Life-Changing Events That Move the Housing Market

Life-Changing Events That Move the Housing MarkeT

Life is a journey filled with unexpected twists and turns, like the excitement of welcoming a new addition, retiring and starting a new adventure, or the bittersweet feeling of an empty nest. If something like this is changing in your own life, you may be considering buying or selling a house. That’s because through all these life-altering events, there is one common thread—the need to move.

Reasons People Still Need To Move Today

According to the National Association of Realtors (NAR) there have been a lot of this type of milestone or life change over the last two years (see graph below):

And, these big life changes are going to continue to impact people moving forward, even with the current affordability challenges brought on by higher mortgage rates and rising home prices.

As Claire Trapasso, Executive News Editor at Realtor.com, says:

"Because high mortgage rates, elevated home prices, and stubbornly low inventory make today's housing market particularly challenging, many of today's buyers are motivated by life changes, such as growing families, supporting elderly parents or grown children, or accommodating professional needs. . .”

Lean On a Real Estate Professional for Help

Whether you're beginning your search for a home or preparing to sell your current house, you don't have to go it alone. With their expertise, a real estate agent is an invaluable partner who can help you smoothly transition through these big moments in your life. Here are just a few examples.

When Buying a Home

If you’re welcoming a new addition and want more space, the need for a new home may be a top priority. While higher home prices and mortgage rates are creating challenges for buyers, you may have to find a way to meet your changing needs, even with today’s mortgage rates.

A skilled real estate agent can help. Their expertise and knowledge of the local housing market can save you a considerable amount of time and stress. An agent will take the time to understand your specific needs, budget, and preferences, allowing them to narrow down your search and present you with suitable options.

When Selling a House

If you’re retiring or going through a separation or divorce, your main focus may be to make the most out of your investment when selling your house, so you can find one that works better for you moving forward.

This is another place where a real estate agent's expertise truly shines. They can accurately assess your home's market value, suggest improvements to enhance its appeal, and craft a strategic marketing plan. Their negotiation skills are a big asset when it comes to making sure you get a fair price for your house, allowing you to move on to the next chapter of your life with confidence and peace of mind.

No matter your situation, lean on a trusted professional for help as you buy or sell a home.

Bottom Line

If recent life-changing events have you wanting or needing to move, let’s connect.

Buyer Tip: What Are Accessory Dwelling Units and How Can They Benefit You?

What Are Accessory Dwelling Units and How Can They Benefit You?

Maybe you’re in the market for a home and are having a hard time finding the right one that fits your budget. Or perhaps you’re already a homeowner in need of extra income or a place for loved ones. Whether as a potential homebuyer or a homeowner with changing needs, accessory dwelling units, or ADUs for short, may be able to help you reach your goals.

What Is an ADU?

As AARP says:

“An ADU is a small residence that shares a single-family lot with a larger, primary dwelling.”

“An ADU is an independent, self-contained living space with a kitchen or kitchenette, bathroom and sleeping area.”

“An ADU can be located within, attached to, or detached from the main residence. It can be created out of an existing structure (such as a garage) or built anew.”

If you're thinking about whether an ADU makes sense for you as a buyer or a homeowner, here's some useful information and benefits that ADUs can provide. Keep in mind, that regulations for ADUs vary based on where you live, so lean on a local real estate professional for more information.  

The Benefits of ADUs

Freddie Mac and the AARP identify some of the best features of ADUs for both buyers and homeowners:

• Living Close by, But Still Separate: ADUs allow loved ones to live together while having separate spaces. That means you can enjoy each other’s company and help each other out with things like childcare, but also have privacy when needed. If this appeals to you, you may want to consider buying a home with an ADU or adding an ADU onto your house. According to Freddie Mac:

“Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.”

• Aging in Place: Similarly, ADUs allow older people to be close to loved ones who can help them if they need it as they age. It gives them the best of both worlds – independence and support from loved ones. For example, if your parents are getting older and you want them nearby, you may want to buy a home with an ADU or build one onto your existing house.

• Affordable To Build: Since ADUs are often on the smaller side, they’re typically less expensive to build than larger, standalone homes. Building one can also increase your property’s value.

• Generating Additional Income: If you own a home with an ADU or if you build an ADU on your land, it can help generate rental income you could use toward your own mortgage payments. It’s worth noting that because an ADU exists on a single-family lot as a secondary dwelling, it typically cannot be sold separately from the primary residence. But that’s changing in some states. Work with a professional to understand your options. 

These are a few of the reasons why many people who benefit from ADUs think they’re a good idea. As Scott Wild, SVP of Consulting at John Burns Research, says:

“It’s gone from a small niche in the market to really a much more impactful part of new housing.”

Bottom Line

ADUs have some great advantages for buyers and homeowners alike. If you're interested, reach out to a real estate professional who can help you understand local codes and regulations for this type of housing and what’s available in your market.

Buyer Tip: To Share or Not To Share

When visiting an Open House , you are often greeted by the listing agent hosting the Open House. 

This is a wonderful practice and you would hope to connect with the realtor showcasing the house. Ideally they would provide information and answers to any questions that you might have about the property. 

The one thing to keep in mind however, when visiting an Open House is that the listing agent represents THE SELLER. When you first arrive at the Open House, they will typically have a sign in sheet and that is a perfect place for you to note who your buyer’s agent is ( even if they might not have a space for that on the sign in sheet ) 

So, if in conversation they start to ask you questions that might be of personal nature such as “ What have you been pre-approved for by your bank?” or, “ Is this house in your price range? What is your top limit for pricing?” 

Any of these questions are ones that really should only be shared with your buyer’s agent, lender, and closing attorney. 

Let’s play this scenario out to see how sharing this information might be to your detriment should you love the house and then decide to write an offer. We will treat it like it’s a play write below: 

Listing Agent: “ Welcome to our Open House !!! My name is Sally Sells A Lot. Please feel free to tour the house and let me know if you have any questions !”

Buyer: “ Thanks so much! It’s a great house !!! So far, it looks perfect for our family !!!” 

Listing Agent : “ Great!!! I hope that you love it so much that you write an offer! “ 

The buyer tours the house and then stops in to say goodbye and thank you to the listing agent on her way out. 

Buyer : “ Thanks again! “ 

Listing Agent: “ Well I hope that you decide to buy it! How does this fit into your price range? How much are you pre-approved for?” 

Buyer: “ Well, this is actually a little below what we are approved for which is great!!! We are approved for up to $275,000 so with this being only $250,000 my husband will be thrilled!” 

STOP!!!..................................

Now what do we have here? 

The listing agent knows that even if this buyer writes an offer below the asking price, that they can go well over. 

It now makes it MUCH harder for this buyer to negotiate a great deal on the property . 

You gave away information to the listing agent who represents the SELLERS best interests and has no obligation to keep anything that you just shared with them to themselves. 

Of course feel free to ask questions about the house, talk about the weather, or even chat about whatever else might be interesting but PLEASE protect your information that would help you negotiate an offer should you decide to have your buyer’s agent draft one for you. 

You may be picking up on the fact here that I feel VERY strongly about buyers having a buyer’s agent. It might even surprise you to know that if I was ever buying real estate in another state, I would without a DOUBT hire a buyer’s agent to represent me in the sale. Who would have thunk??? Lol 

I hope that this post may give you great tools to use for your future Open House visits if you decide that it’s time for you to purchase a property. 

Happy House Hunting !!!! 

Tanya

Homeowner Tip: Best Next Steps For Baby Boomers After Selling Their Home

Should Baby Boomers Buy or Rent After Selling Their Houses?

Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about selling your house, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to downsize or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead?

That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.

Expect Rents to Keep Going Up

The data from the Census shows how rents have been climbing steadily since 1988:Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.

When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac sums it up like this:

“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”

Owning Your Home Comes with Unique Benefits

According to AARP, buying your next home is a better long-term strategy than renting:

“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”

To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers:

• Owning your home can help you save money for the future. Your home, and the equity you build as a homeowner, can provide generational wealth that could be passed on to loved ones, giving them a better life.

• You might not have to pay a monthly mortgage payment at all. If you have enough equity to buy your next home outright, you wouldn’t have a monthly mortgage payment. While you might still need to cover property taxes or maintenance fees, not having to worry about a monthly mortgage payment could be a big relief.

• Aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.

Bottom Line

If you're a baby boomer who’s wondering whether you should buy or rent your next home, let’s connect. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.

Buyer and Seller Tip: How Inflation Affects the Housing Market

How Inflation Affects the Housing Market

Have you ever wondered how inflation impacts the housing market? Believe it or not, they’re connected. Whenever there are changes to one, both are affected. Here’s a high-level overview of the connection between the two.

The Relationship Between Housing Inflation and Overall Inflation

Shelter inflation is the measure of price growth specific to housing. It comes from a survey of renters and homeowners that’s done by the Bureau of Labor Statistics (BLS). The survey asks renters how much they’re paying in rent, and homeowners how much they’d rent their homes for, if they weren’t living in them.

Much like overall inflation measures the cost of everyday items, shelter inflation measures the cost of housing. And for four consecutive months, based on that survey, shelter inflation has been coming down (see graph below):

Why does this matter? Well, shelter inflation makes up about one-third of overall inflation, as measured by the Consumer Price Index (CPI). So, when shelter inflation moves, it leads to noticeable moves in overall inflation. That means the recent dip in shelter inflation might be a sign that overall inflation could fall in the months ahead.

That moderation would be a welcome sight for the Federal Reserve (the Fed). They’ve been working to get inflation under control since early 2022. While they’ve made some headway (it peaked at 8.9% in the middle of last year), they’re still trying to get to their 2% goal (the latest report is 3.3%). 

Inflation and the Federal Funds Rate  

What’s the Fed been doing to lower inflation? They’ve been increasing the Federal Funds Rate. That interest rate influences how much it costs banks to borrow money from each other. When inflation climbed, the Fed responded by raising the Federal Funds Rate to keep the economy from overheating.

The graph below shows the relationship between the two. Each time inflation (shown in the blue line) starts to climb, the Fed raises the Federal Funds Rate (shown in the orange line) to try to get it back to their target of 2% (see below):

The circled portion of the graph shows the most recent spike in inflation, the Fed’s actions to raise the Federal Funds Rate to fight that, and the moderation of inflation that happened in response to that hike. As inflation gets closer to the Fed’s current 2% goal, they may not need to raise the Federal Funds Rate much further.

A Brighter Future for Mortgage Rates?

So, what does all of this mean for you? While the actions coming out of the Fed don’t determine mortgage rates, they do have an impact. As Mortgage Professional America (MPA) explains:

“. . . mortgage rates and inflation are connected, however indirectly. When inflation rises, mortgage rates rise to keep up with the value of the US dollar. When inflation drops, mortgage rates follow suit.”

While no one can predict the future for mortgage rates, it’s encouraging to see the signs of moderating inflation in the economy. 

Bottom Line

Whether you’re looking to buy, sell, or just stay informed about the housing market, let’s connect.

Seller Tip: What Happens at a Showing?

When you put your home on the market, what should you expect for what actually happens at a showing?

In the Berkshires , we often have both the listing agent and buyer’s agent present. However, in most areas, only the buyer’s agent will be there with the buyer. We are slowly but surely moving towards this model. More on this topic in another post :)

A few things that might happen at a showing:

• Buyers may want to open cabinets and closets.

• Buyers want to feel free to express what they like and don’t like about the house. ( This is why many areas do not have the listing agent present so that the buyers can talk freely to their buyer’s agent during the showing ) 

• If you have photos out, they may peek at them out of curiosity. 

• If there is access to the attic, unless you have given specific instructions to not access it, they may want to take a look at the attic space. 

• Certainly many buyers may have driven a long distance to see the property and just might need to use your bathroom. Make sure to have soap and a hand towel available. Better to be prepared than for us to pretend this never happens. lol

How long will a showing typically take ? 

Well , I have had showings that last all of 5 minutes to over an hour. Often , the showing is basically over but the buyers need time to chat with their realtor afterwards. If you need them to clear out by a certain time, be sure to convey this to your listing agent.

The realty is that they say most buyers know within the first 5 minutes if the house is “ The One” . Despite this statistic, many potential buyers still need the extra time to go through the whole house and sometimes, even walk through more than one time.

Keep in mind that if the showing goes long, this can be a VERY good sign ! 

Be sure to let your listing agent know that if you are out and about waiting to come home, to let you know as soon as the showing is over and all guests have left the property. 

As for feedback on showings, try if you can to be open to both positive and negative feedback. As our market continues to shift, this will become more and more important. 

We may be trending towards a more “ Normal” market in which property listing preparation, buyer incentives, and feedback becomes a very important component of your property marketing campaign again. Always talk to your listing agent as well as to what they expect to see for showings etc. It is critical to have open communication with your agent so that you are working as a team from start to finish.

Hoping this post was helpful !

Tanya

Buyer Tip: To Share or Not To Share… That is the question!!!

When visiting an Open House , you are often greeted by the listing agent hosting the Open House. 

This is a wonderful practice and you would hope to connect with the realtor showcasing the house and providing information and answers to any questions that you might have about the property. 

The one thing to keep in mind however, when visiting an Open House is that the listing agent represents THE SELLER. 

So, if in conversation they start to ask you questions that might be of personal nature such as “ What have you been pre-approved for by your bank?” or, “ Is this house in your price range? What is your top limit for pricing?” 

Any of these questions are ones that really should only be shared with your buyer’s agent, lender, and closing attorney. 

Let’s play this scenario out to see how sharing this information might be to your detriment should you love the house and then decide to write an offer. We will treat it like it’s a play write below: 

Listing Agent” Welcome to our Open House !!! My name is Sally Sells A Lot. Please feel free to tour the house and let me know if you have any questions !”

Buyer: “ Thanks so much! It’s a great house !!! So far, it looks perfect for our family !!!” 

Listing Agent : “ Great!!! I hope that you love it so much that you write an offer! “ 

The buyer tours the house and then stops in to say goodbye and thank you to the listing agent on her way out. 

Buyer : “ Thanks again! “ 

Listing Agent: “ Well I hope that you decide to buy it! How does this fit into you price range? How much are you pre-approved for?” 

Buyer: “ Well, this is actually a little below what we are approved for which is great!!! We are approved for up to $275,000 so with this being only $250,000 my husband will be thrilled!” 

STOP!!!..................................

Now what do we have here? 

The listing agent knows that even if this buyer writes an offer below the asking price, that they can go well over. 

It now makes it MUCH harder for this buyer to negotiate a great deal on the property.

Ideally, you already have a buyer’s agent working for you and you can always sign in and jot their name right next to yours. Your buyer’s agent can certainly know what your pare-approval amount is as they are working for your best interest.

I want any of you out there to get the best deal you possibly can. Even in a sellers market where you especially need all the help you and can get securing your next home !

The more you know, the better you will do out there.

Tanya

Buyer Tip: Get Wild!!! What Does Your Dream Home Look Like?

I LOVE this exercise!!! 

Putting money aside, what would your ideal dream house look like? 

Literally, I want you to write down all of the features that your future home would have. 

What are your “ Top 3 non-negotiables” Let’s start with that. Here were mine 8 years ago:

• Laundry / space for a washer and dryer 

• Yard for the kids and the puppies 

• Dishwasher !!! 

Once I wrote those things down, the rest was where I was really able to start dreaming. 

Here are some questions that might help get you started:

1. What style would the home be? Colonial, ranch, cape, or maybe modern? 

2. What would the overall “ Feel” be? Would it be eclectic? Modern? Warm and filled with color? 

3. Would it be in a super private setting or do you want to be able to walk next door for a cup of sugar? 

4. Is natural light important to you?

5. What kind of “ Flow” do you want ? An open floor plan vs separate rooms? 

It is also a fun thing to do with couples to see how their descriptions turn out and if any of their top priorities are in line. Be sure though to not share your notes until you are completely DONE!!! No worries if you find your notes are totally different ! It’s a great opportunity to talk to each other about which items you just don’t want to go without. 

Outside of making these various bullet lists, also write free form and just describe everything and anything about your home. Perhaps walk someone through the house and describe everything that you see and feel. 

Once you have completed this exercise, keep it somewhere safe!!!! If you have started a home journal, put it right into that booklet or perhaps start a binder for notes. 

If you have this all written down and are working with a buyer’s agent, share your notes with them! It will be hugely helpful to them to get a real feel for what your dream property would look and feel like. 

If for some reason your first home doesn’t check all the boxes, don’t toss your dream home notes ! Maybe your next house will be one step closer ! 

Happy house hunting ! 

“Your goals are the road maps that guide you and show you what is possible for your life.”

– Les Brown

Tanya 

Buyer Tip: Choosing Your Realtor

One of your first towards buying your future home is selecting the BEST realtor to work with you as a Buyer’s Agent.

Choosing the realtor that is going to help you find, negotiate, and close on your home is a SUPER important step in your home buying process. 

In the home buying process, you will spend lots of time with this person so it is critical that you are a good “ Fit” A good fit meaning the following:

• You enjoy spending time with them 

• You TRUST them 

• They are professional 

• You feel that they are actively working in your best interest 

• They are respected in the realtor community

There is absolutely nothing wrong with interviewing several agents to see who you feel the most comfortable with . 

If you were to ask my opinion ( which of course is what this post is ! lol) the best way to start and find a great agent is to ask your friends, coworkers, and family members ! 

I work almost exclusively by referral. This means that almost 99% of my business is from past clients, friends, and family members sharing my name when folks ask for the name of a good agent. 

With that said, ask your circle of people who they would recommend. If you are moving out of the area and you already have a wonderful agent where you live, ask them if they have connections with great agents out of state. Many of us have access and relationships with agents all over the US and sometimes even internationally!

You are about to make one of the largest purchases in your life ! ( not to make it sound terrifying..) lol Don’t you think that you deserve someone who you know will be on your side from start to finish?

Once you have chosen your agent, if they ask for you to sign a buyer’s agreement contract ( not an agency disclosure which is NOT a contract), ask if they can write it up for 2-4 weeks. That way, if you really don’t know them already it gives both of you a chance to see how its going after those initial few weeks.  You should NEVER feel forced to continue working with someone that is not the right fit for you.

Hoping this post brought you or a friend some useful info! 

Tanya

Seller Tip: Preparation Plan for Selling Your Home

So you want to sell your house….   

1) Where in the world should you start? 

2) How much time do you need to get the house ready to show? 

3) Is this the right time in the market to list your home? 

All of the questions above do not have a right or a wrong answer. 

Your best bet is to link up with a great realtor, sit down with them, and talk about all of the above. 

I have always told my clients that as far as I’m concerned, there is never a “ Too early” time to reach out to a realtor when you’re thinking of selling your home. 

I have worked with families over a period of months to even several years to help them prepare ( both mentally and practically) their home for a future sale. 

So, now that I have that out of the way…. Call your rock star real estate agent and make a date for them to come and visit your home. 

You do NOT have to have the house “ Show ready” 

Often , we are just looking for the “ Nuts and Bolts” of the house . I.E. How old is the roof, what improvements have you made since your ownership, what is the “ Flow” of the floorplan like, do you need to make a plan to clear items out, are there projects in progress that need to be completed? 

I typically give my clients a “ To Do” list after my first visit. 

There are certainly some circumstances in which the owner is not available nor are their family members to help with the process.  That would be an “ As Is” sale where you don’t have the advantage of time and resources. 

Don’t be shy either to share with your agent if you really aren’t able to put anything else into the house. Sometimes there are very low cost and “ elbow grease” tasks that can be done to prepare the house for your sale. 

The main idea that I want to convey via this post is that it’s not a “ One and done” process. 

You may want to take several months to get the house show ready to even a few years if you don’t have a rushed sale. 

Call the experts and lean on us for guidance on steps A to Z for what to do first. 

Lastly, if you’re not sure which realtor to call, ask your friends, coworkers, and family members for a personal referral for a top notch agent that they would recommend. That is by far the BEST way to find a great realtor !!! 

Have a wonderful day and here’s hoping this post brought you some helpful information either for you or a friend! 

Tanya 

“All you need is the plan, the road map, and the courage to press on to your destination. “

—Earl Nightingale

Homeowner Tip: Logging Your Home Improvements and Maintenance

I cannot tell you how many conversions with sellers I have had that go about like this…

Me: “ So, it looks like you might have put a new roof on. Any idea as to what year you did that?” 

Homeowner: “ Hmmmmmm , let me think…… I think it was quite some time ago, but not that long ago. “ 

Let me just be clear, I have said the exact same things out loud to myself !!! Just the other day I actually called to have our septic tank pumped as I try to be sure to have it done every 3 years ( side note, the timing depends on the size of your septic tank) 

I had the appointment all set and scheduled. They were ready to come within a few days! Hurray! I could cross it off my “ To Do “ list ! 

However, upon chatting with my hubby later that day and bragging about how “ ahead of the game “ I was he quickly reminded me of the following :

“ Hey hun, remember last year when we had the drainage work done? We had them come and totally pump the tank just 6 months ago” 

Case in point, even realtors can lose track of their own home improvements ! 

Since that day, I have continued to work on creating a home log journal and spreadsheet to keep track of ANY and ALL home repairs, maintenance, and improvements ! 

This super long and silly story is to just strongly recommend logging your home improvements, repairs, and maintenance! 

Whether you take a scrap piece of paper, create a “ notes” document in your phone or computer, or my favorite… create a spreadsheet with all dates, details, and costs of your projects!!! 

It’s never too late so don’t fret! 

Even if you’ve already been in your home for ten years and never tracked a thing ! Sit down tonight and see what you can jot down for what you have done so far. Even if it means calling the contractors to ask them when they did the work.

From there, create some kind of system for moving forward. 

Please let me know if you start your home log journal and how it went. 

Have a wonderful day ! 

Tanya 

“A house is made of walls and beams; a home is built with love and dreams.”

 ~William Arthur Ward, Thoughts of a Christian Optimist, 1968

Buyer Tip: Shopping for Home Insurance

If you are financing a home , you will typically be required to secure home insurance before the closing for your future property. In a cash purchase , it will not be required but I would certainly recommend it !

A few weeks into your transaction, you should have a call from your realtor reminding you about this and checking in to see how you’re coming along in getting initial quotes from insurance agencies.

The bank will usually ask for what is called a “ Binder “ showing that you have secured the policy and that it is set to be activated for the day of the closing.

You may wonder how to get started on this process.

One great resource will be your buyer’s agent . Ask them for any personal recommendations they may have. You can also ask family and friends to see who they have used and have had great experiences with. A key question to ask is “ If you have had questions during your policy coverage, have they been responsive and are they easy to get a hold of?” If you choose a company that will put you on hold for 45 minutes only to be transferred to another department, that might be one to steer clear of.

Once you get several quotes, be sure to really look at the proposed policy. What is covered? What isn’t?

What will your deductible be should you have a claim ?

What are they estimating as the “ replacement value” of the home. If you are buying a home in an area where the highest selling price is $250,000, does it make sense to have a replacement value at $600,000? Just a few things to keep an eye out for and to keep in mind.

Don’t be shy about asking the agent to go over the details of the policy and answer any questions that you may have.

As always, I truly believe whether it is buying a home, looking for a contractor, or in this case securing insurance, the more information you have as the consumer the better.

If I have any insurance agents reading this post, please feel free to add comments or other suggestions :)

Take care everyone and cover that house !

Tanya

Buyer Tip: Why hire a buyer’s agent?

As much as you might think I am giving this advice from a biased standpoint, I actually feel VERY strongly about it.

Did you know that there are some states now that require buyers to have representation via a buyer’s agent? It certainly makes sense to me!

If I were to make a purchase outside of my direct area, I can guarantee you that I would hire a buyer’s agent. Why on earth would a REALTOR hire a buyer’s agent???? Well here are just a few reasons below:

• They will be working in your best interest

• You will NOT pay more for the property despite what misconceptions might be out there . A great buyer’s agent’s job is to get you the house for the lowest price possible. Depending on the market conditions, you may or may not be able to get much of a discount on the listing price.

• They will be well versed in the area that you are looking to buy in. They may be able to tell you about places to go, things to do, and people to connect with.

• They should be able to run a CMA ( Comparative Market Analysis ) report for you so that you can see what properties have sold for in that area.

• Ideally you will find a buyer’s agent that is a rock star negotiator ! This is a HUGE part of the buying process. You want them in your corner when it comes time to present the offer and negotiate on your behalf.

• As a buyer’s agent, they are allowed to give you recommended lists of contractors, attorneys, and home inspectors. Especially if you are new to the area this part of the home buying process is so important.

As of now, in the state of Massachusetts, we are still allowed to practice what is called “ Dual Agency” There are a variety of circumstances in which this scenario can occur. Without getting into the weeds of explaining this, I have put a link below so that you can read more about it. As a personal policy, I avoid this scenario if possible.

http://berkshirerealtors.net/wp-content/uploads/2013/08/Flyer-Consumer-Guide-To-Representation.pdf

I am always more than happy to answer any questions that you may have about why it is so important to have a buyer’s agent and how to find a great realtor. Always feel free to share any other thoughts that you might have about this post.

Have a great day !

Tanya

“If We Always Helped One Another, No One Would Need Luck”

Sophocles

Home Owner Tip: Creating a Home Journal

This is one that I must have heard about years ago from someone very wise :)

Whether you are a new homeowner or you have lived in your home for many years, it’s never too late to start a home journal.

What is it? Basically it is a binder or book that you maintain records of everything you have done to and with your home.

It might have entries such as the following:

• Painted exterior Cost $4,000 Year Completed 2017

• New driveway Cost $3000 Year Completed 2010

• Pumped the septic ( that’s a fun one lol) Cost $300 Year Completed 2017

• New Appliances: New fridge ? Year Purchased 2010

  Warrantee? ( Note how many years the warrantee covers)

You get the idea right?

So time has a funny way of getting away from us even when it’s just a few years. When we document every improvement that we make on our homes, it not only maintains a great record that you can refer to should you ever decide to sell but it is also a great reference for knowing when things need to be done.

I recently sold a home in which the homeowner kept such amazing notes that she was able to document not only the first bathroom renovation but the second one!!!!

Even something simple such as having your furnace serviced, is a great thing to note with a date and what was done. Also, always ask your contractor to leave a ticket for the service rendered. This is just a good practice and you can keep them all together.

You will save yourself a huge headache by being ahead of the game on this and starting early.

HOWEVER…. don’t panic if you have already been in your home for 10 years and haven’t started this journal ! Today is a new day and always a chance for a fresh start! You can always take out a sheet of paper and just start writing anything and everything that you can remember doing to the house and property.

Let me know how you all do!!!

Tanya

Home Owner Tip : Monthly Plans for Home Improvement

I love this idea !!!! I have to give credit to the concept of this to Hal Elrod the author of the Miracle Morning. ( One of my top 3 favorite and life changing books)

In one of his podcasts, he mentioned the concept of doing 30 day challenges. The idea of choosing one goal to focus on that month. That way, even if you have multiple goals, you get laser focused on one in particular for that month .

See link below for the episode:

https://halelrod.com/30-days-challenges/

With that idea in mind, I thought why can’t we apply this to real estate???

So, if you took your planner ( which I know you have right???) Or, you can print out the year with 12 open boxes for each month. Google calendar is a great resource for printing out days, weeks, or months .

Before filling out your calendar, find a comfortable and quiet place to sit for a while. Take a blank piece of paper and just start writing out a list of any and all improvements that you want to make on your home and property. Even if some are long term plans, add them to the list. With a long term big project , there will likely be small steps to get to the final product. For example, if you want to paint your home, you can start with small steps such as choosing a paint color, finding a contractor that has a great reputation, and collecting quotes.

Now that you have your list, you can organize them by season !

Let’s say that you want to clear the clutter in your basement. I know this is super rare for homeowners to have piles of stuff in their basement, but I am just putting this out there. lol

This would be a wonderful winter project ! You can even wander down and just dedicate 10 minutes to it and you will be surprised at how much you might get done ! Ten minutes here and there can really add up !

Once you have enough projects to fill in 12 months, go back to your sheet for the year and fill it in!

Now, the million dollar question is where to put the sheet? Under the bed? In your junk drawer? In the fridge? NONE of those are good options ! Out of sight, out of mind .

Perhaps on your fridge with a magnet? If you don’t dare to clutter your fridge, how about on a desk where you do office work? Or in your paper planner on the most current page?

As always, I would love to hear if any of you give this a try! You can email, text, or email me with your ideas !

Tanya

“Jack said nothing. It was time to start putting his plan into action. Then he remembered: He didn't have one.”
― Jasper Fforde, The Fourth Bear

Seller Tip: Preparing for Listing Your Property

I will do my best to make this not a super long, novel style post.

There are so many things that you can do to prepare your home for the market but we are going to focus on the top most critical items.

Ready…set…here we go!

• Walk through your home and see if you can pretend to be a potential buyer. Are there too many personal items everywhere? Can someone else picture your home as theirs?

• After walking through the house, how does it “ Flow”? Can you move furniture around so that you can move more freely through the house?

• Make as many trips to the Goodwill/ Salvation Army as possible. Clear as much clutter as possible. You are also helping someone in the process by giving them much needed items.

• Start to make a list of any and all improvements you have made to your property since ownership.

• Go back over your heating and electric bills and note what your last 12 months of running costs were.

• Do you have any contractors that have helped you over the years with your house? Or perhaps a neighbor that has been mowing your lawn that might want to keep the job? Create a list of anyone who might be able to continue to help with the house. It’s a win win as it helps the future owners and keeps the work going for whoever might be on that list.

• What needs touch up paint? Always try to stay with neutral/ earth tones. Just because I love yellow doesn’t mean everyone does. Not everyone can visualize so try and make it easy for potential buyers to love the feel of each room.

• Call your listing agent to come by and go over what they might have to add to your “ To Do” list. If you have not selected an agent yet, ask your friends and family for a personal referral. This is the best way to get a top notch agent!

• Lastly, make a list of all of the above. Add notes for how long each will take and a timeline of when each will be completed.

Another great preparation task is to decide on your timeline. When would you like your home sold by? Given the intense market , would you be prepared to move in less than 30 days if you had a cash offer in hand? Think about if there might be a temporary place for you to stay if it’s just an offer you can’t refuse.

With that said, in a seller’s market often the seller can really make the requests for the timelines. If you need to find suitable housing prior to closing, be sure to mention this to your agent. They can write that into the contract and go over the pros and cons of having that as a condition.

As always, you can reach out to me anytime with questions or comments.

Happy home prepping !

Tanya

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

– Abraham Lincoln

Buying A Home: Step One

Hi there !!! I am thrilled to say that I will be creating an entire series of blog posts and videos to the steps and tricks to buying a home. These will not only be helpful to first time home buyers, but also to my clients who may not have made a home purchase in over 20 years. You can imagine that times and systems have changed drastically. I still remember when we purchased our first home 20 years ago and listings had not yet gone on the “ world wide web” lol

We sat with our realtor and went through the most current book of home listings. We chose 5 to print out and look at and then it was off to the races !!!

So, apologies as I detoured a bit.

So….. drum roll please…..

Step one for buying a home is to get your pre-approval !

This is even more critical in this market when there is so much competition among buyers and still a very low inventory of homes for sale.

If you submit an offer without a pre-approval and another one comes in paired with their pre-approval , the other buyers already have a leg up on you ! You want to have as many things in your favor as possible!

If you’re not sure what lender to call on for this, your realtor should be a great source of referrals for who they would have on the top of their list.

Ideally, try and stay local. We find that by doing this, it avoids so many hiccups and last minute issues with the loan process.

Once you choose a lender , they will likely tell you what documents you will need to bring them so that they can start the pre-approval process.

Now you have the golden key to move to step two !!!!!! Choosing a buyer’s agent ! Look for my next post on this.

Have a wonderful week everyone !

If you have any questions, thoughts, or just want to say hello you can always reach out to me. You can email, text, or call me anytime !

Tanya

“By failing to prepare, you are preparing to fail.”

― Benjamin Franklin.

Love Letters: What the heck are these?

Love letters have become a “ hot topic” lately in real estate.

If you’re not sure what they are , I will explain more here.

Love letters started to surface when the market became super competitive as it shifted to what we call a “ Seller’s Market” A seller’s market tends to occur when inventory is low and there are multiple buyers looking for homes. Combine this with historically low mortgage rates and you now have a completely nutty situation.

When it came to a home hitting the market over the last few years, it was very typical to have multiple offers the first day. Some regions could see as many as 60 offers on one home in the first 24 hours !

Love letters were a strategy used to give one buyer “ leverage” by explaining why they were the perfect buyer for the home and why the seller should “ choose them” over other offers.

Now, let’s think about this. A letter is submitted to a homeowner with a very detailed description of the buyer and why they should be chosen over all other offers.

Can you see where this might be going down a risky path? It was initiated certainly without any ill intent and in the best interest of buyer clients with agents doing anything that they could to get their clients the home.

If we are trying to keep the real estate world a fair playing field for all, these love letters could potentially cause major problems. Some buyers could feel that they did not have a fair chance if love letters swayed the seller to choose someone else.

Many offices are now instituting policies that advise their sellers to not accept love letters and to explain the potential ramifications of them.

As real estate professionals , we have to conduct our business to the highest standard. When we see problems with the market or concerns about fair housing, we need to stay current with the times. It is our job to educate our clients how to navigate the real estate world with integrity and honesty.

States such as Oregon are actually now making it law that these love letters not be submitted under any circumstances. To read more about this see the following link

https://www.floridarealtors.org/news-media/news-articles/2021/07/buyer-love-letters-sellers-now-illegal-oregon#:~:text=Oregon%20is%20the%20first%20state%20to%20make%20such,out%2C%20especially%20if%20the%20seller%20received%20multiple%20offers.

This was one of my more serious posts but very relevant to the current times. If you would like more information on this topic feel free to reach out to me.

Tanya

“Play fair, be prepared for others to play dirty, and don’t let them drag you into the mud.” – Richard Branson

The Importance of the Appraisal

Especially lately, the impact of an appraisal report is bigger than ever on the sale of a home. 

In what is the craziest “ Seller’s market” that I have ever seen in my career, prices have escalated sometimes as much as 20% over where prices were a year ago. 

With this said, it is not uncommon to have a house go on the market, receive multiple offers the first day, and go to contract for potentially 30% or more over asking price. 

With cash offers, the sellers don’t have much to worry about in this scenario. 

However, when a property is being financed, the bank will require an appraisal as a part of the mortgage commitment process. This is done to protect he consumer and the bank of course to make sure that buyers aren’t overpaying for a property. 

So, what happens if the appraisal comes in much lower than the contract price? Does it “ Kill the deal”? 

Although it is certainly a huge “ hiccup” it does not necessarily mean that the deal has to die. Should both parties want to keep the deal moving forward there are a few options:

• Sellers agree to reduce the purchase price to match the appraisal price 

• Buyers agree to make up the difference by paying in cash for whatever the price discrepancy is. This may or not be an option depending on the buyer’s loan program. 

• Because the buyer is protected by their mortgage contingency ( here in the Berkshires we have this contingency in place) they may opt to terminate and get their deposits back. This would put the sellers back to square one. 

So, you can see from all of the above how important the appraisal process is.  This is also one of the reasons that I make sure to discuss this with my sellers prior to listing their home. 

It is so incredibly exciting for a seller to get those multiple, over asking offers. But they need to know that there is also the risk of not reaching the offer price when the appraisal is done so until that part of the process is completed, stamped, and approved, they haven’t quite crossed the finish line. 

One last note to be aware of is that cash buyers can also ask to have an appraisal done. This doesn’t mean that they can get out of the contract if the appraisal does not meet the offer price unless they added a financing contingency. 

Big picture…. READ YOUR CONTRACTS thoroughly ! If you have a great realtor working with you, I am sure that they will go through every paragraph of that offer with you before you sign it. We also have wonderful attorneys who are part of the transaction from day 1. 

Hoping this post provided some useful information. 

Tanya

Seller Tip: Pros and Cons of Open Houses

To have or not to have an Open House???

This is a very important question and before you jump in and say “ YES YES YES”!!!!, you should know the pros and cons of that decision.

Open Houses can be extremely effective in certain cases. However, the actual percentage of sales that are procured from Open Houses are MUCH lower than you might think.

Most buyers have a buyer’s agent and will more likely schedule and prefer a private showing. However, first time home buyers that are just getting their feet wet may not be at that stage yet.

This is why I do have a price bracket rule of thumb for Open Houses. Typically, I will do an Open House for properties below $250,000. Above that price point, I have found that buyers prefer private showings and also have a realtor representing them who will schedule their showings etc.

Open Houses can be effective to accomplish the following:

• Allow your listing agent to get new leads

• Invite nosy neighbors to see your house who have always been dying to take a peek

• Possibly have a first time home buyer who hasn’t chosen a buyers agent to see your home. They may or may not be pre-qualified yet

• Have a neighbor compare their home to yours that will be selling in the near future .

• Visitors that make a hobby of visiting Open Houses. I cannot tell you how many people I have met that say this to me. Totally fine and they aren’t doing anything wrong by doing this. It is just something to know as a homeowner that this may be one of your Open House guests.

• Both the “ Nosy Neighbors” and the “ Open House Hobby Folks” may see your home and then immediately think of someone who might love it. In the end of the day, if there is a chance of having additional eyes and ears on your home to get the word out, that is a benefit.

Now, I don’t list all of the items above to be funny. They are all true and show why it is truly a “ Mixed Bag” of pros and cons. If you have the right agent marketing and promoting your home, you may not need to even have an Open House.

Other Options:

• Virtual Open Houses

  • One of the good things that has come out of this COVID time span, it has been that our realtor community has had to sharpen our skills for online education and the ability to create virtual live and recorded tours of our properties. If the idea of having strangers coming through your home makes you uneasy, ask your realtor about hosting a virtual Open House on Facebook and online.

• Private showings

  • 9 times out of 10, this is your best option. This way you know that the buyer is a REAL BUYER! If their realtor is an experienced agent, they also won’t take that buyer on appointments without first being pre-approved. Do you really want someone looking at your home that may not be able to actually buy it?

• Brokers Open House

  • This is a great option if your property is at a higher price point . Your agent will have a Brokers Open House and ideally invite the realtors that they feel will have the highest likelihood of bringing a buyer. I typically do Brokers Opens by personal invitation. We have agents that are high volume sellers specific to the various towns in Berkshire County. These are the realtors that you would want touring your home.

As always, if you want to ask any questions or have thoughts about this post, just reach out to me anytime.

Tanya

”If opportunity doesn't knock, build a door. “

~Milton Berle