RealNews RoundUp
Each week I round-up the best real estate articles and break them down for you in an easy to digest format. Here are the articles I’ve found interesting over the last couple weeks:
The Article: Keeping Current Matters, Understanding the Benefits of Owning Your First Home
The Highlights: Homeownership is an undeniable part of the American dream. In fact, in 2022 65.8% of Americans owned a home. In a recent poll of first-time homebuyers by Pulte, the biggest motivation for purchasing a home? “They wanted to.”
Generic, but true. Homeownership offers many benefits, from avoiding rising rents and building equity, to simply being a smart long-term financial investment. But more than anything, it’s the somewhat undefinable desire to be independent and create a home that is fully reflective you the owner.
The article goes into more detail…
· More stability than renting: With a fixed-rate mortgage, your monthly housing payment is predictable over the length of that loan. This stability can give you a peace of mind that renting can’t provide.
· Grow Your Wealth as Home Values Climb: Owning a home can be a great long-term investment. While renting may be the more affordable option short term, you don’t build equity.
My Take: This isn’t a revelation—but it is all true! The benefits of home ownership long-term are undeniable. Homeownership offers stability and financial benefits that far outweigh renting over the long haul.
In fact, the difference between the net worth of homeowners versus renters is staggering. Homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300. Additionally, over the past decade, the median-priced home in the U.S. has gained $190,000 in value, making the typical homeowner 40 times wealthier than if they had remained a renter.
With that said, homeownership isn’t always the immediate right answer. There can be perks to renting too.
First, renting might be the right option if you’re new to town and/or aren’t sure where you want to land at first. Renting is a short commitment, but when you buy it’s hard to get all your money back out of the deal if you have to sell within 2-3 years. If you’re still somewhat unsettled in life, renting might be right.
Additionally, you limit your downside when you rent. Unexpected home repairs aren’t your problem to fix. And! Renting is cheaper at first—no need to save for a down payment.
Buying isn’t something you should jump into without thinking through your circumstances first, and it does take some long-term planning, but it does win out for most people as the best option over the long haul.
Article: Keeping Current Matters, Are You a Homebuyer Worried About Climate Risk?
The Highlights: The number of natural disasters per year has increased significantly in recent years. Over the past five years alone, the U.S. has experienced an average of 18 billion-dollar climate disasters per year.
With this increase, now more than 4 out of 5 prospective homebuyers consider climate risks as they shop for a new home. The article provides these tips before purchasing a home to help alleviate climate-related risk:
· Evaluate climate risks: Before buying a home, it’s check if it’s in a flood-prone area using the FEMA website, review the seller’s property disclosure for any past damage, and get an inspection for issues like cracks and mold.
· Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
· Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial.
My Take: Roughly 13% of Americans moved each year before the onset of the pandemic, and since the pandemic, 22% of Americans have moved in response to the virus and their circumstances.
With most of these people moving to the east coast, with the Carolinas and Florida taking top spots, where hurricanes and flooding loom, this is a timely and important consideration!
The threat of natural disasters clearly aren’t deterring people from moving to the places that experience these disasters, but it is something everyone should consider, no matter where you live, but especially if you’re making a big move across states to an unfamiliar area where these threats exist.
My best advice: Talk to hyper-local experts! Find a trusted realtor who lives in the neighborhood (or knows of people who do), find a neighbor, even perusing the headlines of a local paper can help provides some much needed guidance.
Your home is your most important investment! You should protect yourself and know what you’re getting into before you get in t
The Article: Inman, 5 Common Mistakes Agents Make with Real Estate Photography
The Highlights: Good photos can make all the difference, but many agents miss out on opportunities due to low-quality photography. The article suggests the following as common mistakes to avoid in order to get the best offer possible:
1. Poor lighting: One of the most significant mistakes agents and their real estate photographers make is not paying enough attention to lighting. Poorly lit photos can make a property appear dark, cramped and uninviting.
2. Neglecting proper staging: Effective staging can greatly enhance the visual appeal of a property. Unfortunately, some agents fail to properly stage their real estate listings prior to the photography appointment. It’s essential to declutter, clean and arrange furniture in a way that helps buyers visualize the space as their own.
3. Showing too few images: The quantity of photographs can have as much of an influence over a buyer’s first impression as the quality. If you’re shooting a small space, try supplementing interior shots with neighborhood amenities to highlight the tennis courts or a community clubhouse and pool.
4. Over-editing photos: While editing can enhance the visual appeal of photographs, over-editing can have the opposite effect. Agents’ real estate photographers should strike a balance between editing for brightness, contrast and color correction without making the images look artificial or heavily manipulated. Buyers appreciate authenticity.
5. Failing to showcase important features
Real estate agents understand the importance of showcasing a property’s unique features, but sometimes their photos fail to draw attention to those features. Potential buyers are often looking for specific details such as updated appliances, spacious rooms and yards, landscaped exteriors, views and outdoor living areas.
My Take: The saying goes, “A picture speaks a thousand words” but in real estate, a picture speaks even more. Photos are the hook people need to see a property in person, so it’s a critical first step to get right! Your photos need to stand out, and the mistakes listed in this article are not only common, but they could cost you and your client real time and money.
I agree with everything listed here, but I’d add two things to get your listing to stand out in the crowd. Watch my video HERE and HERE to learn what they are.