by Shawn Boday | Aug 9, 2023 | Housing Market, Real Estate, Real Estate Tips, Shawn Boday
As we dive into the third quarter of 2023, it’s a perfect moment to reflect on the housing market’s journey so far this year and project what lies ahead. The real estate landscape has been marked by some notable shifts, and understanding these trends can help both homebuyers and sellers make informed decisions in the coming months.
The second quarter of the year saw a significant rise in mortgage interest rates. Starting at 6.32 percent in early April, the average 30-year mortgage loan rate climbed to 6.84 percent by late June. Alongside this, the national median home price rose from $375,400 in March to $396,100 by May. These changes in rates and prices have set the stage for an intriguing Q3.
Experts are cautiously optimistic about the upcoming quarter. Despite traditionally buoyant summer months for real estate, Q2’s elevated rates led to a somewhat subdued environment. The ongoing challenge remains a severe shortage of housing inventory, with new listings for sale hovering around 25-30 percent below last year’s levels. This scarcity of homes, coupled with higher mortgage rates, suggests that the third quarter of 2023 might not witness robust home-buying activity.
Mortgage interest rates, a pivotal factor, are projected to remain within the 6.4 to 6.7 percent range for a 30-year fixed mortgage, according to financial analysts. While recent data suggests that inflation may ease in the coming months, leading to a potential drop in mortgage rates, the predictions vary. Some experts believe rates could even dip below 6.5 percent, while others expect them to hover around 6.75 percent initially and eventually decline toward 6.0 percent by September.
The lack of housing inventory will continue to exert pressure on home prices throughout Q3. Buyers may encounter fierce competition, with a higher percentage of homes selling above the asking price. While home price growth is predicted to average around 4 percent this year, median home prices are anticipated to slightly decrease, settling around $385,000 in Q3.
For potential homebuyers, the current market presents affordability challenges. High home prices combined with elevated mortgage rates mean careful consideration is essential before making a purchase. Experts advise potential buyers to ensure job stability and steady earnings before committing to a home transaction.
On the flip side, sellers continue to have the upper hand in many markets due to tight inventory levels. However, sellers should weigh the benefits of selling against the potential challenge of finding a new home in a market with elevated rates. The decision to sell should take into account the balance between current low mortgage rates and potentially higher ones in the future.
The real estate market in the third quarter of 2023 promises a mix of challenges and opportunities. While the housing shortage and increased mortgage rates pose hurdles, the potential for stabilized or slightly reduced home prices may provide some respite for both buyers and sellers. As you navigate this complex landscape, remember that careful consideration and expert guidance are essential to make the right decisions for your unique circumstances.
by Shawn Boday | Aug 9, 2023 | Real Estate, Real Estate Tips, Shawn Boday
Selling your home can be a daunting process, especially if you’re not familiar with the real estate world. With this guide, we aim to simplify the journey and provide you with valuable tips to ensure a successful sale while avoiding common pitfalls.
Set the Right Price
Overpricing your home is a common mistake. Instead, research comparable properties in your area and set a competitive asking price. Studies show that properly priced homes sell faster and often for more than overpriced ones.
Create a Welcoming Atmosphere
During showings, give potential buyers space to explore without your presence. Allow them to envision themselves in the house without feeling observed. Remember, first impressions matter, so declutter, stage, and enhance curb appeal to make your home look its best.
Emotion vs. Objectivity
While you may have invested time and money into upgrades, buyers assess your home based on its current condition and comparable properties. An experienced agent can help you detach emotionally and set a reasonable price.
Professional Photography
As the majority of buyers start their search online, high-quality photos are essential. Hiring a professional photographer will showcase your home in its best light and attract more potential buyers.
Choose a Skilled Agent
Partnering with an experienced real estate professional is crucial. They can guide you through the process, help with pricing strategies, marketing, negotiation, and handle paperwork efficiently.
Feedback is Valuable
Be open to buyer and agent feedback. If a consistent issue arises, like lighting or color choices, consider making adjustments. Adapting to feedback shows your commitment to meeting buyers’ preferences.
Data-Driven Pricing
Study the market and comparable home prices in your area. Price your home realistically, considering market trends and recent sales. Slightly underpricing can attract more buyers and lead to quicker sales.
Don’t DIY Marketing
Utilize a variety of marketing channels, including online listings, to reach a wider audience. A strong online presence increases your home’s visibility and generates more interest.
Selling your home requires a balanced approach between emotional attachment and practical decision-making. By setting the right price, presenting a well-maintained home, using professional resources, and listening to expert advice, you can navigate the process smoothly. Remember, the real estate market is data-driven, so staying informed and adaptable will increase your chances of a successful and profitable sale.
by Shawn Boday | Apr 28, 2023 | Business, Real Estate, Real Estate Tips, Shawn Boday
Real estate taxes are a significant expense for property owners, and understanding how they work can help you manage your finances effectively. Learn more about the basics of real estate taxes and provide some tips on how to minimize your tax burden.
What are real estate taxes?
Real estate taxes are a type of property tax that is levied on the value of a property. The tax is assessed by the local government, such as the county or city, and is used to fund public services such as schools, roads, and public safety.
How are real estate taxes calculated?
Real estate taxes are typically calculated as a percentage of the assessed value of the property. The assessed value is determined by the local government based on a number of factors, including the size, location, and condition of the property.
In some cases, the assessed value may not reflect the true market value of the property, which can lead to discrepancies in the amount of tax owed. Property owners can challenge the assessed value through an appeals process, but it can be a lengthy and complicated process.
How can you minimize your real estate tax burden?
There are several strategies that property owners can use to minimize their real estate tax burden. Here are some tips to consider:
- Check your property’s assessed value: Make sure that your property’s assessed value is accurate. If you believe that your property is overvalued, you may be able to appeal the assessment and have it reduced.
- Take advantage of tax exemptions: There may be tax exemptions available for certain types of properties, such as those used for charitable purposes or owned by veterans or senior citizens. Check with your local government to see if you qualify.
- Make energy-efficient upgrades: Some local governments offer tax incentives for property owners who make energy-efficient upgrades to their homes. These upgrades can include installing solar panels, replacing windows or doors, or upgrading insulation.
- Consider appealing your property’s classification: Properties are classified based on their use, such as residential, commercial, or agricultural. If you believe that your property is classified incorrectly, you may be able to appeal and have it reclassified to a lower tax bracket.
- Monitor your property tax bill: Keep an eye on your property tax bill and make sure that you are not being overcharged. If you notice any discrepancies, contact your local tax office and ask for an explanation.
Real estate taxes are an important aspect of property ownership, and understanding how they work can help you manage your finances effectively. By following these tips, you can minimize your tax burden and keep more of your money.
by Shawn Boday | Mar 31, 2023 | Uncategorized
Selling your home can be a stressful and challenging process. While there are many factors that can impact your success, there are also common mistakes that sellers make that can hurt their chances of selling their home quickly and for a good price. In this blog post, we’ll explore the top 5 mistakes to avoid when selling your home.
Overpricing Your Home
One of the most common mistakes that sellers make is overpricing their home. While it can be tempting to list your home at a high price in hopes of getting a better offer, an overpriced home can turn off potential buyers and lead to a prolonged listing time. It’s important to research comparable homes in your area and work with a real estate agent to determine a fair and competitive listing price for your home.
Neglecting Home Repairs and Improvements
Another mistake that sellers make is neglecting to make necessary repairs and improvements to their home before listing it for sale. While it may be tempting to save money by skipping repairs, a well-maintained home is more appealing to buyers and can increase your home’s value. It’s important to make any necessary repairs and consider minor upgrades, such as fresh paint or new fixtures, to make your home more attractive to potential buyers.
Not Staging Your Home
Home staging is the process of preparing your home for sale by arranging furniture, adding decor, and creating a welcoming atmosphere. It can be a mistake not to stage your home as it can make your home appear more attractive to potential buyers and help them envision themselves living there. Consider working with a professional home stager or following online resources to create an inviting atmosphere that can help your home stand out to buyers.
Limiting Showings
Limiting the number of showings or only allowing showings at certain times can also be a mistake when selling your home. This can make it difficult for potential buyers to view your home and may result in missed opportunities for offers. It’s important to be flexible with your showing schedule and make your home available for viewings as often as possible.
Ignoring Your Home’s Curb Appeal
Finally, ignoring your home’s curb appeal can be a mistake when selling your home. The exterior of your home is the first thing potential buyers will see, so it’s important to make a good impression. This can include landscaping, exterior repairs, and fresh paint on the front door or shutters. Don’t forget to pay attention to small details like mailbox and house numbers to make your home look well-maintained and welcoming.
In summary, selling your home can be a complex process, but avoiding these common mistakes can help ensure a successful sale. By pricing your home competitively, making necessary repairs and improvements, staging your home, being flexible with showings, and paying attention to curb appeal, you can maximize your chances of selling your home quickly and for a good price.
by Shawn Boday | Mar 31, 2023 | Uncategorized
Understanding Real Estate Market Trends: A Comprehensive Guide
Real estate market trends are a crucial component of buying or selling a property. Understanding current and past trends can help you make informed decisions when it comes to purchasing or selling a property. In this comprehensive guide, we’ll explore the basics of real estate market trends and how you can use this information to your advantage.
What are Real Estate Market Trends?
Real estate market trends refer to the patterns and changes in the real estate market over time. These trends can include changes in home values, sales volume, inventory, interest rates, and more. Understanding these trends can help you determine if it’s a buyer’s or seller’s market, anticipate future changes, and make informed decisions about when to buy or sell.
How to Identify Real Estate Market Trends?
To identify real estate market trends, you need to collect and analyze data from various sources. This can include looking at local housing market reports, analyzing real estate market data online, and working with a real estate agent who has experience in your local market. Paying attention to factors such as housing inventory, sales volume, and changes in median home prices can help you identify current market trends.
Why are Real Estate Market Trends Important?
Real estate market trends are important because they can help you make informed decisions about buying or selling a property. For example, if it’s a seller’s market, you may be able to sell your property for a higher price. Alternatively, if it’s a buyer’s market, you may be able to find better deals on properties. Understanding real estate market trends can also help you anticipate changes in the market, such as fluctuations in interest rates, and make strategic decisions about when to buy or sell.
How to Use Real Estate Market Trends?
Once you’ve identified real estate market trends, you can use this information to your advantage. For example, if it’s a seller’s market, you may want to price your home higher or wait to sell until the market becomes more favorable. Alternatively, if it’s a buyer’s market, you may want to negotiate for a lower price or look for properties that have been on the market for a while. Additionally, understanding real estate market trends can help you make long-term decisions about your real estate investments, such as whether to buy a property for rental income or to flip.
In conclusion, understanding real estate market trends is essential for anyone looking to buy or sell a property. By identifying and analyzing market trends, you can make informed decisions about pricing, timing, and strategy, and maximize your chances of success in the real estate market. Whether you’re a first-time homebuyer or a seasoned real estate investor, paying attention to real estate market trends can help you achieve your goals and make the most of your real estate investments.
by Shawn Boday | Mar 31, 2023 | Uncategorized
Buying a fixer-upper home can be a great investment opportunity for some buyers, while others may prefer to steer clear. It’s important to consider the pros and cons before making a decision to ensure that it’s the right investment for you. In this blog post, we’ll explore the advantages and disadvantages of buying a fixer-upper home to help you make an informed decision.
Pros:
Lower Purchase Price: One of the biggest advantages of buying a fixer-upper home is the lower purchase price compared to move-in ready homes. This can make it an attractive investment opportunity for buyers who are looking to get into the real estate market without breaking the bank.
Customization: Buying a fixer-upper home gives you the opportunity to customize the home to your liking. You can choose the materials, finishes, and layout that best fit your needs and preferences.
Potential for Higher Resale Value: If you are willing to put in the time and effort to renovate a fixer-upper home, you may be able to increase the home’s resale value. This can be a great way to build equity and potentially make a profit down the line.
Cons:
Hidden Costs: Fixer-upper homes often come with hidden costs that can quickly add up. These costs can include structural issues, water damage, or electrical problems that may not be immediately visible. It’s important to have a thorough home inspection and budget for unexpected expenses.
Time-Consuming: Renovating a fixer-upper home can be a time-consuming process. It can take months or even years to complete renovations, which may not be ideal for buyers who are looking to move in quickly.
Risky Investment: Buying a fixer-upper home is a risky investment. There is no guarantee that you will be able to sell the home for a higher resale value, and the cost of renovations may end up being more than you anticipated.
Is it Worth the Investment?
Whether or not buying a fixer-upper home is worth the investment depends on your individual circumstances and goals. If you are handy, have a lot of time on your hands, and are willing to take on the risk, then a fixer-upper home may be a great investment opportunity for you. However, if you are looking for a move-in ready home or are not prepared for the potential hidden costs and time commitment, then a fixer-upper home may not be the best investment for you.
by Shawn Boday | Mar 9, 2023 | Uncategorized
When it comes to buying a home, negotiation is a critical part of the process. It can mean the difference between getting the home of your dreams and settling for something less. But for many people, negotiation can be intimidating and overwhelming, especially if you’re a first-time homebuyer.
Fortunately, negotiating the best price on a home doesn’t have to be difficult. With the right approach and a little bit of knowledge, you can successfully navigate the real estate market and get the best deal possible.
One of the most important things you can do is to understand the market. This means doing your research, learning about the local real estate market, and understanding what factors can influence the value of a property. By doing your homework, you can gain a better understanding of what a property is worth, which can help you negotiate a better deal.
Another key element of real estate negotiation is understanding the motivations of the other party. Whether you’re working with a seller’s agent or negotiating directly with the seller, it’s important to understand what their goals and priorities are. For example, if the seller is motivated to sell quickly, you may be able to negotiate a lower price. Alternatively, if the seller is attached to the property and isn’t in a hurry to sell, they may be less willing to negotiate.
It’s also essential to have a clear understanding of your own goals and priorities when it comes to buying a home. This means determining your budget, deciding what features and amenities are most important to you, and understanding what concessions you’re willing to make in order to secure the property.
Finally, it’s important to stay flexible and open to compromise. Negotiation is a give-and-take process, and it’s rare for either party to get everything they want. By staying flexible and being willing to make concessions, you can increase your chances of reaching a mutually beneficial agreement.
In summary, negotiating the best price on a home doesn’t have to be intimidating. By understanding the market, the motivations of the other party, your own goals and priorities, and staying flexible, you can successfully navigate the negotiation process and secure the home of your dreams.
by Shawn Boday | Mar 9, 2023 | Uncategorized
Selling a home can be a stressful and time-consuming process, but there are several strategies you can use to help you sell your home quickly. The following tips can help you prepare your home for sale, market it effectively, and negotiate with potential buyers to get the best deal possible.
Declutter and stage your home to make it look more appealing to potential buyers. This includes removing personal items, organizing closets and cabinets, and rearranging furniture to create a more open and inviting space.
Price your home competitively based on the local market and the condition of your home. Overpriced homes are less likely to sell quickly, so it’s important to be realistic about what your home is worth.
Hire a professional photographer to take high-quality photos of your home for your listing. Good photos can help attract more potential buyers and generate more interest in your property.
Use social media and online listings to market your home to a wider audience. This includes creating a virtual tour of your home, posting on social media, and using online listing services to reach potential buyers.
Host open houses and invite real estate agents to view your home. This can help generate more interest in your property and may even result in a quicker sale.
Be flexible with showings and make sure your home is always clean and ready to show. Potential buyers may want to view your home at different times, so it’s important to be accommodating and prepared.
Consider making upgrades or repairs to your home to make it more attractive to buyers. This could include repainting walls, replacing outdated fixtures, or updating appliances.
Be prepared to negotiate with potential buyers to get the best deal possible. This includes being open to offers and willing to compromise on certain terms, such as the closing date or repairs that need to be made.
Work with an experienced real estate agent who can help guide you through the selling process and provide valuable insights and advice.
Finally, be patient and stay positive. Selling a home can be a stressful experience, but with the right strategies and mindset, you can sell your home quickly and move on to the next chapter of your life.
Remember, there’s no one-size-fits-all approach to selling a home quickly. These tips can help you get started, but it’s important to tailor your approach to your specific circumstances and market conditions. With the right strategies and a little bit of luck, you can sell your home quickly and move on to your next adventure.
by Shawn Boday | Mar 9, 2023 | Uncategorized
Buying a home is an exciting milestone, but navigating the home loan process can be overwhelming. Avoiding common home loan mistakes can help ensure a smooth and successful home-buying journey. Here are some tips for avoiding common mistakes and securing the right loan for your needs.
Choose the right loan
Not all home loans are created equal. Before applying for a home loan, research and compare loan options to find the one that’s right for your unique financial situation. This can include fixed-rate mortgages, adjustable-rate mortgages, government-insured loans, and more.
Check your credit score
Your credit score plays a significant role in determining your eligibility for a home loan. Before applying, check your credit score and address any issues that could impact your ability to secure a loan. This can include paying down debt, disputing errors on your credit report, and making timely payments.
Shop around for lenders
Don’t settle for the first lender you come across. Shop around and compare offers from multiple lenders to find the best rates and terms. This can help you save money over the life of your loan.
Don’t borrow too much
It’s easy to get carried away and borrow more than you can realistically afford. Before applying for a home loan, take a realistic look at your budget and make sure you’re not overextending yourself. This can help you avoid financial stress down the road.
Factor in all costs
Homeownership comes with many hidden costs, including closing costs, fees, and maintenance expenses. Make sure you’re factoring in all of these costs when budgeting for your home loan. This can help you avoid surprises and ensure you’re prepared for the true cost of homeownership.
Consider fixed-rate mortgages
While adjustable-rate mortgages may seem appealing, they can come with significant risks. Consider opting for a fixed-rate mortgage, which provides stable monthly payments and can help you avoid financial surprises.
By following these tips and avoiding common home loan mistakes, you can help ensure a smooth and successful home-buying journey. Remember to choose the right loan, check your credit score, shop around for lenders, avoid borrowing too much, factor in all costs, and consider fixed-rate mortgages. With careful planning and consideration, you can find the right home loan for your needs and secure your dream home.
by Shawn Boday | Feb 7, 2023 | Real Estate, Shawn Boday
If you’re looking for a great deal in a tough real estate market, buying a foreclosed home may be the best option. While the main benefit of purchasing a foreclosure property is the price, the process is more complex than with a traditional real estate listing. It’s important to know what to look for and how to buy a foreclosed home if you want to get the best deal. Here are five tips to keep in mind when buying a foreclosed home.
It is often difficult to access these properties before they become available for sale.
Many people think there must be a secret way to get access to foreclosed properties before they go on the market, but the reality is that most of these properties are owned by large financial institutions that have a lot of other assets. These companies tend to outsource the entire foreclosure process to a management company, which includes hiring a local Realtor to evaluate the property before it is listed. Local banks may be able to provide information on who’s handling the foreclosed property, but this is the exception rather than the rule. So this means it can be difficult to access these properties before they become available to the public.
Make sure that you are actually getting a good deal.
When it comes to buying a foreclosure, it’s important to ensure that you’re actually getting a good deal. Contrary to popular belief, foreclosures are not always the best buy. In fact, most foreclosures are listed on the open market, meaning that the visibility and demand for them are the same as you would expect with other properties. The price of foreclosures is set at the highest possible value in order to meet the needs of the bank and the listing agent. Therefore, it’s important to remember that foreclosures are not being offered at discounted prices.
Conduct a full property inspection, including all utilities.
Before you purchase a foreclosure property, you should get a full inspection done with the utilities turned on. Make sure the house has been winterized, and you can access the furnace if necessary. Be aware that you may need to purchase special access to get the utilities going, which can be costly and time-consuming.
Prepare for the worst if purchasing a home as-is.
If you’re buying a foreclosure in “as-is” condition, you should prepare for the worst. Although no inspection is required, it’s a good idea to have a contractor evaluate the home and estimate the cost of any repairs. An inspection can identify major issues that the bank isn’t aware of, so it’s worth considering. This will help you decide whether you want to proceed with the purchase or walk away from the deal. To make sure you have room to cover repairs and other costs, look for a foreclosure home within the lower end of your budget.
Get a preapproval letter.
If you’re thinking about making an offer on a foreclosure, it’s important to have a mortgage preapproval letter in hand. This letter will outline information about the amount you are able to borrow based on your credit score and income. With foreclosures, the best deals often go quickly, and buyers need to have their financing worked out beforehand. Real estate investors who pay cash are usually the ones to take advantage of these deals.
