Real Estate Information Archive

Under normal circumstances, spring is the busiest season for residential real estate with many people choosing to list their houses.  Spring of last year was far from “normal” and we’re not quite there this year either. We do know more people are looking to buy homes right now than there are homes available for sale; making this spring a prime time to put your house on the market.

Let’s look at what it means for you if you are thinking about selling your house.

Housing inventory declined 39.6% on a national level in 2020, making it the lowest housing inventory year on record, according to Realtor.com. In addition to the record low inventory, there has been a boom in buyer demand, thus creating a situation where home prices continue to rise.

With so few homes available for sale, buyers will be sure to notice when you put your home on the market.  And it is such a competitive market, that it is more likely you will find yourself getting multiple offers for your home. Per the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. That alone should make the idea of putting your home on the market very enticing!

This seller’s market gives you a HUGE advantage!

Another advantage of selling now is that when you get that great price for your house, you can use your equity toward a down payment on a new home.

But where will you go to buy a house if there are so few available?

Because there is so much demand for housing, homeowners are not sure what to do. While a house in good condition can get top dollar and sell quickly, there is a fear that once they sell, there might not be another house available in this market that they can afford.

Options for Home Buyers

There are options out there for people ready to sell and buy a new home. One thing to think about is new construction. When the supply of new homes for sale is below 6.5 months (how long it will take to sell existing inventory), builders take advantage of the opportunity and build more homes.  In December, the supply of new homes was 3.3 months. With such a low supply, builders are excited to start building to fulfill the needs of home buyers.

If you are looking to move up to a bigger or more luxurious home, you will find that there are more available at the higher end of the market, so now is a great time to find your dream “move-up” home! Or perhaps you are an empty nester near retirement and you are ready to downsize to a smaller, one level home and a 55+ community is the right move for you.  Selling now means getting top price for your house and the profit you make can get you into the right home that fulfills your needs and desires.

Another thing to think about if you’re on the fence about selling your home is forbearance. If you have benefited from not having to make full (or any) mortgage payments over the past year, it may be time to get out now!  This administration could retract forbearance at any time, thus helping supply; but higher payments or balloon payments could be on the horizon since forbearance is not forgiveness.

Whether you passed on selling your house last year due to the pandemic, or you just recently started thinking about selling, with inventory so low, it’s time to act now!

Getting your house on the market and ready to sell may seem like a big task, but  Sandra Nickel and her Hat Team of Professionals are ready and waiting to assist you with every step of the house selling process. Give them a call today at 334-834-1500!

The global pandemic set the world into a tailspin, and one result was that the US economy suffered its largest blow since the Great Depression in the second quarter.  It has been about a year since the housing market was on hold for a few months due to the pandemic last spring, and back then it appeared that the real estate market would go into a steep decline because of widespread stay-home orders. But that has not been the case. Instead, the US housing market has been kept afloat by homebuyers. It turns out that residential real estate has been very resilient. In fact, 2020 was a record-breaking year for the US housing market. And as we enter 2021, housing prices are not falling.

“The typical U.S. home was worth $266,104 in December, up 8.4% (or $20,587) from a year ago. A total of 5.64 million homes were sold in 2020, up 5.6% from 2019 and the most since before the Great Recession, according to Lawrence Yun, NAR’s chief economist. Sales also rose 0.7% from November and 22.2% year over year. Existing home sales reached the highest level in 13 years.”

Just over a month into 2021, the housing market is still super-competitive for homebuyers. The number of active homebuyers is far greater than the number of homes available for sale, and as a result it seems unlikely that the current pace of home price growth will not change anytime soon. Per Realtor.com market data for the week ending February 6, 2021, the median listing prices grew at 12.9% over last year, making it the 26^th consecutive week of double-digit price appreciation.

HOUSING PRICE FORECAST 2021: STEADY APPRECIATION

Right now, across the nation, homes are selling quickly and the number of homes available for sale continue to fall lower and lower. With homebuyers competing for homes, prices will continue to rise. In fact, per economists and market watchers, home values are growing faster than they have in a generation; and there is no sign of them slowing down.

WHY ARE SO MANY PEOPLE BUYING HOMES DURING A PANDEMIC?

With stay-at-home orders, there was a huge rise in remote work which, in turn, created a suburban boom, with an outbound migration from cities. A lack of developed land means that home builders may not be able to meet rising demand, leading home prices to continue to rise in 2021. While some urban cities still lack the supply of homes demanded by buyers in those areas, the pandemic has generated a desire for houses with more space; both indoors and out. Combined with historically low interest rates, you see prices rising greatly from urban-to-suburban markets.

Right now, it does not look like price growth is going to slow.  Per Economic Research, predictions are that annual home value growth will rise as high as 13.5% by mid-2021, and the year will finish with approximately 6.9 million sales, the most since 2005.

Another reason there are so many homebuyers in the market now is due to the March to July period from 2020, when a huge portion of the country was on total lockdown. That is normally busy time for residential real estate, and many people who had planned to buy last year are now looking to buy this year. So, it is supply and demand. Low supply + huge demand = rising prices!

WHAT DOES THIS MEAN FOR YOU?

If you have been thinking about selling your home, now is a great time to do it! 

Sandra Nickel and her Hat Team of Professionals will help you get your house on the market and sold for the best possible price!  Call them at 334-834-1500 or contact them via email HERE. There has never been a better time to sell your home!

The general rule of thumb is spring is the best time to sell your home. Most Realtors experience a “spring rush”, but there are many reasons to consider selling your home during the winter months rather than wait until spring.

1. Less Competition

As you are driving around town, you probably don’t see many ‘For Sale’ signs. Typically in the winter, there are frewe homes for sale, which means less competition. Real estate is affected by supply and demand. The fewer homes there are for sale, the better chance you have of securing a buyer and the more negotiating power you have as a seller.

2. Historically Low Mortgage Rates

Mortgage rates continue to be historically low, bringing more home buyers into the market. While rates may stay low throughout 2021, rates typically increase in the spring as a result of supply and demand. Most home sellers are going to turn around and buy another home. Selling now means you are in a position to take advantage of today’s low mortgage rates.

3. Motivated Buyers

The spring selling season tends to bring out a lot of ‘looky loos’… people that aren’t really serious buyers and are merely interested in seeing what the market is like. Home buyers looking in the winter months are generally more serious and motivated to buy now. Serious home buyers look no matter what season of the year it is.

4. Quicker Transaction

There are fewer real estate transactions happening now than there will be in the spring selling rush. This means mortgage companies have fewer loans to process, attorneys and title companies have fewer closings, and home inspectors home fewer inspections to perform. The result of fewer transactions is better communication, better service, and less hassle. A closing with less stress will make your home selling and buying experience much more pleasurable.

After considering these factors, if you are in the market to sell your home now, let the Sandra Nickel Hat Team assist you with your sale. Call them today at 334-834-1500!

Experts predict we will be in the middle of the Covid-19 pandemic for at least another 6 to 9 months if not longer. You may think the real estate market has tanked due to the pandemic but this is not the case. Interest rates remain low and are enticing buyers to take advantage of lower mortgage payments. The pandemic is changing the way real estate is being sold and making showing your home a bit more challenging. But with creativity and preparation, showing your home can be done safely. The following guidelines will help keeping you, your family, your Realtor, and your prospective buyers safe and healthy.

Preparation

The first thing you want to do is prepare your home for sale. Deep, clean and declutter. You want your home to sparkle inside and out the fresh paint and clean windows. Clear off your counter-tops and remove all personal items. Put toys away and remove excess furniture. Clean out closets so they appear larger and don’t forget to clean out the garage. Add some color with decorative pillows, bowls of fruit or fresh flowers.

Virtual Tour

Your Realtor will want to create an online virtual tour for buyers to take a look at before physically entering your home. There are many options for creating tours with photos, as well as video walking tours moving from room to room. While online tours aren’t quite the same as seeing a home in person, they tell a buyer a lot about the property.

Virtual Open House

Today’s technology is ideal for virtual open houses. Who ever heard of Zoom pre-pandemic? But Zoom and similar programs are perfect for conducting a virtual open house.

In-Person Showings

While buying a home sight unseen is on the rise, most buyers will want to see a home in person before deciding to buy. With extra precautions, this can be done with safety in mind…

1. Limit the number of persons entering you home to Realtors and the prospective buyers. This is not the time for children and extra family members.

2. Have everyone entering your home sign a Covid-19 form certifying they do not have the virus or have not been exposed to someone who does. Also, require everyone wear masks, gloves and use hand sanitizer before entering.

3. Leave doors open and lights on to minimize touching surfaces.

4. Clean and disinfect before and after the showing.

Bottom line is buyers are buying and sellers are selling during this pandemic. They are just doing in more creatively and cautiously.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

You have placed your house on the market and now it’s time for potential buyers to come and look at it. Keeping it clean, tidy and ready to show can be challenging in the best of circumstances, but even more so when you have young children.  Here are a few staging tips for keeping your house ready for last minute showings while making it attractive to buyers at the same time:

• Remove excess toys and clutter. Cumbersome toys like play kitchens and picnic tables take up a lot of space and can made a room look crowded and smaller than it is - so it is a good idea to put these in storage while you are trying to sell.
   
• Allow your children to pick out a few favorite toys that can be easily stored in attractive containers when showing the house. Choose an option that makes tidying up quick and easy.  Store all other toys out of sight. Toy Storage Ideas
   
• Potential buyers like to be able to see the house as they would have it. So, remove kids’ art work from the refrigerator and convert the playroom into a multi-purpose room. For example, you can stage the playroom as an office by adding a desk and chair, or as a den by adding a small sofa. That will make the room more appealing to buyers without children.
   
• Consider a fresh coat of paint, especially if you have colorful rooms that were painted to appeal to your little ones. Not only will the new paint cover finger-prints and marks on the walls, but choosing neutral colors for all the rooms will help sell your home more quickly and easily. 26 of the Best Paint Colors for Selling Your House
   
• Don’t forget that the outside of your house is the first thing potential buyers see. Keep outdoor toys to a minimum and make sure they are stored neatly. You never know when buyers might be driving by and you don’t want a bunch of toys to create and eye-sore that makes them hesitate to look at your home.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: realtor.com

The decision to move is a big one. Chances are a lot of time, thought and energy went into making it. But now that you have decided, it’s time to start thinking about getting ready for the move. You’ve already answered the “should I stay or should I go” question, now it’s time to ask yourself “what should I bring with me and what should I get rid of”?  Whether you have kept a lot of things because of sentimental value, or you are just a tad lazy and have let things accumulate over the years, it’s time to decide what to keep and what to let go. Here are some things you should definitely “let go” of before you move:

1. Clothes you don’t wear anymore - You know…that dress that you don’t like, but keep just in case you need a dress for something, or that suit that fit a few years ago and might fit again if you can just lose a little weight? Yep. Time to go. Same with any clothes you simply don’t wear anymore, whether because of style or fit. There is no reason to drag them to your next home. If they are in good condition, place them in a donation bag and drop them off. And if they are trash, well…you get the idea.
    
2. Gag gifts and free promotional items - Been to a golf tournament recently? If so, you likely came home with a “swag bag” of sorts. If you consider chip clips, notepads, pens and plastic cups “swag”, then by all means, hang onto it. But if the bag has been sitting on the kitchen counter for weeks, it’s time to say goodbye. Same with any other similar items. Gag gifts are fun to open, but they just end up cluttering your junk drawer. Don’t take junk with you when you move. Trust me…you won’t miss it.
    
3. Kitchen appliances you rarely (if ever) use -  Who even uses a “Fry Daddy” anymore? All that grease and fat? Yuck. Just because it was a wedding gift 25 years ago, doesn’t mean you should bring it along with every move. Any appliance that you haven’t used in over a year needs to go. Why take up space in your moving boxes with something you likely won’t use again? Bye, bye!
    
4. Cheap art - Maybe you were on a tight budget when you were decorating your current home, so you bought some inexpensive posters and art for your walls. If you’ve outgrown them, don’t take them with you. 
    
5. Most things you have more than one of - I bet you’ve replaced a lap top or cell phone during the years you have lived in your current home. And how many new pairs of eye glasses have you gotten during that time? I also bet that when you replaced those items, you didn’t get rid of the original items you were replacing. Am I right? Well, now is the time my friend. Outdated technology doesn’t have to end up in a landfill, nor does it need to stay with you forever. Take it to be recycled!  And you can donate all those old eye glasses to Lion's Club International where they will distribute them to people in need. Electronics: Recycling and Donating
    
6. All the fancy bath products you got as gifts - Seriously. If you haven’t use them yet, you probably never will. If you have a stash of bath bombs and such that you’ve been waiting for the perfect time to use, either use them before you move or get rid of them. 
    
7. Stuff you borrowed from friends - As you’re cleaning out cupboards and closets you may come across items you borrowed long ago. Or items friends left at your house after a party of cook-out. GIVE THEM BACK.  You might be a little embarrassed if a lot of time has passed, but your friends will appreciate it and it will be one (or two, or three) less things you have to pack and move.
    
8. Anything you forgot you had to begin with - If you come across something that you have genuinely been missing and thought was lost forever, yay! That’s awesome. But if you come across something that you are surprised you ever had to begin with? It goes.
    
9. Stuffed animals - Sigh. Even as a grown-up this one can be tough. They are so cute and cuddly. But depending on how many there are, they can take up a lot of space. Pick a few favorites if you must, and keep your childhood favorite. But if you have a huge collection (whether they are yours or your children’s) I recommend you weed out as many as possible. 

The bottom line is, the less you have to pack, the less overwhelmed you will feel about your move. Less truly is more…more time, more energy, more peace of mind.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: geauxmovers.com

Negotiation is important in the world of real estate because the truth of the matter is, if you do not ask…you do not get. While sellers want the highest price and buyers want a bargain, they must meet somewhere in the middle for the deal to close. Negotiating is a vital part of selling or buying a home because it is the largest asset people own and there is a lot of money at stake. Here are some guidelines for what sellers and buyers might ask for in real estate negotiations:

• Price

Negotiating the best price means different things for sellers and buyers.  The seller wants the highest price and the buyer wants to pay as little as possible.  For a successful transaction, they must compromise and come up with a price that is acceptable to both.

• Closing Costs

Prepaid closing costs are paid by buyers for their mortgage. These are funds that the mortgage lender holds in escrow for expenses like taxes and insurance.  A buyer may ask a seller to cover some or all their closing costs either with a flat dollar amount or up to a percentage of what is an allowable contribution for a lender. If a buyer asks the seller to do this, they are likely going to pay a higher asking price. Escrow:  What is it and How Does it Work?

• Closing Date

Sometimes sellers want to get out of a home quickly because they need the capital from that house they are selling to put toward a new real estate purchase. The closing date will also affect the buyer’s monthly cash-flow because when a buyer closes on a house, they skip the next month’s mortgage payment. Therefore they may want to negotiate to close at the beginning of a month.

• Financing Contingencies

When there is a financing contingency in place for a real estate transaction, it can tie up a seller’s property for a required 30 to 60 days.  For this reason, many sellers prefer buyers coming to the table with cash offers. If you are competing with cash buyers, you may want to figure out if you can drop the financial contingency, which will shorten the closing time line. You can do this by getting pre-approved for a home loan prior to making an offer.  Mortgage preapproval shows that your finances are in order and you can afford the home. 5 Things You Need to be Pre-approved for a Mortgage

• Home Warranty

As a buyer, you can request a home warranty. As a seller, you can offer one. This home protection plan covers things like appliances and systems such as the hot water heater or air conditioning, in the event they need repair or replacement.

• Leaseback

The moving process is stressful and labor intensive.  Sometimes a seller will need extra time to get into their new home. When this happens, buyers can offer a zero-cost rent-back for 30 to 90 days to persuade the seller to accept their offer over others. 

• Home Repairs

With a home that needs a lot of updating there comes ample opportunity for negotiation. Buyers need to consider the cost of bringing the home up to current standards and use the estimate of that cost to request a lower asking price. The seller, on the other hand, can specify that the house is being sold “as is” and not offer any repairs.

• Appraisal Contingency

A seller can push for a buyer to waive the appraisal contingency,  however, if for some reason the appraisal falls short of the expected amount, they need to be prepared for the amount of cash they might have to pay should the bank only be willing to lend them money based on the appraised value. Understanding the Appraisal Contingency

• Furniture

Personal property such as patio furniture, window treatments and chandeliers is all up for grabs. The buyer can ask for these things to be included in the contract. Sellers need to determine what they are willing to leave behind. And any exclusions need to be specifically listed in the contract as well.

• Appliances

Depending on the market, sellers don’t always leave every appliance for the buyer.  They may include the dishwasher, stove and built in microwave in the contract but not the refrigerator, washer and dryer. Sometimes they don’t want to give everything away up front so that they can use these as items for negotiation.

• Condo/Co-op Assessments

These are fees that are used to maintain common areas in a community. If there is an open assessment, it can become a negotiation between the buyer and seller as to who will pay for it.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: grenadabroadcast.com

When you are putting your home on the market to sell, your top priority may be money. As in, how much money can you get for your house? And it should be. Owning a home is likely the largest financial investment you will ever make and it is only natural that you want to get the most profit possible when you sell.  Setting the right asking price can mean the difference between selling quickly or having your home languish on the market for months. The following myths can be harmful when trying to decide on the best price to ask for your house:

1. YOU’LL GET A BETTER OFFER IF YOU WAIT -  Receiving an offer right away when you list your house can give you a false sense of confidence that it is a hot commodity. You may think that if this buyer was willing to make an offer so quickly, then surely many other people will be interested in your property as well.  But the truth is, you might not get another offer…at all, let alone for more money.  With no other offers guaranteed, it may be in your best interest to accept the first offer if it is a fair one. Do You Accept the First Offer on Your Home, Or Wait and See?
    
2. YOU SHOULD LEAVE ROOM TO NEGOTIATE WHEN PRICING YOUR HOME You want top dollar for your home. Of course you do! But overpricing it, thinking that will leave room for you to accept a lower offer, may backfire on you. Buyers might see the high price and not even bother looking at the property. And if you keep dropping the price, buyers might wonder what is wrong with the place.  Price it fairly to begin with and you are more likely to achieve a successful, profitable sale.
    
3. YOUR HOME IS WORTH MORE THAN YOUR REALTOR SAYS IT IS -  An experienced, professional Realtor will be able to tell you how much your home is worth based on the current market. You should trust your Realtor. While online estimates might tell you that your home is worth more (yay!) or less (boo!) than your Realtor states, they are likely not accurate. Trust your Realtor over the internet. It is as simple as that.
    
4. YOU CAN GET BUYERS TO PAY FOR HOME IMPROVEMENTS YOU MADE IN ORDER TO SELL -  While some home improvements have a better return on investment (ROI) than others, you are not likely to get back all that you spend getting your house ready for the market. It is wise to educate yourself about which home improvements will help you sell, which will get you a better ROI than others, and which might not be worth bothering. The Best (and Worst) Projects for Your Home's Resale Value
    
5. REDUCING THE ASKING PRICE IS A SIGN OF WEAKNESS -  Nobody wants to drop the asking price of a home. But it is important to remember that time is money. And if time is passing and nobody is showing any interest in your home, you are still stuck paying the mortgage, taxes and insurance. This will be especially stressful if you have already purchased a new home. Lowering your price a little may be all it takes to generate interest and who knows? You might end up getting your original asking price anyway!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: orthodonticslimited.com

Whether moving for a job or just relocating for personal reasons, you still must decide what to do with your current home.  Should you rent it out?  Or sell it?  There are many circumstances to consider before making that decision.  How long do you have before you move?  What is the housing market doing in your area?  And do you have someone you can trust to manage your property? Rental Income: The Pros and Cons of Leasing Your Property

Of course, the biggest motivator in your decision is which option will be most financially profitable.   If you have a lot of equity in your house and can sell it, you’ll walk away with some cash to put toward your new home.  If the house is paid off, you’ll walk away with A LOT of cash.  However, if your equity is built up and you have low mortgage payments (or no mortgage payment), you could bring in a substantial monthly income by renting the house for more than your monthly payments.  You do have to consider the costs involved with renting the house out.  If you’re relocating to another town, you will likely have to hire a Property Manager to collect rent and take care of issues that come up.  You might also have to pay to advertise the home. What is a Property Manager

There are going to be risks involved either way.  If you put the house up for sale, you run the risk of not selling it quickly and possibly ending up with two mortgage payments or a house payment and rent payment on a new place.  But there are also risks to renting out your home. There’s a chance you will rent it to people who you think will be good tenants, but wind up paying the rent late or not at all.  There is also the risk that renters will not take care of the house and lower its value.

Another issue to consider is that housing markets can greatly fluctuate from year to year. You must question whether your neighborhood is in the kind of shape to support a quick sale.  If other homes haven’t been selling, for example, you might not get as much for your house as you might if you could wait a year or two and rent it out in the meantime.  On the other hand, if the housing market is hot in your neighborhood, it might just be the best time to take advantage of it and sell to get the best price possible.

Finally, you must think about whether you can afford a new mortgage while you still own the first house. Lenders count about 75 percent of the income you receive from renters when figuring out if they’ll give you a new loan, but that’s only if you have a signed lease and your salary is sufficient to cover the rest of the mortgage requirement.  Selling your house will make it much easier for you to qualify for a new loan.

The bottom line is, after doing your research, you can decide whether selling or renting is the best and most financially sound choice for you.

If you are in the market to buy or sell a home, let Sandra Nickel and her hat team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500!

Photo Credit: psychologycompass.com

Montgomery AL Real Estate: 3334 Cloverdale Road, Montgomery AL 36106

MLS# 472848

3 Bedrooms | 2 Baths| 1,925 Square Feet | Cloverdale/Idlewild

This adorable Cloverdale cottage in Midtown Montgomery has all the charm you expect in historic homes...like arched doorways, transoms, great molding, and built-ins. And, this one has not only had nice updates to the kitchen and guest/hall bath, there is a spacious master suite addition on the rear of the house sporting vaulted ceiling, bath with garden tub and separate shower, and huge walk-in closet! Enjoy relaxing in the cozy screened-in porch or cookouts on the big back deck. There is plenty of parking behind the house on the 2+car parking pad. Located just blocks from Cloverdale Bottom park and walking distance to dining and entertainment!

Marketed by Montgomery AL Realtor Billy Young, Sandra Nickel Hat Team