C21 Lady of the Lakes - Livingston County Elite Recreational Real Estate Agent

Wednesday, March 29, 2017

Outlook For Spring 2017 Real Estate Market

The 2016 real estate market was quiet a success. Interest rates were lower than they had been since the 50’s. Home values exceeded expectations and an end was in site to the housing recession. With the federal housing administration offering grants and low interest rate loans there was a monumental increase in first time homebuyers. With this in mind there are some Real Estate trends to consider as we enter the spring real estate season.
Increased Home Prices
As with 2016, home prices will continue to rise however it will happen at a more gradual pace. With the buying demand already starting 2017 at a rate that is above 2016 it isn’t a surprise that there will be an increase in the median home price. Many industry experts expect the increase in home prices to be upwards of five percent.
Increase in Inventory
Interest rates are currently low. In order to take advantage of these lower interest rates more and more renters are looking into purchasing homes right now. The same is true of many current homeowners looking to upgrade. The one disadvantage to this for first time home buyers is that the inventory of homes within the low to average price range is low and moving quickly when it does hit the market. The inventory of homes is expected to increase in 2017 but is still at a historical low.
Volatile Mortgage Rates
Mortgage rates remain low even with the slight increase that occurred following the 2016 election. This was only the second time that we have seen a rate increase in housing interest rates in a decade. It is important to note that the Federal Reserve, who controls the rise and decline of interest rates, has stated that they expect interest rates to increase at least three more times this year. Realize however that these rates even with a few small increases will still be less than we have previously seen.
Availability to Credit Will Improve
With a new president in office there is talk of rolling back many of the financial regulations that were put into place post-crisis in the Dodd-Frank Act. This means that the regulations on lending the banks are currently under would be removed and less strict rules would take their place. It is also speculated that the new president would make moves to return mortgage companies that are government-controlled to the private sector.
The spring real estate season is getting started in just a few weeks. If you are thinking of buying a home or selling your home now is the time to contact a local real estate agent for assistance.
Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.

Tuesday, February 28, 2017

Is Spring The Best Time To Sell or Buy a Home

Popular opinion would have you thinking that the only time your home will sell is during the spring. Although spring is a super exciting time in real estate, it isn’t necessarily the only time you should consider selling your home. The spring season is known to bring out buyers and sellers alike. With the onslaught of buyers and sellers it is important to note that there is more competition. Note that more sellers’ means more homes to choose from; more buyers mean more competition to get top dollar for available inventory.

In some situations it makes sense to wait until the spring but it isn’t necessarily the only time to consider buying or selling a home. There are many reasons to consider listing your home right now. Consider the following:

Work Relocations: The first quarter of the year is known for people relocating for work. Changes are made to adjust for work load, retirements, and such. Sellers are looking to move their homes quickly while promptly looking to purchase a home.
Fewer Homes for Sale: Selling in the winter when there are fewer homes for sale can work in your favor. A smaller inventory of homes means that your home will receive a lot more attention.
More Agent Attention: Fewer homes that agents are marketing allow the agent to spend more time on your listing.
Fewer Showings: When your home is listed outside of the spring season the number of showings your home will have is sure to be less. The quality of home buyers is increased during slower times in real estate therefore the quantity of people that will be less. The benefit to you, less work in keeping your home up to date and clean.
Quicker Home Sales: Home buyers that are out searching for their dream home in the winter are motivated. There is no wasting time going in and out of home after home. It is cold, buyers are inspired to shop quickly and get into a new home and out of the cold.

If you are thinking about selling your home there is no need to wait until April. Now is the perfect time to meet with a real estate agent to start discussing what needs to be done to get your home listed. This will give you ample time to hit the market before the spring rush and hopefully get you out of your home and into a new one just in time to enjoy the nicer weather.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.

Tuesday, January 31, 2017

2017 Predictions In Real Estate

Like it or not the environment that we currently live in is one that thrives around the infusion of technology including the real estate market. 2017 is predicted to be a dominating year for real estate. It is expected that homes will spend less time on the market now into the future than any other time in history. With advancements in technology surrounding the real estate market all aspects, from finding a home to applying for a mortgage are sure to take less time than ever before.

2017 Real Estate Predictions

The speed at which houses sell will increase, the housing market itself will continue to grow but the rate at which this occurs may slow a bit. The reason for this is due to the decline in affordable houses available to those families living within the median income level. It is forecasted that the availability of affordable homes will continue to decline.
Real estate professionals and contractors alike believe that the growth of new construction homes will begin to slow into 2017. There are a number of reasons for this including a shortage of skilled construction workers. This will ultimately affect the number of affordable starter homes thus leading to an increase in the price first-time home buyers can expect to pay for a new home.
With a new president elect set to take over, the economic climate is set to change. Mortgage rates will see a slight hike but should not climb much over four percent. We should see economic growth and continued inflation which will help to keep rates low throughout 2017.
Home loans will become more accessible. Mortgages requiring as little as one to three percent down will be introduced within a variety of financial institutions and Fannie Mae and Freddie Mac will increase the size of the loans that they will back.
Growth in real estate in larger cities will take a back seat to the growth seen in second-tier cities. Commuting into larger metropolises while living in outlying locations will lead a trend in new construction in suburbs.

The concept of moving now-a-days is much different from the past. It used to be that homeowners would own one or two homes in their lifetimes. It was important to stay put, build roots and create memories. Today, with real estate technology easing the transaction more and more people are moving to upgraded homes instead of upgrading the home they live in.

Prepare Now For The Spring Real Estate Rush

2017 is the year many people have decided to become homeowners. Right now is the perfect time to start preparing for your real estate endeavor. Before the spring real estate season gets on its way it is time to take the necessary steps to make your house hunt successful.

Credit Report: In order to purchase a house most first time home buyers will need to take out a mortgage. In order to qualify for a mortgage you will need a decent credit score. Now is the time to check out your credit report. Home loan lenders use your credit score to set mortgage terms and interest rates. It is crucial that an accurate report of your financial history is received when lenders are looking at your most recent credit report. If there are errors this gives you time to fix the issues before you need to apply for your first home loan.

Budget: This is a crucial step in buying your first home. Many times lenders will pre-approve you for a home loan that is way over what you will feel comfortable spending each month. Create a budget that accurately represents the amount of money you have coming in and going out each month. The rule of thumb is to not spend more than thirty percent of your take home income on a mortgage payment. This monthly payment should include both taxes and insurance. An online calculator can help while you are going over your budget. Online mortgage calculators can help you to determine how much house you can actually afford.

Down payment: Having a down payment is important. Hopefully you have been stocking money aside to put towards the purchase of your first home for a while now. If you have been saving for a down payment in a number of places now is the time to consolidate those funds. Put these funds into one savings account at least three months prior to buying your first home. This is beneficial as your mortgage lender will not need to track down where all of the money originated from.

Needs/Wants: Once you have determined how much you have to put down as a down payment and know how much you can afford in a home it is important to create a master list of needs and wants out of a home. Some features in a home are negotiable while others aren’t. It is important to lay out what you need out of a home. Consider the following things: location, schools, commute time, nearby amenities and housing features such as the number of bedrooms, bathrooms, and more. Would you rather have a home that is in need of some work or one that is move in ready? Having a list in place will make it much easier for both you and your real estate agent narrow down the selection of homes to view as you begin your search.

Thursday, December 29, 2016

Insight Into The 2017 Real Estate Market

Will you be shopping for a new home in 2017? Below is some insight into the real estate market and what home buyers can expect as they begin their hunt for either a new home or their first home.

The real estate market has been affected due to the election that recently occurred. Interest rates on home loans and refinancing have risen point fifty percent over the past two months. Even with this increase the housing market on a whole remains strong. It is important to consider that the market could see a rise in real estate markets under this new leadership. The prospect of higher interest rates and increased real estate costs may create a sense of urgency amongst buyers going into the spring season.

The traditional timing of first time buyers is changing. People are no longer waiting until they are married to look into homeownership. More single people are choosing to purchase homes than ever before. The 2017 real estate market will see more and more home buyers that are single verse real estate trends of the past in which typically home buyers were married couples.

Those seeking investment properties most often have the same goal, price appreciation. If the goal for 2017 is to acquire additional properties as investments look where home values are set to increase the most. For almost all areas larger price increases can be seen on property within larger metropolitan areas. Not only property values increase either. The amount of rent that can be charged is significantly higher than the rural area surrounding the metropolis.

It is critical that first time home buyers concern themselves with more than just the initial down payment. The costs of obtaining a mortgage are additional to the actual down payment on a home. A home costing $150,000 could require a twenty percent down payment and two percent closing costs. Thus the amount due at closing would be $30,000 for the down payment and upwards of $3000 for the closing fees.

It is also important for first time home buyers to have a nest egg of funds put aside for unexpected emergencies that can arise with homeownership. Inspections are not a hundred percent failure proof. Sometimes there are things that aren’t noticed until you are living in the home. Maybe the water backs up when you are running the dishwasher and washing machine. This may not be something caught during the inspection process. The nature of the issue is not something that is common for home inspectors to look into during the home inspection process. These small issues can add to the financial pinch of a new mortgage and should be planned for ahead of time. The last thing new homeowners want to do is to put debt on to credit cards. A cash emergency fund is the best way to handle the unforeseen.

Tuesday, November 29, 2016

Benefits of Buying Verse Renting

There comes a time when buying a home becomes more practical then continuing to rent. Right now the market is at a point where renting is actually more expensive monthly than buying. Renting has a few benefits that buying doesn’t but instead that if you are interested in buying a home now is a great time to enter the market. Here are five questions to ask yourself when narrowing down your homeownership goals:

What type of home situation best meets your needs?

There are a variety of residential home styles to choose from when you are looking to purchase. Consider all of your options including: traditional style single family homes, duplexes, townhouses, condominiums, co-op’s and multi-family buildings. There are pros and cons of each and depending on your homeownership goals at the moment will help establish the style of home you should focus on finding.

What are must have features you are looking to have in a home?

When buying a home there are certain features that are must-haves, some that would be nice and some that are downright unnecessary but would be a dream. Create your own list and make sure that it offers a bit of flexibility. You deserve a home that offers you exactly what you want!

What type of mortgages do you qualify for?

Before you hire a realtor meet with a mortgage broker to determine how much you can pre-qualify for and what types of mortgage options are available for your current situation. Knowing how much a lender will lend will give you a starting point on the price range of homes you should be focusing in on. Before you begin searching for a mortgage or home get your personal finances in order. Make sure your credit is in order, you have a solid history of paying your bills on time, substantial savings and a maximum debt to income ratio of no more than thirty six to forty three percent.

What amount can you afford to take on monthly?

Another thing to consider after finding out how much a lender will lend is how much you actually feel comfortable paying each month. Consider the amount of the mortgage, interest, insurance along with utilities and other monthly bills you have. You will want to be comfortable with the amount that you will be spending each month. The last thing you want is to be house poor without any money to spare each month.

What does your savings account look like?

In order to purchase a home it is important to have a down payment, closing costs and money for the incidentals that will arise after you move in. Take time to build up a substantial savings before you get serious about looking to find a home of your dreams.

Helpful Tips For Buying Your First Home

Purchasing your first home comes with many trials and tribulations. In the first year after closing there are many valuable lessons to be learned. Here are some things to think about as you begin the process of going from renting to buying.

Think About The Future: When buying your first home it is easy to get caught up. At the time you can’t imagine that you will ever need to sell this home you are about to start building your future in. This however can’t be further than the truth. The truth is the first home you purchase will most likely not be the last one you purchase. No matter where you are at or what stage you are at it is important that you take into consideration how difficult it will be to eventually sell when you are ready for the next step.

Checklist: When you are purchasing your first home, second or third, you will find it is quiet an emotional process. It is quite possible to overlook things when your emotions start to take over. Before starting your adventure into buying your first home create a checklist of must-haves, nice-to-haves and other essentials. Print the list and take a copy with you to each and every house you visit. Also bring with you a camera. If you fall in love with a home but with your checklist and photos show that the house doesn’t have any of the must-haves then at least it will make you rethink the purchase?

Budget For Housing Expenses: When considering what you can don’t just consider the principal, interest, taxes and insurance. You must take into account the amount you will spend on utilities, home improvement upgrades and costs to commute. Can you afford the house, the extra expenses while living the life style you have become accustomed to?

Look Into The Neighborhood: Check out the neighborhood. Is it a neighborhood that is full of children and growing families? Do you enjoy the chitter-chatter of kids or will it drive you crazy? Is the neighborhood full of older adults whose families have grown? Did you plan on having kids? Will the lifestyle you are considering for your future fit within the existing neighborhood?

Look Beyond The Staging: We all think we are smart enough that we will not fall for the tricks that are used in staging however the psychology of staging works. Homes look better when they are occupied. When you are truly looking to say yes to a home it is important to remove the staging setup from your mind and consider your belongings in the layout of the home. Just because lights are sitting on the nightstands doesn’t mean that there are plugs there to go with it. Staging can play games with your emotions.