Top Trending Articles From The Real Estate And Home Inspection Industry https://home-inspection-news.spsinspections.com An SPS Inspections Curated Exclusive News Feed Wed, 24 Feb 2021 16:20:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.1 1031 like-kind exchanges: On the chopping block, or here to stay? https://home-inspection-news.spsinspections.com/1031-like-kind-exchanges-on-the-chopping-block-or-here-tostay/ Tue, 23 Feb 2021 18:44:30 +0000 https://home-inspection-news.spsinspections.com/?p=30794

Researchers, Realtors and industry action groups argue that the rippling economic effects from changes made to Section 1031 would be a blow to the real estate industry and investors.

President Biden’s tax plan stands to make a significant impact on everyday citizens and investors alike.

If passed, the plan would increase taxes on the top 1 percent of earners by 13 percent to 18 percent of after-tax income, and indirectly increase taxes for most other groups by 0.2 percent to 0.6 percent, according to the Committee for a Responsible Federal Budget, an independent, non-profit, bipartisan public-policy organization based in Washington, D.C.

But one proposal that could potentially rock the real estate industry, if passed, is the end to Section 1031 “like-kind” exchanges for investors with annual incomes of greater than $400,000.

1031 exchanges allow real estate investors to defer capital-gains taxes when they sell properties by directing the sale’s proceeds into new investments. Many investors conduct these exchanges on a continual basis, and while that means the tax continues to be deferred, it’s not as though it goes away altogether — that amount still comes due to investors eventually. In fact, a 2015 study conducted by Professors David C. Ling (University of Florida) and Milena Petrova (Syracuse University) determined that nearly 88 percent of exchanges end in a taxable sale, “resulting in substantially more tax being paid than would have been due had the exchange not occurred.”

This 100-year-old tax law has been considered for repeal in the past (prior to the 2017 tax reform bill, for instance), but lawmakers have usually come around to recognize the value it has in stimulating the economy. This time, that stimulus may be especially valuable as the U.S. economy battles the impacts of the pandemic.

NAR President Charlie Oppler

“Like-kind exchanges allow investments to be shifted to the most productive and efficient uses possible, providing flexibility that is desperately needed now with the commercial real estate industry facing significant challenges in the months ahead,” National Association of Realtors (NAR) President Charlie Oppler said in a statement emailed to Inman. “As one of our top policy priorities of 2021, NAR is strongly opposed to the repeal or limitation of the like-kind exchange provision, and we will continue our work to educate lawmakers on the provision’s importance to the recovery of the U.S. economy.”

One potential impact the repeal of these exchanges could have is causing investors hold on to properties for a longer amount of time, which could ultimately have a ripple effect on Realtors, appraisers, title companies, inspectors and others involved in different levels of the transaction.

“The elimination of this program for high-income investors could cause them to hold on to properties for longer than in the past and may have the effect of decreasing supply and demand,” Lowndes Law attorneys Samantha Duran and Joaquin Martinez recently said in a post for legal news resource JD Supra.

If changes made to Section 1031 does result in dissuading investors from completing more transactions, the result could actually be a decline in total tax revenue. Beyond that, an Ernst & Young study conducted in 2015 determined that a repeal of Section 1031 would slow economic growth, reduce the U.S. GDP and negatively impact small businesses.

Marc Landis 150x150 1

Marc Landis

“If Section 1031 is repealed, state and local jurisdictions which impose real estate transfer taxes on transactions will see a decline in tax revenues to accompany the decline in transactions,” Marc Landis, managing partner of Phillips Nizer LLP, said in a statement emailed to Inman. “Some of the states that could face a severe impact include New York, New Jersey, Connecticut, Delaware, Michigan, New Hampshire, Pennsylvania, Florida and Washington; municipalities such as New York City, Chicago, Los Angeles, San Francisco, Philadelphia and Pittsburgh would also take a hit.”

Data from a survey conducted in 2015 by NAR also suggests changes made to Section 1031 would have a palpable impact on individual Realtors’ transaction volume. Forty percent of Realtors said that the total bulk of their transactions would not have occurred between 2011-14 if like-kind exchanges did not exist. Another 24 percent of Realtors said between 75 percent and 99 percent of their transactions would not have occurred under the same circumstances during the same period. A whopping 96 percent of Realtors surveyed also reported that a repeal of like-kind exchanges would likely result in a decrease in real estate values.

wagner dan

Dan Wagner

“Every time a 1031 is done, that money that would be going to Uncle Sam, actually it’s plowed back into the deal where you have, I guess it’s like 30 jobs are created, something like that,” Daniel Wagner, senior vice president of government relations at The Inland Real Estate Group, told Inman. “Where you recognize the fact that the Realtor makes money, the appraiser makes money, the person that does the survey, and it goes all the way down, and then you get to the contractors — the union people make money, they’re going to renovate that apartment complex, they’re going to put new LED lights in, it’s going to be all that kind of stuff. So that’s a big deal.”

Wagner also told Inman that in his experience as a member of the Realtors Political Action Committee (RPAC), one of the main reasons that Section 1031 is so often put on the chopping block by legislators is the rate of turnover in Washington. He said that new or younger staffers who come in with a new administration often have no idea what it is — or the ins and outs of the waterfall benefits it can have on different layers of the economy — which puts pressure on organizations like RPAC and NAR to constantly educate lawmakers about the tax law.

But with this administration, Wagner is hopeful that if Realtors do their job of adequately educating lawmakers about Section 1031, the law will stay intact.

“So I don’t believe, if we do our job as an industry, I don’t believe the 1031 will go away,” Wagner said. “If we sit back and just assume that people know what the 1031 is about, then I think it goes away. So we have to be proactive and educate, and it’s all about education. ”

Email Lillian Dickerson

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FHFA: Fourth-quarter home prices saw record growth https://home-inspection-news.spsinspections.com/fhfa-fourth-quarter-home-prices-saw-record-growth/ Tue, 23 Feb 2021 18:44:26 +0000 https://home-inspection-news.spsinspections.com/?p=30779

U.S. home prices surged 10.8 percent from Q4 2019 to Q4 2020, according to the Federal Housing Finance Agency House Price Index (FHFA HPI), released on Tuesday. Meanwhile, home prices also rose 3.8 percent between the third and fourth quarters of 2020.

Both metrics mark the greatest annual and quarterly increases in home prices since the FHFA began tracking the data.

“House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA HPI,” Dr. Lynn Fisher, deputy director of FHFA’s Division of Research and Statistics, said in a statement. “Low mortgage rates, pent up demand from homebuyers, and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic. In particular, house prices in western states and cities saw the highest rates of growth, where annual gains often rose above 10 percent.”

Every state, as well as the District of Columbia, saw annual home price growth, with the greatest surges seen in Idaho (up 21.1 percent), Montana (up 15.5 percent), Utah (up 15.4 percent), Arizona (up 14.1 percent), and Connecticut (up 14.1 percent).

The metro area with the greatest annual price growth was Boise City, Idaho, where prices rose by 23.4 percent from the fourth quarter of 2019. San Francisco-San Mateo-Redwood City, California, saw the weakest prices, increasing by just 2.4 percent year over year.

Out of the nine census divisions, the Mountain division (which has led all divisions for 13 consecutive quarters) continued to see the greatest price appreciation, reporting a 13.3 percent annual price gain and a 4.6 percent quarterly price gain. Price growth was weakest in the West South Central division where prices increased 8.6 percent on an annual basis.

The FHFA states that the HPI is is calculated based on “a weighted, repeat-sales statistical technique to analyze house price transaction data” using “seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac.”

Email Lillian Dickerson

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December home prices rose 10.4%, the largest jump in 7 years, Case-Shiller says https://home-inspection-news.spsinspections.com/december-home-prices-rose-10-4-the-largest-jump-in-7years-case-shiller-says/ Tue, 23 Feb 2021 18:44:14 +0000 https://home-inspection-news.spsinspections.com/?p=30758
A houseÕs real estate for sale sign shows the home as being Òunder contractÓ in Washington, DC, November 19, 2020.
Saul Loeb | AFP | Getty Images

December is usually the slowest month for the housing market, but price gains didn't slow down one bit in 2020. In fact, they rose at the fastest pace in seven years.

Home prices nationally increased 10.4% compared with December 2019, according to the S&P CoreLogic Case-Shiller Home Price Indices.

That is the strongest annual growth rate in over six years, and a significantly stronger gain than in November, when prices were up 9.5%. It also ranks as one of the largest annual gains in the more than 30-year history of the index.

The 10-city composite annual increase was 9.8%, up from 8.9% in November. The 20-city composite posted a 10.1% gain, up from 9.2% in the previous month. Detroit was excluded, due to Covid-related data collection issues.

“2020's 10.4% gain marks the best performance of housing prices in a calendar year since 2013,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “From the perspective of more than 30 years of S&P CoreLogic Case-Shiller data, December's year-over-year change ranks within the top decile of all reports.”

Phoenix, Seattle, and San Diego continued to show the strongest price gains among the 19 cities surveyed. Year-over-year prices in Phoenix rose 14.4%. In Seattle, they rose 13.6% and San Diego saw a 13% increase. Eighteen of the 19 cities reported higher price increases in the 12 months ending December 2020 versus the 12 months ending November 2020.

“These data are consistent with the view that Covid has encouraged potential buyers to move from urban apartments to suburban homes. This may indicate a secular shift in housing demand, or may simply represent an acceleration of moves that would have taken place over the next several years anyway,” Lazzara said.

Home prices began to see big gains last summer as Covid-driven demand from the stay-at-home culture descended on the housing market. Record low supply combined with record low mortgage rates caused bidding wars on homes across the nation.

Mortgage rates turned sharply higher last week, which will cut into affordability heading into the 2021 spring market. Prices generally lag sales, so if sales do suffer, the market is is unlikely to see significant cooling of prices for several months.

Correction: The 10.4% increase in home prices nationally was compared with December 2019. An earlier version had the wrong month.

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11 things agents should know about portable storage https://home-inspection-news.spsinspections.com/11-things-agents-should-know-about-portable-storage/ Tue, 23 Feb 2021 18:44:12 +0000 https://home-inspection-news.spsinspections.com/?p=30749

Portable storage is a moving method that has been growing in popularity in recent years — and for a good reason. Portable storage containers can make homesellers’ job of getting their home ready for the market a lot easier. As a real estate agent, your clients might come to you for advice about using a portable storage unit.

So, what do you need to know to best assist your clients with their move? Making a move with PODS is often a popular choice, but are there other worthwhile moving container companies? How much does a moving container cost? What are some of the essential considerations to advise my clients for their portable storage needs?

Let’s look at the issues involved with renting a portable moving and storage container so you can be better equipped to give your clients sound advice.

1. Choosing a moving container

Portable storage units allow people to have their possessions moved more conveniently, with the containers delivered right to their homes. Once the consumers fill them with their belongings, the company will collect and deliver them to their new address.

A service like this can also benefit sellers who need to free up space in their homes when preparing for showings. Containers can be delivered, filled and taken to a storage facility for as long as required.

While using a moving container will typically give people more time to pack moving boxes or somewhere to store possessions when staging a home, there are other things to consider as well.

2. What are the best moving container companies?

The following companies have an outstanding reputation in the moving and storage container industry. Choosing one of these companies in your location should work out well: PODS, U-Haul, 1-800-Pack-Rat, U-Pack and Smartbox.

When it comes time to pick a moving container company, you should advise your clients to ask a series of questions to understand what they need to know. Policies and procedures can vary from company to company.

3. Understand packing considerations with portable storage

Your clients will need to be aware that their possessions could be at more risk of damage in a storage unit. Items should be carefully packed so they don’t move too much or fall during transportation to their new location.

4. Weatherproof units are harder to find

There’s also the risk of water damage to your clients’ possessions. A portable storage unit can be constructed of many different materials that might not prevent rainwater from entering the container. If clients leave their containers outside their home for too long, they run the risk of their belongings not staying in the same condition they were when they were initially packed.

Some companies offer weatherproof containers, while others only offer units that are weather resistant. The material used in the container’s construction — metal, plastic or wood — will offer different protection levels. This should be made clear on the company’s website to ensure clients get the right amount of protection for their things.

5. Lack of climate control

If the homeowner moves items that could be damaged by temperature extremes, leaving them in portable storage could be a problem. If your clients have valuable possessions and think climate-controlled storage is necessary, you would be much better off advising them to choose a storage facility instead.

6. Watch out for container problems

Your clients should make sure the containers they receive don’t have problems that could cause damage to their property. Ideally, the homeowner should be present when the container is delivered to make sure it’s positioned where they want it. It also helps to check the container’s condition.

If they choose a metal container, customers should check for rust. If there’s rust in the container, it can cause damage to the items stored inside. If it’s made of another material, like wood or canvas, clients look for any holes or gaps that could expose their possessions to damage.

The doors on the unit are another possible problem. If they don’t close properly — or if the hinges or lock don’t work well — it could make items stored in the unit a lot easier to steal. It could also cause damage to the items whenever the container is moved.

7. Choosing the right sized container

Depending on the company, portable storage units are usually offered in a few sizes. Typically, sizes range from 8 to 16 feet long, though the exact size will differ. Customers should check the dimensions before choosing a unit.

Sometimes, clients aren’t sure of the size they need. It’s all too easy to assume that you’ll need less space than you actually do or just go by cost. This could leave them without enough room for everything they need to fit in the unit. A customer service representative should be able to advise the homeowner of the right size for their needs.

8. Make sure to check community rules

Not everyone who is selling their home will be able to use portable storage. Homeowners associations can have rules which prevent residents from having a container on their property.

Even if they are allowed, there could be a permit required or a restriction on the amount of time the container can sit on the property. Sellers need to understand what their situation is before they schedule a delivery.

9. Watch for property damage

You should advise your clients that portable storage units are relatively large and challenging to place on some lots. They often need more space than you might expect. Not to mention, there might be a height restriction, too. In that case, they might be placed on a grassy area, if there isn’t anywhere else that’s suitable (like a driveway).

If the units remain on the grass for more than a few days, they might block the light and cause damage to the grass. The longer the unit is left there, the more likely the grass will die and need to be replaced.

There is also the risk of pests finding their way into the container. The longer the unit remains outside a seller’s home, the greater the chance of problems. Make sure you mention these details to your clients so they can plan accordingly. You don’t want the closing held up when the buyers do their final walkthrough and discover a damaged lawn.

10. Knowing the full costs

When you advise a seller on portable storage, they should be aware of higher costs than the headline prices advertised. The container business will charge for delivery, collection and storage of the unit separately. They could have other fees on top of this as well, like the cost of a padlock. Make sure your clients request a full breakdown of costs before ordering any units.

Homeowners can also be responsible for any damages to the container while it sits on their property — even if it wasn’t their fault. However, moving container companies usually offer additional insurance to cover such liabilities.

The pricing of moving container units can vary quite a bit and depends on many factors. Two important factors are the time of year and the location. Naturally, the cost of renting containers will be lower outside of the peak moving season.

11. Making payments

Like traditional storage units, your clients should be reminded that their possessions can be sold off if they fail to pay. If the unit is stored at the company’s facilities, forgetting to pay the bill could lead to their items being sold.

Final thoughts? Just like knowing how much to tip a mover, a real estate agent should have at least a general understanding of how moving containers work. Whenever renting a moving container, it is wise to advise your clients to plan ahead.

By mapping out a moving strategy, they will be more apt to avoid problems. The less stress your clients will have, the better. Hopefully, you have found this moving container guide to be useful.

Bill Gassett is a nationally recognized real estate leader who has been helping people buy and sell homes for the past 33-plus years. He has been a top agent with RE/MAX Executive Realty, which serves many towns across the state of Massachusetts. Check out his blog.

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11 ways to prepare your listing for its red-carpet moment https://home-inspection-news.spsinspections.com/11-ways-to-prepare-your-listing-for-its-red-carpetmoment/ Tue, 23 Feb 2021 18:43:20 +0000 https://home-inspection-news.spsinspections.com/?p=30671

Google pictures of any celebrity these days, and you will see tons of red carpet photos with them standing there in their finest. Google any address of a home currently for sale, and you might hope for similar results. In many cases, however, you will be disappointed.

There are certain immutable characteristics for every red-carpet shot: Celebrities are well-dressed, standing in a pose designed to show off their outfit or some physical attribute and, if applicable, holding an award. Most importantly, these pictures are crystal-clear, shot on professional equipment by experienced photographers.

Why not have the same standards for homes for sale? While I understand practices differ from state to state, there should be some irreducible minimums for homes on the market. After all, you would hope that listing agents — who understand their fiduciary responsibilities to the seller and realize they will only have one chance to maximize the price and terms for their clients  — would work hard to showcase the home in the best possible light. 

The following is a list of what you would expect to see for any home in our market. Again, let me stress that I’m aware practices differ from region to region, and some of what is normal in our market is not practical elsewhere — especially in markets were the average home price is on the lower end of the scale.

Nevertheless, even in an overheated market, the more you can do to maximize a home’s profile online, the higher the chance you will get top dollar and the best terms.

Remember a simple fact: the average buyer is going to give any listing 7 to 10 seconds before deciding to stay and look in more detail or swipe left and move on. It’s critical that those brief moments captivate potential buyers and keep them engaged.

We have learned that the more we can do to effectively prepare our listings for the “red carpet” of the market, the better we set the stage for fully engaged buyers. With this in mind, here are the top 11 things well-dressed homes in our market are wearing.

1. Inspection reports

As little as five years ago, buyers were expected to order inspections once they had a home in contract. In today’s super-hot market with extreme inventory shortages, many markets have seen a shift to sellers providing the reports upfront.

This accomplishes two things: It helps a seller effectively prepare a home and increases the likelihood of “as is” offers. In our case, once the sellers have completed any repairs or fixes called out in the reports, an additional document is provided detailing any corrections made.

2. Property prep

Given that today’s buyers, for the most part, are looking for turnkey homes, certain aspects like kitchens, bathrooms, flooring and paint should get more attention. Buyers are usually willing to pay more for homes that are updated with current touches such as solid surface counters, beautiful bathrooms, modern flooring and so on.

3. Disclosure package

The general rule of thumb is this: The more information you can provide upfront, the better the chances of getting great offers. We make sure we have all the required disclosures completed upfront and readily available to buyers who want to see the home.

Again, I understand that disclosure laws differ from state to state — to the degree your location requires disclosures (approximately 70 pages in California), have them all completed up front. Our disclosure packages normally include the following:

  • Completely filled-out mandatory state-required disclosures (varies from state to state).
  • Floor plans (produced by Matterport).
  • Inspection reports.
  • List of upgrades and completed repairs.
  • Frequently asked questions (FAQ). 
  • Natural hazard disclosure (Required in California).
  • Preliminary title report.
  • Instructions for writing offers.
  • HOA packages, if applicable.
  • Declaration of Covenants, Conditions and Restrictions (CC&Rs), if applicable. 
  • Home warranty.

4. Supplemental documents

To ensure we do not have any title issues, we order a preliminary title report upfront to be able to effectively head off any potential issues in a timely manner. If the property is in a trust or the sellers are deceased, we want to see copies of trusts, wills and other documents critical to the sale.

We recently represented buyers who got their offer accepted only to discover that the deceased owner’s supposed will could not be located — meaning the home had to go to probate. Diligent agents work hard to make sure potential issues like this get handled long before the property goes live.

5. Home warranty

In our area, the seller customarily provides a home warranty for the buyer. With this in mind, we put a seller’s home warranty in place as soon as a listing is signed to protect the home during the listing period.

I have lost count of the number of times we have replaced hot water heaters, fixed garbage disposals and other items during the listing period for pennies on the dollar. In our case, once the home is sold, the warranty transfers to the buyer automatically.

6. Staging

It has been proven that staging works, and full professional staging is the norm for virtually every home in our market. Unfortunately, hiring a professional stager is not always in the budget. With six levels of staging, well-dressed homes should have some staging, even if it’s the most minimal amount.

7. Professional pictures

While newer phones all claim to take wonderful pictures, of the thousands of Realtors in our area, I know of only a limited few who know how to effectively frame and take pictures on their own.

Hire a professional who understands how to frame a shot — someone who has the correct equipment to backfill lighting and who knows how to color-correct as necessary.

8. 3D tours

Whether it’s through Matterport or one of the newer platforms, 3D tours make it possible for a buyer to preselect listings before visiting them. They can also help cement buyer decisions by providing the ability to virtually walk from room to room.

As a bonus, if it’s set up properly, you can use the measuring feature on Matterport to take actual measurements of rooms, windows, doorways, etc. They also provide laser-measured floor plans which can be invaluable to potential buyers who wonder if their existing furniture will fit in any given room.

9. Drone shots

Drones have opened up the ability for homes to be viewed in context. They also help potential buyers gauge proximity to streets, parks and the like. Because they look so cool and have so many benefits, we now include drone footage for all of our listings no matter the price point.

We have found a few professional photographers who offer a full suite of services that include magazine-quality stills, 3D, drone and video.

10. Video

For lower-priced listings, the video can simply be a recap of the listing stills arranged in a pleasing moving format that can be posted to YouTube and other video sites. For more expensive listings or luxury properties — there’s no end to the possibilities.

11. Online access

For years now, we have provided beautiful custom websites generated by our photographers that provide access to the entire photography suite. They also include links to walk scores and other community related information.

With the goal of making the comprehensive disclosure packages as accessible as possible, we use disclosures.io to provide an easy-to-access online portal for agents and their clients to download the entire disclosure package.

While many agents in our region have been phasing out printed brochures for a while, COVID-19 seems to have put a nail in the figurative coffin for handouts at local listings. In their place, our team has begun using virtual brochures that we can dispense in a number of ways.

These virtual brochures can house links to our pictures, 3D tours, drone footage, video, floor plans, neighborhood highlights and so much more. Pages can be added as necessary to produce an online visage that is second to none. They can even include links to the disclosure package, mortgage applications and more.

Getting a home ready to hit the red carpet? Make sure it is dressed to the nines and has its best face forward — it is the best way I know to convert a homeselling client into a raving fan.

Carl Medford is the CEO of The Medford Team.

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How to help homebuyers compete in 2021  https://home-inspection-news.spsinspections.com/how-to-help-homebuyers-compete-in-2021/ Tue, 23 Feb 2021 18:43:19 +0000 https://home-inspection-news.spsinspections.com/?p=30667

As economists predict another record-breaking year, brush up on these five tips for agents helping and guiding buyers through this competitive market.

After experiencing a record-breaking 2020, there seems to be no slowing down for residential real estate this year. This frenzy of activity has led to low inventory, bidding wars and fierce competition in markets across the country.

As economists predict another record-breaking year, here are five tips for agents to help buyers compete and guide them through this competitive market.

Go beyond a pre-approval letter

In this highly landscape, one of my first steps while working with clients is to ensure their financials are secure from the very beginning. As many know, a pre-approval from a financial institution is just a preliminary step in the homebuying process. 

I recommend having your clients go that extra length to showcase the strength of financials and that they are serious buyers. Walk your clients as far as they can go in the underwriting process with their lender so that they have the best possible chance of standing out against the competition. It will also help ensure your clients will be closing on their investment on time.

Stay focused

Another step I highly recommend to go over with clients early on is listing out their top priorities and must-haves. As their real estate agent, it’s your responsibility to narrow down this list to aid in a strategic and realistic home search based on budget and priorities. 

Remind your clients that the dated floors or wallpaper can all be updated. Stay focused on the items that matter and are on their initial list. 

As you tour through potential properties, whether in person or virtually, point out the floor plan, location, noise from the street, the neighborhood — all things that are permanent and crucial to consider. 

With these priorities in mind, you can better guide your client to make compromises when they have to and find the right property for their family.

Pay attention

In many markets across the country, inventory is extremely slim. Homes in desirable neighborhoods or near a top school district don’t typically stay on the market very long. With this in mind, it’s essential to get your clients ready to act quickly when a home in their desired area comes on the market. 

One way to do this is to gather as much information as possible on the property in advance and get in touch with the agent representing the sellers to set up a tour right away. 

Inform your clients of any upcoming open houses (if allowed in your area right now due to COVID) and upcoming availability for private tours, or call to go over all their questions and quickly assess if this is a potential home for them.

Write a strong offer

Once your clients have identified the right property, they should be prepared to make a solid offer. Depending on the market and price point, they should act quickly. Real estate professionals should help map out a strategy for their clients based on the local market conditions, the likely competition and other factors that might impact their offer. 

In a multiple-offer situation, have your clients plan on making their best offer from the very start. In today’s competitive market, don’t count on getting a counteroffer.

Consider the terms within the offer

Although sales price is, of course, critical, inform your clients of other terms and conditions that could be a deal-breaker. Assess items, such as the scheduled closing date or due diligence timing, that can make offers more appealing than others.

You must write a firm offer to compete in today’s housing market. Keep in mind that it’s not just about price. Other terms and conditions that sellers might deem more important to them might give you the edge (closing date, earnest money deposit, appliances, due diligence timing). Don’t count on getting a counteroffer in a multiple-offer situation, so plan on making your best offer from the start.

It can feel overwhelming for those searching for their dream property in a tight market with high demand and low inventory. Now is the time for real estate professionals to guide clients through any feelings of discouragement and navigate their search in an informed and prepared manner. By preparing in advance, your clients will be ready to make the moves necessary to secure their desired property.

Santiago Arana is a managing partner at The Agency, in Los Angeles. Connect with him on Instagram.

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Home builder self-confidence reaches 35-year high in Septemb… https://home-inspection-news.spsinspections.com/home-builder-self-confidence-reaches-35-year-high-in-septemb/ Wed, 10 Feb 2021 01:06:17 +0000 https://home-inspection-news.spsinspections.com/home-builder-self-confidence-reaches-35-year-high-in-septemb/ Home builder self-confidence reaches 35-year high in September
Real estate Market Index increased 5 points to 83 in September– the greatest rating the series has actually seen considering that its creation 35 years back, according to a release from NAHB on Wednesday. Regionally, the West continued to see the biggest self-confidence in the three-month moving averages– leaping 7 points to 85.”Historic traffic numbers have home builders seeing favorable market conditions, however numerous in the market are stressed about increasing expenses and hold-ups for structure products, specifically lumber,” stated NAHB chairman Chuck Fowke.

Real estate Market Index increased 5 points to 83 in September– the greatest rating the series has actually seen because its creation 35 years earlier, according to a release from NAHB on Wednesday. Regionally, the West continued to see the biggest self-confidence in the three-month moving averages– leaping 7 points to 85.”Historic traffic numbers have contractors seeing favorable market conditions, however numerous in the market are fretted about increasing expenses and hold-ups for structure products, specifically lumber,” stated NAHB chairman Chuck Fowke. With growing need for lumber, inadequate supply and 20% tariffs put in location on Canadian supply, intensifying costs are putting pressure on a currently unstable circumstance.

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Newbie property buyer activity reduced in Q2, however there’… https://home-inspection-news.spsinspections.com/newbie-property-buyer-activity-reduced-in-q2-however-there/ Wed, 10 Feb 2021 00:02:08 +0000 https://home-inspection-news.spsinspections.com/newbie-property-buyer-activity-reduced-in-q2-however-there/ Newbie property buyer activity reduced in Q2, however there's still lots of purchasers out there
“The COVID-19 pandemic pressed the U.S. economy into the sharpest economic downturn on record in March,” Tian Liu, Genworth's primary financial expert stated. “The real estate market likewise started remedying in April, resulting in an 18% reduction in the number of novice property buyers in the 2nd quarter compared to the very first quarter. In 35 states and Puerto Rico, there were less novice property buyers in the 2nd quarter of 2020 than the 2nd quarter of the previous year.

“The COVID-19 pandemic pressed the U.S. economy into the sharpest economic downturn on record in March,” Tian Liu, Genworth's primary financial expert stated. “The real estate market likewise started remedying in April, resulting in an 18% reduction in the number of novice property buyers in the 2nd quarter compared to the very first quarter. In 35 states and Puerto Rico, there were less newbie property buyers in the 2nd quarter of 2020 than the 2nd quarter of the previous year.

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College-Area Rents Are Falling Behind as Schools Move Online… https://home-inspection-news.spsinspections.com/college-area-rents-are-falling-behind-as-schools-move-online-2/ Tue, 09 Feb 2021 22:50:42 +0000 https://home-inspection-news.spsinspections.com/college-area-rents-are-falling-behind-as-schools-move-online-2/ College-Area Rents Are Falling Behind as Schools Move Online
In these areas with a high share of college trainees, typical lease rates were growing 4.7% year over year in February. By August, when lots of trainees would usually move back near school, leas were down 0.5% from the year prior to, marking the very first time because at least 2017– the earliest Zillow information is readily available– in which college-area leas were lower than the previous year. By August, that space had actually broadened to 3.4% as leas continued to fall in college locations however increased somewhere else.

In these communities with a high share of college trainees, typical lease rates were growing 4.7% year over year in February. By August, when numerous trainees would normally move back near school, leas were down 0.5% from the year prior to, marking the very first time because at least 2017– the earliest Zillow information is offered– in which college-area leas were lower than the previous year. In May, the typical lease was just 1% lower in college locations than non-college locations. By August, that space had actually expanded to 3.4% as leas continued to fall in college locations however increased in other places. Costlier locations with a high share of college trainees are typically seeing steeper lease decreases.

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EasyKnock launches service that lets property owners rent ba… https://home-inspection-news.spsinspections.com/easyknock-launches-service-that-lets-property-owners-rent-ba/ Tue, 09 Feb 2021 22:10:12 +0000 https://home-inspection-news.spsinspections.com/easyknock-launches-service-that-lets-property-owners-rent-ba/ EasyKnock launches service that lets property owners rent back their house after offering
EasyKnock is here to alter this with options that assist a broader variety of house owners attain their objectives. The item is now readily available for certified property owners in Florida, Michigan, Arizona, Colorado, North Carolina, Tennessee, Utah, Texas, and Georgia.”As the country deals with an increase in forbearance and as credit undoubtedly tightens up, U.S. property owners are in higher requirement of versatile monetary services,” the business stated in a release.

“Historically, funding alternatives have actually been restricted and financing requirements have actually not worked in favor of the customer. EasyKnock is here to alter this with services that assist a larger variety of property owners attain their objectives. The item is now offered for certified property owners in Florida, Michigan, Arizona, Colorado, North Carolina, Tennessee, Utah, Texas, and Georgia.”As the country deals with an increase in forbearance and as credit undoubtedly tightens up, U.S. property owners are in higher requirement of versatile monetary options,” the business stated in a release.

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