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Archives for November 2022

Selling Your Home During A Real Estate Slowdown

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Selling a house is not as easy as it used to be last year, or six months ago. Many sellers feel they are facing a Sisyphean task, given the news that we seem to be sliding into an unofficial depression and a serious slowdown in the home market. A Federal Reserve interest rate increase of 0.75% will likely push up mortgage rates, which have already reached a 20 year high. This will further stress a stressed market.

If you are in a position where you can sell, there is no reason to lose heart.

It might not be possible to receive multiple offers for your home if it is priced higher than the asking price. With a little planning and strategic thinking, it’s possible to schedule the moving trucks in no matter how fast you are.

We hear from real estate professionals who have seen worse markets than we think.

Many potential homebuyers may struggle to balance the realities of rising mortgage rates with their goals. Offering an interest rate buydown can help reduce their monthly mortgage payments. This is a great way to make them feel at ease.

A buyer and his lender will usually negotiate an interest rate buydown. Sellers may offer to purchase down a buyer’s mortgage. A seller-paid buydown is where the seller pays a specified amount to the mortgage lender of the buyer to lower his interest rate.

A rate buydown is a special amount of money that is credited to the buyer at closing. This money can be used to pay points on the buyer’s mortgage. Buyers have the option to refinance if rates drop again so they can use this to pay their closing costs.

A buydown can be arranged by offering to pay a percentage point. You can also offer to reduce their interest rate by one or two points at closing. This will directly address a problem that many buyers face and likely have less impact on you than you realize. A drop in price of $30,000 to $50,000 is still a small amount. In today’s market, buying down points works well.

If your home wasn’t built recently, it’s likely that there are big-ticket items such as your boiler, your roof, or your HVAC system that need to be replaced.

If your roof is more than 15 years old, you will need to replace it soon. It is a great bonus to offer to do this before the sale or to escrow funds to pay the costs.

While some sellers may have to reduce their prices, you can make it more likely that you land a buyer. You’ll be able to quickly adjust your listing and get multiple offers and lots of showings. You can also trigger interest by scheduling micro price drops. Schedule price drops to be made available at times that you are available for showings, and go down by 1% every month.

You might be willing to give up any assets you don’t usually include in a home sale if you are selling your home or downsizing. You might consider offering one of these to buyers as a tempting tidbit. It is difficult to sell right now with the competition so capturing buyers‘ interest is key. Sometimes it is as simple as offering and highlighting high end appliances, unusual items, or cars, as well as solar panels, large-screen TVs, and even gardening tools.

The U.S. Department of Veteran Affairs backs VA loans and they don’t require down payment or mortgage insurance. This makes them very popular among those who are eligible. One benefit that many are unaware of is the possibility that VA loans may be assumed or taken on by buyers. You should market any VA loan that you may have. They can often cover up to 40% of the sale price and are typically at a very low interest rate.

The current housing market is extremely uncertain. Adding a layer of predictability to the equation can prove to be a great boon.

Sellers might offer to buy a home warranty to protect their home while it is on the market. The warranty can be transferred to the buyer after the property is sold.

Most home warranty contracts last for 12 months and can cost between $250 to $1500 per year depending on the warranty provider.

Your buyer will feel confident knowing that a home warranty is included with their home purchase. They feel more confident making big decisions about their home.

 

Original Blog:  https://www.realtor.com/advice/sell/how-to-sell-your-home-during-real-estate-slowdown/

 

Holiday Real Estate For Buyers

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It’s believed that the holiday season is when the real estate market closes. This myth makes it a bad time to purchase a home. Did you see the “myth”?

You can get a great deal on a home by buying it over the holidays, while also minimizing competition. If you are looking to buy a home, here’s some information.

There will be many lights and inflatable Santas. You might find 20 years worth of holiday decorations in a home. Although these sellers were smart to keep holiday decor lightened and decluttered, you can see beyond that. How does the house’s bones look? What floorplan do you want? How big are the rooms? What kind of updating will you need to do? No matter what the sellers have done to their homes, it is important to ask your key questions while you tour.

It’s easy to get sucked into a low-priced home and become blinded by its affordability. This can lead to you overlooking a floorplan that doesn’t work for you, or a neighborhood that isn’t in your top tier. It can be helpful to have a list of “must-haves” before you start house hunting.

A home that is on the market during the holidays may not have been staged and updated to your liking. It’s possible that there is a reason why the home is being sold at this time of the year. Maybe there was a job change or transfer. You might find a great deal if you are willing to overlook the small things.

Fortune Builders stated that “if there is one undisputed truth about holidays, it is that real estate inventory tends to be lower during holiday months.” “There is simply less realty activity during holidays — less people selling homes. This is compounded by the fact that there are fewer realtors, mortgage lenders, and inspectors than usual. This can be a great advantage for home buyers in the holiday season, as there is less competition. You’ll find less buyers if you are able to find the property you want. This will increase your chances of getting a fair price, which can help you save even more.

However, there are limitations to what low you can go. Your agent can help you make sure that your offer is strong. It’s not a good idea to offend the seller or lose the house.

You don’t have to wait if there’s less competition during the holidays. There are many smart buyers out there who are looking for homes right now, so if you’re smart enough to do that, others will be doing the same. Don’t let the house go if you don’t love it.

According to The Mortgage Reports, only a few real estate agents can sell most houses in many areas. They often work at the largest agencies and communicate with each other about the latest market trends. This is crucial because fewer properties are available between Halloween and New Year’s Day. A connected, successful agent can help you gain early access to as many houses possible.

Today’s real estate agents won’t take clients to view homes if they don’t know what their budget is. Perhaps a family member or friend who is an agent might let it slide for the sake seeing what’s available. You don’t want to fall in love and then lose the home because you had to talk to a loan officer when another buyer was ready, prequalified and ready to make an offering.

You should ensure that your house is in good condition if you are selling it at the same time as you buy a new one. Your purchase could be delayed or stalled if your house isn’t available for sale when you make an offer.

 

Original Blog: https://realtytimes.com/archives/item/1034640-holiday-real-estate-a-buyer-s-guide?rtmpage=

If Mortgage Rates Remain at 7%, Home Prices Won’t Fall Significantly. However, They Could Rise Slightly in 2023.

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According to Lawrence Yun, Chief Economist at NAR, severe shortages of housing inventory will keep large price drops from most of the country next fiscal year, despite high inflation, rising mortgage rates, and slowing sales activity.

Yun shared his outlook for 2023 at 2022 NAR NXT, The Realtor , Orlando, Florida.

Yun stated that home prices have been stable in most areas of the country because there is very little inventory. Some areas are experiencing price increases, while others, most notably California, are seeing prices drop.”

Yun said that the market conditions today are fundamentally different from those during the Great Recession.

Yun stated that the housing inventory was only about 25% of 2008’s. Yun said that distressed property sales are nearly non-existent at 2% and not near the 30% mark during the housing crash. Because of the substantial price appreciation over the past two years, short sales are nearly impossible.”

Yun explained that the extraordinary rate at which mortgage rates rose in 2022, from 3% in Jan to around 7% today, has caused a downturn in housing market.

Yun stated that the decline in home sales and home construction has “brought down GDP.” GDP would be positive if the housing market were stabilizing and not falling.

Yun said that there are signs suggesting that mortgage rates will rise, especially since October’s consumer price index showed an inflation decline. However, he expressed concern over the spread between federal funds rates and mortgage rates.

Yun stated that the gap between the 30-year fixed rate mortgage rate and government borrowing rate today is larger than it was in the past. If there wasn’t this gap, mortgage rates would not be 7%. They would be 5.8%. Normal spreads would help revive the economy. If inflation is eliminated, we will see less anxiety in the financial markets, and lower interest rates which will allow owners to refinance.

Yun predicts that home sales will decline by 7% in 2023. However, the median national home price will rise by 1%. Some markets may experience price increases while others see price drops.

He projects a strong housing rebound in 2024 with a 10% increase in home sales and an additional 5% in the median home price.

The National Association of Realtors represents more than 1.5million members in America’s residential and commercial realty industries.

 

Original Blog: https://realtytimes.com/real-industry-news-articles/item/1045981-nar-s-lawrence-yun-predicts-us-home-prices-won-t-experience-major-decline-could-possibly-rise-slightly-in-2023-if-mortgage-rates-remain-at-7?rtmpage=

Holiday Real Estate For Sellers

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Are you looking to sell your house during the holiday season? Perhaps you have had to move quickly or your job has changed. You can do it. These are some tips that will make it easy to sell.

This time of year there are fewer buyers, so an overcrowded open house or panic that leads to multiple offers is unlikely. Although no agent can predict when or how much a property will sell, they are able to provide market information. You should be able to anticipate what you can expect from an agent who has done extensive research. You will be able to set realistic expectations.

While the listing price is important in any season, there is more flexibility during spring and summer. A reduced buyer pool means that pricing your home for sale is more important than ever. This could mean that the home might sell for less than you expected. Your agent will know more about the market than you do, regardless of how you feel about it or how much you have invested in it. Listen to them. They are only interested in selling your house so that you can move on.

To appeal to buyers, you don’t need to spend a lot of money or make a huge home. The best staging tips don’t have to cost anything. Depersonalizing and decluttering are at the top of this list. These activities will allow buyers to see themselves in their home, rather than get caught up in all the stuff.

It is important to focus your efforts only on the most important spaces. Moving.com stated that not all rooms can be considered equal in home staging. com. The living room, master bedroom and kitchen are the most important rooms for buyers. You don’t need to worry about rooms with less importance, like guest bedrooms, bedrooms for children, and bathrooms.

This time of year, it might be harder to sell to families because many are already settled and the kids are in school. However, you do not need a lot of buyers. You only need one. It’s possible to relocate, so it’s not uncommon.

If you live in a family-oriented neighborhood, and are trying to appeal to families with children, it’s a good idea to highlight the family aspects of the area. Perhaps you could create a flyer that can be left behind with information about the school district, local parks and even babysitters in your neighborhood.

It’s not the right time to allow leaves to accumulate on your lawn. It can be difficult to keep your front yard tidy in fall and winter. However, it is a must-do for selling. You should be prepared for unexpected showings. Make it a habit of looking at your home from the street every day so that you can see the inside and help buyers clean up any clutter.

Tastefully decorated homes will be noticed for all the right reasons. Your home shouldn’t be remembered just for its Christmas decorations. The Balance advised that you should reduce the number of decorations. Too many decorations can become overwhelming and distracting. Do not assume buyers will see past it. Agents often say that the eye buys.

Selling your home during the holidays can be difficult because you have to be available to show it to potential buyers. This means you will have to limit holiday gatherings at your home and make sure that the house is spotless and clean. It is even more difficult when the kids are not in school. Flexibility is important because you never know when you might get a call asking for a showing. Ask your agent to schedule a virtual open house.

 

Original Blog: https://realtytimes.com/archives/item/1034639-holiday-real-estate-a-seller-s-guide?rtmpage=

Why Indoor Air Quality Is Important

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Air quality, both indoor and outdoor, is a topic that is becoming more prominent. Experts are discussing how to combat wildfires and smog, and what steps to take to make sure that our air quality is healthy and sustainable. Indoor air quality is something that many people have neglected in the past.

Indoor air quality is still an important part of a healthy home. This is why you should be concerned about it for your clients as well. We don’t have weather apps or meteorologists monitoring indoor air quality to tell us when it’s safe for us to go outside. It’s crucial to be familiar with indoor air quality so that you can educate your clients and yourself.

The air quality index measures the overall quality of air in a particular area or place. The air quality index ranges between 0 and 500. Higher numbers indicate poorer air quality. Each company’s device registered our home as having a good overall air quality index. However, there were external factors such as construction and seasonal allergens that warranted more detailed measurements.

During winter testing these sensors, one of the first things we noticed was that the house’s air was dry at 20% humidity. According to the Mayo Clinic, indoor humidity should be between 30%- 50%. Low levels can lead to dry skin and irritation of the nose. People can feel congested if they have high levels. High levels of humidity can lead to serious health issues like mold.

Our home now has a constant humidity of 45% throughout the year since we installed a humidifier. All three sensors were able to track and update humidity changes, and they were all on the same page.

A large number of volatile organic compounds (VOCs) can volatilize in the air at room temperatures. VOCs can be harmful to the air quality in homes. They are found in household staples like air fresheners and cleaners as well as new furniture and carpeting.

PM2.5 refers to fine particles that have a diameter less than 2.5. This includes bacteria, fungi, and emissions from oil, gas, and coal combustion. PM 10, which is the largest particle typically monitored by air quality monitor systems, has a diameter of 10 to 20 microns. It also includes pollutants such as pollen and pet hair.

Radon is the second most common cause of lung cancer. Many states now require passive radon mitigation systems to be installed during new home construction. When buying a home, buyers are advised to run a radon test.

The EPA (link is external). considers a level above 4 pCi/L (picocuries/liter) to be high and requires mitigation. However, the agency also stated that radon exposure levels are not safe at this time. Therefore, any home with levels above 4 pCi/L must be addressed.

Airthings, the only consumer-grade air quality monitoring system, detects radon over time and graphs it. Airthings recommends that you wait 30 days before you take any action based upon the results. Our home was built 3.5 years ago. It has a passive mitigation system so our radon levels have been reduced. However, many clients have found elevated levels that have been corrected with mitigation systems. Mitigation costs approximately $1,200 in Minnesota.

Carbon dioxide doesn’t have to be a bad thing. It’s actually a necessary component of the air we inhale. When CO2 levels exceed the oxygen level in a given space, it can become a problem. Too much CO2 can make you feel tired, sleepy, or less focused. It can cause serious health problems if it is too high. We tested three systems and found that Airthings’ View Plus (link is external) model shows CO2 levels in parts-per-million. It will alert the user if they are too high.

There are many invisible factors that can impact the quality of your air, including allergens and pollutants. A monitor is a worthwhile investment.

An air quality monitor can give you the information you need in order to correct any air quality problems that may exist in your home. Your home will be more comfortable and safer if you can address any air quality problems. You can determine the best solution based on data from your monitor.

 

Original Blog: https://www.nar.realtor/magazine/real-estate-news/technology/manage-indoor-air-quality

Loan Estimate

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After applying for a mortgage, you will receive a loan estimate. Lenders must give you a loan estimate within three days of receiving your application.

The loan estimate provides details about the loan that you are requesting. This form was created in 2015.

The information you get with a loan estimate may include the following: Monthly payments, estimated interest rates and total closing costs.

Information about insurance and taxes will be provided. You can also find out how interest rates and payments could change at any given time. You will also be informed about the special features of your loan through this form. It will inform you if your loan has a prepayment penalty. If applicable, the loan estimate will also include negative amortization. Even if your payments are on time, negative amortization can increase your mortgage loan balance.

The description of your loan product will include the negative amortization option.

As the title suggests, this document contains preliminary information that is not final. Although it is an estimate, it can help determine the loan you should apply for and make a commitment to.

Buyers will be provided with a loan estimate that includes prepaid interest, third-party fees and closing costs. The buyer will also receive a detailed estimate payment to get a full picture of the transaction’s costs. It is easy to compare and see the costs of different lenders as all will use the same document.

Lenders cannot hide fees with loan estimates, which can also be a useful comparison tool.

Lenders are required to give you a loan estimate within three business days after you submit your mortgage application. Before they can provide you with a loan estimate, lenders will need some information, such as your legal name, social security number and proof of income. They also require proof of desired property address, price, and loan amount.

You’ll find the following information in the first page and section of a loan estimate:

  • * The term of your loan is usually 30 years. However, other terms may be possible.
    * Product refers to the type of mortgage that you are applying for such as a fixed-rate mortgage or an adjustable-rate mortgage.
    * What loan type is it? For example, is it a conventional or VA loan? It could be an FHA loan or VA loan.
    * A rate lock is when your lender locks down the interest rate on your mortgage and the expiration date.

Information is provided in the second section.

  • * How much you can borrow and how it can be increased
    * The interest rate is a percentage and can be increased.
    * Monthly principal and interest is the monthly mortgage payment, excluding homeowners’ insurance and property taxes.
    * A prepayment penalty is a fee you may have to pay if your loan was not repaid by the due date or you made an additional payment.
    * If there is a balloon payment. This is a lump sum that you must pay at the end your loan term

Information is included in the third and fourth sections.

  • * Payment calculation: Breaking down your monthly mortgage payment, principal and interest, private Mortgage Insurance Premiums, if applicable, as well as escrow amounts
    * Monthly estimated payment
    * Estimated taxes and insurance.
    * Mortgage closing costs estimates
    * Cash to close is the estimated cash amount, which includes closing costs and any other charges you may have upfront

The second page of a loan estimation includes three major elements: loan costs, other charges, and cash to close.

The second page should focus on the origination fees and any fees that you will be charged for items you cannot shop for. These charges vary from one lender to the next, so it is important to compare them. Other charges are not subject to much variation between lenders. You can search for the services needed to close a mortgage. This includes how much they cost. You can’t shop services such as an appraisal or credit check.

The name of the loan officer or lender will be included on page three. This information is useful for comparing loan estimates. The first will show you how much of your loan principal your loan will pay off over the first five year. It’ll also show your annual percentage rate (APR), and total interest percentage.

It’s a great time to review your loan estimate and ask any questions that you may have.

 

Original Blog: https://realtytimes.com/archives/item/1045883-what-is-a-loan-estimate?rtmpage=

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