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5 Exciting Stats From the May 2018 Market

I’ve checked over the numbers from May, and I want to share five interesting statistics about the market in this latest update.
 
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Today I have a market update to share with you that includes five super cool statistics about the state of our market.

1. We have 5.4% fewer single-family homes listed, comparing the end of May 2018 to May 2017.
2. The number of units sold is down from 1,962 units to 1,910, which constitutes a 2.65% drop. This decrease is caused by the lack of inventory, not by the lack of demand—as you might have seen by now, buyers in the market are hammering listings with multiple bids.
3. The median days-to-offer is 14 days. This means that it’s taking roughly two weeks for listings to receive offers.
4. The median sales price is $440,000. This is a $35,000 increase from last year, or 8.63%, which is great news for sellers. What’s more, based on market trends, I don’t see this changing for at least two or three years.
It’s taking roughly two weeks for listings to receive offers.
5. The median sales-to-list price ratio is 98.83%. To explain, if a home was put on the market for $100, on average, it would sell for about $98. However, if you hire the Quail Group to sell your home, we’d sell it for $101.

If you have any questions about the market with respect to how it will affect buyers and sellers, feel free to reach out to us. I, or anyone else on my team, would be happy to help you out.

Is Getting Private Mortgage Insurance a Better Option for You?

If you are unable to put at least 20% down when you buy a new home, your bank may require you to also purchase private mortgage insurance.
 
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Today I want to talk about private mortgage insurance, more commonly known as PMI. Is PMI horrible? Is it good? The truth is that it oftentimes lies somewhere in the middle.
 
PMI is basically an extra fee for those homebuyers who do not put at least 20% down on a mortgage. PMI is something nobody really wants to pay. However, it allows people to buy, for example, a $400,000 home without putting down $80,000.
 
If you put less than 20% down, you will have to pay a fee every month for private mortgage insurance to ensure your bank’s peace of mind. They only want to be in a position where they have lent out 80% of the loan. If they have lent out 95% of the loan, they have a greater risk.  They don’t want to risk losing money if you lose your job or there is some other reason that you are unable to pay your bills, forcing you to sell the home. If they do not get all of their money back from the sale of the house, then the private mortgage company pays the difference.
 
Generally, it is a good thing. It helps you get into the market and helps you build equity. If you can afford the extra money per month for the policy, which is on a scale, it is worth it.
Banks do not want to risk losing money, so they require private mortgage insurance when homebuyers are unable to put at least 20% down.
Most buyers, especially first-time homebuyers, put down less than 20% and have PMI. There are some special programs which waive PMI, so give us a call and we can put you in touch with some of our preferred lenders and they can give you some extra information.

Once you own your property or you have equity of at least 20%, you can actually get rid of your PMI. It does not have to be there forever. Some loans you have to refinance to get out of them, however, other programs allow you to get a new appraisal once you reach the 20% value of the home and remove it easily.

If you have any additional questions about this or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

Don’t Believe These 4 Real Estate Myths

Here’s the truth behind four common real estate myths most people believe.
 
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 There are a lot of real estate myths floating around out there that you shouldn’t believe. Here are four major myths and the truth behind them. 

1. Real estate agents are paid a salary and keep all the commission from each deal. 

I wish this were true, but it’s not. For 99% of us agents, our salary is commission-based. We don’t get all of the commission from a real estate transaction, either. It actually gets split four ways—the listing agent splits it with the buyer’s agent, and each of those agents split their remaining half with their brokerages.
 
2. A home either “passes” or “fails” a home inspection. 

The home inspector’s job is to see what’s wrong with the house and then report any issues back to the buyer—not give it a “pass” or “fail” grade. After they do this, the buyer can either negotiate for certain repairs to be made, negotiate a lower price for the home, or walk away from the deal. 

3. Zillow says, therefore it is.

Zillow is a fantastic website for consumers and I like it very much, but their Zestimates, or the algorithm they use for home valuations, are flawed and can be off by as much as 30%. If you’d like a far more accurate valuation of your home, just call me and I’d be happy to take a look at it. 

4. All agents are the same. 

They’re not. For the most part, agents spend their own money marketing homes—the brokerages pay for very little. This means it’s up to them as far as how much demand they can create for your home and whether they can help you sell it for a high price. The market is great, and almost anyone can sell a house right now, but you might be leaving money on the table by not working with a high-powered agent such as myself who has a high-powered marketing program.
Contrary to popular belief, not all agents are the same.
If you’d like to read the original Inman article that inspired this topic and read about more real estate myths consumers commonly believe, click here. 

As always, if you have any questions or real estate needs, don’t hesitate to reach out to me. I’d love to help you.