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8 Bad Reasons to Not Make An Offer On a Home

04 Thursday Mar 2021

Posted by The Hanley Home Team in #HomeBuyer, #HomeBuyingTips, #HomeOwner, #housegoals, #househunting, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #Movingday, #RealEstate

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Buying a home can be a nerve-racking experience, no matter what price range you’re in. Spending (or borrowing) hundreds of thousands of dollars, uprooting all of your belongings, and stepping into the semi-unknown can stress even the most level headed people, causing second thoughts and doubts. 

There are plenty of legitimate reasons not to make an offer on a house, like: structural issues, it’s over your budget, or the location isn’t ideal, to name a few. 

But, not all doubts are created equal. And sometimes we mistake trivial concerns for real ones, creating reasons not to buy a house that shouldn’t be there. 

Here are eight bad reasons for not making an offer on a house: 

1. Because you want to wait and see if the price goes down 

A wait-and-see approach is much more likely to end with someone else buying the house before you get a chance to. If you like it, there’s a high likelihood that someone else likes it too. Even if a house you like is overpriced, you’re better off making an offer and negotiating, than simply waiting for the owner to lower their price.

2. Because one of your friends doesn’t like it 

People’s opinions can impact us a lot. But when it comes to homeownership, you shouldn’t necessarily listen to what your friends think. After all, you’re the one who’s going to have to live there… so if you like it, go for it! 

3. Because the listing sites have a price estimate that’s different from what the seller is asking 

Some listing sites provide an approximate estimate of what a home is worth. But keep in mind that these are based on algorithms and publicly available data, not an in-person inspection and analysis of value. So, take them with a grain of salt, not as gospel. 

4. Because you don’t like the light fixtures (or something else that’s easy to fix) 

Small cosmetic defects can make a huge visual impact, but always try to focus on the big things, and not on things that are easy to change or fix. Items like light fixtures, paint color, and decor are easy to fix, so try and see past even the worst of taste.

5. Because you think mortgage rates will continue to fall 

In a competitive market, or on a nice-enough house, there are likely to be other bids, and sometimes more than just a few. Don’t let this deter you from making an offer though; you have as good a chance as anyone else, so just give it your best shot! 

6. Because there are already other bids 

In a competitive market, or on a nice-enough house, there are likely to be other bids, and sometimes more than just a few. Don’t let this deter you from making an offer though; you have as good a chance as anyone else, so just give it your best shot!

7. Because you’re afraid that the process will be too complicated 

Buying a home is a bit complicated. There’s a lot more to it than the average person ever knows. But, as long as you work with a great agent, the process shouldn’t be all that complicated for you. Most of that stuff goes on behind the

8. Because you want to wait for the “perfect” time to buy 

The “perfect” time to buy is when you want to or need to move. Timing the market is almost impossible to pull off. Usually, if the market does go down considerably, there are other factors at play that may get in your way of buying at that time anyway, whether it be interest rates, ease of getting a loan, or the overall economy and employment.

And #9 – the worst thing you can do is to not call us to help you! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

9 Open House No-No’s

04 Thursday Feb 2021

Posted by The Hanley Home Team in Uncategorized

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When buying a home, there may be no single event as important as the open house. Attending an open house gives you the opportunity to see, feel, and experience the home for yourself, far beyond what’s possible from looking at photos, taking digital tours, or driving by on a sunny afternoon. The open house is when you really get to find out whether you can see yourself living in the home or not. 

But if you want to get the most from an open house, there are some things to keep in mind (and some costly mistakes you’ll want to avoid). Not only is it possible to cost yourself money at an open house, but in some (rare) instances, a seller might not even entertain an offer based on somebody’s behavior at the open house. 

So if you want things to go smoothly, and want the best opportunity to buy your dream house, here are nine things you should never do at an open house: 

1. Keep your shoes on when you’ve been asked to take them off

No one likes to walk around without shoes on, especially in somebody else’s home. But as an open house guest, you need to respect the seller’s instructions. If you refuse, you might be asked to leave, and blow your chance at landing an accepted offer. 

2. Let your children roam around unattended 

Parenting is difficult, and bringing your kids along with you to an open house is understandable—after all, they’ll be living there too. But when touring an open house, make sure to keep an eye on your children, because, as we all know, they tend to get into things, and a packed home is full of all sorts of interesting items. A good rule of thumb is to just pretend that you’re at a museum. 

3. Loudly make negative comments about the house

We all have opinions, especially when it comes to a house that we’re considering paying hundreds of thousands of dollars for. But keep your negative opinions between you, your partner, and your agent, because if the seller’s agent overhears you, they might not only feel insulted, they’re likely to relay the comments to the seller, who might not take them too kindly if you put in an offer. 

4. Pry into the seller’s personal belongings 

Being allowed into someone’s home for an open house does not give you carte blanche to go through their personal stuff, no matter how intriguing it might be. Opening dresser drawers, touching clothing, pulling back bedding, and rifling through bookcases is a no-no, and violators are likely to be asked to leave. You’re there to see a property, not personal property. 

5. Overshare 

Unless you’re a trained spy, you probably don’t think too much about tempering your speech when chatting with strangers. But an open house is an exception, and you might want to consider what you’re revealing during conversations with (and around) seller’s agents. Even though talking about how much you’re pre-approved for, where your kids go to school, how desperately you need a new home, or that your lease is ending soon might seem harmless, it can put you in a poor position when you begin negotiations, so act accordingly. 

6. Make an offer

Even if you absolutely love the house and would be willing to give up a kidney for the chance to live there, you don’t want to make an offer during the open house. Not only would this be out of the norm, but it would also reveal your eagerness and put you in a position of weakness during negotiations. So even if you’re absolutely obsessed, take a deep breath, step outside, and regroup with your agent and your loved ones before making a decision. 

7. Spend too little time there (if you’re interested) 

There’s no need to spend hours at an open house, but if you walk in and walk right out, you might be doing yourself a disservice. To be sure, sometimes you know that it’s not a fit right away, but if you dolike it, there’s nothing wrong with spending some time looking around and taking in the details. At the very least, it might help you remember the little things that you’ll be thinking about once you start planning to move

8. Lie about your intentions 

Some people like to play games, but there’s really no upside to being disingenuous about your intentions during an open house (or after). Whether you’re just there to look, or are truly serious about making an offer, don’t present yourself otherwise. Not only is it bad form, but word can travel a lot quicker than you might think, and the next time you want to be taken seriously, you might not be. 

9. Show too much enthusiasm 

When we love a property, it can be difficult to contain our excitement, especially if we’re not used to playing our cards close to the chest. The open house, however, is one occasion when you’ll want to put on your poker face and play it cool. If you show too much enthusiasm, the seller’s agent (and therefore the seller) will know that you’ll do just about anything to get the house—and that’s not the position you want to be in. 

We are happy to attend an open house with you! Just reach out – Kevin and Jennifer Hanley, REALTORS 904-515-2479 HanleyHomeTeam.com The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside

What Could 2021 Mean for the Housing Market?

28 Monday Dec 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #HomeSeller, #housegoals, #househunting, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #Movingday, #RealEstate, #sellingyourhome

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This year has been nonstop uncertainty. The coronavirus pandemic led to shutdowns and major changes to our everyday lives. Those changes are likely to continue as we head into winter. Cities have been hard-hit, not only in terms of public health, but also economically. 

Despite everything, the housing market is one thing that’s been consistently strong this year. So, what do experts think next year will bring? Will that positivity hold steady, or are we in for a bust? 

Rising Prices
If inventory remains low into early 2021, it’s possible that home prices will continue to go up. The median asking price for properties in September 2020, according to Realtor.com, was $350,000. That’s up 11% compared to last year. Inventory has declined 39% year-over-year, despite a quick burst of new listings in August. Increased demand and a dwindling supply are great for sellers but not so much for buyers.

Sprawling out in 2021

Suburbs Reign Supreme
There has been a shift in interest away from urban areas, as many people are packing up to find homes with more space and less proximity to others. Some of the most popular areas in 2020 have included Colorado Springs, CO; Reynoldsburg, OH; and Rochester, NY. We could see continued flight from urban areas to suburbs in 2021. 

Builder Confidence
Despite all of the headwinds and what feels like a barrage of negative information, there is some optimism in housing starts. Consumer confidence was high in September, and builder sentiment similarly seems to be at an all-time high. 

Could There Be Downsides?
While there are some indicators of positivity, there are also potential negatives that could come into play. Unemployment numbers are still high, and rolling lockdowns throughout the winter could cause those numbers to rise. Some predict that foreclosures could also rise as a result. 

When facing uncertainty and anxiety, there’s a tendency among consumers and would-be homebuyers to hoard their cash. Personal savings rates have actually gone up recently, but that means there may be less spending going on, particularly on bigger items like houses. 

Finally, while there are some unnerving indicators, we do know with almost certainty that record-low mortgage rates will hold. The fed has signaled their intention to keep rates low for the foreseeable future.

IT’S A GREAT TIME TO BUY OR SELL! Please get in touch today – Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com

Why Lenders Use Gross Monthly Income vs. Take-Home Pay

18 Friday Dec 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #househunting, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #RealEstate

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It might seem strange that mortgage companies use gross monthly income when determining affordability instead of ‘take-home’ pay. After all, it’s the take-home pay that consumers use for their monthly expenses and bills – including the mortgage. But there are a few good reasons why lenders use the gross amount. 

First, it’s universal. Lenders A, B, and C all use gross monthly income to calculate debt-to-income ratio (and thus affordability), so everyone is qualified using the same guidelines. There are a few loans that do take monthly expenses and ‘residual’ income into consideration, but most every other program uses gross monthly income. 

Second, it’s a figure that most consumers readily know. Calculating net income with taxes, deductions, etc. is complicated and can vary month-to-month. Gross income is stable and easier to quickly calculate monthly. It would be impossible for lenders to adjust their loan programs for each individual’s specific expenses and deductions. 

Third, employers report income each year to the IRS, and the amount reported is gross income, not net. When consumers are asked to document income on their loan application, the last two years of W2 forms are needed along with recent paystubs. The gross amounts on the paystubs should align with the W2 forms. Trying to parse net income from these documents is impossible. 

If you’re thinking about buying your first home and want to know what you might qualify for, there’s no shortage of online prequalification calculators to help you get started. Just remember to enter your gross monthly income, not your net or take-home pay, so you don’t short-change yourself. We are here to help, too! Just reach out to Kevin and Jennifer Hanley, REALTORS, The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside – HanleyHomeTeam.com 904-515-2479

Relocating far away? These Are The Must-Know Mistakes To Avoid

14 Monday Dec 2020

Posted by The Hanley Home Team in #buyandhold, #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #househunting, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #RealEstate

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COVID-19 has caused many people to reevaluate their living situations—and, as a result, many of those people are planning to relocate to an area that better suits their needs.

Relocating is always a process—but if you don’t do it right, that process can quickly become stressful and overwhelming.

But how, exactly, do you do it right? What mistakes do you need to avoid to ensure the relocation process goes as smoothly as possible?

A video from realtor.com outlined the key mistakes to avoid when relocating to a new area, including:

  • Listing your home before you know where and when you’re relocating. Homes are selling extremely fast in today’s market—so before you list your home, you’ll want to have clarity on where and when you’re relocating.
  • Not researching your new area. Every area is different—and before you decide to relocate, you need to know that your new area has the amenities and features that you’ll need. For example, if you have children, research the schools and childcare options before you commit to moving to a new town or city. If you’re planning to work from home, make sure the neighborhoods you’re considering have high-speed internet so you can do your job effectively.
  • Expecting your belongings to arrive and be available immediately. If you’re doing a long distance relocation and shipping some of your belongings, there could be delays—so if you know you’re going to need an item, make sure to keep it with you and transport it yourself.

Last Minute Tips for Winterization

18 Wednesday Nov 2020

Posted by The Hanley Home Team in #DIY, #HanleyHomeTeam, #HomeOwner, #HomeSeller, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #RealEstate, DIY, Jacksonville, real estate

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It’s not too late to address a few home maintenance musts before winter fully sets in. Here’s a list of last-minute tasks to knock out before you go into hibernation mode. 

Photo by Mitchell Henderson on Pexels.com

1. Check and clean the gutters one last time. As the last leaves have fallen, take time now to make sure your gutters are completely cleared out. Blockages can create ice dams, which will damage your gutters and prevent proper drainage of water away from your foundation.  

2. Check your furnace. If you have a furnace, replace your filter if you haven’t already, and commit to changing it once a month. A dirty filter will increase your heating costs and reduce the life of your equipment. Home heating systems that aren’t properly maintained may be less than 50 percent efficient. If you can spring for it this year, an inspection done by a licensed professional is always recommended.  

3. Maintain your home’s exterior. Trim back trees and branches that are hanging too close to your home. Seal driveways, brick patios, and wood decks. Look for cracks and gaps around doors, windows, and eaves, and seal them.  

4. Test smoke/carbon monoxide detectors This one is easy to overlook, but takes only a couple seconds: hit the “test” button on your smoke/carbon monoxide detector. If the alarm sounds — you’re good to go. If not, replace the batteries and test again. Replace your smoke detector if fresh batteries don’t result in a proper test.  

5. Consider an energy audit An energy audit can show you how and where your home is using energy, so you can make simple updates to increase your home’s efficiency – saving you money. Home energy audits typically range in cost from $200-$400, and many energy companies offer rebates that make them even more affordable (or sometimes free). 

Perform your own quick energy audit by following some of these tips from Energy.gov. Taking these steps will not only lower your utility costs, but they will protect your largest investment, your home, from the unexpected weather conditions ahead. If you have questions about professional services for home energy audits, contact us! Kevin and Jennifer Hanley, REALTORS http://www.HanleyHomeTeam.com The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside

Getting Home Insurance Right

11 Wednesday Nov 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #HomeSeller, #housegoals, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #RealEstate

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HOMEOWNERS INSURANCE FEELS LIKE A “NECESSARY EVIL.” BUT IT DOES SERVE A SAINTTLY PURPOSE—TO PROTECT YOU. SINCE YOU HAVE TO PAY IT EVERY MONTH, THE TRICK IS TO PAY AS LITTLE AS POSSIBLE FOR AS MUCH COVERAGE AS POSSIBLE. HERE’S WHAT TO LOOK FOR.

If you own a home free and clear, you are not required to have homeowners insurance (also called hazard insurance). But if you have a mortgage on the property, your lender will require you to carry it. Here’s how to get quotes to compare prices and coverage.

What is a homeowners insurance quote?

A quote is an estimate of the price you’ll pay for a policy. It’ll be given to you either as a yearly, 6-month, or monthly amount. Make sure you’re comparing apples to apples when looking at different quotes. 

A quote will be based on the size of home, location and likely replacement value of the home, condition you want to replace it to, how far it is from a fire house, etc. 

Each company uses its own formula to calculate house insurance quotes, so prices can vary widely. You boost your chances of finding the best rate when you compare homeowners insurance rates from several companies. Get at least three quotes! The rate and amount of coverage can vary by hundreds of dollars.

A quote is only an estimate at the time it’s given. The actual amount you’ll end up paying will not be determined until the policy is issued. It’s usually close to the quoted amount, though.

Who gives homeowners insurance? 

Many companies, including the companies that you might already be insuring your car with. Examples include USAA, Farmer’s, State Farm, Travelers, Wawanesa, Desjardins, Allstate, and many others. 

What do you get from having homeowners insurance? 

Protection in case of damage or loss. These amounts can vary! These are broad averages only. If you get three different quotes, you’ll begin to see what kind of coverages are available for your property and can compare. For instance, if two quotes are similar, but one offers $8,000 of additional living expenses in case of a claim, and the other offers only $6,000, then the first might be a better policy for you (if all other factors equal).

How your price can change…

In addition to the standard coverages shown above, you’ll also need to make choices when you compare home insurance quotes. These choices will affect your price, so make sure you use the same choices when comparing different policy quotes. 

Your deductible. This is the amount you pay out of pocket, before the insurer will pay anything per claim. It’s typically $500 to $2,000 per instance. Choosing a higher deductible will lower your monthly premium payment. If you choose a higher deductible, make sure you can afford to pay that deductible.

Earthquake, flood or windstorm coverage. Standard insurance doesn’t cover earthquake or flood damage, and windstorm coverage is limited in some hurricane-prone regions. If you live in an area affected by these risks, you may want to ask about optional coverage. Flood insurance is required for some properties in high-risk zones.

Replacement cost coverage for your belongings. Most standard homeowners insurance policies won’t pay to replace old items with new ones unless you choose this upgrade. You can ask for more coverage for your belongings (like computers, clothes, art pieces, dishes, etc.). 

Extended or guaranteed replacement cost coverage for your home. Standard policies won’t pay more than your dwelling coverage limit to fix your house. Extended replacement cost coverage will pay out more if repairs require it, up to a specified limit, and guaranteed replacement cost coverage will pay the full cost.

How to get a homeowners insurance quote

You can call a local insurance agent or broker who can give you a quote. It’s often nice to talk to someone who specializes in insurance in your area. 

You can also contact insurance companies online and fill out their online quote request form. 

I prefer talking to an agent, because many of the items in the online forms are not applicable, and you’ll end up having questions. The live agent can help you faster, and often make suggestions you won’t get online. However, it might be wise to get at least one online quote, once you know what you want to be comparing.

KNOW SOMEONE WITH QUESTIONS ABOUT BUYING A HOME? PUT THEM IN TOUCH WITH US FOR HELP. Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside http://www.HanleyHomeTeam.com

Most Tax Friendly States of 2020

27 Tuesday Oct 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeBuyer, #HomeBuyingTips, #HomeOwner, #HomeSeller, #housegoals, #househunting, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #Movingday, #RealEstate, #sellingyourhome

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Best places to live, Lowest taxes, real estate, real estate advice, real estate florida, real estate investing, real estate jacksonville fl, Real Estate Team, relocating, relocation, retire and relocate, Tax friendly states, The best real estate agent in Jacksonville, tips on relocating

Retirees are often the main group we imagine moving from higher-tax states to states considered tax-friendly. The coronavirus pandemic, however, has led younger people, many of whom are in their prime career years, to also look for low-cost places to relocate. Telecommuting has made it possible to leave big (often expensive) urban areas and work from anywhere, which is one factor behind the shift. 

The following are some of the country’s most tax-friendly states right now, regardless of why you might be relocating. 

Wyoming
There’s no state income tax in Wyoming, and the average state and local sales tax is just over 5.3%. The average property taxes are $635 per $100,000 in home value. Wyoming has a strong mineral and energy extraction industry, and that’s one of the reasons the state can keep taxes low for residents. 

Nevada
There is no state income tax in Nevada, and the average property tax in the state is $693 per $100,000 in home value. The tax-friendly nature of Nevada may be one reason there’s an influx of Californians moving to the state and the scenic Lake Tahoe area in particular. Nevada receives over a billion dollars each year from the casino and tourism industry, which helps them avoid imposing a state income tax. 

Bienvenidos a Miami!

Florida
Florida has no state income tax, but property taxes tend to hover around the national average. The state and local sales tax rate is also somewhere around average for the country at 7.05% combined. 

Alaska
Alaska may not provide you with sunshine and beaches, but it could be an economically sound decision. Alaska residents pay neither state income taxes nor state sales tax. Certain municipalities in Alaska might impose local sales taxes that are as high as 7.5%, but even so, the average local sales tax hovers around 1.76%. There’s also the Permanent Fund Dividend ($992 for 2020), which is paid to every Alaska resident who’s lived there for a full year. 

Tennessee
Prior to 2016, Tennessee did not tax wages, but still taxed income from investments and other “unearned income.” Legislation was passed in 2016 to gradually eliminate taxes on investments by 2021. The state currently carries the third lowest tax-burden in the United States.

We can help you buy or sell a home ANYWHERE! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners http://www.HanleyHomeTeam.com 904-515-2479

Fed vows to keep rates near zero until inflation tops 2%, likely keeping meager rates 4 to 5 years

21 Monday Sep 2020

Posted by The Hanley Home Team in Uncategorized

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Paul Davison USA Today Published 2:00 pm ET Sep 16, 2020 Updated 5:17pm ET Sep 16, 2020

The Federal Reserve said Wednesday that it will likely keep its key interest rate near zero until the economy reaches full employment and inflation runs “moderately” above its 2% goal for “some time,” a vow that economists say is likely to keep rates at rock bottom for the next four to five years.

The central bank made the market-friendly commitment sooner than many top economists anticipated and it drove the Dow more than 150 points higher before the market gave back the gains on persistent tech stock jitters. .

The Fed’s assertion is consistent with its new policy framework unveiled last month, which states that officials will no longer preemptively raise rates as unemployment falls to head off a potential spike in inflation. Rather, the Fed will allow inflation to edge above 2% for a time to make up for years of persistently low inflation and to bolster job gains.

The Fed plans to keep its benchmark short-term rate near zero until “labor market conditions have reached levels consistent with the committee’s assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time,” the Fed said in a statement after a two-day meeting.”

That, the central bank said, will help ensure inflation averages 2% “over time” and the public cam reliably expect 2% price increases. 

“These are powerful commitments that we think will support the full recovery as long s it takes,” Chairman Jerome Powell said at a news conference.

Previously, the Fed said it would maintain near-zero rates “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

The U.S. economy has partially recovered from the coronavirus recession more rapidly than expected, but the Federal Reserve envisions a slog the rest of the way.Get the Coronavirus Watch newsletter in your inbox.

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“The labor market is recovering but it’s a long way — a long way — from maximum employment,” Powell said.

Besides keeping its benchmark rate near zero, new Fed forecasts indicate it likely will stay there at least through 2023, based on policymakers’ median estimate. That’s a year longer than its previous estimate since the Fed’s forecast horizon was extended. But the promise to keep rates near zero until inflation picks up should maintain rock-bottom rates until mid-2024 or possibly longer, says economist Kathy Bostjancic of Oxford Economics. 

The Fed now predicts the economy will contract by 3.7% this year, below its 6.5% estimate in June, and the 8.4% unemployment rate will fall to 7.6% by year-end. The Fed previously reckoned the jobless rate would end 2020 at 9.3%.

Yet the economy may be at a crossroads. States are allowing shuttered businesses to reopen, putting furloughed employees back to work and boosting growth. But Congress is deadlocked over a new stimulus to restore enhanced federal unemployment benefits and keep struggling small businesses afloat. The number of permanently laid off workers and bankrupt businesses is rising. And the specter of a second wave of the virus this fall looms.   

A look at the Fed’s views on:

Interest rates

All 17 Fed policymakers prefer no hikes from the near-zero federal funds rate through next year and the median projection is for no increases through 2023. But one official believes a quarter-point rate increase will be warranted in 2022 and four think the first move should come in 2023.

Bond purchases

The Fed said its massive bond purchases are now designed partly to juice the economy by lowering long-term interest rates, such as for mortgages, as well as ensure that markets run smoothly. Previously, the Fed said the purchases — of $120 billion a month in Treasury bonds and mortgage-backed securities — were aimed at reviving markets for those assets that virtually came to a halt early in the crisis.

The change eventually could pave the way for the Fed to buy bonds with longer-term maturities to more effectively push down long-term rates.

The economy

Fed officials predict the economy will shrink 3.7% this year, less than their 6.5% forecast in June. But they forecast growth of 4% in 2021, down from their prior 5% estimate, and 3% in 2022.

Gross domestic product plunged at a record 31.7% annual rate in the second quarter, a bit better than the initial 32.9% forecast.

The economy has bounced back faster than expected, largely as a result of stronger consumer spending, Goldman Sachs says. While COVID-19 surges in the South and West led some states to pause or reverse reopening plans, hospitalizations and death tolls have improved recently. IHS Market predicts growth of about 30% in the current quarter.

But Barclays says the recovery is likely to slow in the months ahead, in part because a snap-back in auto production to pre-pandemic levels has played out. Powell noted that many laid-off workers have stopped looking for jobs.

Jobs

Unemployment is projected to fall from the current 8.4% to 7.6% by the end of the year, 5.5% by the end of 2021 and 4.6% by the end of 2022, according Fed officials’ median estimate.

The economy has regained nearly half the 22 million jobs lost in the early days of the pandemic as businesses have reopen but economists say recouping the remainder will be tougher. The number of workers permanently laid off jumped from 2.9 million to 3.4 million in August, indicating some temporary layoffs have become permanent.

Of the 11 million idled workers who have not been called back or found new jobs, Powell said, “Our commitment is not to forget those people.”

Inflation

The Fed estimated its preferred measure of annual inflation will close out 2020 at 1.2%, up from its 0.8% forecast in June, before rising to 1.7% in 2021. A core measure that strips out volatile food and energy items is projected to end the year at 1.5%, above officials’ previous 1% prediction.

Inflation has picked up recently, chiefly because of a surge in used car prices and a partial rebound in apparel prices and air fares that were depressed by the effects of the pandemic.

Even before the crisis, inflation was held down for years by discounted online prices and the globally connected marketplace.  The Fed’s new policy framework aims to juice inflation but economists say there’s no guarantee it will work.

 While modest price increases are generally a good thing, persistently low inflation can lead to deflation, or falling prices, that prompts shoppers to put off purchases.

Curious about buying or selling a home in today’s market? Give us a call and let’s chat! Jennifer and Kevin Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside http://www.HanleyHomeTeam.com

Do Open Houses work…Or are they a waste of time?

10 Thursday Sep 2020

Posted by The Hanley Home Team in #HanleyHomeTeam, #HomeOwner, #HomeSeller, #Jacksonville, #JacksonvilleFL, #KellerWilliams, #RealEstate, #sellingyourhome, Jacksonville, real estate

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There are definite reasons to hold open houses, and reasons to not. Read more to evaluate your best course of action!

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When you hire a real estate agent to sell your home, one of the first things they’ll suggest is hosting an open house so that potential buyers can casually check out your property on a weekend afternoon. But while open houses are promoted by agents as a great way of finding a buyer, a US study by the National Association of Realtors (NAR) found that the success rate of open houses is a mere 2% to 4%. Similar studies in other countries have mirrored these results.

That means out of 100 open houses, only 2 to 4 homes are purchased by buyers who came through the open house. Of course, the vast majority of open houses are not conducted well, and many are unnecessary. Out of 100 open houses, perhaps only 20 are done correctly. 

They’re held at the wrong times, wrong days of the week, wrong times of the year. They are not marketed effectively, the homes are not prepared, and the agents are unskilled at communicating value to potential buyers. Eliminating the 80 useless open houses would make the purchase percentages look more like 10% to 20% of homes being sold on open house. In other words, the chances of selling your house based on an open house are higher if the open house is done well, according to best practices. 

Consumer sentiment about open houses has waxed and waned over the years, along with the ups and downs of the real estate market. In 1995, 41% of sellers tried open houses to sell their homes, according to data from NAR. By 2000, it had dropped to 28%. Beginning in 2003, however, as the market started to heat up again, that number began rising. By 2014, 51% of all sellers were using open houses, though not all agreed they were effective. 

Some 45% of sellers have recently found open houses only “somewhat useful” and another 12% didn’t consider them useful at all, according to the NAR. This is survey data, so there is no evaluation of what those sellers meant by “useful” and “somewhat useful.”

So with all the sketchy data, why do real estate agents still promote open houses as a listing and selling tool? Let’s look at a few arguments for and against open houses, and explore the pros and cons.

Reasons not to hold an Open House

There are many people—agents and consumers—who argue against open houses. Some sellers just don’t like the idea of random people and neighborhood “lookie-loos” traipsing through their house. Some are concerned about theft. 

Some agents are concerned about their own safety when holding an open house, especially in out-of-the-way locations. Some agents consider it a waste of their time, based on the low potential results…they’d rather be managing other aspects of their business (or golfing) during that time. 

One of the main arguments used by sellers and the general public against open houses is that agents only use them to find buyers that they’ll take away to other houses. 

But this is not necessarily a bad thing. Real estate is a community product and selling it is a community event. Buyers may meet an agent at your open house, then go buy another house…but another buyer somewhere is meeting another agent at another open house, and that agent is bringing the buyer to your house. 

Open houses bring buyers out. By having an open house, you’re contributing to the overall health of the industry. As many as 45% of buyers use open houses to research the market. Many go to open houses, then discover they like the neighborhood and look for other homes in that area with their agent. Your house might be one of their “test” houses, or it may be one that they decide to buy because of another person’s open house in your neighborhood. It’s a network.

Reasons to Hold an open house

In addition to being part of a network of buyers and home sellers, consider these five additional reasons to hold an open house:

  1. Get “shoppers” out of the way

A lot of buyers will want to see your house as soon as it’s listed. You can quickly become overwhelmed by the repeated appointment requests. Showing your home is disruptive and quickly becomes annoying. Having to keep the place clean and be ready to vacate on the spur of the moment may seem fine for the first two days or so, but you’ll quickly lose patience. 

A better approach would be to take a day trip away from your home on the first weekend of your listing and let your agent hold an open house. 

Your agent can get a ton of those early “shoppers” through your house at one time, rather than bothering you with appointment after appointment. Most of those buyers (99.9%) will eliminate your house as an option during the open house. Some will want to view it again. And some very small percentage may want to make an offer. But the biggest reason to hold the initial open house is to get the lookie-loos and initial round of buyers out of the way. They’re just shopping, not buying.

You may want to ask your agent to hold the house open on both Saturday and Sunday of that first weekend. By doing a “new listing” open house, you won’t eliminate all appointments (some people can’t come during the open house time), but a large percentage will come during the open, and that means those people won’t be bothering you during the week to set appointments.

  1. Create an “auction effect”

There is a principle in psychology called scarcity – it’s the desire that’s in all of us to want to get something valuable before someone else does. For instance, have you ever heard of a situation where more than one person was interested in a house? In those situations, there was a bidding war, where several buyers competed for the same house. In most cases like this, the house sold for more than the owners were asking – and the buyers felt great about it because they won. Someone else wanted the house, but they got it first!

Situations like this are called the auction effect. Your agent can orchestrate a sense of scarcity using an open house as the centerpiece of a plan to generate a lot of interest very quickly.  Again, this is best done at the start of the listing period, or at a significant price reduction if the house hasn’t sold yet.

  1. Raise the profile of a community

While open houses may be declining in many parts of the country, some neighborhoods are finding them effective ways to raise the profile of an entire community, if a number of open houses are all done at the same time. 

Recently, four neighborhoods in the Lemon Grove area of San Diego teamed up for a joint open house with 25 of the area’s homes open for viewing on a single day. The result was that the entire area saw a spike in sales of 20%.

4. Get valuable feedback

A new listing open house is a great time to get feedback on the property. Information is valuable. Your agent should be asking things like, “How does this house compare to others you’ve been seeing?” “What do you like about the home?” “What would prevent you from making an offer?” Your agent can use different techniques to gather feedback, such as surveys, direct conversation, feedback forms, etc. 

It’s very important that you then take that information to heart. If you keep hearing the same messages over and over again, then those things are real. Those are the very things MAY prevent your home from selling for as much as you’d like, or as quickly as you like. It doesn’t hurt to listen and then have an open-minded discussion with your agent about how to remedy those issues.

Contrary to popular opinion, most agents are not trying to keep your house price artificially low in order to move it out of inventory and get paid faster. Most agents will just tell you the truth, and back it up with evidence, including comments by buyers. 

  1. Showcase a unique property

In some cases, a house is just too unique to market without an open house.  Art professor Mercedes Teixido and her husband had three open houses in six weeks showcasing their Pasadena, California home. Their house, they say, was the kind you had to see to believe. “It had a unique sensibility,” Teixido said, with spacious rooms and a large amount of built-in furniture that was crafted by hand. Sometimes you have to get people into a house in order to get them to fall in love with it. Many houses in less desirable locations have sold because someone went inside on an open house and fell in love with it.

Final Word

When you hire us to represent you in the sale of your home, we’ll discuss the pros and the cons to having open houses as part of your marketing plan.

We’ll let you know what’s happening in the market—whether open houses are effective right now or not—and whether your house would benefit from open houses, given its style, price, and location.

Please call to set a listing appointment, if possible at least 2 months before your planned move. Kevin and Jennifer Hanley, REALTORS http://www.HanleyHomeTeam.com Keller Williams Realty Atlantic Partners Southside

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