Why is a Dip in Existing Home Sales Good News for Sellers?

A report published recently in The Washington Post noted that interest rates are rising and that pending home sales have dipped recently. Sounds like bad news, right?

If you're thinking about selling, this is actually really good news.

The reason home sales have been down recently is because there just isn't enough inventory to meet demand. In the areas where I work, if a home comes on the market and is priced competitively, it's under contract in a matter of days -- and often at a price higher than the listing price.

Think of it this way: there's a hot new toy, like the Fidget Spinner. Everyone wants it, but most stores sold out last week and don't expect more until next month. If you look at sales reports for Fidget Spinners for this month, you'll see a dip in the number of sales. If you happen to have a Fidget Spinner to sell, you'll probably be able to sell it for a price that's higher than the retail price.

With interest rates on the rise, buyers want to lock in NOW before they go any higher. And when inventories are low, it's not uncommon to receive multiple offers on a competitively-priced home and even see bidding wars.

According to the WaPo article, the National Association of Realtors (NAR) has increased its estimate for home sales growth in 2017 from 2.5% to 3.5%, and home prices are expected to rise 5% -- another increase from the 3.5% projected by NAR at the end of last year.

If you're thinking about selling, contact me today. I'll do a comparative market analysis to show you what comparable homes in your area have sold for over the past six months, prices for currently-listed homes, and what your home could sell for in the current market.  

Rob Traister
RE/MAX 100
Licensed in VA
(703) 935-6891
rob.traister@gmail.com

Don't Always Believe Prices You See Online

Last year I met with a potential client who was thinking about making a move from a home in a very desirable neighborhood in Alexandria. I showed him comps for his home -- nearby homes that are comparable in size, amenities, and style, and are active or have sold recently -- and told him the price he could expect in the current market.

He mentioned that a website (rhymes with "Pillow") showed the estimated price of his home as being higher than the one I recommended. I explained that the estimated prices shown on that site tend to be off by 5% or more in our market.

He said when he was ready to make a move he would let me know.

A few months later I saw that home was on the market for $30,0000 more than the market will support in that neighborhood. After two months on the market, the price has been reduced $80,000 -- $50,000 below the market value -- and still has no buyers.

Pricing your home correctly can be the difference between selling and not selling, or having to sell at a price that is below market value. It's that important.

If the home is priced too high, buyers who are looking at homes in that price range will dismiss it, and buyers looking below that price range won't even see it. And if you do manage get an contract at a price that is above market value, most contracts have a clause that allows the buyer to back out if the home doesn't appraise for the contract price.

The longer a home sits on the market, the harder it is to sell. In this market, many homes are under contract in a matter of days or weeks; if a home has been on the market for months it raises red flags and potential buyers pass it over in favor of newer listings.

By not pricing the home correctly from the outset, the seller I mentioned earlier will ultimately leave tens of thousands -- perhaps even $100,000 -- on the table that could have been in his pocket. Had he priced the home correctly, he would have had more showings and might have even seen multiple offers, resulting in a higher sales price.

When I price your home, I give you all the market data at my disposal to help you make the best decision so you can sell quickly, and at the best possible price.

If you have any questions about the real estate market in Northern Virginia, give me a call or send an email. I'd love to hear from you. 

Carbon Monoxide Dectors a MUST for Your Home

Recently a friend posted on social media that 2:00 a.m. is not a great time to figure out if the beeping from a carbon monoxide (CO) alarm means low battery or impending death.

It was a funny comment, but having a working CO alarm in your home can literally be the difference between life and death.

Carbon monoxide is a colorless, odorless, tasteless gas that can cause sudden illness and death. It is produced any time a fossil fuel is burned and is, according to the CDC, the leading cause of accidental poisoning deaths in the U.S. CO results in more than 430 deaths and 50,000 emergency room visits each year in the U.S. alone. See the CDC FAQs about CO.

Improper use or malfunction of a fuel-burning appliance such as a furnace, water heater, clothes dryer, stove, oven, or generator can produce dangerous levels of CO indoors. Other potential sources of CO in the home include poorly vented fireplaces or vehicles left running in an attached garage. When CO gas builds up inside a home, it can quickly lead to illness or even death. Because CO has no taste or smell to alert people to its presence, the only safe way to detect it is with a properly working, properly placed CO alarm.

According the National Fire Protection Association (NFPA), CO alarms should be installed according to the manufacturer's instructions, usually about 5 feet from the floor, in a central location outside each sleeping area on every level of the home. They should also be installed in other locations as required by applicable laws, codes, or standards. NFPA also recommends that homeowners interconnect all CO alarms throughout the home so when one sounds, they all sound.

It is recommended that you change the batteries in your CO alarms every six months, just as you do with your smoke alarms. Doing this when you change the clocks for daylight saving time is a great way to remember.

Carbon monoxide alarms also have a limited lifespan, typically 5-7 years. In the case of my friend who posted about his alarm chirping at 2:00 a.m., his CO alarm was letting him know that it was at the end of its useful life and needed to be replaced. Older models may not have this feature. If in doubt, replace your detectors and then follow the manufacturer's schedule for future replacement

For more information on CO in the home, click the image below to download the NFPA fact sheet on CO Safety.

Fall is a Great Time to Sell Your Home

Fall is a Great Time to Sell Your Home

I stepped out my front door one morning earlier this week to walk my dog, Sadie, and instead of a wall of hot, humid air I was greeted by a crisp, cool morning. The cicadas were louder than I'd heard them all summer, but everything else about that morning said "fall is coming."

Fall is a time I never hear anyone complain about the weather. The may complain about the leaves they have to rake, or the fact that winter is right around the corner, but they never complain about the weather.

"I'll be really glad to see fall end. I don't have to run the heat or AC for nearly two months, I keep my windows open every day, and the colors are amazing. I hate every second of it!"

- No One Ever

Fall is also a great time to put your home on the market. Inventories have been low for most of 2016 and this time of year they are traditionally even lower. This means you have a unique advantage because:

• You're on the market at a time when there are fewer homes to choose from,
• Your landscaping can look it's best because of lower temps and fall colors,
• People who are looking at this time of year tend to be serious buyers, and
• People actively looking now tend to want to be in their new homes -- your home -- before the holiday season.

Call me today to get a free market analysis for your home. There’s never any obligation following the call. Worst case, you get some excellent advice and information about selling your condo. Best case, we work together to get you top dollar for your condo.

Give me a call at (703) 935-6891 or send me an email at rob.traister@gmail.com and let's connect.  No hassle, no pressure, just honest straight-forward real estate advice.
 
Rob Traister
REALTOR®
RE/MAX 100
Licensed in Virginia
(703) 935-6891

You Haven't Really Started Looking For A Home Unless You've Talked To A Lender

You Haven't Really Started Looking For A Home Unless You've Talked To A Lender

You’ve decided to buy a home. Congratulations! This is one of the most important decisions you will ever make. You want to make sure you choose a home that’s right for your needs – now and in the
future.

So what’s your first step? You'll probably look at some homes online and go to a few open houses, but then what? Call me and start looking, right?

Choosing the right agent is an important step on this journey, and when you choose me I’ll work hard to find the right home for you. I’ll ask you questions about where you want to live, what kind of home you want, how many bedrooms and bathrooms you want, and whether you want a yard or something that requires less maintenance, like a townhouse or condo.

One of the first questions I'll ask is if you've spoken to a lender and gotten approved. This is an integral part of the process, and until you’ve spoken to a lender you haven’t really started a serious home search.

Talking to a lender lets you know how much home you can afford. Your time is valuable; knowing your budget helps me efficiently find homes that will fit your needs and your budget. Going through the approval process also gives you the opportunity to check your credit score and shop for the best interest rate for your loan.

In addition, the type of loan you get may exclude certain properties from your search. For example, homes purchased with FHA, VA, and USDA loans have to meet certain requirements that don’t apply to conventional loans.

Finally, when you make an offer you will need to include an approval letter from your lender showing that you qualify to purchase the property at the offer price. This shows the seller that you are serious about your offer. While it doesn’t happen every day, some people who are “just looking” find the home of their dreams on the first day of looking. If you've talked to your lender and gotten approved, you can make an offer quickly before someone else decides that your dream home is their dream home.

As always, if you have questions I'm here for you. Call or text me at (703) 935-6891.

What to do with pets when your house is on the market

I need to start this posting by disclosing that I am a dog owner. Sadie is a 9-year-old golden retriever mix I rescued when she was a year old. She’s laying at my feet as a write this. She’s a constant companion and always up for an adventure.

Some people are dog people, some are cat people, and some don’t like pets at all. One thing they all have in common is that they are potential buyers, and the presence of a pet in the home can turn off some buyers. I can’t count the number of times a cat has tried to run out the door when I’ve showed an occupied home, or that a crated dog has barked at me and my clients throughout a showing.

For pet owners, our pets are members of the family. For potential buyers, they’re a distraction and can make it difficult for them to envision themselves in your space. A dirty litter box or barking dog can mean the difference between a looker and a buyer.

A vacant, sparsely decorated home usually shows best, but that’s not always option. If sellers can’t move out of their home when it’s on the market, I encourage them to put most decorations and large pieces of furniture into storage. When pets are in the home, I recommend sellers send their pets to day care or make other arrangements during the day and set showing times accordingly.

Contact me today to find out what your home make be worth in today’s market. If you need a place for your pet while your home is listed, I’ll work to help you find an option that fits the needs of you and your pet.

Getting Your Home Ready to Show

Your home is unique. It’s your space. It’s where you spend more time than anywhere else except work. It’s your home, and the way you decorate it expresses your taste and style.

To potential buyers, your home is a space they’re considering using as their home. The more of your unique taste and style is evident in that space, the harder it is for potential buyers to see themselves there instead of you.

When preparing your house for showing, think of it as a model home. As much as possible, remove personal and decorative items and put all but the most necessary furniture in storage. Minimal decoration and furniture helps buyers envision how they’ll use the space instead of seeing how someone else uses it.

Call me today to find out what your home could be worth in the current market. If you need to store belongings while your home is on the market I can recommend nearby storage solutions for your needs.