Getting Buyers Off the Fence

January 13, 2015

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CHAMBERSBURG OFFICE SALES

MEETING

ToolKit CMAWebinar

Getting Buyers Offthe Fence

2014 MarketStatistics

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MORTGAGE UPDATE

Don Clawson

Loan Officer

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2014 MARKET STATISTICS

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2014 MARKET STATISTICS*

Closed Sales

2013

2014

1,370

1,400 +2.2%

Median Sold Price

2013

2014

$150,000

$151,000 +0.7%

New Listings

2013

2014

2,320

2,512 +8.3%* MRIS Statistics from Franklin County

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THE LISTING FROM HELL

• Basement – Finished but with

no building permit

(Apply for a building permit)

• Driveway – Portion is on

adjacent lot

(Easement by Prescription if

21 years)

• Front Corners of House –

Encroach on building setback

(Apply for a variance)

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TOOLKIT CMA

NO MORE MONTHLY FEES!!!

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TOOLKIT CMA

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TOOLKIT CMA

Presentations

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TOOLKIT CMA

Property Flyers

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TOOLKIT CMA

Wednesday, January 14 @ 11:00 AMRegistration e-mail coming TODAY

Live Webinar

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ACCOLADES

Getting Buyers Off

the Fence

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WHAT YOU HEAR . . .

• Wait till after the New Year

• Wait till kids are out of school

• Wait for interest rates to come down

• Wait till the economy improves

• I heard it’s difficult to get a mortgage

• I want to accumulate more money for a down payment

• Wait for Jupiter to align with Mars in June of an odd

numbered year

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WHY BUYERS STAYON THE FENCE

Fear

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WHY BUYERS STAYON THE FENCE

Greener Grass

Syndrome

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WHY BUYERS STAYON THE FENCE

Lack Perspective

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WHY BUYERS STAYON THE FENCE

Can’t Find What

They’re Looking For

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WHY BUYERS STAYON THE FENCE

Tire Kickers

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WHY BUYERS STAYON THE FENCE

They aren’t dealing with a Pro

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WHEN BUYERS HAVE A STRONG ‘WHY’, THEY BUY

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GALLUP POLL: WHAT IS THE BEST LONG TERM INVESTMENT?*

* Economy and Personal Finances Poll

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WHERE ARE MORTGAGE RATES HEADED?*

* Freddie Mac 30 Year Fixed Rate

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WHERE ARE MORTGAGE RATES HEADED?*

* Freddie Mac 30 Year Fixed Rate

• What does that mean?

Mortgage Interest Rate Payment

Today $150,000 4% $716.12

Next Year $150,000 5% $805.23

Difference in Monthly Payment + $89.11

Monthly Annually Over 30 Years

$89.11 $1,069.32 $32,079.60

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WHERE ARE PRICES HEADED?*

* Home Price Expectation Survey

• Estimate of cumulative house appreciation by 2019

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WHERE ARE PRICES HEADED?*

* Home Price Expectation Survey

• What does that mean?

$150,000Average Sales Price

15.1%Appreciation Rate (Bear)

$22,650Appreciation

$471.87Appreciation per Month (48 mos.)

• Waiting costs $470/month

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HOMEOWNERSHIP’S IMPACTON NET WORTH*

* Federal Reserve

Homeowner’s net worth . . .

36X. . . greater than Renters

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5 FINANCIAL REASONSTO BUY A HOME*

* Harvard University; The Dream Lives On: the Future of Homeownership in America

1. Housing is typically the one leveraged investment

available

• Homeowner can borrow money to invest in a home

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5 FINANCIAL REASONSTO BUY A HOME*

* Harvard University; The Dream Lives On: the Future of Homeownership in America

2. You’re paying for housing whether you own or rent

• Percentage of income needed

to afford median rent

• Percentage of income needed

to afford median home

29.5%

15.3%

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5 FINANCIAL REASONSTO BUY A HOME*

* Harvard University; The Dream Lives On: the Future of Homeownership in America

3. Owning is a form of “Forced Savings”

• People have a tendency to defer savings

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5 FINANCIAL REASONSTO BUY A HOME*

* Harvard University; The Dream Lives On: the Future of Homeownership in America

4. Substantial tax benefits to owning

• Mortgage interest and property taxes are tax

deductible + + + capital gains exclusion

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5 FINANCIAL REASONSTO BUY A HOME*

* Harvard University; The Dream Lives On: the Future of Homeownership in America

5. Owning is a hedge against inflation

• Housing costs have tended to go up at or higher

than the rate of inflation

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WHY DO PEOPLE BUY HOMES?*

* National Association of REALTORS: 2014 Profile of Home Buyers and Sellers

All

Buyers

First-time

Buyers

Repeat

Buyers

Desire to own a home of my own 24% 53% 9%

Job-related relocation or move 9 4 12

Desire for a home in a better area 8 2 11

Change in family situation 8 5 9

Desire for larger home 7 1 10

Affordability of homes 5 8 3

Desire to be closer to family/friends/relatives 3 1 4

Retirement 3 * 5

Establish a household 3 7 1

Desire for smaller home 3 * 4

Financial security 3 6 1

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WHY DO PEOPLE BUY HOMES?*

* National Association of REALTORS: 2014 Profile of Home Buyers and Sellers

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ACCOLADES

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LISTINGS/BUYER NEEDS

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ABOUT THE PRESENTER

Tom Blefko is a real estate broker with over thirty years

experience in all facets of the residential and commercial real

estate industry including sales, leasing, office management,

property management, development, construction and

training. During the course of his career, he has been an

award-winning salesperson and assisted other agents in

negotiating and closing over one thousand real estate

transactions.

Contact Information: Tom Blefko, Associate Broker

Berkshire Hathaway Homesale Realty

Office: (717) 267-3222

Cell: (717) 587-6600

E-Mail: [email protected]