Sunday, July 11, 2021 / by Marie Babin
How to Bridge the Appraisal Gap in Today’s Real Estate Market
If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs,1 the appraisal process—historically a standard part of a home purchase—is receiving more attention than ever.
That’s because some sellers are finding out the hard way that a strong offer can fizzle quickly when an appraisal comes in below the contract price. Traditionally, the sale of a home is contingent on a satisfactory valuation. But in a rapidly appreciating market, it can be difficult for appraisals to keep pace with rising prices.
Thus, many sellers in today’s market favor buyers who are willing to guarantee their full offer price—even if the property appraises for less. For the buyer, that could require a financial leap of faith that the home is a s ...
Thursday, June 17, 2021 / by Marie Babin
Friday, April 30, 2021 / by Marie Babin
You hear it on the news all the time: "It's a buyer's market," "It's a seller's market," or "The housing market is on the rebound." And while you probably get the gist of what these folks are talking about, having a deeper understanding of the housing market and how it works can help you immensely during the homebuying or selling process.
Let's start with the basics
The housing market refers to the general market of houses being bought and sold between buyers and sellers. These houses are either bought or sold directly by owners or indirectly through brokers. Like any market, the housing market is governed by the law of supply and demand. When demand is high and supply is low, the market appreciates. When demand is low and supply is high, the market depreciates.
How inventory affects the value
In the real estate industry, we think of supply and demand in terms of available inventory. You can measure inventory by answering the following question: At the current pac. ...
Tuesday, March 30, 2021 / by Marie Babin
The nice thing about buying a home that you plan to make your primary residence — even though the search and transaction processes aren’t always a cakewalk — is that you know what you like. When you buy a home to fix-and-flip or buy-and-hold as an investor, though, it’s really not about what you like at all. Instead, it’s about what’s popular in the locale, what rents and what sells, and how you can find a deal that will maximize your return.
So what do you need to know about buying an investment property if that’s always been a dream (and even if it hasn’t)? Here’s a quick rundown of the most important tips and guidelines.
Get your finances in order
Unless you’re planning on paying cash for the home, you’ll find quite a few differences between buying a primary residence and buying an investment property. For one thing, there are loan options for individuals and families seeking to buy a home to live i; ...
Tuesday, March 23, 2021 / by Marie Babin
Is the Real Estate Market Going to Crash?
While many areas of the economy have contracted, the housing market has stayed remarkably strong. But can the good news last?
When COVID-related shutdowns began in March, real estate brokers and clients scrambled to respond to the shift. Record-low interest rates caused some lenders to call a halt to new underwriting, and homeowners debated whether or not to put their houses on the market. However, those first days of uncertainty ushered in a period of unprecedented demand in the U.S. real estate market, which ended the year with increasing average home prices (up 13.4% from the previous year) and shrinking days on market (13 fewer than in 2019).1
Now, as the spring market approaches, you may be wondering whether the good times can continue to roll on. If you’re a homeowner, should you take advantage of this opportunity? If you’re a buyer, should you jump in and risk paying too much? Below we answer so/ ...