Sellers saying “Now is a good time to sell!”

shutterstock_1638721Many homeowners have been reluctant to list their homes for sale – some by choice, some for fear of being unable to afford a new home, or of coming out in the red.

71% of survey respondents believe now is a good time to sell
Recently released findings from a survey by the National Association of REALTORS® (NAR) show more homeowners are ready to move on and unload… or, at least, say they are. Seventy-one percent of survey respondents for the quarterly Housing Opportunities and Market Experience (HOME) report believe now is a good time to sell, an increase from 69 percent the previous quarter and 61 percent one year ago.

“There are just not enough homeowners deciding to sell because they’re either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable home to buy,” says Lawrence Yun, chief economist at NAR. “As a result, inventory conditions have worsened and are restricting sales from breaking out while contributing to price appreciation that remains far above income growth. Perhaps this notable uptick in seller confidence will translate to more added inventory later this year. Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets.”

Renters less sure about their home-buying prospects
Renters, however, are less sure about their home-buying prospects. Fifty-two percent of renters surveyed believe now is a good time to buy a home, a decrease from 56 percent the previous quarter and 62 percent one year ago. Eighty percent of homeowners surveyed, to compare, believe now is a good time to buy. Forty-two percent of respondents believe homes are affordable, with respondents living in the Midwest most likely to believe homes are affordable and respondents living in the West least likely to believe homes are affordable.

Business 01Survey respondents are reining in their optimism in the economy, as well, according to the report. Fifty-four percent of those surveyed believe the economy is improving, which is in contrast to a record 62 percent the previous quarter. (Homeowners, notably, tend to be more optimistic about the economy.) The survey’s Personal Financial Outlook Index, which gauges respondents’ sentiment on their financial situation over the next six months, dropped to 57.2 in June.

“It should come as little surprise that the confidence reading among renters has fallen every month since January (64.8) and currently sits at its lowest level (53.8) since tracking began in March 2015 (65.7),” Yun says. “Paying more in rent each year and seeing home prices outpace their incomes is discouraging, and it’s unfortunately pushing homeownership further away – especially for those living in expensive metro areas on the East and West Coast.”

New Home - family - 01Twenty percent of respondents, especially those with annual incomes less than $50,000 and/or under age 34, would consider moving to a more affordable area.

“Areas with strong job markets but high home prices risk a migration of middle-class households to other parts of the country if rising housing costs in those areas are not contained through a significant ramp-up in new home construction,” Yun says.

Information provided by Keller Williams Dallas metro North. Call us today – we have over 400 qualified agents ready to assist you with your real estate needs.

5 Tips to find the right Realtor

Realtor 02Once you’ve decided to sell your home, you need a trusted guide by your side: Realtor, of course! Your realtor will be a trusted partner in this most important of all transaction. Here are 5 ways to find a Realtor who’s right for you.

Gather referrals, but take them with a grain of salt

There are a lot of agents out there. So how do you choose? Go ahead and ask your pals for referrals, but don’t fall into the trap of picking an agent purely because of rave reviews. The old mantra of location, location, location applies to real estate agents as much as homes.

“You want a Realtor who is very familiar with your area—and not just what he can pull up online,” says Wendy Flynn, a Realtor in College Station, TX. The reason is simple: If they’ve spent time in the area, they’ll know how to market your house there.

So a better question to ask your friends than “Know any real estate agents?” is, “Know a real estate agent who’s sold any properties in my area in the past few years?”

Test their communication skills

Once you have your list of potential agents, email them or call their office, then sit back and wait. This is your first test of a key component: how responsive will your agent be? Ideally, she should get back to you that same day.

“If it takes longer than four business hours without a decent explanation, I would be cautious,” says Chandler Crouch, broker for Chandler Crouch Realtors in Fort Worth, TX. Imagine if you’ve got competing offers on the table, or if some problem comes up with the home inspection. You don’t want to wonder where your agent is and whether you’ll hear back from her!

Probe their experience

Your initial conversation with a prospective listing agent should be like any job interview: Don’t be afraid to ask the tough questions right off the bat. A good agent should know his stats, and any dancing around these numbers could mean he’s hiding something. According to Crouch, you should ask the following:

  • How long have you been in business? Aim for Realtors with at least two years of experience, enough time to learn the ropes and finesse their marketing and selling plans. Time (on the job) is money (in your pocket).
  • How many houses did you sell last year? Look for agents with double-digit sales. “I wouldn’t consider an agent unless they had 20 or more sells a year,” Crouch says.
  • What percentage of your listings do you sell? Ideally you want an agent who has sold an average of 60% to 80%.
  • What is the average list price to actual sell price ratio for your listings? This can fluctuate by market, but you should still look for high numbers. “I would set a low bar of 95% to be acceptable for even the worst market conditions,” Crouch says.

Assess their marketing skills

Everyone knows that to sell a house quickly (and get the big bucks) you need to reach as many eyeballs as you can. And the way to suss out an agent’s ability to do that is to ask these questions:

  • How will you market my home? A Realtor should use at least a good brokerage website to showcase your listing, national listing portals such as realtor.com®, and an email subscription list.
  • How will you use social media? They should use at least Facebook and Twitter to market listings; they get bonus points if they post photos on Instagram.
  • What offline materials do you use? While most marketing is done online now, your Realtor should still make use of tried-and-true methods such as fliers, yard signs, and brochures, especially at an open house.
  • How much do you spend on advertising? “Don’t stop asking until you get a solid dollar figure,” Crouch says. Advertising costs vary widely by area, but Realtors should consistently spend a portion of their business expenses on advertising. By asking for a set amount, you’ll know if they’re doing that or not.

Don’t shoot for cheap

Finally, don’t assume the most inexpensive agent is the one for you. While agents work at different price points and some may take a lower commission, they should be confident enough in their abilities to stand by their prices, according to Crouch. So when you’re talking terms, he recommends asking agents if they’ll work on a discount. If they jump at the chance early on in the conversation, that might be a red flag.

“Think about this: If the agent can’t even negotiate to protect their own money, how likely do you think it will be for them to go to bat to protect your money?” Crouch says. “It’ll be a test of confidence in their own services at least.”

by Angela Colley, real estate writer for Realtor.com 

 

Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified agents ready to assist you with your real estate needs!