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Buy, Sell, Build, or Stay?

Embracing the real estate environment with Mike, Antione, Mandy and Matt

Drinks were poured and discussion flowed at One 19 North as Mike Swaleh, Area Manager at Fairway Independent Mortgage Corporation, gathered with three of his peers to discuss the current real estate environment: Antione Lawrence, Partner at Hybrid Real Estate, Matt Moore, owner of FM Design-Build, and Mandy Shields, President of INhance IT Home Staging. 

Describe the current real estate environment.

Mike: We are all resoundingly grateful to be in this industry doing what we love. The fact that we are sitting here, busier than ever, is a huge blessing. That being said, we’re facing a serious housing issue.

Antione: Inventory is extremely low. There are not many opportunities for buyers in our area.

Mandy: Our design work has increased because people are choosing to stay in their homes, and they want help designing their space to be conducive to everyone being home.

Matt: Currently, there is a month and a half of inventory. That means, if no additional homes go on the market, we'll sell out in the St. Louis area in less than 2 months.

Mike: I've seen properties receive over 30 offers this year and we are only 10 weeks into the year. The demand for homes is going to be around for a while because it's driven by demographics - not just economics. The economy could turn and pull back some of the demand by 25 or 30%, and it would still be a seller's market. When we look at the demand for housing, we look at how many people turn 33 each year. That is the average age of a first-time homebuyer. The number of people who turned 33 over the last couple of years, and the number of people turning 33 in the next three years, are record highs each year. 

Matt: A couple of our clients chose to build with us because they lost out on multiple offers on houses, and they were the highest bidder.

Mike: However, when you have 30-something offers, it’s not the highest price that wins the offer. It's the surest bet. Our company has a program that makes our buyers the surest bet. With our program, 80% of the underwriting work is completed upfront. By the time a buyer finds a house, their offer includes a letter indicating they’ve been vetted and approved. That tells the seller that our buyer can close faster, they are more reliable, and there is less risk involved. 

Antione: Buyers need a good agent who knows how to differentiate between the highest offer and the best offer.

Is now a great time to sell a home? 

Antione: It depends on the seller's mobility. Many people aren't selling homes because there’s nowhere else to go. The number one thing I ask sellers is, "Do you have a place to move?"

Mike: For the longest time, sellers would list their house, get an offer, and would then find a house to buy. Now it's the opposite because it’s so much harder to find a house than to sell a house. 

Antione: Because of the market, you can't submit an offer on another house if you have a contingency.

Mike:  The economy is doing well, and interest rates are low. More people can qualify for two housing payments, which means they can buy before selling. 

Mandy: That’s where staging comes into the picture. People are moving out of their old home before they list it. We are staging vacant homes to prepare them for sale and we'll help design the space in their new house.

Antione: Staging sells homes. The value of a property with staging is 15 – 20% higher. That could be a game-changer.

Mandy: 99 – 100% of buyers look at a property online first. The staged homes are always at the top of the list buyers want to see. We focus on creating a luxury look no matter the home's price range. We use the same furniture regardless of whether a home is a $150K condo, a $250K home, or a million-dollar home. We integrate different colors, woods, metals, neutrals, and textures to create a look any buyer would love.

Antione: Unfortunately, that's not a good market for buyers. The opportunity for buyers is to build or have a lender that can advocate on your behalf to put your offer over the top.

Matt: Finding the land to build is just as competitive as finding the house.  And lumber prices have doubled. But the market is slightly better for people looking to build. 

Buy vs. build

Matt:  Building allows buyers to take their time and choose their house. They don't feel like they are settling on a house that doesn't fit their needs. And they can build a new home at the same price point they were willing to pay on an over-market competitive bid for an existing home.

Mike: Owning your own home is the American Dream, but building your own home is the pinnacle of the American Dream.

Matt: Building a house has a reputation for being overwhelming. I solve problems every day, so I'm comfortable shielding my clients from the burdens that come with building a custom home. 

Mandy: This is the first year that the pandemic completely controlled the customized home trends. Home offices and open floor plans have changed because people want their privacy.

Matt: We've had some really creative requests from clients. Home offices are priorities in the new homes we are building. We've had requests to turn big walk in-closets into offices.

Mike: After each of our clients close on their home, we make sure they have access to a multitude of resources. We have systemized processes that allow us to check in with the homeowner on an annual basis to make sure their current home mortgage still fits their needs. But our priority is helping clients win, whether they are buying or building a home. 

Antione: We value each client tremendously. We are a small brokerage with 12 agents, but we are competitive. We have a great brand with 5-star reviews. We like being small, so we can cater to our clients' needs and exceed their expectations whether they are buying or selling.

Buying and selling a house is overwhelming. How do you make it easier?

Matt: Typically, when people build a custom home, they’re presented with a change order every time they want to customize their home. That's not how we work. We want to show our clients the pleasant parts of building a house rather than them getting nickeled and dimed with change orders. I want this to be an enjoyable experience for the homeowner. It's a big deal to build a custom house. Our goal is to make it a fun process.

Mandy: We offer staging consultations to detail everything needed to prep their home for photos and showings. We help prioritize and provide checklists and information to make the process easier. 

Antione: For sellers, we are very hands-on. We handle the entire process and all the transactions, including coordinating the cleaning, staging, and pictures. It's fast. We ask that they take our expertise, especially when facing multiple offers.

Mike:  We work with real estate agents to help their buyers win their offer. We pay attention to what is going on, and we are willing to adjust. We are a holistic lender, which means looking for more than one path to secure a loan. We help buyers compete.

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