Downsizing

Your Real Estate Today
Saturday, May 13th

Paul discusses downsizing and how to prepare your house for sale.

00:44:01

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Advice provided on the following program is on an individual basis as they should not consider today's discussion as a recommendation for. Many investment and she carefully evaluate before investing. DC you'll be seated. Just told. You teach us. Hello and welcome happy Saturday this is hall Jamieson and host of the show you real estate today I was Jamison realty with Keller Williams and I and Jamison property management as well. We're glad you're with us and I'll look forward to spending time together. Jesse and are running solo today down here in the WBT studios and yes we our lives. And we thank you for tuning in today if you're out and about. Tool and around or just sitting back in your home and listening to us today we've got so much to share so much to talk about. Gonna put some facts and figures out there for you today. Gonna talk about downsizing. We're gonna talk about. One of the areas in your home that does not get talked about very often and probably need some love. We're gonna talk about all kinds of things but more importantly. As always. The phones are open. 704570. Yea 11107045701110. If you wanna talk to me you have a question about real estate. It's something that you are out there are doing today if you're a buyer. You're a seller. You have issue with your home. With the nature away with that title or with. Investment property or your thinking about selling her willing to make changes. Whatever real estate question you have in your mind. We'd love to chat would you I've been out here for. Coming up bond I believe it's going to be close to ten years here pretty soon on Saturday suddenly I would need a little of government grew. And have been here and been alive for most of those years and so we're here. If you wanna call it's not the one of those shows where we chastise issue we actually are here to provide information. 7045701110. And since I'm by myself you know I don't don't hesitate Carl if you go outside you wanna chat about. So. Anyway. Here's here's here's kind of what I'm Franken today. We're gonna do is I think it's always geared to really can I say you know you're you're reading a lot right now about what's going on in the marketplace. You're reading a lot right now about demand for real estate and it has been from senator there's been some pretty good data. It's out there right now about demand and lack of inventory. So let me give you the real date now of course it's April data sense. The many data. And then yet. So we gonna talk about April dated just kind of came out. Here are some interesting facts okay. Let's start with new listings. Over over the last year from April 16 day April 17. Torn seventeen that is. The number of new listings has gone down just under 4%. So I mean there's there's good room where they April day April. And that comparison meaning comparing April 16 April 17 is down about 4% now. The year to date Tony sixteen year to date Tony seventeen comparison. I'm. Not saying that little little bit up but not much more than that. Close sales. Last April compared to this April was down six point 3% again. Moroccan and inventory shortages. Days on market. Is down 21 point 7%. April torn sixteen last year it was about sixty days. And now it's about 47 days. Cumulative days on market 73 to 56 about that same percentage. Average list price April 2016 compared to April Tony seventeen. Is up. Four point 1%. From 3191300. And Tony wanted to 332003. The tiny full. So prices are going up. And the average is gone the average sales price not list price sales price. Has gone up from 251290. Took 27500491. Up almost nine and over just over nine and a half percent. So if you look at the list price that's the price and it's put out to list for that's the average weather cells or not. Sale price everything that is sold. Has gone up over nine and a half percent. And that's huge. Just huge. That's super huge okay all right. Couple of other things. This stat I always like percent over original list price received so if it was listed for a 100000. How much did people actually pay for it. Right. Last year. It was about 96 point 3% so 96300. Dollars if it was listed for a 100000. This year is 97200. Dollars or 97 point 2%. So we're creeping up pretty darn close to that list price all right and beat immediate bettered Hagelin and there well when you don't have inventory. You become haggle free. You know and the people that wanna hagel are still look at perhaps it's my turn so that's really what that says. So the inventory of homes for sale has gone down 20%. And that's just because there is enough. How much inventory is there right now you may ask this last year was just under three and a half months. We are now at two and a half months. So. That means. Work with an experienced real church you wanna violence. Those who don't know what to do all right. Another interest things stat that I've not really talked about very often for us investors out there. In those that investor real estate are thinking about it I always like to look at rentals. And I find it really interest during the lease price or average lease. Monthly lease price last April torn sixteen. What are his thirteen 172. Dollars. This year it's 14182. Dollars so rants April of last year to April this year have gone up just over 8%. So. That's a good number if you're an investor you like to see an 8% increase. Every month. Yahoo!. Protect. The number of actual. Active Reynolds. Is gonna. Has gone down seventeen point 8%. So what that means is a lot of people that have houses for rent before what do you think they were doing. There were sound they're now selling. So you renal inventory has gone down. And you were rental. Price. Has gone up. So if you're an investor. And you never know property from you look at Ferraro property the market and demand is there I keep getting asked that question all the time more. You know with the hot and go home market is hot as it is. Why. What I investor right now in rental property let me just take the demand is hot because. One of the number one challenges and we'll talk about it later saw probably repeat myself for the first time home buyer. Is the ability. You come up with the down payment. Still a challenge. So. There's a ton of first time homebuyers do you know what percentage of the market right now as a first time home buyer. Would you care against Jesse would you care to get a mama I guess the solid. 18%. How about fifty who goes wrong I'm not a fifth. Statistics are showing now that needn't Breyer is 50% of those fires on average right now our first time home buyers. In that crazy. So that shows pent up demand that's according to REALTOR.com. All right. So. What else are we gonna talk about today you know it's kind of funny. I came across this little check list. And I'm gonna try to put it on our website if you're moving. Your thinking about moving. One of the things that I found non interest and I think. I really don't know how to operate interest but I saw missiles check wish when I did a search for. It's a checklist that tells you all the things that you need to do if your movement. And one of things I pulled out is who descended change of address to. And this is a really cool checklist. So if I can actually get it into a format where I can save it. And print it and put it on my website if you wanna. You can go to my Jamison homes dot com and I'll try to get it there. Or you can email me at Paula my Jamison homes dot com and I'll send it to you. But it's a pretty cool checklist I'm gonna start including some things. There's a lot of people here. Mine and no one was kind of funny you know after moving to notify your cleaning service well. You know what you and clean when you're not there. You know. Some of it was kind of funny. But there was some other stuff I. Would definitely not think of unless I had this checklist. So. I think it's a good thing. So you know and of course all the people that you owe money to don't give them your new ad and now I'm just kick so. Make sure yeah if you if you have student loans there's one they do wanna remember to make sure that the student loan payment. Apology because it could be detrimental. To your credit especially if you're trying to buy a house. 704. 57011107045701110. Again we're gonna talk a little bit today about downsizing. And some other fun facts that you're gonna love to hear about as well as the party your home. It continues to get forgotten 7045701110. To show you real estate today. Happy Saturday where alive here from the dead EDT studious will be great. Hello and welcome back to the show you real estate. Your host glad you're with us today and excited to be sharing things review. OK so there's a little interest things factor in your welcome to call in if you are a. Person who loves. Trivia. 7045701110. And the question for you is this. Do you ever wonder why land is called real estate. The term est of course means land and building upon the land. But the word real. Pleased derived from the Latin word for. What. It's either pay. Earth. V. Thing. C. Person. Or. Is it gave the earth. In real estate of course Bailey earth. He thing. C. Person. Gordon. 70457011. Tennis you know the answer that question. And it's my immediate prize and at fort. So what's back. So the word real in real estate. Latin derivative meaning. One of those things contract. All right so welcome back to the show you real estate today ample Jamison I'm your host. Perfect game show. You're also today and that's our renewed theme song I'm Catherine talk about it are. We'll work on it it's probably not that one but there are correct art so. Let's talk about. The part of your home while we talk about that later okay we're told there were were gonna lead down to the side let's talk a little bit about. Downsizing and the root of where that came from okay so this week good friend of mine Melinda Johnson with the Charlotte Observer. Who writes for Matthews mentally ill and kind of community sections Hashemi. I have a designation called SR yes it's a senior real estate designation. Got a few other ones too but. What we learn and what we talk about and what we're passionate about is who is also real estate in working with seniors as well as other folks. And she asked me about the designation and what's going on in Charlotte and we had a great conversation and and so. The primary vein of the conversation when most people talk about. Seniors. And or IR or those of us that are slightly more mature. Is. When people sell their home to go into an assisted living facility. And I said Maine day there are so many of us that. Have other types of needs related to. Seniors changes or housing changes could come. And so I thought about what those needs might be so I kind of came up with a little polluted list of things that we can talk about. First of all. If your kids are gone and you don't want them back. So you're live and in a pretty good size home all the kids are gone they've graduated they now have jobs. There out your fridge. And you're ready to go from a much larger home and course storing all the stuff that they left behind and didn't take Wear them. To. A different place. And so you're ready for them not to move backe and the first signal is get a smaller house some people convert their room that. Others. Get a smaller house. I call it room for the grandkids only. So. That's another. Interesting way to look at this transitional house okay. And also. You no longer as I said earlier we want to be the storage facility for all of their six. Now Jesse do you have stuff that your parents house. I've ID and its leader in storage. In. Somewhere off somewhere road order it's in a trash can't. OK so they've they have they have they've made the change only to clean out his had been. Twice now on to my knowledge. Her parents couldn't script. So they've there'd if they have does that designated that it is time for them to talk stopped caring for your thanks okay. You know another is they're just ready for change. And sometimes that can be taking care of less so you have more time to travel taking care you know not yet you know kind of done with the yard work fame. And want less yard work. One to be able to. Spend more time traveling doing other things getting an RV. Whatever the case may be and it doesn't always mean. That they're looking to slow down they might be looking to speed up. And the less ancillary things I know that that to our folks have to worry about what I hear from them in hand even what I think in my own head. The better office. And it kind of frees you from some of that so I was I was glad to have it. Glad to enjoy it but go less of it. I know that many of my clients enjoy and it's it's just a little bit to change so they want more time. You know I can't tell you how many folks I talk to. That downsize. The have a storage building. Core storage. Locker. Full of stuff and they've headed there for two or three years size I always ask you go over and like visited. I mean do you go to take anything out of that they should not. We have been over there in three years so they're spending money for all that stuff so there's all these rules you know if you haven't touched it in six months you know you don't near to throw to worry. I'm not saying do you go out Merck. Tom. I guess well I'm guilty to yourself on this thing soft because there's you know sometimes you just don't feel like Haslem when it. And then that sometimes are just some memories you don't want to let go of and you wanna save for your kids. I guess the question to ask him is do they really want it what are they gonna do with a when they get it right. And I can speak to that from experience I don't know that and that my kids want my football trophies it. I guess I should ask him. And probably should I can while I'm still gonna ask unless it's a Heisman Trophy. It is not a Heisman Trophy well there's your answer and that exactly I think Sinatra and he can't melted down and make any necklaces out of and you are coming. Art so. So if you're in the mode of downsizing if you're thinking about it and I work with a lot of folks who do. I think there's a lot of things to think about their and so here's some things I want you to plant in your head if you're considering that. But I want you to think about you know how many rooms do you actually use how many rooms do you actually need. What is. That sweet spot for you in your family do you need four bedrooms do you need five bedrooms do you need six bedrooms. And then you know some of these came from this site I took from other things like you know how many. Coming in their rooms are you paying real estate taxes for I thought that was confront. Okay. So. The other side of it is you don't what does that look like for you. Financially. You know is it better to downsize or does your downsize it to the financial decision make sure you weigh out all the aspects 'cause you may end up. Downsizing in paying more. Then if you stay need to. And stayed where you are so if you have three storage buildings that you need and you only save a hundred dollars a month. You're probably better off to stay where you are okay and also the yard work time now this thing I can attest to firsthand. I grew up doing yard work. I did yard work. I'd done audio artwork. I don't wanna do anymore yard work. I doesn't mean I don't wanna yard. I just don't wanna spend all day in the yard. But if you like the yard. Then probably our Condo is not for you. But. You can reduce. The amount of yardage. And make a better decision around that. Just make sure you check with the nature away because if you like to have herb garden and some of the other things that you always are always amenable. To have and those things. So just so you don't ask the question if you move into a plan neighborhood and your garden person repeat person. In those kind of things that you used to do honor. You know you like to have a wood shop in your garage make sure you're able to do that with PH or way that you have to so downsizing can be. A really good advantage for you if it doesn't crypto lifestyle that you wanna continue. To do that aren't. Well we've got to get a break totally okay. Hands that went fast what are you doing. The show your real estate today if you're out there and you've got a real estate question call me 70457. 1110. Can assure you rural state today we're live from the WBP studios. Here in down town. Charlotte tan we'll be right. Welcome back. This shows your mistake today I'm not exactly news but. Sort of real estate news. This show your real estate today and yes I'm alive from the Jamison realty currently. Studio I'd take their name off since I'm here. 7045701110. If you'd like to call if not we got lots of talk about 70457011. Town hall Jamieson your host. When Jamison realty with KW and Jamison property management. We were talking to break about downsizing and really to sum that subject up I think you know I do see a lot of people now wanting to handle. And take care. Less so I think it's important to know and to feel. The the trends that things are going smaller and those of us that her getting a little bit older. We like to take care less we just we just do and I think it's a little freeing in some sense so. Kind of many subject. I do work with a lot of folks. That are holders. Over fifty. But. I think it's important that you. You look at all types of things. When you're looking at downsizing or before I leave that subject John you wanna. Share some about downsizing. Eric go have a quick question I'm quite sure go ahead. I mean mid fifties yup. And we have clear rule where he won't pull down here from ought in the area in the past year old property up there. Is there a benefit to put a larger down payment in my age. All where I'd be better off what the twenties or 30% down in and to invest my money where the rest of my money is about to. All right well okay just I'll give you my disclaimer I'm not a CPA police and soldiers and create for more information however I did have a good night sleep last night. There ago. I I'm right there would be okay. Right now if you're pre approval was a rate four point one something like that for 90% are triggered a look around at what point wobbly ya okay. I mean. In my opinion. You know the the 20% down at a minimum so you avoid PMI you know for the private mortgage insurance or whatever your Brian. So you're not paying for the extra insurance 'cause you don't have the equity there. Her but I guess the good challenge that we all face and again it's to your own opinion related to how risk averse you are. That's cheap money. Aren't and so for me I like. Having. The cash. And I also understand for some people. Even though we're at at that middle life stage. They don't wanna have much debt so it really depends on where you are. So I always kind of play the middle I tell people you know if it if it you know do what makes you feel comfortable at night when you lay down on the pillow and and you know you were to have a pick up do you have enough cash she didn't put too much into your home to weather and up and down. And invested elsewhere. So so if there were many if the money's cheap enough. I'm kind of like well let me see if I can put it to work in a better way somewhere else. Right which I'm pretty sure he cared offered side. Yeah I think so too and it's very inexpensive and then when you. Complement that with a deductions that we still have. Ambien homeowner and the interest rate deduction and things like that I mean it could make citadel even a little sweeter. Or hurt our corporate murmured my apartment number my pleasure John have a great day for your group and welcome from Boston. Start 7045701110. You have a question how are gimme out okay are. One of the things I wanted to talk about kind of in their final hole a couple of segments of the show. Is one area the house that gets neglected and then we're gonna talk about repairs and it in a more general sense related to the transaction. But one of the areas that we never. Talk about it. Is. A garage. To garage door. You know it's a life goes up and down but. It's always there and when it doesn't work. You software. Especially. When the power is out and your outside. So industry. But. The garage door needs love too you know and I think that that is set a song. Now I don't think so okay. Where we can make it more we can definitely make it anywhere we can yeah. So one of the things that I think I didn't ever paying attention to and we're speaking first of all about and attached garage. That the energy efficiency in your home is also directly correlated to the shocker the IR value or. Insulation energy efficiency Barbara blob of your garage door. Can affect your monthly heating and cooling bills. Unattached garage. Injure garage doors sealed does the seal work is Cecile worn out. I cannot I just I just. They every thought about it. Sorry girl store so anyway. What we've started doing my wife and I is. We call log rise store company usually garage stored doctor and they come out. I don't know if they advertise on the used to think they do. They come out and it's like a hundred bucks. And may Greisen. They checked the springs they line up. Little eyeball things and they adjust the tension in the door and they. Do you all of the things and that you need to do it make your garage door happy. And so I have them come once a year and I just think it's it's a real good practice to get into and a couple of things that. Were triggers to maybe your garage door needs to. Get some love running as you can't let the door manually. This indicates that the springs are unbalanced. Another thing is if the door sags. Are sagging wooden door and actually there are a lot of wooden garage doors out there. May need. Knew it's mentioning rods adjusted. Warrick could just be rotted due to moisture damage may turn. If you find the door hard to opener close it might be due to a broken spring or malfunctioning signal or a problem with its tracks. Or very simple things if the door closes too fast. It probably has a broken spring. Or it's just an hour hurried to get you out. If you hear a lot of noise when opening her clothes and anger garage door. Several potential problems. Problematic springs dory imbalance garage door opener motor issues. What is your garage door. Sound like Andy Rooney. Still wonder why me. Your garage door and went down fast then. What if your garage door is just plain. Ugly. What if you've got ugly garage door. Yes there is such a thing and remember garage doors can take up to 30% of us the exterior surface of your home depending on the size of course. Can you paint it. Mean ponder that for a moment. You can actually. Now. Of course it's woods you can sustain it. But if you can't panic even if it's a metal garage door and I would recommend using an oil based paint on metal garage door but. Think about. Making your garage door happy and nice color. A dead end and changing up. But I say call somebody like her are stored doctor have them come and give your. Garage doors to you know I know that there's sometimes on. What is that website with coupons like living something. I'm living social living social media group on they'll have a group on for a garage door tune up for about 89 bucks. That's money well spent. So think about that can now make in your garage door happy. So what if your garage door cannot. Become a beauty queen and of itself garage store's new ones range first littlest 750 dollars. Up to them to a fancy should Nancy. Wouldn't garage doors can run you about 4000. So. You know garage door is a fashion statement. But most importantly walk away with this fun fact. That garage doors have an. Directly affect the energy efficiency. If you're home yea garage stores we love you. We're not gonna forget cute. Except in our will protect. Our. What we're gonna talk about the remainder went what do we got two minutes what we're gonna start to talk about now what we're gonna finish talking about. Is a great subject. Unless you call and have some Mel 7045. Sevens or eleven times. Is something that I had I got. But a lot of calls after the show. The last time about was. As you talk about real estate transactions. The subject of how to handle repairs. Keeps coming up. And X inexperienced. Agents. Handle them one way. I gotta tell idea I handle them and a lot of my compatriots. Handle it another way. There is a clear way. To handle repairs. And first of all I'm making the general statement and then we'll talk about some individual things okay. The general's statement is that if you are a seller. And the buyer has done an inspection report and they have at least two of repairs that they want as the seller. My. Thing is we do not be the performer of those repairs. Do not go hire the people to perform those repairs. Talked to the buyer. Give them. An amount of money so that they can go make theirs repairs the ways in which they want to make to them. We. As sellers should not. Be making those repairs a yourself. Or he. With companies. That may not do it in the manner in which the empire is not satisfied and you just threw money out the window so. We're gonna talk about some individual repairs we're gonna talk about Hannah handle those repairs. We're still here. To show you real estate today and yes were alive. Hall Jamieson here we'll be right back on his top 1110. WB TV. Show your realistic today where we're talking everything. Real estate everything. Real estate tribute no one actually got the answer that question and by the way really in real estate. Means. Okay we'll be right back. Check may show. I had these don't know really don't know. We're we're just about. Doug I can't believe it went bad fast start the show your real estate today welcome back I'm hall Jamieson your host Jamison realty with Kelly Williams and Jensen property management. We were we were kind of doing some trivia stuff and some fun stuff you wanna call 7045701110. If you ever realistic question. Here's a U fun facts she might like to know. Before we get back into the repairs you know that most of the people really don't realize that McDonald's is not just a verbal burger flipping restaurant chain. It's one of the world's. Best and biggest real estate portfolios. In a while a franchisees are flipping burgers. McDonald's. Is getting paid handsomely for some of the best commercial real estate in the world. The White House you know White House is valued at approximately. 110. Million dollars. There's the appraised value of that in the United States there are five times as many vacant homes as there are homeless people. That's an interesting stat and of course good old you talked. Has been giving free homes to the homeless since 2005. Which has cut chronic homelessness. By 74%. I don't know if that's true you're not we'll see. Let's see what else do we have. We have most people don't realize but the Egyptian pyramids. Our. Situated very close to the city of Cairo OK I would care about that. What else do we have here. There's a very very Intel and I can't even pronounce it will cause that's built in a meteor crater. All right so anyway. And some dude that traded up from a red paper clipped house owning that's quite bartering I guess. All right. OK so full we get to Kamal we're gonna talk about a couple of things one is as you talk about repairs. As a so our. Or even a buyer wants you to be aware that you're going to see in your inspection report. Hey the inspector's job is to. To basically take it if it's an older home and bring it up to today's standards so it's a pretty thick report that may appear to be a little bit scary. But if you go to guys like Preston sailing you're gonna find out they're not scary. They're just a lot of things that they have to stay in there and that they may have issues. That may have been code at one time when it was built and may not be to the current code today but two weeks later won't be encode Denny either so has coach change. We're gonna think about the roof. You know there's a lot of things around the Russa and the way that they're constructed in the event send all the different things that work fine and are fine and operating fine but not to today's code. But some of the most common things I see are stains. A lot of times it's noted in the report that there are staying staff asked the homeowner whether those stains or old or new or active or not active they don't know. Most of the times we find their inactive and older on the roof has been replaced. Another is. Around the boots we typically see repairs that are happening around the vent pipes. And those things are an easy fix so. You know I think those boots are like forty bucks and another twenty or thirty bucks to fix some sort of give Democrats let him go fix. All right before we go on to a crawl space. Let's talk to people. Hello how are you. Tomorrow I think what that might cause of course how can I help you friend. I knew the questions are made regarding my rent and property return manage store I years I can now okay. And now I'm thinking dope and mingle or school. Up property manager Ken. And what should I be looking audience some of the trees. And then me Saturday is that by. Basically old basically at or a check. It's the end of the markets are beginning of the bond coincidental right and let the public be rendered it meant that it was. Okay and the house is only are you so very fortunate. Okay well as you know Kamal mama I have a property management company so let me give you some tips as to what you should expect okay. And you should call to a few companies to make sure you're comfortable and there's a good synergy with whoever you pick Coca. The very first thing is this week. The feet that your typically gone missing is 10%. Of the monthly rent. That's. Pretty much what's across the board now there are some limited service companies I think there's even a place out their cult property management warehouse. You get what I'm saying. You can pretty much get whatever level of service here after but the full service guys they're gonna charge a 10% so. If you want the property managed and you wanna check at the end of the month that means they're doing what the name says. Managing the property. And you are the boss the fiduciary duty is to use the owner. So what you need to ask is first of all do you today or who runs the company owned rental property. Do they understand what it's like not just to manage it but opponent. Okay. The second thing you need to ask them is what is their screening process. How did they find tenants how do they screen them is it just what reports today pool what research do they do. Before they put a tendon in your house third you ask them do they do any inspections and if so how many and how often. Next you asked them how did they handle repairs to your home. What is the process for handling repairs and do they own their repair company and its handling your repairs. You wanna ask those questions and that's a really good start. This is not some may I quote the very depths are still in the week and next week. Of course it's 846. 3663. In Kenya on one other quick question of course. The public is up this year it's significantly. Improved. Not tactic beat them but yes so is it that broad idea at the gate banned by some premiums. A lot of continue. Doing this because I think it meant you didn't let alone though that maybe might do well. Right now I don't see anything leveling for the next year or so if you want to try your hand and investing and you're not quite ready to cash out and again I don't have a crystal ball. But I think were strong for about the next year at least if not longer. But if you have that that double doubles you've doubled in the value of your house number one. You know you you wanna talk to us CPA or an accountant about one of the tax ramifications do you have you lived in that house yourself c'mon now. Though HBO dvi port because they'll quote Broder that I cry right. And now that India has and I grown tremendously fit right in chapel. Yeah well what's your all that's correct what you're gonna have to do is ask them what is a tax ramifications for U. And for some of my clients it's about 40%. So what you wanna do is then due at 1031 exchange which is a tax free exchange. However. What you have to think about and we can talk about this when you call. It is okay what are you going to replace it wit and how hard it is to how hard is it to find that right now you know low inventory market. So you weigh out. Income. Persons. The cost of replacement. Vs tax. And kind of make a decision based on what's best for you and where you're going over the next couple years. Or parent or a fairly. Good doctor. You can ask for me that's trying book and now I'm there and if it's just property management you can ask for a fellow by the name the chieftain. And are often. And now but if I'm there I'll certainly be glad to take your call. They're a little. I got hurt I got. Yeah that's all I got okay. Well thank you for today where I guess will pick up where we left off next week insure your real estate today I'm Paul Jamison you can call me at 846 done. 8463663. Or on the web at my Jamison homes dot com. God bless you all happy Mother's Day to you mothers out there we love you and appreciate you. Have a good Saturday. Take care.
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