HOW RISING FED INTEREST RATES IMPACT HOME BUYERS AND HOMEOWNERS

After the Federal Reserve raises its rate, interest rates on mortgages and home equity loans could rise. How will this affect home buyers and homeowners?

What The Federal Reserve Did, And Why

The Federal Reserve raised its bedrock interest rate. Mortgage interest rates are likely to rise, as well as home equity line of credit rates.

The Fed increased its target rate for federal funds by 0.25% or one quarter of a percentage point. The federal funds rate is not the only interest rate. Large banks often charge a prime rate on corporate loans. It will also rise by 0.25%.

As an inflation-fighting measure, the Fed is increasing its interest rates. The Fed will likely raise the federal funds rates multiple times this year, as inflation is significantly higher than the central bank’s target.

How the Fed Rate Hike Affects Home buyers

Because mortgage rates tend to move in the same way as the federal funds rate, they are likely to increase. Mortgage rates could trend up throughout the year due to anticipated increases.

You’re good if you have signed a contract to purchase a home and locked in an interest rate. Your rate cannot be increased by the lender.

However, if you are shopping for a home right now or have plans to do so in the future, your mortgage interest rate might be higher once you receive a purchase offer. A contract is required to purchase a home. You cannot lock the interest rate.

You may find yourself shopping at a lower price if mortgage rates increase significantly well before you purchase your dream home. Higher interest fees can reduce your purchasing power.

You shouldn’t rush to purchase a home just because the mortgage rates are increasing. You should seek the help of a professional real estate agent to help you out. The rates shouldn’t be the sole driving factor in deciding whether someone should purchase a home. Rates are a factor, but financial and personal factors are more important.

How Does The Fed Rate Rise Affect Mortgage Refinancers

As interest rates rise, fewer homeowners will be able to refinance to a lower rate to reduce their monthly payments.

Not everyone refinances to cut back the payments they make per month. Many go for cash-out refinances. They refinance much more than what they owe and then take the difference in cash. This cash can be used to pay for renovations, debt consolidation or tuition.

Interest rates that are higher can reduce the amount of cash-out refinancers could afford since higher interest rates lead to higher monthly payments.

The home equity line is another option to cash out refinances. However, HELOC rates are expected to increase. Fixed-rate home equity loans will likely experience the same fate.

How the Fed Rate Hike Affects Home Sellers

If you’re a home seller, you may be taking offers seriously if they come from home buyers with a preapproved mortgage. But in order to be more comfortable and confident in the ability of a buyer to afford the house you’re selling, you need to make sure that the preapproval is based on the existing interest rates.

Why? If you accept an offer from someone who is not qualified for a mortgage loan, you will lose valuable time.

You may sell your home to someone who belongs to a higher income bracket than the one you marketed your house to initially.

Call Full Potential Real Estate, LLC if you’re looking to buy your dream home in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

TIPS FOR FINDING THE BEST LISTING AGENT FOR YOUR HOME

Finding a listing agent could be a difficult task especially if you have not done it before. However, it doesn’t have to be that way if you know what you are doing. Listed below are some key points to remember when hiring the right person who can help you in selling your home.

Look For The Best Listing Agent

When looking for the best listing agent, the first thing you have to do is to do some research. You need to know which firms specialize in the area you are in and among them, determine which agents have the time and skills to focus on selling homes in your area. Those agents are the most knowledgeable since your home falls within their inventory area.

The next thing you have to do is check their company website. Evaluate how user-friendly, informative, and attractive their website is. A growing number of people go to the internet if they need to look for something. An effective website is a powerful sales tool and that’s why you need to check it out. When browsing through the site of a listing agent in Myrtle Beach, there are a few things you need to consider.

Do their listings have virtual tours of the houses that are for sale? This could be an excellent sales tool, giving the first home buyers a chance to see the house before spending gas money and time on an actual tour of the home. If they don’t offer virtual tours, they need to have a gallery that’s filled with clear pictures of the interior and exterior of the house that’s been listed.

The next step is to check the free publications in your area. Free real estate publications are commonly found in gas stations and supermarkets. Take as many as you can see and check them out. Which companies are prominent and which one of them was able to deliver the most effective ad?

Don’t forget to ask your neighbors, relatives, and friends about a real estate agent that they have worked with. Ask them for recommendations. You should also ask about the agents that they don’t recommend and why. Word of mouth and referrals are great tools in finding the best agent because you are talking to people who have a first-hand experience of the services provided by the agent.

Once you have a list of potential listing agents, the next step is to schedule an appointment so you can interview them and ask for free market analysis. This will offer you a chance to get different recommendations on the selling price for your home. This will also give you an opportunity to weed out the agents who are too far out of line in some way.

You have to ask every candidate to explain their proposed sales strategy, including presentation and advertising on the internet. Be sure they are members of your local MLS or Multiple Listing Service since it remains one of the most powerful and effective sales tools today. It’s crucial that the sale of your home be known by as many agents as possible.

You should also inquire about commission schedules as well as listing periods for the real estate agent in Myrtle Beach that you’re considering. You must get a fair price. However, you wouldn’t want to tie your house up with an inefficient listing agent or company for an unknown amount of time. Determine the average selling time for houses in your area and ask about the particular average time of their company.

To figures must be similar. Don’t forget to ask about lockboxes, open houses, and how they plan to handle showings. Always keep an open mind, when picking out a company or listing agent that offers quality real estate services, and you’ll be setting yourself up for an enjoyable and quick sale of your house.

Call Full Potential Real Estate, LLC if you are looking for a reputable listing agent to help you sell your home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

TEN THINGS YOU NEED TO DO BEFORE YOU HIRE A REAL ESTATE AGENT

There are many reasons to sell your house. However, regardless of the reason, most sellers want it sold quickly and at a fair price. It is important to work with a top agent, but you should ensure these things before you hire a real estate agent to help you sell your house.

Top-rated real estate agents in Myrtle Beach were asked what they would like sellers to do before contacting them.

Top 10 things you should do before hiring a real estate agent.

1. Your selling goals

Before you even consider hiring a realtor, you must first map out your selling goals. You will need to establish a price range for offers that you are willing to accept. Having a price range is helpful as it allows agents to understand where they’re at. The agent can recommend a price range that is closer to local market conditions if the price range is too high.

You’ll also need to consider the time frame you are comfortable with, and how it might affect the final sale price. Do you prefer to accept a lower price in exchange for a quick home sale or do you prefer to wait for the best deal? Are you open to negotiation or do you insist on the price?

2. Find out how much equity your home has

Before you contact a real estate agent, it is helpful to know what equity you have in your home. Home equity is the homeowner’s financial stake in the property they own, free from their mortgage loan obligation. This is calculated by subtracting the value of your property from the total mortgage amount and any other liens that must be paid to sell it.

If you are buying a home, it is possible to have enough equity to make a decent downpayment. However, equity must be adequate to cover any expenses that you will need once the house has been sold. This includes closing costs and agent commissions. Once your house sells, any mortgage balance will have to be paid off.

3. If you’re buying, get pre-approved to get a mortgage

The National Association of Realtors (NAR), released their Realtors Confidence Index Survey. It found that 22% of realty contracts were delayed, and that 8% of those contracts were terminated because of difficulties obtaining financing. It can be difficult to buy a house and sell one simultaneously. Get pre-approved for mortgage financing before you start looking for a home.

4. Find the best time to list in your area

Sometimes life has a way of throwing us curveballs and you can’t control when your house needs to be sold. If you’re able to think strategically, determine the best time of year to sell your house.

The housing market trends indicate that homes sold during peak selling seasons are more expensive than those listed in slower times of the year. This swing is usually over 10 percent.

5. Repairs are required

NAR also reported that 9% of contracts were delayed, and 9% of those contracts were terminated because of home inspection issues. Do not let your sale go through without making the necessary repairs. To ensure your home passes future inspections without any problems, be proactive and create a repair list.

You can request a home inspection yourself before calling a realtor. You will receive an inspection report that will detail the problems and you can then schedule appointments to have the repairs completed before the house goes on the market.

6. For home improvements, gather receipts and warranties

To get more information about your home, real estate agents can use tools such as automated valuation models (AVMs). They can also tell when a house has been maintained and when it isn’t. This information will be used to help them recommend a price range.

Keep detailed records of all the work done in your home to help you negotiate a fair price. You should keep detailed records of all receipts and warranties. Also, a breakdown of costs, materials and completion dates.

7. Deep cleaning and decluttering

Once you have decided to sell your home, it is time to start cleaning out and decluttering. Although this task may take several weeks or months to complete, it is essential if you are to get the best possible price. Deep cleaning and decluttering your home’s interior can increase the sale price. A cleaner home is more appealing to potential buyers than a house that sells for a higher price.

8. Interior renovations

After your interior has been cleaned, you can think of ways to make your home feel fresher and more modern. You can breathe new life into your home by replacing the curtains and linens with new ones. All over the house.

You can also refresh your home in other ways:

• So that rooms appear brighter, replace the light bulbs with LED bulbs.
• Extension cords that are not needed should be eliminated or hidden
• Paint your kitchen cabinets and replace the hardware
• You can place a few plants throughout your home, whether they are real or fake.

An agent you hire might suggest staging plans because staging allows buyers to visualize themselves living in the home. Staging can also increase the sale price. Staging can also reduce the time that your home is on the market.

9. Improve the curb appeal

First impressions are important when selling a house. This starts as soon as potential buyers see your house from the street. Potential buyers will be impressed by the appearance and condition of your yard.

You don’t have to hire a professional landscaper if you want to improve curb appeal. Simple tasks can be done by you:

• You can pressure wash your exterior, driveway, walkways, patio/deck, and patio/deck
• Clean the windows both inside and outside (if they are in poor condition, remove them).
• Take care of your yard by cleaning up any clutter or removing dead plants.
• Regular lawn maintenance tasks such as mowing, fertilizing, watering and so on should be performed.
• Fresh mulch can be added to flower beds

10. Find top real estate agents in your area.

Once you have completed this checklist, you can begin your research about who to hire. The United States has approximately 3 million licensed real estate agents. This means that you have many options. But, not all agents are equal. How do you sort through the millionssell  of agents? Make sure you do your research

Work only with the best. Call Full Potential Real Estate, LLC now and let our team help you with your home sale.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

UNDERSTANDING REAL ESTATE AND INTEREST RATES

Lenders, whether government-backed or private, compete for home buyer businesses in a free and dynamic market. This drives up or lowers average monthly interest rates for mortgage loans.

Based on correct housing prices, tighter credit requirements, and a decreasing surplus of unsold houses, the average interest rates on 30-year fixed mortgages have remained close to historic lows between 2013 and 2022, but have started rising in 2022. However, they are still at historically low levels.

Rising mortgage interest rates do not cause anxiety. Knowledge of the topic can help ease any fears. Housing market participants must be able to comprehend rising mortgage rates as they have an impact on every aspect of purchasing a home.

Rising Interest Rates and Homebuyers

The conventional wisdom in real estate is that higher interest rates can make selling or buying a house more difficult. Conversely, decreasing interest rates can make selling and buying a home easier.

Johnny Home Buyer would want a 4% interest rate on a 30-year fixed-rate mortgage on a $400,000 home. His monthly mortgage payment would then be $1,900. Johnny would pay $2,138 if he was eligible for a 5% fixed rate on a 30-year mortgage. Johnny’s monthly payment would rise by $238 if he has a 1% interest rate increase. This is roughly 13%. What does this all mean for homebuyers

A home buyer sees affordability decreasing as mortgage rates rise. Johnny Home Buyer is looking to get a $400,000 mortgage at 4.4% interest. However, based on his qualifications, the lenders are unable to offer him a loan of $355,000 because he has not met all requirements. Johnny’s purchasing power is reduced by $45,000 for every 1% increase in mortgage rates.

Johnny Home Buyer could have “qualified” for the $400,000 mortgage he desired before the Great Recession. This was during peak subprime mortgage madness.

To sweeten the deal, a subprime lender could have offered Johnny a 2% adjustable rate of interest for the first five years. Johnny will be responsible for at least 7 percent interest after five years. If interest rates rise, Johnny may have to pay more.

Sellers and rising interest rates

Sellers are also affected by rising mortgage rates, but in a different way. Jill may list her home for $400,000 if she wants to sell her house. Jill’s house is now only available to buyers who can afford it at $355,000 due to rising interest rates.

Indisputable, Jill can still make a profit from the sale. However, a 1% increase on mortgage rates reduces Jill’s market value by approximately $45,000.

How well she plays the markets will determine her profit. In essence, interest rates could rise rapidly and cause housing prices to crash.

Rising Interest Rates and Property Value

Homebuyers and sellers can notice the impact of rising interest rates. Hypothetical scenarios show that housing prices and property values directly correlate with mortgage rates. However, the economic health is what drives both of these scenarios.

Rising mortgage rates won’t have as much of an impact on housing prices and property values if the economy is growing fast enough. If mortgage rates rise one point, monthly payments will increase by $238. However, strong economies allow employers to raise salaries enough to compensate.

A rise in interest rates shouldn’t paralyze the housing market as long as the economy is growing and there are job growth and wage growth.

Rising interest rates and real estate investing

The impact of rising mortgage rates on real estate investment can be beneficial. Because fewer people are eligible for mortgages, the rental market will grow. However, rising interest rates can reduce prices so it is sometimes better to purchase during an increasing interest rate environment.

Furthermore, lending standards will become more strict as interest rates rise. This will result in fewer real property transactions. Renting properties will become more important until people can afford mortgages. An investor could make a fortune by investing 1% more in the right market for housing.

Do you want to buy or sell?

It is not a bad idea to buy a home when mortgage interest rates rise. Historical data shows that a mortgage rate of 5% is still very low. A mortgage with a fixed rate for 30 years is much cheaper than historical rates, according to data from Freddie Mac.

Since 2009, the average annual 30-year fixed mortgage rate has not exceeded 5%. The average mortgage rate at the beginning of the Great Recession, 2006 was 6.411%. In 1996, the average mortgage interest was 7.81%. Ten years earlier, in 1986, it was 10.9%.

What happens to mortgages when interest rates rise?

Mortgages are more expensive when interest rates rise. This is because the mortgage interest rate also increases. It becomes more expensive for homeowners to buy a home. The demand for homes decreases when they are more expensive. This causes a decline in the housing market. To attract buyers, sellers reduce the prices of their homes.

Are rising interest rates good for mortgage companies?

Companies that lend money to home buyers are rewarded with rising interest rates. A bank or mortgage company that earns more interest for a higher interest rate will be able to pay more. This leads to higher bank revenues. However, mortgage companies may be affected if they have to charge too much for mortgages.

What is better: Lower closing costs or lower interest rates?

It is up to you to calculate the numbers and work out which option is best. The best option for your home purchase is one that results in a lower total cost. This would typically be lower interest rates since you will be paying that interest rate for a longer time if your home is not refinanced. This could result in lower monthly mortgage payments and lower interest rates.

The bottom line

Buyers are encouraged by interest rates remaining at historic lows. Today’s market is home to some of the lowest debt that a homeowner will be able to acquire in the market.

The most important thing is to get the right advice from an experienced real estate agent professional who has sold many properties for others. Potential investors will feel more confident, knowledgeable, and secure in their financial decisions when working with an expert.

Call Full Potential Real Estate, LLC now if you are looking to buy a home in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

TIPS FOR GETTING A HOME READY TO SELL

If you are planning to sell your Myrtle Beach home it is important to understand that this whole process is both overwhelming and stressful in order to get the best price from it possible. There are a number of important real estate selling tips you should learn when it comes to selling a home fast. Below are some of the important tips you should consider so you can the best price when selling a home:

Preparation Tips Before Selling A Home

Taking an Objective Look at Your Home

After living in a certain place for a long time (like your home), it is human nature to overlook the small things that could hurt its resale value. It is for this reason that it is wise and important to ensure that you take an objective look at your home before placing it in the market. You should think just like a potential buyer and identify all the turn-offs, and look for a way to negate them.

Improving Your Home’s Curb Appeal

Statistics in the real estate industry have shown that most potential property buyers make up their minds about viewing the inside of a house within the first 10 seconds of looking at its curb appeal. This is one area that is very important to take care of as you make the preparations when it comes to selling a home in Myrtle Beach.

It should be very attractive and breathtaking in order to attract more visitors to your property and also arouse their interest to enter and view it well inside. A professional realtor in Myrtle Beach said that a great curb appeal is quite a strong point that attracts buyers as it reflects the degree of care and maintenance according to the other parts of the house.

Making the Home Stand Out

When buyers are looking to buy a home, they normally view a number of properties before making their final decision. In order to close the deal, you have to make sure that your house stands out. It is important to make sure that the buyers can connect with your home and visualize it as their own. In order to achieve this feat, you should ensure that you “depersonalize” your home.

This will be achieved by ensuring that you put away all your personal belongings and photos. This makes your home neutral and it will be easier for prospective homebuyers to visualize themselves in the home with nothing detracting them.

Pricing Your Home Right

Apart from doing the basics like cleaning the house thoroughly, repainting it, de-cluttering and fixing all the broken parts when preparing to sell your home, setting the price right is also very important.  You may want to consider hiring a handyman to repair dripping faucets, clean up the yard and do a thorough inspection of your home. You should carry out research on your competition as well as the market in order to set your price well. Use the home search function on our website to conduct your research.

You can take the risk and slash the price of your home by about 15 – 20% off the prevailing market prices.  This is a huge risk but it may bring a lot of buyers to your home and force bidding that will fetch more than the set price and maybe over what it is worth. This is a great strategy for selling your home in the prevailing market today.

All the above are the important real estate selling tips that you ought to follow when getting your home ready for sale. However, the best tip is to call your local real estate agent in Myrtle Beach for their advice on selling a home in Myrtle Beach.

Cheryl Woodward with Full Potential Real Estate knows the area and can ensure your home is priced right. Call today for a no-obligation consultation.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

5 NEW YEAR’S RESOLUTIONS FOR HOME SELLERS

Are you a homeowner whose planning to sell their home this year? You only get one chance to make an impression, regardless of market conditions and season. It must be memorable. There are some things you should do before selling your home. Here are five resolutions for 2022 that will help you sell your house quickly and at the highest possible price.

Set your listing date

You can schedule your listing date in advance so that you are aware of what to expect, how to plan and what to do when your house is up for sale. Moving to a new house and selling your old one to the right person requires a team effort from you and a professional real estate agent Myrtle Beach. Other professionals such as a lawyer and lender, a home inspector, and movers are also needed. This applies to anyone who is buying a house. Before you start anything, contact a seller agent to discuss your options and get advice.

Repair and replacement

You should inspect your property before you list it. Staining, cracking drywall, and defective light bulbs are all easy to fix and won’t cost you a lot. These things can have a significant impact on the offers you get for your house if they are ignored. It can be difficult to assess your home. Ask a friend to inspect your home and give you constructive criticism. A home inspector can be hired to inspect your house. The handyman will then do any repairs or replacements that are required.

Get Comparable Listing

Ask your agent to look at comparable listings at least three to six month before you list your house. This will give you a rough estimate of the price. Remember that many factors can affect the sale price of your house, including the size and interior finishes of the lot, the proximity to schools and parks, as well as proximity to public transportation. To ensure that your house is priced right to attract serious buyers, your real estate agent will inspect it before it goes on the market.

Get Rid of the Clutter

Your house will look smaller if it is cluttered. It all depends on how long you’ve lived in your home and what your lifestyle is like. De-cluttering can be difficult. Start small and work your way up. You can start in one room, then move on to the next. Be clear about what you need, want, and love. What are the things that you can live without? What are you left with after all this? You don’t need to take the items you don’t use as well as the items that make your home look messy.

Staging

You must stage your home when you are ready to sell it. To make it easy for potential buyers to envision themselves in your new home, you should keep your personal photos and other belongings out of sight. You should also store all non-essential belongings. Renting home furnishings can also help improve the interior of your home. You might be able to stage your home through your real estate agent.

 

Call Full Potential Real Estate,LLC if you are planning to sell your home!

Full Potential Real Estate, LLC

Myrtle Beach, SC 29577

843-236-0203

https://fullpotentialrealestate.com

7 REASONS WHY YOU SHOULD CONSIDER BUYING A HOME IN WINTER

You might have never thought of it before but buying a home in the winter has its perks. It’s a bit out of the ordinary to go house hunting the middle of winter. As it’s not the most ideal time to be buying a home, but it does work. Of course, you can’t do this alone. You will need to find yourself a real estate agent for your hunt. But does it really work? Check out these seven reasons why you should go against the flow and start searching for a home in the winter.

A buyer’s agent is what you will need in case you wish to find a good deal

1. There’s less competition – when you come to think of it, buying a house in the winter isn’t all too exciting. And with that comes less competition. In the summer, everyone is looking around trying to find a good spot to settle in. House hunting is often done when the weather is fine. Basically, you’ll have a lot of competition if you were to buy in the summer.

1. Sellers are realtors are eager to make a sale – it’s not often that realtors and sellers make a sale in the winter. It’s not common practice for people to sell their property during this time. However, it’s a perfect time to take advantage of it. Your local Myrtle Beach real estate agent will be quite eager to make a sale during this time. Since there won’t be a lot of business this time of year, any realtor who wants to make money will be eager enough to cater to potential buyers despite the cold.

1. Moving companies are available – if you’ve ever tried to move to another home in the summer, you already have an idea of how hard it is to find movers. On the other hand, it’s not as hard to find moving companies since not everyone wants to be moving out in the middle of winter. Of course, you will want to take advantage of this time. You just have to bear the cold, though.

1. Sellers want to quickly close a deal – during the summer months, there’s a lot on the plate of everyone. It’s not the fastest time if you want to close a deal with a seller. On the other hand, it’s quite the opposite during the winter as most sellers prefer to close the deal before the holiday season.

1. Extenuating circumstances – there could be a lot going on in people’s lives that may drive them to sell during the winter. However, when you do spot a seller in the winter that just means they are trying to get out as soon as possible. That’s the perfect time to get a good deal. Your realtor will make quick work of the transaction too.

1. Better interest rates – buying a home before the end of the year is a smart way to lock in your interest rates. The following year, interests may rise, which would make it harder for your finances. However, the right timing, particularly in the winter, will give you better rates.

1. Firsthand experience of what your potential home would be like – of course, if you see it in the winter, you’ve already seen how your potential home could be. When buying a home in the winter, don’t forget to find a good buyers agent. Getting the help of experts like Full Potential Real Estate can give you an advantage.

Call Full Potential Real Estate, LLC if you need the help of an experienced buyer’s agent who can help you find your dream home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com