Buying • June 22, 2022

4 Ways Mortgage Insurance Helps Homebuyers

by Debbie Marett

Shared aticle by Marshall Gayden RIS Media June 22,2022 EVP of Mortgage Insurance Sales at Radia

Real estate agents know all too well, today’s homebuyers are navigating one of the most difficult housing markets in recent memory, and affordability has become a major obstacle. Home prices are at the highest levels ever recorded, there is limited inventory to choose from, competition for affordable homes is still fierce and recent mortgage rate increases have sapped some of their purchasing power. Buyers are stressed—exhausted by the process and strained financially by the increasing cost to buy.

Mortgage insurance (MI) may be the key to helping more buyers afford a home in this environment. It works by lowering the traditional 20% down payment barrier, which has become increasingly difficult for buyers to save up. With the median price of a home in the United States now above $300,000, that means buyers need to have more than $60,000 saved for a 20% down payment. With a 3% down payment loan made possible by private MI, those buyers only need about $9,000.

Thinking of MI as an advantage for homebuyers requires a change of perspective for many agents who are used to viewing it as something to be avoided at all costs. But consider this: MI has a range of benefits that can help struggling buyers achieve their dream of owning a home even in this challenging market.

Here are four significant ways MI can help buyers:

Afford a home sooner. Waiting to save a 20% down payment can be a huge barrier for many homebuyers. And, as home prices continue to rise, the savings needed also increases. With private MI, a buyer may be able to purchase a home with as little as 3% down and begin to build equity and long-term wealth.

Increase their budget. If your buyer is struggling to find the right home in their price range, MI can help increase their purchasing power by putting a lower percentage down on a more expensive home. For example, a buyer planning to make a 20% down payment on a $300,000 home could use those same savings to put 15% on a $400,000 home if they qualify for the loan amount.

Cover an appraisal gap. MI can be a simple and nearly seamless solution that may also work for buyers facing an appraisal gap. In certain instances, MI may be used to shift the loan-to-value ratio (LTV) and restructure the loan so buyers can cover appraisal gaps and still have enough money to meet minimum down payment requirements.

Preserve their savings. Even for buyers who could afford a 20% down payment, they may still prefer a lower down payment with MI as an opportunity to set aside some cash as a cushion for uncertain economic times.

Keep in mind that most MI products are temporary. Once the homeowner makes a certain number of payments or the property appreciates to a certain loan-to-value ratio and meets loan seasoning requirements, the insurance may be eligible for cancelation. When home prices go up rapidly, as they have in recent years, the payment can drop away even faster.

It is time to change the mindset on MI to a benefit—not a burden—for those who need it. MI helps millions of buyers achieve their dreams of homeownership each year.

Uncategorized • June 8, 2022

Real Estate Newsletter June 2022

by Debbie Marett

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

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

Housing Market Still Favors Sellers–but has it Set to a Change?

Ever since interest rates decreased at the beginning of the pandemic, the real estate market throughout most of the country has heavily favored sellers. When interest rates decrease, more buyers enter the market to secure mortgage loans with low interest rates. High buyer demand means that sellers oftentimes receive multiple bids.

The combination of low interest rates, extremely quick sales, low inventory, and rapidly increasing price gains, has the housing market favoring sellers by a considerable amount. While this is still true today, market conditions may be set to change in the near future.

What the Future Indicates for Buyers
Over the past six months, interest rates have been steadily increasing. While rates averaged around 3.05% towards the end of 2021, they have since increased to an average of 5.10% as of May. Even though there are still a high number of potential buyers on the market, the higher interest rates have allowed the market to stabilize somewhat.

Keep in mind that home values rose by upwards of 20% over the course of 2021, which means that buying a home today may be somewhat more expensive than it was just one year ago. If you’re set to buy a home, the housing market pivoting away from sellers is highly beneficial.

While home prices may have been lower one year ago, the increased buyer competition in the market made it difficult for many buyers to make bids that were high enough to satisfy the seller. Once demand decreases among buyers, home inventory will increase, which means that you may find it easier to purchase a home without needing to make an offer that’s far higher than the listing price.

In general, you should expect demand to still be relatively high and housing inventory to be relatively low. However, both of these metrics have improved in recent months, which means that the market shouldn’t be as intense as it was in 2021. Home prices are also expected to rise this year but shouldn’t come close to the 20% increase that occurred last year.

What the Future Indicates for Sellers
If you’re looking to sell your home but worry that the market may not be favorable for doing so, the truth is that the housing market still favors sellers. The main difference is that there may not be a lengthy bidding war when you list your home on the market. However, sellers still hold ample amounts of negotiating power when an offer is made. If you want to make sure that your home is sold without delay, perform any necessary upgrades and repairs before placing your home on the market.

While it’s unlikely that the housing market will shift completely to favoring buyers, it’s looking increasingly likely that the market will be more balanced over the next year or so. A balanced and healthy market is great for buyers and sellers alike.

An open letter to sellers about today’s housing market

This is a great takeaway on the current state of our market and some tips!
May 16, 2022 By Ryan Lundquist

Some key takeaways:

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 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, 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.

5) Avoid strongarm moves: Buyers are picky about getting into contract AND staying in contract. Sellers asking “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.

6) Be ready to negotiate: Listen to what buyers are asking for, and help the deal feel good for them too. This isn’t just about you.

7) It’s not time to push the price: Look, sellers aren’t entitled to always netting more than recent sales. 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.

8) 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). Buyers notice details, and solving minor issues only helps give them fewer reasons to say NO.

9) The market is 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.

10) Don’t expect to go $100,000 over: “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.

For the entire article visit

How to Spruce Up your Place for a Summer Sale

If you’re interested in putting your home on the market, doing so during the warm summer months is a great idea. Once temperatures increase and plants begin to grow, it’s much easier to enhance a home’s curb appeal. Pair those curb enhancements with some interior upgrades and you’ll be on your way to a speedy summer sale.

Address Curb Appeal with Easy Tasks
When you want to spruce your place up, you should first devote some of your attention to addressing your home’s curb appeal. Your home’s exterior will be the first thing that potential buyers see when they visit your home. Making a good first impression is essential towards converting prospective buyers into legitimate offers.

Consider giving your front door a fresh coat of paint. Use bright colors like yellow or red to set the scene for the warmer summer months. If the door is relatively old, you may want to replace it entirely to get a better return on your investment. Make sure that your lawn is kept freshly mowed and that any noticeable weeds are pulled.

Consider New Appliances and Bathroom Upgrades
The two most important rooms for most buyers are the kitchen and the bathroom. You could enhance the appeal of your home by upgrading bathroom amenities or purchasing new kitchen appliances. In fact, stainless steel appliances are particularly tempting to new buyers according to a recent survey by HomeLight. You might also consider painting these rooms in a light neutral color to reflect more light and make them appear bigger.

As for bathroom upgrades, you could replace your lighting, paint your vanity, or upgrade your faucets. Even small touches like adding a nice rug or installing a beautiful shower curtain could enhance your home’s appearance.

Don’t Forget to Stage your Home
If you want potential buyers to be interested in your home, they need to be able to envision living there while they tour your property, which means that the place shouldn’t be completely empty. It’s also important that your home is free of clutter and doesn’t include too many personal items. If you’re finding it difficult to properly stage your home, consider hiring a staging professional.

Add Some Plants and Artwork
During the hot summer months, your home interior should have a cool and calm atmosphere. You can achieve this environment by using cooler paint hues, adding some indoor plants, and hanging calming artwork. Travel and aquatic-themed pieces are a great choice during the summer.

Whether you’re ready to sell this summer or a year from now, I can help you decide which improvements make the most sense for your property – call me anytime!

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 reach out

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.
https://austxrealestate.com/market-reports

Burnet County – Travis County – Williamson County – Hays County

Market Info • June 6, 2022

Fact or Fiction – “We are in a Housing Bubble”

by Debbie Marett

Market Info • June 6, 2022

Buyers regaining some control as market shifts, supply grows

by Debbie Marett

BY BEN VERDE

June 03, 2022

Buyers regaining some control as market shifts, supply grows: Redfin

The report, released Thursday, found more than one in five sellers dropped their asking price during May 2022, the highest rate since October 2019, as mortgage rates sit at over 5%

Buyers are regaining some control as the market shifts and supply grows, according to a new report.

The report, released Thursday by the online brokerage Redfin, found that more than one in five sellers dropped their asking price during May 2022, the highest rate since October 2019, as mortgage rates sit at over 5 percent, and an increasing share of buyers find themselves priced out of the market.

Redfin’s Homebuyer Demand Index — which uses requests for home tours and other homebuying services from Redfin agents to gauge buyer demand — declined 9 percent during May, as pending sales posted their largest annual decline since Spring 2020, and the number of homes for sale posted their smallest decline since the same period.

The data points to a market that is starting to cool off and shift slightly in the favor of homebuyers according to Redfin, but supply challenges are likely to persist and keep prices elevated.

“The sudden surge in mortgage rates led to a sudden and significant cooldown in the housing market in May,” Redfin Economics Research Lead Chen Zhao said in a statement. “However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home-price growth rates to decline, we don’t expect prices to fall much at the national level. For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.”

Selling • June 2, 2022

Thinking of Selling Your Home Yourself? Think Again…

by Debbie Marett

Thinking of Selling Your Home Yourself? Think Again…

Surveys show that many homeowners and homebuyers are not aware of the true value a REALTOR® provides during the course of a real estate transaction.

The National Association of Realtors found that homes sold through the Multi-Listing Service sold 20 days faster on average, and 20% of FSBO listings had to renew their listing on the MLS because they didn’t sell. … There’s a reason a real estate agent is a full-time job.

Most people hire a real estate agent to sell their home. In fact, 91% of Texans did so in 2020, according to research by the National Association of REALTORS®. If you are considering selling your home on your own, make sure you know what you are in for. The process can be complicated and the stakes high.

Here are just a few of the many reasons a REALTOR® is the best choice to help you sell your home:

Nobody Knows the Market Better Than a REALTOR®
REALTORS® are engaged every day in buying and selling real estate. They know what factors help a property sell quickly and for the highest price. They also understand what causes homes to languish on the market. A REALTOR® will help you make the best decisions to realize your goals.

A REALTOR® Can Help You Get Ready to Sell
Wondering what updates to tackle before putting your home on the market? Unsure how to price your property? What you decide could lead to tens of thousands of dollars in gains or losses. A REALTOR® brings a wealth of experience to help you optimize your sale in these and many other areas. You won’t have to figure out on your own what disclosures are required, which forms to use, and other important considerations.

REALTORS® Make the Whole Process Smoother
It’s exciting when your home goes under contract. But there’s a long road from accepting an offer to successfully closing a sale. A REALTOR® is your trusted resource to guide you the rest of way. A REALTOR® can also help you deal with surprises that pop up with appraisals, inspections, insurance, your loan, and dozens of other steps required to successfully sell your home.

Not All Agents are REALTORS®
Only REALTORS® pledge to follow a strict code of ethics and are expected to maintain a high level of real estate knowledge. When you are thinking of selling your home, talk to a REALTOR®.

Market Info • June 2, 2022

Should Inflation Change Your Homebuying Plans?

by Debbie Marett

Shared from My Home by Freddie Mac^® 2/1/2022

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?

You’ve likely noticed that life grew more expensive in 2021. A combination of government aid, demand for goods and bottlenecked supply chains has increased the cost of everyday items, including housing. This is known as inflation. When it occurs, it generally means your hard-earned dollars don’t stretch quite as far as they used to.

In 2021, inflation rose to a degree last seen in the 1980s. Some of the largest and most necessary living expenses cost 7.0% more at the end of 2021 than at the end of 2020. This included homes. In 2021, the median sales price for all houses sold in the United States reached $400,000 for the first time ever, up nearly $70,000 dollars from 2020.

The nation’s central bank, the Federal Reserve, aims to combat inflation by pulling money out of the economy and increasing interest rates.

Though the Federal Reserve has yet to act on this approach, mortgage interest rates have already risen in anticipation of the change. According to the results of Freddie Mac’s most recent Primary Mortgage Market Survey^®, the interest rate for a 30-year fixed-rate mortgage averaged 3.55%, up from 2.73% at this time last year. We forecast that interest rates will average 3.6% in 2022 and 3.9% in 2023.

To summarize: Houses have never been more expensive and now rates are rising. So, should you hold off on buying a home?

The Case for Buying a Home Today

If you’re financially ready, now may be a great time to buy.

Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise — as was the case in 2021.

Housing costs increased in 2021 due to a combination of factors: inflation mixed with a high demand for housing (due to low rates and work-from-home arrangements) and a low housing supply.

The average home price, for instance, increased nearly 20% year-over-year. For those looking to buy this year, we forecast a moderately lower demand for homes, due to higher mortgage rates, and we expect house prices to cool somewhat.

Rents also increased in 2021, though not to the same degree as home prices. Rents increased 13.5% in 2021, but in our recently released 2022 Multifamily Outlook, we forecast modest growth in the cost of rent, at 3.6%, for 2022.

Although rents and home prices are likely to remain expensive, there are advantages to buying a home today if you’re ready. Rents typically increase between 3% and 5% each year, though your landlord or management company may charge more depending on the terms of your lease agreement. On the other hand, homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.

To determine the best loan type for your financial needs, speak with a lender.

Selling • June 2, 2022

Reasons FSBO’s Fail & Why You Need a Realtor®

by Debbie Marett

February 3, 2021, By FastExpert

Here is a great article why selling your home on your own (For Sale by Owner – FSBO) might not be the best option:

Reasons FSBO Home Sellers Fail

Not Understanding the Process
Selling a house is not as easy as selling a car. It’s an extensive process that demands a lot of knowledge, patience and time. You have to understand everything that goes on between deciding to sell your house and its payment finally arriving in your account.

First, you have to familiarize yourself with all the relevant legalities that go into preparing the contract for the sale of your house. This is crucial for home sellers without an agent. You will have to hire a real estate attorney for that or else you could get yourself into legal trouble quickly. If you choose to list your home FSBO, you should consult a real estate attorney before listing your house for sale.

If you are listing your home on your own, you are effectively the agent of your own house. Make sure to be sure to become a good one. There are plenty of acronyms and other terms to be aware of in the real estate industry.

Research everything, from the FSBO listing websites to the cost or repairs demanded by potential home buyers. Try to reach as many potential home buyers as you can using social media and your personal contacts. Figure out what makes a house desirable for a buyer and what are the deal-killers, and finally, be a patient negotiator.

Even the most savvy FSBO sellers won’t be experts in all things real estate. With all the research you can do on your own, you will still get your home sold faster and at a higher price with a quality real estate agent. The process will be easy for you and you can confidently avoid legal trouble from doing your own legal work incorrectly.

Not Knowing the Value of Your Property
People who list their home on their own often make a huge mistake before they even get to show their home to potential buyers.

Everyone is emotionally attached to their home. This makes it harder to objectively price the property and understand its value from the buyer’s point of view. Buyers will point out problems in your home that you don’t even consider noteworthy. And they will negotiate for a lower price.

Pricing the house accurately is crucial. When an agent helps you price a house, they do it with a wealth of experience backing their numbers. They’ll account for the state of the real estate market and a variety of factors that will influence the value of your home and the time it takes to sell.

If you are doing it yourself, you must research the current housing market trends. It helps to find the median price of a property in your neighborhood and prepare a realistic estimate of the necessary repairs.

This is something you will have to reevaluate after every potential client’s visit. It is also important to stay objective and not get emotional when buyers seem to undervalue your beloved home.

Know that in most cases, properties sold through a realtor sell for a much higher price than the ones sold by the owners. FSBO owners typically sell their home for less than 94% of the price they would have sold with a real estate agent, so the safer option is to hire a realtor to help you sell.

Bad Marketing and Poor Home Showings
Even though the FSBO sites are a great way to place your house in a listing, the number of potential buyers on those sites will be dramatically lower than an agent’s.

You can mitigate this problem by marketing to potential clients in other ways, like advertising open houses through your social media accounts. Even still, unless you have a prominent following on social media or want to pay for ads, this may not attract any people to view your home besides your friends and family.

If you list your house on your own, you should always be ready to show your house. It would drastically shrink the list of potential home buyers if you are only available to show your house on weekends or after working hours. Because you already have a smaller list of potential buyers because of your FSBO listing, you can’t afford to miss any showings for potential buyers.

When you consider listing your house as FSBO, you will have to be positive, enthusiastic, and energetic when you show your house to strangers. It is typical that viewers will complain about the worn staircases, creaky doors, and other quirks about your house they find undesirable.

If you work all day and must do showings right after, you must ask yourself, can you handle that after a hard day of work?

For most people, it’s better to let a realtor field buyer’s complaints and market your home so that you can sleep easy and keep your free time free.

Bad Negotiating
The trickiest and most important part of selling a home is undoubtedly the final negotiations.

Negotiating is a skill that many people feel they are intuitively good at, but a lot of people overestimate their ability to facilitate a good negotiation- especially when negotiating terms for a sale they aren’t well versed in…

Negotiating is a skill that takes practice and negotiating terms for a real estate sale takes practice and expertise. There are so many variables to take into account that it is nearly impossible for a lay person to have the skills or knowledge to do this well.

Think about these examples:

How much lower than the listing price would you be willing to sell for?
Someone is willing to buy the house at your price, but is not willing to put in the earnest money (money someone puts down to show they are serious about buying), what would you do?
If the buyer hands you a list of thousands of dollars’ worth of repairs as part of the contract, will you be able to re-negotiate the final price?
Do you know what a rent-back agreement is and how much that is worth to you if the buyer isn’t open to the idea?
Would you sell to someone who isn’t a pre-approved buyer? Would your price be different for a buyer who isn’t pre-approved?
If someone was willing to pay cash, how much would you be willing to sell for?
If your first buyer lowballs your offer and says, “Take it or leave it.” what would you do?
If your home has been on the market for months and your only buyer gives you a lowball offer, what would you do?

These final negotiations are the hardest part of closing the deal without an agent. Many properties for sale by owners either sit for months because the owners are unable to close the deals or end up selling the house at far too low a price because of inexperience in negotiating.

Conclusion
These are just a few problems that come with selling a house without an agent or a realtor. With diligence, patience, and proper research, you might get lucky and sell your house at the same price you would have with a realtor.

Selling • May 30, 2022

Will Solar Add Value to Your Home When You Sell?

by Debbie Marett

Slapping solar panels on the roof may save homeowners some money on their electric bill, but will it also raise their home’s value when they sell it?

Many homeowners consider adding solar panels for one (or a combination) of three reasons:

They’re environmentally conscious.
They’re looking to save money.
They think it will add value to their home when they sell it.

Very few people will argue against it being an earth-friendly decision to make if that’s the motivation.

And, theoretically, they should save you money on electricity. But you should do some serious math before signing on the bottom line. They may cost you more to install and upkeep than the savings they will generate, depending upon how long you plan on staying in the home.

However, if you’re doing it with the notion that it’ll add value to your home when you sell, you may want to think twice before signing on the dotted line.

First of all, it’s difficult to quantify how much, if anything, solar panels add to the bottom line when you sell your house. But more importantly, they could limit your pool of buyers considerably for a few reasons:

Some buyers just aren’t into how they look on a house… You could argue that it’s awful for a buyer to judge them based upon aesthetics, but buyers turn their noses up at houses for even a paint color they don’t like which they could easily change.
It might cost them… If you leased the system, they could be on the hook for the remaining term of the lease, or have to sign a new lease with the company that installed and owns the system.
Maintaining them… It’s hard for buyers to fully know how much solar panels will cost to upkeep. Plus, they often wonder if it will have an impact on the roof and potential leaks. Even if it doesn’t, when they do have to replace a roof, they have to consider the added cost of dealing with removal and replacement of the panels.

But the reality is, there’s a good chance you’ll hear a solar salesperson tell you that it will add value to the home. Ask them for the data that backs up the claim, and make sure the data is specific to your area. In all likelihood, anything they can point to will be general and broad strokes. It would be highly unlikely that a solar salesperson would be able to accurately assess exactly how much value it would add to your home.

The Takeaway:

Perhaps someday every home will have solar power, but at this point that isn’t the case.
The demand and appeal for solar panels will vary depending upon where you live, the local market conditions overall, and the mindset of the buyers in your area.

So if you’re concerned about how much solar panels will add or detract from the value or saleability of your home, speak to your local real estate agent (ahem!) before committing to putting them on your house. Your agent can advise you on how well-received solar panels are by buyers in your area, and price range, and help you assess how much it will add to the value of your home, if anything.

Market Info • May 30, 2022

Over 10 Years, Homeowners Obtained $240K in Equity

by Debbie Marett

As prices climb, homeowners who’ve owned their homes for a while have seen a boost in appreciation.

Over the past decade, a homeowner who purchased a single-family existing home would have gained $229,400 in home equity if the home were sold at the median price in the fourth quarter of 2021, according to a new analysis by the National Association of REALTORS®, as reported on the association’s Economists’ Outlook blog.

In the past five years, home prices have notably climbed—rising at an annual pace of nearly 10%, NAR reports. A homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.

The Western region of the U.S. has had the most areas of the country where homeowners have built up the largest amount of home equity, led by San Jose-Sunnyvale-Santa Clara, Calif.; San Francisco-Oakland-Hayward, Calif.; Anaheim-Santa Ana-Irvine, Calif.; and urban Honolulu, Hawaii.