The annual inflation rate in the United States is currently around 7.5%—the highest it has been since 1982.[1] It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend U.S. dollars, inflation impacts you.

 

Economists expect the effects of inflation, like a higher cost of goods, to continue.[2] Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help.

 

WHAT IS INFLATION AND HOW DOES IT IMPACT ME?

Inflation is a decline in the value of money that can lead to:

• Decreased Purchasing Power: As prices rise, your dollar won’t stretch as far as it used to. So you’ll be able to purchase fewer goods and services with a limited budget.
• Increased Borrowing Costs: In an effort to curb inflation, the Federal Reserve is expected to raise the federal funds rate. Prepare to pay a higher interest rate on new mortgages, car loans, and variable-rate credit cards.[3]
• Lower Standard of Living: Wage growth tends to lag behind price increases.[4] Therefore, you may have to make lifestyle changes and prioritize essentials.
• Eroded Savings: As of February, the national average interest rate for a savings account is 0.06%, not nearly enough to keep up with inflation. And economists don’t expect that rate to go much higher.[3]

 

REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION

So where is a good place to invest your money to protect (hedge) against the impacts of inflation? Here are a few investment vehicles financial advisors typically recommend:

• Stocks: Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months.[5]
• Commodities: In theory, the price of commodities should climb alongside inflation. But the classic choice–gold–hasn’t risen consistently during periods of inflation since the 1970s.[6]
• Inflation-Indexed Bonds: Treasury inflation-protected securities, or TIPS, are considered low risk, but the returns they offer are generally low, as well.[7]
• Real Estate: Real estate prices often rise with (or faster than) inflation.[8] That’s one of the reasons demand for real estate is soaring right now.[9]

 

I believe real estate is the best hedge against inflation. Home prices rose nearly 17% from 2020 to 2021, 10% ahead of the inflation that occurred in the same timeframe.[10] Plus, certain types of real estate investments can help you generate a stream of passive income.

 

TYPES OF REAL ESTATE INVESTMENTS

There are three basic investment types that we recommend for beginner and intermediate investors. We can help you determine which options are best for you.

 

• Primary Residence: If you own your home, you’re already ahead. As inflation rises, the value of your home is likely to go up. At the same time, you’ve locked in a set mortgage payment, so you’ll be immune to rising rental costs. If you don’t currently own a home, our team can help you find a property that fits your needs and budget.

 

Whether you already own a primary residence or are still renting, now is a good time to also start thinking about an investment property. The types of investment properties you’ll buy as a solo investor generally fall into two categories:

 

• Long-Term (Traditional) Rentals: A long-term rental is a dwelling that’s leased out for an extended period. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality can help provide stable returns in uncertain times. A well-chosen property should pay for itself through rental income, and you’ll benefit from appreciation as it increases in value.

 

• Short-Term (Vacation) Rentals: Short-term rentals function more like hotels in that they offer temporary accommodations. A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of more hands-on management. Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself!

 

Contact me today if you’re interested in exploring options in either rental market. Mortgage rates are expected to rise, so you’ll want to act fast to maximize your investment return.

 

I’M INVESTED IN HELPING YOU

Inflation is a fact of life in the U.S. economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact me. I can help you find a primary residence or investment property that meets your financial goals.

 

Dorothy Trainer

dorothytrainer@jbgoodwin.com

512.796.3723

 

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Bloomberg
2. CNN
3. CNBC
4. Reuters
5. NBC News
6. CNBC
7. Morningstar
8. The Washington Post
9. Bloomberg
10. CNN

There’s a lot to consider when selling your home, from the market and appraisals to where you’ll go next. Don’t forget, however, that design is also a key factor. It’s often one of the first things buyers notice when they walk into a home.

 

Changes like new security features or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.

 

Keep in mind, not all of these will work well in every house. If you plan to buy, list or renovate a property, give me a call. I can help you realize your vision and maximize the impact of your investment.

Eco-Friendly Fixtures

Millennials account for the largest share of current homebuyers, and sustainable living tops their list of priorities.[1,2] Consider how you can leverage eco-friendly design features, like energy-efficient windows, low-flow water fixtures, and native landscaping to save on utility bills now and attract this coveted demographic when it comes time to sell.[3,4,5]

 

Wellness Retreat Nooks

At-home wellness features are on many homeowners’ must-have lists in 2022.[6] Enhancements like reading nooks, spa-inspired bathrooms, and exercise/meditation spaces can improve your current quality of life while adding value to your home. If you don’t have the space to section off an entire room for relaxation, consider simple tweaks, like letting in more natural light and adding air purifiers or indoor plants.

 

Calming Paint Colors

Soft earth tones and natural hues will prevail in 2022, especially shades of blue, green, brown, and beige. But choosing the right shade is essential. Research found that homes with light-blue bathrooms sold for a $4,698 premium, while homes with mint-green kitchens sold for $1,830 less than expected.[7] I can help you select the best paint color to showcase your space.

 

Home Safety Features

Today’s consumers want home safety features more than ever, including emergency backup power generation, wider accessible doorways and hallways, and security monitoring equipment.[8] But before making an investment in expensive upgrades, contact me. I can help you determine which features will deliver the greatest return.

 

Designated Work Spaces

Today, 63% of homebuyers want room for a designated office.[9] If you don’t already have one, you can turn a bedroom or a den into an attractive and functional work-from-home space by positioning a desk near a window, installing shelves, and hanging a bulletin board. When you get ready to sell, I can help you highlight this coveted feature.

 

Luxury Kitchen Retouches

In 2022, buyers want a kitchen with upgrades and retouches, but you don’t have to renovate the entire room to make an impact. Take your kitchen from dated to modern by painting cabinets and walls in one of today’s popular calming colors. And by updating the hardware and light fixtures, you can add a fresh look without a big investment.

 

Unique Accent Walls

Eye-catching accent walls are hot right now.[10] To incorporate this trend, try painting a single wall black or a jewel tone, hanging textured wallpaper, or installing built-in shelves. But if you’re planning to sell in the next year, talk to me first. Depending on your target buyer, it may be a design feature that actually hurts your home’s value.

 

Exterior Siding Updates

New exterior siding is one of the most cost-effective renovation projects you can undertake. While the average price of new siding is $12 per square foot (depending on the material), the return on investment is higher than that of many renovation projects.[11] Both vinyl and fiber-cement siding replacement offer an average return of more than 68%.[12]

 

KEEP THESE HOME DESIGN FEATURES ON YOUR RADAR IN 2022

You don’t need to make all these changes to attract buyers.  I can help you determine which design features are worthwhile by sharing insights and tips on how to maximize the return on your investment. I can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact me to schedule a free consultation!

Dorothy Trainer

Dorothytrainer@jbgoodwin.com

512.796.3723

Sources:

1. National Association of Realtors
2. Deloitte
3. gov
4. gov
5. American Society of Landscape Architects
6. Home Improvement Research Institute
7. Zillow
8. American Institute of Architects
9. National Association of Home Builders
10. National Association of Realtors
11. Forbes
12. Remodeling Magazine

Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that caused home prices to soar nationwide by a record 19.9% between August 2020 and August 2021.¹

 

However, there were signs in the fourth quarter that the red-hot housing market was beginning to simmer down. In the month of October, only 60.3% of sales involved a bidding war—down from a high of 74.5% in April.² While this trend could be attributed to seasonality, it could also be a signal that the real estate run-up may have passed its peak.

 

So what’s ahead for the U.S. housing market in 2022? Here’s where industry experts predict the market is headed in the coming year.

 

 

MORTGAGE RATES WILL CREEP UP

 

Most economists expect to see mortgage rates gradually rise this year after hitting record lows in late 2020 and early 2021.³

 

Freddie Mac forecasts the 30-year fixed-rate mortgage will average 3.5% in 2022, up from around 3% in 2021.⁴

 

The Mortgage Bankers Association predicts that rates will tick up to 4% by the end of the year. “Mortgage lenders and borrowers should expect rising mortgage rates over the next year, as stronger economic growth pushes Treasury yields higher,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association at their 2001 Annual Convention & Expo in October.⁵

 

However, it’s important to keep in mind that even a 4% mortgage rate is low when compared to historical standards. According to industry trade blog The Mortgage Reports, “Between 1971 and December 2020, 30-year mortgage rates averaged 7.89%.”⁶

 

What does it mean for you? Low mortgage rates can reduce your monthly payment and make homeownership more affordable. Fortunately, there’s still time to lock in a historically-low rate. Whether you’re hoping to purchase a new home or refinance an existing mortgage, act soon before rates go up any further. I’d be happy to connect you with a trusted lending professional in our network.

 

 

THE MARKET WILL BECOME MORE BALANCED

 

In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus and a shift to remote work triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labor shortages hindered new construction.

 

This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to George Ratiu, director of economic research at Realtor.com, “Prices and sellers reached for the moon [last] year. It looks like we are now about to move back to earth.”⁷

 

Data from Realtor.com released in November showed that listing price reductions had more than doubled since February 2021. And the average days on market (an indicator of how long it takes a home to sell) has been slowly creeping up since June.⁷

 

What’s causing this change in market dynamics? The real estate market typically slows down in the fall and winter. But economists also suspect a fundamental shift in supply and demand.

 

At the National Association of Realtors’ annual conference last November, the group’s chief economist, Lawrence Yun, told attendees that he expects increased supply to come from an uptick in new construction—which is already underway—and an end to the mortgage forbearance program. “With more housing inventory to hit the market, the intense multiple offers will start to ease,” he said.⁸

 

Demand is also predicted to wane slightly in the coming year. Rising mortgage rates and record-high prices have made homeownership unaffordable for a growing number of Americans. And in a recent Reuters poll, nearly 80% of property analysts said they expect housing affordability to worsen over the next several years.⁹

 

What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Increased supply and softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with more inventory on the market, you’ll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.

 

 

HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE

 

Nationally, home prices rose an estimated 16.8% in 2021.⁸ But the average rate of appreciation is expected to slow down in 2022.

 

Danielle Hale, chief economist at Realtor.com, told Yahoo! News, “Home asking prices have decelerated in the second half of 2021, with median listing price growth slipping from a peak of 17.2% in April to just 8.6% in October.”¹⁰

 

But experts disagree about how much more property values can continue to climb this year. Goldman Sachs predicts that home prices will rise by 13.5%, while Fannie Mae and Freddie Mac are forecasting a 7.9% and 7% rate of appreciation, respectively.²

 

However, not all analysts are as bullish. The National Association of Realtors predicts a 2.8% rate of appreciation for existing homes and 4.4% for new homes, while the Mortgage Bankers Association expects the average home price to decrease by 2.5% by the end of the year.^10,2

 

According to Hale, “With prices near all-time highs and mortgage rates expected to rise, we expect this slowdown in prices to continue.”¹⁰

 

What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. I can help you get the most for your money in today’s market.

 

 

RENTS WILL CONTINUE TO RISE

 

Along with home, gasoline, and used vehicle prices, rent prices rose dramatically last year. According to CoreLogic, in September, rents for single-family homes were up 10.2% nationally year over year.¹¹ And economists at Realtor.com expect them to climb another 7.1% in 2022.¹²

 

“Homes are expensive now…but for most people, the comparison that is most important is how that cost of homeownership is going to compare to the cost of renting,” Zillow Senior Economist Jeff Tucker told CNBC in November.¹³

 

Tucker also pointed out that rent is less predictable than a mortgage—and more likely to go up along with inflation.¹³

 

Real assets, like real estate, are often used as a hedge against inflation. That’s because property values typically rise with inflation.¹⁴ And when a homeowner takes out a mortgage, they lock in a set housing payment for the next 30 years.

 

In contrast, renters are at the mercy of the market—and they don’t gain any of the benefits of homeownership, like tax deductions, equity, or appreciation.

 

George Ratiu of Realtor.com told CNBC that he advises buyers to consider their budget and time frame. If they plan to stay in the home for at least three to five years, he believes it often makes sense to buy.¹³

 

Fortunately, it’s shaping up to be a better year for buyers. “I think 2022 has the promise of providing less competition, a lot more homes to choose from, and, as a result, a lot more approachable prices,” Ratiu said.¹³

 

What does it mean for you? Both property and rent prices are expected to continue rising. But when you purchase a home with a fixed-rate mortgage, you can rest assured knowing that your monthly mortgage payment will never go up. Whether you’re a first-time homebuyer or a real estate investor, I can help you make the most of today’s real estate market.

 

 

HERE TO GUIDE YOU

 

While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, I can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.

 

If you’re considering buying or selling a home in 2022, contact me now to schedule a free consultation. I’ll work with you to develop an action plan to meet your real estate goals this year.

 

Dorothy Trainer

dorothytrainer@jbgoodwin.com

512.796.3723

 

Sources:

1. Fortune –
   https://fortune.com/2021/11/04/us-home-prices-real-estate-forecast-2022-outlook/
2. Fortune –
   https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/
3. Freddie Mac –
   http://www.freddiemac.com/pmms/pmms30.html
4. Freddie Mac – https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-strong-housing-market-will-continue-even-rates-and
5. Mortgage Bankers Association –
   https://www.mba.org/2021-press-releases/october/mba-annual-forecast-purchase-originations-to-increase-9-percent-to-record-173-trillion-in-2022
6. The Mortgage Reports –
   https://themortgagereports.com/61853/30-year-mortgage-rates-chart
7. com –
   https://www.realtor.com/news/trends/has-housing-market-peaked/
8. National Association of Realtors –
   https://www.nar.realtor/newsroom/nars-yun-says-housing-market-doing-well-may-normalize-in-2022
9. Reuters –
   https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/
10. Yahoo! News –
    https://www.yahoo.com/now/where-home-prices-headed-2022-130012748.html
11. CNBC –
    https://www.cnbc.com/2021/11/16/inflation-rent-for-single-family-homes-surged-10percent-in-september.html
12. com –
    https://www.realtor.com/news/trends/what-to-expect-in-2022-housing-market/
13. CNBC –
    https://www.cnbc.com/2021/11/23/rising-inflation-hot-housing-market-what-you-need-to-know-about-buying-a-home.html
14. Money –
    https://money.com/inflation-2021-stocks-bitcoin-gold-reits-commodities/

Every year, it seems the holidays sneak up on us—and every year, that brings with it the dreaded last-minute gift panic. Finding a present that hits all the right notes can be surprisingly stressful.

 

But have no fear! I’ve lined up a list of unique gifts for every “type” on your list. And since I work in real estate, they’re all centered around home life. From the coffee snob to the sports enthusiast, these presents are the perfect way to bring beauty, function or a touch of whimsy to your loved one’s home this holiday season.

 

FOR THOSE WHO ARE ALWAYS IN THE KITCHEN

If the kitchen is their happy place, these gifts are sure to be a welcome treat.

 

1. The Coffee Snob

Glass Pour-Over Coffeemaker – $36

This high-end pour-over system will help java lovers enjoy a perfect cup at any time.

 

2. The Foodie

Shiitake Mushroom Log Kit – $30

Help your favorite gourmand create restaurant-quality meals with home-grown mushrooms.

 

3. The Baker

Vintage Etched Cake Stand – $60

Thank the baker on your list with this lovely glass cake stand to display their creations.

 

4. The Tea Aficionado

Flowering Tea Set – $25

This unique set takes tea to the next level with tea flowers that “bloom” in the included glass teapot.

 

FOR THOSE WHO WOULD RATHER BE IN THE BACKYARD

The nature-lover on your list will appreciate these presents that help them maximize the joy of the outdoors.

 

5. The Gardener

Striped Garden Tote Bag – $37

This attractive and sturdy tote will help your favorite gardener keep their home’s exterior beautiful and welcoming.

 

6. The Flower Lover

Monthly Flower Subscription – starting at $40/month

A regular delivery of farm-fresh flowers is sure to delight any fan of florals.

 

7. The Environmentalist

Collapsible Metal Straw – $20

This high-quality reusable metal straw will help your recipient live out their values.

 

8. The Outdoor Adventurer

Solar Phone Charger – $29

This solar charger is a must for campers—and a great addition to their home emergency kit.

 

FOR THOSE WITH THEIR NOSE TO GRINDSTONE

Lighten your loved one’s load with gifts designed to make their work and chores easier and more enjoyable.

 

9. The Remote Worker

Home Office Lap Desk – $35

With this lap desk, remote workers can be productive anywhere—even on the couch.

 

10. The Back-to-The-Office Worker

Bento Lunch Box – $27

This stylish lunch box will help your loved one keep up the healthy habit of a home-cooked meal.

 

11. The Do-It-Yourselfer

65ft Laser Distance Measure – $50

This nifty device will replace unwieldy tape measures for your favorite handy person.

 

12. The Clean Freak

Portable Sanitizing Travel Wand – $60

This UV wand kills viruses and bacteria to disinfect phones, shoes, and more without any wiping or washing.

 

FOR THOSE MOST PASSIONATE ABOUT THEIR HOBBIES

Of course, there’s a lot more to life than work. If you’re gifting a friend or family member who really lights up when they talk about their hobbies, we’ve got you covered.

 

13. The Sports Enthusiast

Hockey Stick BBQ Set – $45

These BBQ tools made from repurposed hockey sticks are a great pick for sports lovers tired of the same old jerseys.

 

14. The Bookworm

The Book Lover’s Journal – $13

Know someone who loves to curl up on the couch with a good book? This journal will help them keep track of what they’ve read.

 

15. The Runner

Marathon Map Hydration Bottle – $36

Help the runner you love to stay hydrated (and motivated) with a water bottle inscribed with their favorite race route.

 

16. The Tourist

Travel Backpack – $100

This lightweight backpack folds flat so it’s easy to pack, but it’s sturdy enough that the traveler on your list can use it to carry their new treasures all the way home.

 

FOR THOSE WHO PUT FAMILY FIRST

For many of us, the greatest joy in life comes from our relationship with our family. Help your recipient strengthen and celebrate those connections with these thoughtful gifts.

 

17. The New Parent

4-in-1 Baby Food Maker – $155

If the new parents on your list are interested in making baby food at home, this tool is a must-have for mixing, steaming, and more.

 

18. The Genealogy Fan

DNA Kit – $99

This DNA kit can help your recipient trace their geographical heritage and uncover their family history.

 

19. The Pet Person

Custom Printed Socks – $25

These adorable socks will make any pet lover smile as they cozy up on the couch with their fur baby.

 

20. The Documentarian

Mini Link Printer – $100

Put family photos on display with this gadget that essentially transforms a smartphone into a Polaroid camera.

 

READY TO GIVE YOURSELF THE ULTIMATE GIFT?

I want to be your real estate consultant through every season of life. Don’t hesitate to reach out with questions or ask for recommendations any time of year. And when you’re ready to give yourself the gift of a new home, contact me to talk about your options. From finding the right neighborhood to identifying the amenities you need, I’m always eager to help.

 

dorothytrainer@jbgoodwin.com

512.796.3723

Homebuyers today are facing a huge dilemma. There simply aren’t enough homes for sale.¹

 

Nationwide, there were 1.27 million active listings in September, down 13% from the previous year. According to the National Association of Realtors, that’s about 2.4 months of inventory, which is far less than the six months that is generally needed to strike a healthy balance between supply and demand.²

 

Given the limited number of available properties, if you’re a buyer in today’s market, you may need to expand your search to include both new construction and resale homes. But it can feel a little like comparing apples to oranges.

 

Let’s take a closer look at some of the factors you should take into account when choosing between a new build or an existing home.

 

 

TIMEFRAME

 

How quickly do you want (or need) to move into your next home? Your timeframe can be a determining factor when it comes to choosing between a new build or resale.

 

New Build

If you opt for new construction, you may be surprised by how long you have to wait to get the keys to your new digs. Currently, many home builders are dealing with unique challenges brought on by the COVID-19 pandemic, including rising costs, labor and material shortages, and shipping delays. While historically it took around five to six months to build a home, many builders are now reporting construction timelines closer to a year or more.³

 

These issues have led some builders to cancel contracts or raise the price on unsuspecting homebuyers long after agreements were signed. Unfortunately, this scenario can throw a major wrench in your moving plans and significantly delay your timeline.

 

To minimize these types of surprises, it’s crucial to have a real estate agent represent you in a new home purchase. We can help negotiate better contract terms and advise you about the potential risks involved.

 

Existing Home

If you’re in a hurry to move into your next residence, then you may want to stick to shopping for an existing home.

 

You can typically move into a resale home as soon as you’ve closed the deal. The average time it takes to close a home purchase is around 51 days, but it can vary based on loan type and market activity.⁴

 

If you need to move even sooner, it’s sometimes possible to close faster, especially if you’re a cash buyer. In fact, many sellers prefer a quick closing, so it can give you an advantage in a competitive market.

 

 

LOCATION

 

From commute to construction to amenities, there’s a lot to consider when choosing your next neighborhood.

 

New Build

With a brand-new home, you’re more likely to move into a neighborhood that’s located on the edge of town and is still undergoing development.⁵ This could mean a longer commute and ongoing construction for some time.

 

However, new developments can also offer a lot of amenities that appeal to modern homebuyers. Water features, hike-and-bike trails, tot lots, and dog parks are just a few of the enhancements we’re seeing pop up in master-planned communities across the country. And some feature new schools and their own urban-like centers with restaurants, retail, and office space.⁶

 

Existing Home

An existing home is more likely to be located close to town in a neighborhood with mature trees, established schools, and a deeply-rooted community. As a result, you may find the neighborhood’s trajectory to be more predictable than an up-and-coming area.

 

But the amenities may be lacking and the infrastructure dated when compared to newer communities. And while some homebuyers love the charm and eclectic feel of an older neighborhood, others prefer the sleek and cohesive look of a newer development.

 

 

MAINTENANCE

 

Are you a DIY enthusiast, or do you prefer a low-maintenance lifestyle? Set realistic expectations about how much time, effort, and money you want to devote to maintaining your next home.

 

New Build

When you build a home, everything is brand new. Therefore, in the first few years at least, you can expect less required maintenance and repairs. A 2019 survey found that millennials’ homebuying regrets often came down to maintenance issues, rather than other concerns.⁷ So if you would rather spend your weekends exploring your new neighborhood than fixing a leaky faucet, you may be happier buying a turnkey build.

 

That doesn’t mean, though, that a new home will be entirely maintenance-free. In fact, depending on the builder, you could find yourself repairing more than you expected. Some home builders have reputations for shoddy construction and subpar materials, so it’s important to choose one with a solid reputation. I can help you identify the quality builders in our area.

 

Existing Home

No matter how good a deal you got when you purchased it, you could come to regret buying an older home if it costs you heavily in unexpected maintenance and repairs. According to HomeAdvisor’s yearly True Cost report, home renovations have grown more expensive in recent years. For example, installing a new HVAC system could cost you $5,371 on average. And you can expect to pay nearly double that amount ($9,375) for a new roof.⁸

 

Fortunately, there are ways to prepare for these large expenditures. I always recommend that my buyers hire a certified home inspector, whether they buy a new or existing home. Once we have the inspector’s report, I can negotiate with the seller on your behalf for reasonable repairs or concessions.

 

 

ENVIRONMENTAL IMPACT

 

On a quest for greener living? If so, there are several factors to consider when deciding on your next home.

 

New Build

There’s a growing demand for energy-efficient housing, and many builders are rising to the challenge. Nearly 1 in 4 homes built in 2020 received a HERS (Home Energy Rating System) Index Rating by the Residential Energy Services Network. A HERS rating provides an index score that compares the newly-built home to those that were standard in 2006. The more energy-efficient the home is, the lower the score it receives.¹¹

 

The average home rated in 2020 was 42% more efficient than those built in 2006 and 72% more efficient than a typical home built in the 1970s.¹¹ So if energy efficiency is a top priority, a new home with a low HERS rating may be a good choice. You can also look for one that’s ENERGY STAR Certified, which means it meets a series of strict efficiency guidelines set by the Environmental Protection Agency. In 2020, only 7.9% of homes built in the U.S. received this designation.¹²

 

Existing Home

Of course, a basic tenant of sustainable living is: reduce, reuse, recycle. And since a resale home already exists, it automatically comes with a lower carbon footprint. Research has also shown that remodeling or retrofitting an older home is often greener than building one from scratch.¹³

 

With some energy-conservation effort and strategic upgrades, environmentally-conscious consumers can feel good about buying an existing home, as well.

 

 

DESIGN

 

Open floor plan? Kitchen island? High ceilings? Must-have design features could drive your decision to build or buy resale.

 

New Build

With a new home, you can bet that everything will look shiny and perfect when you move in. Builders tend to put a lot of emphasis on visual details and follow the latest design trends. For example, newly-built homes are likely to feature an open floor plan, central kitchen island, and 9+ foot ceilings, which are must-haves for many modern buyers. They are also unlikely to feature carpet on the main level or laminate countertops, both of which have lost mass appeal.¹⁴

 

However, some buyers complain of the cookie-cutter feel of new homes since they are often built with a similar aesthetic. That doesn’t mean, though, that you can’t incorporate your own style. I can help you negotiate custom features and upgrades to personalize the space and make it feel like your own.

 

Existing Home

In some of the most coveted neighborhoods, an older home with classic styling and character can be highly sought after. But unless the previous homeowners have invested in tasteful updates, an existing home is also more likely to look dated.

 

While some buyers prefer the traditional look and character of an older home, others crave something more modern. If that’s the case, I can help you find a resale home that leaves enough room in your budget to renovate it to your liking.

 

 

WHICHEVER PATH YOU CHOOSE, I CAN HELP

 

When it comes to choosing between a new build or an existing home, there’s no one-size-fits-all answer. There are numerous factors to consider, and you may have to make some compromises along the way. But the homebuying process doesn’t have to feel overwhelming.

 

I’m here to help. And in many cases, my homebuyer guidance and expertise are available at no cost to you! That’s because the home seller or home builder may compensate me with a commission at closing.

 

Some new-construction homebuyers make the mistake of visiting a builder’s sales office or even purchasing a home without their own real estate representative. But keep in mind, the builder’s agent or “sales consultant” has their best interests in mind—not yours.

 

I am knowledgeable about both the new construction and resale home options in our area, and can help you make an informed decision, negotiate a fair price, and avoid mistakes that can cost you time and money. So give me a call today to schedule a free, no-obligation consultation—and let’s start searching for your next home!

Dorothy Trainer, REALTOR®

dorothytrainer@jbgoodwin.com

512.796.3723

 

Sources:

1. Reuters –
   https://www.reuters.com/world/us/us-existing-home-sales-fall-august-inventory-declines-2021-09-22/
2. National Association of Realtors –
   https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september
3. KFVS 12 –
   https://www.kfvs12.com/2021/09/22/covid-19-pandemic-affects-delivery-rate-building-materials/
4. Rocket Mortgage –
   https://www.rocketmortgage.com/learn/time-to-close-on-a-house
5. Real Assets Adviser –
   https://irei.com/publications/article/master-planned-communities-changing-u-s-housing-trends-favor-investors-can-benefit/
6. Builder Online –
   https://www.builderonline.com/land/development/5-master-plan-trends-home-buyers-gravitate-toward-today_o
7. Bankrate –
   https://www.bankrate.com/real-estate/homebuyer-regret-survey-may-2021/
8. Home Advisor –
   https://www.homeadvisor.com/r/true-cost-report/
9. Roofing Calculator –
   https://roofingcalculator.com/news/how-long-do-roofs-last
10. Plumbing and Mechanical Engineer –
    https://www.pmengineer.com/articles/94873
11. National Association of Home Builders –
    https://nahbnow.com/2021/10/nearly-1-in-4-new-homes-in-2020-was-hers-rated/
12. EnergyStar –
    https://www.energystar.gov/newhomes/energy_star_certified_new_homes_market_share
13. Advanced Materials Research – https://www.researchgate.net/publication/271358381_Comparative_Study_of_New_Construction_and_Renovation_Project_Based_on_Carbon_Emission
14. National Association of Home Builders –
    https://nahbnow.com/2020/04/most-likely-and-unlikely-features-in-a-new-single-family-home/

According to the FBI, more than one million burglaries are committed in the United States each year.[1] Fortunately, there are some proven tactics you can use to decrease your likelihood of a home invasion.

 

Most burglars are looking for easy access with minimal risk. A monitored security system can be an effective deterrent, but it isn’t the only way to protect your property. Here are seven strategies to help you maximize your home’s security and minimize your chances of being targeted by intruders.

 

1. Check Your Doors and Windows

The most common entry point for a burglar is an unlocked front door followed by a first-floor window or back door, so securing these points of entry is essential.[2]

Evaluate the condition of your doors and locks. 

• Make sure all doors have a solid core.
• Pair them with a Grade 1 or 2 deadbolt lock and a reinforced strike plate.[3]

Add window locks and security film.

• Install aftermarket window locks on first-story windows.
• Consider using security film on windows that are adjacent to a door.[4]

2. Landscape for Security

Thieves target homes that they can enter and exit without being detected.

Increase visibility from the street.

• Trim overgrown trees and shrubs that obstruct the view of your property.
• Remove privacy fences or hedges that offer criminals a place to hide.[5]

Utilize best practices for environmental design.

• Plant thorny or sharp-leaved bushes beneath windows.
• Add some loose gravel that crunches when disturbed.

 

3. Light Your Exterior

A well-designed outdoor lighting system can make your home both safer and more attractive.

Install landscape lighting.

• Eliminate pockets of darkness around your home’s perimeter with outdoor lights.
• Use a combination of flood, spot, and pathway lights to add visual interest while increasing visibility.

Use motion-activated security lights.

• Startle intruders with a motion-activated floodlight.
• Choose a smart version to receive notifications when there’s movement on your property.

 

4. Make It Look Like You’re Home

Most burglars will avoid breaking into a home if there are signs that it’s occupied.[6]

Turn on your TV and leave a car in the driveway.

• If you’re away from home, connect your TV to a timer or smart plug.
• When you travel, leave your car out or ask a neighbor to park theirs in your driveway.

Install a video doorbell.

• Let intruders know you’re watching by utilizing a video doorbell.
• See, hear, and speak with visitors remotely from your smartphone—so they’ll never know you’re gone.

 

5. Keep Valuables Out of Sight

Security experts caution against placing valuables where they’re easily visible.[7]

Check sightlines from your doors and windows.

• Avoid tempting robbers with a clear view of commonly stolen items, such as cash, jewelry, and electronics.
• Take a walk around your property to ensure valuables aren’t visible from outside.

Secure items in a safe.

• Limit access to expensive items when you have workers inside your home.
• Lock up firearms, sensitive documents, and valuables in a safe.

 

6. Highlight Your Security Measures

In surveys, convicted burglars admit to avoiding homes with obvious protective measures in place.[6,8,9]

Install outdoor cameras.

• Place security cameras where they are easy to spot.
• Record the footage so you can share it with police if you do experience a robbery.

Post warning signs.

• Prominently display a security system placard and/or beware-of-dog sign.
• Back up your threats with a noisy alarm and loud barking dog for maximum impact.[9]

 

7. Limit What You Share on Social Media

On social media platforms, it’s easy to reveal more than you’ve intended.

Delay posting photos or travel updates.

• Avoid “checking in” to places or events, which can signal that your home is unoccupied.
• Wait until you’ve returned home to share vacation photos on social media.

Set privacy restrictions on your accounts.

• Think twice about connecting with strangers or casual acquaintances.
• Limit your followers to those you truly know and trust.

 

YOUR HOME IS SAFE WITH ME

I take home security seriously. That’s why I have screening procedures in place to keep our clients and their homes safe when they are for sale. I also remind our buyers to change the locks before they move into their new homes and provide referrals to locksmiths and security companies that can help. To learn more about my procedures and how to stay safe during the real estate process, contact me to schedule a free consultation!

Dorothy Trainer

dorothytrainer@jbgoodwin.com

512.796.3723

 

 

Sources:

1. Federal Bureau of Investigation
2. ADT
3. National Crime Prevention Council
4. SafeWise
5. Forbes
6. KGW News
7. org
8. Science Daily
9. The Guardian

Selling your home while shopping for a new one can feel daunting to even the most seasoned homeowner––especially when the competition for housing is so high.[1] That doesn’t mean, though, that you should just throw up your hands and give up on moving altogether. In fact, as a current homeowner, you could be in a better position than most to capitalize on a seller’s market and make a smooth transition from your old home to a new one.

 

I can help you prepare for the road ahead. Here are some of the most frequent concerns I hear from clients who are trying to buy and sell at the same time.

 

“WHAT WILL I DO IF I SELL MY HOUSE BEFORE I CAN BUY A NEW ONE?”

While it may be an inconvenience, this is a common scenario that can usually be handled with a little creativity and compromise. Here are some options to consider:

 

1. Flex your muscles as a seller.

In some cases, a buyer may agree to a rent-back clause that allows the seller to continue living in the home after closing for a set period of time and negotiated fee.[2] We can discuss the benefits and risks involved and whether it’s a good option for you.

 

2. Open your mind to short-term housing options.

If you’re lucky enough to have family or friends who offer to take you in, that may be ideal. If not, check out furnished apartments, vacation rentals and month-to-month leases. If space is an issue, consider putting some of your furniture and possessions in storage.

 

3. Embrace the idea of selling now and buying later.

With cash on hand from the sale of your current home, you’ll be in a better position to budget for and buy your next home. And by focusing on one step at a time, you can alleviate some of the pressure and uncertainty involved.

 

“WHAT IF I GET STUCK WITH TWO MORTGAGES AT THE SAME TIME?”

If you can’t afford to carry both mortgages, then selling before you buy may be best. (See Tip #3.) But if you have flexibility in your budget for some overlap, it is possible to manage a home sale and purchase simultaneously. Here are some steps to help streamline the process:

 

4. As you get ready to sell, simplify.

You can condense your sales timeline if you only focus on the renovations and tasks that matter most. We can advise you on the repairs and upgrades that are worth your time and investment.

 

5. Prep your paperwork.

If you’ll need a mortgage for your next home purchase, get pre-approved in advance. And start pulling together relevant records for your current home, such as appliance warranties and renovation permits. That way, you’ll be ready to provide quick answers to buyers’ questions should they arise.

 

6. Ask about other contingencies that can be included in your contracts.

For example, it’s possible to add a clause to your purchase offer that lets you cancel the contract if you haven’t sold your previous home. This tactic could backfire, though, if you’re competing with other buyers. We can discuss the pros and cons of contingencies and what’s realistic given current market dynamics.

 

“WHAT IF I MESS UP MY TIMING OR BURN OUT FROM ALL THE STRESS?”

To make sure you’re in the right headspace, take the time to slow down, breathe and delegate as much as possible. In addition:

 

7. Relax and accept that compromise is inevitable.
   Rather than worry about getting every detail right with your housing search and home sale, trust that things will work out eventually––even if it doesn’t look like your Plan A or even your Plan B or Plan C. Luckily, if you’ve got a good team of professionals, you can relax knowing that others have your back and are monitoring the details behind the scenes.

 

8. Don’t worry too much if your path is straying from convention.

Remember that rules-of-thumb and home-buying trends are just that: they are estimates, not facts. So if your home search or sale isn’t going exactly like your neighbor’s, it doesn’t mean that you are doomed to fail.

 

9. Enlist help early.

Which leads us to our final tip: If possible, call me early in the process. I’ll not only provide you with key guidance on what you should do to prep your current property for sale, I’ll also help you narrow down the parameters for your next one. That way, you’ll be prepared to act quickly and confidently when it comes time to list your home and make an offer on a new one.

 

CALL TODAY FOR TAILORED ADVICE THAT WORKS FOR YOU

Buying and selling a home at the same time is challenging. But it doesn’t have to be a nightmare, and it can even be fun. Contact me for a free consultation so that I can help you review your options and decide the best way forward.

 

 

Sources:

1. Board of Governors of the Federal Reserve System, FEDS Notes – https://www.federalreserve.gov/econres/notes/feds-notes/housing-market-tightness-during-covid-19-increased-demand-or-reduced-supply-20210708.htm
2. com –
   https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition amongst buyers has never been fiercer. And with homes selling for record highs,[1] the appraisal process is receiving more attention than ever. That’s because, in a rapidly appreciating market, a property is more likely to appraise below the sales price—which can lead to major repercussions for both buyers and sellers.

It’s never been more important to understand the appraisal process and the risks involved. It’s also crucial to work with a skilled real estate agent who can guide you to a successful closing without overpaying (if you’re a buyer) or overcompensating (if you’re a seller). Find out how appraisals work—and in some cases, don’t work—in today’s unique real estate environment.

APPRAISAL REQUIREMENTS

An appraisal is an objective assessment of a property’s market value performed by an independent authorized appraiser. Mortgage lenders require an appraisal to lower their risk of loss in the event a buyer defaults on their loan.[2]

In most cases, a licensed appraiser will analyze the property’s condition and review the value of comparable properties that have recently sold. Appraisal requirements can vary by lender and loan type, and in today’s market, in-person appraisal waivers have become much more common. If you’re applying for a mortgage, be sure to ask your lender about their specific terms.

APPRAISALS IN A RAPIDLY SHIFTING MARKET

An appraisal contingency is a standard inclusion in a home offer. It enables the buyer to make the closing of the transaction dependent on a satisfactory appraisal wherein the value of the property is at or near the purchase price. This helps to reassure the buyer (and their lender) that they are paying fair market value for the home and allows them to cancel the contract if the appraisal is lower than expected.

Low appraisals are not common, but they are more likely to happen in a rapidly appreciating market, like the one we’re experiencing now.[3] That’s because appraisers must use comparable sales (commonly referred to as comps) to determine a property’s value. This could include homes that went under contract weeks or even months ago. With home prices rising so quickly,[4] today’s comps may be lagging behind the market’s current reality. Thus, the appraiser could be basing their assessment on stale data, resulting in a low valuation.

HOW ARE BUYERS AND SELLERS IMPACTED BY A LOW APPRAISAL?

When a property appraises for less than the contract price, you end up with an appraisal gap. In a more balanced market, that could be cause for a renegotiation. In today’s market, however, sellers often hold the upper hand.

That’s why some buyers are using the potential for an appraisal gap as a way to strengthen their bids. They’re proposing to take on some or all of the risk of a low appraisal by adding gap coverage or a contingency waiver to their offer.

Appraisal Gap Coverage
Buyers with some extra cash on hand may opt to add an appraisal gap coverage clause to their offer. It provides an added level of reassurance to the sellers that, in the event of a low appraisal, the buyer is willing and able to cover the gap up to a certain amount.[5]

For example, let’s say a home is listed for $200,000 and the buyers offer $220,000 with $10,000 in appraisal gap coverage. Now, let’s say the property appraises for $205,000. The new purchase price would be $215,000. The buyers would be responsible for paying $10,000 of that in cash directly to the seller because, in most cases, mortgage companies won’t include appraisal gap coverage in a home loan.[5] 

Waiving The Appraisal Contingency

Some buyers with a higher risk tolerance—and the financial means—may be willing to waive the appraisal contingency altogether. However, this strategy isn’t for everyone and must be considered on a case-by-case basis.

It’s important to remember that waiving an appraisal contingency can leave a buyer vulnerable if the appraisal comes back much lower than the contract price. Without an appraisal contingency, a buyer will be obligated to cover the difference or be forced to walk away from the transaction and relinquish their earnest money deposit to the sellers.[6]

It’s vital that both buyers and sellers understand the benefits and risks involved with these and other competitive tactics that are becoming more commonplace in today’s market. We can help you chart the best course of action given your individual circumstances.

DON’T WAIVE YOUR RIGHT TO THE BEST REPRESENTATION

You need a master negotiator on your side who has the skills, instincts, and experience to get the deal done…no matter what surprises may pop up along the way. If you’re a buyer, I can help you compete in this unprecedented market—without getting steamrolled. And if you’re a seller, I know how to get top dollar for your home while minimizing hassle and stress. Contact me today to schedule a complimentary consultation.

Sources:

1. Wall Street Journal –
   https://www.wsj.com/articles/u-s-home-prices-push-to-record-high-slowing-pace-of-purchases-11621605953
2. US News & World Report – https://realestate.usnews.com/real-estate/articles/what-is-a-home-appraisal-and-who-pays-for-it

1. Money –
   https://money.com/coronavirus-low-home-appraisal/
2. S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index – https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-20-city-composite-home-price-nsa-index/#overview
3. Bigger Pockets –
   https://www.biggerpockets.com/blog/appraisal-gap-coverage
4. Washington Post –
   https://www.washingtonpost.com/realestate/competitive-buyers-waive-contingencies-to-score-homes-in-tight-market/2021/06/02/d335b050-af2c-11eb-b476-c3b287e52a01_story.html

Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for homes in the most sought-after neighborhoods. This has led some sellers to question the need for an agent. After all, why spend money on a listing agent when it seems that you can stick a For Sale sign in the yard then watch a line form around the block?

Some buyers may also believe they’d be better off purchasing a property without an agent. For those seeking a competitive edge, proceeding without a buyer’s agent may seem like a good way to stand out from the competition—and maybe even score a discount. Since the seller pays the buyer agent’s commission, wouldn’t a do-it-yourself purchase sweeten the offer?

We all like to save money. However, when it comes to your largest financial asset, forgoing professional representation may not always be in your best interest. Find out whether the benefits outweigh the risks (and considerable time and effort) of selling or buying a home on your own—so you can head to the closing table with confidence.

SELLING YOUR HOME WITHOUT AN AGENT

Most homeowners who choose to sell their home without any professional assistance opt for a traditional “For Sale By Owner” or a direct sale to an investor, such as an iBuyer. Here’s what you can expect from either of these options.

For Sale By Owner (FSBO)

For sale by owner or FSBO (pronounced fizz-bo) offers sellers the opportunity to price their own home and handle their own transaction, showing the home and negotiating directly with the buyer or his or her real estate agent. According to data compiled by the National Association of Realtors, approximately 8% of homes are sold by their owner.¹

In an active, low inventory real estate market, it may seem like a no-brainer to sell your home yourself. After all, there are plenty of buyers out there and one of them is bound to be interested in your home. In addition, you’ll save money on the listing agent’s commission and have more control over the way the home is priced and marketed.

One of the biggest problems FSBOs run into, however, is pricing the home appropriately. Without access to information about the comparable properties in your area, you could end up overpricing your home (causing it to languish on the market) or underpricing your home (leaving thousands of dollars on the table).²

Even during last year’s strong seller’s market, the median sales price for FSBOs was 10% less than the median price of homes sold with the help of a real estate agent.¹ And during a more balanced market, like the one we experienced in 2018, FSBO homes sold for 24% (or $60,000) less than agent-represented properties.³ This suggests that, while you may think that you’ll price and market your home more effectively yourself, in fact you may end up losing far more than the amount you would pay for an agent’s assistance.

Without the services of a real estate professional, it will be up to you to get people in the door. You’ll need to gather information for the online listing and put together the kind of marketing that today’s buyers expect to see. This includes bringing in a professional photographer, writing the listing description, and designing marketing collateral like flyers and mailers—or hiring a writer and graphic designer to do so.

Once someone is interested, you’ll need to schedule an in-person showing (or in some cases, two or three) for each potential buyer. In addition, you’ll be on your own when evaluating offers and determining their financial viability. You’ll need to thoroughly understand all legal contracts and contingencies and discuss terms, including those regarding the home inspection and closing process.

While you’re doing all of this work, it’s likely that you’ll still need to pay the buyer agent’s commission. So be sure to weigh your potential savings against the significant risk and effort involved.

If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission.

iBuyer

iBuyers have been on the scene since around 2015, providing sellers the option of a direct purchase from a real estate investment company rather than a traditional direct-to-consumer sales process.⁴ iBuyer companies tout their convenience and speed, with a reliable, streamlined process that may be attractive to some sellers.

The idea is that instead of listing the home on the open market, the homeowner completes an online form with information about the property’s location and features, then waits for an offer from the company. The iBuyer is looking for a home in good condition that’s located in a good neighborhood—one that’s easy to flip and falls within the company’s algorithm.

For sellers who are more focused on speed and convenience, an iBuyer may offer an attractive alternative to a traditional real estate sale. That’s because iBuyers evaluate a property quickly and make an upfront offer without requesting repairs or other accommodations.

However, sellers will pay for that convenience with, generally, a far lower sale price than the market will provide as well as fees that can add up to as much or more than a traditional real estate agent’s commission. According to a study conducted by MarketWatch, iBuyers netted, on average, 11% less than a traditional sale when both the lower price and fees are considered.⁵ Other studies found some iBuyers charging as much as 15% in fees and associated costs, far more than you’ll pay for a real estate agent’s commission.⁶

In a hot market, this can mean leaving tens of thousands of dollars on the table since you won’t be able to negotiate and you’ll lose out on rising home prices caused by low inventory and increased demand. In addition, iBuyers are demonstrably less reliable during times of economic uncertainty, as evidenced by the halt of operations for most iBuyer platforms in early 2020.⁶ As a seller, the last thing you want is to start down the road of iBuying only to find out that a corporate mandate is stopping your transaction in its tracks.

If you choose to work with a real estate agent, you can still explore iBuyers as an option. That way you can take advantage of the added convenience of a fast sale while still enjoying the protection and security of having a professional negotiating on your behalf.

BUYING YOUR HOME WITHOUT AN AGENT

According to the most recent statistics, 88% of home buyers use a real estate agent when conducting their home search.¹ A buyer’s agent is with you every step of the way through the home buying process. From finding the perfect home to submitting a winning offer to navigating the inspection and closing processes, most homebuyers find their expertise and guidance invaluable. And the best part is that, because they are compensated through a commission paid by the homeowner at closing, most agents provide these services at no cost to you!

Still, you may be considering negotiating your home purchase directly with the seller or listing agent, especially if you are accustomed to deal-making as part of your job. And if you are familiar with the neighborhood where you are searching, you may feel that there is no reason to get a buyer’s agent involved.

However, putting together a winning offer package can be challenging. This is especially true in a multiple-offer situation where you’ll be competing against buyers whose offers are carefully crafted to maximize their appeal. And the homebuying process can get emotional. A trusted agent can help you avoid overpaying for a property or glossing over “red flags” in your inspection. In addition, buyer agents offer a streamlined, professional process that listing agents may be more likely to recommend to their clients.

If you decide to forego an agent, you’ll have to write, submit, and negotiate a competitive offer all on your own. You’ll also need to schedule an inspection and negotiate repairs. You’ll be responsible for reviewing and preparing all necessary documents, and you will need to be in constant communication with the seller’s agent and your lender, inspector, appraiser, title company, and other related parties along the way.

Or, you could choose to work with a buyer’s agent whose commission is paid by the seller and costs you nothing out of pocket. In exchange, you’ll obtain fiduciary-level guidance on one of the most important financial transactions of your life. If you decide to go it alone, you’ll be playing fast and loose with what is, for most people, their most important and consequential financial decision.

SO, IS A REAL ESTATE AGENT RIGHT FOR YOU?

It is important for you to understand your options and think through your preferences when considering whether or not to work with a real estate professional. If you are experienced in real estate transactions and legal contracts, comfortable negotiating under high-stakes circumstances, and have plenty of extra time on your hands, you may find that an iBuyer or FSBO sale works for you.

However, if, like most people, you value expert guidance and would like an experienced professional to manage the process, you will probably experience far more peace of mind and security in working with a real estate agent or broker.

A real estate agent’s comprehensive suite of services and expert negotiation skills can benefit buyers and sellers financially, as well. On average, sellers who utilize an agent walk away with more money than those who choose the FSBO or iBuyer route.^3,5 And buyers pay nothing out of pocket for expert representation that can help them avoid expensive mistakes all along the way from contract to closing.

According to NAR’s profile, the vast majority of buyers (91%) and sellers (89%) are thrilled with their real estate professional’s representation and would recommend them to others.¹ That’s why, in terms of time, money, and expertise, most buyers and sellers find the assistance of a real estate agent essential and invaluable.

QUESTIONS ABOUT BUYING OR SELLING? I HAVE ANSWERS

The best way to find out whether you need a real estate agent or broker is to speak with one. I’m here to help and to offer the insights you need to make better-informed decisions. Let’s talk about the value-added services I provide when I help you buy or sell in today’s competitive real estate landscape.

Visit my website today!

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Follow me on Facebook!

Sources:

1. National Association of REALTORS –
   https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
2. Washington Post –
   https://www.washingtonpost.com/business/2020/12/09/factors-consider-when-determining-whether-use-an-agent-buy-or-sell-home/
3. National Association of REALTORS –
   https://www.nar.realtor/blogs/economists-outlook/selling-your-home-solo-to-save-money-you-ll-actually-make-less-than-you-think
4. Seattle Times –
   https://www.seattletimes.com/business/real-estate/redfin-is-first-major-ibuyer-to-sell-in-seattle
5. MarketWatch –
   https://www.marketwatch.com/story/selling-your-home-to-an-ibuyer-could-cost-you-thousands-heres-why-2019-06-11
6. Forbes –
   https://www.forbes.com/sites/nataliakarayaneva/2020/03/19/billion-dollar-real-estate-businesses-ibuyer-suspended/?sh=c7f59f921747