Selling • April 4, 2025

The #1 Thing Sellers Need To Know About Their Asking Price

by Debbie Marett

When you put your house on the market, you want to sell it quickly and for the best price possible; that’s generally the goal. But too many sellers are shooting too high right now. They don’t realize the market has shifted as inventory has grown. The side effect? Price cuts are on the rise, but they really don’t have to be. Here’s why.

According to data from Realtor.com, in February, price cuts were the highest they’ve been in any other February since 2019 (see graph below):

If you consider that 2019 was the last true normal year for the housing market – that’s a big deal. We’re getting back to what’s typical for the market.

This isn’t the same frenzied seller’s market we saw a few years ago. You may not get the same price your neighbor did at the height of the pandemic. And that means you may need to reset your expectations.

Because here’s the reality. If you shoot too high and have to lower your price after the fact, you could actually end up walking away with lower offers than if you’d priced it right from the start. So, how do you avoid that? You lean on your agent.

How an Agent Helps You Nail the Right Price

A great agent doesn’t just pull a number out of thin air. They’ll use real data and market trends to make sure your house is priced based on what your specific home is valued at today. So, you’re setting a realistic price – one that’ll draw in serious buyers.

And based on your agent’s analysis of your local market, they may even recommend strategically pricing slightly below market value to help your house attract more eyes and more competitive offers. Here’s how your agent will determine the right number for your house:

They look at recent sales. What did similar homes in your area actually sell for? Not list for, sell for.
They analyze local market trends. Your home’s value isn’t just about what you want for it, it’s about what buyers in your area are willing to pay.
They craft the right strategy. They’ll make sure your home is priced to attract attention and create a sense of urgency among buyers.

Why Overpricing Backfires

Unfortunately, some sellers still ignore their agent’s advice and prefer to start high just to see what happens. The hope being maybe they get their full asking price, or they at least have more wiggle room for negotiation. But pricing high usually ends up costing you, and here’s why:

Buyers may not even look at it. Today’s buyers are more budget-conscious than ever. If they see a home that seems overpriced, they’re likely to skip it completely rather than try to negotiate.
It could sit on the market for too long. The longer your home sits unsold, the more buyers will assume something’s wrong with it. That can make it even harder to sell down the line.
You might end up getting less. Homes that require a price cut often sell for less than they would have if they had been priced right from the start.

You can see that shake out in the graph below. It uses data from the National Association of Realtors (NAR) to show that the longer a house sits, the less it’ll sell for:

This graph shows that if a house sells within the first 4 weeks it is listed, it usually goes for full price. Based on experience, that’s what usually happens to homes that are priced at or just below current market value. If it’s priced right, buyers will be interested, and, ultimately, willing to pay the asking price – or compete with other buyers and even go over asking.

But if a house isn’t priced right, it doesn’t sell as quickly. And this graph shows that, after the first 4 weeks on the market, the price starts to drop from there. That’s because buyer interest falls off the longer it sits. So, it becomes more likely a seller will either accept a lower offer because that’s all they have, or opt to do a price drop to draw people back in.

Bottom Line

The last thing you want is to list too high, watch your house sit, and then have to drop the price just to get attention. Let’s connect so that doesn’t happen to you.

Want to make sure your home sells quickly and for the best price? Let’s go over the right pricing strategy for your house.

Residential Owner Information • April 3, 2025

Preserve and Protect your Homestead Exemption

by Debbie Marett

By Roland Love, Independence Title Vice President and Attorney

If you own a home in Texas, your residential homestead exemption is one of the most important tools for reducing your property taxes. But did you know that exemptions aren’t automatic and require monitoring?

With Appraisal District Notices arriving soon, now is the perfect time to check your exemption status and ensure you maximize your savings.

How to Qualify for a Homestead Exemption

Texas Property Tax Code (TPTC) section 11.13 establishes the residential homestead exemption. Notably, the amount is currently $100,000 for school taxes (typically around 50% or more of the property tax total), and the amount of eligible acreage is up to 20 acres. An adult owner or a Qualifying Trust may claim the exemption, and the application may be filed at any time (once the deed is recorded). TPCT 11.42 (f). If it is mid-year and the preceding owner has already claimed the exemption, the County Appraisal District (CAD) will treat the exemption claim as filed on January 1 of the coming year. However, the owner should confirm by checking the Notice when received in the Spring.

Why Monitoring Matters

While the residential exemption continues (TPTC 43(c)) without the need for an annual filing, the 2023 Texas legislature added to section 11.43(h-1), requiring each chief tax appraiser to “review” each residential homestead exemption within a five-year period. This review is being phased in, but the review is often conducted as a letter inquiry. Many appraisal districts use a third-party service to flag probable improper homestead exemption, and the appraisal district will then send a letter of inquiry. The taxpayer may be asked to reapply if the flag was a very positive indicator of an improper exemption. In other instances, the taxpayer is requested to verify the residential homestead.

What to Do If You Receive a Letter

Regardless, if a taxpayer does not respond, the residential homestead exemption can be removed. While a taxpayer can reapply, it can be confusing to handle or be overlooked, and, in particular, if taxes are escrowed, there will be a lender and increased escrow to deal with and unwind. Again, the annual Appraisal District Notice should also be checked for exemptions, but an owner may also check the county appraisal district website for the residential homestead exemption. While all exemptions are typically not shown for privacy reasons, the “HS’ is usually shown for residential homesteads. If not, a call should be made to straighten it out. A new application may be required.

Stay on Top of Your Exemptions

Each homeowner is legally responsible for maintaining exemptions and notifying the CAD when an exemption is no longer applicable. It is also helpful to remind your new homeowners to claim the exemption if desired and continue to monitor its application. And be aware that many appraisal districts do not disclose all exemptions on the public website, so a phone call may be the best option.

Market Info • April 3, 2025

Here’s What a Recession Could Mean for the Housing Market

by Debbie Marett

Recession talk is all over the news, and the odds of a recession are rising this year. And that leaves people wondering what would happen to the housing market if we do go into a recession.

Let’s take a look at some historical data to show what’s happened in housing for each recession going all the way back to the 1980s.

A Recession Doesn’t Mean Home Prices Will Fall

Many people think that if a recession hits, home prices will fall like they did in 2008. But that was an exception, not the rule. It was the only time we saw such a steep drop in prices. And it hasn’t happened since.

In fact, according to data from CoreLogic, in four of the last six recessions, home prices actually went up (see graph below):

So, if you’re thinking about buying or selling a home, don’t assume a recession will lead to a crash in home prices. The data simply doesn’t support that idea. Instead, home prices usually follow whatever trajectory they’re already on. And right now, nationally, home prices are still rising at a more normal pace.

Mortgage Rates Typically Decline During Recessions

While home prices tend to stay on their current path, mortgage rates usually drop during economic slowdowns. Again, looking at data from the last six recessions, mortgage rates fell each time (see graph below):

So, a recession means mortgage rates could decline based on the data. While that would help with affordability, don’t expect the return of a 3% rate.

Bottom Line

The answer to the recession question is still unknown, but the odds have gone up. But that doesn’t mean you have to wonder about the impact on the housing market – historical data tells us what usually happens.

When you hear talk about a possible recession, what concerns or questions come to mind about buying or selling a home?

Buying • April 1, 2025

What’s a Good Debt-To-Income Ratio?

by Debbie Marett

You’ll see the term debt-to-income ratio a fair amount if you’re applying for a mortgage. Debt-to-income ratio is also known as DTI.

This is a measure of your monthly debt payments divided by your gross monthly income.

Lenders use DTI and your credit history to determine whether or not you can repay a loan. Every lender will have its own DTI requirement.

Calculating Your DTI

A lender wants to see a low DTI because this shows them that you’re more likely to be able to manage your monthly payments successfully.

When you have a low debt-to-income ratio, it’s a healthy balance between your debt and how much you’re making. The lower this percentage, the higher the chances you’ll get a loan or line of credit.

If you have a high ratio, it shows a lender that your debt is already too high compared to your income, which could be a red flag you shouldn’t take on more obligations financially.

To calculate your DTI, you should add your total monthly obligations that are recurring. These obligations can include mortgage and student loans, car loans, credit card payments, and child support. Then you divide this by your gross monthly income.

Your gross monthly income is the amount you earn every month before taxes and deductions.

How Does DTI Affect Getting a Mortgage?

Lenders want a broad, comprehensive view of your finances when you apply for a mortgage. When you apply, they’re going to look at your DTI primarily to decide whether or not to approve you and figure out how much you can afford to pay for a house.

Lenders also look at your credit history, your money for a down payment, and your gross monthly income.

What DTI Does a Lender Want to See?

While every lender is different, most lenders want a DTI ratio smaller than 36%. They want to see that no more than 28% of your debt will go toward servicing your mortgage.

If you have a gross income of $5,000 a month, the maximum amount you could put toward mortgage payments would be around $1,400 a month in the eyes of most lenders.

Lenders also assess your total debts, which shouldn’t be more than 36%, so again, if you were making a gross income of $5,000 a month, that would be around $1,800.

In most cases, 43% is the highest ratio you can have as a borrower and still get a qualified mortgage. Otherwise, if your number is above that, your lender will probably deny your application because your expenses each month would be seen as too high compared to your income.

Your debt-to-income ratio doesn’t affect your credit score, and your income isn’t included in calculations that credit-reporting companies do.

What does count toward your credit score is another ratio—credit utilization. This is the amount of credit you use compared to your limits.

Credit reporting agencies know your credit limits on individual cards and total. You should aim to keep the balances on your cards at no more than 30% of your credit limit. Lower is always better here.

Summing Up

Your DTI gives lenders an idea of how you manage debt and if you have too much. If your DTI is less than 36%, your debt is considered manageable relative to your income, and at least based on this factor, you should be able to access new lines of credit.

If your DTI is between 36%-42%, lenders might be concerned about lending you money. If your DTI is 43%-50%, creditors might deny applications. You should focus on paying off the debt before applying for something like a mortgage.

If your DTI is higher than 50%, you might consider debt relief options.

Selling • April 1, 2025

What to Know About Selling a Home to a Family Member

by Debbie Marett

It’s not uncommon to want to sell a home to a family member, but it can become a tricky situation. You have to be mindful of not only the personal elements that can come with doing this type of transaction with a relative, but the IRS may also scrutinize the transaction if you don’t avoid certain red flags.

It’s perfectly legal to sell a home to a family member as long as you’re not just doing it to avoid taxes. If you’re selling the home at a very discounted rate, you might have to pay an estate and gift tax, but beyond that, it’s just like any other real estate transaction.

Owner-Financed

One option if you’re selling your home to your child, for example, is to do an owner-financed sale. Then, your family member would make payments to you instead of a bank. However, you need to legally arrange it so that if your relative defaults, the home goes back to you automatically and you can then sell it.

Transferring a Property Title

There are different ways you can end up transferring the title to a property to your relative.

For example, you can do a quitclaim deed. That transfers your interest in the property to your relative, but they aren’t protected from legal claims. A general warranty deed transfer gives all the property rights go to your family member, and it also protects from future actions against said property.

A special warranty deed transfer protects the family member from any issues that you might have dealt with when you owned the home.

Regardless of the option you choose, it’s really important to talk with a lawyer first to protect everyone involved.

There are different tax implications for each type of transfer.

Gifting a House to a Family Member

If you want to give someone a house, you can, but you’re going to pay taxes if you do so.

You can gift up to a certain amount each year to as many people as you choose without being hit with a gift tax, but you can’t go over your federal gift and estate tax exemption in your lifetime. You can gift as much as you want to your spouse without paying taxes on it.

Some people will gift a certain amount of their home each year to their family member so that it’s tax-free.

However, if you gift a home to a family member unless they live there and it’s their primary residence for two years, when they sell it, the original price paid is the tax basis for the person you gave the home to.

Follow Fair Market Value If You Aren’t Gifting the Home

If you’re not going to work it out so that you’re gifting your home to a loved one, you need to stay relatively close to the fair market value. Yes, you might sell it for under its value, which happens all the time in real estate, but if you go too low, the IRS might get involved.

There’s a term here called a non-arm’s length transaction. If you give too good a deal on your home, the IRS might take notice. That doesn’t mean you can’t give a good deal, as long as it’s not too good to be true.

Aim to sell the house for around 75% of its fair market value and no lower.

The big takeaway is that yes, you can absolutely sell your home to a loved one or potentially gift it, but there are tax implications in doing so.

Before you do anything, talk to an attorney who can walk you through your options and help you figure out which is best for you.

Selling • March 10, 2025

Consumer Guide: Seller Disclosures

by Debbie Marett

When selling your property it is most important to disclose, disclose and disclose!

Sellers must disclose certain characteristics of the property to potential buyers. An agent who is a REALTOR® can help you understand why and what you need to disclose, but here are the basics:

What are seller disclosures?

Seller disclosures are certain material defects—elements of a home that may negatively impact its value—that sellers must disclose to buyers in a legal document. While specific disclosures are dependent on state and local law, sellers are typically required to list any completed repairs, information about natural hazards, property defects, missing essentials, land-use limitations, HOA guidance, deaths on the property, and any other conditions that might negatively impact the property’s value.

Why are seller disclosures important?

Seller disclosures are important because they help protect both the buyer and the seller. The disclosures allow buyers to choose whether they want to make an offer on the house based on what the seller is disclosing about the property, or can influence the offer amount. For sellers, the disclosure can help protect them from legal liability, meaning they will not be responsible for any issue that arises on the property after the sale as long as it was previously disclosed.

What is a Seller’s Disclosure?

Legal Requirement:

Texas law requires sellers of single-unit residential real property to provide a written notice to purchasers, outlining their knowledge of the property’s condition.
Purpose:

This notice, also known as a Seller’s Disclosure Notice, aims to inform potential buyers about any known issues or defects that could affect the property’s value or desirability.
Not a Warranty:

The disclosure statement is not a warranty, and it doesn’t substitute for inspections or other due diligence the buyer may wish to conduct.

What if there are no defects that need to be disclosed?

A seller can state that there are no material defects on a property on the disclosure form. However, even if you are unsure as to whether a potential defect needs to be disclosed, it is best practice to disclose it to avoid potential legal liabilities in the future.

What to Disclose?

Material Facts:
Disclose any material facts that could affect the property’s value or desirability, including:

Structural issues (foundation, roof, etc.)

Water damage, flooding, or drainage problems

Pest infestations (especially termites)

Age and condition of major systems (HVAC, electrical, plumbing)

Environmental hazards (mold, radon, asbestos, etc.)

Natural hazards (floods, earthquakes, etc.)

Zoning issues (school districts, transportation projects, etc.)

Repairs made and repairs needed
Special Circumstances:
Disclose any special circumstances, such as:

Location in a flood zone

Fire damage

Ongoing disputes with neighbors

What happens if a material defect about a property is not disclosed?

If a seller knowingly withholds information regarding a required seller disclosure, there may be legal consequences. A buyer could cancel the sale, or the seller could be legally liable. Sellers should be honest with any and all details they are required to disclose about the home.
When in Doubt, Disclose:

If you’re unsure whether something needs to be disclosed, err on the side of caution and disclose it.

Info about HOA's and CCR's • February 27, 2025

HOA Covenants: What to Know About CC&Rs

by Debbie Marett

HOA covenants can shape neighborhoods and the lives of residents significantly.

Here’s what you should know about HOA CC&Rs.

With 75.5 million Americans living in communities governed by homeowners associations (or HOAs) and 3,000 new HOAs expected to form in 2025, community associations are quickly becoming an important aspect of real estate transactions.

An HOA is an organization that creates and enforces rules and regulations for the properties and residents of a given residential community. The regulations or guidelines governing the HOA community are called restrictive covenants and are outlined in a document called a Declaration of Covenants, Conditions, and Restrictions (CC&Rs). These CC&Rs can play an integral role in how an HOA influences day-to-day life in a neighborhood. Let’s explore them more so you are more in the know.

What are HOA Covenants?

HOA covenants are the rules and expectations for living in community governed by a homeowners association. For example, an HOA covenant may prevent residents from painting their home exteriors certain colors, or it may require all residents to pay a certain fee. Rules may differ from one community to the next, but they usually exist to protect property values and facilitate a good standard of living in the community.

HOA covenants have three types of governing documents: Covenants, conditions and restrictions (CC&Rs); bylaws; and rules and regulations.

Covenants, Conditions & Restrictions (CC&Rs)

CC&Rs are officially recorded and filed with the state. They cover the rights and obligations of both the HOA and the community residents. CC&Rs may cover property-use restrictions, maintenance obligations (for the HOA and residents), rule enforcement mechanisms, dispute resolution and insurance obligations.

Bylaws

Bylaws typically cover the day-to-day governance aspects of the HOA. This includes HOA board election processes, frequency of elections, number of board members, length of service terms and the responsibilities of the board members.

Rules and Regulations

Rules and regulations are a less permanent extension of CC&Rs. They often include rules that must be updated seasonally based on changing needs.

CC&Rs, bylaws and rules can all be amended, provided the board and members are largely in agreement. HOAs may choose to update their covenants every few years.

Why are HOA Covenants and CCR’S Important?

HOA covenants and CC&Rs are important because they can substantially impact the lives of community residents. They offer amenities and benefits, but these advantages may come at the cost of personal choice and individuality.

Limits on paint colors and presentation: HOAs may require residents to adhere to a strict code for home exteriors. This may mean residents aren’t allowed to personalize their home’s exterior to their liking through paint colors, lawn ornaments, or seasonal decorations.
Fees and amenities: Homeowners living in HOA communities must pay HOA fees for as long as they own their home. These fees can be steep depending on the community and cannot be avoided, even if homeowners choose not to use common amenities.
Quality of life: An HOA’s regulations, fees, and well-maintained common spaces all contribute to protecting property values in the community. HOA communities are a great fit for people aligned with these goals but may interfere with individuals seeking full independence.

What are some common features of CCR’S in HOA’s?

HOA covenants are usually created when a developer forms the community. The developer may attempt to anticipate the community’s needs based on their observations and experience. This is why HOA CC&Rs vary from one community to the next. However, when educating a client, real estate professionals can cite some of the following examples:
- Property maintenance standards: This may mean no piles of trash, broken or damaged fencing, or unsightly sheds.
- Pet rules: The HOA may prohibit pets above a certain weight, livestock (such as chickens) and restrictions on certain dog breeds.
- Parking and guests: The HOA may not allow parking in the street or oversized guest vehicles like RVs in the driveway. They may also restrict house parties, large celebrations or get-togethers on your property.
- Landscaping rules: Rules may prohibit flower beds or herb gardens in the front yard. Residents may not be allowed hardscaping elements like fountains, treehouses or swings.
What should you know about Covenants?

When considering buying a home in an HOA neighborhood, here’s what you should discuss with your real estate agent:
- HOAs may impact property values: Living in an HOA often means living in a clean, well-maintained neighborhood with community amenities. These benefits may inflate the price of the home.
- HOAs can shape neighborhoods: Based on their rules, HOAs can have a positive or negative impact on residents’ lives. The neighborhood may be clean and offer great amenities. However, certain HOA rules may mean residents can’t have the gardens or native plants they want, or only particular pets may be allowed in the community.
- HOAs may affect how homeowners use their home: An HOA may affect the owner’s ability to rent out the house. Many HOAs also block residents from using their homes for anything besides residential purposes. This means residents may not be able to run a small business from their home. This rule doesn’t apply to all HOAs or all small businesses, but it highlights the importance of understanding the HOA’s CC&Rs before buying a house.
  
  HOA’s for Buyers or Sellers:
  
  As your real estate professional, I can help buyers navigate HOAs by understanding your needs at the outset. For example, an HOA with rules against leasing may not be suitable for a buyer wanting to turn the home into a vacation rental. Similarly, an HOA with strict rules about pets may not be right for someone with large dogs.
  
  Finding the right house while navigating HOA rules may make house hunting a longer process, but through research and comparison I can help a buyer find the perfect home. Your specific needs may warrant a larger conversation about whether an HOA is the right fit.
  
  Agents representing sellers can find out if they are required by law to disclose any HOA information, such as unpaid dues or litigation. They can also highlight the benefits of the HOA to potential buyers.
  
  Where can I find CC&Rs?
  
  Before showing a house to a client, real estate agents can obtain a copy of the applicable HOA CC&Rs from the seller or listing agent, the county recorder’s office, or an HOA board member. You may also inquire about any outstanding disputes the seller has with the HOA involving potential litigation and unpaid dues or fines.
  
  Are CC&Rs legally binding?
  
  HOA CC&Rs are legally binding documents as long as they comply with local, state and federal law. When buying an HOA home, people typically sign a contract that states they’ve read and understand the HOA CC&Rs. Buyers are then bound by the contract.
  
  How are CC&Rs enforced?
  
  The HOA usually has a detailed process for dealing with rule-breakers. The process may begin with one or two violation notices followed by fines. If the problem remains unresolved, the board may set up a meeting or hearing to discuss the issue and how best to proceed. If the situation escalates, the HOA may take legal action against the resident.

Buying • January 30, 2025

Too Many Homes for Sale, or Not Enough? Making Sense of Recent Headlines for Home Buyers

by Debbie Marett

If you’ve been thinking about buying a house, you’ve probably heard that there aren’t that many homes for sale. And if you’ve been actively looking, chances are you can confirm that firsthand. Browsing listings often feels like looking for a needle in a haystack. You find a home you like, and before you can even schedule a showing, it’s already under contract.

If you’ve been following the market, you may have also heard that one solution to the housing shortage is for builders to put more new homes on the market. After all, it makes sense—if there’s not enough to go around, why not make more?

So here’s where things might start to feel confusing. Recent news headlines paint two very different pictures.

On one hand, an article from Fast Company points out that builders currently have the highest number of unsold new homes since 2009. That seems like a surplus, right? Surely that should ease the pressure on the market. But on the other hand, MSN recently reported that a lack of inventory, not rising interest rates, is the single biggest obstacle facing buyers.

It’s a bit of a head-scratcher: are there too many homes on the market, or not enough? And more importantly, how does it all affect you as a potential buyer?

If you’re feeling a bit perplexed by these seemingly contradictory headlines, you’re not alone. Real estate is complicated, and national news doesn’t always make it easier to get a clear picture.
The reality is, both statements can be true at the same time. It’s not as simple as one or the other.

Builders do have a lot of new homes sitting unsold. But the total number of new homes on the market is still a relatively small fraction of the overall housing inventory. At the same time, the existing home market is tight, with many homeowners hesitant to sell due to higher interest rates. Together, these factors create a market that can feel like feast or famine depending on where you’re looking.

Confused? That’s okay. The good news is, the housing market isn’t as hopeless as it might seem. It just requires a closer look.

Why Local Markets May Tell a Different Story

The first thing to know about the real estate market is that it’s not just local, it’s hyperlocal. National headlines give us big-picture trends, but what’s happening in your local market might tell a completely different story. For example, a rural, relatively undeveloped area experiencing a building boom may have a high number of unsold new homes. But a more developed neighboring town could be struggling with record-low inventory levels.

According to the National Association of Realtors, 4.38 million homes were sold in 2024. But according to Barron’s, approximately 683,000 of those sales were new homes—that’s about 16% of the total sales. Yes, new home inventory is high relative to recent years, but it’s still just a drop in the bucket compared to the overall market.

For buyers, this means that the availability of homes depends largely on where you’re looking and what kind of home you’re seeking. If you’re in a market where builders have overbuilt, you might find better opportunities to negotiate or score incentives like price reductions, upgrades, or assistance with closing costs. On the other hand, if you’re in a market with little new construction, the competition could be fierce for existing homes, especially in popular price ranges.

Another factor to consider is timing. Builders aren’t just sitting on these homes for fun. They’re anticipating a strong spring market in 2025, which means they’re likely to hold out for better prices rather than sell at a steep discount now. So while there might be more opportunities in certain markets, buyers should still act quickly and strategically.

How to Make Sense of Your Local Market

So what does all of this mean for you? First, it’s important to take a step back from the headlines and get a realistic picture of your local market. That’s where a real estate agent comes in. A knowledgeable agent can help you:

Understand whether your area has a surplus of new homes, a shortage of homes overall, or something in between.
Identify which price ranges are experiencing the most competition and which offer more opportunities.
Spot potential deals on new homes in markets where builders are eager to sell.

If you’re in a market with a lot of unsold new homes, you might be in a great position to find a deal—but that doesn’t mean you should wait. Builders are betting on a strong spring market, so the incentives you see now might not be around in a few months.

If, on the other hand, you’re in a market where inventory is tight, it’s even more important to work with a local expert. They can help you navigate the challenges of competing with other buyers, whether that means finding off-market properties, crafting a strong offer, or simply understanding which neighborhoods offer the most value.

The Takeaway:

News headlines about the current real estate market seem to contradict each other. Some reports say there is more new home inventory on the market, which is supposed to help cut down on buyer competition and possibly lower prices. On the other hand, there are reports that there still isn’t enough inventory to satisfy demand!

While national trends are interesting (and confusing!), real estate always comes down to your local market and your specific situation.

If you’re considering buying a house, the best first step is to talk to your local real estate agent (me!) who knows the ins and outs of your area. They’ll be able to give you a clearer picture of what’s really going on and help you determine the best strategy for your home search. Whether you’re looking for a brand-new home with all the latest upgrades or hoping to find a hidden gem in a competitive market, the right guidance can make all the difference.

I can help! Let’s connect!

Selling • January 27, 2025

What To Do If Your House Didn’t Sell

by Debbie Marett

Last year, as many as 1 in 3 sellers took their home off the market because it wasn’t selling.

If this happened to you too, you don’t need to be embarrassed. The market was very challenging in 2024!

What you need are answers. As your local real estate agent, I can help with that by seeing if it was priced too high, needs some repairs, or didn’t get the right exposure. If you still want to move, let’s connect to come up with a new strategy. Together, we can get your house sold.

Buying • Market Info • December 29, 2024

Home Appreciation: Your Best Protection Against Inflation

by Debbie Marett

Home Appreciation: Your Best Protection Against Inflation

Authored By: The MBS Highway Team

The Mortgage Bond market continues to pay close attention to inflation, which is a key driver of mortgage rates. Remember, inflation is the arch enemy of fixed investments like Mortgage Bonds because it erodes the buying power of a Bond’s fixed rate of return. If inflation is rising, investors demand a rate of return to combat the faster pace of erosion due to inflation, causing interest rates to rise. This is why keeping an eye on inflation remains critical.

The good news is that inflation has cooled considerably after peaking in 2022, with the three major inflation measures (Consumer Price Index, Producer Price Index and Personal Consumption Expenditures) showing significant year-over-year declines in both their Headline and Core readings. Core removes food and energy prices, which are often volatile.

While the rate of inflation has been decelerating, meaning prices are rising at a slower rate than they were, prices are still going up. There is a difference between the rate of inflation slowing versus the cumulative impact of inflation, which consumers feel. This is why news headlines may say that inflation is coming down, even if people feel differently when they’re purchasing goods and services.

Protecting Yourself Against Inflation

One of the best hedges against inflation is buying assets that do better than the rate of inflation and protect your buying power. Perhaps one of the best options is purchasing a home, which is much better than the alternative of renting.

As you can see in the chart below, the net worth of the average homeowner is now 42 times that of a renter ($415,000 vs $10,000). The absolute level of net worth has also grown impressively for homeowners, as homes have appreciated significantly over the last several years.

As a result of higher home prices and higher mortgage rates, the median age of a first-time homebuyer has risen as affordability has become more challenging. Just three years ago, the median age of a first-time homebuyer was 33, but this age has now risen to 38, meaning next year median first-time homebuyers will have been born in 1987.

This also brings demographic implications. When we look at a chart of birth rates, we can clearly see a huge surge in birth rates until 1990, meaning we should see more people over the next several years coming of age to buy a home. And birth rates settled around relatively higher levels in the years following as well, adding to the level of demand.

The bottom line is this growing demand for homes in the near future will be supportive of home prices, as inventory remains tight around the country.

How an Agent Helps You Nail the Right Price

Why Overpricing Backfires

Bottom Line

How to Qualify for a Homestead Exemption

Why Monitoring Matters

What to Do If You Receive a Letter

Stay on Top of Your Exemptions

A Recession Doesn’t Mean Home Prices Will Fall

Mortgage Rates Typically Decline During Recessions

Bottom Line

Calculating Your DTI

How Does DTI Affect Getting a Mortgage?

What DTI Does a Lender Want to See?

Summing Up

Owner-Financed

Transferring a Property Title

Gifting a House to a Family Member

Follow Fair Market Value If You Aren’t Gifting the Home

What are seller disclosures?

Why are seller disclosures important?

What if there are no defects that need to be disclosed?

What happens if a material defect about a property is not disclosed?

What are HOA Covenants?

Covenants, Conditions & Restrictions (CC&Rs)

Bylaws

Rules and Regulations

Why are HOA Covenants and CCR’S Important?

What are some common features of CCR’S in HOA’s?

What should you know about Covenants?

HOA’s for Buyers or Sellers:

Where can I find CC&Rs?

Are CC&Rs legally binding?

How are CC&Rs enforced?

Why Local Markets May Tell a Different Story

How to Make Sense of Your Local Market

The Takeaway:

Home Appreciation: Your Best Protection Against Inflation

Protecting Yourself Against Inflation