Selling Columbia SC homes has been described as equal parts art and science. Of course, the ultimate goal for any seller is to sell their home as quickly and at as high a price as the market will bear. However, when that doesn't happen it can be frustrating to say the least – especially when other houses in your neighborhood or similar markets sell faster and for top dollar. So, why did that other home sell instead of yours? Let’s take a hypothetical look.
Let’s say both your home and the one that sold are in the same neighborhood and are roughly the same size. Since they are very similar in heated square footage, have the same number of bedrooms and baths and other comparable bells and whistles, they should both sell for roughly the same sales price and at about the same time. That’s the normal assumption most homeowners selling Columbia SC homes have. When that doesn't happen, the natural conclusion is that your real estate agent is to blame. You wonder if they didn't advertise it well enough or often enough. However, the real culprit could very well be the manner in which your home was offered to the home buying marketplace. Let’s compare the homes in the following scenario.
The home that didn't sell.
Many homeowners make the mistake of not updating their home before they start working towards the ultimate goal of selling Columbia SC homes or a home. Let’s say you’ve owned your home for 30 years or more. You’ve raised a family and now are facing the “empty-nester” syndrome. You’ll probably downsize once you sell, but you really don’t have a plan yet. Most experts agree, that contributes greatly to the problem in selling your home. It’s more than just a catchy phrase, but “Sellers who fail to plan, plan to fail.” These homeowners are more likely to go against the grain and “wing it” despite the recommendations of the real estate professionals who encourage them to spruce up the home and make needed repairs and updates to present it in the best possible light. Instead, they elect to list their home “as-is.” Because it’s similar in size and features of other homes in the same price range – only those homes have been updated and prepped better – it gets little buyer interest and almost no activity. The bad first impression implies to some agents and others the house must have hidden issues, as well. The house continues to stay on the market – unsold – until it finally sells at a much lower price than it could have.
The home that sold.
Remember, the home that sold quickly and at the seller’s asking price had many things in common with the one that didn’t. However, its sellers planned ahead, knew what they wanted and executed their plan to perfection. They asked a professional agent what they should do to make their home marketable to sell as efficiently and effectively as possible. They plan to downsize and move to a nearby town to be closer to their children and grandchildren. Their agent implemented a several-month plan to make necessary improvements and repairs to their home. In addition, it gave the sellers the opportunity to plan their transition by having an estate sale and putting excess furniture and other items into temporary storage. They hired a home-staging company to assist with making their home as presentable as possible – including removing their personal items, photos and collectibles – for prospective buyers to “picture themselves” in the home. As a result, once the home was listed on the market it was well-received by agents and prospects alike. In fact, the sellers received several competitive offers from which a cash buyer was chosen and closed the sale within three weeks from the contract date. That scenario is the ultimate goal of anyone selling Columbia SC homes.
Why don't all sellers do what they should?
Simply put, because people are different. Some homeowners find that selling their home after living in it for nearly all their lives can be difficult thing to do. It’s a personal decision – and although that’s understandable – it’s a financial decision, too. Their home is likely the largest financial purchase they’ve ever made, which makes it an integral part of their investment portfolio. As such, they should treat this investment like their others, by listening to the professionals who know the market better than they do. In addition, most buyers have a great sense of what they’re looking for in a home – whether it’s their first or fifth. So, unless they’re in the market for a home that needs to be updated and that can be bought for considerably less than others in the market, they will likely always opt for a “move-in ready” home. The point is, as sellers, homeowners need to realize there is less demand for an “as-is” home than there is for one already updated.
Give your buyers what they are looking for.
As mentioned above, most prospective home purchasers don’t want to spend their money or their time on renovation projects. In addition, there’s always something that may come up during the renovation or remodeling that’s unexpected and can add to the expense. So, the moral to the story is to give the buyer what they want – a home they can move into quickly and make the transition as smooth as possible. That’s why the experts suggest painting your home's walls in neutral colors with newly-finished hardwood floors. It will help purchasers adapt their furnishings into the new home with little added maintenance or repairs. After all, when buying a “new” home, isn't that what most buyers are looking for?
See more articles pertaining to selling Columbia SC homes in the Columbia SC Home Selling Tips section of our site below Columbia SC Real Estate Categories in the column to your right.
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Columbia SC kitchen home improvements include remodeling and renovation to one of the most important rooms in any home. Because it’s so important, it’s imperative that homeowners hoping for a successful kitchen remodeling project start with a realistic budget – and stick to it! Establishing the budget is a definite "must do." In addition, the budget should always rule every decision during the course of the work. Here are five easy steps that will help you and your spouse set – and adhere to – your kitchen remodeling budget costs.
Do your homework.
The first step in creating your budget is to understand what you’re dealing with. No doubt you have an idea of the specifics you’d like to accomplish with the remodeling project and a general idea of what items like new appliances may cost to purchase and install. However, that’s just the beginning. It’s vital to have a handle on the typical cost of remodeling kitchens in today’s market. Remodeling Magazine, in its 2016 Cost vs. Value Report, says the average cost throughout the U.S. for a middle-range kitchen remodeling or renovation project is nearly $60,000. In addition, the average return on value is roughly 65%. Translated, this means that for every dollar you spend you’ll have a return on your investment of 65 cents. So, a $30,000 kitchen remodeling project may add $19,500 to your home’s value. Of course, these amounts will vary depending on the size of your home and the scope of your Columbia SC kitchen home improvements project.
If you’re considering remodeling your kitchen to improve its sales value, remember this: Your home’s valuation – or sales price – is dependent upon how it stacks up to comparable homes in your market or neighborhood. Don’t go overboard by having THE best kitchen in the neighborhood. You probably will enjoy a lower return on investment when you sell.
If you’re remodeling your kitchen for your own personal enjoyment and benefit, choose a remodeling plan that best matches your family’s tastes, needs and lifestyle. And, if you’re planning to sell your home in the next 5-7 years, treat your kitchen project as an investment. If yours is a higher-priced home, you’ll want to make sure your kitchen includes top-of-the-line appliances, granite countertops, high-quality custom cabinetry and upgraded flooring. The experts suggest engaging the service of a professional decorator specializing in functional and fashionable kitchen remodels.
Set your budget and live with it.
When it comes to Columbia SC kitchen home improvements – it’s best to determine in advance how you want your kitchen to look. Will it include a center island? What style and material will the cabinetry look like? Will you go with stainless steel appliances? What about kitchen sink and faucet hardware? Price out each of the items and use the total as a starting point from which you can expand or contract. A rule of thumb is to maintain the remodeling budget in the range of 5% to 15% of the total value of your home. So, if your home’s value is $400,000 your kitchen remodeling budget goal should be in the $20,000 – $60,000 range. It’s important that once you set the range, you adhere to the maximum budget. We recommend having some leeway built in for contingencies, but make sure you don’t exceed them.
Know your costs and their origin.
As is the case with any remodeling project, the various components of a kitchen renovation are broken down as a percentage of the total cost. The National Kitchen and Bath Association has published this cost component breakdown for guidance:
• Design fees: 4%
• Installation (of cabinetry, flooring, plumbing and appliances:) 17%
• Appliances and ventilation: 14%
• Cabinetry and hardware: 29%
• Countertops: 10%
• Lighting: 5%
• Flooring: 7%
• Doors and windows: 4%
• Walls and ceilings: 5%
• Faucets and plumbing: 4%
• Other items: 1%
Prepare for the unexpected.
It’s important to understand that almost every project involving Columbia SC kitchen home improvements will face unexpected costs. The trick is to anticipate them as best as possible in order to be prepared for them. We suggest budgeting a contingency of 20% to allow for unexpected twists and turns. They could range from plumbing problems caused by older pipes to wiring issues as a result of bad electrical work or overloaded circuitry.
Hire a professional.
One of the best things you can do to ensure you stay within your budget is to hire the right professional for your kitchen project. With proper, ongoing communication not only will you stay within budget, but you can probably expect to save money in some cases. Contractors are able to buy appliances and materials in bulk can pass the savings on to their clients. Be sure to give your professional remodeler a complete list of what you want and what you expect. Have your professional give you a written estimate including a timetable of when payments or draws are expected. Most importantly, have a clear understanding of what it will cost in – in terms of both time and money – should you decide to make design changes during the course of the remodeling project. Some contractors are notorious for issuing change orders without estimating the costs. The result can be disastrous to your budget. Instead of simply asking the question, “Can we move the cabinets over a foot in order to add a wider refrigerator,” ask, “If we decided to move the cabinets over by a foot or so, what would the additional cost be and would it delay the project?”
With proper planning and focused budgeting, your kitchen remodeling project may be one of the most profitable Columbia SC kitchen home improvements you can make. Remember, set your budget, allow for contingencies, and stick to what you’ve budgeted. Not only will you end up with a beautiful addition to your home, but having it completed within your budget will give you a great sense of accomplishment and future enjoyment.
You can find more articles pertaining to home improvements in the Columbia SC Home Improvements section of our site below Columbia SC Real Estate Categories in the column to your right.We also post tips daily on Twitter and Facebook and would love for you to follow us there as well.
After several years on the sidelines, a new report shows Columbia SC millennial homebuyers are finally starting to enter the market. The recently published survey included more than 13,000 homeowners, renters, buyers and sellers and is part of the Zillow Group Consumer Housing Trends Report. The survey shows millennials are participating in the market and, indeed, making a larger impact than originally thought. Half of all buyers in today’s real estate market are age 36 or younger. In addition, half of all sellers are under age 41.
The Zillow Group survey also reveals the young adult Columbia SC millennial homebuyers are instrumental in adding greater diversity to the real estate market and others throughout the U.S. Roughly 66% of millennial homeowners are white, compared to 77% of all homeowners. Millennial homeowners are comprised of Latinos or Hispanics with 17%, African-American homeowners total 10% and Asian or Pacific Islanders comprise 7%.
Surprisingly, the new report showed an unusually high number of millennial homeowners live in the nation’s suburbs. Previously, statistics showed millennials gravitated to the metropolitan areas and the conveniences renting close to their jobs provided. The study revealed that 47% of millennials now live in the suburbs.
The transition of millennials into suburbia is more than just a “coming of age.” The rise in popularity is largely driven by the cost of living. The urban or metropolitan living, though hip, trendy and popular was also expensive. The irrefutable laws of supply and demand showed, once again, that as a product becomes popular it also becomes more valuable. As a result, metropolitan home prices have skyrocketed in recent years. A good number of millennials, therefore, have explored greater opportunities in the suburbs. The trade-offs of making the decision to live farther away from their downtown jobs include larger homes and shared amenities in new neighborhoods that feature such attractions as community pools, fitness centers, recreation areas and playgrounds.
Suburbs Attracting Most Columbia SC Millennial Homebuyers
The millennial migration to the suburbs seems like a logical progression for many. Their reluctance to buy their first homes was based largely on the rising costs of housing. The new research unveiled by Zillow shows the current market’s “started homes” are nearly as large as the homes other first-time buyers may move up into – and they cost as much as 18% less. Before we pronounce urban living as a thing of the past, it’s interesting to note that it is still thriving. Statistics show roughly 33% of millennial-aged homeowners live in what can be described as the "urban metropolitan city cores." In fact, millennials living in the metropolitan areas comprise a larger percentage of homeowners of any previous generation of Americans.
While there appears to be more Columbia SC millennial homebuyers in the market than previously thought, it’s not for everybody. Experts say 66% of millennials in the home buying market are also considering renting as an option. Roughly one in three millennials seriously consider renting. The reason? As usual, money. To millennials, buying a home is a huge hassle. Statistics show home buyers spend more than four months shopping for a home to purchase. In addition, after all that time and effort, 32% of buyers end up paying more than they had initially planned or budgeted for. As Columbia SC real estate prices soared in recent months – while home inventory remained at near-record lows – it wasn't unusual for successful buyers to make more than one offer before they found a home. To avoid the large number of rejected offers and to make every effort to adhere to their predetermined budget, many millennials have opted to remain on the sidelines and continue to rent. Again, the reason is purely financial. Of the renters across the U.S., nearly 60% earn less than $50,000 annually. Conversely, home buyers average $87,500 in yearly income. As one real estate expert puts it, “Depending on where they (millennials) live, home ownership may be out of reach.”
Why All Columbia SC Millennial Homebuyers Aren't Ready Yet
With a larger number of millennials venturing into the home ownership arena, the question remains, “Why not all?” As mentioned above, Columbia SC millennial homebuyers are cost-conscious. While often thought of as impulsive and reckless with their spending – as most young people for generations have been characterized – most millennials value their money. During the housing crisis of less than a decade ago, many members of the millennial generation watched helplessly as their families and friends struggled with homes, mortgages, jobs and other byproducts of a nationwide recession. They’ve seen firsthand the effects that job layoffs and foreclosures have had on their families or someone they know. As a result, many millennials have emerged with the mindset that they won’t make the same mistakes that others made. Home buying for them, at least at their young age, is something they should enter into with careful thought and financial planning.
Another segment of millennials have, no doubt, been ill-informed that they won't be able to qualify for a home mortgage unless they have a large enough (20%) down payment. While that goal may still be one of choice, perhaps a larger number of millennials would consider buying if they were made more aware and understood better the low down payment lending programs in today’s market.
Some millennials say they are reluctant to by a home until they are confident their career choices and employment decisions are stable. The thought of buying a home only to put it on the market a year or two later if they get transferred or change jobs seems like more trouble than it may be worth – especially for those who haven't bought and sold real estate before.
Lastly, those of us in the real estate market must also understand that home ownership is not the ultimate goal for some millennials. Those that prefer to take things more slowly – including getting married and starting families – count those financial commitments among decisions they just don’t have to make right now.
See more articles pertaining to real estate in the section of articles on Columbia SC Real Estate just below Columbia SC Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
Homeowners in the Columbia SC real estate market are often motivated by the merging of two age-old cliches: “Jumping on the bandwagon” and “Strike while the iron is hot.” Homeowners thinking about selling a Columbia SC home have seen prices continuously climb during the last year as a result of a number of factors – most notably a higher demand created by a lower than usual supply of home inventory. However, one question homeowners should ask themselves if they're contemplating selling is, “Am I making the right decision.” Yes, No, Maybe?
When thinking about selling a Columbia SC home, the market is comprised of many “ups and downs.” The “ups” are the higher prices many sellers can command for their homes. The “downs” are, again, the higher prices many sellers can command for their homes. Simply put, if you sell your home for top dollar you’ll probably have to pay top dollar for a new place to live, too. We suggest consulting with real estate professionals before you test the waters.
One of the biggest challenges in your individual housing market is the difficulty for the average homeowner to know whether or not it’s at its peak. If you base your decision to sell on the perception that other homes in your market are selling, it could give you a sense of urgency. That impulsive need to act quickly or “Strike while the iron is hot” may often be popular, but not always prudent. Let’s take a look at a few tips that may give you more insight if you're considering selling a Columbia SC home.
Long Term Considerations
Because real estate transactions are in large measure emotional investments, you should carefully assess the reasons you're contemplating selling. Is it purely for financial gain? If so, as mentioned above, will you end up paying more for your next home? Do you really want or need to sell? If not, consider making your home a rental property – especially if you’re thinking of downsizing. As an alternative, if you can afford it, you can give your home to your children – what a wonderful gift for a growing family! Just don't get caught up in a market feeding frenzy and allow it to push you into making a bad decision. Just because there may be an opportunity to sell your home, that doesn't mean it’s the best decision to make right now.
The Past is Just That – the Past
One thing to remember, perhaps above all else, is what worked before when it comes to selling a Columbia SC home, doesn’t necessarily work today. The homeownership playing field and the environment in which housing operates is vastly different to what it was just 20 years ago. With employment markets having been negatively impacted and wage growth relatively stalled, it’s often a challenge for prospective purchasers to afford their mortgage. The concept of being able to “grow into a mortgage” is foreign in today’s economic climate. That – combined with the additional challenge of saving for a down payment – is one reason “Millennials” aren’t buying homes in the numbers their predecessors once did. As a result, the homeownership rate in the U.S. is at the lowest level in over 50 years. So, if you do decide to sell, remember you may be in a neighborhood that would be ideal for first-time homebuyers – but fewer, at least for now, are buying.
Don’t Rush Things
Take your time. Nothing or nobody should be able to unduly influence your decision to sell or not to sell. You likely didn’t rush into the transaction when you purchased your home, so there’s little need to rush to sell, either. Get the opinion and advice from different sources. Consult a real estate professional. Call your accountant, tax advisor or financial planner. They could be invaluable in providing information you may not have considered. Remember, because of their nature and the resulting “domino effect” they usually create, home sales aren't easily undone. So before you decide to sign the sales contract, take your time, be confident in your decision and don’t look back. If you have any hesitancy, take it as a sign you should step back and regroup. As with most things – especially emotional decisions like selling your home – let your conscience be your guide. Chances are, your instincts will tell you what’s best for you and your family.
Don’t Look Back
After you’ve given due consideration to these and other tips pertaining to selling a Columbia SC home and still decide you’re ready to sell, go for it. Shift into high gear, hire a sales professional, list your home at the most attractive price possible for a comfortable, manageable closing date – and don’t look back! As humans, we’re all guilty of second-guessing ourselves. However, if you’ve gone through the thought-provoking exercise, consulted with the right people, and feel selling is the best thing to do, you’ve done your due diligence. No second-guessing required. Own your decision and press forward.
The proverbial bottom line is this. A decision of this magnitude should be made by you and you alone. Others can provide their opinions, their expertise and their advice, but when the dust settles, you’re still the one who has to make the final decision. Once you feel confident in your research, information gathering, processing and mulling things over you may just find that the agonizing decision you wrestled with at one time now seems obvious – one way or the other.
See more articles pertaining to selling a Columbia SC home in the Columbia SC Home Selling Tips section of our site below Columbia SC Real Estate Categories in the column to your right.
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The Columbia SC mortgage refinancing market has enjoyed months of near-record low interest rates. The rates have stayed so low for so long that many borrowers assumed home mortgage interest rates will be low “forever.” And for good reason. At the first sign of rising interest rates – regardless of how slight the expected increase – the global money markets seemed to force them downward again. Even the rumblings of a Federal Reserve increase in fed funds rates did little to change the feelings of some borrowers who watched mortgage rates remain low throughout the peak home buying months.
The majority of borrowers refinanced in the past year or so while interest rates were low. Surprisingly, however, more than 10% of borrowers throughout the nation have yet to refinance. Of the ones who haven’t refinanced their mortgages, most have home loans with rates at 5% or higher. The average rate of those borrowers in the Columbia SC mortgage refinancing arena who have actually refinanced is roughly 3.5%.
For technicality’s sake, experts say almost 25% of borrowers have mortgages with rates higher than 5%, but many of those homeowners cannot refinance their loans. According to CoreLogic here are the reasons why they haven’t – or are unable to – refinance to save money. For one thing, roughly half of the existing mortgages with higher rates that haven’t been refinanced are delinquent or have experienced a delinquency during the loan period. Because of that, most lenders consider the risk of granting them a new mortgage – even at a lower interest rate – too high.
In addition, existing mortgages held as part of private-label securities portfolios are generally more difficult to refinance than government-backed loans. As a result of the changes made in the aftermath of the housing crash of nearly a decade ago, the U.S. government offered refinance programs designed to be more streamlined. Those programs included a large number of borrowers who were underwater at the time – borrowers who owed more on their homes than they were worth. Again, to be technical the resulting share of borrowers not taking advantage of the interest savings is roughly 13%. Why haven’t that 13% refinanced when they could have? Let’s take a quick look.
The reluctance of the rest of the 13% of borrowers that haven’t refinanced is likely due to the remaining balance on their higher-rate mortgages. A CoreLogic spokesperson speculated that “small balances may not be worth refinancing… the savings would be too low.” And the speculation is probably spot on. Consider this: CoreLogic found that borrowers eligible to refinance with old rates above 7% have an average remaining mortgage balance of only $53,000. Borrowers with rates between 5%-7% had roughly $100,000 remaining on their principal balance. With the closing costs involved in a refinance – even with an existing lender – the question those borrowers need to ask themselves is, “Would refinancing a relatively low balance save me any money?” Closing costs for a refinance can often run 2%-3% of the loan amount, depending on whether points are involved. Let’s take a look and see if the savings are worth the effort.
The quick answer is, it depends on the original mortgage amount. For example, a borrower with an original loan balance of $400,000 can reduce his monthly mortgage payment substantially since the original payment was much higher. If that borrower is refinancing a $100,000 remaining balance, the closing costs are going to be comparatively lower. Conversely, a borrower with an original loan amount of $150,000 who currently owes $75,000 won't enjoy a significant savings on the remaining amount of interest – especially after factoring in the closing costs. In addition, many borrowers simply don't like the idea of extending the term of their loan. A borrower who’s 12 years into an original 15-year mortgage may just want to pay it off as planned instead of recasting the loan term to another 15-year term by refinancing.
As usual, each case is different, so it’s a good idea to talk to a Columbia SC mortgage refinancing professional. Here’s why:
Your mortgage lender can provide you with the remaining balance on your existing mortgage at the original interest rate. In turn, using the original amortization schedule – updated to reflect any principal only payments – the lender can estimate the amount of interest you’ll pay over the remaining life of the loan. Naturally, the calculation is based on the assumption that you won’t pay off or otherwise alter the loan's principle balance. Then, using current interest rates, the lender will determine what a typical refinance will cost in terms of monthly payment versus your existing mortgage payment. The interest portion of the payment when amortized over the new term will give the lender the total amount of interest you’d pay if you refinanced – again, barring any future changes to the principal amount. By simply comparing those two amounts, the lender can determine the interest cost savings. However, that’s not the end of the analysis. As mentioned, the costs of closing the loan have to be figured into the equation to determine the net savings, if any.
Closing costs, though not as high as on a new loan origination to purchase a home, can still be substantial. Though it may seem unnecessary, the lender is required to ensure the home's value is sufficient for the loan amount to be granted. Therefore, either a new appraisal (or, in some cases, an update to the existing appraisal) is required. In addition, you can expect to pay a loan origination fee and an updated title search fee. A new credit report and normal court recording costs will also be required. You may have to pay for an updated termite inspection and a home inspection. After all those costs are taken into consideration, then and only then can your Columbia SC mortgage refinancing lender give you an estimate on the cost savings to refinance and an opinion as to whether it makes financial sense. From there, only you can make the decision.
You can find more articles pertaining to Columbia SC mortgage refinancing and the overall mortgage market in the Columbia SC Mortgage Info section of our site below Columbia SC Real Estate Categories in the column to your right.
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