Tag Archives: Buy a home

Why Should I Work With a REALTOR®?

Current Rhode Island homeowner guidance: This archived article may contain dated examples or requirements. For current practical guidance, visit the Rhode Island First-Time Homebuyer Roadmap.

Not all real estate practitioners (Licensees) are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics.  REALTORS® are required to do more than comply with the law; REALTORS® must conduct themselves in an ethical, professional manner in all dealings with colleagues and consumers.Here are several reasons why it pays to work with a REALTOR®.
  1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.
  2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

The FED Raised Rates – Is It Still A Good Time To Buy/Sell A Home?

As was widely expected, The Federal Reserve raised interest rates, and indicated that they will continue to do so throughout the year.  This actually indicates that things are good in our economy… a positive sign that consumers are spending money, and prices are being pushed upward by the forces of supply and demand.  Interest rates are like a “brake system” on a train, when things start moving too fast apply the brakes, to slow the train down.  Likewise, when the economy starts to “move too fast”, prices are getting pushed higher (Inflation) so a slight increase in interest rates will temper, or slow down, these price increases.  Inflation, like our debt, diet, and data, needs to be managed so it  doesn’t become a problem.  Which was why The Fed repeatedly lowered interest rates during the depths of The Great Recession – to spur economic activity (buying stuff.)

1st Home Mortgage

What will this mean for me?  If you have a 30 year mortgage of $250,000, at a fixed interest rate of 5%, the monthly payment (not including taxes and insurances) would be about $1,342. A rate increase to 5.25% would raise your monthly payment by about $35.  Most consumers spend more than that on coffee every month.  Will that be detrimental for some consumers? Probably.  However, rising incomes, should mitigate that affect.  The US unemployment rate is 4.1%, and Full Employment is considered to be about 5%.  Many economists believe that this dynamic pushes wages higher so (theoretically) more people should be able to afford the extra $35/month.

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If you are considering Selling your house, you should act sooner and not later. Inventory is tight, so there is not much competition at this time; but more people may list their homes for sale increasing the competition. You best option is to contact a Full Time, Experienced, REALTOR® to get the answers to your questions for your situation.  Feel free to call me, Joe Luca at 401-580-9797.  All questions are welcomed and answers are free and without obligation.

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