Legend has it Picasso was sitting in a Paris cafe, doodling on a used napkin. A woman sitting nearby took note and asked him if she could buy the napkin. Picasso agreed if she was willing to pay a large sum of money. In disbelief, the woman commented, "You drew that in a few minutes!"
"No, ma'am," Picasso said, "it took me over forty years to draw that."
Many of our skills come with trying, failing, reflecting, adjusting, and trying again. For example, when I started doing Yoga almost thirty years ago, I would get easily frustrated. But with practice, poses that were once impossible became possible.
A few years ago, it became clear that I needed to make a career change. I always wanted to work in real estate, but I had an intense fear of rejection. During the pandemic, I self-reflected and decided it was time to take the plunge and not let my fear stop me from having my dream job. My real estate exam got canceled four times because of Covid, so I drove five hundred miles to Fargo, North Dakota, to take it. With unwavering determination, I passed. Then, calling on my superpower, True Grit, I was ready to face my next nemesis: fear.
To succeed as a realtor, I had to put myself out there. Rejection greeted me frequently as it simply came with the job. However, I overcame the pain and shame that rejection brings by making it a game. I tried to get rejected at least once a day for thirty days so I would have the experience of it. Instead of running when I felt the slightest tinge of rejection, I accepted it as a way to learn and grow.
Like Picasso, many of us have developed experiences and skills over a lifetime. Being a business owner, Sales and Marketing Director, and Writer have prepared me to be a successful realtor. Once I overcame my fear of rejection, the rest came easy. I love my job and have grown beyond my wildest imagination. I receive a tremendous amount of joy from helping others. My clients have become a part of my family. With a mixture of professionalism and kindness, I fiercely negotiate to close the deal on their behalf. I am proud of all the houses I helped buy and sell in 2021 and am excited to exceed my 2022 goals. Here's to a fantastic New Year!
Making a Difference in 2022
On a cold winter morning, the generosity of my neighbors warmed my heart. Wildridge and Echo Lake families have donated over 800 pounds of groceries to the Mahtomedi Food Shelf in the last couple of weeks. This act of kindness gives me hope that we have the courage, conviction, and commitment to make a difference in 2022 for the good! Hope gets us from one day to the next and gives our life meaning. It also stretches the limits of what is possible, helping us to believe there is a way out of this pandemic.
Market Trends
Why Waiting To Sell Your House Could Cost You a Small Fortune
Many homeowners who plan to sell in 2022 may think the wise thing to do is to wait for the spring buying market since historically about 40 percent of home sales occur between April and July. However, this year’s expected to be much different than the norm. Here are five reasons to list your house now rather than waiting until the spring.
1. Buyers Are Looking Right Now, and They’re Ready To Purchase
The ShowingTime Showing Index reports data from more than six million property showings scheduled across the country each month. In other words, it’s a gauge of how many buyers are out looking at homes at the current time.
The latest index, which covers November showings, reveals that buyers are still very active in the market. Comparing this November’s numbers to previous years, this graph shows that the index is higher than last year and much higher than the three years prior to the pandemic. Clearly, there’s an influx of buyers searching for your home.
Also, at this time of year, only those purchasers who are serious about buying a home will be in the market. You and your loved ones won’t be inconvenienced by casual searchers. Freddie Mac addresses this in a recent blog:
“The buyers who are willing to house hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”
And that theory is proving to be true right now based on the number of buyers who have put a home under contract to purchase. The National Association of Realtors (NAR) publishes a monthly Pending Home Sales Index which measures housing contract activity. It’s based on signed real estate contracts for existing single-family homes, condos, and co-ops. The latest index shows:
“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ in approximately 18 days.”
Comparing the index to previous Novembers, while it’s slightly below November 2020 (when sales were pushed to later in the year because of the pandemic), it’s well above the previous three years. The takeaway for you: There are purchasers in the market, and they’re ready and willing to buy.
2. Other Sellers Plan To List Earlier This Year
The law of supply and demand tells us that if you want the best price possible and to negotiate your ideal contract terms, put your house on the market when there’s strong demand and less competition.
A recent study by realtor.com reveals that, unlike in previous years, sellers plan to list their homes this winter instead of waiting until spring or summer. The study shows that 65% of sellers who plan to sell in 2022 have either already listed their home (19%) or are planning to put it on the market this winter.
Again, if you’re looking for the best price and the ability to best negotiate the other terms of the sale of your house, listing before this competition hits the market makes sense.
3. Newly Constructed Homes Will Be Your Competition in the Spring
In 2020, there were over 979,000 new single-family housing units authorized by building permits. Many of those homes have yet to be built because of labor shortages and supply chain bottlenecks brought on by the pandemic. They will, however, be completed in 2022. That will create additional competition when you sell your house. Beating these newly constructed homes to the market is something you should consider to ensure your house gets as much attention from interested buyers as possible.
4. There Will Never Be a Better Time To Move-Up
If you’re moving into a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 5% over the next 12 months. That means it will cost you more (both in down payment and mortgage payment) if you wait. You can also lock in your 30-year housing expense with a mortgage rate in the low 3’s right now. If you’re thinking of selling in 2022, you may want to do it now instead of waiting, as mortgage rates are forecast to rise throughout the year.
5. It May Be Time for You To Make a Change
Consider why you’re thinking of selling in the first place and determine whether it’s worth waiting. Is waiting more important than being closer to your loved ones now? Is waiting more important than your health? Is waiting more important than having the space you truly need?
Only you know the answers to those questions. Take time to think about your goals and priorities as we move into 2022 and consider what’s most important to act on now.
Bottom Line
If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, call me to help you decide the best time to put your house on the market.
Lenders Corner
Get your offer Accepted in competitive housing market!
Take the risk out of buying and selling a house at the same time.
Despite rising interest rates the housing market is still red-hot due to a shortage of houses on the market and people wanting to buy now at still historically low rates before they go higher.
Moving is always stressful, whether you want to sell your house and buy a new one because of a job transfer, you need a bigger house for your growing family, or you are taking the plunge into homeownership for the first time. That stress multiplies when there is such intense competition for available houses or when you’re trying to sell your current home at the same time. That scenario can be like playing a game of mortgage chicken, where you could possibly end up with two mortgages to pay.
However, a new program by New American Funding can help take a lot of the stress out of both scenarios. The Buyer Accepted Program (BAP) makes our borrowers Cash Buyers, by putting up the cash for the new house, thus making their offer stand out above all other offers that are contingent on financing. The Buyer Accepted Program also allows people who are selling an existing home to move into their new home and THEN sell their existing home (within 90 days) before closing on their loan!
Here is briefly how it works:
Borrower/Purchaser gets Pre-Approved for their loan-minimum credit score of 680 with 20% down, or 700 with 10% down.
Purchaser determines their offer price and terms of the purchase offer including minimum 3% in Earnest Money
New American Funding/BAP submits an all-cash offer on purchaser’s behalf.
Purchaser’s cash offer gets accepted and BAP closes on the house and the purchaser moves in.
If the purchaser does NOT have a home to sell then BAP immediately closes on the loan with the purchaser and the purchaser takes title to their new home.
If the purchaser DOES have a home to sell, then they have up to 90 days to sell their existing home before closing on the new loan. They will rent the new home that they are living in during that time and pay $700 per $100,000 of purchase price that is not due until closing on the new loan after selling their house.
The Borrower/Purchaser pays 1.5% of the purchase price as a Convenience Fee which is rolled into the mortgage.
This new program is a game-changer for many home buyers! Call me to discuss the details of this program or ANY mortgage loan needs! I want to help you get into your new home!!
Scott Uttley, Loan Consultant
New American Funding, Inc.
scott.uttley@nafinc.com
(651) 269-8829
