For the past few years, we've been working in a buyer's market. That is, there were way more listings than buyers out there. That's been tough for a listing agent like me.
But it seems we may be looking at a big change going into next year. Here are a couple factors that point to Cleveland's east side becoming a seller's market:
Fewer foreclosures - Foreclosures should slow down as Freddie Mac and Fannie Mae change their rules and more financially distressed homeowners are able to hold on to their homes. I haven't seen foreclosures being a huge factor in the Chagrin Valley, but they are out there.
Fewer Housing Starts - Builders have been leery of building spec houses and starting new developments. But there is pent up demand for new construction. We estimate that 15% of buyers want a brand new house, and there's definitely a shortage in our area.
Interest Rates - Buyers are going to come to realize that our amazing low interest rates have no where to go but up. Buyers who have been on the fence waiting for rates to go lower may finally buy. That means more buyers out there.
Inventory - Our inventory of houses for sale is so low! In almost every community, the number of listings is down.
It all comes back to your high school economics class....good old supply and demand!
Wednesday, November 2, 2011
Monday, September 26, 2011
Things to Consider Before Renting Your House
When your house has been on the market awhile and it doesn’t sell, it’s tempting to rent it. After all, it would be nice to have money coming in every month and for the home not to be sitting empty.
But renting is more complicated than you may think, and there are some important things to think about.
Top on my list of worries is how the renters will care for your home Time and time again I hear horror stories of friends who rented their properties only to get them back in terrible condition. Even when you rent to nice families, with good incomes, who seem so great when you meet them. I think it has something to do with pride of ownership…when it’s not their home, they just don’t take care of it the same way.
Other good ideas before renting:
Consult with an eviction attorney – What will you do when your renter doesn’t pay one month, either because they won’t or can’t? You should understand the legal challenges of eviction before deciding to rent.
Interview Property Managers – Being a landlord means getting a call at any hour of the day or night regarding maintenance issues. Are you ready and capable of handling it? It also means finding qualified tenants and collecting the rent. Collection calls aren’t fun. What if your tenant told you that they have enough money to buy food for their kids or pay you rent, but not both?? You might want an experienced property manager on your team to help with these situations.
Create a Realistic Budget – Renting brings some money in, but also creates expenses. When deciding on your rental amount, you need to cover more than just the mortgage payment. You should also include property taxes, maintenance expenses (things like repairing or replacing the roof, appliances etc.) and insurance.
But renting is more complicated than you may think, and there are some important things to think about.
Top on my list of worries is how the renters will care for your home Time and time again I hear horror stories of friends who rented their properties only to get them back in terrible condition. Even when you rent to nice families, with good incomes, who seem so great when you meet them. I think it has something to do with pride of ownership…when it’s not their home, they just don’t take care of it the same way.
Other good ideas before renting:
Consult with an eviction attorney – What will you do when your renter doesn’t pay one month, either because they won’t or can’t? You should understand the legal challenges of eviction before deciding to rent.
Interview Property Managers – Being a landlord means getting a call at any hour of the day or night regarding maintenance issues. Are you ready and capable of handling it? It also means finding qualified tenants and collecting the rent. Collection calls aren’t fun. What if your tenant told you that they have enough money to buy food for their kids or pay you rent, but not both?? You might want an experienced property manager on your team to help with these situations.
Create a Realistic Budget – Renting brings some money in, but also creates expenses. When deciding on your rental amount, you need to cover more than just the mortgage payment. You should also include property taxes, maintenance expenses (things like repairing or replacing the roof, appliances etc.) and insurance.
Thursday, September 8, 2011
The big question: Chagrin VS Kenston Schools
A question I hear from out-of-town buyers moving to this area is, "Chagrin Falls or Kenston--which has the better schools??"
And when working with local buyers, it seems everyone has a strong opinion...they HAVE to be in Chagrin schools or they insist it's GOT TO BE Kenston.
As a real estate agent, I am not allowed to advise or comments on schools. All I can do is point external & objective resources, let them do their own research and come to their own conclusion.
The Ohio Department of Education recently came out with their Report Card and it's great news for our area...all schools here were rated at least EXCELLENT by the Ohio Department of Education.
Chagrin Falls and Orange were rated Excellent with Distinction, and Kenston and Solon were named Excellent.
I think the really interesting thing is how they scored...Chagrin's index score was 109.2 and Kenston's 107.2! How close is that?!
So my short answer to buyers who ask about schools...We are so fortunate to have so many excellent schools to choose from in our area!
(For more info go to the Ohio Dept of Education website at http://ilrc.ode.state.oh.us/)
And when working with local buyers, it seems everyone has a strong opinion...they HAVE to be in Chagrin schools or they insist it's GOT TO BE Kenston.
As a real estate agent, I am not allowed to advise or comments on schools. All I can do is point external & objective resources, let them do their own research and come to their own conclusion.
The Ohio Department of Education recently came out with their Report Card and it's great news for our area...all schools here were rated at least EXCELLENT by the Ohio Department of Education.
Chagrin Falls and Orange were rated Excellent with Distinction, and Kenston and Solon were named Excellent.
I think the really interesting thing is how they scored...Chagrin's index score was 109.2 and Kenston's 107.2! How close is that?!
So my short answer to buyers who ask about schools...We are so fortunate to have so many excellent schools to choose from in our area!
(For more info go to the Ohio Dept of Education website at http://ilrc.ode.state.oh.us/)
Tuesday, August 30, 2011
CHOMP that Wallpaper
Wallpaper and border is usually the first thing that needs to go when getting ready to sell your house. It seems like a nightmare project, but JUST DO IT! Some sellers are tempted to leave it because it's too much work for them and the next buyers might like it or take it down themselves. Bad idea--in most cases it will be a huge turn off to buyers viewing your home and they will assume it's very expensive to remove. So if they do decide to make an offer--despite your ugly wallpaper--they will low ball you.
So, get busy removing your wallpaper and border. Try this product I just used to remove some decals and border in my daughter's bathroom. It's called CHOMP and it was so effective. I wiped it on the borders and decals and in a few minutes they all just wiped right off. It took no time at all and no hard work or scrubbing. I purchased it at Home Depot but I'm sure it's sold at any home improvement or hardware store.
Hope it works as well for you...happy chomping!
Thursday, August 18, 2011
Possibly the Cutest House for Sale in Bainbridge!
Help me spread the word about this terrific home on Old Meadow in Bainbridge. The owners have renovated it top to bottom. The highlight is this awesome Kraftmaid kitchen. Every bath has been redone, it has tons of living space, and is on a beautiful 1.5 acre lot. All this for just $295K! Tell your friends looking for a home in Kenston Schools....
Police Blotter an Entertaining Diversion
I love reading the Chagrin Solon Sun's Police Blotter every week. It's usually entertaining, and sometimes paints a picture of our communities that goes against the stereotype. Or sometimes is spot on!
Here's a great one from this week's paper regarding Chagrin Falls...
"Criminal Mischief - A worker with the Village Service Department reported that there was extensive graffiti on the walls and pavement of the shopping center. "
OMG!!! Are inner-city taggers invading the Falls???
But, no. "But officials soon discovered everything had been done in chalk, including peace signs, and recommendations to 'recycle' and 'thaw out.'" Hilarious!!
Here's another one that shows true criminal behavior here in the Valley...
"It appeared shortly after daybreak that someone climbed the fence overnight at the Chagrin Falls Recreation Center and rearranged some chairs around the pool." Love that this is what's considered criminal behavior here!
Here's a great one from this week's paper regarding Chagrin Falls...
"Criminal Mischief - A worker with the Village Service Department reported that there was extensive graffiti on the walls and pavement of the shopping center. "
OMG!!! Are inner-city taggers invading the Falls???
But, no. "But officials soon discovered everything had been done in chalk, including peace signs, and recommendations to 'recycle' and 'thaw out.'" Hilarious!!
Here's another one that shows true criminal behavior here in the Valley...
"It appeared shortly after daybreak that someone climbed the fence overnight at the Chagrin Falls Recreation Center and rearranged some chairs around the pool." Love that this is what's considered criminal behavior here!
Friday, January 21, 2011
So I Didn't Imagine It...
The Plain Dealer reported today that December home sales were up. So I didn't imagine that I was crazy busy late last year! The holidays are typically a VERY quiet time real estate agents. But I found just the opposite this year...I was even showing houses right up until Christmas eve!
The PD said that Northeast Ohio home sales rose 10.6% from November to December. This was for both previously owned homes and new construction.
Thankfully, January seems to be just as busy. The lesson here...if you are thinking of listing your home, NOW is the time. Don't wait until the spring market is in full force and there's twice the competition.
The PD said that Northeast Ohio home sales rose 10.6% from November to December. This was for both previously owned homes and new construction.
Thankfully, January seems to be just as busy. The lesson here...if you are thinking of listing your home, NOW is the time. Don't wait until the spring market is in full force and there's twice the competition.
Monday, January 17, 2011
Considering a Home Improvement Project?
Are you considering remodeling your home, and wondering what it will do to your property value? My philosophy is if you're planning to stay in your home for a long time -- go for it! Make a change that works for your family, and don't be so concerned with how it will affect resale.
But if you're thinking of selling in the next few years, you should consider its cost effectiveness. A recent article from National Association of Realtors highlights the importance exterior projects, which provide the most value but also are some of the least expensive improvements. For example, replacing your steel entry door or garage doors.
In terms of the interior, you recoup the most of your cost with an attic bedroom addition (71.4% cost recouped) or major kitchen remodel (60.3%).
Click here to check on the cost effectiveness of other projects: http://www.realtor.org/rmohome_and_design/costvsvalue
Of course, it's always best to check with a real estate agent (like me!) to see if the update or remodel makes sense for your home, neighborhood and today's market.
But if you're thinking of selling in the next few years, you should consider its cost effectiveness. A recent article from National Association of Realtors highlights the importance exterior projects, which provide the most value but also are some of the least expensive improvements. For example, replacing your steel entry door or garage doors.
In terms of the interior, you recoup the most of your cost with an attic bedroom addition (71.4% cost recouped) or major kitchen remodel (60.3%).
Click here to check on the cost effectiveness of other projects: http://www.realtor.org/rmohome_and_design/costvsvalue
Of course, it's always best to check with a real estate agent (like me!) to see if the update or remodel makes sense for your home, neighborhood and today's market.
Wednesday, January 12, 2011
We're Still the One
Sales numbers for 2010 are in, and Howard Hanna is the #1 real estate company in Ohio and the undisputed leader in home sales in virtually every county in which we serve.
Here is our market share in the counties I work in:
Cuyahoga 47%
Geauga 57%
Portage 32%
Lake 40%
When choosing a broker for your real estate needs, shouldn't you go with the market leader, the best? You deserve it!
Here is our market share in the counties I work in:
Cuyahoga 47%
Geauga 57%
Portage 32%
Lake 40%
When choosing a broker for your real estate needs, shouldn't you go with the market leader, the best? You deserve it!
Sunday, January 9, 2011
Buying a Home that's a Short Sale
So many of my friends and clients seem to be confused about short sales....so I thought I would try and shed some light. Short sales are NOT bank owned properties--they have NOT been foreclosed upon.
Short sales are when a mortgage holder agrees to take less than the unpaid balance on a loan. These are more common today because of the mortgage boom and bust. A lot of people overpaid for their homes a few years ago. Now for whatever reason they need to sell and home values have dropped. So maybe the house they paid $400,000 for may be worth only $320,000. How can they take $320K ( or less, after commissions, closing costs etc.) and still pay off their mortgage? They can't -- hence the short sale.
Most of my clients are the buyers in a short sale situation. For buyers, here are some important things to keep in mind:
1) Short sales can take longer to close - You are essentially negotiating a selling price with multiple parties - the homeowner, their lender, and possibly more than one lender and a mortgage insurer. They all need to get paid so they all have a say in the negotiations. Lenders tend to be very backed up with shorts sales and foreclosures too, so they don't always respond to offers in a timely manner.
2) Low ball offers don't work - So many of my clients think, "Great! A short sale! Let's offer half of the asking price and see what happens!" I can tell you what happens...your offer goes to the bottom of the pile or in the proverbial circular file. In most cases, the home is already a pretty good deal and crazy low offers will be ignored. Also, the lender(s) have a bottom price in mind and they won't take less for it.
3) Lenders can counter your offer - Again, don't think you're going to get it with the first offer you bring in the door.
4) Short sale deals fall apart - Because the transactions are so complex with many parties involved, issues can arise at any time right up to the day of closing. I suggest you never count your chickens on these ones until the title is transferred.
5) Have your ducks in a row - Lenders are more responsive if you have a preapproval for a loan and a good down payment.
Have I scared you off? I hope not. There are lots of short sales out there -- probably more than anyone realizes at this point -- and they can be a great opportunity. With a lot of patience, a flexible timeline, and a GREAT real estate professional (like me) who can walk you through the process, a short sale can be a smart buy.
Short sales are when a mortgage holder agrees to take less than the unpaid balance on a loan. These are more common today because of the mortgage boom and bust. A lot of people overpaid for their homes a few years ago. Now for whatever reason they need to sell and home values have dropped. So maybe the house they paid $400,000 for may be worth only $320,000. How can they take $320K ( or less, after commissions, closing costs etc.) and still pay off their mortgage? They can't -- hence the short sale.
Most of my clients are the buyers in a short sale situation. For buyers, here are some important things to keep in mind:
1) Short sales can take longer to close - You are essentially negotiating a selling price with multiple parties - the homeowner, their lender, and possibly more than one lender and a mortgage insurer. They all need to get paid so they all have a say in the negotiations. Lenders tend to be very backed up with shorts sales and foreclosures too, so they don't always respond to offers in a timely manner.
2) Low ball offers don't work - So many of my clients think, "Great! A short sale! Let's offer half of the asking price and see what happens!" I can tell you what happens...your offer goes to the bottom of the pile or in the proverbial circular file. In most cases, the home is already a pretty good deal and crazy low offers will be ignored. Also, the lender(s) have a bottom price in mind and they won't take less for it.
3) Lenders can counter your offer - Again, don't think you're going to get it with the first offer you bring in the door.
4) Short sale deals fall apart - Because the transactions are so complex with many parties involved, issues can arise at any time right up to the day of closing. I suggest you never count your chickens on these ones until the title is transferred.
5) Have your ducks in a row - Lenders are more responsive if you have a preapproval for a loan and a good down payment.
Have I scared you off? I hope not. There are lots of short sales out there -- probably more than anyone realizes at this point -- and they can be a great opportunity. With a lot of patience, a flexible timeline, and a GREAT real estate professional (like me) who can walk you through the process, a short sale can be a smart buy.
Wednesday, January 5, 2011
New Year, New Post
Like everyone, I've set some new year's resolutions as we embark on 2011. A lot of my resolutions related to good health and happiness, but many more have to do with my real estate business.
BLOG MORE!
Yes, I promise to blog more in the new year. I let the craziness of listing homes, marketing them, negotiating offers etc. take over and it didn't leave much time for writing. No longer! And if you notice my blog has gone quiet, feel free to send me a friendly "Kick in the butt" via email.
LIST MORE!
Last year I had more listings than I ever expected, and almost every single home closed. I worked with a few buyers, but didn't find the experience as satisfying. I'm realizing my true loves and skills are in marketing homes so that's what I will focus on this year.
ASK FOR MORE REFERRALS
Many of my favorite clients last year came from referrals from friends and family. What's more, I think I can confidently say all those "friends of friends" ended up very satisfied and glad they worked with me. So, won't you help me keep this resolution (and build my business!) by referring a friend, neighbor, family member to me?
KEEPING IT COOL and ENJOYABLE
This year, I noticed so many agents get nasty attitudes, stress out their clients and fellow agents unnecessarily, and make the home selling process unpleasant. When it's so not needed! I vow to keep my clients insulated from these crabby agents and continue to keep it positive.
HAVE A SUGGESTION?
Have a suggestion on a good resolution for me? Email me at maryfranceslaganke@howardhanna.com and I will try and feature it on my blog!
BLOG MORE!
Yes, I promise to blog more in the new year. I let the craziness of listing homes, marketing them, negotiating offers etc. take over and it didn't leave much time for writing. No longer! And if you notice my blog has gone quiet, feel free to send me a friendly "Kick in the butt" via email.
LIST MORE!
Last year I had more listings than I ever expected, and almost every single home closed. I worked with a few buyers, but didn't find the experience as satisfying. I'm realizing my true loves and skills are in marketing homes so that's what I will focus on this year.
ASK FOR MORE REFERRALS
Many of my favorite clients last year came from referrals from friends and family. What's more, I think I can confidently say all those "friends of friends" ended up very satisfied and glad they worked with me. So, won't you help me keep this resolution (and build my business!) by referring a friend, neighbor, family member to me?
KEEPING IT COOL and ENJOYABLE
This year, I noticed so many agents get nasty attitudes, stress out their clients and fellow agents unnecessarily, and make the home selling process unpleasant. When it's so not needed! I vow to keep my clients insulated from these crabby agents and continue to keep it positive.
HAVE A SUGGESTION?
Have a suggestion on a good resolution for me? Email me at maryfranceslaganke@howardhanna.com and I will try and feature it on my blog!
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