Looking to buy a home? Now is not the time

Fall is bringing with it new highs in home prices, crushing potential buyers hopes for relief from the affordability crisis. While sellers continue to benefit with the rising affordability, buyers are not so lucky. Even with interest rates near all-time lows, would-be buyers may struggle to enter the market. http://www.housingwire.com/articles/38191-looking-to-buy-a-home-now-is-not-the-time ❤️ #share #mortgage

Summer housing market not cooling down this Fall

After a Summer filled with rising home prices and low inventory, many look to the Fall with hopes for relief. However, that relief may not come soon for buyers. In fact, this Fall is about to see the hottest seller’s market in 10 years. http://www.housingwire.com/articles/38190-summer-housing-market-not-cooling-down-this-fall ❤️ #share #mortgage

You Live in a Hot Market ... Should You Buy or Sell?

The real estate market is full of ups and downs. So when the market in your area is at the boiling point, should you strike while the iron is hot to buy or sell?

When you’re thinking about testing the waters with either a home purchase or sale, there’s a lot to consider before you make a decision.

Get expert advice before you make a jump into or out of a market. Here are some tips to get you started.

Determine just how hot your market is

Unless you actively seek out financial news, it may be difficult for many homeowners and potential buyers to know whether or not their market is at its peak.

“When you’re in a frothy market, you’ll typically see double-digit increases in values from one year to the next,” says Bridget Burgess, a client adviser at Seattle-based Laird Norton Wealth Management. “Once you’re seeing that, people walk away with a sense of urgency.”

Once buyers and sellers determine that their market is doing well, they often feel the need to act quickly. However, when it comes to real estate, it’s not always best to make a move just because a market is showing healthy signs.

Consider the long term

Real estate, more than any other type of investment, is emotionally charged. Though some buyers may purchase real estate with emotional detachment, most of us are thinking about a place to call home.

A red-hot real estate market can trick us into thinking that we need to only think about the bottom line.

"A frothy market might distract you from where the real estate might fit in your overall picture,” explains Kristi Mathisen, managing director of tax planning at Laird Norton Wealth Management. “Instead of selling, there could be a possibility of moving a home to be a rental home or giving your home to your children. A frothy market encourages people to focus on one transaction. Don’t let the market drive you into a decision.”

Just because there’s an opportunity to sell doesn’t necessarily mean that it’s the right move for you. When you are thinking about selling, be sure to analyze where you are in your life.

Are your kids young, or have you been an empty nester for years? Are you close to retirement, and are you considering moving out of town? These are the types of questions to ask yourself before you make a move.

When you’re a buyer, a peak market can be a little bit riskier. Ask yourself if you’re comfortable with being upside down on a home if the market potentially collapses. Determine whether it makes more sense financially to rent or buy. Online calculators can help you figure out the best option.

What worked before doesn’t work today

The landscape of homeownership is completely different today than it was even a couple of decades ago. Wages have been stagnant for some time, and it’s not as easy to “grow into your mortgage” as it used to be.

Low mortgage rates also make it difficult for a buyer to refinance in the future.

“In the old days - when mortgage rates were five, seven, or nine percent - the usual advice was this: ‘Buy the biggest house you can finance. Try to get the worst house in the best neighborhood and fix it up,’” Mathisen says. "The idea was to stretch to buy now and refinance later to lower your payment. This advice is now questionable because mortgage rates are already at historically low levels (about 3.5 percent for 30 years; 2.8 percent for 15), so it’s unlikely refinancing can ever save a current buyer money.“

Take your time

The important thing to remember is that it’s smart to take your time to think about real estate decisions. After all, home sales and purchases cannot be undone quickly or easily - if at all.

It’s also crucial to make sure that your mortgage is not the only investment that you have, and to diversify, advises Burgess.

When you take the time to carefully calculate the costs, benefits, and purpose of the property you want to sell or invest in, you’re much more likely to arrive at a decision that will be the best for you and your family.

Related:

• Renters: Are You Ready to Buy a Home?
• Predicting the ‘Right Time’ to Buy or Sell a Home
• Are You Ready for a Hot Seller Season?

from Zillow Porchlight http://www.zillow.com/blog/buy-sell-in-a-hot-market-204577/

Think You Should FSBO? 5 Reasons to Think Again!

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

* 44% on the internet
* 33% from a Real Estate Agent
* 9% from a yard sign
* 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. 

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

* The buyer who wants the best deal possible
* The buyer’s agent who solely represents the best interest of the buyer
* The buyer’s attorney (in some parts of the country)
* The home inspection companies, which work for the buyer and will almost always find some problems with the house
* The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000, while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer. http://www.simplifyingthemarket.com/en/2016/10/03/think-you-should-fsbo-5-reasons-to-think-again/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage

TRID one year later

Oct. 3, 2015, was a historic day for the #mortgage industry and is forever marked as the official implementation date for the Consumer Financial Protection Bureau’s Know Before You Owe rule. Also known as the TILA-RESPA Integrated Disclosure rule, or TRID, it sought to inform borrowers about costs before the closing date. Now that a year has officially passed since that deadline, it’s easier to see exactly how the industry dealt with the massive changes. http://www.housingwire.com/articles/38182-trid-one-year-later ❤️ #share #mortgage

Monday Morning Cup of Coffee: Illinois looks to end ties with Wells Fargo; TRID anniversary

One year ago today marked a pivotal change in the industry: the CFPB officially held #lenders, vendors and everyone in the industry accountable for the Know Before You Owe rule. Meanwhile, trouble is far from over for Wells Fargo as the city of Chicago and the state of Illinois add their names to the list of places that are still looking for retribution. http://www.housingwire.com/blogs/1-rewired/post/38189-monday-morning-cup-of-coffee-illinois-looks-to-end-ties-with-wells-fargo-trid-anniversary ❤️ #share #mortgage

Altisource Residential doubles single-family rental portfolio with $652 million deal

When Altisource Residential said last year that it planned to grow its portfolio of single-family rental homes by 900% – from 2,516 to more than 25,000 – over the next few years, the company apparently wasn’t kidding. Altisource said Friday that it is buying a portfolio of 4,262 single-family rental properties for an aggregate purchase price of $652.3 million, a deal that more than doubles Altisource’s rental holdings. http://www.housingwire.com/articles/38186-altisource-residential-doubles-single-family-rental-portfolio-with-652-million-deal ❤️ #share #mortgage