What type of Homes are Trending with Millennials?

Did you know that Millennials actually make up a considerable part of the economy?   Their economic strength as a group seems to be growing every day. As of 2019, Millennials are making up approximately 37 percent of home buyers… even more than the Baby Boomers!  So what exactly are these Millennials buying, and what trends are growing along with their increasing representation in the market? Let’s find out.

First-Time Buyers – About 52 percent of Millennials who are buying homes are first-time home buyers. This makes sense for younger Millennials, but even older Millennials who were born in the 80s are also first-time buyers. Before buying, a large number of these Millennials were renting homes. By buying homes, they can enjoy the benefits of ownership and build equity for similar amounts (or in some cases, less) than they were paying each month in rent previously.

Family Homes -The majority of home-buying Millennials are buying single-family homes. This is in part because over 50 percent of them are either married or in long-term relationships.  This is interesting – in 2018 there were more married couples among home-buying Millennials than there were in any other generational group that was in the market for a house. A significant number of Millennials also have children under the age of 18 living at home, which increases the need for a family-friendly home.

Motivation to Buy – The majority of Millennials who have bought homes within the last year did so simply because they wanted to own a home of their own – and stop paying rent . Some wanted to own a larger home, be closer to friends and family or were moving due to job relocation, but the general desire to own a home was listed as a reason for buying. A lot of this came down to the opportunities that were presented; over 50 percent of Millennials report that it was “just the right time” to buy a home, while the second most common reason (that they didn’t have much choice and had to buy when they did) was only reported by around 10 to 15 percent of Millennials.

Back to the Suburbs – One big trend among Millennial home buyers is that they were buying homes in the suburbs. This wasn’t restricted only to Millennials; 51 percent of all homes purchased in 2018 were located in suburban areas or subdivisions. The Millennials fell pretty close to this statistic, with small towns being the second most common location. The majority of the homes Millennials purchased were previously owned.  The Millennials as a group are not moving into newly built subdivisions.

 

Biggest Factors – There are a number of factors that affected the purchasing decisions of Millennials. The presence of public transit or proximity to work was one major factor, with many Millennials trying to minimize commuting costs. Heating and cooling efficiency also played an important role. In general, Millennials were more willing to compromise on price than on a home’s condition, but only around 20 percent were willing to compromise on the distance of their new home from work.

Home Shopping Trends – By far, the majority of Millennials started their home search by looking online to try and find properties for sale. Around 15 percent spent even more time online than that, starting their search by researching the ins and outs of the home buying process before even starting to look at properties. Beyond online sources, Millennials trusted real estate agents the most for information about homes for sale.

Do you have a need for commercial / industrial / retail buildings or land? Are you ready to buy or sell a home? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day….Jeff

Buy a Brand New Home in Summerlin for Less than you Think…

Maybe it’s time to trade up. I just visited a KB Homes community being built in Summerlin and was shocked (in a good way) when I saw the prices. My Summerlin home was built by KB in 2001 and single story in my neighborhood averaged $205 per sq/ft for the past 6 months… their 1,858 sq ft model starts at $387,000 ($209 per sq/ft)! That’s crazy! And their base model includes a gourmet kitchen… some of the kitchens in my neighborhood that sold for $205 average had those white tile kitchen counters!

(play the video below by clicking on it)

And if you need to sell your home in order to buy a brand new home, that is also easier than you think… call me and we can chat about it.

Do you have a need for commercial / industrial / retail space? Are you ready to buy or sell a home? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

Happy New Year – 2019 should see more growth from the housing market

 

Here we are in the first week of the year 2019 in the Las Vegas Valley and indications for the housing market look good for this year.  Reports from Real Estate Analysis companies show that Las Vegas is still one of the strongest markets and will continue through the year.

People from all over the country are moving to Las Vegas for many different reasons – the Southern Nevada area is still very affordable so you can a bigger bang for your buck.  Retirees like that as well as people that no longer can take the cold weather in many parts of the country.

With the Raiders moving here, many employees, not just the team, are moving here since their headquarters will be located in Henderson.  Other companies like Google are bringing non-gaming businesses jobs to the Valley.

New home builders are still actively developing new neighborhoods in all areas of the valley with Summerlin offering not just single-family homes, now including new attached townhomes and condos in both low-rise and high rise buildings.  In 2018 we saw Las Vegas have a 15 percent appreciation and it predicted that 2019 will be half at seven percent. The appreciation level continuing to rise, even at a slower pace, is a positive sign (the national average is three to four percent).

If you are thinking about buying an investment property, now is the time to act.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day….Jeff

 

Home Appraisals are (usually) Necessary When Buying a Home

Whether you are buying or selling, if the buyer is not paying cash (and on occasion, even if they are) the home appraisal is a one of the most important steps in the process and could make or break a deal on either side. So what exactly is a home appraisal?

A home appraisal is an expert opinion of a home’s value and it assures the lender that their loan will be in line with the fair market value of the property. A home appraiser is a licensed professional who has completed the required training, apprenticeships, and exams to carefully and impartially provide opinions about the value of real property, according to the the world’s leading organization of professional real estate appraisers.

This means your appraiser is not going to give a low estimate because they didn’t like your furniture. But rather, according to the Appraisal Institute, appraisers put together a series of facts, statistics, and other information regarding specific properties – then analyze this data, and develop opinions of value. The appraisal report will include recent sales information for similar properties (comps), the current condition of the property, and the location of the property as to how the neighborhood impacts the property’s value.

In most cases the buyer will need to cover the cost of the appraisal. Both the buyer and the seller should meet with their agent and find out what comparable homes in the area have recently sold for, which will give clues as to how much the property will ultimately appraise for.

If an appraisal comes in lower than you feel it should, the seller’s agent can use his/her knowledge of the area to challenge the appraisal. Home prices in the Las Vegas valley have been increasing so quickly that the comps that sold six months ago don’t yet reflect this improvement. There may not be adequate comps in your area, so the appraiser might have referenced comps from a less desirable community.

You have the right to see a copy of the appraisal report. Look it over as carefully as you look over your credit card statement each month you might just find errors or omissions and if that is the case the appraisal can sometimes be corrected.

If the appraisal is not adjusted enough to get to the original contract price, and both parties still want the sale to go through, it could make sense to split the difference, with the seller dropping the price a bit and the buyer adding cash to the down payment. For example, if the difference between the sales price and the appraised value is $10,000, the seller could lower the price by $5,000 and get the buyer to bring another $5,000 to closing. This solution depends entirely on the relative willingness and financial positions

of the two parties. Of course, neither party is obligated to compromise and if a new agreement is not reached, the buyer and seller can part ways and (most real estate contracts contain a provision that states) the buyer will have their earnest money returned to them.

When an appraisal comes in low, don’t panic. Remember to stay calm, assess the situation, and let your agent walk you through the process. Often, there is a fair and equitable resolution for all. It just may take some extra time.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day….Jeff

Selling Real Estate Without an Agent Will Likely Cost You Money

First, I realize this article may seem self-serving – after all, I earn a living helping people sell real estate, but I truly hate to see people lose tens of thousands of dollars, and statistics show that is what usually happens to FSBO’s. What does FSBO mean? For Sale By Owner — it’s the process of selling real estate without the representation of a real estate broker or agent.

This way of selling your property is not the greatest idea in most cases (trust me – I was that guy many years before I got my real estate license). That is why you hire a real estate professional – their job is to know the local real estate market and put the most money in your pocket. Let’s face it, people pay more when a salesperson is involved. Think about it; when you have a garage sale, even if you are selling quality items, the buyers always expect a discount. And if the discount on the property you are selling turns out to be as much (or more) than the commission you would have paid, then you did all the work and still did not make more money. I don’t know about you, but I really don’t like doing more and getting less.

Sellers who choose to sell their home on their own just may experience “seller’s regret” when they see how much less they get for their properties (or worse, not even realize how much they lost). FSBOs sell for an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent, according to the National Association of REALTORS®. Here’s the breakdown:

* All agent-assisted homes: $250,000 (median selling price)

* All FSBO homes: $190,000

* FSBO homes when buyer knew seller: $160,300

With the knowledge of the numbers shown above – why would anyone want to sell their home on their own? Some sellers want to avoid paying a commission to an agent — but even factoring in a commission; researchers from the NAR researchers have stated “The closing price for the agent-assisted seller is likely going to be way above a FSBO. [And] in reality, homes sold by the owner make less money overall.”

Sorry (not sorry) for the Las Vegas based pun… but don’t gamble when selling your house; hire a professional.

This message is getting through to homeowners: Only 8 percent of home sellers in 2017—an all-time low—chose to sell their home themselves, according to NAR’s 2017 Profile of Home Buyers and Sellers. This figure has been falling since 2004, when 14 percent of homeowners sold their own homes.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

Selling Your Home? Staging Will Usually Bring You More Money, Faster.

 

Great – you have decided to sell your home for any number of reasons. Moving out of town, kids are grown and don’t need as much space, ready to buy a larger home for growing family or just want to move to a newly built neighborhood with lots of amenities.

Even in a hot real estate market, you can still increase the amount of money you put in your pocket by making your property more attractive than your competition. Let’s face it, people will pay more for something that looks nicer.

If you are thinking of selling, first call me, as I am an incredible Realtor. After we meet, I will send an Interior Designer to your house to help you look at your home through the eyes of today’s buyers and suggest the best way to stage your home for the quickest sale at the best price.

You don’t plan to hire me? Well, I’m sad, and here are some easy things you can do on your own;

Before doing anything if you have walls that are not in a neutral shade you might want to put a fresh coat of paint in very light brown or grey (not just white). After that I suggest have your home professionally cleaned and your yard should be spruced up.

Put away any personal items like family photos, religious items and children’s toys – a prospective buyer does not want to see those things. Pack away excess furniture and knickknacks that are cluttering you home – you want your rooms to look spacious and neat.

Speaking of neat, take anything unnecessary off your kitchen & bathroom counters so they also look uncluttered. Make sure you keep up with the cleaning of counters and sinks etc. As silly as it sounds, hide your trash cans. Sure, everyone has trash, and no one wants to see yours!

The seating areas in the living room and family rooms should look inviting. The potential buyer wants to see a space that their furniture would look good in. If you can, create conversational areas within your rooms. This might mean removing a couple of pieces of furniture depending on how big the space is.

Bedrooms are another part of the home that is very important to buyers. Pack up any and all personal items that are on all surfaces – jewelry, mail, magazines to name a few. Make sure all the beds are made and everything is clean. If you have a lot of furniture, again, remove a few things. If you need to spend some money on new bedspreads, pillow covers, throw pillows, do it – a small price to pay for a quicker sale.

If you have pets do not leave their water bowl and food around – pick it up and when you have a buyer looking at the home take your pets for a ride.

The basics are clean, uncluttered and appealing – think “model home”. The more inviting your home looks, the more money you will get in a shorter period.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

Professional photos make a big difference

iPhone pictures are great for selfies, but get it done right when selling your house, or lose money & time on the market.

A homeowner (let’s call her Mary) was recently interviewing an agent from another brokerage and before signing any paperwork, Mary was speaking to Bob on my team about the process. Bob knows Mary personally (but not as well as the other agent), and was working on getting us an interview. Mary was convinced that she intended to hire this other agent and did not need to interview us, so Bob offered her a list of questions to ask. (We provide this list to anyone, anywhere who would like it – just click here to download it FREE).

One of the questions asks if the agent being interviewed intends to use a professional photographer. You can google the benefits of using a professional photographer in real estate here.

All of our research, as well as our experience (and our eyes) tells us that unless the house is in dire need of extensive rehab, professional photos will put additional money in the homeowner’s pocket. Studies vary on the amount, but from everything I have read, it can be as little as $900 and as much as $19,000 and averages around $3,400. Can you imagine the vacation you could take with all of that extra cash? Listings with professional photos also get more many views online and sell faster according to these studies. Yet, when asked by Mary if she intended to use professional photos, the agent being interviewed said “don’t waste your money”.

Wow!! And if she took that shortcut, what other shortcuts is she going to take that will cost Mary an additional $1,250, plus $2,275 plus $8,400 plus ????

Mary’s listing went active recently and the photos of the “highly upgraded” kitchen, as well as the laundry room and 2 of the bedrooms are extremely blurry. Mary is seen in 1 of the photos from behind, her dog’s butt is in one of the photos (just the butt prominently displayed). 90% of buyers begin their home search online, by looking at these photos, and I can tell you from experience, they often opt-out of visiting houses that have bad photos. If the agent you interview does not intend to hire a professional photographer, show them the door and call us right away at 702 SELL NOW. Even if you are not in the Las Vegas area. We will help you find and interview a competent agent anywhere in the country for FREE. We can’t stand it when lazy agents get hired to sell houses and cost the homeowner thousaands and of dollars, as well as time on the market.

Footnote: In a fascinating turn of events – as I was writing this post, a client of mine called me about a house we saw yesterday. When I asked her what she thought of the home, she said that the kitchen was actually nicer than the photos showed (can you guess why?)