Jon Sump here with The Home Brokerage bringing you our Thursday Thought of the Week. I was sitting here doing some research on the market, seeing what's going on in the different segments, the 200,000 to 300, the three to four, four to five, 500, all the way up to a couple million. It's just really evidently clear that right now is actually a great time for the move up buyer. You already own a home and you're thinking about buying another home, this is a phenomenal time for it because the inventory is increasing.
The interest rates are at a 21 month low right now and expected to stay that way for at least foreseeable future. Even the economists who have originally said that the latter half of 2019 is what they were saying last year was we'd have a recession at the end of '19. Then in spring that just passed, they pushed it back to mid 2020. Now, they're pushing it back to the end of 2020 maybe 2021 because the market is doing and the economy is doing so well right now, they have to keep the interest rates a little bit lower, especially in the housing market. If you're thinking about buying right now and you own a home, it's a great time.
The inventory is high on the higher end, the inventory is a little bit lower on the lower end, so you're going to be able to get your home sold quickly and for top dollar. If you have a starter home or a move up home and you want to get into your final home or just a little bit bigger home, now is a phenomenal time to do that. If it's something you'd be considering, give me a call. Love to talk to you about it a little bit more. I'll have that a market update out in just a few days. That takes a lot of time to get all the information together, but I was looking at this and I thought I had to get this out here to you.
I hope you enjoy it. If you have any questions about what's going in the market today and how it affects you personally, give me a call. I'd love to talk to you, 209-712-5476. Jon Sump, The Home Brokerage. If this information is good to you, please like and share it. You never know who else might need this information. Thanks and as always make it a great day.
What is staging exactly, and does it actually help sell homes? Stay tuned and find out.
Hey everybody, Jon Sump here with The Home Brokerage where we always put your home first. I get this question a lot from clients what is staging, and I tell them what it is, and does it actually work. Well, I'm going to tell you right now that I do believe in staging whether that be hiring an actual stagier to come out and bring furniture to an empty home or it be a stagier come out and help you organize your home in a way that makes it shine the best.
According to surveys done recently, this was by the California Association of Realtors, 83% of buyers' agents say staging a home makes it easier for buyers to visualize living in the property. The thing you have to keep in mind is this. I experienced this myself. I can look at a house and see exactly how it should be set up and all of that. I've been doing this so long I have what I just call that vision. I can see a fixer-upper before it's fixed up and know what it could be. I can see an empty house and see how it should be staged, but not everybody can do that, so when it comes to your home you want to make sure it shines in its best light possible.
More than half of all sellers' agents in California in this survey agree that staging the home decreases the amount of time it spends on the market. Why is that? Because people fall in love with it easier. 44% of buyers' agents say staging the home increases its value in general, and 25% say staging can increase the home's value by 1 to 5%.
So, what are the rooms that should be staged? The rooms that should be staged according to everybody and the statistics is the living room, the master bedroom, and the kitchen. Those are the most important rooms to most people when they're looking through a home. If you could stage more, that's great. If not, those are the minimum that you want to stage.
Now, what is staging exactly? Staging is you get an interior decorator type of a person that has gotten into the staging business, and they come out to your home if it's vacant, and they literally bring furniture and artwork and things, knickknacks to sit around the house and they make it look just like if you're walking through, well like a model home. When you walk through a model home in a new home subdivision, they have a stagier go through and set those up for that look.
But staging is also making sure your home is clean, decluttered, and has the curb appeal as it's best as could possibly be. Keep these things in mind when you're thinking about selling your home if you want to get top dollar when it's time to sell your home, all right? If you have any questions or concerns, please feel free to give me a call. Love to talk to you about it more. If this is been helpful to you, please do me a favor, like, share it. You never knew who's thinking about these things right now on your friends' list. Thanks, and as always make it a great day.
But Jon, I want to price it high, so I can get the most money out of my house. It doesn't work. Stay tuned, and I'll tell you why. Hey everybody, Jon Sump here with The Home Brokerage where we're always putting your home first.
So, when it comes to pricing a home if you really, truly want to get top dollar, the last thing you should do is overprice your home. Why? It pushes everybody away because every home in a given area is going to have a certain market price and if you want to get market price or better you have to do something that's very counter intuitive. But think about it. If you price your home slightly below market what happens? You actually open the market to more people. If you price your home above market, you close the market to more people.
What you want to do is let's say market value is 400 is what we determine by sitting there with you and going through the comparables like what I do with every one of my clients. We sit down and go through this because this is one of the most important parts of selling a home, and we look at what do we think market value is for this home.
If you price it let's just pick a number and say it's 400 or 430, okay? If your home is worth 430 market value and you put it on the market at 450 everybody that's qualified to 430 is not going to look at your home, number one. Number two, if you take that 430 price and you bump it down to 424,900, what's going to happen? Everybody's like, "Well, wait a minute. That neighborhood's worth more money. Why is it so low? I want to go look at this." And then we get multiple offers coming in on a home usually.
Then we can actually get them to fight each other and bid up against it. I mean most of the homes that I sell I usually get at market or a little bit above market when they're sold because of the fact of how I price properties. Not everybody wants to price it that way but the clients that do take my advice it always works out. We get the highest price for the property for that neighborhood.
So, anyways keep those two things in mind. If you really want top dollar, this is the best strategy when it comes to your pricing. If you price it too high, you send everybody away. If you price it a little bit low, it welcomes everybody to the table. Keep that in mind. If this was helpful, please like and share it for me, and as always, make it a great day.
What's going on with the interest rates? Stay tuned to find out.
Hey everybody, Jon Sump here with The Home Brokerage, bringing you another Tuesday tip of the week. Man, if you're thinking about buying, now is a phenomenal time. The interest rates are going back down. From what I understand, they'll be in the mid to high threes, so 3.7, 3.9-ish right now. I mean, this is what they were back in 2017, and before that, back in 1961. So this is a great time for thinking about buying.
If you own a home already, man, you better call me. Get with a good lender. If you need one, I've got a phenomenal one. It's a great time to refinance. If you've got a interest rate that's over 4%, right now's the time to refinance it down to the 3.7, 3.8, 3.9, whatever we can do today. Give me a call if you need help with that, I'd be glad to help you. And if you think this is time for you to do it, again, call me.
And please, as always, if this is helpful for you, please like it and share it for me. There might be somebody you know that's thinking about this and needs this help today. So anyways, give me a call when you get a chance. Love to talk to you more about it. And other than that, make it a great day. Thanks, bye bye.
So, pre-qualified, pre-approved, closing costs. What does all that mean for you? Stay tuned. I'll tell you.
Hey everybody. Jon Sump here once again with the Home Brokerage. We're always putting your home first. So a lot of people don't understand the differences between pre-qualified or pre-approved. It's a huge difference. So what it actually means is, that depending on which lender is doing the job there's a lot of variation. As a buyer and seller it's always best for a buyer to be pre-approved, from a sellers perspective.
The pre-qualification just means that in some cases ... Let me give you worst-case scenarios. In some cases all they did was meet with a lender, tell their lender their financial status and the lender says, "Okay, well if you give me documents to back that up we can move forward but by the way, here's a letter saying you're pre-qualified." Some lenders do a little bit more. They get the papers in but they don't crunch the numbers.
So it just depends but pre-approval means they've gotten all their documentation. The lender has crunched all the numbers. The send it to their underwriters to approve it and they've come back and said, "Yes. This is a person we're going to do a loan on." From a sellers perspective, that's golden. That means it's not going to take half as long to do the deal. You're not going to have to wait for a buyer to get this form or that form halfway through the deal or at the end of the deal.
So you definitely want to make sure, as much as possible, depending on the lender, that the people are pre-approved. Or if it's a reliable lender that you know of, reputable company, some pre-qualifications are okay. The lender that I use is golden. Whenever he says they're pre-qualified, they good to deal. There's no if, ands or buts.He almost gives me an approval but he can't quite give me that without the rest of the company backing it up.
But never have a dealt, done a deal with him where he says they're pre-qualified and in the end, they weren't. So it depends on your lender. If you need a good lender let me know. The other thing is, closing costs. Well for buyers, this is the big deal because a lot of buyers don't realize that in addition to saving that money for a down payment, you have to save the money and set it aside for closing costs.
What are closing costs? Well that's the cost the title company's going to need. That's the cost that the lender is going to charge. Appraisal, all those types of fees go into there and it can be anywhere from three percent to five percent depending on the loan value. So keep that in mind when you're saving up to buy your next home. You want to set aside at least three to five percent, somewhere in there for loan ... I'm sorry, for closing costs on top of the down payment amount.
So, two things. Make sure you got your closing costs and your down payment money for buyers. For buyers and sellers ... From a buyer's perspective, just so you know, in regards to the pre-qualified or pre-approved, from the buyers standpoint it's also golden from a negotiating standpoint. It shows, "Look. I'm serious. It took the time to get pre-approved, not just pre-qualified."
So I hope this was helpful. If you have any questions regarding pre-approval, pre-qualification or your closing costs feel free to give me a call. If you need a lender, got one that is the bomb. Thanks again. Have a great day. Bye-bye.