Happy Mother's Day to all of the great mom's out there!  Today, for my wife's special day, she has requested that I put our waterfront tour boat in the water so that she can enjoy the beautiful shores and homes on Eagle Mountain Lake (one of our favorite things to do).  Yesterday I spent a couple of hours starting the boat and tidying up the inside to prepare for our little juant around the lake on Sunday afternoon.  The only thing that would deter us from enjoying the lake today would be the wind which can make the lake choppy and rough riding if its strong enough.  These conditions can be great for sail boat enthusiasts but I'm mostly a power boat person.  I noticed earlier this morning that it is already a little windy outside but maybe it will calm down later this afternoon.  The high today is expected to be 76 degrees which will contribute towards making for a pleasant afternoon of boating.  We take our boat down to the Fort Worth Boat Club to launch (which is just 1.5 miles from our house located in the Seville).  From there, we usually cruise around close to shore at a slow clip and watch people in their back yards, wave at friends and enjoy the beauty that all of the homes have to offer.  Sometimes we stop in Carter's Slough and tie up in the middle with our friends and their boat and relax in the afternoon sun.  Sometimes we begin the day at the Boat Club with lunch at the restaurant and other days we end with dinner.  They are used to serving those of us coming off the lake in what can be described as lake casual attire.  

Maybe you could come along with us one afternoon for a tour of the homes along the waterfront.  If you love the water and love the idea of recreating on the lake and watching people just enjoy themselves, a lake front home might be just the thing for you and your family.  Please contact us if you are interested in seeing some of the beautiful homes that are now for sale on Eagle Mountain Lake in Fort Worth Texas.

Best Regards,

Bernie

Did you know that a 1 percent rise in interest rates can wipe out a 10 percent savings in the market price of a new home?  Yes it is absolutely true!  "So what", you might say..."why is that important?" Some people (and probably most real estate agents) get so completely fixed on the market price of the home that they tend to forget the impact that interest rates have on the loan.  Yes, I know that most people are naturally concerned about the interest rate that they will pay on a home mortgage since the secured rate does have a direct impact on the monthly mortgage payment.  However, the problem is that there are many potential home buyers sitting on the fence right now waiting for the market to change (are you one of them?) out of fear that they might make a mistake if they buy too soon (see my previous blog on timing the market).  What I'm saying is...while you wait for prices to go down in a buyer's market, interest rates are generally going...up!  Yes, there are exceptions to any rule but I don't know anyone that has ever been able to time or predict when or in what direction rates will actually go such that they used the knowledge to their benefit.  People sometimes say that they want to wait for the housing market to improve before they buy, but lets be honest for moment!  As a home buyer or seller, when did you ever successfully time the market before...and save money or make money on the transaction as a result?  If you did, you were in all probability just plain lucky and they would love for you to come to Vegas and try another hand again.  Ok, let me ask the same question another way.  As a home buyer or seller, when did you ever "intelligently" time the market before...and save money or make money on the transaction as a result?  Ok...confess...I got you on that one didn't I?  Waiting out or timing the market, means that you're taking a gamble and you're probably not going to be successful in reaping a big profit or getting a steal of a bargain.  Determining the direction and momentum of the housing market is difficult for almost anyone (that goes for real estate agents and real estate consultants too) because there are various and several kinds of market and economic forces constantly at play.  Most likely, you're not going to know about the current changes in the market unless you hear about it in the news or when your barber enlightens you as you sit there in his chair on all the talk that he's heard.  By this time you hear the latest scoop from him its too late!  The word is by that time out and all of the low hanging fruit has been picked. Instead, why not buy a home when you're ready and able to enjoy it?  Time and enjoyment are of great value and importance too!  Wouldn't you rather enjoy it today at a more affordable price than buy the same home a year or two from now when prices and interest rates are both likely to be higher?  Think about it and come and see me! 

To illustrate our initial claim:

A home priced at $128,700 at a 5.87 percent rate over 30 years with 0 down payment will have a monthly payment of $760.90 (does not include taxes and insurance) and the total interest paid on the loan will be $145,225.03

The same home priced at $115,830.00 (10% less than $128,700) at a 6.87 percent rate over 30 years with 0 down payment will have a monthly payment of $760.53 (does not include taxes and insurance) and the total interest paid on the loan will be $157,963.93

Therefore; A difference of $12,738.90 in interest ($157,963.93 -$145,225.03) paid  over 30 years offsets a savings of $12,870 in price.

Conclusion: Don't wait for home prices to fall when interest rates are subject to rise.  Again, it only takes a 1 percent rise in rates to offset a 10 percent decrease (savings) in market price.  Just go and buy a home and don't worry about the market but let us show you how to do it right!

We sell homes in Fort Worth, Tarrant County and in the Eagle Mountain Lake, and Lake Worth areas.  Let me, Terri or one of our great buyer's agents show you around the place.  Please contact us...we would love to meet you and find your dream home.

Bernie

Recently I attended a Keller William's seminar wherein Mr. Gary Keller, Founder and CEO of Keller Williams Inc.® discussed how some buyers and sellers are waiting for the right time to buy and/or sell a home.  He refers to this condition as "timing the market".   In the diagram above, "The Economic Cycle of Real Estate" is my attempt to recreate the original grease pencil drawing by Mr. Keller at the seminar that he presented in one of his talks.  This diagram demonstrates that as time moves forward, the real estate market tends to cycle up and down over and again as it has historically for many years.  Driven by supply and demand, the market moves itself through highs and lows as buyers purchase and sellers sell properties.  Also, the housing market seems to be affected by a "herd mentality" in that people tend to behave or act as a whole unit.  For example, in the current cycle buyers are notoriously absent considering the fact that the local housing market is considered by many experts to be a buyer's market.  This begs the question, what are buyer's waiting for...another seller's market?  There is no question that a buyer's market favors buyers and some buyers have either not figured this out or they are waiting.  They seem to be "timing the market" by waiting until it is bottomed out so that they can get the best deal.  Yes, it is an idea worth exploring.  However, when even the best real estate sales people, consultants, mortgage brokers and other market experts cannot predict with any precision the beginning or end of a given market cycle, how then shall the average home buyer proceed in this endeavor?  Most experts agree that buyers should buy a home when they are ready to buy and that it is a bad strategy to wait for the market to change before they actually make a purchase.  Also, the same advice goes for sellers.  Sellers should not wait for the market to go up before they offer to sell their home simply because the market could actually adjust downward deflating the value of their home before it is even sold.  Now, we all know someone who got lucky in the purchase or sale of their home.  I want to emphasize the work "Lucky".  In the example above, you can see that their are both lucky and unlucky zones with a safe zone in the middle.  The problem lies with the fact that no one controls the housing market and even expert predictions end up being mostly off the mark.  The housing market is also influenced by the job market, the global and national economy and all kinds of direct and indirect factors.  The health of the local economy plays a direct role in the supply and demand for homes.  Even mortgage interest rates can adjust upward when housing costs are moving downward offsetting any potential gain from what otherwise looks like a bargain purchase.  The variables affecting home sales are simply too complex for most of us to come out top by timing the market.  Therefore, waiting for a significant change by attempting to time the market will probably not result in particular financial harm to an individual on a given purchase any more than it would particularly favor him/her on a purchase.  Most sales in any given market will inevitably occur in the safe zone (see above graph) although some speculators will occassionally get lucky and some will be unlucky.  However, the point is this...if there is no particular advantage or disadvantage in timing the market then why would you wait to buy a home? Even if you bought a home on the high side, the market will eventually adjust and displace your initial loss unless you were a very unlucky person!  The time to enjoy a home and all of its pleasures and benefits is right now! 

We sell homes and bring buyers and sellers together in Fort Worth and Tarrant County, Texas.  The housing market is very stable and the economy is fueled in part by the booming oil and gas industry in this part of the country.  Home sales in the 76179 zip code were actually up 8% compared with other areas where homes sales were generally down compared to what was happening a year ago.  We are knowledgable and experienced agents and would love to earn your trust and gain you business.

If we can be of service to you, please contact us at your convenience.

Best Regards!

Bernie