Zillow CEO Spencer Rascoff appeared on CNBC’s “Squawk Box” this morning to talk about the spring selling season, the housing recovery and why real estate agents are a such an integral part of buying and selling homes.
Friday, March 28, 2014
3 reasons real estate agents are worth the cost
Zillow CEO Spencer Rascoff appeared on CNBC’s “Squawk Box” this morning to talk about the spring selling season, the housing recovery and why real estate agents are a such an integral part of buying and selling homes.
Thursday, March 27, 2014
6 Seller Secrets For This Spring's Real Estate Market
Here are 6 market insights that will give you a head start!
Right Now = A Great Time To SellThe winter home selling season was crippled by the polar vortex, especially in the east and northeast, so there’s pent-up demand from buyers who’ve been waiting for better weather to brave the house hunt. Mortgage rates are still at historic lows, so buyers ARE poised to buy and ready to hit the streets.
Price It RightMany metros in the country have seen double-digit price increases in the past year. But this last quarter, prices started to slow nationally – and pricing is a critical component to getting your house sold. With this fluctuating market, you need to look at comps of similar homes in your area, and recency matters: make sure you’re looking back no more than 60 days. The sale price of homes that sold recently paints a much better picture of what to expect than the price of homes that sold six months ago (or of homes that have yet to sell).
Bidding Wars Aren’t Back (Phew!)Bidding wars were common in the summer of 2013, but we’re hearing less about them right now. So don’t bank on fielding two or three offers at once. There is, however, a good chance that you’ll still get the one that will be a win/win for both you and the buyer.
It Pays To Be Ahead Of The CurveTrying to get a jump on the competition? Right now we’re on the cusp of prime selling and buying season, and if you list soon, you’ll have less competition than you would if you put your house on the market in May or June, when more homes will flood the market. Since it’s still early, your home can have its ‘moment in the spotlight’ more than it will when inventory increases – and the buyers who are braving the cold to house shop are clearly motivated.
Make It Pop Off The Computer (Or Smartphone) Screen!
In this new mobile era, a huge percentage of buyers use smart phones (and Trulia’s top-rated apps) to start their home search online. And that percentage is expected to rise this year as more buyers take advantage of easy access to the wealth of information online. Get in on this trend by making sure your home pops on those computer screens. Great homes with mediocre quality photos will be quickly discarded and ultimately get less showings. Sellers should insist that their agent take the time to beef up their online listing so the quality of the home jumps off the screen and gets buyers’ attention.
Wednesday, March 26, 2014
Tuesday, March 25, 2014
The Do’s & Don’ts of Picking a New House Color
The do’s
Consider colors. Many homeowners worry that a unique color scheme will end up costing more, but fortunately that’s not the case! Applying a little imagination to the selection process won’t stress your wallet any more than choosing a neutral shade would — so why not have a little fun?
Take a hint. Notice what colors exist on your exterior that cannot be changed — the dark gray flecks in your brick, for instance, or that blue cast in your roofing shingles. A cohesive color scheme will take into account these unchangeable shades.
Accent. Add character and charm by painting your window trim and architectural details in a contrasting accent color. And, don’t forget that you can also use color to emphasize your entryway.
Consider trends. Trends in exterior paint move at a snail’s pace. The color you choose today is very likely to still be in style tomorrow or 10 years from now. White used to be the “safe” choice, but more and more homeowners are experimenting with color and tinted neutrals. Tour a few neighborhoods to get a sense of what others are opting for.
Light vs. dark. Light colors make a house look larger and more inviting and if painted on a house set back from the curb, they can bring the structure visually forward. Dark colors, meanwhile, make a house look more substantial. Especially if applied to a home’s lower portion, they suggest stability and permanence.
The don’ts
Misplace the accent. Accenting is great, but only when used to highlight the more attractive elements of your home. Avoid drawing attention to drab features like gutters, air conditioning units or unevenly placed windows.
Ignore the neighbors. While it’s a good idea to get creative, it’s usually a bad idea to pick colors that will clash with your neighbors’ exteriors. You can always stand out but try to do so in an unobtrusive way!
Ignore the landscaping. Maximize curb appeal by ensuring your house and yard are in harmony. A green-painted house would get lost on a heavily wooded lot, while a bright color might appear too brash where landscaping is sparse.
Wing it. Exterior painting is a big deal so plan accordingly! Try painting a small amount of your main, trim and accent color choices next to each other on a hidden side of the house. That way, you can test how your scheme is coming together.
Monday, March 24, 2014
Tips for Buyers in a Sellers’ Market
Home buying is not as easy as seeing a new listing online, going to view it in person and making an offer. In a seller’s market the gloves come off and would-be buyers need to act fast, think outside the box and be prepared to work at the home-buying process.
Don’t use conventional search methods
With limited inventory and many buyers looking for the same thing, next-generation buyers need to think outside the box. You must assume that every home out there, even those that lack “For Sale” signs, are for sale in this day and age. Work with your agent to look at pocket listings, Make Me Move listings, and expired or withdrawn listings from years past. Look at pre-market homes or “For Sale By Owner” homes that may not be listed by conventional methods like the MLS. If you like a home in your neighborhood, don’t be afraid to reach out to the owner with a personalized letter. It’s worked before.Get pre-approved for a mortgage
The buyers who get the house in a competitive market are the buyers who are organized, well prepared and ready to move when the right home comes along. What does this mean? Know about any issues with your credit report and make sure your financial house is in order. Start by getting a pre-approval letter from a reputable lender, that you can show to agents and sellers. A pre-approval letter is typically good for 90 days and shows sellers that you are a motivated, credit-worthy buyer who is able to act fast. Faced with multiple offers, the seller won’t just consider the highest offer but, rather, the person who can close quickly and is a sure thing financially.Work with a good local agent
Want to live in a particular neighborhood or school district? Chances are there are a handful of agents who specialize in the area. Know who they are and try to work with one of them. A good local agent means the difference between getting your offer accepted in a competitive market and spending months unsuccessfully writing offers. Good agents like to work with agents they know. A good listing agent wants to be certain, for the sake of his seller clients, that a deal will go through. One way they can provide this certainty is to steer their client toward a buyer whose agent is well-known, well respected and can get the deal done. Work with someone from outside the area or unfamiliar with local customs and your search could drag on for months.Don’t wait
The early bird catches the worm applies in real estate. See a home hit the market on a Tuesday morning? Go see it right away. In a strong market, buyers are aggressive and homes move quickly. It’s not uncommon for a home to have multiple offers on it before the first open house. What’s worse? You show up to the open house and the sign on the front yard says “open house canceled” because an offer has already been accepted. It’s happened before.Trying to buy a home in a sellers’ market can almost amount to a part-time job. You need to be flexible with your schedule and be ready and able to move quickly when the right home comes your way. The right home for you can show up at any moment. Consider this: Right now the owner of your future home could be signing the listing agreement with their agent or even having their photo shoot done. You never know when a listing will hit. Be prepared and be ready to move. Have the right team in place and be open to looking outside the box.
Thursday, March 20, 2014
It’s Spring!! Time to Clean Up Your Finances
After one of the most brutal winters we’ve seen in years, it’s finally time to put away the down coats, spruce up the house and, yes, even tidy up your personal finances. Here are a few tasks you may want to tackle:
Clean up bad credit
Money parachuting inHave you been subject to high interest rates? Denied a loan altogether? Been unable to rent an apartment or perhaps even land a job? If you have bad credit, then you’re aware of these consequences and others. Dedicate spring cleaning time as the annual time to review your credit report, and boost that all-important score.
Freshen your budget
We’re three months into the new year. How are you doing so far? Under budget? Over budget? Have you spent more or less than you planned in certain areas? If you’re close to your expectations, great, but if you have veered off track — perhaps because you’ve changed jobs or undergone another life-altering event — make any necessary adjustments now, before things escalate.
Plug financial holes
I’m not only talking about canceling memberships you’re not using, avoiding late fees, passing up valuable tax breaks, or revisiting your insurance policies to make sure the coverage is both adequate and affordable. I’m also talking about putting more money in your pocket by reducing your biggest monthly expense: your mortgage debt. Did you know that a 1 percent savings on your mortgage rate, in just one year, could save you about $2,400? That’s the equivalent of a week-long vacation for a family of four! Point being, even small amounts can make a big difference.
Pay it down
If you’re still carrying credit card debt, check the cards’ interest rates and balances. Then, make a plan to pay off this debt using a strategy that works for you, whether it’s targeting just one card first, transferring your balance to a lower (or 0 percent) card, or even making two minimum payments each month. Consider this example: If you’ve got a $2,000 balance on a card with a 17 percent interest rate, if you only make the minimum payment, it will take more than 21 years to pay off the balance. But if you make an additional payment of the original amount two weeks later, you’ll be debt-free in less than three years. How is this possible? Card issuers typically charge interest on a daily basis so the sooner you make a payment, the faster your average daily balance is reduced.
Get shredding
Spring is the ideal time to shred any old financial documents. While ATM deposit slips, withdrawal receipts and canceled checks that don’t pertain to your taxes can be thrown out as soon as you’ve verified that the transactions are accurately documented on your bank statements, you’ll want to keep tax records for seven years, pay stubs and bank statements for a year, and credit card statements for at least 45 days.
Tuesday, March 18, 2014
How to Create a More Functional & Inviting Laundry Room
Create some counter space
Having adequate surface area for sorting and folding clothes is certain to make your life easier. If you have sufficient floor space, consider adding a center island (similar to one you would select for your kitchen). In addition to serving up a generously sized counter area, it will offer more storage options below. Not enough space in the center of the room? Consider adding a countertop over a side-by-side washer and dryer that load in the front. That way, you can be sure you’re making good use of the space and giving the room a custom, built-in look.Maximize storage options
Regardless of your laundry room’s size, there are always ways to add storage options. Any storage will help keep things in their place and, if not out of sight, at least confined and organized. Stock cabinets are inexpensive and can be installed easily. Consider both base- and wall-mounted units wherever possible. If cabinets are not an option, you’ll find a myriad of specially designed products to improve the storage capacity of any laundry room.Upgrade your old appliances
If your existing washer and dryer are old, replacing them with new models will not only make your life easier but help you save on energy and water costs. Today’s machines offer a wealth of special, high-efficiency features from larger-capacity washers and dryers to power-foam and steam-cleaning options. Take into account front- and top-loading machines to determine the best solution for your needs. And don’t overlook the option of having a stacked pair; it’s an easy way to open up floor space for a cabinet and counter or sink.Add a sink
If you don’t have a utility sink in your laundry room, investigate whether there is a way to add one. The cost may be less than you think and the convenience of having it for hand-washed clothing and other cleanup jobs will be well worth the consideration. If plumbing lines are already in place, you can probably do the installation yourself.Paint the walls a soothing color
There is nothing like a fresh coat of paint to enliven a room. Think about painting the laundry room in a color that sets the right mood for you — perhaps a soothing blue or green, or a more energy-infused color like Tangerine Tango. Hang some art, install a new chandelier, add decorative window treatments — anything to make it seem less like an afterthought and more like any other room of the house. The simple decorative touches will create a more inviting space, one you could even grow to “love.”To see some examples of stellar laundry rooms, and to get some inspiration for your own, take a look at some laundry rooms we love.
Monday, March 17, 2014
Friday, March 14, 2014
Buy, Rent or Share?
In this challenging economy, are you reluctant to buy big ticket items? Weary of making any kind of long-term monetary commitments? That may not be the most financially advantageous decision. Our informal take — on what to buy, rent or share.
What to Buy: Home
Zillow looked at the breakeven point of more than 200 metros and 8,000 cities to see how many years it would take before owning a home would be more financially advantageous than renting. And guess what? The analysis shows that in most major markets in the U.S. right now, buying beats renting after just three years. This is due to a combination of factors, says Zillow Chief Economist Stan Humphries: affordability (in some markets, values are 50 percent or more off their peak), historically low interest rates and rising rents. Did you know that nearly 4 million American families have transitioned into rentals since the foreclosure crisis began? That’s putting pressure on prices, says Humphries: rents are up 5 percent this year and are expected to continue to rise.
What to Rent: Designer clothing & accessories, textbooks
Whether you have a special event to attend or even if you’re looking to dress to impress for a job interview, I say “thumbs up” to renting outfits you’ll likely need just once. Consider popular sites like Rent the Runway or Bag Borrow or Steal. As for textbooks, which can also make a huge dent in your savings if bought new (costing over $1,100 on average, per year), look no further than chegg.com. Services such as campusbookrentals.com also offer new and gently used textbooks at a significant discount.
What to share: Cars, bikes, vacation rentals, sublets & more
This is a phenomenon already well-established among car sharing services like Zipcar and Car2Go, for example, but look around and you’ll see that this trend of resource sharing is rising everywhere — you’ve got Spinlister for bike sharing, Airbnb for house sharing and other sites for everything else in between.
Wednesday, March 12, 2014
Pools, Trampolines and Other Features That Can Spike Insurance Costs
Because
of both the high rate of drowning and the severity of water-related
injuries, insurance companies consider swimming pools one of their
biggest liabilities. Consider the possibility of a neighborhood kid
accidentally falling into your pool and sustaining an injury. You could
be held liable for the high cost of their hospital bills, and if they
choose to sue, you could also rack up considerable lawyer fees and other
court expenses.
When shopping for a new home, some of the same features that lure you in could end up costing you extra in insurance premiums. If you’re like the many buyers who wait until after going into contract to get insurance quotes on a property, you could be faced with some serious sticker shock. Check out these five seemingly desirable home features that might end up costing you more than you realize in the long run:
1. Swimming pools
Your insurer will also likely require you to build and maintain a self-locking fence around the pool to keep others – especially children – out. Additionally, if the pool itself is expensive, you may need to increase coverage limits on your policy in the event it’s damaged by a storm or other covered peril.
2. Trampolines
Even if there are no specific exclusions from your carrier or in your state, it’s still important to notify your agent any time you introduce a “high-risk” item – such as a trampoline, tree house or a swimming pool – to your property to make sure you’ll be properly covered in the event of an accident.
3. Water view
The value of a waterfront property can be substantially higher than comparable inland properties, whether you live by an ocean, lake, river or some other body of water. However, a beautiful water view often comes with a higher risk for flooding and therefore more extensive insurance coverage.Although most standard homeowners and renters insurance policies include coverage against water damage, they exclude any damage resulting from flood/rising water. For that reason, most residents who live in high-risk flood zones with a water view typically need to invest in separate flood policies in order to protect their properties from the elements. If you have a mortgage on your home, a flood insurance policy will likely be required by your lender. You can check the flood risk of any property by visiting the official site of the National Flood Insurance Program.
4. Vintage charm
Some older homes have maintained original features for decades or even longer, and discovering a well-preserved historical property can be a real estate dream come true. Unfortunately, if key features such as the home’s plumbing system, electrical system or the roof haven’t been updated since poodle skirts were in style, it’s likely an insurance nightmare.If your electrical system hasn’t been updated in more than 10 years, it’s more likely to malfunction and contribute to a damaging fire than one that’s brand new. Similarly, out-of-date plumbing systems could lead to devastating water damage and an older roof is more susceptible to storm damage and other costly damages. With the combined average cost of claims topping $40,000 for these perils, according to the Insurance Information Institute, it’s not surprising insurance carriers charge more to insure these properties.
5. Square footage
Bigger is not always better. The larger your home, the more it will
likely cost to replace if it’s ever damaged or destroyed in a covered
peril. That means you’ll require a higher amount of dwelling coverage,
which is the coverage provided under your homeowners policy to rebuild
the structural elements of your home in the event of a claim.To get a rough idea of how much dwelling coverage you’d need to completely rebuild your home from the ground up after a total loss, insurance companies multiply the total square footage of the property by local construction costs. Keep in mind, building with more expensive construction materials will impact your coverage needs, so upgrades such as granite countertops also should be reported to your insurance company.
Of course, none of this should dissuade you from buying a waterfront home or installing a swimming pool. Just be sure you enter into the home buying experience with some knowledge about which types of homes carry higher risk — and therefore larger insurance price tags — than others.
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