Real Estate Survival Guide with Terry Story

The Government, The Shutdown, And Its Effect On Your Real Estate

Shutdown And The For Sale Sign

Terry considered some of the ongoing partial government shutdown’s effects on real estate, noting that while flood insurance presented no concern, loans with the Federal Housing Administration (FHA) would be affected due to employee furloughs at the Department of Housing and Urban Development (HUD). HUD contingency plans would allow for the endorsement of new FHA loans, but slowdowns should be expected so extensions may be needed. (0123)

2019 Housing Forecast For Home Prices, Mortgages, And More

2019 Housing Forecast

As 2018 draws to a close, Real Estate Round-Up looks at the 2019 housing forecast, the outlook for mortgage rates, and millennial home buying, and answers a listener’s question on what to do with a real estate inheritance. (1212)

A Fixer Upper Home May Be Your Best Option In This Market

Fixer-Uppers

To keep mortgage expenses down, consider buying a fixer-upper home.  But don’t do so blindly.

First, figure out what the home needs to be habitable, safe, and comfortable.  Examine the home’s structural needs.  For instance, does it need new plumbing, a new roof, or other must-haves?  In addition, look at cosmetic changes such as a new paint job, new appliances, a new kitchen, etc.  207

Million Dollar Homes Are On The Rise, But Only In A Few Select Cities

Rise In Sales Of Million-Dollar Homes

While home sales are flattening, Terry notes that sales of homes priced at or above $1 million have risen by 400,000 across the U.S., to a total of about three million nationally.  This represents close to 4% of the overall market. (1121)

In This Downshifting Housing Market, Price Your Home Wisely

Why Homeowners Think Their Homes Are Worth More Than The Market Price

It amuses Terry no end that homeowners believe their homes are worth more than recent comps.  So she always makes it a point to ask them what they think their home is worth and why.  Inevitably, they cite the research they’ve done at various websites and how much they’ve spent on minor upgrades. (1114)

Mortgage Rates Driving Starter Home Sales Despite Low Affordability

Mortgage Rates Still Low By Historical Standards

Steve kicks off Real Estate Round-Up with a focus on mortgage rates. He notes, with significant satisfaction, that he bought a house five years ago with a 3.75% rate on a 30-y mortgage.  Terry adds that mortgage rates are currently in the 4.5% range, so they are still low by historical standards.

That said, if your finances are tight, a 0.75% increase can be sizable.

Potential buyers could opt for a lower rate of about 4% with a 15-year mortgage.

However, because the loan needs to be paid back sooner, monthly mortgage payments are a lot higher. (103)

Rising Sea Levels Wipeout $14.1 Billion In Property Value

Rising Sea Levels Wallop Property Prices

Where once beachfront property was considered prime real estate, rising sea levels are changing things dramatically.  Homes in eight U.S. states have lost $14.1 billion in market value due to rising sea levels, rising river levels, floods, etc.

Florida leads the pack in almost every category.  The other states include Georgia, North Carolina, South Carolina, Virginia; and in the tristate area of New Jersey, New York, and Connecticut,  pricey homes lost $7 billion in value.  Homes in Ocean City, New Jersey lost $530 million versus $337 million lost in the Miami Beach area.

Steve adds that insurance premiums should go up for homes in high-risk areas. (1010)

Non-Bank Mortgage Lenders Are A Boon To Home Buyers

Non-Bank Mortgage Lenders

In the past, if you wanted a mortgage, you’d go to a bank. But today, non-banking financial institutions have entered the mortgage-lending business. As a result, it’s much easier to get a mortgage loan today.

In her own experience, Terry Story finds that getting loans from non-bank mortgage lenders is far easier, quicker, and more convenient.

Non-bank lender, Quicken Loans, for instance, is the third largest mortgage originator after Wells Fargo and JP Morgan Chase.

Steve attributes this to fewer regulations on non-bank mortgage lenders than on banks, which were chastened for the 2007 mortgage crisis. (926)

Are Your Property Photos Online Years After The Sale?

Home Buyers Want Property Photos Removed

Some home buyers are concerned that pictures of their homes and properties continue to stay on real estate websites long after the sale has closed.  They cite privacy and security issues.  Often, homeowners’ requests for removal go unheeded. (919)

The Pros And Cons Of Single-Family Homes

Single-Family Homes

We are familiar with the term, single-family homes.  Yet, only a few know what that means.

Terry defines single family homes as ones that:

• share no walls with neighboring homes
• have their own dedicated kitchen, not shared with any other home
• own the land that they sit on
• have private direct access to a street or a thoroughfare
• have dedicated utilities servicing the house
• are built as residences for single families, persons, or households, with undivided interest in that property.

The one big benefit of buying single-family homes is that you can do whatever you want with them, provided your city permits it.

Townhomes, on the flip side, have shared walls and strong limits on property modifications.   (912)

Mortgage Fraud Can Land You In Jail – So Be Truthful!

Mortgage Fraud Up 12.4%

A recent report from CoreLogic shows a 12.4 percent year-over-year increase in mortgage fraud risk for the second quarter of 2018.  The report notes that the fraud risk index has steadily climbed over the past seven quarters and that those states with heavy outside investment are at risk for significantly higher mortgage fraud.

New York, New Jersey, and Florida topped the list of fraudulent applications.  Risk increased at each of the top 10 riskiest states, with the greatest increases in New Mexico, Mississippi, Illinois, Oklahoma, and Texas.

CoreLogic’s analysis showed that about one in 109 mortgage applications contained some type of fraud, up from one in 122 a year ago.  Mortgage applicants incorrectly reported data on identity, income falsification, undisclosed real estate liabilities, credit repair issues, and questionable down-payment sources.

Terry notes that the recent upsurge in home prices has led to a situation where bona fide home buyers are “lying a little” on their mortgage applications to get approved for loans.  (1017)

12 Overvalued Housing Markets In Danger Of A Bubble. Are You In One Of Them?

A recent CoreLogic report on April 2018 home prices, highlights 12 markets with the largest annual increases. This distinction could mean there is a danger of a housing bubble.

CoreLogic defines an overvalued market as one where home prices are at least 10% above long-term sustainable levels.  Conversely, an undervalued market is one where home prices are at least 10% below sustainable levels. (618)