Tag: refinance

Housing Shortage Causing Bidding Wars and Spike in New Construction.

BIDDING WAR

If there is one downside to a booming housing market, it’s that there are not enough homes on the market to satisfy the amount of buyers. You can refer to this as a seller’s market. Not enough homes on the market can mean buyers paying more for a home. This is not a bad thing, and in fact, can help home values. As a seller, take advantage of it. Quit listening to the “water cooler talk” at work when everyone thinks that they’re an expert at everything. There is a reason they are doing the job that they are doing and not selling homes, because they don’t have the slightest clue of what they are talking about! Check out this article from Realtor.com that gives you advice on how to win a bidding war.

So let’s get back at it. In the real estate market you will see peaks and valleys. It is the nature of the business. If you are considering selling your home, now is the time to get your home on the market. Demand is high and supply is low, this is bare basic economics and it doesn’t take rocket science to figure out that you will profit more than you would in  a buyer’s market. Well what happens if you are a buyer? You want a great deal, right? You want that amazing home that your family fell in love with, right? Then make an offer. Hire one of the areas Realtors (I can refer you to one if you don’t have one) and let them negotiate a great deal. In this business time is of the essence, so if you find something and you like it, then make an offer on the home. One of the common things that I hear buyers say often is that “I’m going to sleep on it and make an offer tomorrow.” Here’s the catch to that, someone else is thinking the same thing and by the time you are ready to submit an offer, the house is S-O-L-D and then they have regrets for not submitting an offer earlier.

Home builders are more than happy right now. What happens when people can’t find their perfect home? They build it. I was driving through Northwest Indiana the past few weeks and I have noticed a TON of new homes being constructed. It’s a good thing, but with the improved housing market comes higher price per square foot. You’ll be paying more for that home as well. Now, don’t get me wrong, building a new home isn’t a bad thing. You just have to be prepared to wait while it is being constructed. I have seen homes go up in as little as 90 days, then I have seen homes take a year. It all depends on what you are getting done, what kind of upgrades you’re getting and also the weather has to cooperate as well.

Why am I telling you this? I know what you’re thinking, “he is just trying to get us to buy a home quicker, or wants the quick sale.” That couldn’t be further from the truth. I have a list of buyers right now waiting to find their next home. Unfortunately, some of them have already made these same mistakes that I mentioned above and have missed out on homes that they fell in love with. I don’t want this to happen to you. Learn from the mistakes of others. So here is what I recommend:

  1. Get your ducks in a row (get pre-approved and get all of your financial documents together) Check out my blog about this here.
  2. Work with a Realtor and figure out where you want to buy and what is a comfortable price range.
  3. Once you find a home that you love, DON’T WAIT! Talk with your Realtor and submit a fair offer on the home.
  4. Get your offer accepted
  5. Work with the best mortgage guy in the business (me, of course!) and let’s turn that homeownership dream into a reality.

So now that you have some great tips about this market. I am going to ask you a favor. I need you to subscribe to my blog. I know I said I was going to do these weekly, but work has been SLAMMED. I owe it to you all to make this blog happen weekly, so my commitment to you is to have a new blog up by Wednesday of every week. In the mean time, go and download my mobile app. It has a link to my blog, a home search, mortgage calculators and so much more. You can get it by clicking here. I designed this app for my business partners and for my clients. Any feedback that you have, leave it below. Have any blog suggestions? Leave me a comment below. I will give you content overload, just let me know if you want me to touch on anything specific.

Thanks for reading and  the lookout next week!

-Ed. S

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Simple ways to get your home paid off quicker

Having the opportunity to purchase a home is a true experience, there are a ton of emotions that you will go through during the process, and when you get the keys to your new home it is like you’ve reached the finish line. Congratulations you have become a new homeowner, but now let’s move on to the next part; getting your home paid off as quick as possible.

More than likely a mortgage is going to be one of the biggest financial decisions that you make throughout your life and in most cases tends to be the most expensive. There are ways that you can help eliminate the amount of interest that you pay over the life of your loan, so let’s cover a few.

It is highly recommended that you try and make at least 1 extra principal and interest payment every year. The amount of interest paid on the mortgage goes based off of the principal balance, so naturally when you make 1 extra payment towards your principal balance every year it will reduce the amount interest you will pay over the mortgage.

Another tip that is recommended is rounding up on your mortgage payment. So for example, if your mortgage is $1217, if you can afford to do so try and pay $1300. The extra $83 dollars a month equals an extra $996 towards your principal every year, and reduces the amount of interest that you pay.

Set up bi-weekly mortgage payments, by doing so you make 1/2 of what your payment is 26 times a year which equals 13 full mortgage payments, and adds up to the 1 extra payment a year, similar to what was mentioned above.

Ultimately the choice is yours on if you can swing the extra payments, but remember by doing so you can cut the amount of interest you pay and own your home years sooner than your loan term.

Feel free to leave me feedback and if you have any questions, leave them below and I will be glad to answer them for you. Enjoy your weekend and thanks for viewing my blog!

Great Article! Rates should not prevent the upward trend of the housing market. Housing is still affordable and rates are still low compared to the past 5 years. If anything this should spark potential buyers to look into purchasing now instead of waiting to see if rates go down or up.