5 Reasons to Buy A Home Now Instead of Spring

5 Reasons to Buy A Home Now Instead of Spring

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

1. Supply Is Shrinking
With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

2. Price Increases Are on the Horizon
Prices are projected to appreciate by over 25% from now to 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

3. Owning a Home Helps Create Family Wealth
Whether you are rent or you own the home you are leaving in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

4. Interest Rates Are Projected to Rise
The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the end of 2014. That is an increase of almost one full point over current rates.

5. Buy Low, Sell High
We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

Tis the Season to Buy a House

Christie Farris

With the arrival of the holiday season who has time to go looking for a house? For that reason there aren't many buyers this time of year. But there should be, because that's when you may find some incredible deals. It's understandable that owner-occupants aren't eager to buy a house at this time of year. There are too many other distractions and besides, who wants to move in January? But for investors, it's an entirely different matter. Joy Bender, a real estate agent in San Diego, Calif., says investors who sit on the sidelines in December may be passing up a profitable opportunity.

Motivated sellers

"A seller who is actively showing their property during the holidays is more motivated to sell than a seller merely testing the highs of the market," Bender said.
For example, in her market Bender says there are some builders offering unusual discounts on current phases of move in ready models in an effort to clear inventory off the books. Some sellers may be motivated for tax reasons.
“Sellers may be motivated to strategically close escrow by the end of 2013 for tax advantageous planning within regards to capital gains,” Bender said. “Buyers can also anticipate possible tax deductions for 2013 with pre-paid mortgage interest along with origination and discount points paid on closing costs.”

Buyers regaining some leverage

In some markets in the country in recent months sellers have been in the driver's seat. Inventories have been low and buying interest high. For that reason an investor seeking to buy a house well below market has often been frustrated lately. But Bender says that's changing.
"We've seen a significant shift in overall demand eliminating some of the multiple offer situations we have been struggling with all year," she said. "There has been a dramatic decrease in buyer activity especially in the high end and vacation home market."
Recent data backs that up. Sales of existing homes declined in September and October, according to the National Association of Realtors (NAR). Only a further tightening of inventories prevented overall prices from falling. The median price rose 12% year-over-year, dampening investor enthusiasm.

Cash talks

But Bender thinks the end of 2013 might provide investors with an opportunity, especially if they can make a cash offer. A seller pressured by a deadline may be inclined to accept a lower offer if it is cash, since there is little chance the deal will fall through.
The biggest downside to end-of-the-year home buying is the limited inventory. It may be hard to find a home that meets your needs. But that's only the case if you plan to live in the house.
An investor is looking at it in a completely different way. They either plan to flip it or convert it to rental property. The color of the tile in the bathroom isn't a deal-breaker.

New Happy Client! Congratulations on your new home!

 

Do you know what your home is worth?

Do you know what your home is worth?
While there are Websites that will provide you with an estimated value of your home, the only way to truly determine your home’s value in today’s market is to monitor the home sales that are actually occurring in your neighborhood right now.
As your local real estate expert, I have the systems in place to constantly monitor what’s happening in our local market. I also have the inside scoop on the homes that are currently for sale or recently sold in your neighborhood, including, days on the market and sales price, and how these homes compare in value to yours! Remember, your neighbors might tell you what they’re house is listed for, but they might not share the most important number – what they actually SOLD it for!
Contact me for a listing of the most recent real estate activity in your neighborhood. Much like tracking the value of your 401K or your stock portfolio, in today’s market, it’s more critical than ever that you stay aware of the value of your home – likely one of your biggest financial investments!


Sincerely,
Christie Farris
christiefarris@gmail.com

5 REASONS TO SELL BEFORE SPRING - CHRISTIE FARRIS, BATON ROUGE REALTOR

5 REASONS TO SELL BEFORE SPRING

Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now.

Only Serious Buyers Are Out

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or online doing their holiday shopping.

There Is Far Less Competition

Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale.

The Process Will Be Quicker

One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.

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 over 25% from now to 2018. 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 historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.

It's Time to Move On with Your Life

Look at the reason you decided to sell in the first place and decide 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?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. 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.

Cost of Waiting to Purchase a Home

Last month, the Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about one full percentage over the next twelve months. We also know that many experts are calling for home prices to also increase over the next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 even if home prices don’t increase: