What’s Your FICO Score? Do You Know What Score You Need to Buy a House?

03/19/2019 by Debe Leave a Comment

What’s Your FICO Score? Do You Know What Score You Need to Buy a House?

Oh the myths we hear in our business! Recently, it was reported that 24% of renters believe they need a 780-800 credit score to be considered for a mortgage. The reality is those reporters were misinformed…as were the renters who read the erroneous articles!

To begin with, only 25% of the Americans have a FICO® Score between 740 and 800. Here is the breakdown according to Experian:

16% Very Poor (300-579)
18% Fair (580-669)
21% Good (670-739)
25% Very Good (740-799)
20% Exceptional (800-850)

Just because you have a low credit score doesn’t mean you can’t purchase a home. Just as there are a multitude of options available for those with exceptional scores, there are a lot of options out there for consumers with low FICO® scores.

*“What’s our FICO Score? Can we buy a house?”*

Low or no credit score? There are many programs available with low or no credit score requirement. The Federal Housing Administration (FHA) now requires a minimum FICO® score of 580 if you want to qualify for the low down payment advantage.

The US Department of Agriculture (USDA) does not set a minimum credit score requirement, but most lenders require a score of at least 640.

Veterans Affairs (VA) loans have no credit score requirement.

As you can see, none of those programs require a credit score above 700!

Yes, it’s true that the average FICO® score for all Closed loans in January, 2019 was 726 (that includes refinances). There are plenty of home buyers and homeowners taking advantage of the low credit score requirements when purchasing or refinancing.

This graphic represents the average FICO® Score of Closed FHA Loans since April 2012 according to Ellie Mae:

Average FICO Score of Closed FHA Loans (Refinances & Purchases)

As you can see, there has been a reduction for the last seven years. In fact, for FHA Purchase loans, the average FICO® Score reported in January 2019 was 675!

Many Americans simply assume that their credit score is too low to qualify and do not even bother to check. Credit.com confirmed that only 57% of individuals sought out their credit score at least once last year.

FICO® reported that since 2009, the average FICO score has steadily increased from a low of 686 in 2009 to today’s average of 704.This graph demonstrates the increase in the average US FICO® Score over the same period of time as the graph above (2009 – 2019).

The Average US FICO Score is on the rise in 2019.

Bottom Line

A surprising 84% of Americans have a FICO score that will allow them to buy a house. If you are unsure what your score is or would like to improve your score in order to become a homeowner, let’s talk! I would love to help you set a path to achieve your dream! Call or text (704) 491-3310

What You Need to Know about the 2019 Mecklenburg County Tax Revaluation

01/25/2019 by Debe Leave a Comment

Charlotte homeowners have been bracing for big increases in the tax value of their properties since our last revaluation was done during The Great Recession. So, as you can imagine, the revaluation of real property is going to be considerably more than the ‘normal’ increases since we went from them being performed during the lowest of lows to now, the highest of highs.

Sales prices have continued to be on the rise, therefore our valuations are going to reflect that. Charlotte’s real estate market has boomed out of The Great Recession with some 70 new residents moving here each and every day.

Mecklenburg County’s property website has been slowed to a crawl as tens of thousands of residents close one eye to take a peek at their new assessed tax values. Thousands have lined up to file their appeal of the county’s valuation decision.

Why now?

Mecklenburg County reassesses property values every eight years, as does all of North Carolina. Because property taxes are a primary source for our local government, this scheduled re-calculation is a must to keep the County operating at its highest capacity.

Property taxes pay for things like public schools, community colleges, libraries, local government employees’ salaries, parks & rec, sanitation, sewer, police and fire protection, roads and other local needs. Each of these items can have its own percentage rate that is multiplied by the assessed value of your property to determine a portion of your bill. The taxes you owe for each item are totaled to determine your final property tax bill.

The Country has systematically put a price tag on every property within its borders. This value is used to calculate property tax paid to the city and county government. The property tax rate, also called a multiplier or mill rate, is a percentage by which the assessed value of your property is multiplied to determine your new tax bill. Homeowners in the city of Charlotte pay $1.31 for every $100 of assessed value — or about $5,240 for a $400,000 home.

You will receive your new valuation this month in the mail; there is no need to pay your 2019 bill at this time. Actual tax bills will go out beginning July 19, 2019. Your taxes will be due on September 1, 2019, and to avoid penalties or interest, must be paid by January 7, 2020.

The county tax assessor’s office prepared the Board of Commissioners that residential property increases would average more than 40%. I’ve spoken to many clients this week, all of whom are reporting a 33% increase in residential taxes. The new commercial tax valuations are the ones that are significant with many being 100% or higher.

Check your property tax value

If you haven’t checked the site yet or don’t know where to go to check the value of your property, visit the Mecklenburg County’s property records website and enter your address.

This will take you to a page that has the details of your home and a breakdown of the valuation (land, building, extras). The new value is in the top right hand corner. Note the hot link on the right hand side (red arrow under Assessment Details) will take you to the letter that the County is sending.

This information is valuable if you need to appeal or have the county correct any misinformation you find. Contained within the letter, you will receive an “Informal Review Form” and that MUST be completed within 30 days of receipt of your new valuation.

If you opt to appeal the valuation formally, you may file a Formal Appeal with the Board of Equalization and Review (BER) by May 20, 2019.

The new valuations (Notice of 2019 Real Estate Assessed Value letter) were mailed Wednesday, so they should start hitting our mailboxes today.

Next Steps

Contact the County Assessor’s Office at AssessorQuestions@MeckNC.gov or call (980) 314-4226 if you have questions regarding the new assessment. And, of course, I am not a CPA or tax attorney so, if you have further questions, please contact your financial planner, tax attorney or CPA.

What’s Your Charlotte, Davidson, Fort Mill or Waxhaw Home Worth?

01/13/2019 by Debe Leave a Comment

House Values in Charlotte NC — What’s My Home Worth?

Home prices have shown significant gain over the past 5 years in the Charlotte Metro region, including Charlotte’s 2018’s increase by 6.9% with a remarkable 11.3% increase in Davidson, year-over-year.

If you’re thinking of selling your Charlotte area home this spring, now is the time to begin to prepare for the market. If you’re unsure what the value of your home is, don’t hesitate to call or text me at (704) 491-3310 or email CharlotteBroker@icloud.com. Many things are taken into consideration when placing a value on your home and no online ‘system’ can adequately do so. Please don’t hesitate to call so that we can review the considerations that come into play when pricing your home.

Here are the most recent market values for Charlotte, Davidson, Fort Mill & Waxhaw:

Average Sales Prices:

Average Days on the Market

Inventory – number of months supply – <6 months = Sellers Market | > 6 months = Buyers Market

Thinking of selling your Charlotte home? Let’s talk! Call or text (704) 491-3310. Visit our seller tab above for more information on our marketing or visit 4HouseValues.com and complete the form to get an automated value; I will do the research and get back to you with an accurate valuation.

As with everything in life, preparation is key and I will equip you with what you’ll need to get you, as seamlessly as possible, through the home-selling process.

What’s my Charlotte home worth in 2019? Follow the link and complete the questionnaire – we’ll do the research and get back to you.

*References from any of our sellers are available upon request. Read our reviewswww.CharlotteRealEstateAgentReviews.com.

Hiring the RIGHT Realtor® is critical to your home selling success!

Going with the Devil You Know – Is 2019 the Time to Sell Your Charlotte Home?

12/19/2018 by Debe Leave a Comment

It’s better to go with the devil you know, than the devil you don’t.

With 2020 being an election year, uncertainty will likely fill the minds of real estate investors (including individual home buyers). It typically does and then rebounds the second half of the following year. So, 2020 and 2021 may very well be weaker markets than 2019.

Home price growth slowed a bit in the second half this year, with fewer buyers entering the market. Analysts and those with their fingers on the pulse of the real estate market believe the cause is two-fold – 1. partially due to rising interest rates and 2. home prices have gone through the roof due to low inventory (you know, supply & demand), leaving some first-time buyers in their rentals until they can come up with more money down.

If you’re currently weighing your options to sell in the next 1-3 years, seriously consider selling this year – whatever you do, don’t play the waiting game.

Here are three great reasons to sell your home in 2019.

New buyers are still entering the market.

With the available inventory remaining low and even with minimally rising interest rates, buyers who are ready to buy a home will still be shopping for their dream home.

While days on the market (DOM) in Charlotte may be a few more than the average last year, buyers remain active and the chances are high that you will profit from your home sale.

NOTE: If your house is at a higher price point in our market, there is now (and always has been) less buyer interest than those in the under $500K price range.

According to NAR (National Association of Realtors®), in March of this year, data showed that millennials make up the largest share of homebuyers – 36%. In the Charlotte market, with our employment opportunities being so high and many catering to millennials, there is a constant influx of millennial first-time homebuyers in our market.

Interest rates are still quite low. Mortgage interest rates are rising. In November, interest rates crept up to 4.87%. While interest rates are at their highest since February of 2011, they remain significantly lower than the historic high of more than 18% in 1981. Many of us remember those rates – and yes, we still purchased homes.

The equity in your home. Homeowners who bought during the recession or shortly thereafter (2008 – 2012) benefitted from historically low interest rates and significantly lower home prices. If you purchased your home during the recovery years (2012-2014), your equity has also likely risen considerably.

BONUS – The more equity you have in your home, the more you’ll have to apply to the downpayment for your next home. The higher percentage of a downpayment you make on your purchase, the better your interest rates will be (of course, your credit standing impacts your interest rate as well).

Thinking of selling this year? Let’s talk! Let’s evaluate your needs and see if your situation calls for buying or selling now or in the future. Call or text (704) 491-3310 or email me at SavvyBroker@me.com.

How Long do Homeowners Stay in Their Homes in Charlotte NC?

07/10/2018 by Debe Leave a Comment

How Long do Homeowners Stay in Their Homes in Charlotte NC?

Charlotte Homeownership Tenure Has Increased

Past data historically shows that most Charlotte residents lived in their homes for 4-5 years. With Charlotte being such a large financial, technology and healthcare city, those jobs tend to involve more relocation needs than others. Hence, the transient nature of Charlotte’s population.

However, The Great Recession changed all of that! Those fortunate enough to maintain employment during the recession were absolutely not interested in selling their homes – at all! This went on for 4+ solid years. Imagine living in a home too small or too large for you for that amount of time.

Hence, the National Association of Realtors’ (NAR) historical data on the median tenure of homeownership (same home) has changed dramatically. As the graph below shows, over the last twenty years (1985-2008), the median tenure (nationally) averaged six years. However, since 2014, that average is almost ten years – an increase of almost 50%.

Why the dramatic increase?

While Charlotte’s average is probably two to three years less than the national average, we are still seeing a considerable increase. The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move so, ‘staying put’ was their best option.

With home prices rising dramatically over the last several years, that negative equity has turned to 95.3% of homes with a mortgage, now being in a positive equity situation, according to CoreLogic.

With a much improved economy and wages on the rise, many Charlotte homeowners are in a much better financial situation than they were just a few short years ago.

One other reason for the increase was brought to light by NAR in their 2018 Home Buyer and Seller Generational Trends Report. According to the report,

“Sellers 37 years and younger stayed in their home for six years…”

Homeowners, who are either looking for more space to accommodate their growing households or for better school districts to do the same, are likely to move more often (compared to typical sellers who stayed in their homes for 10 years). The homeownership rate among younger buyers, however, has still not caught up to previous generations either.

The Bottom Line

In Charlotte, a large portion of homeowners are not in a house that is best for their current circumstances. Whether it be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo, planning to ‘grow’ their household.

These Charlotte homeowners are ready to make a move but, with the lack of housing inventory, they are facing a major challenge in the current housing market. When inventory begins to rise, we will likely see homebuyers taking the plunge.

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What’s Your FICO Score? Do You Know What Score You Need to Buy a House?

What You Need to Know about the 2019 Mecklenburg County Tax Revaluation

What’s Your Charlotte, Davidson, Fort Mill or Waxhaw Home Worth?

Hiring the RIGHT Realtor® is critical to your home selling success!

Going with the Devil You Know – Is 2019 the Time to Sell Your Charlotte Home?

How Long do Homeowners Stay in Their Homes in Charlotte NC?

How Long do Homeowners Stay in Their Homes in Charlotte NC?

Charlotte Homeownership Tenure Has Increased

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