Is It Time for You to Move? Watch for These 3 Signs

There are three key signs you should watch for to know if it’s time for you to move.

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 Is it time for you to move? If you’re unsure, here are three signs to look out for. The first is how your home’s space affects you. Maybe you’re feeling a little cramped because your family has gotten bigger or your kids are getting older and space is tighter inside your house than it used to be. Buying a new house can be a great upgrade in terms of space. It’s also possible that you have too much space and you need to downsize so you don’t have as much maintenance to keep up with or utility costs to cover. The second sign it might be time to move is your financial situation has changed. Maybe you’ve gotten enough promotions over the years that you’re ready to upgrade to the home you’ve been dreaming of. You might also be thinking of retiring and how that will affect your financial situation.

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You may either have too much or too little space in your current home.

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Another aspect to think about in terms of your financial situation is the market itself. Many experts (including myself) believe we’re heading toward a market peak, so you might be in position to cash-out a large chunk of equity. The third sign is you want to register your kids into a different school system. We all have different motivations behind which school systems we want our kids in, so if you’re like me and your kids are in their school-age years, this might factor into your decision. If you have any more questions about this topic or you’re still unsure whether it’s time for you to move, don’t hesitate to call or email me anytime. I’d love to speak with you.

Don’t Buy Into Market Misinformation

The information you hear on social media and the news concerning the market might have you feeling scared of the market, but it could be the product of misinformation.

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Right now is a great time to buy and sell in this real estate market, but there are a few myths circulating that would have you think otherwise. Today, I want to address some misinformation you might have heard and you might now believe. I don’t necessarily mean that it’s bad information, but rather information that is communicated in unclear ways that might prevent those who hear it from being well informed about the market.

Despite the hype surrounding rising interest rates, interest rates are still at all-time lows. Rates are 2.5 points below the market average, based on my tracking the figures over the past 20 to 30 years. You can still take advantage of interest rates—there are mortgage rate deals as well as agent-generated deals, where a good agent can negotiate deals for you.

Another type of deal is the market-generated deal, which is what most people sit around waiting for; there’s a fear of entering the marketplace because people believe that the market can only create so many deals.

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Despite the hype surrounding rising interest rates, interest rates are still at all-time lows.

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If you’re planning to buy or sell a home anytime within the next five years, you should jump in right now. The below market interest rates, the potential to maximize the amount of equity you can pull out of your home, and if you have the right agent, they will help create a generated deal and find a property that you can buy which lines up with your goals.

Many people believe that we’re near the crest of a rising market and will soon be headed back down. None of us has a crystal ball to know exactly where we are in terms of the market crest or trough, but most believe we’re somewhere in upper end.

If you’re thinking of selling your home in the near future, feel free to reach out to us for a free, no-obligation consultation. We’d love to dive into the market and talk about how it could benefit you.

4 Tips for First-Time Homebuyers

These four tips can help first-time home buyers purchase their home at the best price and rate possible.

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Today, I have some tips to help first-time homebuyers purchase a home. 

1. Find a great real estate consultant. The way I differentiate between a real estate consultant and an agent is that a consultant will sit down with you and identify your needs and what you’re looking for. An agent, in my mind, is more reactionary; they’ll show you the houses that you ask to see.
2. Dig into the market conditions. There are many different markets throughout the country. Here in Birmingham, we’re in a low inventory market and interest rates are spiking. The differences between markets will affect the price of the home you’re trying to buy. A great consultant will help you navigate the market conditions and structure the best deal for your situation.
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First-time homebuyers have many different options in today’s market.


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3. Work to make sure you’re fully pre-approved. This will require working with a lender. Sit down with them and let them coach you through the various financing options that are available in this rising interest rate climate in order to reduce your payment. It could be an interest rate buydown, negotiating with the seller to have them pay closing costs, or possibly having the lender pay some closing costs.
4. Look at homes that need renovations. Work with your agent and lender to do a 203(k) renovation loan and renovate a house.

First-time homebuyers have many different options in today’s market. Discuss these with your consultant to get the best deal at the best price with the best terms for you and your family’s goals. 

If you have any questions, please feel free to contact us. We’d be glad to help you any way we can.

Is Now the Right Time to Buy in Our Market?

Interest rates are on the rise in our market, so if you’re a homebuyer, you should definitely consider buying sooner rather than later.

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How are market conditions and interest rates affecting homebuyers out there?

We’ve talked to a lot of people contemplating buying a home lately, and one of the common trends we’re seeing from homebuyers is wanting to wait 90 or 120 days before entering the market. If you feel the same way, you might want to reevaluate that strategy with a real estate consultant. In the last four months, we’ve seen interest rates go from 4.09% to 4.38%, and all indications are that they will continue to rise over the next 90 days. 

Experts at the FMOC expect interest rates to be raised three times in 2018. Historically, interest rates have risen entering the spring markets even without the conditions we’re experiencing right now. Home prices tend to rise as well through this season. 

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In the last four months, we’ve seen interest rates go from 4.09% to 4.38%.

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This is why, if you’re thinking about buying a home, meet with a real estate consultant, review your goals, and think about whether now is the time to dive into the market. If you meet with us, we can perhaps create a strategy to purchase a home later in the year all while accomplishing the same goals. 

If you’re on the fence, we’d love to give you a free consultation and examine the effects of waiting to enter the market. If you like to sit down with us or you have any other questions about our market, don’t hesitate to reach out to us. We look forward to hearing from you.

What to Expect From the 2018 Real Estate Market

How is the Birmingham real estate market? I’ll go over market conditions and what to expect from the 2018 market today.

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Let’s take a look at the state of the market and what those market conditions mean for real estate in 2018.

Inventory reflects the number of homes on the market. Here are the inventory levels for December 31 over the course of the last five years: 

• 2013 - 7,439 homes
• 2014 - 6,568 homes
• 2015 - 6,677 homes
• 2016 - 6,190 homes
• 2017 - 5,304 homes

As you can see, inventory dropped significantly from December 31, 2016, to December 31, 2017. That means there has been a significant drop in the number of homes available for sale. 

If you are a seller, now may be a good time to put your home on the market. Homes are selling quickly if they are priced and positioned properly in the market.

Of those 5,304 homes, 1,000 of them are under contract in some form or fashion. 

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Now is a great time to enter the market as a buyer or a seller.

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Another major factor in the real estate market is mortgage rates. Interest rates continue to skyrocket. As rates go up, your buying power goes down. Rates have gone up three-eighths of a point over the last 20 days, which would significantly impact your mortgage payment and your buying power in the real estate market. Check out this attachment for more.

If you are a seller, that means that your buyer pool may be dwindling.

That said, now is a great time to enter the real estate market as a buyer or a seller. If you have any questions, just give us a call or send us an email. We would be happy to help you!