December 2020 Real Estate Roundup
The coronavirus pandemic did some interesting things to the real estate market. During the shutdowns many home sales crawled to a halt, but once things opened back up again home buyers came out in full force snapping up homes in suburban areas. Low interest rates coupled with high buyer demand mean properly priced homes had multiple offers at or above asking price. While things did slow down for the holidays buyer demand is likely to return once the holidays are over and temperatures warm up. Check out the articles in this month’s roundup to get ready to buy or sell real estate in 2021.
Credit Scores Explained
When applying for a mortgage to buy or refinance a home the better the credit score the more favorable the mortgage terms will be. Bill Gassett explains how to obtain a better credit score and what a credit score takes into account. There are different credit scoring systems and many of the credit score providers are adjusting their credit score formulas on a regular basis so the numbers can vary. With a great credit score in general, borrowing terms for home buyers and for many other types of loan will be more favorable for one who has a high credit score.
An important part of buying and selling a home with a mortgage is the home appraisal. Mortgage lenders cannot lend on a home for less than the current value (often termed loan to value). Depending on the loan type that mortgage can be based on a 100% value, 95% value, 75% value or some other number. Sharon Paxson provides an in depth look at the home appraisal process and explains what exactly happens during a home appraisal. Homeowners who are selling a home should understand the appraisal process in order to make sure they are ready for it when the time comes.
How To Refuse An Offer On A Home
No matter the type of market any offer that comes in on a home for sale should not be ignored. Buyers will put in offers at market price, higher than market price offers and even sometimes a lowball offer. As Alex Capozzolo points out any offer on a home is an expression of interest and should not be ignored. A buyer who submits an offer is interested in the home regardless of what price they are offering. Ignoring that offer could result in the home sitting on the market longer than normal which then leads to having to drop the price in order to attract interest later on.
1031 Exchange Rules
If you are a real estate investor, then you should know about the 1031 tax-deferred exchange. This law allows you to avoid paying capital gains tax after you sell an investment property if you use the proceeds from the sale to invest in another property, thereby deferring the capital gains tax until the new property is sold. Although this law can provide a number of tax advantages, there are many nuances to understand and potential tradeoffs to be aware of. In this article, the team Manhattan Miami Real Estate covers everything US and foreign real estate investors need to know about the 1031 exchange rules.
Different Types Of Real Estate Investments
There are many different options for real estate investments and this article from Alex Capozzolo explores five different types of real estate investment options available for investors. Depending on the investor’s goal the different options provide different strategies. Single family rentals versus multi-families, condos, vacant land and more are all viable options. Newer investors are advised to thoroughly understand the different options before taking the dive as the leverage and funds required to invest in real estate can be high.
Should Buyers and Sellers Be Talking To Each Other?
In this article Kevin Vitali discusses whether home buyers and sellers should be talking to each other when working to buy/sell a home and both sides are represented by a real estate agent. Agents are there to act as the go between for the home buyer and seller to help make sure things are communicated properly and that emotionally charged communications are kept to a minimum. With a lot of money on the line emotions can run high and both sides may tend to take things out of context when it comes to negotiations. Kevin discusses why agents are better off handling communications and what can be gained by that.
Understanding A Mortgage Forbearance
Due to the coronavirus pandemic and the economic shutdowns many homeowners found themselves out of work and unable to pay their mortgage. Through acts of Congress those homeowners with government backed mortgages were given the option to delay payment of their mortgage for a limited period of time. The mortgage forbearance periods are coming to an end for many and understanding what homeowners should be doing when their forbearance ends is important as Paul Sian explains in his article. Homeowners will have different options from which to pick from as this article explores.
Negotiating Tips For Home Sellers After The Inspection
Selling a home means negotiating with the buyers at a couple of different points during the transaction. Negotiating after the home inspection with buyers is a critical time a purchase contract can fall apart during this time frame if not done correctly as Joe Boylan points out. Taking a strict approach as the seller can result in losing a buyer and losing valuable time. If a home has to get re-listed because the buyer and seller could not agree on post-inspection repairs, chances are the next buyers will be even more cautious and expect appropriate price discounts. Both the seller and the buyer should be working towards a win-win result so that everyone walks away successful as Joe points out.
Have any other real estate articles of interest that you found to be insightful from December 2020? Share them in the comments below. Feel free to also share your thoughts on your current real estate market or your predictions for the 2021 real estate market below.
The Real Estate Roundup for December 2020 was provided by Greater Cincinnati Area Luxury Realtor Paul Sian of United Real Estate Home Connections. Paul is a licensed real estate agent in the states of Ohio and Kentucky and has over 14 years of experience. Feel free to contact Paul for all your Greater Cincinnati and Northern Kentucky real estate needs.