Thinking of Buying? Selling? Five Reasons You Need To Hire A Professional

Thinking of Buying? Selling? Five Reasons You Need To Hire A Professional

Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the National Association of REALTORS®, there are literally hundreds of actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream.

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $210,000 compared to $245,000 among agent-assisted home sales.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

Dave Ramsey, the financial guru advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring Liz Sandwick as your Coldwell Banker Burnet Real Estate Professional  with her finger on the pulse of the market will make your buying and/or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring Liz Sandwick your Coldwell Banker Burnet Real Estate Professional?

6 Important Things You Need to Know About the Housing Market in 2016

6 Important Things You Need to Know About the Housing Market in 2016

Buying a home is still part of the American dream.

According to a survey from Trulia, 75% of Americans dream of owning a home, up 1% from 2015. This dream is even more pressing among Millennials because 80% of those surveyed would like to buy a home — and 31% would like to do so by 2018.

Whether you're looking to buy a home this year or already own one, there are important factors that will affect your investment. Here are the six important things you need to know about the housing market in 2016.

1. Mortgage Rates Are Staying Low (For Now!)

The Fed's December 2015 interest rate hike had many consumers worried that rock-bottom mortgage rates would finally come to an end. However, the economic events of the first two weeks of 2016 show that low mortgage rates will stick around for a bit longer.

Given the lackluster performance of the stock market, many investors are buying bonds and driving down the yields of these investment vehicles. This is great news for those looking for a home loan, because the interest rates on 30-year mortgage loans are highly correlated with the yield of the U.S. Treasury 10-year bond. According to data from the Federal Reserve Bank of St. Louis, the average 30-year fixed rate mortgage average in the U.S. was 3.97% on January 7, 2016, down from 4.1% in December 31, 2015.

2. HARP Refinance Deadline Receives Extension

Many experts expect mortgage interest rates to increase further down the road. Those mortgage holders that haven't been able to refinance to a lower rate yet should think about doing so this year — especially homeowners that are underwater on their mortgages.

As of January 2015, about 700,000 borrowers who owed more than their homes were worth were still eligible to refinance their loans through the HARP program from the Federal Housing Finance Agency (FHFA). HARP was originally set to expire at the end of 2015, but it was extended for an additional year, until the end of 2016.

Nearly 3.3 million Americans have benefited from a HARP refinance to lower their monthly payments on their mortgages. The five basic requirements to qualify for a HARP refinance are:

• Loan was originated on or before May 31, 2009.
• Property is a primary residence, one-unit second home, or one- to four-unit investment property.
• Loan is owned by Freddie Mac or Fannie Mae.
• Current loan-to-value ratio must be greater than 80%.
• Borrower is current on the mortgage, with no over-30-day late payments in the last six months and no more than one in the past 12 months.

There are still close to 430,000 HARP-eligible loans out there and you can check the eligibility of loans by zip code.

3. Home Prices Are Rising Less Than in Previous Years

One of the necessities that will be cheaper in 2016 is the single-family home. In 2016, the national average price for a single-family home is expected to be 3% higher than last year, a much slower rate of growth than 2015's 5% increase.

4. Rent Prices Are Increasing Faster

On the other hand, rent prices are expected to increase sharply. In the third quarter of 2015, U.S. home buyers were spending 15% of their monthly income on the mortgage payment of a typical home, while U.S. renters were spending 30% of their monthly income on the rent payment of a median-valued property.

Higher rent prices will continue to be norm in 2016. According to a survey of more than 500 large U.S. property managers, rental inventory is at the lowest level in over 20 years.

A smaller inventory of available units for rent enables landlords to demand higher prices from renters. Of the surveyed property managers, 55% reported to be "less likely to offer concessions or lower rents to fill vacancies" and 68% of them expected to continue raising their rental rates in 2016 by an average of 8%.

5. New FHA Loan Limits Take Effect

On December 9, 2015, the Federal Housing Administration (FHA) announced its new schedule of loan limits for 2016. FHA home loans allow homebuyers to access financing with a minimum 3.5% down payment of the market value of the property, among other requirements.

Given the changes to median house prices in certain metropolitan areas, in 2016 the maximum FHA loan limit is higher in 188 counties. However, the maximum nationwide FHA loan limit remains at $625,500 (here is a list of areas that are at the ceiling or that are considered "high cost.") On the other hand, in 2016 the minimum FHA loan limit doesn't decrease for any areas in the country.

6. Fannie Mae Loosens Some Requirements

The Federal National Mortgage Association (FNMA), better known as Fannie Mae, is giving Americans a break in 2016. Through its new Home Ready mortgage program, Fannie Mae aims to broaden access to home financing to credit-worthy low-to-moderate income borrowers.

Contact Liz Sandwick your Coldwell Banker Burnet Real Estate Professional to analyze all of the options and opportunities available to you in today’s marketplace. Call or Text: 612-548-4549 or Email: LizSandwick@gmail.com