Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #MarketWatch #InventoryGone #Lease #SellersMarket #SellNow #StrongDemand #BuyNow #EvictionMoratoriumBump
Information from Mark M. Hancock a REALTOR with Keller Williams North Country. Information primarily covers Texas with emphasis on DFW and detailed information about Frisco, all of Collin County and Southeast Denton County. See more at DFWmark.com.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #MarketWatch #InventoryGone #Lease #SellersMarket #SellNow #StrongDemand #BuyNow #EvictionMoratoriumBump
Follow this link if you want to see a video of how to assemble the previous skeleton craft cards (this is the same process with a different "torso."
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #Frisco #Halloween #Craft #treat #TreatHouse #pumpkin #jackolantern #orange
Meanwhile, interest rates have increased to 3.05% from 2.77% on Aug. 5. It still hasn’t hit the 3.18% peak from April 1, which followed the record low of 2.65% back in January.
Talk with your specific lenders, but in ballpark numbers, each 1% mortgage rate increase equals about 9% to 10% less buying power. A buyer with great credit can get a $400K house at 3% or about a $364K at 4%.
The lease market had only a few more enter the market than leave. The eviction moratorium bump appears to be waning. Expect shortages and price increases to continue for the foreseeable future. Also expect irrational offers over asking to become normal in the lease market as they have in the preowned market.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #metallic #button #promo #silver #gold #blue #green #pink
Please view or download my free House Seller Guide.
The increase probably resulted from the eviction moratorium ending. The simplest eviction properties to repair and list entered the market and are gone. More will trickle in as repairs are completed but expect the shortage to resume soon.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #MarketWatch #InventoryDrain #EvictionMoratorium #SellersMarket #SellNow #StrongDemand #BuyNow #LowMortgageRates
(c) Mark M. Hancock / DFWmark.com |
February
Mid Feb - March depending on Easter date
West End's Mardi Gras Parade
214-741-7180
mardigrasdfw.com
1010 First Avenue Dallas
3rd weekend in Oct.
Huffhines Art Trails
972-744-4580
huffhinesarttrails.com
Huffhines Park, Plano at Apollo roads, Richardson
Last weekend in Oct.
Dallas Air Show
888-945-3008
wingsoverdallas.org
Dallas Executive Airport-RBD, 5303 Challenger Dr. Dallas, TX 75237
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #InformationOfValue #FreeBook #IOV #AnnualEvents #ThingsToDo #DFWActivities #events #NeverDull
Please read or download my no-cost, no obligation House Seller Guide (linked). I handle almost everything in the book for Sellers who work with me. It’s my goal to make all transactions as smooth as possible for my clients.
Stress is often created through “fear of the unknown.” I fixed that. This book is a great reference resource because I want my clients to be fully informed throughout the process. Nothing is a mystery. It’s all here. Plus, I’m always a call, text or email away.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #HomeSellerGuide #FreeBook #SellNow #SellersMarket #TimeToSell #GetItSold #KnowItAll #IveGotYourSix
The increase likely results from the eviction moratorium ending. The eviction process takes a little while on its own. Then, high repair prices and a low number of skilled trade workers to prepare properties probably caused the delay.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #MarketWatch #InventorySurge #EvictionMoratoriumBounce #SellersMarket #SellNow #StrongDemand #BuyNow #LowMortgageRates
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #toys #unicorn #Pegasus #OpenHouse #CollinCounty #DentonCounty #magenta #purple
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
Unapproved buyers simply aren't prepared to make immediate offers. A properly priced house could have 30 offers in the first few days. This is business. Sellers will select buyers that are READY, willing and able to close the transaction.
• It's vital to get the final loan approval number from a trusted lender. Many variables are factored into the amount that lenders may risk at any specific time on any specific borrowers for any specific properties. Only lenders determine this, and lenders will each have different standards. The preapproved amount is the maximum allowed by a specific lender.
• It's important to shop lenders. Borrowers can have multiple "like kind" credit inquiries ("hard pulls") by mortgage lenders within a 45-day period, and those only reduce the credit score as if one inquiry was requested.
What Can I Afford?
Many financial advisers suggest the 28/36 Percent Rule for housing. This rule allows for a maximum of 28% of gross annual income for housing expenses and a maximum of 36% for total debt (8% more on top of housing). The remainder is used for food, utilities and life's essentials.
Buyers should have financial "breathing room" when determining how much debt they are willing to incur. Don't become "house poor."
The final lender-provided number includes consideration for the loan principal and interest along with insurance, taxes and often HOA fees. Lower interest rates allow buyers to get bigger, better and newer homes because less money is paid toward interest each month for 30 years.
As a rule of thumb, three times annual income is a good starting point for estimate calculations. If someone is completely debt free, a number closer to four times annual income might be possible but not suggested.
Expect household expenses to rise. More interior space could mean more utility expenses. More exterior space may mean more gardening and upkeep expenses. Older homes often need more maintenance.
Don't surrender savings, retirement and college expenses to afford a house. Buyers should get the ideal house, which may not be perfect.
Estimated "Ballpark" Starting Amount
The calculation below gives buyers a "ballpark number" to estimate when buyers have saved enough to take the next steps.
_______ $ Gross annual income
_______ $ x 3 Rule of Thumb sales price range (Price)
_______ Price - Down payment = Total Est. finance amount *
* Use Total Est. amount for following calculations
Down Payment
Below are the down payment amounts buyers may need at closing for different types of loans and different obligations. These are based on the amount financed rather than the total price of the house.
_______ $ Total Est. Amount Financed
_______ $ x .03 Minimum conventional loan.
_______ $ x .035 Minimum FHA loan without grant
_______ $ x .05 Common conventional loan
_______ $ x .2 Minimum conventional loan to avoid PMI*
* PMI is Private Mortgage Insurance collected by the bank to ensure the borrower pays
the debt until the borrower has paid 20% of loan amount or gained 80% equity in the house.
Debt-To-Income Ratio
The debt-to-credit income is how lenders determine the amount of risk they will accept for any specific loan amount. Different lenders and loan types have different ratio thresholds. Please see previous page.
_______ Buyer total monthly expenses
_______ ÷ Gross monthly income
_______ = Total Debt Service Ratio
Expected Closing Costs
Below are the expected total expenses to calculate. It is based on the total price of the house rather than the amount financed.
_______ $ Total Agreed sale amount
_______ $ x .01 Earnest Money (EM) required on Day 1.
_______ $ x .035 Estimated Closing Costs (CC)
_______ CC - EM = Approximate amount needed at closing.
Credit Score Minimum
Buyers should have a middle credit score of 620 or above. Loan officers make decisions based on the middle credit score of the lowest-scored application if there are two or more borrowers. It’s the loan officer's job to protect the company’s investments.
To ensure an easy approval, continue to pay lenders on time, reduce debts and increase savings for a down payment and closing costs.
Initial Money Requirements It’s ideal to pay a 20% down payment to avoid mortgage insurance, which only ensures the bank gets their money each month. However, conventional loans are often 5% down and a few are available with as low as 3% down.
Federal Housing Administration (FHA) loans start at 3.5% down. However, these loans have a Mortgage Insurance Premium throughout the entire loan. FHA loans also have minimum appraisal and inspection standards that must be met. In a strong seller’s market with multiple offers, it’s often difficult to get sellers to consider buyer’s offers that include FHA restrictions.
Closing costs are about 3.5%. Earnest money can be applied to closing costs. Often the earnest money payment is 1% of the house’s sales price. For example, a $300,000 house would have a $3,000 (1%) earnest money payment and an additional $7,500 in closing costs for a $10,500 total (3.5%).
While Veterans Administration (VA) loans can be approved with a $0.00 down payment. The veterans must still pay earnest money and closing costs. Sellers can voluntarily agree to pay some portions of the closing costs for any buyers. VA loans also have minimum federal standards.
Closing costs vary and can be less but expect a higher amount to ensure the buyers can get across the finish line with some money left over in savings for moving and unexpected expenses.
Down-payment assistance grants are available. However, credit scores must be at least 620 or above to qualify. We all cross the finish line.
Debt-To-Income Ratio
Debt-to-income ratios are calculated by dividing the borrowers’ total monthly debts by the gross monthly income before taxes (see calculator). Monthly debts include all projected debts both fixed like mortgage and car payments as well as revolving or variable debts such as credit cards.
Ideally, debt-to-income ratios won't exceed 36%. Conventional lenders want the ratio of buyers to be less than 43%. Meanwhile, FHA allows this ratio to be up to 50% unless the borrower needs a grant.
Working with a great lender is essential to make educated decisions and find all options available to meet buyers' goals. Other programs can go outside the traditional guidelines, but the suggestions above will get most folks keys to their ideal house.
For many people, a house purchase is the single largest investment of their lives. It comes with risks and rewards. However, homeowners have more than 40 times the net worth of renters according to the Survey of Consumer Finances by the Federal Reserve.
When discussing home ownership and net housing wealth, The Survey of Consumer Finances stated, "For families in the bottom half of the income distribution, the homeownership rate was 49.1 percent in 2019, while the homeownership rate for those in the top 10 percent of the distribution was 93.6 percent."
Photo Illustration |
Like-kind properties are single-family, ranch, townhouse, condominium, duplex, triplex, multiplex, etc. Additionally, the CMA aims to find properties that are similar in size, age, location, number of stories, pool or not, subdivision, elementary school attendance area, and composition (wood, brick, adobe, etc.) to the subject property.
Once the basics are close, minor adjustments can be made for upgrades such as floors, stone counters, sprinkler systems, etc.
The main categories viewers are likely to see on CMAs are:
• Active Properties - are currently for sale. Because real estate is negotiable, this is often a "wish we could get" number. In super hot markets, this can be deliberately low to create a bidding war for the highest offer in the shortest time.
• CDOM (last column) - literally means the “cumulative days on market.” A high number of days on market can indicate a problem with the price (most often), location (next to a highway or airport) or the property itself (condition). However, it could also mean the seller is reluctant or too busy to release the property.
• Coming Soon Properties - are NOT currently for sale. They cannot be shown to the public until they become Active. Nonetheless, buyers can send "blind offers" to purchase the properties while they are in this status without ever seeing the property in person.
• Active Option Contract Properties (0-7 days typically) - have executed a contract and are currently conducting due diligence inspections and settling some negotiation points. These are essentially off the market unless something goes wrong with buyer financing or the house condition during inspection.
• Pending Properties (0-45 days) - have settled most negotiations and await resolution of some actions such as title, finance, repairs, etc. before closing.
• Sold/Closed Properties (0-90 days typically) - are exactly what you would expect. They are the strongest indicator of market value of homes entering the same market because these are examples of what the market has recently paid for similar homes.
• Active Contingent Properties - are properties where the sale is contingent on some other action happening such as financing approval.
• Active Kick Out Properties - are also properties where the sale is contingent on some other action happening (typically the sale of the Buyer’s house). However, the contract allows the seller to cancel the contract if another buyer makes a better offer during the contingency period. The first buyer must move forward within a very short period (typically 2 days) to prevent being kicked out of the agreement.
• Expired Properties (0-90 days) - are properties that – for whatever reason – didn’t sell during the time it was marketed.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #SellMyHouse #HouseForSale #StagedHouse #HouseStaging #ThingsRealtorsNotice #Pellegrino #water #bottle #DisconnectedFromReality
We are currently near historic low interest rates (the cost of borrowing money). This fueled the buying spree that started in July 2020 because people can get "more house for less money." Please read, "Two Reasons Why Waiting a Year to Buy Could Cost You" by Keeping Current Matters.
It is a strong "seller's market" because all the inventory is depleted. However, now is ALSO the best that the market is going to get for buyers. If any buyer is not financially or mentally ready now, that's different. No worries. They should do what's best for them.
The current situation has record low interest rates, record low inventory, record low housing starts, near record high material costs, and skilled worker shortages during record high sales volume (yes, you read that correctly).
We already know about the low Inventory of Homes for Sale. We are near the record low volume from earlier this year. This means all the reasonable reserves have been depleted. That's logical.
The part that isn't logical is Closed Sales. The volume since about March 2021 was higher than it was during any point in the record-breaking years of 2018 and 2019. It dropped off this month mostly because of schools starting (cyclical), low inventory and buyer fatigue rather than anything else.
So, there is a record high volume of homes sold AND a record low inventory.
Consequently, prices won't go down. This is the best they will be for the foreseeable future. Only the past 15 months would be a better time to buy than right now from an appreciation point of view.
The lease market is still difficult for all but the most qualified applicants without pets. Don’t rent when it’s easier and better to buy. Talk to me.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com
#DFWmark #REALTOR #MarketWatch #SellersMarket #BuyersMarket #RealEstateTrends #RealEstateGraphs #HistoricHousing #StrongDemand #RealEstateAnalysis
Welcome to the DFWmark Blog! This is a collection of content by Mark M. Hancock, a REALTOR with Keller Williams North County in Celina...