Tripp's Take on Real Estate: Episode 55
Happy 1st Tuesday in December. We've made it through Thanksgiving dinner, Black Friday and Cyber Monday deals. Yea our wallets are shot, but we got 50% of those cool, fuzzy slippers. Win!
As we come to the end of the year, and start looking back at what we did or didn’t do, and start to plan for the next year, it’s important that we take time to take care of ourselves and our loved ones. Lots of hustle and bustle going on…but I’ll say that we need to do more slowing down and chillaxing.
We still have a number of weeks left in the year to finish strong…but our work is never truly done. So let’s keep at it and look at a couple real estate questions, get a mortgage rate update and then I have a personal plea for you at the end (completely unrelated to real estate. Shocking, I know!
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OK, let’s get started.
Considering selling? Here are three top questions I’ll ask and answer (for you)
This week I’ll deal with several top questions from a seller’s perspective…and then deal with top questions from a buyer’s angle next week.
I’ve been reading so many headlines and articles recently about the real estate market. Most of them seem as if they were penned by A.I. whose knowledge base runs up to 2008. I just don’t agree with the naysayers who crow about market crashes and coming price declines. There’s just not evidence and fact that backs the headlines up.
Either way, for the person who needs to sell, despite a rosy or gloom outlook, these questions are relevant.
1. Is now a good time to sell?
I briefly covered this a little more extensively last week, so I’d encourage you to go back and review.
The good news is that there’s a shortage of good, quality inventory. Note: if your home looks like it should be demolished, there’s a great sales market for that too. Just don’t have expectations on a sales price for your home that a move in ready home would provide. Your expectations need to match the deliverable.
Your home can sell now. Your home can sell in the spring. There will be a difference in price between the two seasons, but how bad is your need to move? Only you can answer that.
2. Should I get a home inspection done before listing the home?
This is a question sellers would benefit from if only agents would recommend them or the seller actually thought about it.
Me, I want to know about any potential problems before they become a point of negotiation.
So I would recommend you strongly considering a pre-listing home inspection a month before you go on the market. That gives you time to address pain points. It also allows you to show potential buyers that you identified areas that needed to be addressed - and fixed them. Talk about confidence for a buyer who may not be able to get a home inspection contingency because of multiple offers.
The seller taking steps to address any problem points really smooths the friction in buyers competing for and making confident offers on the home.
3. How long will it take for my house to sell?
This question really connects to the first question I asked about whether now is a good time to sell. The answer: it depends.
Realistically, the better the location, condition and value of your home the sooner it will sell. But if you’re selling a mansion, understand there is naturally going to be a smaller pool of buyers available.
If your home is in the sweet spot for a larger range of buyers, it might take a week.
In fact, I was supposed to be showing a home to a client later today, but an offer was accepted after less than a week on market. I would consider it quality inventory in a price point that made it a hot commodity.
If, however, your home requires some work, make sure that you’re pricing it accordingly and marketing it as such. Make sure you have counsel on pricing your house based on sales comps and even current inventory that’s not selling.
If your home looks like the one that’s been on the market for 60 days, you probably should price it below the home that continues to sit on the market.
Mortgage rate update
The mortgage interest rate (at close of business Monday) on a $500k home (with 20% down and a credit score of ~750) for a 30-year fixed-rate mortgage is 7.439%.
This is down .237% from last week and .63% from two weeks ago. Is the trend your friend?
PSA: Get your shingles vaccine
OK. Completely unrelated to real estate, but important, nonetheless, I’m urging you to pay attention to your health over the holiday season. My theory, as evidenced in my own life, is that everyone is go, go, go during the year and then if/when you slow down in the holiday period, your body says “hey, you’re slowing down. I think I’ll catch up on all that pent up stress and busy-ness…and slow you down while I deal with it…” and then you get sick.
Four Decembers ago, a couple months before Covid was a thing, I probably got the sickest I can ever recall. It kicked my butt for a good month and a half. I lost my voice, fevers, 0 energy, you name it. There wasn’t Covid to diagnose as such, and I hadn’t traveled out of the country…
Well, this year, I picked up a gem: Shingles. Ugh. It wasn’t even on my radar as a thing. But after now a week and half of dealing with it, and talking with enough people, I’m getting the Shingles vaccine as soon as I’m able to. My trusted medical professional said I can’t get it until 6 months after I’m through this bout…but I’m gonna be chasing someone down to get me that shot (or two) as soon as I can.
So, from my own experience, I wouldn’t wish this on anyone. At least put some energy into searching more about Shingles and options to avoid it. If you’re up for it and able to do so, I’d strongly encourage you to avoid it. Oh, and you don’t have to be 60 years old either to get it. I’m still in my 40s and my brother in law got it in his mid 20s…so it’s not exactly an older person “thing.”
OK enough on that.
Take care of yourself and get proper rest, good nutrition and drink lots of water (put that eggnog down. I see that!)
Happy Tuesday, everyone.