Posts Tagged ‘Trulia’

Buyer’s Remorse, Billerica Mortgage Rates, and Summertime

Mortgage rates in Billerica remained mostly steady this past month, at least partially due to the predictable July-August doldrum effect. When the summertime vacation schedules of Washington and Manhattan movers and shakers presages a slowdown in activity and economic reports, there is simply less going on that might affect the rate meter—in either direction.

Summertime can also mark the beginning of a nationwide tapering off of real estate’s peak selling season. With the added factor of mortgage rates in (town) looking as if they will remain invitingly low for the near future, fear of a sudden rate rise is ebbing as well. It’s the kind of  apprehension that can spur some buyers into feeling the need to scoop up some of Billerica’s current inventory with less than due diligence, so that’s a positive development—especially if a new report from Trulia is accurate.

Trulia’s report highlighted the importance of careful deliberation for new buyers. A wide-ranging poll registered the startling fact that nearly half of Americans are willing to express some form of buyer’s remorse about their home soon after purchase.

Trulia found the top regret came in not choosing the right sized home. The lion’s share belonged to the third of homeowners who wished they’d bought a larger place. This might have been expected among those whose budgets wouldn’t accommodate a “dream home” property, yet even among Americans earning $100,000 or more, according to the study, 16% regretted having bought a home that was proving too small for their liking.

The takeaway is simple: if you are thinking of buying in the near future, allowing any outside factors (including Billerica mortgage rates) to push you into a home that isn’t right for you and your family can have an immediate downside. Buying a home is definitely a venture that rewards cool reflection…even when a potential dream home is in on the horizon.

At least for the moment, mortgage rates in (town) remain at historically affordable levels.  If you’re looking to buy this year, be sure to keep your “must have” list handy as you assess the emerging inventory. Better still, when you give me a call, I’ll be happy to turn my professional efforts to helping with the monitoring effort. I’m here all summer standing by!

Joan Parcewski —CRS, MRP, CSHP, SRES, CBR, LMC, Realtor & Notary
978-376-3978   JParcewski@LAERRealty.com    OR    JParcewski@gmail.com
 
Licensed MA & NH    
Introductory Video  https://youtu.be/RrM4q17cjU0

 

5 Questions to Ask Yourself Before Setting Your Offer Price – Tara@trulia

These tips come from a California real estate agent who writes for Trulia.  The points apply no matter where you are buying your home:

1. How close/recent/similar are the comps – and what story do they tell?…..But once it’s time to pin down a precise offer dollar amount, it behooves you to look beyond the sales prices of the comparables and to work with your agent to suss out the story they have to tell – and what implications that story has for your own offer price.

In particular, you’ll want to look at the listing details and even the photos of the comparable properties to understand which ones are truly similar – or dissimilar – to the property you’ve targeted, beyond the basic specs………….

Also, look for the bigger picture story that the comps are telling you……

I can’t emphasize enough how critical it is to collaborate with your agent when it comes to gathering this fuller picture and story from the data on recently sold nearby properties and applying it in the course of setting your own offer price.

2.  What kind of shape is the place in?  Fixer-upper homes may not qualify for low-down payment FHA financing…………It’s also essential to include your mortgage broker in the offer-price setting conversation, as condition issues might impact the loan programs available to you and, thus, the down payment, closing cost and monthly payment required at a given offer/purchase price point…………..

3.  What’s the competition like?………………..How will you know what your competition is like?  Ask your agent – and they’ll likely give the listing agent a ring, let them know you’re serious about making an offer and feel out whether there is competition or not, and how fierce it is.

4.  How much do you want it? Your personal desire and motivation level to get a particular property is an absolute must to factor into the offer price decision-making mix, especially when you get close to putting a final number of dollars and cents on the table…………..

The need to tweak your offer priced based on your motivation level (within the range of what you can afford, of course) is particularly true when it comes to multiple offer situations…………………

5.  What can you truly afford? No, really.  It’s not that you haven’t asked yourself this question, worked through your monthly financials, pored over the numbers with your mate, your financial planner and your mortgage broker ad nauseam………

Interest rates might have changed. ·        You might have decided you need to move your price range up, because you can’t find anything that works in a lower range. ·        You might have realized you need to offer more than the asking price, due to the competition. ·        Your expenses might have changed, because you had to put a kid in daycare or start some new service up. ·        Your cash cushion might have changed, because you had to repair your car or fix something at your existing house. ·        Your cash needs might even have changed, as you realize the home you are trying to buy needs a lot of work that will take a lot of cash.

And so, throughout the course of a house hunt, it’s not at all bizarre to experience price range creep. The best practice is to walk through the comps with your agent, determine their story, get as much information as you can about your competition and the home’s condition and get clear about how much you want the place then, just before you finalize your offer price, touch based with your mortgage broker or banker and tell them what you’re planning to offer. Ask them to give you an updated set of numbers, including what your down payment, monthly payment and cash to close would look like at that price, based on today’s interest rate…………………….

Read the full post here —-  http://www.trulia.com/blog/taranelson/2012/10/5_questions_to_ask_yourself_before_setting_your_offer_price?ecampaign=cnews201210D&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2012%2F10%2F5_questions_to_ask_yourself_before_setting_your_offer_price

5 Buyer Turnoffs

This information comes from an article on Trulia.com.  As a real estate agent, I see reactions to these 5 all the time. 

1.  Pools – “ many home buyers are turning down homes specifically because they have a pool.”

2.  Your stuff –  “Yes – your taste is immaculate. But it’s your taste.

3.  Carpet –  “Concerns about the relative difficulty and expense of cleaning carpets, to the cost of replacing them when you want a decor change, to the tendency of carpets to hold pet hair, mites and other allergens that may impact family members with respiratory issues are, collectively causing carpet to fall out of favor with today’s home buyers.”

4.  Gold bathroom fixtures – “best described as things that are old, but not old enough to be vintage, retro, classic or historic.

5.  Elaborate gardens and/or vast landscaping – “ some buyers simply know they don’t or won’t put the time, money and water into their care, so would rather not take them on.”

For more details on each of these read the entire article at

http://www.trulia.com/blog/taranelson/2012/09/5_surprising_home_buyer_turn_offs?ecampaign=cnews201209C&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2012%2F09%2F5_surprising_home_buyer_turn_offs

 

3 Ways Homebuyers Kill Their Own Real Estate Deals – Reprint 2/6/2012

The following is a reprint from Daily Real Estate News by Inman News by Tara Nicholle-Nelson.  Homebuyers can be naive when they are shopping for and putting an offer on a home.  This article points out just what buyers need to keep in mind. 

 

Here are three ways homebuyers are defeating their own deals in today’s market:

1. House hunting too long. As many as 60 percent of the homes for sale in some markets are short sales. Many other listings are bank-owned (also known as real estate owned or REO) properties, and those homes tend toward two extremes: terrible condition, or so nice at such a low price they receive multiple offers.

Even the nicer, nondistressed homes on the market can end up in and out of contract over and over again due to appraisal or other lending-related issues.

As a result, it is not at all bizarre to hear homebuyers today say they’ve been house hunting for a year, 18 months, even two or three years. When you house hunt that long, you become susceptible to house hunt fatigue, which causes irrationally extreme overbidding out of sheer exhaustion.

Alternatively, it can cause you to settle for whatever house you can get, even if it doesn’t actually meet your needs — then spend the next 10 years obsessively spending to upgrade, improve, repair and furnish the place to try to make it more like the home you actually wanted.

Both of these outcomes negate and deactivate the bargain you stood to score.

To avoid house hunting too long, it’s uber-important to get and stay clear on the differences between what you want and what you need, and to work with a local real estate professional you trust.

Look to your agent to get and keep your expectations centered in reality, so you can make more strategic decisions throughout your entire house hunt, like house hunting in a price range where you’re likely to both find homes that will work for your life and be successful in your efforts to obtain one.

2. Making lowball offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal. But making excessively low offers — offers sellers couldn’t afford to take if they wanted to — can have the very same result.

Buyers who think they can operate strictly on the basis of buyer’s market dynamics — without realizing that most sellers will need to make enough to pay off their mortgage or at least receive the fair market value for their home — are cutting off their own noses to spite their faces, all in the name of trying to score an amazing deal.

Note to “lowballers”: If you don’t actually secure the home, the superlow price you offered is no deal at all.

3. Freak-outs, stress, drama and mayhem. Once was, it was mostly the buyers uneducated about the homebuying process who tended to freak out and stress the most, especially at the top of the market. These were the folks who found themselves defeated at every turn by buyers who knew what they were up against and were prepared to make their best offer on their first offer.

Fast forward, and now the norm is for buyers to spend much more time reading up on what to expect, but the inundation of information can create brand new mindset management challenges.

Almost every buyer is stressed about whether they can qualify for a loan, and about buying into a down market. Some buyers try to apply national headlines about home prices being depressed to the superlocal dynamics of their neighborhood market.

This is unwise if you happen to be, for example, trying to buy a home in the boomtown real estate markets of Silicon Valley. Others go the opposite direction and deny that the basic truths about, say, buying a short-sale listing will actually apply to them (attention homebuyers: buying a short sale usually takes a long, long time).

The emotional freak-outs that result from having your expectations shattered, sometimes brutally, in the course of buying a home often lead to panic-based and fear-based decisions, which can be costly in the short and long term. Additionally, the stress itself can take a toll on your ability to be productive at work, and can even impair your relationship with your mate, neither of which are worth any deal you think you stand to strike.

Again, managing your expectations by working with a trusted broker or agent you feel comfortable relying on to understand the market in your neck of the woods and the type of transaction you want to pull off is essential to downgrading the role emotion plays in your real estate decision-making.

Tara-Nicholle Nelson is author of “The Savvy Woman’s Homebuying Handbook” and “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions.” Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

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