Why Now May Be a Good Time to Sell


Why Now May Be a Good Time to Sell

For the last few years, buyers that were able to obtain a mortgage, found the real estate market to be a buyers’ market, but that is changing now.

As the economy has continued to rebound, and banks begin to loosen the purse strings, there are more and more buyers moving into the housing market.  This influx of buyers has caused home prices to increase anywhere from slightly to dramatically depending on your location.  In many areas, a shortage of inventory of homes has resulted in multiple offers on many homes and this again, has resulted in home prices increasing.

This has caused the market in many areas to begin turning into a seller’s market, but this may be short lived for two reasons.  The first reason is that as home prices increase, more and more homeowners, who have been on the sidelines waiting for the prices to increase, will enter the market. This alone may cause the prices of homes to drop somewhat or at least stabilize where they are.

The second reason, and possibly the more important, is that as mortgage interest rates edge upward as they are expected to do, there will be fewer potential buyers priced out of the market.

The graph below shows how the increase in interest rates will knock approximately 6 million potential buyers from the market.  At an interest rate of 3.8% there would be slightly more than 20 million potential buyers in the market for a median priced home.  Once the interest rates climb to 7.0% there would be almost 6 million potential buyers who would no longer qualify for a mortgage.  This chart is not taking into consideration that the time span that would permit the interest rates to increase would also result in a potential price increase of the home.  This is why now may be the ideal time to sell.

Mortgage Interest Rates Comparison Effect

If you are thinking of buying or selling, talk to a REALTOR who can give you the answers you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615-417-8182 or email me at RolandLow1@gmail.com.
 

Roland

 

 

Nationwide Open House Weekend


Nationwide Open House Weekend

The 2013 REALTOR® Nationwide Open House, the largest-ever international open house campaign, will be held on April 20 and 21. Below is some open house information from our annual profile of home buyers and sellers:

  • Repeat buyers are more likely      to find their home from an open house than first-time buyers and repeat      buyers use open houses more frequently.
  • Mid-income buyers, those with      income between $55,000 and $75,000, are most likely to find their home      through an open house compared to other incomes. However, as income      increases the use of open houses actually increases as well. So higher      income buyers are walking into open houses, but not finding their home      through them.
  • Older buyers, 65 years and older, are more likely to find their home through an open house than other age groups. As age increases the likelihood of using open houses as a      search tool increases—45% of buyers aged 45 to 64 used open houses, compared to only 28% of buyers aged 18 to 24.
  • Buyers in the South are most likely to find a home through an open house compared to other regions.
  • Buyers of new homes use open houses much more frequently than buyers of previously-owned homes.
  • Married couples and unmarried couples are more likely to walk through open houses than single buyers.
  • Buyers whose primary language in the home is not English are more likely to use open houses—44% of buyers whose primary language is English use open houses, compared to 59% who use a language other than English in the home. Similarly, buyers who      were not born in the U.S. are more likely to use open houses as a search tool—43% of those who were born in the U.S. use open houses compared to 57% of those who were not born in the U.S.

Remember, if you attend an open house and you already have a REALTOR that you are working with, be sure to identify your agent to the person hosting the open house.

Regardless of what category you may fit in, if you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

 

All Real Estate Is Local


All Real Estate Is Local

In each one of my blogs, I always advise readers that if you are even thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.  Talking to a REALTOR is the first, and in my opinion, the most important step in making such a major purchase.

One of the main reasons is that all real estate is local.  It is very reassuring to hear on the national news that the real estate market is picking up, and it is, but it is critical that you work with an agent who has the insight and knowledge of what is going on in the area you are looking to buy.

Recent statistics came out indicating that Williamson County, Tennessee, where I live, has enjoyed a 30% increase in new home permits over last year.  While an adjacent county, Davidson County has an 86% increase.  What these numbers do not tell you is that Williamson County did not take the serious hit in the real estate downfall that Davidson County took.  That is important to know if you are trying to decide between the two counties.

All it takes is one newspaper article about something negative or positive and the market in that location can turn over night.

The interest rates are still at a very, very attractive rate.  Home prices are beginning to creep up, at least in some markets and this is a very ideal time to buy or sell real estate.  But as I always say, if you are even thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Home Prices Pick Up at Fastest Pace in 7 Years


Home Prices Pick Up at Fastest Pace in 7 Years

 

Home prices nationwide, including distressed sales, soared 10.2 percent year-over-year, according to CoreLogic’s February report. It’s the largest year-over-year increase in home prices since March 2006. It also marks the twelfth consecutive monthly increase in national home prices, according to CoreLogic’s report.

When excluding distressed sales, home prices rose 10.1 percent year-over-year in February, according to CoreLogic.

“Nationally, home prices improved at the best rate since mid-2006, marking a full year of annual increases and underscoring the ongoing strengthening of market fundamentals,” says Anand Nallathambi, president and CEO of CoreLogic.

The mortgage interest rate for April 4, 2013 is at 3.57%.  Although interest rates have fluctuated upward slightly, the rates are still extremely low.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

 

 

Don’t Be Fooled By These 3 Real Estate Myths


Don’t Be Fooled By These 3 Real Estate Myths

As the real estate market significantly rebounds, some buyers and sellers are dipping their toes in the waters for the first time. Inevitably, they come into the market with assumptions about how it works.

Their assumptions may come from TV reality shows or watching their parents’ house-hunting experiences. Maybe they’ve learned about real estate from a co-worker’s recent home buying or selling experience. The trouble is, the new buyer or seller’s assumptions are sometimes based on outdated or generalized “real estate myths.” Here are three such myths that many less-seasoned home buyers and sellers assume are true.

Myth No. 1: Spring is the best time to sell a home

Historically, real estate seasons were tied to summer and the end of the school year. Families were the typical buyers or sellers, and they wanted to move during the summer so their kids could start anew in September. That’s how spring became the prime selling season. It’s true there are still more homes for sale in the spring, which means there’s a lot of activity and buzz. But spring isn’t necessarily the best time to sell a home anymore.

The reality: The best time to sell is during the holidays and right after

Today, more than half of buyers aren’t married, and their decisions aren’t based upon school schedules. So spring isn’t as relevant as it used to be. Instead, the best time to sell a home is in November, December and January.

It’s a supply-and-demand issue. Most sellers assume buyers aren’t seriously looking during this prolonged holiday season. And yet, many buyers are looking at properties in person and online right up until Christmas Eve. If the right home goes on the market in mid-December, a serious buyer — and there will be a lot of them — will take note.

After New Year’s Eve, most buyers jump back into their routine with a resolve to get into the real estate market, even though many sellers wouldn’t even consider listing in January. The net effect: Savvy sellers will face less competition for a still-strong pool of buyers during this period. And that makes November-January a great time to sell.

Myth No. 2: Always start with your lowest offer

There’s no generalized strategy for making an offer on a home anywhere, ever. A seller could have overpriced or underpriced the home on purpose. Some markets may be more competitive than others. But, somehow, in the back of the buyer’s head is good old Uncle Bob saying “never offer the full asking price.” That strategy might work if you’re trying to buy a used computer on eBay. And it worked in some real estate markets years ago. But times have changed.

The reality: A low offer may get you nowhere fast

A buyer in a strong, tight inventory market today would be wasting their time making low offers right from the start. It’s likely a home that’s priced right and shows well can receive multiple offers, sometimes even over the asking price. In this environment, constantly throwing in low offers, because that’s what your Uncle Bob advised you to do, will likely lead to disappointment. Instead, work with a good local real estate agent                          to understand the market. You’ll quickly learn after a few weeks on the open house circuit (and maybe a disappointment or two) that starting low may not get you anywhere.

Myth No. 3: A cash offer trumps all

There’s an assumption that a seller, considering two different offers, will always go with the cash offer because there’s less risk. As a result, many buyers who hear they’re competing with a cash offer assume they won’t get the home. They may not even make a formal offer. At the same time, many cash buyers assume that because they’re paying cash, they can make an offer below the asking price, and it will likely be accepted.

The reality: A savvy seller may be more tempted by a solid financed offer

Consider a seller with a home priced at $399,000. The seller receives two offers: One is a cash offer of $375,000. The other is an offer for the full asking price, with 25 percent down, a bank pre-approval letter and swift contingency periods.

A good buyer’s agent, upon learning their client is competing with a cash offer, will arm the seller with lots of data supporting their client’s finances, such as a credit report and verification of income or assets. The agent might even arrange a call between the seller and the buyer’s lender .

Get the Facts- talk to a REALTOR

When you become a buyer or seller, especially for the first time, the most important thing you can do is get the facts. Talk to a REALTOR, and don’t make assumptions based on what you think you know. Real estate is local. Every market is different, with its own customs. If you believe there are general rules for real estate strategy that apply everywhere, anytime, you’ll likely be fooled — not only in April, but every other month of the year.

If you are thinking of buying or selling, talk to a REALTOR who can give you the facts you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland