Consumers: Appraisals Still Falling Short

Consumers: Appraisals Still Falling Short

Appraisals continue to lag homeowners’ price expectations, according to the latest Quicken Loans’ National Home Price Perception Index, which compares homeowners’ initial estimates and appraiser’s opinions of home values. Appraised values were 1.35 percent lower than homeowners’ expectations in August. That has narrowed from a 1.55 percent difference in July.

Many homeowners are still not understanding their home’s current value, according to the analysis. The perceptions can vary quite a bit across the country, too. For example, home values are 3 percent higher than homeowners’ estimated values in the West, while they are 3 percent lower than expected in the Midwest and Northeast.

“A 3 percent difference may seem small, but depending on the local market, it could make a significant impact on value,” according to Quicken Loans’ study. “For instance, a homeowner in Denver may have upwards of $11,000 in additional equity they can access for home improvements or loan consolidation.”

Source: Quicken Loans

YouTube’s Redesign Will Make Your Videos Look Better

YouTube’s Redesign Will Make Your Videos Look Better

Video promotion—specifically on YouTube—is an integral part of many real estate professionals’ marketing, and smartphone videos are a quick, easy way to capture shareable content for your business. But vertical videos can look lost in YouTube’s player, which is formatted for horizontal shots so it ends up with black bars on the sides. That’s about to change.

YouTube is planning an update that will allow its player to seamlessly change shape to match the video format you’ve uploaded or want to watch. The player will convert to vertical, square, or the classic horizontal automatically for a better viewing experience.

Last week, YouTube announced several new features in its pipeline, which are expected to roll out in the coming weeks. You may have already noticed a few updates to the user interface. The design is cleaner, with the goal of being more user-friendly across all devices. This means your videos will look better and be more responsive to potential clients. The platform also redesigned its logo, moving the red player icon to the left of the YouTube name.

Many of YouTube’s enhancements revolve around creating a better mobile experience and a consistent look between the desktop and mobile versions. Here are a few more new features on the 12-year-old platform that are either in place now or on their way.

• Navigation tabs have moved to the bottom of the app, including new library and account tabs for easy access to your own videos and channel.
• You can now double-tap on the left or right side of a video to fast-forward or rewind 10 seconds.
• Users can speed up and slow down the playback of a video on mobile the same way it functions on the desktop player by using the red sliding bar.
• Browse suggested videos while you’re watching a video in full screen through newly placed thumbnails at the bottom.
• You now have more control over embedded videos you use on your blog or website, including the ability to make the video start playing at any time point in the middle of a video.
• In the coming months, users will be able to swipe left to watch a previous video or swipe right to watch the next one.

Source: “A new YouTube look that works for you,” Aug. 29, 2017, YouTube Blog.

Don’t Let Sellers Get Overconfident

Don’t Let Sellers Get Overconfident

A severe inventory shortage may be allowing your clients to believe selling their homes will be quick and easy. That can lead to sellers who believe that they can do less to prep their homes for the market and that buyers will still be willing to pay top dollar. But buyers are still fairly picky, and they will be quick to pass over an unsightly or outdated home.

Lawrence Yun, chief economist at the National Association of REALTORS®, says that many buyers are getting frustrated at the poor selection of properties that don’t fit their budget or their wish list. Eric Tyson, co-author of House Selling for Dummies, agrees: “No matter the market, people aren’t going to overpay for an ugly house.”

In many cases it falls to listing agents to help sellers understand the need to be realistic on the pricing of their homes. Most homeowners view their property value higher than appraisers’ opinions, according to the latest Quicken Loans’ National Home Price Perception Index. Homeowners, on average, believe their home is worth 1.55 percent more than appraisers do.

Sharon L. Ellsworth, a real estate broker and owner of a RE/MAX Realty office, says the front door can be important in boosting the appeal on a home that otherwise lacks it. “The front door is the focal point of the house,” Ellsworth says. “If it’s attractive, people will focus on this.” Repainting the front door or adding new polished brass hardware can also make a big difference, she says. Also, freshly pruned shrubs and new greenery can help add curb appeal.

Also for sellers who aren’t seeing enough interest, a “broker’s open house” may be a way to generate more lookers. Tyson says limiting access to real estate agents from the surrounding area can be an effective sales tool. “These kinds of open houses are incredibly important,” Tyson says. “That’s because the vast, vast majority of buyers still work with agents. And if agents come through the house and like it, they’re more likely to show it to their clients.”

Source: “6 Tips for Selling a Home That Isn’t Easy on the Eyes,” Kansas City Star/Insurancenewsnet.com (Sept. 10, 2017)

A Sign That More Housing Inventory Is Coming

A Sign That More Housing Inventory Is Coming

Homeowners who have decided to stay put in their current properties may soon be ready for a move, helping to relieve stubbornly tight housing inventory. The evidence is in Fannie Mae’s latest Home Purchase Sentiment Index, in which the number of consumers who say now is a good time to sell a home neared an all-time high. The index—which is a measure of about 1,000 consumers’ attitudes toward housing—rose 1.2 points in August to a reading of 88, reflecting a year-over-year jump of 21 percentage points in the number of consumers who looked favorably on selling. The August reading is just shy of the index’s record high of 88.3, set in July.

Meanwhile, the number of consumers who say now is a good time to buy dropped 5 percentage points in August to a new survey low for the second consecutive month. The number of those who look favorably on buying is down 16 percentage points year over year, Fannie Mae reports.

“In the early stages of the economic expansion, home selling sentiment trailed home buying sentiment by a significant margin. The reverse is true today,” says Fannie Mae chief economist Doug Duncan. “The net ‘good time to sell’ share is now double the net ‘good time to buy’ share, with record-high percentages of consumers citing home prices as the primary reason for both perceptions. Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.”

Here are some additional findings from Fannie Mae’s August sentiment index reading:

• 36 percent: Consumers who say now is a good time to sell, an uptick of 8 percentage points from July.
• 18 percent: Consumers who say now is a good time to buy a home, a new survey low.
• 48 percent: Americans who say home prices will rise, up 1 percentage point month over month.
• 74 percent: Consumers who say they are not concerned about losing their job, a 1 percentage point drop in August.
• 16 percent: Americans who say their household income is significantly higher than it was 12 months ago, unchanged from July.

Source: Fannie Mae

Zero-Down Mortgage Offered for Doctors

Zero-Down Mortgage Offered for Doctors

Medical professionals may be eligible for a mortgage up to $750,000 without a down payment or private mortgage insurance needed. PhysicianLoans, an Ohio-based mortgage lender, says its “Doctor Loan” is available to medical doctors, dentists, and veterinarians.

The company lends in 18 states, including Georgia, Michigan, Minnesota, Pennsylvania, Ohio, Texas, and Wisconsin, among others.

PhysicianLoans has offered zero-down loans for doctors previously, but the lender has now increased the loan amount they’ll approve to $750,000 due to rising home prices.

“Today’s young doctors would like to both pay down their debt and buy a home,” says Tal Frank, PhysicianLoans president. “While a post-residency doctor making six figures has the cash flow for both, they do not yet have the down payment required by a traditional bank.”

The increase in maximum loan amount was needed due to accelerating home prices, Frank says.

“Doctors completing their training now have to pay more for a home than they did five years ago, which would translate to an even higher down payment with traditional banks,” Frank added. “The increase to $750,000 for zero down keeps more homes in reach for new doctors who recently completed training.”

Despite the zero-down offering, Frank says the lender isn’t worried about defaults. Frank says the Doctor Loan maintains a “near zero” delinquency rate.

Source: “PhysicianLoans Rolls Out $750,000 Mortgages With no Down Payment, for Doctors Only,” HousingWire (Sept. 1, 2017)

Myths Sellers Believe About Pricing Their Home

Myths Sellers Believe About Pricing Their Home

Many home sellers succumb to myths about home pricing that don’t match the reality of the housing market. Realtor.com® recently highlighted several of those common pricing myths, including:

You won’t always make money on the sale of a home.

Home sellers shouldn’t always assume they’ll walk away with a profit. The National Association of REALTORS® estimates home prices will increase 5 percent by the end of this year. That said, 23 markets have seen the cost of single-family homes decrease in recent months, NAR reports. Sellers’ return greatly depends on their location and how much they paid for the home when they purchased it.

A high home price will net you more in the end.

Sellers may be tempted to set a higher price to see if they can actually get it. “While the payday might sound appealing, you’re actually sacrificing your best marketing time in exchange for the remote possibility that someone will overpay for your home,” Kathleen Marks, a real estate professional with United Real Estate in Asheville, N.C., told realtor.com®.

Overpricing a home from its initial listing isn’t easily fixed by lowering the price on it, either. Buyers may presume something is wrong with the home if they see it linger on the market or have multiple price reductions.

Setting a low price initially means you won’t make as much money.

Pricing a home on the low end can actually pay off. Low-priced homes tend to prompt greater interest among buyers. That could result in a bidding war, which could increase the home’s price way past the listing price.

Sellers can add renovation costs to the price.

Just because you completed a renovation of your kitchen or outdoor deck does not mean you can recoup every dime of that investment at resale. Some renovations may help you to increase your home’s value. Sellers, however, rarely will recoup the entire cost from a renovation. Sellers, on average, see a 64 percent return on every dollar they spend on home improvements, according to realtor.com®. But the profit can drastically vary by the type of remodeling project. Read more: NAR’s Remodeling Impact Report

Source: “7 Pricing Myths to Stop Believing if You Ever Hope to Sell Your House,” realtor.com® (Sept. 7, 2017)