Racing the Rates- Should You Sell Your House Now?

Typically it’s buyers who are most concerned about rising mortgage interest rates and for good reason. A small jump in rates will cost them a few more bucks per month for the same house than it would’ve if they hadn’t waited to make an offer and lock in a rate. Add a few of those rate hikes together before they buy, and the added cost can be really aggravating. Mortgage rates constantly go up and down, which is why they’re almost always in the news. It’s something to write about. Right now they happen to be going up again, as CNBC pointed out in this article about how rates jumped again and how it affects buyers. To summarize the big news, rates went up 0.35% in a week. Overall, not a huge deal. At least not enough to really change home values overnight.

But then they dig in a little more and added, “For a median-priced home, currently about $350,000, buyers putting down 20% will now see a monthly payment $125 higher than they would have just three weeks ago.” They’re going back three weeks to basically say that the monthly payment would be $125 more per month for the average buyer. That isn’t due to the one-week bump; that’s due to a few bumps over time. But it starts to add up, and buyers start to notice and feel it a little more.

Does this mean there’s going to be an absolute halt to the buying frenzy? No, at least not overnight. The market (and your home’s value) won’t turn on a dime and turn your dollars into dimes. But if the trend continues, and the news continues to point it out and alarm buyers, it could cause them to at least be less aggressive in how much they’re willing to pay in the near future. Or, perhaps they’ll just be less willing to get involved in a bidding war. Also worth noting: it could also come to a point, if rates rise significantly, where buyers simply won’t be willing to pay the prices they have been for a house.

After all, the value of homes is in large part based upon how much buyers can afford to pay per month, and what they want and will agree to buy for that much per month. So, if they get to a point where the rates are increasing their monthly payment too much, it will likely cause them to lower the amount they are willing to pay for your house.

There’s really no crystal ball to say whether or not rates are on an upward trend for good, or how high they’ll go. All you can deal with is the here and now, along with a little “what-if” assessment.

So, to sum up, if you’re even remotely thinking about selling, here’s a good two-step game plan:

  1. Get a firm grasp on what your house is currently worth in the market right now.
  2. Assess whether or not it makes sense for you to capitalize on the current value and sell now, or let it ride and see if the rates keep hovering and values continue to rise (or at least stay about the same).

Racing the Rates- Should You Sell Your House Now?

Finding a Certified Kansas Home Inspector

Home inspections are a critical part of the home buying and selling process. Failure to obtain a home inspection could potentially cost you a great deal of money and hassles in the long run. [NAR]

Home Inspection is NOT a licensed profession in Kansas. Therefore it is very important to work with a “certified” Home Inspector. Click on the picture below to find a certified Home Inspector in Kansas, or nationwide. Should you have any questions please feel free to contact me at (785) 307-0703 or Sabine@NextHomeUnlimited.com

Listing of Certified Home Inspectors in Kansas

*InterNACHI School is accredited as a postsecondary education institution by the national accrediting agency of the U.S. Department of Education to provide tuition-free online training, examination, certification, and continuing education to InterNACHI® members in Kansas.

 

Below is a great article and video on questions you should ask when choosing your Home Inspector.

Questions to ask a Home Inspector

Home Inspector

 

Are you thinking about buying or selling a home?

I would love the opportunity to assist you in making the best decision for you and your loved ones.

Have an amazing day!

Sabine

Hello Everyone!

Welcome to my website.

Whether you’re a first time buyer or an experienced investor, you’ll find useful information about how to choose the “right” property, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed home buying decision in today’s market.

If you currently own property and are thinking about selling property, this site contains information about preparing your home for sale, selecting the right agent, pricing your home appropriately, marketing it effectively, going through the inspection process, and receiving a timely market evaluation.

Please use my website as a continued resource and if you need more information on anything, please feel free to call or email me.  My contact information is listed on the  page or About page.

Thanks for visiting!

How Long Do Families Stay in a Home?

How Long Do Families Stay in a Home? | Keeping Current MattersThe National Association of Realtors (NAR) keeps historic data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.How Long Do Families Stay in a Home? | Keeping Current Matters

Why the dramatic increase?

The reasons for this change are plentiful. The top two reasons are:

  1. The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property).
  2. The uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

However, with home prices rising dramatically over the last several years, over 90% of homes with a mortgage are now in a positive equity situation with 70% of them having at least 20% equity. And, with the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstances. They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple planning to start a family that currently lives in a one-bedroom condo. These homeowners are ready to make a move. Since the lack of housing inventory is a major challenge in the current housing market, this could be great news.

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Three Questions to Ask Before Buying Your Dream Home

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market. Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money. For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.” This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons people buy a home have nothing to do with money. They are:

  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.

What does that mean to you?

Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait until next year. Your down payment will need to be higher as well to account for the higher home price.

3. Where are mortgage interest rates headed?Mortgage Rate Projections | Keeping Current Matters

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates. TheMortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase over the next twelve months as you can see in the chart below:

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

An Easy Way to Find the Perfect Real Estate Agent

There is a plethora of real estate information available today in the news and on the internet. It can be extremely confusing at times. If you are thinking of buying or selling, you need an agent who can help make sense of this rapidly evolving housing market. You need an agent who can help you price your home correctly at the beginning of the selling process. You need an agent who can help you determine 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.”Perfect-KCM copy

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience so much easier.

But, how do you identify which agents truly understand what is happening and will take the time to simply and effectively explain what it means to you and your family? One simple way is to check out the agent on social media. What are they posting on Facebook and Twitter? Are they using their social media platforms to share relevant, helpful information or are they just posting cherry pie recipes and cartoons? The best agents are committed to educating the consumer so they can feel confident when they are buying or selling a home. What they are posting online will help you determine which agents meet the criteria that Dave Ramsey suggested you look for: someone with the heart of a teacher!

Picture This!

Listing photos may be one of the most important marketing efforts that lead to a potential buyer.

Nearly, all buyers use the Internet during the home search process. They usually start looking at homes online before they contact an agent. It’s far more efficient to screen properties by looking at the pictures that have been posted than to make appointments with each homeowner, drive all over town and waste a lot of time looking at homes that would never meet a buyer’s criteriacropped-DSC_0201.jpg

  • There needs to be enough pictures of a property to adequately represent the home; most websites allow for at least 24 and more may be needed if it is a large home.
  • Take horizontal shots to accommodate the format of most listing websites.
  • The pictures should be well-lit so that it is easy to see all of the features of the room. Natural light is preferred over the limitations of flash.
  • They should be taken with a wide-angle lens so that you can see the majority of the room in one picture.
  • Large rooms can be taken from different angles to give the buyers a different perspective.
  • Rooms should be set if not staged prior to taking the pictures so they will give the buyer an idea of what the room might look like with their own things in it.cropped-DSC_0129.jpg
  • Arrange pictures in website to help buyers visualize the floorplan as if walking through it.
  • Think about using a tripod; professionals do to absolutely hold the camera still.
  • They should definitely not be “photoshopped” to modify factual elements like removing power lines.

Everyone occasionally takes a great picture but it doesn’t make them a photographer. Since the photography can be one of the most important marketing efforts, consider using a professional photographer to show the home to its best advantage.

Luckily, here at NextHome Unlimited – we’ve got one on staff!

What’s Stopping You?

The majority of tenants say they’d like to own a home but continue to pay rent and missing out on financial and emotional advantages. There seems to still be a lot of misinformation in the marketplace.What's Stopping You?

There are a number of programs for low or no down payment options. Veterans can get into a home with no down payment or closing costs. In qualifying areas, USDA has zero down payment programs. FHA requires 3.5% down payment and there are conventional programs for as little as 3% and 5% down.

People with credit issues need expert opinions about their specific situation. Borrowers with bankruptcies or foreclosures may be eligible to purchase again after certain periods of time. There are short-term fixes for some types of credit problems. There is an extended list of individual issues that a skilled mortgage professional may be able to overcome.

Most tenants realize considerably lower cost of housing by owning once the appreciation, amortization and tax savings are considered. The savings in the first year alone could easily be more than the down payment required.

Plug in your own numbers in a Rent vs. Own to see what your real cost of housing may be. Contact us for a recommendation of a mortgage professional who can give you accurate information about your situation.

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