Posts with tag 'John Yoder Team'

How You Search For Homes Matters! The Power of the MLS Explained

Look, we all use the big name, online platforms to look at homes online. They work fine for casual browsing or sharing properties with other people. But using them exclusively to search for your next home is holding you back. Why?

1. The information is often outdated. These platforms, many times, do not update when a property goes into contract. So you might be falling in love with a home that is no longer available.
2. The notification systems are unreliable. They are often not immediately notifying you of listings that meet your criteria.

This is why you need to ask your agent to set up a property search through the Multiple Listing Service (MLS). The MLS is a database of every property being marketed to the public by real estate professionals, and it is far superior to other platforms for two big reasons:

1. The information is more detailed and more accurate. Agents themselves keep the listings updated, so you never have to wonder if the property you're seeing is still available. Also, there is more information available through the MLS like property disclosures and utility details. The more (and better) information you can receive upfront, the clearer and easier your decision becomes!
2. The notifications are immediate. As soon as a new listing that meets your criteria is posted (or a listing drops down into your price range), you'll receive an email or a text. We all know that in the 2022 market, time is of the essence. So the MLS-based property search will give you an edge over other buyers and get those properties in front of you immediately!

So we highly recommend that you discuss MLS-based property searches with your agent. The property search should work for you, not the other way around!

Feel free to contact us today to get your search started the right way. Our team would be happy to discuss your real estate goals!

Until next time,
Cassie Johnson
Key Realty - John Yoder Team

Sellers Prioritize Offers From Pre-approved Buyers. Here Are Our Tips to Help You Get to the Top of the Pile.

We expect inventory to stay low in 2022. While the buying demand may not be as high as 2021, it is still likely that prospective buyers will be writing in multiple offer situations. We're providing buyer education series to help you understand what it will take to win in those situations, and being pre-approved for a loan is a major part of the strategy.

• You'll save time - understanding your budget will help you narrow your focus on the homes you can afford. Additionally, knowing the type of loan you qualify for will affect your options. For example, government loans (FHA, USDA, VA) have certain requirements for the property, and you can filter out the homes that will not meet those criteria.
• Having the pre-approval letter adds meat to your offer - Once you find the right house, you can submit your offer right away and show the Seller that you are a strong buyer.

The ability to save time and to prove your strength in a competitive market is powerful. Being pre-approved with a reputable lender is going to help the Seller feel more confident in signing your offer. You want to do everything you can do to make your offer easy for them to sign.

We also highly recommend that you consider local, reputable lenders. That means you should find a lender that has a reputation for closing in a smooth and timely manner; one who gets deals done and is creative under pressure. Why? Because sellers are also concerned about the transaction going smoothly. If you're not sure who has the best reputation in your area, a great place to start is asking your real estate agent. They will be able to provide you with at least three options that will help you achieve your goals.

We hope you find this information helpful! Keep joining us as we journey through the home buying process. Next up, the actual home search!

Til then,
Cassie Johnson
Key Realty - John Yoder Team

Having a Dedicated Buyers Agent Will Help You Win in Competitive Situations

I want to change the order of business when it comes to the home-buying process because the natural order of things, more often than not, hurts buyers.

The most common question that I receive first from prospective buyers is usually "where do I start?" The second most common is "will this home still be available once I have my documents together?" I get it! It's very normal for an interesting property to prompt the home buying process for a lot of people. And to be honest, some of my clients are able to pull it off. They get lucky. But you're not here to learn how to be lucky— you're here to learn how to best position yourself to win.

So before you start looking at homes online, I want you to start building your team, and I recommend that your first call be to a realtor that you want representing you! Sure, you can just call the listing agent for properties that you're interested in. A lot of people understand that the listing agent is the most familiar with the property, and that's a valid line of thinking. But wouldn't it be so much better to have an agent that is loyal to your interests and yours alone?

The best way to establish an agency relationship is to sit down at the very beginning and discuss your goals with them. In the business, we call this a buyer consultation. The power of the buyer consultation is that, from the get go, there is an understanding of your priorities. In other words, if you and your agent are on the same page, you will save time in your search. This clarity goes a long way in a competitive market, and it will give you an edge.

The second thing the buyer consultation establishes is trust. This is really important because you're likely going to be taking some risks in the 2022 market. During the consultation, make sure you ask the agent about their experience and strategies for winning in competitive situations. Explain what you are or are not comfortable doing. It's just as important to be on the same page with your game plan as it is to be on the same page with the type of property you're looking to buy.

August 2021 Showed High Home Price Gains Again!

The S&P CoreLogic Case-Schiller Indices show that home prices increased 19.8% nationally, year over year for the month of August. While this rate makes August another consecutive, record-breaking month, it does indicated a deceleration in month over month rates.

So what does that mean for your home's value?

Well, it's important to understand that deceleration is not the same as decline. Home prices are still increasing, they just appear to be increasing at a lower rate. And keep in mind that 19.8% is a remarkable gain in value!

Inventory is still low in Knox County as well. The Mount Vernon News recently reported that the county has about 8 week's worth of listing inventory currently. Demand is still high, and we are still seeing competitive buying situations, especially with move-in-ready properties. So it is still a great time to consider selling a property in order to leverage the profit opportunity that this market offers homeowners.

It's difficult to project what will happen in coming months. If you're looking to purchase a home right now, I would really consider how long you plan to own that property. There is absolutely nothing indicating that this market is a bubble that's about to burst, but there also isn't anything indicating that these rates are sustainable. So if you're looking to purchase a home with a plan to stay for 3-5 years or more, your investment is likely going to be solid because home prices are still increasing.

On the other hand, I would caution buyers who (like myself) have used real estate in the past five years as a way to make quick cash; that might not be the best plan closing out 2021, as I'm not sure that the gains experienced this year will replicate themselves next year in the same way.

Until next time,
Cassie Johnson
Key Realty - John Yoder Team

If you'd like to look at the data for yourself, visit: https://press.spglobal.com/2021-10-26-Annual-Home-Price-Gains-Remained-High-In-August-According-To-S-P-CoreLogic-Case-Shiller-Index

To read the article from the Mount Vernon News, visit: https://mountvernonnews.com/stories/610376665-knox-land-bank-to-sell-cooper-guest-house-on-north-main-in-mount-vernon

Assessment Value vs. Market Value & Why Understanding The Difference Matters

We have been receiving questions about assessment value on properties, particularly as homes are selling for higher and higher values. It can certainly be confusing, but there is a difference between market value and assessment value, and we're here to help clear it up!

First, let's define assessment value and market value. Assessment value is the amount that a home is assigned for property tax purposes. We reached out to the Knox County Auditor's office to learn more about the process of assigning this value to a property, and they were very helpful! Every three years in Knox County, a property's assessment value is evaluated and updated. But what does that look like?

Well, every six years, properties are evaluated and updated on an individual basis. Every three years, the market itself is evaluated, and values are updated. So, the assessment value of a property gets updated every three years.

It's important to understand that an auditor does not enter the property being evaluated. They rely on MLS data that has been published in the past, including published photos. This information is especially helpful for them to get an idea of added finished living space— think finishing a basement or an attic, as that would certainly add value to the home.

Per Ohio revised code, the assessment value cannot exceed 90% of its actual market value. With market conditions as they are currently, the Knox County Auditor's office believes that percentage looks more like 70% in the county, and there is a lot variation between individual properties.

You're probably getting the idea by now that assessment value and market value are not the same thing. In fact, assessment value doesn't really matter much in the market, it really only matters for property tax purposes. Market value, however, matters a great deal because it is what an individual is willing to pay for the property. For this reason, when you're evaluating a listing, market value of comparable listings is much more relevant data than assessment value. So, why is there confusion?

The assessment value of a property is public knowledge— it can be found on the Auditor's website. For some buyers, this can feel like helpful information when evaluating whether or not they would like to pursue an offer on a property, as well as how much to offer for it. And it is helpful information, just not in the way you might think. It's helpful because it gives you the ability to forecast your future tax payment, it's not helpful as evidence that a property is over-priced. The reality is that this market is still competitive, and buyers are willing to pay much more than the assessment value for a property (and remember, that value is often only up to 90% of the property's actual market value).

Might other buyers be overpaying for properties? Possibly. If they are, though, it's for an entirely different reason than the fact that the assessment value and the asking price don't match up.

So when you see the assessment value of a property you might be interested in, remember that this value might be somewhere around 70-80% of the market value (if you're in Knox County). If you're questioning the value of the property, the best way to find clarity is to ask your agent to perform a Comparitive Market Analysis (CMA) to see what other individuals are paying for similar homes in the area.

I hope you find this information helpful! We would love to hear from you, so don't hesitate to reach out with any questions you may be having about the current market!

Until next time,
Cassie Johnson
Key Realty - John Yoder Team