Do’s and Don’ts of the Loan Journey

Buying a home is more than just looking at pictures and touring pretty houses. Finances pay a large part in the home buying process. The first step when looking for a home is getting preapproved. But even after you’re preapproved, it’s important to keep your finances in order. The loan isn’t guaranteed until you close on your home. If your credit score changes, your balance owed changes or you change jobs, you could lose your preapproval and your ability to purchase your dream home.

Here are a few things to do and not to do to help qualify for a preapproval and keep that preapproval till the loan closes. Nothing is worse than the bank informing you just days before closing that you’ve lost your loan due to changes in your credit.

Do This

• Pay your bills on time. Staying current on your existing accounts is key to keeping your credit strong
• Stay honest. Keep your lender in the loop of any major life changes such as income, marital status, employment, etc.
• Keep balances low. It’s best to stay at or below 30% of your credit limit
• Avoid new credit. Credit inquiries or new credit can affect your credit score and your ability to qualify for a mortgage.

Don’t Do This

• Sell large items for cash. If you sell a large item (car, boat, etc.) be sure you get a signed bill of sale, copy of the check and an appraisal. Large cash deposits need to be documented.
• Switch jobs. Once you’ve started the loan process, consistency is important to be eligible for your financing.
• Make major purchases. Consult your lender before buying a new car, furniture for your new home or other large items before closing.
• Pay off collections. Let your lender guide you on what makes the most sense based on your financial situation.

By Bonnie Marlow, Broker/Owner, Cisco Realty

2021 Home-Buying Insights

With homes selling as fast as they hit the market, here are a few tips that home buyers should keep in mind. These tips can be helpful for all home buyers, but they are especially true during a sellers’ market.

Get pre-approved from the get-go. Because homes are selling so quickly in today’s market, it’s important to make getting pre-approved for your mortgage the first step in the homebuying process; that way, you know what type of budget you’re working with—and are ready to submit an offer as soon as you find the right property.

Don’t give up. Trying to buy in the midst of a seller’s market can be a frustrating experience. But don’t let the challenges deter you—because those challenges may not be any better if you put off the buying process. (For example, prices may seem high right now—but homes are continuing to appreciate, and prices could easily be higher if you delay your home search, or interest rates can increase and add to the cost as well.)

Flexibility is a must. With low inventory and high demand, you may have to be flexible with the conditions of your home purchase—for example, by allowing sellers to stay in the home for a month or two after closing in order for them to secure a new property.

Make the first offer your best offer. Most sellers are getting multiple offers on their home. So if you’re going to make an offer, make sure to put your best foot forward—and make your initial offer as high as you’re willing to go.

Work with a great real estate agent. Pairing up with an excellent real estate who can alert you as soon as new listings become available is very important, or you may not even have a chance to see a home before it’s under contract. Time is of essence when it comes to viewing homes as they come onto the market.

If you sleep on it, you may not sleep in it. Buying a home is a big decision and a major investment. It is not something to do without thought and care; however, in this market, buyers need to be prepared and ready to make a decision and put in an offer as soon as they find a home that works for them. If you take the time to think about it, another buyer may swoop in and get their offer accepted before you even submit your offer.

Despite these challenges, 2021 still remains a great time to buy a new homes as interest rates continue to hover around 3%.

By Bonnie Marlow, Broker/Owner, Cisco Realty

Tips to Maximize the Sale of Your Home

Homeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This gives homeowners leverage to sell for the best possible terms, and it’s fueling a steady rise in home prices.

Getting the best deal when selling a house is all about making your home stand out – while spending as little additional time and money as possible.

In such a hot market, houses are selling quickly. In the St. Marys/Celina area the average days on the market has reduced by 54 days from a year ago. Despite the speed and opportunity for sellers, there are still steps sellers can take to maximize their profits when selling their home.

1. Make Buyers Feel at Home: One of the ways to make this happen is to declutter. Pack away awards, sentimental items, collections, figurines, etc. Less clutter makes it easier for the buyer to picture their items in the space.
2. Keep it Clean: On top of making an effort to declutter, it’s important to keep your house neat and clean. Before a buyer stops by be sure to pick up toys, make the beds, wash the dishes, etc. This is one more way to reduce distractions and allow the buyer to concentrate on the home. Ensure your home smells fresh and clean as well. Buyers will remember the smell of your house, especially if it smells like pets, cigarette smoke, or some other unpleasant smell for the buyer.
3. Make Essential Repairs: Take care of issues such as broken cabinet doors, missing outlet covers, leaking faucets, torn screens, etc. Taking care of these items can make the home look well cared for and make the buyer feel more at ease as to the overall condition of the property.
4. Think About Curb Appeal: You only get one chance to make a first impression. Curb appeal is very important, you have to get them in the door before you can sell your house. I have seen buyers refuse to go into a home based on the look/condition of the outside of the house when they show up to see the home. Painting the front door, adding a new light fixture on the front porch or potting a few plants can help set a good tone for buyers.
5. Give Buyers Access: Buyers are less likely to make an offer on your house if they aren’t able to easily schedule a time to check it out. If your home is available anytime, that opens up more opportunities for multiple buyers to view the home thus increasing the likelihood of multiple offers. It also allows buyers on tight schedules to still get in to see your house.
6. Price it Right: Even in a seller’s market, it’s crucial to set your house at the right price to maximize potential. Pricing your house too high is actually a detriment to the sale. The goal is to drive high attention from competing buyers and possibly cause a bidding war pushing the final sales price up. Work with a real estate agent to determine the best list price for your house. Having an expert on your side in this process is truly essential.

If you want to sell in the least amount of time and for the best price, today’s market sets the stage to make that happen.

By: Bonnie Marlow, Broker/Owner, Cisco Realty

Thinking of Selling Your Home? The Market Says Go For It!

A year ago, the course of the U.S. housing market seemed anything but safe to assume. There were concerns about whether potential buyers would shrink away for fear of their financial security, and people were unsure what interest rates would do with an uncertain economy.

But fast forward to today, and it is clear that the uncertainty and fear was not warranted. As 2020 played out, it became apparent that America’s appetite for houses continued. Sustained low interest rates have motivated many buyers, especially first-time buyers.

Although mortgage rates have increased slightly since the beginning of the year, they are still hovering just above 3% and are expected to remain there for at least a little while. Additionally, economic conditions are expected to improve throughout this year.

While demand has remained high, housing inventory has remained low causing major competition and driving home prices upward. Sellers are finding that many homes are selling within days of listing and many have multiple offers.

If you’re thinking of upsizing, downsizing, or relocating this year, expect to sell at a high price; at least until inventory starts to catch up with demand. The sooner you list the more likely that you will be able to get top dollar and sell quickly. The further we go into 2021, the more possibility that more homes will be listed and there won’t be such a high inventory shortage.

Another advantage of listing now while inventory is low that you may not need to do as much work to your home to attract buyers and top dollar. Leave the cosmetic fixes such as slightly worn carpet. In this tight market, buyers are willing to overlook such small issues. However, at the same time you should fix major issues such as a roof with dangling shingles or old electrical that isn’t up to code. These major issues could still deter buyers, even in this market.

As a home seller, you definitely have the upper hand in today’s housing market. If you want to walk away with the highest offer, address major issues with your property ahead of time and list your home before inventory increases. Doing these things could result in a lucrative sale – with proceeds that could serve you well for years to come.

By Bonnie Marlow, Broker/Owner, Cisco Realty

What You Need to Know if You’re Thinking of Buying Your First Home in 2021

If you’re hoping to buy your first home this year, the real estate frenzy of 2020 may have you feeling dizzy. But don’t worry about it. While the market will remain very competitive, you can land the home you want with the right knowledge, good preparation, some flexibility, and a good agent.

With housing inventory at extremely low levels, 2021 will continue to be a sellers’ market. However, continuing low mortgage rates will keep affordability within reach and still make it a great time to buy despite rising home prices.

In this competitive market buyers need to be prepared, and that means putting finances first. Check your credit report and clear up any mistakes before you apply for a mortgage. Get pre-approved by a mortgage lender. Knowing the amount you’re qualified to borrow will help determine your housing budget. It will also show real estate agents and sellers that you’re a serious buyer and will allow you to move quickly when you find a place you love. After you’re pre-approved, set a realistic budget. Just because a lender pre-approves you for a certain amount doesn’t mean you should borrow the max amount.

A mortgage preapproval is an offer by a lender to loan you up to a certain amount of money to purchase a home. It’s not a guarantee for a final loan approval, but if there are no big changes in your credit score or employment, you should be able to close and purchase your dream home. So put away the credit cards and leave the furniture buying until after closing. Lots of spending can ding your credit score making you ineligible for your home loan. Additionally, pumping the brakes on spending might give you a nice buffer for closing costs, down payment funds, the home inspection, moving costs, renovation expenses and more.

Additionally, you will want to work with a good real estate agent. Your agent can even refer you to local lenders if needed. After you are preapproved, your agent can watch for homes coming on to the market that are in your price range and preferred area. With many listings going under contract within days of being listed for sale, it’s important to have an agent who is working to alert you to homes coming available and is able to get you a showing as soon as possible.

It’s important to be realistic during your house hunt. No house is going to be perfect, and it’s important to be flexible. Just be sure you can live with the compromises you are making. Buying a home is a big investment and you want to be happy in your new home. Additionally, it’s easier and usually less expensive to change cosmetic issues than it is to move a wall or add on to a house!

When house hunting, look only at homes you can afford. You don’t want to fall in love with a house you can’t afford or have unrealistic expectations for your price range.

With low inventory, be prepared for your house hunt to take months, not weeks. But once you find the home you want, be ready to move quickly! If you find a reasonably priced house in good condition, chances are you won’t be the only one making an offer. Properties are moving fast. If you see a place you love, make an offer quickly; with so much competition; if you sleep on it, you may never sleep in it! Your agent can help you come up with a winning strategy or help you navigate a bidding war if you find yourself in this situation.

While 2021 will be another challenging year for first-time home buyers, with the right preparation and a good agent, the process can be less stressful and hopefully fun. Happy house hunting!

By Bonnie Marlow, Broker/Owner, Cisco Realty

Local Home Sales: What’s Up, What’s Down?

Across the nation, headlines have been touting low housing inventory, home prices rising, buyer demand remains strong, and interest rates remain low. But what does that mean for our local market? After all, our little corner of the country can be quite different than New York, Los Angeles, or even Columbus, Ohio.

Locally, many Realtors have been experiencing a listing shortage throughout 2020, while buyer demand remained steady during the second half of the year. Low interest rates are driving first time home buyers into the market. And home prices are trending up.

According to Norada Real Estate Investments, national inventory declined by 39.6% over last year. The December 2019 national median listing price was $340,000, up 13.4% compared to last year.

Locally, Wapakoneta saw prices of sold homes increase by $8,998 in 2020 over 2019 to an average sales price of $160,103, according to data from Western Regional Information Systems and Technology Inc., an online multiple listing service in Ohio, servicing the counties of: Auglaize, Champaign, Clark, Logan, Mercer, Miami, and Shelby. Additionally, the average number of days that a home stayed on the market decreased by 13 days.

Celina’s average sold home prices increased to $171,107 in 2020, compared to $144,079 in 2019. St. Marys average sold home price was $146,362 in 2020, up from $127,468 in 2019.

Last year, St. Marys started February with 58 active listings. This year, we started the month with only 32 listings that were still active not pending or contingent.

If you’re thinking of selling, if you’re home is priced at market value; you will most likely see a lot of buyer interest and may even receive multiple offers.

If you’re thinking of buying soon, expect to find a lot of competition for the well-priced homes. You will need to be ready to move when a new home comes on the market, making it especially important that you are pre-approved with a lender. Additionally, a good Realtor can help you quickly find those homes that are coming onto the market that meet your requirements, so that you will have the opportunity to see the home before it is under contract with another buyer.

By Bonnie Marlow, Broker/Owner, Cisco Realty

Buying a Home in 2021

What Will Buying a Home Look Like in 2021?

1. More buyers than homes for sale. If you find a reasonably priced home in good condition for sale, chances are you won’t be the only one making an offer – even if it just hit the market. It’s a seller’s market.
2. Home prices are expected to continue to increase, but at a slower pace than in 2020. Demand for housing and bidding wars will continue to drive home prices upward as we go further into 2021.
3. Mortgage rates are expected to remain low. Mortgage rates fell to historic lows in 2020. Although, they may rise slightly, most economist expect the mortgage rate to remain around 3% in 2021.

So, What Does All This Mean for the Buyer?

First of all, it’s still a great time to buy! The low interest rates mean your monthly mortgage payments will be low despite the rising home prices. First time home buyers could find that they can own a home for less per month than renting.

However, buyers may need to be flexible and make some compromises. It’s always hard for buyers to find everything they want in a house in their price range, and the lack of available houses and the buying competition; makes it even harder. Buyers will need to decide what are the most important aspects of a home and what they can live without. Necessary cosmetic changes are always the easiest and least expensive compromises to make.

It’s important to be prepared! Buyers should always get preapproved by a lender before looking at homes; and right now, that is more important than ever. Most sellers won’t even consider an offer from a buyer who isn’t preapproved. And with homes going sometimes within hours of hitting the market, buyers need to be ready to put in an offer as soon as they find the one they want.

Buyers also need to be working with a great Realtor. With houses going under contract almost as soon as they hit the market, buyers would need to watch the real estate websites 24/7 to make sure they didn’t miss a new listing that they might be interested in seeing. Realtors can watch the homes coming onto the market alert the buyer when new houses may be coming on the market and when one becomes available that meets their needs.

Despite all the challenges, it is very possible to buy a home in 2021. Work closely with your Realtor and your lender to find a home that meets your needs.

By Bonnie Marlow, Broker/Owner, Cisco Realty

Make a Holiday Listing More Appealing

Want to get your home show-ready while also enjoying the holiday with your family and friends? It’s easier than you think. Here are some things to keep in mind.

Lighten up on Decorations

While you’ll want to enjoy the season, don’t feel the need to cover every possible surface in holiday décor. It’s important for buyers to be able to see the space and get a sense of how it works during the non-holiday months of the year. Go for a more minimalist, decluttered holiday look that enhances, rather than hides, the home.

Focus on Outdoor Spaces

Even though it’s winter, don’t neglect your outdoor spaces. Keep paths and surfaces clear of leaves and new-fallen snow. Optimize outdoor lighting so that buyers can see well, even when it gets dark early.

Warm up the Space

Speaking of cozy, take advantage of the season to enhance the indoors as well. Greet potential buyers with the scent of something baking in the oven and a plate of holiday cookies on the counter. Light evergreen scented candles and start a fire in the fireplace. Make visitors feel welcome and right at home.

Take Photos Before you Decorate

Just in case your home doesn’t sell before December 25^th, it’s a good idea to take listing photos before you decorate, or have your agent take new photos after the holiday décor is put away. You don’t want buyers looking at photos with holiday decorations in mid-January. It will make your listing feel stale, even if it hass only been up for a couple of weeks.

Right Price Your Home for a Faster Sale

If you’re motivated to sell, this is not the time to test the market and hold out for a higher-than-average sale price. Talk to your agent about comparable properties in your area, and ensure that you price your home correctly at the beginning of the process for maximum market impact.

A real estate agent or broker has the market insights, professional network, and buyer pool you need to get your home sold any time of the year. Talk to them about your timeline and your financial requirements and they’ll help craft a plan that makes sense for you.

By Bonnie Marlow, Broker/Owner, Cisco Realty

Should You List Your Home During the Holidays?

Whether you’re planning a family Christmas gathering, an intimate Christmas celebration or focusing on celebrating the new year; if you’re also planning to sell your home, you may be contemplating holding off until after the new year. After all, nobody buys houses this time of year, do they? In 2020, the answer may very well be “Yes, they do.”

The COVID-delayed spring market and pent-up buyer demand, along with low inventory in the spring and summer selling season and record-low interest rates, means that for many buyers the search for the perfect home is ongoing. If you were thinking of waiting until 2021 to sell your home, you might want to consider moving your plans up and list your home now to take advantage of strong buyer demand.

Advantages of Listing a Home During the Holidays

There are plenty of good reasons to list your home during the holiday season, including the following:

• More motivated buyers during this time of year. If they still haven’t found the home they want – or if they have a sudden need to relocate – holiday buyers may be more willing to make decisions quickly.
• Many buyers have been disappointed by losing homes in multiple offer situations due to the summer’s low inventory. They may be willing to move fast and pay top dollar before someone else “steals” the home from them.
• The increasing use of virtual tours makes it possible to market your home with minimal inconvenience.
• This is a slower time of year for real estate agents as well, so your agent will have more time to focus on your listing.
• And let’s face it, you’re already cleaning and decorating your home for the holiday season. What better time to show it?

Challenges of Listing a Home During the Holiday Season

Of course, listing a home this time of year may bring some drawbacks, including the following:

• If you are entertaining during the holidays, you’ll want to communicate with your agent about days and times when tours will not be available.
• If you’re traveling during the holidays, you’ll need to ensure that you are available for negotiations and pertinent questions as needed.
• If time is of the essence, it may be slightly more difficult to schedule home inspections, appraisals and closings quickly during the holiday season.

A real estate agent has the experience, knowledge, and professional network to market your home any time of the year. Talk to your agent about your requirements and timeline, and they will put together a plan tailored to sell your home.

By Bonnie Marlow, Broker/Owner, Cisco Realty

This Fall May be the Best Time to Sell

It has been a strange summer to say the least. Between the threat of the coronavirus, a wobbly economy, and layoffs happening all over; it’s no surprise that many who may have hoped to sell their home this year have waited and may still be wondering if they should continue to put their plans on hold.

Such hesitancy is understandable. Yet, the irony is that the current housing market conditions show this may be best time to sell a home in years! The data indicates that buyers outnumber sellers in the housing market making it better to be a seller than a buyer.

There was already an insufficient supply of houses last year, and the pandemic has just intensified this shortage. Making the Fall real estate market abnormally hot this year as mortgage rates remain at near historic lows.

The coronavirus pandemic has rewrote the way we do a lot of things this year, and homebuying is no exception. Typically, the real estate market tends to hit the brakes in the fall, as kids return to school and families juggle work, extracurriculars and the upcoming holidays. But that’s not what is happening this Fall. Homes are getting snapped up faster as home values rise and mortgage rates to continue to remain low fueling demand.

As the number of homes for sale continues to shrink, new listings are being snapped up quickly.

Home prices have been climbing and, in some cases, bidding wars and multiple offers are not uncommon. Homes at entry-level prices ($75,000 to $150,000) – often purchased by first-time homebuyers – are seeing a lot of activity and will probably remain hot as long as interest rates stay low.

With unusually high buyer interest this late in the year, buyers are moving faster to beat out competition and lock in low mortgage rates. This means homes are sitting on the market for much less time, despite higher price tags.

Whether this buying trend will continue is up in the air. Currently, supply is lagging behind demand. The only thing holding back homebuyers right now is the low level of inventory and stiff competition for homes that do come on the market.

If you’re considering selling this year or next, it may be better to sell now in an environment that’s favoring sellers, rather than wait for time to pass and circumstances to change. Without a crystal ball, there is no way to accurately predict what the housing market will be like next year.

By Bonnie Marlow, Broker/Owner, Cisco Realty