If you want to sell your house, having the right strategies and expectations is key. But some sellers haven’t adjusted to where the market is today. They’re not factoring in that there are more homes for sale or that buyers are being more selective with their budgets. And those sellers are making some costly mistakes.

Here’s a quick rundown of the 3 most common missteps sellers are making, and how partnering with an expert agent can help you avoid every single one of them.

1. Pricing the Home Too High

According to a survey by John Burns Real Estate Consulting (JBREC) and Keeping Current Matters (KCM), real estate agents agree the #1 thing sellers struggle with right now is setting the right price for their house (see graph below):

And more often than not, homeowners tend to overprice their listings. If you aren’t up to speed on what’s happening in your local market, you may give in to the temptation to price high so you can have as much wiggle room as possible to negotiate. You don’t want to do this.

Today’s buyers are more cautious due to higher rates and tight budgets, and a price that feels out of reach will scare them off. And if no one’s looking at your house, how’s it going to sell? This is exactly why more sellers are having to do price cuts.

To avoid this headache, trust your agent’s expertise from day 1. A great agent will be able to tell you what your neighbor’s house just sold for and how that impacts the value of your home.

2. Skipping Repairs

Another common mistake is trying to avoid doing work on your house. That leaky faucet or squeaky door might not bother you, but to buyers, small maintenance issues can be red flags. They may assume those little flaws are signs of bigger problems — and it could cost you when offers come in lower or buyers ask for concessions. As Investopedia says:

“Sellers who do not clean and stage their homes throw money down the drain. . . Failing to do these things can reduce your sales price and may also prevent you from getting a sale at all. If you haven’t attended to minor issues, such as a broken doorknob or dripping faucet, a potential buyer may wonder whether the house has larger, costlier issues that haven’t been addressed either.”

The solution? Work with your agent to prioritize anything you’ll need to tackle before the photographer comes in. These minor upgrades can pay off big when it’s time to sell.

3. Refusing To Negotiate

Buyers today are feeling the pinch of high home prices and mortgage rates. With affordability that tight, they may come in with an offer that’s lower than you want to see. Don’t take it personally. Instead, focus on the end goal: selling your house. Your agent can help you negotiate confidently without letting emotions cloud your judgment.

At the same time, with more homes on the market, buyers have options — and with that comes more negotiating power. They may ask for repairs, closing cost assistance, or other concessions. Be prepared to have these conversations. Again, lean on your agent to guide you. Sometimes a small compromise can seal the deal without derailing your bottom line. As U.S. News Real Estate explains:

“If you’ve received an offer for your house that isn’t quite what you’d hoped it would be, expect to negotiate . . . the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits . . . consider offering to cover some of the buyer’s closing costs or agree to a credit for a minor repair the inspector found.”

The Biggest Mistake of All? Not Using a Real Estate Agent

Notice anything? For each of these mistakes, partnering with an agent helps prevent them from happening in the first place. That makes trying to sell your house without an agent’s help the biggest mistake of all.

Bottom Line

Avoid these common mistakes by starting with the right plan — and the right agent. Let’s connect so you don’t fall into any of these traps. Reach out to our team at 734.329.0123 or email us at Sold@HomeCraftTeam.com

Did you know? Homeowners are often able to put more money down when they buy their next home. That’s because, once they sell, they can use the equity they have in their current house toward their next down payment. And it’s why as home equity reaches a new height, the median down payment has too.

According to the latest data from Redfin, the typical down payment for U.S. homebuyers is $67,500—that’s nearly 15% more than last year, and the highest on record (see graph below):

Here’s why equity makes this possible. Over the past five years, home prices have increased significantly, which has led to a big boost in equity for current homeowners like you. When you sell your house and move, you can take the equity that gives you and apply it toward a larger down payment on your new home. That’s a major opportunity, especially if you’ve had concerns about affordability.

Now, it’s important to remember you don’t have to make a big down payment to buy your next home—there are loan programs that let you put as little as 3%, or even 0% down. But there’s a reason so many current homeowners are opting to put more money down. That’s because it comes with some serious perks.

Why a Bigger Down Payment Can Be a Game Changer

1. You’ll Borrow Less and Save More in the Long Run

When you use your equity to make a bigger down payment on your next home, you won’t have to borrow as much. And the less you borrow, the less you’ll pay in interest over the life of your loan. That’s money saved in your pocket for years to come.

2. You Could Get a Lower Mortgage Rate

Providing a larger down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage rate they’ll likely be willing to give you. And that amplifies your savings.

3. Your Monthly Payments Could Be Lower

A bigger down payment doesn’t just help you reduce how much you have to borrow—it also means your monthly mortgage payment may be smaller. That can make your next home more affordable and give you a bit more breathing room in your budget.

4. You Can Skip Private Mortgage Insurance (PMI)

If you can put down 20% or more, you can avoid Private Mortgage Insurance (PMI), which is an added cost many buyers have to pay if their down payment isn’t as large. Freddie Mac explains it like this:

“For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage. It is not the same thing as homeowner's insurance. It's a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%.”

Avoiding PMI means you’ll have one less expense to worry about each month, which is a nice bonus.

Bottom Line

Down payments are at a record high, largely because recent equity gains are putting homeowners in a position to put more money down.

If you’re thinking about selling your current house and moving, let’s work together to figure out how much home equity you have right now, and how it can boost your buying power in today’s market.

Why Did More People Decide To Sell Their Homes Recently?

Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market.

The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year.

As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below):

Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:

“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move.

What Does This Mean If You’re Looking To Buy a Home?

It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold.

But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions.

Why Buy Now, Rather Than Wait?

Whether you're looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key.

And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve.

With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”

Bottom Line

As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. Let’s connect to make sure you have a trusted advisor to help you navigate the new options before they’re all scooped up. 

Have you been thinking about selling your house? If so, here’s some good news. While the housing market isn't as frenzied as it was during the ‘unicorn’ years when houses were selling quicker than ever, they’re still selling faster than normal.

The graph below uses data from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes are selling compared to more normal years:

When you look at the most recent data (shown in green), it's clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). According to Realtor.com:

“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”

What Does This Mean for You?

Homes are selling faster than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that mortgage rates have come down, but there still aren’t enough homes to go around. Mike Simonsen, Founder of Altos Research, says:

“. . . 2024 is starting stronger than last year. And demand is increasing each week.”

 Bottom Line

If you’re wondering if it’s a good time to sell your home, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the latest updates on what’s happening in our local market, let’s connect.

Are More Homeowners Selling as Mortgage Rates Come Down?

If you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale.

The Mortgage Rate Lock-In Effect

Over the past year, one factor that’s really limited the options for your move is how few homes were on the market. That’s because many homeowners chose to delay their plans to sell once mortgage rates went up. An article from Freddie Mac explains:

“The lack of housing supply was partly driven by the rate lock-in effect. . . . With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving them rate locked.”

These homeowners decided to stay put and keep their current lower mortgage rate, rather than move and take on a higher one on their next home.

Early Signs Show Those Homeowners Are Ready To Move Again

According to the latest data from Realtor.com, there were more homeowners putting their houses up for sale, known in the industry as new listings, in December 2023 compared to December 2022 (see graph below):

Here's why this is so significant. Typically, activity in the housing market cools down in the later months of the year as some sellers choose to delay their moves until January rolls around.

This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to lower rates.

What This Means for You

While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers may be deciding to list. According to a recent article from the Joint Center for Housing Studies (JCHS):

“A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .”

And that means you may see more homes come onto the market to give you more fresh options to choose from.

Bottom Line

As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. Let’s connect so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area.

Decoding The 2024 Housing Market | A Guide for Buyers and Sellers

The housing market for 2023 seems to be on a downward spiral due to soaring housing prices and mortgage rates. However, home buyers and sellers can expect positive changes for the 2024 housing market.

Homeownership might be unattainable for many people right now, but there's a noticeable upward shift as more people enter the market and interest rates ease.

If you want to sell or buy a home near the Plymouth, Michigan, area, the best time to do so might be 2024. Below, HomeCraft Team explains what you could expect with the housing market in 2024.

Current Trends and Factors Influencing the 2024 Housing Market

The housing market has been at a bit of a standstill because of incredibly high mortgage interest rates driving home prices up in 2023. Fewer people are willing to enter the market when prices are so high, and sales are less certain.

The 2024 housing market predictions suggest that home sales will rise. There could be a 5% increase in home sales, with 30-year fixed interest rates dropping to about 6.5% by the end of 2024.

The extra activity in the housing market will make real estate firms more competitive. This could decrease home-buying fees, which passes savings to home buyers working with agents. Unfortunately, many young adults still find homeownership out of reach, so the demand for rental properties will increase.

Insights for Home Buyers in the 2024 Housing Market

Entering the housing market as a prospective buyer can feel overwhelming. Still, you can find the perfect property for your family and lifestyle without unnecessary hassles when you have an experienced real estate agent on your side. A realtor can help you narrow your housing options according to your budget, ideal neighborhoods, and housing preferences.

Here are tips to make your home-buying experience a streamlined process:

• Think beyond the house styles and features you like and include preferred neighborhoods, school zones, and local amenities.
• Keep track of your finances and credit score.
• Start saving for down payments and closing costs early.
• Source a respected mortgage lender with reasonable rates early in the buying process.

Strategies for Home Sellers in the 2024 Housing Market

You can take advantage of the housing market as a seller by making informed decisions. Hiring a knowledgeable Plymouth, MI, realtor can help you price your home according to your pricing wishes and the current housing market. Since most homebuyers prefer not to pay more than the value of comparable houses in the area, price negotiation is essential for satisfying you and potential buyers.

Other tips for selling your home in a competitive housing market include:

• Hire a professional third-party inspector for pre-sale inspection.
• Conduct wise and necessary renovations.
• Stage your home professionally.
• Book a photographer to take high-end photos and videos.
• Create paid ads to market the property. 

Plymouth, MI, Realtor: Your Local Expert in the 2024 Housing Market

HomeCraft Team is the go-to destination for reliable realty services in Plymouth, Michigan. Our realtors understand that the housing market is ever-changing. That's why we always pay attention to current trends and ensure we can accommodate our clients' home selling and buying needs.

We use an organized approach to selling properties. Our process lets us prepare your home with professional decluttering, staging, and photography services before pricing and marketing the property across multiple channels.

With our 25 years of experience, HomeCraft Team can also aid in the home-buying process. With our intricate understanding of the housing market and 2024 housing marketing trends, we can help you find and purchase your dream home.

Navigating the 2024 Housing Market With The HomeCraft Team

At HomeCraft Team, we have over 50 years of collective experience helping residents in Plymouth, Michigan, and the surrounding communities sell and buy houses. We stay knowledgeable about the current housing market and use an organized selling approach to price and market houses effectively. Our team also helps with professional house staging, creating custom market reports, and making targeted marketing plans.

You can be confident that HomeCraft Team will make home selling a stress-free experience with our understanding of the 2024 housing market. Call (734) 531-7409 today to book a consultation with us.

The HomeCraft Team Difference | Success Through Client Reviews

When hiring a real estate agent in Plymouth, MI, you need someone who intimately understands the housing market and what it takes to buy or sell for the right price. You deserve an agent who understands your vision and budget, compromising as little as possible. That's where The HomeCraft Team comes in.

Our satisfied clients rave about how we demystify an otherwise stressful process in their HomeCraft Team Reviews. With over 40 years of combined experience navigating the housing market, we want to share our advantage with you!

Unpacking the HomeCraft Experience: Real Client Reviews

The HomeCraft Team's agents earned a well-deserved reputation for going beyond their clients' expectations. Their care, attention to detail, and client-focused approach ensure a satisfactory buying and selling experience. What do their wonderful clients have to say?

Bill underscores "the countless hours and miles" they spent to ensure his family found their perfect starter home. He appreciates how the agents did "whatever it took to give us the best chance of winning..." His five-star review features him and his wife grinning from ear to ear in front of their newly purchased abode.

Eric describes how he and his spouse worked with The HomeCraft Team to sell their Northville property. He says, "by coincidence, we bought and sold five homes in a very short period of time. HomeCraft Team was the best company." His glowing review Shows that HomeCraft Team has an advantage over other real estate agencies in the area.

Finally, Sarah describes the team's attention to detail. "I loved that they suggested we do a pre-inspection before listing the home to ensure we were ready to go." She states that she highly recommends homebuyers and sellers look for communicative and responsive sales representative.

The Art of Selling Homes in Plymouth, MI with HomeCraft Team

A successful sale begins with a price compatible with the housing market and your desires. The price will have the most significant influence over how quickly you sell your home In Plymouth, Northville, and Livonia, MI. The HomeCraft Team helps you strike the perfect balance between profit and affordability.

The other half of the selling battle is staging. As HomeCraft Team reviews will highlight, their agents excel at making the home look presentable for listing photos and open houses. Their staff has a taste for decor and layouts that pique buyer interest.

Navigating the Market With HomeCraft: A Look at Our Proven Strategy

The HomeCraft Team does more than place your property on the market. Their agents go beyond showing properties that meet your minimum buying requirements. They implement a simple yet effective professional process developed via decades of combined real estate experience.

Your agent uses their insights as a member of Plymouth’s community to ensure your property appeals to locals. When you purchase a home, you’ll find yourself standing at the threshold of your new home without the hassle. They combine your preferences with housing-market realities, keeping you informed throughout your experience.

Why Choose HomeCraft? A Closer Look at Our Core Values and Approach

The HomeCraft Team does more than place your property on the market. Their agents go beyond showing properties that meet your minimum buying requirements. They implement a simple yet effective professional process developed via decades of combined real estate experience.

The HomeCraft Team’s passion for homes extends to how they structure their values:

• Foundation: They build client relationships on a foundation of trust. Transparent and open communication ensures all involved parties feel heard and valued.
• Framework: The real estate ecosystem is filled with intricacies, including the client’s comfort within the community. They’ll help you find your place within the area.
• Roof: A building’s roof represents higher goals and continuous growth. The team never stops learning or aiming higher for clients.
• Landscape: Just as a homeowner must nurture their private surroundings, the HomeCraft Team takes care of their clients, regardless of their situation.

Ready To Sell Your Home in Plymouth? Let's Get Started With The HomeCraft Team

Become one of the HomeCraft Team’s string of satisfied clients! Experience how decades of combined professional experience will transform the buying or selling process for you. We’ll uncover your perfect property match in Plymouth, MI, or surrounding areas.

Explore the growing collection of five-star HomeCraft Team reviews to learn what you should expect from your agent. Then, conveniently contact them online or by phone at 734-531-7409. Get help with your real estate needs today.

To Sell or Not To Sell My House for Cash?

The Importance of Understanding Home Selling Terminology

Selling your home is a complex process. From the moment you put the property on the market until the final closing, you must navigate a labyrinth of contracts, disclosures, and other paperwork peppered with unfamiliar terminology. Unfortunately, not understanding these terms can mean higher costs and other problems down the road. 

Here, the HomeCraft Team explains selling home terminology that will likely come up during the transaction. 

Key Terms in Home Selling

If you feel the home sale process requires learning a foreign language, this glossary of key terms will help:

• Listing. Although most people think of the listing as the advertisements they see for homes, it actually refers to the agreement between a home seller and the agent to market the home for sale. It details the length of the listing period, the commission agreement, and whether the contract is open or exclusive to a single agent.
• Closing costs. Closing costs are the expenses you pay at loan closing that cover the costs to create the home loan and complete the transaction. They can include fees for appraisals, attorneys, title searches, and escrow, typically amounting to 3% to 6% of the mortgage amount. These costs are in addition to the down payment.
• Contingencies. The home seller or buyer can include contingencies or conditions in the contract. For example, the buyer may submit an offer contingent upon a home inspection or the sale of their existing home or ask the seller to cover closing costs. Either party can cancel the agreement if the other doesn’t meet the conditions.
• Deed. The legal document that lists who owns a house or property. When you buy a home, the deed of sale lists you as the new owner.

HomeCraft Team’s Role in Plymouth, MI Real Estate

An experienced real estate agent can help you navigate the home sale process and explain selling home terminology. The HomeCraft Team are leaders in Plymouth, MI, real estate and have decades of experience and expertise to make the process as clear and streamlined as possible. 

Choosing the HomeCraft Team means you gain valuable insights into the local real estate market and learn the best ways to position your property for a fast and lucrative sale. From start to finish, they are on your side as trusted advisors.

Advanced Selling Home Terminology

Need additional help with common financial terms in home selling? 

• Escrow. Escrow is a holding account that retains funds until all parties meet specified conditions, such as completing the purchase agreement. Escrow accounts hold good faith money while the transaction is in process. It also holds funds to pay property taxes and insurance throughout the life of the mortgage.
• Fixed-rate mortgage. A fixed-rate mortgage that has the same interest rate for the life of the loan.
• Variable-rate mortgage. A variable- or adjustable-rate mortgage has an interest rate that changes based on the current interest rate the Fed sets.
• Points. These fees cover interest charges in exchange for a lower mortgage interest rate. Each point is 1% of the loan. 

Practical Tips from the HomeCraft Team for Selling Your Home

Knowing basic home selling terminology can help you sell your home faster and with fewer hassles. The HomeCraft Team knows what buyers are looking for and will position your property with a competitive price and appealing marketing so it doesn’t languish on the market. 

The HomeCraft Team Plymouth, MI has advice for speeding up home sales, like:

• Accepting contingencies, like making repairs or agreeing to inspections
• Offering concessions, like paying closing costs
• Being open to cash sales that eliminate time-consuming paperwork
• Working with a company that specializes in cash transactions and fast home sales 

Empowering Home Sellers with Knowledge

Understanding the selling home terminology that real estate agents and lenders use throughout the transaction can help you avoid costly mistakes and ensure the process goes as smoothly as possible. Thanks to this newly acquired knowledge and the help of the experienced HomeCraft Real Estate team, you can go into the process feeling more confident and in control.

When it’s time to sell your Plymouth, MI, home, the HomeCraft Real Estate team is on your side at every step. Call (734) 531-7493 today if you have additional questions about real estate jargon or want to list your home for sale.

Homeowner Net Worth Has Skyrocketed

If you’re weighing your options to decide whether it makes more sense to rent or buy a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the Federal Reserve Board releases the Survey of Consumer Finances (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant.

The average homeowner’s net worth is almost 40X greater than a renter’s. And here’s the data to prove it (see graph below):

The Big Reason Homeowner Net Worth Is So High

In the previous version of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in the release that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the Survey of Consumer Finances (SCF) report says:

“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”

One of the biggest reasons homeowner net worth skyrocketed is home equity.

Over the last few years, known as the ‘unicorn’ years for housing, home prices went through the roof. That’s because there weren’t enough homes for sale, and there was a big influx of buyers rushing to buy them and take advantage of the then record-low mortgage rates. That imbalance of supply and demand pushed prices higher and higher. As a result, most homeowners who had a home during that time saw their equity grow a lot.

If you’re still in the middle of making your decision on whether to rent or buy, you may wonder if you missed the boat on the big net worth boost. But here’s what you need to realize. As a recent article in The Ascent explains:

“Whether your net worth increased in recent years or not, there are steps you can take to boost that number in the coming years. . . buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time.”

Historically, home prices climb over time. Even now that mortgage rates are closer to 7-8%, prices are still rising in many areas of the country because supply is still low compared to demand. That’s why expert forecasts for the next few years call for ongoing appreciation – just at a pace that’s more typical for the housing market.

While it likely won’t be the record ramp-up that happened over the last few years, people who buy now should continue to grow equity in the years ahead. That means, if you’re ready and able to buy a home today, you’ll be making an investment that’ll help build your net worth in the long run.

As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“. . . when deciding to rent vs buy, one must calculate the total cost of homeownership (maintenance, utilities, commuting, etc.) and the total financial benefit. Based on new Fed data . . . the median net worth of homeowners was $396,200 vs renters at $10,400. There is no question about the wealth gains that homeownership provides.”

Bottom Line

If you’re on the fence about whether to rent or buy a home, remember that homeownership can give your net worth a big boost over time. If you want to learn more about this or the many other benefits of owning a home, let’s connect.