Where Are Mortgage Interest Rates Headed In 2019?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year.

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.2% from this time last year and are predicted to be 5.1% higher next year.

If both the predictions of home price and interest rate increases become a reality, families would wind up paying considerably more for their next homes.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth, so don’t wait until next year! Meet with a local real estate professional to evaluate your ability to purchase your dream home now.

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The Sarasota Native Group® is made up of full-time agents; this is not our retirement career nor is this a second job while also waiting tables. Collectively we have been full-time real estate agents going on 15 years. Being born and raised in Sarasota we know the area and the market very well.

On average The Sarasota Native Group® has helped customers save 3% off the list price (or $3,000 for every $100,000) using our years of negotiating experience and knowledge of the local real estate market. (This does not include helping buyers save money by recommending trusted service providers in the area. Our contacts become your contacts.) 

Are you not seeing your dream home on the market? Contact us to discuss the possibility of having our team target off-market homes that have high selling potential that match your specific criteria. We only provide this service to committed customers because of the time and effort we put into finding the home of their dreams.

The Sarasota Native Group® will negotiate to get you the best deal possible and we would be delighted to work with you and anyone you know who is currently looking to purchase a home.

Contact us today!

  

The Sarasota Native Group® | www.TheSarasotaNativeGroup.com | 2000 Webber St. Sarasota, FL 34239 | 941-822-1519

How to Lose a House in 10 Days

Home buying is arguably one of the most stressful purchasing experiences in adult life. Why is the process so draining? Unfortunately, there are myriad of issues that can make a deal fall through – especially if you aren’t working with a professional agent. RE/MAX has 10 ways you might lose out on your dream home and how working with an experienced RE/MAX agent can help you avoid them:

1. You don’t have enough saved up for the down payment
Surprise! Homes are expensive. In addition to closing costs, there can also be unexpected fees around every corner. Make sure that you have significant cushion savings in addition to whatever you plan on putting down for your house-you never know how these things will play out.

2. You don’t have your ducks in a row
Staying organized is essential when you’re house hunting. Are you serious about the bid you’re putting down? Make sure that you’re fully aware of all deadlines, contingencies and paperwork involved in moving forward with your home purchase.

3. You’re shopping way out of your budget
As Andie Anderson puts it in How to Lose a Guy in 10 Days, “You can’t lose something you never had.” Looking for houses that are priced outside of your budget is the first way to “lose a house” – you’ll lose out on a home that you never had a chance of buying. Pre-plan for the strong possibility of putting in an offer above the asking price. This may mean looking at homes listed a few thousand below your budget to create padding in your budget to make a higher offer.

4. You lose a bidding war
Quick, decisive, assertive-these are all necessary traits to win a bidding war. Working with an experienced RE/MAX agent who can negotiate on your behalf is a great way to ensure you play your cards right. Remember, all is fair in love and [a bidding] war.

5. You come down with a bad case of buyer’s remorse
What’s the most obvious symptom of buyer’s remorse? Cold feet. Sales contracts fall through all the time because buyers back out at the last second, succumbing to the fear of such a life-altering decision. Keep your wits about you and trust your gut.

6. You close too slowly
Sellers are trying to get sales contracts through as swiftly as possible. In this climate of high demand and limited inventory, residential real estate is a hot market. There will almost always be someone behind you, vying for your potential future home – if you really want it, work hard to satisfy the seller and make things official as soon as possible.

7. Your inspections aren’t timely
Speaking of closing quickly-inspections are sure to take some time. If you’re lucky, all you’ll need is one inspection. If an inspector discovers any problems, you’ll have to start making appointments with specialists to look further into the house’s issues. This is a race against the clock, limited by the timeframe set out in the sales contract. Don’t waste any time getting the inspections going or you might find yourself without a house to inspect.

8. Your seller isn’t happy with their appraisal
An appraisal that comes in lower than anticipated is always taken by the seller as a personal blow. This proves to be an issue for the buyer, too. Either the seller will become difficult or, even worse, you’ll have to pay the difference between the appraisal and the sales price out of pocket. Make sure to keep communication with the seller open and diplomatic when frustrations are running high.

9. You can’t secure a mortgage
You’re so close to the finish line-and then your mortgage application is declined. Apply for pre-approval so the seller knows that you’ll be able to buy their home. If you are proactive throughout the buying process the odds of you losing the home are significantly slimmed.

10. You don’t have an agent on your side
None of the above issues are simple. Having someone on your side that knows the ropes of the home buying process is the most valuable tool in your home-buying box. Don’t go it alone-let a professional help you with the most important purchase of your life.

Going agentless can leave you more vulnerable to losing a house you have your eye on. Without an agent you’ll find yourself drowning in the details. Don’t make a bet or pick someone random-hire a RE/MAX agent.

Source: RE/MAX

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The Sarasota Native Group® is made up of full-time agents; this is not our retirement career nor is this a second job while also waiting tables. Collectively we have been full-time real estate agents going on 15 years. Being born and raised in Sarasota we know the area and the market very well.

On average The Sarasota Native Group® has helped customers save 3% off the list price (or $3,000 for every $100,000) using our years of negotiating experience and knowledge of the local real estate market. (This does not include helping buyers save money by recommending trusted service providers in the area. Our contacts become your contacts.) 

Are you not seeing your dream home on the market? Contact us to discuss the possibility of having our team target off-market homes that have high selling potential that match your specific criteria. We only provide this service to committed customers because of the time and effort we put into finding the home of their dreams.

The Sarasota Native Group® will negotiate to get you the best deal possible and we would be delighted to work with you and anyone you know who is currently looking to purchase a home.

Contact us today!

  

The Sarasota Native Group® | www.TheSarasotaNativeGroup.com | 2000 Webber St. Sarasota, FL 34239 | 941-822-1519

4 Essential Tips for Hurricane Prep

By Lexi Rhein

It’s no secret that an impending hurricane is a daunting piece of news. But when you prepare properly, you can rest easier knowing you’ve taken the necessary precautions to weather the storm. Take it from someone who has been through a hurricane, these are four essential tips I wish I would have known before Hurricane Irma hit us in Florida in 2017. If you’re not in mandatory evacuation locations, use these four tips to get hurricane ready!

1. Gas up your car

If the hurricane becomes stronger before it touches down, have a full tank of gas in your vehicle. Being stuck is no fun and can add to an already stressful time and. I suggest going to the gas station as soon as the weatherman says the words, “A hurricane is approaching.” Gas is a fundamental resource to have for a vehicle, but it can also be useful after the hurricane hits to fuel any non-electric tools you may need. Stock up and take a few extra cans too!

2. Reinforce your toolkit

Take the time to check on the resources in your toolkit and make sure they are up to date. First and foremost, a functioning flashlight with extra batteries MUST be in your kit. A flashlight will be the saving grace if the power goes out. Next up on the list: a working whistle. A whistle is a loud and effective way to communicate if power goes out or you need extra help. Did I mention extra batteries yet? Also make sure your wrench and pliers are functional if you need to turn off any utilities. Give your whole toolkit a detailed inspection to be completely prepared.

3. H2O and food

This one is a biggie. Water is not only paramount for drinking, but for those of us who have lost power and gone through a hurricane, we know extra water is a luxury! Experts recommend having one gallon of water per person for a minimum of three days. But if you want to use the restroom and maybe rinse your body, grab more! Food is another key part of preparedness. You want to make sure you have at least three days of non-perishable food to get you through the potential loss of power.

4. The item normally you don’t see on prep lists

It may sound silly, but if you are going to be without power either waiting for the storm to hit or after, you might be bored – or maybe you just need to take your mind off things! Load up on some games that require no power and can be played inside. Whether it’s playing cards, board games, or charades with a flashlight, you’re going to want to have something to pass the time.

Lexi Rhein is the PR and Social Media Coordinator for RE/MAX LLC and made it safely through one of Florida’s most aggressive hurricanes in 2017.

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The Sarasota Native Group® is made up of full-time agents; this is not our retirement career nor is this a second job while also waiting tables. Collectively we have been full-time real estate agents going on 15 years. Being born and raised in Sarasota we know the area and the market very well.

On average The Sarasota Native Group® has helped customers save 3% off the list price (or $3,000 for every $100,000) using our years of negotiating experience and knowledge of the local real estate market. (This does not include helping buyers save money by recommending trusted service providers in the area. Our contacts become your contacts.) 

Are you not seeing your dream home on the market? Contact us to discuss the possibility of having our team target off-market homes that have high selling potential that match your specific criteria. We only provide this service to committed customers because of the time and effort we put into finding the home of their dreams.

The Sarasota Native Group® will negotiate to get you the best deal possible and we would be delighted to work with you and anyone you know who is currently looking to purchase a home.

Contact us today!

  

The Sarasota Native Group® | www.TheSarasotaNativeGroup.com | 2000 Webber St. Sarasota, FL 34239 | 941-822-1519

The Cost Of Waiting: Interest Rates Edition [INFOGRAPHIC]

Some Highlights:

• Interest rates are projected to increase steadily heading into 2019.
• The higher your interest rate, the more money you end up paying for your home and the higher your monthly payment will be.
• Rates are still low right now – don’t wait until they hit 5% to start searching for your dream home!

Source: Keeping Current Matters

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The Sarasota Native Group® is made up of full-time agents; this is not our retirement career nor is this a second job while also waiting tables. Collectively we have been full-time real estate agents going on 15 years. We were born and raised in Sarasota and we know the area and the market very well.

On average The Sarasota Native Group® has helped customers save 3% off the list price (or $3,000 for every $100,000) using our years of negotiating experience and knowledge of the local real estate market. (This does not include helping buyers save money by recommending trusted service providers in the area. Our contacts become your contacts.) 

Are you not seeing your dream home on the market? Contact us to discuss the possibility of having our team target off-market homes that have high selling potential that match your specific criteria. We only provide this service to committed customers because of the time and effort we put into finding the home of their dreams.

The Sarasota Native Group® will negotiate to get you the best deal possible and we would be delighted to work with you and anyone you know who is currently looking to purchase a home.

Contact us today!

  

The Sarasota Native Group® | www.TheSarasotaNativeGroup.com | 2000 Webber St. Sarasota, FL 34239 | 941-822-1519

Housing Market: Another Gigantic Difference Between 2008 And 2018

Some are attempting to compare the current housing market to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.

However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.

A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.

Today is radically different!

There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).

However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.

Bottom Line

We will not have a glut of inventory like we did back in 2008 and home values won’t come tumbling down. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually).

Source: Keeping Current Matters

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The Sarasota Native Group® is made up of full-time agents; this is not our retirement career nor is this a second job while also waiting tables. Collectively we have been full-time real estate agents going on 15 years. We were born and raised in Sarasota and we know the area and the market very well.

On average The Sarasota Native Group® has helped customers save 3% off the list price (or $3,000 for every $100,000) using our years of negotiating experience and knowledge of the local real estate market. (This does not include helping buyers save money by recommending trusted service providers in the area. Our contacts become your contacts.) 

Are you not seeing your dream home on the market? Contact us to discuss the possibility of having our team target off-market homes that have high selling potential that match your specific criteria. We only provide this service to committed customers because of the time and effort we put into finding the home of their dreams.

The Sarasota Native Group® will negotiate to get you the best deal possible and we would be delighted to work with you and anyone you know who is currently looking to purchase a home.

Contact us today!

  

The Sarasota Native Group® | www.TheSarasotaNativeGroup.com | 2000 Webber St. Sarasota, FL 34239 | 941-822-1519

5 Reasons To Hire A Real Estate Professional Before Entering The Market!

Whether you are buying or selling a home, it can be quite the adventure. In this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO,’ but it’s not as easy as it may seem. That’s why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal!

The 5 reasons you need a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates and home prices as the market continues to pick up steam.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. So you found your dream house, now what?

There are over 230 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you achieve your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best deals possible), to the home inspection companies, all the way to the appraisers, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start in order to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you its true value. According to a recent article by the National Association of Realtors, FSBOs achieve prices significantly lower than the prices of similar properties sold by real estate agents:

“FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent.”

Get the most out of your transaction by hiring a professional!

5. Do you know what’s really going on in the market?

There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?

Source: Keeping Current Matters

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The Sarasota Native Group® is made up of full-time agents; this is not our retirement career nor is this a second job while also waiting tables. Collectively we have been full-time real estate agents going on 15 years. We were born and raised in Sarasota and we know the area and the market very well.

On average The Sarasota Native Group® has helped customers save 3% off the list price (or $3,000 for every $100,000) using our years of negotiating experience and knowledge of the local real estate market. (This does not include helping buyers save money by recommending trusted service providers in the area. Our contacts become your contacts.) 

Are you not seeing your dream home on the market? Contact us to discuss the possibility of having our team target off-market homes that have high selling potential that match your specific criteria. We only provide this service to committed customers because of the time and effort we put into finding the home of their dreams.

The Sarasota Native Group® will negotiate to get you the best deal possible and we would be delighted to work with you and anyone you know who is currently looking to purchase a home.

Contact us today!

  

The Sarasota Native Group® | www.TheSarasotaNativeGroup.com | 2000 Webber St. Sarasota, FL 34239 | 941-822-1519