Buying or Selling in the Next 12 Months: What You Need to Know Today

Buying or Selling in the Next 12 Months: What You Need to Know Today

There are many different reasons you might be thinking about selling your home. Perhaps you want to downsize (or upsize), perhaps you want to take advantage of the market, or maybe you need to move to another area of the country for your company. Regardless of the reasons, there are many things to consider before you speak with a real estate agent.

You probably already have a good grasp of how the home-buying process goes since you’ve done it at least once before. But if this is your first time selling a home, there’s plenty more to learn. Even if you have sold a home in the past, the market is always changing. 

If you’re thinking about buying a home within the next year, or buying a home after you sell your current one there are a few things that you can get started on to make the process that much smoother when you are ready to go house hunting.

Deciding To Sell Your Home: What You Should Do First

Once you do decide you want to sell your home, there are several things you can do before you contact a real estate agent. The first is to prepare your home to be sold, and that usually means a lot of cleaning and sometimes some maintenance and repairs.

Even in a seller’s market, you’ll want to make your home look as inviting and attractive as possible in order to receive a great offer. Homebuyers who will be looking at your home are more likely to make an offer right away if your home appears desirable, as they’ll be hoping to secure a home before another prospective buyer comes along.

Declutter Your Living Space

When you were a first-time homebuyer, you probably saw several houses that still contained furniture and the occupants’ belongings. This is normal when the homeowners haven’t moved out yet. But you might also recall that some homes appeared a lot tidier and well-maintained than others. Think about that when preparing your own home for future sale.

You’ll want to spend a good amount of time getting rid of any clutter and junk you don’t need. Even old, worn furniture and décor items should be removed. (You can put them in a storage unit or your garage if you have space.) The idea is to present a neat living space to prospective buyers.

Make Necessary Repairs

Truthfully, this is up to you. In a seller’s market, you can likely get away with not making some repairs, since buyers are more desperate to secure a home. However, some first-time homebuyers might want the security of a home they know is in good shape. There’s also a difference between necessary repairs and home improvements.

For example, it might be necessary to replace the hot water heater but not to renovate the kitchen or the bathroom. If you’re unsure which things you should spend your money on, focus on the most obvious maintenance issues that a home inspector will definitely point out.

Check Out the Market

Have any homes similar to yours in the area sold recently? That might give you a good idea of what you could get for your home. The online sites providing estimates can serve as a good baseline, but they don’t always know the specifics of your local area or any specific improvements you’ve made in your home. Take this into consideration before you talk to a real estate agent.

The agent will, of course, be more familiar with the current conditions of the market and how things are selling in your area. And once the agent sees your home, they will be able to give you a better idea of what it might sell for. Just remember to price it realistically. Even in a seller’s market, pricing your home too high could mean you’ll be waiting a while to sell.

Finally, Contact an Agent

Once you’ve done all of the above, you are ready to contact an agent. Unless you already know an agent who you’d like to work with, you’ll want to interview a few different agents. You’ll be working with the agent of choice for a bit, so you want to ensure you feel comfortable with whomever you choose.

Ask each agent for a comparative market analysis, as well as the details of their plan on how they will market your home. You also want to ensure that the agent will have time for you and your home.

Deciding To Buy a Home: What You Should Do First

Once you do decide you’re ready to buy a home, there are several things you can do before you contact a real estate agent. The first is to prepare your list of non-negotiables and really decide what you need from a home.

The real estate market moves quickly, so understanding the current market, interest rates, and more will be important closer to the time when you’re getting ready to purchase.

Make Your List of Must-Haves

Do you need two or three bedrooms? Are you open-minded to a townhome or do you prefer a single-family residence? We’d recommend that you sit down and think deeply about what you need from a home and make your list of things you can’t live without. This will make the house hunting process much easier, and you’ll be able to share this information with your real estate agent when the time is right! 

Cushion Your Savings

Buying a home can bring several unexpected expenses your way, so the more that you can plan in advance the better. Of course, you’ll need to pay the down payment on the home, but there are also closing costs and taxes. Once you move in, you’ll likely need some furniture, and what if the HVAC system needs repair? Some experts recommend having six months of expenses set aside in your savings account, while others recommend having up to a year’s worth.

Get Pre-Approved

Securing a pre-approval from the bank is going to let your real estate agent and the sellers that currently own the home that you’re serious and ready to purchase. This will also give you a sense of your purchasing power and help you understand the budget that you’ll need to stay within.

Finally, Contact an Agent

Once you’ve done all of the above, you are ready to contact an agent! Unless you already know an agent who you’d like to work with, you’ll want to interview a few different agents. You’ll be working with the agent of choice for a bit, so you want to ensure you feel comfortable with whomever you choose.

Make sure to ask each agent about their local expertise, their track record in negotiating on behalf of buyers, and to take a look at their reviews. 

What Does the Rest of the Year Hold for Home Prices?

What Does the Rest of the Year Hold for Home Prices?

Whether you’re a potential homebuyerseller, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your homeownership goals.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was:

Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Moderates Today

This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):

What Does the Rest of the Year Hold for Home Prices? | MyKCM

Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, let’s connect so you have a local market expert on your side each step of the way. You can e-mail me at [email protected] or call/text 407-474-0600.

Home equity…Everybody wants it, but what exactly is it, and how do you get it?

Home equity…Everybody wants it, but what exactly is it, and how do you get it?

Home equity…Everybody wants it, but what exactly is it, and how do you get it?

Equity represents the degree of ownership an individual or entity has in an asset after subtracting any debts against the asset. To say someone shares equity in a company means they would share in any assets remaining after all debts are accounted for.

For example, if your business has sold $500,000 worth of product this year, but you have rent, operating expenses, and a business loan payment totaling $400,000 for the year, you have $100,000 of equity in your business. Equity changes as the value of your assets and debts change.

Home equity works the same way. When you take out a mortgage to purchase a home, your home is collateral on the mortgage loan, so the outstanding mortgage principal must be deducted from the value of the home to determine your home equity.

In most cases, you make a down payment when you purchase your home. That down payment is your initial home equity. If you pay a 20% down payment on a $200,000 home, you have $40,000 equity when you close on your purchase.

As time goes on and you continue to pay down your mortgage principal, your equity grows. Usually, the longer your own your home, the more equity you gain because you are paying down your mortgage. However, any debts you take on using your home value as collateral, such as a second mortgage or home equity line of credit (HELOC,) decrease your home equity.

The changing real estate market also influences your equity. If you paid $200,000 for your home, and two years later the homes in your neighborhood start selling in the $400,000 range, your theoretical equity increases. (Theoretical because you don’t realize your home equity until you sell your home and pay off all debts against it.) You can also lose equity if the market takes a dive but be patient and it should recover in time.

Equity also grows if you make improvements on your home that increase its value. Let’s say you add a swimming pool and all new appliances. You have increased the value of the home. Your equity doesn’t increase by the amount your spent on the improvements, but on the value you get upon resale. This is an important point when considering making improvements prior to putting your home on the market, and one that is often misunderstood.

Let’s say Joe spends $50,000 on upgrades to his home. He might tell his neighbor, “I have $50,000 in my home,” but when he goes to sell, the current market dictates how much he will actually get in return. If Joe ends up selling for $40,000 more than he originally paid, his $50,000 investment got him $40,000 in home equity.

Some things you can do to increase your home equity include:

1) Make a large down payment when you purchase your home. The more cash you put down, the more equity you begin with.

2) Make increased or extra payments on your mortgage principal. Adding to the principal portion only on your monthly payments, or making extra payments when you are able, helps chip away at your outstanding debt.

3) Be smart when making home improvements. Not all improvements build equity. Some improvements may be personal preferences that don’t necessarily add value for resale. Improvements such as a new HVAC system, new appliances, or a new roof are usually more reliable investments than a fountain in the front yard or surround sound speakers throughout the house.

4) Don’t borrow against your home equity unless you must. Home equity is often a homeowner’s biggest asset, and can help to build your retirement nest egg, but it can also come in handy if life throws you a curve ball and you need to borrow against it for an unforeseen emergency. Be careful not to borrow against your equity for frivolous purposes, so it will be there if you really need it.

5) Sell when the market is favorable. If you are counting on your home equity to help finance your next home, pay for your children’s education, or add to your retirement funds, try to sell during a seller’s market when inventory is needed in your area.

Track your home wealth. Take control. Keep an eye on your home value, loans, equity, market trends & more. Check out the link below and sign up to received your monthly Home Estimate.

Mother’s Day 2022 – Last Minute Idea for Orlando Moms

Mother’s Day 2022 – Last Minute Idea for Orlando Moms

Did Mother’s Day sneak up on you this year? Here are some last minute ideas for my Orlando folks!

Gardens with Free Admissions for Moms

Leu Gardens https://www.leugardens.org/mothers-day-may-8-900-a-m-500-p-m/

Bok Towers – https://boktowergardens.org/calendar/mothers-day-at-the-gardens/

Grab some sweet treats that Mom’s with LOVE over at Kelly’s Ice Cream – https://www.kellyshomemadeicecream.com/menu

Flowers – This week’s Mothers Day Weekend Pop Ups by Dahlia’s Flower Truck are this upcoming Friday & Saturday.

https://dahliasflowertruck.com/

Need a Staycation? – Check out the Marriott World Center. The River Falls Water Park is now open along with some brand new rooms!

https://www.marriott.com/en-us/hotels/mcowc-orlando-world-center-marriott/overview/

Is mom a lover of antique shopping?, check out the Mimosas & Roses Event at the Old Red Barn of Geneva.

https://www.facebook.com/events/539648667514746?ref=newsfeed

Need to wine & dine Mom this year. Treat her to some fine dining at Del Frisco’s for dinner!

https://www.delfriscos.com/

Late Brunch Spots still open at Garylord Palms

https://tickets.gaylordpalms.com/eventperformances.asp?evt=37

Looking for something family friendly to wear out the kiddos ? Check out Mother’s Day U Pick at Southern Hills. Their donuts & lemonade are amazing!

Rose

Should you price your home in line with the market or bump it up a little “𝒿𝓊𝓈𝓉 𝓉𝑜 𝓈𝑒𝑒 𝓌𝒽𝒶𝓉 𝒽𝒶𝓅𝓅𝑒𝓃𝓈?”

Should you price your home in line with the market or bump it up a little “𝒿𝓊𝓈𝓉 𝓉𝑜 𝓈𝑒𝑒 𝓌𝒽𝒶𝓉 𝒽𝒶𝓅𝓅𝑒𝓃𝓈?”

Should you price your home in line with the market or bump it up a little “𝒿𝓊𝓈𝓉 𝓉𝑜 𝓈𝑒𝑒 𝓌𝒽𝒶𝓉 𝒽𝒶𝓅𝓅𝑒𝓃𝓈?”

It’s a question I get all the time. Here’s my no-nonsense answer:⁣

Overpricing your home (even by a few thousand) is the #1 way to sabotage your chances of getting top dollar for your home. Buyer agents know what your home is worth and if a home is overpriced they’re going to say so. A home priced correctly will ALWAYS generate more interest and sell faster.⁣

When pricing your home, an experienced agent who knows our area is your biggest ally. He or she can gather data and help you analyze comps, location, size, age, condition, updates, and other factors that point to a price that will strike the right balance between current market conditions and the features that make your home attractive for buyers.⁣

Alright, savvy sellers! Shoot me a message if I can help you or someone you know with any other real estate questions. I’m here to serve you! You can also submit you information HERE to get a FREE Home Home Evaluation!

real estate agent lake mary
Create a Mood Board for Your Design Project

Create a Mood Board for Your Design Project

Feeling shaky about your interior design mojo but want to give it a go? I’ve got just the tool to get you started — a 𝓂𝑜𝑜𝒹 𝒷𝑜𝒶𝓇𝒹. ⁣

A 𝓂𝑜𝑜𝒹 𝒷𝑜𝒶𝓇𝒹s a visual depiction of ideas for your design project. Consider it a collage of images that show the color scheme, materials, vibe, or theme you’re after. As you get started, you’ll want to include these elements in your board:⁣

-Overall theme, style, or feel (mid-century modern, shabby chic, industrial, etc.)⁣
-Flooring
-Tiles⁣
-Cabinets⁣
-Hardware⁣
-Light Fixtures
-Paint⁣
-Faucets
⁣-Sinks
-Rugs
-Furniture
-Accessories

Pinterest is my go-to for creating mood boards. Just start pinning rooms, color schemes, furniture, and accessories that you like. Once you notice a trend in what you’re pinning, zero in and start shopping!⁣

I’m currently working on a timeless gray and white color scheme for an upcoming listing. Tied together with time-proven elements merged with the best of current design. These neutral colorings will serve as the perfect backdrop for any décor and personality therefore making it more appealing to buyers.

Need a little more interior design hand-holding? Message me – I’d love to refer you to a few of my favorite local designers & contractors!⁣

Rose Reid, REALTOR ®
📲 407-474-0600
📩 [email protected]
📍 Orlando, Florida

realtor in longwood,fl
Ready to buy your first home in Longwood in 2022?

Ready to buy your first home in Longwood in 2022?

Rose Reid & Benchmark Real Estate Group, Inc. specialize in helping first-time home buyers like you find their dream property in Longwood.

Before you start searching for homes online, it’s important to take the first step to house shopping: Getting pre-approved for a mortgage.

Your pre-approval will tell you what you can afford and what your monthly payment will be, so it’s important to determine this before you start searching for your new home.

Pre-approval is good for about 30-90 days, so once you’re ready, take these first 3 steps to get it done.

  1.  Contact me, and I’ll send over a list of lenders I know and trust.
  2.  Look over the list, check out online reviews, and ask friends and family for referrals.
  3.  Email 2-3 lenders you like or let me introduce you over email.

Once you’ve got your pre-approval letter in hand, it’s time to start the search!

Before we hop into the home search, I like to advise my clients to create a “Needs” list and a “Wants” list. This will help us to really focus on the things that are most important in your future home.

Needs are the non-negotiable features; the features you simply must have in your next home. Wants are the ones you’d like to have, but you can add or change down the road. Remember, you can’t change the lot or the location so make sure you love both.

Once you’ve established what you’re looking for, I will set you up on a search so you can receive an email the second a home that fits your criteria goes live. If you have any questions about a property, send me the information and I will find out for you. Send me listings you like and I can get more information and set up showings on your behalf.

After touring houses and choosing the one you love, it’s time to make an offer. To do this, you’ll need your pre-approval letter or proof of funds. You’ll also need to make an escrow deposit of at least 1-2% of the purchase price. This will go towards your closing costs at closing.

Have more questions about buying a home or what happens after making an offer? Reach out to me today!

Though not predictable, you can always rely on the real estate market in Orlando to change. Here are some predictions for the housing market in 2022.

Though not predictable, you can always rely on the real estate market in Orlando to change. Here are some predictions for the housing market in 2022.

  • 2022 will fall just short of record-breaking

“Zillow’s forecast calls for 11% home value growth in 2022. That’s down from a projected 19.5% in 2021, a record year-end pace of home value appreciation, but would rank among the strongest years Zillow has tracked. Existing home sales are predicted to total 6.35 million, compared to an estimated 6.12 million this year. That would be the highest number of home sales in any year since 2006.” Zillow (https://www.zillow.com/research/zillow-2022-housing-predictions-30394/)

  • Mortgage rates may rise, but inventory may rise as well

“The market is likely to cool compared to 2021, but it will still be active… It may still be a seller’s market in many areas, but there’s likely to be more opportunities and wiggle room for homebuyers. A ‘priced out’ buyer should be able to find many more options. Experts also reinforce that 2022’s housing market is not at all likely to crash — the conditions we’re seeing are nothing like those that led up to the crisis of 2008.” Andrina Valdes (https://finance.yahoo.com/news/where-home-prices-headed-2022-200001201.html)

  • **Rents are expected to outpace home price growth over the next year **

**”**Nationwide, rent growth went from minimal to double-digit pace in 2021 as the U.S. made substantial progress against the pandemic. With the rental vacancy rate continuing near its historic lows during the pandemic, in which just 5.7% to 6.8% of rental housing units are vacant at any point in time compared to 7% or more, historically, renters are also contending with limited supply and excess demand that leads to upward pressure on rents. In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth as rents continue to rebound from slower growth earlier in the pandemic.” Realtor.com (https://www.realtor.com/research/2022-national-housing-forecast/)

Curious what your home would sell for in the current market? Give me a call or an email for a free home value estimate.

CORONAVIRUS (COVID-19) Virus Disinfection & Sanitization Specialists! in Orlando, FL , Winter Garden, FL Lake Mary,FL

CORONAVIRUS (COVID-19) Virus Disinfection & Sanitization Specialists! in Orlando, FL , Winter Garden, FL Lake Mary,FL

coronavirus covid19 clearning orlando longwood altamonte boca davie

How To Clean & Protect against CORONAVIRUS (COVID-19) Contamination?

CORONAVIRUS (COVID-19) has quickly gained a reputation for being particularly insidious. It can survive on certain surfaces for up to 17 days and people infected by the virus don’t show symptoms until approximately two weeks after infection, making it difficult to track and contain. This is why having a trusted professional disease and biohazard remediation company on your side is so important.

Simply wiping down surface areas can cross contaminate your space. Cross contamination can also occur if the area is not treated at the same time or certain areas are missed. Fogging gets in the crevices and touches each surface in your home or business at the same time to prevent cross contamination and keep your home or workplace safe.

VIP, Virus Infection Protection is expanding to service the entire State of Florida. VIP follows all IICRC (Institute of Inspection Cleaning & Restoration Certification) guidelines. CORONAVIRUS (COVID-19) is still new, but we continue to follow all Centers for Disease Control & Prevention (CDC) guidelines and utilize CDC approved and EPA registered disinfectants. You can feel safe with VIP.

VIP is among the ONLY actual Medical Grade Companies. Medical Grade means Supervised by Physicians. Originally created by Doctors, for Doctors, VIP is now available to all other industries and to the general public!

For more information, please visit https://vipviruscontrol.com/ .

Choosing the Right Offer

Choosing the Right Offer

Congratulations, you have multiple offers on your home listing. It’s exciting to hear that you have a choice in buyers. Yet how can you make sure that you choose the right offer? With varying sales prices and terms, comparing offers might be harder than you expected. Still – it’s a great problem to have.

If you find yourself in a multiple offer situation, the first step is to meet with your agent to discuss each offer in detail. What are the actual differences? It’s easy to see what price they offer, but what about the other items – the terms, the financing, the contingencies.

  • Sales Price – This is the easiest to compare. Start with the sales price and then check to see if they are asking for extra concessions; these could include seller credits or paying for closing costs.
  • Terms – Determine when the buyer intends to close and when they want occupancy.
  • Financing – Financing can vary dramatically and affect your decision in choosing a buyer. For instance, a buyer who offers a slightly lower price but is going to put 50% down might be a better offer than someone using a FHA, 3.5% down loan which could be harder to close.
  • Contingencies – Most offers come with contingencies for items such as inspections, appraisal, loan approval and more. An offer with less contingencies, or shorter time frames to remove them, could be a better offer than others.

Working with your agent, consider all the elements which go into an offer; then you’ll be in the best position to determine the best option for your financial goals, timeframes and needs.