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 | Feb 7, 2023 | Real Estate, Shawn Boday
Are you looking to expand your real estate knowledge? Podcasts are an excellent source of information on investing, home improvement, and the latest housing news. With so many real estate podcasts available, it can be a challenge finding ones that are worth your time. To make it easier, here are 10 of the top real estate podcasts that span a range of topics related to property and housing.
The Indicator from Planet Money
For those looking to gain a better grasp on business and economics and work in quickly and easily understandable terms, check out The Indicator from Planet Money, a 10-minute podcast that explores “big ideas” related to the economy. Topics include home sales, moving trends, the commercial market, and renting, with each episode featuring data releases or findings and how they affect consumers and the economy. Perfect for buyers, sellers, homeowners, and investors.
BiggerPockets: The Real Estate Investing Podcast
The BiggerPockets Real Estate Podcast is a popular weekly podcast that features informal and fun interviews with a variety of investors and entrepreneurs. Guests range from well-known names like Matthew McConaughey and Ken Corsini from HGTV’s “Flip or Flop Atlanta” to industry players who share their experiences and advice. Hosted by Rob Abasolo and David Greene, this podcast is perfect for beginner and intermediate investors.
Real Estate Today
Real Estate Today is a radio program and podcast hosted by Stephen Gasque, the broadcasting and multimedia communications director for the National Association of Realtors. With hundreds of episodes, the program covers topics such as purchasing a second home, home buying for millennials, maximum selling secrets, creating a smart home, and first-time buying. This is a great resource for buyers, sellers, homeowners, and investors.
Homebuyer Radio
This podcast is the perfect resource for homebuyers, both first-timers and repeat buyers. Hosted by Dan Moralez, a mortgage expert and loan officer in Michigan, it covers topics such as credit repair, getting preapproved for a loan, mortgage comparison shopping, and tips for self-employed homebuyers. With over 150 episodes, it offers a wealth of insider secrets and helpful advice to make the home buying process easier.
Martini Mortgage Podcast
The Martini Mortgage Podcast, hosted by lending expert Kevin Martini from Raleigh, North Carolina, offers listeners a wealth of knowledge and advice on the ins and outs of getting a mortgage loan and purchasing a home. Over 150 episodes, listeners can learn about topics like winning bidding wars, improving credit, tax credits for first-time buyers, avoiding forbearance, and home affordability. Ideal for sellers and buyers, this podcast is a great resource to help navigate the homebuying process.
The Money Pit Home Improvement Podcast
This podcast, which is also a nationally syndicated radio program, focuses on home improvement and repair. Hosted by experts Leslie Segrete and Tom Kraeutler, the podcast covers a wide range of topics related to homeowners and DIYers. Popular episodes from the over 1,500 available include four popular home improvement hacks, stress-free closet organization, germ-free faucets, high-return home improvements, and the best kitchen lighting. It is perfect for homeowners planning to remodel.
The Remote Real Estate Investor
The Remote Real Estate Investor podcast is the perfect resource for remote and out-of-state investors interested in real estate. Hosts Emil Shour, Tom Schneider, and Michael Albaum explore a range of topics, from finding the hottest markets to analyzing properties from afar and avoiding common pitfalls. Perfect for those looking to invest in real estate without actually living near the property.
Making Money in Multifamily
If you are interested in investing in multifamily properties, you should check out the Making Money in Multifamily podcast. Host Dave Morgia is a real estate investor and interviews industry experts to discuss the practices and principles for successful investing in this field. He also dives into deals that didn’t meet expectations and why they failed. It’s perfect for those who are just starting out or experienced in multifamily investing.
Best Real Estate Investing Advice Ever
Joe Fairless hosts this popular podcast that has had over 3,000 episodes, offering daily real estate investing advice. His journey began with low-cost single-family homes, and now his portfolio is worth billions. This podcast provides insight into commercial real estate investing and helps listeners navigate through uncertain markets. It’s a great resource for both novice and experienced investors.
Real Estate News for Investors
This podcast is ideal for beginner and experienced real estate investors, as well as news buffs. Host Kathy Fettke, co-CEO of the Real Wealth Network and author of “Retire Rich With Rentals,” reviews the latest reports from national organizations and market data analysis to inform listeners about building and holding a real estate investment portfolio. Topics range from the best real estate markets to investing in property values and tax law, as well as news and information for real estate flippers.
by Shawn Boday | Sep 20, 2022 | Real Estate, Shawn Boday
One way to leverage your home’s value is by refinancing. You might want to refinance for several reasons, such as getting cash from your home and lowering your monthly payment. This article will give you an understanding of how refinancing works.
When you refinance, you’re essentially trading in your old mortgage for a newer one with a different interest rate and a new principal. As a result, you’ll have one loan and one monthly payment.
People who are looking to refinance typically have multiple reasons. One of these is to get a better interest rate and lower monthly payments. Refinancing can also be used to remove a person from the mortgage, which usually happens in the case of divorce.
Unlike the home buying process, the process for refinancing is relatively simple. It can take around 30 to 45 days to complete. Although it can be hard to predict how long it will take, the typical timeline is around 30 to 45 days.
Applying
The first step is to review the various types of refinancing you’re interested in. Once you have decided on a preferred option, your lender will check your assets, credit score, income, and debt to see if you can meet the requirements to refinance.
If you’re married, in a community property state, or self-employed, your lender may also need your spouse’s documents. If you’re not on the loan, you might be asked to provide more income documentation.
If you’re considering a new lender, you don’t have to refinance with the one you have. You can choose to pay off your old loan with the new one. Before you start the process, make sure that you compare the various rates and services offered by each lender.
Locking In Your Interest Rate
After you’re approved, your lender will allow you to lock in your interest rate. This will allow you to keep the same rate throughout the life of the loan.
The rate lock period can vary depending on various factors, such as your loan type and location. You can also get a better rate by taking a shorter-term lock because the lender doesn’t have to hedge against market movements for a long time. However, if your loan doesn’t close before the end of the lock period, you might be required to extend it.
If you’re not sure about your best interest rate, you might be given the option to let your lender float your rate. This can lower your rate, but it can also lead to a higher one. If you’re still happy with the current rate, then it’s a good idea to lock in your rate.
Underwriting
Your lender will then start the underwriting process, which is when they will check all of your financial information. They’ll make sure that everything that you’ve submitted is accurate.
Once they’ve checked all of the details of your property, they’ll then start the appraisal process, which is when they will determine the value of your home. This step is very important because it determines the various options available to you.
The value of your home can affect the amount of money you can get from a refinance. For instance, if you’re planning on taking out a cash out, the value of your home can determine how much money you can get. If you’re trying to reduce your mortgage payment, the value of your home can also affect whether or not you have enough equity to qualify for a loan.
Home Appraisal
Before starting the process of refinancing, you must have an appraisal. This process is very important because it determines the various options available to you. After the appraisal, your lender will give you an estimate of the value of your home.
Before the appraisal, you must make sure that your home is in its best condition. Doing so will allow the appraiser to thoroughly inspect it and give you an estimate of its value. You can also list all of the upgrades that you’ve made to the property since you bought it.
If the value of your home is higher than the amount you want to refinance, then the underwriting process is complete. After the appraisal, your lender will contact you to let you know about the details of the closing.
If the estimate comes back low, you can either reduce the amount of money you’re planning on taking out through a refinance or cancel the application. You can also do a cash-in refinance, a type of loan involving bringing cash to the table.
Closing On Your New Loan
Once the home appraisal and the underwriting process are complete, it’s time to close the deal. After the closing, your lender will then send you a document known as a closing disclosure. This will provide you with the details of the loan.
Refinancing transactions are typically faster than buying a home. During the closing, the people handling the transaction are usually accompanied by a representative from the title company or the lender.
After the closing is complete, you’ll sign the documents and go through the details of the loan. This is when you’ll pay the closing costs that aren’t included in the loan. If the lender owes you money, you’ll receive the funds following the closing.
You’re now locked into a new loan. If something should happen to you during the course of the loan, then you have the option of rescission. This can be done anytime before the three-day grace period expires.
by ireilly | Jul 28, 2022 | Business, Real Estate, Real Estate Tips, Shawn Boday
When you take out a home loan, the bank will require a home inspection to protect their investment. Even if you plan on paying cash for your home, you should still schedule an inspection for any property you intend to buy. While this won’t catch everything that might be wrong with the house, the Inspector will pinpoint problems that may be of major concern.
What Does a Home Inspection Cover?
The home inspection will determine the condition of the major components of the home. This starts with the Inspector visually examining the condition of the roof, foundation, and structure. They will also look at the plumbing, electrical, and HVAC systems. As the Inspector takes a closer look inside the home, they will look at the attic insulation, watch for signs of water damage and mold growth, and check for pest infestations.
What Won’t the Inspector Do?
There are some things your home inspection won’t cover. In general, you shouldn’t expect the Inspector to look for minor damage that can be easily or cheaply repaired. In addition, the Inspector won’t remove or damage parts of the interior. This means they won’t look behind walls, remove electrical panels, or inspect the insides of chimneys or plumbing pipes.
What Will the Inspection Report Tell You?
You might be wondering what will happen if the inspection does uncover a problem. Anything the Inspector turns up will be recorded in the final report. When they do find a problem, they will note whether or not the issue will need to be repaired right away. They will also mention whether the problem concerns a safety issue or a major defect. If it’s a minor defect, the report will point that out as well. There may be other issues that don’t pose a problem right away, but the report will recommend keeping an eye on the issue. For example, the Inspector might advise you to budget for a roof replacement even though you don’t need it right away.
A home inspection is a necessary part of the home buying process. It will help ensure you’re aware of the true condition of the house, which will help you make a better-informed decision. Otherwise, you may buy a home that turns out to be an unexpected money pit.