Category Archives: Real Estate

The Business of Real Estate, Then and Now

How has the business of real estate changed over the last 15 years? The numbers show that national house prices and agent salaries are both increasing faster than the inflation rate*. Take a look at these differences from 1999 to 2014.

By: Mary Gramer, Social Media Marketing Intern

Flickr Creative Commons: Ken Teegardin

Flickr Creative Commons: Ken Teegardin

1.House Prices (census.gov & RealEstateabc.com)

  • Then: Median home price =  $161,000.
  • Now: Median home price = $241,500.

This is a whopping 66.67% increase in average price over the past 15 years.

How do we account for the fact that house prices have increased faster than the inflation rate? Home buyers’ tastes change with time. People now prefer to buy larger homes with high-end fixtures, which is different than 15 years ago. In fact, according to the US Census, the median home size has increased from 2028 sq. ft. in 1999 to 2453 sq. ft. in 2014. As a result, homes being sold today are priced relatively higher than they were 15 years ago.

2. Real Estate Agents (Bls.gov)

  • Then: 55,010 employed real estate agents who made an average of $35,600 per year.
  • Now 157,660 employed real estate agents, who made an average of $55,530.

Real estate agents’ salaries increased by 55.98% in the past 15 years.

Agents’ wages increased more since 1999 relative to inflation, but not as much as home prices. Why is this? Well, the increase in average home price can account for the increase in salary for real estate agents, who earn a percentage of the sale. However, the pay increase does not quite match the increase in home price, and that’s because there are nearly 3 times the amount of real estate agents than there were 15 years ago.

Could it be that real estate agents are selling less homes every year than in they did in 1999, but the homes they are selling are worth more? Or are agents taking a smaller percentage of the sale? Let us know your thoughts on this data!

*According to usinflationcalculator.com/, inflation from 1999 to 2014 was 42.1%

All photos used under this license.

 

Five Things You Should Know Before Building an Underground Home

Ever wonder what it would be like to live like a hobbit?  Well wonder no further, since here is all the information you need to know before you build the underground home of your dreams.  If you need additional help on making decisions, click on this link that told us all about underground homes.

1)  Underground Homes are Energy Efficient

Being that the homes are protected from weather and underground, they are able to maintain more stable ranges of temperatures.  This ability to maintain temperature, helps to make the home  more energy efficient as you do not need to use heating and cooling systems as much.

2) Underground Homes are Better Protected Against Mother Nature

Since you are underground, you are better protected from weather.  This means that rather than fearing for your above ground home during a rain storm, hail storm or tornado,  mother nature has already offered all of the protection against weather you could ever need.

3) Underground Homes are More Expensive to Build

Since you have to dig out an area for your home, excavation costs are way more expensive than a regular home.  This means that the inital costs to getting the underground home of your dreams will be steep, but remember, your home will be efficient, which will save you money in the long run.

13462684734_7df6f14c33_kFlickr Creative Commons: Anup Shah

4)  Underground Homes are a Contractors Dream

After, you dig out your hole, or cave for your new home, your home becomes very easy to build into the environment of your choosing.  For this reason, your home is easy, but allows for creativity and ingenuity, which is a designers and contractors dream!

5) Underground Homes are Comfortable Places to Live

Underground homes promote a great environment for peaceful, stable, and comfortable living,  because your home is stable against weather, connected to the earth, and promotes green living.  These things will leave you with peace of mind and happiness in your decision that your chose to build an underground home!

13462702344_2f791ffd66_kFlickr Creative Commons: Anup Shah

 

5 Questions You Should Ask Yourself Before You Invest!

When it comes to buying property, it is better to be prepared! You never want to be stuck in situation that you didn’t expect, with no way to get out. To prevent this from happening, realestate.com published a list of questions you should ask before you buy a new property.  Here are the top five, most important questions from the list.

1) What is your plan?

Never be left without a plan.  When you go to buy a new property, make sure you are prepared, by knowing how you will finance your purchase,  your investment rates,  unexpected costs,  and any other money plans.  In addition, you should make a plan about the layout of your home, remodeling, and how your family will integrate into the community.

2) What kind of property should you start with?

Make sure that when you go to buy a new home, you have choose the property that will suit your family needs.  For example,  by knowing that you would like a property with a large backyard with room for your family to play, you have eliminated the need to look at several properties that do not fit your needs. This will make your search for a home easier on you and your realtor.

3) What is the neighborhood like?

2609920304_5e7ae488a5_bFlickr Creative Commons: Chris Dlugosz

The neighborhood, is just as important the home you purchase.  Before you purchase a home, visit the property at several different times a day to ensure that the neighborhood is suitable for your family.  In addition,  do a little research on the community and the other homes in the neighborhood, that way you know for sure that you will fit into the neighborhood vibe.

4) Do you know your investment expenses?

Knowing your investment expenses is important in any scenario,  but it is especially important when buying a new home. Make sure that you have a list of all expenses, so you can budget out your finances.

5) What is your exit strategy?

Always have an exit strategy when purchasing a new home.  You never ever want to be in a scenario that you are going to purchase a new home, and you do not have a way out.  Talk to your realtor to plan for an exit strategy, in the slight chance that their is something terribly wrong with the home.

Top 5 Most Expensive U.S. Cities to Buy a Home!

7647266344_a2eef11463_kFlickr Creative Commons: Ron Cogswell

The price of property is so darn expensive, especially in these cities.  Here is a list of the most expensive places to purchase a home, if you would like the full list click on this link.   Even if you can’t  buy in these locations, you can still dream about your millionaire lifestyle and mansion!

  1) Manhattan, New York

Surprise, Surprise, Manhattan takes the top spot! These location, in the heart of New York City is the perfect location for the rich and the famous.  With over “177 listings priced over 10 million dollars” (CBS), it is no wonder it takes the top spot.

2) Los Angeles, California

Again, what a shocker! The second largest city in the United States has the second highest property prices.   Nestled in lower California and practically paradise, it is not surprising that Los Angeles has “87 homes that cost over 10 million dollars” (CBS).

3) Malibu, California

California Represent! This beautiful  location, just outside of Los Angeles is home to many stunning beaches and famous celebrities!  It also has “65 homes listed at over 10 million dollars” (CBS).

4) Miami, Florida

I love Florida! It is beautiful!!  Located i the very south of the peninsula, Miami takes the fourth sport for most expensive city to purchase a home.  With such a prime location and wonderful scenery, It has “60 homes listed over 10 million dollars” (CBS).

5) Beverly Hills, California

“Beverly Hills, thats where I want to be!” Weezer said it right when they described this beautiful area tucked away near Hollywood hills and Los Angeles.  Also, they are alone, because Beverly Hills is home to over “58 homes over 10 million dollars” (CBS).

Top Five House Hunting Tricks

Searching for a new home can be difficult.  Many times you walk through a home and it isn’t exactly what you want or it doesn’t have the right feel.  Sometimes the lighting is off or the color is just not right.  Well fortunately for the troubled home buyers, Houzz, created a list of the 12 Housing Hunting Tips, to make your home buying experience easier.  I have taken the top five from this list, as I think they are the most important and reasonable.

1)  Make a List of What you Want for your Home

Lets face it, we are all dreamers.  We all want the large classic home, with a large backyard, in the city, at a low price, with classic woodwork, in the right neighborhood, and move in ready.  Unfortunately, this is terribly unrealistic.  Instead it is better to make a small realistic list of the things your home must have.  For example, wood flooring, stainless steel appliances, and vaulted ceilings.  A list like this gives you more options for neighborhoods and homes, as well as allowing you to look at homes that are specifically tailored to your list.

2)  Walk Through the Property, with an Unbiased Opinion

This one is really important, as no home is perfect.  There are going to be features you don’t like, weird layouts, and horrible colors.  However, by going through with an unbiased opinion you can see the true beauty of the home, and imagine its potential.  Remember, you can always change the paint color, and knock down a wall or two.

3) Make a Pro/ Con List

 

Once you have looked at several homes, make a pro and con list of the things you liked and disliked.  By doing so, you can get an honest evaluation of each home and whether it is going to be right for you.   Specifically, if there are more things in the con list than there are in the pro list, it is probably better that you do not buy this home.

4) Imagine How you are Going to Use the Spaces in the Home

 

Once you have found a home you like, and it has more pros, than cons, it is important to imagine how you are going to use the spaces.  Think about the layout of your bedrooms, kitchens and living rooms, to see if your style truly fits the home.  By planning out your ideas, it can eliminate any disappointment after moving in the home, and make sure that the space is right for you.

 

5)  Look at the Property at Different Times in the Day

4038233322_68f53080e4_bFlickr Creative Commons: Sonja Lovas

Just as the inside of the home is important, it is also important to consider the outside of the home.  By stopping by the property at different times of the day, you can get a good feel for the how it is going to look at all times of day, and whether the vibe of the neighborhood throughout the day is right for you.  For example, say you view the home at eleven in the afternoon, and everything is quiet and orderly. However when you come back around six o’clock at night, it is a busy, noisy neighborhood, full of kids and parties.  This would be an unfortunate situation.  That is why by checking the home at different times of day, you can eliminate this problem entirely.

Now that you know the tricks of the trade, go out and find the home of your dreams! But remember, remain realistic and open minded, as you could come to like something you never thought you would!

5 Housing Market Predictions for 2015

Since the housing market crash in 2008,  the market has been steadily recovering.  While this trend is set to continue, 2015’s housing market will be a bit different than the earlier years. These changes were highlighted in  a Forbes article by Erin Carlyle.  In the article she gave 11 predictions for the market.  Even though these were all valuable predictions,  only five of them really stood out to me.  These five are listed below.

1) Fore-closures will Match Pre-recession Levels

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Flickr Creative Commons: Nicholas A. Tonelli

It is always a positive thing that less home are going into foreclosure.   It means more people have job, more money, and better opportunities. Fortunately,  for us, this trend will continue.  In fact,  in “2014, there were 1,256,070 foreclosure filings in the U.S., according to Irvine, Calif.-based data firm RealtyTrac, down about 17.2% from the same period the prior year, when there were 1,516,332 filings“(Carlyle 2).  This statistic shows that the market is recovering, and will continue to “return to pre-crisis levels”(Carlyle 2).

2) Prices will Rise More Slowly

 

Even though increasing housing prices is a good thing for home owners, this year the rate at which prices increase is going to slow, proving that the market is  stabilizing.   The reason for this is that “housing inventory levels and the exit of investors from the market are helping to put the brakes on home price escalation”(Carlyle 1).  Even though investors are leaving the market, it is not as bad as it sounds. In fact it “represents a fundamental shift in the market: we’ve moved out of the rapid recovery phase and into a new normal”(Carlyle 1).

3) Affordability will Worsen

The decrease of affordability is the result of two specific things.  The first is that housing prices have increased, making the affordability of the homes decrease.   The second is due to “higher mortgage rates which erode affordability”(Carlyle 1). These factors will prevent another housing bubble and overvalued homes, both positive things, as we do not want to have another housing market crash.

4) Mortgage Rates will Rise

Also in response to the increasing value of homes and booming market,  Feds have increased mortgage rates, to slow the pace of growth.  The increase in mortgage rates is small, “The Mortgage Bankers’ Association predicts that rates will rise to 5% by the end of 2015”(Carlyle 1).  The five percent mortgage rate will still keep buyers interested and the housing market improving.

5) Rent Increases will Outpace Home Value Growth

Currently the millennial generation is renting, rather than purchasing homes.  While this is not a bad thing, it has lead to increased percentage of rental valuation, which will be larger than the percentage of home valuation.  In fact,  “forecasts that rents will rise 3.5% in 2015, outpacing his predicted 2.5% for annual home price gains”(Carlyle 1).

The Green Lifestyle and Your Home

Ecological awareness is very important to our modern society. As our globe and populations mature, we are beginning to understand the personal effect they are having on our globe, resources, and health. Each day we are becoming increasingly aware of our carbon footprint. This awareness can be factored into any remodeling or construction of the home. Now, building and gaining certification of a green home is a possibility with the LEED, a program that is helping citizens in America to achieve an Eco-friendly lifestyle. While this program is not for everyone, as it is very expensive and laborious, it is important to know your home possibilities and small steps you can take in your home to be more environmentally conscious. Engaging in LEED, whether in major construction project or minor upgrades, can lead to increased value of your home, healthy home environment, and decreased price of bills.

Now, what is LEED exactly?
The LEED Program, “Leadership in Energy & Environmental Design”, offers people the best and latest possibilities in green living (USBGC 1). They are sponsored and given certification through the United States Building Council. LEED offers its clients with any range of “energy and environmental design”, whether it is commercial, residential, small or large (USBGC 1).

How can I obtain certification? What does this mean for me?
LEED certification happens when your home has meet the level of green requirements, built into the program. Based off of a point system, costumer’s can be either a “certified, silver, gold or platinum” builder, based on the number of requirements you have met (USBGC 2). In becoming certified, your home will be effectively a green building, further increasing the value of your home.

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Flickr Creative Commons: Shelia

Okay, but does this program really apply to me?
Of course! Even if you’re not certified, looking into their plans of green construction can give your ideas of how to make your home ecologically friendly. What’s more, is that if you do indeed plan to participate in LEED, they have many different possibilities. Whatever your decision is, their main objective is to provide any costumer with homes that are “healthy, provide clean indoor air, and incorporating safe building materials to ensure a comfortable home. Using less energy and water means lower utility bills each month” (USBGC 3).

Cool, but why should I considered changing my home and lifestyle?
1) Having an ecologically forward home, point blank, increases its value! As stated by Michelle Wardlaw in Realtor.org , “Going green has proven to be more than a trend; many people now seek out this way of living and want homes and communities that are more resource efficient and sensitive to the environment”(1). Thus proves that the demand and value for green homes in on the rise.
2) You have done your part to aid the environment!By taking even the smallest steps to green lifestyle, you are decreasing the environmental strain that you put on your environment.
3) You have helped your community! Not only have you cleaned up and preserved your neighborhood, but by participating in the program, you agree to build locally. By only purchase local materials, you are decrease the carbon emissions produced in their transportation. In addition, you are supporting your local economy!
4) You will save money! Also stated by Michelle Wardlaw, in Realtor.org, “the higher a home’s energy efficiency, the more money is potentially saved in monthly heating and cooling costs”(1). Meaning that the more ecological efficiency your home has the lower your bills will be.
5) You have done a great thing!Be proud of yourself! You have done a great thing and set a great example to those around you!

Given the facts above, and the information about global warming, think about making the switch to incorporating the green lifestyle into your home. You truly can only benefit!

Top 5 Phone Apps for Realtors

Technology is a great resource for any professional today. For realtors, who are always on the go, what phone apps serve them best to make their jobs that much easier? Well, we’ve gathered 5 apps we suggest every realtor should have on their phones/tablets. Let us know if there is one you use the most:

1. Pro HDR

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View in iTunes store here

This app will allow you to take pictures of your properties, modify the lighting or little edits you can add to enhance the picture and make it a higher definition one.

2.  Storehouse

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View in iTunes store here

Imagine talking to a prospect buyer and pulling out a video and pictures with the virtual tour of a house right from your phone or tablet. This will make you look even more professional, but also one that’s eager and ready to get things done. Your clients will surely appreciate it.

3. Genius Scan

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View in iTunes store here.

 

Realtors, and agents are never in one single place. Odds are sometimes you might have to run back to the office to scan a document and end up losing time and gas. This app can scan your documents and turn them into a PDF or JPEG doc. Take a picture, and send it over through email as either format with no problem and no need to run to anywhere.

4. Waze

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View in iTunes store here.

 

Ever been stuck in traffic in a unfamiliar part of the city wishing you could know of a shortcut? Well, we’ve got one for you! Well, iTunes and Google has one, but we’re telling you this one is will make your life so much easier. This app will tell you the traffic updates  or road closures close to your location. Sounds like a perfect app for someone who’s always on the go!

5. Dashlane

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View in iTunes store here.

Realtors can have over 10 social media platforms. With all the names, addresses, information realtors receive in one day chances are you might forget passwords often. This app will solve that problem alone. Not only does it save your login information, but also receipts, payment methods, credit card information. Perfect app for a busy professional such as a realtor or agent.

 

5 Hacks to Make Your Studio Apartment Look Bigger

Do you live in a loft? studio apartment? Do you see yourself living there for a while, or do you just like that style and can’t see yourself leaving it? Well, we totally understand, and we’ve got tips for you to make every square footage of that room count. Here are five hacks to make your studio apartment look bigger than it actually is:

 

1. Lighten up the floors

Yep, that’s right. Make your floors a lighter color. Paint them, or if you’re renting the place  and your lease won’t allow it, then a wide bright rug will do the trick just fine, as well.

 

2.  Clear it up

By this we mean, clear, see-through furniture is your best choice. Side tables with see-through legs. All these help into making it seem there is less space, or clutter. Try it out and tell us what you think!

3. Two-for-One

To some people this idea never seems like fun, but then again some people love the efficiency of it. Think of buying one furniture that doubles into something else. For example, your side table could also double as a bar. These not only save you space, but also keeps you and almost forces you to keep the space less cluttered  and more organized.

 

4. The walls are your friends

Well, it might sound silly but they are! They become extra space you can occupy. For example, hang your necklaces, towels, etc. Have that become another space that you can use. Here’s a tip: make sure everything has at least 5-8 inches of space between each other. The trick is to never make it seem like it’s cluttered.

 

5. Higher Up

Ok, so now we’ve used up your walls, floor, and even doubled-up some furniture use. Now, look up. Yes, the ceilings. No, we’re not hanging anything from there today (although we recommend you do—some interior decorators suggest hanging plants gives it a sense of more space to a room), but we will be painting it. If you are lucky enough to have a high ceiling, then feel free to paint it! We suggest you do the same color as your floor to lighten up the place even more.

 

Well reader, here is where we end our post. Hopefully, you’ve find it informative! Feel free to tell us if you’ve tried any of this and it’s worked! Or, if you’d like to add some more tips, feel free to do so in the comments below!

 

 

Find the original article here.

10 Reasons Why You Should Hire a Real Estate Agent

It’s not easy buying or selling a house. You’re full-time job is work enough. Imagine putting the pressure, stress, and extra work that comes with selling or buying a house. Cue real estate agent. Not only do they advise you on what’s best to their knowledge, but the best are experienced, and can help you get the best for your budget. Don’t stress and call a real estate agent. You won’t regret it! The top 10 Reasons To Hire a Real Estate Agent can be found on this infographic:

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Source: Keeping Current Matters. Find their website here.