What Every REALTOR® Wants You To Know About – Months of Inventory


What Every REALTOR® Wants You To Know About

Months of Inventory

 One of the most important numbers in real estate is “Months of Inventory.”  The months of inventory is determined by calculating how many months it would take at the current rate of sales to sell all of the homes currently on the market in a given area.

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For example:  If there are 200 homes for sale in a given area and on average there are 50 homes that sell each month, the months of inventory would be 4 months.

Determining the months of inventory helps determine whether it is a sellers’ market, a buyers’ market or a neutral market.  Determining the market is critical in negotiating for both buyers’ and sellers’.

The rule of thumb for determining the market is if there are 6 months or more of inventory on the market it is considered a buyers’ market; 4-5 months of inventory is considered neutral; and 3 months or less is considered a sellers’ market.

As you can see from the chart, it has been a long time since the State of Maryland has been in a sellers’ market.  Maryland dipped into a buyers’ market in June, 2016 for one month and then trended back to neutral territory.

Frederick County has a more robust market and transitioned into a sellers’ market in May, 2016 and stayed there until September of this year when the county crept into a neutral market. This information is critical in determining what is right for you.

If you are thinking of buying or selling, talk to a real estate professional – 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 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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What Every REALTOR® Wants You to Know About Buying or Selling


What Every REALTOR® Wants You to Know About Buying or Selling

Whether you are looking to buy or sell real estate, and whether it is your first transaction or your tenth, one of the most important things you can do is pick a REALTOR® who is the right fit for you.   If you talk to a seasoned real estate agent, they will undoubtedly tell you that you that you have to select a seasoned real estate agent.  If you ask a new agent, they will tell you that a new agent (who doesn’t have a lot of clients) will be able to spend more time and energy for you.

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As a seasoned agent I will tell you the truth (the truth according to Roland).  You can pick either a seasoned agent or a new agent – what is more important is how well you communicate with each other and whether or not you are on the same page with communication, open houses, showings etc.  A new agent still has the experience of a broker that they can turn to for advice.  And sometimes, seasoned agents think their way is the only way.

That being said the biggest problem is that 70% of buyers or sellers pick the first real estate agent they see.  Quite often if buyers go to an open house they will have the agent on site write a contract for them.  It is critical to remember that the agent that is at the open house works for the seller!  It’s the seller’s best interest that they are looking out for, not yours.

When sellers’ list their house for sale, they have a real estate agent that is representing them.  Buyers’ should do the same.  As buyers’ I strongly suggest that before you start looking, find a REALTOR® whom you are comfortable with and sign a buyers’ representation contract with them.  Then – and only then – do you have representation for your best interests.

Whether you are looking to buy or sell, I have a booklet to help you with many situations.  This booklet is free of charge and there is absolutely no obligation when you receive this booklet.  At the end of this blog is a form to add your name and email address and I will forward it to you.

If you are thinking of buying or selling, talk to a real estate professional – 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 contact me by text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

What Every REALTOR® Wants You to Know About – VA Home Loans


What Every REALTOR® Wants You to Know About –

VA Home Loans

 One of the best benefits for current or former military personnel is the VA Home loan.  Although this loan may not be for everyone, it has unique advantages that warrants a closer look by all who qualify.

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VA Home Loans are part of a Veteran’s benefit program that has helped millions of veterans purchase a home since World War II.  There are some distinct advantages for this loan for all who qualify.

  1. In Most Cases You Are Eligible

Veterans and active military need to meet certain service requirements in order to be eligible for a VA-backed mortgage. The VA ultimately determines who has access to this program, but in most cases, buyers are eligible if they meet the following service conditions:

  • At least 90 consecutive days active duty during wartime
  • At least 181 consecutive days active duty during peace time
  • At least six years in the National Guard or Reserves

Some surviving spouses of service members and veterans may able have home loan eligibility.

These are broad guidelines, and there can be exceptions. You don’t need to be certain of your eligibility to start the VA loan process. Lenders will often work to establish your eligibility on your behalf.

  1. Zero Percent Down Payment Required

The signature benefit of VA loans is being able to purchase without a down payment.

Conventional loans usually require at least 5% down, while FHA lenders want at a minimum 3.5%. On a $250,000 loan, that’s nearly $13,000 and $9,000, respectively. It can take veterans years to save that kind of lump sum.

Beyond that, conventional and FHA buyers who can’t put down 20% will have to pay for mortgage insurance each month. VA loans don’t come with any kind of mortgage insurance.

  1. You’re buying a primary residence

This program focuses on getting veterans and military members into homes they’ll live in full time. You can’t use a VA loan to purchase a vacation home or an investment property you won’t live in as your primary residence.  But you can purchase condos and even multiunit properties, provided you live in one of the units. You’ll also need to meet VA occupancy requirements, which typically means living in the home as your full-time residence within two months of closing. Your spouse may be able to fulfill this requirement in some cases.

  1. You’re not seeking a fixer-upper

The VA wants veterans buying homes that are safe and structurally sound. To that end, properties need to satisfy a set of conditions the VA calls minimum property requirements.

Generally, VA buyers can pay to make repairs on a home in order to get to closing. But that’s not always a smart financial decision, and some fixer-upper properties may present a significant challenge for the VA appraisal process.

If you are thinking of buying or selling, talk to a real estate professional – 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 301-712-8808 or email me at RolandLow1@gmail.com.

Roland