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Brecht Properties, LLC

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Displaying blog entries 1-10 of 25

Preparing Your House for Sale

by Brecht Properties, LLC

I can't wait for spring. But as spring approaches and people think about listing their homes, we are often asked what they should do to prepare their home for sale. The following should be of help:

Tips for Preparing Your House For Sale 

Tips for Preparing Your House For Sale [INFOGRAPHIC] | MyKCM

Highlights:

  • When listing your house for sale your top goal will be to get the home sold for the best price possible!
  • There are many small projects that you can do to ensure this happens!
  • Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!

Give us a call if you have any questions or concerns or if there is anyway we can help you with your real estate needs. 

The Importance of Access to a Listing

by Brecht Properties, LLC

Once you have your property listed, you are hoping to see willing and able buyers flock to see it. However, have you made it easy for those prospective buyers? See the following article for more:

Access: A Key Component in Getting Your House SOLD!

Access: A Key Component in Getting Your House SOLD! | MyKCM

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process, and they have asked you what level of access you want to provide to potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home.

Here are five levels of access that you can give to buyers, along with a brief description:

  1. Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience. (Status is  called "IMLS Lock Box" in this area.)
  2. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home. (This is not used very often in this area. Would most likely show as "Call For Instructions")
  3. Open Access with a Phone Call – the seller allows showing with just a phone call’s notice. (Called "Call First/Use Lock Box" in this area.)
  4. By Appointment Only (example: 48 Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house. (Called "Appointment Only" in this area.)
  5. Limited Access (example: the home is only available on Mondays or Tuesdays at 2pm or for only a couple of hours a day) - This is the most difficult way to be able to show your house to potential buyers. (May be listed as "Call for Instructions", "See Remarks", "Showing Time Link", or "Must Accompany Showing" in this area.)

In a competitive marketplace, access can make or break your ability to get the price you are looking for, or even sell your house at all.

 

As always, let us know if you have any questions or concerns about the above.  Also, we have Winter 2017 Buyer and Seller Guides available. They are free and we would be glad to email you a copy.  Have a great week.

5 Reasons Not to Sell Your Home Yourself

by Brecht Properties, LLC

This time of year, just before the big real estate sales season, some prospective sellers are wondering if they should try to sell their property themselves. If you have ever wondered the same thing, this following article should be of interest:

The Top 5 Reasons You Should Not For Sale By Owner

by The KCM Crew on March 28, 2016  

In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of those reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

If you have some questions or concerns with the above article, give us a call. Give us a call is you would like a free Comparable Market Analysis (CMA) for an estimated price of what your property would bring in the current market in Idaho's Treasure Valley.

Over 90% of U.S. Homes Have Positive Equity

by Brecht Properties, LLC

Many people think about making a move, but still worry that their property may be still underwater (owe more than the property will get at sale). The following article should be a breath of fresh air to many:

91.5% of Homes in the US Have Positive Equity

by The KCM Crew on March 23, 2016 

CoreLogic’s latest Equity Report revealed that one million borrowers regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties would regain equity if home prices rose another 5% this year. 

The study also revealed:

  • 95% of homes valued over $200,000 now have a positive equity position
  • 87% of homes valued under $200,000 have entered a positive position
  • The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit gains

Below is a map showing the percentage of homes with a mortgage, in each state, that have positive equity. (The states in gray have insufficient data to report.)

Significant Equity Is On The Rise

Anand Nallathambi, President & CEO of CoreLogic, believes this is great news for the“long-term health of the U.S. economy.” He went on to say:

“The number of homeowners with more than 20% equity is rising rapidly. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and ultralow interest rates are also factors.”

Of the 91.5% of homeowners with positive equity in the US, 72.6% have significant equity (defined as more than 20%). This means that nearly three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.

The map below shows the percentage of homes with a mortgage, in each state, with significant equity.

Bottom Line

If you are one of the many homeowners who is unsure of how much equity you have in your home and are curious about your ability to move, meet with a local real estate professional who can help evaluate your situation.

Let us know if you would like us to do a complementary Comparable Market Analysis (CMA) on your property to see what it would approximately sell for in today's market. As always, give us a call if you have any real estate related questions.  Have a great week.

Saving for a Down Payment; Faster than You Think

by Brecht Properties, LLC

Many people sideline themselves with real estate because they don't think they can come up with a down payment. The following article should, if you are one of these people, give you hope:

You Can Save for a Down Payment Faster Than You Think

by The KCM Crew on April 11, 2016 

In a study conducted by Builder.com, researchers determined that nationwide, it would take “nearly eight years” for a first-time buyer to save enough for a down payment on their dream home.

Depending on where you live, median rents, incomes and home prices all vary. By determining the percentage of income a renter spends on housing in each state, and the amount needed for a 10% down payment, they were able to establish how long (in years) it would take for an average resident to save.

According to the study, residents in South Dakota are able to save for a down payment the quickest in just under 3.5 years. Below is a map created using the data for each state:

What if you only needed to save 3%?

What if you were able to take advantage of one of the Freddie Mac or Fannie Mae 3% down programs? Suddenly saving for a down payment no longer takes 5 or 10 years, but becomes attainable in under two years in many states as shown in the map below.

Bottom Line

Whether you have just started to save for a down payment, or have been for years, you may be closer to your dream home than you think! Meet with a local real estate professional who can help you evaluate your ability to buy today.

The above article is interesting, but in some states such as Idaho, there are programs that effectively are 0% down loans. Call us if you need the names of some good loan officers, who can tell you what you might qualify for in a loan.  As always, call us if we can help you with your real estate needs. You can also help us if you can refer to us a friend or colleague who may be getting ready to sell or buy real estate.  We need listings, because all of ours are selling.

Main Reason to Use a Real Estate Professional when Selling Your House

by Brecht Properties, LLC

Before we became a real estate professionals, we didn't fully appreciate what all happens in a real estate transaction, why it all happens, and the possible pitfalls that can pop up. Leigh and I always have used a real estate professional to sell our homes. With all the disclosures, qualifying possible buyers, getting the property exposure to as many buyers as possible, and the many steps before getting to closing, we just didn't have the time or knowledge.  On buying properties, we purchased 2 with the help of real estate professionals and 2 without. Of the 2 without professional help, one turned out okay and the other not as good.  Now that we have been real estate professionals for over 12 years, we have a much better appreciation for what needs to be done for a successful real estate transaction and what to avoid in the process. The following article goes into the selling side a little more:

The Main Reason to Use a Real Estate Professional when Selling Your House

 

Every homeowner hopes to accomplish five goals when selling their home:

  1. Sell it for the best price
  2. Sell it within a predetermined time
  3. Sell it with the least amount of hassles
  4. Close on the sale the same day they move into their new home

The fifth reason is the most obvious and the most important:

  1. They want to make sure it sells.

In order to dramatically increase the chances that the house sells, a homeowner should list with a real estate professional in their market. Why? Because agents have access to the vast majority of the available buyers!!

According to the National Association of Realtors’ (NAR) recently released 2016 Home Buyer and Seller Generational Trends Report, 87% of all buyers purchased their home through a real estate agent or broker. And more that 8 out of 10 buyers in every age group used an agent (see chart below).

Bottom Line

If you want your home sold, the best way is to go where the buyers are. The NAR study revealed that the vast majority of purchasers will use an agent when they buy. Meet with a local real estate professional today if you want the best chance of selling.

Let us know if we can help you with your real estate needs. We offer complementary Comparative Market Analysis (CMA) on homes; custom MLS searches set up for your specific needs; Spring 2016 Seller or Buyer Guides; and specific market updates on your area of Treasure Valley. Just give us a call.

Spring 2016 Treasure Valley Real Estate Market

by Brecht Properties, LLC

The market has been doing very well here in the Treasure Valley. Actually the spring buying season has started early. I think that this spring will be very good for real estate. Any buyers that were on the fence hoping for lower rates are jumping into the market with the Fed starting to raise rates.

Also, the seller's market for resale properties (as opposed to new homes) is especially good. The down economy over the last 8 years didn't negatively affect material costs as much as it affected housing prices and labor. Usually a buyer will pay a 10% premium for new construction versus resale with all else being equal. The difference has recently been more like a 20 to 25% premium. This explains why the inventory of resale properties is only 1.5 to 2% and the inventory of new homes is around 4 to 6%. This means there is pricing pressure for resale homes to increase in value until the inventories come closer together between new and resale and the 10% premium is reached. So call us today if we can do a comparative market analysis to find out what your home would sell for in today's market. 

Cost of Waiting

by Brecht Properties, LLC

We often hear the question of "Is this a good time to buy?".  Below is a good answer to this question.

How to Show Your Clients the Cost of Waiting

 

With prices on the rise in most areas of the country, many first-time buyers might think that they should wait to buy. But unfortunately with interest rates also on the move, the Cost of Waiting a year to buy is climbing even faster.

CoreLogic predicts a 5.3% appreciation in home prices in the next 12 months. Freddie Mac predicts an increase of a full percentage point in interest rates.

We wanted to be able to give you 10 prices ranges to help your clients see the Cost of Waiting in a range that makes sense for your area. We have given the slides a home on the Infographics page, you can click on the icon at the top of the page to find ten price ranges showing exactly what will happen to a mortgage payment if the experts are right.

If you would like to customize the slides for an exact interest rate, or price range we have included the Power Point versions that can be customized with the use of a mortgage calculator!

Call us if you have any questions or if we can help you in any way with your real estate needs.

A Housing Bubble???

by Brecht Properties, LLC

Occasionally you may hear talk about another real estate bubble forming.  Personally, I don't see it happening any time soon.  The following graph shows where we are at now compared to the peak of the market before the bubble burst

Price & Time Since The Peak Map Updated

by The KCM Crew on August 17, 2015 in KCM Updates

With over 7 to 8 years since the peak, current prices do not appear to be out of line, or tending toward a bubble. It's a healthy market: a good time to buy or sell with the still low interest rates.  Let us know if we can help you in any way with your real estate needs.

Where Are Mortgage Rates Headed?

by Brecht Properties, LLC

Many people ask "How's the real estate market?", to which I say "It is Great".  However, as someone once said "The only things that are consistent are change, death, and taxes." The following article addresses change as it relates to the real estate market:

Where Are Mortgage Rates Headed? This Fall? Next Year?

by The KCM Crew on August 10, 2015 in For BuyersInterest Rates

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

Below is a chart created using Freddie Mac’s July 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

Dr. Frank Nothaft, the SVP & Chief Economist for CoreLogic, had this to say in their latest MarketPulse:

“If you are thinking of buying a home and have the financial means to do so, this could be a good time to take a look at the neighborhoods you are interested in. We expect home prices in our national index to be up about 4.3% in the next 12 months, and mortgage rates are also likely to increase over the next year.”

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

Displaying blog entries 1-10 of 25

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Photo of Brecht Properties, LLC Real Estate
Brecht Properties, LLC
Silvercreek Realty Group
1099 South Wells St Suite 200
Meridian ID 83642
208-794-8550
208-939-3233
Fax: 208-401-0747