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Monday, June 18, 2018

Interest Rate Impact

Interest Rates Jumped to a 7-Year High

Yes – interest rates have moved up but so far, nothing crazy. The experts have an explanation for that and the relationship of gasoline prices to higher interest rates. Have a look at today’s report by clicking on the link just above.

How Current Interest Rates Impact Your Purchasing Power

Again, you are going to need to click through to today’s report. There is a chart showing incremental increases of ¼ of 1% and the impact that has on your buying power. Clearly, there is reason to buy while rates are still on the lower side – or risk getting less house or a higher payment.

One of the biggest mistakes is trying to save more money for a down payment while prices and interest rates are moving up. Typically, it does not work in your favor!

We have an entire page on Purchasing Power. Check it out.

As Mortgage Rates Rise, Will Home Prices Fall?

Lots of good news here. The consensus indicates a strong and healthy economy and favors robust home price appreciation. If there was a war or financial catastrophe, all predictions are off the table. But, realistically, the economic engine of the country is running just fine and increased interested rates will be assimilated.

Sunday, June 17, 2018

Saturday, June 16, 2018

Rent - or - Own

In the Majority of the US, Buying a Home Is Cheaper Than Renting

More often, we are hearing that the cost of buying is cheaper than renting in the majority of the US. In 2018, that statement holds true again. There are quite a few numbers to consider in the report linked above – and in the one that follows. Have a look and decide if the timing to buy a new home is right for you. Time to let the landlord pay his own mortgage - or find someone else to!

Have a Look at the Cost of Renting vs. Buying

Have a look at the chart. It takes more of your income to qualify for rent than it does to buy. Go back and read that again. Who would have thought?

Do You Know the Top Reasons to Own Your Home?

Why own? Well, at the end of 30 years, you have a paid investment (unless you borrow on it of course). At the end of 30 years renting – you have a stack of rent receipts and a bill due next month!

Along the way, as an owner you can essentially do what you want to do, you enjoy more freedoms, you are a broader part of the community – and you have achieved a goal. It takes a first step to begin and a fair portion of your lifetime – and worth it!

Thursday, June 14, 2018

Sell With A Pro Today

5 Reasons to Sell This Summer!

Move up. Move on. Get it done quickly – beat the rush! With the lower inventory of available homes – it is a sellers’ market! It is all about supply and demand. This is going to be one HOT summer! Are you in?

Buyers Are Out Now. Don’t Wait to Sell Your House!

What happens if you hold off – for whatever the reason? You would miss a market that does not have enough inventory to support the buyers out there who are ready to buy. As more folks list, inventory increases and you have more competition. We are early in the shopping season and a perfect time to jump in – and time for you to shop for your new home before prices and rates move up higher!

Selling FSBO Could Cost You

Statistically, somewhere around 90% of folks who try to go it on their own eventually turn to a real estate professional to help them sell their home. There must be something behind that!

Consider the psychology of a FSBO. Your potential buyer knows you are saving on real estate fees. There is an expectation that you can sell your home for less since there is no middleman. You see the money saved going into your pocket – the buyer sees things differently.

Suppose you price your house wrong. Too high, it will not sell. Too low, you lose money. How do you know when you sign the sale contract that the buyer is qualified to make a purchase and finance it? How do you get out of the contract if things go wrong? Who do you let in your house – does safety matter?

Why You Need A Pro in Your Corner

Real estate professionals train hundreds of hours – sales training, marketing, legal and the art of negotiating. Professionals deal with all the bumps in the road that can occur in getting the deal closed. They deal with the title company, the inspectors, lenders and more! It is not a matter of placing a sign out front or placing an ad on the internet. I suppose that is why so many who try FSBO do turn to professionals for help. Talk to a professional today - it matters!

Tuesday, June 12, 2018

Healthy Housing Market

Today’s Housing Market is NOT 2006 All Over Again

It has been over 10 years – based on inflation alone, housing prices should be higher than where they are now! And, based on an 11.5-year calculation, houses are underpriced by about 18%.

Tougher mortgage standards are in place. We have seen some relaxing of the super restrictive standards following the bust, but tough and financially sound practices remain, unlike those in 2006. Mortgage debt and the housing affordability index all show improvement. Check out the link above for more information. It is a great time to buy a new home – or your very first.

The Reason Home Prices Are Increasing

It is pretty much the law of supply and demand. There are more buyers than sellers and that has created a sellers’ market and pressures on price. Does that mean prices will suddenly drop – no. Adjusting for inflation, home prices still have a way to go – or should we say, “grow”. It is a sign of a continuing healthy market – and a great time to invest.

Have You Checked to See How Much Has Your Home Increased in Value Over the Last Year?

There is a year over year index in the report linked above, but on this one, I want to stress that real estate is local. Real estate pricing is not national, state, county or even city. Pricing changes occur at the neighborhood level. For your best, most accurate information – see a real estate professional (push-button estimates are not your best resource!)

Finally - Homeowners & Appraisers See Closer Eye-to-Eye

As home prices were moving up, it became harder for appraisers to find adequate comps – and harder to reconcile the differences between what homeowners thought their home was worth and what the appraiser could qualify. At times, the disparity was huge.

Things have notably improved! For the first time in a few years, the homeowners and the appraisers are much closer together on price. That strengthens the selling position if a home is priced right! Be sure to click on the link above for a more in-depth look!