Uncategorized Topics • July 11, 2023

May 2023 Real Estate Market Report

by Ron Sasso

Click here for a link to the Rapid City and Black Hills Real Estate Market Report for May 2023. The average days on the market have increased significantly compared last year and average prices for all areas have decreased slightly. The real estate market report also includes several interesting articles. Topics include how the spring market is expected to look, the difference between a mortgage lender and a mortgage servicer, can you just walk away from a house you have under contract, the Black Hills Events calendar, and more!

As always, if you are looking at buying or selling a home, reach out to me at (605) 593-3759 and I will gladly help you.

Seller Topics • May 23, 2023

Smells, Scents, and Odors When Selling a Home

by Ron Sasso

“Ooooh that smell
Can’t you smell that smell
Ooooh that smell
The smell of death surrounds you” – from “That Smell” by Lynyrd Skynyrd

The southern rock band Lynyrd Skynyrd weren’t talking about home smells, but the chorus works for it. Many home owners who are trying to sell their home may have an uphill battle if their home has unpleasant smells. There is nothing that will turn off a potential buyer more than an odor that draws attention to itself. It can be the death of any possible sale—or at least result in a lower purchase price. There is a big difference between selling your home and smelling your home! Even in this competitive market with low inventory, a smell can make a difference. By the same token, a scent that is pleasant may have a positive impact on a potential home buyer.

Some popular unpleasant scents include pet odors, cigarette smells, lingering smell of bacon grease, garlic, and fish to name a few. Most times the home owner who has been living with the smell doesn’t notice it as much as a potential home buyer will.

How do you determine pleasant scents? That is in the eye…or rather nose…of the beholder.

Some people will make the mistake of covering up a bad smell with something that is so strong that it can trigger a gag reflex. It also makes people wonder, “What are they hiding?”

If you know you will have people going through your home and you have a cat, make sure that the litter box has been scooped and changed. Maybe it’s time for your dog to have another bath. You also probably don’t want to have fast food in your home just before an open house.

If you have the ability to vacate your home for half a day (and that includes your pets) you can also try using an ozone generator to neutralize any odor. An ozone generator causes a molecular change by generating ozone (O3) and causing an actual change in the smell. They are often available for rent at equipment rental stores. I purchased one to use on vacant homes if needed. After using an ozone generator, the air may smell like lightning just came through. However, as noted, you need to vacate the home during an ozone treatment as it can cause respiratory problems. However, within an hour after an ozone treatment, the ozone dissipates. If you have the chance to air out the home after treatment, that would be best.

When it comes to good smells for open houses—try baking cookies or an apple pie just before an open house may be a way to get buyers thinking about “home”…as long as you don’t burn either and you can clean up the mess well before your open house starts. If you have enough time, take a stroll through the house with the freshly baked item to really spread the scent.

If your home has a garden or you want to splurge a bit, consider using some fresh cut flowers or purchase flowers for a pleasant smell and for added décor.

Keep in mind that creating a home environment with pleasant aromas means that you have a much better chance of sniffing out a sale in the near future.

Buyer Topics • May 9, 2023

Mortgage Interest Rates – A Historical Perspective

by Ron Sasso

Over the past year, interest rates have been climbing. Expectations are that interest rates will level off as the Federal Reserve has indicated that they are not pushing for higher increases.

At times in 2021, interest rates were near record lows. The record low 30-year mortgage rate was 2.65% set in January 2021. The 30-year mortgage rate is now right around 6.5%. To give you some perspective, let’s take a look at where interest rates have been in the past.

Prior to April 2022, the last time interest rates were above 5% was back in April 2010. That’s a 12-year stretch below 5% according to data provided by Freddie Mac. Prior to September 2022, the last time interest rates were above 6% was in May of 2008.

But, it’s important to look at perspective. Going further back, November 1990 was the last time interest rates were above 10 percent. Curious what the high watermark for 30-year mortgage rates were? In October 1981 interest rates peaked at a whopping18.63 percent!

As you can see, rates change but they typically do not change very quickly. I would hope that we will never return to the exorbitant interest rates of the 1980’s.

For a $300,000 home, the difference of a half percentage point increase on a 30-year mortgage interest rate will mean your monthly payment will change by roughly $93.00. That may not be a lot, but it adds up over the life of a loan. Also, an interest rate increase could mean that you may not qualify to buy as big of a house as you would like—so you should keep that in mind if you are targeting a particular price point.

From 1971 to 2023, the average 30-year interest rate was 7.75%. We are currently right around 1.25% below that average.

If you have been approved for a mortgage but haven’t bought a home yet, make sure that you touch base with your lender to make sure that the rate that you were quoted did not change significantly. If it did, your payment will go up and your buying power will go down.

Right now, interest rates may seem high compared to where they have been in the last ten years—but historically, they are not unusually high. When I bought my first home in 1993, I was able to get an incredible interest rate of 6.75%! Back then interest rates were usually running between 7% to 8%.

Over the years, many people would purchase a home with a higher interest rate and then refinance that home at a lower rate when interest rates went down.

One of the biggest advantages of buying a home is the ability to build equity. It is much like a forced savings account. You are getting something for your money with each mortgage payment that you make. Renting does not provide that benefit.

If you’re thinking about buying or selling, give me a call, send me an e-mail, or send me a text at (605) 593-3759.

Buyer Topics • May 2, 2023

Is Now the Time to Buy a New Home?

by Ron Sasso

Are you wondering whether or not to get into the real estate market? You may be wondering about timing—whether you are looking at buying a home or selling a home. When is the best time to jump in?

First of all, anytime is good. I know you are probably thinking, “You’re a Realtor®, of course you would think any time is good.” So, let me explain.

There are benefits and drawbacks to every time of year. In the winter the market is slower. There are fewer homes on the market and there are also fewer people trying to get them. The pace is a little slower.

If you are buyer during the winter there are fewer people competing for the same property—but there are also fewer properties on the market. Most times, buyers during this time are very serious buyers. If you are selling in the winter, you will have fewer people interested in your home but they will be real buyers—not just people out to view your property because they have nothing better to do.

If you are looking at buying a home, the springtime provides the greatest inventory. You will have the most homes to choose from. It also provides the most competition for purchasing a home. A great deal will be snatched up more quickly….but it may be replaced by another.
Currently, overall home inventory is at one of its lowest levels. This may make it harder to find a home but definitely easier to sell your home at a good price.

Right now, interest rates are still historically low as they are still below 7%. Even though rates are higher than they were a year ago, rates have been trending slightly lower in the past month. We had gotten spoiled by extremely low rates that hung around for a while. By contrast, in the early 1980’s mortgage rates were over 15%! When I purchased my first home in 1993, the first-time home buyer rate was exceptional at that time—at 6.75%. The current rates are still historically good and trending in the right direction. Unfortunately, I don’t think we will ever see rates again below 4%. That is a great reason to consider diving into the market.

If you are looking at selling, low interest rates play a big role. A lower rate means that a buyer can qualify to purchase a more expensive home. That increases your pool of potential buyers.

If you are thinking about moving but are wondering what your home may be able to sell for in the current market, give me a call. I can do a comparative market analysis on your home and provide you with some ideas of what you may be able to sell your home for in this current market.

Spring is a time for new growth and new beginnings. It will get here sooner than you think. Don’t you want to start fresh? Don’t wait—take advantage of the opportunities the current market provides. You can call or text me at (605) 593-3759.

Uncategorized Topics • April 18, 2023

April 2023 Real Estate Market Report

by Ron Sasso

Click here for a link to the Rapid City and Black Hills Real Estate Market Report for April 2023. The average days on the market have increased significantly compared last year and average prices for all areas have decreased slightly. Interest rates have declined recently which should improve the real estate market. The real estate market report also includes several interesting articles. Topics include whether or not the spring is the best time to sell a home, how to declutter your home for better selling, dealing with repairs when purchasing a home, the Black Hills Events calendar, and more!

As always, if you are looking at buying or selling a home, reach out to me at (605) 593-3759 and I will gladly help you.