Blog :: 2018

Ready To Make An Offer? 4 Tips For Success

Home BuyersSo you’ve been searching for that perfect house to call 'home' and you've finally found it! The price is right and, in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true! Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:

1. Determine Your Price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present. Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer. Ready To Make An Offer? 4 Tips For Success 23

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.

Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes. Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality! Contact the Ternullo Real Estate team today!

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    November 2018 Real Estate Market: Suburbs North of Boston

    Watch this informative 2 minute video from John Ternullo to get an update on the real estate market in the suburbs north of Boston, specifically Middlesex and Essex Counties. He discusses inventory, days on market, homes sold, and sales prices. Learn about the “new market” we've entered and how it affects home buyers and sellers.

    Questions about the local area? Contact the Ternullo Real Estate Team today!

     

     

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      2 Factors To Watch In Today's Real Estate Market

      When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory.

      Interest Rates

      Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s Primary Mortgage Market Survey, rates have climbed to around 4.8% for a 30-year fixed rate mortgage. The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget. The chart below demonstrates the impact rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.

      Home Buyers Purchasing Power

      Inventory

      A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6 months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 80 straight months. The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last five months. The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, beginning in June, inventory levels have started to increase as compared to the same time last year.

      2018 YOY Housing Supply

      Bottom Line

      If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss what changes in mortgage interest rates and inventory could mean for you. Contact the Ternullo Real Estate team today!

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        Where Are Interest Rates in The Suburbs North of Boston Headed in 2019?

        Highway in New England

        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 throughout 2019.

        Mortgage Rates 2018-2019

        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. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!

        Let’s take a look at a historical view of interest rates over the last 45 years.

        Mortgage Rates Last 45 Years

        Bottom Line

        Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

        Watch a video about mortgage rates with John Ternullo
        (less than 1 minute)

        John Ternullo

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          How To Get The Most Money From The Sale Of Your Home

          Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.

          1. Price it a LITTLE LOW

          This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see below).

          Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In doing this, the seller will not be fighting with a buyer over the price but instead will have multiple buyers fighting with each other over the house.

          Realtor.com gave this advice:

          “Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

          2. Use a Real Estate Professional

          This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional. A study by Collateral Analytics reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent. In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

          “FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

          The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

          Bottom Line

          Price your house at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.

          Thinking about selling your home in the north of Boston suburbs? Contact the Ternullo Real Estate Team today and learn how we can help. 

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            Starting To Look For A Home? Know What You Want vs. What You Need

            Home in MassachusettsIn this day and age of being able to shop for anything anywhere, it is very important to know what you’re looking for when you start your home search.

            If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale with rose-colored glasses.

            Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave of your dreams be a future renovation project instead of a make or break now?

            The first step in your home buying process should be pre-approval for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

            The next step is to list all the features of a home that you would like, and to qualify them as follows:

            • ‘Must-Haves’ – if this property does not have these items, then it shouldn’t even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
            • ‘Should-Haves’ – if the property hits all of the 'must-haves' and some of the 'should-haves,' it stays in contention but does not need to have all of these features.
            • ‘Absolute-Wish List’ – if we find a property in our budget that has all of the ‘must-haves,’ most of the ‘should-haves,’ and ANY of these, it’s the winner! Bottom Line Having this list fleshed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before he or she begins to show you houses in your desired area.

            Bottom Line

            Having this list fleshed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before he or she begins to show you houses in your desired area.

            If you have any questions about buying a home in the suburbs north of Boston, contact the Ternullo Real Estate Team today at 781-517-4224.

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              Where are Home Values Headed over the Next Few Years?

              There are many questions about where home prices will be next year as well as where they may be headed over the next several years to come. We have gathered the most reliable sources to help answer these questions:

              The Home Price Expectation Survey – A survey of over 100 market analysts, real estate experts, and economists conducted by Pulsenomics each quarter.

              Zelman & Associates – The firm leverages unparalleled housing market expertise, extensive surveys of industry executives, and rigorous financial analysis to deliver proprietary research and advice to leading global institutional investors and senior-level company executives.

              Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments.

              Freddie Mac – An organization whose mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extending to all communities from coast to coast.

              The National Association of Realtors (NAR) – The largest association of real estate professionals in the world.

              Fannie Mae – A leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets always.

              Here are their projections of prices going forward:

              Projected Home Price % Appreciation 2018-2022

              Bottom Line

              Every source sees home prices continuing to appreciate – just at lower percentages as we move through the next several years.

              If you have any questions about the real estate market in the north Boston suburbs, call the Ternullo Real Estate Team today at 781-517-4224.

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                The Net Worth of a Homeowner is 44x Greater Than A Renter!

                Homeowners Net WorthEvery three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data, covering 2013-2016 was recently released.

                The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

                These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

                Owning a home is a great way to build family wealth

                As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

                That is why, for the fifth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.

                Greater equity in your home gives you options

                If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, let’s get together to discuss the process. Contact us today!

                 

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                  Massachusetts Real Estate: August 2018 Market Overview

                  "With prices continuing to creep up, buyers are taking a stand and refusing to over pay for their largest investment." reports Linda O'Koniewski, CEO of Leading Edge Real Estate. "Sellers who are on the fence or who are waiting until the Fall to list their homes should consider listing now to avoid the influx of inventory expected after Labor Day and to ensure the highest possible sale price. With news that interest rates will stay steady in the next term, buyers are eager to get into the market before they pop."

                   

                  Massachusetts Real Estate July 2018


                  Thinking of selling your home? Contact The Ternullo Real Estate Team today and learn how we can help!

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