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Inventory Drop Fuel Sales Slowdown [INFOGRAPHIC]

Drop in Inventory Fuels Sales Slowdown [INFOGRAPHIC] | Simplifying The Market

Drop in Inventory Fuels Sales Slowdown [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Existing Home Sales are now at an annual pace of 5.46 million.
  • Inventory of existing homes for sale dropped to a 4-month supply marking the 35th month of declines.
  • The median price of homes sold in April was $257,900. This is the 74th consecutive month of year-over-year price gains.

If you are in the real estate market to buy real estate or sell real estate,  contact Steven Batista, today!

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Selling Your Home On Your Own Could Cost You

Selling Your Home On Your Own Could Cost You!

Selling Your Home On Your Own Could Cost You.  In this extremely hot real estate market, some homeowners might consider selling house by owner. This is known as a For Sale by Owner (FSBO). 

FSBO's rationalize that they don’t need a real estate agent and believe that they can save the commission for the services a real estate agent offers

Selling a house in Bergen County NJ is a full time job which requires a full time Realtor.  When a home owner assumes the position of a Realtor when selling home by owner is asking for trouble. 

As your Bergen County Real Estate Expert, I offer free comparative market analysis.  Home owners don't have access to this critical information when selling home by owner.  The goal is to protect your equity. 

There are several tasks a home owner has to undertake when selling home by owner. Having a real estate education, finding a homebuyer who's pre approved for mortgage is a small part of the process.  Scheduling showings when you sell your own home and opening your doors to homebuyers can potentially lead to theft. 

Please review the article entitled, "How To Protect Your Home When Showing It To Potential Buyers," by Lee Nelson.  

Once a buyer is willing, ready and able to purchase a home from a FSBO, a contract must be executed.  The contract Realtors use is The Statewide New Jersey Realtors Standard Form Of Real Estate Sales Contract. 

Collecting the earnest money deposit and placing it in the sellers attorney's escrow account is next. 

We move on to attorney review which can extend itself well beyond the three day attorney review period.  A buyer can back out at anytime during the attorney review period and the home inspection clause. 

If the home buyer can't secure a mortgage loan the deal will fall apart.  Let's say the home buyer obtains a mortgage commitment the next process is to confirm they secured home insurance. 

Hiring a title insurance company to clear title, getting the Certificate of Occupancy and collecting deposits will lead to closing.

A for sale by owner will go through great lengths to save on the real estate commission.  Some home sellers wonder how they can list house on MLS (Multiple Listing Service).  Listing with MLS has to be done with a licensed Realtor. 

After some research online they encounter Realtors who offer a MLS flat fee listing  to advertise their home.  Some Realtors will charge a for sale by owner as little as $99.00.  Imagine the diluted service a for sale by owner will receive when they subscribe to that.  I recall the old adage, "you get what you pay for."  A flat fee MLS listing may cost the for sale by owner thousands of dollars. 

Contracting a Bergen County Real Estate Expert like myself, gives a FSBO a chance to actually sell their home.

A study by Collateral Analytics reveals that FSBOs don’t actually save anything. In some cases they may be costing themselves more by not listing with an agent.

In the study, they analyzed home sales in a variety of markets. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)

Selling Your Home On Your Own Could Cost You

Why would FSBOs net less money than if they had used an agent?

The study makes several suggestions:

  • “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
  • “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
  • “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.

Conclusions from the study:

  1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
  2. The data suggests the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

As Dave Ramsey, America’s trusted voice on money, explains:

“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”

Looking for a Teaneck real estate agent, contact Steven Batista at 201-207-5217.  Start the home selling process Today.

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Don’t Wait to Sell Your House! Buyers Are Out Now

.Don’t Wait to Sell Your House! Buyers Are Out Now | Simplifying The Market

Sell your house.  Don’t wait!  Recently released data from the National Association of Realtors (NAR) suggests that a now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.

Let’s see how this applies to the current residential real estate market.

SUPPLY

Supply of homes for sale has been far below the number needed to sustain a normal market for over a year. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.

Supply is currently very low!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”

Demand is currently very high!

Bottom Line

Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, are a distressed home owner looking options, want to know what your home is worth or want to contact Steven Batista, with Century 21 Allstars 100 Real Estate, today! I can offer selling tips, provide you with a Comparative Market Analysis (CMA) and more!

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Is Your First Home Within Your Grasp Now? [INFOGRAPHIC]

For the longest time, many experts doubted whether Millenials (age 18-36) valued homeownership as part of the American Dream. Looking at the latest statistics from the National Association of Realtors we can see that 'Old Millenials' (ages 25-36) are dominating the first-time homebuyer category.
Is Your First Home Within Your Grasp Now? For the longest time, many experts doubted whether Millenials (age 18-36) valued homeownership as part of the American Dream. Looking at the latest statistics from the National Association of Realtors we can see that ‘Old Millenials’ (ages 25-36) are dominating the first-time homebuyer category.

Is Your First Home Within Your Grasp Now? [INFOGRAPHIC] | Simplifying the Market

Some Highlights:

If you are in the real estate market to buy a home, are a distressed home owner looking options, want to know what your home is worth or want to sell real estate,  contact your Century 21 Allstars 100 Real Estate Agent, Steven Batista, in Teaneck NJ today! I can offer selling tips, provide you with a Comparative Market Analysis (CMA) and more!

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New Study Shows ‘Best States for Millennials’

New Study Shows ‘Best States for Millennials’ | Simplifying The Market

A new study by WalletHub used “30 key metrics, ranging from share of millennials to millennial unemployment rate to millennial voter-turnout rate” to find out which states are the ‘Best States for Millennials.’

The Top 5 Best States for Millennials are:

  1. Washington, D.C. (also ranks highest in percentage of millennials already living there!)
  2. North Dakota (lowest unemployment rate)
  3. Minnesota (highest millennial homeownership rate)
  4. Massachusetts (highest percentage of millennials with health insurance coverage)
  5. Iowa (ranked #1 in lowest housing cost for millennials)

Below is a map with the rankings for each of the 50 states:

New Study Shows ‘Best States for Millennials’ | Simplifying The Market

We recently reported on a study that set out to find out How Much You Need to Make to Buy a Home in Your State,” which may have left you wondering what the average salaries are in each of the five states listed above.

According to WalletHub’s research, the top 5 states with the Highest Average Millennial Salaries are:

  1. Washington, D.C.
  2. New York
  3. Massachusetts
  4. Washington
  5. California

Every day, more and more millennials are aging into the ‘Responsibility Zone,’ the time in their lives when their responsibilities start to dictate their behaviors. For many, this includes buying a home. The top 5 states with the Highest Millennial Homeownership Rate are:

  1. Minnesota
  2. West Virginia
  3. Indiana
  4. Utah
  5. Delaware

Bottom Line

If you are in the real estate market to buy a home, know someone who may be a distressed home owner looking options, know someone who may want to know what their home is worth or want to sell real estate,  contact your Century 21 Allstars 100 Real Estate Agent, Steven Batista, today! I can offer selling tips, provide you with a Comparative Market Analysis (CMA) and more!

Source: Keeping Matters Current

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If You’re Considering Selling, ACT NOW!!

If You’re Considering Selling, ACT NOW!! | Simplifying The Market

Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!

How did we finish 2017?

  1. New-home sales were at their highest level in a decade.
  2. Sales of previously owned homes were at their highest level in more than a decade.
  3. Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007.

And Bloomberg Business just reported:

“America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.”

And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year.

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 9.7% from the same time last year.

Bottom Line

Demand is increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together to see whether that is the case in your neighborhood.

Looking for a Teaneck real estate agent, contact Steven Batista at 201-207-5217 and start the home buying process.

Source: Keeping Matters Current