Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house?You'll want to see the numbers from homes that are most comparable to yours! Clickherefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Market Report July 3rd- July 1th
7/13/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house? You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Market Report July 3rd- July 1th
7/13/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house? You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Market Report June 26th- July 3rd
7/6/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house?You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Market Report June 19-June 26
6/29/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house?You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
The "Pecking Order" of Mortgages
6/26/2021
The "Pecking Order" of Mortgages (Part 1)
Now that we live in a time when multiple offers seem to be unavoidable, buyers are looking for every possible advantage to make their offer stand out from the rest. Everyone knows that "CASH is King", but about 75% of buyers need to finance their home purchase. Those stats mean that about 1 in every 4 offers will be a cash offer. Of course, that's an average across all prices ranges. The higher the price, the fewer cash buyers there are. But, a lot of times it only takes 1 cash buyer to spoil the chances for any buyer with a financing contingency. That's becausefinancing comes along with contingencies that the bank requires.One of these is that the home must appraise for the purchase price or greater. Thankfully, in The Shoals area, we aren't seeing an overwhelming number of low appraisals though. The biggest deterrent is actually the time the appraisal process extends the closing date. Where a cash deal can close in about 3 weeks, a deal that relies on financing is taking 5-6 weeks to close. So when a seller is waiting on the closing in order to pay for their next home, those extra weeks make a big difference. Another deterrent is that some appraisals also include an inspection that could lead to the seller having to make repairs. Government backed loans have minimum property requirements that may result in the bank not approving the loan if those minimum standards aren't met. When you consider the amount of time between contract and closing can double, AND the possibility of making repairs, no appraisal contingency is a BIG perk for sellers.
The appraisal isn't the only part of financing that makes sellers hesitant though. All mortgages are subject to the buyer's credit score and down payment meeting certain standards. Credit scores can change in the 5-6 weeks it takes to close on a home that is being financed. The buyer has to be responsible and make sure that their score is not negatively impacted, as well as make sure they hang on to the down payment funds. An irresponsible buyer can easily disqualify themselves for the loan in several different ways. So, sellers look for evidence that the buyer is responsible and not likely to kill the deal. Sellers don't have access to your credit report or payment history. The only thing they can look at is the type of loan and the amount of the down payment. It's rational to assume that the more money an individual has on hand, the more responsible they are with money. Also, someone who qualifies for a type of loan that doesn't allow low credit scores, its rational to assume that individual does NOT have a low credit score and is likely more responsible with finances than someone who does have a low score.
Equally important to the type of mortgage, is the LENDER! Having a pre-qualification letter from a local lender with agood reputationis the absolute best way to go. An approval for the best mortgage from a lender with a reputation for not getting the deal done is worthless! So, for those buyers who need to finance, the type of mortgage you use will determine how long and how strict the appraisal process will be as well as give the sellers a peace of mind about the probability of the buyer being responsible. The lender will give peace of mind about the loan going through.
The "Pecking Order" of Mortgages
6/26/2021
The "Pecking Order" of Mortgages (Part 2)
1. CONVENTIONAL w/20% or more down payment -This is the *gold standard* of loans because conventional loans, while they do require an appraisal, the appraisal does not have to meet the strict property standards of government backed loans. Also, conventional loans typically process faster than government backed loans, so the time frame could be as little as 4 weeks instead of 5-6. The 20% or higher down payment shows the seller that the buyer is financially responsible enough to have this amount of money saved. Finally, conventional loans do not cater to individuals with lower credit scores, so a seller can assume that the credit history of the buyer is most likely pretty good.
2. CONVENTIONAL w/ 10% down payment - This has all the same advantages as #1 but the security a seller gets from a significant down payment is not quite as high. But still not a bad place to be.
3. CONVENTIONAL w/ 5% or less down payment - These loans obviously have the same pros as #s 1 and 2. But the amount of seller security is drastically decreased by the low down payment. However, each loan mentioned from here will have the same con. So maintaining the easier appraisal and the potential of a faster process time than any of the lower ranked loans still gives this loan a competitive edge.
4. FHA -The biggest advantage and FHA loan has in the eyes of a seller is that it's common. Sellers are usually familiar with the term and therefore usually not intimidated by it. However, the loan itself actually allows some of the lowest credit scores and it only requires a 3.5% down payment. This is great for a buyer, but sellers can be hesitant for these same reasons. The biggest negative impact from a seller's perspective is actually the appraisal that comes with this one. FHA appraisals do include an inspection to ensure that the home meet the HUD Minimum Property Requirements that is required for all government backed loans.
5. USDA -This is another government backed loan that comes along with an inspection as part of the appraisal process, and this one requires no down payment at all. Unlike the FHA loan, it is not as well known by sellers. So you loose the advantage of familiarity.
6. VA -In my opinion, this is the best loan out there for buyers. I truly hate that it ranks at the bottom of the list for seller confidence. The VA loan almost always has the best interest rates, and it requires no down payment. Even better, the VA entitlement is harder to compromise with a lower credit score. But it's gotten a bad reputation among sellers who have heard rumors that the inspection portion of the appraisal is much more strict than even an FHA or USDA loan. This simply isn't true. The inspection isn't very different. Also, VA loans are only available to active military members or veterans. When considering responsibility, military members have been through specialized training that requires impeccable discipline. The down payment not being required is more of a gift for their service and does not reflect their financial stability. Unfortunately, sellers do not usually look at a VA loan in a positive light.
June 12- June 19 Market Report
6/22/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house? You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Market Report June 5- June 12
6/15/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house?You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Market Report May 29- June 5th
6/8/2021
Here's your weekly RealEstateMarketReport! Take a look at your area to see the number of homes sold, average sales price, average days on the market, and how many new houses hit the market.
Thinking of selling your house? You'll want to see the numbers from homes that are most comparable to yours! Click herefor your detailed market analysis.
Information from the MLS of the Shoals Area Association of Realtors
Information from the MLS of the Shoals Area Association of Realtors