NEW ORLEANS HOME BUYING SEASON 2014-© 2014 Wayne D. Lewis, Sr.

Four Things to Watch Out For in the Coming Year ©

Wayne D. Lewis, Sr.

 

 

What will this season of home buying offer to New Orleans’ buyers and sellers as we will soon be past the 2014 Super Bowl and then, marching into Mardi Gras?  Well if nothing else, this season will offer a lot of the usual attractions that make New Orleans the great city that it is.  For us, it’s the festivals, 10K races, parades, and lots of great food, and of course, our ever-changing weather.  But that’s not to say that there might not be a few great surprises in store for all of us.  I am going to out on a limb and project that there are at least 4 important things that buyers, and sellers, should be on the lookout for in this 2014 Home Buying season.  Here they are:

1. Money
2. Flood Insurance Premiums
3. Is New Orleans Home Inventory Shrinking?
4. How to Maneuver in a Growing Seller’s Market

 

Let us discuss:

• Money

Even as we speak, Wells Fargo is sponsoring a program in the Dutch Morial New Orleans Convention Center.  This program is offering potential home buyers an opportunity to get up to $15,000 in down payment assistance for qualified buyers.  One among many pluses of the $5.2 million to distribute here in New Orleans, buyers don’t have to necessarily qualify through Wells Fargo Mortgage.  You may use your own lender, such as Movement Mortgage, a Gardner Realtor affiliate.  Below is a link for you to check out Wells Fargo.  If you don’t get down to the Convention Center this weekend, check with your Real Estate agent, your lender or ,Wells Fargo for further details.  https://www.wfhmconsumerevents.com/aspx/Events/Brochure.aspx?t=1&EventID=7924

Be

 

 

• Flood Insurance Premiums

(Homeowner Flood Insurance Affordability Act (H.R. 3370).

As of today, Jan. 31, 2014, the U.S. Senate has voted to delay the Flood Insurance Premium increase for FEMA approved in 2012.  All that remains now is for Congress to approve the bill as well.  Congressman Cedric Richmond is looking for citizen co-sponsors for the bill to be approved by Congress.  Here is that link if you wish to become a citizen co-sponsor to delay the flood insurance premiums: http://richmond.house.gov/flood-insurance-newsletter . 

 

If, and that’s a BIG IF, this bill passes, we know that the next stop is President Obama’s desk.  President Obama has expressed some misgivings about the bill because it puts FEMA’s budget at risk because of all the disasters that occurred across America, but that should not deter us from making our interests known and working to keep Flood Insurance Premiums affordable, as buyers and homeowners.

 

• Is New Orleans Home Inventory Shrinking?

Although unconfirmed, New Orleans inventory of homes maybe shrinking.  What are the clues?  Here are at least three clues and how you may want to respond:

1.  Properties that are recently listed are sold quickly in a given area;
2. Properties that had been sitting on the market for quite some time, are now selling, at or just under sales price;
3. In an area where there are always homes on the market, there are none.

 

If these indicators are occurring in the New Orleans area, then it would be in the best interest of the buyer to make their best offer, quickly.  Have your Realtor check to see how quickly homes are selling not only in the area of choice, but in surrounding areas as well.  These indicators are sending a message, that if homes are fewer and fewer, then prices are going to either hold steady, or increase.

 

• How to maneuver in a Growing Seller’s Market

It is not out of the question, but it could happen again, that New Orleans rises to become a celestial Seller’s Market.  What does that mean?  For sellers: heaven!  For buyers, homes are going for a premium, and you, as a buyer, need to come game-ready (you’re a-Game) when you find the home of your dreams.  It is not a time to procrastinate, or as a home buyer, you will find yourself outside looking in.  Here are 3 things (not a conclusive list) to help you to prepare for a growing seller’s market:

1. If you are going to buy a home during the peak of home buying season, and financing is your primary option, please, please, please, get to your lender as quickly as possible.  Know up front your ability to not only buy a home, but how much you can afford.  It is key to ensure that when you find the perfect home in a Seller’s Market, you have reduced the odds of losing out to potential home-buying competitors;
2. Once you are loan approved, please, please, please, do not waste time looking at homes that are out of your approved financial range.  The drawback will be that as a home buyer, you will fall in love with a home that is priced right, and priced right out of your range, and then, as commonly happens, become discouraged.  Stay within your financial lane.  Meaning, focus on homes that you are approved for and that are affordable.  If the amount that you are approved for does not allow you to buy the type of home that you want, consult with your lender and Realtor on other options.
3. Last, but certainly not least, please, please, please, MAKE YOUR BEST OFFER!  During a Seller’s Market, the ball is in their court, as sellers.  The negotiations that may have occurred during a Buyer’s Market is not an option.  The Seller’s may counter a below listed sales price, but it will depend on how low, and the additional terms.  However, an under listed sales price offer, in a seller’s market, is begging for an outright rejection.  I’m just saying.  I’m just laying it out there.  In other words, I told you so.

 

Hopefully these four areas give each of you an insight, particularly as a buyer, as to some of the things that you should be on guard for moving into the 2014 Home Buying Season.  There will be more information coming about, and I hope that you will feel free to respond with any questions that you may have, or comments, as I will be glad to research the information that is available.

 

If you are looking for a speaker for any of your groups, please don’t hesitate to call me or email me to discuss New Orleans and the Home Buying process and how I can be of help to you as you, Make Your Best Offer.

Cell Phone:  512-786-7959
Email:  waynelewissoldit@gmail.com

Disclaimer:  Not an intent to solicit the business or clients of any agent or broker.  Information provided is deemed to be from reliable sources, but is not guaranteed.