2 Things You Need to Know to Properly Price Your Home

In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.

In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.

Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).

The chart below illustrates the changes in home price estimates over the last 12 months.

2 Things You Need to Know to Properly Price Your Home | MyKCM

While the appraisal gap widens, another trend is also becoming more common.

According to realtor.com“the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions.

In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!

Bottom Line

If you are planning on selling your house in today’s market, let’s get together to set your listing price properly from the start!

Click here for a FREE home valuation.

Should I Rent My Home or Should I Sell?

Sell Now Or Sell LaterI’m not sure whether I should rent my home or sell my home. What would it rent for and what would it sell for?

With the market changes we’ve experienced since the housing bubble burst, this is a question The Belt Team gets a lot. And we are happy to do both a rental and a sale market analysis for you. But when counseling our clients, we also know there is much more to consider than just the simple numbers of rent, mortgage and sale price.

If you have never been a landlord before, there are many things to weigh – whether to hire a management company or not, who will do repairs, whether you’re prepared if your tenant loses their job and defaults, when you might actually need the proceeds from the sale of the home, and more.

It’s not always about waiting and hoping to get top dollar when you sell at some magic point in the future. So if you’re considering renting your home out, you need to analyze the decision from an investor point of view.

Here’s a great article from Keeping Current Matters that lists 10 Questions To Ask BEFORE You Rent Your Home.

Call Terry Belt or Kevin Kleifges at (703) 242-3975 for more info. Our clients are clients for life, so whether you sell now or in the future, we’ll help you to make the best decision for your family and your pocketbook!

You can start here with a FREE, Instant Home Valuation Estimate and also search our state-of-the-art web site for rental prices in your neighborhood.

Sell My House or Rent It Out

FREE and INSTANT Northern VA Home Valuation Tool

If you’re wondering how much your Northern Virginia home is worth, you might want to try our new FREE Home Valuation Tool. And since we at The Belt Team pride ourselves on how we implement state-of-the-art technology to make our clients’ lives easier, it’s not like the others where you have to wait for someone to do a report. Nope – you get the info you’re looking for INSTANTLY! Click on the picture below.

How Much Is My Home Worth Virginia

Try it out & let us know what you think!

And if you’re looking to buy a home in Northern Virginia – whether it’s a luxury home in Vienna, a townhome in Fairfax or a condo in Reston – you’ll also love our state-of-the-art Homebuyer Real Estate Search Site. It’s FASTER and more UP-TO-DATE than other sites!

McLean Luxury Homes

Call (703) 242-3975 to schedule your Buyer or Seller Consultation. Our mission is “Changing Lives For The Better”. Is it time to change YOURS?

Percentage of Underwater Homes Drops Nationally – What About Northern VA?

We recently attended a conference in Austin where national statistics were presented on the housing market. One of the pieces of good news that was presented was the fact that the percentage of homes that are underwater (ie – homeowners owe more than the homes are worth) has dropped significantly since last year.

We closed 2012 with almost 22% of homes underwater across the United States. After the first two quarters of 2013, that number had dropped down to 14.5%. And 7% of properties returned to positive equity by mid-year.

Underwater Homes

So – what’s happening in Northern VA?

Northern VA has had less homes underwater than many places nationally, but we still have had our share. Well – prices are up, inventory is still fairly low, and interest rates are rising.

This kind of makes for the Perfect Storm.

Rising interest rates could hurt both buyers and sellers. When rates rise, buyers lose buying power. They can’t get as much for their money, it’s harder to qualify for loans and at some point – they drop out of the market. This means demand wanes. When demand wanes, and less buyers are in the market, Sellers have less leverage when selling.

We’re starting to get a lot of calls from savvy homeowners in Northern Virginia who tried to sell (or wanted to sell, but didn’t even try) during the years 2007-2011. They have realized that in many cases, prices are up enough that they can make that next housing move – the one they thought they could make a few years back, but couldn’t. Some are seizing the opportunity to downsize. And some are making a much needed upward move to accommodate their growing families. They realize this just might be the time to put their toes back in the water to see if the numbers work – BEFORE interest rates rise so high that buyers for their home are priced out.

Northern VA Home Sellers

Micro-markets in our area mean that this scenario may not apply to you. For example, there are some areas that are always in demand & insulated from outside market forces. And there are other markets – for example, the luxury market – where demand may not be as swift. If you’re wondering whether you can sell – NOW is the time to consult a Realtor and run the numbers. You may have missed the market last time, but don’t miss it this time.

If you want to take a look at a general valuation of your home before your schedule a consultation – try out our new FREE HOME VALUATION TOOL. You’ll get an immediate online estimate.

How Much Is My Home Worth Virginia

Our mission is “Changing Lives For The Better”. If it’s time to change yours, give us a call at (703) 242-3975.