Many people are very focused on interest rates these days and are wondering where they are headed next and how it may affect their mortgage payment. Interest rates have been historically low for a very long time, and people are starting to fear that they may increase and have an outsized impact on the cost of purchasing a home.
You can see a chart of the long-term history of interest-rates by clicking here. This chart shows that we are definitely near the bottom of where interest-rates have been over a long period of time. On the other hand, if interest-rates start to go up does it have as much of an impact as people think? Read the rest of this entry »
Tags: interest rates, mortgage payment, rates rising
Posted in credit, housing values, interest rates, Loan Process, mortgage, tax breaks | No Comments »
Deciding on how much mortgage you can afford is very complicated with several things to consider. Before you plan to spend the maximum amount you’ve been approved for, consider what you feel comfortable with. And before you treat your home purchase like a zero-sum game consider spending a sufficient amount to buy enough house to keep you happy for a longer period of time, due to the hefty transaction costs of real estate. Read the rest of this entry »
Tags: getting pre-approved, income, mortgage, pre-approval, pre-qualification, qualifying
Posted in credit, housing values, mortgage | No Comments »
When sellers set an asking price for their home I always imagine big dollar signs in their eyes. Most human beings suffer from wishful thinking and confirmation bias. But how should you price your home: high, low or right at market value? If sellers are underpricing they may hope to sell faster, or hope for a bidding war. Overpricing a home may allow you to get more for your house than what it’s really worth with luck that one buyer loves your home. Underpricing or overpricing your home can be a gamble. And the best thing you can do is come to terms with how much your house is really worth. Read the rest of this entry »
Tags: appraisal, choosing a realtor, home sales, home sellers, home staging, housing market, mortgage appraisals, real estate, realtor, selling price
Posted in Appraisal, housing values, Sales | Comments Off on Is It Better to Overprice or Underprice Your Home For Sale?
Realtors often think appraisers are not the most accurate assessors of real estate values. And appraisers often think realtors know less than they do. Maybe they are both right? I have had appraisers admit that a good realtor will likely know more than an appraiser about the value of a certain home. This is because most appraisers are appraising a wider geographic area a than a realtor may specialize in. Many appraisers cover a multi-state area, whereas a lot of realtors specialize not only in one state, but also in one city or town. So, it is hard to expect Read the rest of this entry »
Tags: appraisal, appraisal challenges, home values
Posted in Appraisal, housing values | No Comments »
I commonly hear realtors and homeowners use price per square foot calculations when assessing the value of a home. But using price per square foot as a shortcut to determining the value of a home is flawed. Price per square foot is not a reliable indicator of market value because when you only calculate the relationship between size and sales price you are ignoring all the other variables of a home that a potential home buyer analyzes like view, lot size, level of finish, location, and much more. Read the rest of this entry »
Tags: house prices
Posted in housing values | No Comments »
Who doesn’t want something cheaper? But who doesn’t want it faster, better and delivered on time as well? It is life’s constant struggle. We work very hard for our money and want to be judicious in spending it. We want the $5 hamburger for $4. We want the $35,000 car for $32,000. We want the $500,000 house for $485,000, and if the same house were priced at $485,000 we’d arbitrarily want it for $470,000. We always want a deal! But are we just creating our own problems? And should we be shopping for the best price or the best value? There is a big difference between price and value when it comes to mortgages. Read the rest of this entry »
Tags: house prices, mortgage shopping
Posted in housing values, Loan Process | No Comments »
We all love pictures, graphics and colors. As the saying goes, a picture speaks a thousand words. We would rather watch a video blog than read six paragraphs of text. Visual should be emphasized over text detail. When we shop for a car, we spend most of our time looking at the pictures first, then think about and research details, engines, performance, etc. If we like the way a car looks and we feel we look good in a car, that is far more than half the battle in selling the car. It is the same thing with Read the rest of this entry »
Tags: first impressions, online real estate search, real estate listings
Posted in housing values | No Comments »
Markets react. Markets fill holes. Markets never stand still. Markets change. Markets go up and down. Knowing all of this, it makes you wonder what sellers are waiting for! Where are all the sellers? All we hear about in most real estate markets is the lack of inventory. We hear that sellers are still stung by the real estate correction and are waiting “a bit longer” for values to recover before selling. I would advise people that are thinking of selling to repeat the above statements about the market a few dozens times, and then call a realtor and list their property for sale. Read the rest of this entry »
Tags: home sellers, real estate inventory
Posted in housing values | No Comments »
I recently read an article in the Wall Street Journal about the best day to list your home for sale. It turns out it is Friday. To be specific, the article said that Friday is the one day of the week that beats any other in terms of capturing online viewers, but it went on to say Tuesdays are best for scheduling and taking home tours. I am guessing that as with anything in real estate, this is market specific, and even house specific. Read the rest of this entry »
Tags: home listing, list your home for sale, selling your home
Posted in housing values, Realtors | 2 Comments »
Most people that own a home make some improvements. Some home improvements are modest and some are substantial. It is important to get some enjoyment from whatever improvements you make, but it is also important to remember to watch the economics of your projects. Many people don’t consider the return on investment when they take on a renovation project, and some people make poor assumptions about how much they will get back from their cost to remodel. Read the rest of this entry »
Tags: appraisal, Home Improvements, Home Value, Renovations
Posted in Appraisal, housing values | No Comments »
