The Boulder-Broomfield residential market has had busy late winter/early spring home sales these past several years. Contrary to popular opinion, early spring is a great time of year to list your home. Inventory tends to be lower than at other points in the year, and there is usually a pent-up buyer demand that survived through the winter months raring to buy something.
If you are considering listing and selling your home in 6 months, there are some things you can be doing between now and then to prepare your home, and yourself, for a successful sale. The statement that “the devil is in the details” certainly applies to preparing your home for this event. If you take the time to plan for and to address the details now, it will pay off later.
1. Take exterior photos on sunny fall days. Capture the fall foliage in and around your home to use in marketing materials early next year. Continue to take photos if your property benefits from winter views of the mountains that are normally obscured by foliage in other months.
2. Plant bulbs before the end of October. Bulbs are an inexpensive and easy way to add color to our yards early in the year. Chose deer resistant bloomers if deer are an issue in your own yard. Plant bulbs in showy groups of 12 or more together for larger splashes of color.
3. Clean out the house; “less is more” in showing your home. Identify several charitable organizations that will accept your household and clothing donations. Find out which ones will pick up from your house to eliminate the extra step of dropping things off to the organization. While everyone has their own method, I have been successful with working one room at a time. Make a list of the items you are giving away, obtain written receipts for your donations, and include these donations as deductions to your income at income tax time. Be sure to check with your accountant or on-line with the IRS to familiarize yourself with current rules on non monetary charitable donations.
4. Get a home inspection done, especially if the home has not had an inspection in the past several years. Identify what issues may exist and start addressing them. Look for specials offered throughout the winter months when many trades are slow and are soliciting for business.
5. Create a “honey-do” list, or hire a handyman to address all the small items that need attention, such as that loose front door knob, or the broken latch on the fence gate. Finish items that you have been meaning to “get to” for sometime. Create the list and work your way down it to complete each item over the next 6 months.
6. Conduct maintenance, especially on your furnace, fireplace flue, roof, or gutters. Paint the house exterior now if you think it may be issue when you go to list the house. Waiting to paint the exterior in March may not be a viable option if we have another snowy winter.
A little advance planning and work can help you have more control and sanity when you list your house and your house will show better for all your efforts. If you need help in determining what needs attention and where to start, call your trusted Realtor to help you.
Angela McCormick
Wednesday, October 17, 2007
Sunday, October 7, 2007
Market Intelligence
Coming to America -- to Buy Homes
Highlights from NAR's Profile of International Home Buying Activity
by Keunwon Chung, Statistical Economist
All real estate is local. But not all buyers are local. During the real estate boom, many home buyers were from countries outside the United States. In some states, foreign buyers accounted for a significant share of REALTOR® business.
To ascertain the extent of international homebuying activity in the U.S. post-real estate boom, NAR surveyed REALTORS® across the nation in mid-2007 to determine the extent to which their business was with foreign home buyers. The results of the survey – published in the 2007 NAR Profile of International Home Buying Activity– show that international home buying activity in the U.S. is still significant. Below are highlights from that report.
REALTORS® and Foreign Home Buyers
Despite the housing slowdown, international clients still accounted for a significant share of REALTORS® business in the U.S from April 2006 to April 2007. Almost one third of REALTORS® reported that they had some business with international clients during that time period. More than half of those international clients actually purchased a home. Eighty-six percent of REALTORS® who sold homes to international clients reported that those home sales accounted for 1-25 percent of their transactions. For seven percent of REALTORS®, over half of their transactions were with foreign buyers. Eighteen percent of all REALTORS® who had international clients had successful home sales transactions with those foreign buyers.
International Home Buyers
Foreign home buyers come from around the world, buy different types of properties at various prices, and plan on using the U.S. property for different reasons.
Home Buyers from Around the World. Buyers of U.S. residential real estate come from many different regions and countries around the world. The majority of foreign buyers – 33 percent – were from Europe. But buyers from Asia and North America (outside the U.S.) were also very active, accounting for 24 and 23 percent of international clients, respectively. Latin America was home to 16 percent of foreign buyers, with Africans and those from Oceania accounting for 2 percent each. Among individual countries, the largest share of foreign buyers – 13 percent – were from Mexico. Next was the United Kingdom, which accounted for 12 percent of foreign buyers. Canada, India and China rounded out the top five countries of origin for foreign home buyers in the U.S.
What They Bought. Detached single-family homes or townhomes are the most popular housing choice among all home buyers in the U.S. The same is true for international home buyers, but foreign buyers show a stronger preference for condominiums/apartments compared to home buyers in general. In 2006, condominium/apartment sales accounted for 12 percent of all existing home sales. Between April 2006 and April 2007, more than one fifth – 22 percent – of homes purchased by foreign buyers were condominiums/ apartments.
Price of Homes Purchased by Foreign Buyers. The median price foreign buyers paid for a home was $299,500 – significantly greater than the national median sales price for all of 2006 which was $221,900. More than a fifth of international buyers purchased a home that cost between $200,001 and $300,000. Fourteen percent of foreign home buyers paid more than $750,000 for their U.S. property.
Financing the Home Purchase. In 2006 more than 90 percent of all home buyers purchased their home using a mortgage loan. The majority of foreign buyers also used a mortgage loan to finance their home purchase, but the percentage was much smaller. Sixty-nine percent of international home buyers used mortgage financing, while 28 percent purchased their home with cash. Three percent of REALTORS® were not sure or did not know how their foreign clients financed their home purchase.
The proportion of foreign buyers who paid cash for their home was much greater than that for the general home buyer population – 28 percent vs. 8 percent. This could be due to the fact that those international home buyers would be expected to be wealthier households with ready cash on hand. The tax benefits of mortgage interest deductions may not apply – depending on the buyer’s home country’s tax code – which lowers the incentive to take out a mortgage.
Why They Buy. The majority of foreign buyers – because they are not U.S. residents – purchase homes for other reasons than as a permanent residence. Almost half of them – 47 percent – bought a U.S. home to use as a vacation venue for family and friends. Twenty-two percent purchased a home as a rental property for investment. Nearly a third – 31 percent – of foreign buyers purchased a home as both a vacation and rental/investment property.*
U.S. visa rules only allow non-residents (unless under a student or work visa) to remain in the country for six months. Because foreign buyers are non-residents of the U.S., most of them plan to spend less than six months in their U.S. home. A small percentage – 6 percent – spend less than two weeks. Forty-four percent intend on using their U.S. property for one to six months.
Where They Buy. Foreign home buyers purchase U.S. properties everywhere around the country, but two regions and several states dominate the list of locations. The South accounted for the largest proportion of foreign home purchases – 49 percent. The West was also popular, with 31 percent of foreign buyers purchasing homes in that region. The Midwest’s share of foreign home buyers was 11 percent, and that for the Northeast 9 percent.
The number one state for foreign home buyers was Florida-- the state accounted for 26 percent of all international purchasers. California was next at 16 percent followed by Texas at 10 percent. The fact that these states were the top three locations for foreign purchasers should come as no surprise. Each of these states is a major “gateway” for visitors to the U.S. from other countries.
Challenges for Foreign Home Buyers
While 32 percent of REALTORS® report having had international clients between April 2006 and April 2007, not all of those clients were able to successfully purchase a home in the U.S. The survey did ask why international clients did not purchase homes. Almost half of respondents reported that the cost of property was the main reason for an unsuccessful home sale.
But nearly a third indicated that U.S. visa restrictions were barriers to buying a property in the U.S. In a previous survey of international home buying activity focused on the Florida market, U.S. visa rules were a major point of contention among many respondents. They claimed that the six-month stay restriction is insufficient for some potential foreign buyers – particularly among those who are no longer working. A retirement visa of some sort that would permit a longer continuous stay in the U.S. would undoubtedly enlarge the pool of potential international buyers. The national survey results support this contention: 34 percent of REALTORS® responding to our survey expect that foreign retirees could be potential buyers of U.S. real estate.
Conclusion
While U.S. housing markets are no longer performing at record-breaking levels, U.S. real estate is still considered a prime investment opportunity for foreign buyers and a “safe haven” in which to put their money. Whether they use their U.S. home as rental/investment property, as a vacation home or both, non-U.S. residents account for a significant share of home buying activity. It is likely they will continue to do so. With the weakened U.S. dollar against foreign currencies, those currencies buy a lot more than in previous years. For example, the British Pound Sterling was worth $1.44 in 2001; by 2004 it was worth $1.83. As of mid-year 2007, the pound was worth nearly $2.00. The Euro has also increased in value against the U.S. dollar. More purchasing power for foreign buyers means they can afford “more house” – particularly in a stabilizing U.S. housing market.
We live in a global economy where there are virtually no trade borders. The Internet is accessible from nearly all countries around the world. Web sites display information about U.S. real estate to any potential home buyers regardless of where they live. And as more and more people in different nations recognize the value of owning property, the opportunities and challenges for real estate professionals to broker U.S. property to foreign home buyers are numerous.
Notes on the Survey
The survey was conducted in May/June of 2007. Results were based on responses from REALTORS® who had at least one international client during the then recent 12-month time period; thus, information in the 2007 Profile of International Home Buying Activity refers to foreign home buying activity between April 2006 and April 2007. For purposes of this survey of International Home Buying Activity, an international or foreign home buyer is defined as one who principally resides in another country (outside the U.S.) and who is not classified as a foreign-born resident of the U.S. International buyers are not U.S. citizens (either naturalized or native-born and living outside the U.S.), a U.S. immigrant, or a foreign student or worker on a temporary visa.
*The survey offered a third “housing choice” option – time-share. But statistically the share of buyers purchasing a time-share property was zero. This result may indicate that the REALTORS® involved in international sales do not handle time-share transactions for those clients. At the same time, the results do not suggest any trends relating to the time-share market. Rather it is likely that REALTORS® – who generally assist clients in the buying and selling of homes – may not consider time-shares as part of their normal residential brokerage business.
Highlights from NAR's Profile of International Home Buying Activity
by Keunwon Chung, Statistical Economist
All real estate is local. But not all buyers are local. During the real estate boom, many home buyers were from countries outside the United States. In some states, foreign buyers accounted for a significant share of REALTOR® business.
To ascertain the extent of international homebuying activity in the U.S. post-real estate boom, NAR surveyed REALTORS® across the nation in mid-2007 to determine the extent to which their business was with foreign home buyers. The results of the survey – published in the 2007 NAR Profile of International Home Buying Activity– show that international home buying activity in the U.S. is still significant. Below are highlights from that report.
REALTORS® and Foreign Home Buyers
Despite the housing slowdown, international clients still accounted for a significant share of REALTORS® business in the U.S from April 2006 to April 2007. Almost one third of REALTORS® reported that they had some business with international clients during that time period. More than half of those international clients actually purchased a home. Eighty-six percent of REALTORS® who sold homes to international clients reported that those home sales accounted for 1-25 percent of their transactions. For seven percent of REALTORS®, over half of their transactions were with foreign buyers. Eighteen percent of all REALTORS® who had international clients had successful home sales transactions with those foreign buyers.
International Home Buyers
Foreign home buyers come from around the world, buy different types of properties at various prices, and plan on using the U.S. property for different reasons.
Home Buyers from Around the World. Buyers of U.S. residential real estate come from many different regions and countries around the world. The majority of foreign buyers – 33 percent – were from Europe. But buyers from Asia and North America (outside the U.S.) were also very active, accounting for 24 and 23 percent of international clients, respectively. Latin America was home to 16 percent of foreign buyers, with Africans and those from Oceania accounting for 2 percent each. Among individual countries, the largest share of foreign buyers – 13 percent – were from Mexico. Next was the United Kingdom, which accounted for 12 percent of foreign buyers. Canada, India and China rounded out the top five countries of origin for foreign home buyers in the U.S.
What They Bought. Detached single-family homes or townhomes are the most popular housing choice among all home buyers in the U.S. The same is true for international home buyers, but foreign buyers show a stronger preference for condominiums/apartments compared to home buyers in general. In 2006, condominium/apartment sales accounted for 12 percent of all existing home sales. Between April 2006 and April 2007, more than one fifth – 22 percent – of homes purchased by foreign buyers were condominiums/ apartments.
Price of Homes Purchased by Foreign Buyers. The median price foreign buyers paid for a home was $299,500 – significantly greater than the national median sales price for all of 2006 which was $221,900. More than a fifth of international buyers purchased a home that cost between $200,001 and $300,000. Fourteen percent of foreign home buyers paid more than $750,000 for their U.S. property.
Financing the Home Purchase. In 2006 more than 90 percent of all home buyers purchased their home using a mortgage loan. The majority of foreign buyers also used a mortgage loan to finance their home purchase, but the percentage was much smaller. Sixty-nine percent of international home buyers used mortgage financing, while 28 percent purchased their home with cash. Three percent of REALTORS® were not sure or did not know how their foreign clients financed their home purchase.
The proportion of foreign buyers who paid cash for their home was much greater than that for the general home buyer population – 28 percent vs. 8 percent. This could be due to the fact that those international home buyers would be expected to be wealthier households with ready cash on hand. The tax benefits of mortgage interest deductions may not apply – depending on the buyer’s home country’s tax code – which lowers the incentive to take out a mortgage.
Why They Buy. The majority of foreign buyers – because they are not U.S. residents – purchase homes for other reasons than as a permanent residence. Almost half of them – 47 percent – bought a U.S. home to use as a vacation venue for family and friends. Twenty-two percent purchased a home as a rental property for investment. Nearly a third – 31 percent – of foreign buyers purchased a home as both a vacation and rental/investment property.*
U.S. visa rules only allow non-residents (unless under a student or work visa) to remain in the country for six months. Because foreign buyers are non-residents of the U.S., most of them plan to spend less than six months in their U.S. home. A small percentage – 6 percent – spend less than two weeks. Forty-four percent intend on using their U.S. property for one to six months.
Where They Buy. Foreign home buyers purchase U.S. properties everywhere around the country, but two regions and several states dominate the list of locations. The South accounted for the largest proportion of foreign home purchases – 49 percent. The West was also popular, with 31 percent of foreign buyers purchasing homes in that region. The Midwest’s share of foreign home buyers was 11 percent, and that for the Northeast 9 percent.
The number one state for foreign home buyers was Florida-- the state accounted for 26 percent of all international purchasers. California was next at 16 percent followed by Texas at 10 percent. The fact that these states were the top three locations for foreign purchasers should come as no surprise. Each of these states is a major “gateway” for visitors to the U.S. from other countries.
Challenges for Foreign Home Buyers
While 32 percent of REALTORS® report having had international clients between April 2006 and April 2007, not all of those clients were able to successfully purchase a home in the U.S. The survey did ask why international clients did not purchase homes. Almost half of respondents reported that the cost of property was the main reason for an unsuccessful home sale.
But nearly a third indicated that U.S. visa restrictions were barriers to buying a property in the U.S. In a previous survey of international home buying activity focused on the Florida market, U.S. visa rules were a major point of contention among many respondents. They claimed that the six-month stay restriction is insufficient for some potential foreign buyers – particularly among those who are no longer working. A retirement visa of some sort that would permit a longer continuous stay in the U.S. would undoubtedly enlarge the pool of potential international buyers. The national survey results support this contention: 34 percent of REALTORS® responding to our survey expect that foreign retirees could be potential buyers of U.S. real estate.
Conclusion
While U.S. housing markets are no longer performing at record-breaking levels, U.S. real estate is still considered a prime investment opportunity for foreign buyers and a “safe haven” in which to put their money. Whether they use their U.S. home as rental/investment property, as a vacation home or both, non-U.S. residents account for a significant share of home buying activity. It is likely they will continue to do so. With the weakened U.S. dollar against foreign currencies, those currencies buy a lot more than in previous years. For example, the British Pound Sterling was worth $1.44 in 2001; by 2004 it was worth $1.83. As of mid-year 2007, the pound was worth nearly $2.00. The Euro has also increased in value against the U.S. dollar. More purchasing power for foreign buyers means they can afford “more house” – particularly in a stabilizing U.S. housing market.
We live in a global economy where there are virtually no trade borders. The Internet is accessible from nearly all countries around the world. Web sites display information about U.S. real estate to any potential home buyers regardless of where they live. And as more and more people in different nations recognize the value of owning property, the opportunities and challenges for real estate professionals to broker U.S. property to foreign home buyers are numerous.
Notes on the Survey
The survey was conducted in May/June of 2007. Results were based on responses from REALTORS® who had at least one international client during the then recent 12-month time period; thus, information in the 2007 Profile of International Home Buying Activity refers to foreign home buying activity between April 2006 and April 2007. For purposes of this survey of International Home Buying Activity, an international or foreign home buyer is defined as one who principally resides in another country (outside the U.S.) and who is not classified as a foreign-born resident of the U.S. International buyers are not U.S. citizens (either naturalized or native-born and living outside the U.S.), a U.S. immigrant, or a foreign student or worker on a temporary visa.
*The survey offered a third “housing choice” option – time-share. But statistically the share of buyers purchasing a time-share property was zero. This result may indicate that the REALTORS® involved in international sales do not handle time-share transactions for those clients. At the same time, the results do not suggest any trends relating to the time-share market. Rather it is likely that REALTORS® – who generally assist clients in the buying and selling of homes – may not consider time-shares as part of their normal residential brokerage business.
BARA names officers, awards members
The Boulder Area Realtor Association on Wednesday named its officers for 2007-08 and presented awards to a number of its members.
During the ceremony, Veronica Precella, of ReMax of Boulder, assumed the post of president, and the association installed its new officers: Denise Patryas, Coldwell Banker Residential; Craig Peterson, Wright Kingdom Realtors; Stephanie Iannone, Housing Helpers; David Carner, Coldwell Banker Residential; Christopher Welch, Keller Williams Front Range Properties; and Dan Kingdom, Wright Kingdom Realtors. Newly elected directors include: Mike Bader, Mock Realty; Stephanie Lyon, Trilogy Real Estate; Cindy Maynard, Wright Kingdom Realtors; and Risé Staufer, Staufer Team Real Estate.
Presidential awards were presented to Irene Shaffer, Dan Kingdom, Stephanie Iannone, Clove Berger, Denise Patryas and Barbie Rieger. Honorary memberships were granted to Richard Blumenhein, Kent Bowron, Allene Cash, Bob Travis, Jim Matthews, Don Welch and Betty Zook. Alicia Alpenfels, of Dominion Mortgage Corp., was named as the Affiliate Member of the Year; Paul Dart, of ReMax of Boulder, received the Distinguished Realtor award; and Duane Duggan, of ReMax of Boulder, received the Realtor of the Year Award.
Boulder Daily Camera Press Release
During the ceremony, Veronica Precella, of ReMax of Boulder, assumed the post of president, and the association installed its new officers: Denise Patryas, Coldwell Banker Residential; Craig Peterson, Wright Kingdom Realtors; Stephanie Iannone, Housing Helpers; David Carner, Coldwell Banker Residential; Christopher Welch, Keller Williams Front Range Properties; and Dan Kingdom, Wright Kingdom Realtors. Newly elected directors include: Mike Bader, Mock Realty; Stephanie Lyon, Trilogy Real Estate; Cindy Maynard, Wright Kingdom Realtors; and Risé Staufer, Staufer Team Real Estate.
Presidential awards were presented to Irene Shaffer, Dan Kingdom, Stephanie Iannone, Clove Berger, Denise Patryas and Barbie Rieger. Honorary memberships were granted to Richard Blumenhein, Kent Bowron, Allene Cash, Bob Travis, Jim Matthews, Don Welch and Betty Zook. Alicia Alpenfels, of Dominion Mortgage Corp., was named as the Affiliate Member of the Year; Paul Dart, of ReMax of Boulder, received the Distinguished Realtor award; and Duane Duggan, of ReMax of Boulder, received the Realtor of the Year Award.
Boulder Daily Camera Press Release
Subscribe to:
Posts (Atom)
