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It's March Madness!

By Chris Petry

March Madness is here! March Madness is here! Wait a second, what is March Madness anyway? In all actuality, it’s the term for a specific NCAA Division 1 men’s basketball tournament, originating back to 1939. The single-elimination tournament is played by 68 teams, mostly during the month of March. Hence the name.
 
Now, let’s talk about another kind of March Madness. Of course, I speak of the pickup in the real estate market that happens every Spring. Maybe it’s the first taste of warm weather, the chirping birds, the budding flowers or the feeling of being “caught up” financially after the fiscal hit from the holidays, but people seem a lot more incentivized to buy and sell by the time March comes to a close. This year might be the best Spring for home sales in sometime. According to Zillow, the number of Spring homes for sale is at its highest in five years. More than 15% higher than last year’s pool.


 
If there’s one thing preventing that number from being even higher, it’s probably the uncertainty around interest rates. In 2024, the Federal Reserve made three cuts to rates but recent comments have implied that rate increases will be fewer or in smaller increments this year. That leaves the average mortgage interest rate at around 6.6% as of this writing. Which, as it’s been said numerous times, is higher than rates leading into 2020 but still lower than historical averages.
 
With all that in mind, it’s safe to assume that projections of increased sales based on the uptick in inventory are sure to hold. What about the rest of the year? Growth, albeit at a slower place. After a major market shakeup, like the one we had in 2020, it can take quite a while for things to reach some semblance of normalcy. We are headed in the right direction; we just have a bit longer to get there.


 
Still, if you’re planning on buying or selling in the coming weeks, well, you won’t be the only one! March Madness, as alluded to earlier, doesn’t just live on the court. Home sellers will be taking advantage of the break in the weather to tidy up and increase their home’s curb appeal. Buyers will be antsy to get moved and moved in before summer vacation and the beginning of a brand-new school year. Spring has a lot of appeal to both buyer and seller. There’s no denying it. March Madness in the real estate market, begins now.
 
If you’re ready to list your home or you’re in the market for a home, perhaps even your first, the first step would be to reach out to an agent from your local branch of Berkshire Hathaway HomeServices The Preferred Realty. If one thing’s for sure, they have the training, tools and know-how to help guide you through this and any other time of year’s market. So, what are YOU waiting for?


 

Everyone's Talking About Homeowner.ai

By Chris Petry

Another day, another app. You’ll love this one, though. We promise! It’s called Homeowner.ai and it’s an amazing organization tool that allows homeowners quick convenient access to all their important home documentation, including warranties, service receipts, appliance warranties, closing documents and more in the MySolutions.ai hub. Additionally, it provides a comprehensive list of contractors and service technicians and their contact information. You can even schedule a servicer appointment directly through the app.


 
How does one get the Homeowner.ai app? When you seek the professional guidance of a Berkshire Hathaway HomeServices The Preferred or Stouffer Realty agent, your agent will send you a personalized QR code for registration or register you on your behalf. For homebuyers and sellers, this means you’ll always have your REALTOR’s info right at hand in case you have any future inquiries or real estate-related needs. If you’re the REALTOR, it’s a great way to stay engaged with your clients and check in from time to time.
 
One of the great advantages of the app to home sellers, is they can learn what their home is worth in real time. A resource that’s become quite valuable over the last few years with all the fluctuations in the housing market and economy overall.
 
The app and each user’s individual hub provides a wealth of resources that’s unparalleled in the world of home service apps. “No matter who you are, client, REALTOR or vendor, the MySolutions.ai hub is the place to go,” says Vince Gemma, Sales Director of My Preferred Insurance and one of the key architects of the app. “Best of all, it’s absolutely free of charge.


 
Indeed, for buyers, sellers and their agents, access to the app as well as use of the services found within is 100% free of charge. You might be asking what vendors or contractors you’ll find within the app and how they end up on the list as opposed to others. Vendors are chosen based on their service record and can be removed from the list should standards become a concern with clients of the app.
 
So, are you ready to download the app and get started? If you’re REALTOR hasn’t already shared the app with you, be sure to let them know you’re interested. You’ll be glad you did!

Real Estate Fun Facts!

By Chris Petry

Every year at Berkshire Hathaway HomeServices The Preferred Realty, we host an Awards Ceremony to honor the achievements of our hardworking salespersons. Of course, that means a lot of hard work on our end, staging, hosting and pulling off the event. Last year we had the idea to test our agents’ knowledge about matters of real estate and film it for both educational purposes and entertainment. It was such a huge success with the crowd that we decided to repeat that particular pre-recorded segment, albeit with brand new questions. So, I spent several days bouncing around the Google, reading article after article, listening to expert after expert to structure my potential questions. Some of the Real Estate fun facts I found most interesting were… well, I guess you’ll need to read on..


 
In Japan, most homes are demolished and/or rebuilt every 30 years. Yes, it’s true. Conventional wisdom in the West is that homes are an appreciating asset. Which is to say they increase in value over time, assuming the owners maintain the upkeep and occasionally make updates to their investment. Not in Japan, however. The Northeast Asian Island country, the 11th most populous country in the world, views homes as a depreciating asset and often rebuilds after 20-30 years. Commercial properties and houses of worship are generally excluded from single score demolition. Why are rebuilds so frequent? Well, it appears the answer is mostly cultural. Japanese society has mainly embraced modernity and doesn’t tend to attach much sentimental meaning to the homes themselves.


 
The US state with the highest median sales price is Hawaii. While most people would’ve probably assumed California or New York, stories of their overpriced and undersized dwellings routinely filtering in to the news cycle, the highest median home sale prices can be found in the tropical archipelago of Hawaii. So why is the Pacific Paradise so pricey? Two reasons: one, desirability. Simple as that. Lots of folks want to visit or move to Hawaii. That demand drives up prices. The other, lesser discussed, is regulations. For that, I’ll refer you to this article which breaks down all the arguments for the position. The most glaring statistic I noticed within was that it takes an average of 10 years for homebuilders to turn a vacant piece of land into new housing because of the various codes and enforcement. Not sure if the regulations are good or bad but the extended gestation period can’t be good for inventory.


 
Real estate agents were once referred to as “curbstoners.” Curbstoning is a slightly archaic term used to refer to all unlicensed salespeople. At the turn of the twentieth century, believe it or not, that included REALTORS. All I can say is, we’re a lot better off as buyers and sellers knowing that the individuals representing us in today’s real estate transactions require hours of pre-licensing education as well as routine continuing education.


 
1/3 of American homes are Pet-less. 32.1% of all US homes feature a feline companion. 45.5% of homes own a dog. I’m sure there’s some crossover in there. The most startling statistic of all? About 30% of homes have neither. Nor do they have birds, fish, reptiles or anything else. That means that just under 1/3 of all US homes have no pets at all. Meow that’s very interesting.


 
The White House has 132 rooms. 35 of which are bathrooms. Now look, I’m no mathematician but if you have 132 rooms, that means that every 3rd room or so in the place is a bathroom. This led me to look up statistics pertaining to the average number of bathrooms in residential homes and, sure enough, the number has actually increased from 2.2 in 1987 to 2.8 in 2020. Current stats indicate that there are, on average, three bedrooms in American households. So, the number of bathrooms at the seat of our government is really what one would expect based on the number of rooms. Are we getting a glimpse of yet another new normal? One where every bedroom gets its own bath? All I can say is, wow, I wish that was a thing when my home was constructed.


 
Brass door knobs are the most germ-free option. Now why do microbiologists get as jazzed up over brass door knobs as most people do Taco Tuesdays? Well, that’s because of a natural chemical process called the Oligodynamic Effect, wherein brass self-sterilizes. Hold the Lysol wipes, Ethel!


 
25% of homeowners with a two-car garage never park in it.  It appears ¼ of all homeowners with a two-car garage are electing to use them for storage or workshops as opposed to weather-protectant car parks. Which begs the question, do these people just enjoy brushing snow off their car that much?


 
Buckingham Palace is the most expensive piece of residential real estate in the world. Well, I guess this one’s not really a shocker. After all, this piece from MSN lists the total value of the top 10 residential properties owned by the royal family as $8.1 billion. On its own, Buckingham Palace comes in around $1.5 billion. Spare some change for my kitchen cabinet remodel, Your Majesty?


 
Black doors bring the value. Believe it or not, homes with a black front door, on average, sell for around $6,000 above their more colorful competitors. I knew I was right when I painted everything in my house black. If a black door alone can command $6,000, my interpretation of what Robert Smith’s private residence must look like is going to fetch some massive doe on the resale. Right? Tell me I’m right.


 
The highest sale price for a home in the USA last year was $210 million. Where was this massive sale? Malibu, California. Okay, the British Royalty already turned me down. Can ye spare some change for my kitchen cabinet remodel Oh, Majestic Malibuite?

The Feds Lower the Rates

By Chris Petry

On Wednesday, September 18th, the Federal Reserve initiated their first cut since March of 2020, slashing rates by a half percentage point. Of course, there were critics on both sides of the debate, some urging a higher percentage cut and others indicating they’d prefer the security of more gradual reductions in rates. One thing is for sure, the majority of American consumers, budgets stretched by two years of unprecedented inflation, generally welcomed news of the long-gestating rate slash.


 
So, what does this decision mean for homeowners? What does it mean for those who have delayed purchasing a home because of the two-fold obstacle of increased home prices and interest rates at levels unseen in the last 20 years? At this moment, most economists agree it won’t move the needle much but it’s much-needed step in the right direction. In fact, most of those economists are predicting another rate decrease or two by the end of the 4th quarter. That would likely go a long way in improving optimism in the marketplace, even if the rates aren’t drastic enough to greatly chip away at high interest debt like credit cards.
 
While we shouldn’t get too far ahead of ourselves, we also shouldn’t discount the rate of progress. Now might be the perfect time to begin laying the foundation of your real estate dreams. It’s worth repeating, there’s never been a time in history where conditions were perfect. It’s also likely that no one born after World War II encountered the kind of destabilizing society-altering event that was Covid-19. As it’s been said many times as we approach the 5th year since the outbreak of the pandemic, it was all new terrain. The Federal Reserve, like every other institution private or public, was faced with a once-in-a-century event that necessitated actions that were unlikely to have occurred otherwise. This is the real start of the long correction.
 
What should you do to prepare to sell your home? As Sir Winston Churchill famously quipped, “Keep calm and carry on.” If you’ve already employed a REALTOR to assist you in selling your home, you’re already on the right footing. A great REALTOR will create a dynamic marketing campaign to assure maximum exposure for your property and guide you through the listing and selling process. As rates creep down, competition for your home will likely increase.


 
What should you do to prepare to buy a home? Take advantage of rates increases to slash high interest debt. Though as stated above, we’re a bit of a ways off from rate increases that will add immediately visible interest savings. You might also begin a rapport with a licensed sales professional who can provide the kind of guidance, support and advice you may need, particularly if you’re a first-time buyer or haven’t bought a home in a very long time. A REALTOR will also get more homes in front of you, increasing your likelihood of finding the home that meets your individual needs.
 
We’ll comment on further rates cuts as they happen and do our best to explain the implications for the real estate market. Right now, there’s still a level of ambiguity around the extent of future cuts or the timetable for when those may happen. However, if the Fed’s decision earlier in the week is any indication of what’s around the corner, it looks like we may finally be headed back toward a more stable and recognizable housing market.
 

Are Small Homes Still Trending?

By Chris Petry

Even before Covid, and the resulting economic crisis, micro homes were everywhere. Whether that’s attributable to growing economic concerns like inflation and the cost of housing, a greater awareness of humanity’s carbon footprint, or the wholesale embrace of architectural minimalism, miniscule homes have received a lot of coverage in recent years.
 


According to this statistic from January, 2023 by Motley Fool, the average size of a single-family home in America sits at about 2,014 sq ft. That number is highly variable depending on where you live. Homeowners in the Rural South or Midwest might enjoy square footage twice that of the average New Yorker, and for far less money. So, it’s no surprise that the small home trend seems to have the most traction in and around major metropolitan areas, where space is limited and mortgage rates and monthly rent fees are higher.


 
So why have dimensions for new home constructions actually increased by 150% since 1980, despite the average household having fewer inhabitants? There are a number of theories that attempt to explain that. One, it’s a uniquely American trend. Because homes in the good ol’ US of A are viewed primarily as financial assets, homeowners logically conclude that a larger home has more resale value. Another explanation is that the relative cheapness and availability of building materials resulted in a, “we have it, why not use it” mentality in the home construction business. Or perhaps, consumers simply wanted larger homes and the ease of access to those affordable materials drove the demand.
 
So, if home sizes have actually been increasing, what’s with all the attention on micro homes in the news over the last several years? As we discussed in the first paragraph, homebuying attitudes have changed. Homes do in fact cost more. More to purchase and more to fix. So, it stands to reason that a smaller home is more cost effective.  There’s also the environmental impact, something society as a whole has become more aware of. Just take a look at the comments section on any article discussing Taylor Swift’s private jet, John Travolta’s home airport hangar, or Tom Selleck’s avocado farm. Larger properties use more water and energy and require, upfront, more materials to construct. As result, their environmental footprint is much greater.


 
There’s also no denying minimalism has been having a moment. Visit even a 2.5-million-dollar McMansion these days and you’ll notice one thing: nobody has stuff anymore. Sure, there’s a potted plant here, a Jackson Pollock knockoff there but in general, most people seem to have become comfortable possessing fewer material possessions. Less stuff means you need less space. I’ve heard there’s a certain freedom in disavowing materialism but if that freedom means staring at a blank white wall sans my record collection, I’ll stay comfortably shackled!


 
While this humble author eschews contemporary trends, others do not. Article after article discussing the rise, affordability, and practicality of almost puzzlingly-small homes is filled with “hacks” that new micro homeowners can implement to make the most of their downsized dwellings. These include taking advantage of the entire vertical perimeter of the home by placing the bedroom in a loft area and installing shelves and cabinets only accessible by a fixed or sliding ladder to compensate for the loss of floor space. ExtraSpace.com lists a number of innovative solutions, including turning stairs into pull out drawers, creating storage under seating areas, opting for foldout furniture, and wall mounting light fixtures. In fact, and this comes to our last reason as to why micro homes have been trending, there seems to be an almost friendly competition at play here. Who can create the most visually stunning, but also pragmatic, living quarters with the least amount of space? If that’s what you’re going for, then by all means. Worst case scenario? You’ve got yourself a fairly attractive Airbnb to rent out.  
 
While it’s unlikely that the vast majority of us will be living in a home purchased on Amazon.com anytime soon, or repurposing our tool shed into quarters fitting of a king, you never know what the future holds. If you’re looking for a new home, of any size, be sure to reach out to an agent from your local branch of Berkshire Hathaway HomeServices The Preferred Realty.
 

Investment Homes: Should I Buy One?

By Chris Petry

Let’s get the big question out of the way first: just what is an investment property? Simply put, investment properties are properties purchased or otherwise acquired with the sole intention of generating income. That could mean they intend to flip it, rent it out, or repurpose it for business purposes. Despite the fact that, here we go again, interest rates are a little higher than they were a few years ago, an investment property can still be a lucrative venture. It’s not for the faint of heart. Up front, it can be a great expense to the individual investor. You need to make sure that whatever you spend to purchase and renovate a home for resale, can be recouped. Better yet, you want to generate new income. After all, why take the risk of a mortgage or a loss of savings if you’re not going to see a return on that investment?


 
This recent article from RocketMortgage.com, suggests a concept called the 1% rule. They lay out an example of a home investor who purchases a property for $300,000. At that price, the investor would need to set rent at around $3,000 per month to meet the standard investment goal of a 1% return. That number, of course, assumes the seller rents the property without further investment. If they need to make repairs, the cost of said repairs should be added to the base number before dividing. For example: the purchase price is $250,000. You do $20,000 in renovations. Your investment is now at $270,000. To meet the 1% investment goal, divide the 1% from the $270,000. Rent would then be set at $2,700.


 
For flippers, Bankrate.com breaks down a concept called the 70% rule. Here they suggest that the purchase price of your investment property should not exceed 70% of the ARV, or after-repair value of the home. Here’s an example: you find a property you’re interested in buying. You speak to an agent from Berkshire Hathaway HomeServices The Preferred Realty who does a comparative market analysis and determines that similar homes are selling for around $200,000. Now, 70% of $200,000 is $140,000. So, you should pay no more than $140,000 on the property to return a profit. Suppose this home, like the one we talked about above, needs $20,000 in repairs before it goes on the market. You need to subtract that from the $140,000 as well. So now, you should make an offer for no more than $120,000.


 
Investment properties can be highly beneficial to your financial well-being by diversifying your investment portfolio and providing supplemental income for retirement and savings accounts, college tuition, travel, hobbies and more. Just don’t rush in to it without a proper plan in place. Reference the above rules to make sure you’re not only receiving a return but a surplus on your investment. Of course, all situations are different and figures may vary based on your marketplace, as well as nation and local real estate trends. A sit down with a professional REALTOR, loan representative, or financial counselor may be beneficial to better understand the ins and outs of real property investment.

What Will the Market Look Like Summer 2024

By Chris Petry


There’s been no shortage of news coverage regarding the health of the real estate market over the last two years. For a while, all eyes were focused on the Federal Reserve’s post-pandemic interest hikes. Obviously, a rate increase of that degree was sure to stoke headlines and generate concern among potential buyers. We, and to be fair, a certain contingency of the media tried to provide historical context to the rate increases, to abate fears. Yes, the rates are higher than they were five years ago but on par for where things were at the dawn of the millennium.


 
Interest rates were not the only cause for concern in the market. Home prices were at historic highs. Now, things seem to be settling down a bit. Pricing now is reflective of lower-than-average inventory, which is the direct result of increased mortgage rates. Which is to say, sellers have been hesitant to sell their current homes because of the need to take on a higher interest loan for the replacement.
 


So, what will real estate look like in Summer 2024? As you know, there’s always an uptick in home sales in the Spring and Early Summer. Additionally, while the Fed opted to hold interest rates earlier this week, Chair of the Federal Reserve, Jerome Powell still believes rate cuts are on the horizon. Seeing as rates peaked around eight percent this past October, that’s welcome news for future homebuyers.
 
We’ve all been through a lot in the last four years! The good news is, things do seem to be moving in the right direction. Economists are feeling much better about the state of the economy than they were two years ago. With jobs added, jobs created, and the prices of consumer goods finally plateauing, there’s a new air of optimism out there. We could all use a little more optimism!  
 
If you’ve been considering a move, down-sizing, upsizing, or purchasing your very first home, now’s the time to start laying the foundation for your real estate goals. Make no mistake about it, a new golden era of real estate is just around the corner! Speak to an agent from your local branch of Berkshire Hathaway HomeServices The Preferred and Stouffer Realty, to get things started today.

Why Spring is the Best Time to Buy & The Best Time to Sell

By Chris Petry

Ah… Springtime. It’s a magical time, when the flowers bloom, the days grow both longer and warmer and the birds, bees, leaves and trees all awaken from their frozen slumber. Joining them, typically, is the housing market. After months of bitter cold, and with time to financially recover from the excesses of the holiday season, buyers and sellers alike emerge with a renewed enthusiasm to pursue their real estate goals.


 
NAR.com reports that home sales increased by nearly 10% in February this year. The largest increase in sales in well over a year. Why? Inventory is increasing. Why is inventory increasing? Well, there a couple reasons that might explain the bump. First, it’s worth noting that home interest rates seem to have plateaued. Which is to say, while they’re still higher than they were five years ago, they don’t appear to be in any danger of increasing by that all that much as the year wears on. Since the current average interest rate has held at around 7% over the last several months, it more likely implies that rates will not be climbing OR dropping exponentially in the near future. That reality is finally setting in with sellers who have delayed their real estate plans, waiting for more “normalcy” in the market. So, they’re listing again. Buyers are also beginning to adjust to the current reality of the market and preparing to implement steps to achieve the dream of homeownership. After all, refinancing later down the road, is always an option.


 
There’s also the undeniable fact that the warmer weather itself is motivating for people. People are less likely to bail on their morning or evening run. They’ll spend more time engaging with other human beings and find themselves less likely to press “I’m still here” when their streaming app decides to check in after spending four hours contorted like a pretzel on the living room couch. They’ll occupy themselves with sporting events, fishing and kayaking excursions, camping, birdwatching and swimming. In other words, things that are better for both body and mind. When people feel healthy, happy, driven and productive, they’re more likely to tackle things they’ve been putting off. You know, like preparing their home for sale or seriously considering a path to homeownership.


 
Finally, because of the historical reliability of an uptick in home listings and sales in the Spring season, people are likely more incentivized to engage with the market. In other words, since Spring is perceived as the optimal time to buy or sell a home, buyers and sellers alike will become more active in the Spring season.
 
Whether you’re buying or selling, Berkshire Hathaway HomeServices The Preferred and Stouffer Realty have your back. Our agents are among the best trained, market savvy, and technologically-equipped in the business. Reach out to your local branch of Berkshire Hathaway HomeServices The Preferred or Stouffer Realty today, to get started.
 
 

Should We Buy, Sell, Rent...

By Chris Petry

One of my favorite YouTube shows is Good Mythical Morning, starring Rhett McLaughlin and Lincoln “Link” Neal. If you’re not familiar with said comedy duo or the show, it’s kind of like an online variety show, most famous for their often-times absurd food challenges, sometimes featuring A-list celebrity guests. One of the reoccurring bits is the Will It challenge, wherein they attempt to see if unlikely ingredients can be inserted into rather typical food. For example, crickets, will it hotdog? For further clarification, can you make a hotdog out of crickets appetizing? Probably not, but Rhett and Link will do the tasting so we don’t have to.
 
Today, we’re going to play a little game of Will It with real estate. Okay, not quite. The basic structure of their particular challenge doesn’t quite work in this context so we’re going to rename it, Should I? Should I do this or should I do that? For answers to those burning questions, read on ahead.
 
 
 
Should I rent or Should I buy?
Well, this is a complicated question and there are a lot of variables to consider when posing it. Being honest, there are numerous pluses and minuses to either scenario. It really just depends on where you’re at in your life personally and financially and whether or not it would make life more or less convenient for your particular situation.
 
Are you tired of rent increases? Well, then owning a home might be the way. Most mortgages are fixed, which means your monthly payment will remain largely unchanged for the life of the loan. Of course, escrowed items such as taxes and insurance can marginally affect the monthly number from year to year but for the most part, what you pay will be consistent time and time again. While controlled rent apartments do exist, they’re relatively rare. It’s more likely you’ll see an increase should you renew your lease. Buying a home is a way around that unpredictability.
 
Do you like mowing the lawn? How about plumbing? Ever replaced a breaker or recarpeted the stairs? Well, when you own a home, that’s all on you. Of course, you can hire a licensed professional to do the work but the financial burden rests firmly on your shoulders. With a rental, these services (within reason) are usually provided by the owner.
 
There are scenarios of homeownership where basic maintenance, landscaping, and upkeep may be covered by an outside party such as membership in an HOA. HOAs, or Home Ownership Associations, allow you to be part of a community where you hold the deed of ownership but pay monthly or annual fees to relinquish the responsibility for say, shoveling your sidewalk in wintertime. While that may free up some time, most HOAs will require periodic reviews of your property that may result in warnings or even fines if something isn’t up to par. So, you’ll need to be more diligent with any repairs or cosmetic defects that are not covered under the contract with your HOA.

If you like the freedom to make repairs and upgrades to your property without the consent of an owner or organization, private homeownership might be for you. If you’d prefer someone else be responsible for said work, renting might be for you. If a hybrid situation seems like a comfortable middle ground to pursue, owning but belonging to a homeowner’s association might be a consideration.
 
One of the most glaring impediments to homeownership is affordability. However, there are a number of special loans you may qualify for. Are you a first-time homebuyer? There’s a special loan for that. Are you a veteran? There’s a special loan for that. Check with a real estate professional to see what you may qualify for. If you’re more comfortable with a rental situation for the time being, then by all means go for it. However, if you’d like a little more freedom, stability, and the opportunity to create personal wealth, few things beat homeownership.


 
Should I Sell My Home?
In general, yes. There are a few things to consider first. Why are you thinking about selling? Want to down-size, upsize, right-size? Go for it. Just be cognizant of what’s going on in the market, what options are available to you, and what things may need to be addressed about your home, finances, or future real estate needs first. It’s always a good idea to consult a real estate professional to review your personal situation and request a home value evaluation before making a final decision.
 
If you’re looking for a more pointed answer, such as “should I sell right now,” the answer is still yes. You want to know why? We can wait forever for the most optimal conditions and they may never come. If you’re concerned by the much-publicized “high” interest rates, consider this: these rates are, historically, nowhere near as high as rates can go. Rates have been a lot higher, even in the last 40 years. If rates decline, and they likely will, you can always refinance your loan later.
 
If selling your home is preventing you from a major relocation, job, or family opportunity, it might be worth comparing the risks of holding out versus selling and determining which risk is most worth taking in the long run.


 
Should I Remodel?
Remodeling is never a bad idea if you want to potentially increase the selling value of your home. Personally, I feel remodeling projects are a good thing whether or not you plan to resell in the near future. A fresh coat of paint, a refinished hardwood floor, new carpeting, new cabinetry, or built-in shelving for an awe-inspiring book collection, can be real mood-boosters. However, keep in mind that projects can get pricey and time consuming. If you plan to do work yourself, realize it’s a commitment. If you plan to hire someone, you’ll likely be spending more money but you’ll have the peace of mind in knowing that the work is being completed by an insured professional.


 
Should I Use a REALTOR?
You’re probably familiar with the term FSBO, or For Sale by Owner. There have certainly been successful sales over the years that utilized that model. However, having a licensed and well-trained real estate professional in your corner is NEVER a bad idea. Why? It’s their job! They’ve seen it all. Every scenario you can imagine. They are aware of what’s going on in the market and they have access to the most up-to-date tools and resources to market and sell your home. Plus, a REALTOR and, by extension, their brokerage has a certain responsibility. In the unlikely scenario there’s a problem, they’re in your corner to help right the ship. If you’re representing yourself in a real estate transaction, all the risk and liability are your own. Finally, the time commitment and expertise required for a proper negotiation, may be outside your capability. Why not entrust the paper work, back and forth, and communication with an agent? It will save you a lot of time and potential headache.


 
Should I Choose a Berkshire Hathaway HomeServices The Preferred Realty Agent?
Absolutely. Not only is Berkshire Hathaway HomeServices The Preferred Realty among the most entrusted and nationally-recognized brands, its REALTORS are among the most educated, tech and marketing savvy, and accomplished in the business. If you’re buying or selling a home, you want the best representation you can get.

Thinking About a Career in Real Estate?

By Chris Petry
 
Have you ever considered a career in real estate? Maybe you’re a service-oriented person and really enjoy the opportunity to both work with and help people achieve their goals. Perhaps you are someone who would simply appreciate more flexibility in your life and career. If any of this sounds like you, you will definitely want to read the interview below. It’s a fantastic inside look at the day-in-day-out experience of a working REALTOR in today’s market. We explore topics such as work ethic, personality traits, and the benefit of setting realistic goals to grow and succeed in a fiercely competitive business. Let’s begin, shall we?


Julie Rost was recently ranked as the top agent in our local network of Berkshire Hathaway HomeServices The Preferred and Stouffer Realty, serving Western, Pennsylvania and Northeastern, Ohio. Julie is based out of our City of Pittsburgh Regional Office, on the corner of Forbes and Murray, in the Squirrel Hill neighborhood of Pittsburgh. She is ranked as one of the top REALTORS in the West Penn Multilist and has consistently obtained Chairman’s Circle designation, or the highest ranked category of agents nationally. In other words, if you’re eyeing a career in real estate, there’s no better role model for success than Julie Rost.
 
While there’s no set path that prospective REALTORS have to follow to enter the business, other than passing two pre-licensing courses and state and federal exams, Julie was clear that newbies should fully understand the commitments and expectations of salespersons. “My Mom was a REALTOR,” she says. “So I’ve always been somewhat cognizant of what it took to succeed in the business. A lot of that comes down to the management of expectations, a willingness to learn and grow, energy, communication, and investing in your business.”
 
So, what does the day-in-the-life of a REALTOR truly look like? Julie laughs before revealing, “Whatever I think my day will look like at the beginning of it, is not necessarily what it WILL look like as the day goes on. Being a successful REALTOR means realizing that everything is constantly evolving. You just have to take daily efforts to be pro-active, so you can you meet the needs of your clients. Open-mindedness, availability, and flexibility is crucial.”
 
There’s that word. “Flexibility.” Is it true that one of the reasons people choose a career in real estate is the suggestion of a more flexible work schedule? Julie suggests that the flexibility is more about how flexible you can be with your clients. “There’s a perception and there’s reality,” she notes. “We think we get to make our own schedules but we’re ultimately at the service of our clients and their schedules. You have to be willing to accommodate them. That’s what’s most important.”
 
So, why should people choose a career in real estate? A commitment to service. If you’re committed to helping people buy and sell their homes and you’re willing to prioritize their goals and provide the necessary guidance, one can achieve untold levels of success. Julie Rost success. Of course, there are many elements to consider. For as much as clients rely on you for your expertise and support, every good real estate agent has a support system of their own.
 
Julie outlined four sticking points that were very close to her when choosing to pursue a career in real estate. Which, of course, first includes selecting a brokerage and a branch location that fits your values and needs. “I chose to work in the office I work in because of the strength of the Sales Manager. She really made me feel supported, that she had my back. I also wanted to work with a brokerage that had a strong national brand and market presence. A brokerage that provided extensive training and education. My final consideration of where to base my business, was the physical location of the sales office. I wanted to work from a place where I felt the motivation and desire to grow my business. Somewhere I knew well. The city, Squirrel Hill, was my choice.”
 
Newcomers to the real estate industry may overlook some of those details but they’re very salient points. When asked, “What would be your advice for someone just getting started in the business,” she reiterated the importance of the above. “Make sure those things line up with your values and needs. Being a successful REALTOR is not all about showing houses. That’s actually a minor part of it.”

So it seems, there’s a lot to consider when choosing a career in real estate. Just don’t let that be a deterrent! As Julie said above, the business is always changing. That means,  your personal business as well as the industry. Staying aware of that and implementing change is necessary for long term success. Julie herself has made major changes to her business model over the years. After working nearly 15 years as a solo agent, she decided to form a real estate team to better service her expanded clientele. “That was a transition,” she says.“Forming a team 15 years into my career. There’s no growth without that change, though. It was necessary to uphold my philosophy of prioritizing client needs. Even after the closing.”

Considering the inevitability of change, how does Julie envision the future of real estate? “Every time a new technology or model to factor out the service end of the industry emerged; people always thought it would impact agents. In the long run, it never did. Whatever happens to real estate, I believe clients will always desire to be connected to a person. There’s something to be said about that. Having a professional, with the right expertise, working for you.”

We couldn’t agree more Julie! If you are considering a career in Real Estate, Berkshire Hathaway HomeServices The Preferred Realty would love to have you! Luckily, we also have some of the best training, tools, and resources available in the business today.

Some of the Most Common Real Estate Myths

by Chris Petry

Today, we’re going to talk about some of the biggest myths you might have heard over the last several years. No, I’m not referring to myths like the Earth being flat or Elvis Presley being alive and well, ironically moonlighting as an Elvis impersonator in Lake Tahoe. Those are indeed myths but today, we’re going to place our focus on some of the most prevailing myths in real estate. So, read below to see Eight of the Biggest Real Estate Myths that are alive and well today.


 
Myth #1: You need 20% down to buy a house. You’ve probably heard many times over the years that you need 20% down to buy a home. According to the National Association of REALTORS, the average down payment on a home is somewhere in the 14% percent range. It’s worth noting, however, that there are various types of loans that you may qualify for (First Time Homebuyer, Veteran’s, etc.) that will bring that number down even more. In certain circumstances, you may be able to forgo a down payment entirely.  Keep in mind, loan type, credit score, and trends can all influence the amount you may owe. Every borrower’s situation will be different. Like most things, real estate is not one-size-fits-all. It’s best to meet with a real estate professional, as well as a personal finance expert or loan officer, to explore the options that are available to you based on your individual situation.


 
Myth #2: You can skip the pre-approval. I mean, in theory you could skip the pre-approval. The only problem is, you’ll still need to be approved at some point. Do you really want to have to undergo that process when the home of your dreams is sitting there in front of you? Seems like quite the risk, especially in an evermore competitive market. Not to mention, sellers will likely take bids from buyers with pre-approval letters more seriously.


 
Myth #3: You call the agent on the yard sign. If you’re in the market for a new home, or a first home, it’s an excellent idea to obtain representation from a licensed real estate professional BEFORE you make serious inquiries regarding a home, let alone attempt to place an offer. In fact, it’s a great idea to have an agent with you on every step of the real estate journey, from pre-approval to closing. Visit your local branch of Berkshire Hathaway HomeServices The Preferred Realty and inquire about the cost-free services of a well-trained real estate professional to get things started.


 
Myth #4: You need to paint every inch of your house white. This is another one of those things you’ve probably heard a million times. Buyers might “lack the imagination to conceptualize the space with their own design and furnishings.” Don’t get hung up on it. Yes, there are always things you can do to improve a prospective buyer’s first impression. Focus on curb appeal. Make sure the space is tidy, organized, and free of clutter. In terms of paint, perception has changed over the years. Where a whiteout was once the norm, it’s now okay to show a little color and personality. Too much white might conjure up images of uniformity, sameness, and sterility. Adjectives not routinely used to describe people’s homes, rather hotels, mortuaries, and hospitals. Bring on the cozy.


 
Myth #5: Home inspections are unnecessary. Home inspections are not required by law but they are far from unnecessary. Even if a seller discloses material defects known to them, there’s a chance those unknown defects might show up sooner than later. Who wants to move in and immediately go to work on large and expensive projects like a new roof, HVAC system, or electrical panel? Of course, if you’re a home seller a pre-inspection can be a good proactive option. That way you can address issues that might present themselves in a buyer-requested home inspection.  


 
Myth #6: Your monthly payment amount will be identical to an estimate you saw online. Ever gone to one of those websites with a monthly payment estimator tool? Yeah, no. A true estimate of your monthly payment can only be determined by a combination of your credit worthiness, your down payment and loan type, interest rate, and escrow additions (insurance, property tax). So, until you’ve gotten a pre-approval, had an approved offer, obtained mortgage commitment, and hashed out the financing with a loan officer, the monthly payment estimation is subject to change. The good news? Loans with fixed interest rates will assure your payment before escrowed items will remain the same after closing. Unless you refinance at a later date, of course.


 
Myth #7: Renovating before selling is going to increase my home’s value! Yeah, no, maybe. There are a lot of independent factors that can influence home values. While a stunning bathroom remodel and a highly-desirable kitchen can increase buyer appeal, it’s not foolproof. Your home’s value can easily be affected by local, state, and national buying trends, including: architectural styles, interest rates, comparable home sale prices, and proximity to desirable amenities and services. Remodeling rarely hurts a home’s value but it’s definitely not guaranteed to inflate it either.


 
Myth #8: You’ve bought before so you know exactly what to expect. A quote often attributed to Naturalist Charles Darwin is, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” If your previous real estate experience was some time ago or in another market entirely, you may find yourself in unfamiliar territory. After all, the real estate business is not a monolith. Its terms, conditions, and legalities are influenced and regulated by state and federal government. Additionally, the tools and technology available to REALTORS to market your home change routinely. You might be delighted to know how the availability and subsequent implementation of new technology has opened up many doors that were once harder to access, from outreach and awareness to the increased speed by which the process can move… assuming all ducks are in a row, mind you.
 
 
 
 
 

The 10 Reasons People Are Moving

by Chris Petry

Why are people moving? Well, now there’s a loaded question if I’ve ever heard one! There are countless reasons why someone might sell their home, move to another neighborhood, city, state, or country, and begin a new life. Today, however, we’re going to try and address ten of the most popular reasons people are moving as of January, 2024.
 
Getting Closer to Family


 
One of the primary motivations of movers nationwide is family. Soon to be or existing grandparents may jump for joy at the opportunity to be closer to and/or spend more time with their grandchildren. Of course, THEIR children, at the peak of their professional careers, will likely appreciate the extra help with childcare and the opportunity to provide more immediate assistance to their aging parents when necessary.
 
They Need More Space


 
It’s as simple as that! Look at it this way: If you’re living in a one-bedroom or studio apartment or a small starter home and you plan to expand your family, you’re going to need more space. As your socioeconomic standing improves and you acquire stuff (furniture, collections, sporting and workout equipment, cars, boats, motorcycles, tools, etc.) you’ll need space to store everything without compromising basic living space. Maybe it’s always been your dream to have a large garage for hobby car restoration, you need another bathroom to accommodate a growing family, or perhaps you just need a designated area for your sports memorabilia or comic book collection… whatever it is, you need more room. So, people are moving to meet their growing space requirements.
 
They Need Less Space


 
There are two defining moments in a homeowner’s journey: when they buy their dream home and when/if they decide to sell it. If they’re retired and living on a fixed income, their children have moved away, or they’re just exhausted from the utility bills, upkeep, cleaning, and remodeling of a larger home, they’ve probably considered the many advantages to downsizing.
 
Housing Costs


 
Over the last few years, people have, for a number of reasons, decided to relocate to more economically viable markets. We reported here, in this very blog, just a few weeks ago how the Pittsburgh and Cleveland metropolitan statistical areas were holding their own against historically-larger housing markets. Why? Average home prices are more favorable to the average American’s budget. In fact, the cost of living based on almost any metric (including health expenses, groceries, and utilities) is less expensive. Buying a home in Southwestern, Pennsylvania or Northeastern, Ohio just makes sense. Especially if you have a job that permits you to work virtually, another trend that has driven many moves over the last four years. Why wouldn’t you want to live in a more affordable housing market, freeing up more of your hard-earned dollars?
 
Work


 
In addition to the aforementioned virtual workers moving to more affordable markets, there’s also the age-old tradition of relocating to a different market to obtain a new job. Perhaps their current company is relocating or an unrelated opportunity presented itself to them. Maybe they work in an industry or field that simply provides less opportunity in their native market. For instance, if you want to be in the acting or modeling business, New York, Los Angeles, Chicago, and Toronto will provide far more opportunity than say Harrisburg or Youngstown. Conversely, if blue collar jobs like logging, farming, and mining are of more interest to you, you’re likely to have more success in a market where they compromise a greater percentage of the local revenue.
 
Taxes


 
Living and working in Allegheny County, Pennsylvania, I’ve routinely heard from Butler, Armstrong, Westmoreland, Jefferson, and Mercer County residents that there are major savings to be had on your annual property tax bill. Whether a longer commute or the potential loss of your beloved amenities is worth the tax savings, that’s up to you.
 
On a national level, a number of high-profile personalities and businesses have relocated their Corporate Headquarters to more business-favorable tax markets in recent years. Of course, when that business relocates, many of their employees do too. Regardless of where one stands on tax rates and incentives, it’s undeniable that tax rates have and do influence real estate purchases, both commercial and residential.
 
Upgrading Their Neighborhood


 
Another reason people have been relocating is to better match their neighborhood and their personal housing needs. Perhaps they want to live in a more walkable community where they can obtain their most basic needs via a quick stroll around the block. Maybe they want to keep livestock or have more space to garden, they desire more parking, or more or less of a front yard and all the maintenance that comes with it.
 
Schools, businesses, job opportunities, and local infrastructure can motivate many to relocate to a new neighborhood. It’s worth keeping in mind that nowhere is objectively better than anywhere else. The goal is to select the neighborhood that best represents you and your family’s needs.
 
Health


 
People are more conscious of health and wellness than ever before. There’s a reason a new gym opens on your block every other month. There’s a reason people are doing more independent research into their diets, water supplies, and family medical histories. I don’t know who said it first but, “focus more time on the things you can change and less on the things you can’t.” More people than ever are choosing to live and work in environments that better allow them to prioritize their physical and mental wellbeing, not just their finances.
 
Cities and communities that make steps to clean up their environment, provide ample outdoor recreational opportunity, and take steps to create a greener more sustainable future are more appealing to modern buyers.
 
They’re Ready for Something Different


 
There is a restlessness in the human spirit that seeks to break free of the confinement of routine, to create each day anew. In other words, sometimes we just get bored of our surroundings. Over the last four years, large swathes of people had the opportunity to reassess their priorities. Many found they simply weren’t happy with the status quo and began implementing changes to realize bigger goals. So, instead of staying put, they’re opting to pack it up, move away, and reinvent their lives.
 
Then there are retirees who raised families and or managed decades long careers who are no longer tethered by the strings of professional responsibility. So, they’ve opted to chase the sunshine, retreat to the mountains, or find somewhere with amenities and services that better cater to their new lifestyle.
 
They’re Not Really Moving- They’re Purchasing a Second or Vacation Home


 
That’s right. There are people who are maintaining primary residences in their home town and purchasing a second homes elsewhere. If you can afford to do so and you love spending time on the ski slopes, why not buy a smaller more-economic getaway home near by? Or maybe a hunting camp, a condo on the waterfront, or an investment property. These people are not moving full time, just part of the time.
 
If you or someone you know is considering a move for any reason, be sure to consult with a licensed real estate professional at your local Berkshire Hathaway HomeServices The Preferred Realty branch office. Our REALTORS receive industry-best training and have access to the most up to date tools and resources to assist you on your real estate journey.

Number 3 Most Affordable Market in the US

by Chris Petry

There are many advantages to working for or working with Berkshire Hathaway HomeServices The Preferred and Stouffer Realty to achieve your real estate goals. For one, we’re the #1 brokerage in all of Southwestern, Pennsylvania and our presence in Eastern, Ohio grows and strengthens by the day. There’s also this: you’ve heard the phrase, “location, location, location” right? Well, it’s true. Right now, our location is a major plus. Why? As real estate brokerages nationwide have experienced challenges related to mortgage rates, population declines, and general economic uncertainty, the Pittsburgh and Cleveland markets have defied the odds.
 
Sure, we’ve also had our challenges. After all, Covid, international conflicts, and mortgage interest rates are concerns for everyone. That said, home prices, general affordability, and interest rates are more favorable in the Pittsburgh and Cleveland markets. According to recent data from the ICE Home Price Index, Pittsburgh ranks as the third Most Affordable Market in the United States. Cleveland, on the other hand, secured the top spot as the #1 Most Affordable Market in America. Not bad, huh?

According to a post from Cleveland.com, Cleveland area homes have a median price of about $133 per sq ft. That’s $81 below the national average. Pittsburgh lands around $147 per sq ft of housing. In the long run, the savings can be tremendous.
 
Okay, so why should people live in Cleveland or Pittsburgh? You know, other than the affordable housing options. Well, both cities are well-regarded for their professional sports teams (The Browns and The Steelers), local arts scenes, foodie-approved eateries, and brewing.
 
Don’t forget, Greater Cleveland is home to the Rock and Roll Hall of Fame, The Football Hall of Fame, The Cleveland Museum of Art, and the legendary West Side Market. Pittsburgh has The Carnegie Museum of Natural History and Science Center, The Andy Warhol Museum, The Heinz History Center, and for my money, the greatest approach of any city. I see nothing in this tunnel, I see nothing in this tunnel… bam! There’s a city!
 
Cleveland is a world leader in healthcare and research. Living in Cleveland means you have access to the best available medicine anywhere on the globe. Pittsburgh is a thriving science and technology center, its universities sponsoring some of the most exciting research and development in the Western Hemisphere.
 
Cleveland rests on the shores of Lake Erie (the 11th largest lake in the world) and while that means you might have to shovel a little more snow come winter, you have all the benefits of a beach without the… well, you know, sharks and stuff. Pittsburgh is just over a hundred miles from Lake Erie, so day trip? Additionally, both cities feature extensive hiking and biking trail networks and outdoor sporting activities.
 
So, whether you’re a resident of Western, Pennsylvania or Eastern, Ohio, you’re in a prime place to be, where real estate is concerned. You’ll pay less and be able to better enjoy all the world class amenities your city has to offer. If you’re not already a resident, we hope the above information is all the convincing you needed to make your move. For those considering an Ohio move, reach out to one of our dedicated sales professionals at Berkshire Hathaway HomeServices Stouffer Realty. If Pennsylvania is more your speed, be sure to speak to an agent from Berkshire Hathaway HomeServices The Preferred Realty, to get started.
 

Exchanging Quality for Convenience

by Chris Petry
 

About half an hour into quirky auteur Wes Anderson’s new comedy Asteroid City, there’s a throwaway gag with Steve Carell’s motel manager and a nomadic cowboy involving a row of oddly-specific vending machines. There are independent machines for milk, coffee, beer, fruit, stockings, ammunition, and the piece de resistance: upscale cocktails that would have my editor weighing her buy-in stock options. The vendor that stuck out most, however, was a real estate vending machine which gave purchasers access to barren desert acreage on retired atom bomb test sites. Mr. Anderson didn’t invent this idea, sadly. It was only a couple years back Zillow began dipping their toes into direct digital purchase options for land as well as commercial and residential real estate. Let’s discuss why that’s a bad idea, as convenient as it appears in writing.
 

I know what you’re thinking: why pay a real estate professional to assist me in my real estate needs when there’s a one-stop-shop option that requires little more than the click of a button? First off, let’s dispel some of the common misconceptions about the client/agent relationship. You are not paying a REALTOR a dime out of your own pocket for their professional consultation or stewardship. Agents are paid an agreed upon percentage of the final sale price of the home after closing. That percentage is agreed upon between them and their broker. Real estate commissions are split between four representatives of a transaction. The agent representing the buyer, the agent representing the seller, and the affiliated broker of both agents. All this will happen on the backend so you never have to worry about any of it.
 

Putting all the financial mumbo jumbo aside, the most important reason you should opt for the services of a real estate professional is because you’ll have an extra layer of protection from the contengencies, legal requirements, and ambiguities of a real estate transaction. Any REALTOR worth their salt will go over a comprehensive checklist with you to make sure all bases are covered. Are there health, repair, or safety disclosures that need recorded so potential buyers will be fully aware of what to expect? Do you simply want to ensure that you’re getting the best sell price possible for your investment? Or, if you’re a buyer, that you’re getting the best available deal for your money? A REALTOR will do all that negotiating on your behalf.

When you pay for a service without representation, you will only receive information required by the federal government or obtained from your own research. That’s great if you’re extra business savvy and/or willing to take unnecessary risks. Think about the Surgeon’s General Warning on a pack of cigarettes. The warning does the bare minimum. It warns you that government research indicates that smoking, particularly in excess, has been linked to cancer and birth defects. It doesn’t give you a full percentage by percentage breakdown of those stats, how the research was conducted, what controls were introduced to the test group, or whether you’re more at risk if you smoke in conjunction with doing A, B, or C. Consumer protection works about the same in all aspects of the economy. Let a trained real estate professional do the reading for you and advise you of any risks, rewards, concerns, or requirements involved in a given real estate transaction.
 

Finally, there’s the cost to risk ratio to take into consideration. Say you spend 75 cents on a single serve bag of potato chips at a rest stop. You love Doritos and know it’s a safe bet to invest your money on them, but you’re admittingly intrigued by the sound of Biscuits and Gravy- flavored wavy Lays. You get to the car and tear open the bag like a grizzly bear at a campsite, salivating from the delectable scent wafting from the bag. You take a bite and... yuck! Luckily, you only spent 75 cents on the displeasure of your discovery. What if you spent $275,000? I don’t need to tell you there’s a little more risk involved in one impulse buy.

So, if the allure of a vending machine promising the deed to Buckingham Palace seems too good to be true, well, it is.