As your clients are prepping their homes for the summer selling season, they may want to keep outdoor space in mind. The outdoor space s a major factor in today’s home buyers decision and they are very engaged in making it comfortable. Turning a yard, patio, porch or other outdoor area into a functional living space can be a rewarding task, and will expand your living space to the outdoors. Americans view their backyard as both a Zen spot and an entertainment zone and the space is outfitted accordingly with a grill, shade, chairs & dining sets and access to wi-fi. Universally, on the top of our wish list for our outdoor space is a pool or hot tub. Home seller should consider how this group and lead the way in defining how an outdoor space can be used and decorated. With the right setup, you can spend more time in the sunshine and fresh air, and host events al fresco for friends, family
Luxury home owners and buyers place a high value on real estate, according to a new survey of 500 luxury home buyers.
In fact, the survey finds that 75 percent of luxury home buyers believe home ownership is a sounder investment than the stock market. What’s more, 57 percent of luxury home owners say home ownership is a bigger indicator of success than their job or title. The luxury home buyer has high standards and invests the money and time, to making their home fit their needs and reflect who they are. It’s remarkable that they do this so well that nearly all — 93 percent — believe their house is the best one on their block.
The survey revealed some of the following insights into the luxury home buyer and owner:
- They desire multiple homes: Fifty-three percent say they prefer owning multiple “lifestyle” homes to support their lifestyle activities, such as skiing or attending the theatre. Fifty-eight percent of the luxury home buyers surveyed say they already owned multiple homes to support their lifestyle activities.
- They’re willing to sacrifice square footage for luxurious amenities: Sixty-percent of luxury home buyers surveyed said they would rather have as many upgrades as they can afford in their home rather than greater square footage. Ninety-four percent of those surveyed would be willing to give up 1,000 square feet of living space in their next home in order to get the amenities they most desire, such as living in a better neighborhood, living in a house with “character,” more land, access to dining and entertainment, and a shorter commute.
- They want a high-tech home. Sixty-six percent expressed a stronger desire for having a “smart” home than a “green” home. Eighty-seven percent said they would not even consider purchasing a home that wasn’t tech-friendly.
- They also value their outdoor spaces. Luxury homebuyers also placed a high value on outdoor amenities as must-have essentials in a home. For example, they expressed a big interest in having a garden oasis, outdoor fireplace or firepit, and a separate guest house outside of the main home.
Forty percent of luxury buyers say the biggest challenge in searching for a high-end luxury home is to find a property that meets their family’s needs; 20 percent say it’s limited number of properties offered. What’s prompted their search for a luxury home? The realtor.com survey found that 19 percent of luxury home shoppers say a recent success in their career has prompted their home search, while 17 percent say they entered the market because they’re newly retired
Christies International Real Estate released its second annual Luxury Residential Property Market report, looking at the market in 10 of the world’s major markets – Cote d’Azur, Hong Kong, London, Los Angeles, Miami, New York, Paris, San Francisco, Sydney and Toronto. Those markets were compared against each other in terms of sales price, prices per square foot, percentage of non-local and international buyers, and the number of luxury listings per population.
London was rated No. 1 based on its top sale of a property for $101.5 million, and it also had the top per square foot sales average of $4,683. New York and Los Angeles were second and third, respectively, with a significant growth in luxury sales volume. Here in Los Angeles, the mega mansion Fleur de Lys just sold for more than any other house in Los Angeles County ever: $102 million. In an all-cash sale
1. Remember that the outside is just as important and in some ways more important than the inside. The outside is the first impression and sets the tone for the property tour inside.
2. Be prepared to spend some money on repairs. You will be expected to address some items needing repairs. In some cases, a little money can go a long way.
3. Know the number and know your bottom line. Make sure you know what your mortgage payoff really is and what your closing costs will be. You also want to make sure you know your numbers if you are going to be buying as well. If you are selling and buying something else you need to meet with a lender on the purchase before you sell your home because it will effect your negotiating ability.
5. Be prepared for showings. Make some preparations and plan ahead of time for last minute showings and certain days of the week. Maybe let you spouse be in charge of some days and you the others if you both work or be sure to enlist the help of a stay at home mom or friend if you need pets removed during showings and you can’t always get home. A little preparation and planning on the front end will make a world of difference in getting those buyers in your home. And after all we have to get them in to get it sold!
1. The Most Serious Buyers Are Out Now
Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. These buyers are ready, willing and able to buy…and are in the market right now!
2. There Is Less Competition Now
Housing supply always grows from the spring through the early summer. The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.
3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker and simpler.
4. There Will Never Be a Better Time to Move-UpIf you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Rates are projected to be well over 5% by this time next year.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
In 2008, as the last boom ended, “for sale by owner” transactions reached 13 percent of all sales as sellers sought to avoid the expense of paying a commission to a brokerage. As prices and sales plummeted, so did FSBOs, falling to 9 percent in 2010. The figure tends to go up when the market is hot because it’s easier for sellers to go it alone, and that number declines during a down market because there’s a glut of unsold properties. However, FSBOs haven’t budged from that level in 2013 despite the strongest prices, tightest inventories and healthiest demand if five years. One-third of those FSBO sellers probably would not have needed a professional to market their homes since they knew the buyer prior to the home purchase, according to the National Association of Realtors.
Also, many of today’s FSBOS didn’t do much to market their homes. One-third of FSBO sellers took no action to market their home, and 60 percent did not offer any incentives to attract buyers. But homeowners who sell their property on their own may not always be able to tap the pool of buyers that an agent can in the open market, which could reduce the range of offers. And the process of selling a home can be painstaking and confusing, potentially more trouble than it’s worth. FSBO homes in 2013 sold for over 16% less than agent-assisted home sales.
1. THERE IS FAR LESS COMPETITION: Supplies are seasonally low. Sellers who wait for the spring are guaranteed to have far greater competition. Consider if you have the best house in the neighborhood, it may not matter when you put your house on the market. For the 99.9% rest of us, sellers must consider buyers have many more choices in the Spring.
2. SERIOUS BUYERS ARE IN THE MARKET. Fall and Winter are not typically inviting times to visit homes as a Sunday past time. As good as Spring and Summer are with shear numbers of buyers, winter (year-end) offers a greater percentage of ready to purchase buyers. Sellers now is the time get your home ready to meet action takers.
3. THERE WILL NEVER BE A BETTER TIME. In most markets, home values have spiked. Through the first half of 2013, prices have recovered, the declines suffered since 2007. Additionally, interest rates have remained at historical lows and all indications are there is only one way to go from here… up.
4. FINANCING WILL BE QUICKER. There is money to lend and the industry is “healthy” and competitive. Lenders have embraced technology and have streamlined the process. Most qualified lending institutions can get a loan approved within 21 days. Spring and Summer and especially the first half of 2013, lenders were inundated with both purchase and refinancing loan requests. Both of these have now slowed in the winter facilitating the shorter timelines.
5. IT’S TIME TO MOVE ON WITH YOUR LIFE. Examine the reasons you are considering selling and decide whether it is worth waiting. You have the power to take back control of the selling process. Competitive financing and year-end closings are potent buyer triggers.
1. Demand Is High The most recent Existing Home Sales Reports by the National Association of Realtors (NAR) show a double digit percent increase in sales year-over year; sales have remained above last year’s levels for over 25 months. There are buyers out there right now and they are serious about purchasing.
2. Supply Is Beginning to Increase Total housing inventory is again approaching historic norms of a 5 month supply compared with 4.3 months in January. Many expect inventory to continue to rise as 3.2 million homeowners escaped the shackles of negative equity in the last 12 months and an additional 1.9 million are expected to enter positive equity in the next 12 months. Selling now while demand is high and before supply increases may garner you your best price.
3. New Construction Is Coming Back Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.
4. Interest Rates Will Again Rise Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by this time next year. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
5. It’s Time to Move On with Your Life Look at the reason you are thinking about selling and decide whether it is worth waiting. Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?