Categories
Blog

WILL HOME PRICES DROP? IS NOW A GOOD TIME TO BUY?

There has been a lot of talk about home prices and mortgages lately. Mortgage rates are increasing, and some experts believe that home prices will drop. While it’s true that mortgage rates are increasing, the jury is still out if home prices will fall significantly. Based on economics and historical data alone, home prices or anything for that matter cannot continue to rise at the rate they have been over the past couple years. However, it is unlikely that prices will drop in any significant way anytime soon. This isn’t to say that individual markets on a local level won’t see a big price drop, but generally speaking a big decrease is not likely.

What about homebuyers? Is now a good time to purchase a home or should you wait it out? Don’t let the higher interest rates deter you from becoming a homeowner. Mortgage interest is one of the few interests that is still tax deductible, which helps decrease taxes owed from income. While we may not see 3% mortgage rates anytime soon, the current rates floating between 5% and 6% are relatively normal historically. Demand for rentals has increased drastically and when demand increases, you can almost guarantee that rental rates will rise. According to an article published by CNBC, rent prices for single family homes hit a national average of $2,495 per month, which is a 13.4% increase compared to the same period in 2021. Depending on the price range of the home you purchase and interest rate, more than likely your house payment will be equal to or less than that. You may as well be investing in your own asset rather than someone else’s.

Bottom line, don’t ignore your dream of homeownership. A few tips to make sure you are making the best decisions for yourself:

  1. Get pre-approved with a trusted mortgage lender to know what price range you can afford and works best with your budget.
  2. Make a list of your must-haves and preferred neighborhoods.
  3. Work with a reputable real estate agent. They know the market and can help you find the perfect home. They will also assist in the negotiations and contract execution once you find a home.

When looking for that perfect home in Missouri or Kansas, contact a knowledgeable real estate professional from Stutesman Action Realty today, 833.286.8400.

Cover Photo by Ussama Azam on Unsplash

Categories
Blog

WHAT IS THE DIFFERENCE BETWEEN A BROKER PRICE OPINION AND AN APPRAISAL?

A common question real estate agents are asked is, “What is the difference between a broker price opinion or property valuation and an appraisal?”

RED HOUSE Photo by Zac Gudakov on Unsplash

A broker price opinion or property valuation is typically completed by a real estate agent or broker; they do not have to be a licensed real estate appraiser. However, don’t underestimate the real estate broker as they are typically professionally qualified in their market to give you a professional opinion of a property’s value based on recent market activity. To determine an estimated value for your property, they will find comparable properties in the market area and base their opinion of value on sales prices and sales dates. This is how a real estate agent determines a listing price for a property. They are basing their opinion on the actions of buyers and sellers in the market.

AERIAL Photo by Blake Wheeler on Unsplash

A real estate appraisal is along the same premise but a bit more complex and detailed. It must be conducted by a state licensed real estate appraiser and adhere to the Uniform Standards of Professional Appraisal Practiceor better known as USPAP. Appraisers can use one or all three approaches to value: Sales Comparison, Income, and Cost. Most residential properties will utilize the sales comparison approach. This approach is much like the broker price opinion as it relies on the recent sales price of comparable properties in the market. However, an appraiser offers a detailed analysis of the property and comparables. Adjustments will be made to the comparables for dissimilarities with the property being appraised (often referred to as the subject). They then use the adjusted sales prices of the comparables to determine a concluded value for the subject. In order to get a mortgage, a lender will usually require a full appraisal.

 KEYS IN HAND Photo by Maria Ziegler on Unsplash

Both methods serve their purpose in the market. The broker price opinion helps sellers determine a realistic sales price for their property and the appraisal reaffirms that the purchase price is within a market acceptable range.

Contact Stutesman Action Realty, 833.286.8400, today for your broker price opinion and get your property listed and sold.

Categories
Blog

Avoid These Things After You Apply For A Mortgage

You’ve found your dream home and have applied for the mortgage, don’t let up on the gas just yet. There are a few things to keep in mind while waiting for the loan to close. After applying for your home loan, you need to avoid doing the following:

  • Although it’s exciting making plans to decorate your new home, avoid making large purchases on credit. Lenders have pre-approved you based on your debt-to-income ratio at the time of application; however, they will pull another credit report and if your debt-to-income ratio has changed you could be disqualified. Large purchases include furniture, appliances, cars, boats, you get the idea.
  • Don’t get any new credit. In addition to avoiding large purchases, avoid getting new credit cards even if you are opting for a card with lower interest rates. It’s never a good idea to open new credit.
  • Most financial experts, advise against co-signing on loans anytime, but it is particularly important to avoid when applying for a home loan. Although you may be able to prove that you aren’t the one making the payments, you are still liable if the payments aren’t being made. Co-signing also increases your debt-to-income ratio.
  • Having less available credit seems like it would be best for your credit score; however, it can have the opposite effect. A major component of your credit score is your length and depth of credit history, not just your payment history. Closing accounts has a negative impact on your credit score.
  • When in doubt, always call your lender first. No need to put unnecessary stress on yourself; you want your home purchase to go as smoothly as possible.

If you need help finding your dream home, contact Stutesman’s Action Realty, 833.286.8400.

Categories
Blog

How to Win The Bidding Game In Today’s Competitive Market

real estate bids

You’ve made the decision to buy a home and have put in a few offers, but keep getting outbid. Although this can be frustrating, don’t give up. You can compete in today’s competitive market even if you don’t have the highest bid. For example, we found a house that had only been on the market for one day, but already had offers. The real estate agent told us they were taking bids until noon the following day. We made a full price offer but did not have any contingencies nor inspection requirements. The other bids were above asking price, but they had contingencies and inspection requirements, so the seller went with our offer. When making your offer don’t get too hung up on thinking you need to make one above list price because it’s not always about the sale price.

financing

Tips to win the bidding war without going above budget:

  1. If you are financing, the first thing you need to do is get a pre-approval from a mortgage lender. Sellers want to know that you can actually purchase the home and makes your offer stand out. This also benefits you in determining your budget when making an offer.
  2. Focus on homes at the lower end of your budget. By doing so, gives you a bit of wiggle room when making an offer if you do have to go slightly above the ask price.
  3. In today’s market, it is important to make your “best and final” offer in the beginning. These days, there isn’t much negotiating going on. If it isn’t your best and final, you probably won’t get the house.
  4. If you do find yourself in a situation where you need to offer above list price, consult with your real estate agent and let him/her help you determine a good offer price. Your agent will be able to pull list and sale prices for comparable properties that have sold within the past six or more months. He or she can determine the typical amount above list price, i.e., $5,000, $10,000, etc. that have occurred. You certainly don’t want to pay more than you should and end up with little to no equity in the house because you paid more than the market can bear.
offer on listing

Get your financing in place, work with a knowledgeable real estate agent, do your homework and you will get that home! For all your real estate needs, contact  Stutesman Action Realty today!

Categories
Blog

Take a Few Steps Before Putting Your Home on the Market

listing home

Thinking of getting in on the hot seller’s market? Who could blame you? There is certainly more demand than supply right now. To get top dollar for your home, take these simple steps before listing:

cleaning
  • Give your house a deep cleaning. First impressions are everything, so don’t let dirty floors or dusty surfaces overshadow all the great things about your home. Foul smells are a major turn off to buyers. You may want to consider hiring a professional.
declutter
  • Declutter and organize. This means closets, cabinets, pantries, countertops, etc. It’s hard for buyers to focus on the actual home when it is full of clutter and overflowing closets.
repair
  • If you’ve been putting off fixing that leaky faucet, squeaky doors, or running toilets, now is the time to do all those repairs and maintenance that you’ve been putting off. Buyers will think the home hasn’t been well maintained.
gray living room
Photo Credit: Sherwin Williams
  • A fresh coat of neutral paint on the walls will make your home appear bigger, brighter and more welcoming. Especially get rid of any bright walls. Favorite neutral paints are whites, light grays, and light beiges. Benjamin Moore’s Chantilly Lace is a favorite true white and Sherwin Williams’ Repose Gray is a great gray wall color choice.
front porch
  • Now that you’ve gotten the inside in tip-top shape, spruce up the exterior by making any necessary repairs. Make sure the grass is cut, the weeds are pulled, and the landscaping is trimmed.
real estate
  • Hire a professional real estate agent to list your home. By enlisting a professional, your home will get the maximum exposure by being listed on the multi-listing service where thousands of agents and potential buyers will see it.

Stutesman Action Realty can help you list and sell your home. One of the professional real estate agents will offer you additional tips to maximize your home’s selling potential and will be there throughout the purchase negotiations and closing. Call today, 833.286.8400.

Categories
Blog

First Time Home Buying

The real estate market continues to be at the top of financial news with headlines ranging from supply shortages and rising interest rates. Although housing affordability continues to be a major challenge for buyers, a bit of good news is that first time homebuyers were responsible for 29% of sales in February, a 2% increase from the prior month. Are you thinking of joining the nearly 30% of homebuyers, but aren’t sure where to start? Buying a home can seem like a daunting task, especially if you are a first-time homebuyer. Don’t worry just follow these steps and you will be living in your new home before you know it.

real estate market
  • Check your credit score to determine whether you qualify for a mortgage and the interest rate lenders will offer. You are entitled to an annual free credit report, go to AnnualCreditReport.com. Also, from now until the end of the year, the government is allowing a weekly credit report, so take full advantage of this free service. Take this time to review the report and fix any errors or issues.
budget
  • Determine your budget and what you are comfortable with. Just because you may qualify for more, doesn’t mean it is right for you. Most buyers prefer not to be “married to a house payment” so they can travel and do other things.
mortage
  • Find a trusted mortgage lender to get the best mortgage and mortgage rate. Once you are approved, a mortgage lender can give you a preapproval letter. A preapproval letter is a great tool when purchasing a home, because it lets real estate agents and sellers know you are serious and can give you an edge over other buyers that aren’t as prepared.
trusted
  • Choose a real estate agent that will help you find the perfect home that meets your needs within your budget. Once you’ve decided on a home, an agent will guide you through the entire process from negotiation to the final closing process.
real estate agent tips
  • Tips to help your real estate agent find the perfect home:
    • What is important to you? Schools? Nearby recreational activities?
    • Will this be a starter home or a forever home?
    • Do you want to be within walking distance of amenities such as parks or grocery stores?
    • Do you want to live in a neighborhood or prefer to have a larger lot?

First time home buying doesn’t have to be scary. Just follow the steps above and find real estate professionals that you can trust to help you throughout the entire process. Stutesman’s Action Realty can help you with all your real estate needs in Missouri and Kansas. Call today, 833.286.8400.

For more information about current housing statistics, visit the National Association of Realtorsâ.

Categories
Blog

How to Prepare for the Impending Interest Rate Hikes

interest rates

All indicators are pointing to interest rate hikes in 2022. When, how much, and how many are still under speculation, but the one thing experts agree on is that they will rise. How can you prepare for the upcoming rate hikes?

home owner
  • If you are considering buying a home, now is the time. Work with your mortgage broker to lock in a low rate. Make sure the rate is fixed and won’t vary.
  • If you have your eye on a home, but the current owner needs a longer move out date, go ahead and purchase it at the lower rate and lease it back to the owner. A real estate professional can help you properly write up a contract with the specific details.
house debt
  • Pay off as much debt as possible, especially credit card debt and any sort of variable rate loans. These are the things that can get out of hand quickly and cause many financial problems that will  hurt you homebuying potential.
mom and son

On the other hand, rate hikes aren’t all bad for homebuyers. Last year’s soaring demand and low-interest rates sent prices rising beyond reach for many would-be homebuyers. Buyers found themselves in bidding wars and/or making hasty decisions. For most Americans, the main way of accumulating wealth is through homeownership and last year’s dramatic price increases squashed that dream for many. That is a problem that not even low-interest rates could fix. Experts don’t expect a dramatic decline in home prices, but the dramatic increases are forecast to tamper down a bit allowing a larger pool of buyers to become homeowners.

One thing is for certain, planning is crucial, so get with an agent, find a lender, and start planning. Stutesman’s Action Realty has a line-up of professional real estate agents ready to help their clients make that purchase or sell. Reach out today, 833.286.8400.

Categories
Blog

How to Sell Your Home Fast if Foreclosure is Looming

house

Although the housing market is the hottest it has been in recent years, some people have been adversely impacted by the pandemic and are facing the possibility of foreclosure. When foreclosure is looming, sellers are typically anxious to sell their homes. To assure your home sells fast, make sure it is in top condition, priced to sell, and marketed appropriately.

decluttering

Although money may be tight, it is important to make sure the house is in the best condition possible. Often the things that need to be done only require good old-fashioned labor and your time. Decluttering is the best place to start. This allows buyers the ability to truly see the house and all it has to offer. Piles, messes, and odors are a sure way to turn a buyer off. If the house needs some repairs, don’t invest too much money. It is best to opt for less expensive items such as re-painting, caulking cracks, fixing minor leaks, and patching holes in the walls.

money house

Price your home a realistic price for the market. Overpricing will guarantee a house to sit on the market. Although houses are generally selling for more in today’s market, remember a house will only sell for what the market is willing to pay. If it’s too high, they won’t buy it.

marketing

There is more to marketing a house than putting a for-sale sign in the yard. It is important to have an online presence exposing it to an unlimited number of buyers. You will need several quality photos to give viewers a good idea of what your house looks like. Online views lead to in-person showings.

Selling a house can be overwhelming and the best way to remedy that feeling is to hire a professional real estate agent. A professional will help you get the house in top condition by offering advice on what needs to be done to attract buyers. No one knows the real estate market better than a real estate agent. An agent can conduct a comparative market analysis to determine what homes similar to yours are selling for in your market. This helps determine the most likely sell price. Once an agent lists your home, it will be listed on the open market making it available for thousands of buyers and other real estate agents to view. Stutesman Action Realty can get your house sold fast! Contact an agent today at 833.286.8400.

Categories
Blog

New Year, New Home

new year, new home

As 2021 is wrapping up with a record housing year, 2022 is shaping up to be another one. Although the Fed has signaled, they are open to raising interest rates to offset inflation, the housing market is expected to continue to remain strong. While many may think this could slow the housing market (and it could), this will help lower the cost of materials and supplies such as lumber and plumbing supplies. As the old saying goes, “It will all come out in the wash,” is relatively accurate when considering the correlation between the two. Are you thinking about selling your home in the new year and curious if the time is right for you? Here are a few things to consider:

clock in hand

Is this the right time for you?

Of course, factors like seasonality and local market trends play a role in your decision-making process, the most important considerations are personal. The first step is to consider your finances. Yes, you may be able to get top dollar for your home, but you could also pay top dollar for another one.  

budget worksheet

How much can you afford to spend?

Now that you’ve considered your finances and what comfortably fits your budget, it is a good idea to get pre-approved for a mortgage if you will be financing your new home. Today’s market is very competitive and buyers that can show sellers they are serious are more likely to have their offer accepted.

home needs list

What are your must-haves?

If you have decided that now is the time to make the move, make a list of your must-haves that you can’t live without. Do you want to stay in a specific school district? Do you need a home office? Do you want a bigger lot?

couple shopping online

Start shopping!

Now the fun begins, and you can confidently start your search knowing that when you find your dream home, you will be ready to make an offer. Hiring a professional real estate agent is one of the best ways to buy and sell a home. They will help you search for homes, schedule showings, help you make an offer, and work with you throughout the entire process.

Contact Stutesman’s Action Realty today to find your new home in the new year.

Categories
Blog

Should You Sell Your Home During the Holidays?

holiday table setting

The holidays aren’t always considered to be the best time to sell your home, but that isn’t necessarily true, especially in the current real estate climate where demand is high, and supply is low. People typically associate the time of year when the grass is turning green as the optimal time to sell, but don’t limit yourself to the warmer temperatures if you are considering selling. Here are a few reasons why:

  • Inventory is lower, limiting competition.
  • Buyers that are actively looking during this time of year tend to be more serious and ready to make a decision when they find what they want.
  • Holiday decorations can make your home more inviting and create an emotional connection to potential buyers.
gingerbread house

If you decide to list your home during the holidays, here are a few tips:

  • Make your home festive, but don’t go overboard. If your home is too crowded it will give the impression that it isn’t large enough and/or keep potential buyers from moving freely to get a good look.
potpourri
  • To solidify the holiday experience, fill your home with the smell of the holidays. Try this stovetop simmering potpourri recipe from A Modern Homestead.
  • Make sure decorations don’t block beautiful views or unique architectural features.
boots in the snow
  • Keep stairs and walkways free of snow, ice, and leaves to maintain everyone’s safety and curb appeal.
  • Create a great video tour to entice online shoppers to want to take an in-person tour.

Are you ready to list your home this holiday season? Give Stutesman’s Action Realty a call, 833.268.8400. A real estate professional will give you tips on making your home holiday perfect to entice any buyer.

Photo credit source:  https://stayhomestyle.blog/2020/12/07/a-simple-guide-to-decorating-a-small-porch-for-christmas-on-a-budget/