How Will the Fed's Recent Decision Influence the Market?

The Fed’s recent decision is going to have a big impact on our economy and real estate market. Here is everything you need to know.

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The Fed just announced a move that will have a big impact on sellers and buyers.

At the recent meeting on September 20th, the Fed decided to cut back their balance sheet. While this might sound boring compared to the usual news of Fed rate hikes, it’s actually a big deal.

The financial crisis we saw a decade ago caused the Fed to take emergency measures. So, they injected a huge amount of money into the economy by buying up various financial assets in an enormous sum.

These financial assets amounted to a sum of about 25% of the United States economy at that time. But now, the economy has recovered to the point where the Fed feels comfortable taking some of this money back.

As you can imagine, this is going to have a huge impact on our economy and real estate market. This change is going to put upward pressure on consumer borrowing costs such as mortgage rates.

This change is going to put upward pressure on consumer borrowing costs such as mortgage rates.

In other words, if you are thinking of buying a home you should know that the Fed’s most recent move will eventually make it more expensive to do so.

Also, sellers must be aware that this change could result in fewer interested buyers. This might lead to a decrease in prices, making it harder to sell.

However, this is not an immediate change. The rollback will be gradual, with the Fed taking back just $10 billion per month. Compared to the $4.5 trillion total that was borrowed originally, this is not a significant amount.

While the Fed’s move will not take effect immediately, you should act quickly if you have been thinking of buying or selling. Now is the time to make your move before the process of this change starts to escalate.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

A Few Things to Remember Before the Next Hurricane

As we continue to recover from Hurricane Irma, we’re making sure that next time a storm like this comes along we are prepared.

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We had a close call with Hurricane Irma. Although many of us lost power, we faired pretty well considering the scope of things. However, we realized that after this storm we need to be better prepared. There will be another storm like this someday. Maybe it will be in one year, maybe it will be in 10. Either way, we’ve got to be prepared. Here’s what we’ve got on our list:

1. Storm shutters. If you don’t already have impact windows, you need to get them.

2. Generators. Pick those up now while the lines are short. There are over 50,000 people without power right now, including some of us. A generator can help keep your food and your family cool at the very least.

3. Flood insurance. There are a lot of places where it’s optional, but for just a few hundred bucks it’s a worthwhile investment for anyone near flood zones.

4. A crank radio or solar-powered radio.

It’s time to get rid of any tree that could reach your home.

5. Trees. If you’ve got any kind of tree that can reach your house, it’s time to get rid of it if the storm didn’t do it for you already. These knocked over trees are the reason a lot of people lost power.

We were lucky to avoid the brunt of the damage, but we won’t be taking any chances next time. If you have any questions for us in the meantime or any real estate needs we can help fulfill, give us a call or send us an email. We look forward to hearing from you.

5 Reasons to Stop Renting

Why should you buy instead of rent? Today, I’ve got five key reasons why you should stop renting and start on the path of homeownership instead.

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Why should you buy instead of renting? Even if you think today’s market prices are a little too high, buying is still preferable over renting. There are five key reasons why this is the case.

1. You can do anything you want with the property. Renting a property makes it a lot more difficult to add personal touches or have much pride of ownership. Painting rooms, putting in flooring, or making other updates you would like are all things you won’t be able to do in a rental property. In a property that you own, however, all of these things and more are possible. When you buy a home instead of renting one, you are not only putting a personal touch into your living space, you’re also adding value.
2. The appreciation benefit. First-time homebuyers are typically going to be purchasing their home by using the FHA loan, which requires only a 3.5% down payment. Let’s say you’re buying your first home for $200,000. 3.5% of that is actually just $7,000. With that being the case, you’re really only paying $7,000 up front for a $200,000 investment. This works well to your advantage because of the leverage you have in terms of appreciation. You simply don’t get this kind of investment out of renting.
3. The mortgage stays the same. In even the past few years, rent has risen dramatically. However, if you get into a fixed-rate mortgage, you can be certain that your payment will stay the same. This will make it easier for you to budget on a monthly basis without worrying about uncertainties.
4. Forced savings. A large portion of your mortgage payment goes toward interest, but some does go towards the actual principal of the mortgage. As you pay down this interest, more money will be able to go towards principal in years to come. A way to help achieve this is by making just one extra payment a month. If we assume your payment is $1,000 a month, paying just an extra $1,000 per year will knock off approximately nine years from your mortgage.
5. The tax benefits. While this one isn’t as large a benefit as the others, it certainly acts as an added bonus on top of the other, additional factors we’ve discussed.

Now is the time to make the switch from renting to buying.

Prices may be up, but interest rates are down. Now is the time to make the switch from renting to buying.

If you have any other questions or would like more information, feel free to give me a call or send me an email.

3 Ways to Attract Higher Offers From Buyers

There are certain things that all buyers want to see in a home. Here are three of them.

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Home sellers have a lot more control over the home buying process than they think. There are certain things buyers typically want in a home which the sellers have control over. Here are three things that most of today’s buyers want:

1. Curb appeal. They want to be able to pull into the driveway with a sense of pride, and they want the first impressions of others to be the same. Good landscaping and groundskeeping are important. Planting grass right now is a good idea if you have any bare spots. It’s been raining so much you probably won’t have to water a lot.

2. Space. We have very few people who are looking for a smaller home. Most buyers, especially move-up buyers, are looking for extra space. Therefore, we need to maximize the space you already have. We do this by getting rid of all the knick knacks and extra furniture.

Very few people are looking for a smaller home.

3. Updates. This is probably the No.1 thing buyers are looking for. They aren’t necessarily looking for a brand-new home, but they are looking for pride of ownership. If you’ve updated the home consistently over the years, it will stand out in the buyer’s mind. Fixtures, counters, and flooring are all things you can replace that won’t break the bank, but will increase your final sale price.

If you have any questions for me about what else buyers in this market are looking for or if you’re interested in buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

How to Sell Your Home as a Pet Owner

There are a few things you need to do to best prepare a pet-occupied home for sale.

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A large number of homebuyers won't purchase a home unless it's a good fit for a pet. However, if you are selling a home and you have a pet of your own, it does still take a little extra care and effort to sell your home.

After all, pets are highly personal things. You may love your own pet, but the odor and damage they can cause to your home may be off-putting to someone else. 

We love our pets, but the odor and damage they cause might be off-putting to someone else.

When selling a home, it’s important to remember just that. Many Realtors will agree that the presence of a pet can cause a deal to fall through.

Thankfully, I’ve got three easy steps that can help prepare your pet-occupied home for sale.

1. Repair any damage caused by the pet. Things like scratched up carpet, tarnished floors, and yard damage can all lower a home’s appeal to buyers. By going through your property and taking care of these issues, you’ll be making a great improvement to its chance of selling. Any costs associated with the repairs will be made up in the returns you’ll get from having made them.
2. Eliminate pet odors. It’s easy to become desensitized to the smell of our own pets, but buyers won’t be. Consider hiring a professional to lift the scent out of carpets, rugs, furniture, and anything else that could be harboring foul odors. After that, bring in a trusted person to give you their completely honest opinion about whether or not the smell has persisted.
3. Remove the pet and all traces of it during showings. Having a pet or evidence of one can be a deterrent for some buyers. Some buyers may not be a fan of pets in general, and some could even be allergic. So, while it is hard to imagine someone not loving your pet as much as you do, what ultimately matters is getting your home sold.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Has Real Estate Gone Global?

In days past, real estate was a local business. However, with today’s resources and technology this has changed.

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Is real estate still a local business?

This question first occurred to me because of this great new listing I have in St. Pete. As many of you know, my office is primarily based out of Bradenton, but was brought to this listing for a number of different reasons. This got me thinking about that question I mentioned earlier.

In certain ways, real estate is still a local business. If you’re trying to buy a property, oftentimes you’ll want to go with a local agent who knows the area. But with today’s resources and technology, including the Internet, people can now look up the information that agents used to have to find. Things like the state of local schools, crime rates, and other aspects, are all within your reach.

When my own father was a broker back in the 70s and 80s, Realtors acted as gatekeepers for that sort of information. However, this is no longer the case.

This is why, personally, I don’t believe that selling a property is really a local business anymore. For example, my team recently had great success when a listing sold in just three hours to a couple living in Germany.

3-D videos and photography, as well as virtual walkthroughs like the one below, make it so that even buyers as far away as Germany are able to get a complete view of a property.

You may even have done online shopping yourself when it comes to searching for a home. Many websites, including our own, can help you do just that. That being said, when it comes to selling, professional teams like mine are more like marketing firms that happen to sell property. And getting your home shown to as many people as possible means going beyond local.

The client’s first agent, who had been a neighbor of theirs, simply wasn’t successful.

To illustrate this I’ve visited the property in St. Pete that first got me thinking about today’s question. Frankly, I’m not the first agent on this property. I’m the second agent, after the client’s first agent, who had been a neighbor of theirs, simply wasn’t successful.

The agent likely had too much investment in the property, because who moved in would directly impact their personal life. They were aware that whoever moved in would become their neighbor. Contrary to what many might expect, this agent’s local attachment prevented them from being successful with this property.

While it has a fabulous view of it, the property is not actually on the bay. This is great because it means that storms, winds, and tides won’t be an issue for the home’s deck. In addition, the home is over 4,000 square feet with five bedrooms and five bathrooms.  

To take a look at this amazing property check out the 3-D tour here or view below so you can see for yourself that real estate is no longer necessarily a local business. It’s got global reach, meaning that it’s more important to hire a marketing team that can present a property well as opposed to hiring one just because it’s local.

If you’re interested in this property, want any more information, or have any other questions, feel free to give us a call or send us an email. We look forward to talking to you soon.

Should You Consider Building a New Home or Remodeling One?

When you can’t find your dream home on the market, you have two options: find a remodel property, or launch a new construction project.

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Today I’m standing on the banks of the Manatee River. Behind me, there is a new construction project going on. I sold that property last year, and this project has got me wondering, “Should you consider building or a remodel if you can’t find the home of your dreams?

There are a lot of existing homes out there that just aren’t the right fit for buyers. If you haven’t been able to find the right home, there are a few things to consider before deciding on a new construction home or a remodel:

Which process would you enjoy the most: building a new home or remodeling one?

1. The buying process. If you decide to build your own home, that transaction involves a construction loan, which can take some time. On the other hand, you could buy an existing home and pay as you go while you remodel. Sometimes, that’s just a better fit financially.

2. Time. Can you wait around for a new build? I sold the property in the video over a year ago, and you can see that they still have some work to do. Sometimes, you just don’t have the time to wait for a new construction project.

3. Floor plan. Can you find the type of floor plan that you are looking for in a remodel project? Sometimes, you just can’t move that wall or create that open concept you’re hoping for. When I sold the property in the video, the buyers could not find what they wanted and decided that they had a perfect home in mind; they just needed to put it on the perfect lot.

4. Location. There are a lot of empty lots available to build a new home on, but you need to find a lot where you want to live. If you are set on a certain location, can you find a remodel property in that area?

5. Fun. What do you enjoy doing? Do you have fun building a new home, or are you an HGTV nut who loves the remodel process?

Whether you are looking for a remodel or a new construction project, I would love to help you. Just give me a call or send me an email if you have any questions!

A Smart Way to Minimize Your Child’s Clutter While Selling

Selling a home with kids can be difficult. Here’s a quick tip to make things a bit easier for everyone.

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One of the most stressful parts of selling your home can be getting your kids prepared. Having kids of my own, I know the struggle of trying to keep all of their things tidy when a showing could happen in a moment’s notice.

Decluttering your child’s room or play area can be hard, especially when they are young. It’s not until you start putting their toys away into storage that they mention the toy they haven’t played with in a year is their “favorite.”

Give them the choice to keep the things they really want.

Here’s what I suggest you do. Give them the choice to keep the things they want. Get a big storage bin, but not too big that it doesn’t fit under your child’s bed. Tell them that they can keep the box full as long as you are in the house. If it fits in there, it stays until you move. Anything that doesn’t fit in the box, however, has to be put away until you can unpack in your new home.

Every time you have a showing, all you or your child needs to focus on is making sure the box gets filled back up and put underneath the bed. This really simplifies the decluttering process and still allows for your kids to have their favorite toys on hand. The clients of mine who have followed this advice have had significantly less stress during their home sale than those who haven’t.

If you have any questions for me or you’re thinking about selling your home, give me a call or send me an email. I’d be happy to help out in any way possible.

Don’t Believe This Myth About the 2017 Market

Since the number of home sales dropped significantly from December to January, should you be worried about the 2017 real estate market?

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There is a myth out there about the 2017 market that has incited some unnecessary panic in our area.

Recently, an article came out of Orlando stating that from December of 2016 to January 2017, there was a 25% decline in home sales. This article went on to say that the entire market is declining and that this is the beginning of the end.

Don’t worry, though— there’s nothing to panic about. That decrease in single-family home sales is a normal trend in our market. For example:  

• From December 2014 to January 2015, sales dropped by 26%
• From December 2015 to January 2016, sales dropped by 28%
• From December 2016 to January 2017, sales dropped by 28%

The number of sales drops every year from December to January and soon, we will see an increase in inventory.

Every year, the number of home sales drops from December to January.

Ultimately, the month-to-month number of sales is not a reliable indicator of how our market is doing. You are not comparing apples to apples.

However, if you look at the yearly numbers, you’ll see that from January 2015 to January 2017, the number of home sales went down by 13.5%. The market is declining by about 7.5% each year, so that is the more concerning issue.

Our market has been in a strong seller’s market, though, so this slowdown is more of a leveling off. Our market has had three to four months of inventory and we’re starting to see five to six months of inventory. The market is not going to implode in 2017; we will simply see more of a balanced market than we have the last couple of years.

Going forward, 2017 will be a great, prosperous year. If you have any other questions about our current market or about real estate in general, give me a call or send me an email. I would be happy to help you!

What Will the Bradenton Market Look Like in 2017?

Today I’m giving you a quick look at what the real estate market will bring for Bradenton in 2017.

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Now that 2016 has ended, I wanted to give you my predictions for what the real estate market will look like in 2017 in Bradenton.

At the end of last year’s quarter, the Fed met and raised the interest rate a quarter of a percent, and they are expected to raise rates at least three more times in 2017. If they continue to raise the rate by a quarter of a percent each time, the rate will increase by a full point.

I think 2017 will still boast a strong market, but it’s important to keep in mind that every 1% increase in interest rates eliminates 11% of buyers from your potential buyer pool. This could cause prices in home sales to drop.

2017 will end with a buyer’s market, so get your home listed now.

We should also see a stabilization of the market in all areas, including all price points, types of homes, and types of locations. Instead of ending the year with a seller’s market like we did in 2016, the end of 2017 should bring about a buyer’s market. So, if you are thinking about selling your home, now is the perfect time to get it on the market.

I hope you have a great new year, and if you have any questions, feel free to give me a call or send me an email. I look forward to hearing from you!