Posts with tag 'Real Estate Tips'

What to do if Your Appraisal is Short!

We have seen this happen more often than we'd like: Buyers are competing for a listing, and the contract price escalated only for the appraisal to come in low half way through the process. This can be a complex and stressful event for both buyers and sellers, and we have tips that can save the deal!

1. Home appreciation rates are vastly different from month to month. Last week, we showed the data from S&P's CoreLogic Case-Schiller Indices for May, June, and June. Consecutively, rates have been record-breaking each month from 14.8% in May, to 16.4 in June, and potentially 17.2% in July. Because of this, data that is even a month old can be out of date.
2. More and more homes are being sold off market. This means that there is additional data that would be considered relevant sales comparison data that likely gets missed because it's not listing in the Multiple Listing Service, where appraisers access information. So it's difficult to get the full picture in neighborhoods where homes are being sold by owner.

So what can be done if an appraisal comes in short? Well, there is an appeal process, during which your agent can find comparable sales data that the appraiser did not have while writing the initial report. It's fairly easy to find sales prices and residential data for homes that transferred off market from your county auditor's website. The key to this process is to find new and helpful data that justifies a higher valuation for the subject property.

If the appeal process fails (or fails to close the full gap between the appraisal value and the purchase price), there are three options: price renegotiation, gap coverage by the buyer in cash at closing, or contract termination.

Sounds like added stress during an already stressful situation, right? For sure. That's why we really recommend finding strong data and comparable sales (including off market sales!) prior to listing. It's critical that the data inform the asking price of a property. Further, if you have all of those comps prior to listing, you can leave them on the counter for the appraiser to review at the time of their inspection. Some appraisers will reference those, and some won't, but it's worth a shot!

If you're a buyer who is considering making an offer on a hot listing, we recommend considering appraisal gap coverage in your offer. Just be sure to only offer what you're willing to pay over appraisal, and be aware that it might not be enough once the appraisal comes back (in other words, you might have to bring additional cash to close the deal).

We hope you found this information helpful! It's crucial to the buying and selling experience that you hire an agent who is savvy and informed. To discuss your real estate goals with us, fill out a contact form at johnyoderteam.com/contact today!

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

Is the Hot Market Starting to Cool Off?

The short answer? Possibly!

In Knox County, specifically, we are experiencing a slight cooling off compared to the chaos of the spring market. In the second quarter (April-June, 2021), home buyers were paying 2% over asking price on average. That's a significant jump from 0.4% that we saw in the first quarter of 2021.

In the third quarter, however, that number has dropped to .06%. The quarter is not over, but that drop is a huge relief for the buyers who are competing for listings currently.

So what is contributing to this decrease? Well, we think there are 3 big factors:

1. Buyer fatigue after the spring market caused a lot of buyers to call it quits on their home search. Many would-be buyers wrote on multiple properties without securing their next home. Without an inventory shift, many have decided to wait until the market is less competitive.
2. Buyers went on vacation. A lot of Americans vacationed in July, after being pent up in their homes for 18 months. This means less showings, less offers, less bidding wars, etc.
3. School is starting. It is very normal to see seasonality in the real estate market. With the chaos of the back-to-school weeks, many families are not prioritizing their home search as highly as they were in spring or early summer.

You might be asking, does this drop affect home values? The answer is no. Homes are still appreciating. According to the S&P CoreLogic Case-Schiller Indices, appreciation rates skyrocketed this spring, and the data shows that home value appreciation hit a record high in both April (14.8%) and in June (16.4%). Further, the nation is on track for a third, consecutive record-breaking month in July with an appreciation rate of 17.2%.

So what we're potentially seeing in this early third quarter is not a decrease in home values, but likely appreciation at a slower rate.

What's the bottom line here? Well, for buyers, it's important to remember that you will still likely need to pay over asking price to compete. While you may not experience the extraordinary bidding wars that we grew accustomed to in the spring, any positive rate is an indicator of bidding wars.

For sellers, if you're still wanting higher profits, it's time to shift perspective. Because the market is cooling off a bit, presentation is really going to matter. In order to protect your position to receive multiple, strong offers, you will want to make sure your home is one that many buyers have to have. A few months back, a sign in the yard was all it took to get multiple offers. But now, you really want to focus on things like staging.

Of course, the most important advice we can give is that you find an agent who is in tune with what is happening in your local market!

If you have any questions, please feel free to reach out to our team at johnyoderteam@gmail.com.

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

Tips for Staging a Mantle

Please watch this video for helpful tips on how to style your mantle.

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

Why You Should Always Stage Beds!

Staging the bed is an often-overlooked but simple way to elevate your listing. Sellers usually don't think about how this one simple task can transform a prospective buyer's perspective on the home overall. Here is what can happen in the mind of buyer when they see it:

1. A styled bed seems intentional. This is important because you want to establish a pattern of thought a prospective buyer's mind that the home has been well maintained and that it functions effortlessly.
2. There is a psychological element at play in showings, if they pick up on a few details that show you've "gone the extra mile," they will pick up on more throughout the home.
3. All of this will lead to a higher level of confidence in the buyer's mind, increasing the likelihood of an offer.

That's a lot of benefit for such a simple task, right? So, if you're looking to style a bed, here's an important concept that will help you know what to do. A well-styled bed has a lot of dimension. That means varying heights, textures, and colors that all complement each other but add their own unique accent to the overall style. You can accomplish this three ways:

1. Personally, I like to have three "tiers" for pillows. I'll start with large pillows in a light, accent color that matches the sheets. I like these pillows to be a bit firmer, because they will be supporting the next few layers. Next, I add a contrasting, darker color (preferably one that matches the duvet or comforter), but I make sure these pillows are shorter and fluffier than the back pillows. Finally, I add one or two throw pillows that really pop and give the bed some more pizzaz.
2. You can also add dimension through textures. I love to use silky sheets, in light or pleasant colors, paired with a fluffy duvet or comforter in a contrasting color. This also works with throw pillows and blankets! For this example, in my video, I've chosen a fuzzy throw pillow and a velvet throw blanket. All of these different textures work together to create interest.
3. Finally, you can add dimension with color. I've mentioned this multiple times already, so you probably get the idea that I like to use contrasting colors that are pleasant (or not too loud) but are very different from one another. For example, using a light beige sheet set with a dark grey duvet or comforter, and topping the bed with a black velvet throw.

I hope this was helpful! Remember, this is a very simple task that can lead to better results for your listing. If you would like any more staging tips, feel free to contact our team!

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

Tips For Controlling Pet Odor

Do you have pets like me? I have three dogs and a cat, and I love them so much! They have pretty much been given free rein of the house, for better or worse, because I want them involved in everything I do. But with pets comes pet odor, and this can be especially problematic when you're showing your property for sale. 

So I have a few quick tips to help reduce these pet odors so that prospective buyers aren't unnecessarily turned off during showings.

Before I get into the three tips, I want to stress that keeping an odor free home is of extreme importance during the listing process! Why? Well, we want buyers to establish an emotional conn...

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