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How Rising Rates Impact the Baltimore Market

The market is really heating up thanks to rising interest rates and the start of the new year. If you were on the fence about buying or selling, you might want to come down. Here's why.

Happy New Year! We're already getting to the point where things are picking up in the Baltimore real estate market due to rising interest rates from December and the Fed saying they will go up in the next two quarters. We were lucky to see rates below 3% as we're now approaching 4.5%, and I think we'll be in the 5% range before the end of the year.

This has already started pushing some buyers off the fence and into the market to buy a home before rates go up again. With the holidays being over, we're already starting to see more showings and sales. If you're thinking about selling, reach out to us soon to get an appointment set up. There are also many 'coming soon' houses that will be on the market this time of year, and we're expecting a very busy spring due to the rise in rates.

Basically, a 1% rate increase raises the cost of a house by 10%. If you could afford a $350,000 house and rates went up 1%, you would only be able to afford a $315,000 house. Rates don't always change based on the stock market, but rather the bond market. If you see interest rates starting to tick up, don't be surprised. It's also predicted that in 2018, we'll see two or three more increases in rates.

A 1% rate increase raises the cost of a house by 10%.

If you have any questions about the market, interest rates, or your home's value, give us a call or send us an email. We look forward to helping you.

Happy Holidays From the Lee Tessier Team

We had our best year yet in 2016 and as we approach Christmas and the New Year, we want to reach out and thank you.

It's hard to believe, but Christmas is almost here. I wanted to reach out and wish you and your family a very merry Christmas and a happy New Year!

We had our best year yet in 2016, and we appreciate you helping us get there. Thank you for letting us serve your real estate needs and trusting us with your referrals. 

We look forward to a prosperous 2017 and hope you have a healthy and happy Christmas and New Year.

If you need anything, we're always here to help. Just give us a call and we'd be happy to speak with you.

Join Us for Free Pie and Drinks

I'd like to officially invite all of our friends and clients to join us Tuesday, November 22nd at Liberatore’s in Bel Air from 4 p.m. to 7 p.m. for our Thanksgiving party! We'll also have food and an open bar, just like last year.

We can't tell you enough how much we appreciate your business and the referrals you send us. I look forward to seeing you Tuesday the 22nd!

Which Questions to Ask When House Hunting

If you're in the market for a home, you need to ask the right questions. Today we have a set of preliminary questions that every house hunter should be armed with.

When house hunting, there are a lot of questions you should ask in order the find the right home at the right price and in the right condition. First, you’ll want to have a consultation with your buyer's specialist to go through all the things that are important in terms of wants and needs in your next home—the needs are always the most important. We also want to drill down on the wants as well so that everyone is on the same page. Since there is never a truly perfect home, we want to focus on hitting all the needs. Buyers always have a laundry list of wants, but what are you willing to sacrifice because of pricing or inventory?

Be sure all your needs are covered before focusing on the wants.

When you see a home, one of the first things you should ask is how many days it has spent on the market. If it's a hot property that shows well and is priced appropriately, it could go in as quickly as one to three days. Sellers who start with their price too high and are forced to come down may be on the market for closer to six months. Then, you'll want to look at the updates and overall condition of the house. Look at the major mechanicals of the house, like the roof and whether there have been water or mold issues, for example. Ask your agent about the things that they run into on a regular basis. If you’d like a full list of the questions you should be asking as a Baltimore home buyer, reach out to us by phone or email and we'd be happy to set you up. We want to make sure the home buying process is a great one for you.

Baltimore Real Estate Agent: How to Buy and Sell a Home Simultaneously

One fear that many home sellers have before accepting offers on their home is that after the buyer signs the contract, they won’t be able to find a place to live. Is it possible to buy a new home while selling your current one? Though this is not an overly common situation in our area, it does happen. In the event that you’re unable to find a home after going under contract on your current one, a good real estate agent will be able to find you a home you love or negotiate to get you more time. To find out how we help our clients do this, watch this short video.

Some of our clients worry about being able to find a new home after selling their current one. We don’t often see issues with this today, but there are certainly instances of this in more of the hot pockets of Baltimore and Harford County.

If your home does sell really quickly, generally we can negotiate a home-of-choice contingency for you to be able to find a home, and sometimes we can get that extended, if need be.
We are often able to negotiate rent-backs and extensions with buyers.

For example, recently, one of our clients was not able to find a home that they liked within that 30-day time frame, so we were able to negotiate another 30 days, plus a rent-back period. This was a win-win for both these sellers and the buyer who purchased their home, since the buyer knew that they would still be able to buy the house and the sellers were given an additional 60 days after settlement to move out. This gave these sellers a 120-day period to find a house.

A good real estate agent will be able to help you through this process so that you don’t have to worry about ending up homeless after your home sale.

If you have any other questions about buying and selling a house simultaneously, feel free to give us a call or send us an email. We’d be happy to help you!