Have a Question? Ask & We'll Answer It With A Video

7 Ways to Prepare for Your 2018 Home Purchase

Are you thinking about buying a home in 2018? I have seven tips that will help streamline that process to your benefit.

If you’re thinking about buying a home in 2018, here are the top seven things you should do:
  1. Check your credit score. Your credit score is like gold when applying for a mortgage.
  2. Don’t open any new lines of credit. You don’t want anything to affect your debt-to-income ratio, which could lower your buying power.
  3. Suggest financial gifts from your family. Instead of traditional presents, suggest that your family gift you funds for your housing purchase. Save that money towards a down payment, closing costs, and home inspection
  4. Keep tabs on interest rates. Rates are really good right now, so make sure they don’t climb too high when it comes time to purchase because that could lower your buying power.
  5. Find a good real estate agent to help you out. Anyone on our team would be happy to help you out. We’ll talk you through what you’re looking to do, educate you on the market, and tell you about the shadowy inventory that’s available.
  6. Get a mortgage lender who you can trust. We know some of the best in the business who will do a fantastic job and save you money.
  7. Get yourself pre-approved. Without being pre-approved, looking for homes would be like going to dinner without a wallet.

Without a pre-approval, looking for homes would be like going to dinner without a wallet.

If you have any questions about buying or selling real estate, feel free to give us a call. We’d love to help you out.

What Will Happen After the Real Estate Market Peaks?

Are we in a real estate bubble and is it about to burst? While prices may come down soon, it won’t be anything like last time.

Is the real estate bubble about to burst? 

The market has been going up and up and up for the last couple of years. As we all know, what goes up must come down.

We haven’t gone down yet, so does that mean there is still room for home prices to increase? I’ll share my thoughts on these questions today. 

First of all, there were a number of fundamental factors that caused the market to crash so hard the last time. One of the biggest factors was that there was no documentation for loans. You could tell a lender, “Hey, I make $200,000 a year.” Even though you’re only making $20,000, they would believe you. 

That doesn’t happen anymore. Now, you have to prove that you will be able to pay your mortgage in order to get the property. 

In the past, there was a whole subsection of loans built on sand. Once the market started to go down, those people couldn’t afford their homes anymore and the market just crashed. 

Again, we don’t have that issue anymore. 

There might still be room for prices to increase. I believe that we are heading for the crown of the market. Check out the video above to see what I’m talking about. 

Basically, as prices go up, we will hit a peak, and prices will begin a downward curve. If we draw a line, it looks like a crown. Prices will start to go down, but there won’t be a dramatic cliff-drop like we saw last time. 

If you are thinking of selling, you can lock in those gains now. If you are buying to flip a home, you don’t want to get caught at the peak right before prices go down. If that happens, you could buy something at $400,000 and end up selling at $390,000, which costs you $10,000. 

That said, now is still a good time to buy if you plan on living in the home for the next five to seven years or beyond. Even if there is a little price dip in the next two years, it doesn’t really matter because you’re not planning on selling. Plus, by buying now, you will lock in a 30-year fixed cost at a low interest rate. 

Now is still a good time to buy if you plan on living in the home for the next five to seven years.

If you are thinking of selling your home, I recommend that you get going on that in the next zero to 12 months before home prices start to go down. You can lock in good gains before prices start to go down. 

I believe that the market has reached its peak and that we will see a soft landing here. Again, since loans were only given out to qualified buyers, we won’t have a whole subsection of homeowners suddenly unable to pay their mortgage. 

I am starting to see buyers resist those listing prices a little this fall. There are still some bidding wars, but if a house isn’t priced correctly and has a little funkiness, it isn’t selling. There is super low inventory, so we might have a little bit of a run-up left before the market peaks. When it goes down, I think it will only go down a little bit. 

If you are trying to decide when to enter the market, obviously the best time to do so is when it makes the most sense for you to buy or sell. If you have any questions, please don’t hesitate to reach out to me. I would be happy to help you!

The Top 7 Reasons Why You Shouldn’t Wait to List Your Home

What makes this winter a great time to list your home? There are seven key reasons.

Here are the top seven reasons why you should consider listing your home now instead of waiting until spring: 

1. There’s less inventory. This means your home will get more attention. 

2. Job relocations. There are many corporations that do first quarter job relocations, and those employees only have a weekend or so to fly into town and look at homes. They need to make an offer on one of them soon—how great would it be if that was your home and you didn’t need to wait until spring when there is a lot more inventory?

3. The real estate agent community is locked in right now. A lot of agents aren’t as busy this time of year. They’re only working with a few buyers, which means they’re all the more focused on getting those buyers the right property. 

How great would it be if your home got sold now and you didn’t have to wait until spring?

4. Easier landscaping. You don’t need to worry about making everything look perfect in your yard. All you have to do is shovel. Also, it’s not necessarily a great time to put your home on the market in early spring in this regard because all the snow is melted and everything is muddy. 

5. You have fewer people coming through your house. You may think fewer people coming through your house is a good thing, but that also means having to deal with fewer strangers.

6. Buyers are more serious. You won’t get any looky-loos or tire-kickers in the wintertime. Winter buyers are motivated and they will pay you top dollar.

7. You can get a faster sale. Again, this is due less inventory being available. Additionally, a recent study by Trulia showed that homes are selling for more in the winter. 

If you have any other questions about the benefits of listing your home now, don’t hesitate to give me a call or send me an email. I’d be happy to help you.