We’re Thankful for You

This year and every year, we’re thankful for you in our lives.

The 2023 holiday season has officially begun! We hope you are as excited as we are.

We’d like to take a moment to express our gratitude to all of you this Thanksgiving. We have met some truly wonderful people, and we’re proud to have helped so many reach their real estate goals over the years. We wouldn’t be where we are today without all of your support.

Enjoy your Thanksgiving dinner—that’s what we plan to do!

In the meantime, please don’t hesitate to reach out to us if you have any real estate questions. We would be happy to help you.

Happy Thanksgiving!

Get Ready to Buy Your Dream Home: The Top 3 Don'ts of Home Purchasing

Three common pitfalls that buyers should avoid when purchasing a home.

Are you in the market for a new home? If so, you'll want to avoid making some common mistakes that can jeopardize your home-buying journey. I'm here to guide you through the top three things not to do when purchasing a home.

1) Don't quit your job. One of the most crucial things to avoid while buying a home is quitting your job during the transaction. Let me illustrate this with a real-life scenario. I had a client who snagged an amazing deal on a home because the previous buyer decided it was a good time to quit their job in the middle of the process. The overarching reason not to do this is that when you're buying a home, the bank is essentially the majority owner.

Banks are typically fronting a significant portion of the purchase price (usually 70-95%). They set the rules, and one of those rules is that you must be gainfully employed and able to verify your employment. Quitting your job or frequently changing employers can raise red flags and jeopardize your loan approval. So, remember, don't quit your job while in the middle of a home purchase; it's a decision that can cost you your dream home.

“These three things are essential to remember when buying a home.”

2) Avoid taking on additional debt. When you're in the process of buying a home, steer clear of taking on new debts or splurging on big-ticket items. This scenario often unfolds when people move across the country, buy a new home, and decide it's also a good time to purchase a new car, a bunch of furniture, or rack up credit card debt. This can lead to an increase in your overall debt load, which could make you ineligible for the loan you originally qualified for.

Typically, you have a 30-day window during which you should focus solely on your home purchase. So, during this time, try to avoid making major financial commitments. Your home purchase should be your top financial priority.

3) Don't borrow to borrow. The third critical point is not to borrow money to gift money. This might sound a bit confusing, but let me explain with an example. I had a client who was buying a home, and her father intended to gift her the down payment, which is a common occurrence. However, her father decided to borrow the money from a bank and then gift it to her. During its due diligence, the bank discovered that the money was borrowed and denied the loan.

In most cases, you cannot take on additional debt to fund a down payment or gift money for a home purchase. It's essential to use your own funds or funds that are genuinely gifted to you without the involvement of additional loans.

By avoiding these common pitfalls, you can streamline your home-buying process and increase your chances of securing your dream home. If you have any questions about the buying process or need guidance, feel free to reach out to me by phone or email.

Exploring the Real Estate Shift: The Declining Fixer-Upper Trend

The top three reasons to avoid buying a fixer-upper property.

In a recent headline from The Wall Street Journal, it was stated that nobody wants to buy a fixer-upper right now. While this claim may seem extreme, there are several compelling reasons why buyers are shifting their focus away from these properties. Here are the top three reasons behind this trend and its implications for both sellers and buyers:

1. Overpricing and increased supply. Fixer-uppers have been significantly overpriced in recent years, mainly due to the limited inventory available in the housing market. With limited options, buyers were willing to pay a premium for homes that required renovations. However, a closer look at the Austin market's 78745 zip code reveals a different story. Homes that have been updated are now selling for 25% more than their unimproved counterparts. Moreover, the market has seen a surge of 50% in the number of homes available for sale in the past year. This increased supply gives buyers more choices, making fixer-uppers less appealing.

2. Preference for current interest rates. Buyers are now reluctant to give up their current favorable interest rates in exchange for a fixer-upper. Harvard University's Joint Center for Housing Studies indicates that home renovations are surpassing expectations and outpacing the previous year. However, many buyers are opting to stay in their current homes and undertake renovations instead of embarking on a new project. This choice allows them to preserve their low interest rates and customize their existing homes to suit their needs.

“Homes that are renovated sell for significantly more.”

3. Lower prices and reduced competition for renovated homes. Renovated homes are becoming more attractive as their prices continue to decrease. Taking the 78745 zip code as an example, the median home price has dropped by almost 15% compared to the previous year. This decline, coupled with fewer buyers seeking fixer-uppers, has led to decreased competition in the market for renovated properties. Buyers looking for move-in-ready homes can take advantage of this trend by negotiating favorable deals and finding their dream home without the hassle of extensive renovations.

What are the implications for buyers and sellers? For sellers, investing in updates and improvements is crucial to make their homes market-ready. This includes staging the property and hiring a professional photographer to showcase its full potential. By presenting a well-maintained and visually appealing home, sellers can attract potential buyers in a market where fixer-uppers are losing popularity.

On the other hand, for buyers, this presents an excellent opportunity to enter the market. With prices of renovated homes on the decline and less competition, buyers can negotiate favorable terms and find their ideal property. It is a favorable time to explore the market and make a purchase that aligns with their needs and preferences.

By understanding these trends, both sellers and buyers can navigate the housing market more effectively in the current landscape. If you have any questions about the market, don’t hesitate to reach out by phone call or email. I would be happy to hear from you.

Use This Playbook to Hack Your Mortgage

Our new playbook has 29 pages of great information for owners and buyers.

I am beyond excited to finally release something that we've been working on for a long time, and it's called the Mortgage Hacks Playbook. If you're a homeowner or you're thinking about buying a home, this playbook can help you greatly, and it covers everything you need to know. 

This Mortgage Hacks Playbook we put together is 29 pages. It's for homeowners who already have a loan, and it’s also for people who are thinking about buying, selling, or investing this year. Since we're in a shifting market, we have to get creative with financing, and this can help with that.

"This playbook has concepts that could save homeowners thousands of dollars."

The first section covers the different types of financing options that can help you get through to buying a home, including interest rate buydowns, seller financing, ARM loans, and 20-, 30-, and 40-year conventional mortgages. We cover the pros and cons associated with each type of loan. 

The biggest value in this book is for homeowners who currently have a loan on their homes. That is because we get deep into how to reduce the costs associated with that loan and save you thousands of dollars over the lifetime of your loan. This is possible through different products like biweekly payments, using HELOCs to buy investment properties, and all kinds of different options. 

Call, text, or email us if you have any questions or want access to the guide. Know that our team has the best Realtors in town, and we work with some of the best lenders, so we can help you apply the ideas in this playbook. We look forward to hearing from you!

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Click below to preview our Mortgage Hacks Playbook and find out how to gain full access to all 29 pages!

Seasonality and Cyclicality of the Market

Our market naturally moves in both seasons and cycles.

Much like most things in life, real estate moves in both seasons and cycles. Let’s begin by talking about the seasonality of our market.

This is especially important right now because we are heading into a season that is traditionally slower. There are other factors, of course, that are slowing things down, like interest rates, inflation, and the stock market, but this period is just naturally slower. However, believe it or not, sales tend to pick up a little bit during the holidays since children are out of school and people need to move for work reasons. Further, you’ll see another uptick in the new year with people moving for their New Year's resolutions.

From there, the market is a little quiet, with people going out of town for spring break, but it explodes again after that. This is a time when the market has more opportunities for buyers but is also a little more competitive.

Finally, we head into the summer, and while many people tend to move during the summer, the high heat and children returning to school can close that season early. 

"We are heading into a season that is traditionally slower."

So we are here in the Fall, and that is a season that is especially good for investors. Home sellers are typically more willing to negotiate in this season, particularly those who listed in the summer and have sat on the market for a little bit.

This is the seasonality of our market. The cyclicality is a little bit different. When we say that the market is cyclical, we mean to say that the market goes through seven to ten-year upticks, followed by a one- to two-year correction. That’s what we are seeing right now, where even though there are other factors like interest rates driving things down, it’s also a natural slowing of the market. In fact, the correction is even a little bit overdue, with all of the unnatural stimuli we’ve seen in the market. 

What does this mean for you? You should give me a call or an email, and we can discuss your particular situation. I’d be delighted to help you out.