2 BIGGEST HOME BUYER MYTHS THAT NEED TO BE BUSTED!

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that “eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:

“Consumers are often unaware of the option to take out low-down-payment mortgages. Only 19% of consumers believe lenders would make loans with a down payment of 5% or less… While 15% believe lenders require a 20% down payment, and 30% believe lenders expect a 20% down payment.”

These numbers do not differ much between non-owners and homeowners; 39% of non-owners believe they need more than 20% for a down payment and 30% of homeowners believe they need more than 20% for a down payment.

While many believe that they need at least 20% down to buy their dream home, they do not realize that programs are available that allow them to put down as little as 3%. USDA has NO down payment! Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Similar to the down payment, many either don’t know or are misinformed about what FICO^® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

As you can see in the chart above, 53.5% of approved mortgages had a credit score of 600-749.

I have the resources to answer all your questions.  Call me today & let's talk!



Elizabeth

Elizabeth Scott, Realtor®, Broker
Diamond Award – High Sales Volume
e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC       
Phone: 919.306.9699

http://www.thesmartrealestateagent.com/contact/
Email:  Elizabeth@TheSmartRealEstateAgent.com

Search for Homes Now

Great Info on our Local Real Estate Market

My LinkedIn Profile

Triangle NC Real Estate Market Trends December 2017

Triangle Real Estate Market Trends for December and Year-To-Date

We hit a number of records in 2017 in the Triangle Real Estate market.  Let’s take a look at the numbers:

INVENTORY OF HOMES – DECEMBER 2017

We have less homes available for sale in 2017 than we have had in the previous 2 years.  Months supply is 2.1.  This means that it would only take a little more than 2 months to sell ALL the homes in the Triangle.  A stable market is 6 months.  So, this heavily favors SELLERS.

AVERAGE SALE PRICE – DECEMBER 2017

Now at $293,344 which is an historic record!  The average sale price of a brand new home is over $300,000.  Sixty five percent of resale homes sold within 30 days with 18% going for over list price.  Sellers are receiving an average of 99% of their asking price.  This means that buyers need to know what they are doing in order to get the best value for the money.

CLOSED SALES – DECEMBER 2017

December, which is historically a slower month was busier than ever in 2017.  And, fifty three percent of these homes that were listed in December are now pending or closed!  Don’t blink!!

DAYS ON MARKET – DECEMBER 2017

Average Days on Market was 39 (this means time from original listing to close).  This is another HISTORICAL achievement.  This is about as fast as a home can go considering loan finalization, inspections, etc.

NEW LISTINGS – DECEMBER 2017

The number of new homes on the market in December 2017 was up 0.7%.  This is great because we need the inventory.  The number of new construction homes were up 8.0% 

What does this mean for you?

-        It is a sellers market.  BUYERS need lots of knowledge & experience in order to order to get the best value in their home purchase.

-        Homes are selling fast.  BUYERS must have the loan APPROVAL ready because sellers won’t wait for you.

-        Home prices in the Triangle are at historically high levels.  You need an experienced Real Estate Agent to help you find the perfect home that will fit your budget.

-        Homes sales are busy ALL YEAR LONG! So, don’t wait for the spring if you’re thinking of SELLING – contact me & I will help you get ready to go.

Want to know what is happening in your City, Town, or even subdivision?  I’m your local Real Estate EXPERT with 6 years of success in the craziest real estate market we’ve ever had.  I’ll be happy to run those reports for you so that you will know if this is the right time to sell or buy.  Let’s talk!

Elizabeth

Elizabeth Scott, Realtor®, Broker
Diamond Award – High Sales Volume
e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC       
Phone: 919.306.9699

http://www.thesmartrealestateagent.com/contact/
Email:  Elizabeth@TheSmartRealEstateAgent.com

Search for Homes Now

Great Info on our Local Real Estate Market

My LinkedIn Profile

-         

REAL ESTATE MYTH BUSTER!

REAL ESTATE AGENTS are paid a salary -- BUSTED!

Despite what many think, the public is quite confused about how agents make a living. 

There must be a salary floating in the background that supports agents — after all, how is it that they can appear so well-groomed, professional and polished while hosting broker events, open houses or other marketing activities, showing customers around town all day and buying them lunch?

Attention Looky Loos and sellers just testing the market: the agent’s time and expenses are 100 percent on them.  Did you know that?

There is no base salary or reimbursement for the time and money they’ve expended no matter the outcome, whether it’s 500-plus messages or hours of research, advice, problem-solving, trouble-shooting, giving insight over the phone or making countless trips to show property.

How would you feel if your employer decided, as part of its cost cutting, to not give you a paycheck for your all of your work and effort, especially on a big project that involved a tremendous amount of time and effort on nights, holidays and weekends?

Be kind to your Realtor – most of us really do work hard to help you.  If you are not comfortable with your agent, tell them early on so they can either improve or so you can move on to someone who is a better fit.

Share your REAL ESTATE MYTH with me and I will either BUST or CONFIRM for you.



Elizabeth
Elizabeth Scott, Realtor®, Broker
Diamond Award – High Sales Volume
e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC       
Phone: 919.306.9699

http://www.thesmartrealestateagent.com/contact/
Email:  Elizabeth@TheSmartRealEstateAgent.com

Search for Homes Now

Great Info on our Local Real Estate Market

My LinkedIn Profile

Be savvy...Call the Smart Realtor -- I'm never too busy for any of your referrals