Current financial markets turmoil creates big real estate opportunity in SW Florida.  Just last year the Fed was talking about rising rates continuing though 2019.  They began the process in 2018 but abruptly halted once the world economy didn’t cooperate.  If we raise rates too fast, it not only slows economic activity here, but it raises the dollar to a higher level which isn’t what you want when you’re correcting a trade imbalance.

Financial Markets Turmoil Creates Big Real Estate Opportunity

Europe has negative interest rates.  Imagine putting $1,000 in the bank and getting $950 back when you withdraw your money.  That seems crazy to us, but Europe is in trouble.  Our fed wasn’t looking at the whole picture when they made decisions last year, but they are now.

They realize the trade tariffs with China will slowdown economic activity worldwide, so this week Fed chairman Jerome Powell said the Fed may have to step in and adjust as economic conditions warrant.  This is code word for interest rate reductions, which sent the stock markets higher on Tuesday when he made those comments.

All this has sent interest rates down about 1% since January.  This has raised buyer’s purchasing power by 11% on this fact alone, which is putting home buyers back into the market.  Nobody knows how long these trade negotiations will last and where they’ll end up.  Republicans and Democrats alike agree they’re necessary as China has been taking advantage of our companies for too long.  We must endure short term tariffs for long term gain.  Let us show you how low your payments could be with the current financial markets turmoil.

Because of this, it’s created a window of opportunity for home buyers.  With rates around 4%, buyers must seize this opportunity.  Four factors influence the affordability of a home, and that’s price, interest rates, taxes, and fees.  Interest rates can be one of the largest factors in the cost of a home over the time a homeowner owns their home.

Buyers today are also looking at the total cost of ownership.  They ask how much the condo or HOA fees are, if there are mandatory club fees, CDD’s, and if the taxes are in the city or county.

Check Out Our App

A great agent can answer all these questions.  Websites typically show the asking price and photos, but they don’t always tell the whole story.  We have a mobile app that shows much of this information, and an automatic major update coming out within 60 days will provide you with information that you can’t get anywhere else.  It will simply blow you away.  It’s in final testing right now.

One way to get the app is go to www.SWfloridaopenhouse.com  or simply email me at Brett@topagent.com and I can email or text you the link.  Yes, you can search all the open houses on the app too.  The real power will be in the release 60 days from now.  Meanwhile, the app will show you what HOA or condo fees are in each property and we can verify if there are any other fees you might want to know about.

Of course, you can always call us at 239-489-4042.  We’ll be happy to discuss your options and how you can take advantage of these low rates for your benefit.  If you’re thinking of selling and would like to know how much we could sell your home for, and how much you’d net in your pocket at closing, ask for Sande or Brett at Ext 4, or visit www.SWFLhomevalues.com

See Last Week’s Article: Lee County Florida Home Prices Have Been Flat For 2 Years

Good luck and let us know how we can help you make your next move!

Lee County Florida home prices have been flat for 2 years and nobody seems to notice.  Take a look at the graph below and we’ll explain why this may be good news going forward.

Lee County Florida Home Prices Flat For 2 Years

Some parts of the country are experiencing multiple offers on each home and others have experienced a shift as homes are taking longer to sell.  In the end, it comes down to affordability on each locale.  As home prices rise, together with interest rates, it affects affordability.

We’ve caught a break with interest rates.  With rates down around 4% it means home buyers can pay more for a home and less to the bank.  It props them up into a higher purchasing bracket on affordability alone.

As homes go up in value, they can be susceptible to fall if the economy or interest rates rise.  The silver lining to all this is because prices didn’t increase here over the last two plus years, they may not have to fall either if or when the economy changes.  We’ve got a strong economy now, but with trade wars and potential military conflicts around the world, you never know what can tilt the scales.

If the economy continues to roar along, the Lee County Florida housing market could eventually have some upside.  Inventory has been growing, so we’re not seeing upward price pressure now. Obviously, the price range you’re looking in can have different inventory levels than another price range.

It pays to consult a Realtor before purchasing.  A Realtor can not only guide you through the process, but they can also advise you on things that can affect your resale ability later when you need to sell.

Because we work with a lot of buyers each year, our agents are on the front lines with buyer’s concerns.  Buyers do not want to make a mistake.  Working with an agent that understands what other buyers are concerned about may help you in your decision.  We know what future objections will be for your home and if you should pay less because of that.

The last thing you want to do is overpay for a home now that you’ll have to take less for down the road when you decide to sell.  Talk to one of our experienced buyer agents on the Ellis Team at Keller Williams Realty 239-489-4042 and you’ll see what we’re talking about.  Or, you can search the MLS like a pro for Free at www.LeeCountyOnline.com

If you’re selling, you need a Realtor that listens to what your goals are and has solutions to help you attain them.  Anybody can give your house away.  A great Realtor prices the home at market value and then markets it.  By the way, marketing is not simply putting a sign out in the yard and placing it on hundreds of various websites.  Anybody can do that.  Marketing is so much more, and very few Realtors do it. Lee County Florida home sales were down 6.8% in April, so marketing matters.

If you’re thinking of selling, or maybe you tried to sell and it didn’t work out, give Sande or Brett Ellis a call at 239-489-4042 Ext 4. We’ll show you how to price it at market and get Top Dollar because it was marketed correctly.  There is a difference.  All Realtors do not work the same!

Find out what your home is worth for Free at www.SWFLhomevalues.com then call us to talk about strategies.  We love it when a plan comes together!  We’ll help you with your plan.

Please Vote For us!  Vote the Ellis Team as Best Real Estate Team and Best Real Estate Agency in Fort Myers.

Good luck and Happy House Hunting!

 

The latest news release from Florida Realtors show Lee County Florida home sales down 6.8% in April but still up from 2016 and 2017 levels.  We are seeing increasing inventory and time on the market, and home prices are flat.  Total dollar volume of sales was down 12.3%, so we’re definitely experiencing a shifting market.

Lee County Florida April Home Sales Down 6.8%
Lee County Florida April 2019 Home Sales Down 6.8%

How you look at the market might just depend on your expectations.  If you look at it over the last 4 years, this is the 2nd highest rated market.  You can also look at it as down versus last year, and the fundamentals propelling the market are down as well.

So where do we go from here?  A lot of that will depend on the economy, interest rates, and consumer sentiment.  Right now, consumer confidence is fairly strong.  Interest rates have declined, and the economy is doing well.  The wild cards right now are the trade wars and their effects on the overall economy moving forward.

Trade between Mexico and Canada has a chance at improving significantly depending on if congress passes the latest revision to NAFTA.  Trade with China has the potential to increase drastically or go South in a hurry.  Long term it’s in our best interests to hold tight, but there is pressure on farmers and retail to wrap it up sooner rather than later.  There could be long-term winners and short-term losers in that deal.

We don’t control what happens in the future.  What we know is many want to buy here, and many want to sell.  As in any market, the trick is pricing homes at today’s market and then marketing the home so as many prospects as possible see it.

One of the best websites to search for properties is www.LeeCountyOnline.com  It’s great because it’s updated in real-time and includes all the listings.  Additionally, there are neighborhood market reports, so buyers and sellers can get an idea of what’s going on at the neighborhood level too.

Memorial Day weekend is a great weekend to enjoy the outdoors.  It’s going to be hot.  Perhaps you’re looking to purchase a home with a big back yard so you can entertain friends and family, play games, and enjoy some BBQ on the grill.  Perhaps you’re looking for a pool home in this hot weather.  Or you’re looking for a waterfront home or condo so you can go out on the boat right from your back yard.  We’ve got it all on our website.

And if you’re looking to sell, we can give you a free online estimate of your home’s value.  Simply go to www.SWFLhomevaues.com and it will show you instantly.  Or call Brett or Sande Ellis 239-489-4042 Ext 4  Many buyers need to sell their home first, and that’s where we can help.  We can time it, so we sell your home and find you a property to purchase as well.  All this takes coordination with the lender, title company, and the next home you’re purchasing.  We handle all the details for you so you can enjoy the process.

So, this weekend go out and enjoy the outdoors.  When you’ve had enough sun and heat, check out our websites and search for the next home that will meet your needs better.  We’ve even got boat clubs we can recommend, which might save you some money.  Some buyers elect to go this route and not buy a waterfront home and still enjoy the fabulous boating we have here in SW Florida.  Others want that boat right at their house.  Either way, we can help.

Stay safe, enjoy the weekend, and Happy House Hunting!

Ellis Team Weekend Open Houses

Open House Saturday 1-4 PM

1742 Ardmore Rd

$273,240

Edison Park Home

Open House Sunday 12-3 PM

3681 Gloxinia Dr

$225,000

Sabal Springs Home on Private Lot

Open House Sunday 1-4 PM

914 El Dorado Pkwy E

$925,000

Cape Coral Waterfront Open House

Open House Sunday 1-4 PM

14528 Aeries Way

$450,000

Eagle Ridge Home on Private Lot

 

Remember all that talk about rising rates in 2019 and how it would impact buyers and sellers?  Rising rates absolutely impacted buyers in 2018 in a negative way, but we’ve gotten a reprieve of sorts in 2019 for various reasons.  The US-China trade war benefits home buyers and sellers, and we’ll explain how.

US-China Trade War Benefits Home Buyers and Sellers

Rates slipped back in the 1st quarter of 2019 because economic conditions didn’t warrant rising rates, and because inflation had been tame.  Back in April we wrote about rate drops as everyone speculated how long they might last. Rates are affected by economic news and wildcards, and a wildcard just happened.

As soon as China announced retaliatory tariffs on the US last Monday there was a flight to quality, which means investors put money into the safety of 10-year US treasury notes.  This drove the yield curve down quickly.  As we know, most 30-year mortgages are pegged to the US 10-year Treasury note so this trade war became an instant boom to buyers and sellers.

How long will this window last?  Your guess is as good as anybody’s.  If the trade war becomes protracted, it could lead to inflation as goods and services become more expensive.  Or perhaps companies will find suppliers in other countries and the effects will be minimal.  Because this could cause a global slowdown, it could tame inflation worldwide.

Some have suggested the US could devalue the dollar which would help trade imbalances and really put pressure on China.  To do this we could lower interest rates.  There are a lot of strategies in play right now, and nobody can predict what will happen with certainty.

Our best advice would be taking advantage of the low rates while they last.  They could be here for a little while or they could vanish like a blip on a radar screen.  With rates around 4%, buyers’ purchasing power is about 11% more than it was last year.  This opens more buyers for each home, and let’s buyers stretch higher if they need to.

Lower rates should also help the housing market.  Last year there was downward pressure on prices because of rising rates.  With rates lower again that pressure has abated.  Job growth has been stellar, so if rates stay this low, we could have a pretty good run with increasing home sales.

We’re not sure buyers understand the opportunity they have right now.  Sellers have the same opportunity, because when they sell, they usually buy another property.  Those sellers that sell and buy now will save big money on their next mortgage, if they act soon enough.

We’re not trying to be the expert and tell you how long this will last.  We are telling you there is an opportunity for those in a position to take advantage.  Borrowing costs can make a huge difference in the long-term success of your financial well-being.

There is more inventory for buyers now.  Many sellers couldn’t sell before because there was no place for them to go.  That may not be the case now.  Go to www.LeeCountyOnline.com and look around.  You’ll see more homes on the market than last year, and there are some excellent buys if you know where to look.

This website allows you to see all the homes on MLS in real-time.  No more waiting for days or weeks for new listings to appear on those other sites.  If a seller reduces their price, you’ll be the first to know.  Our website produces listings in real-time so you have a definite advantage.  The best listings go before they even hit those other websites, so you can beat out other buyers to hot new listings.

Our agents are out showing daily, so we know the best homes.  Give our agents a call at 239-489-4042 and we’ll be glad to help you.  If you have a home to sell, ask for Sande or Brett Ellis.

Let’s find you your next home before rates go up again.  We’ve got a window.  All we know is it’s open.  We don’t know for how long.

Good luck and Happy House Hunting!

Which is more valuable, your home or your data?  iBuyer Programs Steal Your Home and Your Data so let’s investigate what an iBuyer program is and what its goals are.

iBuyer Programs Steal Your Home and Your Data

iBuyer programs offer an easy button to sell a home, with a catch.  These are investors looking to scoop up homes at a large discount.  Essentially you sell your home so far below market value it becomes lucrative for an investor to buy and flip your home.  They make all the profit.  In other words, you’re giving your home equity over to them.

iBuyer programs are nothing new.  Investors have been posting those pesky road signs all over the place offering to pay cash for your home or buy ugly houses for decades.  Today’s iBuyer program is different, because they have another motive.  They want your data.

iBuyer programs realize once people see their offer then subtract fees, closing costs, and repairs after their inspections, over 90% of sellers become disgusted and turn them down.  By then, it’s too late.  They’ve captured all your data.  They sell that data and make millions.  Their goal is to make billions.

Here’s how it works.  First, you get an offer.  It’ll be low, perhaps 10% or more below market value.  It gets even better.  They tack on fees, typically in the 5-7.5% range.  Then they add closing costs in the 2-3% range.  Then they do inspections, because up until this point they haven’t even seen your home.  It’s all been done using data points and algorithms.  The report comes back, and they decide you need $15,000 in repairs plus your kitchen needs updating, so tack on another $20,000.  At this point, the seller is furious.

The seller says no, and the deal is off.  The iBuyer program knows how much you owe on the home, how old your roof, appliances and air conditioner are, what improvements are needed to the home, where you’ll be moving once you sell, and much more.  How? Because you answered their questions to continue through the process.  You didn’t like the ending, but you were curious through the process to see what number they would give you.  They had you at hello.

So, you say, “I’ll sell my home with a broker and keep the profit yourself.”  That’s ok, because they refer you to “top brokers” in the area.  You guessed it; they collect a referral fee from agents they recommend.  They may not be the best agents, but surely, they are agents paying them a fee.

Have you seen ads on TV promising to find the best agents in your neighborhood?  HomeLight is one that comes to mind, and they are also an iBuyer.  Contractors, remodelers, home improvement stores would all be interested in the age of your appliances, or what your kitchen and baths look like.  Same with flooring.  Now they have pictures, because you guessed it, the inspector took pictures during the inspection period.

Outside mortgage companies have your info too because they bought your data.  They know your phone number, email address, how much you owe, where you’re going, and more.  The simple offer you were curious to get has become a treasure trove of data.

If you sell your home to the iBuyer, they win big.  If you refuse to sell, they still win big.  The only loser is the poor seller who was just curious to use the easy button and sell their home if the price was right.

Keller Williams is coming out with an iBuyer program to prevent this.  We have no intention of selling the data.  We’re not going to refer it out to other agents.  If the seller doesn’t like the cash offer, they’ll use one of our agents to get full market value.  We have our own mortgage company that offers a zero-lending fee loan.  So, we’re not selling to other mortgage companies.  We’re not selling to contractors or home improvement stores.  We simply want to provide the iBuyer option so people don’t go to other places that will sell your data.

Our program is rolling out to 8 markets this year and more after that.  If you’re thinking of selling your home and want full market value, Always Call the Ellis Team at Keller Williams Realty Fort Myers & the Islands 239-489-4042 Ext 4 or visit www.SWFLhomevalues.com

Ellis Team Weekend Open Houses

Open Saturday 12-3 PM

Eagle Ridge Home

The number one question real estate agents get asked is “How is the market?”  Often, people wish to know what it means, and how we’re doing against other parts of the state, especially nearby counties.  Today we’ll look at Fort Myers-Cape Coral home sales versus Naples and Florida real estate sales to get an idea.

Fort Myers-Cape Coral Home Sales Versus Naples and Florida Real Estate Sales

In March, Florida home sales were unchanged and median prices were up 2% over last year.  Year to date numbers tell a similar story.  In Fort Myers-Cape Coral, home sales were down 4.4% in March while median prices were down 3.7%.  These are continued signs of a shift occurring in our market.  Year to date numbers show home sales down 8.5% while median prices rising 1.4%, but we think median prices will reflect lower numbers going forward.

Naples homes sales were down .4% in March while median home prices were down 7.9%.  Year to date numbers show closed sales up 1.1% and median prices down 7.7%

Because these numbers reflect year over year numbers, many customers, and agents alike don’t understand what’s been going on in the market.  When a market begins to shift, it takes up to a year for people to see it in the numbers, even though the trend has shifted.

Market Shift

For instance, the Fort Myers-Cape Coral market began shifting last Fall, but because we compare year over year numbers people didn’t see the negative numbers until now.  Agents felt it as sales slowed and listings began to expire.  Seasoned agents knew and adjusted.  The sellers that listened to their seasoned agents got out and the ones that didn’t listen, or weren’t working with a seasoned agent who’d been through a shift before could still be on the market or expired.

Perhaps we’ll do another story about invisible inventory.  Invisible inventory refers to the old saying that if your home is priced over the market then it’s not really on the market.  It’s overpriced and won’t sell.  It’s invisible to buyers because it’s attracting the wrong buyers.

So, what are sellers to do in a shifting market?  They could wait it out.  Some sellers decide to wait a few years until the market recovers to a price they like.  The thing about that is they miss out on low interest rates today if they’re financing their next home.  And, while they wait for their home to go up in value, their next home is probably going up too, so they don’t gain anything, only lose.

Sellers could try to sell themselves and save the commission.  This rarely works out as only 4% of lookers can actually buy now.  We have a free report on how to sell your home without an agent should you like to try.  It’s packed with helpful tips, so just email me and let me know Brett@topagent.com

Sellers could try a discount broker.  Problem is, you can’t save your way out of a shift.  I can’t tell you how many homes we’ve listed and sold after a seller has tried the discount route.  You might as well try it yourself than pay an agent for little to no service.

Marketing Matters

Marketing matters now more than ever.  Like we’ve said, just listing a home on 100 websites isn’t marketing.  We have a database of thousands of buyers because we market so much.  Call us and we can see if we have a buyer right now looking in your neighborhood.  Chances are we do, and we can do an instant search to see who they are.  If not, our marketing creates buyers specifically for our listings.  Let us show you how we use cutting edge technology and marketing muscle to market your home.

Call Brett or Sande Ellis 239-489-4042 Ext 4 You’ll be glad you did.  Or go online www.SWFLhomevalues.com to get an instant estimate of your home’s value.

Good luck and Happy Selling!

You might wonder how a successful real estate team who just had breakout sales this 2019 season could call this year’s season a bust.  The market wasn’t terrible, it just didn’t live up to many sellers’ expectations.  This is the exact reason why the market had so many expired listings and fewer closings this season.

2019 SW Florida Real Estate Market Officially a Bust

In fact, of the 12 market measures we track each month, all 12 went negative in March.  This is the first time in as long as we can remember that every single measure went negative.  Earlier this year we pondered whether season was going to mask the shifting market we were experiencing going into season, and the answer is in.

Sellers generally want to list their home with a Realtor that is confident and positive.  There is a difference between being positive and knowing the market.  The Ellis Team is positive in any market.  We know marketing sells homes, and when the market shifts that becomes even more important.  Sellers can’t discount the commission away enough to make up for what’s going on in the market.

Sellers often think if the market is slow, I’ll just list with a discount broker and that’ll enable me to sell.  The reality is they’re giving up marketing, which is the precise thing you need when the market shifts. Saving a few commission dollars can cost you thousands on your sale price due to lack of marketing and limited buyers.  Some Realtors hold a few open houses, place the home in MLS and a few hundred websites and call that marketing.  That’s not marketing.  Every home is on a few hundred websites. That part is automated by the MLS.

If you go back and read our Blog http://blog.topagent.com you’ll see we’ve been discussing the market for months and what’s really going on.  There is a fine line between hiring a Realtor that is positive and one that is real.

For instance, our team has been though several market shifts.  The average Realtor hasn’t.  We know what it takes to sell a home when the market shifts.  The first thing you must do is identify the 12 market measures, then identify where we are today.  You can’t counsel a seller on how to market their home and where to price it unless you understand where the market is and all the factors influencing it.

This is the silly season for Realtors.  Many Realtors didn’t accomplish their goals this season.  Total dollar volume of sales was down 13.6% in March alone.  This means Realtors are hurting too, and they’re going to be making moves now that season is over.

Some agents will move to less costly brokerages in hopes of a higher commission split.  They’ll receive fewer benefits for themselves and their clients. It will be a last-ditch effort to cost-cut and save their career.  If you’re interviewing agents to list your home, ask them if they plan on making a move.  If they do, can you get out of your listing contract?

Other agents will seek to join a team, or move to a company where the technology is better, or pays for more things like marketing, photography, brochures, assistants, etc.  Sellers need to know who they’re listing with and exactly what services will be provided.  Remember, the broker owns your listing, not the agent you sign with.  Be sure to get clarity and in writing whatever you agree to.

Study the market measures.  Ask your agent to show you how the market is performing.  You’ll want monthly updates on new pending sales, time on market, median and average prices, inventory supply and market absorption to name a few.  If the agent you’re interviewing can’t provide this, interview another agent.  This market is changing, and you want a Realtor that will tell you what you need to hear, not what you want to hear.  This market has enough sellers that listened to what they wanted to hear. They still own their home, which is not what they really wanted.  Ask for our Free Report on which agents had the most expired listings in the past year.

You can call Brett or Sande Ellis 239-489-4042 Ext 4 to talk about selling your home or go to SWFLhomevalues.com to get a free online report of your home’s value.

Good luck, and Happy Selling!

SW Florida real estate inventory drops in April.  Back in February we calculated 6,677 listings from MLS and today we have 6,283.  Either more homes are selling to cause this drop, or homes are expiring and have not re-entered the market yet.

SW Florida Real Estate Inventory Drops in April

So, let’s dig deeper, find out what is causing this, and look at the opportunities.  We run a 365-day moving average tracking the SW Florida home sales.  Back in February we tracked 13,083 sales compared to 12,986 today.  What this tells us the inventory levels are not coming down from increased sales.  In fact, sales have lightened up a bit.  The other thing it could be is increased pending sales taking inventory off the market, but they haven’t closed yet.

Official pending numbers for March will be released next week, so we’ll study those.  We watch the expired listings hitting the market each day and we noticed a large number at the end of March.  With listing numbers down almost 400 we can assume some sellers gave up when they didn’t get their price.

We can also assume that many of those same sellers would like to sell.  Perhaps they have another property they’d like to move to.  Perhaps they’re tired of the HOA or condo fees where they live now.  Maybe it’s just time.  In any event, there may be a way to get your property sold.

Sometimes sellers just hire the wrong Realtor.  They assume all Realtors market the same, therefore they will all fetch the same price for their home.  Reality tells us this isn’t true.  Some Realtors practice the 3 P’s of marketing.  1.  Put a sign in the yard. 2.  Place it on MLS. 3. Pray that another Realtor sells it.

Placing a home on 100 different Internet sites is not marketing.  Anybody can do that.  It’s easy, and I’ll show you how.  The real marketing is finding buyers for your home.  This entails calling a database of buyers looking in your neighborhood.  That’s right!  We have a database of buyers looking for homes in your neighborhood.  If you doubt me, I’ll show you the database.  I’ll show you the buyers.

Secondly, we want to create new buyers not already in the database.  We target buyers online who are looking for a home or condo just like yours.  You can’t wait for the market to come to you.  You must go and get the market.  This is why so many homes expire and never sell.  The Realtor didn’t go and get the buyer.

Sellers do not want to reduce their price until they’re satisfied that all the marketing is being done.  They only want to reduce the price when they’re convinced it is the price, not the marketing.  When you hire marketing gurus when you list the home, you’ll know.  Hiring the wrong Realtor can cost you valuable time on the market with no sale.

Lots of people call us the 2nd or 3rd time around.  Why not call us 1st?  If you’re thinking of selling, or tried to sell and failed, give us a call.  It might not be the price.  You might have simply selected the wrong Realtor.

Open House App 

We have an app that will show you all the open houses in your area, no matter where you live.  It even works up North.  Simply go to www.SWfloridaopenhouse.com and download the app. Sellers like it so they can explore the competition.  Buyers love it so they can see today which homes will be open house next weekend.

Ellis Team Open House App
Ellis Team Open House App

Free Home Value

You can also check out your home’s value online for Free.  Go to www.SWFLhomevalues.com This site does a pretty good job of estimating your home’s value.  It’s scary how accurate it is many times.  Of course, if you’re thinking of selling, always call Sande or Brett Ellis 239-489-4042 Ext 4 and we’ll be glad to visit your home and verify its value.  We’ll show you how we go out and find the buyer.  We don’t wait for the buyer to find you!

Happy Easter, and Happy House Hunting!

Ellis Team Weekend Open Houses


Boosting your credit score can reduce borrowing costs, and we’ve got some tips to help you do that.  We’ve found three new products to help you achieve a higher credit score.  One is approved for home mortgages, while the other two will help with all other types of loans.  Fannie Mae and Freddie Mac may accept the other two in the future.

Mortgage Credit Score Tool

Let’s start with the tool that helps with mortgages.  CreditXpert Wayfinder works like this.  With your lender, you determine how much of an improvement you need to qualify for a loan, or to reduce your rate.  The higher score you have the lower rate you qualify for.  A lower rate means you either save money on your payment or qualify for more home.  Why pay more for less of a loan?

Boosting Your Credit Score Can Reduce Borrowing Costs

The software comes up with options and a plan to achieve a higher score within 1-2 months.  The average credit score goes up about 27 points on this program, which can save you lots of interest on the money you borrow.

In the promotional video for this program, it shows you which credit cards to cancel or pay down and by exactly how much to improve your score. Sometimes cancelling a credit card can lower your score.  It’s always been a complicated business figuring out exactly what credit bureaus are looking for.  They look at available credit, credit history, credit utilization, etc.  The consumer had no good way of figuring what methods would help their score.

This plan comes with a fee of about $15-$18 at each of the credit bureaus plus a rapid re-score fee by an outside vendor when it’s completed, but the fees more than pay for themselves in lower borrowing costs.  Check with your lender to see if they offer this service, and if you need it.  Borrowers are sometimes surprised to find out they can borrow with their existing credit.

We Work With Several Lenders

We just got a buyer a home with a 550-credit score on a FHA loan.  Actually, we didn’t do anything.  The lender did.  We have great lenders with a proven track record of closing loans.  There is nothing more frustrating than picking the wrong lender and finding out your deal is dead after spending money for appraisal, inspection, etc.  If you’re working with an Ellis Team at Keller Williams Realty agent, we can recommend lenders with proven track records.  We know who they are.

Another option is Experian’s new Boost product.  It imports your utility and phone bills history into your score.  If you’re paying those bills on-time, this can raise your score in a majority of cases.

FICO Ultra Score is a new product rolling out soon.  It imports your banking, savings, checking, and money market accounts into your score.  If you pay your bills and have some extra money in the bank somewhere, this may help your score.

So far mortgage loans are not utilizing Experian’s Boost program or FICO’s Ultra Score program yet, but other consumer credit like auto and boat loans, credit cards, and revolving credit might.  Who knows, perhaps in a few months mortgage loans will benefit from these programs too.

It pays to know your options, and work with people who know their stuff.  The first step in the home buying process is picking which resources can help you.  We offer 3 great resources, so you’ll never have to wonder.

Always Call the Ellis Team

Always call the Ellis Team at Keller Williams Realty. 239-489-4042.  We can help you find the right lender and find the right homes.  Our website www.LeeCountyOnline.com is another great resource.  It has all the homes, has neighborhood data, and home value data.  It’s updated every few minutes unlike some of the other online search places.  Getting bad and outdated search data is as frustrating as picking the wrong Realtor or wrong lender.

Give our team a call.  We can help, and you’ll notice the difference.  Good luck and Happy House Hunting!

SW Florida Real Estate Market Update March 2019

Open House App

See where the open houses will be this weekend anywhere in the country.  Download our Open House app at www.SWfloridaopenhouse.com

Ellis Team Open House App
Open House App

 

An unexpected mortgage rate drop benefits buyers, but for how long? We had a temporary inverted yield curve, which means long-term rates were less than short term rates.  30-year mortgages are most often pegged to the 10 year note, and when the yield curve inverts, it throws the market into bewilderment.

Unexpected Mortgage Rate Drop Benefits Buyers

There were fears of slowdown and recession, which led many to believe perhaps the Fed was overzealous in raising rates this past year.  Then earlier this week, global economic news started coming in stronger than expected, which set recession fears at ease.

Earnings are due out soon and the thing to watch will be guidance in these reports.  Couple that with listening to what the Fed indicates, and the interest rate uncertainty may start to clear up.  Therefore, we don’t know how long this drop in rates will last.

What we do know is buyers should not squander this opportunity.  Last week we saw the largest and fastest rate drop in history in a week.  Rates are down almost a full percent since last Fall, and about ½ percent since January.  A buyer today qualifies for about 11% more home than they did 6 months ago.  The best part is, not only do they qualify for 11% more, it won’t cost them to borrow 11% more either.

Buyers should lock-in rates right away.  If your lender allows you to lock and shop, that might be a good idea.  If they don’t, get your home under contract and make loan app right away.  Waiting to purchase could cost you much more in interest than you could ever save negotiating with a seller.  Get your negotiations locked up today so you begin the mortgage process.

Sellers, you’ve got a tight window too.  More buyers just entered the pool that can qualify for your home.  If rates go back up, that pool will dwindle to what it was last week.  Don’t bet on the fact all buyers will read this story.  By the time home buyers figure this out, it might be all over.  We just don’t know where rates are headed, and neither does the market.  We are in uncertain times, but rest assured, the market will figure this out.

The Ellis Team still has 20 pending sales, even after the big 1st quarter we had.  With the interest rate drop, we’re looking to add to this number.  We’re down to just 11 homes and condos on the market right now.  Everything else is pending or sold.  We need listings.  Our marketing is working.

Sellers are astounded when their listing expires to find out there is a difference in marketing.  The perception is all Realtors work the same.  Just list it in MLS and on all the websites, and it will sell.  That’s not marketing at all.  Any Realtor can do that.  That’s the bare minimum.  That isn’t what’s going to sell a home.

Unfortunately, too many Realtors have sold the idea that having sellers’ homes listed on all these platforms will sell a home.  The truth is they do this because it’s Free.  That’s right, it typically doesn’t cost the Realtor anything to list a home on all these portals.  What isn’t Free is the lead generation and finding buyers for the properties.  There is a reason the Ellis Team sells so many homes.  It’s because we don’t take the Free route.  We spend a lot to create these buyers for our listings, and we have people on our team to work them.

If you’re thinking of selling, call Brett or Sande Ellis 239-489-4042 Ext 4, or visit www.SWFLhomevalues.com  If you’re looking to buy now at today’s low rates, check out www.LeeCountyOnline.com or call our office and we’ll get you locked in to a good deal and low rates today.  There is still a good selection of homes on the market right now, even if they’re not our listings.  We’ll be happy to find you the best values.