What's Going On In Our Real Estate Market These Days?

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One question I get asked all the time is, “How's the real estate market?” Now more than ever, this question has special meaning. People have been afraid of all the tumult in the real estate and job markets over the last few years. We all know that when the housing market bounces back, it means that other parts of the economy are likely to be making a big comeback as well.

Interest Rates are Fantastic

The first trend that I want to talk about is interest rates. They are at an all-time low right now, which is a great thing for both buyers and sellers. I looked at a rate sheet just today, and it showed 15 year fixed rates at just 3.5%. It also showed 30 year fixed rates at only 4.125%. There are even programs as low as 2.75% interest on a 3 year ARM. Never before have we seen such opportunity with these low interest rates!

Whether you are looking to buy or sell, these low rates are beneficial. Obviously, if you are a buyer, the benefit is a huge money savings over the life of your loan. As a seller, having low rates opens up the marketplace to more qualified home buyers. This means more people are available to purchase your home!

Homes Are Selling

I also get asked whether homes are actually selling anymore. The answer is a resounding YES! Look, buyers will always have to buy and sellers will always have to sell. People will always need a place to live. Home are still selling. In fact, I checked the stats in our local market and saw that 530 single-family homes sold in November. My team sold 17 of those homes, so I know first hand that homes are selling.

One example of this is a listing we took recently. They had an accepted offer in less than 2 weeks at 97% of asking price. Another home we had was listed for 30 days and sold at 96.7% of asking price. The key is price and marketing.

This time of the year, the inventory levels drop because of the holiday season and colder weather. I took a look at those stats and saw that the levels drop about 10%. That means there are still plenty of homes for buyers, but way less competition for sellers! That is a win-win.

My team and I would love to help you whether you need to buy a home, sell a home or just have question. Give us a call today!

Should You Sell Now or Wait for Spring?

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One of the most common questions that we get each and every year is whether a home seller should try to sell their home during the cold, winter months or wait for spring to put it on the market? There are pros and cons to every situation, but I want to give you a few things to think about that you may not have considered.

Many people believe that it is always best to list and sell a home during spring. After all, isn't that when everyone else does it? Plus, there are some negatives to selling during the winter.

For one thing, winter is the holiday season. You have Thanksgiving and Christmas, among other holidays. Many people don't want the showings during the holidays. They don't like the idea of people walking through their home with snow on their shoes. They have their holiday decorations up and don't really want anyone messing with their festive home.

Many sellers think that there are less buyers during the winter, and that is probably true. However, consider this: buyers who are looking around the holidays are serious. Why else would they be looking for a home at that time of the year? Many relocation companies move employees during the winter because they want to get things done before the end of the year. Relocation buyers are often some of the strongest purchasers you can find.

Some sellers are also under the assumption that prices go up in the spring. Unfortunately, the current real estate market does not point to the idea that prices will rise in the spring. Experts hope that they do not fall further, in fact. Waiting for prices to go up so quickly may be a dangerous game for a seller to play.

There are some absolute positives to putting your home on the market during winter. First, the interest rates are very low right now. Buyers are getting into homes for 3.75% to 4% right now. No one can predict the future, so you want to strike while the iron is hot.

Also, there are less homes on the market in winter which means way less competition for a home seller. The greater metro area had 20% less listings going into the winter months than will be true during spring.

On a good note, homes are still selling. I checked the records, and last winter through February, our team sold 60 homes! I also checked the MLS records and saw that 2,363 homes sold last year in our area. Your home only has to be ONE of them.

In short, if you don't mind the little inconveniences of selling during winter, you can reap big rewards. Call on us today to find out more about putting your home on the market the right way.

What Are FHA Loans and How Do They Benefit Me As A Consumer?

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The Federal Housing Agency (FHA) doesn’t directly offer loans. Instead, its purpose is to provide mortgage insurance for Americans to purchase or refinance a principal residence.
To put it another way, the mortgage loans are funded by private lending institutions (mortgage companies, banks, savings and loan associations, etc.), and those mortgages are then insured by FHA/HUD.

The Benefits of FHA Loans

If you qualify as a prospective homeowner, these loans have three great benefits. First of all, your down payments are lower. Second, closing costs are also lower. And, finally, it’s easier to qualify for credit.

Who Qualifies?

FHA has programs for:

• First-home buyers
• Seniors
• Fixer uppers
• Manufactured housing and mobile homes
• Energy efficiency, etc.

If you’re a first-time home buyer, a FHA loan can be a good deal for you. See the eligibility requirements below. Later, I’ll cover the fixer-upper category requirements. Check with the FHA on other programs.

First-Home Buyer Programs

These programs have the following eligibility requirements:

• You must meet standard FHA credit qualifications (judged by the individual’s credit record).
• You’re eligible for approximately 97% financing.
• You’re able to finance the upfront mortgage insurance premium into the mortgage.
• You’re also responsible for paying an annual premium.
• Within this category, the eligible properties are one-to-four unit structures. As of this writing, the highest maximum FHA mortgage is $362,790 while the lowest maximum amount is $200,160.


The 203(k) Program for Fixer-Uppers


The 203(k) program issues loans to allow you to buy or refinance a property. In the loan, you can also include the cost of making the repairs and improvements.

The loans are provided through approved mortgage lenders nationwide, and they’re available to buyers wanting to occupy the home.

The down payment requirement for an owner-occupant (or a nonprofit organization or government agency) equals about 3% of the acquisition and repair costs of the property.

There are several steps to obtaining such a loan:

• You find a fixer-upper and sign a sales contract after doing a feasibility analysis of the property with a realtor.
• The contract should state that you’re seeking a 203(k) loan. It should also state the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.
• You then select an FHA-approved 203(k) lender and arrange for a detailed proposal showing the scope of work to be done. The proposal should include a detailed cost estimate on each repair or improvement of the project.
• The appraisal determines the value of the property after renovation.
• If you pass the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs.
• The amount of the loan also includes a contingency reserve of 10% to 20% of the total remodeling costs. It’s used to cover any extra work not included in the original proposal.
• At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
• The mortgage payments and remodeling begin after the loan closes.


You can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it’s estimated to take to complete the rehab.

• Escrowed funds are released to the contractor during construction through a series of draw requests for completed work.
• To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines there will be no liens on the property.

Whew, somewhat complicated, isn’t it? Well, we’re dealing with a government program! But, FHA loans can be a good deal for you, and I’m available to guide you throughout the entire process. Just give me a call today!