Look For A Cash Buyer

Selling your house for all cash means you can cut down on all the cleaning, decluttering, and repairs that commonly come with the classic home sale process. In July of 2021, home sales for all cash were at 30%, and while NAR reports the May 2022 cash sales down to 25%, that still gives a window of opportunity in this cooling housing market. However tricky market conditions could ensue if there is a jump in the number of homeowners selling for cash due to financial hardship and a drop in all-cash buyers as a falling stock market causes people to lose liquidity.

When selling for all cash, there are fewer unknowns like waiting for the buyer’s loan to close and you won’t be roped into the 17% of sales that had delayed settlement issues in May of 2022. A legitimate all-cash buyer will not have to deal with a lender and might not ask for as many repairs or upgrades. 

However, selling for all cash means you will probably get less money for your home, especially because this option is usually used on homes that need considerable repairs. Buyers know that all cash is easier and will offer at a lower cost and can have a “take it or leave it” attitude with little to no room for negotiation. Additionally, an all-cash buyer may want to close fast and offers all cash to avoid further competition and a long due diligence/closing process

Who Are Cash Buyers and Sellers?

Cash Buyers

• iBuyers are real estate tech companies who also work as brokerages and use an algorithm to detect what to offer and sell a home at.
• Investors buy near schools and universities or major hubs where rentals are popular. They can then generate rental income from their properties
• House flippers often buy for the same reasons as investors, however, they will renovate update, and sell the home vs. holding on to it to make rental income. 

Cash Sellers

• Cash sellers are often looking to sell their homes fast because they are on a timeline to move. This may include: 
  • Relocating for work or remote work ending.
  • Divorce
  • Receiving a property from an inheritance.
  • Disrepair coming from structural issues, fire, water or damage from natural disasters, or bad tenants. 
  • Immediate desire to move from the neighborhood, town, or state.
  • People being foreclosed on to try to beat the scheduled auction.
  • Sellers who have already purchased a new home and can’t afford a double mortgage.

If selling your house for cash doesn’t work out and you want to go the traditional route, there are many cost-effective ways to sell your home fast with minimal work. You don’t need a full renovation!

Start With Less 

The first step is to declutter the house. In a survey, 98% of top agents agree: minimizing clutter is one of the most important steps to complete when prepping your house for sale. Still, homeowners often overlook or ignore this advice. 

-kkl kl;.Getting rid of clutter isn’t just for your personal reputation. Homebuyers are less likely to bid on homes with clutter where they can’t imagine a home with their belongings in it or see the floor. It also may make them nervous that the stuff may be hiding a big flaw or pests.

Decluttering Your Home For Sale

• Declutter your home from top to bottom. Get rid of all things you don’t need. This will be a mixture of things to throw out, things to give away, and things to pack now. The more you can live without now, the less you have to do later. 
• Get boxes and rent a storage unit. You can store packed items until you’re ready to move. Separate the things you can give away and pack them into boxes labeled “give away” with a donate by date to hold you accountable. Most donation centers will give you a receipt for a donation that’s tax-deductible.
• When in doubt, throw it out! Get a big trash barrel on wheels that you can roll around with you to easily toss trash. You should be left with only items you use every day, and other essentials left to pack (clothes, linens, dishes, etc.). 
• Plastic bins with snap-on lids for unexpected showings. Things like toiletries and everyday miscellaneous items can be placed into these containers for easy and temporary storage when you get unexpected visitors. They can also be easily used when it’s time to move and you can see the items you need in a pinch.

How To Prepare Your Home To Sell Fast

The easiest way to tackle minor repairs, cleaning, and cosmetic issues is to take a walk through your home and make a list of all the tasks or cosmetic things that have been bugging you or need to be updated. Look for minor repairs, scrapes and gouges in walls, cracked or damaged paint, or anything else that makes your home look older and worn.  

Deep Cleaning With Meaning

• Have all the cleaning supplies on hand. Make sure you have anything you’re going to need to clean your home, including a vacuum and carpet steam cleaner. If you don’t have one, rent one. This is often a selling point, so either steam clean your carpets – or replace them. It’s an expense you’ll likely pay for, either now, on your own terms, or later, at closing, on the buyer’s terms. Unless the carpet is in top condition and you can get by with just a steam clean – only you know, for sure. 
• Clean inside and out. Make sure to thoroughly clean windows inside and out, baseboards and window frames, drawers, etc. Prospective buyers will be looking around every corner and door.

Minor Repairs To Raise Home Value

• Which spaces need more light? Lighting is one of the most requested features by buyers, and humans have emotional and physical responses to light. Bring in more natural light to dark spaces wherever possible. 
• Consider installing smart features. This is an inexpensive way to advertise energy efficiency – a good selling point, right now. 
• Replace cabinet door handles instead of new cabinets. This is a cost-effective upgrade that changes the look drastically.
• Schedule a handyman, and a contractor if necessary. It’s either now, on your terms, or later – during the home inspection, on theirs.
• Get a home improvement loan. Keep in mind, full disclosure is required by law. If money for repairs is a problem, consider getting a home improvement loan, or be prepared to adjust the price if any major repairs are found necessary during the home inspection

Fresh Paint Renews Your Home

• Neutral touch-ups. When cleaning is done, paint any interior rooms that may need a fresh coat – use NEUTRAL colors, whatever you do! (Don’t listen to that rebel inside you. Not this time, hipster.)
• Freshen the windows. While you’re at it, consider painting window frames and going “curtainless” in the kitchen – or any dark room.

Prepping Your Home To Sell

• Hire a professional photographer to take your listing photos. This is crucial; don’t make this common mistake. It’s not very expensive, at average costs between $150-$300, and will make all the difference.
• Have your home staged for the listing photos. Talk to your agent, they can often help you get this done or recommend someone.

Prepare Your Home For Sale Through Curb Appeal 

The importance of curb appeal cannot be overstated. The fact is, you only get one chance to make a first impression. And no matter how you look at it, your home’s curb appeal is any potential buyer’s first impression. Let’s face it – we’ve all seen some pretty run-down or dull-looking houses for sale. If you were out house-hunting, you’d see a house like that from the curb, and just drive on by. You know it’s true.

There are several tips below that fall under the header ‘curb appeal’, so get ready to work – or hire someone, and supervise from inside in the A/C. 

Lawn Care

• Hire a landscaper. Not the neighbor kid, though tempting. This is not the time to worry about saving money, so call a professional landscaping company. You’ll save yourself untold grief! 
• Landscape yourself. You’ll need to mow, weedeat, trim shrubs, and trees, plant some flowers if possible (pre-grown), clean up any trash, tools, toys, hoses, whatever – you want your property to look immaculate, and your yard to look manicured. 

Exterior Home Touch Ups 

• Power wash the exterior of your house. Again, if you don’t have one, borrow or rent one – this makes a huge difference. 
• Repaint the exterior. If the exterior needs to be painted, remember the rule: use a NEUTRAL color. And for a job like this, hire a professional. But if you don’t have the money for that, power washing really helps – plus, you can: 
• Accent with darker colors. Consider choosing a darker shade, or a contrasting – but complementary and tasteful – color, to accent the outside of your home. Paint window frames or shutters the accent color, and possibly the front door (see next tip). 
• Walkway Work on your walkway up to the door, the patio, porch, or front stoop, and the front door itself to remove loose tiles, weeds, or anything else that may catch the eye in a negative way.

Exterior Home Decor

• Welcome buyers in. Make sure you have a welcome mat in place. Remember: warm, inviting. 
• Replace your front door completely. Your front door is so important! You want it to have class, but be welcoming at the same time. Replacing your front door can give your house a completely new look! If not, give it a fresh coat of paint – and perhaps a nice door knocker.

• Add greenery. Put some potted plants or even a hanging plant around the entryway area. 
• Accessorize the decor. Hang some wind chimes or other outdoor decor. A porch swing or a rocking chair is always cozy and inviting. A birdhouse is a nice touch. (You get the picture.)

Find a Stellar Real Estate Agent 

Other than the prep work, this is the most important step, hands down. DIY methods are great for just about anything these days, but there are still some things that just don’t pay to do yourself. One of those things is not using a realtor. Find an agent that feels right and understands your needs – don’t just take the first one that comes along. There are more realtors in the U.S. now than ever before, and there is definitely one out there that’s perfect for you. Finding a top real estate agent will help you sell your house faster and for more money, regardless of market conditions. 

Pricing Your Home

Once you’ve found a real estate agent you can trust, consult with them and LISTEN to what they advise. They will help you come to the perfect asking price. Do not overprice your home. 

If you are concerned the asking price is too low, ask your agent to walk you through how they came to the number. Real estate agents will look at comps to see what in the neighborhood or area has been selling and how it compares to your home. You can also do research on your own through listing sites that show recently sold homes or property transactions.

If you follow these tips and have the right real estate agent in your corner, you should have little problem selling your house – in any market conditions. Good luck! 

The post How To Sell Your Home Fast and Increase Its Value appeared first on CitySignal.

In theory, a dual agent sounds like a good idea. There’s one less agent to deal with and the potential for a quicker, smoother transaction.

But in practice, a dual agency relationship can often be problematic. Because the agent’s loyalty is split between both parties, it can be difficult for them to advocate for either the buyer or the seller. This can lead to a situation where both parties feel like they’re not getting the best possible representation.

Is Dual Agency Legal?

While it may seem unethical, dual agency is allowed in most markets across the U.S.

The few states that make it illegal are Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming, citing an inherent conflict of interest as the main reason.

Put another way, these states believe that agents who owe a fiduciary duty to their clients, as is the case in agency relationships, cannot offer fair and unbiased representation to both parties.

How Are Commissions Paid in a Dual Agency?

In a typical real estate transaction, the listing agent and the buyer’s agent split the commission that’s paid by the seller at closing.

In a dual agency situation, a single agent receives the full commission, which is usually 5% or 6% of the sale price.

Dual Agency Drawbacks

Key drawbacks of a dual agency relationship include:

1) Less confidentiality

Because the agent is representing both parties, it can be difficult to keep confidential information confidential. This could lead to a situation where one party learns about the other’s negotiating tactics or bottom line, giving them an unfair advantage.

2) Impartiality

It can be hard for an agent to remain impartial when they’re representing both the buyer and the seller. In some cases, the agent may show more loyalty to sellers because they were the ones who hired the agent in the first place.

3) Limited representation

A dual agent may not be able to provide information to either party that would otherwise prove useful. For example, the agent is expected not to disclose how low the seller is willing to go on the price or what the buyer’s maximum budget is.

What Are the Risks of Dual Agency?

While it isn’t always the case, an agent who represents both the buyer and the seller can steer the deal in the direction they want, often to the detriment of one or both parties.

For buyers, this could mean paying more for the property than they should or not knowing about potential problems with the home.

For sellers, this could mean selling for less than they could have or not getting the full story on the buyer’s financial qualifications.

Dual Agency Gone Wrong

There are a few ways in which a dual agency can go wrong:

Example # 1

After a busy open house, the seller’s agent takes note of which potential buyers showed up without representation. A few days later, the agent compiles all offers and presents them to the seller.

When the seller asks for feedback, the agent says that they have a “really good feeling” about offers A and B, even though the offers came with smaller down payments and a longer due diligence period compared to others. “These particular buyers were very motivated,” the agent says. “Based on their financial profile, they’re likely to secure the loan.”

What the agent doesn’t say is that offers C and D, which came with higher down payments and a quicker period to close, are also legitimate. It’s just that these buyers are represented by other agents.

In this situation, the agent has put their interests ahead of those of their clients. By steering the seller toward certain offers, the agent is more likely to get the full commission.

Example # 2

The seller’s agent secures an approved offer from a direct (unrepresented) buyer. At this point, the seller is unaware that the agent is also representing the buyer.

During the initial paperwork, the seller receives an email from the agent that contains a dual agency agreement. The seller, having signed many similar forms in the past, assumes that this is just a standard disclosure and executes the agreement without paying much attention to the details.

As the sale progresses, the seller becomes suspicious when the agent isn’t providing them with as much information as they usually would. The agent then discloses verbally that they are also representing the buyer and that they’re not able to reveal any confidential information to the seller.

In this case, the agent has failed to properly disclose their dual agency status. By keeping it under wraps, the agent now stands to make more money at the expense of the unsuspecting seller.

Are There Any Advantages to a Dual Agency?

The fact that several states have banned dual agency should give buyers and sellers pause to consider the pitfalls of one agent representing both parties.

That said, some brokerages might argue that there are advantages to a dual agency, such as:

1) Cost savings

In a dual agency transaction, the agent may be willing to work for a reduced commission or offer other incentives to keep both parties happy.

2) Efficiency

Because both the buyer and the seller are represented by the same agent, communication can be more or less streamlined and negotiations may move along quicker.

3) Expertise

A real estate professional with dual agency experience may be able to anticipate any potential problems that could arise from a conflict of interest and address them before they become an issue.

The Bottom Line

Not only is dual agency legal in most states. It’s also fairly common.

Sometimes, sellers have no choice but to accept a dual agency situation. They can’t force direct buyers to hire an agent who would represent their interests exclusively. Likewise, buyers can’t force the seller to switch agents when the deal goes sour.

This is why buyers and sellers need to be aware of the potential risks involved in a dual agency and take steps to protect their interests. One crucial step is to review all disclosures, paperwork, and agreements carefully, and to ask questions if something doesn’t seem right.

After all, buying or selling a home is a major transaction, with a wide spectrum of emotions involved. So it pays to be as informed and level-headed as possible.

The post The Dangers of Dual Agency: What Buyers and Sellers Should Know appeared first on CitySignal.

Despite high demand and the competitive nature of the market, a lack of adequate supply continues to constrict the amount of sold homes. In February 2022, there were around 870,000 housing units for sale, a 15.5% decline from the same time last year. 

“Pending transactions diminished in February mainly due to the low number of homes for sale,” said Lawrence Yun, NAR’s chief economist. “Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale.'”

Yun mentioned that the market is in for other challenges, as rising mortgage rates and prices put a strain on buyers. American individuals and families who want to purchase a home will have to spend significantly more on a mortgage than they did even a year ago. 

As of February 2022, rising mortgage rates and rapidly increasing home prices caused a 28% year-over-year increase in mortgage payments. In simple terms, a mortgage that cost $1,000 a month in February 2021 would now average around $1,280 a month. 

“The surge in home prices combined with rising mortgage rates can easily translate to another $200 to $300 in mortgage payments per month, which is a major strain for many families already on tight budgets,” Yun pointed out.

Yun predicted that mortgage rates will rise to around 4.5% to 5% for the rest of 2022, contributing to a 7% reduction in home sales in 2022 compared to 2021. Home prices continue to appreciate at high levels, but even with a supply shortage, the market may soon reach a tipping point where not enough buyers are able to afford a home at current levels. Sellers won’t be able to continually increase their asking prices in the same way they were able to over the last year and a half. 

“It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead,” he said. “Consequently, home sellers cannot simply bump up prices in the upcoming months, but need to assess the changing market conditions to attract buyers.”

According to Yun, “Home prices themselves are still on solid ground,” he added. “They may rise around 5% by year’s end and we should see much softer gains in the second half of the year.”

Regional Snapshot

Every region experienced an annual drop in pending home sales, while the Northeast was the only region to have a monthly increase from January. Month-over-month, pending home sales in the Northeast rose 1.9% in February, but dropped 9.2% from a year ago. In the Midwest, the monthly decrease was 6.0%, and 5.2% from February 2021.

Pending home sales in the South declined 4.4% for the month and 4.3% from February 2021. In the West, there was a 5.4% drop in February, and a 5.3% decrease from the prior year. 

The post Pending Home Sales Continue to Decline in February appeared first on CitySignal.

The announcement comes in the wake of the recent publication from the National Association of Realtors (NAR), which reported that existing homes sales had declined by 7.2% in the past month. Anyone who has been following the evolution of the real estate market in the past two years is aware that properties are in short supply, and the input of new homes would bring welcome relief in a tight market. However, new houses do not always constitute an appropriate alternative to move-in-ready properties.

Newly built homes are typically more expensive than existing properties. The median sales price of new houses sold in February 2022 was $400,600 (a 10.7% increase compared to a year prior), compared to the median existing-home sales price at $357,300. The difference could be exacerbated by increasing interest rates, putting new homes out of reach for buyers who do not benefit from the equity built into a previously owned property.

Besides, new homes face an additional challenge: they are subject to other pressures that would contribute to additional expenses, such as labor shortages, high material prices – including aluminum and lumber – and ongoing supply chain issues. These three concerns have been a recurring headache for home builders since the beginning of the pandemic. However, the invasion of Ukraine by Russia adds another stress factor to an already struggling industry. The U.S. homebuilder sentiment fell to a six-month low in March. It may keep declining depending on the effects of the tightening monetary policy and overall inflation on the prospective home buyers, some of whom may end up priced out of the market since the rising costs will likely be passed on to the consumer.

The inventory for new homes is significantly more important than existing homes, with a supply of 6.3 months at the current sales rate compared to 1.7 months for existing homes. Because of the tumultuous supply chain, builders prefer to focus their efforts on completing already started homes and working on homes that have already received the necessary permits. Therefore, a higher-than-normal percentage of to-be-built homes for sale has not been started yet. However, completed homes sell fast, with an average of 2.5 months on the market.

The United States is facing a housing crisis, with a neat lack of affordable housing accessible to workers in many cities and regions across the country. The increasing property prices fueled by the lack of inventory and the arrival of institutional buyers and investors purchasing properties at bumped-up prices are turning homeownership into a pipe dream for many. Although increasing the pool of available properties could help alleviate some of the pressures on would-be home buyers, the building industry faces its own crisis.

The post New Home Sales Dropped 2% in February appeared first on CitySignal.

In the third quarter, Manhattan, Brooklyn, and Queens all witnessed a record high number of sale contracts. When compared to pre-pandemic numbers of 2019, homes in 2021 are selling a week faster and closer to their asking prices, overall. However, it’s obvious that Brooklyn is faring better than its neighboring markets. 

A market that favors sellers will have all of the following:

• Few days on the market
• Few price cuts
• Final sale prices closer to initial asking prices
• Multiple interested buyers

Although the NYC market is doing fairly well as a whole, sellers have higher negotiating power in some markets more than others. One of the most telling factors determining whether the seller or buyer has higher negotiating power is the median-sale-to-list-price ratio. 

The median-sale-to-list-price ratio represents how close a seller gets to their original asking price. The higher the ratio, the more money in sellers’ pockets. 

In 2020, NYC sellers were getting 92% of their asking prices. In Q3 of 2021, that number was close to 96%, signaling a more competitive market and higher negotiating power for sellers.

All top 10 of the best sellers’ markets in NYC have an above-average median-sale-to-list-price ratio of 98% or higher. This marks a clear advantage for sellers and little wiggle room for buyers. Take a look at the list of Top 10 Sellers’ Markets in NYC at the moment pulled from the NY Times article:

Brooklyn Neighborhoods Represent 9 out of Top 10 Sellers’ Neighborhoods in NYC

Only one neighborhood on the list is not located in Brooklyn—the Rockaways, located in Queens. In taking a look at the New York Times’ Top 20 Sellers’ Market list, you’ll notice a total of 18 places are taken up by Brooklyn neighborhoods, with Ridgewood in Queens coming in at 14. 

Brooklyn has become the go-to NYC borough for many home shoppers throughout the pandemic. It’s not hard to see why. 

Several Brooklyn neighborhoods have easy access to public transit, abundant green space, and a plethora of local amenities to enjoy. The borough is also known for its diverse population, lively nightlife, and no shortage of popular restaurants. Offering much of what Manhattan does at a smaller price tag, Brooklyn is an attractive place to live. 

Cobble Hill homes are at the top of the list, selling for close to $2 million with minimal opposition from buyers. For example, on November 4th 347 Henry Street had a listing that had a contract pending at $3.72 million. Sellers in the laid-back neighborhood were also the least likely to experience a price cut and sold the fastest among the majority of its competitors. 

In terms of spending the shortest time on the market, Cobble Hill is tied only with Downtown Brooklyn. Homes in both neighborhoods spent an average of only 35 days on the market before selling. Brooklyn ended Q3 2021 with its homes spending a median of 61 days on the market. 

Strong Competition allows Sellers to Stay Firm on Price

With median-sale-to-list ratios of 100%, the Rockaways, Clinton Hill, Prospect Heights, and Park Slope were among the most competitive markets in NYC. It’s probable that buyers are experiencing strong bidding wars in these areas with prices shooting up to astronomical highs, no doubt making NYC even less affordable.

Although stressful for buyers, these bidding wars are favorable for sellers, who likely won’t have to budge on their prices. With little room to negotiate on the selling price, buyers need to act fast in order to secure a property. This means homes stay on the market less time, overall and list at a higher price point.  A few examples of this are how Unit 2K in the Love Lane Mews went off the market on October 9th for $2.29 million and1406 Albemarle Road went off the market on October 6th for $3.199 million.

In the New York Times’ Top 20 list, days-on-the-market range from 35 in Cobble Hill and Downtown Brooklyn, to 69 in Boerum Hill. The median number of days on the market for all neighborhoods on the list is below 60, while the median number for homes citywide sits at 72.

For real estate developers and owners looking to invest in residential, Brooklyn is a promising area, that’s for certain. Sellers shouldn’t be too concerned with being able to get their homes off the market, and buyers should be prepared to go higher on their bids. As Brooklyn continues to grow and attract the attention of aspiring Brooklynites, we can expect stronger competition in the housing market. 

The post Brooklyn Is the Capital of New York’s Sellers’ Market  appeared first on CitySignal.

Condo and co-ops sales dominated the Manhattan real estate market last quarter. More homes were sold in Q3 of 2021 than at any other point in time over the past three decades. 

An impressive total of 4,523 Manhattan properties were closed on, compared to a record 3,939 in 2007. According to the latest Douglas Elliman report, the city of Manhattan experienced a 229% increase in sales, year-over-year. 

In the midst of Covid-19, most of the country saw city-dwellers shift to the suburbs in search of cheaper housing. “What we’re seeing right now is a catch-up,” says Jonathan J. Miller, author of the Elliman Report.

“All the suburbs were booming while Manhattan was seeing sales at half the normal rate last year. Now we’re seeing this massive surge.” 

Increased buyer activity can be attributed to mortgage-rates remaining at a record low and more people getting vaccinated. It’s also evident that competition is heating up, with bidding wars being the norm and smaller discounts being offered by sellers. 

For the past three months, the median sales price of a Manhattan home was $1,115,000, up 1.4% from last year and 8.8% from two years ago. Corcoran Brokerage noted that Manhattan sales surpassed $9.5 billion this third quarter alone, more than any quarter recorded thus far. 

While these numbers are great for a thriving real estate market in the Big Apple, it also signifies a more viciously competitive market for aspiring property owners. Now that the worst of the pandemic seems to be behind us, life has started to go back to normal for many New Yorkers. Investors and residents will soon make their way back to the city, but not without challenges. 

Despite demand having remained strong throughout most of the NYC marketplace, crucial inventory shortages persist, putting would-be owners in a tough spot. 

“Week after summer week, the number of contracts signed and listings ‘taken off the market’ exceeded listings brought to market. So, week after week, inventory shrank,” says Frederick Peters of Warburg Realty. 

There hasn’t been a rush of new listings filling up the market like there has been in previous years. Buyers are left waiting for more housing inventory that is yet to come. 

This shortage of inventory also means prices are not predicted to drop the way they usually would. CEO of Brown Harris Stevens, Bess Freedman, says that the dramatic price-drops witnessed over the past year are long gone. 

“Buyers can still find value, but the dramatic decline in both time on the market and negotiability make it clear that the fire sale has long ended,”

Freedman explained in the latest BHS report. 

At the end of Q3, 7,694 listings still remained active on the Manhattan real estate marketplace. So, not all is lost for prospective buyers. The sizable amount of remaining inventory marks a chance for buyers to bargain lower prices in the future. 

Chief Economist at BHS, Gregory Heym, believes the promising record of sales won’t last.

“This pace of sales can’t continue forever, as eventually the pent-up demand due to the pandemic will go away.”

By spring of next year, relatively normal levels of activity are expected to return.

The post Apartment Sales in Manhattan Hit 30-Year High  appeared first on CitySignal.