Today's Headlines - Realty Times

Anais Nin  “And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom.”

Move Up While The Price Is Right

For years Maynard and Marlene Mueller had yearned to move to a more upscale neighborhood where some of their friends were living.  The price tag on the monthly note would have been $800 higher than what they were paying then on their current home.  That plan was insanely out of reach for them in 2018.  

However, in the current market the Muellers considered the deep dip in the mortgage rates combined  with the simultaneous spike in their current home value. Now they finally could make the positive pivot to the bigger, beautiful home.     They sold their current home at a top price and took the $300,000 net profit and put it down on that more upscale home.  The bigger home was listed for $200,000 more than the price Maynard and Marlene could get for their old home. Their payment on the new home was higher than they were paying at the old place, but making this transition today with the lower rates today compared to 2018 made the $300 per month bump in payment very affordable--a happy day for Maynard and Marlene. 

Should we buy a home or rent?  Using Multiple Exit Strategies

Brent and Bella had been renting an apartment in an neighborhood that seemed to be attracting more crime. When they first got married and moved into the apartment the rent was less than $900 per month but now it was over $1,000 per month.  When Brent and Bella got the news they were going to have their first baby, the apartment, they realized was too small for their growing family. How were they going to buy a bigger home with a smaller payment?  

The decision to rent vs buy? Brent and Bella didn’t think they had a choice.  They talked with a realtor who explained to them that in their city, they truly could find a bigger home in the community where they wanted to live. They could enjoy a smaller payment than they were paying in rent. With a special loan program and help from family, the Beaumont’s paid down at the closing table less than a thousand dollars.  

First Exit Strategy: The realtor pointed out, was that in the neighborhood where Brent and Bella had decided to buy, home values had traditionally increased in value over time.  That meant that 3 to 5 years down the road, they could likely sell the home and buy another home if the need arose to move. 

Second Exit Strategy: The realtor pointed out, that the property the Beaumont’s were purchasing was located in a strong rising rental market.  If the trend of rising rent rates remained steady, the Beaumont’s would also have a choice of buying a new home later  and using this property for income-producing rental income, just in case the home selling market was tougher a few years down the road when the Beaumont’s decided to move to a different home. 

Third Exit Strategy: The mortgage program they were using was a government FHA assumable loan. That meant, if the Brent and Bella could not sell their home outright in a future market and they did not want to use the property as an income-producing rental, they could allow someone to qualify with their mortgage company to take over payments or assume their mortgage instead of the future buyers having to get a new loan.  If mortgage rates were much higher in the future when the Beaumont’s decided to sell, they buyers might even pay the Beaumont’s more upfront for equity to have the privilege of qualifying and taking over the existing much lower interest rate mortgage. 

The Beaumont’s had three possible positive exit strategies on buying their first home.  They could enjoy that peaceful feeling of being free and not stuck. They used a down payment assistance program from their city. They had some gift money from parents too and bought their home with about $500 down. They moved into a much larger home than the former cramped apartment with a fixed interest rate payment a couple of hundred dollars less per month than what they had been paying rent.  A very SWEET deal for the Beaumont’s and their sweet little one on the way.

Making YOUR decision

Open a spreadsheet or use the old-fashioned yellow notepad. Draw a line vertically down the middle of the page. Write the advantages of remaining where you live on one side of the notepad.  On the other side of the page notate the disadvantages of remaining where you live.  Pull another page from your notepad or spread sheet and compare advantages and disadvantages for buying a different home.

Gather answers to these questions and you will feel better prepared to make the best decision about your home plans.

1. What would it cost to remodel your home so that it meets your needs?  

2. How much time would it take to remodel your current home?

3. How much would it cost to buy your next home?  

4. How much would your mortgage payment be? 

5. How much of your savings would you need to pay down at the closing table?

6. How close in proximity would you be to your work or your school?  How close do you need to be to an aging family member who needs occasional care?

7. What are some other important considerations to compare?

Posted On Monday, 18 October 2021 00:00 Written by

It’s a very strange time for the country in general, the mortgage industry and real estate are not without their challenges as well. Some are directly linked to the other, some much more convoluted in their connection.

It’s not hard to see that rising inflation impacts everyone. If things cost more, then they cost more. Some people are fortunate enough to stay ahead of inflation with their income, others will have to do with less. The real issues aren’t just that things cost more, as much as the stress that is caused when entire budgets are blown, or opportunities are eliminated because of it. The emotional impact can be very real as rising prices take their toll.

We are seeing inflation far exceed FED targets and they have pushed their projections of inflation from “transitory” firmly into “reality” as it will not be temporary and certainly will not reverse itself when people go back to work after corona virus. Inflation is very real and the supply chain isn’t just about people just going back to work. Why? Because in August, more than four million workers just quit their jobs!

Looking into 2022 our industry must prepare for life with higher interest rates and tight supply. Not just in housing inventory, but with the ability to improve existing units or build new units. If you’re not sure what I mean, just try to buy appliances or paint! If you can find what you want, look at the cost! This reality may keep the market supply tight, and has interest rate rise, we lose purchasing power in our monthly payments.

2022 will still be a good year for purchase business, refinances will retreat and the pressure in the housing market will likely continue!

Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 18 October 2021 00:00 Written by
Posted On Friday, 15 October 2021 15:46 Written by
Posted On Friday, 15 October 2021 00:00 Written by
Posted On Wednesday, 13 October 2021 21:14 Written by


NBC Reminder Media HighRes copyWith both a law degree from Marquette University and 20 years real estate experience, Nicole offers her clients the benefit of working with an agent who really understands the intricacies of the complex real estate contracts along with the practical experience of what it really takes to list and sell a home in the shortest amount of time while maximizing the seller's proceeds.

The Real Estate Center – Pewaukee WI

Starting her real estate career in 1999, Nicole has had the opportunity to grow with and learn from the real estate market over the past twenty years. She understands the value of an education holding a law degree from Marquette University. As a licensed attorney in the State of Wisconsin and a real estate broker with the firm she founded, The Real Estate Center, Nicole sees her role as not only an advocate but also an educator. Education is empowering and whether it is assisting a client in a real estate transaction, being a mentor to agents in her firm or coaching other real estate agents and brokers around the country through Workman Success, few things bring her more joy than helping others fulfill their dreams.

A mom to her adorable and funny daughter Kate, an avid traveler with a love of the mountains and the water and always up for a challenge card and board game player, Nicole lives her life by finding joy in every day and bringing joy to others.

Details on Momentous Gift:

Momentous Gift is a not-for-profit organization with the purpose of helping other women become mothers and men become fathers. Momentous Gift was created because founders struggled with having a child and were turned down or failed so many times and then through God, someone came into their lives and offered to be a gestational carrier for them which resulted in their daughter being born.

When their daughter was four years old, recognizing the impact she had made already made on their lives, their families lives and seeing the ripple of love that has flowed from one drop, one decision to help someone, they wanted to pay that gift forward but how?

Through prayer the idea to help other women become mothers was created. Infertility is a real struggle. It is often a silent heartbreaking battle when you want to be a mom or dad but there are obstacles to overcome which may seem impossible but through God all things are possible.

Momentous Gift is here to help facilitate the creation of families because when you help a person become a parent, you also make grandparents, aunts, uncles, and cousins and a ripple of love in the world.

Posted On Friday, 15 October 2021 00:00 Written by


Olympic-Hopeful-Sable-Otey.pngSable Otey has spent most of her adult life clearing hurdles -- usually the type that are lined up single file on a running track -- but there have been a few that life has dropped in her way. When the world is your stage, you want to be at your best when Olympic gold is hanging in the balance.
She's challenged herself to earn a spot on the United States bobsled team that competed in the Winter Olympics in South Korea. In some ways, it's a major transition from track and field, her sport of choice in high school, college and one year beyond, but in other ways, her role on the bobsled team is very similar. Either way, Otey is convinced she had the athleticism, work ethic and support and made her latest dream reality.
After her pregnancy ended hopes of participating in the 2012 Olympic track and field trials, Otey figured she'd transition into life as a wife, mother and schoolteacher in her hometown of Memphis, Tenn., but then a relative suggested she give bobsledding a try. After all, the rear member of the bobsled team, known as the brakeman, often has track and field experience since a strong push with good speed is needed at the start. There are two- and four-man teams, and Otey is on the two-man team.
Otey had never even considered the sport, however. She didn't care much for cold weather and wasn't a fan of rollercoasters, but that just elevated the challenge. Having a track and field background certainly didn't hurt.
"Having that technical background in track and field. ... that has played a major role," she said. "You find yourself having to use some of those same techniques while trying to push the sled."
Otey grew up in the Memphis neighborhood of Binghampton, one of two children to Tamara Otey, a single mother who's now an Assistant Professor at Goldfarb School of Nursing at Barnes-Jewish College in St. Louis. Otey ran track at Memphis East High School and, shortly after graduating, married her high school sweetheart, Reuben, who had joined the Navy.

Reuben was transferred west to San Diego, where Otey continued competing in track and field, first at Mesa Community College in 2007, then at Cal State San Marcos in 2008, where she became an NAIA All-American while specializing in the seven-event heptathlon.
Otey was so good she earned a partial scholarship to George Mason University in Virginia, where she won a Colonial Athletic Association title in the heptathlon in 2010, thanks to wins in the 400 meters, 800 and 100 hurdles.
Her track and field career continued to spike even after graduation. Running unattached in 2011 at the nationally renown Mt. SAC Relays in Walnut, Calif., she posted a lifetime-best score in the heptathlon of 4,953 points, aided by a personal-best wind-legal time of 14.08 seconds in the 100 hurdles (she ran a wind-aided time of 13.82 the following month at the Occidental Invitational in Eagle Rock).
Otey was well on her way to earning a spot in the Summer Olympic trials the following year, but then learned she was pregnant and was forced to curtail her training.
Otey couldn't bear to watch the 2012 Olympics in London, instead turning her attention to training other athletes, as well as furthering her education by earning a master's degree in education at National University in 2013.
Otey and her husband also headed back to Memphis with their baby boy, Amar'e, where she landed a job as a health and physical education teacher at a local elementary school. Otey figured that would be her life moving forward, but then the chance to be a bobsledder reinvigorated her Olympic hopes.

Olympic Bobsled Training

Then there's the soothing ice baths a couple times a week.
"After you do all that, all the pounding and things like that, you need to make sure that you're doing recovery," she said. Dr. Patrick Kolwaite, owner and practitioner of two The Joint Chiropractic locations in Memphis (Wolfchase and Collierville), has also become an important part of Otey's recovery.
"I was going there a couple times a week to get adjusted, and that really helps," Otey said. "When my tailbone gets kicked out, or anything gets out of whack, I can feel it. When you're used to getting good therapy, you can feel when something's out of place."
Fortunately for Otey, there’s not a lot that’s out of place.
Flexibility is a key to remaining injury-free, and performing to, literally, the gold standard.
And that would be bad when you’re going for gold.
Currently she and her husband Reuben Otey are the owners and operators of the Triple M Agency located in Cordova Tenn where they help families, especially African-American families to learn about wealth building and entrepreneurial financial fitness tools. Both are Life Insurance entrepreneurs helping both their community and Memphis become more fiscally secure.

 

Posted On Wednesday, 13 October 2021 00:00 Written by
Posted On Tuesday, 12 October 2021 00:00 Written by
Posted On Wednesday, 13 October 2021 00:00 Written by
Posted On Tuesday, 12 October 2021 00:00 Written by

Nicolas Manetta-“Those who don’t think outside the box are easily contained.”

“We have reached a tipping point,” real estate market experts are saying.   They point out that more homes are being listed for sale, and the prices are still rising, but not at the double-digit frenzy we have seen over the last year.

Homebuyers are stepping back into action and making offers on homes now that there may be only five competing offers on the house they want instead of twenty-five offers.

Buyers want to lock in a fixed mortgage rate in high two’s or three’s to give themselves an affordable house payment and a design on building their personal wealth.  

Home sellers sitting on the fence are now staking the “For Sale” sign out in the yard.     While home prices are high and demand is red hot, sellers want to realize the highest profit and not regret later that they did not sell high when they had the chance. 

Home prices and borrowing costs that continue to climb crimps affordability on homes for sale.  Homebuyers who are committed to get the life they want have to think outside the box.  If the home that fits their design is too high for their budget, they look for a home that they can convert to their desired design.   

Some homebuyers find a lower-priced fixer-upper home. We put together the special loan programs it requires to finance the purchase and the fix-ups.  

Others find homes that have not been refurbished in 30 years. If that house is surrounded by homes that have been remodeled and updated, then the chances are good they can buy it at a lower price and remodel gradually over time to get the home looking like they like it.

Then there are people like Charlie and his wife who were budget-conscious.  Charlie was in his 30’s with a wife and a young child and another baby on the way.  “The house we are in is a little cramped now, but when the baby is born, this house won’t work for us at all.”  He talked about a neighborhood where he and his wife were looking at houses.  

When I asked him questions about the price ranges of the homes in the neighborhood he was describing, his voice sort of trailed off. He didn’t finish his sentence. Then, without any warning, he just blurted out, “I don’t really want to buy an existing home anywhere.  What I really  want to do is build the house the way we want to live in it.”

When he asked which financing program would be best for him, my answer was the one he already knew to be true before he ever asked. The real question was, “Where will you be happiest—in an already built home or the new construction home you design yourself?”

So many times, the best deal ever is the one where you follow your heart and figure out for yourself how to make it work.   Charlie and I started working on the money down and the payments per month if a builder built the house he wanted out in the country.  Unfortunately, the home they wanted was just too pricey for their current budget. 

After looking at a few ideas, he finally decided that he could afford to build the house they wanted if he didn’t finish the attic and left the bonus room unfinished.  Charlie and his wife could finish that part later 

“With small children, I wouldn’t want them trying to navigate stairs anyway. Then, when the children are a little older, and I have a little more saved back, we can finish out the upstairs, and it will be like having a brand new house.” He planned to consult with a realtor who knew the values in the area. He was going to get with a builder and then come back to me with some prices and terms we could compare on putting together his mortgage terms. 

As real estate and financing professionals, we have to open up the box and encourage customers to find ways to get the home they want with the financing they can afford. To help remember the most clever ideas, consider keeping a digital notebook of methods former clients and other pros have used to break through affordability barriers.  


Jo Garner, Mortgage Loan Officer  NMLS#757309 Sierra Pacific Mortgage Cordova, TN NMLS #1788 (an equal housing lender.)  Host of iHeart radio show Real Estate Mortgage Shoppe. Author of “Choosing the Best Mortgage-The Quickest Way to the Life You Want” available on Amazon, Barnes & Noble, and on www.JoGarner.com 

Posted On Monday, 11 October 2021 00:00 Written by

Now is an important time in our industry to pay attention to the numbers, the charts, and especially the political rhetoric on all sides. I don’t remember a series of potential market movers and known events all happening in the next week, but any or all of these could dramatically move the markets.

First, lets look at where we are to see where the mortgage markets sit as of 6am 10-7-21 when I am writing this: UMBS 30yr 2.5% is 103.05 – 10yr T is 1.52. In the past year the High was 105.63 on 1/4/21 and a low of 102.20 on 3/19/21 and the 10yr T was 1.71 on 3/31/21 and .709 on 10/14/20 Just a point of reference and charts you can have available to share with your clients. We also saw refinances drop 10% week over week and down 16% year over year with rates only being about .125% higher this year. Market certainly volatile and the trend is for rates to go higher. Case-Schiller nails home values up over 19% year over year.

Events that can move the markets. 

  • Today 10-7-21 initial jobless claims
  • Friday 10-8-21 September 2021 Jobs Report
  • Next week – 10-13-21 – CPI report & 10-14-21 PPI

Ongoing movers can include:

  • New conforming loan limits for 1-1-22 $625,000
  • Debt Ceiling
  • Is $3.5 TRILLION DOLLARS really ZERO?
  • Will “Infrastructure” Bill ever get passed?
  • Supply chain getting better or worse?
  • Southern Boarder/COVID/Vaccines/Boosters/CRT/FBI targeting parents…

 

There is a lot to talk about. Questions or comments: Mike@IMTcoaching

Posted On Monday, 11 October 2021 00:00 Written by
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