What to Expect In Real Estate in 2026

I am not a fan of making predictions! In the market, in sports betting, or whatever! Those types of decisions are above my pay grade! As in the only one who knows what is going to happen in the future of real estate or any other thing for that matter is up in heaven. I do not like to guess what will happen and that’s all predictions really are. But I am a student of the past and I like to listen to everybody else’s opinions. I’ve got two things that I will be advising my clients of this year.

Buyers. I’ve been saying for some time that the market was switching over to a buyers market. A lot of people disagree with me or don’t want to admit it. And I don’t really understand why. Once we pushed past 30 days on market. That is the thing with averages. There are always properties selling sooner than that so I think listing agents were refusing to admit that buyers are back in control of the market. That means buyers have the power to negotiate the way they didnT for so many years. Interest rates have the potential to come down to the 6% or under range. That could stimulate more buyers to jump in by lowering payments a couple of hundred dollars.

Sellers. You have got to understand that prices have to be lowered. There is a huge market out there full of other homes for sale. At this point, sellers have got to face the advice I have been telling them for a couple of years now. Pick One! Either sell your house for a high price OR sell your house quickly. You cannot have them both any longer. And, as an addition to that, I would say sellers have to step up their game a bit. Now is the time to freshe up the curb appeal or paint scheme or floors before you list the home (actually before you take the pictures to list the home).

🏡 Housing Market (Residential)

Steadier, More Balanced Conditions

• After years of volatility, 2026 is expected to feel more balanced. Buyer and seller negotiating power will even out, and bidding wars should ease.
• Inventory of homes for sale is rising, though still below pre-pandemic norms.

Prices: Slow Growth, Not Wild Swings

• Most forecasts show modest price increases nationally—low single digits rather than the double-digit runups of the past decade.
• Some local markets could outperform this average, while others may see flat prices or slight declines.

Mortgage Rates & Affordability

• Mortgage rates are likely to stay above historical lows (around the low-to-mid 6% range) but slightly improved from recent highs.
• Incomes are expected to grow faster than housing costs, nudging affordability up a bit.

Sales Activity

• Home sales are forecast to increase modestly, though stay below boom-era levels.
• First-time buyers will still face hurdles due to down payment and credit constraints, even if conditions soften.

Renting & Multifamily

• Some forecasts see rents leveling off or growing only modestly in 2026.

🏘️ Broader Trends Shaping 2026

Regional Differences Get Bigger

• Sun Belt, Midwest, and Northeast markets may diverge—some areas with job and supply pressures could outpace others.

Longer Hold Times

• Many homeowners are holding onto ultra-low mortgage rates from previous years, slowing moves and keeping supply tighter than usual.

Tech & Search Behavior

• Artificial intelligence and digital platforms will further change how buyers search, how brokers price homes, and how listings are marketed.

Commercial Real Estate

• Offices and retail are still adjusting from pandemic behavior changes, while industrial, logistics, and data-related property types are evolving.

📊 What This Means for You

If You’re Buying

Expect a more buyer-friendly market than recent years:
• Slightly better affordability than 2024–2025
• More homes to choose from
• Slower price growth — not deep discounts, but less pressure 💡

If You’re Selling

Prices aren’t expected to collapse, but the days of multiple high bids may be rarer. Smart pricing and good marketing will matter more than frenzy. 📈

If You’re Renting

Rents may moderate or grow slowly, which could help renters but keep investment property cash flow steady. 🏢

If You’re Investing

Look for regional trends and niche sectors (like multifamily, industrial, or tech-linked assets) rather than broad national plays. Diversification and local market knowledge are key.

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Bottom line: 2026 is shaping up as a transition year — less frothy, more balanced, and more predictable than the past few. Think of it as the market leaving behind turbulence and settling into a steadier flight path, with plenty of room in the local air space for variety and opportunity. I believe in the old adage that the best time to invest is when other people are not. The best time to buy is when so many buyers have walked away from the market. The best time to sell is when sellers are pulling out of the market right and left. And, most of all, if you need help buying, selling or investing, give me a call!!

Affordability

Time to deal with this word… Yes! It is a real thing! But I firmly believe it is, like most things in the atmosphere, being manipulated to serve a purposes. It exists in everything we do, but it is subjective to the situation and person. So let’s dig in to how it affects home ownership specifically. And look at 3 ways that you can make real estate more affordable. BTW, this is sort of a soap box issue for me so prepare yourself!

Affordability is simply the ability to afford something. When the entire world went on lockdown during the COVID crisis commerce and businesses suffered. Once the lockdowns were lifted and business went back to usual, companies were missing in some instances 2 years of profits. Many businesses decided to just shut down, but some, whole industries even, chose to try to make up those missing gains by hiking prices. It’s this giant cauldron of price hikes, demand for higher wages, free printed money, and people slowly re-entering the world. Heck, there are some people who still don’t enter the world! Consider for a minute all the people who still, 5 years later, work completely or even partially from home. I remember when my mom worked in Uptown Charlotte and on holiday breaks I would go to work with her. The amount of people in the sky bridge just ordering food or coffee or shopping was scary to a little kid like me. Now, there are times when Uptown still looks like a ghost town. Just the amount of traffic on a Tuesday compared to a Friday still tells the tale of businesses like lunch spots, coffee shops, gas stations, and retail stores, that just don’t have the traffic and therefore sales that they used to. So, to compensate, prices went up to make up for lost time, lost profit, or lost people.

But the housing market was something entirely different. That inflation, in my humble opinion, was ruled entirely by greed. There were way more buyers in the market than sellers. People were looking to move when work-from-home became the norm. With ridiculously low interest rates, it created buyers that weren’t even thinking of buying. Because of the competition people were offering way more money than the houses were worth, creating a giant jump in property values in Charlotte around 25% in 18 months, instead of the usual 4-6% increase we see on a normal yearly basis.

With all of the increase in prices, the increase in wages has not kept up. So if your housing went up 20% and your groceries are up 11%, but your boss only gave you an average cost of living raise of 4% at your last review and that has happened for the last 3 or 4 years (and many people have seen no raise due to those slow COVID years) then the items and the activities that you used to afford are not possible anymore.

But that doesn’t mean that NOTHING is affordable! (This is where I may ruffle some feathers.) I’ll start with groceries. Are prices through the roof? Yes! Then change the way you eat or shop. Shop at a discount store. Spend money on the things that are most important. Create a budget and shopping list and stick to it. Create a meal calendar so you know how much you need of each ingredient so you don’t end up throwing a portion away when it goes bad after you failed to use it. Reduce the amount of things that you throw away that have gone bad before you eat them. Is it more difficult to live this way? Maybe. Is is more time consuming? Maybe. What better do you have to do? Watch some show on one of the 5 streaming stations you also pay for?

Now let’s talk about real estate. The same principle applies here. You may not be able to afford what you used to be able to afford, but you can afford something. Here are a few tips that I share with clients whose budget isn’t where they would like it to be.

1. Locations. Our area is pretty accessable to get pretty much anywhere in under an hour. You don’t have to buy a house in the popular neighborhood, because by the time you are ready to sale, the popularity may have shifted.
2. Size Matters. I have long been over McMansions. No one needs 7 bedrooms. I struggle to understand how 2 people live in 4000 square feet. Consider space that does not feel confining, but also doesn’t create rooms no one ever spends time in. There is a giant trend toward cute little bungalows and tiny homes that I absolutely love! When making a shopping list for a home consider what rooms you need (bedroom, office, etc) and start there.
3. Be flexible. The biggest problem I have seen recently is sales on homes not closing because people are refusing to negotiate. Be willing to understand that you are buying a home, probably used, and not a museum. Things are going to need fixing or adjusting or redoing. You may be able to get the seller to do them, if you offer a price that wasn’t too insulting, but you also may have to do it yourself after you get that great deal. If you want perfect, buy a new home (those are on sale too).
4. Look for a deal. Yup! They are out there right now! Sellers are not listening to their agents and getting super disappointed when their home sits on the market for month after month with little to no activity. Everyone says the only way to sell is to lower your price. I think a seller can be patient or lower their price. But for a buyer, I have put in offers at $100,000 UNDER list price. So make a deal!
5. Start with a budget. Figure out how much you can afford first. Housing should be less than 50% of your income. Some financial advisors will even say closer to 30%. So what do you make a month and what can you afford to pay in mortgage. I can PROMISE you that mortgage payment is more beneficial than any rent payment even if it is cheaper or smaller or in a different location.

I grew up in a family that didn’t have much. I have been through phases of my life where I was jobless or didn’t bring very much money in. I consider myself a professional at living on less. And I will say the biggest problem I see from people who don’t think they can afford a home is waste. Whether it is a waste of space or food waste or too many clothes in your closet or things on the shelf, figuring out how to live a life with just what you need is the best way to make life so much more affordable.

❄️ How to Get Your Home Cozy and Winter-Ready

There’s nothing better than a warm, inviting home when the weather turns chilly. From sealing up chilly drafts to prepping your fireplace for those snuggly nights in, a few small tweaks now can make a big difference later. Here’s how to turn your house into the ultimate cozy haven before winter rolls in.

📸 Image Caption: A cozy living room with soft blankets, glowing candles, and a warm fire — the perfect setup for a winter evening.

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1. Kick Out the Drafts

No one likes that sneaky chill that slips under the door or whistles through a window. Take a walk around your house and check for drafts. A quick fix? Add weatherstripping around doors, caulk small cracks near windows, and pop a draft stopper (or even a rolled-up towel) at the base of doors. Make sure your windows are closed and locked. If you’re like me no love to wire out your home when the heat abates in the early fall, you may have left them just a bit undone. The lock will make sure they are properly in place to seal out the cool air. You’ll be amazed at how much warmer your home feels—without touching the thermostat.

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2. Give Your Heating System Some Love

Before you flip the switch on your heat, schedule a quick furnace or HVAC check-up. Think of it as a spa day for your heating system—it works hard all winter! And for the love of God, don’t be that person that sets the system to auto and hopes it all works out! I actually had a condo catch fire because leaves had fallen in the outside unit and ignited when the heating system started up. Also, swap out your air filters so everything runs smoothly (and so you’re not blowing dust around your living room). Bonus: A clean system uses less energy, which means lower bills.

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3. Show Your Pipes Some TLC

Frozen pipes = not fun. If you’ve got pipes in colder areas like the garage or basement, wrap them up with foam insulation sleeves. On super chilly nights, let your faucets drip just a little to keep water moving and prevent freezing or leave the cabinet doors open so the warm air gets to them when absolutely necessary. If you have a well, make sure the cover is well insulated or place a small heater on a thermostat inside the well house to warm the pump and expansion tank, expecially if you have nights in the teens. We only get a couple here in North Carolina, but it has saved me many times. Dont’t forget to check the outdoor faucets! You can buy covers for them or use the same wrap you used in the basement. Again, I had a condo where the neighbor didn’t wrap his pipes in the outdoor storage closet that burst and caused all kinds of damage. It’s a tiny trick that can save you from a major plumbing headache.

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4. Cozy Up Your Fireplace

If you’re lucky enough to have a fireplace, make sure it’s clean and ready for action. Have your chimney inspected and swept to clear out any built-up soot. If you have an outdoor fire pit, clean it out and get it ready for the season. Stock up on dry firewood. Having a storage system for wood, indoors or outdoors, will help make sure you have it ready to go when you want to use ite. If you have a gas system, light the pilot light and test it out. I used an entire tank of fuel once by just leaving the pilot light on so I am a stickler for making sure I know how to turn that off and then light it when the season arrives. If that is scary to you (because it is to me) ask the gas company to do it for you. There may be a small charge, but I would rather be safe than sorry. You’re officially set for movie nights and marshmallow roasting.

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5. Tidy Up the Outdoors

Before it gets too cold, take care of the outside stuff. Drain your garden hoses, turn off outdoor faucets, and stash away patio furniture your may not use in the colder months. I like to move my hoses indoors to keep them from becoming an eyesore in the yard. I put them under the house or in a storage area so they are ready for next year. Cleaning your gutters now means fewer ice dams and less winter mess later. And hey, give your snow shovel or ice salt a quick check—you’ll thank yourself when and if we get snow around here since all of the stores will be sold out of everything before the first flake hits the ground.

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☕ Final Thoughts

Getting your home ready for winter doesn’t have to be a big project. Think of it as nesting season—lighting candles, fluffing blankets, and making sure your space feels warm and welcoming. I like to stock up on things like sliced teas and cocoa ingreadients as well as chili and soup ingredients. It makes a big difference when I get surprised by a chilly day and just want a bowl of soup to warm me up. A few little prep steps now mean more time to relax as we go into the dark days of winter. Clocks change on Nov. 2nd, so it will be dark early very soon. An I don’t like going places or doing things after dark!

First Time Home Buyers

There is a common misconception that FHA loans were created to service first time home buyers. Maybe original they were, but now anyone with a certain credit score can get an FHA loan , and since they are federally serviced, they usually have lower interest rates, though not by much, and much lower down payment requirements. BUT There are programs out there specifically designed to help first time home buyers in this market of higher rates and lower consumer confidence. Lenders are offering amazing products to pull buyers into the market! Here are a few tips and tricks to finding the best loan deal out there for your specific needs.

First and foremost, shop around! Home loan products are just like homes…there are plenty out there for you to choose from! You can choose to use a bank that you have a relationship with, a new bank, or a mortgage broker. Every single one of them will have different programs and qualifications. I always suggest my clients go to a bank and a broker to see what their options are. Brokers work with 20 or so lenders, so even 2 different brokers will have 40 different products. Banks have very specific programs for the clientele that they service so places like credit unions offer bonuses for members but all banks have programs privately funded to reach specific groups of people. I have built a business around relationships and I work really hard to stay up with the times by meeting with those people and talking shop so I can refer my clients to a lender that can meet their needs.

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UNDER CONTRACT on this adorable home with my first time home buyers who have been able to secure over $70,000 in grant money to purchase! Their down payment in covered; their closing costs are covered; and a portion will go toward the principle to bring their payment down!

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Have a list of options or requirements for the loan officer. What is important to you?

Downpayment – 0% – 20% The more you put down now the less you have to pay interest on over the course of the loan. But if you don’t have the cash there are ways to get mortgage with 0 – 3% down.

Interest Rate – The interest rate is set, but usually as just a starting point. Based on your credit score, the individual lender can make adjustments. One offer now from many lenders are called “buy-downs”, where the lender will buy down the interest rate for the first 1, 2, or 3 years of the loan. There are a huge assortment of these type of offers in the market so ask for them and then make sure you understand it!

Term of the Loan – Traditionally mortgages are 15 and 30 years, but there are some variations now. I recently saw a loan for 40 years that allowed for lower monthly payments. There are also ARM loans out now that are regaining popularity where they offer a lower interest rate for the first 5, 6, 7 years of the loan, but you must refinance before or take the market rate at the end of that term.

Grant Money – This is where it gets interesting and profitable! There are programs out there from the federal government, state government, local governemnts, and even private organization like banks and companys that offer sums of money to use as a gift towards the loan. For example, the state of NC has a $17,500 grant for borrowers that make 80% or less of the average median income and are first time home buyers. If a lender can add that to their own options, you can stack money on top of money to get $50 – $70,000 worth of grants applied to the loan. All of those programs have requirements and specifics such as a finacial literacy class or you have to stay in the home for 7 years so make sure you understand.

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Here’s what to do:

• Interview the lender! Ask for these options. Tell them what you’re looking for and see what they have to offer. Don’t just fill out the application first without having a conversation about what you want.
• Ask for a soft pull! Allow them to go through your information and collect real hard numbers on what they can offer. This would mean filling out the application, but a soft pull doesn’t affect your credit score. If they ask you to pay for a credit report, that is likely not a soft pull.
• Stay in touch! Continue to work with the lender on each individual property that you find when you become serious about making an offer. You would hate for the location or type of property to throw you out of any of that money you thought you were going to save.

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New Construction isn’t happening so much from the big builders anymore. I am finding more new construction from small local builders with 3 or 4 units at a time. The quality is just as good, if not better, and the offerings are better since most big builders have gone to townhomes instead of single family homes.

A note about new construction…if you are building a home with a builder in a neighborhood or on your own land, STILL do all of these things. Yes, the builders in-house lender will offer a little money back to get your business (usually 4 or 5 thousand), but many lenders will match that or be able to use other programs to beat that. The builder may not choose to use any of those programs since they are already offering an incentive. And then you have a lender that is on your side and not the side of the builder, much like the agent sitting in that model home is employed by the builder and has no allegiance to you.

Your home is the biggest financial decision that you will make, no matter how many times in your life you will make it so it reserves the right to be complicated and researched and poured over. You should have to jump through hoops to borrow hundreds of thousands of dollars with just a signature promising to repay it. Loose lending laws are what caused the financial crash we saw in 2008. It should be hard to make that type of financial decision. BUT IT IS NOT IMPOSSIBLE! A young lady said to me recently, “I’ll never be able to buy a house.” That is not at all true! You can, but you must do the work, whether that means raising your credit score, or researching options available to your type of person, or looking for houses in a particular area or at a particular price point. It shouldn’t be easy! But it also should not be impossible!

What are Buyers paying for Houses?

I wish I had a dollar for every person that said something to me in the last 2 years to the effect of, “I’ll wait until the home prices come down”! I would always just roll my eyes and redirect, behind their back, of course. I knew then that there was no way housing prices would come down. To me, if housing prices go down, we’re in a recession because 08/09 is the only time that has happened and no one wants to do that again!

So I thought we should take a look at what Buyers are really paying for real estate in 2025. Here are some statistics:

The Charlotte area MLS, known as Canopy, recently released their annual report for 2024. This shows the percentage increase for the entire Charlotte area and then begins to break it down by counties. The average increase is usually around 4% – 6%. The cause of the huge increases in 21/22 were the extremely low inventory and high demand, in part created by the extremely low interest rates. Once the interest rates rose in 23/24 the growth slowed, but prices never went down. Why?

The short answer is “Charlotte”. This area is one of the fastest growing, most desirable cities in the nation. It may be the climate, the job market, or the economic opportunity, but whatever it is nothing in Charlotte is ever a bad investment. I tried to make this point a few years ago. If your interest rate is 7%, but the value of the home increases 4 -6% on average every year, you are still making money on your investment, not to mention the tax right off, home equity opportunities, personal happiness, and growth potential.

But the growth around Charlotte is not the same everywhere. Kannapolis, a town in Cabarrus county, has actually dropped in price, even with all the workthat town has down to revitalize the douwtown area. Also, the growth around Lake Norman and Huntersville were significantly smaller than other areas, potentially because those prices were already so high., but Cornelius saw double digit growth.

But I think the most important fact to consider in the chart above is the Median price for the area. In all of the training and learning that I have done for finance and budgeting, it boils down to two things, the money coming in and the money going out. If you can’t adjust one, then maybe you have to adjust the other. For example, if you can’t afford $417,893 for the median price in Charlotte, maybe you should consider an outside city like Concord at $389,185 or Gastonia at $295,000. These numbers can give a good idea of cost of living for those areas.

The hard truth is that the cost of living in the Charlotte area is high, but it is not as high as so many other places, like CA or Atlanta. The motivation to buy a home shouldn’t be price. A mortgage is just a fact of life. For every person that tells you success means living without debt, there are 2 more that will tell you that debt, especially mortgage debt, actually works in your favor because it creates wealth and net worth. The motivation to buy a house or vacation house or whatever should be just as long term and ambitious. It should be to accomplish a goal, to propel your financial net worth further, to create passive income, or to house the people you love. Charlotte is not a bad investment, no matter where or when.

My WHY…

Every year we reflect on the previous year and plan for the next. I coach agents at my firm to start that in October! I heard a great discussion recently about not setting resolutions but setting intentions, for the year, for the month, and even at the beginning of every week. I liked that idea so I am going to try that this year and see how it resonates with my personal and professional goals. But in all the research and learning (and teaching) that I have done about growth and business planning, there is one lesson that is worth the time, the read, the review, and/or the patience. The very first exercise you should do this January, whether for your professional self or your personal self, is figuring out your WHY.

It all started with me a few years ago when I was introduced to the book Start With Why by Simon Sinek. I had been in real estate for a couple of years and was doing okay, but really wanted to take my business to the next level. I had absolutely NO idea of how to do that! I was not brought up in an entrepreneurial lifestyle where you were granted freedom to dream or try or do. I was raised that you went to school, went to college, got a job, and eventually you got to retire so you could do fun stuff. (Bullshit! I wanted to do fun stuff right now! Why do fun stuff when you’re too old to enjoy it!) And real estate was beginning to show me that was a possibility. I just didn’t know where to go next. What I found from reading this book was not a magic formula for making money (pst…there are none of those), or all of the answers to “How to Build a Real Estate Empire in 30 days” (also not real). What I found was a deeply personal journey that forced me to get honest about who I was, what made me happy, and what I wanted to do.

Probably my favorite exercise that I coach agents to do when they start business planning and beginning to think about their Why or read the book, is an exercise called 7 Layers Deep. I heard it in a workshop with Dean Graziosi, Who is another author to put on your nonfiction playlist. Here’s how it works…

Ask yourself WHY you do whatever thing it is you do. “Why Real Estate?”

Answer that questions honestly. “Because I need to make money.”

Then ask yourself WHY to that answer “WHY?”

Answer that question honestly. “Because I have to pay bills.”

7-Levels-Deep-ExerciseDownload

Continue that process for 7 LAYERS (the above being layers 1 and 2). By the time you get to the end you will have an answer that guides you in everything you do and every decision you make. For me it boiled down to my need to help people (and animals). So when I am making a decision about business or life or finances or anything really, I always start there… am I helping people?

When the Broker in Charge of my firm asked me to be Operations Director 2 years ago, I asked myself that question. The answer was yes. I would be helping other agents with their business. So it was easy for me to say yes to that opportunity.

I think your WHY can change over time. I think it is very important to revisit that exercise every now and then. I very much still want to help other people, but I am starting to want to help myself a little bit more. Maybe it’s my age. Or maybe it’s some Freudian reason because no one helps me. You know, that hierarchy of needs that have to be taken care of before you can take care of others. Wait, that’s Maslow. Anyway…

I am SUPER excited about 2025! Maybe because it is a great number (25 being 1/4 of the century). Or maybe it’s because I know what I want and I’m getting closer to figuring out how to get it! Either way, I hope that you can create a plan to get exactly what you want out of life, even if it takes another quarter of a century to do it. And if you need help creating that plan or want to bounce idea off of someone, you should reach out to me. Because, remember, I am here to HELP! Happy New Year!

Building Things

I absolutely love building things! What I have learned about myself in my last decade on Earth is that I truly enjoy figuring out how to do something myself. It brings me so much joy when I have an idea or plan and it works out! But what I’ve noticed the most is that my plan never works out exactly the way I plan it. There is always some variation that, inevitably, works out better. I have enjoyed learning the faith involved in that element of building. I have built a farm, a business, a family and a home. I have many plans to build many more things in my next decade. Building things takes a little knowledge, a bit of strategy, and a lot of faith.

My best example of building things, in real estate at least, is my current house. If you are not familiar, we built a new construction home on our existing farm. I had so many plans and ideas that didn’t work out! The biggest change that had to be made was in the location of the house. I wanted it placed in the woods on the other side of the creek. We built (and paid for) a culvert, an extra long drive way, and tons of gravel that gets absolutely no use today. But in the end, the house is perfect. We have a brand new home in a great location that gave us a ton of instant equity. I brought the knowledge of how to build the house using a contractor mainly from researching and working through a million different scenarios. We strategized the entire time, learning about land development, financing rules, and building issues. But the real magic came in the faith that it would turn out for the best. And it sure did!

A more recent example of building in real estate is the new construction project that my clients recently went under contract on. It is a gorgeous new house outside of Asheville. An independent builder bought this lot in a new neighborhood and designed and began construction on the home. We went under contract when it was at about 70% complete. This is a unique dynamic where the builder agent is NOT controlling the process of the build for my clients, the way a community home builder or track home builder would. In this case, a buyer agent, such as myself, has proved to be more important than ever! I am trying to help my clients understand what they can and cannot do, since the construction is nearly complete. We recently had an issue with granite. The buyers were able to pick granite, but they didn’t like the selections the builder gave them. As always, my philosophy of real estate is that there is always a solution, so that skill has proved invaluable in new construction!

Probably my most valuable thing that I built is this homestead! It may never be complete, either. But it is truly exactly what I wanted. My goal out here on the farm is to be a self sustaining as possible. I am no doomsday planner, but I grew up in a family that grew our own food and relied on family and friends to get things done. We have been able to create that out here, on a small scale, and I have tons of plans to continue that building…like solar panels on the barn, a deck and detached garage, and increasing the garden.

Building things is my biggest goal in life! I want to build more houses. But I also want to build family and business. I want to help other people build businesses. I want to build more houses for other people. I truly enjoy watching the process, even if I end up cussing the majority of the way through, like we did on our home! That’s the proof that I’m meant to build things. I have a small amount of knowledge and plan to really increase that, maybe even getting my own contractor license. I am great at creating a strategy in all the areas of building! And my faith in the process gets stronger and stronger every time I am proved wrong! I look forward to a long line of more things to build!

Love the House…Date the Rate

Have you heard this before??

In a market of high interest rates, this is one phrase that mortgage brokers are repeating everywhere. It sort of give’s me the heebie-jeebies. And I hadn’t really understood why until recently.

Mainly, by itself, this is just bad financial advice! It’s just like so many things…if you listen to it in a vaccuum or by itself, it isn’t a good move. So let me try to explain, from a non-financial person’s point of view.

The concept is that you can refinance your mortgage at any time. But there is so much more to consider when thinking of a refinance that, without an entire conversation, that advice becomes just a sales gimmick. And here’s why…

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The length of the loan. When you took out your mortgage, it is for a 30 year note. When you choose to refinance, it is for a 30 year note. The time does not get shorter! Lets say you bought in 2010 and refinanced in 2021 when rates were 3%. You jut added 11 years on to the amount of time that it will take you to pay off your home. If you were in your 40’s when you did the refi, you will now be in your 70’s when the home is paid off. For most of us that is past the time that we would like to retire, when we would like to work less and pay less bills. Even if you have ample retirement plans (and 75% of us don’t), for possibly 10 years of your retirement you are making a mortgage payment when it could have been paid off. People do this way too often. Instant gratification will not serve your needs in the long game. And LIFE is a long game. For many people this doesn’t seem like an issue because they will buy and sell every 10 or 11 years. But it really is! Unless you are paying more towards the principle of the loan, when you go to resell, the pay off amount has just been reconfigured for a much longer amount of time.

Lower Payments Are Deceiving. When you took out the original loan at $350K, the total you would have paid the bank in 30 years is $815K with principle and interest. The banks have to pay their people. They are not a non-profit. Even when you refinance, you are paying a huge amount over to the bank. In the example I used before, you are still paying the bank $474K (for a new 30 year term). You would have paid the bank $753K even with the refi. Do you think the same house will be worth that much more in 40 years? That depends! If the value of homes appreciates in that neighborhood at an average of 2% per year for 40 years, the homes value would be $772K. But if there’s a cooling period, or a financial crisis, or a fire, or a flood… It is a lot of variables to consider when thinking about getting your money’s worth on a refinance of your home. (And don’t even get me started on refinancing your car…do the same math and you will see the answer is NO!) This might sound confusing…I said I was not financial, not not smart. It helps me to write all the numbers down. Yes, like a high school algebra problem.

But there is a way to BEAT THE SYSTEM

Take a 15 year loan! If you are going to refinance and it has been at least 10 years since you first financed, ask about a 15 year mortgage! They even make a 20 and 25 now! Don’t just take the assumptive 30 year. Yes, the payments will be higher, but you will be paying significantly LESS in interest and more towards principle. It gives you more equity and the bank less money!

Buy Points on your Rate…maybe. Sometimes the lender will apply points without you asking to get your payment to where you can manage it with your debt-to-income ratio. It’s like paying a penalty to get your interest rate down. It doesn’t go toward anything else but a fee to the bank. It may be helpful, but it is not the best solution.

Pay More on Principle. This is always the best option. The more you can put down at the begining of a mortgage the less you pay mothly and in interest. Even in a refinance, that is a great time to pay more towards the principle.

The MOST important thing is that you love your home. I can tell you from experience that if you are in a place where the energy is off, the space isn’t working for your family, the neighborhood has you stiffled, or the commute is causing you too much anxiety (just to name a few reasons people move) than it is time to find a new home. You DO NOT have to wait for the perfect market conditions. There are tips and tricks out there

What is Equity and How do I Get It?

I think this is a hard concept for people to understand. I have had to explain it a few times to new home owners. The good news is that I have seen a few examples lately of instant equity when people are purchasing homes, which is great news when buyers feel like the interest rates are high. And just like any other market anomaly, this too shall pass. So if you are considering buying, here’s an idea of how this will help you! I wanted to crunch some numbers and show how this benefits buyers in this market.

Let me give you a couple of stories of what I have seen in the market.

One recent buyer in the Mint Hill, NC area purchased a home for $374,900. The appraisal came back at $395,000!

Another buyer recently went under contract on a property for $239, 500 in the Derita area of Charlotte, NC. That appraisal came in at an $11,000 increase for instant equity.

This is happening because of exactly what buyers were hoping for…prices are coming down! There has been so little movement in the market during the past winter months that sellers are dropping prices left and right. You want a deal (as everyone seems to), buy in January or February. The prices of the homes are adjusting, but the appraisals have not caught up. Appraisers generally look at sales for the last 3-6 months. If little inventory is moving, the appraiser only sees the inflated prices that existed when the market was busy. I also look at those same numbers when helping sellers determine a list price, but I use market conditions to guide my clients. Busier market = higher list price. Appraisals do not include market conditions or fluctuations.

But what does that mean for my buyers? It’s like they walk into ownership of that property with money saved in the bank. It is not money that they can actually use. It’s a sort of credit. It increased the value of the home, but they are still paying the mortgage at the list price they agreed to. A homeowner can borrow against the equity in the home through a Home Equity Line of Credit (HELOC) or Home Equity Loan. Obviously, it is a loan of some sort and monthly payments are required and there is a fee for borrowing in the interest rate, but it can help homeowners do repairs or make improvements.

For folks who have owned your home for 10 or more years (the average time that people choose to sell is 11 years) you probably have a considerable amount of money in equity in the home. I often advise clients to use that equity to improve their home before they sale. If possible, borrow against that equity to make necessary adjustment to the condition or style of the home to get the absolute highest market value out of your home. We can list it sometimes in a completely different market bracket. Obviously we will sit down and compare the cost of the renovation with the increase in the value of the house and how close those numbers may be before making that decision. If you have to pay $10K for the reno and you’re only going to increase the list price by $10K, like any other investment, it may not be worth the work and time for the renovation. At closing the HELOC will be paid by the attorney so, in some cases, you aren’t even making a payment or paying the interest.

I look at equity a lot like I look at net worth. It’s kinda like fake money. It’s not something that you have liquid in the bank. It requires a little bit of work to get the value out of something. You have to sell an asset to make it liquid. But I do think equity is a lot easier to use than other investments. I amy be a little bias, thought, since real estate is literally what I do!

I’m on a Mission

For the last five years, I have been on a mission to create a charitable legacy from my real estate business with Giving Tree Realty and catering to cats and dogs. I have learned so much!

Number one, rescue is effing hard! It is hard, no matter at what level you participate. The people that volunteer , and stay with our rescue are some of the toughest, kindest, most endearing humans I have ever had the pleasure to meet on this planet! A lot of people like to judge the volunteers, and especially the management of a nonprofit, but I see it a lot like I see parenting. You have no idea, what they do or what they go through! So in my opinion, the only thing I can do is offer whatever support they ask for. I often reach out to our Director and say “what can I do for you?” To which she always replies already do so much. But literally, these animals would not survive if the volunteers and donators at catering to cats and dogs we’re not super committed to the work that we do.

Click HERE to look at puppies!

Number two, I’ve learned that people don’t know how to help. Everyone says “oh that’s such a cool concept”, when I explain to them how Giving Tree works, but they don’t know what to do to help. So here’s how it works… for every home that I sell Giving Tree donates 1.5% of gross commission to the rescue in my name. The more homes that I buy and sell the more money the rescue makes! Last year I donated about $1500. This year I’m on a mission to raise $5000! I’ve gotten really close to that number in years past, and I believe this year is going to be really busy in real estate. But what if you don’t want to buy or sell a house, but you still want to help the rescue? Referrals. Referrals. Referrals. I will donate $25 for every referral that you send my way! Click the link above to register –or– click the links below to our social media. But help doesn’t stop there! Spread the word! Like, share, comment, and interact with my social media. Follow the rescue. Follow Giving Tree Realty. Social media, for all its faults, has a way of connecting people with like-minded ideas!

• Facebook
• Instagram
• Pinterest
• YouTube
• Facebook
• Instagram
• Facebook

Number three, I’ve learned that I truly wouldn’t do this business. Any other way! Real estate is one of those things that you can be super successful at. I have seen the success and the failure. But I completely believe that your true fulfillment comes from Giving. I can handle all of the stress and anxiety that this industry brings a little easier when I know that I am saving furry lives like the ones below WHILE helping clients navigate the ever-changing market.

Luxio

Mila Grace

IvyAnne

Lovo

Thurgood

Waylon Jennings

Take a look at some of the furry lives we saved this year!

For some reason that I don’t understand, agents leave our firm all the time. I think in their mind they believe that they will continue the charitable legacy that they begin and Giving Tree Realty on their own (or they don’t care about the charity and didn’t belong there in the first place). I have seen firsthand how they become just the “agent”. Successful? Probably! Especially if they took any of our training classes to get there. Maybe they make a donation here and there. But it’s not always about the donation. It’s about posts like this that get the mission out not only for Giving Tree Realty but also for Catering to Cats and Dogs. It’s about the partnership that’s created between the business world and the nonprofit world. It’s about the partnership that’s created with the people involved in both institutions. And for me, it’s about doing something more that I could ever imagine!

Happy new year to everyone! I am looking forward to a successful and prosperous 2024!