🏠 Navigating over-valuation, homeowner’s insurance, and what to do when a sale falls through

Buying or selling a home? Here’s what you need to know͏‌ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Better] [Better]( Newsletter 🏡👻 Fund Fact: Stranger Things Season 4 wouldn’t be complete without the haunted Creel House, an iconic Victorian-style mansion in Georgia. It [sold for $350,000]( in 2019 and is now valued at nearly $900,000. Buying or selling a home? We’ve got you covered: - Three questions buyers should be asking about over-valuation - What sellers can do when a real estate transaction falls through - How much should you be paying for homeowner’s insurance? Buyers, use over-valuation to your advantage Since the pandemic, hopeful homebuyers have had to contend with record-high real estate prices, a super competitive market, and limited inventory. But this week there are signs that trends of over-valuation could be poised to nosedive in certain cities. And when it comes to effective homebuying strategies, nothing really beats being in the right place at the right time. What is over-valuation? Over-valuation occurs when the average cost of homes in a certain area is disproportionately high compared to the average income there. Most of the housing market is currently estimated to be overvalued by about 25%.1 --------------------------------------------------------------- Where could home prices fall? Inflation and rising interest rates could soon turn the tides in some super overvalued markets like Las Vegas and Colorado Springs. Experts say that inflated home prices in places like Boise, Idaho (currently ranked the most overvalued city in the country) have the furthest to fall and could dip by as much as 20%2—a significant opportunity for determined buyers who know where to target their home search. --------------------------------------------------------------- Can you extend the parameters of your search? If you can cast a wider net (say, if you have a job with remote flexibility) it might be worthwhile to explore some of these cooling markets. If you can’t, keep an eye on listing prices in your preferred areas and pay special attention to properties that have already had price cuts. Either way, speaking to an agent with local knowledge can help your search. Get pre-approved to find your homebuying budget [Get pre-approved in minutes]( Sellers, what to do when a sale falls through 15% of real estate agreements that went under contract in June were canceled.3 Here’s what you can do if this happens to you. 1. Don’t panic! There are plenty of legitimate reasons why a buyer might reconsider their offer on a home, and it might not have anything to do with the condition of the home or the price tag. High inflation combined with rising interest rates mean that some buyers might not qualify for the loan amount they intended to borrow when they originally began their house hunt. If they didn’t lock in their initial rate 2 months ago, they may not be able to afford that mortgage at today’s higher rate. Some buyers may also be reconsidering the affordability of a new mortgage with a possible recession on the horizon. --------------------------------------------------------------- 2. Put your home back on the market as soon as possible. Figure out why the buyer canceled before you make your next move. If they got cold feet about the price tag, you may need to re-evaluate your asking price and land on a number more in line with today's fast-changing market. If it was related to concerns that came up during the homebuying process, you may need to take steps to make repairs or invest in updates before the next buyer will go to the closing table. The diminishing competition in today’s market gives buyers more room to negotiate and ask for home inspections, appraisals, and other contingencies that give them an out if issues arise. Have any questions about selling? [Talk to a Better Real Estate Agent]( Are you overpaying for homeowner’s insurance? For many people, buying a home is the most significant purchase they’ll ever make. One of the best ways to protect that investment is with homeowner’s insurance—a type of property insurance covering losses and damages that occur to or on your property. Your homeowners insurance policy can provide the funds to repair or replace damaged property, and protect you from certain liabilities. Unfortunately, inflation is driving up the cost of insurance premiums—they’ve risen 11.4% between 2017 and 2020, with that number increasing monthly.4 Many households can’t afford to be overpaying for insurance, particularly during an economic downturn. Looking for more savings? Bundle insurance and save. [See what you could be saving]( Questions? Let us know purchase@better.com [415.523.8837](tel:1415-523-8837) Was this email helpful? [happy face]( [neutral face]( [sad face]( 1 Source: [Yahoo Finance]( 2 Source: [Yahoo Finance]( 3 Source: [CNBC]( 4 Source: [Fox Business]( This newsletter does not constitute an endorsement or recommendation of Better Mortgage Corporation; Better Real Estate, LLC; Better Cover, LLC; Better Settlement Services, LLC; or their services. Better Cover is solely responsible for homeowners insurance services. Better Mortgage is solely responsible for making all credit and lending decisions with respect to mortgage loans. 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