Portland Real Estate BlogRecently posted or modified blog posts in the category - Prep Your Homehttps://www.hillshirerealtygroup.com/blog/Copyright HillshireRealtyGroup.com2021-03-18T10:16:36-07:00tag:hillshirerealtygroup.com,2012-09-20:5170To Renovate or Not To Renovate Before You SellWhen thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers. However, with so many <a href="https://www.mykcm.com/2021/01/14/why-right-now-may-be-the-time-to-sell-your-house/" title="buyers">buyers</a> competing for available homes right now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you’re thinking of selling this season.
1. There aren’t enough homes for sale right now.
A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a <a href="https://www.nar.realtor/newsroom/existing-home-sales-tick-up-0-6-in-january" title="1.9-month" target="_blank" rel="noopener noreferrer">1.9-month</a> supply of homes available today. As a result, buyer competition is high and homes are only on the market for about <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-01-realtors-confidence-index-02-19-2021.pdf" title="21 days" target="_blank" rel="noopener noreferrer">21 days</a>, during which time many receive multiple offers from hopeful buyers.
In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to work with a real estate advisor to determine which improvements are truly necessary, and which ones are not likely to be deal-breakers for buyers.
Today, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after, even if it means putting in a little extra work. <a href="https://www.homeadvisor.com/r/wp-content/uploads/2020/12/DP6355-StateOfHomeSpending-2020-R4.pdf" title="Home Advisor" target="_blank" rel="noopener noreferrer">Home Advisor</a> explains:
“When it comes to the number of home improvement projects completed, Gen Z homeowners are leading the pack, completing an average of 3.5 projects. Millennials closely follow Gen Z, taking on an average of 3.3 projects, followed by Gen X at 2.8 projects. Boomers completed an average of 2 projects, and the Silent Generation completed the fewest projects, on average, at 1.8 per household. Compared to 2019, millennials are spending 60% more on home improvement and doing on average 30% more projects.”
In this market, it may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key <a href="https://www.mykcm.com/2021/03/05/how-to-prepare-your-house-for-a-winning-sale-this-spring-infographic/" title="projects">projects</a> that will maximize your listing, without overdoing it.
2. Focus on getting a good return on your investment.
When planning any bigger projects to tackle, you and your real estate agent will want to discuss the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all of them. You might be surprised by how well your house could fair in today’s sellers’ market. <a href="https://www.remodeling.hw.net/cost-vs-value/2020/key-trends-in-the-2020-cost-vs-value-report" title="Hanley Wood" target="_blank" rel="noopener noreferrer">Hanley Wood</a> states:
“The 2020 Cost vs. Value report shows a predictable increase in costs for all 22 remodeling projects but a consistent dip in the perceived value of those projects at the time of home sale, as estimated by real-estate professionals in more than 100 metro areas across the U.S. This results in a slight downturn on the return on investment for nearly all projects relative to the trends we saw in last year’s report.”
Ideally, homeowners getting ready to move should try to avoid over-investing in big renovations if they won’t make that money back when they sell their house. According to the 2020 State of Home Spending report from <a href="https://www.homeadvisor.com/r/wp-content/uploads/2020/12/DP6355-StateOfHomeSpending-2020-R4.pdf" title="Home Advisor" target="_blank" rel="noopener noreferrer">Home Advisor</a>:
“The average household spending on home services rose to $13,138, an increase over last year’s survey results, where homeowners who did projects spent $9,081 on average in 2019.”
Before you renovate, contact a local real estate professional to see if it’s the best course of action. You may find out that putting your house on the market as-is will help you sell quickly, and it may result in the best return on your investment. Every home is different, but a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.
Bottom Line
We’re in a strong sellers’ market, and that means you have the <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="leverage">leverage</a> to sell your house on your terms. Let’s connect today to determine if renovating is really the best way to spend your time and money before you sell.2021-03-18T07:15:00-07:002021-03-18T10:16:36-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:3765Are You Ready for the Summer Housing Market?Are You Ready for the Summer Housing Market?
<img width="750" height="410" src="https://files.mykcm.com/2020/06/10090300/20200611-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Are You Ready for the Summer Housing Market? | MyKCM" srcset="https://files.mykcm.com/2020/06/10090300/20200611-KCM-Share.jpg 750w, https://files.mykcm.com/2020/06/10090300/20200611-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/06/10090300/20200611-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As the health crisis started making its way throughout our country earlier this spring, sellers have been cautious about putting their homes on the market. This hesitation stemmed primarily from fear of the spread of the coronavirus, and understandably so. This abundant caution has greatly impacted the number of homes for sale and slowed the pace of a typically busy spring real estate season. Mark Fleming, Chief Economist at First American <a href="https://blog.firstam.com/economics/why-the-pandemic-has-worsened-the-housing-supply-shortage" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As more homeowners are reluctant to list their homes for sale amid the pandemic, the supply of homes available to potential home buyers continues to dwindle.”
With many states beginning a phased approach to reopening, <a href="https://www.simplifyingthemarket.com/2020/04/22/keys-to-selling-your-house-virtually/?a=409387-7262c924fe93ac742b96ce89127eca65" title="virtual" target="_blank" rel="noopener noreferrer">virtual</a> best practices and health and safety <a href="https://www.nar.realtor/coronavirus-a-guide-for-realtors" title="guidelines" target="_blank" rel="noopener noreferrer">guidelines</a> for the industry are in place to increase the comfort level of buyers and sellers. What we see today, though, is that sellers are still making a very calculated return to the market. In their latest Weekly Housing Trends Report, realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-30-2020/" title="indicates" target="_blank" rel="noopener noreferrer">indicates</a>:
“New listings: On the slow path to recovery. Nationwide the size of declines held mostly steady this week, dropping 23 percent over last year, a slight increase over last week but still an improvement over the 30 percent declines in the first half of May.”
Although we’re starting to inch our way toward more homes for sale throughout the country, the number of homes on the market is still well below the demand from buyers. In the same report, Javier Vivas, Director of Economic Research for realtor.com shares:
“Sellers have yet to come back in full force, limiting the availability of homes for sale. Total active listings are declining from a year ago at a faster rate than observed in previous weeks, and this trend could worsen as buyers regain confidence and come back to the market before sellers.”
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) seems to <a href="https://www.nar.realtor/newsroom/pending-home-sales-slump-21-8-in-april" title="agree" target="_blank" rel="noopener noreferrer">agree</a>:
“In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”
What we can see today is that homebuyers are more confident than the sellers, and they’re ready to make up for lost time from the traditional spring market. <a href="https://www.simplifyingthemarket.com/2020/05/27/why-this-summer-is-the-2020-real-estate-season/?a=409387-7262c924fe93ac742b96ce89127eca65" title="Summer" target="_blank" rel="noopener noreferrer">Summer</a> is gearing up to be the 2020 buying season, so including your house in the mix may be your best opportunity to sell yet. Interest in your house may be higher than you think with so few sellers on the market today. As Vivas says:
“More properties will have to enter the market in June to bring the number of options for buyers back to normal levels for this time of the year, nationwide and in all large markets.”
Bottom Line
If you’re ready to sell your house this summer, let’s connect today. Buyers are interested and they may be looking for a house just like yours.
2020-06-11T11:53:00-07:002020-06-11T14:55:35-07:00Hillshire Realty Group Teamtag:hillshirerealtygroup.com,2012-09-20:21154 Tips to Improve Your Home and Save on Your Energy Bill<img src="https://assets.site-static.com/userfiles/1244/image/20191002-Share-KCM.jpg" width="750" height="410" />
As a homeowner, it’s important to keep your home running efficiently, not only to save money, but also to help the environment thrive. October 2nd is <a href="https://www.energyefficiencyday.org/" title="Energy Efficiency Day" target="_blank" rel="noopener noreferrer">Energy Efficiency Day</a>, a perfect time to think about making some key upgrades that will improve the efficiency of your home. If you’re looking to sell your house and increase the pool of potential buyers in your market, the upgrades below are truly a must.
According with <a href="https://wallethub.com/edu/energy-costs-by-state/4833/" title="Wallet Hub" target="_blank" rel="noopener noreferrer">Wallet Hub</a>,
“In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income.”
What should you spend on utilities?
<a href="https://www.moneymanagement.org/blog/2018/08/how-much-should-you-be-spending-on-utilities-each-month" title="Money Management" target="_blank" rel="noopener noreferrer">Money Management</a> says,
“If you’re working with a budget, and trust me, you should be, your utility costs should be no more than 8-10 percent of your monthly income.”
How can you make your home more efficient?
<a href="https://www.energyefficiencyday.org/ways-to-save-on-your-next-energy-bill/" title="EnergyEfficiencyDay.Org" target="_blank" rel="noopener noreferrer">EnergyEfficiencyDay.Org</a> provides some handy tips that can help you improve the energy efficiency of your home. Here are a few simple ones to consider, and how to make them happen:
1. Make the Switch to LED
LEDs are a great example of how innovation and technology can make your life easier. They last at least 25 times longer and consume up to 90 percent less electricity than incandescent bulbs.
Tip: By switching five of your home’s most frequently used bulbs with ENERGY STAR® certified LEDs, it’s possible to save $75 on energy costs annually.
2. Seal Those Leaks
On average, heating and cooling account for almost half of a home’s energy consumption. In fact, all the little leaks can be equivalent to leaving open a 3-foot-by-3-foot window.
Tip: Take simple steps like caulking windows, sealing leaks around chimneys and recessed lighting, and sliding draft guards under your doors to save up to 20% on heating costs.
3. Heat and Cool Efficiently
Don’t waste money heating or cooling an empty home. Install a programmable thermostat and in colder weather schedule your home’s heat to lower when you are away or asleep and increase when you are returning home or waking-up. In warm weather, schedule the thermostat to raise the temperature when you are away or asleep, and lower it at other times.
Tip: Follow the U.S. Department of Energy recommended temperatures and be energy-efficient all year.
4. Maintain Your HVAC System
Make sure to clean or change your furnace filters regularly. A dirty furnace filter will slow down air flow, making the system work harder to keep you warm (or cool) and costing you more money.
Tip: Consider getting a winter tune-up. Just as a tune-up for your car can improve your gas mileage, a semi-annual or yearly tune-up of your heating and cooling system can be vital to improve efficiency, saving you money and making your home more comfortable.
Bottom Line
By making a few key upgrades to your home, you’ll save on your utility bills and improve the energy efficiency of your home. When you’re ready to sell your house, these key features will make it even more attractive to potential buyers. Let’s get together to discuss what buyers are looking for when it comes to energy efficiency options in our area.2019-10-02T05:31:00-07:002019-10-02T08:55:35-07:00David Caldwell