Month: June 2022

Seller Tips

If You’re Selling Your House This Summer, Hiring a Pro Is Critical

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If You’re Selling Your House This Summer, Hiring a Pro Is Critical | MyKCM

It can be tempting, especially with how hot the housing market has been over the past two years, to consider selling your home on your own. But today’s market is at a turning point, making it more essential than ever to work with a real estate professional.

Not only will a trusted real estate advisor keep you updated and help you make the best decisions based on current market trends, but they’re also experts in managing the many aspects of selling your house.

Here are five key reasons why working with a real estate professional makes sense today.

1. A Professional Follows the Latest Market Trends

With higher mortgage rates, rising home prices, and a growing number of homes for sale, today’s housing market is showing signs of a shift back toward more pre-pandemic levels. When conditions change, following the trends and staying on top of new information is crucial when you sell.

That makes working with an expert real estate advisor critical today. They know your local area and follow national trends too. More importantly, they’ll know what this data means for you, and as the market shifts, they’ll be able to help you navigate it and make your best decision.

2. A Professional Helps Maximize Your Pool of Buyers

Your agent’s role in bringing in buyers is important. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house is viewed by the most buyers. Investopedia explains why it’s risky to sell on your own without the network an agent provides:

“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.”

3. A Professional Understands the Fine Print

Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. The National Association of Realtors (NAR) explains it best, saying:

“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”

A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.

4. A Professional Is a Trained Negotiator

If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who will use their expertise to advocate for the buyer
  • The inspection company, which works for the buyer and will almost always find concerns with the house
  • The appraiser, who assesses the property’s value to protect the lender

Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.

5. A Professional Knows How To Set the Right Price for Your House

If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. Pricing a house requires expertise. NAR explains it like this:

“A great real estate agent will look at your home with an unbiased eye, providing you with the information you need to enhance marketability and maximize price.”

Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your home. These steps are key to making sure it’s set to move quickly while still getting you the highest possible final sale price.

Bottom Line

Whether it’s following local and national trends and guiding you through a shifting market or pricing your house right, a real estate agent has essential insights you’ll want to rely on throughout the transaction. Don’t go at it alone. If you plan to sell, let’s connect so you have an expert on your side.

Shawna O’Brien
F.C. Tucker Geist Fishers
shawna.obrien@talktotucker.com
317-506-0039

My REVIEWS

REVIEW! Buyers Selected Among Multiple Offers!

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Highly likely to recommend

06/29/2022
Bought a Single Family home in 2022 in Indianapolis, IN.

Local knowledge: *****
Process expertise: *****
Responsiveness: *****
Negotiation skills: *****

My wife and I were first-time home buyers, we were looking for someone who could be extremely helpful and responsive, as well as guide us through the craziness of the housing market. Shawna filled all of those needs! We honestly couldn’t have asked for a better realtor. She answered all of our questions, she was constantly available and provided us great resources that made the process go by without a hitch. I feel very confident that you’ll be in great hands if you go with Shawna as your realtor!

Buyer Tips, Market Update

Why You Shouldn’t Let Inflation Worries Keep You From Buying

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Owning a Home in the Age of Inflation?

The housing market is already painfully tight with bidding wars breaking out all over. Now, inflation (and interest rates, right along with it) are on the rise. Just looking at the prices on property listings online has you feeling the strain on your home-buying budget.

Given that the Federal Reserve typically hikes mortgage interest rates in order to slow inflation down and the fact that you may have to compensate by settling for less house than you initially wanted, is this really a good time to buy a home?

It could be. In fact, it could be far better to buy today than to wait. Here are all the things you need to know before you decide if homeownership is really in the cards for you:

Why You Shouldn’t Let Inflation Worries Keep You From Buying

First, you need to keep in mind that sage advice about how “the best time to buy a house is always five years ago,” because housing prices tend to keep increasing over time. There are no major indications that we’re in a real estate “bubble” that will simply collapse in the near future and lower the prices dramatically, either. The issues that gave rise to the real estate bust of 2008 simply aren’t in the picture today.

Second, real estate is typically seen as a good way to hedge against rising inflation. If you continue renting, your rent isn’t going to go down because inflation is rising. In fact, your rent is likely to increase. If you lock in a reasonable interest rate now on a fixed-rate mortgage, you have the security of knowing that your monthly payment will remain predictable while other costs are soaring.

Finally, putting your money into a mortgage helps you build wealth in three different ways:

  1. You start building equity: When you rent, every dollar you pay goes into your landlord’s pocket, not yours. With a mortgage, you’re putting money back into your pocket each month in the form of equity in your home.

  2. You raise your net worth: Despite occasional dips in the market, a well-maintained home is only likely to rise in value over time. As its value rises, so does your net worth. That gives you far more room to access funds for other needs in the future, like your child’s education or renovations.

  3. You gain a significant tax break: The interest on your mortgage and your property taxes are both significant tax breaks. That can help you keep more of your money to pour into everything from your emergency fund to vacations.

It’s also important to remember that mortgage rates still are fairly low. Still plenty low enough to make mortgages attractive to most buyers — and plenty low enough to make a mortgage preferable to a rental payment.

Waiting to buy, however, means gambling that inflation will fall, and there’s no sign that will happen any time soon.

What Else You Need to Consider About Home Ownership and Inflation

When inflation is soaring, you need to remember one critical thing about owning a home: Everything you want to do in the way of renovations and everything you need to do in the way of repairs are going to cost more.

Supply chain issues and rising fuel costs have already driven up prices on all kinds of building materials, so you need to keep that in mind when you’re viewing homes for sale. A fixer-upper may not be a big deal if you’re handy, but the cost of your supplies could be outrageous right now. For that reason, you may want to steer clear of homes that look like they need major updates.

When you are thinking about renovations, you want to make every dollar count. Put your money into the repairs and upgrades that are most economically sound and meaningful. That may mean prioritizing a new roof over stainless steel appliances for the kitchen or adding a home office instead of an extra half-bath on the main floor.

Finally, you also need to keep your overall budget in mind. Inflation is bound to lead to increases in things like:

  • Moving costs

  • Repair fees

  • Utilities

  • Grocery bills

  • Homeowners association dues

  • Insurance costs

One of the wisest things you can do when you’re looking ahead to the cost of homeownership is to make sure that you have enough money set aside — after you make your down payment on a home and pay for any essentials — to cover anywhere from six to 12 months’ worth of expenses.

Shawna O’Brien
F.C. Tucker Geist Fishers
shawna.obrien@talktotucker.com
317-506-0039

SOLD!

SOLD! FIRST TIME HOME BUYERS, REFERRED TO ME BY A PAST CLIENT, WON THE BID IN A MULTIPLE OFFER SITUATION.

by indianapolisareahomesforsaleLeave a Comment on SOLD! FIRST TIME HOME BUYERS, REFERRED TO ME BY A PAST CLIENT, WON THE BID IN A MULTIPLE OFFER SITUATION.

Good friends, and one of my first real estate clients, referred me to close friends of theirs who were ready to purchase their first home. What an honor! Knowledge about today’s market: Interest rates, home values, loan programs, etc. is KEY when buying a home in this client. It was so fun educating this SMART, sharp couple and I’m grateful for their trust in me to help them.

Originally looking in the Irvington area, they decided to purchase in Lawrence, in the same neighborhood in which the buyer grew up. It was meant to be!!

Multiple offers were received but I immediately established rapport with the list agent, communicated well and often and we were chosen! We DID have to offer above list but soon after multiple homes in the area sold prior to the appraisal and became wonderful comparables for us resulting in the home appraising at the offered purchase price. YAY!!!

The buyers didn’t pay one cent over appraised value and that’s a HUGE WIN right now with buyers bidding over ask price AND appraised value. It was so fun getting to know these wonderful, savvy clients and I’m going to miss talking with them so frequently.

#homebuying #homeownership #homeforsale #firsthome #indianapolis #beaggressive #hirearealtor #indyhomesforsale #TrustYourAgent #HireAnAgent #TrustYourRealtor #GetPreapproved

Shawna O’Brien
shawna.obrien@talktotucker.com
317-506-0039
F.C. Tucker Geist Fishers

Seller Tips

Why You Need an Expert To Determine the Right Price for Your House

by indianapolisareahomesforsaleLeave a Comment on Why You Need an Expert To Determine the Right Price for Your House
Why You Need an Expert To Determine the Right Price for Your House | MyKCM

If your lifestyle has changed recently and you’re ready to make a move, taking advantage of today’s sellers’ market might be just the answer for your summer plans. With homes continuing to get multiple offers, this could be your moment to get the contract you’re looking for on your house if you’re ready to sell.

And here’s the thing – you need an expert on your side to ensure you make all the right moves when you do, especially when it comes to pricing your house. Even in this competitive market, you can’t stick just any price tag on your home and get the deal you want. A key piece of the puzzle is setting the right asking price so you can help buyers notice your home (and get excited about it) from the very first time they view the listing. That’s where a real estate professional comes in.

Why Pricing Your House Right Is Important

The price you set for your house sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. Not to mention, if you undervalue your house, you could leave money on the table which decreases your future buying power.

On the other hand, price it too high, and you run the risk of deterring buyers. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.

In other words, think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value. Pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see multiple offers, too. And if a bidding war happens, you’ll likely get an even higher final sale price. Plus, when homes are priced right, they tend to sell quickly.

To get a look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:

Why You Need an Expert To Determine the Right Price for Your House | MyKCM

Lean on a Professional’s Expertise

There are several factors that go into pricing your house, and balancing them is the key. That’s why it’s important to lean on an expert real estate advisor when you’re ready to move. A local real estate advisor is knowledgeable about:

  • The value of homes in your neighborhood
  • The current demand for houses in today’s market
  • The condition of your house and how it affects the value

A real estate professional will balance these factors to make sure the price of your house makes the best first impression and gives you the greatest return on your investment in the end.

Bottom Line

If you’re thinking about selling, pricing your house appropriately is key. Let’s connect to make sure your house is priced right for the local market, for your home’s condition, and to stand out from the competition.

Shawna O’Brien
F.C. Tucker Geist Fishers
shawna.obrien@talktotucker.com
317-506-0039

Market Update

Is the Housing Market Correcting?

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Is the Housing Market Correcting? | MyKCM

If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.

The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.

This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com says:

“The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”

Home Showings Then and Now

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):

Is the Housing Market Correcting? | MyKCM

The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.

And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.

Existing Home Sales Then and Now

Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):

Is the Housing Market Correcting? | MyKCM

Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.

It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this:

“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”

Bottom Line

If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.

Shawna O’Brien
F.C. Tucker Geist Fishers
shawna.obrien@talktotucker.com
317-506-0039