Selling Your Home

If you're a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of selling it. A short-term rental (STR) is typically offered as an alternative to a hotel, and they're an investment that's gained popularity in recent years. According to a Harris Poll survey, 28% of homeowners have considered using a rental service to temporarily rent out their home for additional income.

Owning a short-term rental can be a tempting idea, but you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.

A Short-Term Rental Comes with Responsibilities

Successfully owning and renting a house takes work. Think through your ability to make that commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts have to meet, and it takes a lot of work. A recent article from Bankrate explains:

Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable...

At first glance, the increase in housing supply compared to last year may not sound like good news for prospective sellers, but it actually gives you two key opportunities in today's housing market.

An article from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you'll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate, we're roughly 35% below the housing supply we had at that time.

...

This is an excellent question  that local homeowners have been asking me with increased frequency. There has always been a seasonality to our local real estate market and Spring has typically been the best time to list a home for sale—at least in the years before the pandemic-fueled housing boom.

Historically, Spring has been a popular time to sell since buyers tend to come out of winter hibernation and hit the market in droves. Improved weather, combined with school schedules and the absence of major holidays (which inhibit most people from moving due to family obligations), generally means a strong buyer pool which can be advantageous to sellers.  

That said, the pandemic has thrown a wrench into the traditional seasonality of the market and the bigger factor we see playing into timing the market right now is inventory. The reason why inventory  should play a factor into your consideration of when to list your home for sale is simply a matter of economics. When there are too many qualified buyers chasing too few homes available for sale, it means home prices will continue to rise as long as interest rates (or inventory) don’t get too high.

Interest Rates & Buyer Demand

Mortgage rates remain at historic lows and buyers benefit from these low rates since it gives them more buying power and keeps their monthly housing payment lower. The opposite is also true—the higher a buyer’s mortgage interest rate, the higher their...

Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.

Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest Existing Home Sales Report which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there's one big challenge.

Inventory Is at an All-Time Low

Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months' supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say:

The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low.

Earlier this month, realtor.com released their inventory data for January. It helps confirm this point. Here's a graph comparing inventory levels for January over the last six years:

...

Are you thinking about selling your house right now, but you're not sure you'll have the time to do so as the holidays draw near? If so, consider this: even as the holiday season approaches, there are plenty of buyers out there, and they really want your house. Here's why selling this winter is a win for you.

Today's buyers are still dealing with a limited number of homes for sale. Thanks to continued low inventory, those buyers are competing with one another for their dream home. And when that happens, if your house is one of the few on the market, it will rise to the top of the pool – and it will be worth it.

According to the latest data from the National Association of Realtors (NAR), the average seller received 3.7 offers on their house in September. For a view into what's happening at the state level, take a look at the map below:...

Some Highlights

• If you're a homeowner, today's rising equity is great news. On average, homeowners have gained $51,500 in equity since this time last year.
• Whether it's funding an education, fueling your next move, or starting a business, your home equity is a great tool you can use to power your dreams.
• Ready to sell? Let's connect to talk about how you can take advantage of your rising equity to reach your goals.

Contact the Marin Modern Team, your Marin County real estate connection, for assistance buying or selling a home in Marin County California.

If you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate sellers’ market we’re in today won’t last forever. If you're thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.

1. Your House Will Likely Sell Quickly

According to the Realtors Confidence Index released by the National Association of Realtors (NAR), homes continue to sell quickly – on average, they’re selling in just 17 days. As a seller, that’s great news for you.

Average days on market is a strong indicator of buyer demand. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.

2. Buyers Are Willing To Compete for Your House

In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers...

Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.

Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains:

Overall, the index's monthly increase was driven largely by a substantial jump in the share of consumers reporting that it's a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.

Normally, spring is the busiest season in the housing market – the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say:

We will pay close attention to see if this...

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

The number one reason long-time searchers haven't made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers.

In...

The number of houses for sale today is significantly lower than the high buyer activity in the current housing market. According to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

“There is no shortage of hopeful, potential buyers, but inventory is historically low.”

When the demand for homes is higher than what's available for sale, it's a great time for homeowners to sell their house. Here are three ways low inventory can help you win if you're ready to make a move this fall.

1. Higher Prices

With so many more buyers in the market than homes available for sale, homebuyers are frequently entering into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this can definitely work to your advantage, potentially netting you more for your house when you close the deal.

2. Greater Return on Your Investment

Rising prices mean homes are also gaining value, which drives an increase in the equity you have in your home. In the latest ...

There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you're considering selling on your own, known in the industry as a For Sale by Owner (FSBO), it's critical to consider the following:

1. Your Safety Is a Priority

Your family's safety should always come first, and that's more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings but your family's health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.

2. A Powerful Online Strategy Is a Must to Attract a Buyer

Recent studies from NAR have shown that, even before COVID-19, the first step...

Every month, the National Association of Realtors (NAR) releases their Seller Traffic Index as a part of their Realtors Confidence Index. In the latest release, NAR reported that homeowners have been reluctant to sell their houses. This is reflected when broken down by state. Only 11 states have a stable level of seller traffic compared to the remainder of the country, which came in with a weak rating.

As we can see in the following table, the number of people who moved last year is half of what the rate was in the 1980s.

This...

It is common knowledge that a great number of homes sell during the spring buying season. For that reason, many homeowners hold off putting their homes on the market until then. The question is whether or not that is a good strategy this year.

The other listings that come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market during this season in comparison to the rest of the year? The National Association of Realtors (NAR) recently revealed the months during which most people listed their homes for sale in 2018. This graphic shows the results:

The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their...

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

...

As we approach the end of the year, many homeowners find themselves asking the question, “If we’re currently in a strong real estate market, why won’t my house sell?”

Below are the 5 most common reasons why a listing contract will expire:

1. The Price

Sometimes when the market is hot, homeowners attempt to set their listing price higher. Their hope is that a motivated buyer will be willing to pay any price for a house in their desired neighborhood! Sellers must remember, though, that in today’s market a house must be sold twice; first to the buyer and then to their bank.

A buyer can agree to pay the homeowner’s asking price, but after the bank conducts their appraisal, the price might need to be adjusted. The bank will only give the buyer a mortgage for the value of determined in the appraisal.

Sellers must also keep in mind that today’s homebuyers are well-educated. Before they look to buy a house, they have already seen many houses online. They’ve done their research on the neighborhoods they are interested in, including information on the school districts in the area.

They will know if your house seems overpriced and will not waste their time considering it. This is why it’s so important to make sure that your ...

The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that home sales declined 0.6% to a seasonally adjusted annual rate of 5.38 million in June from 5.41 million in May, and are 2.2% below a year ago. Some may look at these numbers and think that now is a bad time to sell their house, but in fact, the opposite is true.

The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are out in the market looking for their dream homes! In fact, the inventory of homes for sale had fallen year-over-year for 36 consecutive months before posting a modest 0.5% gain last month and has had an upward impact on home prices.

NAR’s Chief Economist Lawrence Yun had this to say,

“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels. Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

The few houses that are on the market are selling fast! According...

Some Highlights:

• The National Association of Realtors surveyed their members & released the findings of their Profile of Home Staging.
• 62% of seller’s agents say that staging a home decreases the amount of time a home spends on the market.
• 50% of staged homes saw a 1-10% increase in dollar-value offers from buyers.
• 77% of buyer’s agents said staging made it easier for buyers to visualize the home as their own.
• The top rooms to stage in order to attract more buyers are the living room, master bedroom, kitchen, and dining room.

Contact the Marin Modern Team, your Marin County real estate connection, for assistance buying or selling a home in Marin County California.

When selling a home, owning a pet can make it more difficult than it would be without one, but it isn’t impossible. While some people may recommend getting rid of pets when selling a home, no one should feel like they’re forced to kick their furry friends to the curb just because other people may not like them. Here are four strategies pet owners can use to help sell their home that don’t resort to parting ways with the most important part of the family.

1. Temporarily Relocate Pets During Showings

Having pets at home during a showing can be dangerous for the animal. Not only can they be exposed to people or children who don’t know how to interact with animals, but doors can accidentally be left open for them to get out and get lost. To avoid this, consider taking pets like dogs and cats to a kennel for a day so they’ll be somewhere safe. Or, if this isn’t an option, homeowners may also try asking friends or neighbors if they can watch over the pet until after the showings are over.

2. Hide the Pet’s things

When showing a home, it can be a good idea to go beyond just temporarily removing the pet from the home and also take some time to hide their things like food and water bowls, beds, and toys. This can be helpful because some buyers may think a home with pets is inherently damaged or flawed, even...

Selling a home without an agent might seem like a great way to save money. However, it has the potential to doom a sale from the start, or at least generate a lot of extra work for the seller. Here's what people need to know about for sale by owner (FSBO) home sales.

1. Selling Paperwork Is Complicated

Anyone who has gone through a home purchase knows that there is a ton of paperwork. Generally, it is the agent's job to identify the documents needed (which vary by state and the details of the home), help the seller fill them out correctly, and then send them to the buyer's agent for review and signature. Sellers who have no representative must either rely on their own savvy to march through the process and hope that they do not lose the advantage, or pay a lawyer to help them instead.

2. Marketing a Home Requires a Skilled Eye

Like many other business transactions, marketing a home for sale requires a complete package that is attractive to buyers. There are many aspects of the initial listing of the home that may fall beyond sellers' skill and knowledge. Setting the right price is paramount. Homes that are listed too high will languish on the market. Properties listed far too low result in a poorer investment for the seller, and this is common for FSBO. On their own, sellers have to figure out what are the best ways to stage the home for sale, and entice buyers to request a showing for a ...