Found 11 blog entries for May 2017.
Why CMAs, appraisals and listing prices aren't always important
- Many buyers mistakenly listen to the advice of friends and family before consulting an agent.
- A home is always worth what the highest bidder is willing to pay.
With an extreme shortage of housing inventory plaguing many markets across the country, many homeowner wannabes are locked in an epic struggle to purchase a home.
Unfortunately, some of these buyers are receiving advice from friends and family that is preventing them from scoring a home.
In order for buyers to effectively compete in the current market maelstrom, I believe they need to be encouraged to forget eight critical things.
1. Forget non-professional…
The median value of US homes has increased to $198,000 according to data from Zillow.
The increase in April is 1% above the peak of 2007 ($196,600) and the year-over-year rise was 7.3% as tight inventory saw increased competition in many markets.
However, comparing current conditions to a decade ago, Zillow’s chief economist Dr Svenja Gudell dismissed the view that we are in a new housing bubble.
"We aren't in a bubble, and won't be entering one anytime soon. There are big differences between the market then and the market now: Then, loose credit, speculation and overbuilding were ingredients in a recipe for disaster. Now, healthy home buyer demand is being driven largely by a stable economy and demographic tailwinds, which is exactly what we would expect in
Agents can save sellers time, money, liability and hassle
- FSBOs are more costly than homeowners realize -- including lower sales prices and hidden fees.
- Selling a home is a complicated transaction -- sellers and buyers alike can get burned with FSBOs.
- Time costs money -- a FSBO costs the seller valuable time, and it takes longer to sell.
Frank, a smart and tech-savvy Denver homeowner, thought he’d skip the agent commission and sell his house himself.
He researched his home’s property value, found a buyer and got the house under contract. It seemed like a done deal.
Until he realized in a panic that he had seriously undervalued the property — by more than $100,000. Frank had
Home prices in the U.S. increased 6 percent in the first quarter from a year earlier as competition heated up for a scarcity of listings.Prices rose 1.4 percent on a seasonally adjusted basis from the previous three months, the Federal Housing Finance Agency said in a statement Wednesday. In March, prices climbed 0.6 percent from February, matching the average estimate of 15 economists.
Job growth is firing up demand for real estate, pushing buyers into bidding wars for the tight supply of homes on the market. There were 1.83 million previously owned homes available for sale at the end of March, down 6.6 percent from a year earlier, according to the National Association of Realtors.
“Mortgage rates during the quarter remained slightly…
Buying a house can be both an exciting and simultaneously stressful experience. One reason the home buying process tends to be so stressful for many consumers — besides the fact that it’s probably the biggest purchase you’ll ever make — is the rigorous qualification process involved in getting approved for a mortgage.
If you’re preparing for a mortgage application, it is important to understand that qualifying for a home loan is a very different process than when you apply for most other types of credit accounts. Here are two important differences when it comes to qualifying for a mortgage versus other loans:
Difference #1: Lenders Look at All Three Credit Reports and Multiple Credit Scores
The biggest difference between applying for a mortgage…
Nationwide, US homeowners could spend up to $15,190 in hidden costs when selling their home, according to a new analysis from Zillow and local services marketplace Thumbtack.…
These hidden costs could come as a surprise, as 63% of today’s sellers are selling their homes for the first time.
“More than eight out of 10 home sellers make improvements before listing,” but those that prefer to outsource can expect to shell out more than $2,650 for expenses on cover staging, carpet cleaning, interior painting, lawn care and house cleaning.
Labor costs also vary – Los Angeles sellers pay a whopping $4,000 while sellers in Columbus, Ohio, only pay $1,500 for the same projects.
Agent commissions and sales or transfer taxes – the two largest
Existing-home sales are poised to see their best year in a decade, but low supply and affordability still threaten to keep the homeownership rate down, according to the National Association of Realtors.…
Lawrence Yun, chief economist for the NAR, recently presented his 2017 midyear forecast. According to Yun, the first quarter saw the best quarterly existing-home sales pace in 10 years with 5.62 million. Yun said he expected that pace to stay on track and finish around 5.64 million, 3.5% above 2016 and the best rate since 2006. The national median existing-home price is also expected to rise around 5% this year, according to the NAR.
“The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates,”
Deciding between a VA loan or a conventional loan may seem easy. No money down, no mortgage insurance, a better interest rate — a VA mortgage wins hands down, right?
But when you consider things like the VA funding fee and perhaps putting enough money down on a conventional mortgage to forgo mortgage insurance, the choice may be more complex. And, some of the VA loan benefits, such as no minimum credit score and no maximum debt-to-income ratio, are often overstated.
Here are the factors to consider when deciding between a Department of Veterans Affairs mortgage and a conventional loan.
To start, the type of property you’re buying can be a primary factor in the VA-versus-conventional decision.
“The VA loan is for primary…
There's a definite lack of housing inventory, and part of it can be attributed to sellers staying put
- Most sellers are also hoping to buy, so they are facing the same market constraints as buyers.
- Housing supply has not kept up with demand because building has become increasingly expensive.
- Rising mortgage rates and equity concerns could be encouraging homeowners to stay put and renovate.
- Agents need to focus on educating clients (both buyers and sellers) and think outside the box when looking for listings.
“Inventory,” “low inventory,” “multiple offers,” “low,” “high,” “strong,” “new” — these words paint a clear picture of an unbalanced housing market, one where…