Local Real Estate market Prediction 2016

2015 was a great year for both buyers and sellers. We started off with amazing interest rates for buyers and a decent inventory of homes for them to choose from. An array of loan programs were available for any buyer in any price range and foreclosures and short sale properties became less and less a market trend. It was not only good for buyers but sellers too! Due to the rates, loan programs, and less distressed homes available at discounted prices; competition was regained for owner-occupied homes. Not only have we seen a decrease in average days on market but also an increase of values compared to those of 2012-2014. All in all the market has fared well for all parties in 2015.

Here we are sitting in the final quarter of 2015 ready to bring in the New Year and what can we expect. I am a student of my industry, constantly studying market trends and buyer and seller habits and I truly believe we are headed for an amazing 2016, and here’s why. Rates are still at all-time lows. Maybe not as low as they were at the beginning of last year but nonetheless lower than they have been in a while. I do see a slight increase in interest rate percentages this year but nothing that would cause a housing slump. We actually need a bit of an increase because there are still many buyers still on the fence about purchasing and when the pendulum starts to swing, many of those will move forward with their home purchase in fear of losing their chance at the still yet amazing rates. The most difficult hurdle I see for 2016 buyers, is the lack of inventory to choose from. If you drive around town you can see there is a lot of construction in the residential sector but coming out of the past few years where building was slow if not inexistent, will our supply be enough to account for the demand?

The one thing buyers should understand is that the days of thinking overnight about that house you just fell in love with are gone. If you don’t act quick that home could be gone. Therefore before heading out on that house hunt, make sure you have all of your ducks in a row. This includes getting your pre-qualification letter from your lender to submit with a contract and if you are a cash purchaser make sure your banker has provided you with a proof of funds letter so that you are ready to go when the time comes. As these buyers consume this lower than average inventory, sellers are going to be put in a very good position. The less inventory available increases demand and as such demand increases so will their home values. First we will see less and less days on market (which really has started already), then multiple offer situations, then values to follow. With the increasing values of seller’s homes there are some things to keep in mind such as the appraisal process; When values increase it may be very difficult for an appraiser to justify the price to a lender if your buyer is getting a loan but there are a couple of things you can do to help. As you do when you list the home make sure that your home is show ready for that appraiser. Another good idea is to leave a list of improvements and the cost of those for the appraiser.

There are other trends and behaviors I have witnessed this year and I am sure will continue into next such as the increased web traffic on national websites including Trulia, Zillow, and Realtor.com. We have seen a continuous rise in the amount of time spent on these websites and in practice we see that many buyers are choosing to call or inquire based on the results. One warning to buyers, be sure you know all the facts. Although these websites are very user-friendly sometimes the information may not be as accurate as you might think. Your local agent will be able to provide statistical information for property values and be able to guide you in the right direction on who to call for other information including school districts, crime reports, etc. I’ve got a warning for sellers also, if your property is listed make sure that your agent has submitted the correct information including bedrooms, bathrooms, square footage and most importantly the pictures. If buyers are searching for houses in your area and your pictures were taken from inside a speeding vehicle or even worse there are only a couple of pictures, it may be very easy for them to skip your home and move onto the one that they can see themselves in.

We are in the beginning stages of a great turnaround in our market. Locally we see both the residential and commercial sectors are thriving. New construction going in, mergers and acquisitions, even major landmarks being restored to their once known beauty. Entrepreneurship in small business is also growing. It seems around every corner there is a new restaurant, new clothing store, furniture stores and salons. I look forward to the coming years in Real Estate and I look forward to seeing you in the New Year.  

Focus On The Process

What’s your intent? Actions and reactions are all noticeable to the observing public but what is behind those observations is the more important truth and what you are doing to get there will be result in the success or failure of what you are trying to accomplish. In a perfect world every human being would be able to do what they love and have the ability to earn enough money to live the way they want to live. That is still possible through hard work and dedication but for most, you must start at A to get to B. That being said, you really must love what you do before you can do what you love. This goes along the mindset of it is what you make of it, and whatever you do, do it 100 percent. Doesn’t matter if you deliver newspapers and your goal is to be a chef, or you are the regional manager of a large corporation and you want to be the Chief Executive Officer; the intent of what you are doing must be your driving factor but your focus should always be the process. In the Real Estate industry if you are focused on money, you will never have any money. Focus on the process. The buyers and sellers. Their individual stories and situations. Genuinely take care of them and not because you have to, but because you want to. I have seen many come out of the gates swinging and after a couple of years they fade away. You know why? Because they were so focused on the next deal, the next paycheck that they didn’t take care of the people involved which lead to very few if any referral business. This isn’t only true in sales but everything in life. I am a big believer that everyone should have goals, intent and a big enough why to get where they want to go. And no matter what the process you take to get there, put your heart into it. In the words of Ron Swanson, “Never Half-Ass two things, Whole-Ass One Thing”.

Tyler Rhoads

Fall Housing Myths Debunked

Every year in every market the time comes when sellers start thinking of removing their house from the market in anticipation of the upcoming holiday events and celebrations to be had. In some cases depending on one’s personal or family plans that may very well be the best thing to do. However, for most sellers, their reasoning is a result of what they have heard, read, or thought about and doesn’t depict what the actual truth of what it is. Let’s look at some of these myths and pull out the truth.

“I listed my home just to see if I could get my price, but don’t really need to sell so we will take the house off of the market until spring”

Wow, that’s all I can say is wow. So many things wrong here, number one “I listed my home just to see.” What kind of real estate agent would list a house just to see? That’s not very good representation for the seller, it is an unprofessional industry example of a Realtor, and the reputation of the agent will quickly be noticed. The next issue is, “my price”. Being nice, I will say that this is most likely an exaggerated representation of what the home will sell for or a careful prediction of the seller’s home value in the year 2025. Otherwise known as Over-Priced! My conclusion to this would be to absolutely remove it not only during the holidays but all of the other days that end in “y”.

“I am removing my house from the market because I have family coming and several parties to host over the next couple of month”

This is a common one and completely understand that at times it may be an inconvenience while you are cooking and preparing but just imagine while you are preparing all day for that meal or transferring that Honey Baked Ham and prepackaged sides to casserole dishes to pretend that you’ve been preparing all day your house will have that aroma that says to buyers, I could see myself having parties here and this could be our home. Another attraction is that usually the kid’s underwear on the floor is replaced with a wreath on the door and the dining table usually looks like a carefully executed Pinterest idea, and everything is just inviting. Conclusion, keep it listed but have your agent note in the showing instructions your plans so that other agents can plan their showings around your schedule.

“Buyers are busy traveling and celebrating as well, so we will wait to put the house on the market until next year”

True, many buyers do put a hold on things until the ground thaws out. Just don’t forget about the other buyers. Those who have to buy because they have been relocated, or the investor that needs to buy before the end of the year for tax purposes, or sellers who have sold their house need to find a new one to move in to. Conclusion, there are always buyers out there in every market, every season, and every day.

“Everyone around us has pulled their house off the market too”

This should be an easy one so I will jump straight to the conclusion. Great, that’s less houses on the market for buyer’s to choose from!

My final thoughts on this is that there is really no such thing as a “bad” market. The market is what it is. No matter what the influence may be such as economic, wars, weather, seasonal, the market is the ups and downs of an industry. It is better for some than others at times and that is why there will always be people wanting to buy and people wanting to sell.

Tyler Rhoads

SOMO….So No!

Hit the gym…. FLEX. If you have been searching for homes recently on the Greater Springfield Board of Realtors® you may have noticed a little change, (note sarcasm). Recently our local multiple listing service has merged with several other associations in and around the area to form one giant database called SOMO Flex MLS; from which, homes, land, and commercial properties are searched. To put it nicely, big change equals big issues. I don’t feel the system itself is the major problem, although a masters in computer programing would be helpful to navigate it. I believe the fact that we have merged with 7 associations is the culprit. Where I used to have a pretty good handle on the inventory from studying multiple times in a day the hot sheet, which is the name of a search performed of changes since the last time you checked; now I have to weed through properties as far as Rocky Comfort, MO, Hermann, MO, Oak Grove, Arkansas (which by the way, I am not even licensed to sell in). Other time consuming tasks are making sure that I didn’t accidentally mark that your home located in Phelps Grove Park is waterfront, which is a required field, because that may be misconstrued as a flooding problem. Five months into it and there are still some growing pains but things are getting better. The more data that is input into the new system the more accurate it is becoming, and rumor has it there is a birthday list or wish list or bucket list for more changes to help improve the system. Please don’t mistake this blog as me complaining rather look at it like a public service announcement. Dear public just because we as Realtors® have access to more homes for sale doesn’t make us an expert in all areas. I own a hammer but I am not a builder, I have several pencils some even color but I’m not an artist, and I have a Real Estate license but I don’t know what your house is worth in Ontario, Canada. Make sure that you hire an agent that knows the area and can give you the best representation you deserve. And if you find some data to be a bit inaccurate on the public search engines, count to 3 and breathe deep because your agent is doing the same.

In other news…..our local market is doing great. Despite the technical changes, upgrades, and issues as mentioned in the previous paragraph, houses in every price range are selling fast. We think that is wonderful news and look forward to Springfield, MO growing every day.

Written by: Tyler C Rhoads

The Real Estate Career & Why I Don’t Play Basketball.

By: Tyler Rhoads,  Owner/ Broker RHOADS REAL ESTATE Springfield, MO

By: Tyler Rhoads,
Owner/ Broker
RHOADS REAL ESTATE Springfield, MO

Let’s start off with the easy question. Why don’t I play basketball? I don’t play basketball because the hoop is way too high. I am 5 ft. 4 inches tall and have no drive or desire to play the sport. I commend those that do but it’s just not my cup of coffee (I don’t drink tea).

Now let’s move on to the next topic about the Real Estate career. As basketball isn’t the sport for me, real estate as a career isn’t for everyone. In order to better depict what we actually do, let’s all turn our televisions off and turn reality on. Yes, the process of obtaining a real estate license is fairly simple when compared to that of attorneys, accountants, and brain surgeons; but having a license to do something and doing that something is entirely different. Let’s take that a step further and say not only just doing that something is different, but doing it well is at a whole different scale. From what I have learned and observed, real estate is an ongoing cycle of constant education and consistent superior customer service that leads to a predictable and profitable business. Let’s break that down:

An ongoing cycle of constant education. From loan programs to architectural styles, from zoning changes, to contract amendments, from selling trends to buyer’s must-haves; all things are changing. So, we as agents must know what is going on and educate ourselves on all these things to know when and how best to react to certain circumstances in order to successfully reach our clients goals.

Consistent superior customer service. What are our intentions? It should be on the client or customer at hand. Every situation is different but there are only two true jobs we have. We are hired to help buyers buy a house and help seller’s sell a house. Every interaction in between will directly affect how you do that. Examples of such are previewing property for buyers to make sure they are getting the best house they can afford. Answering and responding to calls in a timely matter to answer any questions they have along the way. If you don’t answer those calls for fear you don’t know the answer I recommend reading the previous paragraph again.

Predictable and Profitable Business. Since you know what you are doing and provide that great service, the public will notice and appreciate that. Therefore, no matter what the housing climate may be, you can continue to sell real estate. A real estate transaction is like choreographing a dance; it is a beautiful success when it is performed but it can never be repeated.

A Growing Company In Springfield, MO is Bringing Back the Basics In The Real Estate Industry.

By: Tyler Rhoads,  Owner/ Broker RHOADS REAL ESTATE Springfield, MO

By: Tyler Rhoads,
Owner/ Broker
RHOADS REAL ESTATE
Springfield, MO

In an ever advancing world of technology, we are bringing back the basics. Computers, tablets, smart phones, now even smart watches all have their place. In the real estate industry that place is in the agents tool belt and should not be their main sources of doing business; at least that is how we see it at Rhoads Real Estate.

Not to say that we use an abacus to calculate estimated mortgage payments or string up soup cans to communicate inner-office. We all have some sort of smart phone, computer and or tablet but we use these as our tools, not our business. Our website, RhoadsRealEstate.com, has even received national recognition from realtybiznews.com for design and ease of use, but again, this is a tool and not our business. Here is our thinking why:

Foremost, not everyone has a personal computer, a smart phone or even a cell phone to say the least, so strictly marketing to those with such technologies would be missing a large portion of the community. And, if we were representing you in the sale of your home we would want to market to everyone. Our website, along with Internet Data Exchange policies effectively reaches the masses with these technologies. We also advertise our listings by price in the local Saturday real estate section of the Springfield News-Leader so that we can reach the rest.

Second, from a communication standpoint; again, it is our tool not our business. With the ability to pick up a device to contact a seller or buyer or another agent to say “we accept” or “getting another offer” or “it just went under contract” is the most efficient tool to communicate. To email this same message, it may not be received as quickly or could somehow be misinterpreted and that would be a disservice to whomever is being represented.

Finally, real estate will be real estate. It is a tangible item with meaning and memories. It is in most cases the largest purchase or investment one will make in their lifetime. It is a legal binding financial consideration for sometimes many years. Any other service of representation or financial and legal matters, I think would agree. We don’t see attorneys drawing deeds on a QR code or financial advisors discussing investment options to a client via twitter. We may use our computer tools for research, but “in-person” brings about the reality of the product and the purchase.

We may be unique in our thinking, but everybody has their ideas, and these are ours. So, if you want to have face to face attention or the ability to talk to someone when you call and your thinking of buying or selling real estate give us call at 417-890-1455. We are here to help.

Dear Homebuyer: Where were we?

By: Tyler Rhoads, Broker Associate Rhoads Real Estate, Springfield, MO

By: Tyler Rhoads, Broker Associate
Rhoads Real Estate, Springfield, MO

So, you have found the house you would like to make a home; wonderful! Now what? You may be thinking…let’s start low and see how much they will come down in price. My response to that would simply be “No”. Let’s stop for a moment and think back to what your Realtor® did to find you this home. They’ve searched and previewed properties within your budget and criteria; narrowing their results by eliminating properties that do not fit those criteria or are over-priced in the market.

Next, comes the reasons: the roof is old, the kitchen is dated, the deck could be sealed and the landscaping needs work. Guess what? More than likely, the agent noticed those characteristics and priced the property accordingly; and if they didn’t, your Realtor® should have already eliminated that as an option. Also, keep in mind that due to such low interest rates at this time, you may be thinking of asking the seller to pay closing costs. That effects the sellers bottom line just as much as a contract for less than asking price. Let’s reverse this situation just for a moment. If you were selling your home, how would you feel about receiving a contract that’s 10,15, or even 20% less than the listed price. Most likely you would be insulted and counter full price, or even worse, reject the contract as a whole. So, let’s listen to your Realtor® and take their professional opinion about where to begin.

Now, that you’ve decided on the price, your Realtor® will now go over the remainder of the contract along with the terms such as inspections rights, title information, pro-rations at the closing table, possession date and other contingencies such as financing and other addendums. This part is very important for the obvious reason that this is a legal binding contract and more than likely for an amount greater than anything else you have purchased in the past. If you have any questions during this process, ask!

Once you have an accepted contract then starts the process to get you into your new home. Depending on your state and local procedures this process may differ in many ways, but for the most part you will first see the lender that pre-qualified you for the purchase in order to make formal loan application. If you are paying cash, you will want to speak to your banker in order to make sure that funds will be available on the day you have agreed to close on the property. You may also have a home inspection, which is always recommended in order to find any defects not known at the time of the contract which may result in costly repairs in the future. During this process, a title search will also be performed in order to make sure that the previous sellers are conveying marketable title to you. Other events will also take place such as the appraisal process if you are obtaining a loan or made it part of the contract. After several phone calls, a few emails and many signatures, I hope you have been packing because now you have made it to the closing table. This is where all final signatures are made and you get the keys. Congratulations on your new home!

You may be thinking this sounds too easy for such a large purchase. Guess what? With the right Realtor® It is.

A real estate company established in Springfield Missouri, Rhoads Real Estate was founded by Jack Rhoads and Tyler Rhoads, who envisioned an energetic brokerage, driven by passion in what they love to do; helping Buyers and Sellers. We are here to provide premier residential real estate services throughout Southwest Missouri while adhering to only the highest levels of integrity and professionalism; this is provided through knowledge and experience of the Code of Ethics and Standards of Practice as set forth by the National Association of Realtors® and the Missouri Real Estate Commission.
Visit us online at www.RhoadsRealEstate.com
 
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