Monthly Archives: April 2023

Want to sell a house in Huntersville, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

Want to sell a house in Huntersville, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

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Want to sell a home in Monroe, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

Want to sell a home in Monroe, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

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A Lesson on Housing from the 80’s

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Doing nothing may be a lot more costly than doing something. With rates twice what they were in 2021 and the first half of 2022, many buyers are sitting on the sideline. For some, it has to do with not being able to afford the home they want at today’s mortgage rates and for others, it is not willing to accept that the low rates that were available are not only gone, but may never be available again.

In the late 70’s, rates were around 10% and in the early 80’s went up to 18%. Interestingly, many buyers went ahead and purchased at those record level highs and refinanced a few years later when rates came down. By the end of the decade, prices had continued to increase so that buyers had a significant equity in their home.

Tenants who waited for the rates to go down didn’t see savings because the price of homes had gone up. More importantly, they missed the opportunity to build equity in their home through amortization and appreciation.

If you purchased a $400,000 home today on an FHA loan at 6.3% for 30 years, your total payment with taxes, insurance, and mortgage insurance premium would be about $3,459 a month.

That payment could save you a little bit if you were paying $3,500 for rent. However, when you consider the monthly appreciation, assuming a 3% annual rate, and the monthly principal reduction due to amortization, the net cost of housing would be $2,229. You would be paying $1,270 more each month to continue to rent which would amount to over $15,000 in one year alone.

That loss would be about twice the amount of the down payment to get into the home. Furthermore, in seven years, at the same 3% appreciation, your $7,500 investment in a down payment would grow to $138,000 in equity in seven years. If the appreciation is greater than that, the equity would be much more.

You’re going to be paying rent to live in a home; you might as well benefit from the equity buildup from amortization and appreciation that is only available to the owner.

The benefit of acting now is that sales are down which are affecting prices, although not dramatically. When the Fed gets a handle on inflation, and interest rates do moderate some, more buyers will be in the market and supply and demand will again cause prices to rise. Then, you can refinance to a lower rate but your investment in the home will be at a lower basis.

To run your own numbers, use our Rent vs. Own. If you have questions, call me and I’ll explain how to use it and what to expect for the home you’d like to have.

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Just Listed! Check out this Don Anthony Realty 3 bed, 2 bath home for sale in Stanfield, NC in Island Creek!

Just Listed! Check out this Don Anthony Realty 3 bed, 2 bath home for sale in Stanfield, NC in Island Creek!

Click the link below for pictures and property details…

14586-Fiji-Ct.htour4u.com

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Over $13,000 MORE in their pocket!!! These sellers used Don Anthony Realty’s Discount Realtor program to sell a house in Mooresville, NC and it’s now SOLD! Congratulations to our clients!

Over $13,000 MORE in their pocket!!! These sellers used Don Anthony Realty’s Discount Realtor program to sell a house in Mooresville, NC and it’s now SOLD! Congratulations to our clients!

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Want to sell a house in Charlotte, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

Want to sell a house in Charlotte, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

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Want to sell a house in Mebane, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

Want to sell a house in Mebane, NC with low commission like this Don Anthony Realty client? It’s now Under Contract!

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Just Listed! Check out this Don Anthony Realty 3 bed, 2.5 bath house for sale in Charlotte, NC in Walnut Creek!

Just Listed! Check out this Don Anthony Realty 3 bed, 2.5 bath house for sale in Charlotte, NC in Walnut Creek!

Click the link below for pictures and property details…

11613-Shandon-Cir.htour4u.com

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Just Listed! Check out this Don Anthony Realty 3 bed, 2 full/2 half bath house for sale in Mebane, NC in Mill Creek!

Just Listed! Check out this Don Anthony Realty 3 bed, 2 full/2 half bath house for sale in Mebane, NC in Mill Creek!

Click the link below for pictures and property details…

408-Sam-Snead-Dr.htour4u.com

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Don Anthony Realty Reviews: “What a great experience!” says seller client who hired us to sell a home with a Discount Realtor

Here’s a review from one of our clients who hired us to sell a home in Matthews, NC with our low commission real estate agent program….

"What a great experience! I have to admit, I was a bit skeptical at first about the whole "team" process used by Don Anthony Realty to sell our home. You don’t just deal with one realtor like traditional methods. Rather, there is a team approach where one subject matter expert handles the listing, one handles the negotiations after you get an offer and one handles the closing. It worked to perfection and they all worked seamlessly together. Very innovative. And it’s not like you can’t ever go back to speak with the listing expert after you’ve been handed off to the next expert in negotiations, etc..

The team relies a LOT on emails which is a good thing because everything is in writing and documented and each and every member of the team can see your emails if you have a question or comment. But that doesn’t mean you can never speak directly with the team. You can and we did. A lot!

We had sold our own homes in the past, just paying a fee to have our homes listed in the MLS. We did the showings ourselves and then paid an attorney to close the deal. But when I saw that Don Anthony only charges 1-1.5% commission for their services, I knew it was a no brainer. And boy are we glad we did because our sale was touch and go for a while with unexpected complications inadvertently caused by the buyers. We would NEVER have had the skills and expertise to wade through the legalities and regulations that we ended up going through. Our team guided us through an intense negotiation process that ultimately led to settlement. And we were going to list the property at a lower price than what our team suggested and we would have left money on the table, netting us even bigger net proceeds than had we done this all ourselves as we had always done.

In our case, we provided the buyer’s agent with 2.5% commission so in total, we only paid out 3.5% in commissions, saving ourselves over $38,000! We keep asking ourselves why would ANYONE want to pay 6-7% commissions, as many of the big box agencies charge?

So what’s the catch you ask? There is no catch! You get the SAME EXACT service as traditional brick and mortar realty agencies. Professional pictures taken, listing in the MLS and a ton of other realty sites online, showings (we didn’t need showings because we sold the home within 40 hours after the listing went out), etc. We just can’t say enough about how professional and knowledgeable our team was and we are extremely happy with the whole experience."

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