Over the past several years, we’ve seen homes sell for unheard of prices due to a shortage of inventory combined with historically low mortgage interest rates. This imbalance between supply and demand has driven up prices and forced buyers to aggressively compete for the few homes being offered for sale. This often means waiving all contingencies to improve the desirability of a purchase offer. Unfortunately this leaves prospective buyers in a precarious position in the event that the home appraisal doesn’t match the price offered.
Homebuyers today are facing a huge dilemma. There simply aren’t enough homes for sale. So should you buy a new construction home or an existing home?
Nationwide, there were 1.27 million active listings in September, down 13% from the previous year. According to the National Association of Realtors, that’s about 2.4 months of inventory, which is far less than the six months that is generally needed to strike a healthy balance between supply and demand.
I am often asked to estimate the total closing costs involved in purchasing a home. Many of my clients are first time homeowners and don’t have the experience of working with lenders or going through the entire escrow process. Relatively early in the real estate journey, I will request a ‘buyer net sheet’ from the title company to estimate all of the costs associated with a transaction to give home buyers a better understanding of how much they will actually spend at the conclusion of the deal.
According to the FBI, more than one million burglaries are committed in the United States each year, with victims suffering an estimated $3 billion in combined property losses. Fortunately, there are some proven tactics you can use to decrease your likelihood of encountering home invasions.
Buying and selling a home at the same time can feel daunting to even the most seasoned homeowner––especially when the demand for new homes keeps rising, but the supply feels like it’s dwindling. You’re not alone either if you’re already feeling drained by the complex logistics of trying to sell and buy a new home all at once.
The real estate market remains influenced by the old supply-and-demand predicament: U.S. home sales continue at a rapid pace, but the number of listings remains limited. Amid historically low mortgage rates, buyers keep shopping, reducing inventory and sparking a rise in home prices.
If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs, the appraisal process—historically a standard part of a home purchase—is receiving more attention than ever.
That’s because some sellers are finding out the hard way that a strong offer can fizzle quickly when an appraisal comes in below the contract price. Traditionally, the sale of a home is contingent on a satisfactory valuation. But in a rapidly appreciating market, it can be difficult for appraisals to keep pace with rising prices.
Learn how to determine your current net worth and how an investment in real estate can help improve your bottom line.
Among its many impacts, COVID-19 has had a pronounced effect on the housing market. Low home inventory and high buyer demand have driven home prices to an all-time high. This has given an unexpected financial boost to many homeowners during a challenging time. However, for some renters, rising home prices are making dreams of homeownership feel further out of reach.
Remember finding a home you lived as a young adult? Now imagine trying to fit your life today into that space. Not pretty, right?
For most of us, our housing needs are cyclical. A newly independent adult can find freedom and flexibility in a tiny apartment. That same space, to a growing family, would feel stifling. For empty nesters, a large home with several unused bedrooms can become impractical to heat and clean. It’s no surprise that life transitions often trigger a home purchase.
Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for homes in the most sought-after neighborhoods. This has led some sellers to wonder if they should list their home “For Sale By Owner” (FSBO). After all, why spend money on a listing agent when it seems that you can stick a For Sale sign in the yard then watch a line form around the block?