Altitude Homes | Keller Williams Realty

Category: Altitude Real Estate

  • Guide to Buying or Selling During the Holidays

    shutterstock_13901365Guide to Buying or Selling During the Holidays

    For home buyers and sellers wanting to get settled in a new home in the new year, here are a few things to keep in mind if you are buying or selling during the holidays:

    Buyers:

    • It can be a great time to buy – With fewer buyers in the market and sellers ready to have closure by year end, there are opportunities to be had during the holidays. If you don’t like what is currently on the market, let’s scour the market for listings that were previously on the market as there was seller motivation earlier in the year.
    • Stick to your list of needs – It is easy to let the emotion of the holiday overwhelm your good sense. Holiday décor and the smell of baked goods can make a property seem like a better fit than it truly is. Shop smart!
    • Timing – The holidays can cause more challenges to your contract to closing timeline than you may think. From federal holidays to people being out of the office on vacation, your closing deadline may be delayed. It is best to plan ahead and let your entire team know about your expectations and timeline so everyone can be on the same page. I can help you with this type of communication.

    Sellers:

    • It can be a great time to sell – Although there may be fewer buyers out, the buyers who are out are usually serious and ready to buy. Also, with visitors from out of town, someone considering a relocation may just have the time on their hands to look for homes during their vacation.  There may also be fewer sellers to contend with because some will have taken their homes off the market for the holidays. Finally, buyers who may have more time on their hands may be spending more time on the internet in their home search.
    • Going out of town can make home selling easy – It is easiest to show your home if you are not in it. Let me take care of the details!
    • Don’t go too crazy with the holiday décor – It is easy to add layers of holiday decorations on top of what is already in your home such as moving the couch just a little closer to the other living room furniture or cramping the stockings on the mantle. Avoid overwhelming clutter during the holidays and take out more than what you add. You want the space appearing bigger, not smaller.
    • Be clear about your timeline – If you get an offer on your home, be grateful, but also realistic. If the buyers are looking for a close date between Christmas and New Year’s, think about what this means for your holiday plans.

    The holidays provide an amazing opportunity for both buyers and sellers, but don’t get carried away. If you are thinking about a move, let’s strategize now. Give me a call or text: (253)222-2626 or email: john@altitude-re.com.

  • Appliance Lifespan

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    If you are considering purchasing a home, it is smart to find out the age of the different appliances and systems that come with the property. Replacing appliances is expensive, so it is a good idea to have an appliance replacement plan when you move into a new home. The first step is to make a list of the appliances that come with the home and the date purchased. Then compare that to the list below:

    Appliance Average Lifespan
    Refrigerator 13 years
    Dishwasher 9 years
    Gas Range 15 years
    Electric Range 13 years
    Washing Machine 10 years
    Dryer 13 years
    Air Conditioner (room) 10 years
    Central Air Conditioner 15 years
    Freezer 11 years
    Garbage Disposal 12 years
    Microwave Oven 9 years
    Water Heater Electric 11 years
    Water Heater Gas 10 years
    Tankless Water Heater 20+ years

     

    These lifespans are just an estimate, of course. The true lifespan will vary by model, manufacturer, and how well the appliances have been maintained. You can find out additional information on the particular model online. You can also ask for a maintenance record (both repairs and preventative maintenance) from the sellers. In some cases, like on hot water heaters or furnace, the service record may be listed on the side of the unit.

    You may also want to learn more about the different parts that need to be replaced on an ongoing basis. This might include a water filter for the refrigerator, filters for the furnace, and salt for a water softener unit.

    One other option is to consider a homeowner warranty and make sure it covers the appliances. Generally the term of this policy may be limited, but it is not unusual for appliances to break when their usage changes. For example, if the original homeowner did five loads of laundry per week, but your family uses closer to ten, this additional wear and tear on the appliance may cause issues.

    I like to help my buyers with tips like this that could save them money down the road. Questions? Give me a call or text: (253) 222-2626 or john@altitude-re.com.

    Download our free Homekeepr app to help keep up with your appliance and home maintenance by clicking here .

  • A Lack of Listings Remains ‘Huge’ Challenge in the Market

    A Lack of Listings Remains ‘Huge’ Challenge in the Market

    The housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures & short sales) are at their lowest mark in over 8 years. This has been, and will continue to be, a great year for real estate.

    However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. According to the National Association of Realtors (NAR), buyer traffic and demand continues to be the strongest it has been in years. The supply of homes for sale has not kept up with this demand and has driven prices up in many areas as buyers compete for their dream home.

    Traditionally, the winter months create a natural slowdown in the market. Jonathan Smoke, Chief Economist at realtor.com, points to low interest rates as one of the many reasons why buyers are still out in force looking for a home of their own.

    “Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”

    NAR’s Chief Economist, Lawrence Yun, points out that the inventory shortage we are currently experiencing isn’t a new challenge by any means:

    “Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in. Unfortunately, there won’t be much relief from new home construction, which continues to be grossly inadequate in relation to demand.”

    Bottom Line

    Healthy labor markets and job growth have created more and more buyers who are not just ready and willing to buy but are also able to. If you are debating whether or not to put your home on the market this year, now is the time to take advantage of the demand in the market.

  • Why Waiting Until After the Holidays to Sell Isn’t a Smart Decision

    Why Waiting Until After the Holidays to Sell Isn’t a Smart Decision

    Every year at this time, many homeowners decide to wait until after the holidays to put their homes on the market for the first time, while others who already have their homes on the market decide to take them off until after the holidays. Here are six great reasons not to wait:

    1. Relocation buyers are out there. Companies are not concerned with holiday time and if the buyers have kids, they want them to get into school after the holidays.
    1. Purchasers that are looking for a home during the holidays are serious buyers and are ready to buy.
    1. You can restrict the showings on your home to the times you want it shown. You will remain in control.
    1. Homes show better when decorated for the holidays.
    1. There is less competition for you as a seller right now. Let’s take a look at listing inventory as compared to the same time last year:

    20161114-eng-stm

    1. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge reaching new heights in 2017, which will lessen the demand for your house.

    Bottom Line

    Waiting until after the holidays to sell your home probably doesn’t make sense.

  • Happy Veterans Day!

    Happy Veterans Day!

    All of us at the Altitude Homes Team would Like to Thank all our current and former military members for all that you do and have done to protect our freedoms!! We Love you!  Press Play for a Special Message From Us To YOU!

  • The Truth About Housing Affordability

    The Truth About Housing Affordability

    From a purely economic perspective, this is one of the best times in American history to buy a home. Black Night Financial Services discusses this in their most recent Monthly Mortgage Monitor.

    Here are two of the report’s revelations:

    1. The average U.S. home value increased by $13,500 from last year, but low interest rates have kept the monthly principal & interest payment needed to purchase a median-priced home almost equal to one year ago.
    2. Home affordability still remains favorable compared to long-term historic norms.

    The report explains:

    “Even though the value of the average home in the U.S. increased by about $13,500 over the last year, thanks to declining interest rates it actually costs almost exactly the same in principal and interest each month to purchase as it did this time last year.

    Even taking into account the fact that affordability can vary – sometimes significantly – across the country based upon the different rates of home price appreciation we’re seeing, that’s a pretty incredible balancing act between interest rates and home prices at the national level…

    Right now, it takes 20 percent of the median monthly income to cover monthly payments on the median-priced home, which is well below historical norms.”

    However, the report warns that affordability will be dramatically impacted by an increase in mortgage rates.

    “A half-point increase in interest rates would be equivalent to a $17,000 jump in the average home price, and bring that ratio to 21.5 percent. This increase is still below historical norms, but puts more pressure on homebuyers.”

    Bottom Line

    If you are ready and willing to purchase a home of your own, let’s get together to find out if you are able to. Now is a great time to jump in.

  • It’s Not Always Marriage Before Mortgage

    It’s Not Always Marriage Before Mortgage

    There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still, others might think their current income would never enable them to qualify for a mortgage.

    We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting statistics on the first-time buyer:

    20161108-stm-eng

    Unmarried couples jumped up to the third spot, right after their married counterparts and single women. Many couples are buying a home before spending what would be a down payment on a wedding.

    Bottom Line

    You may not be much different than many people who have already purchased their first home. Let’s get together to determine if your dream home is within your grasp.

  • Buying to Renovate

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    Buying to Renovate? Keep these tips in mind!

    Because many areas are experiencing severe inventory shortages some buyers decide to buy something that isn’t quite perfect now, but they plan to make it perfect through renovation. If you are in that category, here are some things to keep in mind:

    • REALITY CHECK –If you remain living in your home while you are renovating, you will be faced with some level of chaos. There will dust and displaced household items and unfinished walls, drywall and flooring, and some people can’t handle that kind of environment. If that sounds like you, you may want to complete the renovation before moving in.
    • VISION –  Start with a list of things you would like to change and then make the list visual. I recommend putting together a vision board or PowerPoint of photos you like from sites like Houzz or Pinterest.  There is no better way to convey exactly what you want than by showing a photo of the type of changes you want.
    • PROPERTY/SITE ANALYSIS –Do a thorough analysis of the home site. Is there anything on the site that could be a restriction from doing the type of renovation desired? Check the title report, but also contact the local city or county planning and licensing department to find out what permits are required.
    • MEASUREMENTS –Everything from cabinetry, countertops, and even drywall needs accurate measurements in order to accurately budget for these items. There are many local companies and even home improvement stores that offer measurement services. Don’t rely on your own measurements.
    • TALK TO THE PROS –The pros will provide time- and money-saving tips to enhance your project. And never talk to ONLY one trade.  You have to talk to at least two plumbers or electricians to make sure you are getting the best rate and the best fit for your personality type.
    • SET YOUR BUDGET –It is critical to discuss both time and money. If a kitchen cabinet company is promising they will have cabinets built in six weeks, ask them what the price will be if they miss that deadline.  This will keep everyone on track and will let the vendors know that time is important.  Always pad the budget with at least 15% on each item. This allows the extra room needed to do it right and to allow for unexpected challenges.
    • SET THE TIMELINE AND BE PREPARED – Before the renovation, create a progress book which is a time diary of the renovation. Take daily photos of the work that has been done. The Progress Book can come in handy in the event there is ever a dispute about the quality of work.  Imagine a plumber doing some work that ends up being problematic.  The photos can be a wonderful way to show the steps the plumber did to complete the job.  It is also an excellent way to keep everyone honest and to keep the quality high. Consider taking video of any important renovation moments like a beam being put up or a kitchen being demolished.  These are also wonderful memories for later.

    Making the decision to renovate takes more thought than just envisioning the finished project, Research and investigation are the most important parts of any renovation.  By being prepared and by doing the homework you or your buyer will be richly rewarded when the renovation is complete. Thinking about buying to renovate? Contact me: (253) 222-2626 or email john@altitude-re.com.

  • Why Watching Interest Rates Can Help Your Bottom Line

    interest-rates

    Why Watching Interest Rates Can Help Your Bottom Line

    Depending on your age, you may or may not remember when mortgage interest rates soared to 18.45% in October of 1981. Can you imagine? It is 1981 and you want to buy a home that is valued at $100,000. You put down 20%, but your mortgage payment is still $1,235.08 per month for principal and interest. If you didn’t refinance when rates dropped, you would have paid $364,000 in interest alone on this 30 year fixed rate $80,000 mortgage.

    Mortgage interest rates have a huge effect on buying power and ensuing monthly payments. Let’s look back to our 1981 moment in time as compared to August, 2016 and assume we are obtaining a 100% loan on a new median sales priced home (and calculating principal and interest only on the loan):

      Mortgage Int. Rate Median Sales Price Monthly Payment Total Interest Paid
    October 1981 18.45% $69,600 $1,074.52 $317,228.17
    August 2016 3.44% $284,000 $1,265.79 $171,685.86

    Of course, this is an extreme example, but isn’t it remarkable that it is only $191.27 more per month to buy a median-priced home today than it was 35 years ago at the respective interest rates?

    Let’s look at a more-recent example – 10 years ago before the sub-prime mortgage crisis:

      Mortgage Int. Rate Median Sales Price Monthly Payment Total Interest Paid
    August 2006 6.52% $243,900 $1,544.82 $312,236.40
    August 2016 3.44% $284,000 $1,265.79 $171,685.86

     
    In this case, it is $279.03 cheaper per month to buy a new median priced home priced $40,100 higher!

    The near-historic low mortgage interest rates represent a unique moment in the market for buyers and for those considering refinancing. After years of keeping the short term rates at zero, the Federal Reserve raised rates for the first time last September and has signaled they may raise rates again at their December meeting.  These increases have an effect on mortgage interest rates which, in turn, has an effect on buying power. The below chart illustrates the average annual interest rates from 1972 to year-to-date 2016.

     

    Don’t let this opportune time pass you by! The clock is ticking. Give me a call or text: (253) 222-2626 or send an email to john@altitude-re.com to learn more.

    Sources: http://www.freddiemac.com/pmms/pmms30.htm

    https://www.census.gov/construction/nrs/pdf/uspricemon.pdf

     

  • NAR Reports Show Now Is a Great Time to Sell!

    NAR Reports Show Now Is a Great Time to Sell!

    We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house.

    Let’s look at the data covered by the latest Pending Home Sales Report and Existing Home Sales Report.

    THE PENDING HOME SALES REPORT

    The report announced that pending home sales (homes going into contract) are up 2.4% over last year, and have increased year-over-year now for 22 of the last 25 consecutive months.

    Lawrence Yun, NAR’s Chief Economist, had this to say:

    “The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country. It’s leading to home prices outpacing wages, properties selling a lot quicker than a year ago and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices.”

    Takeaway: Demand for housing will continue throughout the end of 2016 and into 2017. The seasonal slowdown often felt in the winter months did not occur last winter and shows no signs of returning this year.

    THE EXISTING HOME SALES REPORT

    The most important data point revealed in the report was not sales, but was instead the inventory of homes for sale (supply). The report explained:

    • Total housing inventory rose 1.5% to 2.04 million homes available for sale
    • That represents a 4.5-month supply at the current sales pace
    • Unsold inventory is 6.8% lower than a year ago, marking the 16th consecutive month with year-over-year declines

    There were two more interesting comments made by Yun in the report:

    “Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in. Unfortunately, there won’t be much relief from new home construction, which continues to be grossly inadequate in relation to demand.”

    In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are, and will remain, in a seller’s market with prices still increasing unless more listings come to the market. 

    “There’s hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring. The market fundamentals — primarily consistent job gains and affordable mortgage rates — are there for the steady rise in first-timers needed to finally reverse the decline in the homeownership rate.”

    Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a ‘sizable’ supply does not enter the market.

    Bottom Line

    If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out looking for your house.