Baltimore Real Estate Podcast with Lee Tessier

What’s Next for the Lee Tessier Team?

lee@leetessier.com (Lee Tessier) — Tue, 6 Mar 2018 13:14:00 -0800

Now that we’re an independent brokerage with a new name, we’re looking to add some more great agents to our team. Interested?

As of this day forth, we are the Lee Tessier Team at Lee Tessier Real Estate. Now that we’re officially an independent brokerage, we’re also looking for additional agents to join our team.

Specifically, we’re looking for individuals who have a desire to win and know how to take care of our clients’ needs and our team’s needs. We can provide training, accountability, and mentorship.

"We’d love to sit down with you and go through everything we can offer you."

If you’d be interested in this position, you have high integrity, you’re a fast learner, and like to take care of clients, please reach out to us. We’d love to sit down with you and go through everything we can offer you.

We’re excited to move forward as the Lee Tessier Team at Tessier Real Estate, and we look forward to hearing from you.

Are You Ready for the Spring Market?

lee@leetessier.com (Lee Tessier) — Fri, 16 Feb 2018 12:34:00 -0800

What should you expect to see on the market as we transition into spring? I have information and advice that you might find useful.

Today, I’d like to talk about what we can expect in terms of the market now that we’re leaving winter behind and transitioning into spring. Spring is when the real estate market really starts to get busy. Sellers are occupied with preparing their homes for the market by painting, cleaning things out, emptying closets, making whatever repairs they need to, and freshening up the curb appeal. Buyers, on the other hand, are waiting for homes to start popping up on the MLS. However, there is a general shortage of inventory; pockets here and there have either almost none at all or plenty to offer. If you’re unsure where your location is in terms of inventory, give us a call and we can help you figure out what’s happening in your segment of the market.

"Things are starting to heat up this time of year."

For the last five and a half years, we’ve been doing “coming soon” listings. These allow you to prepare your home to list but also get some marketing done before you actually go live. We can give you more information on how you can use this to your advantage. For buyers looking for the coming soon inventory, be sure to ask our agents. We can now search for those listings in our MLS. Things are starting to heat up this time of year. You should expect to see multiple offers more and more, especially in the busy segments of the market. If you have any questions about this or would like more information on prepping your house for sale or what your home’s value is, please reach out to us. We’ll be glad to assist you.

Why You Should Put Job Changes on Hold During a Home Search

lee@leetessier.com (Lee Tessier) — Mon, 22 Jan 2018 10:30:00 -0800

When it comes to the matter of job changes, it is best to avoid alterations in your employment status until after a home purchase is complete. Here’s my advice on this kind of situation.

Today I’d like to go over what you need to know about undergoing job changes while trying to obtain a mortgage.

First, what happens if you transfer from a being a W2 employee to being self-employed or to a 1099 status?

Especially when you take on a 1099 status, most lenders are going to want to see two years of your commission before they give you a loan.

I was recently having dinner with someone whose employer informed them that they would be changing positions from a W2 to a 1099 employee. On top of that, this person was in the middle of the home buying process. This presents a major issue.

My advice to this person was to wait until the home purchase was completed to change their job status.

When it comes to other kinds of job changes, like moving within a company to another W2 position, the situation is less critical. Nevertheless, it’s still important to speak to your lender about any such developments.

"Anything that could threaten or change your ability is something your lender needs to know about."

Keeping your lender in the loop on changes in your life is very important to the success of your home purchase. Anything that could threaten or change your ability is something your lender needs to know about.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How Do the New Tax Laws Affect You When It Comes to Real Estate?

lee@leetessier.com (Lee Tessier) — Thu, 11 Jan 2018 12:05:00 -0800

How does The Tax Cuts and Jobs Act impact our local real estate market? I’ll go over a couple of important things that you should know today.

The Tax Cuts and Jobs Act has been signed into law. How do these new tax rules impact our real estate market?

One thing that had very little media presence was capital gains on primary residences. As long as you’ve lived in your home for two out of the last five years, you do not have to pay taxes on the profit of your home sale. There is a cap of $250,000 for single individuals and a $500,000 cap for married couples.

Early versions of the tax reform bill tried to do away with the capital gains exclusion completely. Then, they were going to make it so you had to live in the home for five out of the last eight years.

The good news is that the capital gains exclusion is staying exactly as it was, which is fantastic. If you bought a $200,000 house 20 or 30 years ago, it’s probably worth $400,000 to $450,000. Single people don’t have to pay taxes on $250,000 of the profit, and married couples don’t have to pay taxes on $500,000 of the profit from the home sale.

"The capital gains exclusion remains exactly as it was, which is great news for home sellers."

Investment property taxes are still deductible, as they were before. You can still write off the mortgage interest. Of course, you should verify all of this with your tax accountant, but we just wanted you to know that some of those changes real estate experts were concerned about did not go into effect.

If you are purchasing a larger or more expensive home and using a mortgage, you should be aware that the mortgage interest deduction cap has been lowered from $1 million to $750,000.

You are also now only allowed to write off up to $10,000 a year on your taxes. Although that will affect 4.1 million people nationwide, it shouldn’t affect too many people in our area.

The main thing to take away from all of this is that the capital gains exclusion is still in place, which is especially great for baby boomers looking to downsize. You will be able to sell your home and take your profit without paying tax on the capital gains.

Again, if you have questions about your specific information, please reach out to your tax accountant.

If you have any other real estate questions, please don’t hesitate to give me a call or send me an email. I would be happy to help you!

A Few Tips for Winterizing Your Vacant Property

lee@leetessier.com (Lee Tessier) — Mon, 8 Jan 2018 08:47:00 -0800

There are a few tips and tricks you need to remember if you want to keep your vacant property well-maintained this winter.

If you’re worried about your vacant property this winter, here are a few things you can do to put your mind at ease.

First, keep the heat on and make sure it’s at a minimum of 55 to 60 degrees. If you use oil or propane, make sure you have enough to get through the wintertime. We had some issues with people late last year who discovered at the last minute that their property had no oil and were stuck trying to get some on New Year’s Eve. You can use kerosene or diesel fuel to work through and clean your system, and it will run off of those things as well.

If your property is going to be vacant for a while, you may want to turn the water off. There are many home inspectors who will do that for you, so if you need a good contact for that, don’t hesitate to reach out to us.

"If your property is going to be vacant for a while, you may want to turn the water off."

If you’re worried about break-ins or having your copper pipes or HVAC system stolen and you want to periodically check on the property, you should consider installing a wireless alarm system. You could also ask a neighbor to check on the property once in a while and give them a spare key. Our office also offers a service for our clients where we check in on their properties once a week for them.

If you have any more questions about maintaining your vacant property during the winter or you have any other real estate needs, feel free to call or email us. We’d be glad to help you.

Happy Holidays!

lee@leetessier.com (Lee Tessier) — Wed, 6 Dec 2017 11:40:00 -0800

The holiday season is back already. Today, we’d like to express our sincere appreciation for all of you during this season of joy.

It’s that time of year already. I want to wish all of my friends, clients, and family a very happy holiday season.

"Happy holidays to our friends, family, and clients."

If there is anything you need during this time of year, or at any time of year, you can always reach out to us.

Without the referrals we’ve received from our past and current clients throughout the years, we would not be able to sell the volume of homes we have this year or in years past. We sincerely appreciate all of your support.

We hope you’ve had a very prosperous 2017.

If you have any other questions related to real estate or would like any more information about ways my team and I can help you, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Should You List This Holiday Season?

lee@leetessier.com (Lee Tessier) — Tue, 5 Dec 2017 09:01:00 -0800

Should you list your home during the holiday season? The answer isn’t as simple as “yes” or “no.”

Over the years, many clients have asked us whether it’s a good idea to sell during the holiday season. Well, it depends on your personal circumstances.

"Whether or not you should list during the holidays depends on your circumstances."

If there is nothing pushing you to sell, we generally suggest pulling your listing off the market by the middle of November. Then, you can relist it in a couple of months.

During that time off the market, you can even do some pre-marketing to help boost your listing’s success before it even hits the market.

This isn’t to say that selling over the holidays is impossible. There are plenty of homes selling at this time of year. If you need to get your property sold as soon as possible, you can absolutely list during the holidays.

In fact, decreased inventory during the holiday season can benefit your listing due to lowered competition.

If you are planning to list, though, I recommend having the photos for your listing taken in the spring or summer. That way, holiday decorations don’t date your photos and make it seem stale if your property takes a little while to move off of the market.

Exterior photos of your home should be taken while landscaping is still lush and green.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

We Appreciate Your Support, and Now We Need Your Help

lee@leetessier.com (Lee Tessier) — Wed, 25 Oct 2017 11:21:00 -0700

The Lee Tessier Team has been nominated once more for Harford’s Best Realtor of the Year award, and we can’t thank you enough. We hope that this year you’ll continue to support us by lending your vote.

As you may know, the Lee Tessier Team has been nominated for Harford’s Best Realtor of the Year for the past couple of years now. This year, we are continuing that tradition and have been nominated once more.

First of all, we want to thank all of our friends as well as our current and past clients for your continuing support. We appreciate everything you’ve done to help us reach the honor of this nomination.

Today, we’ve got a favor to ask. If you could take a couple minutes of your time to give us your vote, we would massively appreciate it. We’ve been the No. 1 team in the county since 2011, and we hope to continue this trend.

"We’re proud to be top agents for you."

We’re proud to be top agents for you and this opportunity would give us the chance to reach our community even further.

If you would like to support us by lending your vote, you can do so here

As always, if you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Join Us for Free Pie and Drinks

lee@leetessier.com (Lee Tessier) — Tue, 24 Oct 2017 09:01:00 -0700

I'd like to officially invite all of our friends and clients to join us for our Thanksgiving party!

I'd like to officially invite all of our friends and clients to join us Tuesday, November 21st at Liberatore’s in Bel Air from 4 p.m. to 7 p.m. for our Thanksgiving party! We'll also have food and an open bar, just like last year.

To RSVP for your pie, email Rose@LeeTessier.com and let us know if you’d like apple or pumpkin pie.

"I look forward to seeing you Tuesday the 21st!"

We can't tell you enough how much we appreciate your business and the referrals you send us. I look forward to seeing you Tuesday the 21st!

What Do You Need to Know About Short Sales?

lee@leetessier.com (Lee Tessier) — Wed, 18 Oct 2017 11:30:00 -0700

There are a significant number of short sales still happening in our market, so here’s a brief overview of how short sales work.

With the recent change we’ve seen in our market, homes values have increased, and as a result, we’ve also seen fewer short sales happening. There are still a significant number of people who are underwater at this time, though, so I want to answer a few questions you may have about short sales.

First, what does the bank do with all of the seller’s information? They gather that information to make sure that when they’re combing through your bank statements, income, and finances, everything is accurate.

For the private investors that put up the money for these short sales—say they put up $500,000, the home sells for $400,000, and they net $360,000 or $365,000 to satisfy that mortgage—where are they going to get back that $140,000 or $135,000 difference?

Many times, they get these funds back through mortgage insurance, but they have to see how those clauses were written originally. That’s why there is a lot of behind-the-scenes investigation during a short sale. Usually there are several investors, so it could be somebody that’s servicing the loan for—say— Wells Fargo. There might also be several different companies that are serviced by them. They’re gathering that information and taking it back to the investors and combing through what insurance premiums they have to offset those losses.

"There is a lot of behind-the-scenes investigation during a short sale."

After that, it’s a question of what those investors are willing to take. Sometimes they ask the seller to pay a portion of that loss. One of the other major factors to consider is tax deficiencies—maybe you lost $50,000 and now you have to claim that as income.

Sometimes it’s not just agents giving you that information, which is why it might be helpful to talk to a real estate attorney or an accountant who’s familiar with short sales. There are several people involved in the process who can help you.

If you have any more questions about short sales or need a referral for a good accountant or real estate attorney, don’t hesitate to give us a call. We’d be glad to help you.

How Can Renovations Affect Your Home Value?

lee@leetessier.com (Lee Tessier) — Thu, 28 Sep 2017 08:52:00 -0700

It may seem like a good idea to renovate certain aspects of your home before you sell, but there’s no guarantee that you’ll get a full return.

Today I want to talk to you about which improvements you can make that will maximize your home’s value.

A lot of people think that if they put in a new kitchen for $25,000, they’ll get a full $25,000 in return. That’s not always the case.

I spoke with an appraiser at a meet-and-greet this morning about whether or not a good guideline existed to gauge home value. He said that when they looked at comparable sales, he looked at other homes in the area both with and without recent renovations (like new kitchens), and compare the prices.

So in a lot of cases, you shouldn’t expect to see a dollar-for-dollar return on something like a new $25,000 kitchen, especially if it’s a custom kitchen in a higher-end home—you may only see a 50% to 60% return on that.

Be careful when you’re doing these upgrades to sell your home. Contact a professional to come out, look at your home, and do a comparable sale analysis. Have homes in the area had similar updates? If so, were they full remodels or just partial ones, where you only replaced certain features like vanities or light fixtures?

When we meet with our stager to come through the property, they’ll make recommendations such as changing the marble countertops to quartz, switching your faucets or light fixtures. Don’t be a Harry Homeowner and try to make these changes yourself without professional help unless you’re experienced—lousy renovations can seriously damage the value of your home.

"Lousy renovations can seriously damage the value of your home."

Make sure you know what you’re spending, and whether or not that will help you sell the home, and get a return on your investment. For example, some people want to get a new roof installed when the roof is 15 years old, and there are still five years of life left in it—here, you shouldn’t expect to get the $8,000 to $10,000 that you spent on it as a return. It’s not worth investing the money in. If there was water damage or missing shingles, that would be a different story.

Spend your money in the right places; that’s where contacting a professional will come in handy. Making improvements on a home that you’re going to live in for awhile is fine, and you can spend a little more on those changes, but it’s a good idea to stay away from trendy renovations. Trends come and go, and there’s no guarantee you will be doing your home a favor.

There will be a different analysis for some who bought their home 10 years ago versus someone who bought 20 years ago, just based on what they may have to do to get the home ready to sell as far as upgrades go. So just know where you’re at, and again, contact a professional to help.

If you want an accurate assessment of your house, give us a call. We’d be glad to walk through the home, give you suggestions, show how you compare to other homes, and give you a good value.

How to Hire a True Professional Real Estate Agent

lee@leetessier.com (Lee Tessier) — Mon, 10 Jul 2017 13:52:00 -0700

How can you make sure that you hire the right real estate agent to guide you through our changing market? I’ll give you a few tips today.

How can you make sure you hire the right real estate agent?

82% of homebuyers hire the first agent they talk to. Whether an agent was recommended or referred to you, you need to look at their online reviews to get a real idea of what it would be like to work with them.

We have just over 200 reviews online. Just like when you buy merchandise, you need to check the reviews. We are selling a service, so you need to look at reviews and ask yourself, “What am I getting for my money?”

Now, on the buyer side, you’re not paying the commission straight out; that’s usually paid by the seller. Still, it’s important that you hire a knowledgeable agent who will help you navigate the process.

"82% of buyers hire the first agent they talk to, but are they getting the best value?"

We have a team of real estate professionals so when you work with us, you will always have support. If you call the office and you can’t get in touch with your real estate agent, one of our licensed real estate assistants or other agents will help you with whatever you need.

It’s also important that you work with an agent who will get you good comps before you make an offer. We are seeing a lot more “For Sale By Owner” properties as the market changes. You need to know about comparable properties in the neighborhood so that you don’t pay more than you should for the home.

When that happens, the home usually fails to appraise. If the seller doesn’t agree to change the purchase price, it could cost you a lot of time and money. From the home inspection to giving notice on a rental to setting up moving companies, there are a lot of costs that come with moving.

Since there is so much that happens during a real estate transaction, it’s very important that you have professional assistance from a great real estate agent. If you have any questions or are interested in buying or selling a home, just give us a call or send us an email. My team and I would be happy to help you!

June Market Update for Baltimore

lee@leetessier.com (Lee Tessier) — Mon, 26 Jun 2017 13:17:00 -0700

Now that we’re halfway through the year, it’s as important as ever to stay up-to-date with what is going on in our Baltimore market. Here are a few of the things you need to know.

Today I’d like to talk about what’s really happening in our Baltimore real estate market.

With about 80 homes under contract at any given time, we’re now seeing pockets of both buyer’s markets and seller’s markets.

While it’s true that our local market is getting better, other states such as California, Arizona, and Florida have only about one and a half months of inventory compared to our five, almost six, months.

So, really, when you look at the market there are a number of factors to consider in terms of the big picture such as area and price point.

In Hartford County and Baltimore County, for example, homes priced $500,000 and above are moving more slowly.

"The key thing really is to know what is going on in your market including the negatives."

The key thing really is to know what is going on in your market including the negatives, whether there are a lot of multiple offer situations, and so on.

Oftentimes in this competitive market, issues occur when a seller is confronted with the prospect of needing to make repairs but is hesitant because they feel they are safe as a result of having multiple offers.

Unfortunately, this can result in the home going back up on the market, causing it to take longer to sell.

There are some issues going on in today’s market. But ultimately, these can be worked with as long as you are aware and your agent is proactive.

If you want more information or have any questions, we welcome you to call or email us. We look forward to hearing from you.

Be Careful of Zillow's Zestimates

lee@leetessier.com (Lee Tessier) — Wed, 31 May 2017 08:24:00 -0700

Whether you're buying or selling a home, you've probably come across Zillow and their Zestimate tool. Allow me to explain why you should tread lightly with the Zestimate and your home's value.

We have a lot of clients who get worked up over Zillow and their Zestimates. However, these Zestimates—Zillow's home value estimation tool—are wildly inaccurate sometimes. In fact, the Zillow CEO actually sold his house in 2016 for 40% less than what his site's Zestimate said it was worth.

Zillow hasn't walked through your property and they don't know about any upgrades you've done, and they can't factor in location. Your home's upgrades compared to features of other homes that have recently sold are crucial in determining its value. Zillow aggregates and average of area home values rather than doing a fine-tuned valuation of your property.

"Many sellers price their home inaccurately because of a Zestimate."

This is especially true with the market moving at as fast of a pace as it is right now. Many sellers think they can do it all on their own, but we see them end up pricing their home inaccurately thanks to a Zestimate.

Similarly, when buying a home, you want a real estate agent to help you compare properties to determine values of the homes you're looking at since Zestimates can be so far off. Zillow is the top website for real estate searches right now, but you need to work with an agent to see how homes you're interested in compare.

If you have any questions about Zillow when buying or selling a home or you'd like to know what your home is really worth, give us a call or send us an email. We'd be glad to help.

What’s the Latest News From Our Baltimore Market?

lee@leetessier.com (Lee Tessier) — Fri, 28 Apr 2017 10:14:00 -0700

Our Baltimore market is hot right now, but that doesn’t mean buyers and sellers don’t need to be mindful of a couple things before making a move.

Spring has brought us some nice weather, but what’s happening in our market right now?

Things are very busy and very hot. One thing I’ve been noticing lately, though, is home sellers thinking they don’t need to stage, declutter, and depersonalize their home before listing it.

If you’re a seller, you still need to prep your house for the market. If you need painting or carpeting done, make sure you do it ahead of time. You can also make use of “Coming Soon” signs so that people know you’re getting ready to put your home on the market while you’re prepping it. Like I said, our market is very busy, and I don’t want you to enter into it with false expectations.

"Finding the best financing is just as important as finding the right house."

I’ve talked to our own stager about this problem and she said in today’s market, some people are skipping the staging process in the beginning because they assume their home doesn’t need it. Sure enough, these same people are calling her a month later after they see their neighbor’s house sell and their own stay on the market.

On the buyer side, we’re seeing multiple offers on a lot of properties, so the first-time homebuyer market is very active. The move-up market above the $500,000 range is slightly slower, though. Interest rates are still very low and could possibly dip again, but we’ll see what happens over the summertime because last year they decreased during the summer months.

If you have any more questions about our market or are looking to buy or sell a home, please give our office a call. We look forward to helping you.

Are You Paying Cash? The Importance of Home Financing in Today's Market

lee@leetessier.com (Lee Tessier) — Fri, 10 Mar 2017 14:09:00 -0800

Unless you're one of the lucky 10% of people who can buy a home with cash, you'll need to secure financing to buy your house. Here are some of the important details to keep in mind about finding the right home loan.

When you buy a house, financing plays an extremely important role, and you have a lot of options.

Getting financing for a home is also very different than it was in recent years when the joke was that if you could fog a mirror, you could get a home loan. Now, lenders want to see all your financial records and many other things.

There are many types of home loans, including USDA, VA, FHA, and conventional loans. For example, I recently had a client's parent call me wanting to help their kid out. They wanted their kid to be able to buy their next house without having to sell their previous home first, so we discussed the parents possibly paying down the old house and some other strategies.

Finding the best financing is just as important as finding the right house.

We're always happy to answer questions about financing for you.

There is also a lot of grant money available for first-time homebuyers. Some of it is worth taking the time to obtain, but you need to be aware of all the facts surrounding them. For instance, you might get a $5,000 grant but not realize that you have to pay it back when you sell the house. Some grants, on the other hand, are forgivable after five to 15 years.

We work with an assortment of lenders, and it's good to know who has certain programs available. Of course, we're happy to provide you with any and all information you need. For instance, there might be a doctor's loan available for someone who just got out of medical school and has an income that's not yet close to where it will be in a year or two. There are also a lot of programs for first-time homebuyers. We're also seeing first and second mortgages gain popularity again as well.

Remember that obtaining the best financing is just as important as finding the right house. Make sure you speak with an agent to walk you through the process and get direction to the right people to help you find the best option.

If you have questions for us, don't hesitate to give us a call or send us an email. We'd love to help you with your real estate and financing needs!

What’s Happening in Our Investor Market?

lee@leetessier.com (Lee Tessier) — Wed, 1 Mar 2017 13:19:00 -0800

Our investor market is super busy right now, so if you’re thinking about buying an investment property, here’s what you need to know.

Today I want to discuss what’s happening with our real estate market in terms of investing.

Be prepared so you don’t spend time debating about whether to make an offer.

In short, our investor market is super busy right now. We’re seeing a lot of properties sell before they even hit the market and multiple offers happening on foreclosure properties.

If you’re thinking of buying an investment property, make sure you get your financing in place because you will be competing against a lot of cash offers out there. The stock market has done so well recently that it has allowed a lot of people to become cash buyers.

Due to an accumulation of multiple offer situations, you should also be prepared to make an offer that’s over the list price. If you’re not prepared and spend too much time thinking about making an offer, another investor is going to swoop in and steal the property right from under your nose.

If you have any questions about investing in real estate, feel free to give us a call. We’d be glad to speak with you!

How to Buy a Home With Propane and/or Oil Tanks

lee@leetessier.com (Lee Tessier) — Mon, 30 Jan 2017 08:54:00 -0800

When you buy a home, you need to know everything about the propane and oil tanks. Who owns them? Have they been tested recently?

When buying a home in the Baltimore area, you need to be aware of propane tanks and oil tanks.

As a buyer, you need to know who owns these tanks and whether they've been tested. Always ask your agent who owns the tank; they can talk to the listing agent and find out.

If you have a smaller tank, it's likely just used for cooking. If you're looking at a home that uses propane for everything (cooking, hot water, and heat) then you'll likely have a much larger tank. In that case, it will likely be a 500- or 1,000-gallon tank. These tanks can either be above or below ground.

You really want to be careful with these tanks and be sure that the home seller owns them. If not, hopefully they'll have information about the company that owns the tanks. Make sure you clarify this at the settlement table.

Heating oil is used for hot water and heat. Usually, you'll have a 275-gallon tank in the basement or outside. Larger homes might even have an underground tank that's 500 or 1,000 gallons. I definitely recommend having these tanks tested. If they haven't been tested in the last five years, let the listing agent know that you wish to have them tested. You don't want to move into a house with contaminated dirt.

One thing you don't want is to move into a home with contaminated tanks.

I hope this information is helpful to you as you look for your next home. If you have any questions for us, don't hesitate to give us a call. We'd be happy to help.

How Rising Rates Impact the Baltimore Market

lee@leetessier.com (Lee Tessier) — Thu, 5 Jan 2017 08:00:00 -0800

The market is really heating up thanks to rising interest rates and the start of the new year. If you were on the fence about buying or selling, you might want to come down. Here's why.

Happy New Year! We're already getting to the point where things are picking up in the Baltimore real estate market due to rising interest rates from December and the Fed saying they will go up in the next two quarters. We were lucky to see rates below 3% as we're now approaching 4.5%, and I think we'll be in the 5% range before the end of the year.

This has already started pushing some buyers off the fence and into the market to buy a home before rates go up again. With the holidays being over, we're already starting to see more showings and sales. If you're thinking about selling, reach out to us soon to get an appointment set up. There are also many 'coming soon' houses that will be on the market this time of year, and we're expecting a very busy spring due to the rise in rates.

Basically, a 1% rate increase raises the cost of a house by 10%. If you could afford a $350,000 house and rates went up 1%, you would only be able to afford a $315,000 house. Rates don't always change based on the stock market, but rather the bond market. If you see interest rates starting to tick up, don't be surprised. It's also predicted that in 2018, we'll see two or three more increases in rates.

A 1% rate increase raises the cost of a house by 10%.

If you have any questions about the market, interest rates, or your home's value, give us a call or send us an email. We look forward to helping you.

Happy Holidays From the Lee Tessier Team

lee@leetessier.com (Lee Tessier) — Mon, 12 Dec 2016 11:46:00 -0800

We had our best year yet in 2016 and as we approach Christmas and the New Year, we want to reach out and thank you.

It's hard to believe, but Christmas is almost here. I wanted to reach out and wish you and your family a very merry Christmas and a happy New Year!

We had our best year yet in 2016, and we appreciate you helping us get there. Thank you for letting us serve your real estate needs and trusting us with your referrals.

We look forward to a prosperous 2017 and hope you have a healthy and happy Christmas and New Year.

If you need anything, we're always here to help. Just give us a call and we'd be happy to speak with you.

Join Us for Free Pie and Drinks

lee@leetessier.com (Lee Tessier) — Wed, 16 Nov 2016 11:59:00 -0800

I'd like to officially invite all of our friends and clients to join us Tuesday, November 22nd at Liberatore’s in Bel Air from 4 p.m. to 7 p.m. for our Thanksgiving party! We'll also have food and an open bar, just like last year.

We can't tell you enough how much we appreciate your business and the referrals you send us. I look forward to seeing you Tuesday the 22nd!

Which Questions to Ask When House Hunting

lee@leetessier.com (Lee Tessier) — Mon, 14 Nov 2016 09:52:00 -0800

If you're in the market for a home, you need to ask the right questions. Today we have a set of preliminary questions that every house hunter should be armed with.

When house hunting, there are a lot of questions you should ask in order the find the right home at the right price and in the right condition. First, you’ll want to have a consultation with your buyer's specialist to go through all the things that are important in terms of wants and needs in your next home—the needs are always the most important. We also want to drill down on the wants as well so that everyone is on the same page. Since there is never a truly perfect home, we want to focus on hitting all the needs. Buyers always have a laundry list of wants, but what are you willing to sacrifice because of pricing or inventory?

Be sure all your needs are covered before focusing on the wants.

When you see a home, one of the first things you should ask is how many days it has spent on the market. If it's a hot property that shows well and is priced appropriately, it could go in as quickly as one to three days. Sellers who start with their price too high and are forced to come down may be on the market for closer to six months. Then, you'll want to look at the updates and overall condition of the house. Look at the major mechanicals of the house, like the roof and whether there have been water or mold issues, for example. Ask your agent about the things that they run into on a regular basis. If you’d like a full list of the questions you should be asking as a Baltimore home buyer, reach out to us by phone or email and we'd be happy to set you up. We want to make sure the home buying process is a great one for you.

Baltimore Real Estate Agent: How to Buy and Sell a Home Simultaneously

lee@leetessier.com (Lee Tessier) — Thu, 13 Oct 2016 13:32:00 -0700

Some of our clients worry about being able to find a new home after selling their current one. We don’t often see issues with this today, but there are certainly instances of this in more of the hot pockets of Baltimore and Harford County.

If your home does sell really quickly, generally we can negotiate a home-of-choice contingency for you to be able to find a home, and sometimes we can get that extended, if need be.

We are often able to negotiate rent-backs and extensions with buyers.

For example, recently, one of our clients was not able to find a home that they liked within that 30-day time frame, so we were able to negotiate another 30 days, plus a rent-back period. This was a win-win for both these sellers and the buyer who purchased their home, since the buyer knew that they would still be able to buy the house and the sellers were given an additional 60 days after settlement to move out. This gave these sellers a 120-day period to find a house.

A good real estate agent will be able to help you through this process so that you don’t have to worry about ending up homeless after your home sale.

If you have any other questions about buying and selling a house simultaneously, feel free to give us a call or send us an email. We’d be happy to help you!

Baltimore Real Estate Market Snapshot

lee@leetessier.com (Lee Tessier) — Thu, 22 Sep 2016 11:19:00 -0700

The market was really busy throughout the summer, and we’re starting to see a little bit of a shift happening across the whole country. There is a slight uptick in days on market, we’re seeing some prices decrease a little bit, and it’s taking a little longer to sell homes. However, I think we’re a little more protected here in the Maryland area.

There are certain pockets that are super busy. In certain areas there is a ton of inventory; in other areas there is next to no inventory. There are properties selling with multiple offers in as little as three or four days, and others still sitting on the market after several months. The latter case has caused the slight depreciation in price.

We’re seeing interest rates still holding right now.

We’re seeing interest rates still holding right now, and we think it will stay that way throughout the election period. Depending on who gets elected, that may shift slightly afterward, but I would not expect that we see much of a change in the next several months.

If you have any further questions about the real estate market, feel free to give me a call or send me an email. I look forward to hearing from you.

The Baltimore Real Estate Market Is Buzzing!

lee@leetessier.com (Lee Tessier) — Mon, 18 Jan 2016 07:08:00 -0800

There are many great Baltimore area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (410) 638-9555 for a FREE home buying or selling consultation to answer any of your real estate questions.

I would like to take a minute to wish everyone a happy New Year! I hope your holiday was fantastic. Since the holiday season, we've experienced a booming housing market here in Baltimore.

We're seeing an extremely busy market from buyer activity and low inventory. It's busier than usual because it's warm outside and interest rates are going up. Last month, the Feds raised their rates 0.25%. While this hasn't affected mortgage rates yet, they are predicted to continue to climb over the next couple quarters.

A 1% interest rate increase might not seem like much, but if you're a buyer, you're purchasing power goes down 10%. That means if you're looking at $300,000 homes and the rates go up 1%, you can only afford to look at $270,000 homes. Take advantage of the market now while rates are still low.

Inventory is a little dismal right now. However, more homes are coming onto the market now that the holidays are over. Homeowners have been prepping their properties for the market over the winter to list in the spring.

If you're thinking of selling, my team and I can do a market analysis for you to go over. We also offer marketing, staging, and professional photography. We recently added a Matterport Camera, which allows home buyers to take a 3D tour of your property online.

If you're thinking of buying, we also have access to a lot of homes that are not on the market. We work with Wells Fargo foreclosures and investors who rehab and sell homes, so we have access to those as well.

Finally, if you have any real estate questions at all, give us a call or send us an email. We would be happy to help you!