Preferred Properties of Texas

The Preferred way to buy & sell property for over 25 years

October Might Just Be The Best Time To Buy

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Are you thinking of buying a house? We have good news for those who are.

Although it’s clear that the housing market has had a fantastic year, most headlines focus on the benefits for buyers. What about buyers? You’ll likely be facing bidding wars as you look for the perfect home. You don’t have to feel discouraged if you are looking for your dream home.

There is a golden window for those who are looking to purchase a home.

There should be an increase in the number of homes for sale. realtor.com predicts that more homes will be on the market in October. According to the findings, 17.6% more homes will be available than we had at the beginning of the year.

This will allow you more choices, which is a relief in a tight housing market.

You should see a slight decrease in bidding wars as there are more homes on the market. Because there are so many options, buyers might not be as competitive for homes because they have more options.

This means that writing an offer may be less competitive and have a greater chance of winning the bid. It’s important to make a strong offer.

As we approach the end of the year realtor.com suggests that this week could also be one the most popular weeks for price reductions in the 2021. The data from the past shows that an average of 7.0% homes experience a price drop in this week. What is the reason? Why?

This means that although home prices continue to appreciate overall, there may be some homes where price adjustments are made by eager sellers. Closing a house is a lengthy process. Sellers may be more motivated to close by the end of the year if they can do it in October.

Don’t let your enthusiasm die if you are in the market to buy a home. According to data, early October could be the time you finally find the home of dreams. To keep you motivated and on the right track to finding the perfect home, you should rely on an experienced real estate professional as your advisor. Give us a call today. 

 

Link to original article: https://www.keepingcurrentmatters.com/2021/09/28/early-october-is-the-sweet-spot-for-buyers/

What Can Affect Your Home Value?

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Real estate experts know that homes in desirable locations or within the boundaries of top schools will sell at a higher price. The location is an important factor in determining the price of homes. What are the factors that can lower the home’s value? What makes a neighborhood less desirable?

Bad Schools. Young families are looking for homes that are zoned for the best schools. Homes with low school ratings aren’t highly sought-after. Property values are affected more by living within the limits of schools with poor ratings than any other factors. According to Great Schools, the median home price for zip codes with schools rated 1 through 3 out of 10 is $155,000.

Strip Clubs. This one seems to be the most expected on this list. A young family would not want to live near a club with an adult theme. These clubs often have loud music blasting and unsavory people hanging out outside. Realtor.com surveyed many areas with strip clubs in large metropolitan areas. One neighborhood had 10 clubs. Washington Park, East St. Louis, IL. This neighborhood has only seen a few homes sell in the past three years, and the median home price is $10,000.

Lots of Rentals. Is it possible for a neighborhood with high levels of rental units/buildings to lower its property value? Although it is difficult to do an exact analysis of this factor, the research revealed that higher property values were associated with areas with more rentable homes.

Homeless Shelters. Shelters for homeless people can often be seen as the unloved misfits of a community. Although there isn’t any hard evidence to prove that homeless shelters bring in more crime than others, shelters can attract a diverse group of people and emergency calls numbers go up in areas close to shelters. The property values of areas with homeless shelters are almost 13% lower than those without them.

Cemetery. Cemeteries can be quieter than other neighborhoods, but there are still people who don’t want to live in close proximity to the living. The median home price in zip codes with cemeteries was 12% less than the neighboring zip codes.

Factors that Bring Down Value less than 10%

These last factors  bring down property values less than 10%, but are still worth noting.

  • Funeral Homes- 6.5%
  • Power Plants- 5.3%
  • Shooting Range-3.7%
  • Hospitals-3.2%

While location is important when it comes to real property, there are many other factors that can help homes sell for top dollar. With the help of an expert selling agent you can get your home sold for a great price.

Take Advantage of Today’s Low Rates Before They Begin to Rise

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Mortgage interest rates in today’s realty market are at or near record lows. If you have owned your home for many years, and haven’t refinanced recently, it’s likely that you have an interest rate on your mortgage that’s higher than the current average.

Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, remote work means they need additional space. Some people may choose to move to a less expensive area or downsize. These are great options if you’re thinking about moving.

Today’s rates are less than 3%. But experts predict in the coming years, rates will rise.

Take advantage of the opportunity to get a lower interest rate on your mortgage if it is higher than average. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.

As mortgage rates rise so does your monthly payment.

Even a slight increase in rate can make a big difference in your monthly mortgage payment.

To keep your monthly payments the same, you will need to consider a home that is less expensive.

Whatever your reason for wanting to move up or down, this is the best time to do it. Even a slight change in interest rate can make a huge difference to your purchasing power.

Consider refinancing if making a move now doesn’t feel right. If you want to reduce your monthly mortgage payments and remain in your home, refinancing may be a good option.

Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, contact Preferred Properties of Texas today to discuss your options.

Is It A Good Idea To Go Over Asking Price?

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It is important to consider the price of homes for sale when making an offer. You risk losing your offer if you offer too much and the bank might not value the home at the amount that you have offered. However, this does not mean that you should offer more than the asking prices for a home. This strategy might sound odd at first. The sticker price of a car is what you would offer, but the extra $100 for a barbecue at the shop is not something you would do. However, buying real estate is a different matter. Sometimes, it makes sense to offer more than the asking price.

There will be many offers. We are currently in a seller’s marketplace. This means that there are more buyers than homes available. Sellers receive multiple offers for their homes. They will accept the highest offer, naturally.
To be competitive in such a market, you will often need to offer more than the asking price. You are more likely to win the deal if there are three bids at the asking price but you offer 2% more than that.

The house is priced well below market. Sellers who are motivated and want to sell their house quickly will sometimes under-price their property. This will attract more attention and result in multiple offers.
If you or our real estate agent agree that a home should be priced lower than it is, then asking for more than the asking price makes sense. In order to score a deal, you will outcompete other buyers by offering higher asking prices. However, you won’t overpay.

A cash offer must be rejected. Imagine your agent talking to the buyer’s agent about the pending offer for the home. It’s a cash deal. Cash offers are difficult to beat. Cash offers are attractive because they require less work and take a much shorter time to close.
You can make a similar deal, but the seller will likely choose the financing offer. You can make it worth while for the seller to accept your offer by asking for more than the asking price

In the past, multiple offers were turned down by the seller. What if multiple offers have been made on the house but none have been accepted? Although the home is still available for sale, you don’t want another buyer to reject your offer. This behavior is commonly referred to as “unmotivated selling”. Sellers will only sell if they feel it is worth the effort. You can make an offer instead of asking if you truly want the house.

It is impossible to let go of your home. Perhaps this is the only house you have seen that suits your needs. Perhaps you have a deadline and can’t wait to make an offer. It’s a great way to get extra insurance and make sure you don’t lose your home by making an offer above the asking price.

Deciding how much to offer for a home isn’t always easy! It’s important to have a good agent on your side to help you make these decisions. Contact us if you’re looking for a reliable agent to guide you through the home buying process.

Upgrading To A Bigger Home

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For those who have always wished to live in a larger house, then you might be asking yourself when the perfect time is that you maneuver. Larger homes are more costly and require more upkeep. But you might be at a stage in your life financially in which you are prepared for a larger location.

Your existing home might not match your needs, in case your family is still growing. If you are expecting another child, then you are going to require a house with additional rooms. You will also need a house with additional storage space and baths. This is sometimes an extremely frequent reason people attempt to update their houses. By assessing in your region, you may begin to organize your budget before the arrival of your child and ensure that an update is ideal for you.

A lot of men and women go to a more compact home, since that’s all that they could manage. But if you’re able to manage to move to a larger area, now might be the opportunity to perform it. In case you’ve saved a substantial sum of money or are getting more income than you used to, then you can probably deal with the fiscal responsibility of purchasing a bigger house.

When thinking about this kind of move, be certain that you check at a nicer place, for example with better schools and other community opportunities.

Many people are working from home these days, and among the secrets to successfully working in your home would be to get the ideal space. That is the reason you might require a bigger house. Most small homes don’t have sufficient space to accommodate a house office or the area to get a table.

If you reside in a larger house, you may convert a living space into an office area. This may be particularly beneficial if you’re thinking about starting a company, as using a room in your house to perform this can save a great deal of money on lease.

You will love your present residence, but it can be time to search for something somewhat bigger. If your family is growing, it can be time to get more room. Moving to a larger house is also a fantastic idea when you’ve got the funds. Furthermore, a new, bigger house may be a huge help if you work at home and require designated office area!

When your ready to move to that bigger home, give Preferred Properties of Texas a call. We are here for all your real estate needs!

Costs Associated With Buying a Home?

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When you stumble across a favorable mortgage deal, you may think,”Good! I can manage my dream home.” You could be able to, however, the expenses associated with buying a home go beyond the mortgage payment. To determine how much house you are able to afford, it is important to factor in additional expenses, such as closing costs, taxes and insurance, before committing to a mortgage.

Complete Costs of Buying a House
Matt Hester and Ross Hester, father and son co-founders of The Hester Group, Harry Norman Realtors in Atlanta, Georgia, encourage all their customers to prepare for the funds needed to Buy.

“If you do not consider all of the expenses, your monthly expense budget could be flipped on its head,” Matt Hester says.

These costs include:

Down Payment
The deposit is the section of the property’s purchase price you pay upfront, instead of financing it through a mortgage. If you’re buying a $200,000 home, as an example, and put 10 percent, or $20,000, you’d be getting a mortgage for $180,000.

If you choose a traditional or FHA loan, a deposit is necessary. The amount of the down payment that’s required is based on the home’s price and property type, as well as the loan merchandise.

For a traditional loan, how much depends on the lender and loan type–you could put down 3%, 10%, 20% or more. With an FHA loan, you could be able to put down as small as 3.5 percent.

It is necessary to be aware there are loans with no down payment demand: USDA loans, for borrowers purchasing in specified markets (generally rural), and VA loans, for eligible service members and veterans.

Closing Prices
To shut your home loan and receive the keys to the property, you’ll need to cover closing costs, that are all the charges associated with the mortgage. These vary typically from 2% — 5% of the loan principal, and can include:

–Application fee
— Appraisal fee
— Credit check fee
— Origination and/or underwriting fees
— Title insurance policy
— Title search fee
— Transfer tax (if applicable)
“There are quite a few standard closure table items for which the real price will vary based on the value of the home and also the partners that you work with,” Ross Hester says.

If you’re lean on savings, but many lenders provide a no-closing-cost mortgage alternative, where the closing prices are added to your loan or otherwise paid for in the form of a higher interest rate. Save you from having to bring money to the final upfront, but might cost you more in the long run, particularly in the event that you intend to stay in the house long term.

Real Estate Taxes
In most places, your county or city government requires you to pay property taxes on your home for as long as you have it. Typically, property tax is included in your monthly payment, but separate from the interest and principal.

For instance, if you own a home with an appraised value of $100,000, and the tax rate is 2 percent, your yearly property tax would be $2,000, paid in $167 increments added to all your 12 monthly mortgage payments throughout the year.

Remember that the assessed value is not the same as the cost you’ve paid for your home. If home values move up on your area, your county or city could assess your house in a higher value, which means that you’ll spend more in property tax.

Homeowners and Mortgage Insurance
When purchasing a home, there are two kinds of insurance to consider: homeowners insurance and private mortgage insurance, or PMI.

Homeowners insurance protects you financially out of unexpected events which damage your house, like natural disaster, theft or vandalism. Though homeowners insurance isn’t required by legislation, most mortgage lenders require it in some kind. The cost significantly varies, and there are lots of options, so it is best to compare supplies to keep the cost as low as possible.

If you get a traditional loan, PMI is generally required if you put less than 20% down. This type of insurance protects the lender should you default on the loan and can substantially boost your mortgage payment. According to the Urban Institute, yearly PMI premiums range from 0.58% to 1.86% of the amount of the loan.

PMI is not permanent, yet. As you pay off your mortgage and build equity in your house, you can remove PMI.

HOA Fees
If you are buying a condominium or another kind of home in a community overseen by a homeowners association (HOA), you will likely be asked to pay a monthly fee, also known as an HOA fee. HOA fees are determined by the association and highly variable. These funds go toward the professional services that the institution provides, which may include security, a pool or gym and landscaping and upkeep.

HOAs can also charge occasional special assessment fees for urgent repairs. These financial obligations might be overlooked when buyers tally up the costs of purchasing a home, but they accumulate fast.

Home Maintenance, Repairs and Utilities
Wherever you reside, you ought to plan for home repairs and maintenance. Wear and tear occurs, therefore it is important to have additional money available for fixing or replacing appliances and important structures and systems, such as the roof or HVAC.

Many experts recommend budgeting 1% of your home’s worth for house maintenance every year, in addition to maintaining a crisis fund to address urgent, non-budgeted concerns as they crop up.

You’ll also have to cover utilities, probably including water, sewer, gas and electricity. These costs vary according to location, however, the general rule of thumb is that the bigger the property, the more utilities will cost.

Home Prices Today
The price of the house you buy is undoubtedly a big factor in your overall expenses. If you’re looking to purchase a house now, expect higher prices and tougher competition. As of March 2021, the median existing-home cost was $329,100, according to the National Association of REALTORS®, a 17.2% increase from the exact same time a year ago. Present single-family home costs were at a record high of $334,500, an 18.4% hike from this past year. Meanwhile, the median cost of a new-construction home was $330,800, as stated by the U.S. Department of Housing and Urban Development.

Keep in mind that home prices on your market may be much lower or higher than these national figures, and also the price that you’ll pay also depends on the sort of property you purchase.

The costs of purchasing and owning a home can add up fast, so it’s important to prepare. You’ll want to save money, enhance or maintain your credit and also compare creditors to find the best mortgage rates possible.

If you have questions about where to start contact our office and schedule an appointment with one of our knowledgeable agents. We are here for all your real estate needs!

Preferred Properties of Texas

(254) 965-7775|Contact Preferred Properties of Texas