Hiring an Agent to Sell Your House May Cost You NOTHING!

Hiring an Agent to Sell Your House May Cost You NOTHING! | MyKCM

There is no doubt that it is easier to sell your house when using the services of a local real estate professional. The agent will provide:

  • Greater exposure to more buyers
  • The skills of a professional negotiator
  • A layer of protection from possible legal liabilities
  • Professional guidance in navigating any pitfalls that may arise
  • A level of safety while showing the home

There is no doubt that these services are valuable to any family that decides to sell. The only question is how valuable? One of the main reasons For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe these services are not worth the fee an agent charges. But, what if those services didn’t cost the seller a penny?

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

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. 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)

Why would FSBOs net less money on their own than if they 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 on 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.

Three conclusions from the study:

  1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
  2. The differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%.
  3. The sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

If you are thinking of selling, FSBOing may end up costing you money instead of saving you money. If you have any questions or need any assistance, give us a call at (888) 713 – 3056 or email us at Info@JohnsonTeamRealEstate.com.

Thinking of Selling? You Should Do It TODAY!!

 

Thinking of Selling? You Should Do It TODAY!! | MyKCM

 

That headline might be a little aggressive; however, as August 2017’s housing market data begins to roll in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME TODAY!

In a recent article by CBS News, they explained that the number of existing home sales is shrinking, and Lawrence Yun, Chief Economist for the National Association of Realtors, said:

There should be 3 million homes on the market right now” Yet, there are only 1.9 million.

And this situation will be affected greatly by recent natural disasters. Yun continued by saying:

Before the hurricanes I would have predicted 1.35 million in new-home construction in 2018, I’ll have to scale that down now.

NAR, in their August 2017 Realtors® Confidence Index, indicated that:

Amid sustained job creation and sustained historically low mortgage rates, REALTORS® reported “that buyer demand is stronger compared to conditions one year ago” and that fifty percent of properties were on the market for less than one month when sold.

The only challenge to today’s market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is only a 4.2-month supply of inventory, which is down from 4.5 months one year ago.

Bottom Line

With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together and discuss the inventory levels in your neighborhood to determine your next steps. Give us a call toll free at (888) 713 – 3056 or email us at Info@JohnsonTeamRealEstate.com.

Buying Remains Cheaper Than Renting in 39 States!

Buying Remains Cheaper Than Renting in 39 States! | MyKCM

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!

A study by GoBankingRates looked at the cost of renting vs. owning a home at the state level and concluded that in 39 states, it is actually a little or a lot cheaper to own (represented by the two shades of blue in the map below).

Buying Remains Cheaper Than Renting in 39 States! | MyKCM

One of the main reasons owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows.  Freddie Mac reports that the current interest rate on a 30-year fixed rate mortgage is 3.91%.

Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters who would like to evaluate your ability to buy this year, let’s get together and find you your dream home. Call us toll free at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Current Pending Ratios!

The number of real estate signs you see in yards can be deceiving as to the number of homes actually for sale WITHOUT offers on them. If you are seeing new signs around your neighborhood and curious if any of those homes already have offers on them, we have your answers!

Every week we keep track of how many homes are for sale around Bellingham and Whatcom County and how many of those homes have pending offers on them. Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

As of Friday, October 13th, the pending ratio in Bellingham was 39%. Click the links to view a report of how many homes are for sale in each area by price range and how many of them are pending showing just how active certain sectors of the market are.

The Birch Bay Pending ratio was 36%

The Ferndale pending ratio was 40%

The Lynden pending ratio was 28%

The Sudden Valley pending ratio was 37%

If you are thinking of selling your home or property, Johnson Team Real Estate would love to help! We are here to help you will all your real estate needs! You can reach us toll free at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com

4 Reasons to Sell This Fall

 

4 Reasons to Sell This Fall [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Buyer demand continues to outpace the supply of homes for sale! Buyers are often competing with one another for the listings that are available!
  • Housing inventory is still under the 6-month supply that is needed for a normal housing market.
  • Perhaps the time has come for you and your family to move on and start living the life you desire. Give The Johnson Team a call at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Halloween Home Saftey Tips

Bellingham HalloweenHalloween is creeping up on us fast and so are some potential dangers to your home as a result of the fun holiday.  Below are some tips to help keep your home and family safe this Halloween:

– Be careful when placing candles in your carved jack-o-lanterns and keep them far away from any furnishings, drapes or Halloween decor that may be flammable and never leave them burning unattended.

– Do not overload electrical outlets with holiday lighting or movable decorative objects.

– Be sure and take time to check around our porch or sidewalk for any garden hoses, low lying tree limbs or decorations that might prove to be a tripping hazard for young children trick or treating at your home.

Hope you have a safe and happy Halloween!

Net Worth of Homeowners 44X Greater than Renters

Net Worth of Homeowners 44X Greater than Renters | MyKCM

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago.

The study revealed that the 2016 median net worth of homeowners was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family wealth

As we’ve said before, simply put, homeownership is a form of “forced savings.” Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

That is why, for the fourth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options

If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, let’s get together to discuss the process. If you have any questions or need any help, call or email us at (888) 713 – 3056 or email us at Info@JohnsonTeamRealEstate.com.

Buying, Selling, or Refinancing? Check The Rates Here!

If you are buying, selling, or refinancing, the current mortgage rates are very important. You can see below what the current rates are as of Thursday, October 12th.

rates12

Thank you Sidney Stonecypher at People’s Bank Home Loan Center for the rates. If you have mortgage questions you can reach her at 360-650-5365!

Easy Two Ingredient Pumpkin Muffins!

Have you been searching for the perfect easy treat to satisfy your sweet tooth? Look no further than these great two ingredient pumpkin muffins.  They are sure to be a hit with the kids, friends at fall parties or just as a great treat!

Ingredients:

– 1 box spice cake mix

– 1 can pumpkin puree

Directions:

Mix together pumpkin and spice cake mix in a large bowl. Scoop mixture into 12 paper lined muffin cups. Bake in an over pre-heated to 350 degrees for 20-25 min or until toothpick comes out clean.

Muffins can be topped with a whipped topping for a fun pumpkin pie like taste or even cream cheese frosting. I actually just prefer them plain.

Happy baking!

Beginning of October Pending Ratios!

The number of real estate signs you see in yards can be deceiving as to the number of homes actually for sale WITHOUT offers on them. If you are seeing new signs around your neighborhood and curious if any of those homes already have offers on them, we have your answers!

Every week we keep track of how many homes are for sale around Bellingham and Whatcom County and how many of those homes have pending offers on them. Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

As of Tuesday, October 11th, the pending ratio in Bellingham was 40%. Click the links to view a report of how many homes are for sale in each area by price range and how many of them are pending showing just how active certain sectors of the market are.

The Birch Bay Pending ratio was 35%

The Ferndale pending ratio was 40%

The Lynden pending ratio was 30%

The Sudden Valley pending ratio was 39%

If you are thinking of selling your home or property, Johnson Team Real Estate would love to help! We are here to help you will all your real estate needs! You can reach us toll free at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com