With mortgage rates reaching a historic low, homebuyers have the opportunity to get additional buying power as a result of the decrease in interest rates. Even a 1% drop in interest rates significantly increases your purchasing power, so now is a great time to buy a home.

Mortgage Rates Fall Below 3%

The Federal Reserve’s efforts to support the economy during this global pandemic has translated into significant decreases in consumer borrowing costs. Their new policy has caused the average fixed mortgage rates to fall to historic lows.

The Freddie Mac survey of mortgage rates nationwide showed the average 30-year mortgage rate at 2.98%. This is the first time that rates have dropped below 3% since they began publishing this information in 1971. 15-year mortgage rates have also decreased to 2.51%, which is a significant reduction from last year's average of 3.22%.

Although most potential buyers were facing stay at home orders and quarantine requirements, pending home sales had a record jump of 44.3% in May. This has led the National Association of Realtors to predict that a comeback is building within the housing sector.

Additional Buying Power from a 1% Drop in Interest Rates

As rates continue to decline, the buying power of consumers continues to increase. Even with higher home prices, this provides a very attractive opportunity to lock in long-term rates since lower mortgage rates equate to lower monthly payments.

For example, a 1% drop in interest rates – such as the decrease from 3.98% to 2.98% – can lead to significant monthly savings. Here is the illustration on a $250,000 30-year mortgage:

As you can see, this 1% decrease in rates results in monthly savings of $140. This means that you will save about $50,400 in interest over the 30-year mortgage term!

Another way to look at this is to consider the boost in buying power. If a borrower is comfortable making the $1,191 monthly payment, then they can afford to take out a larger mortgage. Consider this example:

In this scenario, the 1% drop in interest rates has boosted your buying power by over $30,000. This means you can buy a more expensive home while keeping your monthly payments affordable.

What Does This Mean for Potential Homebuyers?

For potential buyers that qualify for mortgages, lower interest rates can counteract increasing home prices by boosting purchasing power. This has convinced potential borrowers to jump into the market, and mortgage applications have climbed close to the highest levels since the 2008 housing market crash.

Lower rates also have positive implications for existing homeowners, as refinancing provides an opportunity to lower their monthly expenses and free up cash for other purchases like remodeling.

Overall, this low mortgage rate environment has made it a great time to buy a home! For assistance in purchasing a home during these unprecedented low interest times, please call Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.

The coronavirus pandemic has ruined innumerable plans, and buying a house may be one such plan for some people. However, now with lockdowns easing in most parts of the country, people are gradually starting their lives again. This means that many people are now beginning to get back to their paused plans.

Even though buying a house is a tale as old as time, it is still as confusing and challenging as ever. People who are investing in a property in such uncertain times have to consider a number of things, including the economy, health risks, and the changing governmental policies.

So how does one buy a house during this chaos? Luckily, it’s not impossible. This post tackles the process of buying a house during a pandemic. So, read on.

Financial Aspects
The current pandemic has led to a global economic downturn. Despite this, a few areas still remain unbothered by the health crisis, including the housing sector.

Interestingly, there has been no significant drop in the number of homes currently being sold. In fact, the US economy is now recording historically low mortgage interest rates, which have given a push to home sales. A low-interest rate ultimately guarantees lower monthly payments when an individual buys a house. This means that buying a house now is more economical compared to before the pandemic.

Currently, many potential buyers are leaving the more populated cities and heading for the suburbs. For this reason, it is critical that serious home buyers get pre-approved by a recommended lender and have all their financial “ducks in a row”. This way, should there be multiple buyers interested in purchasing the same suburban property, the buyer able to demonstrate their financial strength will be at a huge advantage.

Safety-Related Aspects
People are also trying to avoid coming in contact with potential COVID-19 carriers, and this may make buying a house more challenging. Many cities have banned open house showings. Even where these aren’t banned, a one on one appointment is required for a home viewing to minimize contact with other people. Viewing through an appointment can slow down the process of looking at houses, but it lessens the chances of viral contraction.

Another safe way people are buying homes now is through a virtual tour. Potential buyers are now provided with photographs, video vignettes, and 3-D online tours to make it easy for them to decide whether or not they like the house.

Lastly, health concerns have also changed the documentation work related to buying a house. People buying and selling a house during this pandemic have to sign a disclosure claiming the absence of any viral symptoms and ensuring they have had no connection to anyone with symptoms.

Conclusion
Buying a house during the pandemic is not impossible. One just has to take extra care and try adapting to the new changes. Doing so will make sure that they own a house with a minimum probability of contracting the disease or bearing any other loss.

For more specific guidance on buying a home during this pandemic, please call Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.

Close person-to-person interaction is something people should avoid during this pandemic and it will certainly become a part of the "new normal" even after cities and countries are marked 100% clear from the virus. Shops, restaurants, and many businesses are greatly affected by this change.

This includes the real estate industry.

Although many state governors ruled that real estate was a necessity, some buyers and sellers put their plans on hold when the pandemic started.

Many leases were dropped, in-house viewing was canceled, contracts were left unsigned, and constructions were put on halt; these are just some of the negative impacts on real estate business brought by the pandemic. Nevertheless, there are still many distinctive ways to sell a home during a pandemic. Here are some of the things to keep in mind and follow when selling a house during this period:

Limit In-person showing
Taking good photos of the different parts of the home was the norm before. At this time of social-distancing, one must take it to the next level. To limit the contact or close encounters with people, taking clear videos of the spaces they are trying to sell is a good alternative as others don't prefer just seeing still images. This allows the buyer to walk through the house virtually.

Some buyers still prefer in-person showing. If this is the case, set rules beforehand. Let the potential buyers know what to do before entering the house, such as leaving shoes outside, Wearing a face mask and gloves, limiting or not touching anything in the house, and using hand sanitizer before entering the house.

Virtual showing
Aside from high-definition photos or videos, having virtual tours is an innovative way to show houses. Conducting in-person showings run the risk of endangering the seller, the potential buyer’s, and the Realtor’s health. Some have done 3D tours wherein 3D photos of the rooms were taken, and interested buyers can view the rooms just by swiping or toggling the photo to the right or left.

Virtual tours can also be done via video calls. Facebook Live and Zoom meetings can be used to show the seller’s house to interested buyers without making any physical appearances.

Limit on-site inspections and appraisals
Inspections are part of the many processes before one can sell a house. In this process, some agree with just seeing photos or videos. However, many still want to inspect and appraise in-person. Similar to in-person showing, make sure to agree on rules before the beginning of any transactions. If possible, limit the number of people to come as well. And after the inspection, make sure to clean and disinfect thoroughly.

Remote home closing
Some areas are open to doing remote home closures. With this, limiting the number of people attending a closing is a good step toward limiting direct contact. If remote home closing is allowed or doable, send the necessary information and files online, and make sure that both sides can receive and reply to messages promptly to avoid any delays or misunderstandings. Many states for the first time ever are allowing remote Notary signing under specific rules and regulations. These mobile notaries are the ones moving from one place to another instead of the buyer or the seller.

The pandemic has certainly shaken the economy. It has also brought about a lot of major changes in dealing with several businesses. Nevertheless, selling a home during this time can still be done successfully as long as all parties involved adapt to the changes.

For more specific guidance on selling your home during this pandemic, please call Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.

The coronavirus pandemic has changed everything. From the way that Americans work to the way they shop, times are changing, and some people think that many of these lifestyle shifts will remain even when COVID-19 is long gone. Real estate pros, for instance, have already noticed one major trend—Americans are reconsidering where they live. So far, there’s been a major push out of more densely populated areas as individuals and families alike consider the suburbs, instead.

Why the Drastic Changes?

This all began when large numbers of people began to abandon their living spaces in crowded urban areas, where COVID-19 was more prone to spread from person to person. Instead, these folks found refuge with friends and family members in the suburbs. Many have chosen to purchase homes further away from the chaos in an attempt to prevent themselves from falling ill.

There’s the CDC’s recommendation for social distancing to thank—in the suburbs, small, enclosed areas like shared public transportation, bodegas, elevators and laundromats are much less common. Social distancing becomes easier even when simply walking on the sidewalk or browsing for essentials in corner stores.

Many families are finding solace in homes with far more square footage than their city apartments. And with more space, the current trend of working from home can be productive and enjoyable. People who never thought they would leave the cities are discovering new priorities and are enjoying their new lifestyle. The trend is moving from high priced apartments homes with extra space that can be used for such things as yoga or peloton rooms. They’ve recognized that they enjoy having yards full of grass, opportunities to garden that aren’t limited to a windowsill, and the convenience of having larger stores for groceries and other necessities.

Unfortunately, the high demand for suburban escape is already leading to a limited housing inventory that’s been further driven by unprecedented, historically low mortgage rates. Suburban area Realtors are reporting record low inventories causing numerous multiple bid situations on homes listed for sale.

With markets moving, economic uncertainty looming (including an all-time low rate of wage growth in April), and demand increasing for suburban space, making the move from the city could continue to become more challenging.

Marketing Suburbia

To accommodate the movement from urban to suburban, Real estate experts have made their own adjustments to the way that they’re helping interested parties find and view homes.

Digital platforms that encourage virtual home tours and open houses as well as virtual buying and selling programs are likely to remain popular as the United States continues to navigate the pandemic and prevent the high possibility of a second peak that will come with the reopening of public spaces. So far, it seems a good compromise, but only time will tell how the real estate market trends will continue to change along with the pandemic.

For assistance in navigating your move from the city to the suburbs, contact the experts at Realty Executives Exceptional Realtors® at (866) 742-5732 or email them at ClientCare@RealtyExecutives.com. If you are ready to find your suburban dream home, they would love to assist you.

Selling a house can be a daunting task for any homeowner—knowing the right price to ask, preparing the house for sale, advertising and marketing the home, showing it to interested parties, negotiating the purchase price, dealing with the inspection issues, and preparing to move to another location are only some of the things homeowners will have to do in order to find success.

No wonder so many homeowners hire a real estate agent to list and sell their home!
Choosing to work with a real estate expert is a smart idea. Before turning over the sale of their home to a local listing agent, every homeowner should take their time to choose the best agent in their area.

Thankfully, there’s some good news for those homeowners. We have outlined below key questions that will need to be answered during the interview process.

These questions can be answered by scheduling an interview with a Realtor® or by doing a bit of internet sleuthing. Homeowners will definitely want to pursue both routes in order to gather as much information as possible before making a decision to hire an agent.

Does the agent have a good working knowledge of the local housing market?

In some parts of the country, as little as a one-block walk up the street can mean a $100,000 difference in listing price. 

In neighborhoods like these, where value fluctuates so drastically with only a small change in location, a Realtor® will absolutely need the finesse that comes with neighborhood expertise. Without this intimate knowledge of the local market, a Realtor® will only flounder when attempting to market and sell a home at an appropriate asking price.

Plus, Realtors® who are very familiar with the local real estate landscape will be better equipped to recommend a home for sale to their currently searching clients. This vastly increases the chances of serious inquiries soon after a home has been listed.

What does the agent offer as part of their services?

Not all Realtors® are created equal. Some, called full-service agents, offer extensive marketing packages in their rates, meaning that they will take care of all the advertising that’s necessary to sell a home with the utmost efficiency. With the breadth of services offered by these agents comes a full commission cost, however, usually between 5% and 6%. Full-service agents typically work for larger real estate companies such as Realty Executives.

Discount agents, on the other hand, charge less commission but offer fewer services than their full-service counterparts. Homeowners who choose to list with a discount agent will find themselves with less robust marketing packages to choose from. In addition, many discount brokers will require that the homeowner complete many of the tasks that a full service brokerage handles.

In the case of uncertainty, homeowners should ask upfront about an agent’s rates and services—it's basic information like this that builds a foundation to ask more complex questions.

When researching available services and comparing real estate professionals, homeowners can also use this opportunity to brush up on the differences between real estate certifications. There is, for example, some distinction between a real estate broker and a real estate agent. Brokers will have a higher level of education, and in some cases experience. 

Generally, homeowners can accomplish their goals equally well with either brokers or agents, but some may have reason to prefer hiring a real estate broker with a greater depth of knowledge and expertise.

Does the agent seem interested in learning about the unique needs of their clients?

This question is best answered on a one-on-one basis through an interview. A Realtor’s® mission statement online can wax poetic about passionately meeting the needs of each and every client, but the most genuine answer will become obvious during a more personal discussion.

Homeowners can benefit greatly from being forthcoming about their concerns during interviews with real estate agents because there’s a lot to be said for an agent’s response to an out-of-the-ordinary request. An agent who is willing to go above and beyond for their client will be quick to offer guidance or ensure that they will make appropriate inquiries to answer unique questions and meet unusual needs.

Real estate agents who seem uncomfortable with the idea of deviating from their routine for the sake of a client’s concerns are likely not the best choices for hire.

How much experience does the agent have?

This isn’t to say that a new Realtor® can’t do a great job and promptly sell a home for a stellar price, but there is something to be said for years of experience and a proven track record of success. Sometimes, it’s easy to gauge experience from information gleaned online. When in doubt, it’s never a bad idea to ask a Realtor® under consideration for references from past clients.

Giving those references a call can yield incredibly valuable insight into a Realtor’s® past work. Plus, this provides an opportunity for a candid discussion about the services offered by the Realtor®, the client’s satisfaction, and a review of how smoothly the negotiations proceeded.

More specific questions about experience can be asked during an interview.

Does the agent have a strong online presence?

U.S. News discusses how the internet has drastically changed the way potential homeowners search for listings and demonstrate interest in a home, making the way that an agent markets their inventory online all the more important.

Luckily, this is one question that can be answered easily with a quick internet search. An agent with plenty of hits on popular search engines will have a wide reach to potential buyers who are searching for homes in the area. A wide reach means more inquiries, and more inquiries mean the possibility of more competitive offers!

Maintaining a well-kept social media presence also suggests professionalism and transparency, both of which are critical qualities for an agent to be successful in their field. Quickly scanning any social media profiles can say a lot about an agent, too, so homeowners shouldn’t neglect this opportunity.

What does the agent’s current listing inventory look like?

There’s something to be said for balance here. While a homeowner might be wary of an agent with very few listings, an agent with many listings which have been on the market for some time could be indicative of a bigger problem. Sure, a stubborn property crops up every now and again that even the most talented agent has trouble selling, but when an agent’s inventory is full of unmoving properties, the homeowner may want to prod a bit further.

A small inventory, on the other hand, may mean that the agent will be more available to provide thorough time and attention to a new listing, but it could also be indicative of fewer homeowners wanting to list with the agent.

Also, homeowners should take this opportunity to double-check the characteristics of the other properties in an agent’s inventory and prepare for a bonus follow-up question: Has the agent been successful when selling comparable homes (in the same price range and in similar neighborhoods)?

Does the agent have any reviews?

At the end of the day, Realtors® are only human—this means they can’t please everyone! One or two bad reviews amongst a sea of positive accolades is probably not a reason for concern. The negative reviews should still be taken seriously by all means, but reviews are more useful as a general overview rather than a damning sentence.

Similarly, homeowners on the hunt for the best Realtor® would do well to be wary of agents with nothing but five-star reviews. Again, balance is key. Maybe it’s true that a Realtor® has had nothing but the most stunning performances, but it’s also possible that reviews which seem ingenuine could have been hand-selected from a larger pool of more realistic reviews.

Searching for reviews on neutral, third-party websites is the best way to ensure that the reviews contain nothing but the truth. These third-party sites like Zillow and Google ensure that reviews cannot be removed or altered in any way, whereas reading reviews and testimonials directly from a Realtor’s® website suggests that the reviews have been hand-picked to paint an ideal picture of the agent’s services and past successes.

How does the agent suggest a selling price?

While it’s understandable that many homeowners will gravitate toward a Realtor® who promises to sell their home at the highest price possible while charging the lowest commission, they should pay careful attention to the way that the Realtors® suggest a list price. In reality, it’s not so simple as selling a home for its highest suggested list price. Why? Because a single correct listing price doesn’t exist.

Instead, it’s a good sign if a Realtor® works equally to determine a price range with a homeowner based on the current state of the housing market. A good listing agent will reference recent sales and pending sales of comparable homes, often called a market analysis, then use this information to guide a homeowner toward a reasonable price that they’re happy with.

A real estate agent who knows how to appropriately price a property can be the difference in a home that sells within its first month of listing or a home that stagnates on the market, unmoving and destined for an unfortunate price reduction.

Consider Red Flags

This list of questions is the perfect way to run a quick analysis of any real estate agent under consideration because they’ll help to focus on the positives without also forgetting the negatives.

Sometimes, in the course of discovering the answers to each of these questions, some striking red flags will change the game entirely. Homeowners would do well to avoid hiring an agent who:

Suggests a singular listing price rather than a realistic price range.

• Has no online presence or has social media pages containing questionable content.
• Boasts no experience selling homes in the desired neighborhood or price range.
• Cuts corners on marketing and advertising strategies in order to reduce their own costs.
• Is not prepared to provide a full market analysis.

Aside from these lists of questions and warnings, there’s one final source of wisdom each homeowner should rely on when deciding which Realtor® to hire—their gut!

Forming a relationship with a Realtor® isn’t so different from any other relationship. Sure, the interactions between a real estate agent and a homeowner are rooted in professionalism, business, home buying, and home selling, but homeowners would be remiss to ignore the basic tenets of communication and connection!

If an interview with a Realtor® yields nothing but bad vibes, think again. A “perfect” resume and robust listing inventory mean little if the agent isn’t personable or willing to work amicably with new clients, regardless of their individual needs and concerns.

If you are considering selling your home, consider contacting Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com. We will be happy to provide you with a complete market analysis from a professional Realtor® in your market.