My Advice for Homebuyers in Today’s Market

Here’s a great example of why you should buy a home sooner than later.

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Does it make sense to buy in today’s market? I’ve been hearing this question a lot lately, and I wanted to offer insight into why my answer is a resounding, “Yes!”

I recently saw a colleague of mine post about a house they sold in 2012 for $360,000; it’s a gorgeous home. The exact same house, with just a few updates, just sold for $692,000. That’s $330,000 worth of appreciation in just about 10 years. 

Now, the home didn’t increase in value by $30,000 every year. In the last few years, home prices have grown exponentially. Most of that value came within the last 12 to 18 months. The house might have gone from $450,000 to $692,000 during that time. 

I didn’t see this coming, and I don’t think anyone in their right mind would have thought the real estate market would be rebounding like this amidst a global pandemic.

"In the last few years, home prices have grown exponentially."

 

So does it make sense to buy in this market? Absolutely; real estate is a fantastic long-term investment. I guarantee that $692,000 home is going to sell for over a million dollars one day. The question is, do you want to be involved in a great investment like that?

If you have any real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon. 

Zillow Made a Mistake Buying Homes

Here’s why Zillow shuttered their home-buying program at the end of 2021

Something happened at the end of 2021 that you might not have heard about. Many people visit one platform when they look for available properties. The name of that platform is Zillow, and for the last few years, they have been not only marketing homes but also buying them.


Zillow would make an offer on a property without seeing it, close that transaction, and send someone out to renovate it. They were buying and rehabbing houses all over the country, but at the end of 2021, they shut down that program.

At the end of the day, nothing can replace a seasoned agent.

It’s funny because clients used to bring up Zillow’s estimate at listing appointments. To me, those numbers felt like they were as much as 25% over or 35% below the actual price. It was interesting when Zillow announced that they would start buying properties based on these estimates.


After a couple of years of trying this, it turns out Zillow was losing money on almost every house they bought. They obviously hadn’t gone the right way with their algorithm. At the end of the day, nothing can replace a seasoned agent who knows the market, lives in the area, and works in it every day.


On top of that, every market is different, and every market changes. It can depend on what’s in the newspaper that day or what announcements were recently made. There are just too many pieces for an algorithm to put it all together. It was interesting to see if Zillow could succeed, but they couldn’t, and that’s why you still need to depend on your local experts.


If you have any questions, or if you truly want to know what your home is worth, please call or email me. I’d be happy to do a home valuation for you.

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We’re Seeing More Low Appraisals Lately

My experiences with appraisals not meeting the contract price.

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When you sell your house and the appraisal does not meet the contract price, what do you do? This has happened to me two or three times in the last month, despite only happening to me five other times in the last 16 years. For it to happen three times in the last month is a big deal. The great news was that I still closed all three transactions. One of the properties sold for around $195,000, although the appraisal came in at $185,000. The seller actually purchased that home from us two years before the close date for $150,000, so they made quite a bit of money. When the appraisal came in $10,000 under, we went back, renegotiated the contract, and ended up only moving about $5,000 total. I had another deal that came in $40,000 under the appraised value. I called the buyer and asked them how they would like to handle it. They said, “We love the house and we want it. We really don't care what the appraisal says. We have the funds to pay the difference.” So we went to closing with an appraisal lower than the contract price and the buyer was still thrilled with the transaction.

"These are the kind of sticky situations that you run into when selling your house."

Those were two great situations for the buyer and the seller. Everybody was happy, but what happens if the appraisal comes in under contract price and the buyer doesn't want to move forward? You have a couple of other options. In today's market, I'd be fine with that happening if it was my property. I would put it right back on the market and probably sell it for a little bit more depending on what was going on in your area. These are the kind of sticky situations that you can run into when selling your house. I've seen more people out there sell their house as a FSBO listing during these times because they think it’s going to be incredibly easy in a seller’s market. It's one thing to sell a house, but it's another thing entirely to close the house. When it comes to buying and selling homes, our team's here for you. We’ve closed over 3,000 transactions in the last 16 years, and we’ll do whatever it takes to make sure you're taken care of. If you’re looking to buy or sell a home, don’t hesitate to reach out to us. We'll be happy to help you.

A Brief Message About Home Preparation

How do you prepare your home for sale in today’s market?

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Homes have been selling with multiple offers, many of them getting well over their asking prices. Truth be told, I don’t know how long these market conditions will last, but I don’t see them slowing down anytime soon. 

That said, it’s still a good idea to get your home ready for the market. Buyers may be hungry for properties, but that doesn’t necessarily mean that they’ll make offers on homes they deem in poor condition. Walk around your home and look for any cosmetic issues that need to be addressed. Cosmetic issues could include paint, floors, countertops, and so on. Be sure to touch up any scratches or scuffs.

"It may take some time for subcontractors to get around to the small jobs."

You should know, however, that subcontractors in our area are very busy, so if you don’t have any major renovation plans, it may take some time for them to get around to the small jobs. I also can’t tell you exactly how much you’ll be able to recoup in this market, but you’ll probably be able to price your home at a number you’re comfortable with and still leave enough money on the table for your buyer to go in and make the changes they want.

If you’re in the market to sell a home or have questions about specific ways to prepare your home for the market, please reach out to us. We’re here to help.

My Advice for Handling Multiple Offers

Here’s my advice on how to handle multiple offers in this market.

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Whether you’re listing your home in Northeast Arkansas or anywhere else in the U.S., there’s one trend I keep seeing over and over: If the home is clean, neat, and ready to sell, most of the time it’ll get multiple offers. What’s the best way to handle multiple offers, though?

For starters, hopefully your listing agent lets other agents know that there are multiple offers on the table. Sometimes this scares other buyers off because they don’t want to get into a bidding war. However, we’ve found that after these same buyers have lost out on a house or two (or three), they’re willing to step up to the plate because they understand they’ll have to engage in a bidding war if they want a house in this market. 

"When you have multiple offers, why not play them against each other?"

That said, my team and I use the ‘highest and best’ method when handling multiple offers. Let’s say one of our sellers gets three offers for their home: one for $10,000 over asking price, one for $11,000 over asking price, and one for $12,000 over asking price. Let’s also imagine that one of these offers is an excellent offer—an offer the seller might even be willing to accept. When you have multiple offers, though, why not play those offers against each other?

In this case, we’d contact each agent, tell them we have multiple offers on the table, and give them notice that we’ll go over all the offers at, say, 5 p.m. If they want to leave their offers as they are, that’s fine, but now they know there are multiple offers on the table, and there’s a good chance the seller won’t counter any of them. They’ll probably just accept one of them because they’re all at or above list price. Now their client has the opportunity to put their best foot forward. 

Three to six months ago, if a buyer would’ve written an offer for a property, they probably would’ve gotten a counteroffer detailing which terms the seller would accept. Nowadays, the seller doesn’t have to do that. You can basically say that you have other offers and need the highest and best brought to you by a certain time. At that point, you can go over the offers and pick whichever one suits your needs. 

If you’d like to know more about juggling multiple offers, know what your home is worth in this market, or are thinking of buying a home, don’t hesitate to reach out to me. I’d be happy to help you.

What Low Inventory Means for Buyers & Sellers

Here’s what our low inventory means for buyers and sellers.

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What’s the latest news from our Jonesboro real estate market? The biggest challenge we’re

facing is inventory. There aren’t enough homes on the market to meet demand. That means

if a home comes on the market that you’re interested in and fits all your criteria, you need to jump

on it. You have to get after it, because if you don’t, someone else will. If you’re a seller, this means

you can probably ask whatever you want in terms of price. Due to this lack of inventory, we’re

seeing houses sell for more money than I’ve ever seen before. 

Another reason resale home prices are surging is that lumber prices for new construction homes

have gone through the roof. In fact, just about everything you see on a new construction home has

increased in price dramatically. If new construction homes cost between $140 and $150 per square

foot, sellers who perhaps paid $120 per square foot for their current homes can now ask for $125

to $130 per square foot.

“ 

      I always used to say that real life is not like HGTV, but guess what? Now it is.

”

This obviously isn’t great news for buyers, but the silver lining is that you can lock in a ridiculously low interest rate right now. It seems like I’ve been talking about this for the past 15 years. Every time we think rates can’t possibly get any lower, they do. We’re seeing 15- and 30-year fixed rates as low as 2.9%, 2.5%, and even 2.1%. Although you’ll have to pay more for a home, some of the cost is offset by how low your monthly mortgage payment will be. 

In addition to being ready to jump on the next suitable listing, have your pre-qualification letter in-hand when you visit it because there’s an agent in front of you and an agent behind you showing that home. We recently listed a couple of homes that literally had lines outside their doors mere hours after going live on the market. I never thought I’d see that here in Jonesboro. I always used to say that real life is not like HGTV, but guess what? Now it is. As always, make sure you get in touch with a great real estate agent so they can guide you through the home-buying process. 

If you’d like to know what your home is worth or have questions about our Jonesboro market, don’t hesitate to reach out to me. I’d love to help you.

Can You Still Buy or Sell Property at the End of the Year?

Is it a good idea to buy or sell during the later months of the year? Let’s find out.

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Many people assume that it’s a bad idea to buy or sell property in the later months of the year, but this isn’t actually the case.

In fact, November 2018 has been our team’s biggest month of the year in terms of total transactions—despite interest rates being at a seven-year high.

There are still plenty of opportunities for buyers and sellers in the fall and winter market. From a seller’s perspective, for example, the limited inventory offers the chance for your listing to shine. 

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November 2018 has been our team’s biggest month of the year in terms of total transactions.

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Also, buyers looking for homes at this time of year tend to be more serious and motivated. Between this and the decreased level of competition, sellers who list in fall or winter have a lot of leverage. 

As for buyers, now is a great time to secure a property before rates rise even more. There are still listings out there.

If you have any other questions, would like more information, or are curious how we can help you achieve your real estate goals, feel free to give us a call or send us an email. We look forward to hearing from you soon.

The Truth About Whether Now Is a Wise Time to Buy

 Is now a good time to buy a home? Today I’d like to get to the bottom of this question.

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Given that home prices have been on the rise for the past 72 months, is now a good time to buy?

Actually, yes. Let me explain why.

With as long as this trend has been going on, it makes sense that we can expect it to continue. That said, one of the main points buyers must consider when purchasing property is appreciation. Here in Jonesboro, appreciation rates are rising in 90% of the areas throughout town.

So when you purchase a home, each and every monthly mortgage payment you make gets you further ahead financially. The interest you’re paying to the bank also serves as a tax write-off.

The bottom line is that there are several reasons why investing in property now is a good idea. Prices are projected to continue to rise, so why not secure your home now before they go up any further? Now could be a great opportunity to make the move to your next home.

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The bottom line is that there are several reasons why investing in property now is a good idea.

”

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Low Interest Rates Mean More Buyers in Jonesboro

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I received multiple emails from our local lenders today about interest rates falling to near historic lows, and I wanted to make sure I gave you an update.

We're seeing rates as low as 2.375% up to about 3.25%. It's been a very long time since I've heard about interest rates in the 2% range.

If you're thinking about buying a home, what does this mean to you? It means your money is going to go a lot further than it normally would. If you can lock in an interest rate of 2.375% to 2.75% compared to 3.5% or 4%, you're going to have the same payment on a $225,000 house that you would have had to pay for just a $200,000 house.

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Rates this low mean more potential buyers for you home.

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That's literally the difference in how far your money will go at this time. It also impacts sellers.

If you've had your home on the market in the past and it didn't sell or you're thinking about putting your home on the market, there is a different group of buyers that are able to buy your house right now. With interest rates this low, the buyer pool has grown immensely - their money is able to go a lot further.

There is a good chance we can sell your home now, and maybe even for more than we could have when the rates were higher. It's a win-win for everybody!

If you're thinking about selling or you tried to sell and weren't able to in the past, give us a call. We'd love to help you appeal to the larger pool of buyers we now have in the Jonesboro market. Let's talk soon!

Don’t Fall Into a Money Pit When Buying in Jonesboro

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The last thing you want when buying a home is to fall into a money pit. Here are three ways to avoid that:

1. Have and attend the inspection. We really encourage this, and we actually have you sign multiple documents that say for your protection, get a home inspection. You want a set of third party expert eyes on that property before closing the deal. Be sure you read the reports and disclosures.
2. If there’s anything you get back in writing, make sure you look over those things. Most inspectors will give you a honey-do list with things like a door that catches or a crack in the sidewalk. During a home inspection, you are looking for major repair items.
3. Get multiple bids on needed repairs. If there’s something major, make a few phone calls and get bids to know exactly what you’re looking at for repairs and updates that might go along with it. Does the sale price justify these things?
4. Prioritize price reductions and credits over seller repairs. Look at the list from the inspector and see if the price that you’re paying works out with the numbers and make sure you’re getting a good deal.

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Attend the inspection.

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Finally, make sure you’ve got a buyer’s agent that’s fighting for you. They’ll guide you through the necessary steps with your best interests in mind.

If you have any questions or are interested in buying a home, don’t hesitate to reach out to me! We’d love to serve you and your family for your real estate needs.

Make Sure Your Closing Process Runs Quickly and Smoothly

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Today we are here to give you four great tips on how to keep the closing process moving when buying a home. At this point, you’ve had your offer written and accepted, but today we want to let you know about some potential hurdles you may come across, and how to overcome them.

We want you to get through the closing period without any hassle, and here are four ways to do that:

1. Have us stay on top of it- When you hire our team to sell your home, you are hiring our entire team. That includes our closing coordinator, who has the job of orchestrating your closing from start to finish.
2. Keep your lender in the loop- It’s good to keep in touch with your lender on a regular basis. In this case, the squeaky wheel gets the grease, so to speak.
3. Be aware of last minute surprises
4. Keep your finances stable- Don’t go out and buy a house full of furniture and appliances or a new car. We have had clients in the past fail to close on homes due to mistakes like this, and we don’t want to see it happen to you.

Thanks for hanging out with us today. If you have any questions for us, feel free to give us a call or send us an email. We look forward to speaking with you soon!

Four Ways to Get Value Out of Your Home Inspection

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Any time that you're seriously considering buying a property, we recommend that you get a home inspection done. They do cost about $400, but they are well worth your money to ensure that you're not buying a broken home. I have four tips to help you get the most out of your home inspections.

1. Hire a professional: Research the Arkansas Board of Home Inspectors and find a professional in your area with the proper credentials and experience. Don't let your relative do an inspection for you. Cutting corners like this can end up hurting you in the long run.

2. Come prepared to the inspection: We encourage you to be there during the inspection, and you should be ready with questions for the inspector. Get estimates from the inspector about what they think it might cost to repair damaged items.

3. Compile a maintenance plan: Once you have the report from the inspector, create a list of things that you need to fix, and things that you can expect to fix in the future.

4. Look at the major items on the list: Make sure that you understand the condition of major mechanical items like your AC, roof, plumbing, electrical, and more. If one of these systems is damaged or needs replacing, you will definitely want to know about it.

Hopefully these tips have been helpful for you. If you have any questions about inspections or if you would like to know of a good inspector, please don't hesitate to contact me!

Three Ways to Buy the Home that You Want

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We're seeing a competitive real estate market right now, and in order to help you compete with other buyers, I'd like to give you some tips on how you can make stronger offers to win the home that you want.

Making a solid offer:

This means that you're pre-qualified, you're putting down a nice down payment, you're ready with your paperwork, and you're coming into negotiations without a lot of contingencies.

Keep the offer clean and neat:

What I mean by this is that your offer should be clear, and if possible, it should have as few contingencies as possible. To ask for new flooring and a new fence would weaken your offer over others that aren't asking for these things, so try to avoid asking for too much.

Writing a personal letter to the seller:
If you take the time to write a heartfelt letter to the seller explaining why you like the home and why you want it, your offer will surely stand out. You will no longer be a number - you'll have a face and a story to go along with it. This can help to tug on the heart strings of the seller.

Hopefully these three tips can help you to strengthen your offers so you can win the Jonesboro home that you desire. As always, if you need any help buying or selling, please don't hesitate to contact me!

Why is a Pre-Approval So Important?

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A lot of clients have been asking me whether or not they should be pre-approved before they go out and search for homes.

You absolutely need to be pre-approved for a home loan, and this is true for many reasons.

1. When you walk into a home you want to know that you can afford to purchase it. Otherwise, you're just wasting your time looking at homes.
2. When you're preparing an offer, you look much better in the eyes of a seller when you have been pre-approved. It's important to prove to a seller that you have the funds to buy the home.
3. This helps in multiple offer situations, which have become more common lately.

It doesn't take a lot of time to get pre-approved, and we can direct you to one of our local lenders to assist you with this. 

Whatever you do, it's absolutely imperative that you get pre-approved before you even start looking for a home.

Please don't hesitate to contact me with any questions you may have about real estate in Jonesboro!