Buyer Compromises May Be Worth It

Buyer Compromises May Be Worth It

Your home shoppers may have a long wish list, but when it comes to finding a home – particularly under the tight inventories prevalent in so many markets right now – the word “compromise” may need to enter the conversation.

Dana Gonzalez, a real estate professional in Denville, N.J., told realtor.com® that buyers need to expect to compromise on their wish list, especially in at least one of three categories: price, location, and size/style/upgrades. “If you get 80 percent of what you want, you’re lucky,” Gonzalez says.

The following are a few compromises that home buyers may find are worth making too:

Location

“While they might want to find a home that is within walking distance to the downtown area with shops, restaurants, and public transportation, buyers do not want to compromise on their living space,” Suzy Minken, a real estate professional in Short Hills, N.J., told realtor.com®. “After all, they live in the home. Sometimes these homes are too small to fit their lifestyle needs, or the larger in-town homes are simply above their price range. So the dream of a walk-to-town location very often will get removed from a buyer’s must-have list.”

Yard size

Those visions of a sweeping landscape or the outdoor pool with the hot tub may have to go once buyers see what’s available and the price. “When it comes to describing their dream home, buyers frequently say they want a large backyard,” Minken says. “When I ask my home buyers to qualify what they mean by a ‘large’ backyard, the answer is almost universally the same: ‘large enough to fit a swingset.’ … So that means they have more homes to choose from, especially when inventory is low.”

Architecture

Home buyers may say they want a Craftsman bungalow but the asking price may be unrealistic for their budget. “Whether it be the architectural style of the house or type of kitchen counters, those things are one of the first things mentioned when clients tell me what they want,” says Amber Dolle, a real estate professional Sherman Oaks, Calif. “But when compromises have to be made and they’ve had time to look at homes for a bit and consider their budget, the home’s aesthetics usually are the thing they choose to overlook.”

Source: “5 Compromises Worth Making When Buying a Home,” realtor.com® (March 3, 2016)

5 Inspection Problems Sellers Can Avoid

Inspection Problems Sellers Can Avoid

The home inspection is perhaps the rockiest phase of a home purchase because the issues that arise could scare buyers off. But there are typical problems that sellers can be proactive about repairing in order to save the deal. Realtor.com® recently highlighted five of these problems and what sellers can do about them:

1. Dank basement: Seepage into the basement could lead to flooding. Small cracks or a foundation wall could cause groundwater to enter in. A basement waterproofing contractor can provide a quote on how to quickly repair any minor problems.

2. Faulty wiring: Home inspector Reggie Marston told realtor.com® that he will often find “ungrounded fixtures, spliced wires not terminated in a proper electric box, receptacles wired backward, and improper breakers in the electric service panel.” An electrician can help sort out and resolve any potential electrical issues.

3. Leaky roofs: A leaky roof can eventually cause mold to form. Even small leaks can become more troublesome if they’re not repaired.

4. Amateur workmanship: DIY jobs by the home owner can cause lots of problems, too. “With plumbing, the owners will install the toilet but don’t tighten it securely to the floor,” says Marston. “I’ll find a toilet’s so loose that I counsel my client it should have a seat belt installed so nobody falls off!” For home owners who have tackled DIY projects, they may want to hire a professional to double-check their work prior to putting the home on the market.

5. Poor maintenance: Home owners who didn’t do proper upkeep of the home may find that several issues surface during a home inspection. “All components in a residence require some type of maintenance,” Marston told realtor.com®. “Water heaters as well as heating and air-conditioning systems should be serviced yearly. Caulk tubs and showers to prevent water leakage. Frequently remove and clean stove exhaust fan filters.”

Source: “How to Conquer the Huge Problems Found During Home Inspections,” realtor.com® (March 8, 2016)

Real Estate’s BFF: A Dog?

Real Estate’s BFF: A Dog?

A five-year-old Shih Tzu Cavalier cross named Tiffany is becoming a top model in real estate photos in Australia. The dog’s owner Tracey Ashley, a real estate pro with RE/MAX United Vision in Carina, Queensland, is using the small dog throughout the photos she shoots of her listings to appeal to dog-loving home shoppers.

During her own house-hunt two years ago, Ashley says “I found it very hard to work out which properties were pet-friendly or weren’t. I thought, wouldn’t it make it easier for buyers if I could put Tiffany in my properties that are pet-friendly.”

Ashley says she received “nearly double” the amount of page views of properties that her dog Tiffany appears in compared to those where she doesn’t. So she’s now letting every one of her sellers choose if they want the dog to appear in the listing photos.

“Sellers are ringing up and saying, we’ve seen your photos with Tiffany, can we get you to sell our house with her in it,” Ashley told Mashable.com. “It’s kinda snowballed … we even get buyers asking us if Tiffany has been in other listings.”

And just so potential buyers aren’t left wondering the whereabouts, Ashley says she’ll bring Tiffany to open houses to greet buyers too.

Tiffany – who Ashley markets as the “Pink Property Pooch” – has her own Facebook page too with property listings.

Source: “This Adorable Dog Is Helping Sell Real Estate in Australia,” Mashable.com (March 7, 2016)

Signs of a Bad Moving Company

Signs of a Bad Moving Company

About 16.5 million households – or 38.7 million Americans – move annually. But Americans need to carefully screen those who help them move to make sure all goes smoothly in relocating their belongings.

U.S. News & World Report recently highlighted these three warning signs when choosing a moving company:

The price is significantly lower than competitors.

Don’t just go with the cheapest quote. You may want a deal, but carefully consider what’s behind that lower-priced quote from a moving company — that could be 20 to 30 percent lower than any other companies’ offers. “While finding an affordable mover doesn’t mean you’re about to get scammed, if you feel like you’ve landed an unbelievable deal, it probably is unbelievable,” U.S. News & World Report notes. The quote may be lower, but some consumers later complain that prices mysteriously triple on moving day, items are stolen or missing, or they find lots of damage.

The required deposit is high.

Movers may ask for a deposit fee, but that fee shouldn’t be above 10 percent of the job cost, says T.J. Peterson, social media coordinator for Oz Moving and Storage, based in New York. Oz Moving and Storage, as comparison, charges a flat $50 deposit. “It’s not unreasonable for a mover to ask for a deposit of $100 or $200 to cover their costs if you change your mind, but if a mover wants more upfront – like 25 percent of the cost of the move – don’t pay it,” warns Nancy Conner in her book, Buying a Home: The Missing Manual.

There’s very little information about the company.

Finding a moving company in the Yellow Pages may give you some assurance that it must be legitimate since it’s advertising there, but don’t assume by just an ad. To check if the company is reputable, ask for itsDepartment of Transportation numbers. “If a company cannot prove [it is] registered with the state and United States Department of Transportation, that’s a warning sign,” Peterson told U.S. News & World Report. Also, consumers should be leery of any company that doesn’t have any Better Business Bureau profile or no reviews.

“A few hiccups for any reputable company is not a warning sign,” Peterson says. “It is an inevitable side effect of being in business.” But nothing about the company should be more of a warning sign.

Source: “3 Signs of a Bad Moving Company,” U.S. News & World Report (Feb. 26, 2016)

CFPB Looks to Expand ‘Rural’ Designated Areas

CFPB Looks to Expand ‘Rural’ Designated Areas

The Consumer Financial Protection Bureau announced that it is launching a new application process that could add more “rural” areas under its federal consumer financial law for mortgage lending. The application process will start March 31.

The agency will accept applications for areas outside rural counties or census blocks to be considered as rural. If eligible, these areas may be suitable for certain exemptions and provisions from certain mortgage lenders.

“This step will allow the Bureau to consider whether there are smaller institutions that merit a designation as ‘rural’ lenders but do not qualify under current guidelines,” says Richard Cordray, CFPB’s director. “The Bureau is taking quick action to fulfill out responsibility to Congress and implement the law.”

To request a rural designation, applicants will be required to identify the area and provide information to help CFPB evaluate the application under the Helping Expand Lending Practices in Rural Communities (HELP) Act. The application process is open until Dec. 4, 2017.

View CFPB’s amendment in its entirety at its website.

Source: Consumer Financial Protection Bureau

Single Females Are a Growing Market Force

Single Females Are a Growing Market Force

Since the early 1990s, single women have outnumbered their male counterparts, snatching up real estate at nearly double the rate, according to the National Association of REALTORS®. But this year they’re on a roll, and experts don’t expect that to stop anytime soon.

Single women accounted for 15 percent of all home buyers—the second largest segment of home buyers behind married couples, according to NAR’s 2015 Profile of Home Buyers and Sellers. Many experts predict their numbers will continue this increase in coming years, particularly as their average incomes have significantly risen over the last few years.

The median age of single female home buyers is 50, according to NAR. The majority are drawn to single-family homes with three bedrooms and two bathrooms. Location matters, too. “They often want to buy to be close to friends or family,” says Jessica Lautz, NAR’s managing director of survey research and communications.

Mary MacDiarmid, a broker with @properties in Chicago, told The Chicago Tribune she’s worked with several single women purchasing condos. She says about a decade ago, this type of clientele routinely brought their parents to showings. Now, she says they do it on their own: “They’re not looking for someone else’s approval.”

Source: “2016 Home Buying: All About the Single Ladies?” The Kansas City Star (Feb. 19, 2016) and “Single Women Are Big Homebuyers in Chicago,” Chicago Tribune (Feb. 28, 2016)