My Top 3️⃣ Staging Tips

Here are my top 3 staging tips. If you are thinking about selling your home these are minimum things I tell my sellers to do to get them biggest bang for their buck!!

1️⃣ Spruce Up Your Landscaping

2️⃣ Declutter Your Kitchen

3️⃣ Depersonalize Your Home

Are you thinking about selling? If so, I would love to talk and go over a staging plan for your home!

#MARCUMsold #BHHSFosterRealtors #RichmondKY #MyRichmond #HomeSellingTips #StagingHomes #BereaKY #MadisonCountyKYRealEstate

#MortgageRates #MortgageLender #BenchmarkMortgage #MARCUMsold #BHHSFosterRealtors #TrustedAdvisor #RichmondKY #BereaKY #madisoncountykyrealestate

Catch up on our past episodes of The #MARCUMsold Show!

You may have heard that changing market conditions have created a seller's market that's forcing buyers to spend a lot of money. People in many areas are experiencing housing shortages that make the seller's market strong. When you don't have enough supply to meet demand, you can expect to pay higher prices.

Changing market conditions can make it challenging to purchase real estate right now. They don't make it impossible, though. As the Fed looks to increase interest rates again, you need to work closely with a real estate agent and mortgage broker that can get you a fair deal. You won't believe how much money you save when you lower your interest rate by a small amount.

Of course, it helps to have a real estate professional searching for ways to lower your interest rate!

How Much Does Your Interest Rate Affect Home Prices?

The average home price in the United States is about $507,800. Obviously, real estate prices can differ significantly by location. For simplicity's sake, let's assume you want to buy a house that costs $500,000, and you have $100,000 for your down payment. At 20%, $100,000 should mean you don't need to pay private mortgage insurance (PMI).

You're borrowing $400,000 to purchase the home. How much will interest rates affect the full amount you pay before you own the house?

7% Interest Rate

If you get a 30-year fixed-rate mortgage with a 7% interest rate, you can expect to spend $958,035.59 plus the $100,000 you used as a down payment. This amount does not include insurance, property tax, and other expenses.

That's right. Your $500,000 house now costs nearly a million dollars. How does that happen?

Over the years, you paid a total of $558,035.59 in interest. You spent more money on interest than the actual property!

5% Interest Rate

In this scenario, everything stays the same, except you qualify for a 5% interest rate. You might not think that 2% seems like a lot. The numbers say otherwise.

With a 5% interest rate, you spend $373,023.14 on interest and a total of $773,023.14 buying the home. Lowering your interest rate by 2% saves you $185,012.45 over 30 years. Think about all of the things you can do with that much money!

3% Interest Rate

In today's real estate lending market, you will struggle to find a mortgage that only charges a 3% interest rate. It isn't impossible, but it's becoming increasingly unlikely as the Fed raises its interest rates.

Still, let's assume that you can qualify for a 3% interest rate to see how much money you would save. At 3% over 30 years, you would pay $207,109.81 in interest. The total purchase, not including your down payment, comes to $607,109.81.

Compared to a 7% mortgage, you save nearly $351,000. You save almost $166,000 compared to the 5% mortgage.

Know What You Can Control

You can control some factors easier than others when you buy a home. For example, you can probably get a lower interest rate by saving money for a larger down payment and working to improve your credit rating. In the end, your lender will choose the rate, though.

You also don't have much control over home prices. In a seller's market, you can expect to pay above the asking price.

However, you can control how much money you pay toward your mortgage each month. As long as your lender doesn't charge an early repayment penalty, you could save a lot of money by making a small additional payment each month.

By contributing an extra $100 per month toward your mortgage, you save:

• $72,851.78 on a 7% mortgage
• $41,552.74 on a 5% mortgage
• $20,087.25 on a 3% mortgage

You will also repay your loan a couple of years earlier than scheduled. It feels really good to get out of debt and own your home outright!

It's undeniable that the real estate market has been hot over the last couple of years, with low inventory across the boards and high competition among buyers. However, the market now seems to be making a shift. After three years, the inventory of homes for sale has finally increased for the first time since June 2019, with newly listed homes up 6.3% nationally compared to a year ago. 

While sellers are still listing at rates 6.4% lower than the pre-pandemic years from 2017 to 2019, the market is in the process of making major shifts. It's still a seller's market right now, but for how much longer? As a first-time homebuyer or even a seasoned homebuyer, it's important to keep up with the shifting market trends in order to secure a successful transaction. Read on to learn more about the shifting real estate market and discover how to better navigate these changes. 

What Does the Shifting Market Look Like?

In May 2022, Realtor.com released some housing data that revealed some major turning points in the market. In terms of inventory, the data shows that the number of active home listings entering the market is higher than it's been since 2019. Nationally, the inventory of active home listings has increased by 8% over the past year, amounting to 38,000 more active home listings compared to May 2021. 

While having more homes on the market is good for buyers, homes are still spending less time on the market compared to last year, and home prices are still rising. The market is definitely shifting, but not necessarily in a buyer's favor just yet. Interest rates are continuing to rise. These rising interest rates coupled with all-time high listing prices have increased the cost of financing 80% of the typical home by 48% compared to a year ago. 

In addition to rising prices, newly listed homes are larger. In May 2022, the share of newly listed homes less than 1,750 square feet declined from around 47% to around 45%. In comparison, the share of newly listed homes more than 1,750 square feet increased from around 52% to around 54%. This may cause frustration for first-time homebuyers because while more homes are being listed on the market, many are larger and more expensive. For example, the national median listing price for active listings in May 2022 was $447,000. This is up 17.6% compared to May 2021 and up 35.4% compared to May 2020. 

Tips for Navigating Market Shifts as a Buyer

In addition to partnering with a local, expert real estate agent, utilizing the following tips can help first-time homebuyers better navigate continued market shifts. 

Know Your Budget

With rising mortgage rates and increased home prices, it's essential to do your homework and plan what you can truly afford in advance. In a seller's market, you should be prepared to pay the asking price. However, it is essential that you make buying decisions based on your finances and not on your emotions. Just because you can financially afford to pay over the market value of a home doesn't mean that you should or that it's in your best interest over the long term. 

Get Preapproval From a Trusted Lender

Along with having a thorough understanding of your budget before buying a home, you should obtain a preapproved loan with a trusted lender. Getting a preapproved loan signals sellers that you are a serious buyer, and it may even gain you access to earlier showings ahead of other buyers. 

Be Flexible and Patient 

A final tip for first-time homebuyers navigating today's market shifts is to be flexible and patient. There will undoubtedly be ups and down on your homebuying journey, especially with today's market and continued market shifts. While there will be ups and downs, just remember that buying a home is still within reach, and when in doubt, always reach out to a local, expert real estate agent for help. 

Tips for Navigating Market Shifts as a Seller

While the market is shifting, it's still an ideal time for sellers. The following tips will help you get the most out of your home selling experience.

Work With a Trusted Local Real Estate Agent 

Even during a seller's market, it's important to work with a local expert real estate agent when listing your house. A local real estate agent will be able to give you the most up-to-date information on the market, navigate stressful contracts, and help you get the best price for your property.  

Have a Pre-Inspection Before Putting Your Home on the Market 

In addition to working closely with a local real estate agent, it would be to your benefit to have a pre-inspection completed on your home before you list it on the market. Having a pre-inspection can save you a ton of time, headaches, or delays down the road. 

The Wild Wild West housing market had many people in panic mode — worrying that if they didn't act now, they may never be able to buy a house amid record-high housing prices and increasing interest rates. With the changing market conditions of today, hopeful homebuyers may be in a better position to act. It’s important to remember, though, that no matter what the market is doing, buying a home is something you shouldn't rush into. 

A mortgage is one of the biggest — and most important — responsibilities you’ll have in your life. Entering into home ownership before you’re ready could have negative impacts on your financial wellbeing. In this post, we’ll take you through some steps to help you decide whether or not you’re actually ready to purchase a home.

Ready or Not? How To Determine if You’re Ready To Buy a Home

In today’s changing market conditions, homebuyers must ensure they are in a good financial position before buying a home. Here are a few top things to consider.

You Have Little to No Debt

While there’s no hard rule that you have to be out of debt to buy a house, the lower your debt, the higher your pre-approval and the lower your interest rate — a homebuyer’s dream formula. In addition to these perks of having little to no debt, you should have more dispensable income to spend on your mortgage payment, repairs, furnishings, and anything else your heart desires.

Your Savings Account Is Robust

When buying a home and going into owning a home, expenses are a plenty and seem to pop out of nowhere — any homeowner knows this. From the down payment to closing costs to real estate taxes — and that’s before you even move in! Then, you have to be prepared for furnishing your home, replacing appliances, the AC going out, and any other emergencies that come up. 

It’s imperative — especially amid today’s changing market conditions and potential looming recession — to give yourself a healthy safety net when it comes to all of the bills and expenses that come with home ownership. Some experts recommend having six months of expenses set aside in your savings account, while others recommend having up to a year’s worth. 

One thing’s for sure, the more money you have in your savings account, the less stressful all of the expenses that come with homeownership will be. So, make sure your savings account is up to par before you sign on the dotted line for your new home.

You Have a Steady Job

Of course, no job comes with a 100% guarantee of permanent employment. But, the longer you’ve held a position, the more likely your job will be viewed as steady enough to get your mortgage approved. One big no-no during the home buying process is switching jobs, or, God forbid, up and quitting your job.

Changing jobs can impact your loan approval, which means you may lose the approval on your dream, or your monthly payment could increase to something that’s out of your ability to pay comfortably.

Also, having a steady job will ease the burden of making your mortgage payment because you’ll have an idea of what you can expect on each paycheck and whether you can realistically afford your mortgage.

You Can Realistically Afford the Monthly Payment

We’ve all been there, scrolling through Zillow, and we find the perfect house — and it even has a pool! We use the website’s payment calculator, and much to our surprise, the monthly payment seems completely manageable!

Not so fast. It’s important to remember these online payment calculators often don’t consider all of the expenses associated with a mortgage payment. They also default to you providing a full 20% down payment. In reality, there are many more factors that will go into your house payment, including:

• Property taxes — which can increase each year (sometimes pretty significantly).
• Homeowner’s insurance.
• Homeowner’s association fees.
• City taxes and fees.
• Water, sewage, and garbage.
• Private mortgage insurance (PMI) if you’re unable to provide the full down payment.

These added charges will likely add hundreds of dollars to your monthly payment, so it’s critically important that you don’t forget to factor these in to get a full picture of what you’ll be paying each month. Then you can ask yourself whether or not you can realistically afford it.

If you’re thinking about selling your home, it's important to have a good understanding of what’s going on in the Madison County market.

Knowing the most important data such as the average sales price, number of homes sold, and days on market will better prepare you to sell your home.

Our market report showcases everything you need to know about local real estate trends.

178

New Listings

190

Active Listings

136

Under Contract

143

Closed Sales

Homes Sold

97.7%

Sale-to-List Price

$263,868

Average Sales Price

1.4

Months of Supply

15

Average Days on Market

$137

Average Price per Square Foot

If you’re thinking about selling your home, it's important to have a good understanding of what’s going on in the Madison County market.

Knowing the most important data such as the average sales price, number of homes sold, and days on market will better prepare you to sell your home.

Our market report showcases everything you need to know about local real estate trends.

176

New Listings

156

Active Listings

154

Under Contract

128

Closed Sales

Homes Sold

100%

Sale-to-List Price

$272,899

Average Sales Price

0.9

Months of Supply

30

Average Days on Market

$140

Average Price per Square Foot

The housing market was red hot for months. Mortgage rates were low, and the competition for homes was fierce, with many people paying far above the asking price. Buyers were snapping up homes within hours of being listed, leaving many frustrated in their search.

Usually, low-interest rates signal that it’s prime time to buy, but in 2021, the rates exacerbated the intense competition, and other factors made the housing market tough, particularly for millennial buyers. Many in this group have been waiting to purchase their own home for years,  only to be delayed by factors such as savings, low housing inventory, and COVID. 

Some of these buyers may find relief in the current changing market conditions. Rising interest rates, a larger level of inventory, and a slower sales pace mean that this summer may be a good time to finally buy. 

Interest Rates

Mortgage interest rates were quite low over the past two years, meaning buyers who could close on a house saved a significant amount of money, both in monthly mortgage payments and over the length of the loan. These low rates led to the incredibly competitive rush to buy that occurred in 2020 and 2021. 

But since the last quarter of 2021, mortgage rates have risen quickly. In May 2022, the average rate for a 30-year, fixed-rate mortgage was 5.25%. For the two previous years, that rate was around 3%. Today, that rate is up to over 6%. Rising interest rates may discourage some buyers, but in reality, the rates are still historically low. And the fact that the rates are turning off some prospective buyers means those in the market to buy have a better chance of securing the homes they really want.

Home Inventory

In the last two years of this sizzling hot real estate market, the low housing inventory made purchasing a home difficult for many prospective buyers. More people could afford to buy due to the low rates, but finding a home and winning the bidding war for it was quite difficult. Many listed homes received multiple offers in a matter of minutes. It’s been a clear seller’s market. They had most of the power and were able to set conditions that were favorable to them. Potential buyers were routinely offering amounts way above the asking price, which made it impossible for those on a stricter budget to put in winning offers.

Fortunately, home inventory is slowly rising, so more potential buyers will be able to find the homes that they want and actually close on them. You shouldn't have to make a snap decision about making an offer or outbid four other anxious buyers either.

Price Cuts

Since experts agree that the housing market is slowing down, you can expect to see some price cuts in homes rather than rapidly increasing prices. In 2021, home prices rose by 18.8%. It was a strong seller’s market, and buyers had to pay the price if they wanted to secure a home.

Since interest rates and home inventory are now rising, sellers are losing some of their power. In fact, the percentage of price cuts in May 2022 was 10.5 in contrast to 6.2 in May 2021. 

Is it now a buyer’s market? Not exactly. Prices are still high, and the situation remains competitive. But for buyers, especially millennials, who have been edged out of the market for years, now may be a good time to re-enter the market and try to purchase your own home. 

The vast majority of people hire a real estate agent to help them sell their homes. In fact, 92% of homes sold in the U.S.in 2021 were sold using an agent or a broker. Of course, most people know how invaluable and helpful a real estate agent is during the selling process. But most people don't realize that real estate agents are extremely helpful to you before, during, and after the sale goes through.

Want to learn how to maximize the benefits of working with an agent? Check out these often-forgotten ways we can help throughout the entire home-selling process — from point A to point Z.

Before the Sale of a Home

Before selling your home, your real estate agent can help you determine a listing price. Based on an assessment of the market and competition, your agent can help you find a reasonable and competitive price to offer your home at. Correctly pricing a home is one of the most critical things in producing promising results for the sale of your home — getting it to sell fast and for a price that makes you as much money as possible. 

In addition to pricing your home correctly, an agent can help you stage your home for prospective buyers looking at the house. Staging is important for buyers to visualize the property as their future home. Research has consistently shown that well-staged homes sell faster. Ask your real estate agent for suggestions to help stage your home well. They often have connections to other helpful resources, including professional stagers.

During the Sale of a Home

Once you’ve listed your home for sale, your real estate agent's talent gets the chance to shine by marketing your home and attracting as many potential buyers as possible. Your agent's role is vital in promoting the house on the MLS (Multiple Listing Service). In addition, they can list it on their website. Your agent should help promote the property for sale through personal connections, blogs, social media sites, and many other avenues and relationships they've made through the years.

An essential component of effective marketing of your home is photos. Photos often attract a buyer to want to learn more or run the other way! Bad pictures can seriously hurt your chances of selling your home. Be sure to select an agent experienced in many avenues of helping you market your home, including one who has connections with top-notch photographers who specialize in real estate listings.

An experienced real estate agent can also help you find a qualified buyer. With years of experience comes the ability to vet candidates properly. Your agent should be helping you look through prospects and offers, answer any questions you may have throughout the process, and choose the best candidate and offer.

After the Sale of a Home

Congrats! Your home has sold! If you’re asking yourself, “now what?” you’re not alone. Your real estate agent still has a job to do, even after you’ve identified a buyer and accepted an offer. Your agent can help you negotiate any terms with the buyer. For example, if the buyer asks for an allowance to replace the roof, your real estate agent will help you negotiate a price that doesn't drain your wallet.

Other things can get complicated when selling a home, such as closing dates or contingencies. Many sellers often think that the agent's job is done once a buyer has been found. However, this is simply not true! An agent has an important role right up until the sale is finalized. Other things they should help you with after the offer has been accepted are scheduling the inspection along with any necessary repairs and scheduling the appraisal.

The summer months are the ideal time to take stock of your home and spend some quality time with friends and family. Of course, this also means that now is a great time to begin work on home improvement projects that will bring value to your home. Now that spring cleaning season is coming to an end you're left with a fresh space that you probably have a few ideas about how to spruce up. Creating a home that feels comfortable and welcoming often increases home values; it also provides you with some much-needed time and space to relax and unwind.

Home improvement projects don't have to be expensive or time-consuming to be beneficial. In fact, many of the simplest home improvement projects can also have the most positive impact on your home, whether you want to sell your home or just have a place for summer fun. Here are some of the best home improvement projects for the summer that will have a lasting impact on your home and its value.

Spruce Up Your Kitchen or Bathrooms 

The kitchen is often the heart of the home and gets a ton of use over the years, along with the bathrooms. Both of those areas tend to need upkeep and updating every so often, so if you're thinking of completing a few projects around the house this summer, the kitchen and bathrooms may be great places to start. 

Simple updates can go a long way here — think new fixtures, cabinet pulls, or refinishing cabinets. If you're in need of a more significant update, you can consider getting new cabinets, tiling the floors in the bathroom, or investing in new, energy-efficient appliances. 

Power Wash Your Home and Walkways

Power washing your home and walkways can be a great way to clean up some of the dust and dirt that accumulates on even the cleanest of homes. While this may not sound particularly valuable on its own, it can be coupled with other summer home improvement projects to make it even more effective. Power washing your home, for example, is often a great first step when working on exterior home maintenance projects, such as repairing your gutters or installing new siding.

Power washing your walkways can also be a great way to prepare them for summer guests. Whether you plan to have large crowds of people over for an outdoor barbecue or just a few close friends, power washing your walkways is a great way to give your walkway a fresh, clean appearance that will feel inviting and comfortable.

Build a Patio Area or Indoor Relaxation Space

A patio area is a beautiful place for relaxing with friends and family. Patio areas can be practical and attractive additions for the summer that can transform your home into a more welcoming environment. In addition, patio areas can also be surprisingly easy and valuable home improvements. Patio areas can be attractive spaces year-round that can increase your home value and add practicality to your home. You can start with a simple concrete slab patio or use bricks as the foundation of your patio.

If you're dodging those hot summer days and sticking to some time indoors, create a place to relax inside. Think of a theater room with comfy chairs or investing in a new couch that's perfect for movie nights. If some of your furniture could use an upgrade, replacing a few pieces could be made more affordable with those summer sales! Finishing an unused space in your home with something like a workout space or cozy reading nook can also help potential buyers visualize how to use the space (and you get to enjoy it too!).

Restain Decks and Outdoor Furniture

Restaining your deck and outdoor furniture, like your patio or backyard furniture, is a great way to add both a protective and decorative layer to these items. Many homeowners choose to restain their outdoor furniture because it is a simple summer home improvement project that can provide many positive benefits to your outdoor furniture. Restaining your outdoor furniture can help protect your furniture from UV rays that are harmful to materials like wood, which means your outdoor furniture will look better for longer.

Use Your Gardening Skills

Gardening is a great summer home improvement project for those who enjoy doing it. Whether you prefer to grow herbs or flowers or simply keep your lawn overseeded, adding a home gardening project to your summer home maintenance schedule will help to add value to your home. Homeowners who take advantage of their gardening skills can choose from several creative home gardening projects with far-lasting benefits for your home. Gardening projects can be a great way to improve your home's curb appeal and keep it looking beautiful all summer long.

Give Your Home a Fresh Coat of Paint 

Painting your home (interior or exterior) can provide a fresh, new look to your home. If you're painting the outside, it's also a fabulous way to spruce up your home's curb appeal for relatively little money. There are many great reasons to consider home painting this summer, including that it can help your home maintain its value, give it a fresh, clean look, and help begin the staging process. Along with raising the value of your home and allowing you to experiment with a new color scheme.

If you live in a neighborhood with an HOA, ensure that the exterior paint color you choose is approved. If you're painting the interior take a look at recent lists of popular colors, but plan to keep it fairly neutral overall to ensure it appeals to potential buyers.

📈 Let's Talk Interest Rates With Susan Hatfield

Today with are going to talk interest rates with my trusted go to lender Susan Hatfield with Benchmark Mortgage. So here is the question... interest rates, what is happening with them, what is going to happen and what does it mean for our clients? So rates have gone up and we are taking it one day at a time. It does affect you and your mortgage payment each month. 

👀 Watch the video and let Susan breakdown the increased mortgage rates in terms that make sense and are not so scary. It might be as easy as just skipping a few McDonalds trips 😜

#MortgageRates #MortgageLender #BenchmarkMortgage #MARCUMsold #BHHSFosterRealtors #TrustedAdvisor #RichmondKY #BereaKY #madisoncountykyrealestate

Catch up on our past episodes of The #MARCUMsold Show!