Real Estate Survival Guide With Terry Story podcast

Real Estate Survival Guide with Terry Story

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State Secrets: Inside The Making Of The Electric State

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Family Secrets: Chris Pratt & Millie Bobby Brown Share Stories From Set 22:08

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Host Francesca Amiker sits down with directors Joe and Anthony Russo, producer Angela Russo-Otstot, stars Millie Bobby Brown and Chris Pratt, and more to uncover how family was the key to building the emotional core of The Electric State . From the Russos’ own experiences growing up in a large Italian family to the film’s central relationship between Michelle and her robot brother Kid Cosmo, family relationships both on and off of the set were the key to bringing The Electric State to life. Listen to more from Netflix Podcasts . State Secrets: Inside the Making of The Electric State is produced by Netflix and Treefort Media.…

Real Estate Survival Guide with Terry Story

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Terry Story’s Real Estate Survival Guide podcast includes her weekly round-up on NPR's "The Steve Pomeranz Show," WLRN and affiliates. The show provides expert advice in all aspects of the real estate transaction from listing to negotiations; to sales and purchase and everything in between.

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Real Estate Survival Guide with Terry Story

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Real Estate Survival Guide with Terry Story

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How The Real Estate Industry Keeps Changing To Help You 6:50

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May 13, 2020 During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams, about how the real estate industry is adjusting to innovatively conduct business during the coronavirus pandemic. Realtors Getting Innovative Steve first asked Terry to talk about one big change in the real estate industry—big conference calls between agents all across the country. “We have giant conference calls each week. We try to find out what each agent is hearing and seeing. A lot of agents have started doing webinars to show first-time buyers what their options are or straight-out buyers that we can still get them into the home they want, pandemic or no pandemic.” Terry shared. The most important thing about this innovative approach is that the essential information still gets to the potential client while practicing social distancing. Terry, herself, decided to get ahead of the game by carefully tracking home sales in Palm Beach County. “As realtors, we’re foot soldiers,” she said. “We know what’s going on in the industry before any reports reflect it. With this information, I can spot a trend before it’s reported as a trend.” How Buyers Can Help Themselves Getting innovative during this pandemic is something you can and should do, too, if you’re a prospective home buyer. Terry explained, “You’re going to have an area in mind. You can get a real sense of the neighborhoods in that area without ever leaving your car. Drive around. Use Google maps to find spots of interest such as restaurants, shops, and schools. Pay attention to things like traffic patterns. Remember that once you move, traffic is going to get heavier once everyone can be out and about freely. And use online databases for neighborhood data and statistics.” Steve added that using Google maps to actually see what a neighborhood looks like can be a big help to someone looking for a new home. Getting proactive now will help you get a sense of what it would be like to live in different areas. This will help you narrow down what homes are actually of interest to you. Then, once you’ve settled on a neighborhood that meets your needs, call a realtor to get professional advice. They’ll be able to help you find homes that will work for you and set up virtual tours. To learn more about buying or selling a home, visit https://teamterrystory.com/ or call Terry at 561-945-4348.…

Real Estate Survival Guide with Terry Story

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The New Normal for Buying A Home 7:07

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May 6, 2020 During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams in Boca Raton, about what the process of buying and closing on a home sale looks like in the coronavirus environment. How Home Buying All right, so we start with a listed property. Terry explains, “I would have already made videos of the home and taken my buyers on a virtual tour. Then, if they’re seriously interested, I arrange for them to do an actual real-world tour of the property, complete with mask, gloves, and even protective booties for their feet.” Neither the buyer’s agent nor the seller or their agent can be inside the property when the buyer is doing an in-person tour. Social distancing, right? This is far different from the way it’s traditionally done, and it requires some trust. Terry noted that “We’re letting strangers into someone’s home, unsupervised, and the buyer and seller are being exposed to each other—possibly being exposed to the virus.” Terry pointed out that the positive thing about all of this is that the seller can pretty well safely assume that the buyer is a very serious, motivated buyer. Otherwise, they wouldn’t be willing to go through all these obstacles—the mask, the gloves, etc. Terry continued explaining the procedure. “Let’s assume the seller’s agent knows the buyer by now and that the buyer has been qualified—really qualified, not just a pre-qualify. We’re talking about having proof of funds. That means that if the buyer is paying cash, then they’ve got the money in their bank account right now. If they’re financing buying the home, then they’ve been approved for the financing. It’s solid. They have a mortgage loan that’s been approved. The seller’s agent is going to, like, hold the buyer’s driver’s license while the buyer goes into the home, by themselves, for their do-it-yourself tour of the home.” Steve added that getting that mortgage loan approval is noticeably more difficult than it was before the coronavirus hit. For example, because people’s employment situations are more uncertain, the bank is going to check on their income and employment situation not just when they apply for the loan but all the way up to right before closing, right before everybody signs everything and the bank hands over that big check. Mortgage lenders are really just doing their due diligence. It’s just that things have changed, and the reality is that the buyer might have had a job when he first applied for financing, but he might have been laid off before we got to the closing. The lender is going to look at more than just the buyer’s assets or salary; they’re going to dig deeper and find out, for instance, if the buyer is considered to be an essential worker. Terry summed things up by saying that the bottom line is this: it’s an agent’s job to act as a transaction broker. She said, “It’s my job as a listing agent to make sure that I’m bringing people to meet with the seller who is qualified and highly motivated to buy, especially right now.” Getting To The Closing Steve asked Terry to continue describing the step-by-step process of closing the sale. Once a qualified and motivated buyer is brought together with an eager seller, the next step is to come to an agreement on price. At that point, the process pretty much continues like it always has. As Terry explained, “It’s time for an inspection period. But one change is that inspection periods aren’t taking as long as they used to. They’re now typically a week or less, instead of ten days because inspectors just aren’t as busy these days.” The lending process, from the agent’s point of view, is still basically the same, “Except,” Terry said, “that we’re checking on it every few days, calling the lender to make sure the money will be lent in a timely fashion. That could be a potential area of concern when you consider the strain that the coronavirus pandemic is putting on everyone.” Terry explained that, in general, the name of the game is really just staying on top of everything, staying in touch with each party involved in the process to be sure that everyone is still on board. “We need to make sure that everyone still wants to be in on the deal, that everyone is still motivated and working toward the same goal of getting to the closing table. Frankly, we’re communicating more than we ever have before with the other realtor, just to make sure that we’re all still on the same page and that everything’s getting done properly.” Sealing The Deal Staying on top of each stage of the process is critical in preventing the sale of the home from falling through. As the process moves along, the final stage is the closing itself. This is another part of the process that’s changed as a result of the coronavirus. Terry informed listeners that, “Closings can basically be done remotely now. Certain lenders have approval to close on a home completely remotely. The biggest issue is that some documents have to be notarized. But as we deal with more closings in this way, we’re learning how to get things done as smoothly as possible. The title companies are moving toward going completely digital, but if need be, someone from the title company will go out to the buyer to have documents signed. Agents are becoming couriers, doing whatever it takes to get all the necessary documents signed. We’re doing whatever it takes to get the job done and close on the home.” Typically, the agent gets the seller to sign all the documents first, and then they get the documents to the buyer. Some lenders are sending a lot of the documents to the buyers in advance so that at the closing table there are fewer documents to sign. Once payment clears, the agent might have to be a courier once again to make sure the keys to the home get to the buyer. If you’d like to learn more about buying or selling a home, visit https://teamterrystory.com/ or call Terry at 561-945-4348.…

Real Estate Survival Guide with Terry Story

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The New Rules of Real Estate in the Time of Quarantine 7:28

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4/15/20 During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams, about the state of the real estate industry and how agents are being affected during a time when most states are under mandatory quarantine. The Rules Have Changed With the majority of the country in quarantine, the rules have changed for the real estate industry. Though agents are considered essential workers, they have to follow different guidelines when helping clients find a home. “We’re not allowed to be in the house with a client when showing it,” Terry said. “The seller can’t be in there either. We’re allowed to show up and let the client in. Only the buyer can be in the home.” But the majority of agents are taking even further precautions to help prevent potential spreading of the novel coronavirus and maintaining social distancing. “Most agents have created walking tours of homes ahead of time to offer clients. It’s only once they’ve expressed serious interest about the home that we invite them to tour in person. We also have sanitizer, gloves, booties, and other protective elements to help do our part to stop the coronavirus pandemic,” Terry said. The video walking tours are popular online features anyway. They let agents show potential buyers a home room-by-room without the agent or buyer having to be in a location at a specific time. These virtual tours are especially helpful now and can be made more personal for specific clients. Terry added, “Despite everything that’s going on, homes are still being looked at, bought, and sold. We just have to adapt and keep everyone as safe as possible.” Prices And Inventory As can probably be expected, prices and housing inventory are being affected by the coronavirus pandemic as well. Terry said, “Prices are coming down. But as I’ve said before, you tend to get more and more quality offers when you lower the price of a home. However, I have seen some lowball offers. I have a property on the market for $740,000 and there was a $350,000 offer. We know times are hard, however, this is a precedent that we’re not going to set.” “And no one’s at that level of desperation just yet,” Steve added. But there are a lot of questions. How long will the recession last? How long will people be out of work? What will the economy look like in a few months? Prices could continue to take some hits and inventory is affected also. Terry said, “Right now, we’ve been in a buyer’s market. We’re down to like three months of inventory, which is extremely low. A balanced healthy market is at six months.” Steve pointed out the additional fact that people who are quarantined in their homes aren’t going to be able to sell. It’s Terry’s hope, however, that potential sellers will take advantage of the opportunity available to them. “With inventory down, now is a great time to sell. There are more people competing for fewer houses, which means more offers. If more sellers think like this, we’ll be able to boost inventory levels.” Mortgages Despite what’s happening in the world, it’s still relatively easy to get a mortgage if you’re buying a home, provided you qualify. The only situation where this isn’t quite as true is with jumbo mortgages. “Jumbo mortgages, at least in my market, are mortgages over $510,000. Lenders end up putting deals together and then selling them on the secondary market,” Terry said. Steve offered some additional info on jumbo mortgages: “A mortgage broker told me that banks, hedge funds, and even some private investors typically buy these mortgages. But many don’t want to get stuck with such long-term mortgages at the low -interest rates being offered with so much uncertainty.” All of this means that you really need to consider what type of home you want and need and whether you can afford the home without a jumbo loan. If you’re going to need significant financing, it might be better to wait. If you’d like to learn more about buying or selling a home, check out Keller Williams !…

Real Estate Survival Guide with Terry Story

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A Home Buying Guide for Reluctant Millennials 7:34

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During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams, about how overwhelming buying a home can feel for millennials. The two discussed some of the things that millennials need to know before buying a home. Buying A Home As A Millennial With the current state of the real estate marketplace being somewhat tricky to navigate, it’s even more difficult for millennials, some of the youngest homebuyers in the game. Terry said, “The biggest reason millennials feel so overwhelmed by the prospect of buying a house is simply the fact that they haven’t had the proper education.” The thing millennials need to understand is that it doesn’t have to be that complicated. Get yourself connected to a good realtor. They will be able to put you in touch with a good lender. Or vice versa. If you start with a lender, you can see what financial resources you qualify for. Then the realtor can help you find a home in your price range. One additional factor to keep in mind is the fact that 70% of millennials surveyed were familiar with the housing market crisis of 2008 and about half actually knew someone who lost their home. Steve commented, “That kind of leaves an indelible stamp on your brain. It takes a while to have new experiences to kind of remove those old feelings.” Terry added, “It’s important for millennials to understand that we’re not in the midst of the same type of crisis and that interest rates are incredibly low right now.” That means that it really is a good time to buy, provided you educate yourself and stay within your means. Realtors are also seeing that millennials are getting a good amount of parental support when it comes to buying their first home. Sometimes it’s in the form of house hunting, but more and more, parents are helping their kids out financially. Understanding Costs The other major aspect of buying a house (especially versus renting) is what the house will actually cost. Remember, interest rates are low right now. “It’s cheaper to buy a home at a higher price with a lower interest rate; a 1% difference in interest rate equals a 10% difference in affordable home price,” Terry said. People tend to fixate on the dollar amount attached to a home price. But, for example, if you could afford a home that’s $400,000 and interest rates drop by 1%, you could ultimately buy a home valued at $440,000 for the same cost. Terry emphasized the point that “You have to look at the total cost to purchase, not just the price.” “As interest rates come down, a sort of antigravity field is created around asset prices and prices go up. As interest rates rise, gravity is increased on asset prices and prices will come down,” Steve said. What does this mean? You need to think about the price of a home in terms of how long you’re going to live there. If the price of the home you buy comes down, will you have enough equity or will you be in the home long enough to wait out a cycle? Terry noted, “I typically tell people not to purchase a home unless they plan on living there at least five years.” If you’d like to learn more about buying or selling a home, check out Keller Williams !…

Real Estate Survival Guide with Terry Story

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Watch Out For Housing Myths That Can Lead You Astray 8:44

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Real Estate Survival Guide with Terry Story

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It’s A Great Time To Be Living In America: Enjoy It 8:11

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Real Estate Survival Guide with Terry Story

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Steve And Terry Tackle The Questions You Never Knew You Needed To Know 8:41

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Real Estate Survival Guide with Terry Story

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The Secret To Successfully Flipping Homes 6:49

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Real Estate Survival Guide with Terry Story

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The Hottest Places To Invest In Real Estate 7:28

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Real Estate Survival Guide with Terry Story

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Sell Your House For Cash Today—It’s All The Rage! 7:46

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In this week’s Real Estate Roundup, Steve and Terry Story , who’s now got 31 years of experience with Keller Williams Realty in Boca Raton, had a conversation about selling your house quickly for cash. They also talked about the effects of aging baby boomers on the housing market. Sell Your House For Cash Today You’ve seen the signs on billboards or posters that read, “We Buy Ugly Houses”, or just, “Cash for Your House”. Steve asked Terry to explain the nature of that part of the real estate business. She calls the people in that business “wholesalers” because that basically describes how they make their money. They look to buy houses at “wholesale” prices and sell them at “retail” prices. Terry explained how it works. “They buy houses, sometimes fix them up and then flip them, or they just buy them and flip them the same day. Say you want to sell your house right now. You call one of these numbers you see in an ad, and they write a contract to buy your house. A lot of times they assign it to a real buyer they already have lined up. As a seller, what’s really important to understand is that you’re selling your home at a severe discount.” How The “Cash Right Now” Business Works A successful real estate wholesaler makes their money by buying houses at a large discount and then quickly reselling them for a hefty profit. They can get a low price because they’re offering cash, and they’re offering to do the deal right now. If you’re a strongly motivated seller, for whatever reason, the offer of cash-in-hand right now may make you willing to sell your house for a lot less than it’s actually worth. Steve offered an example to clarify things for listeners. “Say I’m in this business, and I have a buyer already lined up, willing to pay, let’s say, $140,000 for this house that’s worth $150,000. I go to the house. Maybe it’s owned by an elderly person who’s owned the house free and clear for years. I tell them, ‘I can give you cash today, no hassles, no long real estate closing time. I’ll give you 30 days to move out or whatever and I’ll give you $90,000 for your house.’ And they may think, ‘That’s good cash. That’s more cash than I’ve ever seen before.’ If the homeowner takes the deal, then I’ve already got a $50,000 profit locked in, since I have a buyer waiting with $140,000.” The huge discount from the home’s value may make this kind of transaction look bad, like the buyer is maybe taking advantage of an elderly person, but there’s nothing illegal about it. Terry stressed the point that what homeowners need to know is that even if they’re desperate to sell their house quickly, they should still take the time to consult a professional real estate agent and get an appraisal. That way, she said, “If you still decide to sell it, at least you’re informed.” Steve agreed, urging sellers to at least do some minimal research on what their home is worth. He said, “I mean, at least go on online and pull up Zillow or something.” That specific bit of advice prompted Terry to note to listeners that sites like Zillow don’t really provide accurate home values. The numbers you see on a site like that should be ignored as valid appraisals and only taken as very rough numbers. Those numbers are neighborhood averages. Zillow hasn’t really seen your actual house. For instance, they don’t know if you’ve completely remodeled the kitchen or the bathrooms. You might have a house right on the beach, but Zillow is averaging prices in the neighborhood that includes homes that are four or five blocks off the beach. The Effect Of Baby Boomers On The Housing Market Steve next turned the subject to the impact of aging baby boomers on the housing market. He started things off by quoting some recent statistics, saying, “Basically, boomers own one-third of all US properties, single-family homes and the like. And 27% of them will sell their home sometime within the next 20 years.” Terry contributed some more information: that between 2007 and 2017, roughly 730,000 homes were offered for sale by seniors, those over 60. She added that this is a trend that’s projected to keep growing for the next couple of decades. According to Terry, “From 2017 to 2027, they anticipate that number rising to 920,000 homes. And then from 2027 to 2037, we’re looking at 1.17 million homes for sale by boomers – and that’s per year for that whole decade.” She then made the point that this could lead to a really nice buyer’s market, since adding that many homes to the “for sale” inventory should put downward pressure on prices. Terry wrapped up their conversation by joking with Steve, saying, “So, call me now to sell your house while prices are still up. Don’t wait 20 years.” To learn more about buying or selling your home, you can connect with Terry at Keller Williams Realty .…

Real Estate Survival Guide with Terry Story

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The Ins And Outs And The Ups And Downs Of Airbnb 8:05

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During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams about the rise in popularity of Airbnb, a company that allows people to open their homes like a hotel or bed and breakfast. The two discussed where in the country the most Airbnbs exist and the rules regulating them. They then talked about the mortgage industry and the true story behind The Big Short. Airbnbs—As Always, Florida Is In The Mix Regardless of the category—and specifically when it comes to real estate—Florida is always at the top of the list. True to this, Florida has the most Airbnbs of any state. Miami Beach, despite fairly strict rules regarding Airbnbs, has among the most of any city. Also on the list: Orlando (which makes sense because of Disney World), Kissimmee, and Sarasota. The cities are measured and listed based on an Airbnb-to-resident ratio. Terry clarified some points for homeowners about offering their home on Airbnb, such as the fact that they can prohibit guests from doing things such as smoking in the house. The Big Short In the early 2000s, a group of hedge fund guys viewed the real estate market as becoming a little crazy. They decided they could take advantage of the situation by betting against mortgages by selling short. (This was immortalized in the book-turned-movie, The Big Short ). Basically, they delivered borrowed mortgages which they would eventually have to return to the market to buy equivalent mortgages in order to close out their short-sell transaction. The theory behind their selling short was that they would be able to buy back the borrowed mortgages sold when mortgage prices were much lower. When you sell short, you make money when the asset price goes down. These guys took an incredible amount of risk, especially during the early 2000s when the market was in a bubble. Many people believed housing prices would continue to go up and that selling short was a terrible idea. Although they were wrong for a long time and had to weather severe financial distress to maintain their short position in the mortgage market, ultimately, they were proven right. The housing market crashed, mortgages prices tanked, and those guys made a fortune. Something of notable concern now is that one of the “big short” investors is betting against mortgages again. Previously, the reason for the short sell was the fact that people were getting mortgages that never should have been given one in the first place; the market was bound to crash. Today, his reason for short selling is his belief in climate change. More specifically, this short-seller thinks that there are a lot of homes susceptible to flood damage that may occur as a result of climate change. Many of those homes are in Florida, as well as in California and Texas. His belief is that the mortgages on many of the homes are simply too big relative to the risk of losing the home to flooding. Only time will tell whether he’s right again. If you’d like to learn more about Terry or buying or selling a home, head over to the Keller Williams website.…

Real Estate Survival Guide with Terry Story

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Here’s How To Price Your Home So It Sells 7:30

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During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams, about why it’s so important for real estate agents to look at the big picture to understand how the market is moving. They discussed how each realtor needs to examine their own inventory and how it’s selling in order to get a better understanding of the current state of the housing market. Doing this also helps real estate agents teach sellers how to price their homes. Pricing Your Home To Sell Is Counterintuitive To understand how to price a home, you really have to know what the market is doing. Agents have to look at what’s happening with their own home inventories. Are homes selling? How long are they staying on the market? If a home is sitting on the market, not selling, then you have to figure out what it will take to move it. The economy as a whole has to be considered, of course. But, this is an important point for home sellers to keep in mind, in both good and bad markets, there is always a buyer. The thing that really makes the difference, that decides whether your home sells, is the price. Terry talked about meeting with sellers when they want to know what price tag to put on their home. She paints them a picture. Imagine there’s a boat and three men are fishing. The first man’s line is just below the surface of the water; the second man’s line is halfway between the surface and the ocean floor; the third man’s line is near the reef at the bottom of the ocean, where the majority of the fish are. The moral of this story is that the lower line (the lower price) is going to have a better chance to catch a fish (buyer). The less a seller asks for, the more they’ll end up getting. Home pricing is counterintuitive in this way. People who price their homes in the upper and middle tiers aren’t going to attract as many buyers because the price is just too high. The National Association of Realtors says that if your home hasn’t been shown in the past two weeks, you’ve been knocked out of the market. The only real way to combat this is to lower the price. A lower price will attract more buyers, period. And more buyers equal more competition, more bidders, and, thus, realizing a higher sale price for your home. Counterintuitive pricing! You Have To Go Where The Buyers Are In order to sell your home, you have to meet buyers where they are. And most of them are in the low-to-mid-range when it comes to prices. The mid-range homes are tricky. Homes priced at the lower end of that might have quite a few showings, maybe eight or ten in a week. But, going back to the fish analogy for a minute, the fishing line halfway between the top and the bottom is kind of housing market purgatory. In fact, homes priced in the middle range sometimes help sellers in the lower range sell their homes faster and more easily. People may look at homes in the middle-price bracket, but if they can find something similar in a lower-price range, that’s what they’re going to snap up. You can also think about it in the sense of animals in the desert. If a predator wants to get a good meal, it has to go where the water is. This is where more animals are going to gather, which offers the predator its best chance of getting a meal. You have to price your home in a way that gives you the greatest access to the biggest pool of buyers. Factors Real Estate Agents Should Be Looking At There are really three prongs to pricing that real estate agents should be looking at: current market prices, the price of homes sold in the past, and the trends that are happening that predict future prices. In order to spot future trends, you have to look at “days on the market.” This is the average amount of time a house spends on the market, from the day it goes up for sale to the day that it closes. Right now, in Boca Raton, we’re seeing about 97 days on the market. Knowing how long homes are on the market, how quickly they’re selling, helps you predict future trends. Of course, we’re talking about looking at days on the market for hundreds of thousands of homes. Then you have to break it down a little further, into price points. The lower the price of a home, the more activity there’s going to be. As the price point goes up, activity slows. The big stressor for most sellers—and the agents they work with—is that, naturally, they want to get the most money they can for their property. It’s important to be at the market, not over and not under, unless it’s critical to get the property sold in a very short period of time. Agents need to help sellers price their home in the sweet spot. This attracts the most buyers and, in the end, helps sellers get the most money for their home. How do you know if you’re in the sweet spot? If you’re getting eight to ten showings a week, then you’re there. If your house hasn’t been shown at all for two weeks, you’re not and you need to adjust the price. If you’d like to learn more about buying or selling a home or to learn more about Terry, check out Keller Williams .…

Real Estate Survival Guide with Terry Story

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Today's Housing Market Indicates A Strong Economy 7:39

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During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams about the cyclical nature of the housing market. Just like the stock market, the real estate industry is cyclical, with housing prices oscillating back and forth between periods of rising prices and falling prices. Terry and Steve talked about how the real estate industry is often a good economic indicator, revealing how the economy is doing and what direction it might be headed. Watching The Trends When you’re trying to gauge how pretty much anything is doing, you watch out for trends or patterns. This is especially true when you’re trading in the stock market or thinking about buying a house. A lot of people are asking when the next recession is going to come. Right now, the stock market is at all-time highs. But the prolonged, substantial bull market has some people starting to worry. “Have prices topped out? Do I need to sell now?” We all know that the stock market is viewed as an economic indicator. The real estate industry is similar in that way because overall economic conditions affect the real estate industry just as they do the stock market. That means that housing prices are also an economic indicator, as they reflect how the overall economy is doing. Housing prices never stay flat for long; they’re always either going up or going down. Real estate agents look at the trends: units, pricing, everything. Are they going up (higher home prices, fewer days on the market, more sales) or down (lower home prices, sitting on the market longer, lagging sales)? What The Real Estate Market Is Telling Us Right Now There are always unknowns, variables that affect trends in the housing market. But what we can see right now is that the market is really strong. Low-unemployment levels coupled with super low-interest rates and homes in an affordable price range are key factors in the current market. Homes are starting to get priced higher, something that would normally lock out more buyers. But that’s not happening at the moment because interest rates are at an all-time low. They’ve dropped a full percentage point over the last year. For homebuyers, a simple interest rate drop of 1% means they can afford a 10% higher home price. It’s a big deal. If you look at the stock market, as interest rates go down, we see asset prices rise. This is what’s happening in the real estate market, too. People can borrow money cheaply, meaning they can borrow more and buy bigger and better homes. But this is a bubble that will pop eventually. What we’re going to start seeing is a mismatch between median annual income and median home prices. But because interest rates are so low, the median-home price isn’t being adjusted in line with income. Eventually, if median income doesn’t start to rise, the median home price will have to adjust downward. The market will start to reverse itself. Or if interest rates start rising, that will change the trajectory of the market, too. Steve noted that the good news for the moment for homebuyers is that the super-low interest rates mean that even though home prices are rising, homes are more affordable. And the good news for sellers is that home prices are up. They can ask top dollar for their homes and probably get it. If you’d like to learn more about buying or selling a home or to learn more from Terry, check out Keller Williams !…

Real Estate Survival Guide with Terry Story

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Get To Know These Important Real Estate Acronyms 8:06

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During this week’s Real Estate Roundup, Steve spoke with Terry Story , a 31-year veteran at Keller Williams about some important and interesting terms in the real estate industry. These terms are often simplified into acronyms to make them easier to remember. Understanding what these terms mean is important for you if you’re buying or thinking about buying a home. They also briefly discussed some signs to look for to determine if the housing market is rebounding or not. APR And FRM APR stands for the annual percentage rate. It’s what you pay annually for borrowing money. This is based on the amount of the loan, the interest rate on the loan, and certain fees that are attached to the loan. So, for example, if you go to buy a car and take out a loan with a loan rate of 3.5%, the APR might be 3.75%. The APR is different because it takes into account not only the interest rate you pay but also any annual fees that may be attached to the loan. The same happens with a mortgage. You borrow a certain amount of money and have interest and fees attached to the loan. The APR tells you the amount, as a percentage of the loan, that you’ll actually be paying yearly. This is important to know because it helps you get a better sense of exactly what your expenditure is going to be. FRM stands for fixed-mortgage rate. This term is pretty simple and is typically sought after by a lot of mortgage seekers because it means the interest rate attached to your loan doesn’t change. From one year or one payment period to the next, the rate stays the same. DTI – Debt To Income DTI refers to the debt to income ratio. This is a financial metric that reflects the percentage of your monthly income that goes toward paying your debts. If you’re buying a home, lenders prefer limiting a home loan to no more than about 36% of your income. There are variables when it comes to the true percentage that lenders will recommend that you spend. These variables include things such as other significant debts and your credit rating. Why wouldn’t lenders want you to spend more? This is pretty simple: they don’t want you to go broke. This is bad for you and bad for them because it means you’re less likely to be able to pay off the entirety of the loan. If it’s a loan that requires collateral, they get something back, meaning they can foreclose on your home, but they may not get back the entirety of the money they lent you, and they have to go through the hassle of trying to then sell your home. PMI – Private Mortgage Insurance PMI stands for private mortgage insurance. Principal and interest are portions of your monthly mortgage payment that go toward paying off the money you borrowed in order to buy your home. If you put less than 20% down on a home, that’s really when you should get PMI. The lender needs to know that you have enough money to cover them and insure the loan. Once you’ve started to pay down the full cost of the loan—when your loan to asset ratio is better—you can stop paying for PMI. But this isn’t a decision you get to make on your own. You have to bring this to the attention of the lender. They’ll more often than not send your information to an appraiser to determine the value of your assets and determine if your rate can be calculated differently. But you have to be proactive. If you think you’re close to the 20% mark, check with your lender. It may even be worth talking to a realtor first. They can give you a good idea of the value of your home/assets and if the amount you’ve paid will qualify you for a better rate. Signs Of A Rebounding Housing Market Part of buying a home is knowing the terms. But part of it is also knowing whether the housing market is rebounding or not. One trend to look for is consecutive months of growth with existing home sales numbers. The market is cyclical and has a lot of ups and downs. You really want to watch for at least three months of home sales numbers increasing. The next trend to watch for involves pending home sales. These are contracts that are in the works but haven’t been closed yet. What you want to look for there is a growing number of pending home sales in each of the four major regions of the country. Increasing numbers of pending sales means that there is potential for growth in the future, that inventory is growing, and it’s probably a good time to buy or think about buying. The final thing to watch for is buyer traffic. Pay attention to the number of people realistically shopping for homes versus the same time during the previous year and for the first time in 12 to 13 months. If traffic is up, it’s a good sign that the housing market is rebounding. All of these statistics can easily be Googled to help you get a good sense of where the housing market is and where it’s going. This is something you can do for yourself before you start shopping for a home. If you’d like to learn more about buying or selling a home, check out Keller Williams !…

Real Estate Survival Guide with Terry Story

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Negotiating Repairs Before You Buy The Home Of Your Dreams 7:53

for 5 years siden7:53

7:53

In this week’s Real Estate Roundup, Steve and Terry Story , a 31-year veteran at Keller Williams, looked closely at what types of repairs homes often need when they go up for sale. It’s important for you, as a home buyer, to understand what is reasonable to ask the seller to fix and which repairs might be easier and less expensive to fix on your own. Under $500? Just Fix It Yourself Terry’s rule of thumb on needed repairs when you’re buying a home—and there are always a few things that need to be fixed—is anything less than $500 to $1,000, just handle it yourself. It’s just easier all around that way. You should look at that cost in relation to the total purchase price of the house. The seller’s not going to want to renegotiate over a couple of hundred dollars. Terry tells home buyers to look for big-ticket items, things like needed roof repairs or the heating/cooling system not working right. Those are the issues you really need to work out with the seller before closing the deal. When buying a home, you’re often agreeing to buy “as is, with the right to inspect”. You negotiate in good faith that nothing major is wrong. If a home inspector does a walkthrough and you’re not happy with the results, you can still pull out of the deal. You also have the right to renegotiate, and that’s the best way to handle significant repair issues. Negotiating For Home Repairs The easiest way to handle repair issues is to negotiate a credit toward the purchase price with the seller. For example, if there’s a total of around $1,500 worth of repairs needed, you might ask the seller to knock $1,000 off the price. You can easily negotiate down a bit from whatever number the home inspector gives because those numbers are usually highly inflated. They might peg a toilet repair at $250 that you can do yourself with a $25 part from Home Depot. Negotiating a credit is probably a smarter way to go than having the seller agree to handle the repairs. Why? Well, what can happen is that the seller pays for the repairs, but then when you do a new walkthrough, you might not be satisfied with the work that’s been done, but the seller doesn’t feel as though they should have to spend more money after having paid someone once for the work. The smart way is to get a credit from the seller and then handle getting the repair work done yourself, assured that things are fixed to your satisfaction. Don’t Be Afraid To Point Out The Need fFr Repairs When you’re negotiating the price of a home, sellers assume you’re seeing things that obviously need to be repaired, such as cracks in the ceiling or the floor or plumbing issues. There may be some repairs that the seller isn’t aware of, however. Sometimes issues with air conditioning and heating or even a leaky roof might not be apparent. Make sure you bring all repair issues to the seller’s attention early on, not at the last minute just before closing. You aren’t always going to be able to notice needed repairs yourself, so make sure to bring a home inspector with you when doing a walkthrough. And if there are specific and major issues, such as electrical wiring, then go the extra mile and bring in an electrician to assess the situation. It’s worth spending the money on a professional upfront, rather than finding out after you’ve bought the home that there are significant repairs needed. It’s too late then to renegotiate with the seller. If you’d like to learn more about buying or selling a home, see Terry at Keller Williams !…

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Real Estate Survival Guide with Terry Story

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The Let Them Theory: A Life-Changing Tool That Millions of People Can't Stop Talking About

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The Let Them Theory: A Life-Changing Tool That Millions of People Can't Stop Talking About

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