How’s the Market?

Posted on by Andrea T. Fowler
Mila Floorplan Model Home by TriPointe Homes in Little Elm.

When asked about the market as a REALTOR®️, I’m honest on what it is whether it is a potential seller or buyer asking.

As of today, our #DFW market is still pretty strong. Inventory is ⬆️, which gives buyers more options. However, as a seller, you’ll think the market is crap. As a buyer, you’ll think the same too. Understanding where the local market is and where you can get the best bang for your buck, helps you weather it.

Solutions for both:
Sellers – Today’s market IS NOT the market from the spring. You have to put your home in the best light to get it sold if you want top dollar. No longer will just listing it and waiting for the crowd to appear work. Determine if you want top dollar. If you do, you’ll have to do things to get top dollar in today’s market. That includes pricing it right off the bat, great curb appeal, staging, professional photos, and keeping the home clean and organized. I highly recommend staging for today’s market.

Buyers – Be realistic and understand your local market. I know you’re hearing “rates this and rates that”. What really matters is what you can realistically afford. Rent is at 100% interest that isn’t written off during tax season. This IS NOT 2008 at all. Buy a home you can afford and that fits your lifestyle for the timeframe you want it to be. Understand what you want and what you can afford may be two different things. Find where the two areas collide or adjust based on where you want to be.

Bottom Line: Yes, people are still buying and selling. People will continue to buy and sell because LIFE happens through all the ebbs and flows whether good or bad. The key is to understand what is happening in your local market with a trusted expert.

Save this post for future reference. If you’re ready to chat about homeownership in #DFW, book a consultation with me at calendly.com/newaverealty.

Let’s Talk About Affordability

Posted on by Andrea T. Fowler

 

Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.

However, it is not just the price of a home that determines its affordability. The monthly cost of a home is determined by the price and the interest rate on the mortgage used to purchase it.

Today, mortgage interest rates stand at about 4.5%. The average annual mortgage interest rate from 1985 to 2000 was almost double that number, at 8.92%. When comparing affordability of homeownership over the decades, we must also realize that incomes have increased.

This is why most indexes use the percentage of median income required to make monthly mortgage payments on a typical home as the point of comparison.

Zillow recently released a report comparing home affordability over the decades using this formula. The report revealed that, though homes are less affordable this year than last year, they are more affordable today (17.1%) than they were between 1985-2000 (21%). Additionally, homes are more affordable now than at the peak of the housing bubble in 2006 (25.4%). Here is a chart of these findings:

Homes More Affordable Today than 1985-2000 | Keeping Current Matters

What will happen when mortgage interest rates rise?

Most experts think that the mortgage interest rate will increase to about 5% by year’s end. How will that impact affordability? Zillow also covered this in their report:

Homes More Affordable Today than 1985-2000 | Keeping Current Matters

Rates would need to approach 6% before homes became less affordable than they had been historically.

Bottom Line

Though homes are less affordable today than they were last year, they are still a great purchase while interest rates are below the 6% mark.

I BOUGHT A HOUSE! What I Learned? – The Financials

Posted on by Andrea T. Fowler

I’ve been a REALTOR® for 4 years and have been trying to purchase my own home in just about that same amount of time.

2012 – 2013

Here’s the backstory. I graduated grad school in August 2012. I started working for a nonprofit in South Dallas in January 2013 where the premise of our business was revitalizing South Dallas and homeownership was one of those ways. There was no way I could talk about the values of homeownership without buying my own home. However, credit stood in my way. I knew I made mistakes from college that hunted me. The income and the debt weren’t syncing to make it right. Until one day, I decided I wanted a house. Working at the nonprofit, I knew what credit score I needed to have. I believe when I started on my credit, my score was at 585. I needed a minimum of 620 to get a down payment assistance program and go from there. I managed my money, I saved, and I would scroll online. Looking for a home was the easy part. It wasn’t until I found a home around the corner from my then apartment that was perfect. It had a pink and green room and a doggy door. It was perfect for me, so I thought? I called the Realtor to show it to me. It was a foreclosure listed at $120K. I had already did a cost analysis being a Housing Counselor so I knew how much I could possibly afford.

When I walked into this house, the ceiling was caved in. You could see mold and so much more. There was mildew around the doggy door and I wanted to run. RUN THE HELL OUT and kill the dream. LOL

I immediately went back to the drawing board. The fixer upper home was NOT in my budget. It sounds nice on paper but what people fail to realize is the cost of fixer upper. If you can barely afford the downpayment like I was at that moment, a fixer upper may not be for you. Cosmetic updates and fixer upper are two different things.

I had gotten my real estate license in between that time and decided this was the chance for me to be able to really scour through the market. I connected with a few lenders and found one I liked to work my own house deal. She qualified me for $120K which was right on the money for the foreclosure home that I saw. However, at that time, I had started doing deals in real estate and was ready to leave my full time job. I told the lender that and she was like yeah to get a home being self-employed, you’ll need 2 years of tax returns. What? That meant I would have to wait 2 years before coming back to get qualified. Well, 2016 it would be.

FAST FORWARD TO 2016!

I’m ready to get a mortgage. I’ve made decent money in real estate so I should be good. Well, I went with a different lender that I worked with. He approved me but at this time $140K. You know why? As a self-employed person, we pay A LOT in taxes. I saw the first estimate and was like no thank you. Therefore my income was lower than I originally told the lender (self-employed people are qualified based on the income they report to the IRS) and the average of 24 months only qualified for $140K. I knew where I wanted to live and $140K wasn’t even buying a door to the house. I spread out my options within Denton County between Little Elm, Aubrey, Cross Roads, Oak Point, The Colony, Carrollton, and Lewisville. I knew for sure I loved the 380 area however homes were around $180-200K. I halted the process then and said I would try again in 2017. I knew my taxes for 2015 and 2016 combined would have more income than my taxes for 2014 and 2015 were.

2017

By tax time, I knew I had to make my numbers stand out to buy my house. In simplest terms, I knew I couldn’t write off everything. I had to strategically plan it out and know what the estimated taxes would look like. Thank GOD for a past client would recommended their CPA. I saved so much in taxes and still claimed the income that I needed. It was at that moment, I was able to purchase a home up to $246K. Originally, my budget was set at $180K. I set myself up on a search on the MLS for homes under $200K in my desired areas. I noticed that the homes that were under $200K were getting slim. I had to act fast and knew I wasn’t getting under $200K in my desired area.

This was it. I was finally going to do it. I scoured through the area that I wanted to buy in after narrowing it down to 3 communities. I LOVED new construction and thought it would be the best way to save more money to purchase, give me a great timeframe, and sign one more 6 month lease to end apartment living forever.

*Check out the next blog/vlog as I walk you through my home buying process.*

Feeling inspired to begin your home buying process? Visit newavenuerealty.com.

Rent is Increasing! Why You Should Look Into Homeownership.

Posted on by Andrea T. Fowler

Recently, WFAA released an newcast stating that the rent rates in DFW are increasing month-to-month.  All across DFW, you will see development happening. The developments are for new businesses, new apartments, and/or new homes. There isn’t too many places where you don’t see that in DFW. Currently, Dallas is the land of opportunity.

The newly published April 2017 Dallas Rent Report shows prices across the city remain above the national media. On average, one-bedroom apartments were leasing for $1,260. Two-bedroom units were renting at $1,760.

There are thousands of people relocating here monthly (so yes, people are coming here and they need a place to live). As a Realtor, I have people coming from everywhere. It isn’t a specific place that people aren’t migrating from. They come from the East and West Coasts, other Southern states, and the Midwest.

My biggest motto from a financial standpoint is that if you are paying $1000+, you should consider purchasing a home. Why? The benefits of being a homeowner outweighs being a renter. Let’s take this example.

Let’s say your monthly rent is $1200/month. For a whole year, you’ve paid $14,400 in rent. However, if you had a home that was $1200/month for your mortgage, you could have tax benefits from property taxes, mortgage insurance, mortgage interest. The $14,400 you spent with a mortgage with a tax benefit of $3,600 means that you technically have paid $10,800 for a whole year. That’s basically $900/month. What’s even better? You are build equity while buying and equity = wealth. With an apartment, you are making the developer/builder wealthy.

Homeownership is an investment. Yes, you can invest in stocks and bonds but homeownership provides you a tangible asset. Homeowners in DFW have seen an increase in their asset of 8.5%. That’s extra money that you have made and all you did was live in a home. Can you say the same about your apartment? I live with the financial sense of wanting to make money while I sleep. That is EXACTLY what a home does. Check out the graph below on the status of DFW homes from 2014 to now.

The market has went from homes having a median sales price of $162,000 to $255,000 in June 2017. That’s a $93,000 increase in 3 years. Listen to me, that’s $93,000 increase in THREE years. Imagine what you could do with $93,000 if you had a home to sell. That’s 20% down for a move-up home and some left over to decorate and pay Navient (Sallie Mae’s wicked sister) a nice chunk of change.

Bottom Line: You could look into purchasing a home instead of renewing your lease. Homeownership can be a condo, townhome, or a house. The first two really depends on a person’s lifestyle and what they prefer. All three can be considered a home that you’ve purchased. I think condos/townhomes are great for turning into easy rental properties whether short term (Heard of Airbnb or Homeaway?) or in the long-term. You have to weigh your options and what works best for you. The easiest way to get to the McMansion is to purchase your first home and build yourself and your wealth from there.

For more detailed information for your personal situation, contact me at 972-813-9788 or [email protected].

 

 

Est. 2016 – Funky Town Living with Tracey

Posted on by Andrea T. Fowler

Tracey’s Gorgeous Home in Fort Worth

When I met Tracey, it was a phone call I received while in New Orleans for the Keller Williams annual Family Reunion conference. I remember sitting in my room I received an email and her number. I was nervous it was a spam email (I cannot tell you how many I get in one day). I was like why not call and make sure. I gave her a call and it was a real person and number. LOL

She told me she saw me in the Missy Lynn videos and was looking for a Realtor to help her purchase a home in Dallas. I told her that as soon as I made it back to Dallas in a few days, we could meet up to talk. I always seem to have some type of connection with clients. Lately, it has been a Louisiana connection. Tracey is from New Orleans and relocated to Dallas after Hurricane Katrina. She had no desires to make Dallas a permanent home but 10+ years later, she decided to do just that.

So we searched. It all started in Denton County. Until finally, I suggested a hidden gem area of Tarrant County.  Read her story and more below.

1. What type of home were you considering? 
At least a 3-bedroom, 2-bath home. Something practical, well-kept and comfortable.
2. What city did you purchase your home in? 
Fort Worth
3. Was it your first choice location? If not, what areas did you consider?
Not my first choice at all! I was convinced I would buy a home in Lewisville, Carrollton, Flower Mound or The Colony. 
4. Now that you have lived in your city for a year, what is it that you like about your city?
The area I’m in is less congested than some other parts of the Metroplex and if I wanted to avoid the interstate, I could go back and forth to Irving (where I work) on the ground.
5. What attracted you to your neighborhood?
The house itself, the price and the fact that there wouldn’t be much traffic in and around the subdivision because there aren’t that many places of business nearby.
6. What is something that you like about your neighborhood now that you have lived there for a year?
I LOVE how the subdivision is surrounded by farms, the Trinity river and a small lake.  The drive into my subdivision is really nice and peaceful, particularly at night.
7. What advice would you give a first time homebuyer?
Definitely put in the time to physically go and view the properties –  even if you think it’s something you don’t want. You’d be surprised at how differently a house feels when you walk inside as opposed to just looking at the pictures. Stay within your means. Go a little bit under if possible because it gives you more money to furnish it exactly how you want and to do projects around the house.
I enjoyed working with Tracey. The Mid-Cities areas were on her list too. However, the homes needed some work based on the price range she wanted to stay in. I suggested that if we go a mile or two from the area, we would find something a little newer/updated. We definitely did just that. When I say this home was a hidden charm, it was. The neighborhood is off chilling (it isn’t far from the highway) but you wouldn’t necessarily stroll up on it. This is one of my favorite homes bought by past clients.

One Year Update: Prosper Living with Lauren

Posted on by Andrea T. Fowler

Today is the actual home anniversary of one of my dear friends. A little background story of how I connected with Lauren before she was a client. We both attended Louisiana State University. We started in Summer 2006 and were both as we say it in Louisiana “318” girls. That just means we are from North and Central Louisiana.

Lauren moved to DFW from Houston in 2015. She quickly told me she’d rent for a few months and purchase a home. She had purchased two in Houston and she didn’t plan to be in anyone’s apartment. As she says this, I quickly mention that the Dallas market is different from Houston and a little more expensive as well. After 6 months of renting a townhome, Lauren was over it and was ready to find her home. Our journey began. Read below for her chat on buying her first home in DFW.

June 8, 2016 – #CrownedAHomeowner

1. What type of home were you considering?

I previously came from a 4 bedroom home so I was looking for a similar size home that would accommodate all my furniture.
2. What city did you purchase your home in?

Prosper
3. Was it your first choice location? If not, what areas did you consider?

I focused my search on a particular area of town and not so much the city. I was open to all areas along the 380 corridor.
4. Now that you have lived in your city for a year, what is it that you like about your city?

I love that Prosper is a growing town. I get the small town feel all while being close to the city.
5. What attracted you to your neighborhood?

The builder, neighbors, and amenities.
6. What is something that you like about your neighborhood now that you have lived there for a year?

I love the sense of community in my neighborhood. If I ever leave something at the grocery store, I just ask my neighbors and they have it!
7. What advice would you give a first time homebuyer?

Be willing to compromise. It’s rare that you will get everything on your wish list. Understand that all the lovely features you want will cost so understand what can be upgraded at a later time to add value to your property in the future.

Love her decoration of her fireplace as a focal point in the living room

 

One of Lauren’s dogs ACTING precious. I know the real truth.

 

Lauren’s home was actually one that looked small without furniture in it. When I stopped by after she moved in, I was like WOW….I can’t believe your home is this big. This is to say, you’d be surprised on how much space the rooms actually have.

Buying this Spring? Be Prepared for Bidding Wars

Posted on by Andrea T. Fowler

Traditionally, spring is the busiest season for real estate. Buyers come out in force and homeowners list their houses for sale hoping to capitalize on buyer activity. This year will be no different!

Buyers have already been out in force looking for their dream homes and more are on their way, but the challenge is that the inventory of homes for sale has not kept up with demand, which has lead to A LOT of competition for the homes that are available.

A recent Bloomberg article touched on the current market conditions:

“It’s the 2017 U.S. spring home-selling season, and listings are scarcer than they’ve ever been. Bidding wars common in perennially hot markets like the San Francisco Bay area, Denver and Boston are now also prevalent in the once slow-and-steady heartland, sending prices higher and sparking desperation among buyers across the country.”

Sam Khater, Deputy Chief Economist at CoreLogic went on to explain why buyers are flocking to the market in big numbers:

“In today’s market, many buyers think the trough in [interest] rates is over. If you don’t get in now, it’s just going to be worse later. Rates will be higher, prices will be higher, and maybe inventory selection will be lower.”

In Dallas, homes are staying on the market for almost 16 days with the homes selling at 98.4% of the listing price.  Homes under $200,000 sell in 6 days and sell for 100% of list price in North Texas.

Bottom Line

In today’s competitive atmosphere, you need a professional on your side who knows your exact market conditions and can help you take the steps you need to be able to secure your new home! Schedule a buyer’s consultation with New Avenue Realty at atfowlerrealtor.appointy.com.

CLOSING DAY! The Kellys

Posted on by Andrea T. Fowler

20161110_113236

It’s a new homeowner’s favorite day. It has been a pleasure to work with the Kellys. I remember our first day meeting each other. They came as a referral from a past client and friend. I tend to have small connections with clients besides the referral person.

The Kellys are both from Louisiana and just so happen to go to college in my hometown or shall I say parish. For them, as with most clients, location was important. My suggestion after considering their work locations and their daily life, I suggested the East Dallas suburbs. The homework was to visit communities and we’ll regroup after my conference.

To my surprise, they loved the East Dallas suburbs so much, they called while I was at the conference to say they found the community and are ready to go. That day we were working it out for them to move into a neighborhood. Goodbye McKinney! Hello Heartland!

I gave them other areas like Fate, Royse City, Rowlett, and Rockwall to check out but the fell in love with one of the builders we went to go see when considering areas such as Sachse and Wylie. They found a master planned community that fit what they were looking for a little outside of those areas with perfect access for family coming in from Louisiana.

I can honestly say that it is the relationships that are built through the transaction that I love the most especially during the building process. I come along as a trusted confidant and helped throughout selections of the interior and exterior.

I must say that I cannot wait to see how they turn this house into a home. Congratulations to the Kellys!

Is Now the Time to Buy A Home?

Posted on by Andrea T. Fowler

Screenshot_20160908-222200

 

Is now the time to buy a home? I won’t be Andrea if I am not completely honest with you about this question.  The answer to this is subjective. As a millenial myself, we get a lot of flack of not buying homes or buying homes BUT you don’t know what other people’s coinage look like. Every millenial is NOT in debt up to their neck nor do they need to go live with their parents to save for a down payment.

I will say the best answer is to do what’s best for you. Homeownership is not for everyone. In fact, even as a Realtor, I’ve told a few buyers that it may be best that they rent a little longer. This is normally the case when people’s expectations are higher than their budget especially after seeing what’s available in their budget.

For myself, I think of homeownership as a wealth builder. It’s an easy way to build your wealth and not think too hard about it. For instance, your home makes money as you sleep. It just happens to be the place that you raise your family, entertain family and friends, and sleep. It isn’t a liquid asset but an investment nonetheless. No matter the market, people will forever need somewhere to lay their heads. You can even use it to build your retirement plan as well with rentals. I met a guy last year who funded his whole retirement through rental properties. He decided to sell them all last year. The townhome he was selling was $170,000. Mind you he had 17 properties. Let’s do math here: If he had 17 properties and let’s just say all of them sold for $170,000, that’s 2.89 million dollars in gross profits.  Now think about the rent he collected throughout the years. Did I mention he still worked a 9-5 as well? Trust me….you don’t get to make true wealth by just working a 9-5. I am not a financial planner but I am sure they will tell you that you need your eggs in more than one basket.

Other misconceptions I commonly here is “such and such” ended up retiring in their 30s because they didn’t buy a home. That is so great. I want to retire by 45 myself but homeownership is included in my portfolio to do so. What those type of stories don’t tell you is that “such and such” probably had no student loan debt and a six-figure job.

Figure out what your financial picture and plan is. We are not our parents or grandparents generation. No one typically lives in their home for the whole 30 year mortgage life cycle. The average homeowner lives in their home for 4-7 years. My best advice to give is to buy a home that can easily be resold. In DFW, I would say a home that is at least 1500 square foot, 3 bedrooms, 2 bathrooms, and a 2 car garage. Don’t live for your now when buying. Think about your life for the next 5 years and the person who buys your home. Think about how long you plan on staying in the home as well. If you plan to leave your area in the next year or two, then homebuying may not be for you right now.

It’s okay but the biggest answer is it will be your choice and what you can afford. In my honest opinion, the best answer is to weigh your options and not what anyone else has to say to you. Is it cheaper to own than rent? In some areas yes. In DFW, the rent is just as high as the mortgage. The only difference is that you get tax breaks from the mortgage and the rent is just gone.

 

 

Christmas in July! Kennedy One-Year Follow Up

Posted on by Andrea T. Fowler

This is one story I’ve been waiting to share.  If I ever have to give it to a client who really stayed patient and kept fighting throughout a transaction, it would be Zakeia. Seriously, in previous transactions, some clients would give up after they lost house #2 in a multiple offer situation. Some clients would nick and pick a perfectly good home away. Not Zakeia. She knew her top 5 and that is what we consistently looked for. We had to be more open to areas and there was one that I knew would be a winner but it would take time before we made our way there.

Last summer is very similar to this summer with multiple offers galore especially with homes under $200K. Zakeia put in offer after offer. Still, she was determined to find her home. There was this one home that I kept passing through on the MLS. I’m like it is perfect for her. As soon as she met me to see it, she said the same as well. We sat in the home for almost an hour crafting the perfect offer to seal the deal. Did I mention that we sealed the deal? Enough of me. Check out Zakeia’s story.

1. What type of home were you considering? 

I wanted a single family home with at least 3 bedrooms 2 bathrooms. 

2. What city did you purchase your home in? 

Aubrey

3. Was it your first choice location? If not, what areas did you consider?

No it was not my first choice. I wanted a home in the Carrollton/Lewisville area but I ended up broadening my search and looking in other towns.

4. Now that you have lived in your city for a year, what is it that you like about your city?

I love how quiet and peaceful my neighborhood is. They are building new restaurants, stores, neighborhoods, and apartments all around here.

5. What attracted you to your neighborhood?

The cute white fences and the clean quiet neighborhoods. 

6. What is something that you like about your neighborhood now that you have lived there for a year? 

I like the quietness. Even with there being children who live next door, everyone is very respectful and friendly .

7. What advice would you give a first time homebuyer? 

My advice to any first time home buyer is this is a process. It might not be an easy process but you must have patience and know what is for you will be for you. The long term benefits are well worth the wait. Do not settle but keep an open mind. Last but not least make sure you have a great realtor who will keep you encouraged and informed during the process.

Zakeia Kennedy
A great moment for me was decorating and having friends and family over for the holidays.

If you want to talk about how you can become the King or Queen of your castle, we can speak by phone, video-call, or in-person by clicking here to contact me: http://NewAvenueRealty.com.