Why You Should Sell Your House Now…Before Winter Hits

Why You Should Sell Now... Before Winter Hits | Keeping Current Matters

People across the country are beginning to think about what their life will look like next year. It happens every Fall. We ponder whether we should relocate to a different part of the country to find better year-round weather or perhaps move across the state for better job opportunities.

Homeowners in this situation must consider whether they should sell their house now or wait. If you are one of these potential sellers, here are five important reasons to do it now versus the dead of winter.

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now!

As we get later into the year, many people have other things (weather, holidays, etc.) that distract them from searching for a home. Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing supply is still well under the 6 months’ supply necessary for a normal market. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market in recent times has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. Any delay in the process is always prolonged during the winter holiday season. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 18.1% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.  Call us at 610-432-0900 or visit us anytime at www.themichaelmannteam.com to get started now.

Lucky Low Rates…Get them Now!

Don’t Let Your “Luck” Run Out | Keeping Current Matters

The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate.

If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you.

Predictions for 2016 2Q:

Even an increase of half a percentage point can put a dent in your family’s net worth.

Let’s look at it this way…

The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173.

If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000.

If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354.

Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.

If you or someone you know is thinking about buying real estate in the next year visit us at www.themichaelmannteam.com or call us at 610-432-0900 to get started today.

Michael Mann

New Construction vs. Existing Home Inventory

New Construction = New Competition | Keeping Current Matters

For the last several years, home sellers had to compete with huge inventories of distressed properties (foreclosures and short sales). The great news is that the supply of these properties is falling like a rock in the vast majority of housing markets (only 11% of homes sold in January). Many homeowners are now thinking of selling as the impact of this substantially discounted competition has disappeared.

However, every seller of an existing residential property must realize that there is a new form of competition in the market: newly constructed homes.

According to the National Association of Realtors’ Profile of Home Buyers & Sellers new home sales accounted for 16% of all homes sold in 2014. The graph below shows the top 5 reasons that a buyer would choose new construction over an existing home.

Reasons to Purchase a New Home | Keeping Current Matters

The top three should not come by surprise. With a new home comes the ability to customize the design of the home and the ability to avoid having to renovate or deal with existing problems.

The 10% of respondents who cited “Lack of Inventory of Existing Homes” could very well increase in 2015. Existing home inventory for sale currently sits at a 4.7 months supply, well below the six-months needed to be at a historically normal market.

National Association of Home Builders (NAHB) reports that there is currently a 5.4 months supply inventory of new construction available for purchase.

Months Inventory New Homes for Sale | Keeping Current Matters

Bottom Line

With a steady buyer demand currently in the market, if you are thinking of selling, perhaps you should do it now to avoid additional competition coming to the market.  If you’re thinking about jumping into the market visit us today at www.themichaelmannteam.com or call 610-432-0900 to get started.

Michael Mann

Home Prices: A 5-Year Outlook

sales-up

So, what does the future hold for homeowners?  Even the most bearish predictions show good appreciation:

With inventory presently below historically normal levels, current & future home prices have been the topic of many real estate conversations. The most recent Home Price Expectation Survey was just released; giving insight into where experts believe prices will be leading up to 2019.

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Here are some highlights from their latest survey:

  • Home values will appreciate by 4.4% in 2015.
  • The cumulative appreciation will be 19.3% by 2019.
  • That means the average annual appreciation will be 3.6% over the next 5 years.
  • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.7% by 2019.

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

If you know someone who would like to get pre-approved for a mortgage, call us at 610-432-0900 or visit us at www.themichaelmannteam.com to get started today!

Michael Mann

Net Worth: A Homeowner’s is 36x Greater Than A Renter!

Helping-or-Hurting

Over the last six years, home ownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.

Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.

Some of the findings revealed in their report:

  • The average American family has a net worth of $81,200
  • Of that net worth, 61.4% ($49,856) of it is in home equity
  • A homeowner’s net worth is over 36 times greater than that of a renter
  • The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.

If you or a client wants to increase their net worth by buying a home or investing in real estate, the Michael Mann Team is here to help.  Please visit us at www.themichaelmannteam.com or call us at 610-432-0900 to get started today.

Michael Mann

The Best Time to Sell Your Home – Real Estate News

Featured image

Is spring closer than we think? Depending on which Groundhog you witnessed yesterday, you may have less time than you think to get your home on the market before the busy spring season.

Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

Here are five reasons to sell now.

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that there are currently more prospective purchasers looking at homes than at any other time in the last 12 months, which includes last spring’s buyers’ market. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing supply just dropped to 4.4 months, which is under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 23.5% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to be a full point higher by the end of 2015.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

If you or anyone you know needs to speak with a professional about making your next move, please call us at 610-432-0900 or visit us at www.themichaelmannteam.com.

Michael Mann

Get Your Marketing in Order for 2015 – Real Estate News

sales-up

Well, it looks like we’re going to get some snow today…anywhere from 1 to 30 inches depending on who you listen to…

Weather can be unpredictable and variable.  What should not be is the way in which you establish your presence in the market.  Today’s sales professionals need to establish a consistent, constant and predictable plan for marketing.  We need to utilize the web, social media and traditional channels of communication in order to succeed.  Not only that, but we can’t just post here and there, and expect results.  We have to be consistent.  We have to establish our initial presence and then keep up the pressure with a consistent marketing effort.

Do you want to be a more successful Real Estate Agent? What does success look like to you? Making more money? Working fewer hours? Or Both?

A recent independent survey of Real Estate Agents nationwide indicated that over 85% of agents fail to have a consistent marketing and branding game plan that they execute for a 12 straight months.

The reasons this happens is….

#1 Agents get busy. When agents are busy they are in reaction mode so they forget to execute their marketing and branding game plan

#2 Agents are slow. When agents are slow they are low on money and low on energy and excitement so they neglect to execute their marketing and branding game plan

#3 Agents don’t know where to begin.

Over the past 6 years I have had the pleasure of presenting to over 950 Real Estate agents in either a workshop, online seminar or training of some kind. I have been teaching agents how to generate, cultivate, incubate and convert leads and good number of agents have experienced increased sales on one level or another, but the most common mistake I see agents make is, they implement what I have taught them, only to go back to the “OLD WAY” of doing things because of one of the reasons I mentioned earlier.

Well let’s stop the madness…. I am proud to announce that we are working with a company and we are rolling out a comprehensive marketing plan where we take care of the marketing for you. It’s a set it and forget type of program. Now no matter how busy you get, your marketing will be sent out for you. Were talking print mail, postcard letters, etc. We’re talking email marketing, campaigns, follow-up, you got it. We’re talking social media marketing, brand marketing, direct mail fulfillment all leading up to one thing….client retention….. and more closed transactions.

Every year I pick a theme word that encapsulates our mission for that year. Last years word was elevate. The word of 2015 is contribution. Whether or not you partner with the Michael Mann Team, I still want to contribute to you growing your business. That is why, I am bringing this platform to you. Whether we are your lender or not, I want you to benefit from this program.

Is developing market strategies based upon video important to you?  Is having great video and professional photography, that’s affordable, important to you and your market strategy? Well with a sponsor, your HD home tour videos can be as low as $100.00 per professional video shoot and that includes professional photography. You don’t need to use The Michael Mann Team as a sponsor, in fact, bring your own sponsors and you can still enjoy the benefits of this program. Like I said, you don’t have to use the Michael Mann Team as your mortgage partner, BUT, if your lender is unwilling to be your sponsor, I would be happy to sit down and talk with you about your marketing plan. How do you learn more about this program that will put more money in your pocket and free up valuable time for you to do more of what you want to do????

Would you like to Improve your professional presence on the web? Do you think it’s important to publish relevant content on the main social media websites? Would you want someone to do it for you? Did you know 78% of agents have at least 2 errors in their social media and their online presence. What if a lead or client wanted to do business with you and had wrong contact information? What if it only happened once per year? That could cost you between $5,000 and $15,000 dollars… We will fix that.

What about the agents that don’t have a massive marketing budget??? There are programs that cost under $25 dollars a month. So whether you are just starting in the business, or you are an agent that wants to get to the next level we have a plan for you.

We are hosting a personal development workshop in conjunction with The Greater Lehigh Valley Realtors and The Greater Lehigh Valley Real Estate Academy on Wednesday February 18th at 9AM at the GLVR building and they only have 70 Seats available. And they are serving breakfast……..

Ask yourself:  Would you do more marketing, more consistent marketing, if someone was helping you and creating content for you?  Are you providing a consistent and constant message through all social media channels (LinkedIn, Facebook, Twitter, Google+, etc.)?  Would you like a “set it and forget it” strategy that could ensure that your marketing was done in a consistent manner and your message and presence on the web was second to none?

Some of the things we’ll cover:

– Improve your professional presence on the web
– Timely content posted to your social media outlets
– Set it and forget it marketing plan (direct mail, email and social media)
– Generate, Cultivate, Incubate and Convert more Leads
– Professional Photography on Listings – Do’s and Don’ts
– 10 reasons why great video that is affordable and brands YOU and your Listings should be on your radar for 2015!

Sales people have a lot going on…I get it.  Don’t let your marketing efforts fall victim to your ever-changing schedule.  Weather is unpredictable, your marketing efforts don’t have to be.  Please join us for this event and improve your business with tools for marketing in 2015.

As always, if you have someone who needs to be pre-qualified for a mortgage, our Team is waiting to hear from you.  Please visit us at www.themichaelmannteam.com or call us at 610-432-0900.

Be safe out there!  See you on the 18th!

Michael Mann