How higher interest rates affect your buying power View online.
The days of exceptionally low interest rates are likely behind us. Mortgage interest rates have risen and industry experts agree that they’ll continue to rise.
Higher rates can affect your ability to buy a home. If you are considering buying, we recommend you do so now while rates are still affordable. So here’s how higher interest rates affect your buying power
Higher Rates = Less Buying Power
As rates go up, the amount of home you can afford goes down. For every 1.00% increase in interest rates, your buying power decreases by about 10.00%.
For example, let’s say you can afford $1,194 on your monthly principal and interest payment. With a 30-year fixed loan, a 20.00% down payment, and an interest rate of 4.00% (assumed annual percentage rate [APR] of 4.053%*), you could borrow $250,000 to purchase a home around $312,500.
But if rates go up to 5.00% (APR 5.056%*), the amount of home you can afford decreases to $278,025, causing you to lose $34,475 of buying power. That’s a lot of buying power!
Here is HOW INTEREST RATES AFFECT YOUR BUYING POWER broken down:
(Principal & Interest)
Think of what that buying power could translate to — Better neighborhood? Better school district? A starter home that requires little to no renovation or a larger space for your growing family? An increase in rates could cause you to lose out on those opportunities.
Higher Rates = More Money Spent On Interest
A higher interest rate also means you’re likely to spend more money on interest, causing you to pay more for your home in the long run.
Bottom Line? Don’t delay! Buy a home now while rates are still affordable.
I’m not a loan officer or a financial advisor. You should consult a financial advisor to devise a financial strategy that works best for your situation.
*For example only. Program rates, terms and conditions are subject to change at any time and may vary based on borrower’s credit history.
Contact me today to discuss your home options. 512-653-1213
Selling your house this winter? Tips to tempt buyers to make an offer
1. Light it up
Getting as much light in the space as possible is crucial in creating a light, more open space. This can be achieved by keeping blinds and curtains open, as well as turning on lamps and overhead lights throughout the property.
If the sale is within an acceptable timeframe from Christmas, it would be in the seller’s best interest to decorate in a tasteful and not tacky manner.
This will help showcase the property by bringing to life the otherwise plain nooks and crannies.
2. Heat it up
The heat should be up a few degrees higher than usual to warm viewers up from the cooler outdoors, which will create a cosy and welcoming atmosphere that will help people relax during their viewing.
3. Color to season
A fresh paint job is always a good idea and as always it is good to go neutral as it enables the buyer to picture the space as their own and does not put them off with any garish colour schemes. But use a warmer shade or something autumnal over a crisp white for this time of the year. If an extra is needed, a throw blanket over a sofa will only enhance the decor.
4. No dogs, no scented candles, no smells
As always, remove all negative or potentially offensive smells. Animals can turn some buyers off whatever the weather, but the smell of a wet dog is far more noticeable than usual.
Plus, it’s common for people to have allergies or sensitivities to scents, so no candles or air fresheners before viewings. You might think your festive candle is a dream, but someone with different tastes may be deterred.
5. Baked Yum Yums
The smell of freshly baked bread is said to “help sell your home” although it is widely believed this is somewhat of a wives tale. However, some homemade cake or mince pies are always a welcome winter treat to accompany a hot cup of tea.
6. No clutter
Putting boots, shoes and jackets away in a cupboard is necessary, as well as reorganizing rooms to have the appearance of being larger without being empty.
Any carpets should get a deep clean before the property goes on the market and it goes without saying that a home should be tidy.
7. Showcase out of season features
Summer photos are a must to showcase what the property looks like in different light, especially with a garden. A photo album with all the wonderful features during warmer months is a good idea to entice potential buyers about what to look forward to in warmer weather.
Even in the winter months, the outdoor space is a sought-after feature and needs to look great. Make sure you clear any leaves, mow the lawn and at least keep the flower beds in check despite having no beautiful flowers at this time of year. Make sure any outdoor storage is neat and tidy and turn on any working floodlights to help showcase the outdoor space during long dark nights.
For an accurate assessment of what your home can sell for, please contact Austin REALTOR Sean McCormack at 512-653-1213 or visit austinyouremyhome.com. Sean has practiced real estate since 2002 and consistently maintains a five-star review on YELP.
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I know that the house is super-specialized and that it is going to take some special people to really appreciate all that has been done to make this house a kickin’ home. If you geek out about A/V equipment or top notch kitchens and kitchen equipment then you owe it to yourself to check this place out…
As a real estate agent, obtaining leads is a vital foundation for success. I’ve learned that relying on friends and family can be limiting. Getting leads through your broker or website isn’t reliable. Think about it, chances are that if a potential client contacts your agency to discuss buying or selling a property and you get the lead, that customer has probably already contacted other agencies so you will still be competing for the business. What about your personal website or social media? These are both good tools where it’s good to have a presence and that presence has to be good but, to be honest, my website is great at capturing fake email addresses from people who are uninterested in committing to anyone yet and I have never met anyone in my life who thought that starting an agent search on Facebook was the way to get going.
I’ve also tried Zillow and got next to zero actual leads. I was a Premier Agent with Zillow for around two years and I paid handsomely for some prime and subprime zip code coverage. I would regularly get phone calls from my Zillow representative, telling me that new spots or new zip codes were available. Sometimes I took them up but I started asking why no quality leads were coming to me and the answer was always to spend more money. So in two years, most calls that I got were from either buyers who had a question about a particular property and couldn’t get ahold of their agent or from other agents who thought that I was the listing agent of a property in which I wasn’t. I also got calls from companies that saw my presence on Zillow and wanted me to advertise with them, improve my SEO, etc. That was just about it. I was able to close on one property from one quality Zillow lead. It was my actual one true lead from all that time and I was happy to break even and cut ties with them.
My advice for lead generation is expanding your database. Meet new people and make new friends. Join organizations that you like and let it be known that you are a real estate agent. Your friends and family only get you so far. These are people that you might not see too often or who might only remember you as the friend who did crazy things and they would rather leave something as important as real estate to a professional.
There are a lot of moving parts when you are an independent contractor. We know that. We have to take care of current and previous clients every day. There’s lots of shifting throughout the day. Expanding your database is left to “after work”. Networking is usually left to lunches, coffees and happy hours. There’s nothing wrong with that but there is a huge, untapped segment of people that you’re networking, social media posts and emails that get filtered out do not reach. Cold calling and knocking on doors was the cornerstone of the sales industry in years past. When was the last time you picked up the phone and spent an hour or two making calls? Think about it. This shows a potential client that you are a proactive go getter. This saves their time by having to reach out to multiple agencies to go agent shopping. Cold calling is old school real estate that is proven but it is an exhausting exercise. First and foremost, you must have thick skin or develop it quickly. You must be disciplined and patient. There are going to be a lot of “no’s” and not a lot of “yes’s”. Do you have the time, discipline, patience and fortitude to do this? You can see why not many people cold call anymore. Not because it’s not effective, it’s just time consuming, deflating and defeating. Wouldn’t it be great to work with someone who can handle this difficult task for you? Someone who makes the calls and passes the leads onto you? Not your brokerage. You.
There is an answer. Dave Knight with U.S. Real Estate Lead Masters partners with you to give you high quality leads. U.S. Real Estate Lead Masters works in markets all across America and passes the leads to you by actually calling people in your area and talking to them. Dave Knight has been in and around real estate professionally for over twenty years. This company started because other companies over promised and under delivered on their lead acquisition plans. U.S. Real Estate Lead Masters continues to succeed because agents have full schedules and it is so much easier to outsource this aspect of our business.
U.S. Real Estate Lead Masters is based right here in the actual USA! That’s a plus. You are partnering with a team who has an ease of language and a familiarity with American current events and American geography. They have grown their business marketing to sellers by actually talking to people who are interested in selling. It’s so ingenious in its simplicity. You are not bound to an annual contract so don’t be afraid of a long term commitment. U.S. Real Estate Lead Masters is a “per lead” service with a minimum of 4 leads and these leads convert so they know you’ll want to continue with them! Mark Wiley of Las Vegas Dream Homes agrees. So does Jim Walker of Crye-Leike, Realtors in the Jackson/Flowood, Mississippi area. Jim has been in business for over 35 years. Mark has been in business over 2 years so if you have a couple of years as a real estate agent or over three decades of experience to grow your database or at any point in between, partnering up with a reputable company that supplies high quality leads proves to be a great idea.
Sean McCormack is a top REALTOR in Austin, Texas. Contact Sean at firstname.lastname@example.org if you are interested in Austin real estate or if you would like your real estate business and successes showcased