2019 was another great year in real estate. We continue to see the market operating in a balanced mode. This is great news for both buyers and sellers.
What does the data mean for 2020?
We have studied the data and the number one thing we learned from 2019 is that current buyers are very picky. Therefore, our focus in 2020 will be to help you to improve your home's value. Whether you plan to sell your house this year, or stay in it for the long-haul, there are some smart improvements you can make.
Our last post gave you plenty of tips on how to make improvements to your bathroom. Kitchens and baths sell a home and in this market - you need to be ready to compete!
Latest Market Indicators
Let's not forget about our December numbers. Check out the guide below to see how Collin County performed in December 2019.
Are You Ready to Make a Move?
Are you thinking of selling your home soon? Want to know how to market your home so you can get it sold quickly? We've got tips and strategies to help you succeed. ⭐⭐⭐⭐⭐Check out how over 100 people agree! ⭐⭐⭐⭐⭐ Give us a call.
You have probably heard the old adage🏠 "kitchens & bathrooms sell a home!" 🏠This has never been truer than now. The real estate market has shifted, and the style and condition of a home are fundamental to buyers.
Let's chat about bathroom updates and upgrades and see how they can improve the resale value of your home. A universal mid-range bathroom remodel will give you about a 70% return on your investment, according to the Remodeling 2019 Cost vs. Value Report (www.costvsvalue.com). Now 70% is a reasonably decent return on your investment.
However, you may be thinking, if I plan on selling my home, wouldn't I actually be losing money? Wouldn't I be better off letting the buyer make those updates? Can't I simply discount my sales price to compensate for an outdated bathroom? We advise our clients on smart choices when it comes to updating a bathroom. If you are selling your home, you can make minimal changes that make impactful improvements!
💸💸Generally, the buyer's opinion of the cost of the updates is usually well above the actual price, so make small improvements where you can.💸💸
Why a homeowner must make smart decisions when it comes to bathroom remodels...
You must understand and react to your home's competition. You want to avoid leaving your house in a situation that will drive buyers to all the other homes on the market. You could face steep discounts for the lack of upgrades. Additionally, you could see your house stay on the market for a very long time. We have watched the days on the market creep up over the past few years. Inventories have risen, and the competition is fierce. Buyers are very picky, and the most common feedback we get from them is that they are not buying a property because it needs too many updates.🏚️
Making The Smart Choice 🤔
We've created a hierarchy of updates you should make to your bathroom. If you are planning to sell, you should consider the first two levels of upgrades. This would include a deep clean of grout and tile, caulking, removing wallpaper, painting walls, updating faucets, lighting, and fixtures. It could also include painting the cabinets and adding drawer/cabinet pulls. Bring us in early in your planning process to help you make the smartest choices to appeal to buyers.
Once You've Updated - Stage it!
Once you have made the best choices for updating your bathroom, stage it like a pro. We just love the ideas that are set forth in this article by Houzz. Get inspired: click here.
📞 Call us when you are ready to sell!
Are you thinking of selling your home soon? Want to know the most significant improvements you can make to get your home sold quickly? We've got tips and strategies to help you succeed. ⭐⭐⭐⭐⭐Check out how over 100 people agree! ⭐⭐⭐⭐⭐ Give us a call.
My last blog introduced the iBuyer concept. Check it out to see how these companies work and how they compare to traditional home sales.
These investment companies put a restriction on the types of houses they purchase. This is called a buy-box. In other words, it is a list of criteria that the property must meet to be eligible for purchase. The buy-box includes the location of the home - they are only in a few select markets. Most iBuyer companies have a ceiling on the maximum value of the house. (Offerpad has a maximum of $400,000 in DFW and OpenDoor has a maximum of $300,000) Some companies will not purchase a home if it is on a septic system. Other criteria might include the age of the house, HOA costs, and restrictions such as an age-restricted community, or a gated community. Most of them also have a limit on the size of the lot.
Weighing the Pros and the Cons
The buy-box is one of the pitfalls of these programs. You can't blame the investors. They are in business to make money. They need to purchase homes that they can sell.
As I mentioned in my previous blog, these programs are great for some circumstances. I think it is essential to weigh the pros and cons of selling your home to an iBuyer. Below are just a few.
An iBuyer, or Instant Buyer, is an investor or an investment company that uses technology to make an offer on a home instantly. They pay cash for the home and close quickly. The iBuyer program has gained a lot of momentum lately. They offer a simpler and more convenient alternative to the traditional home sale.
Who are the iBuyers?
The iBuyer market has gotten crowded recently - that only happens when the idea is successful. You may recognize some of the more prominent players: Opendoor, OfferPad, Zillow, Perch, etc. These companies purchase homes directly from the seller, make repairs and necessary updates, and then turn around and sell the houses for a profit.
iBuyers only work in a few select markets. Markets must be active for them to be successful. They also put restrictive parameters on the homes that they will buy. These restrictions are on the size and age of the house. They also enforce a price-limiting window; like nothing over $400,000 in DFW.
How does the iBuying Process Work?
The process is relatively simple. A homeowner requests an offer from the iBuyer. The iBuyer estimates the value of the home and makes an "instant" offer. If the homeowner accepts the offer, the iBuyer has the home inspected and comes back to the seller with further demand for money to cover repairs. If the seller accepts everything, the closing is scheduled and completed in the desired timeframe.
Sellers find that these iBuyer programs offer prices are lower than traditional home sales and that the fees and expenses are higher. This is the price the seller pays for the convenience. The iBuyer is in business to make money. They will make a profit on the home.
Why would someone use an iBuyer?
So why would a seller choose to sell through an iBuyer program? Often homeowners are unable to make a house ready for market. They struggle with an elderly parent or sick family member that makes leaving home for a showing impossible. Some cannot handle the stress of having their house "show ready" or need to sell quickly to settle an estate. Whatever the reason, these are people willing to leave a lot of money on the table in trade for the convenience.
Want to know more?
How can I help? Glad you asked. Keller Williams has partnered with Offer Pad to help our clients decide. Our program, called Keller Offers, is available in our market. As a certified Keller Offers agent, I can bring you an offer before you decide to list your home. We can compare this offer against other iBuyer programs as well as the traditional sale of your house. Armed with all the data you need, you can make an informed and qualified decision on the best way to get your home sold.
Teams take advantage of individual strengths to accomplish magnificent results.
For the past 7 years, I have been using my strength of management and organization to create my Process-Perfected real estate system.
I keep an eye on what others in my industry are doing, and I couldn’t help but notice Pam Heinrich. She has a very similar system called “Smooth Moves” and pays as much attention to detail as I do. She has been in business for over 8 years.
The Pam Heinrich Home Team is one of the highest performing teams in Collin county!
This is why today, I am thrilled to announce that I have teamed up with Pam and am now part of the Heinrich Home Team.
This merger allows us to serve our clients better. I have hit the ground running with this new team, and I couldn’t be happier. Pam and I are an unstoppable team!
Who do you know that is looking to buy or sell a home in the next few months? Let them know about the powerhouse that is the Heinrich Home Team!
Are you wanting a new construction home but are unsure where to find it? This website lets you search for new construction by city, zip code, school district, price, etc.
⏲️ Before You Get Out There...
Let me stress to you how important it is to have a REALTOR® assist you when buying a new home. The sales consultant in the model home represents the builder - not the buyer. Make sure you are making a sound investment - let the builder know that I represent you. Do this at the very first visit you have at a model!
You can search right from this website! Just enter your criteria below and check out all the latest new construction homes around.
Real estate matters can be daunting, and making the right decision is critical with one of the most significant investments you make.
You need a dedicated REALTOR® on your side. Don't go it alone. Enlist a trusted resource to guide you along. My expertise is backed by the largest, most admired brokerage in the business. Let me help you navigate to success in real estate!
There are two significant changes taking place in the real estate industry this month.
One will save you money, and one will cost you some money.
Sadly, you will pay more than you will save with these changes!
Changes to Homeowner's Insurance Deductible Payments on Roof Replacement.
Starting September 1, the new Texas House Bill 2102 goes into effect. This bill is designed to curb the abuses by the roofing industry of covering the homeowner's deductible by absorbing or rebating that money as part of the contract to replace the roof.
Insurance companies now require proof of payment of the deductible before they will pay off the holdback on an insurance claim.
The law will help reputable roofing contractors compete and do the right thing. It will also protect consumers from the predatory businesses that have been skirting around the law for years. When making repairs to your roof you need to ensure the following:
Repairs are done correctly
Repairs are completed by a local company
Repairs are covered by a transferable warranty
However, this new law will hurt homeowners who do not routinely hold back an emergency fund for such purposes. Thankfully I have met with several roofing companies that are already addressing this issue. They have worked out programs to help consumers finance the deductible. When you have a 2% deductible on a $500,000 home, it will be hard to fork out that $10,000 per claim.
Changes to Texas Title Insurance Rates
The other change happening in the industry this month is a change to Texas Title rates. Title insurance is taken out with every home purchase. The seller usually pays for this product.
The Texas Commissioner of Insurance issued the rate change earlier this year. Get this! The rates are going DOWN.
Many factors influenced this decision, but leading the way was the increase in home values. It is an excellent indicator of the strength of the Texas economy. It is also a welcome change for many sellers. Take a look at the new rates here.
As many communities in the North Texas area are headed back to school this week and next; I wanted to put out a reminder about some of my previous posts on our local schools.
Additionally, if you are looking to search for homes for sale by school or school district, check out my Collin schools page. You can also search by other school districts and schools, using my Advanced Search.
Our Schools Are Some Of The Best In Texas
We have some of the best schools in the state. I run into folks daily who are targeting specific schools in their home search. Check out this article from last year about our top-ranked elementary schools.
This year the Texas Education Agency rolled out the report card rating system on our schools. This website is a great way to research schools.
Each Scool District Has Distinct Advantages
I love all that our area school districts have to offer. Check out this article that will help you break down some of the differences in some of our larger districts.
How Can We Help You?
Give me a call if you need help setting up your specialized school search. I am here to help! Have a great school year.