How Remote Work Can Power Your Vacation Home Sale
This year, the opportunity to work remotely has increased the demand for vacation homes. Gay Cororaton, Senior Economist and Director of Housing and Commercial Research at the National Association of Realtors (NAR), notes:
“Working from home is a positive factor in demand for vacation homes.”
Buyers are taking advantage of the fact that working from home might be someplace other than their primary residence – at the beach, in the mountains, or somewhere in between. NAR explains:
“Sales in vacation-home counties increased 48% on average year over year in the third quarter; overall, 81% of vacation-home counties saw a year-over-year sales increase.”
Is it Time to Sell Your Vacation Home?
If you’ve been thinking about selling your vacation home, putting it on the market now while demand is high might be your best move. Here are two reasons why.
1. Vacation Homes Are Selling Quickly
These homes are not staying in the market for very long. NAR also notes:
“In September, 68% of vacation homes sold in less than a month. Historically, about 30% sell that quickly…It’s a pretty amazing uptick compared to past years.”
2. Home Prices Are Rising
With an increase in demand, prices go up. NAR continues:
“In the third quarter, prices in vacation-home counties rose by about 32% year over year. Seventy-nine percent of these counties experienced year-over-year price gains. NAR defines a vacation-home county as one in which seasonal housing accounts for at least 20% of stock.”
If your vacation home is sitting idle, maybe not attracting as many renters as you usually see, or if you simply want to sell it so you can trade up or take it off your worry list, now may be the time. Demand is high, so you’re in the ideal spot to get a stronger return on your investment today.
Bottom Line
Demand is on the rise, so let’s discuss your next steps when it comes to selling your vacation home.
The Path to Homeownership
Some Highlights
- If you’re thinking of buying a home and not sure where to start, you’re not alone.
- Here’s a map with 10 simple steps to follow in the homebuying process.
- Let’s connect today to discuss the specific steps along the way in our local area.
A New Way to Shop for Homes in a Virtual World
In a year when we’re learning to do so much remotely, homebuying is no exception. From going to work to attending school, grocery shopping, and even seeing our doctors online, digital practices have changed the way we live.
This year, rather than delaying their home purchases, buyers – alongside their trusted real estate professionals – turned to the Internet to do more than just a typical home search. In some cases, they bought homes without even stepping foot inside. Jessica Lautz, Vice President of Demographics and Behavioral Insights at the National Association of Realtors (NAR), says:
“People really didn’t buy houses sight-unseen, traditionally. It’s still not a huge number, but it has gone up, and we have definitely seen that trend accelerate.”
According to NAR, throughout the coronavirus pandemic, one in every 20 homebuyers purchased a house sight-unseen.
How Your Real Estate Agent Will Pave the Way
Today, real estate professionals are using digital practices to help homebuyers and sellers walk through many steps in the process virtually. While following the regulations set forth by the CDC and all local guidelines, this year, agents quickly empowered buyers and sellers with virtual tours, 3D floor plans, high-quality photos, videos, online open houses, and more. For those who had homebuying and selling needs in 2020, trusted advisors made it possible in many markets.
Here’s a graph showing some of the digital options buyers found most helpful in their searches this year, as noted by NAR in the 2020 Profile of Home Buyers and Sellers:The report also mentions that buyers this year generally searched for eight weeks. Throughout that search, they viewed a median of 9 homes, but not all of them were seen in-person. Yahoo Finance notes:
“Buyers viewed five homes online and four homes in-person during the pandemic, compared to nine homes in-person in 2019, according to NAR. This was the first year NAR asked buyers to specify the number of homes toured virtually.”
In true 2020 fashion, virtual practices helped buyers safely narrow down their top choices, so they didn’t have to unnecessarily walk into more homes than they needed to see throughout the process. Here’s the breakdown by region:At a time when health and safety are top priorities, current technology is making it possible for buyers and sellers to move their real estate plans forward at their own comfort levels, even through a worldwide pandemic. For many, this means buyers no longer have to physically tour every home they want to see, and sellers don’t need to open their doors over and over again throughout the process. Safety can come first, and trusted real estate professionals are here to help.
Bottom Line
If you’re ready to make a move, you may not have to press pause on your plans this season. Let’s connect to determine the safe and effective options to buy or sell a home in our area or wherever you’re looking to move.
Knowledge Is Power on the Path to Homeownership
Homeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying process to pre-approval and down payment assistance options, uncertainty along the way can ultimately hold some buyers back.
Today, there are over 75 million Millennials and 67 million Gen Z’ers in the U.S., making up a significant number of both current and soon-to-be homebuyers. According to a recent Fannie Mae survey of more than 2,000 of these individuals:
“88% said they are confident they will achieve homeownership someday.”
In addition, the survey also reveals that for younger generations, the motivation to own a home may be more emotional than financial compared to previous generations:
- <50% say they want to use their home as an asset
- 78% believe it’s the best way to live the way they want, without restrictions
- 80% believe homeownership is the best way to make it on their own
Whether homeownership goals come from the heart or are driven by financial aspirations (or maybe both), the obstacles standing in the way don’t have to bring these dreams to a screeching halt. The same survey also reveals two key roadblocks for potential buyers. Thankfully, they’re both easily overcome with the power of knowledge and trusted advisors leading the way. Here’s a look at these two challenges potential homebuyers face today:
1. 73% of future homebuyers are unaware of low-down-payment mortgage options
For those who want to purchase a home, low-down-payment options are instrumental to affording one sooner rather than later, especially given the amount of debt many younger adults have accumulated. Fannie Mae also notes:
“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as a limited ability to save and the fear of taking on more debt.”
Today, there are more than 2,340 down payment assistance programs available nationwide to help relieve this pressure. Understanding what’s out there and the options available may help many buyers become homeowners faster than they thought possible. In a year like this, with record-low mortgage rates making their mark in the history books, being able to take advantage of the opportunity buyers have right now is essential to long-term affordability.
2. 64% of buyers expect lenders and other real estate professionals to educate them about the mortgage process
While many people love to do a quick search online to find instant answers to their questions, it isn’t the only way younger generations want to consume information or build their knowledge base. As the survey mentions, having trusted professionals help them learn what it takes to achieve their dreams is definitely on their wish list too.
Bottom Line
If you’re aiming for homeownership someday, it may be in closer reach than you think. Let’s connect so you can learn about the process and get the guidance you need to make it happen.
5 Tips for Homebuyers Who Want to Make a Competitive Offer
Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
1. Listen to Your Real Estate Agent
A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.
2. Understand Your Finances
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.
3. Be Ready to Move Quickly
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
4. Make a Fair Offer
It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:
“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”
5. Be a Flexible Negotiator
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Bottom Line
Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.
Is Buying a Home Today a Good Financial Move?
There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.
This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.
The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.
Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.
But isn’t the economy still in a recession?
Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:
“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”
That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:
“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”
Bottom Line
With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.
“Throughout the listing and sales process Tony displayed an impressive knowledge of the real estate market”
Our overall impression of Tony Meier is that he is a very competent, professional real estate agent. There are several things which lead us to that conclusion.
Promptness. Tony was extremely prompt. If he said he would be at your at home at “x” time you could almost set your watch to that time.
Helpful Advice. Tony’s advice about installing vinyl plank flooring, what items to leave and what items to store, etc. all contributed to the successful sale of our home.
Knows Real Estate. Throughout the listing and sales process Tony displayed an impressive knowledge of the real estate market and what makes a home saleable. For example, I believe having the septic inspected and pumped as well as having the house pre-inspected were significant factors in having such a quick sale. Tony was the only agent we spoke with who recommended that this be done. In fact, within the last two weeks, a friend’s son had a sale fail because the septic needed repairs. Tony, knowing the inspection and repairs were necessary, would have had this done before the house went on the market.
Extremely good Follow-up and Availability. From day one, if there were any questions or “to dos” from the previous conversation, Tony was on top of them and provided an answer quickly. We also learned that we could call Tony at any time and he would either answer himself or call us back in a matter of minutes. I find this a rarity in today’s business world.
Friendly and Positive. During the entire time from our first meeting through the final sale of our home, Tony was always courteous, friendly and positive. A pleasure to do business with!
Without hesitation, Tony would be among the first agents we would consider using for future real estate transaction. Likewise we would unhesitatingly recommend Tony to others.
Roy and Linda McIntosh
Sold in Redmond – November 2020
2020 Recap… Wow! What a roller coaster year!
2020 Recap… Wow! What a roller coaster year!
With low interest rates, we ended 2019 in a very strong position. The 4th quarter is statically one of the slower times in the year, but in 2019, the market pace matched its best selling season of Spring, which is highly unusual! Inventory remained low and attractive rates made sales very strong.
As a result, 2020 started off like gangbusters. Abundant Buyers were fighting over too few homes and prices were rapidly increasing. Our Seller’s were accepting offers on their homes at numbers well beyond their wildest dreams! It was like the Gold Rush for Real Estate!
Then the crisis of Covid-19 struck in late March. The market slowed as we all shut in our homes. By Mid-April we reached a low point, only recording about 30% of the sales we had in the same week of 2019. With the huge federal infusion of money into the Bond Market, interests rate plummeted to record lows. In addition, due to moving work and school inside our homes, many of us found our living situations to be much too small.
The need for a change in housing to fit our “new” lifestyle and record low rates brought Buyers back in droves! However, inventory remained low. As result, prices continued their march upward.
The final numbers are still to be seen, but two things are certain. 1) The second half of 2020 has been the strongest Seller’s Market on Record. 2) In the end, 2020 will show significant price increases as compared to 2019.
Moving forward: 2021 is still looking to be a solid year for real estate. However, there are many factors (that we have come to understand this year) that cannot be fully predicted. As a result, if you are thinking about a move, reach out to us so we can help you understand
Keeping our clients safe
To keep our clients safe and offer them the best service during this time we have implemented even more digital services including virtual meetings and digital signings.
Our team is committed to keeping you safe, from listing your home, to helping you find a new one, we are here to protect you and your family.
In order to fully and effectively represent your home to the market, we offer HD video tours, dozens of high quality photographs including drone photography, 3D Matterport tours which allow a buyer to virtually walk through your home, accurate floorplans, detailed property brochures highlighting all the features of your home, custom property websites, postings on our business pages, providing sanitizer for your home and much more.
The same goes for our buyers; we come prepared with Covid-19 safety kits including gloves, mask, hand sanitizer and a wealth of knowledge to keep you safe when viewing homes.
Whether buying or selling, we are committed to keeping you and your family safe. If we can help you through this process, please feel free to contact us for a virtual meeting or in person meeting at 425-466-1000.
NWMLS Special News Release – Despite prohibition on open houses, brokers, buyers and sellers employ array of virtual tools to stay safe and fulfill housing needs
KIRKLAND, Washington (November 18, 2020) – Even though in-person open houses are not currently allowed under new and reinstated pandemic-related restrictions, broker-members of Northwest Multiple Listing Service (NWMLS) continue to provide services to home buyers and sellers using several contactless and virtual tools.
Feedback from NWMLS representatives include reports of sales by purchasers who made offers to buy based on virtual and live stream open houses without an in-person tour. One manager noted sellers appreciate being directly involved with their listing broker in establishing limits on the number of visits to their home and the strict use of CDC guidelines for post-showing cleaning/sanitizing.
On November 15, when Governor Jay Inslee announced a four-week statewide set of restrictions, Northwest MLS published updated protocols for all in-person activities, such as showings and inspections, along with other directives to support efforts to reverse an alarming rise in new COVID-19 cases. The MLS information for its members, produced in collaboration with Washington REALTORS® included an 8-page FAQ document with an accompanying chart summarizing requirements for the phased “Safe Start” reopening plan for each county. NWMLS currently serves 23 of the state’s 39 counties.
Using online tools, Northwest MLS members are able to schedule private showings, convene meetings, complete forms, interact with industry partners in real time, and obtain necessary signatures, all while adhering to protocols to slow the spread of COVID-19.
“Brokers and the industry have adjusted quickly to changing business practices necessitated by COVID-19,” stated John Deely, principal managing broker at Coldwell Banker Bain and a director with NWMLS. “Protecting the health of all persons involved while providing access to the basic necessity of housing has been paramount in our day-to-day activities,” he added.
“While COVID protocols have again adjusted which real estate activities are allowed, I continue to see examples of an industry that is evolving effectively and safely with the ongoing pandemic and fast-paced real estate market,” stated Northwest MLS Chairman Robb Wasser, branch manager at Windermere Real Estate/East in Bellevue. “Our member-brokers are being creative and resourceful in finding ways to help their clientele and maintain relationships, and the MLS has kept a focus on how to enhance the tools, programs, and systems that brokers rely upon.”
“Our real estate market remains active with virtual tours and scheduled property showings,” reported Dean Rebhuhn, broker-owner at Village Homes and Properties. He said buyers are viewing properties online, and then, after narrowing their choices, contacting their broker to schedule in-person showings. “We are experiencing contactless signings and closings,” he stated.
Commenting on the latest restrictions, broker Frank Wilson said, “In situations like this it is easy to get stuck on what we can’t do, instead of what we can do. We still have many tools to help consumers gain information they need to make good decisions and fulfill their dreams while staying safe and healthy,” added Wilson, the Kitsap regional manager and branch managing broker at John L. Scott Real Estate.
Wilson said brokers are making more and more use of video, not only to showcase new listings, but also to help walk buyers and sellers through the paperwork. “Behind the scenes, real estate brokers, escrow and title officers, and lenders use virtual workbenches to hammer out the details of each transaction and work together virtually so closings occur on time,” he explained.
Commenting on the resiliency and flexibility of the industry, J. Lennox Scott, chairman and CEO of John L. Scott, noted business practices were adjusted in March when COVID-19 restrictions were first enacted. While some of the mandates were disruptive when first implemented, Scott said the industry quickly adapted to meet strong demand.
“We just had four consecutive months of record-setting sales, and we could only do private showings during three of those months,” he commented. He credits a combination of factors for fueling demand, including historically low home interest rates, and work-from home residents and others reflecting on where they want to live in their next phase of life.
Deely, at Coldwell Banker Bain, credited Northwest MLS with moving quickly to restrict open houses to meet mandated guidelines, and to also provide leading software/apps to manage showings as restrictions changed. He also noted home shoppers’ virtual experiences are enhanced with an expanded number of online resources. Since May, NWMLS brokers can input up to three links on each listing, including options such as 3-D tours, recordings of video walk-through tours, or photo reels with up to 50 images.
“These enhancements, including live remote showings using streaming technology and real time interactions, help reduce traffic to the home and time spent at a listing,” added Deely.
Another director, Frank Leach, said Matterport (a 3D platform) and virtual tours are at their highest use yet. “Buyers’ agents are touring homes with cameras and using phones to do live tours with their clients. Zoom is also being used for two-way interactions. The agent serves as the eyes, nose and boots on the ground, saving time and keeping clients safe. We are seeing many buyers make decisions based on virtual tours and counseling from their broker,” reported Leach, broker/owner at RE/MAX Platinum Services.
Leach said he anticipates virtual tours will be a growing trend that will likely be used more widely in the future (and post-pandemic). “While there is no substitute for walk-throughs, sometimes it just isn’t possible. Buyers, sellers and agents are being creative to avoid losing out on an opportunity.”
Meredith Hansen, owner/designated broker at Keller Williams Greater Seattle and a Northwest MLS director, said brokers at her office are very pleased with the success of virtual tours. “Sellers really like the convenience of not having to be out of their homes for any length of time and not have strangers walking through their homes.” Buyers appreciate the opportunity to view a home and ask questions before deciding whether to schedule an in-person showing, Hansen added.
“One of our brokers recently held a virtual open house for a listing on a downtown condo and received an offer a few days later,” reported Hansen. The buyer decided to purchase based on the virtual experience without an in-person showing.
Hansen said veteran broker Matt Warmack, who runs The Warmack Group at Keller Williams has had lots of success holding virtual open houses. “After the open house, he goes live on Facebook to showcase the listing, then goes live on Instagram where several hundred followers, including other brokers and industry vendors, can preview it.”
“Whether it’s an open house or a private showing, our updated business practices support changing restrictions along with social distancing for buyers, sellers, and agents. The real estate market remains in full motion,” declared J. Lennox Scott.
Frank Leach agreed: “Despite the COVID-19 issues, the market is moving right along, and buyers and sellers are finding new ways to get what they want.”
Year-to-date figures from Northwest MLS through October show closed sales (77,877) are nearly equal to year-ago volumes (78,194), even though this year’s inventory each month is averaging about 30% less than the selection during the first ten months of 2019.