‘Tis The Season For Real Estate Market Predictions
As we begin 2020 we want to thank everyone for your business and your referrals in 2019. We hope 2019 was a great year for you and wish you a happy and prosperous 2020!
Be Careful Listening To Predictions And Interpreting Data
This is the time of the year when everyone wants to make predictions about the real estate market and the economy. Do you remember this time last year? Everyone was predicting the Federal Reserve would increase interest rates 3 times and a recession was almost guaranteed to happen. Both of those predictions couldn’t have been any more wrong!
We will also see more end of the year statistics and projections for next year. Inside this issue we talk about one particular company using statistics to influence your behavior. In addition when you look at the statistics that we publish they are largely for curiosity sake and not intended for you to use when making decisions about your home. In many areas new homes are being built with upgraded features causing them to sell at a higher price and much higher $/SF. That will skew the market statistics. Your home has likely increased in value, too, but the appreciation may be different than what is showing a general market statistic.
When you see or hear market statistics and predictions take them with a grain of salt. Real estate is local. The market value of your home will be determined by factors going on in your neighborhood today and not market statistics you see even in our newspaper.
Whenever you would like to talk about what is really happening in the neighborhood contact us anytime.
Wherever You Are From We Are Ready To Serve You
There was a recent story out of Long Island, NY where Realtors were discriminating against potential clients which is a violation of Fair Housing laws. As our area is becoming increasingly international this is a concern for those of us in the real estate business.
One of the things I am most proud of about our company is that we attract clients from all over the world. In 2019 we had clients who are from a combined 14 different countries. Wherever you are from we are ready to serve you, too.
New Home Builder Representation
If you are planning to buy a new home it is important for you to have representation. Most builders are trying to cut corners to keep their profits up. That doesn’t work to your advantage. We have experience working with builders to not only give you great advice about lot selection, floor plans and upgrades that will help your resale value but also in working with the builder to correct mistakes.
Often when we sell a home there is a defect that should have been corrected at the time of construction. What seems to happen is the buyer either doesn’t realize there is a defect, doesn’t know how to ask for it to be fixed or listens to the builder when the builder says if it becomes a problem it will be covered under the warranty.
Recently we helped a client build a new home. The buyer took our advice to have the home inspected prior to closing and the inspection turned up a defect in the roof. The builder kept saying there wasn’t a defect and they would not make the correction. In addition, they said if it became an issue in the future there was a warranty so the buyer had nothing to worry about.
Over the years of working with builders we have learned once you close you don’t have much leverage. The time to get something fixed is before closing when they want their money.
We also knew this defect was something a future buyer would see and it would have a negative effect on future resale value. A future buyer isn’t going to care that something is under warranty if they can see with their own eyes.
What we did is reach out to a couple roofing companies we know. Both companies were willing to inspect the roof for our client and both said there was a defect. Presented with that evidence the builder finally gave in and replaced the roof. In the end our client purchased a great home that will be attractive for future buyers.
Understanding the building process, what to say to the builder if things go sideways and having access to our contacts will help you if you are building a new home. If you are planning to build a home contact us today to see how our experience can help make it an easier process and get a better built home for you.
Beware Of The Realtor Afraid To Say “I don’t know.”
I was listening to a real estate radio show the other day when a woman called in with a question about her neighborhood. The woman asked why so many homes were selling in her neighborhood. The Realtor who was being interviewed on the radio show has never sold a home in her neighborhood. Rather than provide any real life market insight the Realtor pulled up some information about the neighborhood and guessed that it might be from the new homes being built nearby.
The truth is so many homes are selling because the school district has re-zoned the neighborhood and some homeowners think that will be worse for their kids and the value of their homes. I’m sure this would have been helpful information for the woman who was calling in.
We know this because we have sold many homes in this neighborhood and follow the real estate market carefully. It’s human nature not to admit you don’t know something. However, it can be dangerous for you if you are making decisions based on someone’s guess. We certainly don’t know everything. Whenever you call us with a real estate question if we don’t know the answer we promise to tell you that and try to point you in the direction of a more reliable source.