Highlights of Buyers & Sellers in 2021
The National Association of Realtors recently released their annual report based on their research on buyer and seller activity within the last year. Below are some interesting highlights.
- The average sales price in the US was 100% of the listing price.
- 1st time home buyers accounted for 34% of all buyers.
- 95% of buyers search online and they typically searched for 8 weeks.
- 90% of home sellers worked with a real estate agent to sell.
- Only 7% of sellers were FSBOs, and of that, only 3% didn’t know their buyers.
- The amount of time for a listing on the market dropped from 3 weeks in 2020 to 1 week this year.
“Realtors stepped up in a tremendous way during this pandemic—both in helping sellers list and sell properties, as well as in aiding buyers in finding their dream home during a time of such scarce inventory,” said NAR President Charlie Oppler. Whether buying or selling, contact me to find out how you can be successful in this unique market.
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
5 Reasons to Use a Buyer’s Agent
Recently a friend asked me to give them some advice for their son who is trying to buy a home in Utah. It’s an extremely competitive market there. My first question was does he have a buyer’s agent and if no, why not?! If you are trying to buy a house, it only makes sense to use an experienced professional to guide you through the process. Here are only a few of the reasons why buyers should use a buyers’ agent.
- A buyer’s agent works in your best interest. The listing agent works on behalf of the sellers and not for you.
- An experienced buyer’s agent will advise on how to structure a competitive offer to help better position you as the winning bid in a multiple offer situation.
- Buyers will need inspectors, lenders, closing companies, etc. Good agents will provide a recommended list of top performing providers.
- You get local knowledge and insight into the market area.
- A buyer’s agent will help overcome setbacks and provide advice on how to proceed and negotiate.
When you hire a buyer’s agent, you’re hiring a professional to look out for your best interests during one of the largest purchases you’ll ever make. Contact me to put my 27 years of experience to work for you.
Contact Donna Forest: 603-526-4116; www.DonnaForest.com; Donna@DonnaForest.com
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
The Finer Points
In the emotional swirl of negotiating on a home, it’s easy to overlook some of the finer points of the contract. Below are some thoughts to keep in mind during this process.
- While most sales close on time, the closing date is more of a target date. Time is of the essence doesn’t apply here. As long as both parties are making good faith efforts to close, there is no breach of contract.
- Buyers can move into the home right after closing and typically do a walk-thru inspection 24 hrs. prior to closing. This means sellers should be completely moved out prior to the day of closing.
- There is an insurance clause in the contract stating sellers need to keep the home insured including replacement cost coverage until closing.
- Firewood and wood pellets are considered fuel and buyers are expected to reimburse sellers for what is left. Best to address this upfront in the offer with regards to quantity and price.
- TV brackets, bookshelves that look built-in, and Nest thermostats for example, can become points of contention. Again, addressing these items in the contract is prudent.
Contact me if you are looking for an experienced realtor to help you navigate your real estate transaction!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
Real estate markets are local, and we have the real scoop on ours.
What is an Appraisal Gap?
An appraisal gap is when a lender ordered appraisal comes in lower than the contracted sales price. It happens in competitive markets such as ours where buyers typically need to bid over the asking price in order to be successful in purchasing a home. According to the NH Assoc. of Realtors latest data thru June, homes in NH are selling at 102.9% of the listing price. A low appraisal decreases the amount that can be borrowed and buyers are faced with how to make up this difference. For example, if a seller agrees to accept an offer of $410,000 on a home listed at $400,000 but it appraises for $390,000, there will be an appraisal gap of $20,000. There are a few options buyers can try to keep the sale together:
1) Make up the difference in cash (consider gift funds from family or borrowing against a 401K if short on cash)
2) Shift the down payment so you end up borrowing more money and putting less into the down payment - with lender approval
3) Appeal the appraisal if there is incorrect information or bad comps
4) Renegotiate with the seller.
Good agents will discuss the concept of low appraisals with buyers and sellers before offers are even made. Many offers with financing are written to say buyer will pay the difference between the appraised value and contract price up to a certain amount. Contact me to work with someone who will prepare you for the “what ifs” in this competitive market.
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
Teamwork from the team that works the hardest for both buyers and sellers!
Better Homes & Gardens Real Estate The Milestone Team
Every buyer wants to purchase at a great price and a low mortgage rate as that determines the monthly cost. Here’s how today’s buyers are being impacted:
Price – Based on a home price expectation survey released by Pulsenomics on June 10, more than 100 forecasters predict an 8.7% annual gain in home values for 2021. This rate is expected to slow to approx. 5% in 2022 and about 2.5% for the following year. In other words, if you are waiting for prices to go down, it could be a while.
Mortgage Rates – The average fixed 30 yr. rate is near 3% right now. The Mortgage Bankers Assoc. expects the 30-year fixed rate to reach 3.6% by the end of 2021. Greg McBride, chief financial analyst at Bankrate states “the tug of war over whether mortgage rates will move higher or lower from here largely revolves around inflation.” The latest Quarterly Forecast from Freddie Mac predicts the average 30-year fixed-rate mortgage to be 3.1% in 2021 and 3.7% in 2022.
Increases in prices and rates impact you; your housing expense will be more a year from now if you need a mortgage to purchase your home. My advice is to buy now - it could lead to substantial savings as even a small change in interest rates can have a big impact. Contact me if you would like expert advice on buying in today’s challenging market.
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
You’ll be moving in the right direction with Better Homes & Gardens Real Estate - The Milestone Team.
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
Beautiful Open Concept Colonial in Gramercy Park Subdivision. Private 2.05 acres on Park-like setting on end of cul-de-sac backed by woods. Huge finished room above the garage with many options for use. Newly carpeted and painted neutral colors. 3 miles to shopping, schools, and hospital, 50 minute commute to Boston. Yard is beautifully landscaped with fruit trees, gardens, playground area, newly finished walkway and retaining wall and nice hill for sledding.
Possibility exists to finish walkout basement as separate entrance apartment. The preliminary framing and footwork has been completed and owners have confirmed with the town that it is allowable.
Enclosed porch room off the kitchen/dining area is unfinished and waiting for final touches.
Showings begin July 10th. OPEN HOUSE Sat 7/10 & Sun 7/11 11-1pm. By appt.
7 Stony Point Drive, Londonderry NH 03053
Jenna Sievers~603-391-6799~Jenna@bhgmilestone.com
Have a blast this July 4th using the following recipes, backyard décor ideas, and fun outdoor activities.
Fourth of July Recipes
- These delicious July 4th picnic recipes will result in an all-star gathering.
- Stir this Provencal pesto into a bowl of boiled potatoes or pasta salad with shredded chicken.
- Mix a refreshing pear vinaigrette with this grilled vegetable and mozzarella ensalada.
- These open-face pesto-chicken mozzarella melts will be a huge hit at any gathering. Serve these grilled chicken burgers on a slice of ciabatta bread with a few fresh basil leaves for one incredible meal.
- Serve flavor-packed black bean chipotle burgers that will make everyone’s tastebuds dance with joy.
- Easy to grab, delicious to eat, these hamburger sliders with cranberry chutney are perfect for any backyard gathering.
- Bake one white and one red velvet cake. After they have cooled, cut each cake into about 1-inch slices and stack them alternating each layer, so it looks like the stripes on the American flag. Add blue food coloring to icing before spreading it on top, and then for the final touch, add white star sprinkles.
- End the day with a fresh and berry-topped, berry delicious flag cake.
- Bake an Independence Day cookie pizza! Press and flatten cookie dough into a 14-inch pizza pan and bake it until golden. Let it sit for about 5-10 minutes, and then scatter mini marshmallows across the top. Then sprinkle the top with red and blue candy-coated chocolates. Easy and delicious.
- This patriotic berry flag tart is just as tasty as it looks.
- Make American flag pretzel sticks by dipping a pretzel into melted white chocolate about 5 inches. After it has cooled, dip the same end of the pretzel into melted blue chocolate about 1 inch and place white start sprinkles on the blue portion before it dries. Fill a piping bag with red icing and drizzle it back and forth across the white chocolate to create the stripes.
- Get your patriotic party on with incredible 4th of July drinks.
- Enjoy these refreshing summer cocktails that are exactly what your guests will enjoy at the end of a hot day.
Backyard Preparation and July 4th Décor
- Check out creative benches and built-in seating solutions for your deck or patio that are practical and look great.
- Learn how to build a freestanding deck to enhance your home’s exterior and host memorable outdoor gatherings.
- Summer is in full swing; here are a few outdoor patio ideas that will help you enjoy your July 4th gathering and all future outdoor parties.
- Red, white, and blue, these Fourth of July crafts are for you.
- These DIY planter rockets will be a blast to create and will make your yard look fabulous.
Outdoor Activities for the 4th of July
- Get your game on and discover some family fun with fourth of July games for kids.
- Make a photo booth in your backyard! Use construction paper to cut out patriotic themed props such as red hats and blue bowties. Take silly photos and share them with loved ones.
- Discover endless entertainment with these games you’ll be playing all summer long.
- Build a rocket out of cardboard boxes so the young ones can fly high. Take a large cardboard box, cut out ½ of one side, and place it upright so the opening serves as a window. Cut out two wings and tape one to each side. For the top of the rocket, cut out a triangle and attach it to the top. If you want to take it another level, you can paint the outside or wrap it in fun wrapping paper. Glue painted bottle caps on to look like buttons and use a paper plate as a wheel. Blast off!
- These fun outdoor yard games are great family entertainment and will be a hit at parties.
- Set up a kid’s craft table. Use toilet paper or paper towel tubes to make little rockets! You and the kids can paint the cardboard red, white, and blue and then glue ribbons or tassels onto one end. Paint little stars on the outside to give it a boost! For the top of the rocket, make a cone shape out of paper to glue it to the top.
This post was originally published on BHGRE Life. https://www.bhgre.com/bhgrelife/have-a-memorable-fourth-of-july/
Home prices in NH as well as the US continue to climb upwards as we still are experiencing a shortage of houses for sale. Multiple offers are driving the median sales price of a home in NH to a high of $375,000 (YTD thru May) while the median sales price for the US is $350,000. The average days on market is 34 days and the selling prices are 102% of the asking price. Looking at our local market, in the 3 towns of Newbury, New London & Sunapee combined, there were a total of 53 homes sold thru May 2021, 56 sold in 2020 and 65 sold in 2019. The median selling price is $495,000 thru May compared to last year at $341,250. The average days on market is 24 days and last year was 91 days.
Lawrence Yun, chief economist for the National Assoc. of Realtors predicts by year end that we will see “less multiple offers, less hurried decisions, less frenzy” as he expects more inventory to come on the market. He anticipates bidding wars would no longer be prevalent by 2022. On the other hand, many articles I’ve read predict it will be years before the housing shortage catches up with demand. My advice – it’s hard to time the market so you should buy or sell when it’s right for you. Contact me to learn more about how the market could impact your plans in this challenging environment!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
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