Ann Wood

Realtor, over 30 years

Real Estate News

How To Prevent Buyer’s Remorse

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spring_real_estate_marketIt’s always important to pick an agent that is experienced & familiar with the area you are buying so that they can fully educate a client on a home and the town it is in. Realtor Magazine talks more about how to make sure you are prepared and can help prevent buyer’s remorse:

It’s not uncommon for home owners to suffer from buyer’s remorse after purchasing a house. Sometimes they discover a thing or two about the home they wish they had considered more carefully before buying — and sometimes they regret the whole transaction. Either way, it’s the real estate agent who usually takes the brunt of the blame. After all, you’re the one who found the house for the buyer.

Buyer’s remorse is “that awful feeling when you figure out something is wrong with the house or you could have done something better — or there’s a better house out there,” says Rhonda Duffy, broker-owner of Duffy Realty of Atlanta. “Agents need to take this seriously. Not everyone can buy a house, and for those who can, you should be rewarded with the luxury of having certainty and clarity — not confusion — in the home purchase.”

Duffy learned that important lesson from her neighbor, who didn’t find out about his home’s history until after he already moved in. At a neighborhood barbecue, someone told him that the previous owner committed suicide in the house. Though Duffy wasn’t his agent, the neighbor approached her with the newly discovered information, saying he now felt uneasy about his purchase.

“I never want one of my clients to feel that way,” Duffy says. “He could have found this out beforehand and made a choice of whether he was comfortable knowing that information. But to find out something after the fact, that clouds his entire purchase.”

Research shows that many agents will have these types of situations on their hands with clients. In a national survey of 2,000 home buyers conducted by HSH.com, 80 percent say they regret at least one thing about their home. The most common regrets included inadequate closet space, too few bathrooms, undesirable neighbors, and subpar schools. In a separate Redfin study of 2,000 buyers, one in four say they wouldn’t buy their home again if given the chance.

Duffy says she wants her buyers to have peace of mind about their purchase long into the future. Here are four ways she accomplishes this.

To read the full article, please click here.

Buying A Home Is More Affordable Than Prices May Seem

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According to an article in Realtor Magazine, home prices have reached new highs, however, it is still affordable to buy a home with the interest rates still being down:

Home prices may be reaching new highs lately, but buying a home is still significantly more affordable than it was during the 2006 housing bubble, according to a new report by RealtyTrac. Low interest rates have largely contributed to keeping homes more affordable in recent months, according to the analysis.

Monthly payments on an average-priced home – including property taxes, home insurance, private mortgage insurance, and assuming a 3 percent down payment – required 36.5 percent of the average wage nationwide in the first quarter. That’s slightly down from 37.4 percent in the first quarter a year ago, but it marks the most affordable level since the first quarter of 2013 – when affordability was 33.5 percent, according to RealtyTrac’s analysis.

To read more, click here.

Will Mortgage Rates Rise Higher Than Ever Before?

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According to an article by Realtor Magazine, the Federal Reserve has given plenty of signals that the low mortgage rates will soon come to an end. So is now the time to buy?

“Mortgage rates are already inching up, ever-so-slightly. From January to June, the 30-year fixed-rate mortgage climbed from 3.7 percent to 4.2 percent. Mortgage rates recently have been hovering around 4 percent.

In this latest era of super-low mortgage rates, what’s normal? A 6 percent interest rate is “normal,” says Jonathan Smoke, realtor.com®’s chief economist. He says mortgage rates likely won’t hit that point in the next two years, however.

“We will likely see less than a 100 basis point increase over the next two years, which would bring us to around 5.5 percent in 2017,” he says.

Read the entire article here.

Source: “Just How High Might Mortgage Rates Go?” realtor.com® (Aug. 14, 2015)

Learn More About The New Closing Process

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Have questions on the upcoming changes to the closing process? Learn about the new rules and forms that are slated to take effect October 3 in a live webcast on Thursday, July 16, at 2 p.m., Eastern Time.

Nationally recognized closing process expert Phil Schulman of K&L Gates and NAR Senior Counsel Finley Maxson will walk you through the new Loan Estimate and Closing Disclosure forms and the new time frames that you must meet to comply with the requirements set by the Consumer Financial Protection Bureau.

The speakers will discuss and answer questions on the 1) the new Loan Estimate, 2) fees, 3) referrals, 4) the new Closing Disclosure, and 5) timing issues.

The one-hour presentation will be hosted by Stephen Gasque, NAR’s director of broadcasting and host of NAR’s twice-monthly video news program, The Voice for Real Estate.

Date: Thursday, July 16, 2015
Time: 2 p.m., Eastern Time
Duration: 1 hour
Presenters: Phil Schulman, K&L Gates, Washington, and Finley Maxson, NAR senior counsel, Chicago
Host: Stephen Gasque, NAR Director of Broadcasting
Link to event on July 16 at 2 p.m., ET:
http://livestream.com/accounts/11815096/closingprocess

From The Mar Report

Is Owning A Home Part Of Your 5 Year Plan?

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new_listing_westwood_maAn article in Realtor Magazine discusses the shift in home ownership and how now is the time to buy if it is a part of your future plans:

The majority of consumers are upbeat when it comes to the housing market. Low interest rates and a strengthening economy have prompted this consumer optimism, according to Berkshire Hathaway HomeServices’ Homeowner Sentiment Survey, a survey of about 2,000 consumers’ attitudes toward home ownership.

94 percent of home owners and potential buyers surveyed say that home ownership is a critical piece to their long-term financial planning.

“Home owners today seem to have a longer term perspective for their properties,” says Gino Blefari, HSF Affiliates CEO. “Owners are telling us a home is more than its price tag, and they’re placing more value in a home’s intrinsic qualities of wealth building, safety, satisfaction, and a place to raise a family.”

However, there are some differences among age groups when it comes to home value perceptions. Baby boomers and Gen Xers, tend to embrace home ownership first as a “smart, long-term investment.” On the other hand, millennials are “thinking in the now” about real estate and tend to place the highest priority on the “ease of a purchase decision,” including the ability to close quickly on the property, secure financing, and afford monthly payments.

Millennials’ say they see one of the major benefits to home ownership is having a place they’re proud to show family and friends. They also value a community with great schools and seek locations that encourage healthier lifestyles. 61 percent of millennials say it’s also important to live in a neighborhood with a variety of trendy dining and retail options.

“As millennials become a larger part of the home-buying market, their preferences become better defined and seemingly more traditional,” says Stephen Phillips, president of Berkshire Hathaway HomeServices. “We have always believed there is more similarity than difference among home-buying groups, and this new data seems to support that view.”

Overall, the majority of current home owners – 88 percent – say it’s important to update or renovate their home over time to enhance its long-term value. Many home owners seek home improvements that are energy efficient and eco-friendly systems and materials. More than 60 percent of current home owners said they favor “green” home improvements – even over kitchen, bath, and flooring projects.

The millennial generation is the most enthusiastic about home improvement projects. Sixty-one percent surveyed say they wan ta home they can upgrade to their preferences.

To read the full article, please click here.

Source: “Consumers Show Shift in Home Ownership” DAILY REAL ESTATE NEWS | FRIDAY, APRIL 24, 2015

 

 

A Thaw In The Housing Market Is On It’s Way

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spring_real_estate_market

According to an article in Realtor Magazine, home sales will pick up as the year progresses:

Housing activity has been bumpy so far. The National Association of REALTORS® reported this week that existing-home sales tumbled to a nine-month low in January.

But economists polled by Reuters are optimistic that a turnaround will occur due to a strengthening job market that is expected to offset some of that drag.

“We expect the housing market to improve this year,” David Nice, an economist at Mesirow Financial in Chicago, told Reuters. “It is only a matter of time until the improved jobs market has a positive effect on the housing market. We are betting that first-time buyers return this year.”

The economy has added more than a million jobs over the past three months. The improvements in the labor market are expected to prompt the Federal Reserve to start raising interest rates later this year, an event that likely will push up mortgage rates too.

The 30-year fixed-rate mortgage currently is averaging 3.76 percent, according to Freddie Mac. Reuters poll of economists predicts a lower jump than originally anticipated in mortgage rates, with the 30-year fixed-rate mortgage expected to average 4 percent this year and rise to a 4.58 percent average in 2016. (Originally, economists had projected a 4.55 percent average rate this year and 5.20 percent next year.)

Also, economists point to a housing turnaround due to the government’s easing of credit that will likely prompt more first-time home buyers to make a move this year.

What’s more, “soon, there the improvement in equity positions will be large enough that owners who couldn’t sell but wanted to will be able to list their units,” Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pa., told Reuters. “That would increase supply and make house shopping easier.”

To read the full article, please click here.