Buyer just backed out of our deal

 Question:  Our home was on the market for 4 days when we accepted an offer on our home. The buyer for our home backed out the day before the inspection. We hired a realtor to make sure these things did not happen. Should I fire my agent?

 Answer: So let me get this straight…. Your realtor sold your home in 4 days, and you want to fire him because he did not predict the future to know your buyer would back out? Apparently, your attorney couldn’t predict the future either.      You are talking senselessly out of frustration.

As with all business transactions, nothing is firm. There are contingencies, inspections, title reports, lousy lenders and buyer emotions involved. Although most deals go through, not all of them do. It’s unfortunate that it happened to you.

If your home sold quickly the first time, your realtor is doing his job. Your aggravation is causing you to put blame on the wrong people.

Speak to your attorney about keeping the Earnest money as compensation for breach of contract. You hired them for legal assistance.

I am going to predict that your home will sell rather quickly, because it sold fast the first time. You must have a very marketable home. Congratulations to you for that!

Remember:

“Life can only be understood backwards; but it must be lived forwards.”

Get your home back on the market and move forward to your closing.

Real Estate Market Update...June 4th, 2024

 Illinois & Indiana:

Homes taking longer to sell, thus price reductions are happening and home prices are falling a bit.

Home Sellers still have 2020, 2021 and 2022 on their minds, thinking they will still get those same prices and multiple offers. This is not happening except for the totally remodeled and gorgeous homes.

Just off the top of my head, looks like they are down, on average, about 2-3%

Home inventory is increasing, buyer demand has fallen due to the higher Interest rates.

NOW is a great time to sell. Prices are still very good and there are still buyers out there.

With our country in chaos, who knows what the future will bring.

This is just our opinion on what we see in the market every day.

If interested, Call us for an estimated selling price on your home.

Should I wait for interest rates to drop before I buy a Home?

 

Question: Should I buy a home now or wait until interest rates drop?

Answer: No matter which way the real estate market is leaning, buying now means you can start building equity right away. It also means avoiding the potential for additional mortgage rate increases later. Rising rates can spell serious trouble for your monthly budget, and they also result in paying more interest over the life of the loan.

If a buyer finds a property they would like to call home, they should not delay. You cannot time the market and a home should be a long-term investment.

When mortgage rates drop and more buyers come back into the market, home prices will rise. Demand causes prices to go up. Remember, you “Marry the house and Date the rate.”               

To put it another way, buy now if you find the right place –you can usually refinance later.

Anytime you’re borrowing money, start by checking your credit score. The best deals on mortgages will be available to those with the best scores — in fact, the median credit score for mortgage borrowers in the fourth quarter of 2023 was a very high 770.

Beyond the purchase price, buying a home comes with closing costs that can run thousands more. So, to justify those one-time transaction costs, it’s wise to be reasonably certain that you won’t move again anytime soon- or that you’ll be financially stable enough to hold on to the property and rent it out. Selling a home soon after buying can have serious tax implications.

Ultimately, the decision of when to buy a home is up to you.                                                     

Life goes on and moving may become a necessity, whether the timing is perfect or not. If you’re anxious to become a homeowner, and you’ve met the criteria above and you’re financially stable, go ahead and start house hunting.

If you’re holding out for lower mortgage rates, a bit of patience might be in order.                  

Rates have been volatile lately, jumping up & down.                                                                  

And to repeat, you cannot time the market, and a home should be a long-term investment.

What a difference 10 years makes

 

Did you know this? Shocking!

 

Market Update:

 Between April 1971 and April 2024, 30-year fixed-rate mortgages averaged 7.74%. 

As you can see, Mortgage Interest rates are still historically Low at about 7%.

Key Points:

Home Inventory is down, demand is still good = Home prices rise.

Once Home inventory rises, there will be more for Buyers to choose from. Prices, then, usually start to fall.

If inflation causes interest rates to rise, then more buyers will not qualify for a loan.

This will decrease demand and home prices may fall.

When is:

The Best time to Buy a Home:  When you are Ready both Financially and Mentally.                                                                                        

The Best time to Sell a Home:  When you need to Sell or when you want another type of Home.

We would be glad to discuss this with you anytime.

Buy the Most Expensive House we Can?

 Question: We are in our mid 20’s and have been married for a few months. We are ready to purchase a home. Someone advised us that we should purchase a home for near the maximum amount of our preapproval which is $325,000.  What do you suggest?

Answer:  You did not mention who gave you that advice, but we do not know of any reputable Real estate or Mortgage professional who would tell you that! When considering a home purchase, your Family budget must take first priority. Although your home is very important, there is more to life than a home. How about being able to purchase the right things for your family?  How about having a little cash extra to enjoy life? How about the necessity of having savings for an emergency or to reward yourself once in a while for all your hard work?  Money problems are very stressful.

You were approved for that amount based on your income and debts. Sounds like you are in a pretty good financial position. Why mess that up? Remember that there is a fine line between need and desire.

You need to sit down with your spouse and make a family budget. Decide which home mortgage payment fits that budget. Get advice from your parents and a financial adviser. Don’t take advice from anyone unless they are qualified to make those financial  suggestions. Ask your lender what price home fits that monthly payment. Then look at homes in that price range. Keep in mind that a house payment includes homeowners insurance, a tax bill, utilities and possible mortgage insurance.  If you do not like the homes you see in that price range, then do what your parents and grandparents did…. Save more money!