4 Reasons to Move Up to Your Dream Home This Spring/Summer

Posted on by Andrea T. Fowler

4 Reasons to Move up

 

Spring is in full force; the summer months are right around the corner. If you are debating moving up to your dream home, here are four great reasons to consider listing your current home and moving up to your dream home now, instead of waiting.

1. Buyer Demand is High & Inventory is Low

Recent numbers show that buyer demand is at the highest peak experienced in years, and inventory for sale is at a 2-3 month supply, which is still markedly lower than the 6 months needed for a historically normal market.

Demand in many markets is far exceeding the supply, and more properties in March sold in less than 30 days (42%) than in any month since last July.

Listing your home today can greatly increase exposure to buyers who are out in force and ready to act.

2. Prices Will Continue to Rise

CoreLogic recently released their latest Home Price Index in which they predict that national home values will appreciate by 5.3% by this time next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting for your current home’s value to increase before selling could price you out of your new home if you aren’t careful.

3. Mortgage Interest Rates Are Still Near Record Lows

Interest rates have remained below 4% for some time now and are substantially lower than the rate previous generations paid when getting a mortgage.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will rise over the next 12 months.

An increase in rates will impact YOUR monthly mortgage payment. Even an increase of half a percentage point can put a dent in your family’s net worth. Whether you are moving up or buying your first home, your housing expense will be more a year from now if a mortgage is necessary to purchase your home.

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Have you always wanted to live in a certain neighborhood? Would a climate change be just what the doctor ordered? Would you like to be closer to your family?

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Bottom Line

If the right thing for you and your family is to move up to the home of your dreams this year, buying sooner rather than later could lead to substantial savings. For more information about what your home could sell for today, contact New Avenue Realty at Keller Williams Dallas Preston Road at 972-813-9788 or [email protected]. #YourNewAvenueAwaitsYou #SelltheThrone #CrowningHomeowners

Can I Buy a Home and Sell My Current One at the Same Time?

Posted on by Andrea T. Fowler

Question of the day right. The simple answer to this question is “yes”. You are able to sell your current home and purchase your next one at the same time. One of the main reasons of moving up is the equity that may be in your home. The chart below notes what homeowners think is their equity value compared to what is their equity value. February2016-29

So are you wondering what you need to do to buy your next home and sell your current home? Well I have you covered in this week’s Tuesday Tip.

 

 

Your new avenue awaits you……Let’s Find it!

Find your new home at NewAvenueRealty.com or move-updallas.com.

 

 

No Matter Which Groundhog You Listen To, You Should Buy or Sell Before Spring!

Posted on by Andrea T. Fowler

Tulip Garden

Is spring closer than we think? Depending on which Groundhog you witnessed a few days ago, you may have less time than you think to get your home on the market before the busy spring season.

Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

Here are five reasons to sell now. 

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now!

Take advantage of the strong buyer activity currently in the market. 

2. There Is Less Competition Now

Housing supply just dropped to 3.9 months, which is well under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last three years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A study byHarris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.4% over the next 12 months according to CoreLogic. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by three-quarters of a percent by the end of 2016.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

On the other side, here is the top reasons why you should buy before Spring.

  1. Serious Sellers with Serious Deadlines.

There are less people moving out or buying during winter season because of Christmas and  End of the year activities that needs to be done. This means there are a lot of great properties which were listed during winter but was not sold, sometimes that also means price reduction.

2. New year New you

A lot of people believes in starting fresh at the start of the year, some of these individuals have just started looking around and do not have everything they need to get ahead of the home buying process which is why they normally end up buying in Spring. Get ahead of the herd by getting pre-qualified and talking with a lender to know your buying limit and save time.

3.Get a Great Price for Listed Properties from Winter

Like mentioned above, lots of properties are still in the market from winter. This is the time where sellers are usually active and likely to be in negotiating mood for their property. Try to contact a seller immediately if you see a house that suits your needs.

4. Vacation time is over

Tried to contact a seller during Christmas time and did not get a reply? This is the best time to send a follow up as most people are back to business. You are more likely to get a  home if you follow up with a seller to let them know that you were first in line if there are others who are interested in the property as well.

5. Less Competition

Do not get caught in the Spring Trend of the Real Estate market. Prices go up and great properties are being sold by the minute. Get first pick of the best property by getting a headstart!

 

 

For more information about selling your home, contact New Avenue Realty (Keller Williams Realty – Dallas Preston Road) via email or phone at [email protected] or 972.813.9788.

Homeownership: The Real Story Behind The Headlines

Posted on by Andrea Fowler
Homeownership: The Real Story Behind The Headlines | Keeping Current Matters
The big housing news this week is that the homeownership rate has dropped to 63.4% which represents the lowest rate in 48 years. That news definitely is making headlines. Yet, to fully understand what this means we have to look at the story that created these headlines.
There is no doubt the homeownership rate has declined since the housing crisis. Here is a graph showing the homeownership rate over the last twenty years. It skyrocketed during the housing boom and has steadily fallen since the bust:
HomeownershipRates | Keeping Current Matters

The story behind the headline…

The dramatic fall in the rate over the past year must be looked at very closely. The rate is determined by the “number of households” who rent versus those who own. Let’s assume you have nine friends that live on their own (thus forming a household); six of them own and three of them rent. That would mean that 66.6% (6 out of 9) of your friends that live on their own are homeowners.
Now, let’s assume you have another friend who has been living with his parents. He would not be considered a separate household because he lives within his parents’ household. Once that friend moves out of his parents’ home and gets a place of his own, he will become part of the household count. Let’s assume, since he is just starting out, that he moves into a rental.
When he does, you now have ten friends that live on their own. If six still own their home and four of your friends now rent, the homeownership rate of your friends drops to 60% (6 out of 10). The number who own didn’t decrease; but the percentage decreased.
With the economy improving and job numbers looking better, more and more young adults are beginning to move out and get a place of their own. However, most will start in a rental situation thus driving the “percentage” of homeownership down. Auction.comexplained the most recent drop in homeownership rate this way:
“This occurred as household formations popped, implying millennials are riding an improved labor market out of mom and dad’s house. Roughly a third of millennials live at home according to Census data, an elevated figure. Continued gains in the labor market will coax increased numbers out into their own places, a majority of which will be apartments, as this age cohort lacks the financial wherewithal to buy.”

What does this mean to the future of homeownership?

The great news is that study after study has shown that Millennials aspire to homeownership as they still see it as a major part of the American Dream. As they get more comfortable with their financial situation, many of the Millennials who finally made it out of their parents’ homes this year will become homeowners over the next several years. An increase in homeownership rates will follow.

If You are Thinking of Selling, Now’s the Time

Posted on by Andrea Fowler
If You are Thinking of Selling, Now’s the Time | Keeping Current Matters
If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.
Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed:
“Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.”
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.

5 Demands to Make on Your Listing Agent

Posted on by Andrea Fowler

5 Demands to Make on Your Listing Agent | Keeping Current Matters

Are you thinking of selling your house? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.
You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.
Here are the top 5 demands to make of your Real Estate Agent when selling your house:

1. Tell the truth about the price

Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.
The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. Surveys show that there was a challenge with the appraisal on almost 20% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.

2. Understand the timetable with which your family is dealing

You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.
This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. Your agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work. 

3. Remove as many of the challenges as possible

It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.
Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family (commission, length, etc.), don’t expect them to turn into a super hero when they are negotiating for you and your family with the buyer.

4. Help with the relocation

If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

5. Get the house SOLD!

There is a reason you are putting yourself and your family through the process of moving.
You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT!




“5 Demands to Make on Your Listing Agent.” Keeping Current Matters. N.p., 13 Jan. 2015. Web. 16 Jan. 2015.

Why You Should Be Interested in the Housing Market?

Posted on by Andrea Fowler
Maybe it’s time to Move Up

If the starter home you started with has started to seem too small, maybe it’s time to move up. Here are three reasons why you should be interested in the housing market as a seller. Yes just three.

1. Equity

Chances are, your home has appreciated in value. Now is the time to capitalize on the equity that you have made in your home. Here in the Dallas/Fort Worth area, there are major corporations moving there headquarters to the area. Homes will be needed and homes can sell quickly for a great profit. Why not take the equity in your home to gain a profit and purchase another home? Who knows, the home you purchase could possibly be paid in full in cash or with a large down payment.

2. Payment 

Did you ever imagine that your home would appreciate enough to finance the home you’ve always dreamed of? Here’s the time to take advantage of today’s historically low interest rates. You can have the chance to double the size of your home while still paying the same payment as you did in your old home. This is a win-win for families who need more space but at the same mortgage payment they pay now. How can you say no to that? More space for the same amount of money.

3. Lifestyle

For sellers, you have grown accustomed to your neighborhood. Your children love their schools in the neighborhood. When moving up, you can afford to buy a newer home in the neighborhood or live in the new subdivision that still feeds into the schools your children currently go to.

Owning a home is an accidental investment. Why not take the time to see how much you have in your investment? The inventory is low for buyers and now is the time to put your home on the market for more serious buyers. It is known that people who search for a home in the fall and winter are serious buyers. Think about it, who would search for a home in cold weather conditions (well maybe just cool because this is the Dallas area)if they weren’t serious?

Want to know the value of your home? Click here to find out how much your home is worth.