If you own a three-bedroom, two-bath home, you have the most popular house for potential buyers. According to the 2022 National Association of Realtors Profile of Home Buyers and Sellers, your three-bedroom, two-bath gem is desirable. With the increase in residential sale prices (12.3% in Merrimack County since December 2021), now may be the time for you to list your home and downsize – or move closer to family and friends! In fact, according to the same report, the “typical home that was purchased was 1800 square feet, had three bedrooms and two bathrooms, and was built in 1986.” According to US News, demand is increasing (more buyers – especially Millennials entering the market). Yet inventory (the supply of homes for sale) is only slowly rebounding from the record lows of 2021 and early 2022. This increased demand – low supply market is an advantageous time to list your home – and The Milestone Team is prepared to discuss your home’s market value to help you decide if the time is right for you.
Is Now a Good Time to Sell?
Recent news about the housing market may have you wondering if it’s still a good time to sell. While rising interest rates have impacted buyer demand, there are other factors that still make it favorable to sellers. The lack of homes for sale is one of the driving forces. Data from the NH Assoc. of Realtors showed a 1.7 month supply of homes to sell in Sept. Less than a 6 month supply is considered a seller’s market. Houses are still selling quickly - 21 days on market thru Sept. This is well below pre-pandemic levels with 56 days in 2019 and 61 days in 2018, which were good years.
Buyer demand is declining but it hasn’t disappeared. In fact, the showing activity levels are higher than the pre-pandemic years based on the ShowingTime Showing Index. In Sept. 2022, the index for the Northeast was 168. In 2019 it was 120, in 2018 in was 113, and in 2017 it was 123. (The index measures showing traffic and a higher number means more showings in a given month).
Bottom line, there is low inventory and houses are selling faster than pre-pandemic. There are fewer buyers than in the previous two years but they are active and committed to buying. Contact me if you’d like to know what a shift in this market means for your home sale.
Contact Donna Forest: 603-526-4116; www.DonnaForest.com; Donna@DonnaForest.com
You’ll be moving in the right direction with Better Homes & Gardens Real Estate - The Milestone Team
5 Tips to Avoid Last Minute Stress
Selling and in the throes of packing and moving? Below are some tips to help get through those final days to avoid creating work for yourself at the last minute.
- Don’t leave personal items unless buyers agreed to it. While you may think you are doing them a favor by leaving the bar stools, the buyers could view it differently. You don’t want to be coming back to remove things right before the closing. Always check first.
- Leftover paint, tile, & cleaning supplies. All useful for the new owners, right? Confirm that buyers want it left. It’s not easy to get rid of this stuff at the last minute.
- You may be closing in a week, but you still need to maintain the yard. Having buyers pull up to a house with foot high grass to do their walk-thru inspection could be contentious.
- Be sure to understand what stays with the house. Check with your agent before removing anything attached. For example, hooks, shelves, blinds, light fixtures, & TV brackets should be left unless specified otherwise.
- Don’t leave multiple holes in the walls where pictures hung. Take a few minutes to spackle and paint.
Thinking of selling? Contact me and put my 28 years of real estate knowledge to work for you!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
Real estate markets are local, and we have the real scoop on ours.
Better Homes & Gardens Real Estate - The Milestone Team
What is Your Home Worth?
In this unique sellers’ market, it seems like you can put any crazy number on a house and it will sell. In reality, determining market value is still crucial if you are serious about selling. Overpriced properties take longer to sell and sell for less than if priced correctly from the start. Below are the common approaches for determining value.
- Automated Valuation – Companies like Zillow calculate value using software based on mathematical modeling. While convenient, it is not accurate. It misses important price influences such as property condition and location (e.g., it can’t see your brand new kitchen or if on a busy street).
- Appraisal – An in-depth analysis by a licensed appraiser and is typically used in the loan process. Right now bidding wars are driving sales prices up higher than other recent sales. Since appraisals rely heavily on past comparable sales, this lagging data can make it difficult to capture the current market.
- Market Analysis - Prepared by a realtor to provide a probable listing price. Using similar active and recently sold properties and factoring in the many characteristics that impact value.
Of note, assessed value is for tax purposes and may not reflect fair market value. Also, there is no correlation between the cost of building vs. how much your house is worth. Want to know your home’s value? Contact me - 28 yrs. in the business and still keeping current. Put my knowledge to work for you!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
Don’t Wait Until Spring to Sell!
If you are thinking of selling and waiting for spring, you might want to re-think your timing. Yes, historically 40% of home sales occurred between April and July. However, we still are not in a normal year and the number of homes on the market is extremely low. Here are 5 reasons to list now versus wait for spring
- Buyers are out looking in full force and ready to buy. Multiple offers are the norm which means prices are up.
- The average homeowner gained $56,700 in equity over the past 12 months according to CoreLogic. This may be just what you need to cover a down payment on your next purchase.
- Fewer homes for sale translates to less competition - you can negotiate for the best price and terms now.
- Mortgage rates, while rising, are still far below what they’ve been in recent decades. Lock in a low interest rate now as experts are projecting rates will continue to rise.
- If you’re selling to move into a bigger home or downsize, prices are expected to go up in 2022. Move now and beat the higher interest rate and price climb.
If you are wondering if now is a good time to list your house and want to know more about the next steps, contact me to learn how you can take advantage of the current market conditions.
Contact Donna Forest, Donna@DonnaForest.com, 603.731.5151
With the sizzle of summer, it’s easy to think of owning (or at least renting!) a vacation home this year. In fact, recreational home buyers came out full force in the 2nd half of 2020 thru April 2021 in search of that lakefront home or cabin in the woods. The National Assoc. of Realtors (NAR) just released The Vacation Home Counties 2021 Report analyzing how the pandemic impacted this demand and not surprisingly, vacation home sales jumped 57% year-over-year during Jan-April 2021. “Vacation homes are a hot commodity at the moment,” says Lawrence Yun, NAR’s chief economist. “With many businesses and employers still extending an option to work remotely to workers, vacation housing, and second homes will remain a popular choice among buyers.” We saw it in our area this spring with bidding wars on the smaller ponds like Chalk Pond resulting in prices over $600,000. While our market seems to have settled down from the earlier months of frenzied buying, the second home market is expected to remain strong given the low supply and high demand. Thinking of buying or selling that second home? Contact me and put my 21 years of local expertise to work for you.
Donna Forest ~ donna@donnaforest.com ~ 613-731-5151
In such a hot market, sellers may tend to think, "Hey, the house will sell regardless of how it looks!", and so nothing gets done to prep it for sale. While this may be the easy road to take and yes, it will most likely sell despite the lack of preparation, sellers are leaving money on the table. A house is usually one of the biggest assets someone will have. A staged home will generate more buyer interest and therefore more offers. Multiple offers tend to mean the seller will get over the asking price. Over 95% of buyers are searching online and if you don’t have great photos, your property will be bypassed in seconds. Professional photos, videos, and virtual tours have become even more important since the beginning of the pandemic. Sellers should have an honest conversation with their agent on how to best prepare their home for sale. With some time and effort, you will end up putting thousands of dollars more in your pocket. Contact me to work with someone who cares about getting you the most out of your sale.
Donna Forest ~ 603-731-5151 ~ donna@donnaforest.com
Nearly every real estate contract contains contingencies. How you deal with a real estate contract contingency might make or break the sale of your home. Some contingencies are easier to deal with than others, of course. Generally speaking, the faster you can fix the issues or make the accommodations stipulated in your real estate contract, the sooner your home can be sold.
What is a Real Estate Contract Contingency?
A real estate contract contingency is any condition outlined in the contract that must be met prior to the sale of a home. These stipulations exist to protect both buyers and sellers. If any of these conditions are not met, the contract would be void and the sale might not be able to move forward.
Common real estate contingencies include mortgage contingencies, which state that a mortgage loan must exist for the contract to move forward, and a home inspection contingency, which protects the buyer by requiring the house to be checked by a certified home inspector before the sale can move forward. In the case of a mortgage contingency, the stipulation is removed from the contract as soon as the loan is obtained. If a buyer cannot obtain a loan, they are usually able to gracefully exit the pending contract without penalty.
For a contingency like the home inspection requirement, once documentation of the check is obtained, the contract can proceed. If the home inspection finds faulty wiring, pests, structural damage, or other major problems with the property, the buyer can exit the contract without penalty. In this instance, the buyer would also receive any deposits or earnest money back. Alternatively, the buyer can request that repairs be made at the expense of the seller. If the seller does not wish to proceed and make the repairs, they can choose to void the contract. This again necessitates a return of all of the buyer’s deposits.
Another contingency that is often placed in a real estate contract involves the sale of the buyer’s current home. This stipulates that the buyer has a certain amount of time to sell their current home before purchasing a new one. If the home does not sell during that set period of time, the contract is voided. This protects the buyer from a scenario wherein they have to purchase a home they’re under contract for while they still have a mortgage on or equity in an old property. In a cash-poor situation like this, many buyers would not be able to obtain a mortgage or pay all-cash for a home, regardless.
Dealing with Contract Contingencies
As the seller, it’s important to have a real estate agent and attorney you can trust. These parties may review your contract with you and point out any contingencies that could prove problematic to you. If you know, for instance, that the home you are selling needs a new roof, chances are good you’d have to disclose it anyway.
However, under those circumstances, it’s important that a contingency for home inspection be worded properly and allow for the buyer to take possession of the home and then make their own repairs, in exchange for a lowered purchase price. This sort of phrasing can be critical if you’re a seller with a timeline for leaving your current property. You may not be able to wait to vet roofers and make the repairs yourself.
Similarly, if you are willing to accept an all-cash offer for a home so that you can move on more quickly, you should verify with your real estate agent that the contract is not contingent on the buyer having a mortgage loan in hand. There are unique issues that arise in all-cash deals, but if you are comfortable with that sort of arrangement, your contract will need to reflect it.
Most real estate contracts are fairly standard, but it’s always possible you are dealing with an inexperienced or even unscrupulous buyer and buyer’s agent. For this reason, and to protect your best interests in general, you should carefully review any contract you are considering signing. After all, it’s much easier to walk away before you have signed something than to have to find a way out of an executed contract later.
For advice with contingencies and much, much more, you can trust Better Homes and Gardens - The Milestone Team. There's a reason we're The Best Team in Town!
This post was originally published on the BHGRE Life Blog - https://www.bhgre.com/bhgrelife/
One of the first things your real estate agent will discuss with you when giving you tips for selling your house is the importance of “curb appeal.” While that includes your front door, windows, exterior light fixtures, walkways, fencing, and your front deck or porch, it’s also all about your yard.
You may not be able to choose precisely when you put your house on the market. But as soon as you know you want to sell, you should start the outdoor work, preferably at least a month before you list the house and have an open house or book showings.
Here are a few tips on things you’ll want to tackle to make sure your home has enough curb appeal to get people in to view its interior.
Rent a Power Washer
Great for cleaning vinyl or brick siding, gutters, and paved surfaces, a weekend with a power washer is a great way to start the exterior clean up your home will need before you list it. As you clean the walkways, make note of any cracked or broken paving stones, and replace them.
Don’t forget to use the power washer on any birdbaths, water features, or small ponds you’ve created to wash away stains and lichens that may have started to sprout.
As you make your way around your home, check your exterior light fixtures and clear out the bugs that have collected in them and replace any burnt out lights.
Trim Shrubs and Trees
Now is the time to tackle low-hanging or damaged branches and shrubs that have overgrown the space allotted to them. It won’t just make the place look better, it will invigorate your trees and shrubs and force new growth in the direction you want to encourage it. If you have large trees that are beginning to encroach on power lines, consider hiring an arborist to do this work for you.
Invest in half a dozen paper yard waste bags and rake up any dead leaves and twigs. Most municipalities have yard waste collections or drop-off depots. Take advantage of them, and get rid of all your yard waste at once.
Unless you have perennials already planted at the base of your trees, consider investing in some top quality mulch instead of planting annuals later on. Invest in a few extra bags so you can top up the mulch once your house is listed. Cocoa mulch, if you can find it, is the husks of cocoa beans. When it’s fresh and shortly after it rains, you get the bonus of the lovely scent of chocolate spreading throughout your yard.
Remove Must-Have Perennials
If you have cherished perennials with a lot of sentimental value (bleeding heart, cherished rose bushes, or lily of the valley from your great-grandmother’s home), it’s better to remove them before showing the house. If you don’t have another place to plant them immediately, just put them in pots and make sure the pots are listed as an exclusion when negotiating a sale.
Invest in Annuals and Hanging Pots
Keeping a house immaculate while it’s listed for sale is enough work without constantly worrying about the exterior as well. This year, no matter what your usual garden plan is, invest in tons of long-blooming annuals and fill up all your garden beds with them. Spread mulch around them and you won’t have to weed.
Petunias and pansies are particularly nice because they come in so many different colors and bloom all summer long. Chicken and eggs are a good investment too, as they’ll expand to fill the space available to them and grow densely enough so there won’t be any weeds creeping in amongst them.
Depending on the timing, you can also invest in roll-out flower gardens, seeds embedded in biodegradable material. While germination should only take a week or two, most take five to six weeks for full bloom, so this solution might or might not work, depending on the season and how early you’re starting the garden spruce up before you plan to sell.
Lush hanging pots of flowers or some attractive tall planters filled with a variety of flowers and decorative grasses are always a nice touch too, and they’ll keep the focus on your entryway.
It goes without saying that you should ensure any patches of damaged lawn are reseeded as one of the first steps prior to selling. It will take a while for the grass to catch up to the rest of your lawn, but it will make a huge difference. A sad or patchy lawn plants a negative seed in potential buyers’ minds, making them wonder, “If they haven’t taken care of this, what else has been neglected?”
Try not to let that thought take hold. Your real estate agent may have other tips for selling your house that relate to the garden and exterior. Listen to them and do as much as you can. It will make a difference in the number and quality of offers you receive and the number of days your house is on the market.
This post first appeared on https://www.bhgre.com/bhgrelife/how-to-spruce-up-your-garden-before-selling/.
Unless you live in a cave, you’ve probably heard multiple times it’s a sellers’ market and a great time to sell. So what does this really mean? Historically a balanced market has a 6-month supply of homes for sale in which there are enough homes available for active buyers. The most recent report (February) from The National Association of Realtors (NAR) shows the US inventory at just a 2-month supply. NH had less than a month’s supply and new listings were down 23% YTD thru Feb. compared to 2020. As a result of this increased competition, properties sell quickly and for much higher prices than we would typically see in a more normal market. Sellers are in prime position to best negotiate price and terms favorable to them. The median sales price in NH (thru 2/2021) was $350,000, up almost 23% for the same months last year. I have been in real estate here for 21 years and have never seen a market like the one we are experiencing. Will it last? Well my crystal ball says probably not. Lawrence Yun, NAR’s chief economist, cautions of a possible slowdown in growth in the coming months as higher prices and rising mortgage rates cut into home affordability. Having said that, forecasters are predicting prices, on average, to appreciate almost 6% in 2021. If you are considering selling, contact me to find out why this is the ultimate time to be a seller!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151