Mission Realty Real Estate Podcast with Clayton Gits

Over the past five years, home prices have appreciated dramatically. Today, I’d like to take a look at where they are now and what we can expect from the future.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationToday, we’re going to take a look at where home prices were five years ago and where they are now. It’s hard to believe what a difference those few years made. From December of 2012 until December of 2017, home prices increased 37.4% on a national level. Local appreciation varied between states, as you can see in the graphic I’ve included in the video above, but the overall change constituted a fantastic recovery.  In Virginia, prices appreciated by 15% over that five-year span. Florida, which had been heavily affected by the crash, saw an appreciation of 46% over that same period. Even more impressively, Nevada saw an appreciation of 66%. There isn’t one state that has gone backward, so we are definitely trending in the right direction. For all of you out there who love data, you can find some additional information on price projects here. “It looks as though home prices will continue to appreciate for the foreseeable future. ”One thing I do want to note, though, is that economists predict prices to increase by an additional 18.2% over the next five years. The Bulls are actually predicting a 27.4% increase, while the Bears predict an increase of 8.3%. Ultimately, all of this is dependant upon the global economy. If unforeseen circumstances arise, these predictions could change. Still, so far it looks as though home prices will continue to appreciate for the foreseeable future. This means that right now is a great time to buy while prices are still low. It’s also a great time to list, since now is one of the best times to move up in years. Inventory is low, which means homes that are on the market often see great success.If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Many are concerned that we’re about to see another housing bubble, but is this really the case?Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationSince 2012, home prices have significantly increased. As this trend continues, many are wondering when it will stop. Is a housing bubble on the horizon?According to economists, the next housing bubble isn’t expected to hit until 2024. This means there are six years to prepare. Freddie Mac’s chief economist Sean Becketti has said, “The evidence indicates there currently is no house price bubble in the U.S., despite the rapid increase of house prices over the last five years.” Other economists have shared similar opinions. Christopher Thornberg, a partner at Beacon Economics, says “There is no direct or indirect sign of any kind of bubble.” “The rise in prices is something buyers are certainly paying attention to. ”While we may not be headed for a bubble in the near future, the rise in prices is something buyers are certainly paying attention to. Of course, there’s no way to accurately predict what will happen to our market or our economy. Also, interest rates are going up for the first time in years. You can find more information about today’s interest rates here. The rise in interest rates is yet another factor that could impact purchasing power, which could cause further pressure on housing prices. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Now is a great time to buy in our market. This fact also makes it a great time to sell.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationNow is a great time to buy a home in our market, and because of that, it’s also a great time to sell. Let me explain. For the first time in years, mortgage rates are going up significantly. Why? Because the economy is improving significantly. There’s a direct correlation there—as the economy improves, interest rates rise. If you’re a buyer and you want to get the cheapest financing possible to buy your home, you need to buy now. Freddie Mac is forecasting that interest rates will be close to 5% by the end of the year. Take advantage of this situation before the spring market hits. Buyers need to act quickly and start buying homes, but there’s very little inventory available out there. There are more buyers than there are homes to sell, which is what makes now a great opportunity to sell as well. If you list now, you won’t have nearly as much competition as you would in the spring. Furthermore, according to the National Association of Realtors’ Chief Economist, Lawrence Yun, “The pool of interested buyers at the end of the year significantly outweighed what was available for sale.”Now is the perfect storm for buying and selling, so if you’re thinking about doing either, take advantage of this situation before the spring market hits. If you have any questions about the state of our current market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d be happy to help you.

The National Association of Realtors just released the 2017 edition of their Home Buyers and Sellers Profile. Let’s look over what their surveys found.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationEach year, the National Association of Realtors releases a profile of buyers and sellers. They’ve just recently put out the 2017 edition of this profile, and I’m excited to go over it with you today. After surveying buyers and sellers from across the country, the Association found that 60% of respondents feel that Realtors have helped them to better understand the real estate process.Also, 56% of respondents stated that their agent was honest in pointing out flaws with listings they visited during their home search. This openness is something I really encourage in the agents I work with. I would much rather see an agent talk a buyer out of a home that isn’t right for them than see a deal be made. There is a lot of value in working with a Realtor during your real estate transaction. Another statistic listed in the profile was that 47% of respondents felt their agent negotiated better terms for their sales contract. Additionally, 46% of respondents felt they had better access to service providers such as home inspectors thanks to the help of their agent. 44% of buyers also felt their knowledge of search areas was improved with the help of their Realtor. This just goes to show why it’s important to hire a Realtor.Finally, 38% felt their Realtors negotiated a better price. The respondents for this last statistic came from both buyers and sellers. As you can see, there is a lot of value in working with a Realtor during your real estate transaction. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Scammers have been hacking into a title company’s email or Realtor’s email to steal money from homebuyers. What can you do to avoid this scam?Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationThe latest scam in real estate is affecting a lot of people. I wanted to make sure that you are aware of it and go over a few ways you can avoid it.When you go through the process of closing on a home, there is a lot of interaction between you, your real estate agent, and the title company. These scammers are hacking into either the title company’s email account or the Realtor’s email account. They watch all of this sensitive information going back and forth. Once they are inside the real estate agent’s account, they can effectively take over the agent’s identity and email false wiring instructions to homebuyers. Once the buyer wires the money to the new account the hacker made, the hacker takes the money and runs. Since the hacker used the real estate agent’s email or the title company’s email, most buyers don’t know what’s happened until their money is gone. What can you do to avoid this scam? The most important thing to remember is that we will never ever ask you to send funds or a copy of a check via email. We won’t do it, and the title companies we represent won’t do it. We will never ask you to send funds via email. We’ve heard some nightmares about $50,000, $60,000, and $70,000 closing checks that are stolen because of hacked email accounts. If you get an email that appears to be from your Realtor or title company asking you to send sensitive account information via email, don’t do it. Call your Realtor to let them know what’s going on. Do as much as you can over the phone. I know that we hate talking on the phone these days, but make sure you call your Realtor or title company or handle things in person in order to avoid email whenever possible. I also recommend that you work with a Realtor and title company that uses an encrypted service for their email. We are moving in this direction to protect ourselves and our clients. Although we will never ask you to send funds via email, there is just too much sensitive information floating around. We want to protect our clients, so we are encrypting everything that we do. Ultimately, make sure you never send any sensitive financial account information over the web, and certainly don’t send it over email. That is the best way to avoid this latest scam.If you have any other questions about avoiding this scam or about real estate in general, just give me a call or send me an email. I would be happy to help you.

To explain the true cost of not owning a home, I have the top four advantages homeownership provides that renting doesn’t.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationThere are four main advantages to buying a home that, as a renter, you can’t enjoy. First, there are five great financial benefits: Homeownership is a form of forced savings. It provides tax savings. Homeownership allows you to lock in your monthly housing costs.Buying a home today, on a national scale, is cheaper than renting. No other investment vehicle lets you live inside it. Second, studies have shown that homeowners have, on average, 44 times the amount of wealth that renters do. The average homeowner has 44 times the wealth that the average renter does. Third, if you purchase a home with an average purchase price in 2017, you can build more than $48,000 in family wealth over the next five years. Finally, some people argue that renting eliminates the cost of taxes and home repairs, but any expenses the landlord incurs are included in the rent payment. If you are renting, I hope you have a greater appreciation of the value of homeownership. If you have any questions about the cost of not owning a home or you’re curious what it would take for you to buy a home, don’t hesitate to reach out to me. I’d love to help you.

Why are home prices on the rise locally and nationally? I’ll explain the real reason to you today. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationWhy are home prices increasing? I did a little research and am excited to uncover the real reason for you today. Ultimately, it all boils down to supply and demand. I’m not trying to oversimplify things; this really is what’s happening at the local and national level. As you can see in the chart in the video above, anything less than six months of inventory is considered a seller’s market. In this kind of market, home prices will go up. A market with six or seven months of inventory is considered a neutral market. Home prices will only appreciate with inflation. We have not had a neutral market in quite a while. Anything above seven months of inventory puts us in a buyer’s market. Since there is an oversupply of inventory, prices start to go down. We have been in a seller’s market for the last five years. Here in Richmond, inventory levels tend to vary by location. The further out you get from the city, the more these numbers get skewed. At the national level, however, we have been in a seller’s market for the past four or five years. According to the National Association of Realtors, there are only 3.9 months of inventory for sale. That is the reason that home prices are going up. It looks like we will remain in a seller’s market for the foreseeable future. Again, here in Richmond, inventory can vary from area to area. If you have any questions about inventory levels in your specific neighborhood, just give me a call or send me an email. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } When are you committed to a real estate agent? Today, I’ll answer three common questions about agent exclusivity for homebuyers. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationAs a homebuyer, when are you actually committed to a real estate agent? There are three key points to consider.  1. Why do agents demand exclusivity when representing you on the buy side? I have eight buyer’s agent that work in our real estate company. They work really hard. Finding you a home means they are working seven days a week. They are passionate about serving you as homebuyers. When buyers show you houses, they use their years of expertise to find you a home. Some agents may show 20 or 30 houses to potential clients before they find one they want to make an offer on. That’s why agents have the agreement in place; they want to make sure they get paid. That said, the buyer’s agent does technically work for you for free. The seller actually pays their commission. The buyer’s agent just wants to get paid for their hard work. In our market, you typically agree to work with an agent for six months. 2. Did you already sign a buyer’s agent agreement? What does that mean if you did? Typically in our market, when you agree to work with a buyer’s agent, you will work with them for a period up to six months to find the home of your dreams. 3. How can you terminate the agreement if you aren’t happy with the buyer’s agent’s services? In most cases, you can simply say, “I’m just not happy. It’s nothing personal, this is a business relationship. I would like to walk away.” For the most part, no Realtor wants to work with someone who is unhappy with services. Sometimes it can get ugly if the agent is not willing to terminate that agreement. In that case, you can go over the agent’s head to their broker. Again, that rarely happens. In most cases, you’re going to meet your buyer’s agent and have some sort of relationship before you work out the exclusivity agreement. Those are just a few things you should keep in mind when working with a buyer’s agent. If you have any other questions about hiring an agent or buying a home, just give me a call or send me an email. I would be happy to help you!If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } The fall is an underrated time to sell. Here are five reasons why it makes sense.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Spring and summer may get all the publicity, but there are actually quite a few reasons why it makes sense to sell in the fall, especially this year. Here are five reasons why selling this fall makes perfect sense:1. Demand is very strong. According to the NAR Buyer Traffic Report, demand remains strong throughout the vast majority of the country, including many locations in Central Virginia. Inventory below $300,000 is sparse and highly coveted.2. There is less competition right now. With inventory down, there just aren’t a lot of homes for buyers to look at. It’s a strong seller’s market in homes priced $300,000 and below.3. The process will be quicker. Mortgage lenders and title companies aren’t as busy during the fall months, so they’re able to get deals moved along much more quickly. Buyers are also becoming pre-qualified much sooner, which increases the speed of the process as well.It’s a great time to be a move-up buyer. 4. There will never be a better time to move up. There is so much pressure on higher priced homes right now because the inventory for these homes is high. If you’re a move-up buyer, you can take advantage of the conditions by selling high and buying low in a higher price range. This is the best time in years to move up.5. It is simply time to move on. This time of year could be an exceptional time for you and your family. Maybe you’ve been thinking about making a move for a while or maybe you just realized it’s time for a fresh start. Regardless, we’ll be here to help.If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } When selling your home it’s important to choose the right person to work with. You should always interview multiple Realtors.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationSelling your home is a big undertaking—you want to make sure that the person who helps you is qualified to do so. So, should you interview more than one Realtor as you enter the listing process? The answer is: of course. Your home is usually your most important asset. Last night I had a meeting with a couple about the sale of their home. Everything went well and at the end of the night, I asked them if they felt comfortable moving forward. The wife replied with: “Absolutely!” Her husband didn’t look so sure. After looking at his wife for a moment, he spoke up to say that they had two more Realtors lined up to interview. At that point, I offered to call the two Realtors and let them know that a decision had been reached. Again, the wife seemed enthusiastic—the husband, not so much. I of course told them I was kidding. At that point I found out they had just had a bad experience with a previous Realtor. I absolutely understand this. As a Realtor, I fully understand the importance of talking to multiple agents before making a decision. There are four key areas that all sellers should be comfortable with in the sale of their home. Ultimately, there are four areas that sellers need to be comfortable with before settling on an agent. The first and most important is price. If someone meets with three different Realtors and receives a vastly different price between the three of them, this is a bad sign. Though the prices will not be identical, there should be a general range within which all the prices fall. Next is marketing. Finding out what a Realtor’s marketing budget will be is key. You should also ask how, specifically, an agent plans to expose your property to the public. The third thing to consider is negotiation experience. If you were having chest pains and needed to choose a cardiologist, you would definitely seek out the professional who had spent the most time in their profession. When something as serious as your home is on the line, you want to make sure you’re working with someone who knows what they’re doing. A Realtor should have experience in negotiation, too. A home that sits too long on the market is likely not under the supervision of a Realtor who knows how to negotiate the best deals. A quality professional should be able to drive sales forward instead of letting things remain stagnant. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Housing inventory has hit a 30-year low. How does this shortage impact you as a homebuyer or seller?Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationNew data from CoreLogic shows that even though buyers turned out en masse in the first quarter of 2017, homeowners did not make the jump to list their properties for sale in the second quarter. As a result, housing inventory for the second quarter hit a 30-year low!Sales are slowing down, but it’s not due to lack of affordability—it’s the low inventory levels.  Unsold inventory in the second quarter was at 1.9%, which is the lowest second quarter reading we’ve had in over 30 years. The second quarter of 2017 posted the lowest inventory we’ve seen in 30 years! Thanks to low inventory, home prices are marching even higher, which is good news. Home prices are up 50% since the market dropped. Back when the market was shifting, I had to be very diligent when talking to potential sellers about their equity position because 50% of them—if not more—were upside down. It’s very rare to see that these days, so we are in a better equity position overall.   Low mortgage rates are keeping the market very affordable. However, affordability will be a challenge in the years ahead until we resolve this inventory shortage.Inventory across the United States has been down for 25 consecutive months. According to the National Association of Realtors, we now have a 4.3 months supply of inventory, which is pretty much a seller’s market. That said, real estate is local. Here in Richmond, market conditions for start-up homes or trade-up markets are very hot right now. Homes below $250,000 are selling quickly, and homes below $200,000 are getting multiple offers. That’s great news for sellers. Here’s the caveat: If you are a luxury or premium homeowner, the market in Richmond is following a similar pattern as the rest of the country. The luxury market is a buyer’s market. There is much less demand, and it doesn’t look like that will change anytime soon. If you are a seller in the $250,000 and under price range, you have a great opportunity to sell in a seller’s market and move up to the luxury home market. So, if you are thinking of selling your home, now is a great time to do so. If you would like to learn more details about your local market or you’re curious about what your home is currently worth, just give me a call or send me an email. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Why should you consider selling your home this summer? I have five reasons to start.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation The summer selling season is off to a hot start. Here are five reasons why you should consider selling your home this summer.1. Demand is really strong. I want to put a little disclaimer on this. It’s very location-sensitive. Certain areas are moving very fast and others aren’t. If you want more information about a specific market, let me know. The $250,000 and under market is absolutely nuts. 2. There is less competition. With such low inventory, the really good homes are selling quickly and for great prices.3. The process is going to be quicker. It’s easier to sell now than it has been in years past.4. There might never be a better time to move up. All the conditions are aligning. Home prices are predicted to go up by 5% this year, so waiting will end up costing you no matter what the price is now. You have an opportunity to sell high and buy low right now.It might just be time to move on. 5. It might just be time to move on. My wife and I decided last November that it was time for us to move on and up into our dream home, and we’ve been happy with the decision ever since.Maybe it’s time to reassess the reasons why you would consider selling and whether or not it’s worth looking at this point. If you have any questions about the market in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } One Illinois homeowner is suing Zillow for their inaccurate Zestimate of her home’s value. This could mean big things for the industry.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation In case you haven’t heard, a woman in Glenview, Illinois has filed a lawsuit against Zillow claiming that her Zestimate repeatedly undervalued her house and created a roadblock to its sale. You can check out the full story here. It’s important to note that this suit is the first of its kind. Despite Zillow’s denial that they are offering appraisals, the fact that they promote the Zestimate as a tool for buyers to use when assessing the value of a property means that they do meet the definition of an appraisal under Illinois state law. The lawsuit also argues that Zillow should be licensed to perform appraisals before running these Zestimates, and that Zillow needs to obtain the consent of the homeowner before listing the Zestimate online, which I can certainly understand. The lawsuit asks that Zillow obtain a homeowner’s permission before posting the Zestimate. The Zestimate in question is for Miss Anderson, who bought her townhome for $626,000 back in 2009. The property overlooks a golf course and is in a prime location, so she listed the home roughly for what she paid for it. However, the home’s most recent Zestimate was only for $562,000. She is suing Zillow to remove or amend her Zestimate; she is not seeking monetary damages at this point. Zillow obviously has a different perspective on this website. They don’t view their Zestimates as appraisals. According to Zillow, Zestimates are simply a tool that helps people utilize proprietary formulae to assess value as a starting point. Unfortunately, the accuracy of these Zestimates leaves much to be desired. Zestimates have a median error rate of 5%, which can translate into a lot of money lost in a home sale. It will be interesting to see how this lawsuit plays out. Obviously, Zillow is a massive player in the real estate industry. They even purchased Trulia a couple of years ago, so this is a big deal. We’ll see if this lawsuit is just a flash in the pan or if it turns into something else. You can hear more about this lawsuit from Barbara Corcoran, who recently appeared on “Good Morning America” to discuss the lawsuit. Ultimately, this lawsuit should show you that you can’t rely on Zillow to come up with a home’s value. If you have any other questions about Zillow or real estate in general, just give me a call or send me an email. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } What is the top investment vehicle in America? According to Gallup, the answer is real estate.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationWhat is America’s favorite investment vehicle? Across the board, the answer is real estate. An American family’s net worth is significantly higher when they own a home. On average, families who own some real estate are worth $225,000, while renters are worth about $5,000. Another way to look at that is a homeowner’s net worth is 45 times greater than that of a renter. With those numbers, why would you pay someone else’s home off when you can pay for your own? Why pay for someone else’s home when you can pay your own mortgage? Gallup recently did a study where they asked Americans about which long-term investment vehicle is best. Real estate tops the chart at 34%, followed by stocks and mutual funds at 26%. Bonds only make up 5%. If you break that number down by gender, men think real estate is the best long-term choice 37% of the time, while women think it is the best choice 32% of the time. Even if you break it down by income category, real estate is still the top investment choice in America. If you check out the video above, you’ll see that people who earn over $75,000 are a bit more diversified in their investment choices. That’s because they have more assets and want to diversify their portfolio, but real estate is still at the top of the chart. If you are interested in investing in the best investment vehicle in America, or if you have any questions about real estate in general, just give me a call or send me an email. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Today, I’ll cover three things that you need to know about our current real estate market: price appreciation, pending sales, and inventory.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationThere are three main things happening in our real estate market that I want to focus on today: price appreciation, pending home sales, and our inventory levels. However, I want to point out that in 2016, 15,616 houses sold every single day. That number is going up this year! Homes are selling at a faster clip than they have in years. Now, home prices are up across all price points. Lower priced homes appreciated by 10%, lower-to-middle priced homes appreciated by 8.3%, middle to moderately priced homes appreciated by 7.3%, and higher priced homes appreciated by 5.5%. Homes in higher price points won’t see as much appreciation as others because once you cross the $500,000 mark, there is more inventory and less demand. Pending home sales are the leading indicator of future performance. According to CoreLogic, last month’s index reading is 2.6% above last year’s. The number of pending sales is the highest it’s been since last April, and the second highest since May of 2006, when we were at the peak of the market. Inventory levels are frighteningly low. The most troubling factor in our current market is the low inventory. According to Jonathan Smoke, the chief economist at Realtor.com, the biggest challenge for buyers this spring will be finding homes. My team and I can vouch for that; there is no inventory out there. Our nine buyer’s agents have to go knocking on doors to see if anyone is interested in selling their house. Even as inventory drops, demand keeps getting stronger and stronger. Check out the video to see one of the scariest home inventory charts that I’ve seen in awhile. While those are the three main factors to pay attention to in our current market, I did want to quickly mention interest rates. Rates are creeping back up again and recently leveled off around 4.5%. It is yet to be determined how those rising rates will impact the market. If you have any questions about our current market or if you are even thinking of selling your home, give us a call or send us an email. My team and I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Starting my day at 4:30 a.m. is one of the best decisions I’ve ever made. Here’s why I do it.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationToday I have a very special guest joining me. It’s my lovely, amazing, wife, Stephanie. We wanted to do a little something different today and talk about something that has really had a profound effect on our lives lately. The root of our newfound rituals is “The Miracle Morning” by Hal Elrod. The main idea of this book is that by getting up early, you can get more accomplished in the wee hours of the morning than most people can in their entire day. Before reading the book, the concept of getting up before the sun was foreign to me. I had a routine of going to bed around 11 p.m. and waking up around 7 a.m. That changed after reading this book. This book has had a profound impact on our lives. Stephanie and I now get up around 4:30 a.m. each morning. When we wake, the earth is very quiet and we get started on going through the different steps for our “Miracle Morning.” The first step is focusing on our spirituality. We like to read the Bible together and then journal about our thoughts.Next, we get to my favorite part: personal development time. We take 30 minutes to read, whether it be a book, a news article, or a blog. When we bring knowledge in from all these different places on top of the foundation we already have, that’s when our “Eureka!” moments happen.The final two pieces of the “Miracle Morning” are meditation and physical exercise, which we do three to five times per week. Once we started doing those things consistently over time, it had a profound impact on our lives and our family. It has been especially great for Stephanie.She homeschools our kids and runs a business out of our home, so she’s got little time to herself. By the end of the day, we are too tired to catch up on reading or exercise. That’s why getting up early and doing these things every day has been such a blessing. We’ve been able to add an extra two hours a day to just focus on ourselves so we can be better for each other, better for our family, and better for the people we work with. We wouldn’t have been able to stay with this if it wasn’t for the fact that we are both pushing each other to succeed. We motivate each other to get better, and that’s been such a great gift. We want to give you this gift, too. That’s why we’ll be giving away five free copies of this book to the first five people who like our Facebook post about it. If you have any other questions for us or you’re interested in buying or selling in 2017, give us a call or send us an email. We would love to hear from you.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } What's going on in the world of real estate? Today we'll take a look at the Richmond market and the nation as a whole to get a picture of how you could be affected.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationWhat's going on in the real estate market both here and across the nation? Gallup's U.S. Economic Confidence index shows us that consumer confidence is as high now as it has been for the last nine years. This started last year, so we can't give all the credit to our new president. This started under President Obama and has spilled over into the new administration. This means that consumers are also confident about buying and selling homes. I really want to stress that in terms of existing home sales, which continue to climb. We're in the strongest market I've personally seen since 2005. It's a little location-sensitive, but in most areas, homes are selling fast.Pending home sales—a leading indicator of future performance—are also up year over year. Inventory is down though, and our market is starving for it with demand so high. Existing inventory is down 9.1% overall with starter home inventory down 12.1% and trade-up home inventory down 12.9%. In every category, inventory is down. This downward trend of inventory started last year and continues to sink.“Demand for homes is high; buyers are starving for inventory.”Finally, we need to look at what's happening with interest rates. For years we said that they needed to increase, and it's finally happening. Luckily, the experts forecast that rates won't go crazy; by the end of 2018, they think they'll be up to just about 4.75% to 4.85% depending on how the economy performs.If you're thinking about selling your house, now is an outstanding time. There's no competition for you, but I think it's coming this spring and summer.It's also a great time to buy a home with interest rates still very low.If you have any questions, don't hesitate to give me a call or send me an email. I'd love to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } When is the best time to put your home on the market? Actually, the seasons don’t matter as much as which price range your home will be in.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationWhen is the best time to list your home? Should you wait until the spring or summer market, or should you sell now? Most people think that spring and summer are the best times to list and sell your home because things tend to look better that time of year. The skies are bright and the plants are blooming, so your home should look fantastic. However, when you are deciding when to list your home, it’s actually more important to consider what price range you will be in. For example, if your home is in the $300,000 and under range, it doesn’t really matter when you put your home on the market. Why? There is incredible demand in that price range. When you get to homes priced over $400,000, the demand just drops off; there aren’t as many buyers in that price range. “Which price range will your home be in?”If you are in those higher price ranges, it’s important to position your home properly because demand is so much lower and you are facing more competition. Low demand and high competition typically puts pressure on your home value. In the $300,000 and under range, there is so much demand for homes that we are running out of inventory. If your home is in that price range and you can sell now, then you should. You will beat all of the competition in spring and summer, and those markets will be more competitive in terms of inventory than we’ve seen in the past few years. At the end of the day, the decision to sell your home depends on positioning your home in the market. If you have any questions, just give me a call or send me an email. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Now that the election has been over for a couple of months, we can finally start to examine how it will impact the real estate market. Today, we'll discuss how the new administration affects buyers and sellers.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationHow has the election affected the Richmond real estate market? There's actually good news and bad news.The bad news is that mortgage rates have shot up since the election from a low of 3.47% in November to a high now of 4%. As rates go up, it puts more pressure on home buyers. We'll have to wait and see if it puts any pressure on home prices because we haven't seen that yet. In fact, we're seeing an increase in demand, probably due to many buyers jumping off the fence and into the market as they realize that these historically low interest rates won't be around forever. For home sellers, this could be great news in terms of increasing demand.Economists say this volatility is likely to continue as long as we transition into a new administration. Apparently, it's pretty normal, historically speaking. So what's the good news? Tax breaks could open up sales for the luxury market once again. That market has really stalled, especially here in Richmond. The demand for homes priced over $400,000 really decreased here. The tax breaks could also have a trickle-down effect on the rest of the market, too. We could also potentially see looser lending regulations, which could allow more buyers to qualify for a home and increase demand. Looser regulations could also stimulate more construction. If it's easier for builders to have access to funding, it could stimulate the building of new homes. “The good thing we can all get excited about today is that the election is finally over.”The good thing we can all get excited about today is that the election is finally over. I don't know if you feel the same, but I'm so glad that it's all over.Finally, we can't ignore the stock market. It's at an all-time high and continues to go crazy. This could be the market responding to the pro-business policies that the president is touting, or it could just be the fact that election is finally over and people are realizing that the world has not come to an end. Overall, I think we're seeing positive demand for both buyers and sellers in the marketplace. I hope this information is helpful and valuable for you. If you have any other questions about the Richmond market or you're ready to buy or sell a home, give me a call or send me an email soon. I'd be glad to help!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Experts are predicting an increase in mortgage interest rates in the near future. Here is how this will affect home affordability.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationMortgage interest rates have remained at historic lows, but how long will it be until we see a spike in rates? Today I’d like to take a closer look at interest rates and let you know where I think they’re heading. Right now, we’re looking at about a 3.5% interest rate for a 30-year mortgage, and even lower in some cases with 15-year or 10-year mortgages. However, Fannie Mae, the National Association of Realtors, and the Mortgage Bankers Association have all been hinting at an increase in rates soon. They’re predicting a .25% increase within the next 30 days or so. They’re also forecasting that over the course of the next four quarters, we’ll see up to a half percentage point increase. This may not sound like a big deal on the surface, but let’s take a look at how these numbers will affect affordability. On a $250,000 loan at the current 3.5% interest rate through a 30-year term, interest payments would equal about $154,000. This is a lot of money. However, at a 4% rate, your interest payments would increase to $179,000. I don’t know about you, but I have a lot of other ways I’d like to spend that $25,000 difference!“Take advantage of these low interest rates while you can.” This possible interest rate increase affects home buyers and puts pressure on home sellers since buyers will have decreased purchasing power. Here’s another scenario to consider. When I started my real estate career in 2005, the average interest rate was 6.5%, which, at the time, was considered pretty low compared to previous rates. In 2008, these rates were lowered in an effort to stimulate the market after the crash. If interest rates do rise to 6.5% again, which I think they eventually will, that same loan amount of $250,000 over a 30-year loan would equate to a $289,000 interest payment. That means you would pay more in interest than you are for the property! Take advantage of these low interest rates now. If you’ve been thinking about buying a home, now is absolutely the time to do it. Alternatively, it’s a fantastic time to sell your home as well. Low inventory means that even though we’re in a fall market, you’ll face far less competition when selling your home.If you have any other questions about taking advantage of our market while you can, give me a call or send me an email. I’d be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Home prices have risen all across Central Virginia because the pending activity has created a modicum of active listings.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationHow are home prices doing in our market currently?   I just got a report from a local appraiser who pulled information directly from our MLS that will give you a general idea. The following is a list of surrounding counties and how their average sales price has fared year over year through the second quarter of 2016:  Chesterfield County is up 4%. Henrico County is up 2%.  Hanover County is up 5%. Richmond County is up 10%. Goochland County is up 1%.Powhatan County is down 2%. This is the only county that saw a reduction. New Kent County is up 2%.Metro Richmond is up 4%. “Prices are up and inventory is down in Central Virginia.”There are some interesting conclusions we can draw from this data, and one of those is in regard to pending home sales. The pending activity has created even fewer active listings, and that’s been a concern for the past two or three years because when there are fewer active listings in the marketplace, there are fewer homes for buyers to choose from. This effect has pushed home values up and increased prices.  Year over year, active listings in Central Virginia are down 18% overall compared to last year. In the city of Richmond, there are 23% fewer units than there were through the end of the second quarter of last year. In terms of inventory, Henrico County is down 13%, Chesterfield County is down 17%, and Hanover County is down 22%. This is good news for sellers, but not for buyers. If you’re thinking about selling your home, now is an excellent time because there’s no competition out there. There are pockets in Richmond where the market is very strong and pockets where it’s not. If you’re curious which pocket your home sits in, give me a call or shoot me an email and I’d be happy to do a free market analysis of your property. I look forward to helping you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Why is it important to be represented by a buyer’s agent when looking to buy a home?Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Why is having buyer representation so important when purchasing a home?When I got into the real estate industry in the smoking hot 2005 market, one of the things that I ran into early was a lot of dual agency. Basically, this is when home buyers and sellers would work with the same Realtor. This never made sense to me, and I very quickly made the decision to never do it in my business.I think that it’s important for home buyers to have independent representation on their side when deciding to purchase a home for a few different reasons:“Listing agents have a responsibility to their clients, not you.” 1.  Listing agents are working for the seller. The seller’s agent has a fiduciary responsibility to protect that seller’s best interests and get them the most money possible for their home. How is it possible for an agent with that kind of responsibility to get you the best deal possible as a buyer?2.  Dual agency is illegal in eight states. Because there is such a clear conflict of interest, dual agency has been banned in eight states.  3.  When looking at new construction homes, going directly to the builder poses the same problem. The builder’s representative has the same contractual fiduciary responsibility to the builder to look out for their best interests, not yours.4.  A buyer’s agent has experience working with buyers. Negotiating terms and going over the contract to make sure that the buyer’s interests are protected is the job of the buyer representative.When you’re looking to purchase your next home, make sure that your best interests are protected by hiring your own independent representation. We’re never too busy to answer any questions you may have about buyer representation or anything else related to real estate, so feel free to give us a call or send us an email anytime. We’d be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } In Richmond, buying a home is still cheaper than renting one. One of the main reasons is because of these historically low interest rates that we have been experiencing for the last eight years or so. Nationally speaking, buying is actually 36% cheaper than renting. From a national perspective, interest rates would need to rise to 10.6% for renting to actually be cheaper than buying a home. We haven't seen interest rates that low since 1989, so the odds of interest rates going back to that level anytime soon are highly unlikely.If you're on the fence about buying a home, it makes a lot of sense to make a move now. “If you're on the fence, now is the time to buy.”According to the National Association of Realtors, the average family's home is $225,000 if they own a home versus only $5,000 if they don't own a home. Now, some people are at a stage in life where they're not ready to own a home and renting is a better option, and I understand that. However, if you are in a position to own a home, the numbers are clearly in your favor.While interest rates are this low, you can benefit by owning a home not only to build your net worth but also simply for the fact that it's cheaper than renting. Why pay off someone else's mortgage when you could pay off your own?If you're thinking about buying a home or you have questions about the Richmond real estate market, give me a call. I'd be happy to help.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Is it cheaper to rent a home than to have a mortgage in today's Richmond market with the historically low interest rates?The answer is an emphatic NO! “   Historically low interest rates are making mortgages cheaper than renting.”Historically low interest rates are making mortgages cheaper than renting. According to Trulia, paying a mortgage is a staggering 34.8% cheaper than paying rent for those who put 20% down on their purchase. I saw that figure and thought it was unbelievable. For retirees, buying is cheaper than renting in all major metros by almost 42%. That's also an astonishing figure.If you take a look at the graph in the video above, you can see mortgage affordability vs. rent affordability in today's market. Today, 30% of your household income is going to rent if you're renting a home. With today's low interest rates though, only 15% of your household income is needed to carry a mortgage. It just makes sense to buy as opposed to renting. Gallup also recently conducted a poll across various demographics that found that America's choice for the best long-term investment is real estate, besting gold, savings, and the stock market, among others.If you have any questions about real estate, don't hesitate to reach out to me! Just give me a call of send me an email, and I'd be happy to help.