ARE HIGH MONTHLY PAYMENTS HOLDING YOU BACK?

If you have been thinking about buying a home in 2023, but you are worried about high monthly payments, we have a solution for YOU.  Our agents are solutions-oriented and have an entire toolbox of processes and systems available to them to help you determine the best option for making a move.

HIGH INTEREST RATES ARE FRUSTRATING

You want to buy a house.  You know that paying rent is just paying someone else’s mortgage. You want to build wealth and equity.  You want stability in your home. However, you may be frustrated by the combination of higher home prices and higher interest rates.  Do you feel frustrated or defeated?

SOLUTION FOR LOWER MONTHLY PAYMENTS

Our “Call to ARMs” system helps home buyers get a lower monthly payment through the use of an Adjustable Rate Mortgage (ARM).  While this isn’t the right strategy for every home buyer – it could be the perfect opportunity for you. 

Are you planning to stay in the home for 3-years, 5-years, 7-years, or 10-years?

When you purchase using an Adjustable Rate Mortgage, you get to take advantage of a lower fixed interest rate for a specific period of time.  After that period of time, your interest rates could adjust either up or down, depending on what the market is doing.  Of course, you also have the option to refinance the home into a 15-year or 30-year fixed rate if you choose.  Here’s how it works:

Say that you decided to buy a home with a 3-1 ARM.  You will get a fixed, low rate for three years and then your rate adjusts each year after that.  You can count on your monthly payments staying within the range you need for a specific period of time.

IT SOUNDS TOO GOOD TO BE TRUE – WHAT’S THE CATCH?

There is no catch!   You can take advantage of the lower fixed interest rate for a short period of time, then when it’s time to adjust the rate you can decide if you want to refinance at that time into a longer-term fixed rate.  If you choose not to refinance, your payments will adjust each year but they could go up or down.  You are always in control – you will be able to weigh in all of the options before deciding how to proceed.

In fact, you can combine an Adjustable Rate Mortgage with our Interest Rate Offset System, which allows you or the home seller to “buy down” interest rates for you which could boost your buying power even more.

WANT TO KNOW MORE?

If you want more information, call our office at 469-759-3899 and talk to one of our expert REALTORS about all of the options to help you get into your own home so that you can start saving money and building wealth.

About the Author

Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems.  Her passion for helping REALTORS build their real estate business is evident in all that she does.  The more agents she can help, the more consumers she can impact in a positive way through home ownership.  Connect with her on LinkedIn @melissahaileyrealtor

Come enjoy the lock and leave, low maintenance lifestyle in The Villas Of Lake Highlands.

Nestled just North West of White Rock Lake, this 3 bedroom 3 bathroom Brick and stone modern-traditional home boasts beautiful and thoughtful finishes throughout all 3 floors. 5 inch baseboards throughout the house highlight both the Bamboo and the engineered hardwood flooring. Open the high-end plantation shutters to see your backyard oasis while cooking on the 6 eyed gas range. A Large kitchen Island in front of the double ovens ties the kitchen and living space together making it an ideal open floorplan for entertaining! Bamboo flooring leads you to your bedrooms on the 2nd floor. Separated for privacy from the other two bedrooms, the primary bedroom shows off a beautiful bathroom with a spacious walk-in shower with sitting bench, soaking tub, double vanity and a huge WIC. The 3rd floor bonus room makes a great workout, office, craft game or media room. The possibilities are endless here!

For more information, connect with Luke Dyer REALTOR® (903) 217-8425

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The 2023 Real Estate Market Defined - will it be a repeat of 2008-2012?

If you watch and read the news, you are probably seeing all sorts of negative news regarding the residential real estate market. With many so-called experts predicting that the real estate bubble would burst and that rising interest rates would lock buyers out of the market, you may be worried.  In fact, with all the negative news, you may even feel stuck in your current housing situation.

I would like to offer you some truth and information to help you move forward.  I would like to offer you some hope.

First, let’s look at WHY people move.  Harvard University did a study on why people move in America.  Maybe you can identify with one of these.

HARVARD UNIVERSITY STUDY ON MOVING IN AMERICA

A whopping 13% of the US population (homeowners and renters) moves every year. According to their study, people move for the following reasons:

• Relocation

• Relationship Change

• Retirement

• Starting a New Chapter in Life

• Military

• Becoming a Homeowner

• Job Change

• Marriage

• Education

• Starting a Family

• Divorce

• Seeking Adventure

• Upsizing

• Financial Crisis

• Downsizing

• Death

• Better Neighborhood

• Better Schools

These significant events happen regardless of the current real estate market — and often require a change in housing.

IS THIS THE SAME AS THE GREAT RECESSION?

Now, let’s look at today’s real estate market versus the Great Recession in 2008-2012. Things today are, in fact, different from what happened back then.

During the Great Recession, existing home sales in the US fell an average of 20% annually, compared to before the recession.  The reasons that people did move during the Great Recession reflected the Harvard Study mentioned before – regardless of current market conditions.  Please keep in mind that during the Great Recession the entire economy was crashing, not just the real estate market.  Many home owners had fallen prey to predatory lending, were completely upside down in their home, and due to the Great Recession had a loss of household income.  When they were unable to make their monthly mortgage, they decided to sell their home prior to foreclosure (many through short-sale); and others went through the foreclosure process.  This caused a large influx of homes available for sale.  With increased inventory of homes available – coupled with the lack of demand (since many people were unemployed or had limited income) – home prices were impacted in a negative way.  It’s all about supply and demand.

WHAT IS THE REAL ESTATE MARKET GOING TO DO IN 2023?

Since the real estate market is based upon basic Supply and Demand, we need to look at that to determine what our current market is doing – and where it is going.

According to the National Association of REALTORS, existing-home sales rose 14.5% in February, representing the largest monthly percentage increase since July 2020. All four regions of the U.S. saw a rise in month-over-month sales, but posted declines in year-over-year sales.  

Currently across America, there is a housing shortage.  We have a limited supply of homes available for sale.  This includes new construction homes as well as resale properties.  Even with the interest rates returning to pre-pandemic levels, home buyers are still entering the market.  When the supply is low and the demand is strong, prices continue to remain steady.  In fact, in many markets across the country agents are still experiencing some properties in multiple offer situations.  While some homes are pushing the market and then making price adjustments, and many homes are taking closer to 30-days to sell, this isn’t indicative of a slowing housing market.  (for comparison the average timeframe to sell in 2009-2010 was 180 days).  The real estate market is still relatively strong, even though it’s not the frantic market that we saw in 2020 through mid-2022, the real estate market is still holding strong.

• The homeownership rate in the U.S. is currently 66% (Q3 2022)

• The percentage of homeowners that sell each year in the U.S. averages at 7%.

IS NOW A GOOD TIME TO BUY A HOME?

The short answer is – Yes.  Real estate is always a good long-term investment. Historically home values have gone up an average of 4-6% year over year.  The extraordinary growth seen during the pandemic has ended, but growth is still expected this year in prices over all…it will just be closer to 4-6%.  When your home appreciates in value, while the mortgage payoff continues to decline with each monthly payment, the difference between the two values becomes your equity.  When you have equity in your property and you are ready to make another move, you have more buying power for your future purchase.  Not only will you likely sell for more than you bought it for, but you also provided a roof over your family’s head, and now you have cash to purchase your next home.  Buying a home now gives you the freedom to move on with your life.

Resources:

https://www.jchs.harvard.edu/blog/who-is-moving-and-why-seven-questions-about-residential-mobility

https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales

About the Author

Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems.  Her passion for helping REALTORS build their real estate business is evident in all that she does.  The more agents she can help, the more consumers she can impact in a positive way through home ownership.  Connect with her on LinkedIn @melissahaileyrealtor

Can you afford to buy a house?  Or can you afford NOT to?

Right now, you are probably hearing people talk about housing affordability.  Soaring home values over the past couple of years, coupled with recently increased interest rates, are making it harder for would-be home buyers to obtain the American Dream.  If this sounds like your story, then let’s talk about some options that are available to you to help you find a way to purchase a home. You may be able to afford to purchase a home after all.

WHY SHOULD I BUY A HOUSE?

Let’s start at the beginning – you may be wondering why you should buy a home.  There are plenty of benefits, so let’s explore a few of them.

·        Build wealth through equity

·        Stability for families

·        Your payments each month go toward your wealth, not your landlords

·        On a fixed rate mortgage, your monthly Principal & Interest payment is set (while rents are going up)

·        You can remodel the property to your own tastes

·        Stronger neighborhoods

I’M NOT SURE I CAN AFFORD IT

There are a few things to consider as you determine affordability for your specific situation.  Here are a few considerations:

INTEREST RATE OFFSET:  Although interest rates are higher today than in 2020-2022, the home prices are more stabilized and you will not necessarily have to offer thousands of dollars above the asking price.  This saves you thousands of dollars up front, which could now be reallocated toward the current interest rates.

DISCOUNT POINTS:  If the current interest rates are still an obstacle to overcome, you may be interested in “discount points”  Since interest rates are a big contributor to your monthly payment, you may consider reducing your interest rate by buying down points.  There are two ways to accomplish this.

TEMPORARY BUY DOWN:  This is a great option for someone who wants to ease into the higher monthly payments.  This can only be paid for by the seller, and it doesn’t actually change the interest rate.  However, it does reduce the monthly payment each month for the first few years of owning the property. For example, if your interest rate will be 6% then the first 12 months your payment will be reduced as if your interest rate was 4%, then the next 12 months would be reduced as if your interest rate was at 5%, and then the third year your payments would go up to the full 6% rate monthly payment. 

PERMANENT BUY DOWN:  This can be paid for by the buyer, or it can be paid for through closing cost concessions from the seller.  This is an actual reduction in interest through “pre-paid interest”.  The cost of a permanent buy down is larger than a temporary buy down, however if you plan to remain in the home for a long time without refinancing the home – this could be the best option for you.

ADJUSTABLE-RATE MORTGAGE:  This is also a tactic that allows home buyers to reduce their monthly payment by reducing the current interest rate.  This is a good option for someone who is comfortable with their payment increasing at some point in the future – or for someone who is willing to refinance their loan into a fixed rate mortgage in the future.  This loan type could become problematic for someone who is not good at budgeting and saving due to the potential volatility of the monthly payments.  However, it does reduce the monthly payment in the beginning of the loan for a period of time such as 3 years, 7 years, or even 10 years.

I’M INTERESTED - WHAT’S THE NEXT STEP

After reading these options, if you are interested in looking into the possibility of home ownership, NOW is the time to talk to a reputable lender and real estate agent.  Your lender will go over the details of each program and how they impact you and your specific situation.  Everyone’s financial situation is different, so it’s in your best interest to do your own due-diligence to see which option may be right for you.

If you live in the North Texas area, our REALTORS would be happy to assist you and answer all of your questions.  In fact, we offer a no-obligation Home Buyer Consultation to help you understand the process and answer your questions.  We hope to help YOU become a happy home owner.  You deserve it!

About the Author

Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems.  Her passion for helping REALTORS build their real estate business is evident in all that she does.  The more agents she can help, the more consumers she can impact in a positive way through home ownership.  Connect with her on LinkedIn @melissahaileyrealtor

Buying a home in 2023 – Consider the New Home Advantage

If you have been considering making a move, it may be wise to consider the New Home Advantage.

WHAT IS THE NEW HOME ADVANTAGE

In 2020-2022, we saw a huge surge of home buyers, but we had a shortage of resale homes available to purchase. Due to that fact, many home buyers chose to purchase a brand-new home immediately after the pandemic started.  However, builders were struggling to keep up with the demand.  There were waiting lists with many builders in many different markets across America. 

Fast-forward to mid-2022 when the housing market hit the brakes after the Federal Reserve Bank raised the interest rates in an effort to control inflation.  Builders were still building as many homes as fast as they could to keep up with the demand we had been seeing.  However, the demand abruptly stopped (or at least dropped significantly).  As we moved into 2023, we have seen many builders offering plenty of opportunities for a home buyer to purchase one of these spec-homes that is already completed or nearing completion.

DO I NEED A REALTOR WHEN BUYING A BRAND-NEW HOME?

While some people may advise you not to hire an agent, it’s never in your best interest to be unrepresented as a buyer when the seller is a professional home seller.  Home builders know the trends, the market, and they are going to look out for their own bottom line.  However, when you hire a REALTOR to represent you, that agent has a fiduciary responsibility to you.  That means that your agent’s job is to look out for your best interest and to protect you from a professional seller that is trying to make the most money on the sale. 

HERE ARE A 8 REASONS YOU NEED AN AGENT ON YOUR SIDE

·        The sales representative in the model home is looking out for the builder’s best interest, not the buyer.

·        Buyers will need multiple inspections during the construction process. The builder’s salesperson will likely not disclose this or assist with setting these up – but your REALTOR will.

·        Your agent will be with you when important phases of the construction are complete and can attend builder walk-throughs with you.

·        A REALTOR will supply you with the recent comparable sales in the area and help you understand how these might affect the pricing of the new home you want to buy.

·        Your agent will help you negotiate the best possible deal on potential upgrades, financing incentives, and discounts.

·        The builder’s salesperson will appreciate having someone involved on the buyer’s side who understand new construction as they will help facilitate the transaction more smoothly.

·        Your agent can advise on choosing the best homesite with the highest resale potential.

·        A REALTOR can help you analyze the new home absorption rate which will indicate how much negotiating room you may have.

WON’T I SAVE MONEY WITHOUT AN AGENT?

The short answer is No.  Some buyers believe they will save money by not having a REALTOR, but this is typically not true.  The builder won’t discount the price of a home any more than absolutely necessary because they don’t want to impact the appraised values of the subsequent sales in the neighborhood.  A good REALTOR can help you determine the best ways to negotiate to get you the maximum value while maintaining the integrity of the comparable sales.  Additionally, the builder has a marketing budget that includes commissions payable to agents who represent home buyers.  The myth that you can automatically save the commission when buying without an agent is simply that – a myth.

OK – I’M READY TO BUY A NEW HOME

Congratulations!  If you are moving within the North Texas area, including across the Dallas-Fort Worth Metroplex, give our office a call.  Our agents are happy to help answer any questions that you have.  We will provide you with information about new construction neighborhoods, builders, and floor plans.  We can assist you with the entire process.  You deserve to have someone represent your best interests when buying with the New Construction Advantage.

About the Author

Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems.  Her passion for helping REALTORS build their real estate business is evident in all that she does.  The more agents she can help, the more consumers she can impact in a positive way through home ownership.  Connect with her on LinkedIn @melissahaileyrealtor

April is Fair Housing Month

April 2023 marks the 55th Anniversary of the signing of the Federal Fair Housing Act. While the first-time fair housing was addressed was closer to 150 years ago, we are still working to find equality in housing. Here is a quick history and a few things that are being done to help ensure fair housing is available to everyone.

Brief History

In 1866 the first fair housing act was signed.  It prohibited discrimination in housing because of race or color.  Fast-forward 102 years and the Civil Rights Act of 1968 was signed by President Franklin D. Roosevelt which expanded fair housing for race, skin color, sex, nationality, or religion.  This became the basis for today’s fair housing laws.  In 1988 disability and familial status were added as protected classes.  Today, there are 7 protected classes:  Race, Color, National Origin, Religion, Sex, Familial Status, and Disability.

Fair Housing in 2023

There are many organizations that promote Fair Housing.  While everyone must include the 7 protected classes, some organizations have expanded on this even more and become even more inclusive. 

For example, the Department of Housing and Urban Development (HUD) includes sexual orientation and gender identity (as categorized by sex in the 7 protected classes).  HUD is commemorating this month in several ways as indicated in their recent press release.  https://www.hud.gov/press/press_releases_media_advisories/hud_no_23_069

HUD Secretary, Marcia L. Fudge stated “Today, we recommit to our mission to provide equality and opportunity to every person who calls America home, regardless of their race, color, religion, national origin, sex (including sexual orientation or gender identity), disability, or familial status.”

Additionally, the National Association of REALTORS (NAR) specifically includes sexual orientation and gender identity in their Code of Ethics (Articles 3 and 10). https://www.nar.realtor/about-nar/governing-documents/the-code-of-ethics

The National Association of REALTORS is also hosting several events this month to commemorate Fair Housing Month.  On April 25^th NAR will broadcast live on Facebook with speakers Emily Badger of the New York Times, Nora Guerra from Freddie Mac, Charles Lowery of the National Housing Conference, and former FHA Commissioner Dana Wade of Walker & Dunlop.  NAR will also host a zoom even to discuss how REALTORS are sharing fair housing knowledge and advancing equitable homeownership opportunities.  You can find out more here: https://www.nar.realtor/fair-housing/fair-housing-month/fair-housing-month-events#:~:text=April%2025%2C%202023%20%7C%202%3A,of%20the%20Fair%20Housing%20Act.

Additionally, The National Association of REALTORS works towards Fair Housing all year long through educational opportunities such as the “At Home With Diversity” Certification and their Fairhaven Fair Housing Simulation for REALTORS.

Other Fair-Housing Oriented Organizations

While the National Association of REALTORS remains committed to Fair Housing, there are other ancillary organizations for real estate professionals that help promote housing to people in specific protected classes.

NAGLREP: The advocacy mission of the National Association of Gay and Lesbian Real Estate Professionals is to advocate on behalf of the rights of the Lesbian, Gay, Bisexual, and Transgender (LBGT) community as it relates to housing and discrimination laws.  They raise awareness through education and events to encourage existing efforts amongst the civil rights community, as well as REALTOR associations.  NAGLREP is a stakeholder at HUD.

NAHREP: We are The Voice for Hispanic Real Estate® and proud champions of homeownership for the Hispanic community. Homeownership is the symbol of the American Dream, the cornerstone of wealth creation and a stabilizing force for working families. Our role as trusted advisors and passionate advocates is to help more Hispanic families achieve the American Dream in a sustainable way that empowers them for generations to come.

NAREB: The purpose of the National Association of Real Estate Brokers® is to enhance the professional and business conditions of NAREB® Realtist® members by strengthening the consumer capacity of Black, minority, and emerging target market segments that Realtists® serve. And by promoting the real estate industry in general, utilizing economic, political, legal, and social leverage to remediate disparate and discriminatory housing and property ownership policies and practices prevailing in the United States.

While there are other organizations that assist with Fair Housing that are not mentioned here, my hope is that you have found this information helpful.  Fair Housing should be a goal that everyone takes responsibility for.  All people deserve a place to call home.

About the Author

Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems.  Her passion for helping REALTORS build their real estate business is evident in all that she does.  The more agents she can help, the more consumers she can impact in a positive way through home ownership.  Connect with her on LinkedIn @melissahaileyrealtor

SELLER CONFIDENCE SYSTEM

If you have been thinking about selling your home in 2023, but you are worried about the shifting market, ask us about our Seller Confidence System.  Our agents have been trained in a specific program to help home sellers maximize their profit while providing peace of mind in our current real estate market.

WHY IS THE SELLER CONFIDENCE SYSTEM IMPORTANT?

Many real estate agents who joined the profession between 2020-2022 do not have the experience level needed to work in the shifting real estate market of 2023.  Immediately after the global pandemic began, the real estate market began the hottest sellers’ market that we have ever seen.   Many agents only needed to put a listing into the MLS and put a sign in the yard and they would find the home selling within a week for a price above the asking price. 

Now that the market has returned to pre-pandemic levels, agents are finding themselves going back to the things we did before the roller-coaster of the pandemic real estate market.  This includes everything from interpreting the comparable sales reports, pricing the home correctly, staging, professional photos, and lots of marketing both before and during the listing timeframe.  Additionally, there are rules that agents must follow regarding pre-listing marketing that are required by the National Association of REALTORS.

The combination of these items, is the reason that you need a REALTOR who has the experience and education to best assist you in getting top dollar for your home (and in a timely fashion) during this time.

MY HOME IS LISTED AND IT’S NOT SELLING – WHAT SHOULD I DO?

If your home is currently listed for sale, your first action is to talk to your real estate agent.  Hopefully they are contacting you each week with an update on what is happening in the real estate market.  This allows you to be most informed on trends in pricing, new listings that have entered the market, and number of showings happening in your price range.  As a seller you may need to consider making some changes to the home such as paint, flooring, or staging.  Additionally, you need to be sure that your agent has uploaded professional photos of your home.  Of course, you could consider a price reduction in order to entice a buyer to submit an offer too.

THE SELLER CONFIDENCE SYSTEM – IS IT RIGHT FOR YOU?

All agents are not created equally.  You deserve an agent who is prepared to best assist you in selling your home.  As your agent if they have any of these items:

·        Certified pre-owned home program

·        Pre-marketing program

·        Pre-listing package

·        Premium marketing package

To learn more about this program, or if you want to know more about how our agents help sellers get the most money for their home, please reach out to us.  You will be glad that you did

About the Author

Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems.  Her passion for helping REALTORS build their real estate business is evident in all that she does.  The more agents she can help, the more consumers she can impact in a positive way through home ownership.  Connect with her on LinkedIn @melissahaileyrealtor

Congrats Mark Helm REALTOR®! 👏
We all succeed with leaders like you!
Mark recently helped bring his team to victory in our most recent brokerage challenge! 😀
Mark Helm REALTOR®
📞214-676-5231

Congrats Nina Lopez REALTOR®! 👏
We all succeed with leaders like you!
Nina recently helped bring her team to victory in our most recent brokerage challenge! 😀
Nina Lopez REALTOR®
📞214-794-3479

Congrats Holly Pryor REALTOR®! 👏
We all succeed with leaders like you!
Holly recently helped bring her team to victory in our most recent brokerage challenge! 😀
Holly Pryor REALTOR®
📞214-934-8967