May 13, 2020 During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams, about how the real estate industry is adjusting to innovatively conduct business during the coronavirus pandemic. Realtors Getting Innovative Steve first asked Terry to talk about one big change in the real estate industry—big conference calls between agents all across the country. “We have giant conference calls each week. We try to find out what each agent is hearing and seeing. A lot of agents have started doing webinars to show first-time buyers what their options are or straight-out buyers that we can still get them into the home they want, pandemic or no pandemic.” Terry shared. The most important thing about this innovative approach is that the essential information still gets to the potential client while practicing social distancing. Terry, herself, decided to get ahead of the game by carefully tracking home sales in Palm Beach County. “As realtors, we’re foot soldiers,” she said. “We know what’s going on in the industry before any reports reflect it. With this information, I can spot a trend before it’s reported as a trend.” How Buyers Can Help Themselves Getting innovative during this pandemic is something you can and should do, too, if you’re a prospective home buyer. Terry explained, “You’re going to have an area in mind. You can get a real sense of the neighborhoods in that area without ever leaving your car. Drive around. Use Google maps to find spots of interest such as restaurants, shops, and schools. Pay attention to things like traffic patterns. Remember that once you move, traffic is going to get heavier once everyone can be out and about freely. And use online databases for neighborhood data and statistics.” Steve added that using Google maps to actually see what a neighborhood looks like can be a big help to someone looking for a new home. Getting proactive now will help you get a sense of what it would be like to live in different areas. This will help you narrow down what homes are actually of interest to you. Then, once you’ve settled on a neighborhood that meets your needs, call a realtor to get professional advice. They’ll be able to help you find homes that will work for you and set up virtual tours. To learn more about buying or selling a home, visit https://teamterrystory.com/ or call Terry at 561-945-4348.  

Real Estate Survival Guide with Terry Story

How The Real Estate Industry Keeps Changing To Help You

May 6, 2020 During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams in Boca Raton, about what the process of buying and closing on a home sale looks like in the coronavirus environment. How Home Buying All right, so we start with a listed property. Terry explains, “I would have already made videos of the home and taken my buyers on a virtual tour. Then, if they’re seriously interested, I arrange for them to do an actual real-world tour of the property, complete with mask, gloves, and even protective booties for their feet.” Neither the buyer’s agent nor the seller or their agent can be inside the property when the buyer is doing an in-person tour. Social distancing, right? This is far different from the way it’s traditionally done, and it requires some trust. Terry noted that “We’re letting strangers into someone’s home, unsupervised, and the buyer and seller are being exposed to each other—possibly being exposed to the virus.” Terry pointed out that the positive thing about all of this is that the seller can pretty well safely assume that the buyer is a very serious, motivated buyer. Otherwise, they wouldn’t be willing to go through all these obstacles—the mask, the gloves, etc. Terry continued explaining the procedure. “Let’s assume the seller’s agent knows the buyer by now and that the buyer has been qualified—really qualified, not just a pre-qualify. We’re talking about having proof of funds. That means that if the buyer is paying cash, then they’ve got the money in their bank account right now. If they’re financing buying the home, then they’ve been approved for the financing. It’s solid. They have a mortgage loan that’s been approved. The seller’s agent is going to, like, hold the buyer’s driver’s license while the buyer goes into the home, by themselves, for their do-it-yourself tour of the home.” Steve added that getting that mortgage loan approval is noticeably more difficult than it was before the coronavirus hit. For example, because people’s employment situations are more uncertain, the bank is going to check on their income and employment situation not just when they apply for the loan but all the way up to right before closing, right before everybody signs everything and the bank hands over that big check. Mortgage lenders are really just doing their due diligence. It’s just that things have changed, and the reality is that the buyer might have had a job when he first applied for financing, but he might have been laid off before we got to the closing. The lender is going to look at more than just the buyer’s assets or salary; they’re going to dig deeper and find out, for instance, if the buyer is considered to be an essential worker. Terry summed things up by saying that the bottom line is this: it’s an agent’s job to act as a transaction broker. She said, “It’s my job as a listing agent to make sure that I’m bringing people to meet with the seller who is qualified and highly motivated to buy, especially right now.” Getting To The Closing Steve asked Terry to continue describing the step-by-step process of closing the sale. Once a qualified and motivated buyer is brought together with an eager seller, the next step is to come to an agreement on price. At that point, the process pretty much continues like it always has. As Terry explained, “It’s time for an inspection period. But one change is that inspection periods aren’t taking as long as they used to. They’re now typically a week or less, instead of ten days because inspectors just aren’t as busy these days.” The lending process, from the agent’s point of view, is still basically the same, “Except,” Terry said, “that we’re checking on it every few days, calling the lender to make sure the money will be lent in a timely fashion. That could be a potential area of concern when you consider the strain that the coronavirus pandemic is putting on everyone.” Terry explained that, in general, the name of the game is really just staying on top of everything, staying in touch with each party involved in the process to be sure that everyone is still on board. “We need to make sure that everyone still wants to be in on the deal, that everyone is still motivated and working toward the same goal of getting to the closing table. Frankly, we’re communicating more than we ever have before with the other realtor, just to make sure that we’re all still on the same page and that everything’s getting done properly.” Sealing The Deal Staying on top of each stage of the process is critical in preventing the sale of the home from falling through. As the process moves along, the final stage is the closing itself. This is another part of the process that’s changed as a result of the coronavirus. Terry informed listeners that, “Closings can basically be done remotely now. Certain lenders have approval to close on a home completely remotely. The biggest issue is that some documents have to be notarized. But as we deal with more closings in this way, we’re learning how to get things done as smoothly as possible. The title companies are moving toward going completely digital, but if need be, someone from the title company will go out to the buyer to have documents signed. Agents are becoming couriers, doing whatever it takes to get all the necessary documents signed. We’re doing whatever it takes to get the job done and close on the home.” Typically, the agent gets the seller to sign all the documents first, and then they get the documents to the buyer. Some lenders are sending a lot of the documents to the buyers in advance so that at the closing table there are fewer documents to sign. Once payment clears, the agent might have to be a courier once again to make sure the keys to the home get to the buyer. If you’d like to learn more about buying or selling a home, visit https://teamterrystory.com/ or call Terry at 561-945-4348.

The New Normal for Buying A Home

4/15/20 During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams, about the state of the real estate industry and how agents are being affected during a time when most states are under mandatory quarantine. The Rules Have Changed With the majority of the country in quarantine, the rules have changed for the real estate industry. Though agents are considered essential workers, they have to follow different guidelines when helping clients find a home. “We’re not allowed to be in the house with a client when showing it,” Terry said. “The seller can’t be in there either. We’re allowed to show up and let the client in. Only the buyer can be in the home.” But the majority of agents are taking even further precautions to help prevent potential spreading of the novel coronavirus and maintaining social distancing. “Most agents have created walking tours of homes ahead of time to offer clients. It’s only once they’ve expressed serious interest about the home that we invite them to tour in person. We also have sanitizer, gloves, booties, and other protective elements to help do our part to stop the coronavirus pandemic,” Terry said. The video walking tours are popular online features anyway. They let agents show potential buyers a home room-by-room without the agent or buyer having to be in a location at a specific time. These virtual tours are especially helpful now and can be made more personal for specific clients. Terry added, “Despite everything that’s going on, homes are still being looked at, bought, and sold. We just have to adapt and keep everyone as safe as possible.” Prices And Inventory As can probably be expected, prices and housing inventory are being affected by the coronavirus pandemic as well. Terry said, “Prices are coming down. But as I’ve said before, you tend to get more and more quality offers when you lower the price of a home. However, I have seen some lowball offers. I have a property on the market for $740,000 and there was a $350,000 offer. We know times are hard, however, this is a precedent that we’re not going to set.” “And no one’s at that level of desperation just yet,” Steve added. But there are a lot of questions. How long will the recession last? How long will people be out of work? What will the economy look like in a few months? Prices could continue to take some hits and inventory is affected also. Terry said, “Right now, we’ve been in a buyer’s market. We’re down to like three months of inventory, which is extremely low. A balanced healthy market is at six months.” Steve pointed out the additional fact that people who are quarantined in their homes aren’t going to be able to sell. It’s Terry’s hope, however, that potential sellers will take advantage of the opportunity available to them. “With inventory down, now is a great time to sell. There are more people competing for fewer houses, which means more offers. If more sellers think like this, we’ll be able to boost inventory levels.” Mortgages Despite what’s happening in the world, it’s still relatively easy to get a mortgage if you’re buying a home, provided you qualify. The only situation where this isn’t quite as true is with jumbo mortgages. “Jumbo mortgages, at least in my market, are mortgages over $510,000. Lenders end up putting deals together and then selling them on the secondary market,” Terry said. Steve offered some additional info on jumbo mortgages: “A mortgage broker told me that banks, hedge funds, and even some private investors typically buy these mortgages. But many don’t want to get stuck with such long-term mortgages at the low -interest rates being offered with so much uncertainty.” All of this means that you really need to consider what type of home you want and need and whether you can afford the home without a jumbo loan. If you’re going to need significant financing, it might be better to wait. If you’d like to learn more about buying or selling a home, check out Keller Williams!

The New Rules of Real Estate in the Time of Quarantine

During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams, about how overwhelming buying a home can feel for millennials. The two discussed some of the things that millennials need to know before buying a home. Buying A Home As A Millennial With the current state of the real estate marketplace being somewhat tricky to navigate, it’s even more difficult for millennials, some of the youngest homebuyers in the game. Terry said, “The biggest reason millennials feel so overwhelmed by the prospect of buying a house is simply the fact that they haven’t had the proper education.” The thing millennials need to understand is that it doesn’t have to be that complicated. Get yourself connected to a good realtor. They will be able to put you in touch with a good lender. Or vice versa. If you start with a lender, you can see what financial resources you qualify for. Then the realtor can help you find a home in your price range. One additional factor to keep in mind is the fact that 70% of millennials surveyed were familiar with the housing market crisis of 2008  and about half actually knew someone who lost their home. Steve commented, “That kind of leaves an indelible stamp on your brain. It takes a while to have new experiences to kind of remove those old feelings.” Terry added, “It’s important for millennials to understand that we’re not in the midst of the same type of crisis and that interest rates are incredibly low right now.” That means that it really is a good time to buy, provided you educate yourself and stay within your means. Realtors are also seeing that millennials are getting a good amount of parental support when it comes to buying their first home. Sometimes it’s in the form of house hunting, but more and more, parents are helping their kids out financially. Understanding Costs The other major aspect of buying a house (especially versus renting) is what the house will actually cost. Remember, interest rates are low right now. “It’s cheaper to buy a home at a higher price with a lower interest rate; a 1% difference in interest rate equals a 10% difference in affordable home price,” Terry said. People tend to fixate on the dollar amount attached to a home price. But, for example, if you could afford a home that’s $400,000 and interest rates drop by 1%, you could ultimately buy a home valued at $440,000 for the same cost. Terry emphasized the point that “You have to look at the total cost to purchase, not just the price.” “As interest rates come down, a sort of antigravity field is created around asset prices and prices go up. As interest rates rise, gravity is increased on asset prices and prices will come down,” Steve said. What does this mean? You need to think about the price of a home in terms of how long you’re going to live there. If the price of the home you buy comes down, will you have enough equity or will you be in the home long enough to wait out a cycle? Terry noted, “I typically tell people not to purchase a home unless they plan on living there at least five years.” If you’d like to learn more about buying or selling a home, check out Keller Williams!

A Home Buying Guide for Reluctant Millennials

During this week’s Real Estate Roundup, Steve spoke with Terry Story, the 31-year veteran at Keller Williams, about a fundamental change happening in the real estate industry. Steve and Terry also talked about some key real estate myths that home sellers need to be aware of. How Homebuyers Are Categorized As Steve pointed out early in their conversation, “There’s a fundamental change in how homebuyers were historically categorized and how they’re being categorized today. Now, there are basically three tiers of homebuyers: upper, middle, and lower.” The uppermost tier are the people who are willing to pay higher premiums for move-in ready homes with all the requisite amenities. Terry confirmed that she sees this type of buyer quite a bit. But she also sees a lot of buyers in the middle tier: people who want homes in their original condition. The goal with this type of homebuyer is to boost the home’s value through “sweat equity”—home improvements. Finally, there’s the lower tier of buyers. This segment is primarily comprised of flippers or contractors, looking to pick up a home on the cheap, ideally paying no more than 60-70% of its retail value. Speaking of value, Steve and Terry together noted that, “Land appreciates, houses depreciate.” Even if you’re not a renovator, if you stay in a home for several years, then you’re likely to spend a significant amount of money fixing it up, re-doing it, or maintaining it. Many people, when estimating how much value they have in their home, fail to take into account all the money they’ve put into it over the years, like replacing hot water heaters or heat/air systems. The Middle Tier Is Falling Away Steve mentioned that a recent article highlights how the middle tier buyer is falling away. “The reason is that current buyers are more comfortable with technology than they are with construction. Buyers are looking for homes they can move into quickly, homes that already have everything they want.” There are simply more deterrents for middle-tier buyers, Terry chimed in. “If you’re buying a home that needs renovations, you have to have the money upfront to not only buy the home but then also to hire contractors,” she said. So, more people are in the top tier of those looking to buy a home that’s already the way they want it. Five Real Estate Seller Myths Steve and Terry then moved on to discuss some common real estate myths that are important for sellers to keep in mind. The first is that you don’t need a listing agent until your home is ready to go on the market. “I disagree with this,” Terry said. “I think it’s better to bring in the realtor before you put your home on the market. That way, they can help you determine what does and doesn’t need to be done to get your home ready to sell.” Steve presented a second myth: “I do not need to upgrade the property for sale.” But according to Terry, it all depends on what the house needs and what type of upgrades are on the table. Her advice: “If you think a buyer’s going to come in and think it needs $10,000 worth of painting, it’s worth spending $1,000 in painting before putting your house on the market.” The third myth—that you need to have an open house before you can sell your home—isn’t necessarily true either, according to Terry. “Open houses are a great way to get additional exposure, but the reality is that people are using technology such as real estate websites to decide what they want to look at, and then they’ll make an appointment to look at a home they’re interested in.” And virtual open houses are becoming increasingly more common. Steve stated, “Number four, I need many open house signs at multiple key intersections.” He started to express skepticism about that one, but Terry chimed in and said that in her experience as an agent, that one isn’t a myth, it’s a good idea. One final myth: A buyer that’s truly interested in a home will pay more than market value. “That’s a simple, flat out ‘no’,” said Terry. People are smarter and more well-informed as buyers these days. And Steve pointed out an adage that applies well beyond the real estate market: “Buyers only buy what they perceive has good value, period.” Terry added that if you over-price your home, potential homebuyers, even if they like the house, may not make an offer because they don’t think the seller has a realistic view of their home’s value and, therefore, won’t be easy to negotiate with.                                                                                                                  If you’d like to learn more about buying or selling a home or to connect with Terry Story, check out Keller Williams!

Watch Out For Housing Myths That Can Lead You Astray

During this week’s Real Estate Roundup, Steve spoke with Terry Story, 31-year veteran at Keller Williams, about the future of the real estate industry. Last week, Steve and Terry spoke about predictions realtors had made for the industry a decade ago. This week, they talked about the predictions realtors are making for the upcoming decade. Condos And Townhomes On The Rise One of the first predictions the realtors made for the next ten years is that “condos and townhomes will become more desirable than single-family homes, primarily because they’re less time-consuming in terms of upkeep and maintenance,” as Steve relayed. This prediction is related to millennial buyers, who are looking for homes that are move-in ready and easy to take care of. They’re not interested in doing major renovations. Boomers—those who are in their 60s and up—are largely aging at home. They’re not downsizing, selling their homes in order to move into retirement communities. This means housing inventory is down, but, as Steve and Terry have discussed in recent weeks, new construction is on the rise. According to the experts, condos and townhomes is the wave of the future. Increasing Use Of Technology Technology is already in every part of our lives, and realtors predict that technology will play an increasingly bigger role in the housing industry. The rise of online home-selling apps is particularly heralded, along with the increased use of social media to help sell homes. Technology is also predicted to have a more significant presence within homes themselves. Smart homes, ones completely connected to and controlled by technology, are growing in popularity, particularly among younger homebuyers. Along with wanting move-in ready homes with low maintenance, millennials also want the convenience of being able to talk to their homes and use technology to make their daily lives easier. Terry’s not so sure about being on board with all that. She said, “I don’t care for talking to a device that’s going to turn on my lights. I like to get up and turn on my own lights. Plus, I’m a little freaked out about who’s listening.” Sustainability, Access, And Amenities The real estate industry is predicted to move in the direction of more sustainable homes with “socially conscious business practices being a much more important part of the real estate equation,” Steve noted. This has already started with the smallest of things: people are switching to LED lightbulbs, which are far more economical and use much less electricity (up to 75% less) and last much longer than traditional incandescent bulbs. People more and more want to live in areas that offer easy access to certain amenities and conveniences. For that reason, mass transit, like the Brightline rail system in Florida, which is rapidly expanding its service areas, is predicted to be increasingly important. Having access to good mass transportation means people can still choose to live in Boca Raton but be able to easily zip down to Miami. Terry commented that she’s hearing more people saying things like, “Listen, I don’t have to go to Miami that often, but when I do, I now know I can just hop on the Brightline.” (Boca Raton is being fast-tracked as a new Brightline station.) Steve is apparently one of the converts to using mass transit. He said, “Well, previously I never would have taken a train down to Miami, but now we’re considering doing that because the train’s nice, it seems like fun, and the connections are pretty good from what I understand.” People want what they want and what homebuyers are predicted to want more of in the future is the convenience of having all their desired amenities at their fingertips. Steve rattled off a partial list: “They want dog runs, they want roof decks, they want work-friendly spaces.” Terry said that she’s seeing more people who are willing to live farther out from major cities and commute if they can get into a housing community that gives them what they’re looking for in the way of amenities. And builders and developers are taking notice. The Silver Tsunami There’s also a prediction for a wave of sales being referred to as the “Silver Tsunami.” This is when some 77 million baby boomers will finally start selling their homes, either to downsize or to move into retirement facilities. Zillow researchers report that “Nine million of these baby boomer homes will hit the market between 2017 and 2027.” Steve and Terry both noted that that should solve the low housing market inventory problem. And with boomers both buying and selling, Steve mentioned reading that, “By roughly 2037, 21 million homes will have been sold as a result of the baby boomers.” The End Of Paper Sales Finally, one of the most likely predictions involves “the transition of the real estate industry from a manual, paper-laden process to an end-to-end digital experience within the next ten years,” which Steve quoted from the real estate predictions report. Eventually, the entire process of buying and selling a home will be paperless. Wrapping up the Roundup, Steve quipped, “I think eventually renters will be able to lease an apartment in a matter of minutes just by filling out a few questions and snapping a selfie that will enable an algorithm to quickly build and vet their application in real-time.” To learn more about buying or selling a home, or connect with Terry, go to Keller Williams!

The Future Of The Real Estate Industry

In this week’s Real Estate Roundup, Steve spoke with Terry Story, 31-year veteran with Keller Williams, about the excellent state of the country’s economy, with housing inventory and employment levels on the rise. Steve and Terry also looked at some predictions that realtors made ten years ago. Things Are Looking Up In Real Estate There are a lot of positive changes happening. The real estate industry is hot. New home sales jumped 17% in December. Construction of new homes has increased significantly. In fact, Terry says, “if you look at new construction by region, the Northeast is up 25%. In the Midwest, construction is up 37%. And the West is up about 20%.” The South is a bit of a different story. It’s only up 9%. Why? Steve suggested that perhaps the South already has enough new construction or that there’s just not enough land left to build on. But the good news continues. The economy is thriving. The employment level is rising. The stock markets are at record highs. And, while home prices have risen, they’re only about 3% to 5% higher. And the employment and investment numbers mean that more people have more money, money they can spend on a new home. Past Prediction One: Streamlining Home Sales In 2010, a group of respected realtors was asked to offer predictions about things that might happen over the next ten years. This was a project called 2020 Re-envision. The realtors’ first prediction was that real estate agent commissions would go to a flat fee. Basically, the realtors were talking about companies popping up that wanted to control every aspect of selling a house. They would then simply employ agents to open doors, and agents would then receive a flat fee. This prediction only came true for a few companies in a very small market. Terry never really bought into this idea of cutting out the real estate agent. She explained, “People like working with other people. And the truth of the matter is that selling real estate and buying real estate, it’s a very emotional experience.” Prediction Two: Technological Changes The second prediction the realtors made in 2010 was that technological advances would be used by realtors. This prediction has indeed come true. Terry and her colleagues use 3-D imaging when showing homes, even doing a 3-D tour of a home. In addition, they also use a type of augmented reality or “virtual staging”. She reported, “We can take a home that’s empty and, with a computer, place furniture in it. A lot of people can’t visualize what a home could look like otherwise.” Past Prediction Three: Less Office Work, More Service The realtors also predicted that there would be a decline of commercial offices in favor of co-working and flexible office space. In terms of commercial sales, Terry isn’t sure if this prediction came to fruition. But she did note that for residential sales, a lot of realty companies’ brick and mortar stores are closing or consolidating. “If you really think about it, most realtors aren’t working out of an office. They’re out in the field, showing homes, talking with builders, etc. So, real estate agencies don’t need huge office buildings anyway.” If you’d like to learn more about buying or selling a home, check out Keller Williams.

It’s A Great Time To Be Living In America: Enjoy It

Terry Story’s Real Estate Survival Guide podcast includes her weekly round-up on NPR's "The Steve Pomeranz Show," WLRN and affiliates. The show provides expert advice in all aspects of the real estate transaction from listing to negotiations; to sales and purchase and everything in between.

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Real Estate Survival Guide with Terry Story

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