Home Seller Classes & Education

Real Estate... always keeps one on their toes. So, what is fun in real estate this week???
In 2018, some dear friends of mine bought an investor flipped home on a little spot of land. They have done a terrific job of taking that flipped house and turning it, and the land, into a beautiful home. Well, this week, they did a little bathroom remodel, and behind the remodel they found old bags of some Mary Jane! ...and some old asbestos, but sometimes you have to find the bad with the good? 😂😂
I also showed a home with a bunch of dead birds in the yard ....not scary at all... right? ..and a home with a bunch of kittens.... I want them all. Talk about self-control. I am pretty proud of myself really!

How Long Does the Home Buying &/or Selling Process?

Spring has Sprung and so has the Real Estate Market...it may seem like Realtor signs are coming up your neighbor's lawns faster than the tulips! Now, honestly, the best time to buy or sell a home is when it is the BEST time for your family. I can give you all the pros & cons, but ultimately, you need to decide when it is the best time for your family to make THAT move. So, what's your first step?
First? EDUCATION! I can not stress that enough! Take a home buyer class! Take a home seller class! GI Joe had it right when they said, "Knowing is half the battle'.
Next step? Talking to a lender about how much you are pre-approved for. There's nothing a realtor can do for you until we know what price range you are looking at.
What if you are selling & buying? Well, then you want to start with your Realtor to see what your current home is worth, and what you would be looking at after selling. Then you would go to your lender to get pre-approved...just like we had just talked about. If you are selling and using your equity to buy your next home, ask your Realtor what you guesstimated net from the sell of your home might be... and yes, I say 'guesstimated'. The market is adjusting quickly. I would rather guesstimate on the low side and look like a hero, and not a zero if your home ends up selling for more. If you are selling, a question to talk with your Realtor about is Closing Costs. It is most likely that a buyer will be asking for those... prepare for that. Not sure what Closing Costs are? I will update that blog for you next time.

So, one of the questions we get a LOT is how long is the home-buying process? Of course, what people really want to know is when do they get the keys. So...when does this all happen? The home-buying process is sometimes as short as a celebrity marriage and sometimes feels as long as waiting at the DMV. On average, most people write an offer on one of the first 6 homes they see. Weird? Not really if you think about it.... when you get pre-approved you have an idea of the home you are looking for. Your Realtor is going to do everything they can to help you find that home. First, we are going to hope that the home you are hoping to find is in your price range, but if it is... we're going to find it. Now, sometimes, it can take longer....especially depending on the time of year. The real estate market ebbs and flows and runs on a pretty cyclical nature. There are times of the year when it's better to be a seller and times of the year when it is better to be a buyer. How long it takes to get a home under contract really depends on these factors, and of course, what you're looking for. Luckily, this isn't House Hunters, and homes come on the market all the time. Our biggest race is against rising interest rates right now. However, this blog is all about what happens AFTER the home is under contract....

Once we have a home under contract with an accepted offer, that home goes PENDING (Congratulations!). This is when things really start moving. A copy of the signed around purchase & sale agreement goes to your lender and to the escrow/title company. The escrow company opens escrow on the home and does a title search. The lender will call you to come in and sign your lending documents. Remember that your pre-approval is just saying that a lender has looked at your financial situation, and has said that, 'based on the potential buyer's CURRENT financial situation, we, the lender COULD give them a loan for XX amount IF the potential buyers get an offer accepted and signed around with a seller'. Yep... in clear terms... YOU do NOT have a loan yet. You also do NOT have an interest rate locked in yet. You have to get an offer accepted on a home, and that signed around purchase/sale agreement has to go to the lender so the lender can actually start the loan process on a home.... yes, you read that right, now that you have a home under contract, the loan application and the process can begin...and that includes locking in rates.
On the buyer's end, we need to schedule the home inspection, and whatever other inspections you would like to have done. I do strongly recommend a sewer scope. We have 10 days to have the home inspection completed and to request any repairs if needed. Now, there is a lot more to the inspection period, but let's save that for a different email. Once the inspection process is complete, the appraisal process begins. Remember that the home inspection is for your information, and the appraisal is for the banks' information. Once the appraisal is in, the file goes to the underwriters again for their approval. Once we have the underwriter's approval, closing documents are ordered. You will receive an email asking you to acknowledge receipt of the closing documents. From receipt of the closing documents, you have 3 days before you can sign at title. Everyone always asks, "When is my signing appointment?" We don't know...yet... You see, once the title company receives the documents from the lender, they have to balance those papers, numbers, and information with the lender to verify that all the information is correct. Until they are 'balanced' with the lender, they can not set up the signing appointment. Once this is all done, the title officer will call you for a signing appointment. Yay! Signing appointments are often the same, or the next, day... you know because everyone loves the last minute. You can also sign with a notary after hours if needed. The title officer will also let you know how much (if anything) you need to bring into signing with you. This can be by a cashier's check. Signing by a notary, and cashier's checks can put a delay on closing though. In real estate, things are always changing... so disregard the last sentence, and pay more attention to the following ones.... Be cautious when receiving an email from the title company regarding requests for your bank account/routing number to transfer your funds when buying, or selling. DO NOT DO IT! My friends, there are people out there who spend a lot of time trying to figure out how to get money for nothing. When you go into title for your signing, your title officer will let you know how much you need to bring in for closing.... or if you are buying/selling, how you want the proceeds from you sale. At that time, you can give the title officer (in person) your bank information. At that time, the title officer will give you a form that you can take to your bank to have the funds you need wired over to title. Ok... now you are caught up.
Signing & closing get mixed up quite often, but they are totally different steps. Signing is when you meet with the title officer at the escrow office to sign acceptance of the loan, and of the property you are purchasing. You will receive copies of everything you have signed and get sent home....to wait.... Why? Because now we move on to the last step in your home-buying process, the closing.
Once you and the seller have signed, all the paperwork goes back to the underwriters to sign off on, and then to the lenders to fund. After funding happens, you will probably get a call from your lender letting you know it's all done. Ok, well, they are all done. We, however, are not... Once funding happens (and this is when the banks get their monies), all the information goes back to the title company. The title company then sends the necessary information to the courthouse to record your sale. The recording is closing...this is when the home becomes yours. Recording happens during business days from 10am-12pm & from 3pm-5pm. Once the home is officially recorded in your name, the title officer calls your Realtor to let me know that you are recorded. Congratulations!! NOW I can call you to meet up for those magical KEYS!!
Remember that there are 28 people involved in your purchase/sale. That is a lot of people who all have a job to do to make things go smoothly. As your Realtor, one of the things we do is keep in contact with many of those, and with your lender, who keeps in contact with everyone. We are keeping those cogs oiled, and trying to keep ahead of any potential issues. Chris Berg & I always joke that a purchase/sale dies about a dozen times before we get it to closing. We joke about it because it is actually pretty accurate. There are a lot of cooks in the kitchen and dinner only tastes delicious when everyone stays on task.... or there is someone there to pick up the slack when someone doesn't. Cat wrangler is another one of my job descriptions..

One thing to mention...your lender, and your Realtor....we do NOT give out your information. We value your privacy. Recording on a home purchase, or sale, is matter of public record though. You WILL start getting tons of crap mail and calls because it is public record. If you are not sure about anything you are receiving, please call your lender, or Realtor, we can let you know if it is spam or something you need, or help you get information on where to ask.

So, how long does this take? Depending on your loan type, the speed which you can get your information to your lender, and the speed we can get inspectors and appraisers out, anywhere from 3 weeks to 6 weeks to get from the accepted contract to keys. The average is about 40 days. I've got one right now that we are closing in 2 weeks!!! I've got another one that just received keys that went into 6 weeks because the appraiser called out a repair. Wait, hold the phone!!! That can happen???? Why, yes, it can...but that is an email for a different day. :-D
Thank you, as always, for reading this.
I hope this helps you this week! Please, if you have any questions, please feel free to call, email, text, or even facebook me anytime. I am always here to help!


Have a great day, and I will talk to you soon,
Emoji
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
www.traciedemars.com
[email protected]

“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com or www.freesellerclasses.com for local upcoming home BUYER and home SELLER classes, or facebook: Tracie DeMars Real Estate for my educational blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

How to Sell Your Home in Vancouver, Washington Free home seller classes from real estate pros. Learn how to sell your home in Vancouver, Washington and Clark County.

I need a plumber assistance for some tree roots in a sewer line.
I have a sewer scope, but good grief....getting any responses is a lot like coming up with a witty response for how annoyingly difficult this has been!

I have an estate client with a home coming up for sale in Camas.
The home has a tank with an Oscar fish and some companion fishies. They are looking to rehome the fishies, the tank, and all the stuff for it.
Anyone know anyone looking to adopt some fishies????

OK, everyone! I need your shares... No, not for me, but this Battle Ground Home!
Help us find a buyer for this cutie!! The sellers have found their next home.
No HOA!
$344,900

Presented by:
Tracie DeMars Real Estate
ReMax
360-903-3504

Like I said.... it was a LOT of feels this week.
On Tuesday I was honored to give keys to a dear friend of mine who is moving into a home to fit her growing family. While it was super exciting to give them keys (even though the kiddos are sick), they also had to say goodbye to his first home and the home that they remodeled together.
Their new home is so perfect for their growing family and still gives them a little bit of separation ....which they will be grateful for with a teen! 😄 I love the yard, and corner lot and the neighbors came over to visit and say "hello"... it is ... in a word... Perfect! ❤️
I have to say... the seller's cat for this home is what did it for me! While it is one of my favorite floor plans (I love the tri-levels!), Yoda, the cat, was awesome!
Sooo... out with the old, and in the new...
Congratulations to Mandalynn Clark & Ian on your new adventure! It is going to be as wonderful as you both are!

Today was bittersweet.... I have clients who are leaving tomorrow for their next adventure... somewhere else. There have been a lot of these bittersweet moments in the last few years as I am excited for them to start their next adventure, but I am so sad to say goodbye....
I truly believe that everything happens for a reason, and this is just another example of how the universe works in mysterious and wonderful ways.
My client's house is beautiful, and they have done so much work to make it so. When we first went on the market it was the hottest day of the year, and I am way too insulated for that... so I was dying!
First weekend on the market, and we promptly had 2 offers on their home, but one had a pre-approval from a lender who wouldn't/couldn't provide any information showing that it was an actual pre-approval (there was some doubt), and the other was with a loan that has a high rate of failure.
So... we waited...
We had another offer that wouldn't give my clients a little rentback so they could pack and move (with owner-occupied homes, rent back is appreciated as they often need to sell to be able to move).
We had another offer with another loan that had a higher rate of failure, but we talked with the lender who Assured us that her clients were solid and that all the paperwork had been provided and already signed off on by the underwriters. Ok then... let's go. It all looked good too...until 3 days before the closing date .... when the buyer's loan FAILED!
My clients were devastated.... and that is an understatement.
So, back on the market we go.... and a couple of more unsatisfactory offers.
Then, the new year, and the most perfect buyers.
Everything happens for a reason. I truly believe this as time and time it shows...
Their buyers are first-time home buyers who fell absolutely in love with their home. This adorable couple have dreams of a garden and a dog. The kitchen island and backsplash is perfect for friends and family. They were talking about all the plans they have for this home. They fell in house love. ❤️
My clients had 5 showings that day & 7 showings scheduled for the next day. Once my clients read the buyer's letter... it was done. They happily accepted their offer and canceled the showings for the next day. Some things are just meant to be....
It is the perfect home being sold by the most wonderful couple that I am excited to see settle into their new Kansas City home....and being sold to the most perfect buyers who will love and take care of this home the way that the Lampert's have done.
Congratulations Christina Lampert & Richard Chiefs Lampert II on your next adventure. Washington will miss you. I will miss you. ...and Thank you to Birchwood & Main for the most perfect going away gift for them.... that I forgot to take a picture of!!!🤦‍♀️
Seriously... I am so very grateful for what I get to do. To be a part of peoples lives and trusted with one of the biggest adventures they will have... it really is beyond words.
Thank you Richard & Christina! I wish you both ALL the best and can't wait to see your FB posts as you settle in.

Real estate is all about ups & downs... highs & lows.
As a Realtor I am honored to be a part of peoples lives.. both the good, and the bad.
From the excitement of 1st keys, to the pride in selling your first home, and getting keys to your next, move-up home, the bittersweet of moving on to a new adventure...somewhere else, to the sorrow of helping through the loss of a loved one, and assisting through the hardship of divorce.
This past week has been a little bit of all of the above. So...bear with me as I give everyone their due.
On Friday, I was able to give someone keys to their first home. There was a little bit of trash (tires, an old dresser, a bunch of old fencing) left in the shed. They weren't sure how to get rid of this, but no worries! I am on it! Dan Cain should be picking that up on Monday or Tuesday so my buyers don't have to worry about it!
On Wednesday I met with clients who have, unfortunately, lost their brother. The home needs a bit of work to be 'market ready', but I've been making calls to get the people we need over their scheduled...and on Monday I met with some folks ready for their next downsizing phase of life.
Tuesday & Today though... they will get their own posts...
I have had ALL the feels this week.....

Home Buyer Classes:
February
Saturday 2/10 1pm-3pm Virtual (Hey! That is tomorrow! Email for the class link!)
Tuesday 2/20 5pm -8pm Marshall

Home Seller Classes
February
Saturday 2/10 10am-12pm Virtual (Hey! That is tomorrow! Email for the class link!)
Saturday 2/24 10am-1pm Firstenberg

Next home buyer & home seller classes (in person & online) are available at:
www.learningtobuyahome.com
www.freesellerclasses.com

Re: How much do I need 'down', the 'short' answer...
In the past few months, I have seen a lot of social media posts and discussions about down payments and loans and what someone needs to buy a home.
In 19 years of real estate I can tell you that not many people have a 20% down payment... at least not for their first home. When they sell their first home for their next 'move up' home, they sometimes do, but still not always even then. Sometimes they have 20% (or more), but still go with a FHA loan. Everyone's home adventure follows a different path. You can't judge yours, or theirs.... because there is no one path for everyone.

You absolutely do NOT need 20% downpayment! I mean... it would be nice... but it would also be nice to be a size 5 again. LOL... some things just aren't going to happen, and for many people, having that much money in savings is like fitting into your High School jeans again.

There are a lot of options for buyers, and many people buy a home with less money than it takes to get into a new rental.
Will it be your 'dream home'? Well, most likely not, but it is a start. It is better to start somewhere and start working towards your dream home than to be stuck in the rental cycle.
I always tell people that my favorite thing about owning my own home is that if I feel like getting crazy and painting a wall ... I can. I want to bring home 'another' cat? I can. (just don't tell the hubby!) If my kid 'accidentally' throws the ball that she isn't supposed to and it hits the candelabra into the wall and puts a hole into it... well, I am not freaking out about a landlord!

Having a downpayment (any downpayment) is terrific and if you do, then kudos to you! It is hard to save with family & kids. You do not need 20% down! Having any money to put down really is an accomplishment, but if you DON'T have any... don't feel like you let yourself down... a lot of people don't, and they buy homes ALL the time using the down payment assistance loans & programs, or one of the other 100% loan options, and yes, there is more than just the one, or two you hear about.

The most 'common' loan programs are (always speak a lender like Chris Berg for more information):
** VA loan, if you have the option to use it, is a fantastic 100% loan and affordable option for buyers. You do have to be a Veteran to use this loan. I am surprised by people who don't want to use this loan because they have heard it is hard to get an offer accepted if you have a VA loan. It is a fantastic loan, and for the seller, it is no more difficult to work with a VA buyer than it is to work with any other. It is a terrific loan program that is offered to our Veterans who have earned it.

**USDA/RD loan is also a 100% loan option, but it is location-specific and has limits on what type of home you can buy.... also, there needs to be funding available for that program. It does run out of money sometimes. It is a good loan program, but it doesn't work for everyone. This loan is also very income specific meaning you can not make OVER the income amounts for your family size. You do not have to be a first time home buyer to use this loan.

**Conventional loans are great with pros & cons. You can go as low as 3%-5% on the downpayment, and there are mortgage insurance options, but the interest rate is credit-driven and mortgage insurance isn't automatic. This is that loan everyone 'wants' to do, but there is a small box to fit into for this loan to be the best option. For the best interest rate, you need to have a top tier credit score.

**FHA loan is still the most common loan program. It is the KING for a reason. The interest rate is one of the lowest rates available, and the same rate is given to a buyer with a 620 credit score, or a 690 credit score. Mortgage insurance is automatic and not credit driven. As with the USDA/RD loan, the mortgage insurance monthly amount depends on how much you owe. As you pay down your mortgage, the monthly mortgage insurance amount also goes down. FHA loans also have one of the lowest down payment requirements at 3.5%. With the FHA, there are also down payment assistance loan (& grant) programs available to make this a 100% loan. The vast majority of buyers buying their first home, and believe it or not, about half of the buyers buying their second home, will use the FHA loan. All Hail the King!

Buying a home is a HUGE thing, and it is stressful.... and there is a lot of misinformation out there which makes it feel harder.
I don't care what the radio tells you... you can not buy a home with zero money out of pocket. You just can not.
You will need money for earnest money.... it can be as little as $1,000, but the more expensive the home you are buying, the more you have the better. I always tell buyers... between $1,000-$2,000 is good. This is your good faith deposit. It is refundable IF you back out with a LEGAL reason (this is gone over in the home buyer classes). At closing, this money will go towards your closing costs or down payment... or depending on your loan type, you might even get it back.
You will need money for a home inspection. This is about $600 and it is a non-refundable fee as you are hiring someone to check out your home... like hiring a mechanic to check out the car you want to buy. I do encourage a sewer scope and a radon test. This can add another $200-$300 to the inspection costs, but it is worth it.
The other fee you need is the Appraisal fee. This is another $600-$800. It is another non-refundable fee.
The inspection is for you. You and your Realtor will be at the inspection (or should be), and only you guys will see the report. You hire the inspector. The appraisal is for the bank. The bank will only lend you either the purchase price or the appraisal amount...whichever is less. The bank is hiring someone to come out to assess value. They are not an inspection.
So, if you have $3,000... you have enough money to buy a home.

Every loan program is different and has different credit requirements. Not every lender can offer the same programs or loans. ....and not every home will be financed with certain loan programs. For example, you can't use FHA, or conventional loans to buy a manufactured home in a park. Those aren't considered real estate because the land isn't owned. It is more like a personal loan. If the land is owned, then it is a different story, but the manufactured home has to fit in the 'box' of what is allowed for that loan type.
Do NOT be discouraged!

Buying a home now is what will help you with your next home down the road. If you are thinking about buying your FIRST home, please remember that this is your FIRST HOME... it won't be your last. This is the place where you start building equity and putting money away for your future. When we bought our first home... it was tight, but we made it work. When we sold that home, we used our equity for our current home. I could not afford to buy my current home today... if it wasn't for the equity we built up in that first home that we used to buy this home.

I can not stress this enough... TAKE A HOME BUYER EDUCATION CLASS! They are free & non-promotional. You can take it online through Zoom, or at the Marshall Community Center. The website is www.LearningToBuyAHome.com.

As a heads up for Buyers & Sellers... There were a LOT of changes in the real estate & lending world this year... and some new paperwork that didn't use to be required, but as of 1/1/24, is required now. Real estate & lending is all about paperwork, so before you sign anything, you better know the pros & cons of what you are signing.

As always, "may the odds ever be in your favor" I am here for any questions, and always available to help you with your next Home Adventure... Whether you are buying, or selling... I got you Boo! I appreciate you, and your referrals more than words can express. Thank you!

Have a great day, and I will talk to you soon,
Emoji
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
www.traciedemars.com
[email protected]

“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com or www.freesellerclasses.com for local upcoming home BUYER and home SELLER classes, or facebook: Tracie DeMars Real Estate for my educational blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

Hello!
I know that the $350,000 price range is super tough in the Clark County area.
One of my clients has found their next home, and is selling their current home for $349,900! Please help us find a buyer for this really cute home!!
Check out 1610 SW 6th St in Battle Ground!
Yes, it will go FHA. No, there isn't any HOA fees.
Really nice attached home with vaulted ceilings, forced air, air conditioning, a fenced yard, real 2 car garage, and a new roof will be installed at closing (tear off & new roof).
2 bedroom/1 bath 852 sq ft
*Please share* ❤️
Presented by: Tracie DeMars ReMax
360-903-3504/cell [email protected]
www.LearningToBuyAHome..com

REal Estate Talk with Tracie DeMars Real Estate

2023 in review & what's up with 2024

Home Buyer Classes:
February
Saturday 2/3 10am-1pm Marshall Community Center
Saturday 2/10 1pm-3pm Virtual through zoom
Tuesday 2/20 5pm -8pm Marshall Community Center

Home Seller Classes
February
Tuesday 2/6 5pm-7:30pm Virtual through zoom
Saturday 2/10 10am-12pm Virtual through zoom
Saturday 2/24 10am-1pm Firstenberg Community Center

***for the zoom class link, please [email protected], or sean.demars@comcast***

Next home buyer & home seller classes (in person & online) are available at:
www.learningtobuyahome.com
www.freesellerclasses.com

Don't want to go to the website? (Hey! it has other awesome blogs & videos on there too!), you can always email me at [email protected] and I will email you the schedule.

Well, this new year opened up with a BANG of weather, didn't it? Some people loved being 'stuck' at home with their family, and some people really wished they had a bit more 'space' and went a bit stir-crazy. I personally loved it, but if you found you were one of the families who wished they had a bit more 'space', or maybe less 'space'... I can help with that. Personally, I love the new year. I love that the whole year is laid out before me like an unopened present. It's time to lay down some general plans, & goals for the new year. A time to look over last year about what I did well, and what I would like to change for this year. It is a time for review and a lot of what we 'think' this year will look like, so this may be a good time to talk about both....

In 2022 we saw interest rates skyrocket from the low 4's to the low 6's. In 20223, we saw interest rates sky rocket like a toddler on a sugar rush to the 8's. We hadn't seen interest rates in the 8's since the early 2000's. This put the brakes on the real estate market faster than me seeing a cop on the freeway when I am driving.

2023 was really the year of 'adjusting' as both buyers, and sellers, adjusted to the 'new' market.
For buyers, the big adjustment was interest rates without government intervention. Historically speaking, rates in the 6's are really good. When I purchased my first home in 2001, we had an interest rate of 6.875%, and we were beyond thrilled to have a rate under 7%. However, rates in the 6%-7% appear a lot different when rates were 4% in 2017, and in the 2%-3% before 2022. I know that many buyers were hoping that list prices on homes would fall just as fast as these rates had gone up, but while the market has softened and we aren't seeing home prices increase as in the previous years, we haven't seen home prices fall all that much either. Home prices have softened. Buyers can negotiate getting closing costs included in their purchase, which for many buyers has been hugely helpful with buying down interest rates. Buyers have been able to negotiate repairs on a home inspection. Buyers have also not had to compete with multiple offers on most homes.
For sellers, the big positive adjustment has been the ability to do contingent offers. For the longest time, a seller who was looking to purchase their next home really struggled with getting another home under contract contingent on selling their current home. In our market though, this is possible again. I currently have 2 clients who are in contract to purchase their next home 'contingent' on the sale of their current home. It does alleviate a lot of the stress for a seller about where they are going once their home sells. For sellers, one of the biggest realistic adjustments is that their home may be on the market for longer than a weekend and that multiple offers selling way over the list price are less likely.... unless they are willing, or able, to list their home for well under market value. When I am talking with a homeowner about selling their home, another item that we will be discussing is the possibility, and likelihood, of the buyer requesting closing costs to be included with their offer.
For both buyers and sellers, it is a more balanced market.... and that does benefit everyone.
With interest rates fluctuating so much this year we also saw a lot of Back On Market (BOM) homes. A buyer's interest rate can't be locked in until they have a home under contract to purchase, and most rate locks are 30 days (after the buyer has a mutually accepted offer on a home), and some can be 45-60 days... for a fee. For my buyers, before we make an offer, I request their lender send them information on their payment and what money they would need to bring in (if any depending on their loan type).... before we make an offer. This is very important for both the buyer and yes, the seller as well. Most people don't realize that the changing interest rates, and what the home's property taxes are, can change what their estimated payment will look like. . One thing most buyers don't realize (or are taught) is that they are not pre-approved for a dollar amount. They are pre-approved for a mortgage payment amount. As the interest rates go up, so does the mortgage payment, which means how much home they can afford to buy goes down.

One thing that we are still seeing in our current market is the lack of supply of homes for sale. For many sellers, it is really tough to give up those 'once in a lifetime' interest rates to move to their next home. Surprisingly we do have more homes on the market now than we have had, but for buyers, it might not feel like it.

So, what do we think will happen for 2024?

At the end of 2023, the government eased up on interest rates... what a relief! We are starting 2024 with rates in the 6%'s. I know that still feels like a lot more than what it was 2 years ago, but it is a lot better than what we saw throughout most of 2023. So, will rates go down even more this year???? What is the answer? Boy, oh boy.... what a loaded question. This is also a question that many Realtors and lenders are hearing right now. I wish it was an easy answer, but it isn't...
Remember how I said last year that real estate 'typically' runs in 10-year cycles? Historically, every market cycle change has a 3-year transition period, the last market change had a transition period of 2010-2012. This market change ( I think when we look back) will have a transition period of 2022-2024. I think this is the year that we see what our next cycle will look like for our market.
Currently, the Fed is saying that they aren't going to raise rates this year and that they may even lower the rates more. Please remember that this is NOT set in stone and that they can change their mind at any time. The 'good' news (if you can call it that) is that this year is an election year. Historically, the government likes to keep rates low(er) and have positive things to talk about during election years. If you are thinking about buying, or selling, election years tend to be more stable to do so.
I have heard that some people are "waiting until rates drop" before they buy a home. I understand wanting to buy a home at the 'best time', but there is no way to guess when that is going to be. Most times, you only see that 'perfect moment' after it has passed. Buy a home when it is a good time for you. If the interest rates do go down, you can refinance for the lower interest rates later. Ask your lender about that. One of my clients who purchased this summer at 8% is now refinancing for 6.5%... they are very happy...now

What I do know is that people who buy are still better off than folks who rent. Your mortgage is your mortgage. It is your home and your equity. Now... to be fair... My crystal ball has a crack in it, my magic wand is on the fritz, and the magic 8-ball is a damn liar. I don't KNOW what will happen, and when, or if. Many outside events could happen and skew everything that we know. The world keeps turning like sands in the hourglass, and I keep shaking the magic 8-ball, but all I get back is "Reply hazy. Ask again Later".

If you are thinking about buying, or selling, a home, and have questions, please reach out. I would be honored to help. It is a changing market, and I am here to help!

Have a great day, and I will talk to you soon,
😄
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
www.traciedemars.com
[email protected]

“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com or www.freesellerclasses.com for local upcoming home BUYER and home SELLER classes, or facebook: Tracie DeMars Real Estate for my educational blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).