5 Reasons to Sell Your Condo the Spring!

Here are 5 compelling reasons listing your condo for sale this spring makes sense.

1. Demand Is Strong

The latest Buyer Traffic Index from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home or condo.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers.

Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners are granted the freedom to move.

Many homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you to decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Buyers know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 47 days.

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

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has created a buyer’s market. This means that if you are planning on selling a starter or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 4.6% over the next year. 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.

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?

If you’re ready to find out what your condo is worth and what you need to do to get it sold, contact us, the condo specialists at 734-761-3060 or info@condohotline.com today!

Get Prepared to Spring Ahead of the Condo Competition!

Spring brings two things: more buyers & more sellers! Get prepared now to stand out in the crowd!

Whether you plan on buying or selling an Ann Arbor Condo, contact the real estate specialists with The Bouma Group to get the answers you need! 888-581-6923 or info@bouma.com.

No Worries… Condo Prices Coming in for a SOFT Landing

Condo prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest condo values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.

The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).

Today’s market is totally different. Mortgage standards are tighter than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will come to market. The Mortgage Bankers’ Association just announced that foreclosures are lower today than at any time since 1996.

Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:

As we can see, home price appreciation is softening as more inventory comes to market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers of 3.6% annually.

Bottom Line

Home and condo prices are leveling off. Long term, that is a good thing for the housing market. It’s especially good for condo buyers! Contact us today at 888-581-6923 to learn more about the Ann Arbor Condo market and your purchasing options!

 

Condo Buying Terminology: A Cheat Sheet

Buying a condo shouldn’t be rocket science. You find the perfect place, make an offer to the seller, pay a couple of fees, and bam! You just bought a home.

However, buying a condo actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Are Realtors and real estate agents even speaking English anymore?

To help you out, we’ve come up with a cheat sheet so you’ll know exactly what we are talking about when we explain the home-buying process.

Pre-Approval

If you meet with an agent before you begin looking for condos, they’ll likely recommend you get pre-approved for a mortgage. Mortgage pre-approval is the best first step to buying a condo, because it essentially sets your budget for you.

Pre-approval involves sitting down with a lender to discuss your financial portfolio. This includes your credit score, borrowing history, outstanding debts, annual income, and any assets you have. After reviewing all of this, the lender gives you an exact number: that’s how much the bank is willing to lend you.

Not only is your budget set, sellers will take you more seriously because they know you can qualify for enough loan to support your offer.

Earnest Money

Defined loosely, earnest money is the money you pay to confirm a contract. When you’re buying a condo, this is essentially a good faith deposit. It lets the seller know that you’re serious—serious enough to go ahead and put money down.

This money sits in a joint account (called an “escrow” account) held by both the buyer and seller. When the purchase is finalized, the earnest money goes toward the buyer’s down payment.

Due Diligence

Due diligence refers to the period of time after the seller has accepted a buyer’s offer. This is the time when you as the buyer can schedule inspections, confirm financing, and make sure that buying this unit is in your best interest.

Now’s the time to do some research! Have it inspected by a professional to ensure nothing is wrong with it, consult public records to learn more about its past home ownership, as well as any environmental issues in the neighborhood, and work with your lender to make sure this is a good financial decision.

So…. Are Realtors and Agents the Same Thing?

Yes and no. The primary difference between REALTOR®s and real estate agents is the National Association of Realtors, also known as the NAR. The NAR is a professional organization of real estate brokers that abides by a specific Code of Ethics that all REALTOR®s are required to follow.

A real estate agent works under a brokerage, but is not necessarily a licensed NAR member.

Let’s Find Your Dream Condo Together

We’ll never hide behind big words when it comes to helping you find the place that’s right for you.

Give us a call today at 734-761-3060 or email info@condohotline.com to begin your home-buying journey.

 

Ann Arbor Condo Report Update – October 2018

Ann Arbor Condo Buyers get to Experience the Best of Both Worlds

Luckily for Ann Arbor condo buyers, this October has seen almost a doubling in the amount of new listings entered and sale prices have decreased compared to the previous October. The increase in inventory is a significant 75.7%, from 37 units entered October 2017 to 65 entered this past month. Listing prices have also risen, $337,260 versus $371,708 now, which is a 10.2% increase. But like stated earlier, average selling prices have decreased, $265,636 this past month compared to $273,483 last year, this is only a small difference though. A total of 35 units were sold this past month, which is a 14.6% decline compared to the 41 sold the previous October. The average days on the market has stayed consistent with 26 days. Yearly statistics are not great for sellers, as there has been more listings entered and sale prices are lower than listing prices on average. So far this year, 694 units have been entered, which is 7.1% more than the 648 units that had been entered at this time in 2017. The average listing price has seen a considerable increase of 18.6%, from $294,766 to $349,448. Currently the ASP for this year is $287,748, which is a 13.1% rise from last year’s $254,447; but still lower than the ALP. In total, 461 condominiums in Ann Arbor have sold in 2018, versus the 535 units in the year prior, a 13.8% decline.

The condo specialists with The Bouma Group are capable of helping you with any and all of your condo needs, contact us at 888-581-6923 or email info@condohotline.com. Stay tuned for more information about the Ann Arbor condo market and surrounding areas!

Pre-Approval: Your 1st Step in Buying a Condo