What a Great Idea !

 

Is there going to be a housing collapse in the near future? We are hearing crazy things about this Market.

 None of the experts say this will happen in the next year. But who can predict the future? Few people foresaw the housing market crash 13 years ago that ignited a worldwide recession. Fueled by low interest rates and loose mortgage lending, the housing bubble burst, some nine million families lost their homes to foreclosure or short sale. Housing values plunged 30% or more. But an entirely new regulatory agency was created to enforce this new regulatory framework. Lenders who do not comply with these standards risk severe penalties. As a result, the housing finance marketplace is now more robust and safer than it was 15 years ago. Any dip in the housing market will be cushioned by these stricter regulations.

No one could have predicted it. Not the economists, not the real estate agents, and not the nation’s homebuilders. But rising crime in some areas and the pandemic, caused an emotional run-on housing unlike any other.                                                                                             

Americans, unsure when they would be able to get back out in the world again, were looking for more indoor and outdoor space. They wanted dedicated rooms for working and schooling at home.

With new buyers continuing to enter the market and not enough homes for sale to meet demand, home prices are still going up. But keep this in mind: If the number of houses for sale goes crazy high and the number of buyers willing to buy them suddenly plummets, home prices would fall and that’s when a crash would be something to worry about. And don’t forget, pandemic-related mortgage bailouts are set to expire this summer. Other factors to watch: If interest rates rose too quickly. If Home prices rise to a point where affordability is diminished. If loans suddenly become harder to get, or an economic slowdown occurs due to government policies. These are all concerns, but not predictions.

Despite these concerns, the experts say that it is unlikely that the housing market will crash in 2021.

The longer the pandemic continues or the weaker the economy gets, the more of a gap there will be between those who can afford a home and those for whom the prospect of homeownership will become less and less attainable.

Typical Buyer, Haha!

 

Home Inspection, Now an FHA Inspection?

 Question:  I knew I would have to go through the buyer’s inspection when I accepted this contract, but now I am told that FHA has to inspect my Home and that the repairs they require must be completed in order for the buyer to get their loan. I am not happy about this. Is this correct?

Answer: First of all, congratulations on getting an accepted offer on your home. In many markets, that is not easy to do. But that does not mean that the deal will close. Contracts have contingencies that must be satisfied in order for a closing to take place. Example: Contingent on your buyer getting a loan, Contingent on a satisfactory home inspection, Contingent on your home appraising to at least the purchase price, etc.                                                                                                                                       

If you have a buyer who is obtaining FHA financing, your deal is also contingent on you completing the repairs required by the FHA inspector/appraiser. The FHA inspector is an appraiser sent to determine the value of the home and look for significant deficiencies according to FHA criteria such as obvious mold growth, chipped paint on windows older than 1978, broken glass, lack of GFCI’s by sinks, etc. If they find defects then they will require repairs which they will reinspect, to ensure the repairs were made correctly. 

These required repairs are usually minor if the homeowner has kept their home in good shape.

You are not required to do these repairs. You may say no and look for another buyer that is obtaining conventional financing or paying cash. The problem is that in many markets, the vast majority of all qualified buyers are using FHA financing.  

The smart move would be for you to do the repairs and enjoy your check at closing.

Will Checking My Credit Score Online Hurt my Credit My Score?

Another credit score myth that derives partially from the truth is the notion that checking your score will hurt it. Yes, it’s entirely true that if you apply for new credit your potential borrower will run a credit check that may take a few points off your score. 

However, if you check your score yourself, there will be no effect whatsoever. When you actually apply for credit, it triggers what’s known as a “hard inquiry,” which can damage your score. 

However, if you’re just checking your own score, or if a lender is performing a routine review of your account, that’s known as a “soft inquiry,” and it has no effect on your credit

I laugh Every time I see this

 

The Hot Sellers Market

We keep telling sellers this...... We have never seen a sellers market this strong in Indiana or Illinois.

The demand for homes is incredible with Low Inventory.

We are not saying you should sell. We are saying if you've been planning a move in the near future, make that near future as soon as possible.

Homes are selling in less than a week with multiple offers.

Even our real estate fees are much lower because of the fast sales time.

It's a win-win situation.

Who knows what this new Presidential administration brings.  It could get better; it could get worse.

That's up to you to decide!