South Florida Real Estate Blog
Recently posted or modified blog posts in the category - Buying a Home
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2023-08-07T18:36:25-07:00
tag:exitrealtypalmbeach.com,2012-09-20:38284
7 Common Homebuyer Regrets (And How To Avoid Them)
<img src="https://assets.site-static.com/userfiles/1653/image/August20202320-20MVP20-20Blog20Post20Image.jpg" width="1200" height="628" />7 Common Homebuyer Regrets (And How To Avoid Them)
To avoid buyer's remorse, be sure to consider your future self when shopping for a home.
Most new homebuyers don't regret becoming homeowners. In fact, according to a survey by LendingTree, 80% of recent buyers who successfully overcame a challenging housing market say they're glad they found their current homes.1 But that doesn't mean newly-minted homeowners don't have any regrets about their buying choices.
On the contrary, research shows that even the most-satisfied homeowners would change some aspects of their home purchase if given the opportunity. According to a recent survey by Anytime Estimate, nearly 3 out of 4 buyers who purchased a home in 2021 or 2022 still have a few regrets.2
Some question their decision to move to a neighborhood they still don't love. Others wish they had been less picky about where they lived so they could have paid less. Many are afraid they overspent or think they sacrificed too much in their rush to buy a home.
Here are some of the most common homebuyer regrets we see, along with our professional advice on how to avoid them.
REGRET #1: Spending More Than Necessary
No one wants to overpay for their new home purchase (and, luckily, with the right guidance, doing so is avoidable). But even if you've secured a winning purchase price, there are still plenty of ways to accidentally overspend.
One of the most common ways to overpay? Choose the wrong mortgage. In fact, in today's higher-rate environment, this can be one of the riskiest mistakes a new buyer can make.
According to a recent survey, for example, nearly three-quarters of homebuyers leave money on the table by not bothering to shop around for the best rate.3 And research by LendingTree suggests that buyers in major metro areas lose an average of $63,151 over the life of their loan just by picking the first mortgage they're offered.4
Lesson Learned: As long as you stick to what you can afford, buying a home can be a boon for your financial health. The longer you live in it, for example, the more your home is likely to appreciate in value and boost your long-term savings.
But to get the most value from your purchase, it's worth your time to compare financing options and shop around for the best deal. We also recommend getting a mortgage pre-approval before you start your home search so you know what's within reach. We can refer you to one of our trusted lending partners for help.
REGRET #2: Rushing Into a Home Purchase
In a competitive housing market, it's often necessary to act fast to secure a home. But don't let a need for speed tempt you into making an offer before you've thought through or fully vetted a new property.
Rushing into a home purchase isn’t just risky, it's also one of the most commonly cited sources of homebuyer regret. According to Anytime Estimate, for example, more than 1 in 4 homebuyers felt remorse over how quickly they sped through the home buying process.2
Getting swept away by your emotions can also lead to buyer's remorse. If you've found a home you love and are competing with other buyers, it can be tempting to overlook key details or bid more than you can afford. That's one reason it helps to have a skilled professional by your side to calmly guide you through the process and ensure you act with reason, rather than emotion.
Lesson Learned: Buying a home is exciting. But if you don't keep your emotions in check or act too impulsively, you could make poor choices in the moment that are hard to undo later.
To avoid making last-minute decisions that could backfire, know what you want, what you need, and what you can afford before you start your home search. We can help you set priorities so you’ll be able to move forward with confidence when the time is right.
REGRET #3: Miscalculating the Costs of Homeownership
Though real estate is a great long-term investment, it can be pricey in the short-term, often surprising homeowners who aren't prepared for it. According to some estimates, for example, annual maintenance could cost as much as 1% or more of your home's purchase price.5 Some buyers also forget to factor in additional ownership expenses, such as property taxes, insurance, and repairs.
Failing to think through the costs of homeownership is one of the most common sources of homebuyer regret. According to Anytime Estimate, for example, nearly half of the homebuyers who regret their purchase said they underestimated how much they would spend to live in it.2
However, some homes cost more to live in and maintain than others. So even if you're certain that you can afford the average cost of homeownership, that doesn't necessarily mean that every home in your price range will fit neatly into your budget. For example, very old homes with unique maintenance requirements could be extra pricey to keep up. Similarly, homes with high HOA or condo fees could also eat into your monthly budget.
Lesson Learned: A home should help you build your wealth, not drain it. So it's important to factor in all the potential costs of living in a home—not just obvious ones like your mortgage payment and taxes. To ensure you don't get overextended, add up your estimated maintenance and repair costs, as well as any miscellaneous expenses that are unique to a particular home.
We can help you with these estimates—and, if needed, present you with some less-costly alternatives.
REGRET #4: Underestimating the Time Required To Maintain or Renovate a Home
One of the most joyful aspects of homeownership is getting to relax in a home that's all your own. But if a home is too high maintenance, then you may not have time to savor it.
Many homeowners love to spend their weekends puttering in their gardens or undertaking home improvement projects. But if that's not you, then you may not like living in a home with a big yard or with high-maintenance features, like a pool.
According to a survey by Hippo, for example, 47% of homeowners who feel some regret about their home purchase complain that too much maintenance and upkeep is required.6
Similarly, buyers who purchase fixer-uppers are often surprised by how much time it takes to rehab their new homes. Although buying a fixer-upper is a great way to save on the purchase price, you could come to resent it if it eats up all your free time.
Lesson Learned: Renovation and maintenance projects are often time-consuming and stressful. So beware of committing to a property that requires too much of your attention if you don't have the time or patience for it. With that said, home improvement projects can also bring a lot of joy and satisfaction to owners who like rolling up their sleeves.
We can talk through the realities of homeownership with you and help you choose a property that will fit your personality and schedule.
REGRET #5: Ignoring or Skipping a Home Inspection
It’s easy to get swept up in the excitement of buying a home. Sometimes, buyers will agree to skip a home inspection to sweeten their offer in a competitive market. They may also be tempted to pinch pennies since they’re already facing a large outlay. However, if you skip out on a home inspection, you could come to regret it.
When you hire a home inspector, you get a professional, in-depth examination of the property’s structures and systems before you buy it. It’s a worthwhile investment that can save you money in the long run, either by warning you away from a bad purchase or by providing a list of deficiencies you can use to negotiate with the sellers.
But even the most thorough home inspection isn't going to be worth much if you don't take the time to carefully consider it. If at all possible, make sure you’re on-site during the inspection so you can observe and ask questions. And don’t forget to re-evaluate any repairs that the seller agrees to make to ensure they’ve been properly completed prior to closing.
Lesson Learned: A home inspection can reduce your risk and save you money in the long run. But to maximize its effectiveness, you will need to be an active participant in the process.
We’d be happy to share a list of experienced and trustworthy home inspectors in our area. And when the inspection report is complete, we can help you decide if the purchase is worthwhile and negotiate any relevant seller concessions and repairs.
REGRET #6: Choosing a Home That Doesn't Fit
Homeownership is often a better investment if you’re willing to stay put for at least five years.7 But if your newly purchased home isn’t a good fit, then you may not want to stick around that long.
Many homeowner complaints come down to simple lifestyle issues: Although a mismatch may seem small at first, the problems can magnify if you make so many compromises that they interfere with your quality of life.
Or, sometimes homebuyers can fall in love with a beautiful home and forget about practicalities. For example, a stunning kitchen can’t replace a needed bedroom or bathroom. And a sparkling pool may sit empty if the home requires a lengthy commute to your office.
Make sure you set some guardrails during your home purchase so you don’t over-compromise or accidentally prioritize your wants over your needs.
Lesson Learned: When you’re dealing with limited inventory or a fixed budget, it may be necessary to sacrifice some items on your home wish list. But if you fail to secure your must-haves, you could come to regret your home choice.
We can help you avoid an ill-fitting home purchase by working with you to set (and stick to) priorities and parameters before you begin your search.
REGRET #7: Purchasing Without Professional Help
Another path to homebuyer regret? Foregoing the expert guidance and market insight that you can only get from a licensed real estate agent.
Buying a home without professional representation can be extremely risky. Therefore, it’s no surprise that 86% of buyers enlist the help of an agent when purchasing a home. And the vast majority find their assistance to be invaluable: 89% say they would use their agent again or recommend them to others.8
Real estate is hyperlocal and extremely fluid—especially these days when the market is in constant flux. So it pays to have a knowledgeable expert by your side who can guide you through an often-complicated process.
We can help you avoid expensive mistakes that could lead to buyer’s remorse, all while making your home purchase as seamless and stress-free as possible. And since the home seller typically pays our commission, there’s no added expense for you!
Lesson Learned: When you work with a real estate agent, you benefit from a wealth of expertise and on-the-ground insight that you can't get anywhere else. We’ll help you steer clear of the missteps that so many homebuyers make, so you can focus on enjoying your new home instead of questioning your choices down the road.
The best part? Since the majority of home sellers pay us a commission at closing, in most cases, we offer our invaluable guidance and assistance at no additional cost to you!
BOTTOMLINE
No one wants to look back on their home purchase and realize they made a big mistake. We can help you avoid the pitfalls so you can buy with confidence. To learn more about how we work to ensure our clients’ satisfaction, reach out today to schedule a free consultation.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
LendingTree -<a href="https://www.lendingtree.com/home/mortgage/homebuying-process-survey/"> <br /></a><a href="https://www.lendingtree.com/home/mortgage/homebuying-process-survey/">https://www.lendingtree.com/home/mortgage/homebuying-process-survey/</a>
Anytime Estimate -<a href="https://anytimeestimate.com/research/american-home-buyers-2022/"> <br /></a><a href="https://anytimeestimate.com/research/american-home-buyers-2022/">https://anytimeestimate.com/research/american-home-buyers-2022/</a>
Zillow Home Loans -<a href="https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders"> </a><a href="https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders">https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders</a>
LendingTree -<a href="https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/"> <br /></a><a href="https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/">https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/</a>
CNBC -<a href="https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html#:~:text=Among%20recent%20home%20buyers%2C%2070,cost%20of%20buying%20a%20home"> <br /></a><a href="https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html#:~:text=Among%20recent%20home%20buyers%2C%2070,cost%20of%20buying%20a%20home">https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html</a>
Hippo -<a href="https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during"> </a><a href="https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during">https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during</a>
Realtor.com -<a href="https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/"> <br /></a><a href="https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/">https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/</a>
National Association of Realtors - <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers">https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers</a>
2023-08-01T18:25:00-07:00
2023-08-07T18:36:25-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:38087
Renovate or Relocate? 3 Questions To Help You Decide
<img src="https://assets.site-static.com/userfiles/1653/image/July20202320-20MVP20-20Blog20Post20Image.jpg" width="1200" height="628" /><br /><a href="https://dashboard.thepaperlessagent.com/download/july-2023-mvp-blog-post-image/?wpdmdl=24070&masterkey=649cd3b95560d"></a>
Renovate or Relocate? 3 Questions To Help You Decide
Does your current home no longer serve your needs?
If so, you may be torn between relocating to a new home or renovating your existing one. This can be a difficult choice, and there’s a lot to consider—including potential costs, long-term financial implications, and quality of life.
A major remodel can be a major commitment. From hiring contractors to selecting materials to managing a budget, it can take a tremendous amount of time and energy—not to mention the ordeal of living through construction or relocating to a temporary residence.<br /><br />On the other hand, moving is notoriously taxing. In fact, in one survey, 40% of respondents viewed buying a new home as ”the most stressful event in modern life.”1<br /><br />So which is the better option for you? Let’s take a closer look at some of the factors you should consider before you decide.
What Are Your Motivations for Making a Change?
It’s possible that some of the limitations of your current home can be addressed with a renovation, but others may require a move.
Renovate
Certain issues, like dated kitchens and bathrooms, are fairly easy to remedy with a remodel—and the results can be dramatic. In many cases, a relatively minor renovation can significantly increase your enjoyment of your home.
Other shortcomings can be more challenging to fix but are worth exploring so that you know your options. For example, if your home feels cramped or it lacks certain rooms, you might be able to make changes like installing an extra bathroom, adding a dedicated office, or finishing an attic or basement. You may even be able to build an accessory dwelling unit or extension to accommodate a multi-generational family.
In fact, many Americans have remodeled their homes to meet changing needs since the start of the pandemic. According to the National Association of the Remodeling Industry, 90% of their members reported increased demand for renovations starting in 2020, and 60% reported that the scale of remodeling projects has grown.2
However, the feasibility and cost of these larger changes will depend on factors ranging from zoning and permitting to your home’s current layout. Speaking with an architect or a contractor can help you make an informed decision. Let us refer you to one of our trusted partners to ensure you receive the best possible service.
Relocate
Of course, sometimes, even rebuilding your home from the ground up wouldn’t solve the problem. For example, moving may be the only solution if you’ve switched jobs and now face a lengthy commute or if you need to live closer to an aging family member.
Conversely, if the shift to remote work has opened up your location options, you may wish to seize the opportunity to relocate to a new locale. A 2022 study found that nearly five million Americans had already moved since the start of the COVID-19 pandemic due to increased flexibility from remote work, and nearly 19 million more were planning to move in the near future for the same reasons.3
Moving may also be the best option, even when you’re happy with your geographic location. A local move may make sense if you’re looking for a larger backyard or significantly more space. Similarly, some frustrations—like living on a busy street or a long way from a grocery store—can’t be addressed with a renovation. We are well-versed in this area and can help you determine whether another neighborhood might suit you and your family better.
Which Option Makes the Most Financial Sense?
Renovating and relocating both come with costs, and it’s wise to explore the financial implications of each choice before you move forward.
Renovate
The costs of a renovation can vary widely, so it’s vital to get several estimates from contractors upfront to understand what it might take to achieve your dream home.
Be sure to consider all of the potential expenditures, from materials and permits to updates to your electrical and plumbing systems. It’s also prudent to add 10-20% to your total budget to account for unexpected issues.4 If you plan to DIY all or part of your renovation, don’t forget to factor in the value of your time.
Renovations can also come with hidden expenses. These might include:
Additional home insurance
Short-term rental or hotel if you need to move out during the renovation
Storage unit for possessions that need to be out of the way
Dining out, laundry service, and other essentials if you can’t access appliances at home
Remodeling choices can also impact the long-term value of your home. Some projects may increase your home’s value enough to outweigh your investment, while others could actually hurt your home’s resale potential.
For example, although you may enjoy the additional living space, garage conversions aren’t typically popular with buyers.5 Refinishing hardwood floors, on the other hand, brings an average return of 147% at resale.2 The specific impact of a renovation will depend on a number of factors, including the quality of work, choice of materials, and buyer preferences in your area. We can help you assess how a planned project is likely to affect the value of your home.
Relocate
The cost of a new home, of course, will vary significantly depending on the features you’re seeking. However, you may find that it’s cheaper to move to a home that has everything you want than it is to make major changes to your existing one.
For example, adding a downstairs bedroom suite or opening up a closed floor plan could cost you more than it would to buy a home that already has those features. On the other hand, simpler changes and updates probably won’t outweigh the expense of a relocation.
If you’re considering a move, speak with a real estate agent early in the process. We can assess your current home’s value and estimate the price of a new home that meets your needs. This will help you set an appropriate budget and expectations.
It’s important to remember that the cost of buying a new home doesn't end with the purchase price. You’ll also need to account for additional expenditures, including closing and moving costs and the fees involved with selling your current home. And don’t forget to compare current mortgage rates to your existing one to understand how a different rate could impact your monthly payment.
However, keep in mind that the interest rate on a mortgage is typically lower than the rate on other loan types—so you could pay less interest on a new home purchase than you would on remodel.6 We’re happy to refer you to a lending professional who can help you explore your financing options.
Which Option Will Be the Least Disruptive to Your Life?
A final—but critical—consideration is the time and hassle involved with each option since both renovating and relocating involve a significant amount of each.
Renovate
Don’t underestimate the time and effort involved in a large-scale renovation, even if you choose to hire a general contractor. You will still need to consider and make a number of decisions. For example, even a fairly basic kitchen remodel can involve a seemingly-endless selection of cabinets, tile, countertops, paint colors, fixtures, hardware, and appliances.
And don’t assume that you will get out of packing and unpacking if you stay in your current home. Most renovations—from kitchens to bathrooms to flooring replacement—require you to remove your belongings during the construction process.
The time frame for a remodel is another consideration. High demand for contractors and ongoing material shortages can mean a long wait to get started. And once the project is in progress, you can expect that it will take a couple of weeks to several months to complete.7
Contemplate whether you will be able to live in your home while it’s being renovated and how that would impact your routine. For example, being without a functional kitchen for months can be frustrating, inconvenient, and expensive (since you’ll need to purchase prepared food). Remember that delays are inevitable with construction, and consider what additional challenges they could present.
Relocate
Of course, finding a new home and selling your current one also takes a significant amount of time and energy. According to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers, the average buyer searched for 10 weeks and toured a median of five homes.8
However, in many cases, the timeline can still be shorter than a major renovation. Once you find a home that works for you, it typically takes between 30 and 60 days to close if you’re taking on a mortgage—and the process is even faster if you’re paying with cash.9 Plus, you can look for your dream home without the inconvenience of living in a construction zone.
However, a move comes with its own stress and disruptions. If you’re selling your current home, you’ll need to prep it for the market and keep it ready and available for showings. Once you’ve found a place, the packing and moving process takes time and work, as does settling into a new home—especially if it’s in a different neighborhood.
Fortunately, we are here to help make the moving process as easy as possible, if you choose to pursue that route. We can help you find a property that meets all your needs, sell your current one for top dollar, and refer you to some excellent moving companies that can help pack and transport your belongings.
WHATEVER YOU DECIDE, WE CAN HELP
The decision to renovate or relocate can be overwhelming—but this choice also presents a powerful opportunity to improve your quality of life.
There’s a lot to consider, from how renovations could impact your home’s resale value down the road to your neighborhood’s current market dynamics. We’re happy to help you think through your options. Get in touch for a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
HousingWire -<br /><a href="https://www.housingwire.com/articles/46384-americans-say-buying-a-home-is-most-stressful-event-in-modern-life/">https://www.housingwire.com/articles/46384-americans-say-buying-a-home-is-most-stressful-event-in-modern-life/</a>
National Association of the Remodeling Industry -<br /><a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf?_gl=1*3pfs0m*_gcl_au*NTU2MDQ0MzAyLjE2ODMyMzgzMTY">https://cdn.nar.realtor//sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf?_gl=1*3pfs0m*_gcl_au*NTU2MDQ0MzAyLjE2ODMyMzgzMTY</a>
Business Insider -<br /><a href="https://www.businessinsider.com/5-million-people-moved-because-of-remote-work-since-2020-2022-3">https://www.businessinsider.com/5-million-people-moved-because-of-remote-work-since-2020-2022-3</a>
Forbes -<br /><a href="https://www.forbes.com/home-improvement/contractor/home-renovation-costs/">https://www.forbes.com/home-improvement/contractor/home-renovation-costs/</a>
U.S. News & World Report -<br /><a href="https://realestate.usnews.com/real-estate/articles/10-home-renovations-that-can-decrease-the-value-of-your-home">https://realestate.usnews.com/real-estate/articles/10-home-renovations-that-can-decrease-the-value-of-your-home</a>
Bankrate -<br /><a href="https://www.bankrate.com/mortgages/mortgage-vs-home-equity-loan/#differences">https://www.bankrate.com/mortgages/mortgage-vs-home-equity-loan/#differences</a>
House Beautiful -<br /><a href="https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/">https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/</a>
National Association of Realtors -<br /><a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers">https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers</a>
Forbes -<br /><a href="https://www.forbes.com/advisor/mortgages/how-long-does-it-take-to-close-on-a-house/">https://www.forbes.com/advisor/mortgages/how-long-does-it-take-to-close-on-a-house/</a>
2023-07-01T11:35:00-07:00
2023-07-27T13:30:59-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:31744
The Future Of Florida Property Insurance
Florida’s insurance market has been in a meltdown mode for several years now and this is prior to last week’s historic landfall on southwest Florida from Hurricane Ian. Unfortunately, the category-4 storm packed 155-mph winds and brought upon a record storm surge. What many may not realize is that six insurers have been declared insolvent so far this year and this was before Hurricane Ian, in what had been a relatively calm hurricane season. As a result, annual insurance rates in the Sunshine State are three times the national average at $4,231.
Tallying up the damage
Hurricane Ian will likely rank highly among one of the costliest storms to hit the United States. Here are some of the costliest storms to have hit the U.S. (in 2021 dollars):
#1. Hurricane Katrina: $89.7 billion
#2. Hurricane Ida: $36 billion
#3. Hurricane Sandy: $35.1 billion
#4. (tied) Hurricane Harvey: $33 billion
#4. (tied) Hurricane Irma: $33 billion
It has been estimated that Hurricane Ian-related losses will likely come in somewhere between $25 billion and $40 billion. As for how much of this bill will be covered by Floridians is yet to be determined. With this said, the federal government has announced that it would help cover insurance gaps for damaged homes, up to $37,900, as well as up to another $37,900 for “lost property.”
What’s next?
Needless to say, the future of Florida’s property insurance market is uncertain at best. Unfortunately, years of fraud and abuse have certainly caused a lot of damage to not only the insurance companies, but ultimately the policyholders paying for this fraud in the form of higher premiums. One area in particular that has been exploited is the “assignment of benefits” provision. In particular, we have seen many roofers exploit this by offering to conduct free roof inspections. When conducting these roof inspections, many of these roofers will even go as far as to damage the roof just so that they may submit a claim to the insurance company. This has been going on for quite some time and has resulted in higher premiums for all policyholders. As a homeowner, it is simple. If a roofer approaches you about conducting a free roof inspection, don’t allow them to do it.
Another area that needs to be addressed is to change tort laws to reduce litigation. At the present time, many insurance companies have to spend an incredible amount of money to defend against the settlement of claims. This can be an impediment for the insurance companies because it ties their hands.
Summary
If there is anything to learn from the recent impact from Hurricane Ian, it is that we must always have a hurricane plan in place to ensure our safety and secure our property. In addition, it is wise to plan for the worst case scenario when obtaining insurance coverage for your property. It is amazing how quickly a devastating storm can destroy your biggest investment.
Courtesy of: Natasha Moore REALTOR® with Live South Florida Realty
2022-10-09T17:00:00-07:00
2022-10-09T16:57:54-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:30549
10 Pro Tips for a Smooth Home Move
<img src="https://assets.site-static.com/userfiles/1653/image/adrianruiztrelles/2AEA3F66-41DF-417E-B42D-1439AB02C06B.png" width="1200" height="628" />10 Pro Tips for a Smooth Home Move
The process of buying a new home can be both exhilarating and exhausting. But the journey doesn’t stop when you close on your property. On the contrary, you still have quite a bit to do before you can begin the process of settling into your new place.
Fortunately, you don’t have to do everything in a day. You don’t have to do it all alone, either. When you work with us to sell or purchase a home, you’ll have an ally by your side long after your transaction has closed. We’ll continue to be a resource, offering advice and referrals whenever you need them on packing, hiring movers and contractors, and acclimating to your new home and neighborhood.
When it comes to a life event as stressful as moving, it pays to have a professional by your side. Here are some of our favorite pro tips to share with clients as they prepare for an upcoming move.
1. Watch out for moving scams.
Maybe you receive a flyer for a moving company in the mail. Perhaps you find a mover online. Either way, never assume that you’re getting accurate information. According to the Better Business Bureau, moving-related fraud is on the rise. In 2021 alone, individuals and families reported more than $730,000 lost to moving scams, an increase of 216% over the previous year.1
How can you tell if a moving deal is too good to be true? Trust your instincts. If the price appears too low or you can’t pin down the mover’s physical business address, try someone else. The same goes for any moving company representative who dodges questions. Reputable movers should offer transparent pricing, conduct in-home estimates, and provide referrals and copies of their insurance documents upon request.2 For help finding trustworthy movers, reach out. We’d be happy to share our recommendations.
2. Insure your belongings.
Your moving company promises to take care of your custom piano or your antique furniture. But don’t just take their word for it. Ask to see how much insurance they carry and talk about how the claims process works. That way, you’ll know what is (and isn’t) covered in case of loss or damage.
Of course, some items are priceless because they’re irreplaceable. You might want to move your more sensitive valuables (jewelry, documents, family heirlooms, etc.) in your own vehicle just to be safe. For added peace of mind, call your rental or home insurance provider if you’re moving anything yourself. You might already be protected or be able to purchase extra insurance to cover your move. If those options are unavailable, you could opt for moving insurance from a third-party carrier.3
3. Start packing when you start looking for a new home.
As soon as your house hunting begins in earnest, think about packing away things you won’t need for the next few months. These could include seasonal or holiday decor, clothing, and books. Tackling just one or two boxes a day will give you a head start.
If you're going to put your current home on the market, you'll want to declutter anyway. Decluttering will make your home seem larger, and depersonalizing helps buyers envision their own items in the space. Consider selling, donating, or throwing out possessions you no longer need. The things you want to keep can be placed in storage until you officially start moving to a new place.
4. Pack to make unpacking easier.
Have you ever opened a packed box only to find that it’s filled with an assortment of items that don’t belong together? This isn’t efficient and will only make unpacking harder. A better way to pack is to bundle items from a single room in a labeled box. Labels can let movers know (and remind you) where to place each box, whether it’s fragile, and which side needs to be up. Some people like to assign colors to each room in their new home to make distributing color-coded boxes a breeze.
Feel free to unleash your inner organizer with this project. For example, you could create a spreadsheet and assign each box a number. As boxes are packed, simply fill in the spreadsheet with a list of contents. Anyone with access to the spreadsheet can log in and quickly find the desired item.
5. Think outside the box when transporting clothes.
Who wants to worry about boxing up clothes? If you plan on hiring professional movers, ask if you can leave clothing in your dressers. In many cases, they will use plastic to wrap the dresser so the drawers don’t fall out during transport. If keeping your clothes in your furniture makes it too heavy, the movers might be able to wrap and move drawers by themselves.
Another easy transport trick involves turning clean garbage bags into garment bags. Poke a hole in the bottom of a garbage bag, turn the bag upside down, slide it over five to seven garments on hangers, and lay the items flat in the back seat or trunk of your vehicle. The bags will help prevent wrinkling, and your clothes will be ready to hang up when you get to your new home.
6. Document prior to disassembling appliances and furnishings.
Few things are as confusing as looking at a plastic baggie filled with nuts, bolts, and screws from your disassembled dining room table or sorting through a box of electrical wires and cords to see which ones fit your TV.
The best workaround to easier reassembly is to document the disassembly process. Take photos and videos or thorough notes as you go. Whether it’s your headboard or treadmill, be very precise. And just a tip: Construct your beds first when you get to your new home. After a long moving day, the very last thing you want is to be assembling beds into the wee hours of the morning.
7. Prioritize unpacking kids’ rooms.
Children can become very stressed by a big move. To ease their transition, consider prioritizing unpacking their rooms as their “safe zones.”4 You aren’t obligated to unpack everything, certainly. However, set up your children’s rooms to be functional. That way, your kids can hang out in a private oasis away from the chaos while you’re running around and moving everything else.
Depending upon how old your youngsters are, you might want to give them decorating leeway, too. Even if it’s just letting them choose where furniture goes, it gives them a sense of buy-in. This can help ease the blues of leaving a former home they loved.
8. Be a thoughtful pet parent.
Many types of pets can’t handle the commotion of moving day. Knowing this, be considerate and seek ways to give your pets breaks from the action. You might ask a friend to pet sit your pooch or keep your kitty in a quieter room, like a guest bathroom.
Be sure to check in on your pet frequently. Pets like to know that you’re around. Give them treats, food, and water throughout the day. When it’s time to transport your pet, do it calmly. At your new property, give your pet access to just a room or two at first. Pets typically prefer to acclimate themselves slowly to unfamiliar environments.5
9. Plan for your move like you’re planning for an exciting vacation.
When you plan vacations, you probably look up local restaurants, shops, and recreational areas. Who says you can’t do the same thing when moving? Create a list of all the places you want to go and things you want to do around your newly purchased home. Having a to-explore list keeps everyone’s spirits high and gives you starting points to settle into the neighborhood.
And don’t feel that you have to cook that first night. Once the moving trucks are gone, you can always pop over to a local eatery or order DoorDash for major convenience. The first meal in your new home should be a happy, welcoming treat. And if you’re relocating to our neck of the woods, we would love to introduce you to all the hot spots in town and recommend our local favorites.
10. Pack an “Open Me First!” box.
You won’t be able to unpack all your boxes in one day, but you shouldn’t go without your sheets, pillows, or toothbrush. Designate some boxes with “Open Me First!” labels. (Pro tip: Keep a tool kit front and center for all that reassembling.)
Along these lines, use luggage and duffel bags to transport everyone’s personal must-have items and enough clothing for a couple of days. That way, you won’t have to rummage through everything in the middle of your move looking for sneakers or snacks.
When packing your “Open Me First!” boxes, think about which items you’ll need in those first 24 hours. For example, toilet paper and hand soap are musts. A box cutter will make unpacking a lot easier, and paper towels and trash bags are sure to come in handy. Reach out for a complete, printable list of “Open Me First!” box essentials to keep on hand for your next move!
LET’S GET MOVING
Getting the phone call from your real estate agent that your bid was accepted is a thrilling moment. Make sure you keep the positivity flowing during the following weeks by mapping out a streamlined, efficient move. Feel free to get in touch with us today to help make your big move your best move.
Sources:
Better Business Bureau - <a href="https://www.bbb.org/article/scams/24198-bbb-scam-alert-avoid-moving-scams-this-national-moving-month">https://www.bbb.org/article/scams/24198-bbb-scam-alert-avoid-moving-scams-this-national-moving-mont</a>
Move.org - <a href="https://www.move.org/how-to-tell-moving-company-scam/">https://www.move.org/how-to-tell-moving-company-scam/</a>
Forbes - <a href="https://www.forbes.com/advisor/homeowners-insurance/moving-insurance/">https://www.forbes.com/advisor/homeowners-insurance/moving-insurance/</a>
New York Times - <a href="https://www.nytimes.com/2020/07/13/parenting/moving-tips-kids.html">https://www.nytimes.com/2020/07/13/parenting/moving-tips-kids.html</a>
ASPCA - <a href="https://www.aspca.org/pet-care/general-pet-care/moving-your-pet">https://www.aspca.org/pet-care/general-pet-care/moving-your-pet</a>
2022-07-31T21:00:00-07:00
2022-08-03T15:50:24-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:29595
Higher Rates and Short Supply: The State of Real Estate in 2022
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Higher Rates and Short Supply: The State of Real Estate in 2022
<br />The last two years caught many of us off guard—and not just because of the pandemic. They also ushered in the hottest housing market on record, with home prices rising nationally by nearly 19% in 2021, driven primarily by low mortgage rates and a major supply shortage.1
But while some had hoped 2022 would bring a return to normalcy, the U.S. real estate market continues to boom, despite rising interest rates and decreasing affordability.
So what’s driving this persistent demand? And is there an end in sight?
Here are three factors impacting the real estate market right now. Find out how they could affect you if you’re a current homeowner or plan to buy or sell a home this year.
<br />MORTGAGE RATES ARE RISING FASTER THAN EXPECTED
Over the past couple of years, homebuyers have faced intense competition for new homes—in part due to historically low mortgage rates that were a result of the Federal Reserve’s efforts to keep the economy afloat during the COVID-19 pandemic.
However, in response to a concerning level of inflation, the Fed is now reversing those efforts by raising the federal funds rate. And as a result, mortgage rates are rising, as well. Few experts predicted, though, that mortgage rates would go up as quickly as they have.
In January 2022, the Mortgage Bankers Association projected that rates would reach 4% by the end of this year.2 By mid-April, however, the average 30-year fixed mortgage rate had already hit 5%, up from around 3% just one year prior.3 On a $400,000 mortgage, that 2% difference could translate into an additional $461 per monthly payment.
Since then, mortgage rates have continued on an upward trend. So what impact are these rising rates having on demand? While many buyers had hoped for a cooling effect, experts warn that may not be the case.
Ali Wolf, chief economist at housing market research firm Zanda, told Fortune magazine, "Rising mortgage rates are having a counterintuitive effect on the housing market. Home shoppers are actually sprung into action in an attempt to buy a home before mortgage rates rise any higher."4
Since inventory remains low, the resulting “race” has kept the homebuying market highly competitive–at least for now.
What does it mean for you?
While current 30-year fixed mortgage rates represent an increase over previous months, they remain well below the historical average of 8%.5 As inflation across the economy continues, the Fed is likely to raise rates further this year. Buyers should act fast to secure a good mortgage rate. We’d be happy to refer you to a lender who can help.
For sellers, speed is also of the essence. The pool of potential buyers may shrink as mortgages become more expensive. And if you plan to finance your next home, you’ll want to act quickly to secure a favorable rate for yourself. Contact us today to discuss your options.
<br />HOME PRICES KEEP CLIMBING
History shows that higher interest rates don’t necessarily translate to lower home prices. In fact, home prices rose 5% between 1980 and 1982, a period of significantly higher mortgage rates and inflation.5
Forecasters expect that home prices will continue to go up throughout 2022, though likely at a slower pace than the 18.8% increase of the last 12 months.4 Bank of America predicts that prices will be up approximately 10% by the end of this year, while Fannie Mae estimates 11.2%.6,7
In addition to limited supply and a race to beat rising mortgage rates, home values are also climbing because of positive economic indicators, like low unemployment.8 Plus, rents are soaring–up 17% from a year ago–which is prompting more first-time homebuyers to enter the market.9 Add to that the continued popularity of remote work, and it’s easy to see why property prices continue to surge.
However, it’s not all bad news for prospective homebuyers. Economists expect that as mortgage rates rise, the rate of appreciation will continue to taper, though the effect may be gradual.
“Eventually mortgage rates will slow down home prices,” according to Ken Johnson, an economist at Florida Atlantic University interviewed by Marketwatch.10 “We should not see rapid upticks in prices as mortgage rates rise.” Forecasters agree—Fannie Mae expects price increases to slow to 4.2% in 2023.7
What does it mean for you?
While the pace of appreciation is likely to decrease next year, home prices show no signs of going down. However, current labor shortages are leading to higher salaries and better job opportunities for many workers. You may find that your income growth outpaces home prices, making homeownership more affordable for you in the future.
For homeowners, the outlook’s even brighter. You could find yourself sitting on a nice pile of equity. Contact us for a free home value assessment to find out.
<br />INVENTORY REMAINS EXTREMELY LOW
As noted, one of the largest hurdles to homeownership is a lack of inventory. According to a February 2022 report by Realtor.com, there’s an expanding gap between household formation and home construction, which has resulted in a nationwide shortage of 5.8 million housing units.11
The origins of this shortage date back to the 2008 housing crisis, during which crashing home values led contractors to stop building new properties—a trend that has not been fully reversed.12
That decline in home construction also resulted in a decrease in the number of home building professionals, a trend that was exacerbated by job losses during the COVID-19 pandemic. Now, many builders are limited by their ability to find qualified labor.
Another major challenge is a staggering increase in the cost of materials. Pandemic-related supply chain shortages have been a significant driver, with home building material costs rising on average 20% on a year-over-year basis. The price of framing lumber alone has tripled since August 2021.13
These trends add tens of thousands of dollars to the cost of a typical home. Factors like a lack of buildable land in many areas, restrictive zoning, and a shortage of developers are also contributing to the issue.14
Most homebuying experts agree that the lack of inventory is the primary factor driving rising housing prices and unprecedented competition for homes. With available housing units near four-decade lows, the end of the current housing boom is not yet in sight.15
What does it mean for you?
Prospective buyers should be prepared to compete for a home, since low inventory can lead to multiple offers. You may also need to expand your search parameters. If you’re ready to look, we’re ready to help.
For sellers, the picture is rosier. In this strong market, your home may be worth more than you realize. Contact us to find out how much your home could sell for in today’s market.
<br />WE’RE HERE TO GUIDE YOU
While national real estate trends can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.
If you’re considering buying or selling a home, contact us now to schedule a free consultation. We can help you assess your options and make the most of this unique real estate landscape.
<br />Sources:<br />1. Marketwatch - https://www.marketwatch.com/picks/home-price-appreciation-will-normalize-what-5-economists-and-real-estate-pros-predict-will-happen-to-home-prices-in-2022-01646940841 <br />2. Bankrate - <br />https://www.bankrate.com/mortgages/mortgage-rate-forecast<br />3. CNBC -<br />https://www.cnbc.com/2022/04/16/heres-how-much-the-same-mortgage-costs-now-compared-to-last-year.html<br />4. Fortune -<br />https://fortune.com/2022/03/23/housing-market-interest-rate-economic-shock/ <br />5. National Association of Realtors -<br />https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-april-07-2022 <br />6. Fortune -<br />https://fortune.com/2022/03/16/home-prices-2022-2023-bank-of-america-forecast-mortgage-rates/<br />7. Fortune - <br />https://fortune.com/2022/03/07/what-home-prices-will-look-like-2023-fannie-mae/<br />8. Fortune - <br />https://fortune.com/2022/03/17/home-prices-drop-housing-markets-california-michigan-massachusetts-corelogic/<br />9. CNN - <br />https://www.cnn.com/2022/03/23/success/us-national-rent-february/index.html<br />10. MarketWatch -<br />https://www.marketwatch.com/story/home-prices-increase-at-one-of-the-fastest-rates-on-record-but-higher-mortgage-rates-should-slow-future-growth-11648559497<br />11. Realtor.com -<br />https://www.realtor.com/research/us-housing-supply-gap-expands/<br />12. NPR -<br />https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain <br />13. Investopedia -<br />https://www.investopedia.com/housing-market-dips-in-early-march-2022-5222449<br />14. NPR -<br />https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain <br />15. Fortune - <br />https://fortune.com/2022/03/14/housing-market-key-metric-inventory-zillow-bad-for-buyers/
2022-06-01T14:57:00-07:00
2022-06-15T15:15:11-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:28749
5 Ways to Write a Winning Offer in Today’s Real Estate Market
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5 Ways to Write a Winning Offer in Today’s Real Estate Market
Our nation is in the midst of a serious housing crunch. Last year, a lack of inventory and soaring prices left many would-be homebuyers feeling pinched. But now, with interest rates climbing, many of them are also feeling desperate to lock in a mortgage—which has only added fuel to the fire.1
Fortunately, if you’re a buyer struggling to find a home, we have some good news. While it’s true that higher mortgage rates can decrease your purchasing budget, there are additional ways to compete in a hot market.
Yes, a high offer price gets attention. But most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.
We can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm.
1. Demonstrate Solid Financing
<br />The reality is, no one gets paid if a home sale falls through. That’s why sellers (and their listing agents) favor offers with a high probability of closing.
Sellers particularly love all-cash offers because there’s no chance of financing issues cropping up at the last moment. But don’t despair if you can’t pay cash for your home. According to the National Association of Realtors, only about 1 in 4 home purchases are all-cash deals, which means the vast majority are financed with a mortgage.2
If sellers are assured that financing will come through, buying with a mortgage doesn’t have to be a big disadvantage. The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer.
It’s also important to consider the reputation of your lender. While sellers may not know or care about a lender’s reputation, their agents often do. Some lenders are much easier to work with than others, especially if you are pursuing certain types of mortgages like FHA or VA loans.3 If so, you’ll want a lender who specializes in these types of mortgages. If you’re unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business.
2. Put Down a Sizeable Deposit
<br />Buyers can show sellers that they’re serious about their offer and have “skin in the game” by putting down a large earnest money deposit.
Earnest money is a deposit held in escrow by a title company or the seller’s broker or lawyer. If the purchase goes through, it is applied to the down payment and closing costs—if the sale falls through, the buyer may lose some or all of that deposit.
While an earnest money deposit is typically around 1-2% of the sale price, offering a higher deposit can help demonstrate to the buyer that you are serious about the property.4 However, this strategy can also be risky. We can help you determine an appropriate deposit to offer based on your specific circumstances.
3. Ask for Few (or No) Contingencies
<br />Most real estate offers include contingencies, which are clauses that allow one or both parties to back out of the agreement if certain conditions are not met. These contingencies appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.5
Common contingencies include:
<br />● Financing: A financing contingency gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.<br />● Inspection: An inspection contingency gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.<br />● Appraisal: Most lenders will not offer a mortgage on a home that costs more than it's worth. An appraisal contingency gives the buyer an opportunity to get the home professionally assessed to ensure that its value is at or above the sales price. If an appraisal comes in low, the seller may be asked to renegotiate the contract.<br />● Sale of a prior home: Some buyers cannot afford to purchase a new home until they sell their previous one. If the buyer is unable to sell their current home within a specified window of time, this contingency enables them to withdraw from the contract without penalty.
Since contingencies reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. The more contingencies that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive certain contingencies.
However, it’s very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection contingency may find out too late that the home requires extensive renovations, and a buyer who waives the appraisal may risk their mortgage falling through. If you back out of a home purchase without the protection of a contingency, you could lose your earnest money deposit.6 We can help you assess the risks and benefits involved.
4. Offer a Flexible Closing Date and/or Leaseback Option
<br />When it comes to selling a house, money isn’t everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may prefer a longer closing timeline that gives them time to find housing in their new location.
Similarly, short-term leaseback options, in which the sale is completed but the seller retains the right to rent the home for a specified period of time, can be compelling.7 These arrangements enable the seller to use the money from the sale of their home to purchase their next house. A leaseback agreement also makes it possible for them to avoid moving twice when their next home is not yet ready to occupy.
Flexible closing dates and leaseback options can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.
Of course, the value of these terms depends on the seller’s situation. We can reach out to the listing agent to find out the seller’s preferred terms, and then collaborate with you to write a compelling offer that works for both parties.
5. Work With a Skilled Buyer’s Agent
<br />In this ultra-competitive real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. We will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk.
Plus, we know how to write offers that are designed to win over both the seller and their listing agent. The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer’s agents who are professional, communicative, and courteous.
Once your offer is accepted, we’ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you’ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.
Helping You Get to the Right Offer<br />In many cases, a competitive offer doesn’t need to be all-cash, contingency-free, or significantly above asking price. But if you’re serious about buying a home in today’s market, it’s important to consider what you can do to sweeten the deal.
If you’re a buyer, we can help you compete in today’s market without getting steamrolled. And if you’re a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.
<br />Sources:<br />1. National Association of Realtors -<br />https://www.nar.realtor/newsroom/pending-home-sales-dwindle-4-1-in-february<br />2. National Association of Realtors -<br />https://www.nar.realtor/newsroom/existing-home-sales-fade-7-2-in-february<br />3. Forbes - <br />https://www.forbes.com/advisor/mortgages/housing-crisis-tips/<br />4. Realtor.com -<br />https://www.realtor.com/advice/finance/earnest-money-deposit-mistakes-buyers-make/ <br />5. Bankrate -<br />https://www.bankrate.com/real-estate/contingency-clause/<br />6. Home Buying Institute - <br />http://www.homebuyinginstitute.com/mortgage/risks-of-waiving-a-contingency/<br />7. Realtor.com -<br />https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement
2022-05-01T19:30:00-07:00
2022-05-02T09:27:50-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:28633
Median home prices jump by $100k in Palm Beach, Broward counties while inventory sinks
Rising prices and low inventory continue to be the trend in Broward and Palm Beach counties, according to the March real estate reports from the Broward, Palm Beaches & St. Lucie Realtors®.
In <a href="https://southfloridaagentmagazine.com/?s=Palm+Beach+County">Palm Beach County</a>, the median single-family home price increased 23% year over year, from $440,000 in March 2021 to $541,000 in the same month this year. Median days on to contract dropped from 18 to 10, year over year.
Months of housing inventory dropped from 1.8 to 1.2. “The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory,” the report said. “Anything higher is traditionally a buyers’ market, and anything lower is a seller’s market.”
Palm Beach townhomes and condos saw the median sale price jump 20% year over year, from $245,000 to $294,000. Median days to contract sunk from 41 days to 10, and months of inventory also dropped sharply, from 3.4 months to one.
“Palm Beach County’s median home price hit $541,000 in March,” <a href="https://southfloridaagentmagazine.com/?s=Carlos+Melendez">Carlos A. Melendez</a>, president of Broward, Palm Beaches & St. Lucie Realtors®, said in the report. “This is the highest price we’ve seen this year as prospective buyers from all over the world continue to demand housing in Palm Beach County. Homes are selling at an astonishing rate, sitting roughly 10 days on the market before going under contract.”
The Broward County median single-family home sale price hit a record $545,000 in March, a $100,000 increase from March 2021. The median time to contract dropped from 16 days last year to just 10 days last month.
Single-family home inventory dropped from 1.6 months in March of last year to 1.1 months this year.
The trends were similar for Broward townhomes and condominiums. The median sale price rose from $210,000 to $238,000 year over year. Median days to contract dropped from 40 to 16, and months of condo inventory plummeted from 4.1 months last year to just 1.4 months this year.
2022-04-25T09:32:00-07:00
2022-04-28T08:34:37-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:25549
A Return to ‘Normal’? The State of Real Estate in 2022
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Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that caused home prices to soar nationwide by a record 19.9% between August 2020 and August 2021.1
However, there were signs in the fourth quarter that the red-hot housing market was beginning to simmer down. In the month of October, only 60.3% of sales involved a bidding war—down from a high of 74.5% in April.2 While this trend could be attributed to seasonality, it could also be a signal that the real estate run-up may have passed its peak.
So what’s ahead for the U.S. housing market in 2022? Here’s where industry experts predict the market is headed in the coming year.
MORTGAGE RATES WILL CREEP UP
Most economists expect to see mortgage rates gradually rise this year after hitting record lows in late 2020 and early 2021.3
Freddie Mac forecasts the 30-year fixed-rate mortgage will average 3.5% in 2022, up from around 3% in 2021.4
The Mortgage Bankers Association predicts that rates will tick up to 4% by the end of the year. "Mortgage lenders and borrowers should expect rising mortgage rates over the next year, as stronger economic growth pushes Treasury yields higher," said Mike Fratantoni, chief economist for the Mortgage Bankers Association at their 2001 Annual Convention & Expo in October.5
However, it’s important to keep in mind that even a 4% mortgage rate is low when compared to historical standards. According to industry trade blog The Mortgage Reports, “Between 1971 and December 2020, 30-year mortgage rates averaged 7.89%.”6
What does it mean for you? Low mortgage rates can reduce your monthly payment and make homeownership more affordable. Fortunately, there’s still time to lock in a historically-low rate. Whether you’re hoping to purchase a new home or refinance an existing mortgage, act soon before rates go up any further. We’d be happy to connect you with a trusted lending professional in our network.
THE MARKET WILL BECOME MORE BALANCED
In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus and a shift to remote work triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labor shortages hindered new construction.
This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to George Ratiu, director of economic research at Realtor.com, “Prices and sellers reached for the moon [last] year. It looks like we are now about to move back to earth.”7
Data from Realtor.com released in November showed that listing price reductions had more than doubled since February 2021. And the average days on market (an indicator of how long it takes a home to sell) has been slowly creeping up since June.7
What’s causing this change in market dynamics? The real estate market typically slows down in the fall and winter. But economists also suspect a fundamental shift in supply and demand.
At the National Association of Realtors’ annual conference last November, the group’s chief economist, Lawrence Yun, told attendees that he expects increased supply to come from an uptick in new construction—which is already underway—and an end to the mortgage forbearance program. “With more housing inventory to hit the market, the intense multiple offers will start to ease,” he said.8
Demand is also predicted to wane slightly in the coming year. Rising mortgage rates and record-high prices have made homeownership unaffordable for a growing number of Americans. And in a recent Reuters poll, nearly 80% of property analysts said they expect housing affordability to worsen over the next several years.9
What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Increased supply and softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with more inventory on the market, you’ll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.
HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE
Nationally, home prices rose an estimated 16.8% in 2021.8 But the average rate of appreciation is expected to slow down in 2022.
Danielle Hale, chief economist at Realtor.com, told Yahoo! News, “Home asking prices have decelerated in the second half of 2021, with median listing price growth slipping from a peak of 17.2% in April to just 8.6% in October.”10
But experts disagree about how much more property values can continue to climb this year. Goldman Sachs predicts that home prices will rise by 13.5%, while Fannie Mae and Freddie Mac are forecasting a 7.9% and 7% rate of appreciation, respectively.2
However, not all analysts are as bullish. The National Association of Realtors predicts a 2.8% rate of appreciation for existing homes and 4.4% for new homes, while the Mortgage Bankers Association expects the average home price to decrease by 2.5% by the end of the year.10,2
According to Hale, “With prices near all-time highs and mortgage rates expected to rise, we expect this slowdown in prices to continue.”10
What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. We can help you get the most for your money in today’s market.
RENTS WILL CONTINUE TO RISE
Along with home, gasoline, and used vehicle prices, rent prices rose dramatically last year. According to CoreLogic, in September, rents for single-family homes were up 10.2% nationally year over year.11 And economists at Realtor.com expect them to climb another 7.1% in 2022.12
“Homes are expensive now...but for most people, the comparison that is most important is how that cost of homeownership is going to compare to the cost of renting,” Zillow Senior Economist Jeff Tucker told CNBC in November.13
Tucker also pointed out that rent is less predictable than a mortgage—and more likely to go up along with inflation.13
Real assets, like real estate, are often used as a hedge against inflation. That’s because property values typically rise with inflation.14 And when a homeowner takes out a mortgage, they lock in a set housing payment for the next 30 years.
In contrast, renters are at the mercy of the market—and they don’t gain any of the benefits of homeownership, like tax deductions, equity, or appreciation.
George Ratiu of Realtor.com told CNBC that he advises buyers to consider their budget and time frame. If they plan to stay in the home for at least three to five years, he believes it often makes sense to buy.13
Fortunately, it’s shaping up to be a better year for buyers. “I think 2022 has the promise of providing less competition, a lot more homes to choose from, and, as a result, a lot more approachable prices,” Ratiu said.13
What does it mean for you? Both property and rent prices are expected to continue rising. But when you purchase a home with a fixed-rate mortgage, you can rest assured knowing that your monthly mortgage payment will never go up. Whether you’re a first-time homebuyer or a real estate investor, we can help you make the most of today’s real estate market.
WE’RE HERE TO GUIDE YOU
While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.
f you’re considering buying or selling a home in 2022, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.
Sources:
Fortune - <a href="https://fortune.com/2021/11/04/us-home-prices-real-estate-forecast-2022-outlook/">https://fortune.com/2021/11/04/us-home-prices-real-estate-forecast-2022-outlook/</a>
Fortune - <a href="https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/">https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/</a>
Freddie Mac - <a href="https://www.google.com/url?q=http://www.freddiemac.com/pmms/pmms30.html&sa=D&source=docs&ust=1638967830220000&usg=AOvVaw0aD3U0D9M-QZg6IJ9RxDDz">http://www.freddiemac.com/pmms/pmms30.html</a>
Freddie Mac - <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-strong-housing-market-will-continue-even-rates-and">https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-strong-housing-market-will-continue-even-rates-and</a>
Mortgage Bankers Association - <a href="https://www.mba.org/2021-press-releases/october/mba-annual-forecast-purchase-originations-to-increase-9-percent-to-record-173-trillion-in-2022">https://www.mba.org/2021-press-releases/october/mba-annual-forecast-purchase-originations-to-increase-9-percent-to-record-173-trillion-in-2022</a>
The Mortgage Reports - <a href="https://themortgagereports.com/61853/30-year-mortgage-rates-chart">https://themortgagereports.com/61853/30-year-mortgage-rates-chart</a>
Realtor.com - <a href="https://www.realtor.com/news/trends/has-housing-market-peaked/">https://www.realtor.com/news/trends/has-housing-market-peaked/</a>
National Association of Realtors - <a href="https://www.nar.realtor/newsroom/nars-yun-says-housing-market-doing-well-may-normalize-in-2022">https://www.nar.realtor/newsroom/nars-yun-says-housing-market-doing-well-may-normalize-in-2022</a>
Reuters - <a href="https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/">https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/</a>
Yahoo! News - <a href="https://www.yahoo.com/now/where-home-prices-headed-2022-130012748.html">https://www.yahoo.com/now/where-home-prices-headed-2022-130012748.html</a>
CNBC - <a href="https://www.cnbc.com/2021/11/16/inflation-rent-for-single-family-homes-surged-10percent-in-september.html">https://www.cnbc.com/2021/11/16/inflation-rent-for-single-family-homes-surged-10percent-in-september.html</a>
Realtor.com - <a href="https://www.realtor.com/news/trends/what-to-expect-in-2022-housing-market/">https://www.realtor.com/news/trends/what-to-expect-in-2022-housing-market/</a>
CNBC - <a href="https://www.cnbc.com/2021/11/23/rising-inflation-hot-housing-market-what-you-need-to-know-about-buying-a-home.html">https://www.cnbc.com/2021/11/23/rising-inflation-hot-housing-market-what-you-need-to-know-about-buying-a-home.html</a>
Money - <a href="https://money.com/inflation-2021-stocks-bitcoin-gold-reits-commodities/">https://money.com/inflation-2021-stocks-bitcoin-gold-reits-commodities/</a>
2022-01-06T22:55:00-07:00
2022-01-06T23:18:58-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:17771
What It Means To Be in a Sellers’ Market
<article id="post-97616" class="post-97616 post type-post status-publish format-standard has-post-thumbnail hentry category-sellers category-housing-market-updates category-pricing">
If you’ve given even a casual thought to <a href="https://www.mykcm.com/2021/03/04/is-it-a-good-time-to-sell-my-house/" title="selling">selling</a> your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="available">available</a> for buyers who are looking for homes to purchase.
The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace.
Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):<a href="https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-97618" src="https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1.png" alt="What It Means To Be in a Sellers’ Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it <a href="https://www.mykcm.com/2021/03/24/why-you-should-think-about-listing-prices-like-an-auctions-reserve-price/" title="essential">essential</a> for buyers to submit very attractive <a href="https://www.mykcm.com/2021/03/15/how-to-make-a-winning-offer-on-a-home/" title="offers">offers</a>.
As this happens, home prices rise and <a href="https://www.mykcm.com/2021/03/08/5-reasons-to-sell-your-house-this-spring-2/" title="sellers">sellers</a> are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so <a href="https://www.mykcm.com/2021/02/22/where-have-all-the-houses-gone/" title="few">few</a> homes are available to buy, it will likely get a lot of attention from hopeful buyers.
Today, there are many buyers who are ready, willing, and able to purchase a home. Low <a href="https://www.mykcm.com/2021/03/09/how-upset-should-you-be-about-3-mortgage-rates/" title="mortgage rates">mortgage rates</a> and a year filled with unique <a href="https://www.mykcm.com/2020/11/16/why-working-from-home-may-spark-your-next-move/" title="changes">changes</a> have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.
Bottom Line
Home prices are <a href="https://www.mykcm.com/2021/03/02/home-prices-what-happened-in-2020-what-will-happen-this-year/" title="appreciating">appreciating</a> in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it.
</article>
<a href="https://www.mykcm.com/2021/03/26/2021-real-estate-myth-buster-infographic/" rel="prev" title="« 2021 Real Estate Myth Buster [INFOGRAPHIC]">« 2021 Real Estate Myth Buster [INFOGRAPHIC]</a><a href="https://www.mykcm.com/2021/03/30/how-a-change-in-mortgage-rate-impacts-your-homebuying-budget/" rel="next" title="How a Change in Mortgage Rate Impacts Your Homebuying Budget »">How a Change in Mortgage Rate Impacts Your Homebuying Budget »</a>
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2021-03-30T17:25:00-07:00
2021-03-30T17:34:26-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:15110
The Cost of Renting Vs. Buying a Home [INFOGRAPHIC]
<img width="1046" height="1129" src="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg" class="attachment-entry size-entry wp-post-image" alt="The Cost of Renting Vs. Buying a Home [INFOGRAPHIC] | MyKCM" srcset="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg 1046w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-556x600.jpg 556w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-948x1024.jpg 948w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-768x829.jpg 768w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1423x1536.jpg 1423w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1897x2048.jpg 1897w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-100x108.jpg 100w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1484x1602.jpg 1484w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
The <a href="https://www.zillow.com/research/affordability/" title="percentage" target="_blank" rel="noopener noreferrer">percentage</a> of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
This is making buying a home an increasingly attractive option for many people, especially with low mortgage <a href="https://www.simplifyingthemarket.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/?a=645272-2877c00547dd13a208f0005932db7b2e" title="rates" target="_blank" rel="noopener noreferrer">rates</a> driving purchasing power.
Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.
2020-09-02T08:29:00-07:00
2020-09-02T08:32:52-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9965
First Time Buyers
2020-01-22T09:50:00-07:00
2020-01-22T09:58:57-07:00
Heidi Shade
tag:exitrealtypalmbeach.com,2012-09-20:9931
Canadians should use Canadian Banks to Finance USA Purchase
For Canadians, buying a home in the U.S. is different than what Canadian buyers are used to. And one of the biggest challenges is how Canadians handle the difference in the exchange rate when paying for property in the U.S. The good news is that there is at least one Canadian Bank that can finance a Canadian buyer's U.S. purchase without that buyer losing money on the exchange differential in currency. RBC Bank of Canada is one such bank and fortunately I have a select relationiship with them to assist any Canadian buyers who are interested in owning property here in the U.S.
RBC works in partnership with real estate professionals like myself and our Canadian clients to bridge the gap and get things done right. Some major differences of dealing with RBC:
RBC uses your Canadian credit history to help you qualify- unlike most U.S. banks.
RBC won't charge Canadians a foreign national fee- saving them up to 2% on their rate.
RBC mortgages are available in all 50 states.
Foreign exchange is a big concern for Canadian buyers. When Canadian clients finance a U.S. home instead of paying cash, they limit their upfront foreign exchange cost to just the 20% down payment and closing costs.
RBC accepts funds drawn from your Canadian equity to cover the down payment on U.S. property.
RBC will share their network of cross-border tax and legal professionals to assist our mutual clients move easily throughout the buying process.
If you are Canadian and looking to own real estate in the U.S, look for the advantages offered you by RBC and me here in South Florida. And if you are looking elsewhere in the U.S, I can help you find a trusted Real Estate professional in any area who can work with you and RBC to make your U.S Real Estate purchase go smoothly. <br /><br />RBC has a great Canadian Dollar to US Dollar converter program for assistance. Click this link: <a href="https://www.rbcbank.com/cgi-bin/tools/cadusd-foreign-exchange-calculator/start.cgi?utm_source=bronto&utm_medium=email&utm_campaign=cbree&utm_content=drip-10_calculator" title="CAD to USD Converter from RBC Bank" target="_blank">CAD to USD Converter</a>
2020-01-19T11:18:00-07:00
2020-01-19T14:18:46-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:9786
PRIORITY TASKS FOR YOUR MOVE IN
Moving into a new home is an exciting time, and you’re probably daydreaming about decor and paint schemes and new furniture. But before you get into the fun stuff, there are some basics you should cover first.
Change the locks
Even if you’re promised that new locks have been installed in your home, you can never be too careful. It’s worth the money to have the peace of mind that comes with knowing that no one else has the keys to your home. Changing the locks can be a DIY project, or you can call in a locksmith for a little extra money.
Steam clean the carpets
It’s good to get a fresh start with your floors before you start decorating. The previous owners may have had pets, young children, or just some plain old clumsiness. Take the time to steam clean the carpets so that your floors are free of stains and allergens. It’s pretty easy and affordable to rent a steam cleaner—your local grocery store may have them available.
Call an exterminator
Prior to move-in, you probably haven’t spent enough time in the house to get a view of any pests that may be lurking. Call an exterminator to take care of any mice, insects, and other critters that may be hiding in your home.
Clean out the kitchen
If the previous occupants wanted to skip on some of their cleaning duties when they moved out, the kitchen is where they probably cut corners. Wipe down the inside of cabinets, clean out the refrigerator, clean the oven, and clean in the nooks and crannies underneath the appliances.
2019-12-27T09:00:00-07:00
2020-09-02T08:35:51-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9647
Do I Need a Permit for That?
When does a homeowner need a permit to remodel? Ask local government. It varies by city and few offer an easy-to-find master list of permit-needed activities.<br /><br />
When undertaking a remodel or home improvement project, how do you know when you need a building permit from your city government?
Cities require permits to ensure that the changes on a home go on record. The changes also are reviewed by an inspector to ensure they’re up to code. For example, if you decide to rewire your electricity panel, exposed wires could represent a safety issue to you and your home.
When homeowners sell their home, buyers and lenders will want to know if any remodels they did complied with building codes. So the permit could salvage a sale too.
“The general rule of thumb is that structural, electrical, plumbing, or mechanical work will require a permit,”
A fence installation or repair, window installations, plumbing and electrical work, replacing the water heater or changes to the ventilation system, as well as gas and wood fireplaces all will likely require a permit for the work. Also, any additions or upgrades made to the home, typically of $5,000 or more, will likely require a permit.
On the flip side, permits likely won’t be needed for painting, installing floors or faucets, or landscaping work.
Permit requirements vary by city. Check with the local building department to be on the safe side.
courtesy:© Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688
2019-11-29T10:10:00-07:00
2020-01-19T11:14:42-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:9618
TOP TIPS FOR HOUSE HUNTING ONLINE
Hunting for a new home online is a great place to start your search, but it should not be your end all be all. Good listing agents are excellent at highlighting the best features of the home, but keep in mind there may be more than meets the eye. To make the most of your time and efforts and gather a well-rounded picture of home listings online, keep the following three things in mind.
Stay up to date. When you start your search, make sure you find a site that pulls up-to-date listings directly from the multiple listing service (MLS) where real estate agents actively post their most current homes for sale. Many online resources update less often or fail to remove listings that are off the market, making it more difficult to sort through the clutter.
Pictures can be deceiving. Real estate photographers are experts at showing a home in the best possible light. Many use tools and strategies to boost appeal, such as a fisheye lens to make areas look larger and creative editing to make colors and textures really pop. But, often listings will not contain photos of unappealing parts of the home, like small closets or outdated bathrooms.
See it to believe it. Once you find what appears to be your dream home online, call up your real estate agent and schedule a showing. You want to take the opportunity to vet the home in person and explore every part of it before beginning the offer process. Your real estate agent will help you cover all your bases and will ask questions you may not have thought of.
2019-11-25T20:13:00-07:00
2019-11-25T20:17:08-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9372
Is Getting a Home Mortgage Still Too Difficult?
<img src="https://assets.site-static.com/userfiles/1653/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.
2019-10-17T14:15:00-07:00
2019-10-17T14:22:47-07:00
Victor Defrisco
tag:exitrealtypalmbeach.com,2012-09-20:9370
Common Things to Look Out for Before Buying Your Dream Home
<img src="https://assets.site-static.com/userfiles/1653/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing.
2019-10-17T14:15:00-07:00
2019-10-17T14:22:37-07:00
Victor Defrisco
tag:exitrealtypalmbeach.com,2012-09-20:9369
Will Increasing Mortgage Rates Impact Home Prices?
<img src="https://assets.site-static.com/userfiles/1653/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.
2019-10-17T14:15:00-07:00
2019-10-17T14:22:32-07:00
Victor Defrisco