Real Estate Survival Guide with Terry Story

Emotional Support Animals

The discussion then moved on to emotional support animals These supportive pets are an extremely important part of many disabled person’s lives, but Terry believes that many people are abusing the system and disturbing other homeowners with an animal that isn’t really justified. Steve and Terry had a good laugh about the possibility of a cat as an emotional support pet.

Home Ownership Figures

Finally, the discussion centered on the fact that home ownership in the United States has reached its highest point since 2014. This clearly indicates that the market has some momentum and also that more and more people are finding it feasible to get on the housing ladder.

Terry noted that this is excellent news for the economy in general, since the housing market is a growth engine for economic activity, such as carpentry, painting, roofing, etc. Strong homeownership numbers also tend to help create healthy and stable communities, which can only be a good thing. (0327)

A Softening Of The Market

The share of homes sold at or above listed price dropped to 31% in March, from a peak that was around 40%. Many agents were pricing a little lower in order to get multiple offers. The market has continued to retract, to soften, since March which is a sign of the shift to more of a buyers’ market. However, less than being about a buyers’ market or sellers’ market, it depends on the price range you’re looking at.

Price Range And Inventory

In South Florida, where Terry works, one million and over is the luxury market for home prices, a market that has seen a definite softening. Depending on exactly where in town the home is, for homes priced under $500,000 it’s still looking like a sellers’ market. Under $300,000? That is decidedly a sellers’ market, as it has seen the lowest amount of softening, due in large part to it being the more affordable price range.

One characteristic of the current housing market is low inventory. People just aren’t putting their homes up for sale. This is particularly the case in the under $500,000 price range, where it seems many people aren’t willing to give up their homes. This means it’s more difficult to find a good buy in this price range, which ultimately hands the power to the seller. (0410)

We were delighted to welcome Terry Story on to the show again to discuss the latest news in the world of real estate. And there were some positive signs in the market once again this week with real evidence that housing prices continue to experience an upturn.

Nationwide Upturn

A recent article noted that prices of homes have increased by nearly $50,000 across all 50 states since the recession died down. This is obviously good news for those who already have a home, but Terry noted that it doesn’t apply across the board. Hartford, Connecticut; Chicago, Illinois; Virginia Beach, Virginia; and Baltimore, Maryland to name but a few are examples of areas that have experienced some price depreciation since 2009.   (0320)

Lowball Offer On House

Today’s talk with Boca Raton real estate agent Terry Story begins with a question from Steve about the wisdom of making a lowball offer on a home you’re interested in buying.  Terry states unequivocally that lowball offers are a bad idea all the way around, particularly in today’s seller’s market when a majority of listed properties receive multiple bids.  Not only are these offers almost always rejected when sellers have the upper hand, as they do now, but offended sellers generally won’t bother to make a counter offer.  If the rejected buyer wants to submit a new, higher bid, his negotiating power is far less than it would have been without the lowball bid.  (0227)

Remodel Now Or Later?

 When considering a remodel, Terry advised thinking ahead. Will a remodel allow the current owners to sell the house to new owners? Not if the remodelers go nuts. Remodeling for resale also has to take time as a factor. Enhancing the kitchen now and putting the home up for sale? Good idea. Enhancing the kitchen now and putting the home up for sale in ten years? Maybe not so much. Garage doors tend to be a go-to home enhancement, which led to a discussion on the importance of curb appeal, as well as the ability to display and/or hide a vehicle to better attract buyers.

Terry offered estimations on manufactured stone veneer, minor kitchen remodels, deck additions (not really a thing in South Florida), pool additions (that’s more like it!), siding, doors, and vinyl windows (Terry got carried away on a Three Little Pigs analogy; that’s why we like her).  (0213)

What Can You Do About Difficult Neighbors

Speaking of condos, Terry stated that an association had the ability to stop an owner’s plans for home renovations while a neighbor did not. If a neighbor one story above a condo wanted to replace carpet floors with laminate tiles, for example, an association could halt their plans while the annoyed neighbor living beneath them could not. When in doubt, consult the association; you never know what their rules will allow. (026)

The Price Is… Right?

Terry then considered the fine art of ideally pricing a home. Since 60 percent of homes sell for less than the asking price, Terry argued that the right listing can lead to interested buyers paying above that asking price. The trick rests with finding that right amount; ask too much and people will wonder why a house has been on the market for so long; ask too little and you get lots of offers which doesn’t help the seller. Terry added most overpricing dilemmas come from a combination of envy (the neighbor’s house sold for more, so why shouldn’t mine?) and emotional attachment to their own property (mine is better, so why aren’t the offers rolling in?). (0130)

When The Final Offer Really Is Final

A new rule states that a buyer making an offer can request confirmation from the seller’s broker that the seller has actually seen the offer. Terry confirmed that that can be done only if the offer was done in writing and if it has, the listing agent must then provide written documentation to the cooperating broker stating that the offer has indeed been submitted to the seller. This rule allows a buyer to know where they stand on the offer and to prepare for the consequences. (0116)

First Offer Is Usually The Best

In closing, Terry says the first offer is usually the best offer.  If the home is priced right, especially in this softening housing market, motivated buyers will pay fair price, barring the few who come in with ridiculous low-ball offers. (019)

#1 Interest Rates And The Economy

In its last meeting of the year, the Federal Reserve bumped up interest rates and projected two more rate hikes in 2019.  Slightly higher interest rates and talk of a slowing economy could make mortgages less affordable and increase the financial burden on those who qualify. (012)

Home Affordability Math

Steve notes that for the 2018 housing market, mortgage rates were near historic lows.  In the early 2000s, mortgage rates were close to 8%.  Now they are under 5%.  While lower rates help, higher home prices bite into affordability. (1226)

Luxury Homeowners Are Downsizing

Changing gears, Steve refers to a Business Insider article about a Palm Beach real estate agent who is surprised by her multimillionaire clients’ requests to downsize their homes. (1219)