Transformation: Depersonalize and Neutralize

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You want to sell your home quickly. The fastest way to do so is to start depersonalizing your home to create a blank canvas. You don't want to distract the buyer with your personal belongings, so pack up the photos, and let the buyer imagine their own photos on your walls and knick-knacks on your shelves all the while saying, "I can see myself living in this home!" Less is more.

To help create the blank canvas, paint is inexpensive and it will increase the value of your home, but you need to choose a neutral palette. The goal is to appeal to the masses because when you do, you get more showings, which leads to more offers and then, ultimately, the highest price possible for your property. 

What's Cooking?

 

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Although it took twice as much work as they anticipated, a family of four turns a generic, cramped kitchen into the kitchen of their dreams. The project took over 10 days, but it looks amazing with great style and so much more space.

Should I Sell Now or Wait Until Spring?

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Harness the Power of the Fall Season – List Your Home Now To Sell it Lightning Fast

Many sellers are unsure whether or not to wait until next spring before listing their home. The confusion comes with a combination of age-old schools of thought that predict the spring season as being almost the only season for homes to sell successfully. Not true.

A lot of homeowners are under the impression that homes are not selling at all, whereas in our own experience, time and again we continue to see completely the opposite results. So much so, that we are defying the myths of never ending days on market statistics with many properties going under contract in approximately two weeks. Here’s why.

There are so many buyers in the marketplace right now that are eager to lock in the phenomenal interest rates and market conditions that continue to allow a very significant amount of buying power. The interesting thing is that while it is a strong buyers’ market in that sense, sellers are still enjoying an edge with the lower inventory that comes with it being this time of year.

Regardless of which side of the fence you are on, either way you look at it the market is strong. People are out there buying. If there are fewer homes available on the market, then that only means that there is less selling competition. This of course translates to top dollar and incredibly quick, hassle-free transactions in which everyone comes out a smiling winner.

So to answer one of the most frequently asked questions I am getting these days, it IS a great time to sell your home. Sure, you could wait till spring. But keep in mind that so will countless other sellers and by the time springtime blooms are back out, so will equally as many more “for sale” signs, competing with you.

By listing your home now, you can harness the power of the buyers that are striving to find that perfect property before the holidays kick in.

Contact us today if you’d like a custom, home valuation report detailing exactly what we expect your home will sell for in today’s marketplace. Our team looks forward to hearing from you and helping your real estate goals come to fruition.

4th Quarter Real Estate Market Update

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If you’ve been watching the housing market for some time now, you probably know that we’ve been watching and waiting for a strong comeback since the market crashed in 2007. Well folks, that comeback has arrived!

Looking at the final results of our 4^th quarter 2012 market reports, it is clear that last year was one of the best we have had on record for quite some time now. Comparing to the year prior, we saw more home sales, selling for more money and we saw the average number of days our homes were on the market go down significantly.

Home Sales Increased in Volume

There are two noteworthy things to mention when it comes to the increase in home sales we are experiencing. First, to see a 25% increase year over year is significant in and of itself but then when you factor in that this took place during the busiest time of year with holidays – and slowest time for real estate – that really highlights our market’s improvement.

Prices Are On the Rise

A lot of markets across the US are waiting for the kind of upswing we experienced in the 4^th quarter of 2012. Our prices have risen 10% from the same time last year, uniquely making it a great time to sell yet worthwhile to buy a home considering the low interest rates.

Homes Are Selling Faster

With this increased demand we are enjoying as a result of low interest rates we re also seeing a much faster time frame for when homes sell. The average number of Days On Market has gone down a whopping 25% from the same time last year!

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Now, all areas of our region are not affected in the same way by these trends. Here is a detailed market statistics report outlining the same numbers broken down by specific neighborhoods. 

>> http://www.scribd.com/doc/125132681/4th-Qtr-Market-Stats

We encourage you to call or email for a discussion customized to your area so you can find out exactly what you to expect from the housing market moving forward.

Here’s to a great 2013 and we look forward to helping make your real estate goals become a reality!

10 Reasons to List Your Home During the Holiday Months

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Traditional school of thought dictates that selling a home during the holidays is a bad idea.  People are busy celebrating with their families and will hardly go shopping for a home, right?  Not so!  There are numerous advantages to listing a home during this season and below are ten great reasons to put a home on the market now. 

More serious buyers – Less time wasted

These are people who are interested in buying so there is a far greater chance of actually selling the property.  Nothing is more promising to a seller than a motivated and qualified buyer that knows what they want and is actively seeking to get it.

Fewer Homes On the Market

The less competition there is, the higher the chance there is for homes on the market to sell. Where during the peak season sellers might be dealing with some interest from buyers on their home, nonetheless there is more selection for buyers to choose from and they can stray to another property.

In January Inventory Increases – Chances of Selling Decreases

With so many homeowners assuming the holidays is a taboo time to sell there is a plethora of new listings in January, resulting in a diminished chance of your home selling.  Also, there is a risk that the price you may receive on the home can be less.

Decked Halls Look Great!

Homes are very appealing to prospective buyers when they are decorated for the holidays.  With all the festive décor, lights, greenery and added beauty of the season – the home shows very well and attracts buyers faster than if shown during other times of the year.

More Time To Browse Homes

Buyers have extra time off from work and are on vacation, which translates to a more aggressive buying pattern and more chances of your home being viewed.

Tax Advantages That Benefit the Buyer

Some buyers need to buy a property before the year ends so that they are able to claim a particular credit or exemption on their tax return.  The biggest tax benefit is filing for homestead. This requirement means that they are going to seek out a home and definitely purchase it prior to the New Year. 

Show The Home With Flexibility

Sellers that have their home listed prior to the holidays have the added advantage to be able to “pause” the process so they can celebrate the holidays, essentially not showing the home during a period of time during the break.  When the festivities die down, things can pick up again and the seller has not only managed to save potentially lost time but can also jump right back into the market.

Sell Now For More Money Then Delay Closing

Extended occupancy can be negotiated, leaving both parties the leniency to get through the holiday season and past the New Year so that all sides can rest assured the deal is done but it can follow through at a more convenient time.  For sellers this option is great because they are able to secure a higher selling price on the property before the market is inundated with new listings come January when the selling values drop.

Enjoy Non-Contingent Buyer Freedom

With the home sold, sellers can enjoy non-contingent buyer status during the rest of the slow season and take advantage of the market when there is a flood of new listings upon the New Year. 

Fewer Foreclosures On the Market

Many banks will suspend foreclosure listing during this time of year, especially on properties where there are still families occupying the home.  As a result of this, some of the competition that arises for sellers from low-priced foreclosures can be avoided during the holidays.
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Keep in mind that the idea of your home’s value increasing significantly over the next several months is a myth.  The truth is that housing values likely only go up when consumer income rises.  Pay rates increase at a rate of three to five percent each year and that is about the maximum yearly increase we can expect to see in a home as well.  So if you are wondering whether or not to put your home on the selling market now, or to wait – one important factor is that waiting will not provide much benefit.

Obama's 3.8% Tax Report

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* Remember I am not a CPA, always consult your tax adviser. 

There is a lot of confusion centered on the health care bill’s impact on real estate transactions and the talk is not exactly accurate. Let me first clarify one thing: yes there is a new tax on real estate. But what most people don’t tell you is that the tax is only on applied profits earned above and beyond the capital gains tax limits and this is not a blanket tax applied to all real estate sales.

Additional Taxation Only on Applicable Capital Gains

First, let me explain the capital gains tax limits in most states. Most states have a $250,000 threshold on capital gains for single persons and a $500,000 cap for married couples. What that means is that if you are a single person and after the sale of your home if there is a profit over and beyond $250,000 – that amount will be taxed an additional 3.8%. Let’s go over this with an example. Say you bought a home for $300,000 and then sold it for $375,000. The profit amounts to only $75,000 (well within the $250,000 limit for non-married property owners) so you will not be taxed on that profit.

Now, here is an example of a married couple that sold their lakefront home: Originally bought in 2002 for $100,000. They renovated the home and now it is a gorgeous and very desirable property. Assuming that other homes consistently gained value and sold for a lot more in recent years, the couple in our example sold their home for $650,000 (Wow! Show me an investment opportunity like THAT!). This couple received a total of $550,000 profit on the sale of their home and given the $500,000 married people exemption on capital gains, the taxable amount would be $50,000. How much does it add up to? The total amount of additional tax this couple will pay at 3.8% would be a mere $1,900 – a far cry from the thousands of dollars the rumors would have you believe.

Generous Income Requirements Prior to Tax Imposition

Another important aspect of the new real estate taxes is that the tax only applies to individuals with at least a $200,000 annual income and couples with a joint income of at least $250,000. That automatically eliminates about 97% of the American population right there.

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So you see? It’s not all that bad. The only thing I can think of that is important to remember about the capital gains tax exemption is that it must be a primary residence of the person or people filing for the exemption. Here is a document generated by the National Association of Realtors with some more scenarios showing how the real estate tax would impact people.

I've also attached a report done by the National Association of Realtors. If you'd like to read it, Click Here

* Remember I am not a CPA, always consult your tax adviser.

Smokin' Hot Austin Real Estate Market Update

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Folks, I have some fantastic news! I know things have not been perfect during the past five or six years – but the real estate market seems to be turning around. And I can say that just by looking at the phenomenal numbers we have coming in through August of this year. Here’s a look at our local marketplace: Click Here >>

Sales Numbers On the Rise

We are seeing an upward trend in all areas that matter. Closed sales were up 11.3% this year over last. Median sales price is up 9.1% as of the end of August 2012 compared to the same time in 2011. And though it’s a declining number, with inventory levels down a significant 22% -- it means we are sitting in the midst of a very strong market.

As there are fewer homes to choose from, prices begin to rise – mirroring the increased demand we see in these conditions. Finally, some good news about the real estate market!

Closed sales is another area where we experienced an upward trend. With 11.3% more closed sales this year through August versus last, the year-to-date increase is even higher at 18%. In fact, the overall number of homes sold has risen 20% for the entire year.

Strong Trends With Pending Sales

Looking at pending sales the news is equally as good, if not better. We saw a huge surge in the number of pending transactions by August 2012 versus August 2011, with a 35.8% increase this year! The number of pendings last August was 1,860 as opposed to this year’s very respectable 2,525. The year-to-date total percent increase is 23.8%.

Homes Are Selling Faster

Here’s another one of those “down” statistics that work out well for us. The number of days it takes to sell a property in our marketplace on average has gone from 77 days in August last year to a much lower 57 days through the end of August this year. This marks a 19% decrease in the average DOM for the year.

Inventory Levels Quickly Declining

Inventory levels have gone down significantly over the past 12 months with a 36% decline this August. We are now at 4.1 months of inventory versus 6.5 months just a year prior. These numbers mean that we are fully in a seller-centric market where demand is higher than inventory can keep up with. Though there may be some neighborhoods with slightly different inventory levels, for the most part it’s a sellers’ market.

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With all these great statistics you may be asking yourself what it all means to you in the greater scheme of things. If you’re a seller thinking about listing your home – this is absolutely the time to do it! Homes are selling faster than they have in years; we are seeing higher list-to-sale ratios, multiple offers and less selling competition.

Buyers also have it really good right now with the historically low interest rates still going strong and increased buying power with the fantastic opportunity to get more home for the same money.

If you would like us to sit down and work through your real estate goals – we’d love to explore your options. We invite you to contact us today at 512.775.7900 or nason@nasoncompany.com!