Several Reasons To Purchase a Home This Winter

 It has been said that springtime is the perfect time to buy or sell a home, but is this always the case? Not necessarily, while springtime is the most popular time, winter months can work in a home buyer’s or seller’s favor. This can include having more time on your side to decide, not as much competition, and real estate agents have more time to focus on just you. Here are several reasons that this winter might be the right time to purchase a home.

1. Winter-Tested Houses

The winter brings harsh cold weather to most every area in the US. During the harsher cold weather, a home inspector can see the home’s flaws a little better. If you close on a home in the summer, you might have some surprises in store next winter. Professionals in the industry will tell you that the best time for a property inspection is during the rain and snow.

2. Motivate Sellers

Inventory is fairly low and slow in the winter. If someone puts their home on the market in the winter it usually means they are a motivated seller. If you are in the market for a new home, sellers will be more prone to accept offers and negotiate more on the price and closing costs during the slow winter months.

3. Fewer Buyers

The winter months are a great time to hibernate indoors so to speak. This means that there are fewer buyers out there during the colder months that are looking for a home to buy. You definitely will have less competition in the housing market during the winter. This means you can take your time and make sure you are not rushed into making an offer.

4. Available Realtors

Since winter is considered an “off-season” for realtors, this means that realtors have more time on their hands to devote to you and your search. A realtor will not only be able to devote more time but also support your specific home search.

5. Discounting Movers

Colder winter months are also slow for professional movers. This means that many movers might give company discounts for their services during this time. Since they will also have a lighter schedule, they will have more free time so they should be able to accommodate when you would like to move.

If you are ready to move before the spring, contact a local real estate agent who can help you with the home-buying process. A realtor can not only find you the home of your dreams but can get it at the right price and right terms.

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Reason To Purchase A New Home Before Selling Your Current Home

Selling a home and moving are some of life's most stressful events. It is hard to schedule a closing for your new home and current home in order to move in one and out of the other. Flyhomes, a real estate brokerage, says to consider purchasing a home before you sell the one you are currently living in. Here are a couple of reasons to purchase a home before you sell your old one.

It gives you time to find the perfect home

Getting an offer on your current home is exciting but can be stressful because that means you have to find a new home to move into before your closing date. Rushing to purchase a new home will only make you more stressed with the process. A way to take off some of the pressure is to purchase a new home before selling your current one. You will be able to take your time and purchase the perfect home. This is another way to avoid extra expenses from moving and storage and temporary housing.

It can make your offer more competitive to sellers

Many times a buyer has a home they have to sell when making an offer on a new home. It is a competitive market and a buyer has to pull out all the stops. Having a contingency to sell a home on your offer puts limits on it. If you purchase a home without selling your current one, your offer will be much stronger.

Remember using a professional sales agent is a must. If you want to take this approach, choose a Realtor who can help you through the process.

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Several Questions To Ponder Before Buying a Home

Purchasing a home is one of life's biggest and most stressful events. With that said, it is also one of the most exciting events. When it comes to advise, everyone has it and while friends and family have your best interest in mind, to make the best decision, you need to ask yourself these three questions.

1. What's Going on with Home Prices?

Home prices are a big part of the housing market. Home prices directly affect how much it will cost you to buy a home and how much you stand to gain as a homeowner when prices appreciate. Waiting might not be in the best interest of the buyer.

The current market is seeing big home price surges and looks like they will continue. Keeping Current Matters reveals Home Price Forecasts for 2021. This is a good tool to use to predict just what it will cost you to buy a home. Today the average of all forecasts is 12.46%. This means a median-priced home that cost $350,000 in January of 2021 will cost an additional $43,610 by the end of the year. So in a nutshell the longer you wait to purchase a home the more it will cost you.

2. Are Today's Low Mortgage Rates Going To Last?

Due to record-low mortgage rates, today's market is booming. Interest rates also put a big dent in the market. The lower the rate the better the market, the higher the rate the slower the market. Just a slight increase can make a big impact on the overall cost of a home.

3. Why Is Homeownership Important to You?

The answer to this question is not the same for everyone. This is a personal decision and can only be answered by you. Financial benefits are important but emotional benefits are also. According to the 2021 National Homeownership Market Survey, there are nine reasons homeowners value homeownership.

These nine reasons directly affect how you feel about your home. Six of the nine reasons include stability, safety, a sense of accomplishment, a life milestone, a stake in the community, and personal pride. The National Housing & Financial Capability Survey from NeighborWorks America reports that Americans believe owning a home provides a sense of safety and security and an increase in financial stability.

Remember owning a home is a life-changing event and will have a big impact. This is a big decision and all options should be well thought out. Using a trusted Realtor can help you with the decision.

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Suburbs Are The Place To Be

 The National Association of Home Builders NAHB recently did a survey that revealed 25% of home buyers have changed their home buying preferences due to COVID-19. The survey found that home buyers are looking to the suburbs because of the health crisis. Thiry percent of buyers are seeking a home in the outlying suburbs. Before the pandemic, only 26% of home buyers wanted to purchase a home in the suburbs.

This does not bode for other locations. All of the other location points saw no change or small declines in buyer's preferences after the onset of COVID-19. Rural areas went from 24% down to 23%, downtown in a central city, dwindle from 12% to 11% and those who desired a home in the central city outside of downtown remained at 9%.

Buyers should enlist the help of a Realtor. A local sales agent will know the suburbs and can help you find the perfect home of your dreams. They will be able to help find a home in the perfect community for the perfect price.

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Two Important Building Trends For Today’s Buyer

 The COVID pandemic is still causing uncertainty in the world today. A person’s home has become their essential safe haven. The NAHB has learned from a two-part presentation lead by the Leading Suppliers Council (LSC) there are two building trends that have become essential to buyers in the housing market. Buyers are more concerned about purchasing a smart home and a healthy home.

Homeowners are spending more time than ever at home during the pandemic. People are living,

working and playing all at home. Utility costs are on the rise. Potential homebuyers are interested in smart technologies that can make their home more convenient, secure and energy-efficient. Smart devices are becoming the norm in newly built and renovated homes.

Two-thirds of consumers say they want a connected home. According to Stephen Embry, a partner with the law firm of Frost Brown Todd, in approximately 3 years around 43% of homeowners will have some sort of connected devices in their homes. She says that a home that does not have technology will not be worth as much as a home with technology.

Builders have also seen a trend in homeowners stressing the importance of a healthy home. What does this mean? Consumers want a home with good indoor air quality, plenty of sunlight and the use of non-toxic building materials.

Eco Pulse reports that 66% of Millennials are concerned about indoor air quality. According to the report, in one year six rooms can collect around 40 pounds of dust. There is a possibility that the dust collected could have close to 45 toxic chemicals in it. This is in the air homeowners breathe in their homes on a daily basis.

When building or remodeling a home to improve the home’s health there are many things to consider. Always use clean, renewable energy to help reduce greenhouse gas emissions. Use paints that do not contain VOC that will emit harmful chemicals into the home. Use sound insulation and lighting that adapt to circadian rhythms in the bedroom for improving sleep. Install sensors that monitor air quality. Use double-glazed windows to reduce noise and create better insulation, also make sure your windows provide maximum views to allow natural light in. Most importantly use energy-efficient systems that are easy to control and monitor.

Today more than ever, homeowners want to be able to depend on their homes for their safe place away from the stresses of the pandemic. These two trends are a great way to create a better, healthier environment for families to live, work and play in.

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A Strong February for Single-Family Starts

Single-family starts grew in numbers this February according to estimates from the Housing and Urban Development and Commerce Departments. The great start stems from builder confidence and low mortgage rates.

The Federal Reserve rolled out an emergency rate cut making rates hit a historic low. Currently, the benchmark interest rate range is 1% to 1.25%. Freddi Mac reports an average 3.45% for a 30-year fixed-rate mortgage and 2.95% average for a 15-year fixed-rate mortgage. What does this mean for

the housing market? Potential buyers who are just on the verge of purchasing a new home will now have a great incentive to jump on the opportunity.

The Single-Family Housing Starts and Builder Confidence is shown in a graph depicting the 3-month moving average. According to the graph, the 3-month average for single-family construction is higher than post-recession high. The single-family starts showed an increase of 6.7% making it a 1,072,000 seasonally adjusted annual pace in February.

Builder confidence is going strong with construction at a fast pace due to warmer weather. There were 539,000 single-family homes under construction reported in the month of February 2020. The numbers look as though they do not reflect a rise, however, they are making up for the declines seen in early 2019. Other sectors are also seeing an increase. Currently, there are 683,000 apartments under construction which is 12% up from this time last year. This also marks a post-Great Recession high for apartment construction.

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What to Negotiate When Purchasing a Home

Buying a home can be an exciting but daunting experience. Getting the right price is just one of the pieces to the negotiation puzzle. Here are eight things you can negotiate other than just the purchase price.

Number one is the closing date. Some buyers are in a hurry to close while others need more time. Many don’t realize that the closing date can be negotiated. Buyers might need to move in quickly because of a new job or might need to push the date back because their kids need to finish up the current school year. As long as the date is good for both the seller and buyer the time table can be flexible.

Second comes the closing cost. There are many factors that play into the closing cost. These include the inspection fees, appraisal fees, loan origination fees, recording fees and the lender title insurance.

The buyer is typically responsible for these one-time fees that are paid on the closing day. The buyer can negotiate for the seller to pay all or some of the closing cost. This has become more common as the home prices have continued to rise.

Third are the contingencies. Contingencies are basically an agreement on things that must be met before the real estate contract becomes binding. Contingencies can be based on financing, the home inspection, repairs, appraisals and more. A common contingency is the sale of a potential buyers old home before they can close on the home under contract.

Inspections are the fourth thing on the list and are an important factor when purchasing a home. No buyer should purchase a home without a professional inspection. If a seller refuses an inspection and wants the buyer to purchase as is, this can be a red flag.

The next thing that can be negotiated is repairs. Home inspections are there for the buyer’s protection. They can potentially reveal problems or defects that need to be resolved. The seller and buyer can negotiate who is responsible for repairs and what needs to be completed before the sale is finalized. Ways in which you can work this out with a seller is for them to make the repairs at their cost or negotiate a lower sales price of the home.

Number six is the appliances. Large appliances are usually included in this negotiation tactic. Make sure to ask what appliances the seller is willing to include in the sale of the home. A buyer should always know exactly what they are purchasing. It can work to both advantages. A seller might be willing to negotiate the washer and dryer into the sale or the buyer might want to make sure the seller does not leave a certain large appliance behind.

Seven is the taxes. When a property changes hands, many states require transfer taxes and fees. The buyer or seller can pay these fees. Before a real estate contract goes through, it should be decided who will pay the cost. In a seller’s market, the buyer usually pays the taxes and in a buyer’s market the buyer insists that the seller pays the taxes. A great way to get a leg up on the competition is to offer to pay the taxes as the buyer.

Last is the furniture. Usually the seller takes all the furniture when they sell their home. If a buyer loves the decor or a piece of furniture they can negotiate it into the sale of the home.
When negotiating on the purchase of a home it is always wise to use a Realtor. A real estate agent always has great bargaining skills and can get you the best deal on a home.

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Tips for Standing Out When Selling in a Crowded Market

A day ago CNBC.com reported that the Fall housing market will shift to a buyer’s market. Good news for those searching for a home to purchase but not quite what a potential seller of a home wants to hear. According to the website, fewer consumers believe now is a good time to purchase a home.

The site reports that appraisals have gotten more stringent and potential buyers are more cautious and are willing to take their time when it comes to purchasing a home.

These factors are contributing to  an increasingly crowded housing market. There is more competition sellers have to face. If you are planning to sell your home in the near future, here are seven tips to follow to help stand out in the crowded market.

Just like the game show title, “The Price Is Right”, price your home out of the market and it will be bypassed by potential buyers. Pricing becomes crucial in a crowded market. It is a fine line for those selling their home who want to get top dollar but want to sell fast. Pricing your home slightly lower (approximately 2% lower) than comps in your area will make your home stand out above similar listed homes in your neighborhood. The slightly lower price will be inciting to buyers when there is an abundance competition.

Always have your home’s “game face” on. If someone comes knocking at your door unexpectedly and wants to see your home, they should be welcomed into a show-ready home. It is always good to deep clean and de-clutter before you list your home. Remember, to always maintain a tidy house throughout your listing. Sellers need to be able to showcase their home at a drop of a hat.

Remember the saying “try to see it through someone else’s eyes”? This also holds true when it comes

to selling your home. Homeowners get used to the clutter or how their home looks after they have lived there for a long time. The cramped closet or clutter in the corner becomes a part of your home that you really do not notice anymore. Walk into your home looking at it from a buyer’s point of view. What should be fixed or de-cluttered? You want to put extra emphasis on features that buyers would like to have in their home.

Now days many buyers look through photos via their Realtor or the internet. The same floorplan can look very different when presented in a photo. It is crucially important to have professional photographs done of your home. A professional photographer knows how to stage and photograph a home to give it an edge over the other homes listed for sale in your neighborhood.

Again the age old saying “keep your friends close and your enemies closer” can come in handy when you and a good many of your neighbors are selling your home at the same time. Do not look at your neighbors as competition, rather look at them as teammates. Get together and work on selling you neighborhood as a great place to live. A great way to do this would be to hold a joint open house.
Highlight your homes best assets. If you renovated or made any upgrades, show them off. Make sure your home’s listing features a list of upgrades or renovations that sets your home apart from the other listings.

Last and most importantly work with a Realtor. Choose a Realtor who has a lot of inside knowledge on your neighborhood. A Realtor is trained to look at real estate trends to determine how best to sell your home and give it a leg up on the competition.

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Too Little or Too Much….

When purchasing a home, the majority of homebuyers will purchase using a mortgage. Your credit and your down payment will affect your monthly payment and mortgage rate. The more you put down the lower your monthly payment will be making it easier to build more equity in a shorter amount of time. Although this is a plus, it can back-fire when a homeowner puts down most of their savings on a down payment leaving no funds for home maintenance or emergencies.

“There’s really no one-size-fits-all solution,” says Jason Speciner, a certified financial planner in Fort Collins, Colorado.

Find a happy balance. Figure out how much you can put down to lower payments without leaving the finances high and dry for those upgrades, maintenance issues, life emergencies or life in general. Here are a few pointers to follow when deciding the amount to put down on a home.

Do the benefits outweigh the negatives? Future homeowners are surprised at the differences in the monthly mortgage payments when calculating different down payment amounts. If a higher down

payment would mean a borrower could avoid mortgage insurance this would definitely be a plus. Mortgage insurance is a monthly expense added on top of the monthly mortgage payment making it a much slower process of building equity. There are times when a higher down payment does not reap any benefits. If it leaves a future homeowner strapped for cash it is just not worth it. If someone just needs to put down 3% for a conventional loan but tries to scrape together 5% to lower the monthly payment it just doesn’t make enough difference and cannot be justified if it leaves a future homeowner strapped.

Always be mindful of the effects a higher down payment will have on your financial plan. According to the Bank of the West’s 2018 Millennial Study, 29% of homeowners between the ages of 21 to 34 borrowed from their retirement accounts to make a large down payment on a home. Taking from Peter to pay Paul is not always the greatest solution. Taking money from your 401(k) is definitely risky. If you loose your job, the money must be put back into the 401(k) before the next yearly tax filing or it will be treated as ordinary income with a 10% penalty. An Roth IRA is not as risky, but when taking out money from your IRA you are losing tax-free growth.

Always expect the unexpected. You always want a cushion to fall back on. Leave some cash in the bank for emergencies. Sadly NerdWallet’s 2019 Home Buyer Report, says that 34% of recent first-time home buyers feel they are no longer financially secure after purchasing their home. Homownership includes many expenses that first time homebuyers might not have planned for. Do not drain your savings on a down payment and closing costs.

Speciner says it best, “Emergency reserves are for ‘Oh, shoot’ moments.”


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NAHB Works with Congress to Help Low-Income Housing Laws

Without the help of the country’s federal government, many Americans could not see homeownership in their future.  The National Association of Home Builders worked with the House of Representatives and the Senate to pass a bill in Congress that would facilitate the chance for low-income Americans to become homeowners.  On July 29, 2016, the President signed The Housing Opportunity Through Modernization Act which consists of several reforms which will increase access to affordable rental housing, provide assistance to low-income renters and facilitate homeownership.

There are many facets to the bill which is now a new law.  In the past voucher holders had no chance in competing with market-rate renters.  Because of red tape in the inspection process, voucher holders were not able to move into a multi-family unit such as an apartment or condominium immediately.  Now with the new law inspection requirements in the Housing Choice Voucher Program are more efficient and allow a quicker approval.

The contract terms of HUD’s Section 8 Project Based Housing Choice Voucher program is now 20 years instead of 15 which enables project-based vouchers to be used with the Low Income Housing Tax Credit residences.  Voucher holders will now be protected from economic influences that are out of their control, which means that when the market rental rate goes up, voucher holders will not have to be displaced because their payments are not high enough.  This also allows property owners to preserve respectable renters.

The Rural Housing Service Single-Family Guaranteed Loan Program will also be updated to compete with other government loan programs.  This will allow more low-income renters to actually be able to get a home loan.

FHA regulations that are enforced on existing condominium projects have been reduced.  This means that the purchase of a condo will be less stringent in terms of required owner occupancy for the buyer.  Buyers will now find it easier to purchase multi-family units for rental purposes, creating more rentals in the market.  Also, condo owners who are able to sell will then be able to move up to a single family detached home, if they would like.

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Strong Custom Home Building Numbers in Louisiana

Custom home building is going strong in Louisiana and at Ron Lee Homes in West St. Tammany Parish. The 2014 Census Bureau’s Survey of Construction (SOC) reports that 34 percent of the homes built in the South Central Region were custom built.  This means the home was built for you the owner, by a custom home builder, who will either build on your lot or build on a lot owned or purchased by the builder in the area of your choice in St. Tammany Parish. The other 66 percent were spec homes (speculatively-built homes) meaning they were houses built for sale or houses finished on a builders’ lot, ready for a home buyer to purchase. The house was sold to the potential buyer at one total sales price instead of selling the house and selling the land separately.

The SOC defines new home starts into several different categories which include houses built for sale, houses built by contractors, homes built by owners and for rent houses.  Not only does the SOC report if the houses are built for sale, by contractors, owners or for rent, they also report if the new home starts are being built in a community development with a homeowner’s association (HOA).  The HOA is created while the development is being built, and then ownership is turned over to a homeowner board which enforces private deed restrictions and maintains common areas.  In 2014 it is reported that 58 percent of single-family homes were built in a community with a homeowner’s association.
Why the uptick in the custom home market?  Many speculate that the limited builders’ means to borrow money via Acquisition Development and Construction (AD&C) loans have put a damper on their ability to purchase land, build a home on the land and sell the house to a potential buyer. Borrower restrictions are not new, so custom home building is the logical route to take for any builder that has vast experience and “comfort” in being able to build custom.  It was estimated that in 2014 one in four new home starts were custom homes. The custom home market is still on the rise and has reached levels above 2012-2013 but is still below the 2008-2011 levels.

At Ron Lee Homes, we build custom homes in many different subdivisions in the area including Terra Bella Village, Bedico Creek Preserve, Maison du Lac, and many more.  These communities also have established homeowners associations as well, and have lots available to buy and build a new custom home.  If you are interested in designing and having the home of your dreams built in St. Tammany Parish, Contact Ron Lee Homes at 985-626-7619 or e-mail Info@RonLeeHomes.com.