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By Barry Bolston 04 Feb, 2023
Spring is usually the busiest season in the housing market. Many buyers wait until then to make their move, believing it’s the best time to find a home. However, that isn’t always the case when you factor in the competition you could face with other buyers at that time of year. If you’re ready to buy a home, here’s why it makes sense to move before the spring market picks up. Spring Should Bring a Wave of Buyers to the Market In most years, the housing market goes through predictable seasonal trends in activity. Winter is typically a quiet point in the year, while spring sees a surge of buyers begin their search. And experts project that this year will be no exception. Right now, buyer demand is low due to a combination of normal seasonal trends and a reaction to last year’s rise in mortgage rates. But rates have started to come down since last November, which has more and more potential buyers planning to jump into the market. That means right now is a sweet spot if you’re in a good position to buy, before more buyers reappear. Affordability is beginning to improve, but demand is still low — for now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), shares : “. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.” If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market. Today’s Sellers Are Motivated Low demand from buyers often means sellers are more motivated to work with you, and that can set you up to buy a home on your terms. In fact, sellers have been more willing to negotiate this winter because there are fewer buyers in the market. According to a recent article from Forbes : “. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.” But keep in mind, the advantages buyers have this winter won’t last forever. The competition you face could be greater if you wait until spring to make a move, and increased buyer demand means sellers will have less motivation to negotiate with you . Be sure to work with a trusted real estate professional to learn what you can expect in your local market right now.
By Barry Bolston 04 Feb, 2023
As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling. Now, however, rates are beginning to come down—and buyers are starting to reenter the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week by 7% compared to the week before. So, if you’ve been planning to sell your house but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying about buyers returning to the market as we approach spring.
By Barry Bolston 25 Nov, 2021
If you’re looking to maximize your sale and minimize your effort, you need to work with a real estate professional. In a sellers’ market like today’s, it can be tempting to list your house on your own – known as For Sale By Owner (FSBO). But the truth is, a real estate professional can save you time and money by managing every step of the process, from pricing your home to reviewing documents and handling negotiations. Before you decide to sell your house on your own, here are five reasons why working with an agent is your best bet to maximize the sale of your home. 1. First impressions are everything – and an agent knows how to make a great one. Prepping a house for sale requires a significant amount of time and effort, even though it may seem simple at first glance. Doing it right so it stands out takes expertise and an understanding of what buyers are looking for. An agent considers things like: Should you take down any personal art or pictures? How much landscaping should you invest in to boost your house’s curb appeal? What wall colors are most appealing to buyers? An expert real estate advisor relies on their experience to answer these questions and more so you don’t invest in the wrong things. Your time and money are important – you shouldn’t waste either. 2. Agents have tools to maximize the number of views your home gets. Put plainly, the more buyers that view your house, the better your return will be. In our current market, homes are receiving 3.8 offers on average per sale, according to recent data from the National Association of Realtors (NAR). While that’s promising for the sale of your home, it’s important to understand your agent’s role in bringing buyers in. Agents have multiple tools at their disposal – from social media to agency resources – to ensure your home is viewed by more prospective buyers. Leveraging the tools available to your agent and your agent’s expertise may help boost your sale price as well. 3. An agent won’t miss anything in the fine print. Your agent can also save you time by taking any guesswork out of navigating the required documentation. Today, more disclosures and regulations are mandatory, meaning the number of legal documents you need to juggle is growing. Because there’s so much to take care of, it can be hard to truly understand all of the requirements and the fine print. That’s where an expert advisor can truly shine. They’ve been through the process before and can be your guide to avoid any costly missteps. 4. Expert advisors know the market and how to price your home. Another way your agent maximizes the sale of your home is by making sure it’s priced right. Real estate professionals have the experience to compare your house to recently sold homes in your area. They also understand the market at large and can factor in any upgrades you’ve completed to your home. Combining these factors is the key to making sure your home is priced to move quickly – and at a competitive price. When you FSBO, you’re operating without this expertise. Even with your own research, you may not find the most up-to-date information and could risk setting a price that’s inaccurate or unrealistic. If you price your house too high, you could turn buyers away before they’re even in the front door. This could also cause problems when it’s time for the appraisal. 5. Your agent will be an expert negotiator. In addition to their experience navigating sales, real estate professionals understand how to negotiate every aspect of a deal. They also know all the parties that will be involved with the sale, including: The buyer, who wants the best deal possible. The buyer’s agent, who will use their expertise to advocate for the buyer. The inspection company, which works for the buyer and will almost always find concerns with the house. The appraiser, who assesses the property’s value to protect the lender. An agent relies on their experience and training to make the right moves during the negotiation. They’ll know what levers to pull, how to address each individual’s concerns, and when you may want to get a second opinion. Selling your house as a FSBO means you’ll need to be prepared to have these conversations on your own. Bottom Line Selling a house takes time, effort, and expertise – don’t go at it alone. If you truly want to maximize the sale of your home, work with a trusted real estate professional.
By Barry Bolston 25 Nov, 2021
New Title
By Barry Bolston 01 Aug, 2021
Requirements for Pre-approval To get pre-approved for a mortgage, you'll need five things— proof of assets and income, good credit, employment verification, and other types of documentation your lender may require. Here is a detailed look at what you need to know to assemble the information below and be ready for the pre-approval process: 1. Proof of Income Buyers generally must produce W-2 wage statements from the past two years, recent pay stubs that show income as well as year-to-date income, proof of any additional income such as alimony or bonuses, and the two most recent years' tax returns . 2. Proof of Assets The borrower needs bank statements and investment account statements to prove that they have funds for the down payment and closing costs, as well as cash reserves. The down payment, expressed as a percentage of the selling price, varies by loan type. Many loans come with a requirement that the buyer purchase private mortgage insurance (PMI) or pay a mortgage insurance premium or a funding fee unless they are putting down at least 20% of the purchase price.3 In addition to the down payment, pre-approval is also based on the buyer's FICO credit score, debt-to-income ratio (DTI), and other factors, depending on the type of loan. All but jumbo loans conform to government-sponsored enterprise (Fannie Mae and Freddie Mac) guidelines. Some loans, such as HomeReady (Fannie Mae) and Home Possible (Freddie Mac), are designed for low- to moderate-income homebuyers or first-time buyers. Veterans Affairs (VA) loans, which require no money down, are for U.S. veterans, service members, and not-remarried spouses. A buyer who receives money from a friend or relative to assist with the down payment may need a gift letter to prove that the funds are not a loan. 3. Good Credit Most lenders require a FICO score of 620 or higher to approve a conventional loan, and some even require that score for a Federal Housing Administration loan.7 Lenders typically reserve the lowest interest rates for customers with a credit score of 760 or higher. FHA guidelines allow approved borrowers with a score of 580 or higher to pay as little as 3.5% down . Those with lower scores must make a larger down payment . Lenders will often work with borrowers with a low or moderately low credit score and suggest ways to improve their score. 4. Employment Verification Lenders want to make sure they lend only to borrowers with stable employment. A lender will not only want to see a buyer's pay stubs but also will likely call the employer to verify employment and salary. A lender may want to contact the previous employer if a buyer recently changed jobs. Self-employed buyers will need to provide significant additional paperwork concerning their business and income. According to Fannie Mae, factors that go into approving a mortgage for a self-employed borrower include the stability of the borrower’s income, the location and nature of the borrower’s business, the demand for the product or service offered by the business, the financial strength of the business, and the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the mortgage. Typically, self-employed borrowers need to produce at least the two most recent years' tax returns with all appropriate schedules. 5. Other Documentation The lender will need to copy the borrower's driver's license and will need the borrower's Social Security number and signature, allowing the lender to pull a credit report. Be prepared at the pre-approval session and later to provide (as quickly as possible) any additional paperwork requested by the lender. The Bottom Line Consulting with a lender before the homebuying process can save a lot of heartache later. Gather paperwork before the pre-approval appointment, and definitely before you go house hunting.
By Barry Bolston 30 Jul, 2021
Houston’s Luxury Real Estate Market Is Sizzling This Summer High-end home sales in Houston have been skyrocketing over the last year, defying all odds and expectations for the niche market’s performance. Houston’s housing market overall is hitting new highs, with the luxury market leading the way. Houston’s Luxury Housing Market Houston’s luxury home sales experienced strong growth despite the pandemic thanks to low mortgage rates and changes in day-to-day life. According to the latest numbers, the sales volume for homes priced above $750,000 nearly doubled in March from 2020, a 90% year-over-year increase. This figure captures the rising demand for luxury properties over the past few months, but March’s performance is the highest spike yet. In total, over $4 billion worth of property sales in the luxury market were completed in March alone. The demand for homes in Houston has driven up the selling price about 20% higher than last year, and home sale volume has also risen about 17% compared to 2020 figures. According to the Texas REALTORS®, the average price per square foot for luxury homes in Texas has also increased, reaching on average $360 per sq. ft. compared to an average of $139 per sq. ft. for all residential properties. In Houston specifically, the average price per sq. ft. hit a new high of $335. “Several overlapping market forces propelled us to a strong finish in March, between a lack of low-to-mid-range housing and aggressive high-end buying by consumers taking advantage of historically low-interest rates,” said HAR Chairman Richard Miranda in an interview with Keller Williams Platinum. Another contributing factor in Houston’s luxury market success is that out-of-state buyers looking for high-end properties have discovered they can get more for their money in Texas, particularly compared to the dwindling options available in famously luxurious markets found in New York, California, Washington, and Colorado. With this impressive growth in mind, what trends have emerged in Houston’s luxury market over the last year? Houston High-End Home Trends Styles come and go, but home functionality will always be king. In previous years, the trend of minimalism and the “less is more” approach could be seen in almost every high-end home. Today, open concept rooms are still desired, but after months of quarantining at home, the idea of open concept everything has lost its appeal. Affluent buyers are making health-driven lifestyle choices that are reflected in how they use their homes. As such, here are the Luxury Home trends heading into 2021: More space for home office, home gym, or kid’s playroom Modular walls for flexible functionality Green HVAC, plumbing, and electrical systems Outdoor entertainment spaces
By Barry Bolston 29 Jul, 2021
As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market. A Shortage of Homes for Sale Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says: “In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.” This is good news for buyers who crave more options. But even though we’re experiencing small gains in the number of available homes for sale, inventory remains a challenge in most states. That’s why it’s still a sellers’ market, giving homeowners immense leverage when they decide to make a move. Buyer Competition and Bidding Wars Today’s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year – and that’s great news for sellers. For buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what’s most appealing to the seller. Home Price Appreciation The competition among buyers is driving prices up. Over the past year, we’ve seen home price appreciation rise across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May: “The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.” Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For potential sellers, it also means it’s a great time to list your house to maximize the return on your investment. A Rise in Home Values and Equity The equity in a home doesn’t just grow when a homeowner pays their mortgage – it also grows as the home’s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity. CoreLogic recently reported: “…homeowners with mortgages (which account for roughly 62% of all properties) have seen their equity increase by 19.6% year over year, representing a collective equity gain of over $1.9 trillion, and an average gain of $33,400 per borrower, since the first quarter of 2020.” That’s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their dream homes.
21 Jul, 2021
Whether you are looking to sell your home or buy the next home of your dreams, trusted real estate agent Barry B is here to help. Don’t feel as if you have to navigate the real estate market by yourself, we’re here to help! Here are some additional benefits that come with working hand in hand with a real estate agent. Experience in the Houston real estate market Barry B has been a realtor for 13 years, and he uses his expertise in the area to find the right property for you. We’ll listen to your wants and needs, and then create a gameplan to show you homes in the areas we feel will be perfect for you. The power to negotiate on your behalf Negotiating real estate deals can be intimidating, but don’t worry, that’s our job! We’ve done this hundreds of times in our career, and won’t accept anything but the best terms and conditions for you. Pricing your home to sell Pricing a home can sometimes feel like you are shooting in the dark. But our expertise and knowledge of the real estate market will let us hit the bullseye with ease. Providing you with connections Real estate agents have a lot of ties in the community, and can help introduce you to inspectors, contractors, movers, and even potential buyers and sellers in their network. Real estate agents take time, so you don’t have to! At the end of the day, buying or selling your home is our job! We will do all the heavy lifting so you can go through the process with ease. Most buyers and sellers don’t realize how significant of a time commitment real estate can be, so let us shoulder the burden. Do these benefits sound good to you? If so, let’s talk! Homes by Barry B is here to help you on your real estate journey, as much as possible.
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