What's Happening in the Real Estate Market?

Welcome back to my video blog. Today I have some special guests with to tell us about what's happening in the market with interest rates, qualifying for mortgages, etc.

Interest rates started off at 3.5% at the beginning of this year. They then dipped down to 3.25%. We are ending 2013 with rates at about 4.5%. We expect rates to increase, though, in 2014. Why?

The Federal Reserve is expected to ease off its bond purchasing - also know as quantitative easing. These purchases help artificially lower interest rates so that more consumers could buy homes. As the economy continues to improve, however, the the chairman of the Federal Reserve announced the tapering off of the bond purchasing.

As rates continue to increase, the purchasing power for buyers decreases. A simple .5% increase can dramatically effect how much you qualify for in a mortgage.

Qualifying Mortgage or QM are also a new thing for 2014. Soon it may be harder for buyers to qualify for mortgages. Why is this?

There are new rules that focus on the ability to repay. One of those test will be the 3% cap. This means that the fees cannot exceed 3% of the mortgage value.

If you have any questions about what's happening in the market and what to expect from interest rates and loans, please give me a call. Thanks for watching!

Happy Holidays!

It’s hardly believable that we are at the cusp of yet another year – and it’s almost 2014! With a fantastic year behind us, we look ahead toward a great future in the coming months. I can’t tell you how much of a pleasure it has been serving our community members with the expert advice, one-on-one care and guidance with real estate endeavors in our communities.

Here’s a warm, resounding “Thank you!” to all our current and past clients. We believe you are more than just clients; you’re our friends and neighbors. We cherish that special relationship we have with each and every one of you.

Whether you have engaged in the purchase of a new home, sold a property or just needed advice and counsel on your real estate transactions – we have enjoyed being a part of the journey with you.

Once again, thank you for trusting us with one of the most important aspects of your life and we wish you a warm, wonderful holiday season – with many happy times to come in the New Year and beyond!

Appraisal Value vs. Market Value

Welcome back to my video blog. Today I wanted to talk about the difference between market value and appraisal value. Lately, we have encountered quite a few situations where we receive a market value offer on a home, then the appraisal value comes in low.

Does this mean that the seller should automatically reduce their price? Not necessarily.

Appraisers work off of past sold properties. We are in an appreciating market. When an appraiser looks at the square footage of your home, the number of bathrooms, your basement, and everything else that works to build your appraisal value, they compare it to homes that sold as much as 90 days ago. When the market appreciates rapidly, appraisals come in low.

It's important for a buyer to understand that you will need to sometimes put cash down in addition to their down payment in today's market.

If you are selling your home and you need someone to protect your equity, give me a call. Let me help you get the best price on your home.