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Greater McAllen Real Estate News & Market Trends

You’ll find my blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because I care about the community and want to help you find your place in it. Please reach out if you have any questions at all. I’d love to talk with you!

April 17, 2021

Selling a House with Foundation Issues? Here's What to Do

Home with foundation issuesTrying to sell your house if it has foundation problems is a big challenge. Most buyers do not know enough to distinguish between a foundation problem that you can repair and one you cannot. As a result, most buyers will run at the mere mention of the word "foundation problems". 

That is why some home sellers with damaged foundations resort to underhanded methods in their bid to sell the house. But this is not necessary. If your home has foundation issues and you are thinking of putting it on the market, there are legit ways to sell the property. 

Hard as it is to believe, some buyers want a house like yours. But if you don't find such a buyer, you can still sell the home to an everyday buyer. However, you have to be patient and work harder when marketing a house with foundation issues. 

But how do you even know that your home has foundation damage?

Signs of foundation damage

If the house is suffering from the following, it is okay to suspect foundation damage.

   

  • Cracks in the floor or foundation and wall fissures.
  • One part of the home appears higher of lower than other parts.
  • The ground is not level but sloping, uneven, or sagging in some places. 
  • Doors and windows are sticky and hard to close or open.
  • Cabinets are separating from walls, and the gaps are getting wider. 
  • There are gaps around the frames of windows and exterior doors. 
  • The crawl space is always damp.

The ordinary presence of these signs is not enough though. A professional evaluation of the foundation will help you know the cause, extent of the problem, and the best way to solve it. The information will influence the cost and foundation remediation and also determine the best way to approach the sales of the house.  

How to sell a home with foundation damage

How to sell a home with foundation damage

There are two options for selling a home if its foundation is damaged; you can fix the problem before you put the home on the market, or you can sell the house "as is". Each option has its pros and cons. Which is the better option for you?

Fixing the foundation before selling the house

The first problem here is the cost of foundation remediation. Repairing a damaged foundation can cost anywhere between $2,000 and $50,000. The national average is around $4,495, but the actual cost of fixing your home's foundation will depend on the problem's duration, the cause of the problem, and your location. 

Note that fixing the problem does not erase the issue; as a seller, you should still inform buyers of the history of the homes foundation. But if you choose not to, that information will eventually come to light when the buyer conducts a home inspection. Failing to disclose the problem will make buyers suspicious and more likely withdraw from the purchase.

But then, the disclosure will not automatically make buyers willing to buy the home. Most buyers don't know anything about foundation problems. Therefore, the majority of buyers will have questions about how well you did the repairs. They fear that the issue will reoccur in the future. 

One the other hand, buyers who know how to deal with a foundation problem may prefer to do it themselves because they think sellers may be motivated to cut corners. 

Selling the home "As Is"

Agreeing on home foundation repairs 

If you choose to sell the home without fixing the problem, you will avoid the cost of foundation remediation. But you will also have to drastically lower your asking price to make the house attractive to buyers. The only reason a buyer would want to buy a home with foundation damage is if the property is a lot cheaper than similar homes. 

Since you are selling the home "As Is" it is a good idea to tell prospective buyers about the problem early in the sales process. That will scare many buyers away, but it will ensure that you don't waste buyers' time and they don't waste yours. The only buyers you attract will be those ready to go through the trouble of dealing with the foundation damage. 

When pricing your home, it helps to know the cost of fixing the foundation problem. Deduct the cost from the market value of the home with a lot of wiggle room added. It is necessary because you want the cost of buying the house and fixing the problem to be less than the market value of the property. That way, the buyer can make an immediate profits. 

Which option should you choose?

If the foundation damage is minimal it probably makes sense to fix the problem yourself. But if it is significant damage, buyers will be more comfortable if they handle the repairs themselves. If you chose to sell the home in its damaged condition, selling to a property investor is often your best option. 

 

I want to personally thank Douglas Briggs from Granite Foundation Repair for this contributing story to my blog. You may reach Douglas via phone (415)251-4209 or email granitefoundationrepairtx@gmail.com. You may also use their website www.granitefoundationrepair.com

 

 

Feb. 13, 2020

Aging and Senior Care

 

 

Senior Real Estate SpecialistA very important part of our community that demands our attention is Age and Senior care resources. A fast growing segment of the U.S. population is nonagenarians. These are people in their 90s, and centenarians ,   people that have aged 100 or more. Census projections put the number of nonagenarians at 2.7 million in 2020. Centenarians are a population that have experienced depression, several wars, and all events by later generations, plus the losses of friends and family. They generally keep a positive outlook and have an innate ability to "let go" of life's sad events. However, many are unaware of the available care options and programs that can help them maintain their independence and quality of life. Caring.com is a Community Outreach and Senior Advocate group dedicated to providing the McAllen ,and surrounding communities, free resources that provide information like financial support and care options regarding senior living. As a Senior Real Estate Specialist, I feel it important to share these important free resources. Please refer to the links below to for more information: (Copy and Paste Links if necessary)
https://www.caring.com/senior-living/assisted-living/texas/mcallen

https://www.caring.com/senior-living/assisted-living/texas

Posted in Market Updates
Nov. 30, 2019

A Quarter Of All Homeowners Are Equity Rich

Over the years, owning a home has been considered a pretty safe investment. In fact, homeownership has generally been considered a good way to build wealth and boost your bottom line. That's rarely been more true than it is today. That's because, home prices have been climbing for the past several years and it's helped millions of homeowners count themselves among the equity rich. For example, a new analysis from ATTOM Data Solutions shows 26.7 percent of the 54 million mortgaged homes in the US are now considered equity rich – meaning the home's value is 50 percent more than the total amount of the loans used to finance the property. Todd Teta, chief product officer with ATTOM, says more Americans will see their equity increase as home values continue to climb. “There are notable equity gaps between regions and market segments,” Theta said. “But as home values keep climbing, homeowners are seeing their equity building more and more, while those with properties still worth a lot less than their mortgages represent just a small segment of the market.” More here.

Home Equity Soars

 

Nov. 17, 2019

Affordability Hits Highest Level In Three Years

No one buys a house without first asking themselves some questions. The most important of those questions is usually whether or not they can afford it. After all, none of the other factors that play a part in a decision to buy matter a whole lot if it isn't going to work financially. That's why a new report from the National Association of Home Builders is encouraging news. Their most recent Housing Opportunity Index found that affordability is now at its highest level in three years. In fact, the quarterly report found that 63.6 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the median income. That's an improvement over second-quarter results, when 60.9 percent of homes were found to be affordable. So what's the reason for the improvement? Well, mostly declining mortgage rates, according to NAHB chairman, Greg Ugalde. “With mortgage rates at historic lows, consumers are experiencing greater buying power and increasing affordability,” Ugalde said. And, with rates expected to stay low for the foreseeable future, that's good news for prospective buyers. More here.

Home Buying is Afforable-Rick Allen Realtor

Posted in Market Updates
Oct. 27, 2019

New Home Prices Fall To Lowest Level Since 2017

There are several reasons new homes tend to be more expensive than previously owned homes. One is that they're new. You're going to pay more for any house that has updated fixtures and features, let alone one where everything in it is brand new. But though new homes generally go for a higher price, new data from the U.S. Census Bureau and the Department of Housing and Urban Development shows they're currently more affordable than they've been in years. In fact, the median price of new homes sold in September was $299,400. That's 8.8 percent lower than they were last year at this time and the lowest new-home prices have been since February 2017. But while that's good news for home buyers who want to buy new, it didn't lead to a significant sales bump. In September, sales of newly built single-family homes were down 0.7 percent, with only the Midwest seeing an increase from the previous month. Still, despite the slight decline, sales are 15.5 percent higher than they were last year. More here.New Home Prices Lowest Since 2017

Posted in Housing Market
Oct. 22, 2019

Inventory Of Affordable Homes May Begin To Slow

When you're ready to buy a home, the market conditions you encounter will partly be determined by your price range. First-time home buyers looking for an affordable, entry-level home will find very different conditions than someone looking to spend $750,000 on a house. Why is that? Well, the short answer is inventory. How many available homes there are in a particular price range will dictate how much competition buyers encounter and how fast prices are rising or falling. These days, for example, the high end of the housing market is better balanced than the lower tiers. In fact, according to new numbers from the National Association of Realtors' consumer website, the inventory of homes available for sale above $750,000 is up nearly 5 percent year-over-year. On the other end of the market, the inventory of homes under $200,000 is down 10 percent from last year. That means, first-time and entry-level home buyers should prepare for a more competitive market than buyers of more expensive homes. And, with falling mortgage rates motivating more mid-market buyers, there is concern that inventory levels – which had recently begun to improve – may have trouble keeping up with future demand from buyers. More here.

Afforable Home Inventory Slows

 

Posted in Housing Market
Sept. 13, 2019

Majority Of Buyers Find A Home Using Their Phone

These days, there aren't many things you can't do on your phone. From grocery shopping to getting a job, smartphones have made nearly everything easier to do. And, according to new research from the National Association of Realtors, that's also true of looking for a house to buy. The data shows that the vast majority of home buyers used their phones to help search for a house. And it isn't just young people who are turning to technology to help with their home search. In fact, large majorities of buyers across all generations said they started searching homes using their phones. Among Millennial respondents, a full 80 percent said they used their phone to look for a home, with GenX buyers almost equally as likely to use a phone at 78 percent. There was a slight drop off, however, among Baby Boomers, with 68 percent of buyers between the ages of 54 and 63 saying they began their search on a smartphone. From the numbers, it's clear that the convenience and accessibility of smartphones has helped prospective buyers more easily find a home that suits their needs. They can also help buyers find an agent to work with. The survey found that nearly 20 percent of participants said that's how they found the real-estate professionals that helped them seal the deal. More here.
Using you phone to find a home

Sept. 8, 2019

New Home Market Shows Signs Of Momentum

The latest data from the U.S Census Bureau and the Department of Housing and Urban Development shows new home sales down nearly 13 percent in July. But the decreasing sales numbers are a bit misleading. That's because the decline was mostly the result of a significant revision to month-before numbers. New home sales data is an estimate based on building permits and is often revised after initial reporting. In this case, after being revised upward, the June data actually shows sales were at their fastest pace since 2007. And, even after declining in July, sales of newly built homes remain 4.3 percent higher than at the same time last year. That's encouraging news for the market. Combined with increased residential construction and moderating prices, the improvement could be a sign that the housing market is gaining some momentum. One possible reason for the positive turn is lower mortgage rates. Another is lower prices. According to the report, the median sales price of new homes sold in July fell 4.5 percent. Additionally, inventory levels improved, with the supply of homes rising to 337,000 units. At the current sales rate, that's a 6.4-month supply. More here.

New Home Sales Gain Momentum

Posted in Market Updates
Sept. 5, 2019

Have Home Prices Finally Leveled Off?

Home prices have been rising for years now. But, according to new data, they may be finally starting to level off. The numbers, from S&P CoreLogic Case-Shiller Indices – which is considered to be the leading measure of U.S. home prices – shows price increases have continued to slow. Nationally, S&P's most recent reading has them up just 3.1 percent year-over-year. Philip Murphy, managing director and global head of index governance at S&P Dow Jones Indices, says that may be a sustainable level. “Home price gains continue to trend down, but may be leveling off to a sustainable level,” Murphy said. “While housing has clearly cooled off from 2018, home price gains in most cities remain positive in low single digits. Therefore, it is likely that current rates of change will generally be sustained barring an economic downturn.” And though prices are still rising, a 3 percent year-over-year increase is actually below normal. In fact, according to an analysis from the National Association of Realtors, the average yearly increase from 1968 through 2004 was 6.4 percent. More here.

Home Prices Finally Leveled Off

 

Posted in Housing Market
Aug. 13, 2019

Home Purchase Sentiment Index Hits Record High

Americans are feeling financially confident and it's good news for the housing market, according to the latest Home Purchase Sentiment Index from Fannie Mae. The survey - which measures consumers' perceptions of buying and selling a home, job security, mortgage rates, prices, etc. - hit a new high in July. Doug Duncan, Fannie Mae's chief economist, says it's due to favorable mortgage rates and increased job confidence. “Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges,” Duncan said. “Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.” In other words, Americans are feeling good about their income and may be ready to buy. In fact, the survey found a 3 percent month-over-month increase in the number of respondents who said now was a good time to buy a house. More here.

Consumer's perception on buying and selling a home hits new high

Posted in Housing Market