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REALTORS®: Home Staging Cuts Time on Market

Home staging offers a distinct advantage for sellers: a speedy sale.

Sixty-two percent of sellers’ agents believe staging a home cuts down the time it spends on-market, with the majority believing it “greatly” reduces the window, according to the new 2017 Profile of Home Staging from the National Association of REALTORS® (NAR). Seventy-seven percent of buyers’ agents believe staging a home helps buyers envision themselves living in it, and 40 percent believe it prompts buyers who first saw the home online to visit it in person.

2017 Home Staging Report (PRNewsfoto/National Association of Realtors)

2017 Home Staging Report (PRNewsfoto/National Association of Realtors)

Staging can also have a positive effect on home value. Thirty-one percent of buyers’ agents and 29 percent of sellers’ agents believe it adds anywhere from 1 to 5 percent, while 13 percent of buyers’ agents believe 6 to 10 percent and 21 percent of sellers’ agents believe 8 to 10 percent. The cost of staging is often fronted by the seller or sellers’ agent.

Buyers’ agents caution, however, that staging is only beneficial if the home is staged to appeal to general, not specific, preferences. Most buyers’ and sellers’ agents believe the living room is a key space to stage, as well as the kitchen, the master bedroom and the yard. They also believe decluttering, depersonalizing and a deep clean—beyond staging—are essential for a show-ready home.

Thirty-eight percent of sellers’ agents stage all of their listings before placing them on the market, while 14 percent only stage listings that require it. A near-even 37 percent do not stage their listings at all.

“REALTORS® know how important it is for buyers to be able to picture themselves living in a home and, according to NAR’s most recent report, staging a home makes that process much easier for potential buyers,” says NAR President Bill Brown. “While all real estate is local, and many factors play into what a home is worth and how much buyers are willing to pay for it, staging can be the extra step sellers take to help sell their home more quickly and for a higher dollar value.”

For more information, please visit www.nar.realtor.

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7 Ways Roth IRAs Help Investors Purchase Real Estate

Self-directed IRAs are the only retirement arrangements that allow individual investors the freedom to pursue alternative investments, such as real estate. Investing in real estate with a self-directed IRA offers many benefits to those who are looking for creative ways to save for the future. Before you start, you may want to consider which type of IRA would be best to invest from. You have two options: Traditional IRA or Roth IRA.

The fundamental difference between a Traditional IRA and a Roth IRA is how they are taxed upon distribution. Choosing one of these options instead of the other can result in significant differences in the amount of wealth accumulated and the amount you can distribute tax-free. Most importantly, Roth IRAs have features that may benefit investors who want to use an IRA to invest in real estate.

Here are seven reasons why you might consider this strategy:

  1. Tax-Free or Tax-Deferred Earning
    Self-directed IRA investing offers great tax advantages to real estate investors, though the exact benefit will depend on the type of account used. If you use a self-directed Traditional IRA, for example, you will not have to pay taxes on contributions or earnings until you start taking distributions during retirement. With a self-directed Roth IRA, however, your earnings will appreciate tax-free, allowing you to enjoy your profits without hassle from the IRS.
  1. Wealth of Options
    When investing through a self-directed IRA, your real estate investment options are nearly endless. Choose between rental properties (both residential and commercial), undeveloped land, fix-and-flip opportunities, mortgage notes, REITs, limited liability corporations, offshore real estate, and more. Investment restrictions include any work of art, rugs, antiques, gems, stamps, or any alcoholic beverages, as well as S Corps (S corporation tax laws prohibit IRAs to invest in them).
  1. No RMDs While the IRA Holder Is Alive
    There is no Required Minimum Distributions (RMDs) for Roth IRAs. The IRA owner doesn’t have to deplete their retirement assets even after age 70½. Additionally, the IRA owner does not need to worry about liquidity or valuation for real estate assets. Simply put, they can pass assets to heirs tax-free.
  1. Beneficiaries Enjoy Tax-Free Distributions
    Beneficiaries have options for how they can deplete the inherited Roth IRA. The first option includes a complete lump sum distribution that’s tax-free, if the deceased has had a Roth IRA for 5 years. Secondly, the five-year rule option lets beneficiaries leave assets in the Roth IRA until the fifth anniversary of the original owner’s death. After five years, the assets are distributed in a lump sum, tax-free. The annual distribution is calculated based on the beneficiaries’ age (life expectancy payment option).
  1. Secure Future for You and Your Family
    If you are an experienced real estate investor, you could be using your knowledge to help secure a comfortable future for yourself, as well as your family. Self-directed IRA rules protect your retirement savings from debt collectors, which means investments held in these accounts are more safeguarded. Self-directed IRA rules also allow you to leave these savings to your heirs, so successful investing could mean a significant inheritance for your children.
  1. Flexible Contributions Year-Round
    You can withdraw contributions made to a Roth IRA tax and penalty-free at any time (i.e., ordering rules). Even if the owner has not satisfied the criteria to distribute the earnings tax-free, owners can withdraw some of the growth in value or earnings penalty free. Examples: paying for medical expenses above 10 percent of the individual’s AGI or college expenses.
  1. Contributions Are Allowed After Age 70½
    If, like many people, IRA owners want to keep on working past the “normal” retirement age, owners can keep on contributing to a Roth IRA as long as their income falls within the limits.

Once your Roth IRA account has cash in it, you can start investing immediately. You can even partner with other investors until you have enough cash to invest in real estate on your own. If you’re interested in learning more about real estate investing with a self-directed IRA, please request a complimentary consultation with one of our IRA specialists here.

For more information, please visit www.theentrustgroup.com.

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Delivering for Customers Every Step of the Way

In today’s market, it’s all about staying competitive. To that end, PNC Bank is focused on improving the home-buying experience by helping customers take control of their home mortgage borrowing experience. Whether it’s buying a home, saving for retirement, investing for the future or finding the right credit card, PNC helps customers gain the confidence they need to make important financial decisions.

“Culturally, there’s something about this company that separates us from the competition,” says Charlie Crowe, market manager, Washington, D.C., PNC Bank, National Association. “We really do pride ourselves on doing business the right way by ensuring a positive experience and putting customers first.”

Offering a suite of mortgage products, all the way from affordable to portfolio jumbo loans, PNC has its own 3-percent down affordability product, in addition to down-payment assistance, for those buying in a low- or moderate-income area. PNC also offers the whole suite of FHA, VA, Rural Housing Service loans and conventional products—both Fannie Mae and Freddie Mac—which are attractive to a lot of borrowers, as well as a suite of luxury portfolio products.

“The fact that we retain servicing on each and every one of our loans is another key advantage we have over the competition,” says Staci Titsworth, vice president/regional manager, Northern Ohio/Pittsburgh Region, PNC Bank. “This means a lot to clients as it shows we’re committed to building relationships with our customers.”

Building relationships with customers and offering a high level of service are two of the founding principles that guide every decision made at PNC.

“The level of service and transparency we provide is instrumental in helping real estate professionals stay ahead of the curve when working with today’s buyers and sellers,” says Jordy Castillo, market manager, PNC Bank, New York, N.Y.

“We pride ourselves on doing the best we can upfront, which includes communicating with both the client and other parties involved in the transaction so that they always know what’s going on,” adds Castillo, an even more important piece of the puzzle today thanks to the new TRID requirements that are now in play.

“It’s now on us to disclose to customers in a slightly different way, which has not only added time to the process, but it’s made us more cognizant of taking the time to prepare the borrower for the process in order to hit closing dates on time,” says Crowe.

But it doesn’t end there. In fact, PNC is upping the ante even further as they launched PNC Home Insight® Planner, an online home-buying experience geared toward millennials that helps homebuyers understand true home affordability.

Planner provides customers with the ability to prepare a budget, calculate payments and ultimately shop for homes within their budget, while at the same time providing real-time mortgage rates and product information. The experience ensures homebuyers understand the true cost of homeownership, beyond just the monthly principal and interest payment. Planner even prompts buyers to consider retirement and savings when thinking about affordability.

“The more education a buyer has about home affordability, the easier it will be for the agent and lender to guide them through the experience,” says Crowe.

For Castillo, it’s the level of transparency intrinsic in everything the company does that will provide the biggest benefit in integrating Home Insight into his business model. “It gives us a better handle on the process and keeps buyers better informed, while providing the clarity and transparency we love.”

Continued growth—and a focus on doing more of the same—is a common theme as we head toward the future. “Looking forward, we’re going to continue expanding our presence in the markets we serve while delivering for our customers every step of the way,” concludes Crowe.

For more information, please visit pnc.com/planner.

Disclosure:

PNC and PNC Home Insight are registered service marks of The PNC Financial Services Group, Inc. (“PNC”). PNC has a pending patent application directed at various features and functions of Home Insight® Planner. All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal. This information is provided for business and professional uses only and is not to be provided to a consumer or the public. This information is provided to assist real estate professionals and is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. Programs, interest rates, and fees are subject to change without notice.

©2017 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC.

Paige Tepping is RISMedia’s managing editor. Email her your real estate news ideas at paige@rismedia.com.

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Ask the Expert: What Advice Do You Have for Homebuyers Forgoing a Home Inspection?

Today’s Ask the Expert column features Dan Steward, president of Pillar To Post Home Inspectors.

Q: What advice do you have for those thinking of buying a home without waiting for a home inspection?

A: As housing markets continue to heat up, many buyers are forgoing the important step of getting a home inspection. While this isn’t a widespread phenomenon, it can easily occur when a particular market heats up. In fact, when a market gets hot, buyers are afraid that if they put in an offer contingent on the outcome of a home inspection, they may lose the home to others who are willing to take the risk of buying the home without that contingency.

While some have been able to dodge the bullet, others have purchased homes without inspections, only to find that there are thousands of dollars in repairs needed.

In fact, a recent home inspection revealed a crack in the cement floor of a garage attached to a home. While the crack appeared to be tiny, the home inspector later revealed that it was there as a result of a giant oak tree next to the garage. The roots were so huge that the floor would eventually be broken by the tree’s growth. By removing the tree, the cost was only a few hundred dollars; however, the inspector noted that five years down the road, the entire garage floor would have needed to be jackhammered and replaced, costing thousands.

Understanding the importance of home inspections, many of our franchisees offer an immediate post-closing inspection for the sake of catching items that, while small at the moment, can grow into something very large and costly.

For more information, please visit www.pillartopost.com.

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