March 24, 2014 11:24 am
We have often suggested that potential home buyers consider rising interest rates when thinking about the true cost of a home. The longer they wait the higher the mortgage payment if rates continue to increase as is projected by Fannie Mae
, Freddie Mac
, the National Association of Realtors
and the Mortgage Bankers Association
In its latest issue, Money Magazine
warned their readership of the same ramification if they put off the purchase of a home. Here is what they said:
"BE MINDFUL OF RATES. The average interest rate on a 30-year fixed loan is predicted to climb from the current 4.4% to 5.3% by the 2015 spring buying season, according to Freddie Mac. For a $250,000 loan, that means that a borrower who waits would pay $136 more per month and an additional $49,090 in interest over the life of the loan. Will you need a big loan? Better to act soon before rates tick up."
March 20, 2014 10:54 am
“Real estate sales have changed more in the last year than the prior 100 years. I needed a real estate agent in 1997. I didn’t have the password to the MLS.”
- Daniel Pink, bestselling author of the book Drive
at a real estate conference February 2014
There was a time when both buyers and sellers were forced to connect with a real estate agent in order to get even the basic information required to make a good decision regarding their housing needs. That time has passed.
Buyers can now go on-line to find the homes that are for sale. Sellers can go on-line to find out which homes in their neighborhood sold over the last six months and at what price.
Consumers are no longer looking for just information from a real estate agent. They require professional advice based on the information that is available. Guy Kawasaki, Silicon Valley author, speaker, investor and business advisor explained it best:
March 19, 2014 10:48 am
Isn’t it cool when all the actions you have been taking begin to align and the dots connect in precisely the right way, leading you to the exact results you have been seeking?
I agree…it’s a wonderful feeling. And it’s how I felt when I read the KCM eGuide last week titled the Unlocking the Secrets of Real Estate’s New Market Reality
One of the things that has been on my mind lately is just how to get the word out to our members and students about the new market reality we are faced with in the real estate industry. With the ever increasing information available online to both buyers and sellers alike, how do we as real estate professionals stay relevant and necessary in the eyes of the consumer?
I have always been an avid learner and some would even call me a perpetual student or education junkie, especially now since I have gone back for a doctorate. But it’s not just the formal classroom studies that I love — it’s all learning. Actually that’s not true — what excites me most is learning those things which can then be applied directly to the achievement of my goals, both personal and professional.
A case for becoming a perpetual student of real estate
March 18, 2014 10:42 am
Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.
1. The Most Serious Buyers Are Out Now
Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. These buyers are ready
to buy…and are in the market right now!
2. There Is Less Competition Now
Housing supply always grows from the spring through the early summer. The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.
3. The Process Will Be Quicker