Should You Renovate or Move?

Posted on by Andrea T. Fowler
Highland Home Model Home in Sherman, TX

The last 18 months changed what many buyers are looking for in a home. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:

  • 70% of respondents want more outdoor living space
  • 69% of respondents want a home office (48% wanted multiple offices)
  • 46% of respondents want a multi-function room/flexible space
  • 42% of respondents want an au pair/in-law suite
  • 39% of respondents want an exercise room/yoga space

If you’re a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:

  1. A possible desire to relocate
  2. The difference in the cost of a renovation versus a purchase
  3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

In either case, you’ll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.

Home Equity Is Skyrocketing

The Big Question: Should You Renovate or Move? | Keeping Current Matters

The record-setting increases in home prices over the last two years dramatically improved homeowners’ equity. The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:

“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.

If you decide to renovate, you’ll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between the down payment and the cost of your next home.

Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you’ll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you’re one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

First Step: Determine the Amount of Equity in Your Home

If you’re ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you’ll need two things:

  1. The current mortgage balance on your home
  2. The current value of your home

You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.

Bottom Line

If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home.

SELL MY HOUSE: 5 Easy Ways to Attract Buyers

Posted on by Andrea T. Fowler

It’s time to sell your home and you’re stumped on what to do. What are the first steps? How do you prepare for the sale? All you know is that you are going to sell it to a buyer but how do you attract them? Hit play to discover the answer.

Reach out to New Avenue Realty for a complimentary consultation for selling your home: [email protected].

Not sure what to list your home for? Check here for neighborhood information: My Home is Worth What?

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.

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.

Thank You — New Avenue Realty Home Owners of 2014

Posted on by Andrea Fowler

Can you believe that 2014 is 2 weeks from being over? Seriously this year has come and gone. We are on the brink of 2015 and New Avenue Realty has some AMAZING plans for 2015 I promise you do not want to miss out. 

Before the year ends, I would like to give a major thank you to my clients of 2014. These were first time buyers and sellers who were ready for home ownership. I am so thankful that they chose me to represent them as they purchase and sold their homes. 

(Left to Right)
A. The McIvers – Purchased their first home as newlyweds in March 2014 in Hickory Creek, TX
B. The Jusino’s – Purchased their first home as newlyweds in April 2014 in Lancaster, TX
“I would recommend the agent since she has guided us to our future home and stayed on top of it even though we didn’t win the initial offer. She has also answered a bunch of my questions since we are first time home buyers. We recommend her to guide you to your future home!” – Clint Jusino

C. The Ramirez’s – Purchased their first home as newlyweds in May 2014 in Cedar Hill, TX
“Andrea helped us find our first home on a very tight schedule. Andrea is knowledgeable and is very organized. Andrea also responds to her customers very quickly and always takes care of outstanding items. Andrea had answers and solutions for us very quickly. She is extremely helpful. Thank you, Andrea!” – Gonzalo Ramirez

D. The Jacksons – Purchased their first home in May 2014 in Royse City, TX
“Andrea is compassionate about what she does. We purchased our first home through a lender that many did not know about. Andrea educated herself and followed up throughout the entire process. She works diligently to ensure your needs as a client are met! Definitely chose Andrea to assist you if you are looking for a home!” – Tiffany Jackson

E. Brittnee Jenkins – Relocated to Fort Worth after graduate school and purchased in August 2014 in Fort Worth

F. SouthFair Community Development Corporation – Community Housing Development Organization in South Dallas that builds and sells homes to low and moderate income individuals and families. 
Sold 3 Homes with SouthFair CDC in July, October, and December 2014 – Dallas
During the course of working with my clients, I built relationships. To me that is the most important thing that a Realtor can do. I enjoyed every aspect of working with them and helping to ease the process of homeownership. My favorite part of the process with my buyers is watching their eyes light up when they have found the one. I make it every effort to make sure that they get “the one”. My favorite part of the process with my sellers is knowing that someone has consider their home as “the one”. I’ve always wanted to make a difference in my career. This is by far one of the best ways to make a difference. I get the experience to see families grow and new journeys being taken in the world of home ownership. 
In the end, thanks for working with me! I have enjoyed you this year. I leave all my viewers with this one question:
Who will be a New Avenue Realty Home Owner or Seller in 2015? 





For more information about buying or selling a home in the Dallas/Fort Worth metroplex, contact me at 972.813.9788 or [email protected]. 

Before I end this post, I have to acknowledge my renters of 2014 as well. Hope to build our relationship to the journey of home ownership in 2015. 

Janet Munoz – Dallas
Candice Young & Cornelius Hayes – Fort Worth
Alexis Woodley – Grand Prairie, TX
Brittany Dixson – Fort Worth
Michelle & Josh Penix – Fate, TX

New Avenue Realty’s Refer A Friend Rewards

Posted on by Andrea Fowler

Refer A Friend

Starting January 1st, I will be starting my refer a friend rewards program. For each referral sent, you will be entered in a drawing to win a prize each month for referrals. Your referral must schedule a buyer or seller appointment in order for you to be entered into the contest. The more times you refer a friend, the more times you are entered for the monthly and grand prize drawing. You can start today here: New Avenue Refer A Friend Program

The Grand Prize will be 2 tickets to a Dallas Mavericks basketball game in December 2015. So who will be our first winner of the “Refer A Friend” Rewards?

For more information about the rewards program, contact me at 972.813.9788 or email me.




P.S. Friends don’t let friends search on Zillow or Trulia when there is a North Texas Realtor ready and willing to work so that they get the best real estate deal.