Blog

What To Focus On When Home Shopping

Francisco Montes de Oca · February 28, 2023 · Leave a Comment

So you’re starting your house-hunting journey… you’ve set your budget, gotten pre-approved, and discussed your wants and needs, and now it’s time for the fun part — going to see the homes you’ve narrowed down!

However, the universal truth of home buying is that you will never find a house with everything on your “must have” list. So, when walking through houses, it’s important that you try and focus on your list of needs… specifically on the things you cannot change.

To help break it down for you…

Pay attention to:

Location, neighborhood, and distance from your work, shopping, schools, etc.
Yard size and the view / what is surrounding the home.
Square footage of the home.
The number of bedrooms/bathrooms, the bedroom sizes, etc.
Your non-negotiables list.
Make sure to look at the condition of major systems like the HVAC and roof (these are not small expenses).

Ignore things like:

Seller’s style and decor
Clutter and disorganization
Poor landscaping

Don’t worry about the paint color, and who cares if the house has horrible brass fixtures and ugly carpet? You can change those things in a couple of days without dropping a ton of money. Try and look beyond the surface, and even the dated kitchen, to see a home’s hidden potential, and you might just check off all of your “must-have” items!

If you’re thinking of buying, save this post for later! Have questions about the home buying process and where to start? Send me a message; I would love to help you get started in your home search!

But What If Your Home Is Not Selling?

Francisco Montes de Oca · February 13, 2023 · Leave a Comment

It’s not a seller’s dream scenario: you put your house on the market, hoping for a quick sale — but you haven’t received any offers and showing requests have been few and far between, leaving you to ask: Why?

There are 4 main reasons a home will sit on the market:

Condition
If your home needs some TLC, it can lead to a lack of buyer interest. Most buyers in the market today are what I like to call “HGTV buyers” — they don’t have the time, money, or skill to do repairs and take on large projects and would prefer something move-in ready. Most buyers, in general, want to move right in and avoid taking on projects. It might be time to consider some cosmetic upgrades such as a fresh coat of paint, swapping outdated lighting fixtures, and minor bathroom or kitchen renovations. Often, simple repairs can make a big difference.

Location
One of the most important factors for buyers and the value of your property is located. Think school district, busy road, neighborhood, outdoor space, etc. Location, unfortunately, cannot be changed, so it holds a lot of value. That could be the answer to your problem, which means you might need to rethink your price.

Marketing
How does your home look online? Your online presence should entice people to schedule a private tour. This means professional photography and videography (NO iPhone photos!) and a strategic writeup. How your home looks online is crucial to how many people see it.

Price
At the end of the day, the price your home is listed at is the factor that is going to make or break whether or not your home sells. Always price your home in line with the market. It’s never a good idea to go above value “just to see what happens”… this can backfire badly, cause your home to sit on the market longer, and net you less than you would have if you priced it correctly from the start.

If you’re thinking of selling, send me a message. I would love to schedule a no-strings-attached consultation.

The Importance Of Strategic Pricing In A Shifting Market

Francisco Montes de Oca · December 19, 2022 · Leave a Comment

Pricing your home correctly is the single most important factor to consider when you’re selling your home. When you want top dollar, it is best to have the right price the day your house goes on the market. The first few weeks of any property sale are key, so you must price your home correctly from the start if you want to maximize interest. There’s nothing wrong with listing your home on the high side of fair value; however, overpricing your home so that there is “room to negotiate” can backfire. Why?

▪️ The more you overprice, the fewer buyers will come to see it. Today’s buyers are educated and have all the data in their hands with the internet and home valuation sites. They know if a home is overpriced and will wait for price decreases.

▪️ Very few buyers will even make an offer on an overpriced home — they will wait for the price to drop.

▪️ Your property attracts the most interest when it is first listed, and the majority of showings on a home occur in the first 30 days of the listing hitting the market. The longer you wait to adjust the price, the smaller your pool of potential buyers becomes.

▪️ After your house has been on the market for several weeks or months, buyers will notice the number of days on the market and may assume there is something wrong with your home.

In the end, you may end up making less money by overpricing than you would have if you’d priced your house correctly when it was first listed.

Higher Interest Rates VS Paying Over Appraised Value

Francisco Montes de Oca · December 8, 2022 · Leave a Comment

The market over the past few years has been tough for buyers, to say the least. However, now that interest rates are on the rise, we have seen buyers backing out of the market, not wanting to “overpay” for a home.

The ideal scenario is to buy a home when both interest rates and home prices are low, but that isn’t always possible. So, as you’re considering home prices versus interest rates, it’s important to keep in mind that one isn’t necessarily better than the other.

Home Interest Rate Hacks

Francisco Montes de Oca · December 8, 2022 · Leave a Comment

With interest rates continuing to rise, buyers are becoming more price-conscious than ever. If you were ready to buy before rates increased, don’t let the current rates deter you from purchasing a home this year.

If you have been on the fence about buying, let’s chat. I’d love to discuss different ways to get you into your new home with a payment you are comfortable with!

2-1 Buydown

A 2-1 buydown is a type of financing that lowers the interest rate on a mortgage for the first two years before it rises to the regular, permanent rate. The rate is typically two percentage points lower during the first year and one percentage point lower in the second year. Either a buyer or a home seller can pay for a buydown (in the form of a seller assist).

This Is a great option if you are planning on getting a raise in the next few years, or paying off debt.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage (ARM) is a home loan with a variable interest rate after a certain set period. This means that the initial interest rate is fixed for a period of time (this can be anywhere from 5-10 years), and after that, it can adjust periodically, up to a certain “cap.”

For example, a 5/1 ARM would stay fixed at a lower rate for the first 5 years, and then after the 5 years, can adjust up (or down) no more than 1-2% a year, with a maximum amount it can increase over the next 25 years of the loan. The most common types of ARMS are 3, 5, and 7-year ARMS.

This is a great option if you are planning on moving In 5-7 years, or refinancing when / if rates drop.

Improve Your Credit / Maintain Good Credit

A good credit score helps you qualify for a mortgage with the best loan terms — this includes the interest rate, PMI (mortgage Insurance), and upfront fees. Make sure you maintain good credit by paying your bills on time and utilizing under 30% of your total available credit.

SHOP AROUND FOR LENDERS (AND THE BEST RATE)

Different lenders will offer different terms and charge different fees for a home loan. It’s important to get quotes from more than one lender, compare your options, and ask questions. It doesn’t hurt to play them against each other either to get the best terms (not just the interest rate). Most lenders will get quite competitive to gain your business.

If you decide to shop around, make sure you do so within the 45-day window so that there will be minimal effect on your credit, and don’t apply with too many. Ask friends or your agent for recommendations or reach out to me for a list of a few of the best lenders in our area!