Blog Archives • Eastern Panhandle Martinsburg Charles Town Hedgesville Inwood Falling Waters Ranson Bunker Hill West Virginia Real Estate

MARKET UPDATE – SEPTEMBER 2021

As summer comes to a close, with school starting, and fall just around the corner, September brings a time of transition. If you’re thinking about selling your home, you may be hearing reports of inventory trickling back on the market in some locations and bidding wars appearing to be slightly less common.

Here’s some insight on why it’s still a great time to sell your home.

One Month Does Not Make a Market Trend

The operative word is trickle. Housing inventory has been declining for six years, so rather than comparing month-to-month data, we look at the industry over a 10-year span. Although inventory and days on market are trickling up in some markets and the number of multiple offers are trickling down, there are still multiple offers, low inventory, homes selling in less than 30 days, and for top dollar.

Buyers Re-entering the Market

Some buyers may have taken a summer break from looking for a home after losing five, six, seven, or more deals last spring. We believe buyers re-entering the market after Labor Day are likely to cause a buying surge in the fourth quarter of this year.

Significant Appreciation

Although median sale prices have increased by an average of more than 20% over the last year in our market, we don’t believe this level of appreciation will last forever. Affordability for buyers is still very attractive due to interest rates remaining under 3%, as they tend to buy monthly payment, rather than price.

Declutter, Stage, and Price Right

Homes receiving high and multiple offers over the past year were staged, decluttered, in good condition, and priced right – which are all still necessary in this market. Buyers used to have a vision for what they want the home to be after settlement. Now, the majority of consumers seem to want move-in ready. Many buyers don’t have the time or capital to invest in renovations and want to move in and start living.

If you’re planning to sell a home this Fall, it’s essential to have a knowledgeable real estate agent advise you on the best ways to prepare your home for sale to maximize your investment.

To find out your home’s value or for questions about this complex real estate market, please feel free to contact the Butch Cazin Team.

August 2021 Market Update

It’s a Seller’s Market – and Here’s Why it’s Also a Great Time to Buy.

Lately, many of the real estate headlines are about how it’s the best time in history to sell your home. While that’s true, here are a few good reasons why it’s also a great time to buy.

Interest rates are at all-time lows.

People buy payment; they don’t buy price. They don’t necessarily care how much a house costs, but they care about how much it will cost them per month. You are going to get more money lent to you now, with less to repay than you would when rates go up.

For example, a person with a $300,000 loan at today’s interest rates of 3% would pay $750 less per month in interest than they did in 2000 when interest rates were 8%. I can think of many other things to do with $750 per month than give it to the bank.

Benefits include tax breaks, building equity, and hedging inflation.

Many home buyers who have made their third, fourth or fifth offers on homes with no success may be getting discouraged, as they see home prices rising and are concerned they’re paying too much.

However, real estate values tend to run in ten-year cycles, with appreciation of 3% per year. Home values were cut in half during the 2008 financial crisis. Now, more than ten years later, they are ahead. Prices recover, equity is built, and real estate is an excellent hedge against inflation.

As a real estate professional, my job is to disarm and interpret the news for you so you might make informed decisions and help you navigate this competitive housing market to successfully fulfill your real estate goals.

If you’re planning to buy or sell a home or have questions about this real estate market, please feel free to contact The Butch Cazin Team. We look forward to helping you!

Market Update – June 2021

Selling a home in 2021 can be easy, but buying one is a whole different story. Low interest rates continue to be the driver in this robust housing market, creating increased buying power. On the other hand, the limited number of homes for sale and the high level of buyer demand has created a market tilted heavily in favor of sellers.

In this highly competitive market, what do you do if you want a smooth transition when selling and buying a home concurrently? It’s one of the least risky times to buy your next home before selling your current home. If you’re able to handle the payments on two homes for six months or so, then buy first and sell later.

For those that may not have the funds available to purchase a home while owning one, here are some options to consider.

Home of Choice Contingency. Written into the contract, this agreement protects the seller from having to sell their current home before finding their next home.

Rent Back Agreement. This post-closing occupancy agreement allows the seller to continue to live in the home for a fee or for free, typically up to 60 days, temporarily making the buyer the landlord.

Bridge Loan. A bridge loan enables you to borrow money to pay for the down payment on your next home based on the equity in your current home.

Home Equity Line of Credit. Tap into the equity of your current home by taking out a home equity loan before you put your home on the market to provide the funds needed to make your purchase first.

In this market, whether you’re buying or selling a home, I can help evaluate your options to decide which to do first and how to optimize both transactions.

My best to you and your family.

Why You Should Sell Your House Now

There’s no doubt that 2021 is the year of the seller when it comes to the housing market. If you’re a homeowner thinking of moving to better suit your changing needs, now is the perfect time to do so. Low mortgage rates are in your favor when you’re ready to purchase your dream home, and high buyer demand may give you the leverage you need to negotiate the best contract terms on the sale of your house. Here’s a look at what’s driving this sellers’ advantage and why there’s so much opportunity for homeowners who are ready to move this season.

1. Historically Low Inventory
The National Association of Realtors (NAR) explains:

“Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.”

Even with a slight rise in the number of houses for sale this spring, inventory remains near an all-time low.

High buyer interest is creating a major imbalance between supply and demand, but as the small uptick in inventory shows, sellers are beginning to reenter the market. Selling your house now enables you to take advantage of buyer demand and get the most attention for your house – before more listings come to the market later this year.

2. Frequent Bidding Wars
As a result of the supply and demand imbalance, homebuyers are entering bidding wars at an accelerating rate. NAR reports the average number of bids received on the most recently closed sales is 4.8 offers. This number has doubled since the first quarter of 2020.

As buyers face increasingly tough competition while searching for homes to purchase, they’re more likely to be flexible and generous in their negotiations. This gives a seller the opportunity to choose the best buyer for their needs and be selective about things like time to close, contingencies, renovations, and more. Working with your trusted agent is the best way to determine how to navigate the negotiation process when selling your house.

3. Days on the Market
In today’s market, sellers aren’t waiting very long to find a buyer for their house, either. NAR reports:

“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month.”

NAR Chief Economist Lawrence Yun explains:

“The sales for March would have been measurably higher, had there been more inventory…Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

Bottom Line
If you’re thinking about moving, these three graphs clearly show that it’s a great time to sell your house.

3 Graphs Showing Why You Should Sell Your House Now | Keeping Current Matters | https://www.keepingcurrentmatters.com/2021/05/10/3-graphs-showing-why-you-should-sell-your-house-now/

READY FOR TAX SEASON? HERE ARE A FEW HOUSING-RELATED TAX TIPS TO CONSIDER

READY FOR TAX SEASON? HERE ARE A FEW HOUSING-RELATED TAX TIPS TO CONSIDER
February 15, 2021
By Boomer Foster, President, General Brokerage and Gary A. Scott, President, General Brokerage.

It’s hard to believe it’s been nearly a year since the Covid-19 pandemic began and changed the way we live, work and play. Although tax filing deadlines were extended last year due to the pandemic, this year, the deadline is back to its usual April 15 date. As you prepare your 2020 taxes, here are a few housing-related items to keep in mind.

Home interest deductions.

Mortgages that closed before Dec. 14, 2017: A married couple filing jointly and single filers can deduct mortgage interest on a combined debt limit of $1 million.
Mortgages that closed after Dec. 14, 2017: For both primary residences and second home loans, mortgage interest can be deducted on a combined debt limit of $750,000.
Property tax deductions.

Taxpayers who itemize can only deduct up to $10,000 on a combination of state and local property, income and sales taxes. This applies to property taxes on your primary residence, a vacation home and undeveloped land.

Capital gains tax exclusions.

Married-joint filers can exclude up to $500,000 and single filers can exclude up to $250,000 when selling their primary home, provided they’ve lived there two of the past five years.

Those are just a few of the housing-related tax laws. Please consult your tax advisor for more information on how these and other tax deductions may apply to you.

Will the Housing Market Bloom This Spring?

Spring is almost here, and many are wondering what it will bring for the housing market. Even though the pandemic continues on, it’s certain to be very different from the spring we experienced at this time last year. Here’s what a few industry experts have to say about the housing market and how it will bloom this season.

Danielle Hale, Chief Economist, realtor.com:
“Despite early weakness, we expect to see new listings grow in March and April as they traditionally do heading into spring, and last year’s extraordinarily low new listings comparison point will mean year over year gains. One other potential bright spot for would-be homebuyers, new construction, which has risen at a year over year pace of 20% or more for the last few months, will provide additional for-sale inventory relief.”

Ali Wolf, Chief Economist, Zonda:
“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed. This suggests more inventory will be for sale in late 2021 and into the spring selling season in 2022.”

Freddie Mac:
“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points… However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”

Mark Fleming, Chief Economist, First American:
“As the housing market heads into the spring home buying season, the ongoing supply and demand imbalance all but assures more house price growth…Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”

Bottom Line
The experts are very optimistic about the housing market right now. If you pressed pause on your real estate plans over the winter, reach out to The Butch Cazin Team to determine how you can re-engage in the homebuying process this spring.

-KeepingCurrentMatters.com

Spring Market Update March 2, 2021

It’s hard to believe it’s been a year since the Covid-19 pandemic entered our world. Or, to some, this past year may seem like it was several years long. Either way, March is here and with the rising temperatures and longer days, we’ll soon start to see the first signs of spring.

Before the arrival of April showers, it’s a good time to get started on some spring maintenance tasks to shed the winter layers and give your home a fresh new start.

Groom your lawn. Get ready to mow by picking up debris that accumulated on your lawn over the winter. Fill bare spots with grass seed and fertilizer.

Clear gutters and downspouts. Prevent damage from spring rains by clearing out debris. Make sure water is diverted away from the home to protect its foundation.

Reseal exterior woodwork. Stain or reseal outdoor structures such as wood decks, fences, railings, and pergolas, to keep them in good condition.

Schedule air-conditioning service. Make sure your HVAC unit is working before summer arrives. Schedule service, if needed, and don’t forget to regularly change filters.

Clean carpets and soft furnishings. Have carpets cleaned and send out area rugs for professional cleaning. Launder furniture slipcovers, pillow covers and shower curtains.

Test smoke and carbon monoxide detectors. Change batteries at least once a year and replace each unit every 7 to 10 years.

Despite the pandemic of the past year, the real estate market has remained strong, with home values growing at a fast pace. After this year of hefty appreciation, if you’d like to find out what your home is worth, contact me for a complimentary comparative market analysis.

Likewise, if you’re in the market to buy a new property, just let me know how I can help.

WHAT’S THE DIFFERENCE BETWEEN AN APPRAISAL AND A HOME INSPECTION

by KeepingCurrentMatters.com.

What’s the Difference between an Appraisal and a Home Inspection?

If you’re planning to buy a home, an appraisal is an important step in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of the home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying a home.

Home Appraisal
The National Association of Realtors (NAR) explains:

“A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”

When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.

This is especially critical in today’s sellers’ market where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.

However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.

Home Inspection
Here’s the key difference between an appraisal and an inspection. MSN explains:

“In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home.”

The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.

Bottom Line
The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Reach out to The Butch Cazin Team today so you have the expert guidance you need to navigate through the entire homebuying process.

SELLING YOUR HOUSE IS THE RIGHT MOVE, RIGHT NOW

by Keeping Current Matters

Some Highlights

Demand from homebuyers has skyrocketed this year, which means today’s sellers are poised to win big. This ideal moment in time to sell your house won’t last forever, though.

With more sellers coming to the market in the spring, waiting until next year means buyers will have more choices, so your home may not stand out from the crowd.

Reach out to The Butch Cazin Team today to discuss why now may be the right time to make a move on your terms.

3 Must Do’s when Selling Your House This Year

For Sellers, Pricing, Selling Myths
3 Must-Do’s When Selling Your House This Year

It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.

When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.

1. Price Your Home Right
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraiser to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the price after the appraisal. A real estate professional will help you set the true value of your home.

2. Keep Your Emotions in Check
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years (as shown in the graph below):
3 Must-Do’s When Selling Your House This Year | Keeping Current Matters
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your Home Properly
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.

Bottom Line
Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, reach out to a local real estate professional to help you navigate through the process while prioritizing these must-do’s.

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