Market Info • May 20, 2022

Fact Vs Fiction: The Truth About Today’s Housing Market

by Debbie Marett

Here are some of the biggest misconceptions about today’s housing market and the facts.

#1: WE’RE IN A HOUSING BUBBLE

The Facts

While today’s housing market is anything but normal, it’s not because of the same circumstances surrounding the housing bubble of the early 2000s that caused the crash.

Back then, new construction single-family homes flooded the market, lending standards were incredibly loose, and many homeowners were cashing out their equity left and right.

Today’s market is nearly the exact opposite.

Since the housing crash of 2008:

Lending standards have tightened
The market is under-supplied rather than over-supplied on inventory
Most homeowners are much more cautious with their equity

Plus, housing market experts are forecasting continued price appreciation this year, as demand continues to outweigh home supply.

#2: LOTS OF FORECLOSURES ARE COMING

The Facts

Stories about the volume of foreclosures are all over the news today. But the most important thing to remember is context is everything.

Yes, many homeowners were able to pause their mortgage payments during the forbearance program, and there was legitimate concern from many experts that it would result in a wave of foreclosures coming to the market.

However, the number of foreclosures we’re seeing today is nothing like the last time.

What You Actually Need To Know About the Number of Foreclosures in Today’s Housing Market | Keeping Current Matters

Here are some of the reasons why that’s happening:

Most homeowners have enough equity to sell their homes
There have been fewer foreclosures over the last two years
The current market can easily absorb the new listings

Today’s data shows that most homeowners are exiting their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again.

For all of these reasons, experts don’t anticipate a wave of foreclosures that would negatively affect housing prices.

#3: HOUSING PRICES WILL DEPRECIATE

The Facts

This might be one you’ve heard a time or twenty.

Skyrocketing price appreciation has many sellers and buyers sitting on the fence. However, experts don’t project home prices to go down anytime soon. Instead, data from earlier in the year has already been adjusted to be higher than previously anticipated.

So, to answer this question… First American explains it like this:

“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”

Will Home Prices Fall This Year? Here’s What Experts Say | Keeping Current Matters

For both buyers and sellers, this means one thing: playing the waiting game is a risky business.

When it comes to sellers, the higher price appreciation over the last two years has been great for your home’s value. But if you will also be buying a home after selling, you shouldn’t wait for prices to fall.

In both cases, waiting will only cost more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase.

Market Info • May 20, 2022

Why This Housing Market Is Not a Bubble Ready To Pop

by Debbie Marett

Homeownership has become a major element in achieving the American Dream. A recent report from the National Association of Realtors (NAR) finds that over 86% of buyers agree homeownership is still the American Dream.

Prior to the 1950s, less than half of the country owned their own home. However, after World War II, many returning veterans used the benefits afforded by the GI Bill to purchase a home. Since then, the percentage of homeowners throughout the country has increased to the current rate of 65.5%. That strong desire for homeownership has kept home values appreciating ever since. The graph below tracks home price appreciation since the end of World War II:

The graph shows the only time home values dropped significantly was during the housing boom and bust of 2006-2008. If you look at how prices spiked prior to 2006, it looks a bit like the current spike in prices over the past two years. That may lead some people to be concerned we’re about to see a similar fall in home values as we did when the bubble burst. To help alleviate those worries, let’s look at what happened last time and what’s happening today.

What Caused the Housing Crash 15 Years Ago?

Back in 2006, foreclosures flooded the market. That drove down home values dramatically. The two main reasons for the flood of foreclosures were:

Many purchasers were not truly qualified for the mortgage they obtained, which led to more homes turning into foreclosures.
A number of homeowners cashed in the equity on their homes. When prices dropped, they found themselves in an underwater situation (where the home was worth less than the mortgage on the house). Many of these homeowners walked away from their homes, leading to more foreclosures. This lowered neighboring home values even more.

This cycle continued for years.

Why Today’s Real Estate Market Is Different

Here are two reasons today’s market is nothing like the one we experienced 15 years ago.

1. Today, Demand for Homeownership Is Real (Not Artificially Generated)

Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Today, purchasers and those refinancing a home face much higher standards from mortgage companies.

Data from the Urban Institute shows the amount of risk banks were willing to take on then as compared to now.

There’s always risk when a bank loans money. However, leading up to the housing crash 15 years ago, lending institutions took on much greater risks in both the person and the mortgage product offered. That led to mass defaults, foreclosures, and falling prices.

Today, the demand for homeownership is real. It’s generated by a re-evaluation of the importance of home due to a worldwide pandemic. Additionally, lending standards are much stricter in the current lending environment. Purchasers can afford the mortgage they’re taking on, so there’s little concern about possible defaults.

And if you’re worried about the number of people still in forbearance, you should know there’s no risk of that causing an upheaval in the housing market today. There won’t be a flood of foreclosures.

2. People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s

As mentioned above, when prices were rapidly escalating in the early 2000s, many thought it would never end. They started to borrow against the equity in their homes to finance new cars, boats, and vacations. When prices started to fall, many of these homeowners were underwater, leading some to abandon their homes. This increased the number of foreclosures.

Homeowners didn’t forget the lessons of the crash as prices skyrocketed over the last few years. Black Knight reports that tappable equity (the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio, or LTV) has more than doubled compared to 2006 ($4.6 trillion to $9.9 trillion).

The latest Homeowner Equity Insights report from CoreLogic reveals that the average homeowner gained $55,300 in home equity over the past year alone. Odeta Kushi, Deputy Chief Economist at First American, reports:

“Homeowners in Q4 2021 had an average of $307,000 in equity – a historic high.”

ATTOM Data Services also reveals that 41.9% of all mortgaged homes have at least 50% equity. These homeowners will not face an underwater situation even if prices dip slightly. Today, homeowners are much more cautious.

Bottom Line

The major reason for the housing crash 15 years ago was a tsunami of foreclosures. With much stricter mortgage standards and a historic level of homeowner equity, the fear of massive foreclosures impacting today’s market is not realistic.

Market Info • May 20, 2022

The One Thing Every Homeowner Needs To Know About a Recession

by Debbie Marett

A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession this way:

A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.

To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

Bottom Line

We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.

Selling • May 19, 2022

Dear Sellers

by Debbie Marett

An open letter to sellers about today’s housing market

This is a great takeaway on the current state of our market that I am sharing that was written by Ryan Lundquist.

Dear Sellers,

How are things? I hope all is well. It’s been such a crazy market, but things are starting to change. So, let’s chat. This is coming from a good place, and it’s based on observations and what I’m hearing from real estate professionals.

THINGS TO KEEP IN MIND ABOUT TODAY’S MARKET:

1) You’ve lost power: The market is still competitive, but it’s not what it was in February. The truth is buyers have gained more power lately. Most agents I talk to say they are easily getting about half as many offers compared to a few months ago. So, instead of getting eight offers, you might only get a few. And if you’re priced too high, you’ll probably get zero offers.

2) Buyers are growing more sensitive: Mortgage rates skyrocketing means affordability has taken a beating. Seriously, buyers are easily paying $500 or more each month to get a mortgage this year compared to last year at the same time. This means buyers are becoming more sensitive to price, condition, and location. In other words, if they are paying top dollar, they are growing pickier about what they buy.

3) Don’t aim for unicorns: Be careful of the idea of a unicorn buyer who is going to swoop in, ignore the comps, and pay top dollar in cash for your home. If that happens, great. Keep in mind only about 15% of sales this year have been all cash in the region. This means 85% of buyers are getting a loan.

4) But Zillow says: Don’t get hung up on what Zillow says your house is worth. The only thing that matters is what real buyers are willing to pay. Nobody gets stuck on a low Zestimate, so why get hung up on a high one?

5) Avoid strongarm moves: “Remove the appraisal contingency, pay me an extra $25,000, and give me your firstborn child.” These things still happen in some price ranges (okay, not the child thing), but the market is starting to see just a little bit more sanity lately. I’ve heard quite a few stories of buyers bailing after the seller countered with a stongarm move that might’ve worked a few months back. In short, buyers are picky about getting into contract AND staying in contract.

6) Sales are old and crusty: Sales tell us what the market used to be like probably 30 to 60 days ago when the properties got into contract. In other words, sales are like historic artifacts that tell us what the market used to be like. In contrast, we see the current temperature of the market with what is happening with listings and pendings. This means it’s key to know the sales, AND gauge any temperature change since.

7) Be ready to negotiate if needed: I am hearing more stories of buyers asking for credits for repairs, concessions, and price reductions. Sometimes sellers feel they’re losing when this happens, but in some situations it’s simply the ticket to selling for top dollar. In short, listen to what buyers are asking for, and help the deal feel good for them too. This isn’t just about you. Don’t be afraid of FHA and VA buyers either.

8) It’s not time to push the price: Look, sellers aren’t entitled to always netting more than recent sales. My advice? Price reasonably and see what the market gives you. There are some situations where you might need to price lower than recent sales too to generate interest. Forget about record-breaking sales or your overpriced neighbor. What is getting into contract right now? That’s the ONLY thing that matters.

9) Tighten up the details: Buyers have become more sensitive about condition, so it can help to address minor cosmetic repairs before you hit the market (if you can). I’ve talked to a number of buyers who feel discouraged about the condition of homes right now for the price, so a good way to stand out is to be sure your property is tight. Buyers notice details, and solving minor issues only helps give them fewer reasons to say NO.

10) Watch for symptoms of softening: Talk to your agent about the temperature and be in tune with signs of softening. As you see stuff like this, let it influence your strategy for pricing and negotiating.

11) Don’t expect to go $100,000 over: A seller got two offers and said, “Let’s hold out for something higher.” I’m not saying to be hasty about accepting offers, but don’t embrace unrealistic expectations. Headlines from the past talked about bidding wars, but right now headlines are starting to say stuff like, “The temperature has changed,” or “It’s still competitive, but it’s not what it was.” On that note, don’t be afraid to reduce the price if needed. You are not giving up value if value wasn’t ever there in the first place.

12) Other: What other advice would you give? Please comment below.

I hope this was helpful.

Sincerely,

Ryan Lundquist
Certified Appraiser / Housing Market Analyst
Sacramento Appraisal Blog

https://sacramentoappraisalblog.com/2022/05/16/an-open-letter-to-sellers-about-todays-housing-market/

Buying • May 15, 2022

How Today’s Mortgage Rates Impact Your Home Purchase

by Debbie Marett

If you’re planning to buy a home, it’s critical to understand the relationship between mortgage rates and your purchasing power. Purchasing power is the amount of home you can afford to buy that’s within your financial reach. Mortgage rates directly impact the monthly payment you’ll have on the home you purchase. So, when rates rise, so does the monthly payment you’re able to lock in on your home loan. In a rising-rate environment like we’re in today, that could limit your future purchasing power.

Today, the average 30-year fixed mortgage rate is above 5%, and in the near term, experts say that’ll likely go up in the months ahead. You have the opportunity to get ahead of that increase if you buy now before that impacts your purchasing power.

Mortgage Rates Play a Large Role in Your Home Search

The chart below can help you understand the general relationship between mortgage rates and a typical monthly mortgage payment within a range of loan amounts. Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within that range, while the red is a payment that exceeds it (see chart below):

As the chart shows, you’re more likely to exceed your target payment range as mortgage rates increase unless you pursue a lower home loan amount. If you’re ready to buy a home, use this as your motivation to purchase now so you can get ahead of rising rates before you have to make the decision to decrease what you borrow in order to stay comfortably within your budget.

Work with Trusted Advisors To Know Your Budget and Make a Plan

It’s critical to keep your budget top of mind as you’re searching for a home. Danielle Hale, Chief Economist at realtor.com, puts it best, advising that buyers should:

“Get preapproved with where rates are today, but also consider what would happen if rates were to go up, say another quarter of a point, . . . Know what that would do to your monthly costs and how comfortable you are with that, so that if rates do move higher, you already know how you need to adjust in response.”

No matter what, the best strategy is to work with your real estate advisor and a trusted lender to create a plan that takes rising mortgage rates into consideration. Together, you can look at your budget based on where rates are today and craft a strategy so you’re ready to adjust as rates change.

Bottom Line

Even small increases in mortgage rates can impact your purchasing power. If you’re in the process of buying a home, it’s more important than ever to have a strong plan. Partner with me and let me share my list of trusted local lenders to strategize so you can achieve your dream of homeownership this season.

Buying • May 15, 2022

Will Home Prices Fall This Year? Here’s What Experts Say.

by Debbie Marett

Many people are wondering: will home prices fall this year? Whether you’re a potential homebuyer, seller, or both, the answer to this question matters for you. Let’s break down what’s happening with home prices, where experts say they’re headed, and how this impacts your homeownership goals.

What’s Happening with Home Prices?

Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says:

“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

So why are prices climbing so much? It’s because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in today’s low-inventory housing market.

Where Do Experts Say Prices Will Go from Here?

Experts say the housing market isn’t set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they’re calling for ongoing appreciation throughout the year (see graph below):

While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:

“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.”

What Does That Mean for You?

The biggest takeaway is that none of the experts are projecting depreciation. If you’re a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your home’s value, but it’s also something you should factor in when planning your next steps. If you’ll also be buying a home after selling your current house, you shouldn’t wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says:

“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”

Bottom Line

If you’re thinking of selling to move up, you shouldn’t wait for prices to fall. Experts say prices will continue to appreciate this year. That means, if you’re ready, buying your next home before prices climb further may make the most financial sense. Partner with me as your real estate professional to begin the process of selling your current home and looking for your next one before prices rise higher.

Newsletters • May 8, 2022

Real Estate News – May 2022

by Debbie Marett

REAL ESTATE NEWS – May 2022
Brought to you by Debbie Marett GRI Realtor®Your referrals are always appreciated and treated with friendly, professional care

How to Avoid Homebuyer’s Remorse in a Hot Market

Buying a home is almost always a great investment, and of course it’s exciting to find and close on a home that you will get to call your own. That feeling of joy and confidence can fade quickly though if certain things are overlooked during the process. 43% of homeowners have at least one regret about buying their home, and that number jumps to 64% for millennials, according to a recent Bankrate survey.

Here are a few tips for ensuring your home purchase is regret-free.

Get to know the neighborhood
Don’t let your enthusiasm for a home run away with you. Before making an offer, plan on touring the neighborhood several times. If you see folks outside, stop and chat with them. We’ve found that neighbors love to talk about the neighborhood and will share both the good and the bad.

Do some research on local schools. Even if you don’t have school-age children and don’t plan to, buying in the best school district you can afford is a smart move. Homes there hold their value better and are easier to resell.

Consider other factors like crime rate, commute times, and distance to other things that are important to you like parks or restaurants. These things will have a big effect on how you feel about your new home once you are actually living in it.

Be patient
There’s no getting around it – the market is hot and buyer competition is fierce. In these conditions it can be tempting to snatch up any home that is halfway decent just to be done with it. Unsurprisingly, homes bought with that rushed mentality don’t always live up to their hype down the line.

Even if things are moving quickly, make sure you take the time to examine the details, get a home inspection, and think about what you really want in your home. Keep an eye out for red flags and be okay with walking away if a home does not meet your standards. Buying a home is a huge financial decision, and not one that should be rushed!

Remember your budget
Bidding wars are all too common, but it’s important to balance what you want with what you can afford. A bank may approve you for more than you want to spend every month, but outspending your budget will not improve how you feel about your home purchase down the line. It’s up to you to know what your true budget is, and factor in future maintenance costs, insurance, etc.

Work with experienced professionals
Working with a team you trust can help you avoid major regrets. Pick an experienced mortgage lender and loan officer that will help you evaluate all your options. Choose a knowledgeable real estate agent who listens to your needs, knows the area well, and will negotiate with sellers to get you what you need – I pride myself on these traits and would love to demonstrate my value to you.

Conserve Water on Your Spring/Summer Landscaping

Now is the time of year when lawns come out of dormancy – a time many gardeners eagerly await. This is also the time of year that we trade large heating bills for sometimes equally large water bills. As you consider your gardening plan this spring, why not resolve to use less water?

We use a lot of water
The US Environmental Protection Agency claims that, across the country, watering our landscaping accounts for nearly one-third of all residential water use, totaling nearly 9 billion gallons per day. In addition, some experts estimate that as much as 50 percent of water used for irrigation is wasted due to evaporation, wind, or runoff caused by inefficient irrigation methods and systems.

Start with the lawn
Sure, a lush, green lawn can increase a home’s curb appeal, but if you plan to stay put for a while, you can consider reducing your lawn’s size by replacing some areas with mulch or hardscaping. To maintain size, but reduce water usage, you can replant with a less thirsty variety of turfgrass and/or not cut your grass so short. Longer grass promotes deeper root growth, resulting in a more drought-resistant lawn, reduced evaporation, and fewer weeds.

Water more efficiently
Water your lawn before 10 a.m. for max efficiency. ThisOldHouse.com recommends watering between 4 a.m. and 6 a.m. “At this cool time of day, it’s less likely the moisture will evaporate before your grassroots can absorb it from the soil,” they explain.

Plant early
Planting new plants in spring (vs. summer) gives them numerous advantages. Milder conditions are less harsh on the young leaves and buds, and lower temperatures require less water for the plants to get established.

Go native
Choosing plants native to your area is another way to save effort and water. Native, drought-resistant plants require less maintenance and less water once established and have the added benefit of providing habitats to beneficial pollinators and soil organisms.

Conserving water doesn’t mean you have to convert your yard into a rock quarry. Making some minor changes can reduce landscape water use but still leave your property looking beautiful and alive.

Please allow me to be your “Go To” source for information on the market. You are welcome to call or email me at any time if I can be of service in any way!

Visit my blog for articles and insight to the market.

You should know the value of your home! Find out what it is worth in the market today.

If you would like to receive a complimentary custom evaluation of your home, including comparisons to other homes that have recently sold, are on the market, or to request a market snapshot of your neighborhood please visit:

http://www.austxrealestate. info/sell/

You can also email me at: dmarett@cbunited.com

How is the Market? Real Estate Snapshot & Market Reports

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Newsletters • April 8, 2022

Real Estate Newsletter April 2022

by Debbie Marett

April 2022

REAL ESTATE NEWS
Brought to you by Debbie Marett GRI Realtor®Your referrals are always appreciated and treated with friendly, professional care

With the low inventory and the very competitve resale market possibly a new home is an option for you? I can help you build your dream home.
Yes, you need an agent to represent you on new build homes, here is why
Search for new build communities and we can schedule an appointment with the builder to meet and check out all your options.

Selling Season has Arrived, Don’t Let Myths Steer Your Home Sale.

How Does Inflation Affect Home Prices?

If you’ve followed the news lately, you’ve probably seen quite a bit about inflation. The consumer price index jumped 0.8% in February, bringing the total increase over the last 12 months to 7.9% – this is the largest annual jump in the last 40 years.

So, how does all of this affect the real estate market?

The Inventory Issue
Interest rates have been kept low for so long it’s created a bubble for everything and not just the housing market. There’s also inflationary pressure on the housing market because of limited inventory. Limited inventory stems from a myriad of problems in the industry.

First, many homeowners aren’t putting their houses on the market. This is due to factors like lockdowns, but also the fear they won’t be able to find a new home to buy.

There are construction delays due to supply chain bottlenecks as well.

Low inventory means buyers are often having to put in bids well above asking to get properties, creating a frustrating situation, to say the least.

Other Inflationary Effects On Real Estate
There are a few other ways inflation can influence how much you pay for a home.

First, inflation is a reference to a rise in the price of everyday goods. Those everyday goods are used to build homes. If the price of things like lumber and appliances go up, then the builder will pass those additional costs onto the buyer in the form of higher prices.

In some cases, however, inflation can have oppositional effects on real estate. If inflation rises, then theoretically, money should become more expensive to borrow. People borrow less of it, so there are fewer home purchases and that can lead to lower prices.

Real Estate Can Protect You Against Inflation
While real estate can be negatively affected by inflation in the form of higher prices, it can also protect you from its effects.

As home prices go up over time, you’re lowering the loan-to-value of your debt. You’re simultaneously increasing your equity, but your fixed-rate mortgage payments will stay the same.

If you’re a real estate investor earning income from rental properties, then you’re likely going to be able to charge higher rent when inflation is up. You can adjust the rent while the mortgage stays the same.

The relationship between housing and inflation can go in both directions. If you’re a buyer right now, inflation isn’t good news, but if you own a home, it can be one of the best ways to protect yourself against rising prices.

How do you calculate the true cost of buying your home?

How well this actually works out depends on one thing. It’s the difference between the interest rate on the mortgage and the inflation rate you experience. If inflation runs hot, you’ll make out big time.
Whenever the rate of inflation is greater than the interest rate on mortgages. It’s not a sure thing, but it’s looking like a pretty good bet.

Does this mean home prices in Texas aren’t high?
No. It only means that daring homebuyers may not be quite as crazy as many seem to think.

Disaster Prep: Do You Have a Home Inventory?

Disaster can strike anytime, anywhere.

Last year, for instance, aside from experiencing a pandemic, the U.S declared 58 disasters which caused billions of dollars in damage, according to the Federal Emergency Management Agency (FEMA).

Especially during the aftermath of hurricanes, we learn just how many Americans lack hazard insurance. Those who did have it faced the challenge of trying to figure out how to tally up their losses. It’s not easy to recall everything one owns, especially when confronting devastation. Then, there are the other losses a homeowner might face, such as those from theft and fire.

Being prepared will help to avoid delays in receiving an insurance payout should you someday face a disaster.

Dig Out your Homeowner Insurance Policy
If you’re like many of us, it’s still in the sealed envelope in which it arrived in the mail, shoved into a box or bin of “important papers.”

Get to know exactly what coverage you have and how to submit a claim should the unthinkable happen.

Then, create an inventory of your belongings. Many people choose an old-fashioned checklist (such as the one offered by NYCM Insurance or at Allstate.com), while others use video (narrated with the necessary information), or photographs labeled with the information that insurers require when considering a claim.

Information required by insurers:

Each item’s description and the quantity (ex: 2 sterling silver candlesticks)
Name of the manufacturer (ex: Tiffany & Co.)
Make/model/serial number
The date (or estimated date) of purchase
Where the item was purchased
The appraised value of each item (or an estimate)
If you can’t find the written appraisal for any item, jot down the name and contact information of the appraisal company and the date the items were appraised.

Keep your Inventory Safe
It’s important to find a safe spot, off-site, to store your inventory. You may choose to store it in the cloud with a backup service or save money by backing up the information to a USB drive and then placing it in a safe deposit box.

Tips from the Experts

The Insurance Information Institute recommends that you include possessions that are stored somewhere else (like a storage facility) in your inventory.
Keep all receipts and copies of appraisals with your inventory.
Keep a count of each item, such as “5 long-sleeve shirts, 7 pairs of sneakers…”
Break your inventory-taking into chunks. If you try to do too much of it at once, you may become overwhelmed and drop the project.

Finally, run the inventory by your insurance agent to ensure that you have enough coverage. The time to get clear on your insurance coverage is before a disaster strikes.

Please allow me to be your “Go To” source for information on the market. You are welcome to call or email me at any time if I can be of service in any way!

Visit my blog for articles and insight to the market.

You should know the value of your home! Find out what it is worth in the market today.

If you would like to receive a complimentary custom evaluation of your home, including comparisons to other homes that have recently sold, are on the market, or to request a market snapshot of your neighborhood please visit:

http://www.austxrealestate. info/sell/

You can also email me at: dmarett@cbunited.com

How is the Market? Real Estate Snapshot & Market Reports

Burnet County – Travis County – Williamson County – Hays County

Newsletters • April 7, 2022

March Real Estate Newsletter 2022

by Debbie Marett

REAL ESTATE NEWS – March 2022
Brought to you by Debbie Marett GRI Realtor ®

Your referrals are always appreciated and treated with friendly, professional care

What is Title Insurance?

From contract contingencies to encumbrances, the home sale and purchase processes bring with them a new vocabulary. One of the processes that most first-timers find confusing is the title company’s role in a real estate transaction. Let’s try to clear up the confusion.

A title company serves two main functions in the real estate transaction. Its first role is that of facilitator for the closing. A title company manages the numbers, works up the settlement structures, and disburses the funds from the escrow account at closing.

Performing a title search and issuing a title insurance policy is a title company’s second function. When you borrow money, the lender requires that you buy a lender’s title insurance policy.

From Rocket Mortgage: “Title insurance is a type of insurance policy meant to protect home buyers, as well as lenders, from any damages or losses caused by a bad title. Most title insurance policies cover all the common claims filed against a title, including outstanding liens, back taxes and conflicting wills.”

Before issuing this insurance, a title company will ensure that the seller has the legal right to transfer the title to you, and that the property isn’t subject to any tax liens, special assessments, or mechanic’s liens. Then, they will issue the lender’s title insurance policy which covers the lender in the event of future claims against the property, for the life of the loan. Although you pay for it, the lender is the only party to benefit from the insurance should there be a claim.

Title companies also issue owner’s title insurance policies, which, as the name implies, covers the new homeowner’s interests for as long as they own the property. While this policy isn’t mandatory, “The majority of people do tend to buy it because it protects the home purchase, which is usually your largest bank transaction,” says Gerry Glombicki, director of insurance at Fitch Ratings.

Both lender and owner’s policies are one-time expenses, rolled into the closing costs. The cost of the lender’s policy is based on the amount borrowed, whereas the cost of the owner’s policy is based on the home’s value.

If you fell asleep while reading this article, that’s okay – I’m here to help! Don’t hesitate to reach out if you have any questions about the title process.

Should Inflation Change Your Homebuying Plans?

Inflation has reached a 40-year high. What does that mean for you as you consider whether or not to buy a home in 2022?

Get Prepped for Growing Season
Dust off your garden gnomes! Spring is just around the corner, and gardeners across the country are counting down the days. Here are 3 steps you can take right now to prepare for the growing season.

Plan for success
Whether your passion is growing your own food, or you prefer ornamental landscaping, or both, creating a plan is your first step. Take stock of last year’s successes and failures and adjust this year’s plan accordingly.

There are many garden-planning tools and apps available online to help you:

Gardeners.com offers a kitchen garden planner.
Gardena.com offers a garden planner for landscaping.
Don’t forget about the trusted Old Farmer’s Almanac Planting Calendar, your local guide to knowing when to plant specific plants to ensure optimal growth and production.

Once you have a plan, make a list of what you’ll need to purchase. Seeds or seedlings? Will you need soil amendments? Which plants have you been eying in nursery catalogs over the way-too-long winter?

If you’re unsure of how much soil you’ll need, check out the soil calculator online at Gardeners.com.

You’re only as good as your tools
If you’re like many gardeners, your shovels, shears, and other tools have been sitting in the shed since last season and likely need a little TLC. If a deep clean is in order, a soapy rinse and soak paired with a scrub brush should do the trick. Wooden handles? Give them a light sanding to help remove splinters.

Pruning shears are the workhorses of any garden, so ensure that yours are in top shape before spring rolls around. To remove rust, soak shears in white vinegar overnight, then scrub with a wire brush. Dried sap? Use warm water and dish soap to loosen it up. Dull blades? A file or whetstone will get them sharp again. Disinfect your shears and other tools with rubbing alcohol or a bleach solution.

Clean your containers
Planning to reuse last year’s flowerpots? They, too, will require a good scrubbing and disinfecting.

Dump out any soil and debris from each pot and grab that wire brush. Fill a bucket with warm, soapy water and scrub the pots inside and out. Create a 10 percent bleach solution and soak each pot for about 15 minutes; bleach helps to kill any unwanted organisms. Rinse with water and set outside to dry.

Get these chores done now and you can hit the ground running when the warmer weather rolls around. I would love to see pictures of your garden creations!

Please allow me to be your “Go To” source for information on the market. You are welcome to call or email me at any time if I can be of service in any way!

Visit my blog for articles and insight to the market.

You should know the value of your home! Find out what it is worth in the market today.

http://www.austxrealestate. info/sell/
You can also email me at: dmarett@cbunited.com

How is the Market? Real Estate Snapshot & Market Reports

Are you a buyer or seller who consistently needs to know what is happening in your market area? Here is a way that you can subscribe to real time accurate data on your area, neighborhood or county.

Burnet County – Travis County – Williamson County – Hays County

How May I Serve You?
dmarett@cbunited.com
www.austxrealestate.com

Newsletters • April 7, 2022

February Real Estate Newsletter 2022

by Debbie Marett

REAL ESTATE NEWS
Brought to you by Debbie Marett GRI Realtor ®
Your referrals are always appreciated and treated with friendly, professional care

Selling your home this spring? Here’s your winter to-do list

Planning to sell your home this spring? While this winter is expected to bring a record-breaking number of buyers to the market, spring will bring more inventory and more competition.

Why wait until just before your home goes on the market to prepare it? There are plenty of things you can do right now that will cut down on the time and effort you’ll need to spend in the spring.

Have your Home Inspected
One of the most common reasons a home sale falls apart or is delayed is because of problems that the buyer learns about after the home inspection. Typically, price negotiations will reopen, but if the problems are beyond the buyer’s budget, they may just walk away from the deal.

If you have your home inspected now, you will not only avoid unpleasant surprises in the middle of the transaction, but you’ll have the rest of winter to get any repair projects out of the way. Chip away at these projects steadily and by spring your home could be in good shape.

The pre-listing home inspection isn’t a must, but if you’re concerned about any problems the home might be hiding, it’s best to bring them to light now.

Get a Head Start on Curb Appeal
Most landscaping tasks will have to wait until spring, but if you have inside space and a sunny window, you can get a head start by growing your own flowers from seed. Just wait until after the last frost to plant them outside.

You can also consider touching-up any chipped paint on doors and trim, creating an outdoor seating area, or updating your front door hardware. Replacing a ratty mailbox, installing new house numbers, and purchasing a new front porch doormat are other great ways to spruce up your curb appeal over the winter months.

Invest in Buyers’ Favorite Features
You know those weekends when it’s just too cold and miserable to leave the house? What better way to pass those gloomy days, than by adding some nice touches to the interior and exterior of your home.

The National Association of Home Builders surveyed prospective home buyers and learned that the top two desired features in a home are a laundry room and exterior lighting. A whopping 87% of home buyers will appreciate an investment you make in either of these areas.

How to get started? For your laundry room (or nook or closet), take this opportunity to add function. Consider adding a shelf, storage cabinet, or a wall-mounted drying rack.

As your luck would have it, wireless lighting has come a long way thanks to advancements in power and power storage technologies. Does your home have a path that could some extra visibility? A side yard that could use a motion sensor light? Shine some light on those darker areas to delight prospective buyers.

House prep may be less appealing than bingeing your favorite TV shows all winter, but doing some legwork now will help to ensure that your home will be the star of the spring real estate market.

Does your home need some TLC before you sell? Let me help! I am happy to come walk through and preview your home with you. We can review what items might be good to take care of ahead of time.

I would also like to share with a program that might help that will allow you to do the work up front and pay for it out of your proceeds at the closing table.

Fact Vs Fiction: The Truth About Today’s Housing Market

#1: WE’RE IN A HOUSING BUBBLE

#2: LOTS OF FORECLOSURES ARE COMING

#3: HOUSING PRICES WILL DEPRECIATE

Why This Housing Market Is Not a Bubble Ready To Pop

What Caused the Housing Crash 15 Years Ago?

Why Today’s Real Estate Market Is Different

1. Today, Demand for Homeownership Is Real (Not Artificially Generated)

2. People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s

Bottom Line

The One Thing Every Homeowner Needs To Know About a Recession

Bottom Line

Dear Sellers

How Today’s Mortgage Rates Impact Your Home Purchase

Mortgage Rates Play a Large Role in Your Home Search

Work with Trusted Advisors To Know Your Budget and Make a Plan

Bottom Line

Will Home Prices Fall This Year? Here’s What Experts Say.

What’s Happening with Home Prices?

Where Do Experts Say Prices Will Go from Here?

What Does That Mean for You?

Bottom Line

Real Estate News – May 2022

Real Estate Newsletter April 2022

March Real Estate Newsletter 2022

February Real Estate Newsletter 2022

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