Real Estate Blog

Zemens & Inger

Years of successful listing and selling experience. The finest real estate service. Blog / Listings / Rentals

Why Buy a House Now?

global realty buy a house now

You might be wondering why you should buy a house now as opposed to waiting. Right now there is an excellent opportunity to purchase a home in many areas in Metropolitan Detroit at low prices.

Potential benefits:

Real estate values are expected to rise in several Metropolitan Detroit neighborhoods

Real estate is expected to increase in value in several neighborhoods over the next 3-5 years. Speak with a real estate expert to get more information about these specific areas that present good buying opportunities.

Interest rates are expected to rise soon

Although, interest rates remain at historic lows, they are expected to rise soon which means that the opportunity for a low interest mortgage is starting to close. If you plan on buying in the next 6 months or sooner, you can still capitalize on low interest rates and buy a home with manageable mortgage payments.

Rent prices may rise in your area

As mentioned earlier, home prices are expected to rise in the next 3-5 years in several Metropolitan Detroit area neighborhoods, which means that rents may also increase.

Why buy a house now in the Metro Detroit area? Ask an expert.

It is always a good idea to get the advice of a real estate professional before you plan things out. Contact us today to ask any questions you may have.

Global Realty Properties For Rent and Sale – November 2016

GLOBAL REALTY PROPERTIES AVAILABLE FOR SALE:

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216106201/

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216107303/

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216105947/

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216102723/

GLOBAL REALTY PROPERTIES AVAILABLE FOR RENT:

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216106942/

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216106568/

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216106630/

http://movingthemotorcity.idxbroker.com/idx/details/listing/b037/216106301/

Fall 2016 Housing Trends: Home Prices, Mortgage Rates and What You Need to Know

If you are looking to buy a home this fall, keep in mind a couple of important factors:

  • There are a low number of affordable homes for sale in many markets.
  • Mortgage rates remain low, enabling home buyers to get more for their money.

These factors combine to present home buyers with a challenging, yet manageable home market. While persistent low mortgage rates enhance affordability, overall prospective home buyers don’t feel they have a great selection.

Housing Supply

This fall, prospective homebuyers are finding that there are seldom enough homes for sale to satisfy demand. As homes pop up on the market, buyers are quick to jump on properties. Unfortunately, it appears that this supply will not be catching up with demand either. The fall months have historically demonstrated a period where fewer home owners put up their homes for sale.

The most popular time for selling a home in the United States is the spring and summer. Economists note that the only solution to this problem for the long-term is for builders to construct more homes to appropriately meet demand. The ever-present effect of the housing crash continues to prevent owners from selling their homes. The lingering effects mean that many homes with mortgages have negative equity, which is the result of their value being worth less than the total amount owed on the loans. These homeowners cannot afford to sell their homes, meaning new housing must increase to keep up with the need.

Although, new construction has failed to keep up with the current need, an inadequate supply of homes and even more limited availability in rentals is not sustainable and changes will be made.

An Increase in Home Prices

The housing market experienced a slowdown towards the end of summer 2016; however, prices soared more than 5.1% higher in August compared to the 12 previous months. While typically a slowdown result in lower prices, the demand for housing is clearly undisputable.

Lawrence Yun of the National Association of Realtors notes that home sales have “inched backwards” as a result of low inventory, tame price growth, and fast turnover. More construction will be necessary for the market to stabilize and create an equal availability of supply to meet demand. The fall seasonal decline in new listings could even increase price appreciation, which would make it even harder to find a home. Disheartened by the difficult nature of the market, many prospective buyers may wait until the spring to purchase a home, though attention to detail and regular searching helps.

Rental Market Performance

The national average rent for a one bedroom apartment was $940 in September, which is an increase from August. It appears rent rates across the nation are increasing in conjunction with rising home prices. The hot real estate markets of New York City, Miami, and San Francisco, are all experiencing especially tight conditions this fall.

A new trend coming to light is the desire to live in a home, as opposed to an apartment. While 12 million houses were available for rent in 2012, nearly 15.2 million were available for rent in 2015 according to the National Multifamily Housing Council. Availability of these homes is due in part to the housing crash, though continued availability will come as a result of stagnant economic progress. An even more surprising result is an increase in rent by terms of double-digits in over 25 cities, fueling rapid economic growth. Affordable housing will need to be made available soon.

Low Mortgage Rates Are Here to Stay

Housing mortgage rates were inconceivably low this summer, with 30-yr fixed rate mortgages varying from 3.5-3.6%. These rates are likely to remain low regardless of the Federal Reserve’s decision on interest rates. The chief economist of Quicken Loans, Bob Walters, believes that the rates will stay where they are, and will maintain an equilibrium around 3.5%. In a deflationary world, we can expect the interest rates to benefit new home buyers.

Stringent Credit Checks

As a result of the recent home crisis, lenders are now required to, and regularly opt to, conduct detailed reviews of your credit. This provides them with an accurate representation of your ability to pay, though the lenders are increasing the detail of their reports to improve accuracy. By evaluating your credit, lenders offer mortgage rates based on your previous ability to pay on a timely basis.

Credit data collected for lenders to investigate, known as trended credit data, will benefit borrowers as their loan applications will be approved even if they are close to the minimum payment requirements.

Common Mistakes Homeowners Make Preparing for Cold Weather

The winter can be trying times for new and experienced homeowners alike. The year’s nastiest weather brings with it some of the most destructive natural forces. Snow and cold weather can present many challenges but there are some simple solutions.

Below are common mistakes homeowners make when preparing for the winter. Just a few simple and relatively inexpensive steps can be what you need to protect your home.

Letting Icicles Hang

The Cost: Over $500

They are beautiful, but did you know that icicles form because of ice dams within your gutter or on your roof? Ice can prevent the roof from experiencing much needed draining and can build into a major problem. The ice may cause long term damage exceeding $500, the cost needed to heat-remove ice dams one by one.

The best way to prevent icicles and dams? Insulation! Superb insulation within your roof will prevent ice from forming in dangerous ways and is a much more proactive and less expensive solution compared to fixing the damage.

Allowing Cold Air to Enter Your Home

The Cost: Nightly Chills & Expensive Heating Bills

Cracks in your home allow the cold winter air direct access to your home. Combine all the cracks in your home together and it makes for quite a large opening, something which must be addressed.

To mend this easy to fix issue, purchase a tube of caulk and search for visible cracks around:

  • Baseboards
  • Windows
  • Fireplaces
  • Dryer Vents

Once these cracks are identified, seal them with the purchased caulk. Found in hundreds of color variations, you can match the color used to caulk cracks around your home with its original paint color for a seamless finish.

Protecting Outdoor Faucets

The Cost: Thousands of Dollars

Frozen water is a formidable force and is not something to take lightly. Outdoor faucets are most susceptible to freezing, though an inexpensive faucet protector can help. The protectors priced between $2 and $10 can be used to keep the cold air from entering the pipes of your home.

Not only should all outdoor faucets be protected, but you should take this time to ensure exposed pipes in unheated basements, garages, and sub-rooms are insulated. These rooms can be susceptible to cold temperatures in the winter and may freeze.

Forgetting to Protect Gutters

The Cost: A Ruined Home Foundation

Functioning gutters are not only crucial for rainy seasons, but are also imperative for keeping your home safe in the winter. While preparing for the winter, be sure to clean your gutters – removing any foreign objects, and ensuring a clear path away from your home. Blocked gutters can result in poor water extraction and may result in a damaged home foundation. A simple gutter blockage can result in major repair costs.

Failing to Have Your Fireplace Inspected

The Cost: Your Home and/or Life

It is important that you schedule a fireplace inspection prior to usage in cold months. A professional inspector can make sure your fireplace is safe and clear to operate. Schedule earlier, as unexpected cold temperatures could leave you and your family cold while you wait for an inspection during peak times. A fire within your chimney can cost thousands of dollars, and may set fire to your entire home.

Skipping Furnace Maintenance

The Cost: A New Unit Upwards of $4,000

Your home’s furnace works hard to keep you warm; it is important to have your furnace inspected. Typically priced at just over one-hundred dollars, a quick professional inspection plus a filter cleaning or replacement is a great option. The filter not only allows your system to run smoothly, but also helps its internals like the furnace coils stay clean. Keeping your system clean also helps families with allergies, pets, and those who smoke cigarettes.

Not Setting Your Thermostat Properly

The Cost: Expensive Heating Bill

Adjusting your thermostat for winter temperatures is important. Aligning with colder temperatures and lowering average daily temperatures can save a lot of money on your electricity bill, and still keep you comfortable. New technology allows you to wirelessly control your thermostat by remote device and program it for changing temperatures throughout a 24-hour period.

An investment in time to maintain your home during the change in seasons not only prevents damage and destruction, but can also save you thousands of dollars!

Manage Your Mortgage

global realty manage your mortgage

2017 brings both a new year of opportunity and an expected increase in home sales. Determining the path of mortgage rates is much more complex; though low rates throughout 2016 may indicate a potential for low rates in 2017.

If you are in the market to buy a home or are interested in refinancing your loan, these tips may help you manage your mortgage in 2017.

Borrow Only What You Can Afford to Repay
Forward looking borrowers tend to stretch their initial monthly payments into uncomfortable territory. By stretching payments and spending more than your income allows can get you in trouble.

A safe and smart approach means you only borrow what you can afford to pay based on your current situation. Debt obligations come from many aspects of our lives, paying for too expensive of a mortgage can make meeting ends difficult.

Save by Refinancing into a 15-year Loan

While experts expect mortgage rates to remain the same or rise in 2017, refinancing can be a good option. Some reasons you may want to investigate refinancing include: divorce, recovering from low credit, removing mortgage insurance, maintaining positive home equity, cashing out home equity, and saving money if the rate is lower than your initial rate.

These are great reasons for refinancing because the process will place you in a more financially stable position. Refinancing into a 15-year mortgage can save you money in two ways. First, if the interest rate is lower than a standard 30-yr mortgage rate, interest is paid in a shorter time. Second, higher payments each month can expedite the payment process if you can afford the increase.

Always Maintain Savings

A major myth that homeowners hold is that using their savings to pay higher down payments is a good decision, though this is not always the case. Savings, whether it be liquid cash or near-liquid investments, enable mortgage holders to pay their payments during times of unexpected financial burdens. When you have reserves available in case of emergency, you can maintain a stable relationship with your lender by paying on time.

Your specific lender will calculate a minimum reserve needed to qualify for a mortgage to protect their investment in you. There is a possibility that the reserve requirements may require you to pay a down payment below 20% and that mortgage insurance will be necessary. If this is the case, holding off on the mortgage until more reserves can be collected is a great idea. Lenders are much happier to work with individuals who can afford regular payments, have good credit, and possess a small reserve of savings, than to receive a major down payment.

The depletion of saving reserves is a top home-buyer mistake! Do not fall into this trap.

Use FHA to Obtain a Loan with Imperfect Credit

The Federal Housing Administration (FHA) offers many insured loans which enable borrowers with imperfect credit to obtain a home mortgage. The average credit score in 2016 for an FHA homebuyer was near 686; whereas, the average homebuyer presented a credit score of 753.

To qualify for a FHA loan, a minimum credit score of 580 is needed, along with a down payment which can be as low as 3.5%. Higher down payments can enable homebuyers with credit scores less than 680 to get one too.

Show Patience during Underwriting

While applying for a loan based on your credit, it is important to maintain simple spending. Lenders will be evaluating your spending and historical use of credit to determine if you are a good or risky borrower.

Lenders also look at your credit score and report, meaning that substantial charges to credit can be a problem. Keep this in mind while you are attempting to apply for loans.

Consider Refinancing into a VA Loan

If you are currently eligible for a VA-guaranteed mortgage, and are interested in refinancing, you are in luck! Homeowners with mortgages can refinance their mortgage from a conventional type, specifically FHA-insured, into a VA loan. Although fees vary, you may be able to save a lot of money by refinancing your loans.

A Cash-Out Refinance May Work for You

A Cash-Out refinance is when homeowners decide to refinance their mortgage for more than the amount owed, allowing the borrower to pocket the difference. These types of mortgages were very popular during the real estate boom of the 2000’s, and have regained popularity as consumers seek new capital. Cash-Out refinancing can enable you to collect capital to do home improvement projects or for non-home uses.

Zero-Down VA Loans

Veterans Affairs-guaranteed mortgages are extremely popular, though commonly underused by homebuyers. An eighth of mortgages were guaranteed by the VA in 2016. Many veterans are unaware of the VA based loans which can benefit them.

VA loans are available to honorably discharged veterans, those on active duty, as well as spouses. Low rate benefits and zero-down payment required on specific loans can allow prospective homebuyers on the edge of committing to a home, the ability to purchase it.

No-Closing-Cost Mortgage Options

Closing costs can increase the final home purchase price quite a bit. By opting to pay for the closing costs and associated fees out of pocket, you may experience the lowest rates available. The typical no-closing-cost mortgages are attractive to individuals who plan on selling their home soon. If you are close to needing mortgage insurance, this may not be a good option as this can push your reserves below the needed threshold.

Small/ No Down Payments

Homebuyers typically associate mortgages with sizeable down payments, though this is no longer the norm. Prospective homebuyers can obtain a mortgage with low to no down payment required.

As always, consult with a licensed financial expert regarding your investments and financial decisions to make sure they are best for you.

Cash for Homes

global realty cash for homes

Global Realty offers cash for homes in the Metropolitan Detroit Area. If you are looking to sell your home quickly, this might be the right option for you.

Cash Sales Are Fast

A major benefit of cash for home sales is the fact that they are completed fairly quick compared to other methods of selling your home. If you plan on moving in a short period of time to another city, have inherited a relative’s home, or just want to sell your home fast, a cash sale can make a lot of sense for your particular situation.

To learn more about cash for home sales, please give us a call.

Selling Your Home This Fall

Follow these top ten tips to sell your home this fall!

The fall is a more popular season for the real estate market than most people expect. Fall is a great time to sell your home with family’s home from summer vacations, kids back to school, and before the winter holidays. With ten weeks of down time, now is a great opportunity to sell your home.

We are fortunate to live in an area which experiences all four seasons; we get the opportunity to watch the beautiful transformation of nature’s colors. The change in the leaves mark a time of relaxation as people settle into the most comfortable climate of the year. Use this to your advantage and consider putting your home on the market.

To sell your home this fall, we have created a short list of ten easy steps for attracting home buyers.

#1. Light Up Your Home

All too often, prospective home sellers leave too much to the imagination by improperly lighting their home for viewings. Allow natural light to flood your home and use artificial lights to provide extra coverage to darkened areas. [Read more…]