By: Jeannetta Collier

I am sure you have noticed the surge of housing prices and the boom of people moving in and out of homes at record rates – neighbors selling their homes for a quick buck with no thought of where will they purchase their next house and/or calls from strangers asking if you’re interested in selling your family home well over the price you paid for it only a few years back. 

We’ve recently seen people overbidding for homes; sometimes well over the appraisal value, and the closings are moving quicker than usual, in stark contrast to years before when a home would sit on the market on average of 30 to 90 days.  Terms of it being a “seller’s market” are having those not all-too-familiar with the real estate industry jumping in head-first, but a word of caution is needed.

This is the perfect storm. 

People that had no intention of selling or moving have sold their homes and now, for some, reality has kicked in, leaving many to realize that they do not have a place to go.  They now see that the nice “chunk of cash” they received for their homes has potentially priced them right out of their own neighborhoods.

You see, when you sold your home at a higher price, the appraisal values for the other homes in the neighborhood likely rose, driving up prices for the entire area.

Oh, and did I mention that you may have to pay “property gains tax” based off the overage of what you received from the sale of your home? So, when you do the real math, you may start asking yourself, was it worth giving up your family legacy?

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Don’t fall for the okie doke.

Did you know that corporations are going into neighborhoods and purchasing lots and blocks of homes all while driving up the prices and blocking you out?

Don’t believe me?

A book, “Underwater: How Our American Dream of Homeownership Became a Nightmare,” written by Ryan Dezember, describes how, in the wake of the 2008 financial crisis, corporations began buying suburban houses in masse and then renting them out at higher-than-normal monthly fees.

. America is quickly becoming a renter’s nation. As noted, companies own around 300,000 U.S. homes because they’re wealthy enough to buy, and tech-savvy enough to manage, “multiples more” with “ruthless efficiency.”  These companies aren’t just depriving potential homeowners of a place to call their own, they’re destroying the ability for thousands of middle-class American families to accumulate wealth.

Discrimination can also be part of the problem.  In October of 2020, the National Fair Housing Alliance (NFHA), along with other groups around the country, filed a complaint in the United States District Court (Western District of Washington) against the Redfin Corporation, alleging that Redfin violated the Fair Housing Act by redlining.

According to the complaint, the NFHA alleged that Redfin, while setting minimum home listing prices in each housing market, purposefully excluded non-white people from the services that Redfin provides to buyers and sellers. The complaint states that Redfin’s policies operate as a discriminatory limit on communities of color by disproportionately withholding its services to buyers and sellers in certain communities, causing a reduction of demand and value while perpetuating residential segregation.

Let me bring this home…no pun intended. 

Do you realize that you are being squeezed out of the home buying process and don’t even see it? The NUMBER ONE way people acquire generational wealth is through real estate.  Home ownership has teeth. Owning a home gives you certain rights and a voice in the community.  Owning a home gives you access to money. You can borrow or receive cash from your home without demising the value of it and for much lower interest than a credit card or a traditional loan.  Owning a home allows you the freedom to live in your space as you see fit (with limits i.e., HOA).  Owning a home is your family’s “calling card” to leaving a legacy.

So you may be wondering, should you purchase your home now?

YES! Even with the economy on shaky grounds and home prices shooting upward, if you can truly afford to purchase a home, then I would suggest you do it. I remember when I purchased my first home in Houston, Texas at the age of 21.  The interest rate was 7.6% back then and that was with an excellent credit score.  Still today, high interest rates will likely cause your monthly mortgage payments to be slightly higher than the last couple of years, but things will eventually settle. So, if you’re going to jump in…. jump in now.

SUPPORT WITHIN THE FAMILY. A good way to help you save money, and possibly a family member who owns a home, is to move in together. Think about it. The average rental rate is $2,100 per month for a two-bedroom, so why rent someone else’s property when you can save money to buy your own house while helping someone you love pay off their home loan?

DON’T GIVE AWAY YOUR LEGACY!  When you get that knock on your door from someone wanting to purchase your home, or you get that letter in the mail because you didn’t pay the taxes on your parent’s house, or maybe you overlooked a family lot for years and now some stranger paid the back taxes of $2,000 and now owns your family’s land, take a moment and think about how you could be building wealth for you and your family. The next generation is counting on you.

Jeannetta Collier, Agent

United Real Estate DFW Properties

Commercial and Residential



Instagram: @JeannettaCollier                                                                                             Disclosure:  These are the views of Jeannetta Collier and not the views of my brokerage or broker.  Please note that I am not an attorney or and financial advisor, therefore please consult with the party or parties that