Author: Jacqueline Johnson

Types of Pool Systems: Swimming 102

~ Jacqueline Johnson ~ Leave a comment

Here is our long-awaited follow-up to our previous article! Once you decide to install a pool, selecting the right type of pool system is crucial. The choice impacts both your swimming experience and maintenance efforts. Many homeowners opt for traditional chlorine systems, but other types of pool systems offer unique benefits. These include saltwater, mineral, and natural pool systems. Each type of pool system has its own set of advantages and disadvantages. Understanding these can help you make an informed choice. Let’s explore each option in detail.

Chlorine Pool Systems

Chlorine pool systems are popular due to their affordability and effectiveness. They typically include a chlorinator, a pump, and a filter. Chlorine systems are effective in killing bacteria and algae, ensuring clean and safe swimming. Various options are available, from basic to more sophisticated systems that enhance energy efficiency and reduce electric bills.

However, chlorine systems have drawbacks. They can cause skin and eye irritation, especially for those with sensitive skin. Chlorine’s strong nature can also lead to the discoloration of swimsuits, pool toys, and floats. Some people find the chlorine odor unpleasant. Moreover, careful storage and handling of chlorine are necessary due to its hazardous nature.

types of pool systems: exotic pool with landscaping

Mineral Pool Systems

Mineral pool systems offer a natural alternative. They use minerals like magnesium, potassium, and sodium to maintain water quality. These pools rely on electrolysis to convert minerals into small amounts of chlorine. Although mineral pools still use chlorine, the concentration is much lower. This results in softer water, which is gentler on the skin and eyes. The minerals also create a pleasant, silky swimming experience.

Initial setup costs for mineral pool systems are generally higher than for traditional chlorine systems. Ongoing maintenance costs may be lower depending on your region. Availability of minerals might be an issue in some areas. There’s also a potential for mineral scaling and corrosion, which requires regular monitoring. Despite these challenges, many prefer mineral pools for their ability to inhibit algae growth, which reduces maintenance efforts.

Saltwater Pool Systems

Saltwater pool systems combine the benefits of traditional chlorine and mineral pools. They use a salt chlorine generator to produce chlorine from salt through electrolysis. A key component, the salt cell, ensures a consistent release of chlorine, keeping the water clean with minimal maintenance. Saltwater pools provide a softer, silkier swimming experience, which feels gentle on the skin and eyes. The automated chlorination process also reduces the need for manual chemical handling, making it more eco-friendly.

However, the initial setup cost for saltwater systems is higher than for other chlorinated pools. Increased electricity usage due to additional equipment might raise utility bills. The salt cell requires regular cleaning and maintenance and typically needs replacement every 3 to 7 years. Despite these costs, many find saltwater systems cost-effective in the long term due to the low price of salt.

types of pool systems: natural pool/pond with a small waterfall

Natural Pool Systems

Natural pool systems, or natural swimming pools (NSP), offer an eco-friendly and chemical-free option. They use biological processes to maintain water quality. A natural pool consists of two distinct areas: the swimming zone and the regeneration zone. The swimming zone is deep and free of plants, while the regeneration zone is surrounded by aquatic plants, gravel, and other natural filtration media. Water circulates between these zones, where beneficial bacteria, microorganisms, and plants break down organic matter and absorb contaminants.

Natural pools are known for their environmental benefits and aesthetic appeal. They provide a serene swimming experience in a chemical-free environment. However, building a natural pool can be significantly more expensive, often exceeding $100,000. They require more space and may be challenging to integrate into smaller properties. Temperature control is also a concern, as natural systems rely on the ecosystem rather than artificial methods. Although maintenance is chemical-free, regular upkeep is essential to keep the ecosystem functioning effectively.

types of pool systems: chlorine pool water

Conclusion: Choosing the Right Pool System

When selecting from the different types of pool systems, consider your specific needs, desires, and local conditions. Think about the availability of chemicals or materials, storage space, and how weather conditions might impact scaling and corrosion. Each type of pool system has its advantages and drawbacks. Understanding these will help you make an informed decision that aligns with your preferences. Ultimately, the best pool system for you will depend on your unique circumstances and priorities. Which type of pool system will you choose for your home?

Contact us with your questions!

Swimming Pools 101 – Types/Materials

~ Jacqueline Johnson ~ Leave a comment
Swimming Pools 101
Swimming Pools 101

If you read our last article, you know a swimming pool can add home value. Did you know, 92% of people with swimming pools installed reported a greater desire to stay at home once completed? In addition, roughly 80% of Florida homes feature a pool. With numbers like those, we thought it important to get some basic swimming pool information out there.

Types of Swimming Pools

While the most common pool is a concrete pool, there are actually a number of ways to build a swimming pool. Choosing between the style of pool, the material of the pool itself, and whether you want to use a salt or chlorine system, make a pool project a rather large endeavor.

Inground Pools

Fiberglass Pools: Built off site and delivered to your home, the surface has a gel coat, making the surface virtually non-porous. This means a fiberglass pool will not have the same water chemistry/ algae growth issues a concrete pool has. When compared to a concrete pool, you will spend roughly 75% less time and money on a fiberglass pool, according to River Pools and Spa. These pools are incredibly durable, lasting 30 years without resurfacing. They are also easy to maintain and are compatible with salt systems. Not to mention the speedy installation, taking just weeks to install versus the months a concrete pool will take to construct.

The biggest downside to fiberglass pools is they are not customizable in size and shape. So while getting a kidney shaped fiberglass pool or a 10 foot depth is not possible, the pool itself can feature customized colored finishes, ceramic tile, tanning ledges, water features, water lights, and more.

Concrete (or Gunite) Pools: The most common type of pool because concrete pools are customizable in size and shape. They also have the highest initial cost as well as the highest cost of ownership of all the types we will discuss. This actually makes concrete pools the most expensive and the most desired. Made with concrete pools and reinforced with steel, they are incredibly durable. However, the concrete is porous, and algae sticks/ imbeds easily in it. This translates to more chemical costs as well as more time simply cleaning the pool. Paying for a pool cleaning service is usually recommended for these types of pools. They will not only keep the pool clean but also make sure the water chemistry stays balanced. While you can use a salt system with a concrete pool, the salt could erode the concrete making maintenance more expensive.

Concrete pools have the highest cost of ownership of all pool types mentioned. They require an acid wash every 3 to 5 years and refinished every 10 to 15 years. This, in addition to chemical/service cost, and an estimate higher usage of electricity.

Vinyl Pools: The vinyl lined pool has the lowest initial cost for an inground pool. It is completely customizable in size and shape, which allows for your creativity to shine. The liner is non-porous, making it easy to keep clean and the water balanced. However, there are areas, behind lights for example, where the water does not circulate and algae can grow. The liners themselves need replaced every 5 to 9 years, making this type of pool more difficult to maintain than a fiberglass pool but less than a concrete one. Vinyl pools are compatible with salt systems however, make sure the side walls are plastic, not metal. The water/salt will erode when the liner leaks, which it will do.

Swimming Pools 101 - Types
Swimming Pools 101 – Types

Above Ground Pools

The most economical option for the pool owner is the above ground pool. Above ground pools, as they state, sit above ground in your yard. Sometimes they feature a deck or patio around the pool. The construction of these pools include aluminum, steel, or resin, and vinyl liners. Sometimes referenced as a DIY pool, it can be purchased at the local pool store and constructed at home. One of it greatest appeals is that it can be disassembled and taken if you move. While the pool can last between 10-20 years, the liner will need to be replaced every 5 years. Above ground pools can also be made into semi inground pools, partially burying the pool bridging the gap between the top of the pool and the ground. These pools are also compatible with salt systems, just remember to be diligent with leaks if your framework is metal.

Stay Tuned

Choosing the best option for you may take some research. As you get into deck and patio options, the project becomes even larger. However, there is no shortage of companies to interview to help determine the best option for your future plans. We always recommend calling at least 3 companies, no matter the service provided.

Stay tuned for our next article explaining specialty pools and the difference between a salt and chlorine system!

Swimming Pools 101 - Types
Swimming Pools 101 – Types

Sources:

Landscaping to Increase Your Home Value!

~ Jacqueline Johnson ~ Leave a comment
Landscaping to Increase Your Home Value
Landscaping to Increase Your Home Value

Every Little Bit Counts

Not many people realize that landscaping and various outdoor projects can add value to your property. Home values are determined by comparing homes, their features, and their condition. So when it comes to attempting to get the most for your property, small upgrades and basic maintenance can make a big difference.

Some features add value by aesthetically appealing to buyers while others add value by maintaining an ideal condition. The  2018 Modeling Impact Report: Outdoor Features by the National Association of Realtors estimated that basic lawn care service would recover 267% of the cost of investment. A pool, on the other hand, is only estimated to recover 43% of your investment, yet pool homes are quick to sell in Florida. Both the pool and lawn care service will bring more buyers to your home, however, the lawn care service provides a greater return on investment.

Landscaping Projects to Consider

Lawn Service – As mentioned above, paying for regular lawn service is one of the single most beneficial things you can do for your home value. Keeping the lawn maintained shows potential buyers you are keeping up with your home. It also increases curb appeal, this gets more people into your home. More showings equal more offers.

Trees – Florida Realtors reports planting trees can add up to 15% to home value. They can also help reduce heating and cooling costs. Just make sure to think ahead when you plant. Consider the position of the septic tank, well, sidewalks/ driveway, pool, or even roof. If a buyer perceives a future problem due to the location of the tree, it will harm, not help the sale. Well-placed trees will only add value as they age – mature trees are more desirable!

Some Florida trees recommended are:

  • Live Oak
  • Crape Myrtle
  • Maple
  • Magnolia
  • Citrus
  • Loquat
  • Mahogany
  • Slash Pine
  • Banana

Mulch – Probably the easiest project for any homeowners to complete, laying mulch goes hand in hand with maintaining your lawn. In addition to adding to your curb appeal, mulch improves the soil, helps prevent weeds, and conserves moisture. Fresh mulch has reported a 126% return on investment.

Landscaping / tulips and flowering trees
Landscaping to Increase Home Value

Additional Projects to Consider

There are some outdoor projects that are a bit more in-depth than the ones previously mentioned yet all of them will add value monetarily and aesthetically.

Fire Pit – This trend has become increasingly popular since the Pandemic. Which makes sense, with all of us stuck at home. According to the 2018 Remodeling Report, a fire feature could return 67% return on investment. This depends on the size and materials used with DIY fire pits reporting a higher return on investment than professionally constructed, gas fire pits.

Fencing – While there has always been a large number of buyers looking for homes with fencing, since the pandemic, having that privacy has become even more important. Whether it’s about having private space for the pets, the kids, or quite simply for safety/ privacy, fencing can be a great project to undertake. The return on investment for a fence is between 50-70%, depending on the materials used. Materials with higher maintenance will have a lower return on investment. With that being said, a fence will make your home more appealing than similar houses without that feature. In this market that can translate to additional offers on your home.

Landscape Lighting/ Landscape Design – While landscape lighting on its own reports to only return 50% on investment, when paired with landscape design it can raise your home value by 20%! While any addition of landscape lighting will increase value as it adds a level of security, the real benefit is in pairing design and lighting. The idea is to highlight the house and landscape while providing security. Landscape lighting illuminates your yard, silhouettes your trees, keeps everyone safe from tripping, and deters burglars. Just make sure to check out LED and solar options to keep maintenance costs low.

Irrigation System – With low maintenance being a theme this year, it’s not surprising adding an automated irrigation system can return 86% on investment. Homeowners/ buyers want that beautiful yard but don’t want to spend a bunch of time maintaining it.

Landscaping to Increase Your Home Value
Landscaping to Increase Your Home Value

Making An Impression

Whether you are looking to sell your home soon or not, your yard and the front of your house are reflections of you. Always put your best foot forward. Remember to consider maintenance and care as well as your return on investment before any home updates. Talk to your Real Estate Agent or check local listings to see what the market is like in your area. While we always want to be improving, it’s wise to know when you are simply improving or actually over-improving based on your area.

Sources:

Dos and Don’ts of Home Trends

~ Jacqueline Johnson ~ Leave a comment
Dos and Don'ts of Home Trends
Dos and Don’ts of Home Trends

Understanding the dos and don’ts of home trends can be useful whether you’re looking to sell your home soon or simply revamp your space. There are a number of trends in home decoration that you’ve likely seen come and go over the years. Some of them look pretty nice and create something of a timeless look, while others… well, it’s pretty easy to understand why they’re only temporary trends. Like them or hate them, though, following home trends can sometimes have a positive impact on the value of your home if you’re looking to sell. That is, of course, if you strike while the iron is hot.

But what if you’re not actually looking to sell at the moment and just like the way that a trend looks? Will going all-in on some big trend hurt your home’s value down the line if you do decide to sell later? This could be a legitimate concern depending on the trend. After all, even if you’re on the market and don’t manage to sell right away, you could find that going too far with certain trends will bite you before you find a buyer.

Home Trend Dos

There isn’t necessarily anything wrong with following home trends, either to bump up the value of your home in the current market or just because you like the look of them. If you’re thinking of making some changes around the house because of a current trend, here are a few things to think about:

  • Evaluate the cost of a trend before jumping all in; some are surprisingly cost-effective, while others will give you a bit of sticker shock
  • Keep an eye on trending paint colors and the “hot colors” that paint manufacturers announce every year to stay ahead of color trends, so that your home can stay trendy without you having to pay a premium for trendy colors
  • Pick and choose the trends you want to follow, and take only the parts that you like if you’re not committed to the entirety of a trend

Don’t be afraid to make some changes and upgrades in trendy styles, but don’t go overboard with it. This is especially true if you’re just looking to make some trendy home improvements before you sell your home.

Home Trend Don’ts

Some trends can really bring up the value of your home if you catch them at the peak of their popularity, but if you aren’t that lucky, then they can cost you money in the end. These are the trends that you should avoid unless you really like them. Here are a few things to look out for when considering home trends:

  • Avoid trends that require major structural changes or construction merely for aesthetic purposes
  • The overuse of bright, bold colors occasionally comes into fashion but will almost certainly go out just as quickly
  • Unless it’s just a minor expense, stay away from trends that you just don’t “get” because there’s a decent chance that you’ll implement it incorrectly or miss the height of its popularity and not even realize it
  • Even if it’s popular, watch out for trends that will be difficult for future homeowners to undo; potential buyers might see your trendy changes and start wondering how much it will cost to change them, and that could potentially spoil the sale

Basically, trends can be fun. Think twice about them though if they’re going to be too expensive, create too many headaches for future homeowners, or are likely to come across as garish or ugly.

Current Home Trends

Whether you are looking to update your home to sell or for yourself, it can be useful to know what the current trends are as well as understand the dos and don’ts of home trends. The top trends include:

  • Nature-inspired interiors – Will been seen in earthy color tones, plants inside the home, and an appeal for more natural materials (like wood)
  • Minimalism/Multifunctional Space – Trimming the clutter down, creating custom organization in the kitchen, and having multifunctional spaces are the new big thing!
  • Eco-friendly/Sustainability – Upgrading to green or eco-friendly options
  • Homework Rooms – Rooms for the little ones to focus and work, separate from their play area.

The consensus around color for 2022 is, any color that makes us feel “healthy, serene, and centered”. These natural tones consist of earthy blues, greens, and browns. Other top trends include 3D wall art, 70s design and colors, and curved shapes.

Cashing In on Home Trends

If you do want to make some home improvements or other changes to follow certain trends, it’s important that you find the right pro for the job. Whether you need an interior designer, a painter, or even a plumber to help you follow a new fountain trend, you want to feel confident about the professional you hire. As always, we recommend calling at least 3 professionals per industry before hiring one. If you have any questions, feel free to reach out to us!

Current trends were compiled from the following articles:

https://www.hgtv.com/shopping/news-and-trends/trend-forecast-2022-colors-and-palettes-of-the-year–pictures

https://www.vogue.com/article/interior-design-trends-2022

https://food52.com/blog/27019-2022-kitchen-trends

https://www.hgtv.com/design/decorating/design-101/2022-design-trends-from-interior-designers-pictures

**Adapted and revised from Homekeepr.com

Should I Skip a Home Inspection?

~ Jacqueline Johnson ~ Leave a comment
Should I Skip a Home Inspection?
Should I Skip a Home Inspection?

When buying a new home, there’s a lot more that goes into the process than just signing some forms and picking up the keys. One of the big steps that you’ll typically take is getting a home inspection. The home inspection will identify any potential issues with the property. While lenders will generally insist on an appraisal of the home, this isn’t a full inspection. So does that mean you can skip getting an actual home inspection as a part of the home-buying process?

Technically, yes. Unless you live in an area where home inspections are legally required, you do not have to get a home inspection before purchase. Should you skip a home inspection? Absolutely not. Having your home inspected serves a much greater purpose than just determining its value, and waiving the option to get an inspection done before purchase could set you up for a lot of trouble (and out-of-pocket expense) down the road.

What is a Home Inspection?

Unlike an appraisal, which just examines a home to determine its value, a home inspection digs deeper. A home inspection actually looks into the condition of the home and its components. The exact coverage of the inspection can change depending on the area, the type of home inspected, and the scope of the inspection performed. However, the Inspector’s goal is to determine the condition of the house. This will ensure that the home is livable. It will also serve to highlight any repairs to the property that might be necessary.

At the end of the inspection, the inspector will present (or email) a report. Your inspection report will likely include items such as the condition of the roof, the windows, its plumbing and wiring, and other key issues with the property. This report will help you to make decisions about the house and can help you to budget any necessary repairs or upgrades when finalizing the amount of your home loan as well.

Why You Need an Inspection

There are a few reasons why you’ll want to be sure to get a home inspection. The biggest is to make sure that the home is actually in the condition that you think it is before buying it. This allows you to avoid getting into the home and then immediately sinking tons of money into repairs after the fact. The home inspection can also help you to prioritize repair and upgrade plans, highlighting the areas that you need to focus on first. By getting a home inspection, you should be able to avoid a lot of the surprises that can sometimes come with a new home.

It’s important to note that some sellers might push for you to waive the home inspection process or at least limit it in scope. This doesn’t necessarily mean that they have something to hide; in many cases, this occurs when the seller is also looking to buy another property and is waiting on the property that they’re selling to close. Home inspections may take a little time to schedule and complete, which can slow down closing. Still, the importance of a home inspection is great enough that you shouldn’t waive your inspection even if the seller wants you to do so.

Getting Your Home Inspection

Just like any situation that needs an outside vendor, we always recommend calling at least 3 home inspectors. Not only do you want the Inspector that can do the job the quickest for the best price but you also want to feel good about the inspector you choose. This only happens when you interview a few different inspectors. If you need recommendations, give us a call!

**Adapted & revised from Homekeepr

Things to Consider When Adding On to Your Home

~ Jacqueline Johnson ~ Leave a comment
Things to Consider When Adding On to Your Home
Things to Consider When Adding On to Your Home

Things to Consider When Adding On to Your Home

There are plenty of things to consider when adding on to your home. Additions can be a good way to get more functionality out of your home. Your addition might be an extra bedroom for your expanding family, a home office to provide you with a space to work from home, or even a sunroom or hobby area. Your add-on might even be a way to add more space to existing rooms. Perhaps it’s removing or extending walls to let your current kitchen, bedroom, or other area flow seamlessly into your new addition. There are just so many possibilities.

Regardless of what you plan to use the room for, though, adding on to your house is a big undertaking and may be kind of a big investment as well. Even relatively small additions can be a big project, so it’s important that you know exactly what your plans will entail before you start work on expanding your home. To help with this, here are a few things to consider when making plans to add on to your home.

Planning the Expansion

Though you may have a good idea of where you want your addition to go, it’s important to spend some time actually planning it out. Consider details such as where the property line is located, whether there are any size or location restrictions based on state and local building codes, and whether there will be issues with the location of utilities or the slope of your property that could cause problems. Taking the time to rule out potential problems with your addition now will save you a lot of headaches down the road.

Another thing to keep in mind is how well your add-on will combine with your existing home. While you obviously have a good reason to want more square footage, if you just have an added room tacked awkwardly onto your home, it can significantly impact your home’s overall value. A good addition will blend seamlessly into the existing home. It will match the exterior and make it difficult to tell that an add-on was made down the road.

Cost and Investment

Depending on the sort of addition you want to make, your budget can fall within a pretty wide range. It’s important that you spend some time researching exactly what it will take to make your expansion plans a reality. The time of year, materials costs, and factors such as the size and types of materials you choose will all affect how much you will have to spend. Taking the time to do a bit of research and consult with a contractor about the options available to you can end up making a big difference in the final cost of your expansion.

This is important not just because of the immediate impact on your pocketbook but also the overall difference that it makes on your home’s value. All the money put into adding on to your home is an investment in your home. You want to get the biggest return on that investment that you can. Making smart choices and not letting your budget balloon out of control will go a long way toward maximizing your home’s value in comparison to the cost of your add-on. It’s more work now, but you’ll be thanking yourself if you find yourself wanting to sell your home at some point down the road.

It’s always a good idea to check with your real estate agent about your current market. If the idea is to improve the value of your home, it’s wise to know what your current market dictates as “valuable”.

Moving Forward With Your Addition

Choosing the right contractor is one way to affect the overall cost of adding on to your home and maximize the return on your investment. It is also one of the most important aspects. This person is someone you will work with over the course of weeks or possibly months, if there is an issue with materials. For this reason, we recommend researching and interviewing at least 3 contractors. This ensures you’ve done your due diligence in finding a suitable match for your needs. Always completely read through any contract with any contractor. Contracts can be a useful way for all parties to be protected, however, they can also have loopholes to be aware of.

There are so many things to consider when adding on to your home and often times the most important details slip through the cracks. This is why planning is key. First, sit down and get your own ideas on paper, then sit down with a contractor to do the same. Planning is key to a smooth experience!

**Adapted and revised from Homekeepr.com

Seller’s Market, What Do You Mean??

Seller's Market
Image ~ ~ Jacqueline Johnson ~ 1 Comment

Investopedia.com defines a “seller’s market” as, “A market condition characterized by a shortage of goods available for sale, resulting in pricing power for the seller.” In general, a seller’s market means that more buyers looking for homes exist than homes on the market, in that area or price range. In fact, both price range and area affect which type of market situation you experience. For example, homes priced under $250,000 in Central Florida sell extremely fast, however, if you go up to $400,000 the market shifts and you start to see more homes on the market than buyers shopping for them. As a result, those homes will sit on the market for upwards of 3 months instead of 2 weeks.

Let’s break this down by perspective –

 

Seller Perspective in a Seller’s Market

As a home owner…… what a great time to sell! A Seller’s Market means as long as you price your property according to what the market suggests, you could end up exceeding your list price. Many sellers can find themselves in a “multiple offer situation”. This gives them the ability to choose the best offer for their situation – which does not always equate to solely money! Sometimes flexibility in various ways wins out over a higher net profit.

The one thing we cannot stress enough however…. A seller’s market does NOT mean you can price your home as high as you would like and someone will buy it. Not the case at all. In order for the property to sell, you must price it according to similar properties in the same area. This is where a CMA comes into play.

 CMA in a seller’s market

A CMA, or a Comparable Market Analysis, gives a detailed report on a subject property and the market around it. Calculated by Real Estate Professionals, we use this report to find the value of any property a client would like to sell or purchase. The value comes in the form of a range a values with a suggested target value. The “suggested value” depends on the current features and upgrades the property has. We recommend using this value as a starting point to help determine the price at which to list the home. The range gives you an idea of what you could sell the property for, provided specific upgrades are completed.

When a seller decides to list their home within the range but higher than the suggested list price, this is what we call “pushing the market”. When done accurately, a CMA gives you an idea of the value the appraiser will find. A CMA completed by a Realtor is NOT an appraisal nor can a Real Estate Professional legally call a CMA an appraisal however, it is the standard for pricing a home to sell and also finding the value to make an offer in the Real Estate Industry.

Read more here about How A Home Appraisal Kills The Deal

How to handle being a Seller in the Seller’s Market

  • First and foremost – you should always work with a trusted Real Estate Professional for any Real Estate transaction! We help facilitate the deal and get everyone to the closing table smoothly.
  • If still living in the home, you will need to prepare yourself for Realtors to show the property. Real Estate is all about numbers, the more buyers we can show the property to, the more chances there are for offers. We recommend to our clients that are still living in the property they are wanting to sell, to leave for the first weekend to allow access to as many buyers as possible in that first weekend. This is especially true is you are looking for a niche buyer i.e. selling a home in a 55+ community or a cash only sale.
  • Know your bottom line. Negotiating can be much easier and go a lot more smoothly if you have an idea of what your absolute bottom line is and what that means for your sale. This is especially true for sellers pushing the market to purchase their next home. Understand if you are pushing the market with price and won’t budge from the top of the range, your home will more than likely sit on the market longer which means dealing with the hassle of showing for longer as well.

Buyer’s Perspective in a Seller’s Market

If you’re a buyer… it’s a great time to buy! While the national interest rate stays relatively low,  the value in most areas continues to increase. At the current rate of value, year over year, the same home could cost you up to $40,000 more to purchase if you wait. So – don’t wait!

Buyers in a seller’s market

One of the main challenges for buyers in this market pertains to multiple offers. Many times a “multiple offer situation” for a seller becomes a “highest and best situation” for the buyers. This means they need to decide what their limit is and make the strongest offer they can. Sometimes the strongest offer is one that is flexible and open to the seller’s needs. Many times this will create a situation where the seller accepts an offer higher than the price they listed for.

Property values in a seller’s market

Now, this doesn’t mean buyers are “overpaying” for property – the property still has to appraise. If it doesn’t appraise for the loan amount the parties will have to renegotiate the terms of the contract. The buyer can choose to pay out of pocket or walk away and get their escrow deposit back. Regardless, it does mean that seller’s are pushing the market and buyers are eating it up. So let’s discuss how to handle being a buyer in a seller’s market.

How to handle being a Buyer in a seller’s market

  • Again, hire a trusted and experienced Realtor! This point is even more important from the buyer’s perspective. There are more hurdles to overcome when you purchase a home versus when you sell a home. Also, in case you didn’t know, the sellers pay our commission so you should not go without representation.
  • Know what you have to work with. This one seems obvious but time and time again seems to be forgotten. Something small will come up and our buyers will lose the home they wanted because they didn’t think ahead. Sometimes getting into your dream home could mean a monthly mortgage payment just outside of the comfortable budget you set for your family. Perhaps for your dream home closings costs and fees exceed what you budgeted. You will need to come up with just a little more which means dipping into savings you previously said you did not want to touch. These are all possible situations we have seen buyers go through. You need to know your limitations from the beginning. This will help with not only finding the right home but then negotiating when you find it, if need be.
  • Don’t be afraid to be aggressive. This one has a few caveats which we will discuss in a moment. However, if you are getting ready to put an offer in on your dream home, be aggressive and make a strong offer based on the  current market in that area and your specific situation.

Difference in Realtors

Any Realtor will do a CMA on a property a client would like to make an offer on. However, a good agent will go a step further and look at the market in the area. They will give you a value for the property and also tell you how long similar properties in the area took to sell. A good agent will look at the sold properties to see if they sold for list price and if not, will look at how close it sold for. Looking at these factors plus the buyer’s specific financial situation is the best way to determine how to make an offer. Remember that you can always back out during the inspection period. Also, because the property will have to appraise for the loan amount, you do not have to worry about getting stuck paying more for a home than it is worth.

Conclusion

We always recommend to work with a trusted and experienced Realtor!! Moreover as a seller, we recommend to price the property accurately, be ready to show to prospective buyers, and know your bottom line. For the buyer we recommend you know what your hard limits are in terms of walking away from a property. You also need to be aggressive with your offer and/ or negotiations if the market suggests to do so.

Understanding the market right now is vital to getting the best deal possible. This is especially true at a time when properties sell at or above market value with inventory dwindling. This is a great time as a seller or a buyer to get into their next dream home. While a seller’s market currently dominates most areas making the process of finding a home a little harder on buyers, sellers are getting top dollar for their homes creating a great situation for most new buyers with values continuing to rise.

 

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