Blog

6 Things You Need to Know About Selling a Home in Winter

On the Emerald Coast, we tend to think of the big real estate season as the spring and summer. It’s a time when we get a lot of tourists who fall in love with our beaches and want to own a little corner of our world. Sales go up and more homes are listed during this time of the year, but that doesn’t mean you can’t sell your home during the winter, too.

Snowbirds Flock to Our Area

While the more southern parts of Florida may see higher numbers of snowbirds from the north, we have plenty too. Many snowbirds buy a second home once they realize they want to come back year after year. Their numbers are fewer than the tourists in the summer season but they’re definitely not buyers to ignore. If your home needs little or no extra work and is in a great neighborhood or close to what they want, you’ll get their attention.

Competition is Lower

Yes, there are fewer buyers out and about in winter, but that also means fewer new listings. When someone buys in a cold month it’s usually because they have to move and quickly. Price your home right for the area, and you’ll get their attention. Since few sellers think they should list at this time of year, new listings stand out against all the older inventory still on the market.

Make Your Home Look Inviting from the Outside

Curb appeal is important all year long, but when the weather is gray and dreary, it’s hard to see your beautiful landscape. Compensate for that by making sure your home is warm, light, and welcoming. What you want is for a potential buyer to walk in from the cold and immediately feel at home. They need to see themselves living in the space. Making them forget the cold weather goes a long way in that effort.

Your Home Needs to Be Move-In Ready

For the majority of buyers, when they buy in December or January, it might be a few months before they can make big repairs – a new roof, new windows – and they don’t want to install a new HVAC on a cold day. And that doesn’t include painting walls, replacing flooring, and other projects. The more move-in ready your property is, the more appealing it will be for a buyer who wants to wait until spring for home projects.

Don’t Let Holiday Decorations Distract Buyers

You can still decorate for the holidays if your home is on the market in December, but you have to be more strategic. Instead of the giant Snoopy in the yard that makes it difficult to see the front door, be more subtle. Make sure your decorations fit in with your home decor. And remember, if you sell before Christmas, all of that stuff has to come down in the move. Make sure you really want to go to that trouble.

Price Your Home Right the First Time

It’s never great if you need to drop the price of your home after a few weeks on the market. Many buyers will wonder what’s wrong with the listing and why it hasn’t sold. Or they may have a Realtor telling them it’s overpriced and to look elsewhere. With less competition and buyers who don’t have time to waste, pricing your home right the first time helps you get more eyes on it (and offers) as soon as possible.

Selling your home doesn’t have to wait for the perfect time – only the right price and the right buyer. If you need to move up or down or you’re leaving the area, you can successfully list and sell your home in the winter. Get your home ready, price it right, and keep your expectations realistic, and you may be in a new home of your own before the new year.

5 Costly Home Improvement Mistakes New Owners Make

Owning your first home is exciting…and stressful. Now you’re not just responsible for your possessions but the entire structure. It makes sense that you’ll want to improve it, make it better, and do it all as inexpensively as possible. Before you drop some cash on a new upgrade or higher a contractor, make sure you don’t make these costly home improvement mistakes.

Hiring the Cheapest Contractor

Cheaper isn’t always better. That’s true for shoes, cars, and yes, your general contractor. Cost may be a factor you need to consider, but there’s more to it than the fill bill. Check their reviews. Get references. And always get multiple bids or estimates from different companies. When most are within a close price range and one company undercuts everyone in price, that’s a red flag. Going with the cheapest option may mean a future of incomplete and poorly done work and expensive fixes later.

Forgetting to Do Your Research

While you probably shouldn’t use Google as your go-to for medical diagnoses, it can be a great tool for learning about home improvement projects. It doesn’t matter if you’re hiring someone to do the work or you want to DIY it, research potential problems first. What do you do if you pull down gutters and find wood rot? What’s your next step if an inaccessible pipe bursts? Every project has a worst-case scenario and a way to handle it. Don’t let yourself be surprised mid-job. And if you’re hiring someone, make sure they can take care of any problems as they arise.

Buying All New Furniture Too Early

As a new homeowner, you may need some new furniture. You may even have the perfect ensemble in mind after you view the home you want to buy. Hold off on buying all new everything and having it delivered on move-in day. First, you don’t want to blow your budget that might be needed for surprise repairs. Yes, that happens more often than you realize. Second, you might buy things that don’t fit the size or feel of your home or your new lifestyle in this house and neighborhood. Take your time and live in your home a little before getting all new furnishings.

Being Realistic About Return on Upgrades

You should make any upgrades to your new home that you need to make, want to make, and can afford to make. If it makes your life easier or it’s something you want, do it. But be realistic about the return you’ll receive when you sell your home later. Not all upgrades are equal and some won’t increase the value of your home much or at all. If a return on your investment is important to you, talk to your Realtor about what upgrades will yield the most potential return on value. But also realize that there’s no guarantee of a specific amount, either.

Tossing Important Paperwork and Receipts

As a homeowner, get used to keeping lots of paperwork. Scan it and keep it digitally or invest in a small file cabinet but don’t throw out receipts or paperwork you receive for upgrades, repairs, fixes, and warranties for things in your home. Not only is this paperwork necessary if something breaks down too soon, it can also help show what changes you’ve made that may increase the value of your home.

It’s normal to be excited and want to make improvements to your new home. Make sure you take your time, do your research, and hire the best people to help you with those improvements. If you do, you’ll spend less money and receive more return on your investment over time.

What are You Thankful for This Thanksgiving?

In some ways, 2017 is flying by faster than previous years, and in others, we’re all waiting for 2018 to hurry up and get here. No matter how divisive things get on social media or how worried we are when we watch the news, there are always things to be thankful for. Now that Thanksgiving has arrived, let’s focus on the good, instead of the negative, for at least a day or two.

Thinking about what makes us feel good in life is an antidote to the anger and worry so many of us feel. Here at Rising Star Real Estate, we’re thankful for quite a lot…

We’re thankful for our customers and clients.

You put your faith and trust in us, and it’s one of the greatest honors we have. We know how difficult and stressful buying or selling a home can be. Thank you for allowing us to help you through the process.

We’re thankful for our families and friends.

You support us in our work, help with the big and small things, and keep everything running at home when we get busy. Without you, we couldn’t help our customers and clients. Thank you for all that you do and who you are.

We’re thankful to our partners in real estate.

The only way buying and selling a property can be as stress-free as possible is to work with the right vendors. To the lenders, insurance agents, home inspectors and everyone else who helps us help buyers and sellers – thank you.

We’re thankful for referrals.

We don’t work for the paycheck, we work for the referral. Our goal is for you to be so happy with our service that you can’t wait to tell your friends and family about us. Your referral is your stamp of approval to let others know we’ll take care of them, too.

Thanksgiving shouldn’t be the only day we think about who and what we’re thankful for. But if it’s been awhile since you’ve thought about it, now is a good time. Showing gratitude throughout your life relieves stress and makes you feel happier. Thank people who help you, support you, and make your life even a little easier and that includes your barista, server, nurse, your child’s teacher, and everyone else in your life.

Now, it’s your turn…who and what are you thankful for this Thanksgiving and all year long?

13 Things Millennials Need to Know Before Buying Your First Home

Homeownership increased to a three year high for third quarter of 2017 to 63.9 percent due in large part to millennials. As this generation gets older and becomes more financially stable, they’re increasingly ready to own their own home. While the increase in buyers sent shockwaves through the rental market recently, it’s great news for buyers and sellers along the Emerald Coast.

Here are 13 things millennials and any other first-time home buyer needs to know and consider before you buy.

Check your credit first. A poor score will disqualify you from getting a mortgage or force you to pay a high interest rate. It is often better to repair your credit first to get the best deal.
Save as much money as you can. You don’t need a 20 percent down payment but any lender will want to know you have the ability to cover closing costs and whatever down payment your loan requires.
Look into first time homebuyer programs. They may be able to help get you the extra you need to make a lender feel comfortable approving your loan application.
Talk to a lender. Knowing your budget is good but a mortgage lender can give you an idea of how much you can afford what you can likely get approved for.
Work with a Realtor^®. Having a real estate license isn’t enough. You need to work with a professional that follows a strict code of ethics and has access to excellent information.
Consider what features matter most in a home for you and your family. Make a list of the must-haves and would-be-nice-to-haves. This can help you narrow down your decision or know which home to fight for with a counter-offer.
Try not to fall in love with the first home you see or make an offer on. Sometimes you get exactly what you want, and sometimes you don’t.
Think about your lifestyle when choosing a neighborhood. Do you want to be close to certain areas like the beach or downtown? Is it important to be close to work? Is walkability a factor for you?
Always get a home inspection. Make any offer on a home contingent on the inspection so you can walk away if you find there are serious and expensive problems.
Shop around for homeowner’s insurance. When you have a mortgage on your home, you’ll be required to carry insurance. Not all policies or companies are the same. Find one that works best for you.
Once you put in an offer and it’s accepted, don’t take on any new debt.
During the closing process, don’t change jobs.
Basically, until you’ve signed your name a dozen or more times at the closing table and received the keys, make zero changes to your financial life while your mortgage application is processed. Even a small change could impact your ability to be approved.

No matter what generation you belong to – millennial or something else – buying your first home is daunting and exciting. Make sure you know how the process works and find a professional you trust to help you. When you’re ready to become a homeowner, we’re here to help!

11 Things to Know About Home Buyers and Sellers in 2017

Every year the National Association of Realtors^® (NAR) releases a Home Buyer and Seller survey so that we can all have a better understanding of what buyers and sellers face during the year. What’s new, different, better, or worse about buying or selling real estate? This survey is a comprehensive look at the experience of buying and selling real estate on a national level.

All real estate is local, of course, and across the Emerald Coast, some of these variables will be a little different, but it’s a good way to get an idea of the real estate market. With that being said, here are 11 interesting things from the NAR 2017 Profile of Home Buyers and Sellers.

First time home buyers have more student loan debt than in the past with 41 percent reporting some amount of student loan debt.. The average balance is $29,000 with more than half of those surveyed reporting that they have at least $25,000 in student loan debt.
The median age of a first time home buyer is 32 years old with a household income of $75,000, up from 2016 when it was $72,000. The median age of repeat buyers is 54, up from 52 last year with an annual income of $97,500, not much different from last year ($98,000).
New buyers bought smaller homes at slightly higher prices. The median home size was 1640 square feet compared to last year when it was 1650. The price went up to $190,000 and was $182,500 in 2016.
Repeat buyers purchased a 2,000-square-foot home this year just like last year. But the price was higher, costing $266,500, up from $250,000 in 2016.
In 2017, 42 percent of buyers paid the list price or more for their home, up from 40 percent last year. This is likely due to a lack of inventory driving up competition and prices.
Conventional mortgages continue to dominate housing purchases with 58 percent of buyers financing their purchase this way while 34 percent used a FHA loan with a lower down payment option.
Buyers are moving to the suburbs, more rural areas, and small towns with 85 percent of all buyers choosing these locations.
Detached single family homes continue to be a more popular option across the nation with 83 percent of buyers choosing this option which remains the highest share for the third year in a row since 2004.
What may come to no surprise is that 95 percent of all buyers began their search for a home or a real estate agent online.
Ultimately 87 percent worked with a real estate agent at some point in the process and transaction.
Sellers worked with a real estate agent 89 percent of the time – an all-time high – and only 8 percent worked as a FSBO (for-sale-by-owner).

On an individual basis, and here in Northwest Florida, some of your experience may vary, this is an excellent snapshot of the real estate market from a buyer or seller perspective.

September 2017: Sales Slump Across Emerald Coast

Beyond the single bright spot of condo and townhome sales across the Emerald Coast, residential real estate sales fell in September when compared to the same time last year. Condo sales were up 30 percent in Walton County, which helped boost the overall Emerald Coast number to an increase of nearly 27 percent but elsewhere, sales were down. October may not look much brighter as pending sales were generally lower than last year across the board.

What happened and what does it mean going into winter? September hurricanes certainly didn’t help the Emerald Coast real estate market even though we weren’t directly impacted like other parts of the state and the Gulf Coast region. Not enough new inventory coming on the market is also a factor. As inventory continues to shrink, buyers have less options to choose from and may decide to wait a little longer before buying.

Single Family Home Sales

Emerald Coast

Closed sales decreased 3.1%
Pending sales decreased 12.3%
Median prices increased8%
Inventory decreased 10.2%
Months supply decreased 16.7% to 4.5 months of inventory

Okaloosa County

Closed sales decreased 0.3%
Pending sales decreased 10.7%
Median prices decreased 3.1%
Inventory decreased 9.8%
Months supply decreased 17.1% to 3.4 months of inventory

Walton County

Closed sales decreased 4.7%
Pending sales decreased 0.5%
Median prices increased 17.6%
Inventory decreased 7.8%
Months supply decreased 13.9% to 6.2 months of inventory

Townhouse and Condo Sales

Emerald Coast

Closed sales increased 26.9%
Pending sales decreased 7.9%
Median prices decreased 4.2%
Inventory decreased 20.1%
Months supply decreased 32.3% to 6.5 months of inventory

Okaloosa County

Closed sales decreased 9.3%
Pending sales increased 7.6%
Median prices increased 48.7%
Inventory decreased 21.3%
Months supply decreased 20.4% to 9.0 months of inventory

Walton County

Closed sales increased 30%
Pending sales decreased 39.5%
Median prices decreased 4.4%
Inventory decreased 10.2%
Months decreased 23% to 7.7 months of inventory

A few things to remember…

Inventory continues to decrease year over year. Inventory is at it’s lowest level in more than five years when current reporting began. Other than single family homes in Okaloosa County, inventory levels are at or near healthy numbers. But some price points and some areas may not have enough inventory to keep up with demand which can result in new listings in desirable areas being sold quicker. This will also lead to a slow-down in sales as well as median price increases until new listings hit the market in greater numbers.

Pending sales were down in September when compared to last year. While it’s easy to imagine pending sales are an indication of the next month’s success (or failure), this isn’t always the case. If you recall, the August pending numbers were very high, but that clearly didn’t guarantee a high volume of sales in September. It will be interesting to see what happens in October.

Median prices were up and down across the Emerald Coast. Part of this is due to the type of inventory available for buyers and the types of buyers in the market. Investors will choose the lower priced properties while residential buyers may have to pay higher for the home they want due to lack of competition. Overall, prices are higher than in the past and values continue to increase over time.

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2012 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.