Uncategorized April 5, 2021

Looking for 5 hot spots to dine at in the East Bay area of RI?

Craving the “skinny” on five local hot spots to dine in or out of in the East Bay area of Rhode Island?

 

 

Uncategorized March 24, 2021

Growing up in a small town in Rhode Island

Growing up in Barrington, RI in the 1970s and 1980s was pretty darn magical. I lived one block away from one set of cousins, two blocks from another and around the corner from my grandparents.  We lived on Ferry Lane until age 8 and then moved “all the way” to Rumstick.  My parents still live in our Rumstick house and I now live 2 blocks from our first home on Ferry Lane.

Being raised in a town surrounded by family members in a community filled with families was a joy. Days were spent biking around the neighborhood, biking to “town” to get an ice cream at Friendly’s or to check out the latest candy at Ben Franklins; located next to the old Almacs. Trips to Chellel’s market were taken almost daily usually with about 4 or 5 friends where buying a Whatchamacallit was ridiculously easy when no cash was exchanged and it was simply added to your family account.

On weekends I left early in the morning and returned in time for dinner; only to then go back outside after dinner to play “Kick the Can” or “Flashlight Tag” with my neighbors.  Days were spent walking and exploring the beach or the harbor wall, climbing trees , walking through Mr. Jones’ rose garden or playing tennis on the courts in the neighborhood if my mom was on ours.  Sports were the activity of choice for many of us whether it be via the Barrington Youth Soccer organization or the Barrington Softball league. I adored all the years I spent playing softball and soccer with my classmates and neighbors.  Learning how to ride horses at a barn my friends  and I stumbled upon during a game of kick the can was incredible. Competitive tennis soon took over yet it is those weekends spent on Barrington beach or tubing in the Cove or the late nights at a long softball game at Haines Park that I relish. Days where 80s music frequently blasted on boomboxes, sunblock was used minimally and the worries were few and far between. My time as a student in Barrington were joy-filled. Nursery School at Barrington College, Kindergarten at Maple Ave elementary and then Nayatt and the Middle School before I headed to good ole BHS. Days filled with laughter, a bit of trouble making and lots of joy with friends I treasure.

Friends who have now also returned to the town they adored as a kid to raise their families. Friends who despite not seeing them often due to crazy work schedules and family life will always be my best of friends because they were my Barrington childhood friends.  They were the ones I explored Barrington with, discovered seaside laughter with and experienced all the ups and downs of teenage hood with.

It’s a special place, this small town by the sea and one I adore sharing with countless clients who come here for reasons that I found so compelling all those years before.

Uncategorized March 24, 2021

Why you should think of listing prices as an Auctions’ reserve price

Every day is auction day lately. The offer price is merely the ticket assigned to the commodity. A commodity whose “worth” escalates exponentially as soon as it hits the market. It’s a market the resonates pure “supply and demand theory” and it’s actively “on display” throughout this state in which I engage in real estate.

It’s a market in need of buyers’ with a savvy, well-informed mindset. Buyers who are cognizant of where values are at within each municipality. For it is only then that the buyer is best qualified to get the final “whack” of the gavel signifying his or her winning bid!

 

For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. Buyers would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to the Home Buyers and Sellers Generational Trends report just released by the National Association of Realtors (NAR), 45% of buyers paid full price or more.

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the old-school mentality of refusing to pay full price or more for a house.

Because of the shortage of inventory of houses for sale, many homes are actually being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.

When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions. Let’s connect so you have the best advice on how to make a competitive offer on a home in our Rhode Island market.

Uncategorized February 24, 2021

How much leverage do today’s sellers have?

How Much Leverage Do Today’s House Sellers Have?

How Much Leverage Do Today's House Sellers Have? | MyKCM
The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

  1. To buy a home
  2. To buy now before prices continue to appreciate
  3. To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Here’s an example:

Odeta Kushi, Deputy Chief Economist at First American, recently identified a situation in which many sellers are finding themselves today:

“As mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home…Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.”

She then offers a possible solution: 

“While the fear of not being able to find something to buy will not disappear in a limited supply environment, new housing supply can incentivize existing homeowners to move.”

There’s no doubt many sellers would love to build a new home to perfectly fit their changing wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?

Going back to the concept of leverage:

As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party’s needs. But how?

The seller may decide to sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller’s new home is being built. A true win-win negotiation.

Not every buyer will agree to such a deal – but you only need one.

That’s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today’s market. Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. Whatever the challenge, you may be able to work it out.

Bottom Line

If you’re considering selling your house in RI now but worry a huge obstacle stands in your way, let’s connect. Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams. I would love to be of help!

Uncategorized February 20, 2021

The incentive to buy in RI is as clear as a “3 bridge day” in the Ocean State!

Home Mortgage Rates by Decade [INFOGRAPHIC]

Home Mortgage Rates by Decade [INFOGRAPHIC] | MyKCM

Some Highlights

  • Mortgage interest rates have dropped considerably over the past year, and compared to what we’ve seen in recent decades, it’s a great time to buy a home.
  • Locking in a low rate today could save you thousands of dollars over the lifetime of your home loan, but these low rates may not last forever.
  • If you’re in a position to buy a home in Rhode Island let’s connect to determine your best move in today’s housing market while interest rates are still in your favor.
Uncategorized January 25, 2021

Real estate market realities for buyers and sellers

There is no doubt the real estate market is booming. No longer tethered to a workplace, many are choosing to leave the cities and head to the burbs. This has put an incredibly high demand on the pre-existing low-inventory of homes nationwide in our surban and suburban areas.

Per the supply and demand principle, prices of homes have escalated tremendously.  It’s made for a very competitive market for buyers where multiple offers are the norm.  Many issues surface in such a robust and “inflamed” market and ones that I like to keep all my buyers and sellers cognizant of. Here are a few to keep in your buying/selling headspace.

1. Low inventory/Multiple offers

A seller’s market is likely to continue for the foreseeable future especially in the suburbs and in states featuring coastline or mountains.  Areas that boast outdoor amenities are now on many- a-buyer “hot list.” I heard on a recent podcast that the “flyover states” have now become the “fly- to states.”  What this all means is that when a house hits, you as a buyer need to be ready to pounce.  Multiple offers are the new normal and learning how to create competitive offers via escalator addendums and waiving some contingencies are areas buyers must be educated in.

2 . The market will NOT pay top dollar for overpriced or dated homes.

Despite the seller’s market one can not throw a listing up there like spaghetti to a wall, with little market prep and/or a high price tag. It simply won’t sell.  Buyers are NOT jumping on these homes no matter how “desperate” they are for inventory. If it’s priced too high or the condition is perceived as poor (ie dated and or cluttered) it simply will not sell.  There are simply too many properties that HAVE been updated and that have been prepped impeccably, staged well etc for buyers to choose from. The real estate market is like a beauty pageant where pretty really does sell and it sells well.

 

3. Transactions will become more accelerated.

Loans and closings took much longer during the beginning of the pandemic.  Addendums were developed for unforeseen delays yet somehow along the way everyone found out how to make the process faster and more efficient. What that means for a buyer is that the ability to go out and look at 15 plus homes has waned. There are simply too many buyers out there surfing online for weeks prior who are ready to see a home and then make an offer.  This is now a market where willing and able buyers are out making offers daily.

 

4. Leaseback options

The more flexible a buyer is, the stronger an offer appears. So many times it’s not the offer price that wins the multiple offer contest but it’s the one with the fewest contingencies and the most flexibility with closing dates and occupancy.  Buyers who can offer sellers the ability to stay in their homes after closing for a specified period of time may have an advantage over a buyer who needs to move in right after closing.

 

5. Appraised values may become increasingly challenged. 

Median sale prices are up 8- 41% in towns across Rhode Island versus where they were a year ago. With that comes the risk that an appraisal comes in below the contract sales price, especially where properties are going well over asking prices.  As an agent, I always give my sellers and buyers a big ‘Appraisal 101″ where I inform them that an appraisal is simply one person’s opinion of value and it may not be the market value and/or the price that the buyer and seller agreed to.  If an appraisal contingency is waived by the buyer to add great strength to the offer, then the buyer will be forced to put down more money to make up for the difference.  Tactics can be taken on behalf of the buyer to provide an element of compromise, where the buyer will agree to come up with x amount of the asking price, or something to that effect but “what if” plans need to be discussed early on in the offer process.  Some buyers may not be able to come up with the out of pocket money needed to pay the difference and that needs to be discussed with their realtor before an offer is made. Likewise, sellers need to be advised on what the repercussions are when an appraisal comes in under the sales contract price.

 

Bottom line is that the market is hot and buyers and sellers need to be well informed, educated and prepared for anything and everything that MAY come their way.  As a former teacher, I pride myself on my value proposition which rests heavily on knowledge and guidance every step of the way.

Uncategorized January 20, 2021

Owning a home is more affordable than renting one!

Owning a Home Is Still More Affordable Than Renting One

Owning a Home Is Still More Affordable Than Renting One | MyKCM
If spending more time at home over the past year is making you really think hard about buying a home instead of renting one, you’re not alone. You may be wondering, however, if the dollars and cents add up in your favor as home prices continue to rise. According to the experts, in many cases, it’s still more affordable to buy a home than rent one. Here’s why.

ATTOM Data Solutions recently released the 2021 Rental Affordability Report, which states:

Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 572, or 63 percent of the 915 U.S. counties analyzed for the report.

That has happened even though median home prices have increased more than average rents over the past year in 83 percent of those counties and have risen more than wages in almost two-thirds of the nation.”

How is this possible? 

The answer: historically low mortgage interest rates. Todd Teta, Chief Product Officer with ATTOM Data Solutions, explains:

“Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check.

In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year. These low rates are a big factor in driving affordability. Teta also notes:

“It’s startling to see that kind of trend. But it shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership. The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.”

Bottom Line

If you’re considering buying a home in RI this year, let’s connect today to discuss the options that match your budget while affordability is in your favor. Inventory is low so preparing far in advance is pivotal so that we can “strike when the iron is hot” when a listing hits the market that meets your checklists! Pre-game prep is essential in buying a home and in selling a home. I can help you get game-day ready and truly love the process of doing it!

Uncategorized January 17, 2021

Six Things to Splurge on in the Bathroom!

Bathrooms have a major impact on home value.  What improvements can you make in a bathroom that will add value? What should you avoid doing? Clients always ask me what to do and what to avoid doing in terms of home improvements; especially, if like many, they plan to sell shortly.

Here are a half dozen bathroom ideas you can and should “dive all in” on!
1. Steam in the shower- This is a great splurge. Firstly, there are a lot of health benefits to steam from increased circulation, to stress management and improved moods.  What “turns the heat up” even further on adding steam to the shower is the fact that since the pandemic hit homeowners and buyers are desiring more amenities at home. Any element that adds rejuvenation, and is viewed as a “luxury ” item is so highly coveted with homebuyers right now.
2. Air- jet baths.  These also increase circulation plus decrease muscle aches and pains. It also ups the “feels like a spa” theory sought by buyers.  Many clients ask if they should even have a bathtub in the bathroom. I say yes. Any young family who looks at your house will want at least one bathtub.   (Full disclosure, I am also a “bath every night” kind of gal!)
3. Towel warmers- Seems excessive right? How many of you have and LOVE your steering wheel heaters in your car??? It’s the same concept! Stepping out of the shower and into a warm towel? Pure Heaven!
4.  Mirrors with LED lighting – These are always a great buy. They brighten a room and offer better light for makeup application.  Light also has a huge impact on our mood. A lack of it can seriously dampen our spirits while a bright, inviting space serves to lift!
5. Thermostatic Mixing Valves- The Thermostatic Mixing Valve is used to control the water temperature at the water heater.  it gives you more control over the temperature and water pressure for a more enjoyable shower…and who doesn’t want that!
6. Radiant heat in the floor- Worth every penny!  No noise, no maintenance, easy to install, energy-efficient and did I mention their ability to uniformly heat a room and a floor???
So there you have it- 6 home improvements to splurge on in the bathroom. You will thank me after you implement them and ENJOY them yourselves  AND you will thank me when it comes time to sell!!!
Happy bathing!
Uncategorized January 12, 2021

4 Reasons People are Buying Homes in 2021

4 Reasons People Are Buying Homes in 2021

4 Reasons People Are Buying Homes in 2021 | MyKCM
According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.

Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.

1. Record-Low Mortgage Interest Rates

In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, advises:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

This sense of urgency is driving many to buy this year.

2. Working from Home

Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says: 

“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”

The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.

3. More Outdoor Space

Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.

According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.

4. Avoiding Renovations

It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”

Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.

Bottom Line

It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home in Rhode Island, let’s connect to discuss your options. I would be happy to help!

Uncategorized January 11, 2021

What does 2021 Have in Store for Home Values?

What Does 2021 Have in Store for Home Values?

What Does 2021 Have in Store for Home Values? | MyKCM
According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As CoreLogic explained:

“Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market.

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.”

Where will home values go in 2021?

Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.

Housing Supply

According to the National Association of Realtors (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago.

However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:

1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.

2. Some households impacted financially by the pandemic will be forced to sell.

Housing Demand

Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year.

Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts:What Does 2021 Have in Store for Home Values? | MyKCM

Bottom Line

There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of “supply and demand” mandates that home values in the country will continue to appreciate.