We keep clutching our pearls waiting for the next rate drop. Then we get insulted. A zero point two five ‘drop’?? Behind some heavy mahogany door, wealthy men are laughing. That’s the picture I have in MY head.
I did a quick check of a 400K home price (which reflects a first time buyer price here in the Triangle). At a THREE PERCENT interest rate, thirty year mortgage, zero down, the principle and interest payment would still be $1687. That does not include taxes, insurance and HOA. My advice? Download a loan calculator and LOOK at what your payment will be (approximately, but close).
The problem is overly inflated house prices! The days of frantic buying are over. I heard we’re 6 months (cognitively) behind reality. We are watching more and more inventory being flooded into a stagnant market, listings sitting longer and longer, prices dropping and dropping, and buyers languishing while shopping, with no sense of urgency. My goodness, what will it take for reality to settle in? We are still ‘whistling past the graveyard’.
Builders are offering rate buy downs? That’s the same as an adjustable rate mortgage folks, and one day that rate will ADJUST to a number you may very well not be able to pay. The wording is different, the result is the same…as in 2008. Ask questions: What will my payment be if the rate goes to 7%? See how you like THAT number.
Buyers, I’m saying this: You now have leverage. Finally, you are not over a barrel. Use your leverage, and as one YouTube creator said, “Be careful not to catch a falling knife”. An adjustable rate mortgage is not always a bad thing, unless you do not understand it inside and out. My first mortgage was an adjustable rate, but at a time when rates were in the stratosphere. Nowhere to go but down. AND I could refinance anytime after the first year, BEFORE the rate adjusted, at no cost to me. Use your mind and your leverage.
Want to chat about it? It’s free to call me. I’m Brenda with Premier Advantage Realty.
If you can believe Discover the Nation, rental markets in metropolitan areas are falling, as much as 12% in some areas. Grand incentives are being offered: rent credits, large gift cards, months of free rent to sign on, and still a lot of empty units sit empty, the windows staring out at what still looks like a bustling economy. It’s a matter of time before the truth breaks forth.
Air BNB homes are either empty or being switched to properties for sale. International investors are standing by, based on new laws, high prices and astronomical special assessments in some areas. For the first time in decades, “renters are back in control”. But are they really? Costs are rising faster than wages, free months worth of incentive notwithstanding, and people are giving up on ‘traditional’ housing like renting or buying. Well what else is there?
This is being called a ‘cultural shift’. More and more people are embracing ‘off grid’ types of lifestyle. More and more people are finding out that a life in under 400 square feet is pretty good when you’re not stressing about how to make a 5 figure house payment. According to Discover the Nation, “Housing markets don’t defy gravity forever.” Some of us watched a big correction in 2008: proof. We didn’t learn a thing, except that greed lives on, no matter what. I feel the effects of that greed looming.
On a side note and keeping the cultural shift in mind, remember that people in their 30’s are focused on setting roots…buying a home, starting a family. This market makes that impossible, and could be one reason young people are so angry these days. Their expected trajectory has been destroyed.
The ones who would be rushing to the market to experience the ‘American Dream’ cannot afford to buy a home now. Jobs are not as available and student loan debt still cripples young people. Those who can afford to buy are eyeing high interest rates and just refusing to accept both high home prices and ridiculous monthly payments. Some are moving back in with parents. House prices have been ridiculously high for a long time now, too long, so one important part of society is now pushed out of home ownership or even renting. Entire groups of people are being offered ‘free housing’, which kills the market in those areas while builders keep flooding the market with product that won’t sell or rent. If I didn’t know better, I’d call that insanity.
The rental market is struggling, clearly. But it’s not just rental high rises and it’s not just luxury accommodations nobody can afford instead of sensible, affordable housing. It’s also production builders. They have finally gotten a strangle hold on resale sellers, because only the wealthy builders can offer the tens of thousands of incentive dollars they offer to potential buyers. One builder is offering up to FIFTY THOUSAND dollars to fill their inventory with bodies, while they still build, by the way, and that’s with a total of 500 to 1500 dollars out of pocket to the buyer. That surely feels like a dream to those brave enough to test that water.
One builder is using their own in-house lenders to ‘qualify’ a buyer with a credit score under 500 in order to sell them a home. Oh, and how about a 3.99% interest rate offered by builders too. Often these come with adjustable rate products which ensure that the 490 credit score buyer will lose that home to foreclosure within years. I’ve seen this before too. By the way, that house that was such a dream come true? It’s still vastly overpriced and possibly cheaply built.
But the builders and lenders have made their money. Builders have ridiculously overpriced badly built product. Loans are sold to investors who will cash in on mortgage interest over the life of the loan…until they default. Am I writing history? Does this sound familiar to you at all? Do you remember the last housing crash?? It’s starting again. When I heard the ‘under 500 credit score’ advertisement, I knew. Here we go again. The only good thing is that buyers who have had to give up hope, will get it back. In the aftermath of a crash, or even during it, buyers have all of the power, and their demands are brutal. Sellers take a beating. Personally? I’m tired of this ridiculous greed-fueled, roller coaster market. And it makes me very sad to see young people blocked out…BLOCKED OUT…of the housing market. So while I see them take revenge after a crash, I understand.
If we think the crash of 2008 was horrible…which it was… we ‘ain’t seen nothing yet’ as they say. This time, the pain will be greater and spread thicker across America. And the recovery will take longer and will look awful if it happens.
Not painting a lovely picture, am I? Well maybe I’m wrong.
I’m Brenda Briggs with Premier Advantage Realty. Reach out and let’s talk.
Ok, it’s not usually a BURGER trying to gain unlawful entry into your home. It’s usually a burglar. But you looked, didn’t you? When you think about someone breaking in to your property, the property you own, you don’t usually think of title insurance, do you? Well…two things: 1) do you really own the property?; and 2) are you sure?
Did you know that there are two kinds of title insurance you can get when you buy a property? One type, the mandatory one, is to protect the LENDER. Not you. Interesting that you pay for it, but it’s FOR the lender. To protect their investment. the OTHER kind is not mandatory, but if you don’t have it, you may be at risk. How, you ask? Well let’s look at why title insurance is needed. It is needed to protect you from
Errors in public records
Unknown liens (e.g., unpaid taxes or contractor bills)
Fraud or forgery
Undisclosed heirs or ownership claims
Boundary or survey disputes
See, we often relax into thinking that title insurance is just to find out where the property lines are. But noooooo. I could add to that list ‘easements’. Your property might have a section which allows someone else free access to drive over it to access ANOTHER property. Or there could be a sewer easement under ‘your land’ that might need to be accessed one day and if you have built a structure there, guess what’s going to happen to that structure? Note that the entity having to access the sewer is entitled to take down that structure and they do not have to replace or pay for it.
Imagine sitting in the recliner in your pajamas, watching TV before you saunter off to bed in your beautiful home, and there’s a Ring doorbell chime. You go to the door and the guy says, I’m the legal heir to this property and I want you out. Oh yeah, it does happen. Why? Because there might be ‘undisclosed heirs’. It usually takes time for them to be told their great, great grandpa’s house was sold, but if they are out there, they could show up and ring that doorbell. OR, the sheriff shows up with an eviction notice, originated by, you guessed it, that undisclosed heir.
So while you are adding up your ‘up front costs’, please include TWO title insurance policies: One for the lender and one for you. If a dispute arises, title insurance pays for legal defense and covers any financial loss — potentially saving you thousands.
Once you buy a home, you want to live in it worry-free. Owner’s title insurance gives you confidence that your investment is protected. So if the BURGER shows up, you can just eat it and go to bed.
Give me a call. I’m a real estate agent and Realtor at Premier Advantage Realty. Find me at brendasellsnchomes@godaddysites.com, or email me, text me, send a carrier pigeon. I’m here!
No need to post a picture of condo developments; you know what they look like, right? They. Are. Everywhere. Throw a rock and you’ll hit one (well, don’t throw a rock). Well, so what?
“What” is that the number of resale detached homes is lower than it used to be, as builders swerve into the multiple housing structure lane. Look around you; these structures are going up all over the place, as the push to get people to walk everywhere plays out. Personally, I’m not seeing it for me; I have to have my AC in the summer heat and well, heat in winter. These grand, sweeping ideas work well for builders, who rake in the money; but in the real world, it’s not ever the best idea. My opinion, of course. And who’s gonna carry the GROCERIES? To be somewhat fair, more people can be squeezed into a square mile this way, which is usually the goal. And let’s put a pin in inadequate infrastructure to accommodate all the new cars, water usage, sewer usage…you get the idea.
Believe it or not, there’s still a housing shortage, particularly in detached, single family resale homes. Therefore, prices of those homes are not going down. Not going up like rockets either. What IS happening is that because condos and townhomes are ‘more affordable’, resale detached homes sit on the market a bit longer, up maybe 20 days more than a year ago. And, almost half of homes sold have sold below list price, which is unusual in our brains. In OUR brains, no buyer can ever offer LESS than list price, oh no. In OUR brains, our buyers had to offer more than list price. Not now, though. Not necessarily. Now, buyers are able to offer less…that is until we listing agents realize that the price structure has changed. I will say that I have encountered two multiple offer situations already, though. Both in detached, resale homes, by the way. I predict that will become more and more common. Some people don’t want to live in a stack, and they WILL pay above list price to make it so.
Now, buyers are STILL not really getting closing costs automatically paid all or in part by sellers. But it FEELS like there’s a bit more balance in real estate transactions, notwithstanding the new compensation law. In my business, I find things to be pretty much the same. I’m happy to say that NC has always done right by clients with respect to compensation. No hidden gotchas, no sleight of hand. Not in MY world and not in my companies.
Back to condos (and townhomes). They SEEM to be less expensive, until you factor in the high HOA dues these developments carry. It might seem like a way to get first time buyers into their own home, but often, that is not reality. The payment APPEARS to work, until you add in hundreds of dollars a month for HOA dues. This market is still a very tough challenge for first time buyers who are often trying to set up the rest of their lives at the same time. The home is just one piece of the picture. Now, I find many, many more disappointed first time buyer clients who just cannot make it work. And these are smart, hard working people. Look, if you are a first time buyer, just call me and let’s talk about it. The more you know up front, the better off you will be, and the less disappointed if you don’t know the whole story by the time you start looking.
Lenders try to keep a tool chest of ‘first time buyer’ products, but even with that, those HOA dues keep buyers renting. I don’t like that at all, and I wonder where this will all end up. I envision many empty buildings at some point in the future. Or buildings that were once condos becoming apartments… rentals, in other words.
Word on the street is that some of the Grand Poobah builders are going to lessen or eliminate incentives for buyers. I am not seeing that yet, but what I am seeing is big realtor bonuses offered by these same builders. What good does it do a buyer if their agent gets a big bonus? None. I think that should be illegal. The whole home buying process is about the BUYER, not their agent.
Some builders were offering low interest rates for a while, as they worked out of a pool of cheap money they borrowed during extremely low rates. But I have a feeling those funds might be running low? Not sure. But I’m not getting the low interest rate emails I got last year; I know that. No, I’m getting ‘realtor bonus’ emails now.
Some news outlets are reporting efforts by builders to change the laws to allow them to put higher density developments in. There’s a bill. With a number. Seriously. In other words, if you think the next door neighbor’s house is too close just wait. It will get worse. Builders are a huge, rich lobby. If you want a detached home with a yard, better not wait. I’m serious about that. If there is a push to get everyone to just rent, well the direction we seem to be heading might be working. Buy your yard now, is what I’m encouraging you to do.
Bottom line is this: Buying and selling homes has not gotten easier. For us agents, it is still critical that we keep our eyes open, particularly when dealing with ‘flip’ products. Just because everything inside is new, doesn’t mean the pipes are in good shape, floor joists and roof rafters are stable, you get the idea. Make sure you have a good real estate agent! We, who are good ones, are worth our weight in gold.
Make sure your agent is on top of the statistics and the news, too. That way your negotiation position is stronger. Knowledge is power. If I can help you, I’m here, not going anywhere. I’m Brenda, with Premier Advantage Realty. I’m online and I’m at 919-210-6113.
Real estate is local. I’ve said that many times here. But what does that mean?
It means that within your state, numbers might show a median home price of $300,000. But that’s statewide. Within your metropolis, the median might be $550,000. And then within your LOCAL market, even within your subdivision, or the one you want to move to, the median might be $355,000. Okay, so what?
Well, if you look at the statewide median price, you might lock that price in your brain and not be able to afford anything at all in the area you want to move to. Why? Because that price is not your LOCAL price. You see $300,000 when YOUR median price is really 50K higher. Get it? Gotta go local.
Now let’s talk about median. Median is not the MEAN, or average. Median means line up every house in a line and put a price above it, then find the middle of that line. There it is. That’s the median. Median is not average.
How do they come up with the numbers? Just like that: make a list, find the middle. No attention to amenities in the community, no attention to the age of the house, what kind of condition is it in, ‘popularity’ of the area…none of that. And I’m just going to say it: Popularity includes low crime rate. There it is. If you buy in a high crime area, you probably got a lower home price, but you’re going to feel it when you try to sell.
Okay, let’s look at the notorious ‘price per square foot’ check box. If a home has a higher one, it might have a TON of upgrades that you will never be able to afford, or won’t be able to wedge in, later. So that PPSF might be worth it! Note that the reasons for this higher factor is not called out for you; it’s just entered in the data. Lock in on the ‘median’ and you’re gonna miss that special three-seasons room you always dreamed of having. Take a few minutes to find out how much that extra 5 bucks per square foot actually effects your payment (or ask AI) and you might get a pleasant surprise. Don’t miss out on that dream home over 5 bucks a month. Remember, you want to be happy with your home. There’s not much better than that.
There’s so much information out there that it’s overwhelming. We feel like we’re in a sea of it. The important thing is to connect these data points in the way that makes your perfect home stand out for you. That’s why it’s important to have a realtor who knows the market, and who knows how to look for hidden issues while you imagine placing your furniture. Real estate agents do that.
We are in the age of information, but you know…you know…that a lot of it is bogus. Check and recheck. And there’s still nothing like driving by the home to get a feel for the community. How much shade is there for summer heat, how is the topography? Are you in the bottom of the bowl where all of the runoff will end up in a storm? Is construction uniform? That matters! It goes straight to your bottom line, and remember when you buy, you will also need to sell one day.
Do you hate being hand-shake distance from your neighbor? Well don’t look in the middle of the metropolis! Gotta go out into the ‘banished from the kingdom’ areas (my favorite). And even those are becoming impossible to find. Do you want an acre of land in the country? Well you’re going to have a septic tank and well, for you guys who hate them.
Food for thought. If you want to chat (chatting is free), contact me. I’m Brenda with Premier Advantage Realty. 919-210-6113. And I actually like talking. I know, who DOES that?
The years 2023 and 2024 were challenging years for existing home sellers. That’s in general; there were some warmer markets. But overall builders captured the market with huge and I mean HUGE incentive dollars for buyers. The problem existing home SELLERS have is that their homes are not new, and they should not be priced alongside new or newer homes. And yet some are.
The problem I see is that often, sellers spend tens of thousands of dollars on their homes getting them ready to sell, and promptly add that dollar amount to their dream price. That NEVER works, folks. What sellers spend is actually required to bring their home back to life to be worthy of the market; it’s not icing. They replace worn out flooring, leaky roof, repair wet crawl space, put in a new water heater, update appliances…all of the things buyers EXPECT to see when they are shopping homes on the market. Today’s buyers do not want to do DIY. They want older but they want it to BE new. See the conundrum?
There’s that dirty word no seller ever hears: Market. The internet makes my job much harder in a way, because it fools people into checking the square footage box, the acreage box, the age box and POOF! There’s your home value. Not. Not not not! Please hear me when I say this: There are a thousand other things to consider when deriving a price for your home and NONE of the online home sites consider any of them. So they tell you a dream price and you buy it, hook, line and sinker.
Remember the ‘nose blind’ commercials? It’s real. But there’s ’emotion blind’ too. Buyers don’t care that your parents built this home; they don’t care that this used to be your room as a child! They have never seen this house, and they don’t see it through your emotion lenses. The automated valuation models don’t know that your back yard view is of a propane dealer or that you have termites eating your floor joists. The AVMs don’t know that there is a plan to put an interstate alongside your property line! AVMs don’t know that your kitchen appliances are forty years old, or that the bathrooms are that age too. They look at age, square footage, zip code and then they grab others with those criteria and give you an average. Most of the time, they are wrong. Read that last sentence again, please.
I’m going to say this and hope you will listen. Real estate agents see thousands of homes each year. We see the best of the best and the worst of the worst. We know how to value your home. By the way, your market is not the same as the one 20 miles away from you. Real estate is LOCAL. Know that when we come to meet you and your home, our goal is to find out your STRATEGY for selling your home. In other words, how motivated are you and why. That’s critical. And then we talk to you about the repairs you’ve had to do, the ones you plan to do, the age of the systems, what you love and what you hate about the home. Then we investigate the building materials (like Masonite or polybutylene) and whether or not you are in a flood plane. We check for easements and private streets and road maintenance agreements. And we check the HOA and covenants. ALL OF THAT makes a difference folks. All of it. AVMs do not consider them, by the way.
But the bottom line is that unless you have made your old house new in all of the ways, you cannot price it alongside new construction. Even if, may I say, the quality of construction may be better. So please, consult a real estate agent (me) and let’s just talk about it. Oh, and then please listen. I will tell you the truth. And then I will help you actually sell your home.
I’m Brenda, a real estate broker with Premier Advantage Realty. Call me.
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