Renting is Getting Costlier

In the old days; it was easy to argue that renting was more affordable on a month-to-month basis. In other words, monthly rent payments were often drastically lower than average monthly mortgage payments. That is becoming less and less true. In fact, it’s often possible to get a mortgage with a monthly payment that is significantly lower than the payment that goes along with the typical apartment lease. Renting isn’t always cheaper, and you could save a lot of money by purchasing a home instead.

Interest Rates are at Record Lows

When it comes to buying a home, interest rates have never been lower. In recent months, they have dipped down to record lows. The overall expense of getting a home loan is, therefore, considerably lower than it used to be. The same is true about home refinancing. By refinancing right now, you could secure an exceptionally low interest rate that lowers your monthly payments by a significant margin. The real estate market may not be in great shape, but low interest rates mitigate a lot of that.

Housing Prices couldn’t be Lower

In just about every part of the country, housing prices have dropped precipitously. While that is bad news for the people who currently own those homes, it’s great news for people who are looking to purchase new homes. Prices are expected to drop a little lower too. They aren’t expected to start rising again for the foreseeable future, but that doesn’t mean that you should wait. Thanks to these low prices, you can probably afford a nicer and larger house than you could even a few years ago.

Buying a House is Still a Smart Move

Whether home values remain the same or go up, buying a house is still a very viable option. Unlike renting, you will be investing your money in something that will provide long-term benefits. That is true even if you don’t end up making a lot of money when selling the house at a later date. As a homeowner, you will be able to call all of the shots when it comes to updating and remodeling your home. There is a lot of satisfaction to be had from owning a home, and there has never been a better time to buy.

The old adage, “buy low sell high” hasn’t changed, but it now has a new twist. Savvy buyers take advantage of the overall market being down a certain percentage from the high.

For example if the overall market is down 10% then a home that was $500k is now $450k and a home that was $200k is now $180k.  If you sell the second home and buy the first you lose $20k on the selling side, but on the buy you gain $50k in potential equity for a net gain of $30k. Obviously this is a simplified example, but the point is the same.

Let us know if you think this may be an option for you.  As the economy shows signs of warming up the window of opportunity shrinks every day.

This article from Homes: Sell at a loss, buy at a discount

Home Prices Increasing

What do you think?  Have we reached the bottom or is this a temporary blip?

“I wish I would have bought when the market was low.”
 
The article below sums up where the real estate market is today and makes the case for buyers to take advantage while the getting is good.

I am constantly asked what I think the Charlotte real estate market is going to do tomorrow or in the next few months.  I tell everyone if I knew where the market was going we wouldn’t be talking, I would be on my yacht making phone calls all over the world to buy and sell investments because I had the ability to time markets!

All kidding aside, I do know that all markets are cyclical and by the time we know the market is going back up it is too late to get in.  For those who are making the leap now, they may not get in at the absolute bottom, but they’ll be very happy they got in when they did.  Let me know your thoughts whether you agree or disagree.
 
Time To Invest In Real Estate!

One of the most paralyzing conditions that we, as Realtors®, have to deal with every day.  We must be out to make a quick buck.  The lowest of the low.  Scum of the earth.  How can we live with ourselves? How dare we charge a fee for standing around looking pretty while someone chooses a home to buy! I can sign those forms myself without your help, thank you very much.

We understand your feelings and preconceived notions about the real estate industry and those who choose to work as Realtors®. However – our ethics, attitudes, and concern for your investment (a home is a very large investment) may surprise you. Hard as it may be to believe, we value your thoughts, and want nothing but your satisfaction in the end.

• We are not your average real estate agents.

• We did not choose to sell real estate because it was a fun part-time job.

• We don’t spend countless hours with clients hoping they’ll buy a home – any home – just to have a sale.

• We don’t patronize our clients by allowing them to make bad investment decisions.

• We will tell clients things that they may not want to hear, but it will be something that they need to hear.

• We do take the burden of the closing process off of a client’s shoulders, and take full responsibility in seeing that the transaction is a success.

• And we value quite highly the satisfaction that our clients feel when the last document is signed.

Our client’s satisfaction is our greatest reward.  We realize that we can’t please everyone, but we do our best to make that happen.  We love our job.  Meeting people, showing them around our favorite city, allowing them into our lives for however long it takes for them to see that we aren’t smoke and mirrors – what you see is what you get.  And what you get is nothing short of amazing service, dedication, and unparalleled loyalty.

We are –

Top Charlotte Agent . . . for a reason!

At our Realtor® seminars this fall, I promised to share the updated Case Shiller numbers which came out last week, for data through August.

Way to go Charlotte! We are 2nd from the lowest in price decline, reporting an overall 2.8% decline during the past 12 months. Dallas, at 2.7%, was the lowest; with Phoenix the highest at a 30.7% decline.

Here is the updated Case Shiller report.

We’ve been delighted to meet with many firms this fall to provide an update on home design trends we’ve found across the country and what is asked for by our buyers. Additionally, we have an update on the overall Charlotte real estate market and tools to assist your resale buyers and new home buyers. I’m delighted with the feedback from many Realtors that these tools are being used to help make sales! Great news!

The seller, a house painter, knows more about selling their home than that of an experienced professional. OF COURSE HE DOES BECAUSE SELLERS KNOW IT ALL! Lets assume that their carrying cost for their mortgage is a mere $1500 per month. That equates to $54,000 of payments for this period vs. taking the offer that was $30,000 less than the asking price.

Here are some things to remember:

1.  Real Estate is no longer recession proof.

2.  Greed, not intelligence, is often the factor for loosing a qualified buyer.

3.  Good realtors® fire their sellers when they don’t listen to them.

4.  The seller may set the asking price but the MARKET SETS THE VALUE.  This one bears repeating – the seller may set the asking price, but the market sets the value!

I’d like to hear your opinion on this or any related topic.