In this early spring market across the county especially here in Oakland County Michigan inventory seems to be a major issue in home sales and in the housing market in general. It seems that with the new tax law will add more income to home buyers and sellers, but as of yet shown in the housing market. It seems there is still uncertainty with home buyers and home sellers along with rising interest rates that is plaguing or areas and others. As a Realtor for the last 17 years I really haven’t experienced anything quite like what is going on in this particular spring market, but can only hope that the uncertainty will dissipate and the markets will rebound for bth home buyers and home sellers across the country.
Income Up Home Buying and Selling Concerns Same
A rising number of Americans surveyed for Fannie Mae’s monthly Home Purchase Sentiment Index say their income is higher than it was last year at this time. But has more money made them more likely to buy or sell a house? Well, according to February’s survey results, it’s hard to say. That’s because, after an increase in January, housing sentiment fell in February – with respondents expressing less confidence in a number of categories.
In fact, the number of participants who said it’s a good time to buy a house was down, as was the percentage of participants who said it was a good time to sell. But if January saw increases in housing confidence, why the drop in February? Doug Duncan, Fannie Mae’s senior vice president and chief economist, says some of the uncertainty has to do with changing economic headlines. “Volatility in consumer housing sentiment continued in February, with the new tax law beginning to impact respondents’ take-home pay and the stock market creating negative headlines due to early-month turbulence,” Duncan said. In short, people have more income and money but they’re still a bit unsure of what lies ahead for the market. More here.
It’s Sunday morning….You’re scheduled to go out and see houses later on with your real estate agent. But it’s nasty outside. It’s beyond pouring. You can’t even imagine walking from the car into a house. You’d rather just cancel the appointment and hang inside, maybe watch some TV.
You can always go see the house next weekend.
But should you wait for next weekend?
Should you even wait to go see houses only during the weekend?
There’s five weekdays you can go see houses. Is there a better day than a Sunday?
What if someone else scoops up the house before you end up getting out to see it? Right?!
Sure. Totally a possibility. And, totally a reason to motivate and go see that house today in the rain.
But that’s not the point of this article. The point is that the best day to see a house is not necessarily Sunday. It’s also not necessarily not Sunday.
The best day to go see houses is when it’s raining. Even better if it’s raining heavily. And it’s best if it’s been raining for a few days straight.
It’s the future. You skipped going to see the house in the rain, but you ended up buying it eventually. Of course you had a home inspection done on the house during the process. But that was a sunny day, and it hadn’t rained in some time.
Then, after you’ve lived in the house for a while, you start to notice a drip in the ceiling. Or some dampness in the basement. Or worse, actual water on the basement floor.
You’d probably be pretty upset. You’d feel like the owner should’ve disclosed it. You feel like there’s no way they didn’t know that this was a problem. And you’d probably be right. But good luck proving it.
Then you think one of the real estate agents should have either noticed the issue, or knew about it and hid it. But, there’s a good chance that the agents truly didn’t have knowledge of it. And frankly, unless the real estate agents are told about an issue, they aren’t qualified to assess issues that a qualified home inspector should pick up on.
Ahhhh…the home inspector. The home inspector should pick up on it! That’s who to blame and go after.
Most likely they would pick up on water related issues. There is usually some sort of evidence they can see.
But sometimes these types of problems aren’t all that obvious. Especially if the inspector is looking through the house after it has been dry weather for some time.
It’s easy to try and place fault, blame, and consequences on others when something goes wrong.
The true enemy, though, is water.
So much damage can be done to a house due to water…
- From the roof.
- To the gutters.
- To the windows.
- The basement.
- And even the landscaping and driveway can be affected by water related issues.
It’s best to take advantage of the moments in the buying process where you can face your potential enemy head on…on a rainy day.
You can save yourself a lot of time, money, and aggravation by seeing a house in the rain. If there are problems, they should show up on a day like that. That doesn’t mean there won’t be in the future of course.
That also doesn’t mean you shouldn’t buy the house of your dreams if there are some water related problems. But at least go forward knowing what you’re dealing with, and ideally getting the owner to own up to and fix any issues before you close on the house. Because once you close on the house, those problems are your problems.
So, if you wake up and see rain on a day that you’re scheduled to go see a house, don’t cancel. Go.
Obviously you can’t guarantee it will rain every time you go see houses, or on the day you do a home inspection. It would be impossible to find and purchase a house if you only looked and inspected homes on rainy days. So don’t get too hung up on it.
But if the opportunity arises, certainly don’t overlook the benefits of getting out to see houses in the rain.
A rainy day can be the best day to go see a house.
The goal of owning your Novi home free and clear is usually thought of as the sunniest eventual outcome of the process that begins with buying your Novi house. The vision of the day when you make that last mortgage payment is an attractive one: whether in retirement or sooner, a “free rent” future has great appeal.
Buying Your Novi House: Some Ask, ‘What’s the Hurry?’
So when financial planners argue against the wisdom of paying off your mortgage, it makes for interesting reading. One such planner is Ric Edelman, whose article “11 Great Reasons to Carry a Big, Long Mortgage” presents a laundry list of the possible financial benefits. As one of the nations’ foremost financial advisers, Edelman also has a well-earned reputation for brash presentations (his PBS series made the most of that). And he really does list eleven reasons why “you should have as big a mortgage as you can get and never pay it off.”
Some of the reasons are fact-based—but not really pertinent. For instance, Reason #1 is that your mortgage doesn’t affect your home’s value. True: whether its value rises or falls depends largely on the current Novi market…but that isn’t a reason for or against carrying home loan debt.
The same is true for Reason #2, which is that a mortgage “won’t stop you from building equity…” The logic here is the same: even if you never paid down your home loan’s principal at all, if the expected market value rises (it’s “almost certain to grow in value over the next 20 years”), your equity would grow independently.
More convincing are the remaining nine reasons, leading off with Reason #3, “A mortgage is cheap money.” This will earn head nods from every financial analyst, and it’s doubly true with today’s incredibly low interest rates. It may only be useful to those who have ideas for places where the “cheap money” can produce juicy profits—but what financial planner can’t suggest a few?
The other reasons deal with:
- tax benefits
- the dwindling real cost of mortgage payments over time due to inflation
- the liquidity provided by refinancing (“selling without selling”)
- the wealth creation possibilities of money invested sooner rather than later
Each of these can be illustrated by graphs and charts (and believe me, they are).
Whether you are more of the less-owed-the-better mindset or Edelman’s big long mortgage school, one thing holds true in both cases: buying your Novi house is the necessary first step. I can be of immediate value in that department—call me to see what I mean!
For Farmington Hills Real Estate, Halloween Marks a Turning Point …Fa la la la la, la la la la: it’s carol time again! Not quite? You can’t almost hear those sleigh bells ringing? Well, brace yourself. Halloween is next Tuesday—and nowadays, that means that by Wednesday, holiday advertising will be with us for the duration. Whether we admit it or not, the Thanksgiving start of holiday season is a thing of the past. Hallmark has already launched its “Countdown to Christmas;” Farmington Hills mailboxes are filling with gift catalogs; store windows are only weeks away from being transformed into snow-sprayed winter wonderlands.
As far as Farmington Hills real estate is concerned, a couple of the advantages to buying during the holiday season will arrive more or less simultaneously. And there are advantages.
Holidays in the air? Why Farmington Hills Real Estate Deals Follow Halloween
One real estate education company, FortuneBuilders, counts five key reasons why “the holidays are a great time to buy.” In short, they are:
- Limited inventory. Less activity means fewer competing buyers.
- Sellers are motivated. Those who have not sold during the peak season are more likely to welcome offers.
- This depends on the particular financial situation of both Farmington Hills buyers and sellers.
- Lower interest rates. Historically, interest rates tend to be lower during the holidays—probably because mortgage companies need to pep up sleepy demand.
- Faster closing. Although lenders, brokers, and inspectors may be thinking it’s time to take a vacation, when business does appear, they clear the decks and move!
Those reasons may seem like distant abstractions in the week before Halloween, but they are very much in play starting with the first stirrings of November….and Thanksgiving…and all the rest of the holiday onslaught! For those who will be in the market for a new Farmington Hills home—in reality, they’ll be shopping in a “holiday” market environment! As the educators put it, “some of the best deals you can make during the holidays involve real estate, not 72-inch televisions.”
You don’t even have to wait until Halloween for a comprehensive look at Farmington Hills’s current slate of pre-holiday deals, Call me anytime!