Can Creditors Collect Information Beyond The 6 Required Pieces? In addition to the required pieces – Name Income Social Security Number Property Address Estimated Property Value and Mortgage Amount sought – a creditor may collect whatever additional information they deem necessary. However, as soon as you have provided the 6 required pieces, the creditor has 3 business days to provide a Loan Estimate for approved loans.
selling
Calculating Your Asking Price
When Should I Sell?
As you will see in this video, real estate marketplaces are generally most active in summer because families with children want to move in before school starts. So more homes are typically available in summer as well. But buyers and sellers tend to balance out in other seasons, too especially in todays tight market. There may be fewer buyers in late December but usually fewer homes, too. So, prices tend to rise or fall on general demand in that market rather than time of year. It is best to sell when you & your house are ready to sell. Start working with a real estate professional as early as possible to make the most of your sale in any season.
Sales Dropped last month …
On December 22nd 2015, the National Association of Realtors (NAR) released their latest Existing Home Sales Report which covered sales in November. The report revealed that sales:
“…fell 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November (lowest since April 2014 at 4.75 million)…”
That revelation gave birth to a series of industry articles, some of which quoted pundits questioning whether the housing market was slowing. In actuality, there is one rather simple explanation to much of the falloff in sales last month. It is likely the implementation of the “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which went into effect on October 3. These regulations caused house closings to be delayed by an extra three days in November as shown in the graph below.
Three days might sound like a minimal difference. However, since there are only approximately 20 days in a month that a closing would normally take place (Mondays through Fridays), losing three days constitutes well over 10% of all closings. These sales are not lost. They are just moved into the next month’s numbers. In a DS News article on the subject also posted on December 22nd, Auction.com EVP Rick Sharga explained:
“The most likely cause for the weak sales numbers is a delay in processing loans due to the new TRID mortgage requirements imposed by the CFPB. This is the biggest change in mortgage document processing in many years, and there have been numerous reports within the industry of problems implementing the process and the new documentation that comes with it.”
So how is the housing market actually doing?
A better way to look at how well the housing market is doing is to look at the Foot Traffic Report from NAR which quantifies the number of prospective buyers that are actively looking for a home at the current time:
We can see immediately that demand to buy single family homes is increasing over the last few months – not decreasing.
Bottom Line
No matter what last month’s sales numbers show, the housing market is still doing well as demand remains strong.
Call 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com .
Selling your House?
Here is what you should consider when selling your house:
- 5 REASONS TO SELL NOW
- HOW TO GET THE MOST MONEY FROM THE SALE OF YOUR HOME
- DON’T WAIT! MOVE UP TO THE HOUSE YOU ALWAYS WANTED
- THE IMPORTANCE OF USING AN AGENT WHEN SELLING YOUR HOME
- 5 DEMANDS TO MAKE ON YOUR REAL ESTATE AGENT
- HOME PRICES OVER THE LAST YEAR
- THE IMPACT OF RISING PRICES ON HOME APPRAISALS
- 5 REASONS YOU SHOULDN’T FOR SALE BY OWNER (FSBO)
- HOME EQUITY: YOU MAY HAVE MORE THAN YOU THINK?
- BABY BOOMERS FINDING FREEDOM IN RETIREMENT
- WHERE ARE MORTGAGE INTEREST RATES HEADED?
- HOW WILL MORTGAGE RATE HIKES IMPACT HOME SALES?
- TWO THINGS YOU DON’T NEED TO HEAR FROM YOUR LISTING AGENT (US)
- FSBO’s MUST BE READY TO NEGOTIATE
- FANNIE MAE AGREES: HIRE A PRO (US) TO SELL
Read full Seller(s) guide here
Call us 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com
There is NO Housing Bubble – Most Experts Agree.
There is no doubt that home prices in the vast majority of housing markets across the country are continuing to increase on a month over month basis. The following map (based on data from the latest CoreLogic pricing report) reveals the appreciation level by state:
These increases in value have caused some to be concerned about a new price bubble forming in residential real estate. Here are quotes from many of the most respected voices in the housing industry regarding the issue:
Nick Timiraos, reporter at the Wall Street Journal:
“Predictions of a new national home price bubble look unfounded for now, according to data.”
Michael Fratantoni, Chief Economist, the Mortgage Bankers Association:
“I don’t really see it as a bubble.”
Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania:
“My view is that we are a long way from another house price bubble.”
Rajeev Dhawan, Director of Economic Forecasting Center at J. Mack Robinson College of Business, Georgia State University:
“To have a bubble, you need to have construction rates higher than the perceived demand, which is what happened in 2003 to 2007. Right now, however, we have the reverse of that.”
Victor Calanog, Chief Economist, Reis:
“The housing market has yet to show evidence of systematic runaway asset price inflation characterized by home prices rising much faster than household income.”
David M. Blitzer, Chairman of the Index Committee for S&P Dow Jones:
“I would describe this as a rebound in home prices, not a bubble and not a reason to be fearful.”
Andrew Nelson, US Chief Economist, Colliers International:
“I don’t think there is a housing bubble.”
George Raitu, Director, Quantitative & Commercial Research, NAR:
“We do not consider the current market conditions to present a bubble.”
Christopher Thornberg, Founding Partner, Beacon Economics:
“The housing market is far from overheated.”
So why have prices been increasing?
Today, there is a gap between supply (number of houses on the market) and demand (the number of buyers looking for a new home). In any market, this would cause values to increase. Here are some experts’ comments on this issue:
Jonathan Smoke, realtor.com Chief Economist:
“So does that mean we’re in a bubble? Nope, that’s just what happens when demand increases faster than supply.”
Robert Bach, Director of Research – Americas, Newmark Grubb Knight Frank:
“I don’t think the housing market is overheated based on demand and supply fundamentals.”
Mark Dotzour, Chief Economist, Real Estate Center, Texas A&M University:
“We are not in a housing bubble. We are in a situation where demand for houses is much higher than supply.”
Calvin Schnure, SVP of Research & Economic Analysis, NAREIT:
“Given all the demand and little supply the residential market is FAR from overheated.”
Bottom Line
Currently, there is an imbalance between supply and demand for housing. This has created a natural increase in values not a bubble in prices. Don’t let the imbalance bubble to get you, CALL us today 786.554.8063 or email us at George@GeorgeAssal.com, you know you can count on our help every step of the way while reaching your goal faster, easier and with a smile on your face.
The REAL Reasons to Buy a Home
We often talk about the financial reasons why buying a home makes sense. But often, the emotional reasons are the more powerful, or compelling reasons. The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.
The top 4 reasons to own a home cited by respondents were not financial.
1. It means having a good place to raise children & provide them with a good education
From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase.
2. You have a physical structure where you & your family feel safe
It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.
3. It allows you to have more space for your family
Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list.
4. It gives you control over what you do with your living space, like renovations and updates
Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?
The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents:
5. Owning a home is a good way to build up wealth that can be passed along to my family
Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future?
Conclusion
Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home. We the ASSAL team are another reason for you to buy a house, while reaching your goal faster, easier and with a smile on your face! Call us today at 786.554.8063 or send us an email at george@georgeassal.com– you can count on our help every step of the way.
Don’t Wait to Move Up to Your Dream Home!
Now that the housing market has stabilized, more and more homeowners are considering moving up to their dream home. With interest rates still near 4% and home values on the rise, now may be a great time to make a move.
Sellers should realize that waiting while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs.
Here is a chart detailing this point:
With each quarter percent increase in interest rate, the value of the home you can afford decreases by 2.5%, (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
Act now give us a call to help you get your dream home. We at the ASSAL team want to make sure you get the most house for your hard earned money, while reaching your goal faster, easier and with a smile on your face! Call us today at 786.554.8063 or send us an email at george@georgeassal.com– you can count on our help every step of the way.
Selling Your Home? Price It Right From the Start!
In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their customers happy. However, we realized that telling the homeowner the truth is more important than getting the seller(s) to like us.
There is no “later.”
Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.
John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:
“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”
Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.
Don’t build “negotiation room” into the price.
Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.
Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!
One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.
A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.
Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?
The Price is Right
Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Our team will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home.
Our team will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.
Thinking of selling your home and not sure how to price it right? Call us, We at the ASSAL team want to make sure you price your home right while reaching your goal faster, easier and with a smile on your face! Give us a call today at 786.554.8063 or send us an email at george@georgeassal.com– you can count on our help every step of the way.
What is a Housing Bubble? Is One Forming?
The recent talk of Greece and its financial challenges has some questioning whether the U.S. could also return to the crisis we experienced in 2008. Some are looking at the rise in real estate values and wondering whether we are in the middle of another housing price bubble.
What actually is a price bubble?
Here is the definition according to Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania:
“A price bubble is a rise in price based on the expectation that the price will rise. Sooner or later something happens to erode confidence in continued price increases, at which point the bubble bursts and prices drop. What makes it a price bubble is that the cause of the price increase is an expectation that the price will increase, which sooner or later must reverse itself.”
Does Professor Guttentag believe we are in another housing bubble?
In a recent article, he explained:
“My view is that we are a long way from another house price bubble. Home buyers, lenders, investors and regulators now understand that a nationwide decline in house prices is possible — because we recently lived through one.”
What are home prices doing?
Though home values are continuing to appreciate, the acceleration of the increases has slowed to year-over-year numbers which reflect a healthy housing market. Here is a chart showing year-over-year appreciation since January of last year:
We can see that appreciation rates have dropped from double digit numbers to more normal rates of 5% or lower.
Bottom Line
We think Nick Timiraos of the Wall Street Journal put it best in a recent tweet:
“Predictions of a new national home price bubble look unfounded for now, according to data.”
Interested in selling your home or looking to buy one, give us a call today at 786.554.8063 or send us an email at george@georgeassal.com. We will look forward to hearing from you!
The ASSAL Team 