Tag Archives: Selling your home

Home Prices Predicted To Explode! BUY NOW!

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Self-made real estate millionaire Barbara Corcoran says it’s a ‘good time to buy’ because home prices are going to ‘explode’ when mortgage rates drop!

Alena Botros
Fri, June 2, 2023 at 2:00 AM PDT·4 min read

Appearing as a guest on Good Morning America this week, Barbara Corcoran answered several questions from viewers, ranging from when the right time to buy a home is to how to win a bidding war. As for the former, Corcoran said now is the time to buy.

“It’s a good time to buy because the minute interest rates go down, everybody’s waiting for them to go down even by a point, and when they do, they’re going to come rushing back in the market,” Corcoran said. “Prices are going to explode, and you’re going to be paying more for the same house. And you can always refinance, remember, when and if interest rates come down.”

It’s not Corcoran’s first time advising against even attempting to time the market. Previously, on the Chicks in the Office podcast, Corcoran said to forget about the timing, again stressing that now is always the time to buy.

The self-proclaimed “NYC Real Estate Queen,” founded the Corcoran Group with a $1,000 loan in 1973, which she famously turned into $66 million, after selling her business in 2001. She’ll always be a powerhouse within the real estate industry, but now most people know her as the spunky, blunt, and well-dressed shark on ABC’s Shark Tank.

Another viewer asked Corcoran how to win bidding wars, saying that he and his fiancee have been looking for a house but have been out bid every time they’ve found one they like. Corcoran said the key is to look like the “best deal in town,” while playing on the seller’s emotions.

“You have to be prequalified for your mortgage so you can go in there as an all cash deal. I’m an all cash deal, it’s not contingent, I already got my mortgage—you want that power behind you,” Corcoran said. “You also want to go in and realize it’s never just a financial deal. Get a nice piece of stationery and handwrite a note to that owner, and tell them how much you love the house. It makes a difference because people like to sell homes to people who love their house.”

As for the different types of mortgage loans that buyers can choose from, Corcoran said it depends on how long you’re going to live in that home. If you’re going to live there a long time, or at least except you are, Corcoran said a conventional rate mortgage at the shortest term you can afford, is the best option. On the other hand, if you’re only going to be living there for a short period of time, likely under five years, she said you’ll want to get an adjustable rate mortgage because it’s cheaper.

When Corcoran was then asked if there’s any way to get relief as someone who’s “house poor,” a term used to describe someone that’s spending more than 30% of their income on housing, she answered: “you don’t get relief from that.” In coastal cities, Corcoran said, people are spending more than 40% of their income on housing. But there’s a light at the end of the tunnel, in her view—people are forced to save by paying off their mortgage.

“When it comes time to retire, for most of us, it’s the only money we have to retire on,” Corcoran said.

Now if you want to make the most out of your home purchase, she said you’ll always get the best return in a high-traffic area. And if you want to make a killing, buy a home in an up and coming area. Corcoran’s formula for doing so? Follow the creative community and see where they’re living, and check out the nightlife.

And of course, a Corcoran Q&A couldn’t be complete without touching on rentals and renting. As for rent prices, Corcoran said they’re going to continue to go up, and there won’t be any relief. When interest rates go up and chase people into the rental market, rents generally go up. But when interest rates go down, that doesn’t mean rent follows. Corcoran said she’s never met a landlord that brings down their rent, ever. And, most of us know how she feels about renting—that it’s a “no-win game.”

This story was originally featured on Fortune.com

Remember~ date the rate, marry the home. As the famous Will Rogers said ” Don’t wait to buy real estate, by real estate and wait. Good advice everyone and I am just the gal to help you so reach out with all your real esate questions and needs in the Puget Sound region.

What, Where and When to Shred.

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This is an oldie but a goodie handout. I like to give to my clients as they are going through paperwork when they are decluttering for us to sell their current home or home buyers when packing up for their move. We all have it lots and lots of paperwork! This time of year you may be done with taxes and have all the documents still sitting around or, you may be feeling like spring cleaning and wondering what documents you really need to keep and for how long. I hope this helps.

You don’t have to spend thousands of dollars to add value to your home.

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It’s Springtime! 🌷If you are considering selling your home 🏠 or, just want to spruce it up here are my top tips to add value.

Simple upgrades to increase your home’s value You don’t have to spend thousands of dollars to add value to your home. Here are some easy and “financially” easy on the pocketbook tips.

Change fixtures and hardware. This adds appeal and newness quite easily. If you’re selling your home a new mirror in the bathroom and new fixtures can make a huge difference. Upgrade sinks, showerheads and faucets to newer water conserving models in sleek finishes. Sorry folks but brass is dated and out! If wanting a remodel on a larger scale replace cabinets, windows and doors. New molding that’s been painting also really pops out.

Declutter. Clean and organize storage areas including the attic and garage. Believe it or not organization adds tremendous value. Keep kitchen and bathroom counters clear.

Spiff up landscaping. Ever hear of curb appeal? An ugly front yard can torpedo your homes value. Add flowers to add color. A study was done on homes for sale in which red flowers were used on the front door step. These homes sold faster and were more appealing to the client. You can also add path lighting for style and safety. Dust off the exterior. Gutters, siding and windows are often forgotten. Clean them! Crud cutter is wonderful for cleaning off gutters and getting the grime off. Also make sure everything is properly sealed and is good shape. It looks better and helps conserve energy.

Replace appliances. From the refrigerator to the washer and dryer upgrade appliance to new energy efficient models to add instant value and convenience not to mention Earth friendly.

Are You and Your Home Prepared for Winter?

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I have posted before but I think a great reminder that we are still in winter and storms happen. Take care of yourself and your home. 🌩⛈🌬💨

Remodeling What Is The Biggest Bang For The Buck?

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There are so many good reasons for home improvement — even in a tough economy. You may want to boost your home’s future sales value, add livable space, refresh an aging room or feature. Or you may just want to enjoy your home more, especially if you wanted to move but the market didn’t cooperate. Find out which projects could bring you joy — and some cash back!

Is the kitchen the biggest project that will pay you back or the bathroom?

A Room By Room Tour

What is happening this fall in the Real Estate Market?

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Rate Update For the Week of 10/3/22
  Last WeekThis WeekChange
Fxd 30 *6.76.79Worse by .09
Jumbo Fxd 30*5.955.85Better by .1
5/1 ARM*6.126.05Better by .07
VA/FHA Fxd 30 *6.256.55Worse by .3
10 Yr US Treasury3.7413.801Worse by ..06 (rates tend to go up when yield goes up)
 5% 30 YR UMBS97.597.781Better by .281 (rates go down when the bond price goes up)
     *From MND’s Rate Index  

Deals will hinge on negotiations this fall. Here’s how buyers’ agents win

‘There was no negotiation over the last couple of years,’ Max Stokes of Compass says. But that’s beginning to change — gradually. With a few tips, buyers can prevail at the negotiating table

BY LILLIAN DICKERSON

It’s been a long couple of years for homebuyers and their agents.

The pandemic-fueled tornado of low inventory, tons of buyers flocking to the market amidst record-low interest rates and would-be sellers holding onto their homes for fear of being left out in the cold with no place to go, made for a brutal homebuying experience in many places.

“Last year, it was pretty much come in every house guns blazing, do whatever you could do to acquire that house,” Max Stokes of Compass in Northern New Jersey told Inman. “There was no negotiation over the last couple of years.”

But the tides are turning.

Volatile — and comparatively high — interest rates coupled with an uncertain economy are starting to shift the market’s balance. Sellers don’t have the hold on the market that they once did. And it’s time for buyers to start taking advantage of the shift.

As a balanced market comes into view on the horizon, here’s how buyers’ agents are changing their negotiation tactics to help their clients achieve some wins that were once impossible in the frenzied market of the last two or so years.

Ask the developer to cover closing costs on new properties

On new development properties in Manhattan, where Leslie Singer of Brown Harris Stevens works, the taxes folded into closing costs can be a lot to swallow. In the past few years, sponsors (another term for developers) have typically put the onus of mansion and transfer taxes on the buyer of the property.

On New York City properties priced below $500,000, transfer taxes are 1 percent and on pricier properties, that tax increases to 1.425 percent. Mansion taxes kick in on properties priced at $1 million or higher and range from 1 percent to 3.9 percent, depending on the exact price.

But in this market, Singer said developers are a lot more willing to negotiate.

“In these types of markets, sponsors may be more flexible on the backend, such as assisting with closing costs,” she told Inman.

Leverage different listings against each other

With inventory staying on the market a bit longer these days, buyers have the time to comfortably compare different active listings — and potentially leverage them against each other if a seller is really being a stickler when it comes to negotiating, Stokes said.

With properties that he has represented recently, Stokes said homebuyers have pointed out to him other similar properties in the same market, and why they might be a better offer than his own listing, lighting a bit of a fire under the seller.

“[They’re] pointing out the differences in the comparables that are on the market and trying to leverage three [listings] against each other,” Stokes said.

Marry the house, date the rate

With elevated mortgage rates, a lot of buyers are hesitant to get out into the market now. But Gretchen Rosenberg of Kentwood Real Estate in Denver said that she and her agents are encouraging homebuyers to get off the fence and commit to a home if they love it. Mortgage rates will be in flux for a while, so buyers should get the house they want now and keep refinancing for a better rate in mind for the future. In other words, “marry the house and date the rate,” Rosenberg said.

“We are out there talking rates and just reminding buyers again, hopefully this is a longtime purchase. It’s not a year, it’s not like you’re a renter, you’re going to be in it for a while, and so someday down the road — we don’t know when, we can’t promise when rates will come back down — you’re likely going to be able to refinance. You also might be able to buy down the rate now, depending on your position.”

Get more recent data to back up the best offer

In the past, Rosenberg said she might gather comps from the last six months of sales to inform her buyer’s offer on a property. But with the market changing rapidly over the last few months, in large part as a result of volatile mortgage rates, Rosenberg said data from six months ago is already out of date. To help buyers craft the best offer that’s most likely to succeed, her agents are digging into data from a neighborhood’s most recent sales.

“They’re diving more into the data,” she explained. “They’re saying, well, what have the last couple of sales been? Not the last six months of sales, which is what we would normally do to comp a house, but the last couple of sales in this neighborhood, and how many price reductions have there been in this neighborhood? What are the days on market now? What’s the percent original list versus final sale price in the last 30 days?”

Don’t waive your rights

Stokes is working with homebuyers now who also transacted a home earlier in the pandemic, and he said he had to make it clear to them that waiving things like a home inspection or appraisal were concessions they wouldn’t even consider this time around — even if he didn’t necessarily encourage it the first time.

“You don’t need to do that anymore,” Stokes said. “The market’s normalizing, if not turning, so keep your rights in the contract … there’s no reason to do it just to do it.”

“People were voluntarily waiving [inspections] and just doing escalation clauses,” Dawn Maddux of Engel & Völkers Western Frontier in Missoula said. “In the 11 years I’ve been in real estate, I’ve not ever seen that before … Now, we’re kind of getting back to writing normal offers, maybe at or a little below asking price based on what the market will bear and based on what comps show, where before, it was just a frenzy.”

Press pause

Along the same lines, Maddux elaborated that homebuyers shouldn’t feel rushed to make decisions before they’ve done all their due diligence on a property, and buyers’ agents should actively encourage this to avoid regret later.

“They have time to do their research there — there’s not a frenzied competition,” Maddux said. “It’s honestly better for the seller because, what we’re seeing happen, is there’s a lot of lawsuits pending where buyers jumped into properties, they end up with buyer’s remorse, they [find] out something [about] the house that the seller didn’t disclose, probably because they didn’t know about it, and they didn’t get an inspection so they wouldn’t have had a way to know.”

In this market, when a deal isn’t as sweet as a homebuyer or the buyer’s agent feels it could be, under the right circumstances, there’s no shame in even stepping away from the negotiations for a week or two altogether.

That opportunity arose recently for Stokes and one of his buyers, who was interested in a fixer-upper that he thought was overpriced given how much money would need to go into renovating the property.

“I said, ‘Well, there’s not going to be many buyers out there that are going to be willing to take this on their shoulders right now,” and [the sellers] disagreed,” Stokes told Inman. “And I just told my buyer, ‘Just trust me — you’re one of the only buyers out here that would do this right now. Take a deep breath, sit back, and let’s just watch this for a minute.’”

The seller reached back out a week later, wondering if they were still interested, and Stokes said they were considering some other options. Another week after that, the seller reached back out again and said they would drop the price to match the buyer’s offer

Must have a good location when selling your HOME

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Add seasonal flowers for curb appeal

One thing is common among all properties that receive multiple offers these days: the home is in a good location. Location is nearly always what drives homebuyers in their search. Before considering price, number of bedrooms or size of home, a buyer looks for location.

If your home is on a busy street, not in the best school district or near a freeway on/off ramp, chances are you won’t receive the kind of activity that a well-located home would. In that case, work closely with your agent to price the home correctly.

Must be priced right

Buyers in any market look for perceived value. Homes priced 10 percent (or more) over their market value won’t get noticed. Pricing isn’t an exact science, and it’s nearly impossible to pin a precise number to a home until buyer and seller sign a contract and close. Then, the price officially becomes the home’s market value. Until that time, agents can provide sellers with a value range. Have a good location? Does your home show well? Are you in a strong sellers’ market? Price your home on the bottom of that price range and you’ll be sure to attract buyers — and possibly multiple offers.

Must show well

A generation ago, sellers simply did some deep cleaning and maybe some de-cluttering before their first open house. Presentation wasn’t as important then as it is today, given online listings. More buyers today develop an emotional connection to a home. They want to imagine themselves in your home and not feel like they’re a guest. What does that mean? Appeal to the masses. If you have a good location and you plan to price your home realistically, then you need to make sure you give buyers what they want. If you can afford it, make cosmetic upgrades; invest in some staging and work to turn your home into a “product.” Emotionally disconnect from your home and try to see it more objectively.

Plan on having the home in perfect condition for the photo shoot. A buyer’s first impression of your home likely will be via the Internet or an email from their agent. Make them want to step inside. The more buyers you attract to your home, the more activity.

Know your market

Don’t assume that national trends apply to your region, city or neighborhood. If you’re not in a strong sellers’ market or you spend a fortune on last-minute upgrades, you could be in for a giant surprise. Just because you hear about bidding wars and multiple offers on the news doesn’t mean that applies to your area. Home selling is like the stock market it is goes up, down and can have a bit of a lull when interest rates go up and what is happening in the news for your area and even around the world.

Work with a good Realtor and, no, not all agents are Realtors learn the difference.  A local Realtor knows the area and what has recently sold as well as ones that have sold over the past six months to a year. Knowing those homes, having walked inside and personally knowing the agents who have sold them matters. This is market data that an outsider just doesn’t have access to. This knowledge empowers good local agents to educate their sellers.

Seller Prepare For The Home Inspection

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Be Prepared!

I know the last year has you asking yourself I don’t need to worry buyers are waiving inspections. I guarantee you that is changing and if you do not wish to have a Seller’s pre-inspection than you may wish to check out this list. You can make your home more attractive to buyers and increase your likelihood of obtaining a positive inspection report by performing routine maintenance now before going on the market.

A visual inspection does not pass or fail a house but simply describes those items in need of minor or major repair or replacement. The inspector will visually examine the structure, crawl space, attic, mechanical components and all interior rooms, as well as closets.

On the day of you can help by having keys available to any locked doors, removing obstacles around water heaters and other appliances, removing items from closets that provide access to attics, and so on. Please be ready to indicate the location of hidden components such as the water meter, electrical panel, sump pump and main sewer clean out.

You can eliminate seasonal limitations on the inspection by clearing pathways of snow or debris. Ensure that appliances not tested because of the temperature (such as air conditioners in winter) are operation. Move boxes and storage items away from interior walls and make certain the entire perimeter of the house can be observed. Finally, leave pets with a friend or, take them with you, for the few hours of the inspection.


EXTERIOR COMPONENTS

  • Repair minor defects in the exterior wall coverings.
  • Repair damaged masonry on walkways and steps.
  • Repair missing or loose railings on decks and steps.
  • Recaulk around exterior windows and doors.
  • Replace missing or damaged shingles
  • Recaulk around flashing.
  • Clean debris from gutters.
  • Ensure downspouts are intact and water drains away from the house.
  • Trim trees and shrubs away from the roof.

INTERIOR COMPONENTS

  • Loosen any windows that are painted shut.
  • Replace missing or faulty hardware on doors and windows.
  • Repair any broken or cracked windows.
  • Replace damaged baseboard or molding.
  • Recaulk around bathtub and kitchen/bathroom sinks.
  • Re-grout tub and shower enclosures and the kitchen backsplash.
  • Repair leaky faucets and fixtures.
  • Unclog slow drains using commercial cleaner.
  • Replace oversized fuses with proper fuses.
  • Repair faulty receptacles and switches.
  • Ensure exhaust fans are in working order.
  • Have the fireplace chimney swept.
  • Have the furnace or other major appliances serviced.
  • Ensure central vacuum, garbage disposal, water softener and other ancillary components not part of the standard inspection are in working order.
  • Replace dead batteries in smoke and CO detectors.
  • Have service contracts, manuals and warranties available and in a drawer for the inspector/buyer to access.

Prior planning always pays off and makes for a smooth transaction after securing a buyer. Reach out to me for questions on this or if you are considering selling your home.

Considering A Discount Brokerage To List Your Home For Sale?

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Considering a discount brokerage for listing service? Knowledge is power, and I would like to give you some power to make a wise decision for the largest financial transaction that most people will ever make.

With the hot market our area has been experiencing the last few years discount brokerages with listing services have “popped up” to get in the door. There are two sides to every transaction a listing side and a buyer side. If the listing side does 1.5% you have the buyers side at 3% so you are at 4.5%. If you devalue the buyer side the agent may not show your home or talk their clients into another one in the neighborhood that is offering a higher rate.

I know you work hard at your job and for your paycheck and believe me we do too. Generally, I have found agents who give their commissions away are part-time, new to the business or have very little real estate knowledge. I would like to give you an analogy “Nordstrom vs. Walmart” There are shoppers for both but why does one choose to pay Nordstrom prices over Walmart? Plain and simple: experience, knowledge, customer service and value. It is the same in every part of life if you think about it. The cheap roofer or the one you know will do the work right the first time? If you are a consumer, you may get lucky and come out alright but, then again, how much money will you leave on the table because you have an agent who cannot negotiate and doesn’t have the time to spend any effort on your transaction. They simply collect a fee and move on. Again, It’s the largest financial transaction most people will ever make. It just seems foolish to trust someone who does not value themselves and therefore, how can they value you or take care of your best interests?

I would like to share some real comments from local Realtors (not agents) around the area in response to the question How do you feel when your competing with discount brokerages in today’s market?

  • As the old saying goes you don’t get something for nothing. Any agent would have to be nuts to offer such low fees. I’m sure their trying to up-sell the customer once they get the listing ie staging, better photos ect.
  • Customer service and partnership. They have no interest in you past the extent of filling in the forms. No rapport is built or partnership. They will not verify your data input, nor will they scrutinize your form 17. They won’t negotiate on your behalf. We had a case a few months ago where a 1% entered exactly what the owner told them to and it was grossly wrong. Any Realtor would have caught this. We called the seller on this and explained to him how to fix it and even corresponded with Cheapo agent to get it corrected. That seller recognized the ‘partnership’ and ‘customer service’ value we presented and told us that he would be contacting us in the future. We saved him a potential lawsuit. If a seller isn’t investing in a Realtor who in turn is invested in them, then they are doing themselves a grave injustice!
  • Lower fees are not the way to go, offer better value for your client. The quality of service and representation of the client is reflected in the commission.
  • You get what you pay for. I think it’s typically just a listing service. They don’t provide any benefits to their clients. We are a full-service Broker with a network of vendors to help give our clients the best possible service.
  • Getting a buyer to write up an offer on your house is only the first step, and quite frankly, in this market that’s the easy step. What we’ll do is get you the best buyer who we’ll negotiate the best price and terms to net you the most money, and make sure the sale closes. Because if your sale doesn’t close it won’t really matter how much of a discount you get in commissions right?
  • I provide service & knowledge. Good service costs. We do have some discounters in our area as well as DIY providers. I try to educate potential sellers diplomatically that “you get what you pay for.  My expertise, experience and marketing abilities have been honed over decades. I have no intention of giving that away. “If you work for “peanuts you get monkeys” 
  • Cheap Realty type outfits come and go, but the only get a small smidgen of the market; if this was really an effect approach to market your home and get top dollar, don’t you think everybody would be using these gimmicks? You want top value and exposure, correct?
  • As Realtors we adhere to a strict code of ethics, agent’s do not.
  • Most all of us are in business for ourselves not our brokerages. If we do not do an amazing job, we will not be in business for long as referrals will build or destroy any business. Professional Brokers rely on referrals to grow their business therefore our best interest is the client. If we do not exceed expectations, then they will not refer us to anyone and we will have to be a 1%.
  • It will affect all of us in the industry in a negative way. When clients ask us to cut our commissions, we need to ask them if they would expect their surgeon to cut his commission! We work hard for our money, and it’s not always easy.
  • I think people doing this are incompetent and couldn’t fight their way out of a wet paper bag.
  • Very easy to answer. I won’t show the property.
  • You get what you pay for.
  • I think it’s terrible. It lowers our standards on what we can do for our clients as far as staging and marketing but also makes our profession look “cheap” now. Buyer agents will most likely not show listings that offer low commissions, so it does not do the listing any good. The other point is, when buyers know that full commission is not offered…they will negotiate down…as they do not want to feel like they are now over paying. 
  • They are desperate and will offer less value to the client. They always come and go with every robust market.
  • Cheapo is not interested in providing value just a quick transaction and nothing more.
  • It’s just a disservice to the owners and sets the bar very low for the Realtors in the industry.

Compare and contrast these lower listing services with that of a professional Realtor and you will see how much more value you receive working with a professional. For example, you have a trained expert that understands value. I am a Certified Master Negotiator, Managing Broker, Senior Real Estate Specialist, Military Relocation Expert and more! Sounds like a lot right? It is but I value the utmost trust my clients put in me and furthering my education on their behalf has given me a wealth of knowledge that only benefits my clients. The proof is obvious to me as most all my clients come back to me years later to help them again and keep referring me. My team knows how to decipher the fine details of any, and all, offers and we know how to negotiate with them prior to presenting the offers to you. This not only saves you time it achieves the most amazing offers with details and timelines that you and I construct at the beginning. I negotiate to not leave your money on the table. To get you the most net knowing all the financing types available to buyers and what will work best for your unique situation.

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With me and my team you have a partner that will guide you through your transaction from start to finish. As a professional we represent you and no other. You can expect excellent communication from me and you will always know the status of your transaction. Additionally, not only do we value our partnership with you during your transaction we will stay in contact with you long after. Buying or selling a home is stressful therefore we will manage the details that will lead to a less stressful transaction. Another point of value to consider is we work with a network of many companies that will add value such as lenders, home inspection firms, title and escrow firms, moving companies and other professional’s as well. I hope this assists in showing the added value from a professional Realtor is so much more beneficial to you. Wouldn’t you agree?

Put me to work and you will experience amazing results our sellers have been receiving.

By the way, Red** did 35,000 transactions last year, and REMAX as a whole, about 1.2 million. What does this say? WAY more people trust a REMAX agent than an hourly agent who gets paid regardless of whether the home sells or not.