FSBO - COVERING THE COSTS

 Think that you can sell your home and make a bucket load of money on the deal if you do it yourself.  Okay, but let's step back and look at the costs of selling your home without the aid of a realtor.

1. You will need to work with a real estate attorney.  You will need someone to guide you through the for sale by owner process and to review any contracts for sales.  You do not want to take any steps forward in the selling process without legal representation.  Depending on the quality of the attorney the charges per hour can range from $150 to $300.

2. How will you determine a fair sale price?  Most FSBO sellers soon realize they need to have their home inspected, appraised and surveyed to begin to calculate the home's worth.  Each of these items can begin at $300 - $600 depending on the size of the property.

3. What is the marketing plan?  Will you rely on a little sign at the curb or will you place an advertisement in the local newspaper.  Who will take the photos and create your marketing package for your property?

4. When you receive an offer who is going to review the quality of the offer and explain the terms to you. 

5. Now there comes the closing and determining who pays whom and how much and how the transaction is recorded with the county.  Remember that real estate attorney your hired; this is where they earn their fee.

6. Time you invested in the total sale of your home.  What has it cost you in time away to oversee the sale?

Bottom Line: This is where you need to do the math.  This is where you need to count the cost to determine if For Sale By Owner is the way you want to go when it comes to selling your home.

WHAT ARE THE DRIVING FORCES BEHIND THE REAL ESTATE MARKET?

Are you trying to grasp and understand what moves the real estate market today?  Take heart, so are millions of other folks too.  Remember, as we paint in broad stroke 4 factors that are the moving forces behind the real estate market will vary to some degree in your market.

Four key factors standout that impact real estate prices, availability, and investment opportunities. 

1. Demographics - Covid 19 and the "shut down" of the economy during Covid 19 brought about a great migration within the United States.  Buyers and Sellers were looking to move out of crowded cities and into the more rural areas.  Employees were working from home and sought houses that were large enough to accommodate their family and a small office. 

Not only did people move, but major corporations uprooted themselves and relocated into more favorable economic zones where restrictions were minimal.  

The aging of the Baby Boomer generation also impacts the real estate market as many of them opt for the warmer weather of Florida and the great Southwest.  Their children are grown, starting their own families, and Boomers think more about downsizing.

2. Interest Rates - No one will deny that interest rates have had a major influence on the real estate market.  The 0% interest rates have been quickly replaced with 6-7% interest rates on a 30-year fixed-rate mortgage.  As the interest rates rise, the cost of mortgages increase as well resulting in a lower demand.

3. The Economy - The overall state of the U.S. economy reflects the current administration's efforts to offset some of the post-Covid bail out efforts for those forced out of work and companies forced to "involuntarily downsize".  Inflation has reached a 40 year high, unemployment is a problem, and wages have not offset rising consumer products costs.

4. Government Policies and Subsidies - There is a mixed bag of policies at work both to improve the economy and drag it down.  The Federal Reserve has tightened control of the flow of money to the market by raising interest rates and the Legislature has enacted policies to assist first time home buyers through tax credits, deductions and subsidies.  The Right hand gives while the Left hand takes.

Bottom Line: These four key factors significantly impact the real estate market.  Understanding these factors is essential to assessing where the market is and where it will be. 

EVERYMAN'S GUIDE TO THE REAL ESTATE MARKET

 There is a lot of chatter floating about the upcoming real estate market crash and how home values are going to take a nosedive.  Well, like a wise man once said, "Believe half of what you see and none of what you hear."

The housing market has its ebbs and flows; it always has and always will.  The person who keeps a keen eye on the local market knows how the market is performing in their area and shuts off the noise makers and naysayers. 

Understanding the real estate market does not require the services of a real estate agent.  Here are three key areas to follow to get a handle on your local real estate market.

1. Look at the historical data.  The real estate market is like a river with its ebbs and flows.  Knowing where it has been can reveal where it is going tomorrow.  Companies like Zillow, Redfin, and the National Associations of Realtors make it easy to learn what's selling and for how much.

2.Do a deep dive into your targeted market or neighborhood.  Learn as much about the area you want to buy into. Where is the best neighborhood or community, schools, hospitals, employment opportunities, recreational areas and parks? 

3. Take advantage of multiple sources to gather your data.  Local newspapers and community websites give insight into local activities and economic development.  Social media, it goes without saying, provides a calendar of events and activities.

4. Visit the area.  May not always be possible, but when it is, this will be your most reliable source of information.  Just like shopping or buying a car, take advantage of the opportunities to "test drive the neighborhood".

Bottom Line: Being proactive with market research will set you apart from others.  Do the work and the work will take care of you.

EVERYMAN'S GUIDE TO HURRICANE PREPAREDNESS

 Two important dates to remember: June 1st and November 30 of any year.  In between those two dates is hurricane season and if you are new to the area and have never experienced a hurricane, then this blog is for you.

You may have studied about hurricanes or typhoons in science class, but until you have lived through a hurricane or typhoon "is and are" are two different words. (Note: Typhoons occur in the Pacific Ocean west of the International Date Line.)

What can you do to prepare for a severe weather incident like a hurricane?

!. Understand that PREPARE is the key word here. Many radio and television stations offer hurricane preparedness guidebooks to their listeners.  In these guides the reader will find practical steps you can take to prepare their residence for the oncoming storm. The guide will enumerate a list of standard items to have on hand (and within quick access) prior to the storm.  

Items would include:

a. Enough bottled water for all your household for at least one week.

b. Batteries for portable radios, flashlights, and battery-operated clocks.

c. First aid supplies in the event anyone is injured during the storm or during cleanup efforts.

d. Food items that do not require refrigeration and can be prepared on a camp stove or backyard grill. 

2. Have a plan in the event you must evacuate your home.  During a hurricane storm shelters are provided by the county in which you live, but they quickly fill up.  Have a destination in mind out of harm's way to weather the storm.  

3. Have a pet plan.  Your pet is a part of your family so make certain that if you evacuate to a hotel or evacuation shelter, they will accept pets.

4. IMPORTANT: Keep all important papers in a waterproof container and take it with you should you have to leave your home.  Items to secure would be:

a. marriage license, b. birth certificates and adoption papers, c. homeowner's insurance policy(s), d. deed to your home, e. social security card, f. health insurance card, g. any other document you may need.

Bottom Line:  Any and all the items mentioned above can be stockpiled months in advance of hurricane season. Being prepared is the first step to surviving hurricane season.