lake county real estate. and then some…

selling homes…a family tradition


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Analysts expect mortgage rates to rise in 2017, however they say that we need to hit over 5% to have a big impact on the housing market…

Mortgage Rates Impact on 2017 Home Values

Mortgage Rates Impact on 2017 Home Values | MyKCM

There is no doubt that historically low mortgage interest rates were a major impetus to housing recovery over the last several years. However, many industry experts are showing concern about the possible effect that the rising rates will have moving forward.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are all projecting that mortgage interest rates will move upward in 2017. Increasing interest rates will definitely impact purchasers and may stifle demand.

In a recent study of industry experts, “rising mortgage interest rates, and their impact on mortgage affordability” was named by 56% as the force they think will have the most significant impact on U.S. housing in 2017. If rising rates slow demand for housing, home values will be impacted.

To this point, Pulsenomics, recently surveyed a panel of over 100 economists, investment strategists, and housing market analysts, asking the question “In your opinion, at what level will the 30-year fixed rate mortgage rate significantly slow home value appreciation?” The survey revealed the following:

Mortgage Rates Impact on 2017 Home Values | MyKCM

Bottom Line

Most experts believe that rates would need to hit 5% or above to have an impact on home prices.

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While past activity is not a guarantee of future action, it can provide some insight into what lies ahead. Thinking of selling in the spring? The graph is a pretty convincing reason to list sooner than later…

The #1 Reason to Sell Now… Not Next Spring

The #1 Reason to Sell Now… Not Next Spring | MyKCM

The price of any item (including residential real estate) is determined by ‘supply and demand’. If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2016:

The #1 Reason to Sell Now… Not Next Spring | MyKCM

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.


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SNEAK PEEK!

Updated Gurnee 4 bedroom. Wooded lot. Stainless Viking appliances. F-A-B-U-L-O-U-S! $447,000. Who do you know who is looking to move?  Call me to get into this home before it hits the market! 224-206-8813

 


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Selling your home in 2016?

Here are just some of the areas that I can provide assist in… 
5-Reasons-to-Resolve-KCMHere are just some of the areas that I can provide assist in… 


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Getting ready to sell your home in 2016?

Here are some reasons to use a real estate professional to help sell your home…

Selling Your House? 5 Reasons You Shouldn't For Sale By Owner | Keeping Current Matters

In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of those reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always, find some problems with the house
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.


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For most of our area school’s, winter break begins at the final bell on Friday.

At our house, that means no alarm at 6:15 am for the following 2 weeks 🙂 It also means travel for a lot of families. Are you going somewhere for the holidays? If so, make sure that you take the necessary stapes to ensure that your home is prepared for your absence.  A few keys actions to take, as outlined by @ properties:

1)  Securely lock your home.  Doors, windows, garage access.

2)  Stop your mail, or make arrangements for a neighbor to empty your box frequently.

3)  Set up deterrents – lights on alternate timers, ask a friend to stop by for an evening, have neighbors park in your driveway.

4)  Prepare for the weather.  If it is really cold, shut off your water so pipes can’t freeze.  Schedule snow removal services so that snow doesn’t pile up outside and call attention to the fact that you are not home.

5)  Pamper your pups.  Don’t foget to make arrangments for the care of your furry family members.  Boarding sites fill up quickly at the holidays, and pet sitters may be booked to the brim as well.  Plan ahead so Fido has the care he needs.

6)  Tidy up your home.  There is no place like home, except for a clean one!  Spending the extra minutes to leave your home clean and smelling fresh will be well worth it when you arrive home after traveling, and exhausted.  

Take a few minutes to read through these tips in the full article 6 ways to prep your home for a holiday vacation


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Rumor has it…

…that mortgage interest rates are at risk of rising as much as 1% over the course of the next year.  Thinking of moving?  Act sooner than later!

The Impact of Higher Interest Rates | Keeping Current Matters

Last week, an article in the Washington Post discussed a new ‘threat’ homebuyers will soon be facing: higher mortgage rates. The article revealed:

“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”

How can this impact the housing market?

The article reported that recent analysis from Realtor.com found that –

“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”

This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with substantially more cash for a down payment or settle for a lesser priced home.

Below is a table showing how a jump in mortgage interest rates would impact the purchasing power of a prospective buyer on a $300,000 home.

Buyers Purchasing Power | Keeping Current Matters

Bottom Line

If you are considering a home purchase (either as a first time buyer or move-up buyer), purchasing sooner rather than later may make more sense from a pure financial outlook.