Seven Real Estate Trends in 2011

What's a New Year without some sort of "top 10" (or in this case, seven) list? This week Inman News posted a list of real estate trends in 2011 that was very interesting. Here's a more condensed version:

1. Have we finally hit bottom? Prices are stabilizing across the country. Though the actual amount of sales is down from peak years this is a step in the right direction.

2. Boomers move to the forefront. With 2010's popular first-time homebuyer tax credit, the median age of buyers dropped. But in 2011, baby boomer purchases far surpassed that of the Gen Y buyers. 

3. FSBO successes continue to decline. A decade ago 24% of all home sales were for sale by owner. Now that number is 10%, and of those FSBO sellers 40% knew the homebuyer. 

4. More buyers are using agents. 89% of homebuyers in 2011 used a realtor (compared to 69% in 2001). Since realtors make the process easier by sifting through the inventory for time-pressed clients, help their buyers navigate through the sales process and legal documents, and help their buyers get a loan, it makes sense that people wouldn't want to undertake such an important life event unassisted. 

5. More cash buyers. Though most buyers had to undergo the process of getting a loan, 13% of 2011 homebuyers paid all cash.

6. More married couples. After a drop in married homebuyers last decade, 2011 saw 64% of homebuyers married (the largest share since 2001).

7. Life changes drive real estate sales. Repeat homebuyers cite the desire for a larger home, a job transfer, or relocating to be closer to family and friends as the primary reason to purchase a home. 

Tips for Successful Winter Showings

With spring still a few months away, sellers could benefit from making sure their home is in top showing shape this winter. Here are a few tips for the colder, darker days of the year:

1. Keep it comfortable. Aside from some nice warmer days, most buyers this time of year wear heavier clothing yet won't usually take off their coat when going from home to home. Keep the heat in mid-60s so they don't feel roasted out of your home. The goal is to get them to stay longer in your home and feel comfortable there.

2. Make it bright. With less hours of sunlight now and overall more cloudy days, make sure all the lights in your home are on. Don't overlook burned out bulbs and keep blinds open during the day. No one's first impression should be dark and dreary. 

3. Air it out. Since homes are closed up throughout the winter there's less fresh air circulating. Avoid any unpleasant odors from pets, cooking, trash, etc. by airing out your home periodically. Don't rely on fragrances as those won't get rid of the odors. 

4. Clear the area. Keep the sidewalk, driveway, and walkway snow and ice free as best you can. The easier your home is to access, the better. 

5. Avoid winter clutter. Boots, coats, hats, and gloves all take up a lot of space. Potential buyers will be opening closet doors so avoid stuffing closets to the brim by storing non-winter clothing in under-bed storage bins or somewhere else out of sight. A packed closet looks small no matter how big it really is. Also, keep holiday decorations at bay; they shouldn't hinder people easily moving about your home. 

6. Be flexible with showings. Often, the weekends are the easiest time for buyers to go on showings. You'll ideally want your home shown when it is still light out so be flexible as to when your potential buyer can view your home.

Your Home Won't Sell if It's Not on the Market!

Now that December is officially upon us, I hear of more people taking their home off the market based on the sole misconception that home buyers stop looking during the holiday season. If this were true, then I'd have a lot more free time on my hands! Last year on Christmas Eve, I was showing properties in the morning before spending time with my family. Why? Most people don't have to work at this time, making their schedules available to view homes. For some families, it may be the only time where both spouses can really focus on their personal life and not work since many people use their vacation days in December and early January. I’m scheduled to close 5 deals this December which indicates that yes, people actually do buy and sell this time of the year.

Sure, the holidays are a busy time for people in general. But so is the summer…graduations, weddings, vacations, BBQs, sporting events, back-to-school activities, and more…yet people still carve out time to find a place to live! 

With less homes to view and motivated buyers, you may find you have more showings than you would if you listed your home after the first of the year. Unfortunately some sellers think they'll get "kicked out" of their home in the middle of their holiday celebrations, without factoring in that closing and possession dates are all negotiable. While some buyers would love to be in their new home for the holidays, others just want to finalize their future before year end and will move come January. I've done several deals where both parties agree to a closing date, then the now-previous owner rents the home back from the new owner for a short time. 

Plus, there is nothing like a home decorated for the holidays to help a buyer envision their own family celebrations there!