Seller Topics • October 3, 2023

Pricing and Amenities

by Ron Sasso

Why do some homes sell more quickly than others? The first answer is typically price. If a home is priced below market value and there is a demand for homes, it will usually sell very quickly. The drawback is if you price your home too low you might be leaving money on the table. That’s a difficult balancing act. A good real estate agent should be able to give you a breakdown of how pricing will play out. Sometimes it may take a little longer—and good marketing by an agent—to get the best price. But there are other factors that must be considered when selling a home.

Often you hear that a home is “move-in ready.” Basically, that means a person can buy it and step right in and be comfortable. Homes that are move-in ready will sell more quickly. The expectation is that everything is in great shape.

Some people like newer homes and other people like older homes. Some people like the convenience of being in the city and other like being outside the city. There are good markets for both types of buyers.

With that said, sometimes everything may be in great shape but may have very dated amenities. A home with outdated trends will present some challenges.

It’s important to understand that trends will come and go. At one point in history avocado green appliances were popular. I hope you’re not waiting around for that fad to come back into style! Some other forgettable and notable fads include shag carpet, bright orange laminate countertops, wallpaper, popcorn ceilings, carpeted bathrooms, and fuzzy toilet covers—to name a few. Fads come and go—it’s a matter of being in style or being outdated.

Some people like nostalgic styles—but that market is much smaller. Also, some people may like aspects of older styles but not every aspect.

So, what is making a difference today? Recently Zillow looked into popular amenities. Homes with avocado appliances didn’t make list of positive features—but other kitchen options were on the list. These are the features that helped homes sell above list price:

Steam oven | 5.3%
Pizza oven | 3.7%
Professional appliances | 3.6%
Terrazzo | 2.6%
She shed | 2.5%
Soapstone | 2.5%
Quartz | 2.4%
Modern farmhouse | 2.4%
Hurricane shutters / storm shutters | 2.3%
Mid-century | 2.3%

They also looked at features that helped homes sell faster than normal on the market. Those features were:

Doorbell camera | 5.1 days faster
Soapstone | 3.8 days faster
Open shelving | 3.5 days faster
Heat pump | 3 days faster
Fenced (back)yard | 2.9 days faster
Mid-century | 2.8 days faster
Hardwood | 2.4 days faster
Walkability / walkable | 2.4 days faster
Shiplap | 2.3 days faster
Gas furnace | 2.3 days faster

Keep in mind that these are national trends and that local real estate markets are different. If you Google what helps sell homes faster, you will likely find several pages that recommend a swimming pool. That may be great for southern California or Florida, but it likely won’t help in South Dakota.

Interestingly, a few years ago (according to Realtor.com) fireplaces were mentioned in more listings than any other amenity but they had no noticeable impact in the speed in which a home sold. I personally love the ambiance of a fireplace but today you can easily get an electric fireplace that will create ambiance without the ashes. Of course, if you have a fireplace and don’t want to deal with the mess it is possible to get a gas insert for your fireplace. However, that is an expense that you are not likely to recover as it likely won’t raise your home’s value—but you may enjoy your fireplace more and you’ll have an alternative heat source.

Choice of paint colors often have an impact on how quickly a home will sell. Neutral colors are always the safe choice. Even though bold paint colors are gaining in popularity again (after a stretch when gray was the main color), neutral colors are the safe bet if you are painting an interior to sell a home. Think whites, tan, and light gray as the safest colors.

If you are debating on making a change to your home before putting it on the market, consider doing something that will make sense. Tearing out old shag carpet and replacing it with a low pile bright fuchsia carpet simply won’t do the trick. Again, think more neutral colors.

Of course, you don’t have to give your home a complete makeover to get it ready for sale. A dated home will sell as long as it is priced right—but it might take a little longer for people to look past a home with avocado and orange (unless they are fruits in a bowl).

As always, if you are looking for some feedback, suggestions, or a comparative market analysis (CMA) of your home just contact me and I will help you.

Uncategorized Topics • September 29, 2023

Negotiating a Home Sale and Dealing with Emotions

by Ron Sasso

A little over a year ago, negotiating a home sale was off the table. The market was filled with bidding wars where sellers didn’t need to compromise. Over the past year, the real estate market has slowed down a bit. It’s still a good market, but it is becoming a more “normal” market. New listings are not vanishing. Average days on the market is now around 30 days.

The days of negotiating are back. So, it’s important to understand why negotiating is difficult. Let me explain…

You want to buy a home and but you don’t want to over-pay for it because you know it needs work. You have a home to sell and you want to get it sold but you want to make sure you can get enough money out of the deal at closing. These may seem like two different scenarios but they can actually be two intertwined dramas—each on the other side of the deal.

A good home sale has both sides getting something that they want. Sometimes a deal may lean one way another, but it should have some give and take. However, market conditions will often dictate which side will need to be more flexible.

Negotiating a home sale can be frustrating, infuriating or disappointing. But it also can be rewarding and thrilling. Most of all, home sales are filled with emotions. Many deals fall apart when those emotions take over.

Let me take a moment to explain how the brain works.

Normally, you will use all parts of your brain as needed. There are some notable exceptions. When you are under stress, your amygdala kicks on. The amygdala is tied to our limbic system which is responsible for our emotions and our fight or flight response. Negotiating home sales are stressful—and often the most important part of your brain is not being used—your frontal lobes.

Your frontal lobes are responsible for problem solving, planning and decision making. When under stress your oxygenated blood is going elsewhere.

So, what can you do to prevent making costly mistakes?

Take lots of deep breathes and calm down before responding to any offer. If you’re the seller and someone just made an offer that is well below your asking price, don’t take it personally. Too often people get emotional about transactions. Yes, it is your home that you have loved—but try to think of it in terms of a building. Try to look at it from someone else’s perspective.

When receiving a low offer, think about it this way—if you were shopping and you found a hot deal on an item you wanted, wouldn’t you be thrilled? It doesn’t mean that you think that is all the item is worth because that is what you paid for it—it’s just that you were able to get a great deal. People are often trying to get a great deal with a low offer. Don’t take it personally.

As I noted, in general the market conditions will often dictate who has a stronger position in negotiating. If there is low inventory, the seller has the benefit. If there is high inventory, the buyer has a slightly stronger position. I note that is the case “in general” as there are always exceptions to the rule based on the uniqueness of a given property (whether it is uniquely desirable—strength to the seller, or if has more challenges than most—edge to the buyer).

Another important thing to do when negotiating is to make sure you take a little time before responding—unless you have already thought out your response in advance.

When in doubt, go for a walk and clear your mind, then discuss the offer with your Realtor®.

If you would like to have more information, or need a good negotiator to work with who understands emotions, please contact me at (605) 593-3759. I will gladly assist you.

Uncategorized Topics • September 22, 2023

September 2023 Rapid City and Black Hills Real Estate Market Report

by Ron Sasso

Click here for a link to the Rapid City and Black Hills Real Estate Market Report for September 2023. The number of active listings on the market has decreased almost 17% compared to a year ago. The average days on the market has doubled compared to the same time last year but remains less than 30 days. Prices have also seemed to have leveled off and are comparable to a year ago. The real estate market report also includes several interesting articles. Topics include tips to make your home look more expensive, things lenders can’t ask you, how does the MLS work, the Black Hills Events calendar, and more!

As always, if you are looking at buying or selling a home give me a call at (605) 593-3759.

Uncategorized Topics • September 7, 2023

Rapid City – City of Presidents

by Ron Sasso

This past August 19^th, Don Perdue passed away at the age of 91 years old. I was fortunate to be able to meet him and visit with him years ago. He is someone who left a legacy behind and had many accomplishments. I thought I would take a moment to reflect on one of his projects that has forever changed Rapid City in a great way.

If you live in the Black Hills or want to move to the Black Hills, there are many fun activities in this beautiful area. You can even go to downtown Rapid City for a meal and then wander around downtown and visit the Presidents.

Rapid City is nestled at the foot of the beautiful Black Hills, just half an hour from Mount Rushmore National Memorial. But if you don’t feel like making the drive to see the Presidents on the mountain, you can just walk downtown and see almost all of America’s Presidents. There are dozens of statues of Presidents in downtown Rapid City.

Why not all of them? It was decided that there would not be a statue erected of any president while that person was still in office. It also takes time to figure out where to put the statue of a president who has left office. Also, once in a while a statue may be temporarily removed for repairs or alterations.

The great thing is that the statues are non-partisan and do not debate each other. They are part of our history. Whether or not you like a President—they still have held the highest office in our country and are a part of our nation’s history. Their statues are works of art and have taken a tremendous amount of time to be created. These works of art are deserving of respect.

The City of Presidents Foundation decides on the placement of each statue based on where it will look best with the surrounding area. Each sculpture captures a unique image of each president. The foundation is looking at areas where the statues will expand their downtown presence.

The project was the idea of Rapid City businessman Don Perdue. In 1999 he noticed how a statue of Abraham Lincoln had significant interaction from tourists. He got a Realtor® involved in the project and it took off. Oddly, the project initially was met with some opposition—as is the case with some great ideas. There were a few hoops to jump through before the presidents started popping up without controversy.

Perdue’s initial idea of 42 presidents cost approximately $2 million and the final statues of that group were placed in October 2010. The project is expected to continue indefinitely.

One other item worth mentioning is that you may notice hats, scarves, coats, and gloves on statues during the winter months (November 15^th to March 15^th). The presidents are not cold—those items are for anyone who is less fortunate who may need winter apparel. It is allowed by Rapid City ordinance during those dates.

If you are looking at buying a home in Rapid City or if you are just looking at visiting Rapid City and the Black Hills, I’m sure you will make a trip to Mount Rushmore. You should also make sure you make it to downtown Rapid City to visit the rest of the presidents who played a role in our country’s history.

Click here for a map of the presidents.

Click here for an interactive walking guide to the presidents.

Buyer Topics • August 29, 2023

Home Buying and Recreational Activities

by Ron Sasso

Okay, so you’re thinking of buying a home. You are concerned about what the home should look like and what amenities it should have. You should also think beyond the property survey boundary lines.

Buying a home has many facets that are important. If you like outdoor recreation, there are many things to consider that you won’t find on the MLS. During COVID, outdoor recreation was even more important.

Are you a runner like me? You may be thinking about where in your home your treadmill will go but you may not be thinking about running routes. Are there trails nearby to run on? How many miles can you log on them before you’re covering the same ground? Are there well-lit running areas for nighttime running? If you are new to the area, is there an active runner’s club? As a heads up, the Black Hills Runners Club is a very active group with runs in Rapid City and the Black Hills (they will have runs on the road/paved paths and dirt trails).

Do you like biking? Do you want to be close to the bike path or do you need dirt and hills for your biking fun? Rapid City offers Hanson-Larson Memorial Park and Skyline Wilderness Area—both include excellent mountain bike paths as well as running trails.

Are you someone who likes to workout with other people? Maybe you want to be close a YMCA or a gym.

Are you a golf enthusiast? Do you like the idea of walking out your backdoor and strolling onto the golf course? Would you enjoy watching golfers from your patio? Or perhaps disc golf is your preference?

How about tennis? Are there courts nearby? Or are you a racquetball fan? Are courts convenient for you?

Do you like to swim? Proximity to indoor or outdoor pools may be important to you.

How about hunting and fishing? Where will you do those?

Perhaps your idea of recreation is good food from a restaurant or looking at great artwork. You may want to look at being close to downtown. How close are the homes to where you want to be? There’s nothing like going to have a big, delicious meal and then walking home—with the feeling that you might burn off some of the calories.

These are some of the questions that you should be exploring when looking for a home. Often it is the surrounding area that makes home ownership a fantastic blessing—if you choose wisely. Frequently those activities that connect you with your neighbors and your community give you a better sense of “home.” Also, when it comes to home selling a home, those outdoor opportunities may entice potential buyers to your home.

If you are curious, here’s a link to Rapid City’s top 10 parks. Of course, your ranking might be different depending on what you like.

Take some time, think about what you want in—and near—your home. Then give me a call and I will gladly help you find your way home.

Buyer Topics • August 23, 2023

First-Time Home-Buyer Programs that can help you achieve home ownership

by Ron Sasso

Are you looking at Rapid City homes for sale and have finally decided that it’s time to stop looking and buy?

If you are looking at purchasing your first home, there are many factors that go into determining how much you can afford. The best way to find out for sure is to meet with a qualified lender who can give you a better idea of what you may be able to purchase. If you would like, you can call me and I will gladly direct you to an experienced lender.

There are also first-time home buyer program available in South Dakota that are designed to make it easier to own a piece of the American dream.

South Dakota first-time home buyer programs have income requirement guidelines that vary, depending on the county that you are in.

More information on first time home buyer programs in South Dakota can be found at the South Dakota Housing Development Authority website. The website includes such information as the maximum priced home that you can purchase through the program as well as other possible restrictions—but it is a great program!

There are also some additional programs that can help first time home buyers, such as the Grow South Dakota Housing program.

It may be possible to purchase a home with little to no money for a down payment.

There are also government-backed programs such as FHA or VA (for qualified military or veterans) that require little to no money down and have more flexibility when it comes to your credit score.

If you need assistance in the process, reach out to me and I will gladly help you!

Uncategorized Topics • August 15, 2023

August 2023 Rapid City and Black Hills Real Estate Market Report

by Ron Sasso

Click here for a link to the Rapid City and Black Hills Real Estate Market Report for August 2023. The average days on the market have increased slightly compared to the same time last year. Prices have also seemed to have leveled off and are comparable to a year ago. The real estate market report also includes several interesting articles. Topics include how to jump start your organizing to simplify your next move, why the fall is the best planting season, whether or not you need title insurance, the Black Hills Events calendar, and more!

As always, if you are looking at buying or selling a home give me a call at (605) 593-3759.

Uncategorized Topics • August 11, 2023

Lustron Homes – Ahead of their time!

by Ron Sasso

At the height of the pandemic in 2020, I had the opportunity to purchase a home that many people would have overlooked. It was an odd home. It was built in 1950 and is basically an all-steel house. All steel? Well, almost. Let me first give you a little bit of history.

After World War II there was a severe housing shortage. Soldiers were returning to the states but there weren’t enough homes available. If you think about it, during the war almost all resources were diverted to the effort for the war. Any able-bodied man was fighting in the war. New construction? Well, that pretty much ground to a halt for several years. Not to mention that one of the first things that soldiers wanted to do on leave or after returning from war was kiss their wives…and things progressed from there. You may have heard about Baby Boomers.

With this housing shortage there were many ideas being floated around. One man was looking at acquiring steel to build all steel gas stations. He was told that the government’s focus was on housing. He then saw an opportunity and quickly pitched an idea for an all-steel home. His name was Carl Strandlund.

The homes were not going to be just all-steel, they would be enameled steel. That’s the same type of steel and finish that your appliances have.

Relying heavily on secured government funding for start-up costs, the new company—called Lustron—acquired the use of airport hangar in Ohio to create a massive automated assembly line of parts to build steel homes. The assembly line stretched for several miles.

Strandlund had been working at building all steel hamburger stands (White Castle) and all steel gas stations. To make this project successful he pulled in numerous architects and designers. They worked to create a massive distribution center east of the Rockies.

The first few homes were custom. They were put on display at various locations and had tens of thousands of visitors! Yes, it was amazing! They were considered homes of the future. The all-steel design made for minimal maintenance—designed to create a life of ease for returning soldiers. Ever notice how you don’t need to paint your refrigerator? Well, that was the idea with the homes.

To save space inside, all Lustron homes had pocket doors. Pocket doors are not used often but save a tremendous amount of space. Most Lustron home models had numerous built-ins—pantries, desks, dressers—all designed to free up space in the relatively small homes. They were also considered the first homes designed for people with disabilities—veterans returning from the war.

After some trial and error in figuring out the shipping (which was quite costly), the homes were shipped on a special truck and were designed to be built on site within a few days to two weeks (with the foundation being built on-site already). They all had detailed manuals for assembly of the 3,000 parts.

The company was very meticulous. They tried to make the homes well-built and affordable. One internal discussion involved the steel support beams located in the center of the house. One executive thought it was ridiculous to use enameled steel when the beams would not be exposed to the elements. He was voted down. Everything would be enameled steel. Well, almost everything.

Insulation in between the steel panels was R-19. For 1950 that was very impressive. All the windows were made of strong extruded aluminum frames. They were all casement windows (manufactured by Reynolds Aluminum—you may have heard of the company—or wrapped a baked potato in their aluminum foil).

Interestingly, as far as the plumbing, all of it was copper. Copper is considered better than steel for plumbing—so copper was used.
The steel panels for the outside of the home were made of 20-gauge steel. Basically, strong enough for plenty of wear and tear. Many sinks are built with 20-gauge steel (though 18-guage is a little more durable for a sink). The home was designed to never need painting.

The heating system in most models had a unique design. It had a system that would heat the ceiling tiles (which also were steel) and the heat would radiate down into the house. This system was way ahead of its time…but by most reports it didn’t work well in cold weather areas. One of the last models built, the Lustron Newport (which I have), was built with a gas forced-air furnace.

When completed, the homes were nearly indestructible. Each home weighs approximately 12 tons. They were designed to be fire proof and lightning proof.

The layout of each home was well-thought out. It was efficient and maximized the use of space. The windows were large to allow plenty of natural light.

If you are thinking that these homes were amazing, well they were. In Rapid City there are three Lustron homes. Each has the original enameled steel roof. Our semi-arid climate is pretty much ideal for Lustron homes.

Sadly, by 1950 politics and finances collided. Lustron owed the government lots of money…and suddenly they wanted the money back. Homes could not be produced as fast as they needed to be, even though the factory could create a little over 20 homes a day—they needed to produce significantly more to avoid bankruptcy.

At one point, Lustron had over 20,000 people wanting to buy homes. With government pressure that some people believe was political and went all the way up to the White House, Lustron was forced to file bankruptcy. It was sold for pennies on the dollar.

When an oil CEO was appointed to resume manufacturing at Lustron (after all staff had been let go), he looked at the miles of massive equipment and reportedly said something like, “So that’s where all the money went.”

At the time of its demise, Lustron had manufactured only 2,498 homes.

There are various estimates of how many Lustron homes exist today—ranging from 1,500 to 2,000. My home, a two-bedroom Lustron Newport, is one of only 24 Newports ever manufactured (there are less than 20 remaining). It is also the only one of its kind in South Dakota. As a result of its uniqueness and contribution to history, it is on the National Register for Historic Places as the Cassidy House.

There is a museum in Columbus, Ohio (the Ohio History Connection) that has an entire Lustron home inside it and is a wealth of knowledge about Lustron houses.

With today’s housing shortage, I often wonder if this type of innovation is what is needed to fix the housing shortage.

Buyer Topics • August 1, 2023

Location, Location, Location

by Ron Sasso

When buying a home, you’ve probably heard the phrase a million times, “Location, location, location.” What does it really mean? Why is it so important? One of the most interesting things about real estate is that no two properties are exactly alike. You may be thinking that you’ve seen developments with many homes that are built with the exact same floor plans and the exact same material.

It’s true that some properties may be incredibly similar, but they cannot have the same location. They may be adjacent to each other but each property has its own unique location. Barring the incredible expense of picking up a house and moving it to a different location (or a natural disaster), the location of a home will not change.

Buying a home in a location that has unique benefits can lead to better resale value. Properties that are adjacent to National Forest Service land or homes that are located next to a park provide a unique benefit for any potential buyer. Being able to walk out your back door and go for a walk through a park is a unique feature that people won’t get tired of. Some of those benefits are great for resale value.

Additionally, properties with scenic views will always be in demand—unless the view changes.

There may be vacant property located next to a home, but if that property can be built upon, that can change the marketability of your home.

A good Realtor® should research the adjacent property and check the zoning so there are no surprises in the future.

Homes that are located close to downtown can also be very desirable for different reasons. The ability to walk or bike to shopping and events can be a major benefit to any homeowner or a potential buyer.

By the same token, a home that is located adjacent to an industrial park or on a very busy road may have different challenges for their specific location. Some buyers will not look at those types of locations as desirable when compared to a property adjacent to a park—though it will still appeal to some buyers. That’s also why it’s important to use a Realtor® when selling your home as he or she will have a better idea of what will appeal to a potential buyer.

Sometimes it’s turning the weakness into a strength—such as “walking distance to one of the largest employers” or “convenient for shopping.” Many potential home owners are looking for the ability to walk to places from their home. Many people enjoy being close to downtown shops. The ability to walk to restaurants and shopping can be very appealing.

When looking at a home, think about its location. Is it in a spot that will be desirable in the future—particularly as the surrounding areas develop? Is it protected from surrounding development? Will it appeal to most potential buyers?

Sometimes there can be areas that will be a planned development area with a mix of homes, apartments, parks, and shopping. Knowing what the long-term plan for a development can be helpful. If there is a good plan with plenty of forethought, a home’s value may increase significantly over time. Often a developer will have a long-term plan for the area that you can view if requested.

There are many aspects of location to consider. A good real estate professional can help you discern the strengths and weaknesses of any location.

When you see “Location, location, location” realize that it is the most important aspect of real estate. If you’re looking for a home in a specific location, contact me and I can help you find it.

Uncategorized Topics • July 21, 2023

July 2023 Rapid City and Black Hills Real Estate Market Report

by Ron Sasso

Click here for a link to the Rapid City and Black Hills Real Estate Market Report for July 2023. The average days on the market have leveled off and are comparable to the same time last year. Prices have also seemed to have leveled off and are comparable to a year ago. The real estate market report also includes several interesting articles. Topics include how the six most expensive home repairs, cash-out refinance vs. a home equity loan, things about preapprovals you should know, 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.

Buyer Topics • July 11, 2023

Settling Cracks: When to Worry and How to Protect your Foundation

by Ron Sasso

Many homes will experience settling cracks. As the home adjusts to its place in the world (and the soils beneath it adjust to the pressure), a home will settle into its location. Settling typically occurs in the first three years of a home’s existence.

When a house settles, it may create some small, thin cracks that create minor cosmetic issues. Those cracks typically can be patched up with a little bit of spackle.

Sometimes thin cracks may appear in the foundation as it settles. If the home was constructed properly, these should not create any issues.

However, there are times when some cracks create a more serious concern than normal settling. Soil plasticity—or expansive soils—can create issues.

What are expansive soils? They are soils that will expand when they get wet and contract when they dry. If moisture is constant, the problems are not as significant. However, in an area like ours where years of drought can be followed by torrential rain, the expansion will be much worse.

What’s so bad about expansive soils? Soils that expand and then contract will wreak havoc on anything that is rests in or on that soil.

Expansive soils can exert a tremendous amount of pressure per square inch. It it’s someone’s home, their foundation can heave and damage the structure of the home. Once a home’s foundation is damaged, it’s extremely expensive to repair—far more expensive than most people can afford.

How can you be safe? The first thing is to check for cracks. Even small cracks in a foundation can cause problems if they are wide enough for water to penetrate it.

Keeping water from a foundation is important. Too often people do not pay attention to their downspouts and if they are not properly cleaned or extended, the water will flow against the foundation.

Downspouts should always be extended away from your home’s foundation. Downspout extensions are a minor investment to protect your foundation.

If gutters become clogged up, water will overflow and land against your foundation as well. Make sure that your gutters are cleaned out.

Also, the soil near the foundation should be graded to slope away from the foundation, allowing water to naturally flow away from it. This may require a little bit of gardening-type work.

Often older homes will require some work to repair to the grade around the house so it slopes away. This is fairly common because over time rain will erode the slope. Even if there aren’t any signs of water penetration it is still a great idea to improve the slope so that water will move away from your foundation.

When buying a home, you should always make sure that you have a home inspection done. Ideally the home inspector will be able to alleviate your fears. If not, you may realize that the home inspection was money well spent. If more concerns are raised it may be worthwhile to get an engineer’s opinion if you are still interested in the property.

An engineer may get soil samples by boring into the foundation to see what is beneath it. They will look at what is directly beneath the foundation and examine the contents by drilling a small core. They may require multiple samples to determine the extent of the problem (if there is one). They will look at the sub base and the soil to see how well it is compacted and if the extent of the soil’s plasticity and moisture content.

If the engineer sees a concern, he or she can provide recommendations on how to repair the problem—and sometimes the potential cost to repair the problem.

Again, keep in mind that most cracks are harmless and aren’t a cause for concern. Being proactive to protect your home and being thorough when buying a home will be important so protect your investment for the long term.

Uncategorized Topics • July 11, 2023

June 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 June 2023. The average days on the market have leveled off and are comparable to the same time last year. Prices have also seemed to have leveled off and are comparable to a year ago. The real estate market report also includes several interesting articles. Topics include how the six most expensive home repairs, cash-out refinance vs. a home equity loan, things about preapprovals you should know, 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.

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.

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