Price Perception Get Realistic

Regionally, home values showed a growth ranging from 

5.53 percent in the Northeast to 9.99 percent growth in appraisal values in the West, indicating an increasing demand for homes in March.

An increasing number of homeowners are becoming more realistic about the value of their homes according to data from the latest Home Price Perception Index (HPPI). In March, the index’s data indicated that appraisal values were 0.36 percent lower than homeowners’ expectations on an average.

Appraisals also had a positive movement in March with the National Home Value Index (HVI) reporting an average growth of 1.84 percent in home values month over month and 7.64 percent increase from the same period last year.

“This month’s HPPI is great news for homeowners who may be thinking of selling their home, or using some of their equity,” said Bill Banfield,  “Not only are owners’ and appraisers’ views of the housing market getting closer together when looking at the nation as a whole, but homeowners in many major areas are building equity at a rapid pace.”

“A monthly increase in home values, after a stable report last month, shows that demand for the few available homes for sale ramped up in March,” Banfield said.“The true test will be whether more homeowners decide to take advantage of their higher home value and provide some much-needed inventory for buyers.”

The decision to Sell or buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale

Owners Selling Starter Homes

Confidence is Key for Seven of 10 millennial homeowners wish to 

sell and upgrade to a

“forever home,” according to a study by Value Insured that looked at millennial homeowners who were considering selling their starter homes for a bigger space.

According to the study, 70 percent of all millennial homeowners who were considering selling soon said they were waiting until prices to buy were better before making a move in the first quarter of 2018. This represented an 18 percentage point surplus compared to 52 percent of interested home sellers in the age-group of over 35 years who were also waiting until the prices to buy another home were better before they sold their old home for a new one.

The reasons for millennials to hold back on selling their starter homes are many. For instance, among millennial homeowners who were considering selling soon, the study said, 68 percent said they were trying to time the market but were worried about buying too high. Another 68 percent were also worried about losing flexibility if they sold now and upgraded to a bigger or more expensive home.

The findings of this study also highlighted that many starter homeowners were interested in selling to upgrade to a bigger home, but were concerned with what they would have to pay for it.

Profits and if they would earn enough by selling their starter home to upgrade to a new one also played on the minds of these homeowners. The study found that 73 percent of all millennial homeowners believed that people who would buy in their neighborhood during the quarter would be overpaying.

Even then, profits wouldn’t be much. The study said that if a starter-home owner believed that he or she could sell their $250,000 home for 10 percent over market value, after brokers’ commissions, closing costs, legal fees, and capital gains tax, there wouldn’t be much left to pay 10 percent over market value on a desirable, more expensive home in the same neighborhood.

The key to selling the home is therefore confidence, the study said, citing its finding that 80 percent of the respondents said they would sell and upgrade sooner if they had more confidence that they would not lose money on the next home they bought.

Are you ready Buy or Sell? The decision to Sell or buy is a personal one that depends on your financial situation, future plans and lifestyle. 

If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.

Selling Your Home?

Relax! 5 Things to Not Bother Fixing First, Selling your home? Then 

you've likely had that rude awakening where a real estate agent tours your home and breaks some tough news: Your house needs work before it goes on the market.

For starters, you'll have to fix the boiler. And paint. And replace those outdated cabinets ... the list might go on and on.

Given that all these tweaks cost money, you might wonder: Do I have to do everything?

Many of these fixes are indeed necessary, says Kathleen Kuhn, president of HouseMaster, a national chain of home inspection offices.

'Any defect or condition that affects the intended function or operation of a major house system should be fixed,' she says. This would include taking care of leaks, built-in appliances not functioning properly, insect infestations, plus any imminent safety or environmental hazards.

But beyond that, it's up to you: Sure, the nicer your home looks, the more money you'll likely be able to fetch when selling it. But not all improvements you make offer the same return on investment. Here are some fixes that some experts say you can pass on without too many repercussions.

1. Fixing cosmetic damage
Cosmetic damage includes things such as scuffed floors or peeling paint: They don't interfere with the function of your home, although they do make it look run-down. The good news is, a keen home buyer knows to look beyond that. What will give them pause is the hard stuff.

'They are going to want to know that the electrical and plumbing systems are up to grade and that the utility bills are decent,' says Webb. If the home's structural issues are sound and the 'bones' are good, then you can let the surface stuff slide.

2. Updating kitchens and bathrooms
So your kitchen is woefully outdated, your bathroom avocado green (yuck). That may be OK. Really.

The reason: Many buyers these days look forward to remodeling these 'fun' areas—plus, trying to second-guess what they want and have it there waiting for them is just plain unrealistic, given all the home decor styles there are to choose from today.

'Maybe you favor a French provincial kitchen and he or she likes Scandinavian modern.'  'People have very different ideas about what a perfect kitchen is or what a perfect bathroom is. It's a big risk, and unless you know your exact buyer, it's better not to guess. The next person will impose their own dreams on the house anyway.”

3. Doing partial fixes
If you do decide your kitchen and bathroom are so bad they're worth redoing, don't go halfway. Unless you can redo a whole kitchen, don't bother with partial fixes. Older cabinets with brand-new granite countertops only highlight the old.

4. Repainting in trendy colors
We don't care if the color du jour is violet—selecting 'trendy' paint colors is yet another bad move.

The reason: Color trends come and go so fast, what might look great today will look dated tomorrow or, even if they're totally hip, might not appeal to large swaths of buyers anyway.

'Bright colors are really trendy right now, but they don’t appeal to a wide audience.' So if you must paint, 'keep things neutral,' advises Hancock. 'Odds are the buyer is going to paint the house how they like it anyway.”

5. Renovating beyond your neighborhood's norm
There is a saying that Webb likes to use: 'Too much house for the neighborhood.' In other words, if all the houses on your block are beautifully furnished and landscaped, then it likely is worth it to spend the extra cash on your own. But if your house is the only house on the block with a well-kept rose garden and indoor dog shower, you may not get the return you hope for.

“No matter how much you try to have the jewel house to live in, you aren’t going to get the return on the investment if the rest of the neighborhood doesn’t match,' Webb says. So check out your neighbors' homes and plan accordingly. It’s important to choose an agent you are comfortable with and can provide the knowledge and services you need.

If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. The decision to buy or sell is a personal one that depends on your financial situation, future plans and lifestyle.

Price your home
Your agent will research sale prices on other comparable homes in your neighborhood to help you set your sale price.  It’s important to get the price right the first time.

Source: Realtor.com

Metros Still Exhibiting Pockets of Affordability

With home prices rising in most major metros across the United States 

for the past decades—in some cases posting double-digit gains year-over-year—the American Dream of homeownership may begin to feel elusive. However,  a homeownership investment firm, maintains there are pockets of affordability in every major metro market.

A combination of factors is seemingly putting homeownership out of reach for many Americans. Not only are home prices rising, but student debt and climbing rents are also taking a toll on potential down payment savings for many.

However, the dream of homeownership, at least, is alive and well,  which cites Ellie Mae data stating that 91 percent of millennials intend to own a home one day.

Compared home price and home income data across major metros to determine the salary necessary to purchase a median-priced home, and the number of years it would take to save for a down payment on a median-priced home with a median-priced salary. Not only did Unison look at metro areas as a whole, it also zeroed in on city-level data to determine the most affordable areas in major metros.

The least affordable metro in the nation, is San Francisco-Oakland-Hayward, where residents need to earn $231,216 to purchase a median-priced home with a 10 percent down payment. At the median salary, it would take a San Francisco metro resident 20 years to save for a 10 percent down payment on a median-priced home.

The second- and third-least affordable metros were Los Angeles-Long Beach-Anaheim and San Diego-Carlsbad, where salaries of $157,728 and $139,130, respectively, put a median-priced home within reach.

In the Los Angeles metro, it would take 19 years for a resident earning the median salary to save enough for a 10 percent down payment on a median-priced home. In the San Diego metro, residents would need to save for 16 years to put 10 percent down on a median-priced home in the market.

Homebuyers fare much better in Detroit-Warren-Dearborn, where they need to earn a salary of $35,909 to purchase a median-priced home with a 10-percent down payment. Following on the list of most affordable markets are Kansas City, Missouri, where the required salary is $40,869; and Tampa-St. Petersburg-Clearwater, Florida, where residents need to earn $43,978.

In the Detroit and Kansas City metros, it would take residents earning the median salary just five years to save for a 10 percent down payment on a median-priced home. In the Tampa metro, it would take about seven years. While Dallas, Texas, ranked a little lower for affordability, it would take median-income residents only six years to save for a down payment on a home in their market.

However, “While home prices overall have increased, there remain neighborhoods in every metro area that are relatively affordable and every metro area offers solid housing options for almost all types of home buyers,” 2018 Home Affordability Report.

In fact, the entire San Francisco Bay area has experienced “a dizzying rise in home prices,” and even the “potentially affordable neighborhoods” in the area have median home values above seven figures.

“If one city has embodied the staggering increase of California home prices this decade, it’s San Francisco,” said in its report.

On the other hand, in the Dallas metro a salary of $52,000 is necessary to purchase a median-priced home with a 10 percent down payment, but in Dallas city proper, the salary necessary s to about $49,000.

In already affordable Kansas City, the salary required to purchase a median-priced home s from $40,869 for the metro area down to just $29,036 in Kansas City proper.
For more information on potentially affordable neighborhoods report here.

Buyers Snag Homes Sight Unseen

Some home shoppers are feeling hopeless this spring and 

making competitive moves in order to get a home. 

They’re reportedly rushing to making offers without seeing homes first, bidding well above the asking price, or waiving inspections entirely to get sellers to find their offer the most alluring. 

“For home buyers, this is shaping up to be one of the most difficult years in recent memory,” Record low supplies of homes for sale are driving up prices across the country.

As for sellers, they may find some big profits when they do sell. “It’s going to have the feel of a hot market” with multiple offers and bidding wars, says Lawrence Yun, the chief economist for the National Association of REALTORS®. 

Still, Yun expects sales to be flat compared to a year ago due to the shortage of homes for sale as well as reduced affordability for many house hunters. 

There was a 3.4-month supply of existing homes nationwide in February—the lowest on record for a February, NAR reports. The median home price, meanwhile, was up 5.9 percent from a year earlier to $241,700, according to NAR. Yet, average yearly income growth has held at about 2.5 percent. 

Mortgage Rates Ease This Week, Borrowers found some relief for the second consecutive week with lower mortgage rates.

 “After ping earlier this week on trade-related anxiety in financial markets, the 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week,”  “Mortgage rates followed and fell for the second consecutive week. …Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor market is helping home purchase demand weather modestly higher rates.”

 If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. The decision to buy or sell is a personal one that depends on your financial situation, future plans and lifestyle.


Source: NAR

March Listing Prices Surpass 2017

The median list price for homes nationwide this March have now 

topped a record high set in 2017.  The median list price was $280,000, up 8 percent year over year in March, topping last July’s record of $275,000, reports. 

Not only are home prices higher but homes are also selling faster this year. Days on the market ped 7 percent compared to last year, reaching a median of 63 days in March.

There are also fewer homes for sale, with inventories of homes for sale ping 8 percent, according to report, which is based on for-sale data culled from U.S. MLSs. 

'Our latest inventory data tells us buyers are out in full force this spring. Never in history have there been more eyes on fewer homes than today. At the end of March, we observed price gains that put us on pace for half of the homes listed this summer to be above $300,000. Buyers are not just paying more for the same home; the mix of homes in the market is rapidly changing.

“Never in history have there been more eyes on fewer homes than today.” 
“Buyers are not just paying more for the same home; the mix of homes in the market is rapidly changing,” he adds. 

Housing inventories between $200,000 and $350,000 remain low, and homes under $200,000 are even harder to find, realtor.com® notes. 

March housing trends show the inventory depletion we've seen over the last two buying seasons is carrying over to this year. It's going to be a languid search for buyers this season as they face the harshest, most competitive buying conditions yet.

While days on market and total listings are decreasing at a slower rate than before, 36 of the largest 100 markets in the country are still seeing inventory move at least a week faster than this time last year. This includes cold weather markets that are thawing faster than expected and quickly catching up to the rest of the country.'

It’s going to be a languid search for buyers this season as they face the harshest, most competitive buying conditions yet.”

Are you ready Buy or Sell? The decision to Sell or buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.



Source: realtor.com®

Budgeting for Homeowners

A new home often means making significant adjustments to how people spend their money. Expenses such as

• mortgage payments
• property taxes, insurance
• utilities
• maintenance

add up quickly and can easily throw the best of financial intentions out of whack. Creating and following a budget is a great way to stay on track while cutting down on financial stress at the same time.

Having a budget gives homeowners a road map for their financial needs and goals. Yes, their monthly home-related expenses need to be met, but they’ll also need to consider much more: food, clothing, education, healthcare, transportation, and savings for both retirement and emergency expenses.

Homeowners will definitely have unexpected costs that arise at inconvenient times – the water heater needs replacing, or the roof needs repair right away. Having a way to cover these expenses is critical not only to the home but for peace of mind.

Homeowners should start budget planning by examining their household income against expenses.

• First, list the monthly income – take-home pay if they get a paycheck, self-employment income, and any other outside sources of income. This amount will form the basis of the budget.

• Next, make a list of the monthly fixed expenses. These include the mortgage payment, car payments, phone and internet service, trash collection, etc. For expenses that are typically billed less frequently, such as property taxes, home insurance, and school tuition, divide the total yearly amount by 12. Fluctuating costs such as gas and electric bills can be averaged to a monthly total and added to this list as well. If there are carried balances on credit cards, those payments will need to be factored in, too. Importantly, savings should be considered fixed expenses – making this commitment to the future will pay off, literally, in the years to come.

• Next, list the variable expenses. These are expenses over which homeowners have some control: food, clothing, cable or satellite TV, online subscriptions, gasoline, entertainment, gym memberships, and even haircuts are some typical examples. Track these expenses for a few months to arrive at accurate numbers to work with. It’s very important to be realistic about what is currently being spent, because once the overall expense budget is developed, they may need to look for reductions in these variable items.

Add the fixed and variable expenses together and compare them to the total monthly net income. If the income is enough to cover everything, homeowners can still look for ways to budget in their favor. Reducing some variable expenses and shifting the difference into savings, for example, is a great way to boost one’s financial situation without making major changes.

And if expenses exceed income? If an increase in income isn’t on the horizon, they’ll need to reduce expenses so that they’re in line with what they can actually afford. First, go to the list of variable expenses and closely consider each line item. Is that upper-tier cable TV package really necessary? Can more meals be prepared at home? Go to the movies less often? Reducing expenses in these categories can really add up on a monthly basis.

If reducing the variable costs still isn’t enough, they’ll need to look at the fixed expenses. Consider trading down to a car with affordable payments and raising the deductibles on home and auto insurance. Check into cheaper plans for mobile devices. The differences can be significant over the course of a year.

No matter how careful the budget planning, it won’t work if the budget isn’t followed. Personal finance software can be helpful in tracking cashflow, and adjustments can continue to be made over time. By keeping to a budget, homeowners will come out ahead and better at night, too.