New Stats for 2017
Why Waiting Until After the Holidays to Sell Isn’t a Smart Decision
Every year at this time, many homeowners decide to wait until after the holidays to put their homes on the market for the first time, while others who already have their homes on the market decide to take them off until after the holidays. Here are six great reasons not to wait:
- Relocation buyers are out there. Companies are not concerned with holiday time and if the buyers have kids, they want them to get into school after the holidays.
- Purchasers that are looking for a home during the holidays are serious buyers and are ready to buy.
- You can restrict the showings on your home to the times you want it shown. You will remain in control.
- Homes show better when decorated for the holidays.
- There is less competition for you as a seller right now. Let’s take a look at listing inventory as compared to the same time last year:
- The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge reaching new heights in 2017, which will lessen the demand for your house.
Bottom Line
Waiting until after the holidays to sell your home probably doesn’t make sense.
Call the Grossman Group at (651) 434-7887, or email RLGrossman@CBBurnet.com, for more advice and the best marketing for your home in the Twin Cities area.
Selling Your Home During the Holidays
Fall and winter are great times of the year to put your home on the market in the Twin Cities and contrary to popular belief, it is possible to have success selling your home during the holidays. Here are a few ways that you can attract the right buyers.
Buyers looking for homes during the cooler, less popular months of the year tend to be more serious about finding a home, which is good news for sellers. Unfortunately, many major holidays occur during this time of year, which is a downside for sellers who enjoy entertaining. Thankfully, it’s possible to keep your home on the market and enjoy the holiday season.
Here are a few tips for successfully selling your home during the holidays:
Don’t Overdo It
If you’re a person who enjoys filling their home with holiday decorations, you’re going to have to tone it down this year. That doesn’t mean you can’t decorate at all, but keep in mind that buyers might have a hard time imagining themselves in your living space if it’s jam packed with mementos and holiday cheer. A few tasteful decorations around your home can still leave you with that bubbly feeling and won’t make your buyers uncomfortable.
No matter what time of the year you put your home on the market, strong smells and personal items are a no-no, so quickly remove family photos and try to refrain from lighting a holiday spice scented candle in every room before showings and open houses.
It’s also worth noting that not every buyer is going to celebrate the same holidays as you do. While you might not see the point in changing the way you enjoy the season for someone else, you have to remember that your main goal is to get your home sold. Don’t do anything to jeopardize that.
Forgo Hosting Duties
You never know if the right buyer is going to only be available to look at your home during the time that you’ve planned a holiday party. You can take the risk of letting your real estate agent know the property is unavailable to show, but at the end of the day you’ll have to decide if you’d rather have the memory of a party or have your home under contract. Tag team with a friend or family member, and agree to help them host this year’s party at their home.
Stay Flexible
Winter, in particular, is a season for staying indoors, and after a long day, the last thing you probably want to do is get bundled up to go wait in the cold while someone comes to look at your home. It’s important to remember that buyers looking at homes during the colder months are probably only looking at homes that they’re seriously considering buying. (They have to get bundled up, too.) Be open to open houses and showings, even if you’d rather stay home.
Don’t Neglect Your Exterior
The ice and snow of an Minnesota winter can create potentially dangerous situations if walkways and sidewalks are not maintained. You should make an effort to keep them clean regardless of whether a showing or an open house is scheduled, but you especially need to do it if one is. Nothing will turn a buyer off of your home more than an ice skating rink for a walkway and a broken ankle as a souvenir of the visit.
If you keep your home clean and safe, stay flexible, and don’t go nuts with decorations, selling your home during the holidays is no different than selling your home during any other time of the year. As long as it’s in good condition and priced correctly, you should have no trouble selling in the current Twin Cities market.
Call the Grossman Group at (651) 434-7887, or email RLGrossman@CBBurnet.com, for more advice and the best marketing for your home in the Twin Cities area.
Happy Thanksgiving!
Happy Thanksgiving to you and yours! We are grateful for the wonderful year, and as always, for your support and your referrals. Please enjoy the wonderful holiday season!
Robbie and Julie Grossman
The Grossman Group
Coldwell Banker Burnet – Highland Park
(651) 434-7887
http://www.GrossmanGroupRealEstate.com
How the Trump Win Will Affect Real Estate
Interest Rates Rise Following Election
We explored how the residential market might fare under the new President’s administration (How the Housing Market Will Fare Under Either Presidential Candidate, Nov. 8). What we have already seen, however, is a rise in mortgage interest rates — though they remain under 4%. Why?
According to Business Insider, (The housing market is suddenly losing one of its biggest drivers, Nov. 19):
“It all started after President-elect Donald Trump won the US election.
One of Trump’s big plans is a fiscal-spending splurge: big investments in infrastructure, and cuts to the US’ towering corporate tax rates.
This plan could jump start growth and inflation, and it’s the latter that rocked mortgage rates. Higher inflation expectations triggered a sell-off in bonds, which push up interest rates when they fall.”
Meanwhile, Janet Yellen has indicated to Congress that interest rates could be raised soon. The chairwoman of the Federal Reserve said on Thursday that an interest rate hike “could well become appropriate relatively soon” (Fox Business, Nov. 18).
It is good news for homebuyers at this time: rates remain below 4%, and the real estate market remains healthy with housing starts hitting a nine year high this October (Bloomberg, Nov. 17). But with rates likely to rise soon, homebuyers may have less to spend for their homes come spring.
In commercial real estate news, Marcus & Millichap published their report on the election, and the news was largely positive. “The news was largely positive.
On the plus side, Marcus & Millichap said that the U.S. economy should continue to grow as the new president takes office. As the company says, the U.S. economy is now in its seventh year of a durable but moderate expansion. Marcus & Millichap says that 2 million to 2.5 million new jobs should be added during the next year. The country currently has an unemployment rate of 5 percent and 5.5 million unfilled job openings.
Marcus & Millichap predicts that unless an unexpected surprise hits the country, the economy will continue to grow, something that will result in an increase in commercial real estate construction, leases and sales” (Trump won. What does that mean for commercial real estate? Dan Rafter, Nov. 16).
However, the report also anticipates the rise in interest rates. “Marcus & Millichap says that faster economic growth could result in inflationary pressure, pushing interest rates higher. Mortgage interest rates have already jumped following Trump’s election, with many economists predicting that the average interest rate on a 30-year, fixed-rate mortgage loan might soon hit 4 percent.”
Saint Paul Announces Plan for Ford Site Development
The city of Saint Paul has made a big step in the development of the Ford Plant site in Highland Park: the announcement of a single draft plan in the development of the new riverfront community.
Ten years of planning, a dozen studies, and community meetings have gone into the development of the plan. A master developer may be selected by 2018.
Some highlights from the plan:
- “It will have a neighborhood feel,” said city planner Merritt Clapp-Smith
- There will be six districts, and all but one “gateway district” in the northwest corner will feature a mixture of housing and business development. “Heights would ‘step up’ from the Mississippi River on the west, and get taller moving east,” writes the Pioneer Press (St. Paul just took a big step in the future look of redeveloped Ford plant, November 14).
- There will be a district “dominated by condos in two-story, mansion-style buildings; another primarily composed of townhomes, condos and apartments; and another featuring multifamily housing ranging in height from four to 10 stories wrapped around retail.”
- Many questions have arisen around traffic and parking concerns. “The goal is 4,000 new housing units, with a maximum of 1.5 parking spaces per unit. Shared parking ramps, small parking lots for 20 vehicles or fewer, and limited on-street parking are key features.”
- The area promises to be green-friendly, including bike paths, car sharing, electric vehicle ports, and LED lighting designed to not block out the night sky.
- A central stormwater feature will run north to south, with “‘a series of interesting and attractive spaces across the site.’ What begins to the north as a scenic stream could culminate in a pond at the south end that would be used for winter skating, and a connection to Hidden Falls Regional Park.”
- Plans call for a new traffic connection between Cretin Ave and Montreal Ave to reduce pressure on Ford Parkway.
- The next Ford site meeting is scheduled for November 21 at 7 p.m. at Lumen Christi Catholic Church. It will focus on transportation and traffic.
Copyright: vule / 123RF Stock Photo
How the Housing Market Will Fare Under Either Presidential Candidate
There has not been a lot of talk about the housing market in this year’s election. However, the choice of presidential candidate will affect the housing market directly. So how will the housing market fare under either major party candidate?
“In order to gauge which candidate would favor the U.S. housing market, one has to look at their wider economic policies and see how they would trickle down to housing,” writes CNBC, in “How housing would fare under Clinton, Trump” (November 2).
“What we’ve really gotten is more directional conversation: One party talking about affordable housing, the other party talking about deregulating a financial market that seems to have largely seized up,” said Rick Sharga, executive vice president of Ten-X, an online real estate marketplace for investors.”
Hillary Clinton
“Clinton does have the advantage of building on a framework already in place under the Obama administration,” writes CNBC.
“She has advisors like Jim Parrot and Gene Sperling who have already put out white papers looking at what to do about Fannie and Freddie, there’s already a perspective with what to do about the FHA program, so she is ready to hit the ground on Day One,” said [Jaret Seiberg, managing director at Cowen Group, a financial services company.]
Clinton has also put forth proposals to increase homeownership, which is now hovering near record lows. She has promised to provide down payment assistance to “underserved” communities.
“Specifically, the plan would match up to $10,000 in savings for households who earn less than area median income to put towards a down payment on a first home. On the plus side, that will encourage some households to save more. But we doubt it will be a game changer in terms of getting more people onto the housing ladder,” noted researchers at Capital Economics.
“The focus on down payments ignores the fact that it is the need for a high credit score which is preventing many Americans from buying. And even if the proposals do help more people to buy, the eventual outcome will be higher house prices, benefiting existing rather than potential homeowners.”
Donald Trump
“Republican Donald Trump, a real estate mogul who has invested largely in hotel and multifamily housing development, has said even less about housing than Democrat Hillary Clinton, but the GOP platform is clearer when it comes to the financing side of the business.
“We’re really seeing a lot more discussion about things like reforming or rejecting the Dodd-Frank [financial reform] bill. We’ve seen a lot of discussion about easing regulatory burden on the industry which was put on it by Dodd-Frank and by the CFPB [Consumer Financial Protection Bureau],” said Sharga. “The contention seems to be that some of the rules established in Dodd-Frank and the CFPB make it difficult for qualified borrowers to get a loan and make it difficult for lenders to justify making loans because of the regulatory and litigation risk.”
Given that Trump’s track record is all in multifamily housing, his thoughts on the single-family market, which comprises most of the nation’s housing, is the big unknown.
“But clearly his whole campaign is about growing the economy and smashing through regulations, so I think you could see real upside with Trump, provided the economy and the other parts of his agenda don’t derail it,” said Seiberg.”
*Note: The Grossman Group does not officially endorse either major party candidate. This is for informational purposes only.
Photo courtesy of 123rf.com
Highland Park October Market Snapshot
Highland Park Real Estate Snapshot
Closed Sales October 2016: 388 (up 14.8%)
Average Sale Price October 2016: $321,937 (up 6.4%)
Median Days on Market October 2016: 27 (down 28.9%)
Average Percent of Original Sales Price October 2016: 97.9% (up 1.6%)
For a Market Snapshot of any area or a Market Analysis of your home, call 651-434-7887 or email RLGrossman@cbburnet.com
Grossman Group Real Estate
Coldwell Banker Burnet – Highland Park
Lic in MN
Why Buy or Sell a House in the Fall?
Spring is typically known as the most common time to buy or sell real estate. But with its beautiful colors, picturesque views of homes and the chill of winter coming soon behind, fall can be a wonderful time to buy or sell. Why?
1. Less Competition
“The spring market is hot,” many people will say, assuming that since most homes are on the market in the spring, that means it is the best time to list their home. However, more houses on the market can mean your home gets lost in the mix. With less competition in the fall, your house will get more attention, and command a higher price. Similarly, a buyer in the fall will find less competition from other buyers for the home of their dreams. “Fall homebuyers should consider [making] lowball offers, followed by more aggressive negotiation,” according to Time Money and Brian Davis, a real estate investor and director of education at Spark Rental. That aggressive negotiation will help both buyer and seller to meet their needs.
You will also find, in the fall season, that you are the center of attention to other providers: for instance, your loan officer, service providers, title companies, and others, meaning your needs and questions get met quickly.
2. Fall Buyers and Sellers are Serious
Real estate doesn’t happen only in the spring, it happens at all times of year. Maybe a seller had a home built over the summer and now needs to sell their current home, as Time Money writes. Buyers and sellers might be most interested in moving before the holidays and school’s winter break. For whatever reason, fall buyers and sellers are typically very motivated and serious. Says Sam Heskel, president of Nadlan Valuation, an appraisal management company in Brooklyn, NY: “that means sellers could be more open to negotiating and accepting a lower offer.” Or buyers open to offering more.
3. Fall Buyers and Sellers are Worn Out
The buyer that spent their spring (and summer) with the list of “musts” for their perfect home have now seen a plethora of houses, and are likely to be more realistic to homes with imperfections and opportunities. Likewise, sellers who set their sights and prices high early on are now most likely to have reasonable expectations and possibly even reduced prices, writes Time Money.
4. Take Advantage of Tax Breaks
According to Time Money:
First-time homebuyers, take note: Although you can’t escape paying income tax, you can make a dent in what you owe when you become a homeowner. “Property tax and mortgage interest are both deductions you can take for your whole year’s worth of income, even if you closed on your home in December,” says David Hryck, a New York, NY tax adviser, lawyer, and personal finance expert. “Any payments that are made prior to the closing of the loan are tax-deductible. This can make a serious difference in the amount you owe the government at the end of the year.”
Discuss with your loan officer the tax and financial advantages of a fall purchase.
5. Take Advantage of Year-End Sales to Outfit Your Home
Whether your home is listed for sale, or you’re a new buyer looking to buy in the fall, there are a number of year end sales to take advantage of, including (but not limited to) Black Friday and Holiday sales. According to Consumer Reports, as Time writes, appliances and kitchenware are most affordable in November.
There is an old adage that says, “the best time to buy or sell a home is when you need to.” And the best people to have on your side are the friendly and experienced team of the Grossman Group. Call us today at (651) 434-7887 or email RLGrossman@CBBurnet.Com to discuss your needs for buying, selling, or preparing for spring.
The Grossman Group
Coldwell Banker Burnet, Highland Park
Licensed in Minnesota
Photo provided by 123rf.com.
millergrossman 