Kalamazoo Real Estate – Home sellers too, should recognize the impact of the FHA fee increases that are set to go into effect on April 1, 2013. Yesterday we alerted all home buyers who might need to obtain FHA financing that they should try to get an accepted offer over to their lender prior to April 1st, 2013 to avoid the increase in FHA fees that will go into effect on April 1 and we explained all the implications of the FHA fee increase for home buyers.
Today, we want to think about the implications of the FHA fee increase for home sellers.
According to the ANNUAL REPORT TO CONGRESS – FISCAL YEAR 2012 FINANCIAL STATUS -FHA MUTUAL MORTGAGE INSURANCE FUND published November of 2012, FHA insurance was used for approximately 27 percent of all home purchase mortgages in 2011. 2012 and 2013 figures appear comparable but we have not found any reports with the actual rates released yet. If that rate is currently comparable, that means that, approximately 27 % of home buyers will gain a significant financial advantage by purchasing SOONER, rather than LATER! As news of the increase becomes more and more widespread, it seems likely that more and more home buyers will adjust their tentative plans and get into the market place earlier than they may have originally thought or planned.
So as a home seller it is also worth considering whether you should adjust your time frame for listing your home! Sooner may definitely give you a market advantage over later! There are almost always fewer homes on the market from January to March than in April – August when many home buyers often plan to put their house on the market. That means that if you list your home in Jan-March, your home will almost always be competing with fewer homes. That is always a good thing! We would expect that to hold true this year as well — BUT — since there will likely be more buyers seeking to avoid the increase in the FHA fees which come into effect April 1 — there will likely also be an increase in home buyers in the market now! Less competition and more home buyers means take ACTION now!
There is even one more compelling reason to get your home on the market ASAP and that is the First Time Home Buyer grant of $3000-$5000! This money is available to all first time home buyers in MI UNTIL THE MONEY runs out! We don’t know when that will be, but, we do know that many are already taking advantage of it so the clock is ticking.
Let us help you take advantage of the opportunity that the FHA fee increase, the competition pool and the grant have for home sellers! Give us a call (269-350-5514) today and we will provide a free home pricing analysis and marketing strategy guide for your home. You will learn how current market conditions impact the price of your home and what we will do to get it sold.
We will help you get your home sold…and, if you are looking to purchase again, we can help you take advantage of the near historically low interest rates before they too go up! Our economy is improving — that is fabulous news — but that will almost certainly bring about higher interest rates. Even a .25% interest rate over a 30 year period leads to a significant amount of cash. Let us help you leverage the opportunities in today’s real estate market!
Working for you!
Your Kalamazoo REALTORS, the Veenstra Team