’t want to set a price too high in the beginning and turn away buyers, use your agent to help figure out a realistic market price that will attract buyers.
When you’re selling a house, you want to make sure everything goes right because you’re parting with something that has been an important part of your life. I know these mistakes may be worrisome, but if you take your time during the selling process and seek help where you need it, you’ll be fine. Just collaborate with your agent, establish the best course of action, and sell, sell, sell!
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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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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Removing the Mysteries Behind Co-Ops and How They Work
“Co-op,” which is short for “housing cooperative,” is one of those real estate terms that I have heard about in passing, but never really had a full understanding of what it meant. I knew a co-op was some kind of apartment, but that’s about it. If you have never owned a co-op, there’s the possibility that your understanding of what it is might be a little vague. This week, we will talk about what a co-op is and the pros and cons of living in one. Afterwards, you will leave here with an extra nugget of useful real estate knowledge!
Unlike a condominium, a co-op is owned by a corporation, which means that you’re not buying actual property, but are instead buying shares of the corporation. Typically, the size of your apartment correlates with how many shares you have bought. Because everyone who lives in a co-op owns shares within the corporation, they are usually concerned about who the building does and does not allow to live there. If you don’t meet the standards and requirements set by the co-op board, then you will not be given an apartment.
Now that you have an understanding of what a co-op is, we will now go over the three types. Before you look into any co-op, it’s important that you know the differences between each type. First, there are market-rate co-ops, which are treated similar to most standard residential properties. If you live in this type of co-op, you are permitted to sell your shares whenever you want and for how much money you want.
The second kind is a limited equity co-op, which is mostly meant to attract those who are looking for affordable housing. For these co-ops, there is a limit on how much equity you can earn in your home, and this prevents you from selling your share for a considerable profit. This is meant to help the co-op communities remain affordable.
The third type of co-op is group equity, which is also known as zero equity. In these co-ops, you don’t gain any equity in your home, but instead pay rental rates that are below market value.
Of course, whenever you look for new housing, one of the things always on your mind is affordability, and when you consider a co-op, affordability is possible because, compared to a condo, co-ops are usually less expensive. When you live in a larger co-op, you won’t have any responsibilities regarding upkeep. In these co-ops, a paid crew takes care of all maintenance, repairs, and security. It is for this reason that older buyers are drawn to the bigger co-ops because they know they won’t have to stress over taking care of the building’s exterior. However, smaller co-ops are usually self-managed, so you handle things like shoveling snow, but benefit from lower maintenance costs. Both large and small co-ops have their perks, so choose whichever size works best for you.
A main detractor of trying to move into a co-op is getting through the approval process. Before the co-op board hands you your keys, you have to be interviewed and provide documentation that may include tax records from the past several years. Similar to if you were looking to move into a regular house, doing so for a co-op has its own share of work.
If you have dreamt about moving into a new space with the desire to renovate, it won’t be easy if you move into a co-op. In this scenario, you have to discuss possible renovations with the board and see if your plans meet their approval. After going through the interviews with the board when trying to get accepted into the building, I’m sure one of the last things you want to do is go in front of the board for more discourse.
Although co-ops are mostly found in cities, one of the best parts about them is that they come in numerous sizes and types, such as single-family homes, student housing, senior housing, garden apartment, special-needs housing, and more. Whatever you desire in a co-op, odds are that you’ll find one that will suit you. With the many options you have, your co-op search will be easier and more fun.
Now that you have a better understanding of what a co-op is, you’ll know what to look for if you ever consider moving into one. Co-ops have their benefits and drawbacks, so you have to think carefully about what exactly you want yours to include. Going forward, if you ever want to move, you will feel comfortable adding a co-op to your list of possibilities because of what you have learned. Knowledge is great, isn’t it?
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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Are We In a Buyer’s or Seller’s Housing Market?
The real estate industry is constantly going through changes, and that includes the climate of the market. If there is high inventory and low prices, you can bet that you are in a buyer’s market, and if there’s low inventory and high prices, you can be sure that you’re in a seller’s market. In the U.S., however, the type of market varies by location. Because of the size of the U.S., some areas might be displaying traits of a buyer’s market, and other places might be showing signs of a seller’s market. It all depends on where you live.
According to RealtyTrac, homes are selling for 108 percent of asking price on average in the Bay Area of California, as well as in Washington, D.C.; Cass County, North Dakota; and Winston-Salem, North Carolina. In these locations, sellers are receiving more than they originally asked for, which shows that there is a high demand for housing.
Then, there are areas, such as Atlanta, Baltimore, Pittsburgh, and St. Louis, where buyers have the most influence and sellers are receiving less than the asking price, and this is happening even though the number of homes on the market are limited.
According to RealtyTrac, less than a third of housing markets in the U.S. have homes that sell for above the asking price, 60 percent have homes selling for below the asking price, and only 14 percent of homes sell at their market value.
If you want further proof that the U.S. real estate industry can’t be pinned down to one kind of market over the other, there are also areas that have markets where the situation is on even ground between buyers and sellers. These places include the D.C. suburbs of Montgomery County, Maryland; Raleigh, North Carolina; the Phoenix metropolitan area; and Riverside County, California.
To give you an example of the areas around near where I live (the lower Hudson Valley and northern New Jersey), there is definitely a situation where there are certain counties that have markets that are more suitable for buyers, some that are better for sellers, and others that are great for both. Orange County is certainly a buyer’s market with its 30-percent sales increase of single-family homes from last year and a median sales price of $220,000. Dutchess County also has a relatively low median sales price, coming in at $249,600.00, but faired even better than Orange County in terms of sales for single-family homes, topping that region with a 21.4 percent increase. Putnam County experienced changes that have made it a decent market for both buyers and sellers, with sales having shown a considerable increase of 18.2 percent and prices displaying more consistency and a promise of growth.
The northern New Jersey counties near the lower Hudson Valley (Bergen, Morris, and Passaic), have been displaying wonderful activity within their markets. All three counties have enjoyed increases in sales and prices, and they also have the lowest amount of average days on market for their homes (ranging from 76-155 days), whereas Westchester, Rockland, Orange, Putnam, and Dutchess Counties in New York have homes that spend a higher average of days on the market (ranging from 170-218 days).
When you’re looking to buy a home, it’s always important to study the current housing market and see where you can get the best deal for a home. Each area has its own market that favors either the buyer, the seller, or both, so you should have an idea about what a certain market is going to offer you before you actually visit that area. As long as you stay on top of the market and use it as a valuable real estate tool, you will surely know where it is best to search for a home.
If you’re interested in Better Homes and Gardens Rand Realty’s full market report for the second quarter of 2015, you can find it here on our blog. The QMR includes a market overview and in-depth analyses pertaining to each county that Rand Realty covers.
To learn more about 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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