Blog
Sales Trends in our Area
In August 2019, home sales in Haywood County rose 5.2% compared to August 2018. 121 homes were sold in August this year. Also pending contracts increased 28.1% compared to August 2018. This indicates strong buyer demand for homes in our area. Maybe the most impressive statistic would be days on the market. In August 2019 average days on the market was 50 days, compared to 85 days on the market in August 2018. I actually had a home go under contract the next day after it was listed in our MLS.
One interesting aspect of our growing sales rate is continuing interest from buyers in the Asheville/ Buncombe County area. Inventories in the Asheville area continue to contract due to strong buyer demand, and more new people moving to the area. Many of these buyers are finding homes here in Haywood County are more affordable, and there is more inventory from which to choose. This is definitely helping to drive home sales here. Even people who work in the Asheville area find they can purchase a home on the Asheville side of Haywood County and still have only a 20 to 30 minute commute.
As we enter the October selling season we are still seeing strong buyer demand. Due to the beautiful “Fall Leaf Season” we have here in October, home sales can be very strong during this month.
Whether you are considering buying a home or just want to see some beautiful Fall color, come on up and join us.
Questions to Ask When Choosing a Lender
How to Prepare to Buy a Home
Know that there’s no “right” time to buy.
If you find the perfect home now, don’t risk losing it because you’re trying to guess where the housing market and interest rates are going. Those factors usually don’t change fast enough to make a difference in an individual home’s price.
Don’t ask for too many opinions.
It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of the people who will actually be living in the home.
Accept that no house is ever perfect.
If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go. Also, accept that a little buyer’s remorse is inevitable and will most likely pass.
Don’t try to be a killer negotiator.
Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or refusing to budge may cost you the home you love.
Remember your home doesn’t exist in a vacuum.
Don’t get so caught up in the physical aspects of the house itself that you forget about important issues such as noise level, access to amenities, and other aspects that also have a big impact on your quality of life.
Plan ahead.
Don’t wait until you’ve found a home to get approved for a mortgage, investigate insurance, or consider a moving schedule. Being prepared will make your bid more attractive to sellers.
Choose a home first because you love it; then think about appreciation.
A home is still considered a great investment, but its most important role is as a comfortable, safe place to live.
Some Facts about our Area
From time to time clients ask about climate, or geographical facts about our area. The largest town in Haywood County is Waynesville, with a 2010 population of about 10,000. I expect the population in 2020 should be about 12,000 to 15,000 as our area continues to be discovered and to grow in population. The average high summer temperatures run from about 75 degrees in May to about 83 degrees in July and August, and back to about 77 degrees in September. The remainder of the year, high temperatures average about 69 degrees in October to a January average high of 49 degrees, warming to an average high of 68 degrees in April. Now these are historic average highs. In the last few years we seem to be going above the averages with some regularity. Also, these are the highs for Waynesville, which is only about 2700 feet or so above sea level. Waynesville is surrounded by high mountains, and usually, the higher you go, the cooler the air. Last Sunday my wife, our fur-baby and I took a ride on the Blue Ridge Parkway. Although it was 83 degrees in the valley, when we reached about 6000 feet above sea level on the parkway, it was a cool 67 degrees.
Haywood County is surrounded by many mountains well over 5000 feet above sea level, and several above 6000 feet above sea level are found in this county. In fact, Haywood County, by mean elevation is considered the highest county east of the Mississippi River at an average of 3600 feet above sea level. (All these facts are according to Wikipedia.)
So, if you are looking for a great place to escape the heat, with winters that are not too cold, come have a look at what Haywood County has to offer. I promise you won’t be disappointed.
Keeping in Touch with our Clients and Friends
Here at Mountain Dreams Realty we really value our clients, and most of our clients become our friends. We do want to keep in touch with our client family as best we can. We have a Facebook page on which we post articles from various sources, as well as attractions, festivals, local businesses and upcoming activities. We also send out an email twice monthly to our client family. On or close to the 1st of each month we send an email with a link to sales that have occurred in the past month. We go through our MLS and pick about 20 to 30 sales that have closed in the past month for this email. Many of our clients really enjoy seeing current sales, particularly if they are planning on either selling or buying a home in the near future. This can be a real help if a client is living in another state, as real estate pricing is very local. The market may be a bit slow in another state, but booming here.
On or about the 15th of each month we send an email to our client family about upcoming attractions in Maggie Valley and Waynesville. This can help visitors or second home owners plan trips that coincide with festivals, car shows or motorcycle events. If you are not currently receiving these emails on the 1st and the 15th of each month, please send me your name and email and I will make sure you are added to our list. You can reach me through [email protected].
If you are reading this, thank you, and we look forward to serving you. Remember, if you have a real estate question, please let us know. If we don’t know the answer, we can find someone for you who does.
Take the Worries out of Owning a Second Home
Here in Haywood County, and especially in Maggie Valley, we have a lot of second homes. That is homes that are owned by someone living elsewhere like Georgia, Florida, or even the flat lands of North Carolina. Many of these homes are on a vacation rental program, others are not. When you live a good ways from your second home, it can be difficult to handle many maintenance tasks from that distance. That is where Jess Osborn comes to the rescue. Many of you know Jess, as he is a Realtor® here in our office. Jess also wears another hat. He owns the company While You’re Away, Mountain Home Services. Jess has several different services that he offers. He offers a basic service that includes a thorough inspection of the property with a written report and photos of any areas of concern. Prices begin at $39.95 for once a month inspections and range to twice monthly for $69.95 , three times a month for $89.95, or four times monthly for $99.95. You choose the level of service you desire. He checks for:
- Break-ins and vandalism
- Power outages
- Broken water pipes
- Trees down on roof, driveway, yard, etc.
- Broken windows and doors
- Thermostat for heating and cooling
- Forwarding of mail if needed
- Batteries in fire and smoke detectors
- Many custom services available
- Insured and bonded
I have worked with Jess for many years and know him to be very honest and professional. I highly recommend his services. If you speak with his clients, I am sure they would also highly recommend Jess. You can contact Jess on his cellphone at 828-506-1960, email him at [email protected], or visit his website at MountainHomeServices.net.
Mortgage Rates are the Lowest Since 2016
June 28, 2019
© REALTOR® MAGAZINE
For the seventh time in the last nine weeks, the 30-year fixed-rate mortgage dropped, reaching the lowest average since November 2016, Freddie Mac reports in its weekly mortgage market survey.
“While the industrial- and trade-related economic data continues to dominate the news, the drop in mortgage rates over the last two months is already being felt in the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Through late June, home purchase applications improved by five percentage points compared to the previous month. In the near term, we expect the housing market to continue to improve from both a sales and price perspective.”
Freddie Mac reports the following national averages with mortgage rates for the week ending June 27:
- 30-year fixed-rate mortgages: averaged 3.73%, with an average 0.5 point, falling from last week’s 3.84% average. Last year at this time, 30-year rates averaged 4.55%
- 15-year fixed-rate mortgages: averaged 3.16%, with an average 0.5 point, falling from last week’s 3.25% average. A year ago, 15-year rates averaged 4.04%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.39%, with an average 0.4 point, falling from last week’s 3.48% average. A year ago, 5-year ARMs averaged 3.87%.
News on the Tiny-Home Market
Shop for your Mortgage to Save Thousands in Fees
I found the below article in Realtor® Magazine. This article makes a very valid point about saving money on up front mortgage fees:
Shopping around for a mortgage can provide savings beyond just the interest rate. Borrowers could save thousands in lender fees as well.
Borrowers who collect up to five offers from mortgage lenders could save more than $2,000 on mortgage fees, according to a new study from LendingTree of 300,000 loan offers. These extra fees include the costs for a mortgage application, underwriting, origination, appraisals, and up to 16 other fees that borrowers are charged by lenders.
Some mortgage fees are flat fees. Others may be based on a percentage of the loan amount.
“Most aspiring home buyers are focused on saving for their down payment—and they may not have budgeted for additional thousands of dollars in fees,” the study’s authors note.
About 7% of new-purchase borrowers paid no fees when taking out a mortgage, and 15% paid less than $500. On the other hand, 13% of purchase borrowers paid $5,000 in fees and 3% paid more than $10,000.
Taxes, flood certification, city and county stamps, and recording fees tend not to be negotiable. But other mortgage fees may be, researchers say.
“You can skip the back-and-forth by shopping around for the best rate and fees before you commit to a lender,” the researchers note. “In our study, we looked at the savings available to the same borrower who received offers from multiple lenders. The median spread between the highest and lowest fees proposed was $2,045 for people who received five offers or more. That’s a lot of money to potentially save.”
Appraisals Versus Online Automated Valuation Models
Many clients have complained to me about the automated valuations of their homes on Zillow and other real estate websites. It seems the automated valuations run the gamut from far too low to far too high. The below article discusses these automated valuations as compared to an appraisal done by a professional appraiser. The article is courtesy of Realtor® Magazine.
With these advances, will computers inevitably replace appraisers when it comes to valuing homes? That question is the subject of much debate. In some limited transactions, an automated valuation model may be used appropriately today instead of an appraisal. Based on the specifics of the property and the transaction details, an appraisal may be unnecessary. For example, I‘d be irate if I owned a $2 million home free and clear but had to pay a large fee for an appraisal in order to take out a $50,000 line of credit. However, if I’m looking to buy a $500,000 home with 10 percent down, is it reasonable for a lender to rely on artificial intelligence to determine whether the collateral is adequate? Not likely.
I couldn’t agree more with the sentiments of Karen Belita, a data scientist with the National Association of REALTORS®, who wrote in a blog post, “When it comes to online home value estimates, the number one caveat for consumers is that these estimates are not a substitute for formal appraisals, comparative market analyses, and the in-depth expertise of real estate professionals.” Bravo. Indeed, AVMs are not appraisals. It’s possible that as technology evolves, AVMs may be used to a greater degree. But today, in many cases, an automated valuation is suspect if there is a lack of available data or the property isn’t a “cookie cutter.” Many of us have checked our own properties against the finding of an AVM and thought, “Yeah, right.” When it comes to AVMs, your mileage may vary.
So why aren’t automated models more reliable in more transactions? Because computers don’t buy houses; people do. An AVM does a great job of analyzing tangible features such as a property’s age, number of bedrooms and baths, square footage, and lot size. However, a property’s overall appeal is something that has been, at least to date, extremely difficult to quantify. It’s a uniquely human phenomenon; a property’s overall appeal reflects a combination of characteristics. While not everyone has the same preferences, some unusual features will likely face significant market reluctance.
But wait, you say, aren’t appraisers required by the Uniform Standards of Professional Appraisal Practice to be “independent, impartial, and objective”? Absolutely. Still, appraisers are not machines. They must have relevant data and logic to support their analyses, opinions, and conclusions, but they also incorporate the concept of market value reflecting the interests of consumers who are “typically motivated” and “well-informed.”
Recognizing that AVMs play a role in developing an appraisal, the authors of USPAP acknowledge their relevance with respect to their use of regression, adaptive estimation, neural network, expert reasoning, and artificial intelligence. But appraisers remain better than AVMs at recognizing motivations and knowledge levels of market participants.
The output of an AVM is not, by itself, an appraisal. It may become a basis for one if the appraiser believes the output to be credible for use in a specific assignment. If the appraiser believes it to be credible. Today, that’s a very big “if.” So unless and until AVMs can better emulate the human factor, an ethical and competent appraiser remains indispensable.
This article was written by John S. Brenan, director of appraisal issues at The Appraisal Foundation.
