Selling • May 16, 2023

Why You Need A REALTOR® to Sell Your Home

by Debbie Marett

With so much at stake in the selling of a home, here’s why you should work with a skilled professional list and sell your home.

For many people, owning a home is one of the largest financial transactions they’ll make, which is why 87% of sellers rely on an agent to be their guide. It’s estimated that real estate agents play more than 150 roles during an average home transaction, so it’s best to leave it to the pros.

Expertise and Experience: REALTORS® are professionals who have specialized knowledge and experience in the real estate market. They understand the complexities of the selling process, including pricing, marketing, negotiating, and legal requirements. Their expertise can help you navigate through potential pitfalls and ensure a smooth transaction.

Pricing Strategy: Determining the right price for your home is crucial to attract potential buyers while maximizing your returns. REALTORS® have access to extensive market data, including recent sales and comparable properties, which enables them to assess the value of your home accurately. They can help you set a competitive price that aligns with the market conditions and your goals.

Marketing and Exposure: REALTORS® have a wide range of marketing tools and resources at their disposal to promote your property effectively. They can create professional listings, showcase your home through high-quality photographs and virtual tours, advertise it on multiple listing services (MLS), and leverage their network and connections to reach a broader pool of potential buyers. This increased exposure can lead to more showings and ultimately a faster sale.

Negotiation Skills: Negotiating with buyers can be a complex and emotionally charged process. REALTORS® are skilled negotiators who can represent your interests and help you secure the best possible deal. They understand market trends, buyer motivations, and effective negotiation strategies, allowing them to navigate offers, counteroffers, and contingencies to achieve favorable outcomes.

Time and Convenience: Selling a home requires a significant investment of time and effort. By working with a REALTOR®, you can offload many tasks and responsibilities to them. They handle inquiries, schedule showings, facilitate open houses, and coordinate with potential buyers and other parties involved in the transaction. This saves you valuable time and allows you to focus on other priorities in your life.

Professional Network: REALTORS® have established relationships with a network of professionals in related fields, such as mortgage brokers, home inspectors, appraisers, and attorneys. They can provide recommendations and connect you with trusted professionals who can assist with various aspects of the selling process. This network can streamline the process and ensure that all necessary steps are completed efficiently.

Legal Protection: Selling a home involves legal contracts, disclosures, and other paperwork that must comply with local regulations. REALTORS® are well-versed in these requirements and can help you navigate the legal aspects of the transaction. They can ensure that all necessary documents are prepared correctly, review contracts on your behalf, and safeguard your interests throughout the process.

While it is possible to sell a home without a REALTOR®, leveraging their expertise and services can significantly enhance your chances of achieving a successful sale at the best possible terms and price.

If you are selling your property and plan to purchase another home, your real estate agent will be a valuable partner to help ensure everything goes smoothly. In fact, 53% of sellers nationwide use the same agent to purchase their next home.

Contact me today to discuss listing your property for this selling season. I can help!

Uncategorized • January 5, 2023

Homestead Exemptions – 2023 Time to File

by Debbie Marett

If you purchased a home in 2022, it is time to file your HOMESTEAD EXEMPTION. It is free and most of the time, you can do it online.

If I can be of service or answer questions, please reach out!

Homestead exemptions remove part of your home’s value from taxation, so they lower your taxes.

– All residence homestead owners are allowed a $40,000 exemption from their home’s value for school taxes.

– Individuals aged 65 or older or disabled residence homestead owners qualify for an additional $10,000 exemption.

For a complete list of additional exemptions, qualifications and applications visit the links below:

Travis County – https://traviscad.org/homesteadexemptions

Williamson County – https://www.wcad.org/forms-and-applications

Bastrop County – https://bastropcad.org/before-you-continue-hs

Hays County – https://hayscad.com/forms

Uncategorized • December 22, 2022

November 2022 Central Texas Housing Report

by Debbie Marett

ABOR: Median price for a home in Austin-Round Rock MSA stays flat, no sales or price records set. November housing inventory nearly quadruples.

AUSTIN, Texas —For the first time since February 2019, median home prices in the Austin-Round Rock MSA experienced a 0% year over year increase, according to the Austin Board of REALTORS® November 2022 Central Texas Housing Market Report. As housing inventory and days on the market continue to steadily increase across the MSA, the report indicates normal market activity could be here to stay, as Austin’s housing market maintains its trajectory toward balance and sustainability. For the first time since the spring of 2020, there were no records broken for home sales or median price in either the MSA or City of Austin.

“It’s a relief to see more homes available and sitting on the market long enough to give buyers an opportunity to think before they leap,” Cord Shiflet, 2022 ABoR president, said. “This healthy competition creates an opportunity for homebuyers, who may have struggled within the past two years, to take their time and find a home they love. At the same time, sellers who can still enjoy deep equity should connect with your REALTOR® to discuss the best way to prepare and market their home.”

Last month, home sales declined by 36.6% to 2,026 closed listings— the largest drop in closings by percentage since May 2020 during the initial COVID-19 economic hesitancy when closings fell 29.2%. Sales dollar volume fell by 36.8% to $1,175,435,108 as new listings declined 17.8% to 2,406 listings across the MSA. Pending listings dropped by 38.3% to 1,987 listings and available inventory increased by 2.3 months to 3.1 months of inventory. Homes spent an average of 58 days on market, up 36 days from November 2021.

Market Info • November 22, 2022

October 2022 Central Texas Housing Report

by Debbie Marett

Buying • Market Info • October 25, 2022

Should You Still Buy a Home with the Latest News About Inflation?

by Debbie Marett

While the Federal Reserve is working hard to bring down inflation, the latest data shows the inflation rate is still high, remaining around 8%. This news impacted the stock market and added fuel to the fire for conversations about a recession.

You’re likely feeling the impact in your day-to-day life as you watch the cost of goods and services climb. The pinch it’s creating on your wallet and the looming economic uncertainty may leave you wondering: “should I still buy a home right now?” If that question is top of mind for you, here’s what you need to know.

Homeownership Is Historically a Great Hedge Against Inflation

In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge against those rising costs because you can lock in what’s likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. James Royal, Senior Wealth Management Reporter at Bankrate, explains:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

And with rents being as high as they are, the ability to stabilize your monthly payments and protect yourself from future rent hikes may be even more important. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains what happened to rents in the latest inflation report:

“Inflation refuses to budge. In September, consumer prices rose by 8.2%. Rents rose by 7.2%, the highest pace in 40 years.”

When you rent, your monthly payment is determined by your lease, which typically renews on an annual basis. With inflation high, your landlord may be more likely to increase your payments to offset the impact of inflation. That may be part of the reason why a survey from realtor.com shows 72% of landlords said they plan to raise the rent on one or more of their properties in the next year.

Becoming a homeowner, if you’re ready and able to do so, can provide lasting stability and a reliable shelter in times of economic uncertainty.

Bottom Line

The best hedge against inflation is a fixed housing cost. If you’re ready to learn more and start your journey to homeownership, let’s connect.

Buying • October 25, 2022

Pre-Approval Is a Critical First Step on Your Homebuying Journey

by Debbie Marett

If you’re planning to buy a home this year, one of the first steps on your journey is getting pre-approved. Especially in today’s market when mortgage rates are higher than they were just a few months ago, getting a mortgage pre-approval can be a game changer. Here’s why.

What Is Pre-Approval?

To better understand why pre-approval is key, it’s important to know what pre-approval is. The Mortgage Reports explains it like this:

When you’re ready to take the leap into homeownership, your first step is mortgage preapproval. . . . A mortgage preapproval is when a lender determines you’re qualified for a home loan. Your preapproval letter shows the maximum loan amount you’re approved for (your home buying budget), as well as the specific interest rate and loan term you can expect.

As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand your true price range and how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with mortgage rates rising and impacting affordability, a solid understanding of your numbers is even more important.

Pre-Approval Can Signal You’re a Serious Buyer

Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. A recent article from realtor.com notes:

“. . . getting pre-approved can actually improve your chances of falling into the sellers’ good graces, and you’ll want to get it done as early as you possibly can in the home-buying process.”

Even though bidding wars are easing this year as the market shifts, preapproval is still an important part of making a strong offer. It can help a seller feel more confident because it shows you’re serious about their home and that you’re a qualified buyer.

Bottom Line

Getting pre-approved for a mortgage is critical. It helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local trusted lender so you have the tools you need to succeed as a homebuyer in today’s market. I have a list of lenders to share to get you started.

Market Info • October 18, 2022

September 2022 Central Texas Housing Market Report

by Debbie Marett

During the month of September, homebuyers in the Austin-Round Rock MSA gained the most leverage they’ve had in over a decade as home price growth slows and inventory continues to increase.

Buying • October 17, 2022

Why Now is Still a Great Time to Buy a House

by Debbie Marett

With the Federal Reserve having hiked interest rates multiple times this year, resulting in mortgage rates rising as well, there’s an undercurrent that now is not the time to buy a house. But there are savings to be had and other benefits to doing just that. People considering buying a home should not let negative news reports sway them.

Here are five reasons why it’s still a great time to become a homeowner.

Many home prices are being reduced most everywhere
This past spring and summer saw a frenzy of people wanting to buy, resulting in bidding wars and homes being priced way above what they might have been even a year earlier. So while you won’t get a super-low fixed mortgage right now, you will likely save many thousands of dollars on the house’s price. And if you review mortgage rates over the last 25 years, 7% is close to average.

Owning will almost always beat renting
Unlike the housing market, which has cooled, the rental market is still extremely hot. Paying thousands a month for an apartment builds net worth only for the landlord. Writing mortgage payment checks builds your net worth via the equity owned on the property. Unless you have a really low rent it’s better to own, assuming you can afford it.

Tax benefits are significant for homeowners
It’s been called the best tax break in America–being allowed to deduct mortgage interest paid on federal taxes, assuming you itemize. Since it’s almost all interest paid for the early years of a mortgage, the savings can be significant. With a $200,000 mortgage at 5%, it’s roughly $9,000 interest for years.

Refinancing will likely be an option within a few years
Everyone wants a great mortgage rate, but like the stock market there’s no knowing which way it will trend year to year. While rates are higher now at close to 7% than they’ve been all year, they may go even higher…or lower. Locking in now doesn’t mean you can’t refinance if they go down. You can also consider an adjustable-rate mortgage, which typically has lower rates than the 30-year fixed..

More houses are available with less stress
Buying a house is the biggest purchase most people will ever undertake. For most of 2022 people were having to make lightning-fast decisions, and often were not able to even revisit a house for sale they liked because many were sold within days of being listed. It’s normalizing in many markets, where you can take your time before putting a bid in. That’s the rational way to go about it.