The Cost of Waiting

Do your buyers know what the REAL costs are of waiting to make their home purchase for one more year?  Here are some figures that may surprise them. 

If interest rates increase 1% and home prices increase 10% over the next twelve month period, here is the impact on a monthly mortgage payment (principal and interest). 

Date        Price                 Interest Rate           P&I 

2013       $220,000*            4.5%                $1,114.71 

2014       $242,000              5.5%                $1,374.05 

                Difference in Payment             + $   259.34 

*Median Home Price in Snohomish County 

The increase in home values may sound GREAT to your sellers, but they might want to consider that both an increase in home values and interest rates means there are fewer buyers that will qualify to buy their home. 

 

Jim Fetzer
Old Republic Title & Escrow, Ltd.

REAL ESTATE news

 

Existing home sales at the highest pace since 2007:

 

Strong existing-home sales in August may result in weaker numbers in the coming months if buyers rush to close deals anticipating higher interest rates.
Existing-home sales increased 1.7% in August from July, the National Association of Realtors said Thursday.
Expect to see "payback" in September and October, says Patrick Newport, IHS Global Insight economist. Interest rates started rising in May and pushed buyers to close deals, he says.

http://www.usatoday.com/story/money/business/2013/09/19/august-existing-home-sales/2834843/

Mortgage Rates Move Lower

Mortgage Rates Move Lower

MCLEAN, VA--(Marketwired - Sep 19, 2013) -  Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving lower amid signs of a weakening economic recovery, which in part also prompted the Federal Reserve (Fed) to continue its bond buying program. Mortgage rates have increased more than one percentage point since early May when speculation about Fed tapering began.

http://freddiemac.mwnewsroom.com/press-releases/mortgage-rates-move-lower-otcqb-fmcc-1052534

Condo market shows signs of revival:

Condo market shows signs of revival:

http://realtormag.realtor.org/daily-news/2013/09/09/condo-boom-market-shows-signs-revival#.Ui4dy_iY10I.facebook

 

Condo Boom? Market Shows Signs of a Revival

Daily Real Estate News | Monday, September 09, 2013

The condo sector has experienced lackluster growth in sales and development the last few years, but it may finally be seeing a turnaround in markets across the country.
Condo sales are showing signs of strengthening as demand picks up from Baby Boomers and young professionals. Sales of condo and co-op units were up 23 percent in July from a year ago, according to preliminary data from the National Association of REALTORS®. All regions were recording at least a 20 percent year-over-year growth. The Midwest and South have seen some of the largest gains. The median sales price for condos and co-ops was $209,600 in July—a 15.5 percent increase from a year earlier.
High-rise condo building may be poised for a lift nationwide. New development is moving forward in urban residential centers and popping up in smaller cities as well, Investors Business Daily reports. For example, a wave of Latin American cash is financing a new condo boom in the Miami area.
The National Association of Home Builders reports that condo developer optimism skyrocketed in the second quarter, reaching its brightest outlook in eight years, according to an index the measures builder sentiment for the sector. A growing interest in high-rise condo construction coincides with a slowly recovering market for new homes, experts note.
Still, financing condo construction remains an obstacle for many developers. Developers may need to show that their projects also work as rentals when they are seeking approval for a loan, says Mark Humphreys, CEO of Humphreys & Partners Architects, based in Dallas.
Source: “Condo Towers May Go Up With U.S. Housing Recovery,” Investors Business Daily (Sept. 5, 2013)
Read more
Apartment, Condo Markets Remain Strong

 

Who pays for what in a real estate transaction?

Who pays for what in a real estate transaction?  Here’s a helpful guide

http://www.cwtitle.net/index.cfm?fuseaction=page.display&page_id=107

A Guide to Closing Costs Reviewing a HUD-1 at closing can be confusing at times.  Click here to view a sample HUD-1 Settlement Statement that is color coded making it easier to understand how all the debits, credits and fees associated with your transaction are assigned and paid. Seller is responsible for... Buyer is responsible for... Owner's title insurance policy* Lender's title insurance policy* 1/2 escrow fee* 1/2 escrow fee* Excise tax* Recording fees Real estate commissions* Surveys Utility payoffs 1st year fire insurance Loan balances 1st year flood insurance (if applicable) Doc prep fees - power of attorney, etc. Doc prep fees - quit claim deed, etc. Misc. fees (wire, courier, signing fees) Misc. fees (wire, courier, signing fees) Pro-rated property taxes Pro-rated property taxes Home warranty (depends on contract) Home warranty (depends on contract) Homeowner's association fees: Homowner's association fees:      Pro-rated association dues      Pro-rated association dues      Resale certificate / misc fees      Transfer fee / capital contribution FHA/VA financing, other fees may apply Property inspection   Pest inspection   Lender fees including:        Appraisal        Credit report        Loan origination fee*        Loan interest*        Private mortgage insurance* *Fees determined by sales price and/or loan amount. Payment of fees above can be negotiated within contract.