WHAT TO KNOW ABOUT WORKING WITH AFFLUENT BUYERS

Affluent Buyers

Institute For Luxury Home Marketing

Working with affluent buyers can be incredibly rewarding but comes with its own set of challenges. Higher net worth individuals don’t always have the same set of motivations as traditional buyers. Not just that, but luxury markets require their own set of research.

Whether you are new to working in more affluent markets or a seasoned professional, it’s critical to continually shift your mindset to understand and adapt to the market conditions and the requirements of these higher net worth individuals.

Here’s what you should remember when it comes to wealthy clients.

WHO ARE THE AFFLUENT?

In today’s market there are more affluent buyers than ever before. Wealth-X states that globally in 2015 there were 212,615 ultra high net worth individuals and predicts that by 2020 this number will have increased to 318,000; forecasting total wealth assets rising from $31 trillion in 2018 to $46.2 trillion by 2020. In the US, personal wealth of high net worth individuals grew by $8.5 trillion, 197 cities have a median home value of $1 million (up from 164 in 2017) and the number of sales above $1 million rose 6% in the last year.

The most common affluent buyers can be grouped in three categories.

  • The mass affluent: These high net worth individuals have at least $1 million in net worth and household earnings of about $125,000 or more annually.
  • High net worth individuals: These buyers have between $1 million and $30 million in investable assets and 2.5 million people have assets of $5 million plus.
  • Ultra high net worth individuals: Buyers who have at least $30 million in investable assets and their combined wealth in 2018 is approx. $31 trillion.

There are three additional categories that a minority of affluent buyers fall in: centi-millionaires, demi-billionaires and billionaires.

WHAT CHARACTERISTICS DEFINE WEALTHY BUYERS?

Affluent buyers might not necessarily stand out to you right away. Here are some characteristics of certain high net worth clients in the “mass affluent” and “high net worth” categories from above:

  • Save 15% to 20% of gross incomes.
  • Don’t lead luxurious lifestyles.
  • 76% are married.
  • 41% have children under 18 years old.
  • 24% are in top management.

Since some purchasers may be stretching to break into the luxury market, sometimes it’s a good idea to qualify buyers before you get deep into negotiations for a property. You can do this by tactfully suggesting they prepare a verification of assets from a financial institution in order to negotiate more effectively. Introducing qualified individuals to an appropriate lender can also help you get all your bases covered before you get too involved in any particular negotiation.

3 CONCEPTS TO REMEMBER WHEN WORKING WITH AFFLUENT BUYERS

Avoid beginner’s mistakes by keeping these core concepts about luxury clients in mind.

1. THE TRADITIONAL MARKET AND LUXURY AREN’T ALWAYS IN SYNC

If you’ve been a real estate agent for a while, you probably have some knowledge on the traditional market. While this is certainly helpful, don’t assume the luxury market is reacting to economic changes in the same way. Here are some ways to evaluate the luxury market:

  • Inventory levels: If they’re low, it could be difficult for clients on the lower end of this demographic to purchase, but when inventory’s high that’s a good time for new buyers to break in.
  • Watch for catalysts: Just like the traditional market, macro and micro events could influence pricing in the luxury market. These events might not necessarily be the same in each market, so don’t assume one catalyst will spell the same outcome for clients at every price point.
  • Divide your upper-tier marketing into price ranges: The upper tier of the marketplace isn’t homogenous. Within it there are several different price ranges for luxury homes that you’ll want to understand in your market. We recommend doing a price brand analysis that includes factors such as a listing’s average days-on-market, percentage of list price for which the property sold, the level of inventory within each price range and the number of sales by price range.
2. KEEP AN EYE ON CITIES THAT ARE SEEING GROWTH

It can be challenging to find new clients when breaking into the luxury market as an agent. That’s why it’s advantageous to keep an eye on cities that are seeing new luxury growth beyond the major, well-established luxury markets in the U.S.

Since new markets are always emerging, you’ll need to do your research about nationwide markets. Once you’ve identified some that you feel you might be able to break into as an agent, brainstorm how you can find clients in those markets. Perhaps clients in your location who are looking for a second property might find an emerging luxury market fits their strategy and you can help them purchase. Maybe you reach out to potential clients in emerging luxury markets with some expertise they want to take advantage of. The key is finding a strategy and putting it to work.

3. ALWAYS BE RESEARCHING

Many affluent buyers are leaders in their industries and well accustomed to staying attuned to changes in their own markets. They’ll want you to do the same if you’re going to work with them and expect to have intelligent conversations backed by industry data. If you’re not doing quality research you could find it harder to connect and retain affluent buyers. The Institute for Luxury Home Marketing provides members with insights on up to 60 luxury markets from across North America to help you stay on top of the game.

EDUCATE YOURSELF ON THE LUXURY MARKET

Succeeding with affluent buyers means understanding their motivations and how their specific luxury market is reacting to changes in the current political and economic landscape. Educating yourself on both these elements can help you prepare for success as a real estate agent to the wealthy.

Article from Institute For Luxury Home Marketing

Why Houses DO NOT Sell In A Strong Market

Strong Housing Market

The KCM Crew discovered that many homeowners find themselves asking the question, “If we’re currently in a strong real estate market, why won’t my house sell?” 

There are houses selling every single day because they are listed at the right price, have the right marketing plan, and are staged for the sale. If for some reason your home didn’t sell and you’re still motivated to get it sold, contact a local real estate professional who can help you figure out the reason your house isn’t selling!

Below are the 5 most common reasons why a listing contract will expire:

1. The Price

Sometimes when the market is hot, homeowners attempt to set their listing price higher. Their hope is that a motivated buyer will be willing to pay any price for a house in their desired neighborhood! Sellers must remember, though, that in today’s market a house must be sold twice; first to the buyer and then to their bank.

A buyer can agree to pay the homeowner’s asking price, but after the bank conducts their appraisal, the price might need to be adjusted. The bank will only give the buyer a mortgage for the value of determined in the appraisal.

Sellers must also keep in mind that today’s homebuyers are well-educated. Before they look to buy a house, they have already seen many houses online. They’ve done their research on the neighborhoods they are interested in, including information on the school districts in the area.

They will know if your house seems overpriced and will not waste their time considering it. This is why it’s so important to make sure that your home is priced right from day one on the market!

2. The Condition of the House

In many areas, builders are taking advantage of the lack of inventory of homes for sale by building new houses. These newly constructed homes create competition for existing homes in the market. For this reason, many homeowners are making renovations and updates to their homes to compete with the new construction in their marketplace.

Most agents recommend that homeowners declutter their houses before putting them on the market. Buyers want to be able to imagine themselves living in the home instead of focusing on the current homeowner’s decor.

It’s important to take care of the small problems like dripping faucets and torn screens, while also remembering to remove any posters hanging in your teenager’s bedroom. Making sure your home is in perfect condition will make buyers fall in love with it and will ultimately help you get the right price for your house!

3. Seller’s Motivation

Why did the seller put their house on the market in the first place? Is the seller’s motivation still the same as it was when they first listed?

If homeowners are really motivated to sell, they will make sure their houses are both priced right and in good condition. The seller’s motivation will push them to consider all offers and help them make the right decision for their family’s future.

4. Marketing Plan

Having a marketing plan is important! According to NAR’s 2018 Profile of Home Buyers and Sellers, 95% of buyers searched online for a home last year. The days of looking for a newspaper ad or yard sign in your preferred neighborhood are over.

If you want to sell your home, you need a real estate professional who understands your local market and knows how to promote your home online. Something as simple as using pictures taken by a professional photographer can make a huge impact in advertising your home!

5. Lack of Communication with Your Agent

Keeping an open line of communication with your agent is crucial in getting your home sold with the least amount of hassles, in the right amount of time, and for the right price! From the beginning, establish a continuous line of communication with your agent, and make sure you review your agreement often to see if any changes need to be made. For example, adjusting the selling price!

via The KCM Crew

“How’s the Market?” What’s Ahead for Real Estate

Real Estate Market

While no one can predict the future with certainty, most experts expect to see modest growth in the U.S. housing market for the remainder of this year and next. Inventory will remain tight, mortgage rates will continue to creep up, and affordability will remain a major issue in many parts of the country.

So what does that mean for home buyers and sellers? To answer that question, we take a closer look at some of the top indicators.

 

CONTINUED GROWTH IN HOUSING MARKET

There’s good news for homebuyers! In many markets across the country, prices have begun to stabilize after a period of rapid appreciation. Nationwide, home sales experienced a slight decline of 1.6 percent in the second quarter, primarily due to higher mortgage rates and housing prices combined with limited inventory.

However, buyers who have been waiting on the sidelines in anticipation of a big price drop may be disappointed. Demand remains strong across the sector and prices continue to rise. The Case-Shiller U.S. National Home Price Index reported a 6.2 percent annual gain in June, a healthy but sustainable rate of appreciation.1

In its latest Outlook Report, Freddie Mac forecasts continued growth in the housing market due to a strong economy and low unemployment rate, which dropped to 3.9 percent in July.

“The housing market hit some speed bumps this summer, with many prospective homebuyers slowed by not enough moderately-priced homes for sale and higher home prices and mortgage rates,” according to Sam Khater, Chief Economist at Freddie Mac. “The good news is, the economy and labor market are very healthy right now, and mortgage rates, after surging earlier this year, have stabilized in recent months. These factors should continue to create solid buyer demand, and ultimately an uptick in sales, in most parts of the country in the months ahead.”3

 

INVENTORY TO REMAIN TIGHT, NEW CONSTRUCTION MAY HELP

Experts predict that demand for housing will continue to outpace available supply, especially in the entry-level price range.

“Today, even as mortgage rates begin to increase and home sales decline in some markets, the most significant challenges facing the housing market stem from insufficient inventory accompanying unsustainable home-price increase,” said National Association of Realtors (NAR) Chief Economist Lawrence Yun in a recent release.

“The answer is to encourage builders to increase supply, and there is a good probability for solid home sales growth once the supply issue is addressed,” said Yun. Additional inventory will also help contain rapid home price growth and open up the market to prospective homebuyers who are consequently—and increasingly—being priced out. In the end, slower price growth is healthier price growth.”4

With so much demand, why aren’t more builders bringing inventory to the market? According to the National Association of Home Builders, a crackdown on immigration and tariffs on imported lumber have made home construction more difficult and expensive. Those factors—combined with the rising cost of land and increased zoning requirements—have put a damper on the industry overall.5

Still, there’s evidence that a modest rise in the rate of new building projects may be on the way. Freddie Mac predicts new housing construction will increase slightly after a stall last quarter.2And a recent report by Freedonia Focus Reports forecasts an annual increase in housing starts of 2.4 percent through 2022, led by an uptick in single-family homes.6 The boost in inventory should help drive sales growth and relieve some of the pent-up demand in tight markets.

While the current lack of inventory is generally preferred by sellers because it means less competition, a combination of high prices and rising interest rates has narrowed the pool of potential buyers who can afford to enter the market. Sellers should seek out real estate agents who utilize technologically-advanced marketing tactics to reach qualified buyers in their area.

 

AFFORDABILITY REACHES LOWEST LEVEL IN A DECADE

According to a recent report by Morgan Stanley, Americans are paying the most in monthly mortgage payments relative to their incomes since 2008.7And prices aren’t expected to come down any time soon.

“We believe that the current supply and demand environment will continue to push home prices higher, just at a decelerating pace,” said John Egan, Morgan Stanley’s Co-Head of U.S. Housing Strategy.

Fortunately, economists aren’t concerned about affordability levels triggering another housing crisis, as lending standards are much higher today than they were during the run-up before the recession. According to credit reporting agency TransUnion, the share of homeowners who made mortgage payments more than 60-days past due fell in the second quarter to 1.7 percent, the lowest level since the market crash.7

NAR Chief Economist Lawrence Yun agreed with this assessment in a recent statement. “Over the past 10 years, prudent policy reforms and consumer protections have strengthened lending standards and eliminated loose credit, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage and near record-low defaults and foreclosures, which contributed to the last recession.”4

 

MORTGAGE RATES EXPECTED TO CONTINUE RISING

The Federal Reserve has taken measures to help keep the housing market—and the overall economy—from overheating. It has raised interest rates twice this year so far, causing mortgage rates to surge in the first half of the year.

Economists predict that the rise in mortgage rates will continue at a more gradual rate through this year and next. The U.S. weekly average mortgage rate rose from 3.99 percent in the first week of January to as high as 4.66 percent in May. Freddy Mac forecasts an average rate of 4.6 percent for 2018 and 5.1 percent in 2019.2

The good news is, mortgage rates still remain near historic lows and a whopping 14 points below the recorded high of 18.63 percent in the early 1980s.8Buyers who have been on the fence may want to act soon to lock in an affordable interest rate … before rates climb higher.

“Some consumers may be thinking that because mortgage rates are higher than they were a year ago, maybe I should just wait until rates fall down again,” said NAR’s Chief Economist Lawrence Yun in a recent speech. “Well, they will be waiting forever.”9

  

WHAT DOES IT ALL MEAN FOR ME?

If you’ve been waiting to buy a home, you may want to act now. A shortage of available homes on the market means prices are likely to keep going up. And a lack of affordable rental inventory means rents are expected to rise, as well.

If you buy now, you will benefit from appreciating property values while locking in an historically-low interest rate on your mortgage. Waiting to buy could mean paying more for your home as prices increase and paying higher interest on your mortgage as rates continue to rise.

And if you’re in the market to sell your home, there’s no need to wait any longer. Prices have begun to stabilize, and rising interest rates could decrease the number of available buyers for your home. Act now to take advantage of this strong seller’s market.

 

LET’S GET MOVING

While national real estate numbers and predictions can provide a “big picture” outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.

If you have specific questions or would like more information about where we see real estate headed in our area, let us know! We’re here to help you navigate this changing real estate landscape

 

Sources:

  1. S&P Dow Jones Indices Press Release –
    https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/766551_cshomeprice-release-0828.pdf?force_download=true
  2. Freddie Mac Outlook Report –
    http://www.freddiemac.com/research/forecast/20180827_strong_economic_growth.html
  3. DSNews –
    https://dsnews.com/daily-dose/08-28-2018/freddie-weighs-in-on-housing-market
  4. PR Newswire –
    https://www.prnewswire.com/news-releases/realtors-chief-economist-reflects-on-past-recession-whats-ahead-for-housing-300702632.html
  5. CNN Money –
    https://www.keyt.com/lifestyle/where-is-the-us-housing-market-headed-4-things-you-need-to-know/787471572
  6. PR Newswire –
    https://www.prnewswire.com/news-releases/us-housing-starts-to-rise-2-4-yearly-to-2022–300711989.html
  7. Business Insider –
    https://www.businessinsider.com/housing-affordability-slowing-market-sales-2018-8
  8. Value Penguin –
    https://www.valuepenguin.com/mortgages/historical-mortgage-rates
  9. Times Free Press –
    https://www.timesfreepress.com/news/business/aroundregion/story/2018/aug/14/despite-prospects-higher-mortgage-rateshousin/476979/

Questions Before A FSBO Disaster

Don't FSBO
 

Eight soul-searching questions homesellers should ask before going FSBO… 

Inman: Let’s face it, selling a home without a real estate agent is just plain risky.  A FSBO jeopardizes time, money, and most importantly, an advantageous outcome.

But, despite research that shows that shows that FSBO listings sell for about 5.5 percent less than comparable properties sold through the MLS, some sellers still want to go the do-it-yourself route, forgoing the cost of commission and the aid of an agent.

In reality, a listing agent brings more to the table than most homeowners realize. The next time you try to turn a FSBO, point them to these critical questions and remind them of these eight invaluable benefits agents offer.

1. Knowledge

What you don’t know can absolutely hurt you, and it can come back to bite you even worse.

A real estate agent’s knowledge is priceless.

Agents know what the internet doesn’t tell consumers, and they can provide insight that consumers can’t get online.

Agents know how to make sense of the data and the entire selling process so that sellers and their home are fully prepared before hitting the market.

2. Time

Everyone’s time is valuable, but do sellers truly have time to attempt to play the real estate agent role?

Are sellers available to show their home in a safe manner, and is it accessible on a moment’s notice?

How will sellers handle showings when they are on vacation for a week and there are cash buyers in town?

Can you say lost opportunity?

Do sellers have the time to devote to scheduling and managing showing appointments? What about feedback? Do sellers know what questions to ask and the best way to reach agents to elicit a response?

Are they able to aptly respond to agent and buyer questions, concerns and objections in a manner that will help overcome the hesitation to move forward?

Are sellers able to offer solutions to buyer-perceived obstacles with the property? Can they furnish expert resources such as architects, contractors, designers, engineers or other experts?

3. Presentation

Image is everything when it comes to real estate. You never get a second chance to make a first impression, and the same goes for putting a property up for sale.

Do sellers know how to properly prepare their home for sale, and do they know what it needs or doesn’t need?

Are they able to stage it or bring in someone who can? What about professional photography, drone, video and 3D? Are they able to orchestrate photo and video shoots with ease and know who to contact? What about photo styling and having an eye for how a space will translate on camera?

4. Marketing

How are sellers going to market their property? Do they know who the buyer demographic is for their home and/or neighborhood? How do sellers reach buyers?

Do sellers have access to predictive analytics or know how to strategically promote the listing to other agents in the community and on social media?

What kind of print media is appropriate for the property, and how will sellers have that created and printed? What agents are most likely to have buyers for the home?

Are they local or regional, or must sellers reach out nationally or internationally?

In real estate, the world doesn’t seem so vast as agent networks are strong, and six degrees of separation often ensues when an agent in New York City reaches out to his or her agent contact in China about a buyer for a property.

5. Negotiation experience

So the sellers received an offer. Now what? How do they respond? What do they look for in that purchase agreement?

In this hot seller’s market that many are experiencing right now, are sellers prepared to take multiple offers and milk a bidding war to get the best deal?

What terms and conditions could be disadvantageous to the sellers? What costs should or shouldn’t they incur? Do they know how to negotiate to keep the buyer in the game versus walking away?

How do they strike a delicate balance between protecting their interests as a seller and working with the buyer toward the goal of putting an agreement together?

Here’s where what sellers don’t know can hurt them the most.

6. Inspection and repair know-how 

This is one of the most difficult parts of a real estate transaction, even for real estate professionals. Do sellers know what inspections they should expect?

How should they handle items that are flagged as needing repair or replacement by an inspector? What kinds of repairs are usually done by a seller?

Do they have a roster of repair people at the ready who can come out on a moment’s notice?

Hint: It’s typically not who you find in the Yellow Pages or by doing a Google search.

If sellers don’t know better, they could find themselves making an improvement, not a repair on their home for a new buyer.

7. Transaction management

So the home is under contract with a buyer. What do sellers do next? Do they know who they need to be in contact with?

Who is going to be handling the closing? What items should they be following up on? How will they handle challenges like the property not appraising for the contract sales price or the deal potentially derailing due to home inspection issues?

What happens if the buyer’s financing is shaky?

8. Closing finesse

Do sellers know what the closing protocol is in their market and what the expectations are? When do sellers have to be completely moved out of the house?

In some markets, that means by the day of closing, and in others, the seller has possession for a few days after closing.

What condition are sellers expected to leave the home in? How do they handle unexpected, last-minute issues that may arise: the movers damage the home when moving belongings out, the air conditioner is on the fritz, or worse yet, the moving crew doesn’t show up when they are supposed to.

Selling a home without an agent is like throwing caution to the wind along with the commission.

The perceived savings can come back to bite sellers in terms of uninformed decisions and costly mistakes that — in the long run — end up costing sellers more money than if they would have used an agent to protect their interests and help them justify their home’s value in the first place.

Thanks to Inman contributor, Cara Ameer a broker associate and Realtor with Coldwell Banker Vanguard Realty in Ponte Vedra Beach, Florida. 

Thinking of Relocating?

Steps for Relocating

7 Steps to a Seamless Move

Whatever your reasons are for relocating to a new area, the process can feel overwhelming.

Whether you’re moving across across town or across the country, you’ll be changing more than your address. Besides a new house, you may also be searching for new jobs, schools, doctors, restaurants, stores, service providers and more.

Of course you’ll need to pack, make moving arrangements, and possibly sell your old home. With so much to do, you may be wondering: Where do I start?

In this guide, we outline seven steps to help you get prepared, get organized, and get settled in your new community. Our hope is to alleviate the hassle of relocating—so you can focus on the exciting adventure ahead

  1. Gather Information

If you’re unfamiliar with your new area, start by doing some research.1 Look for data on average housing prices, demographics, school rankings and crime statistics. Search for maps that illustrate local geography, landmarks, public transportation routes and major interstates. If you’re moving across the country, research climate and seasonal weather patterns.

Check out local newspapers and blogs for information on political issues and developments that could impact your new community. You may also want to search for online forums and Facebook Groups relevant to your new area. These can be a great place to find information, ask questions and just observe local attitudes and outlooks.

If you’re relocating for a job, find out if your new employer offers any relocation assistance. Many large corporations have a designated human resources professional to assist employees with relocation efforts, while others may contract this service out to a third party. Some employers will also cover all or a portion of your relocation and moving costs.

By gathering this information up front, you’ll be better prepared to make informed decisions down the road.

Let us know if you’d like assistance with your information gathering process. We have a wealth of knowledge about this area, and we keep a number of reports and statistics on file in our office. We would be happy to share information and answer any questions you may have.

  1. Identify Your Ideal Neighborhoods

Once you’ve sufficiently researched your new area, you can start to identify your ideal neighborhoods.

The first step is to prioritize your “needs” and “wants.” Consider factors such as budget; commute time; quality of schools; crime rate; walkability; access to public transportation; proximity to restaurants, shopping, and place of worship; and neighborhood vibe.

If possible, visit the area in person to get a feel for the community. If you’re comfortable, strike up conversations with local residents and ask about their experiences living in the area.

Still not sure which neighborhood is the best fit for you and your family? Contact a local real estate agent for expert assistance. It’s usually the most efficient and effective way to narrow down your options.

We provide neighborhood assessments and advice as a free service if you’re relocating to our area. Or, if you’re moving out of town, we can refer you to a local agent who can help.

  1. Find Your New Home (and Sell Your Old One)

Once you’ve narrowed down your list of preferred neighborhoods, it’s time to start looking for a home. If you haven’t already contacted a real estate agent, now is the time. They can search for current property listings that meet your needs, typically at no cost to you.

Create another list of “needs” and “wants,” but this time for your new home. Include your basic requirements for square footage, bedrooms and bathrooms, but also think about what other factors are important to you and your family. An updated kitchen? A large backyard? Double sinks in the master bathroom?

Narrow your list down to your top 10 and prioritize them in order of importance.2 This will give you a good starting point to begin your home search. Unless you have an unlimited budget, don’t expect to find a home with everything on your list. But having a prioritized list can help you (and your agent) understand which home features are the most important, and which ones you may be willing to sacrifice.

If you already own a home, you’ll also need to start the process of selling it or renting it out. A real estate agent can help you evaluate your options based on current market conditions. He or she can also give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one.

Your agent can also advise you on how to time your sale and purchase. While some buyers are able to qualify for and cover the costs of two concurrent mortgages, many are not. There are a number of options available, and a skilled agent can help you determine the best course given your circumstances.

We would love to assist you if you have plans to buy or sell a home in our area. Please contact us to schedule a free consultation so we can discuss your unique needs and devise a custom plan to make your relocation as seamless as possible. If you’re relocating outside of our area, we can help you find a trusted agent in your new city.

  1. Prepare for Your Departure

While everyone considers packing a fundamental part of moving, we often overlook the emotional preparation that needs to take place. If you have children, this can be especially important. Communicate the move in an age-appropriate way, and if possible take them on a tour of your new home and neighborhood. This can alleviate some of the mystery and apprehension around the move.4

Allow yourself plenty of time to pack up your belongings. Before you start, gather supplies, including boxes, tape, tissue paper and bubble wrap. Begin with non-essentials—such as off-season clothes or holiday decorations—and sort items into four categories: take, trash, sell and donate/give away.5

To make the unpacking process easier, be sure to label the top and sides of boxes with helpful information, including contents, room, and any special instructions. Keep a master inventory list so you can refer back to it if something goes missing.

If you will be using a moving company, start researching and pricing your options. To ensure an accurate estimate of your final cost, it’s best to have them conduct an in-person walkthrough. Make sure you’re working with a reputable company, and avoid paying a large deposit before your belongings are delivered.6

If you plan to drive to your new home, map out the route. And, if necessary, make arrangements for overnight accommodations along the way. If driving is not a good option, you may need to have your vehicles transported and make travel arrangements for you, your family and your pets.

Lastly, if you will be leaving friends or family behind, schedule final get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.

Looking for a reputable moving company? We are happy to provide referrals, as well as recommendations on where to procure packing supplies in our area.

    5.  Prepare for Your Arrival

To make your transition go smoothly, prepare for your arrival well before moving day. Depending on how long your belongings will take to arrive, you may need to arrange for temporary hotel accommodations. If you plan to move in directly, pack an “essentials box” with everything you’ll need for the first couple of nights in your new home, such as toiletries, toilet paper, towels, linens, pajamas, cell phone chargers, snacks, pet food and a change of clothes.7 This will keep you from searching through boxes after an exhausting day of moving.

Arrange in advance for your utilities to be turned on, especially essentials like water, electricity and gas. (And while you’re at it, schedule a shut-off date for your current utilities.) Update your address on all accounts and subscriptions and arrange to have your mail forwarded through the postal service. If you have children, register them for their new school or daycare and arrange for the transfer of any necessary records.

You may want to have the house professionally cleaned before moving in. And if you plan to remodel, paint or install new flooring, it’s easier to have it done before you bring in all of your belongings.8 However, it’s not always feasible without someone you trust locally who can supervise. Another option is to keep a portion of your things in storage while you complete some of these projects.

If there are no window treatments, you may need to install some (or at least put up temporary privacy film), especially in bedrooms and bathrooms. And if appliances are missing, consider purchasing them ahead of time and arranging for delivery and installation shortly after you arrive. Just be sure to check measurements and installation instructions carefully so you aren’t stuck with an appliance that doesn’t fit or that requires costly modifications to your new home.

If you own a car, check the requirements for a driver’s license and vehicle registration in your new area and contact your insurance company to update your policy.8 If you will rely on public transportation, research options and schedules.

If you’re relocating to our area, we can help! We offer “VIP Relocation Assistance” to all of our buyer clients. Contact us for a list of preferred hotels, utility providers, housekeepers, contractors and more!

  1. Get Settled In Your New Home

While staring at an endless pile of boxes can feel daunting, you should take advantage of this opportunity to make a fresh start. By creating a plan ahead of time, you can ensure your new house is thoughtfully laid out and well organized.

If you followed our suggestion to pack an “essentials box” (see Step 5), you should have easy access to everything you’ll need to get you through the first couple of nights in your new home. This will allow you some breathing room to unpack your remaining items in a deliberate manner, instead of rushing through the process.7

If you have young children, consider unpacking their rooms first. Seeing their familiar items can help them establish a sense of comfort and normalcy during a confusing time. Then move on to any items you use on a daily basis.10

Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favorite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.11

As you unpack, make a list of items that need to be purchased so you’re not making multiple trips to the store. Also, start a list of needed repairs and installations. If you have a home warranty, find out what’s covered and the process for filing a service order.

Although you may be eager to get everything unpacked, it’s important to take occasional breaks. Have some fun, relax and explore your new hometown!

Need help with unpacking, organizing or decorating your new home? Contact us for a list of recommended professionals in our area. And when you’re ready to start exploring local “hot spots,” we’d love to fill you in on our favorite restaurants, stores, parks and other attractions!

  1. Get Involved In Your New Community

Studies show that moving can lead to feelings of loneliness and depression. People who have recently moved tend to be isolated socially, more stressed, and less likely to participate in exercise and hobbies. However, there are ways to combat these negative effects.12

First, get out and explore. In a 2016 study, recent movers were shown to spend less time on physical activities and more time on their computers, which has been proven to lead to feelings of depression and loneliness. Instead, get out of your house and investigate your new area. And if you travel by foot, you’ll gain the advantages of fresh air and exercise.12

Combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship or volunteer for a cause. Don’t wait for friends to come knocking on your door. Instead, go out and find them.

Finally, be a good neighbor. Make an effort to introduce yourself to your new neighbors, invite them over for coffee or dinner, and offer assistance when they need it. Once you’ve developed friendships and a support system within your new neighborhood, it will truly start to feel like home.

Want more ideas on how to get involved in your community? Contact us for a free copy of our report, “Welcome Home: 10 Tips to Turn Your Neighborhood Into a Hometown Haven.”

LET’S GET MOVING

While moving is never easy, these seven steps offer an action plan to get you started on your new adventure. To avoid getting overwhelmed, focus on one step at a time. And don’t hesitate to ask for help!

In a 2015 study, 61 percent of participants ranked moving at the top of their stress list, above divorce and starting a new job.13 But with a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.

We specialize in assisting home buyers and sellers with a seamless and “less-stress” relocation. Along with our referral network of movers, handymen, housekeepers, decorators, contractors and other service providers, we can help take the hassle and headache out of your upcoming move. Give us a call or message us to schedule a free, no-obligation consultation!  727-895-6200

Sources:

  1. You Move Me – https://www.youmoveme.com/us/blog/105-tips-for-a-successful-relocation
  2. HouseLogic – https://www.houselogic.com/buy/house-hunting/must-have-items/
  3. Livestrong – https://www.livestrong.com/article/436651-the-effects-of-sunlight-fresh-air-on-the-body/
  4. Parents Magazine – https://www.parents.com/parenting/money/buy-a-house/make-moving-easier-on-you-and-your-kids/
  5. The Spruce – https://www.thespruce.com/starting-to-pack-for-your-move-2436470
  6. Moving –https://www.moving.com/tips/hiring-quality-movers/
  7. The Spruce – https://www.thespruce.com/unpack-your-entire-home-2435815
  8. HouseLogic –https://www.houselogic.com/buy/moving-in/before-you-move/
  9. HGTV – https://www.hgtv.com/design/real-estate/moving-checklist
  10. Moving – https://www.moving.com/tips/how-to-unpack-and-organize-your-house/
  11. ASPCA – https://www.aspca.org/pet-care/general-pet-care/moving-your-pet
  12. Psychology Today – https://www.psychologytoday.com/us/blog/is-where-you-belong/201607/why-youre-miserable-after-move
  13. The Daily Express – https://www.express.co.uk/news/uk/574171/Divorce-stressful-moving-home

Home Inspections: What to Expect

Home Inspections

Keeping Current Matters:  So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a clean home inspection.

This contingency allows you to renegotiate the price you paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. HGTV recommends that you consider the following 5 areas when choosing the right home inspector for you:

  1. Qualifications – find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.
  2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report, the better in most cases.
  3. References – do your homework – ask for phone numbers and names of past clients who you can call to ask about their experiences.
  4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that continued training and education are provided.
  5. Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human after all, and it is possible that they might miss something they should have seen.

Ask your inspector if it’s okay for you to tag along during the inspection, that way they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more!

Bottom Line

They say ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.

via The KCM Crew

EDGE District Designated Florida Main Street Program of the Month

EDGE DistrictSecretary of State Ken Detzner announced yesterday that EDGE District Main Street in St. Petersburg has been designated the May 2018 Florida Main Street Community of the Month. Communities are selected based on their development achievements and participation in the Florida Main Street Program.

“The EDGE District has made a big impact in the four years it has been a Main Street program,” said Secretary Detzner. “Their Main Street team has worked hard to preserve the community’s history and to create a vibrant district with a variety of retail, restaurants and activities.”

Since its designation in 2014, the EDGE District has received eight awards for outstanding programs, business and volunteers.

EDGE is an acronym for “Entertainment, Dining, Galleries and shops, Etcetera.” Nestled between First Avenue North and Central, from MLK to 16th Street, the district encompasses about nine blocks. An area once almost deserted has now become a place with dozens of active businesses ranging from galleries and shops to restaurants and bars.

Read the full press release here

Active communities are chosen on a monthly basis based on their developmental achievements and participation in thFlorida Main Street Program.

Thinking Of Selling Your Home? Why You Need A Pro In Your Corner

Selling Your Home - Hire A Pro

Keeping Current Matters: With home prices on the rise and buyer demand strong, some sellers may be tempted to try and sell their homes on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The termite company if there are challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the CO permits mentioned above
  • The buyer’s buyer in case there are challenges with the house your buyer is selling
  • Your bank in the case of a short sale

Bottom Line

The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Please give us a call and see the difference we can make in easing the process of selling your home.  ForeSite Residential Real Estate 727-895-6200 

via Keeping Current Matters

5 Reasons Why To Sell Your Home This Spring!

 

Sell Your Home This Spring

Here are five reasons the KCM Crew says listing your home for sale this spring makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory has declined year over year for the last 32 months and is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enoughhomes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

Historically, the average number of years a homeowner stayed in their home was six but has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 45 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly, AND you’ll be able to find a premium home to call your own!

Prices are projected to appreciate by 4.8% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Neighborly Downtown St Petersburg

Vinoy Club Near Downtown St Petersburg

By Nick Stubbs, Tampa Bay Times:  If you like what big cities have to offer but value quiet, friendly and neighborly communities, then the downtown area of St. Petersburg may have it all.

The city, founded in 1888, is famous for surprising people with its art culture, abundance of historic homes, brick streets, hexagon- paved sidewalks, decorative iron street lamps, and shady oaks. Many of the neighborhoods are a short walk from downtown and are on the U.S. National Register of Historic Places. They are easily identified by the word “historic” preceding their names. Their charm and character have wooed many.

A little farther from the downtown hub, but still in biking distance, are neighborhoods like Magnolia Heights and Snell Isle to the north, where many of the homes were built between the 1950s and 1970s. To the souththere’s Bartlett Park, Harbordale and Cromwell Heights, with a mix of mostly older homes. These outliers are nearly asaccessible to downtown, thanks to networks of sidewalks and biking trails. In all directions there are many small studios, larger apartments and condos for rent for those not ready to make the plunge into ownership.

All offer an eclectic city lifestyle without the drawbacks associated with big cities, said Chris Steinocher, president and CEO of the St. Petersburg Area Chamber of Commerce. It has all the amenities and cultural draws of a big city, but “it works because its scale is not intimidating.” “We are blessed,” he said, adding that St. Petersburg is the ‘largest little city on Earth.”

Steinocher lives in the historic Crescent Lake community just north of downtown. To the east is the Historic Old Northeast neighborhood, established in 1911; to the west is Euclid Place-St. Paul’s, a historic district nearly as old.

What’s great about these neighborhoods is that each has a local park or public green space, and everything downtown has to offer is within biking or walking distance. Steinocher said it’s the reason the area is drawing so many younger residents.

“It’s unlike anything you’ll find anywhere in Florida,” Steinocher said. “It’s a place where you can divorce your car; it’s pedestrian- safe and bike-friendly.”

Katie Shotts, chief operating officer of the Pinellas Realtor Organization, agrees. She bought a home in Shore Acres north of downtown. She can’t part with her car because she works in Clearwater, but gets to downtown St. Pete by the bike route through Snell Isle and merges onto Beach Drive heading south.

Shotts did a lot of research to whittle her dream community down to St. Pete. “I run, bike and swim and this area is extremely pedestrian friendly,” she said. “There’s always a lot of people out (walking or biking) and there is a lot of respect for pedestrians among drivers.”

But there is a lot more about living near downtown that helped close the deal, said Shotts. “It’s a strong community with people who really care about their neighborhoods—people who care about their quality of life,” she said. Socializing with fellow walkers and bikers brings people together, Shotts said, but in addition to all the people to see, there are places to go—plenty of them.

Steinocher notes that the city has six museums, hosts the largest Salvador Dali collection outside Europe and is home tothe Florida Orchestra and Mahaffey Theater. It also is home to the Tampa Bay Rays MLB team and the Tkmpa Bay Rowdies soccer team, and SunkenGardens. Artists are drawn to the “Burg” forits architecture, its “scene” and its scenery.Downtown buildings themselves are art canvases adorned with murals; there’s avibrant nightlife; and

the downtown region is overflowing with microbreweries, restaurants and shops. Some 1,000 events are held every year, drawing as many as 10 million visitors.

Many residents are former visitors who discovered the charm of the downtown area. Some of those areas include:

• Historic Roser Park is just south of downtown. Founded in 1911 by Charles Roser, inventor of the Fig Newton, upon entering the enclave one is transported to another world of rolling hills that emerge like magic from the surrounding flat topography.

• Old Southeast was officially established in the 1950s and has some 1,300 residents. It surrounds picturesque Lassing Park on Tampa Bay.

• Historic Kenwood is a 375acre neighborhood and an artists’ enclave with ornamental street lights and Craftsman bungalows dating from 1913. Many of them have been highlighted in the community’s annual Bungalow Fest.

• The Round Lake Historic District is six blocks west of Vinoy Park. With its 1,000 historic buildings, it was named a U.S. historical district in 2003.

Many other neighborhoods, newer and older, surround downtown. Buyers and renters can expect most single-family homes to date anywhere from around the turn of the century to the 1970s or ’80s. There are limited numbers of new homes and townhomes on the market at any given time, along with newer condos and apartments.

The bad news for buyers? Downtown-area residents are settled into their “forever homes” and availability can be a problem, said Brad Billings, a Realtor with Coldwell Banker Residential Real Estate in St. Pete. “The biggest problem is there just isn’t enough inventory,” he said. “Downtown is exciting and vibrant; those already here don’t want to leave, but buyers keep coming.”

Buyers need to be preapproved, know what they want and be able to pounce when they find it, said Billings. Be prepared for potentially protracted house hunting, he warned. One of his clients is renting while searching for a home, even though it could mean having to pay a penalty for breaking a rental lease when the right home comes along. Another client waited two days to think about a deal and lost out.

The market will likely soften for sellers going forward, and there are a couple of new townhome developments in the works, Billings adds. There also are opportunities to buy older homes that can be approved for demolition to build a new house. He advises working with a Realtor to ensure access to the newest listings, and discourages snoozing.

“Move quickly” when you find what you like, he said. Right now, “the days of thinking about it overnight are over” when it comes to the “hot” downtown St. Petersburg market.

via Tampa Bay Times’ correspondent Nick Stubbs