Maui Just Listed Blog

May 30, 2018

Millennials Are Skipping Starter Homes

Millennials Are Skipping Starter Homes for Their Dream Homes

Millennials Are Skipping Starter Homes for Their Dream Homes | MyKCM

A new trend has begun to emerge. With home prices skyrocketing in the starter home category, many first-time homebuyers are skipping the traditional starter homes and moving right into their dream homes.

What’s a Starter Home?

According to the National Association of Realtors (NAR), simply put, a starter home is a one or two-bedroom home (sometimes even a small, three bedroom). “Prices vary widely by market but starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.”

Finding Their Forever Homes Now

A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The aftereffects of the Great Recession teaming up with larger education costs forced many to either remain living in their parent’s homes or to rent.

With the economy continuing to improve, many millennials have been able to break into better-paying jobs which has helped spur down payment savings. As the dream of homeownership comes closer to reality, many millennials are saving for their forever homes.

According to the latest statistics from NAR, 30% of millennials bought homes for $300,000 or more this year (up from 14% in 2013). Diane Swonk, Chief Economist at Grant Thornton weighed in saying, “They rented for longer. Now they’re going to where they want to stay.”

More and more millennials are settling down, getting married, and starting families, which is a huge factor driving them to look for larger homes.

Increased competition in the starter home market has also been a driving force in waiting to afford their dream homes. Inventory in the starter home market is down 14.2% from last year, according to research from Trulia. This has driven prices up and has led to bidding wars.

Many first-time buyers who were originally looking for starter homes are realizing that for just a little bit more of an investment, they could afford trade-up or premium homes instead.

Bottom Line

If you plan on purchasing your first home this year, let’s get together to determine how much house you can afford. You may be pleasantly surprised.

Posted in Social
May 30, 2018

Saudi's Spend $43 Mill. on Jackie O's Home

Saudi Arabia just spent $43 million on Jackie O’s childhood home for an embassy

  • The Saudi Arabian government just purchased the childhood home of Jacqueline Kennedy Onassis for $43 million.
  • The property is expected to be used as an embassy.
  • Called Merrywood, the estate is in McLean, Virginia, and was sold by AOL founder Steve Case.
     
     
     
     
     
The childhood home of Jacqueline Kennedy Onassis in McLean, Virginia.
Source: Sotheby’s International Realty | YouTube
The childhood home of Jacqueline Kennedy Onassis in McLean, Virginia.

The government Saudi Arabia just bought the sprawling Virginia estate that was once the childhood home of Jacqueline Kennedy Onassis.

The purchase price: $43 million, according to a report in the Wall Street Journal.

The estate, called Merrywood, in the D.C. suburb of McLean, Virginia, was sold by AOL founder Steve Case, who bought the home for $24.5 million in 2005.

It's unclear how the Saudi government will use the property, but the official purchaser was the Embassy of the Kingdom of Saudi Arabia, so presumably it could become a crash pad for visiting dignitaries from Saudi Arabia.

The Saudi Embassy couldn't immediately be reached for comment.

It's believed to be the most expensive sale price for real estate in the area.

Built in 1919, the seven-acre estate was the main home of Jacqueline Bouvier in the 1940s. The property has a swimming pool, tennis court, and a pavilion with an indoor lap pool, kitchen, gym and changing rooms. The main house stretches over 23,000 square feet and has been carefully renovated and restored.

The swimming pool area

The swimming pool at the childhood home of Jacqueline Kennedy Onassis in McLean, Virginia.
Source: Sotheby’s International Realty | YouTube
The swimming pool at the childhood home of Jacqueline Kennedy Onassis in McLean, Virginia.

The living room

The living room.
Source: Sotheby’s International Realty | YouTube
The living room.

The kitchen 

The kitchen from the childhood home of Jacqueline Kennedy Onassis childhood in McLean, Virginia.
Source: Sotheby’s International Realty | YouTube
The kitchen from the childhood home of Jacqueline Kennedy Onassis childhood in McLean, Virginia.

The sitting room

The sitting room in the childhood home of Jacqueline Kennedy Onassis in McLean, Virginia.
Source: Sotheby’s International Realty | YouTube

The master bedroom 

The master bedroom from the childhood home of Jacqueline Kennedy Onassis childhood home McLean, Virginia.
Source: Sotheby’s International Realty | YouTube
The master bedroom from the childhood home of Jacqueline Kennedy Onassis childhood home McLean, Virginia.

 

Posted in Social
May 30, 2018

FSBO Could Cost You...

Selling Your House on Your Own Could Cost You

Selling Your House on Your Own Could Cost You | MyKCM

In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a For Sale by Owner (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the services a real estate agent offers.

However, a study by Collateral Analytics reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)

Why would FSBOs net less money than if they had used an agent?

The study makes several suggestions:

  • “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
  • “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
  • “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.

Conclusions from the study:

  1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
  2. The data suggests the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

As Dave Ramsey, America’s trusted voice on money, explains:

“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”

Posted in FSBO
July 31, 2017

Curious About Local Real Estate?

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Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates