Rhode Island Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.premrg.com/blog/Copyright PremRG.com2024-03-26T08:24:07-07:00tag:premrg.com,2012-09-20:6972What Every Homebuyer Should Know About Closing CostsWhat Every Homebuyer Should Know About Closing Costs
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Before making the decision to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buy</a> a home, it's important to plan for all the costs you’ll be responsible for. While you're busy saving for the <a href="https://www.simplifyingthemarket.com/en/2024/02/26/the-truth-about-down-payments/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">down payment</a>, don't forget you’ll want to prep for closing costs too.
Here’s some helpful information on what those costs are and how much you should budget for them.
What Are Closing Costs?
A recent article from Bankrate <a href="https://www.bankrate.com/mortgages/understanding-the-closing-process/" rel="noopener noreferrer" target="_blank">explains</a>:
“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”
Simply put, your closing costs are the additional fees and payments you have to make at closing. According to <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">Freddie Mac</a>, while they can vary by location and situation, closing costs typically include:
Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services
Tax service fees
Survey fees
Attorney fees
Underwriting Fees
How Much Are Closing Costs?
According to the same Freddie Mac <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">article</a> mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget.
Let’s say you find a home you want to purchase at today’s <a href="https://www.nar.realtor/newsroom/existing-home-sales-vaulted-9-5-in-february-largest-monthly-increase-in-a-year" rel="noopener noreferrer" target="_blank">median</a> price of $384,500. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,690 and $19,225.
But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
Make Sure You’re Prepared To Close
Freddie Mac provides great advice for homebuyers, <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">saying</a>:
“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”
The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way.
Bottom Line
Planning for the fees and payments you'll need to cover when you're closing on your <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home</a> is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process.2024-03-25T08:22:00-07:002024-03-26T08:24:07-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6578Why Pre-Approval Is Your Homebuying Game ChangerWhy Pre-Approval Is Your Homebuying Game Changer
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If you’re thinking about buying a home, pre-approval is a crucial part of the process you definitely don’t want to skip. So, before you start picturing yourself in your new living room or dining on your future all-season patio, be sure you’re working with a trusted lender to prioritize this essential step. Here’s why.
While <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home price</a> growth is moderating and <a href="https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> have been coming down in recent weeks, <a href="https://www.simplifyingthemarket.com/en/2023/11/28/are-the-top-3-housing-market-questions-on-your-mind/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">affordability</a> is still tight. At the same time, there’s a <a href="https://www.simplifyingthemarket.com/en/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">limited number of homes</a> for sale right now, and that means ongoing competition among hopeful buyers. But, if you’re strategic, there are ways to navigate these waters – and pre-approval is the game changer.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know more about pre-approval. As part of the homebuying process, a lender looks at your finances to determine what they’re willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Getting pre-approved starts to put you in the mindset of seeing the bigger financial picture, one step at a time. And the key is actually more than just getting a pre-approval letter from your lender. The combination of pre-approval and strategic budgeting is your golden ticket to understanding what you can actually afford. It saves you from painful heartaches down the road so you don’t fall in love with a house that might be out of reach.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
But that's just the beginning. Let’s face it, there are more people looking to buy than there are homes available for <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sale</a>, and that creates competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you get ready to make your move. But getting pre-approved for a mortgage can help you stand out from other buyers.
In today's fast-moving housing market, having that pre-approval in your back pocket can be your secret weapon. When sellers see you're pre-approved, it tells them you're a strategic and serious buyer. In a world of multiple offers, that's a big deal. As an article from the Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows sellers you’re more than just a window shopper. You’re a buyer who’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or issues. Sellers love that because they see your offer as a reliable one. A win-win, right?
Bottom Line
So, before you start mentally arranging furniture in your dream home, work with a trusted lender to get your pre-approval set. It’ll save you time, stress, and a lot of headaches that could come up along the way without it. The reality is, the more prepared you are, the more likely you are to land the home you’re longing for.2024-01-03T09:39:00-07:002024-01-04T09:41:11-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6543Retiring Soon? Why Moving Might Be the Perfect Next StepRetiring Soon? Why Moving Might Be the Perfect Next Step
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If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.
Fortunately, you may be in a better position to <a href="https://www.simplifyingthemarket.com/en/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">make a move</a> than you realize. Here are a few things to think about as you decide whether or not to sell and make a move.
How Long You’ve Been in Your Home
From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">rising</a> today, meaning many homeowners are living in their houses even longer (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Homeowners-Are-Living-In-Their-Homes-Longer-In-Recent-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Homeowners-Are-Living-In-Their-Homes-Longer-In-Recent-Years.png" /></a>
When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">life changes</a> and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
How Much Equity You’ve Gained
Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home price appreciation</a>. Data from the Federal Housing Finance Agency (FHFA) <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" rel="noopener noreferrer" target="_blank">illustrates</a> that point (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-How-Home-Prices-Have-Grown-over-Time.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-How-Home-Prices-Have-Grown-over-Time.png" /></a>
While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.
Consider Your Retirement Goals
Whether you're looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">shares</a> that for recent home sellers, the primary reason to move was to be closer to loved ones.
Whatever your home goals are, a trusted <a href="https://www.simplifyingthemarket.com/en/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate agent</a> can work with you to find the best option. They’ll help you <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sell</a> your current house and <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">guide you</a> through buying the home that’s right for your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore the available homes in our area.2023-12-28T02:55:33-07:002023-12-28T02:57:00-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6405Preserving the Past: A Guide to Historic Homes in Rhode IslandStepping into a historic home in Rhode Island is like stepping into a time capsule—each creaky floorboard and intricately carved doorway telling a story of a bygone era. However, as captivating as these homes may be, they often come with a unique set of challenges in terms of preservation and renovation. In this blog, we'll explore the delicate balance of maintaining the charm of historic homes in Rhode Island while embracing modern living.
Historic homes, while rich in character, can present preservation hurdles. From aging foundations to outdated electrical systems, these gems require a thoughtful approach to ensure they stand the test of time. Many homeowners find themselves torn between preserving the historical integrity of their property and incorporating modern amenities that suit contemporary lifestyles.
Enter the delicate dance of preservation and renovation. Striking the right balance involves a nuanced understanding of historical architecture, local regulations, and innovative renovation techniques. Choosing materials that echo the home's original construction while integrating energy-efficient solutions can breathe new life into these time-honored residences.
Preserving a historic home isn't just a nod to the past—it's an investment in the future. These properties often carry a unique charm that can't be replicated, making them sought-after in the real estate market. By carefully preserving and tastefully renovating, homeowners not only contribute to the preservation of local history but also enhance the value of their property.
For those embarking on the journey of historic homeownership in Rhode Island, partnering with experts like Century21 Limitless PRG is a game-changer. Their seasoned professionals specialize in historic homes, offering a wealth of knowledge on preservation, renovation, and navigating local regulations. With Century21 Limitless PRG by your side, turning your historic house into a modern haven becomes a seamless and rewarding experience.
Preserving and renovating historic homes in Rhode Island is not just about maintaining the past; it's about creating a living legacy. With the right approach and the expertise of Century21 Limitless PRG, homeowners can embark on this journey with confidence, ensuring that these architectural treasures continue to weave their stories for generations to come.
Ready to embark on your historic homeownership journey? Contact Century21 Limitless PRG today and let their experts guide you through the seamless preservation and renovation of your Rhode Island historic home. Your piece of history awaits—a timeless blend of past and present.2023-11-27T13:33:11-07:002023-11-29T07:54:55-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6403Is Wall Street Buying Up All the Homes in America?Is Wall Street Buying Up All the Homes in America?
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If you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buying a home</a>, you may find yourself interested in the latest <a href="https://www.simplifyingthemarket.com/en/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate</a> headlines so you can have a pulse on all of the things that could impact your decision. If that’s the case, you’ve probably heard mention of investors, and wondered how they’re impacting the <a href="https://www.simplifyingthemarket.com/en/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">housing market</a> right now. That could leave you asking yourself questions like:
How many homes do investors own?
Are institutional investors, like large Wall Street Firms, really buying up so many homes that the average person can’t find one?
To answer those questions, here’s the real story of what’s happening based on the data.
Let’s start with establishing how many single-family homes (SFHs) there are and what portion of those are rentals owned by investors. According to <a href="https://twitter.com/SFR_Investor" rel="noopener noreferrer" target="_blank">SFR Investor</a>, which studies the single-family rental market in the United States, there are eighty-two million single-family homes in this country. But how many of them are actually rentals?
According to <a href="https://twitter.com/SFR_Investor/status/1717345861141955063" rel="noopener noreferrer" target="_blank">data</a> shared in a recent post, sixty-eight million (82.93%) of those homes are owner-occupied – meaning the person who owns the home lives in it. If you subtract that sixty-eight million from the total number of single-family homes (82 million), that leaves just about fourteen million homes left that are single-family rentals (SFRs).
Do institutional investors own all of those remaining fourteen million homes? Not even close. Let’s take it one step further. There are four categories of investors:
The mom & pop investor who owns between 1-9 SFRs
The regional investor who owns between 10-99 SFRs
Smaller national investor who owns between 100-999 SFRs
The institutional investor who owns over 1,000 SFRs
These categories show that not all investors are large institutional investors. To help convey that even more clearly, here are the percentages of rental homes owned by each type of investor (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231127-Who-Owns-All-the-Single-Family-Rentals.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231127-Who-Owns-All-the-Single-Family-Rentals.png" /></a>
As you can see in the chart, despite what the news and social media would have you believe, the green shows the vast majority are not owned by large institutional investors. Instead, most are owned by small mom & pop investors, like your friends and neighbors.
What’s actually happening is, that there are people out there, just like you, who believe in homeownership, and they view buying a home (or a second home) as an investment. Maybe they saw an opportunity to buy a second home over the last few years to use it as a rental and generate additional income. Or maybe they just decided to keep their first house rather than sell it when they moved up.
So, don’t believe everything you read or hear about institutional investors. They aren’t buying up all the homes and making it impossible for the average person to buy. That’s just not what the numbers show. Institutional investors are actually the smallest piece of the pie chart.
Bottom Line
While it’s true that institutional investors are a player in the single-family rental marketplace, they’re not buying up all of the houses on the market. If you have other questions about things you’re hearing about the housing market, let’s connect so you have an expert to give you the context you need.2023-11-27T11:28:12-07:002023-11-27T11:30:31-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6363People Are Still Moving, Even with Today’s Affordability ChallengesPeople Are Still Moving, Even with Today’s Affordability Challenges
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If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/11/06/reasons-to-sell-your-house-before-the-new-year/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home prices</a> are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
<a href="https://www.simplifyingthemarket.com/en/content/images/20231113/20231116-Affordability-Historically-Low.png?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-Affordability-Historically-Low.png" /></a>
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index/methodology" rel="noopener noreferrer" target="_blank">explains</a> how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You may be wondering how other <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sellers</a> are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">today’s market</a> and the current affordability situation, and their insight is invaluable right now.
True professionals will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean <a href="https://www.simplifyingthemarket.com/en/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">broadening your search</a>, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the <a href="https://www.simplifyingthemarket.com/en/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">affordability challenges</a> today.
Bottom Line
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect. 2023-11-16T08:24:23-07:002023-11-16T08:30:38-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6318The Ultimate Guide to Buying a Home in Rhode Island: Step by StepAre you dreaming of owning a home in the beautiful state of Rhode Island? The process of buying a home can be exciting, but it can also be daunting if you don't know where to start. That's why we're here to guide you through the process, step by step. In this blog, we'll address the common problems homebuyers face and provide you with solutions to help make your home buying journey a breeze. Plus, we'll introduce you to Century21 Limitless PRG, your trusted partner in Rhode Island real estate.
The first challenge many homebuyers encounter is understanding the complex home buying process. It's easy to feel overwhelmed when faced with numerous choices, financial considerations, and paperwork. But fear not, we've got your back.
Step 1: Get Your Finances in Order<br />Start by assessing your financial situation. Determine your budget, calculate potential mortgage payments, and check your credit score. This will give you a clear picture of what you can afford.
Step 2: Connect with a Real Estate Agent<br />Choosing the right real estate agent can make a world of difference. Century21 Limitless PRG is a leading real estate agency in Rhode Island. Their experienced agents will help you find the perfect home, negotiate on your behalf, and handle all the complex paperwork.
Step 3: House Hunting<br />Now, the fun part! Explore the beautiful neighborhoods in Rhode Island, and let your agent show you some fantastic options. They'll help you compare properties, assess their value, and answer all your questions.
Step 4: Make an Offer<br />Your agent will guide you through the process of making an offer on a property. They'll help you negotiate a fair price and ensure all contingencies are met.
Step 5: Closing the Deal<br />Once your offer is accepted, it's time to go through the closing process. Your agent and a qualified attorney will help you complete the necessary paperwork and finalize the sale.
By following these steps, you can navigate the home buying process in Rhode Island with ease. And remember, Century21 Limitless PRG is your trusted partner throughout this journey, ensuring a smooth and stress-free experience. Your dream home is closer than you think!
If you're ready to take the next step in your home buying journey or have any questions, <a href="https://www.premrg.com/contact/" target="_blank">contact Century21 Limitless PRG today.</a> They have the knowledge, expertise, and commitment to make your Rhode Island dream home a reality. Don't miss out on this incredible opportunity!2023-11-07T07:16:46-07:002023-11-08T10:13:44-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6304Rhode Island vs. Massachusetts Home Buying - What You Need to Know!Are you thinking about making the big leap into homeownership, but can't decide between Rhode Island (RI) and Massachusetts (MA)? It's a common dilemma, and one that can greatly impact your future. In this blog, we'll explore the essential differences between buying a home in these two beautiful New England states, helping you make a well-informed decision that suits your lifestyle and budget. So, let's dive in!
Choosing between RI and MA for your new home can be daunting, given their proximity and similar cultural vibes. It's essential to consider factors such as cost, taxation, and local amenities when making this life-altering decision. Fortunately, we've got your back with the solutions.
1.Cost of Living: Rhode Island typically offers a slightly more affordable cost of living compared to Massachusetts, making it an attractive choice for those on a budget. Housing prices in MA, especially around major cities like Boston, tend to be higher.
2. Property Taxes: When it comes to property taxes, Massachusetts leans towards a lower rate, which can be a significant saving in the long run. On the other hand, Rhode Island's property taxes can be relatively higher.
3.Location and Lifestyle: Consider your lifestyle preferences. Massachusetts offers a bustling urban lifestyle with great job opportunities, while Rhode Island boasts a more laid-back, beachy atmosphere.
4.Schools and Education: Both states have excellent school systems, but Massachusetts often ranks higher in national educational assessments.
5.Commute and Transportation: The traffic in Massachusetts, particularly around Boston, can be quite heavy. Rhode Island offers a somewhat easier commute if you prefer less hustle and bustle.
In conclusion, choosing between Rhode Island and Massachusetts for your new home boils down to your unique preferences, lifestyle, and budget. Both states have their unique charm and advantages. It's crucial to weigh your priorities, whether it's cost, taxes, lifestyle, or education, before making your decision.
Now that you're armed with this information, take your time to explore both states, visit different neighborhoods, and engage with local real estate experts like us to get a better feel for what suits you best. Your dream home is just around the corner!
By making a well-informed choice, you can ensure that your new home purchase is a decision you'll cherish for years to come. So, whether it's "The Ocean State" of Rhode Island or "The Bay State" of Massachusetts, we hope you find the perfect place to call home.2023-11-01T08:23:36-07:002023-11-07T07:04:29-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6281Buying a House in Rhode Island vs. Connecticut: Making the Right MoveAre you at a crossroads in your life, considering whether to buy a house in Rhode Island (RI) or Connecticut (CT)? It's a big decision that comes with various factors to weigh, and we're here to help you navigate through it. In this blog, we'll explore the differences between buying a house in these neighboring states and provide valuable insights to aid in your decision-making process.
One of the common dilemmas people face when moving or investing in real estate is choosing between Rhode Island and Connecticut. Both states offer unique benefits and challenges that can significantly impact your decision. Let's break it down.
If you're looking to settle down in a serene coastal area with a slower pace of life, Rhode Island might be your ideal destination. However, if you prefer a blend of suburban living with easy access to cities like New York and Boston, Connecticut could be the better choice.
Rhode Island and Connecticut have their own distinct characteristics when it comes to real estate. Rhode Island is renowned for its stunning coastline, offering picturesque beachfront properties. On the other hand, Connecticut boasts a rich cultural scene, exceptional schools, and a more suburban lifestyle.
But, how do you find the perfect property that suits your needs in either state? That's where Century21 Limitless PRG comes into play.
Century21 Limitless PRG is a top-tier real estate agency with extensive experience in both Rhode Island and Connecticut. Their knowledgeable and friendly agents can help you navigate the real estate market, ensuring that you find the perfect home that meets your requirements. They'll take the time to understand your needs and guide you through the buying process, making it as seamless as possible.
<br />Choosing between Rhode Island and Connecticut for your new home is a significant decision, but with the right guidance, it can become much easier. Both states offer their unique charm, and Century21 Limitless PRG is your trusted partner in finding your dream home in either location. So, whether you're attracted to the coastal beauty of RI or the suburban allure of CT, make your choice with confidence.
Ready to explore the possibilities of buying a house in Rhode Island or Connecticut? <a href="https://www.premrg.com/contact/" target="_blank">Reach out to Century21 Limitless PRG</a> today and take the first step towards finding your dream home. Make the move that's right for you and your family, and let their expert team guide you through the process. Your new adventure begins now!2023-10-27T12:21:02-07:002023-11-01T08:15:59-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6269The Difference Between Renting and Buying a Home [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/1161/image/The-Difference-Between-Renting-And-Buying-A-Home-MEM.jpg" width="1300" height="3955" />
Some Highlights
When deciding between <a href="https://www.mykcm.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buying a home</a> or renting, think about these three important factors.
Buying a home means <a href="http://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">avoiding</a> rising rents, <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">owning</a> a tangible and valuable asset, and <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">growing</a> your <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" rel="noopener noreferrer" target="_blank">wealth</a> over time.
If you’re ready to enjoy the <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">advantages</a> of <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">owning a home</a>, let’s connect to discuss your <a href="https://www.mykcm.com/2023/09/18/are-more-homes-coming-onto-the-market/" rel="noopener noreferrer" target="_blank">options</a>.
2023-10-13T09:59:00-07:002023-10-26T10:07:53-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6264Are You a Homebuyer Worried About Climate Risks?
<img src="https://assets.site-static.com/userfiles/1281/image/20231005-are-you-a-homebuyer-worried-about-climate-risks.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
The increasing effects of natural disasters are leading to new obstacles in residential real estate. As a recent article from CoreLogic <a href="https://www.corelogic.com/intelligence/case-studies/climate-risk-modeling-future-for-real-estate-portfolios/" rel="noopener noreferrer" target="_blank">explains</a>:
“As the specter of climate change looms large, the world braces for unprecedented challenges. In the world of real estate, one of those challenges will be the effects of natural catastrophes on property portfolios, homeowners, and communities.”
That may be why, <a href="https://zillow.mediaroom.com/2023-09-05-More-than-80-of-home-shoppers-consider-climate-risks-when-looking-for-a-new-home" rel="noopener noreferrer" target="_blank">according</a> to Zillow, more and more Americans now consider how climate risks and natural disasters can impact their homeownership plans (see below):
<a href="https://www.mykcm.com/content/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" /></a>
This study goes on to explain that climate risks affect where many people look for a home. That’s because homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.
If you’re in the same situation and are thinking about what to do next, here’s some important information to consider as you start looking for a home.
Expert Advice for Homebuyers To Reduce Climate Risks
The <a href="https://www.mykcm.com/2023/09/25/beginning-with-pre-approval/" rel="noopener noreferrer" target="_blank">first thing</a> to do is understand how to go about buying a home while thinking about climate risks. With the right help and resources, you can simplify the process.
The Mortgage Reports provides these <a href="https://themortgagereports.com/99491/climate-change-global-warming-home-buying-impact" rel="noopener noreferrer" target="_blank">tips</a> for buying your next home:
Evaluate climate risks: Before buying a home, it's important to check if it's in a flood-prone area using the <a href="https://msc.fema.gov/portal/home" rel="noopener noreferrer" target="_blank">FEMA website</a>, review the seller's property disclosure for any past damage, and get an inspection for issues like cracks and mold to make sure it's a safe investment.
Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial. You should shop around and talk to multiple insurance agents to compare prices and options before deciding to bid on a home.
Above all else, your most <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">valuable resource</a> during this process is a trusted real estate expert. They'll always focus on your goals while keeping your concerns top of mind. Even if they don't have all the answers about how your home can handle natural disasters, they can connect you with the right experts and information.
Bottom Line
If you want to <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buy a home</a>, but you're also thinking about climate risks, you're not alone. Your home is a big investment, and if anything can impact that, you want to know. Let’s connect so you have someone you can trust to guide you as you find your next home.
2023-10-05T09:40:00-07:002023-10-26T09:52:39-07:00Tianna Sanabriatag:premrg.com,2012-09-20:6254Beginning with Pre-Approval
<img src="https://assets.site-static.com/userfiles/1161/image/20230925-The-Benefit-Of-Beginning-With-Pre-Approval.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re looking to buy a home this fall, there are a few things you need to know. Affordability is tight with today’s <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and rising <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">home prices</a>. At the same time, there’s a <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">limited number of homes</a> on the market right now and that’s creating some competition among buyers. But, if you’re strategic, there are ways to navigate these waters. The first thing you’ll want to do is get pre-approved for a mortgage. That way you’ll know your numbers and can set yourself up for success from the start of your home search.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know what pre-approval is. As part of the homebuying process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you know how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow. Why does this help you, especially today? With higher <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> impacting affordability for many buyers right now, a solid understanding of your numbers is even more important so you can truly wrap your head around your options.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
Let’s face it, there are more buyers looking to buy than there are homes available for sale and that imbalance is creating some competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you make an offer on a home. But getting pre-approved for a mortgage can help you stand out from other hopeful buyers.
As an article from Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows the seller you’re a serious buyer that’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or financial issues.
Bottom Line
Getting pre-approved is an important first step when you’re buying a home. The more prepared you are, the better chance you have of getting the home you want. Connect with a trusted lender so you have the tools you need to purchase a home in today’s market.
2023-09-26T09:17:00-07:002023-10-26T09:24:44-07:00Tianna Sanabriatag:premrg.com,2012-09-20:5820Evaluating Your Wants and Needs as a Homebuyer Matters More Today
<img src="https://assets.site-static.com/userfiles/1161/image/20230703-evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
When it comes to <a href="https://www.mykcm.com/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/" rel="noopener noreferrer" target="_blank">buying a home</a>, especially with today’s <a href="https://www.mykcm.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" target="_blank">affordability</a> challenges, you’ll want to be strategic. <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">Mortgage rates</a> impact how much it <a href="https://www.mykcm.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank">costs</a> to borrow money for your home loan. And, to help offset the higher borrowing costs today, some homebuyers are taking a close look at their wish list and re-evaluating what features they really need in their next home to avoid overextending. As a recent NerdWallet article <a href="https://www.nerdwallet.com/ca/mortgages/ways-to-prepare-for-a-tight-summer-housing-market" rel="noopener noreferrer" target="_blank">says</a>:
“A pool, for example, may be nice to have, but it may not provide as much day-to-day value as a garage or a space for a home office . . .”
While that pool may be appealing, think twice on whether or not it’s really something you must have to be happy in your next home. Is getting that pool the main reason you’re moving? Probably not. It’s more likely a need for more space, a home office, or proximity to loved ones, friends, or work that’s motivating you to make a change.
So, if you’re looking to <a href="https://www.mykcm.com/2023/06/22/what-homebuyers-need-to-know-about-credit-scores/" rel="noopener noreferrer" target="_blank">buy a home</a>, take some time to consider what’s truly essential for you in your next house. Make a list of all the features you’ll want to see, and from there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
Once you’ve categorized it in a way that works for you, discuss your top priorities with your <a href="https://www.mykcm.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank">real estate agent</a>. Remember to think carefully about what’s a non-negotiable for your lifestyle and what’s a nice-to-have that’s more of an added bonus. Be sure to discuss where each feature falls with your agent. They’ll be able to help you refine the list further, <a href="https://www.mykcm.com/2023/05/31/keys-to-success-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank">coach</a> you through the best way to stick to it, and find a home in your area that meets your top needs.
Bottom Line
Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial planning step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.
2023-07-11T08:09:42-07:002023-07-18T09:04:24-07:00Tianna Sanabriatag:premrg.com,2012-09-20:5574It May Be Time To Consider a Newly Built Home
<img src="https://assets.site-static.com/userfiles/1161/image/20230508-it-may-be-time-to-consider-a-newly-built-home.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re looking to <a href="https://www.mykcm.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank">buy a house</a>, you may find today’s limited supply of homes available for sale challenging. When housing inventory is as low as it is right now, it can feel like a bit of an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you need to open up your pool of options, it may be time to consider a newly built home.
According to the <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" rel="noopener noreferrer" target="_blank">latest data</a> from the U.S. Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find:
More new homes were completed and are ready to sell. This gives you more move-in-ready options for your search.
Builders broke ground and started construction on more single-family homes. This means there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking.
The number of permits for building new single-family homes ticked up. This shows builders are ramping up to start on even more home construction soon.
And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.
Customization
When you buy a new home under construction, you can tailor it to your unique needs and taste. Bankrate <a href="https://www.bankrate.com/mortgages/build-or-buy-a-house/#building" rel="noopener noreferrer" target="_blank">says</a>:
“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.”
Brand New Everything
Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.
Minimal Repairs
And, because everything is new, you’ll likely find there are fewer maintenance and repair needs up front. As Realtor.com <a href="https://www.realtor.com/advice/buy/purchasing-new-construction-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . if something does go wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”
Energy Efficiency
Lastly, building a home gives you the opportunity to incorporate more <a href="https://www.mykcm.com/2023/04/21/why-you-may-want-an-energy-efficient-home-infographic/" rel="noopener noreferrer" target="_blank">energy-efficient</a> options that can help lower your costs over time – which can feel especially important when inflation’s raising many of the costs around you.
Bottom Line
If you’re having trouble finding your dream home in today’s market, it may be time to consider newly built homes as an option. Let’s connect so you have an expert on your side to help you explore what’s available in our local area.
2023-05-08T12:44:26-07:002023-05-26T10:12:01-07:00Tianna Sanabriatag:premrg.com,2012-09-20:5483Think Twice Before Waiting for Lower Home Prices
<img src="https://assets.site-static.com/userfiles/1161/image/20230417-think-twice-before-waiting-for-lower-home-prices-KCM.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on <a href="https://www.mykcm.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank">buying a home</a> until prices drop significantly. But that’s not the best strategy.
A recent <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">survey</a> from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-april-2023/" rel="noopener noreferrer" target="_blank">reports</a>:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below <a href="https://www.blackknightinc.com/wp-content/uploads/2023/04/BKI_MM_FEB2023_Report.pdf" rel="noopener noreferrer" target="_blank">compares</a> home price trends in November to those in February:
<a href="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" /></a>
So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">data</a> shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
Bottom Line
If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect to make sure you understand what’s happening in our local housing market.
2023-04-17T07:20:42-07:002023-05-08T12:44:20-07:00Tianna Sanabriatag:premrg.com,2012-09-20:5447Trying To Buy a Home? Hang in There.
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We’re still in a sellers’ market. And if you’re looking to buy a home, that means you’re likely facing some unique challenges, like difficulty finding a home and volatile mortgage rates. But keep in mind, there are some benefits to being a buyer in today’s market that give you good reason to stick with your search. Here are a few of them.
Long-Term Benefits Outweigh Short-Term Challenges
Owning a home grows your net worth – and since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/4-benefits-owning-home" rel="noopener noreferrer" target="_blank">puts</a> it this way:
“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”
The key there is long-term because the financial benefits homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today’s sellers’ market presents.
Mortgage Rates Are Constantly Changing
Mortgage rates have been hovering around 6.5% over the last several months. However, as Sam Khater, Chief Economist at Freddie Mac, <a href="https://www.mpamag.com/us/mortgage-industry/market-updates/mortgage-rates-slide-again-says-freddie-mac/441427" rel="noopener noreferrer" target="_blank">notes</a>, they’ve been coming down some recently:
“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”
Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.com, <a href="https://money.usnews.com/loans/mortgages/articles/mortgage-market-news-march-30-2023" rel="noopener noreferrer" target="_blank">explains</a>:
“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”
The recent drop in mortgage rates is good news if you couldn’t afford to buy a home when they peaked.
Home Prices Will Increase
According to the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a>, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230405/20230406-estimated-home-price-performance-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230405/20230406-estimated-home-price-performance-MEM.png" /></a>
Rising home prices in the coming years means two things for you as a buyer:
Waiting to buy a home could mean it’ll become more expensive to do so.
Buying now means the value of your home, and your net worth, will likely grow over time.
Bottom Line
If you’ve been trying to buy a home, hang in there. Mortgage rates have ticked down some recently, home prices are forecast to increase in the coming years, and the long-term benefits of homeownership outweigh many of the short-term challenges
2023-04-06T07:42:42-07:002023-04-14T06:43:18-07:00Tianna Sanabriatag:premrg.com,2012-09-20:5331What Buyer Activity Tells Us About the Housing Market
What Buyer Activity Tells Us About the Housing Market
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Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to <a href="https://realestate.usnews.com/real-estate/articles/when-will-the-housing-market-crash" rel="noopener noreferrer" target="_blank">U.S. News</a>:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230315/20230313-largest-jump-in-showings-for-any-january-on-record-MEM-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230315/20230313-largest-jump-in-showings-for-any-january-on-record-MEM-1.png" /></a>
The 62% <a href="https://www.showingtime.com/blog/january-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">jump</a> in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, <a href="https://www.showingtime.com/blog/january-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”
It's important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when <a href="https://www.mykcm.com/2023/02/28/what-you-should-know-about-rising-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are favorable, they’re ready to make their move.
Bottom Line
An increase in showing activity in January is a good sign that there are buyers who are eager to purchase a home. If you’re thinking of <a href="https://www.mykcm.com/2023/03/03/where-will-you-go-after-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">selling</a> your house, <a href="https://www.mykcm.com/2023/03/01/an-expert-makes-all-the-difference-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">talk</a> with your real estate agent.
<a href="https://www.mykcm.com/blog" class="router-link-active">GO TO BLOG POSTS</a>
2023-03-16T06:41:51-07:002023-03-16T06:43:39-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4992Wondering How Much You Need To Save for a Down Payment?<img src="https://assets.site-static.com/userfiles/1161/image/wondering-how-much-you-need-to-save-for-a-down-payment-KCM.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don’t let a common misconception about how much you need to save make the process harder than it could be.
Understand 20% Isn’t Always the Typical Down Payment
Freddie Mac <a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”
Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):
<a href="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106555" src="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png" alt="Wondering How Much You Need To Save for a Down Payment? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png 960w, https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Learn About Options That Can Help You Toward Your Goal
If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest <a href="https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/" title="Homeownership Program Index" target="_blank" rel="noopener noreferrer">Homeownership Program Index</a> from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.
Plus there are even loan types, like <a href="https://www.hud.gov/buying/loans" title="FHA loans" target="_blank" rel="noopener noreferrer">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.mykcm.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/" title="VA loans">VA loans</a> and USDA loans with no down payment requirements for qualified applicants.
To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like <a href="http://www.downpaymentresource.com/" title="Down Payment Resource" target="_blank" rel="noopener noreferrer">Down Payment Resource</a>. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.
Bottom Line
Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options.2023-01-04T08:52:29-07:002023-01-04T08:54:43-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4926Key Advantages of buying a Home Today<img src="https://assets.site-static.com/userfiles/1161/image/Key_Advantages_of_buying_a_Home_Today.jpg" width="525" height="350" style="display: block; margin-left: auto; margin-right: auto;" />
Are you thinking of buying a home? If so, you're making a smart decision! There are many advantages to buying a home today, including:
- Stability: Owning a home is one of the best ways to achieve stability and security for your family.
- Tax breaks: Homeowners receive several tax breaks, including deductions on mortgage interest and property taxes.
- Equity: Over time, your home will appreciate in value, giving you equity that you can use later in life.
- Investment: Owning a home is an excellent investment, as real estate values typically increase over time.
- Control: When you own your own home, you have more control over how it looks and functions.
- Pride of ownership: Nothing quite beats the feeling of owning your own home!
If you're ready to take the plunge and purchase a home, now is a great time to do so. With historically low interest rates on mortgages, there has never been a better opportunity to buy a house. Additionally, rising rent prices make homeownership increasingly attractive as it can save you money in the long run.
Don't miss out on this chance to join the ranks of homeownership - act now and reap all the benefits of buying a home today!
Good luck with your purchase and happy house hunting!
Conclusion: Buying a home is an exciting way to invest in yourself and your family, so don't wait any longer - get out there and find the perfect place for you. With the many advantages of homeownership and historically low interest rates, now is truly the best time to take the plunge into homeownership. So what are you waiting for? Start shopping around today and turn your dream of owning a home into reality! Good luck!2022-12-08T11:28:33-07:002022-12-12T10:20:42-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4901What You Want To Know If You're Pursuing Homeownership<img src="https://assets.site-static.com/userfiles/1161/image/What_You_Want_To_Know_if_Youre_Pursuing_Homeownership.jpg" width="525" height="350" style="display: block; margin-left: auto; margin-right: auto;" />
Are you thinking about buying a house? It's a big decision, and there's a lot to know before you take the plunge. In this blog post, we'll discuss everything you need to know about homeownership. We'll cover topics such as the mortgage process, down payments, and closing costs. So whether you're just starting to think about homeownership or you're already in the midst of the process, this blog post is for you!
First, let's look at the mortgage process. When applying for a mortgage, you'll need to prove your financial stability and creditworthiness. Lenders will want to review your income, employment history, and debt-to-income ratio. They'll also pull your credit report to ensure that you can manage the loan payments responsibly.
In addition to having good credit and financials, it is wise to have a down payment saved up before embarking on your homeownership journey. A down payment is an upfront deposit of money that helps lenders determine how high of a mortgage amount they're willing to give you. Generally speaking, many lenders recommend a 20% down payment so they know they won't be stuck with any losses if the loan goes into default.
Lastly, you'll need to budget for closing costs. Closing costs are fees that you’ll need to pay in order to finalize the purchase of your house. These fees generally include mortgage origination fees, title insurance, appraisal fees, and other miscellaneous charges. They usually average between 3-5% of the purchase price of your home but can vary depending on location and lender.
Buying a house is an exciting time in life. Taking the right steps during this process will ensure that it's as stress-free as possible. By understanding the mortgage process, saving up your down payment, and budgeting for closing costs ahead of time, you'll be well-prepared for the journey of homeownership. Good luck!2022-12-01T11:28:42-07:002022-12-08T11:28:28-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4813Factors Affecting home affordability todayFactors Affecting Home Affordability Today
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How much house can you afford? This is a question that many people are asking themselves these days. The answer can vary greatly depending on a variety of factors. In this blog post, we will discuss 10 of the most important factors that affect home affordability. Keep reading to learn more!
1. Location
This is perhaps the most important factor when it comes to home affordability. The cost of living in different parts of the country can vary greatly. For example, homes in major metropolitan areas tend to be much more expensive than homes in rural areas. So, if you want to find an affordable home, you may need to consider moving to a less expensive location.
2. Income
Your income is obviously a major factor in determining how much house you can afford. The higher your income, the more expensive of a home you will be able to afford. If you want to purchase a more expensive home, you may need to consider ways to increase your income.
3. Debt
Your debt load is also a major factor in determining home affordability. If you have a lot of debt, it will be more difficult to afford a home. You may need to consider ways to reduce your debt load before you can afford the home you want.
4. Savings
Another important factor in home affordability is your savings. If you have a lot of money saved up, you will be able to afford a more expensive home. If you do not have much saved up, you may need to save more money before you can afford the home you want.
5. Credit Score
Your credit score is also a major factor in home affordability. The higher your credit score, the easier it will be to get approved for a loan and get a lower interest rate. If you have a low credit score, you may need to work on improving your credit before you can afford the home you want.
6. Employment Stability
Employment stability is another important factor in home affordability. If you have a stable job, it will be easier to afford a home. If you are self-employed or have a job that is not very stable, it may be more difficult to afford a home.
7. Family Size
Family size is also a major factor in home affordability. If you have a large family, it may be more difficult to afford a home. If you have a small family or no children, it will be easier to afford a home.
8. Housing Market Conditions
Housing market conditions are also a major factor in home affordability. If the housing market is strong, it will be easier to afford a home. If the housing market is weak, it may be more difficult to afford a home.
9. Interest Rates
Interest rates are also a major factor in home affordability. The lower the interest rate, the easier it will be to afford a home. If interest rates are high, it may be more difficult to afford a home.
10. Personal Finances
Your personal finances are also a major factor in home affordability. If you have good financial habits, it will be easier to afford a home. If you have bad financial habits, it may be more difficult to afford a home.
These are just a few of the many factors that affect home affordability. Keep these factors in mind when you are trying to determine how much house you can afford. If you need help determining how much house you can afford, contact a local real estate agent. They can help you evaluate your finances and find a home that is within your budget.
1. Location
2. Income
3. Debt
4. Savings
5. Credit Score
6. Employment Stability
7. Family Size
8. Housing Market Conditions
9. Interest Rates
10. Personal Finances2022-11-07T11:20:45-07:002022-11-09T11:44:04-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4791Saving for a Home: Tips and Tricks to Help You Get Started<img src="https://assets.site-static.com/userfiles/1161/image/PRG_Buyers_3_525x350.png" width="525" height="350" style="display: block; margin-left: auto; margin-right: auto;" />
It's no secret that buying a home is a huge financial commitment. But it's also an important one - your home is typically the biggest purchase you'll ever make. That's why it's so important to start saving for a home as early as possible. In this blog post, we'll discuss some tips and tricks to help you get started on your journey to homeownership!
One of the best ways to start saving for a home is to create a budget. Figure out what your regular monthly expenses are and make sure to factor in savings goals. Once you have a solid budget in place, it will be easier to start setting aside money each month for your future home purchase.
Another great tip is to take advantage of any employer-sponsored retirement savings plans, such as a 401(k) or 403(b). Many employers offer matching contributions, which can help you boost your savings even more!
If you're still not sure where to start when it comes to saving for a home, consider talking to a financial advisor. They can help you create a customized plan that fits your unique needs and goals.
No matter how you choose to save for a home, the important thing is to start now. The sooner you start saving, the closer you'll be to achieving your homeownership dreams!2022-11-02T09:20:18-07:002022-11-03T06:35:34-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4788Homeownership: More Than Just a Financial Investment<img src="https://assets.site-static.com/userfiles/1161/image/PRG_Homeownership_2.png" width="1080" height="1080" />
Homeownership is more than just a financial Investment - it offers numerous emotional and non-financial benefits that can greatly improve your quality of life.
Some of the key emotional benefits of homeownership include:
Pride of ownership: When you own your own home, you have a sense of pride and accomplishment that comes with it. You can also take pride in knowing that you’re building equity and creating a legacy for your family.
Stability and security: Owning your own home provides a sense of stability and security that renting simply can’t match. You don’t have to worry about your landlord raising the rent or selling the property, and you’ll always have a place to call home.
Privacy and personalization: When you own your own home, you can personalize and decorate it however you want. You don’t have to ask permission from a landlord, and you can make the space truly your own.
Some of the key non-financial benefits of homeownership include:
Improved physical health: Studies have shown that owning a home can lead to improved physical health, thanks to things like increased activity levels and better access to healthcare.
Improved mental health: Owning a home has also been linked to improved mental health, as it provides a sense of stability and security. This can help reduce stress levels and promote overall wellbeing.
Greater social connections: Homeownership can also lead to greater social connections, as you’re more likely to interact with your neighbors and participate in community activities.
If you’re considering homeownership, be sure to weigh both the financial and non-financial benefits before making your decision. The emotional and non-financial benefits of homeownership can be just as important as the financial ones.
If you have questions give us a call at Premier Realty Group and we would be happy to answer them (401) 288-3600
2022-11-01T12:00:54-07:002022-11-01T13:05:50-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4697Two Questions Every Homebuyer Should Ask Themselves Right Now<img src="https://assets.site-static.com/userfiles/1161/image/20221006-KCM-Share.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Rising <a href="https://www.mykcm.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/" title="interest rates">interest rates</a> have begun to slow an overheated housing market as monthly mortgage payments have <a href="https://www.mykcm.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/" title="risen dramatically">risen dramatically</a> since the beginning of the year. This is leaving some people who want to purchase a home priced out of the market and others wondering if now is the time to buy one. But this rise in borrowing cost shows no signs of letting up soon.
Economic uncertainty and the volatility of the financial markets are causing mortgage rates to rise. George Ratiu, Senior Economist and Manager of Economic Research at realtor.com, <a href="https://www.realtor.com/research/freddie-mac-mortgage-rates-sep-29-2022/" title="says" target="_blank" rel="noopener noreferrer">says</a> this:
“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months.”
So, is now the right time to buy a home? Anyone thinking about buying a home today should ask themselves two questions:
1. Where Do I Think Home Prices Are Heading?
There are two places to turn to answer this question. First is the consensus of what experts are saying. If you look at what <a href="https://www.mykcm.com/2022/09/22/what-experts-say-will-happen-with-home-prices-next-year/" title="experts are projecting">experts are projecting</a> for home prices in 2023, they’re forecasting home price appreciation around 2%. While it’s true some are calling for depreciation, most are calling for appreciation in home values over the next year.
The second spot to turn to for information is the <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Home Price Expectation Survey" target="_blank" rel="noopener noreferrer">Home Price Expectation Survey</a> from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. According to the latest release, the experts surveyed are also calling for home price appreciation for the next several years (see graph below):
<a href="https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105034" src="https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1.png" alt="Two Questions Every Homebuyer Should Ask Themselves Right Now | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1.png 960w, https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1-600x450.png 600w, https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1-768x576.png 768w, https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
2. Where Do I Think Interest Rates Are Heading?
Like mentioned above, Ratiu sees mortgage rates rising over the next several months. Another expert agrees. Mark Fleming, Chief Economist at First American, <a href="https://www.firstam.com/news/2022/overvalued-markets-increasing-20220927.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.”
The instability in the world and higher inflation are driving this volatile market, resulting in higher borrowing rates for those looking to buy homes.
Bottom Line
If you’re thinking about buying a home, asking yourself about home prices and mortgage rates will help you make a powerful and confident decision. Experts see both prices and rates rising in the future. The alternative is to rent, but rents are also increasing. That may mean <a href="https://www.mykcm.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/" title="buying a home">buying a home</a> makes more sense than renting.2022-10-07T07:00:00-07:002022-10-24T08:20:22-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4611Why You May Want To Start Your Home Search Today<img src="https://assets.site-static.com/userfiles/1161/image/20220825-KCM-Share.jpg" width="750" height="410" />
If you’re thinking about <a href="https://www.mykcm.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/" title="buying a home">buying a home</a>, you likely have a lot of factors on your mind. You’re weighing your own needs against higher <a href="https://www.mykcm.com/2022/08/05/housing-market-forecast-for-the-rest-of-2022-infographic/" title="mortgage rates">mortgage rates</a>, today’s home prices, and more to try to decide if you want to jump into the market. While some buyers may wait things out, there’s a reason serious buyers are making moves right now, and that’s the growing number of homes for sale.
So far this year, <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="housing inventory">housing inventory</a> has been increasing and that’s making the prospect of finding your dream home less difficult. While there are always reasons you could delay making a big decision, there are also always reasons to consider moving forward. And having a <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="growing number of options">growing number of options</a> for your home search may be exactly what you needed to feel more confident in making a move.
What’s Causing Housing Inventory To Grow?
As new data comes out, we’re getting an updated picture of why housing supply is increasing so much this year. As Bill McBride, Author of Calculated Risk, <a href="https://calculatedrisk.substack.com/p/1st-look-at-local-housing-markets-fb2" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“We are seeing a significant change in inventory, but no pickup in new listings. Most of the increase in inventory so far has been due to softer demand – likely because of higher mortgage rates.”
Basically, the inventory growth is primarily from homes staying on the market a bit longer (known as active listings). And that’s happening because higher mortgage rates and <a href="https://www.mykcm.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/" title="home prices">home prices</a> have helped moderate the peak frenzy of buyer demand.
The graph below uses <a href="https://www.realtor.com/research/data/" title="data" target="_blank" rel="noopener noreferrer">data</a> from realtor.com to show how much active listings have risen over the past five months as a result (shown in green):
<a href="https://files.mykcm.com/2022/08/24123205/20220825-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104287" src="https://files.mykcm.com/2022/08/24123205/20220825-MEM-Eng-1.png" alt="Why You May Want To Start Your Home Search Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/24123205/20220825-MEM-Eng-1.png 960w, https://files.mykcm.com/2022/08/24123205/20220825-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/08/24123205/20220825-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/08/24123205/20220825-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Why This Growth Is Good News for You
Regardless of the source, the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. A <a href="https://www.realtor.com/research/july-2022-data/" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> from realtor.com explains just how significant the inventory growth has been and why it’s good news for your plans to buy:
“Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month’s growth rate of 18.7% which was itself record-breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home.”
The growth this year is certainly good news for you, especially if you’ve had trouble finding a home that meets your needs. If you start your search today, those additional options should make it less difficult to find a home than it would have been over the past two years.
Bottom Line
If you’re ready to jump into the market and take advantage of the increasing supply of homes for sale, let’s connect today. The opportunity is knocking, will you answer?2022-09-13T07:59:00-07:002022-09-13T08:01:31-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4549Buyers: You May Face Less Competition as Bidding Wars Ease<img src="https://assets.site-static.com/userfiles/1281/image/20220831-KCM-Share.jpg" width="750" height="410" />
One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars. With so many buyers looking to purchase a home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic – and it drove <a href="https://www.premrg.com/blog/what-does-the-rest-of-the-year-hold-for-home-prices/">home prices up</a>. If you tried to buy a house over the past two years, you probably experienced this firsthand and may have been outbid on several homes along the way.
But here’s the news you’ve been waiting for: data shows clear signs bidding wars are easing this year.
According to the National Association of Realtors (NAR), the average <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf" title="number of offers" target="_blank" rel="noopener noreferrer">number of offers</a> on recently sold homes has declined considerably over the past few months (see graph below):
<a href="https://files.mykcm.com/2022/08/30093816/20220831-MEM-Eng.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104405" src="https://files.mykcm.com/2022/08/30093816/20220831-MEM-Eng.png" alt="Buyers: You May Face Less Competition as Bidding Wars Ease | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/30093816/20220831-MEM-Eng.png 960w, https://files.mykcm.com/2022/08/30093816/20220831-MEM-Eng-600x450.png 600w, https://files.mykcm.com/2022/08/30093816/20220831-MEM-Eng-768x576.png 768w, https://files.mykcm.com/2022/08/30093816/20220831-MEM-Eng-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The graph shows homes were seeing a high of around five offers earlier this year. But the latest data shows that average was down to just shy of three offers per recently sold home. This shift is happening largely because rising mortgage rates moderated buyer demand and slowed home sales, resulting in a growing <a href="https://www.premrg.com/blog/why-you-may-want-to-start-your-home-search-today/" title="supply">supply</a> of homes on the market. Essentially, more choices for buyers.
What This Means for You
If you put your home search on pause because you were outbid last year or because you didn’t want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a sellers’ market, an uptick in inventory gives you a window of opportunity to jump back in. You may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.
Bottom Line
If you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your home search. Today, bidding wars are easing and that may mean less competition for you as a buyer. If you’re serious about buying a home or making a move, let’s connect to get started today.2022-08-31T12:43:00-07:002022-09-15T07:40:45-07:00Tianna Sanabriatag:premrg.com,2012-09-20:4488Is the Shifting Market a Challenge or an Opportunity for Homebuyers?<img src="https://assets.site-static.com/userfiles/1161/image/20220810-KCM-Share.jpg" width="750" height="410" />
If you tried to <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buy a home">buy a home</a> during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="home prices">home prices</a> up as buyers competed with one another to be the winning offer.
But what was once your greatest challenge may now be your greatest opportunity. Today, data shows <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="buyer demand">buyer demand</a> is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="housing market">housing market</a> is good news for your <a href="https://www.mykcm.com/2022/07/15/should-i-rent-or-should-i-buy-infographic/" title="homebuying plans">homebuying plans</a>.
The Challenge
There were many reasons for the limited number of homes on the market during the pandemic, including a <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="history of underbuilding">history of underbuilding</a> new homes since the market <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="crash in 2008">crash in 2008</a>. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
<a href="https://files.mykcm.com/2022/08/09143118/20220810-MEM-Eng-1-.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-103930" src="https://files.mykcm.com/2022/08/09143118/20220810-MEM-Eng-1-.png" alt="Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/09143118/20220810-MEM-Eng-1-.png 960w, https://files.mykcm.com/2022/08/09143118/20220810-MEM-Eng-1--600x450.png 600w, https://files.mykcm.com/2022/08/09143118/20220810-MEM-Eng-1--768x576.png 768w, https://files.mykcm.com/2022/08/09143118/20220810-MEM-Eng-1--100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The Opportunity
But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="pace of home sales">pace of home sales</a> and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more options">more options</a> to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.
And having more options may also lead to less intense bidding wars. <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-05-realtors-confidence-index-06-21-2022.pdf" title="Data" target="_blank" rel="noopener noreferrer">Data</a> from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-06-realtors-confidence-index-report-07-20-2022.pdf" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
<a href="https://files.mykcm.com/2022/08/09143214/20220810-MEM-Eng-2-.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-103933" src="https://files.mykcm.com/2022/08/09143214/20220810-MEM-Eng-2-.png" alt="Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/09143214/20220810-MEM-Eng-2-.png 960w, https://files.mykcm.com/2022/08/09143214/20220810-MEM-Eng-2--600x450.png 600w, https://files.mykcm.com/2022/08/09143214/20220810-MEM-Eng-2--768x576.png 768w, https://files.mykcm.com/2022/08/09143214/20220810-MEM-Eng-2--100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="an agent">an agent</a> to guide you through the process and help you make your strongest offer up front.
Bottom Line
If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.2022-08-12T06:13:00-07:002022-09-15T07:40:33-07:00Tianna Sanabriatag:premrg.com,2012-09-20:3920This is How Homeownership Can Help Shield You from Inflation<img src="https://assets.site-static.com/userfiles/1161/image/20220426-KCM-Share.jpg" width="750" height="410" />
If you’re following along with the news today, you’ve likely heard about rising inflation. You’re also likely feeling the impact in your day-to-day life as prices go up for gas, groceries, and more. These rising consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="purchasing a home">purchasing a home</a> this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how <a href="https://www.mykcm.com/2022/04/11/using-your-tax-refund-to-achieve-your-homeownership-goals-this-year/" title="homeownership">homeownership</a> can help you combat the rising costs that come with inflation.
Homeownership Offers Stability and Security
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" title="explains" target="_blank" rel="noopener noreferrer">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="rental prices">rental prices</a> and <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" title="home prices">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in homeownership.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. If you get a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
So even if other prices rise, your housing payment will be a reliable amount that can help keep your budget in check. If you <a href="https://www.mykcm.com/2022/02/25/the-difference-between-renting-and-owning-infographic/" title="rent">rent</a>, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Use Home Price Appreciation to Your Benefit
While it’s true rising <a href="https://www.mykcm.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/" title="mortgage rates">mortgage rates</a> and <a href="https://www.mykcm.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/" title="home prices">home prices</a> mean buying a house today costs more than it did a year ago, you still have an opportunity to set yourself up for a long-term win. Buying now lets you lock in at today’s rates and prices before both climb higher.
In inflationary times, it’s especially important to invest your money in an asset that traditionally holds or grows in value. The graph below shows how home price appreciation outperformed inflation in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<a href="https://files.mykcm.com/2022/04/25102953/20220426-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-101920" src="https://files.mykcm.com/2022/04/25102953/20220426-MEM-Eng-1.png" alt="How Homeownership Can Help Shield You from Inflation | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/04/25102953/20220426-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/04/25102953/20220426-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/04/25102953/20220426-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/04/25102953/20220426-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
So, what does that mean for you? Today, experts say home prices will only go up from here thanks to the ongoing imbalance in supply and demand. Once you buy a house, any <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" title="home price appreciation">home price appreciation</a> that does occur will be good for your <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" title="equity">equity</a> and your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. And since homes are typically assets that grow in value (even in inflationary times), you have peace of mind that history shows your <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" title="investment">investment</a> is a strong one.
Bottom Line
If you’re ready to buy a home, it may make sense to move forward with your plans despite rising inflation. If you want expert advice on your specific situation and how to time your purchase, let’s connect.2022-04-26T09:29:00-07:002022-09-01T06:34:14-07:00Tianna Sanabriatag:premrg.com,2012-09-20:3841Balancing Your Wants and Needs as a Homebuyer Today<img src="https://assets.site-static.com/userfiles/1161/image/20220404-KCM-Share.jpg" width="750" height="410" />
Since the <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" title="number of homes">number of homes</a> for sale is low today, it can feel challenging to find one that checks all your boxes. But if you know which features are absolutely essential in your next home and which ones are just nice bonuses, you can land a <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="home">home</a> that fits your needs.
Danielle Hale, Chief Economist for realtor.com, explains it like <a href="https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2022/02/26/what-to-do-before-you-buy-a-home.html" title="this" target="_blank" rel="noopener noreferrer">this</a>:
“Focus on the goal you set out for yourself, like your list of must-haves and nice-to-haves and your budget, . . . Stick to that. Be persistent.”
So how do you go about creating your list of desired features? The first step is to get <a href="https://www.mykcm.com/2022/01/24/why-pre-approval-is-key-for-homebuyers-in-2022/" title="pre-approved">pre-approved</a> for your mortgage. Pre-approval helps you better understand your budget, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s too far out of reach.
Once you have a good grasp of your budget, you can begin to list all the features of a home you would like. Here’s a great way to think about them before you begin:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, garage, etc.).
Dream State– This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).
Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your <a href="https://www.mykcm.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/" title="real estate advisor">real estate advisor</a>. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" title="your needs">your needs</a>.
Bottom Line
Crafting your home search checklist may seem like a small task, but it can save you time and money. It’s also one of the keys to being successful in today’s competitive market. Let’s connect so we can work together to find a home that fits your wants and needs.2022-04-08T07:59:00-07:002022-09-23T10:21:26-07:00Tianna Sanabriatag:premrg.com,2012-09-20:3751The Many Benefits of Homeownership<img src="https://assets.site-static.com/userfiles/1161/image/20220322-KCM-Share.jpg" width="750" height="410" />
The past two years have taught us the true <a href="https://www.mykcm.com/2022/02/14/are-you-ready-to-fall-in-love-with-homeownership/" title="value of homeownership">value of homeownership</a>, especially the stability and the feeling of accomplishment it can provide. But homeownership has so much more to offer. Here’s a look at a few of the non-financial and financial benefits of owning a home. If you’re looking to buy a home today, think about all the ways homeownership can impact your life.
Homeownership Has Impactful Personal and Emotional Benefits
Owning your home gives you a significant sense of pride because it’s a space that is truly yours. And as a homeowner, you can customize your home to your heart’s desire. Having a space you’ve put your stamp on enhances the pride and sense of ownership you may feel.
And that sense of ownership can extend beyond your shelter to help create social, community, and civic benefits as well. That’s because the average homeowner stays in their home for longer than just a few years. That means you’ll naturally feel a stronger connection to the community around you the longer you live there. This can help you experience a greater sense of belonging and a greater stake in your community as a whole. As the <a href="https://www.nar.realtor/promoting-home-ownership" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR) says:
“Living in one place for a longer amount of time creates an obvious sense of community pride, which may lead to more investment in said community.”
Owning a Home Is a Significant Step Toward Financial Stability
In a financial sense, homeowners benefit from <a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/" title="home price appreciation">home price appreciation</a>, <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" title="equity gains">equity gains</a>, and having a shield against some of the <a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/" title="effects of inflation">effects of inflation</a>. These benefits can have a big impact on your life. As you gain equity through home price appreciation and paying down your mortgage, you build your net worth. And in times of inflation, your 30-year fixed-rate mortgage can help you stabilize one of your largest monthly expenses for the duration of your loan.
Lawrence Yun, Chief Economist for NAR, <a href="https://www.nar.realtor/newsroom/middle-income-households-gain-2-1-trillion-in-housing-wealth-in-a-decade" title="explains" target="_blank" rel="noopener noreferrer">explains</a> how you can start to see these lasting effects of homeownership as soon as you make your purchase:
“Owning a home continues to be a proven method for building long-term wealth. . . . Home values generally grow over time, so homeowners begin the wealth-building process as soon as they make a down payment and move to pay down their mortgage.”
Knowing you’ve made a good investment soon after your purchase is powerful. And that may give you confidence in your decision to buy a home.
Bottom Line
The benefits of owning a home are foundational. As a homeowner, you can feel proud of the space you call home and know you’ve made a sound financial investment. To learn how homeownership can help you, let’s connect to start the conversation today.2022-03-22T06:36:00-07:002022-09-01T06:34:49-07:00Tianna Sanabriatag:premrg.com,2012-09-20:3579Why Your Home Inspection Matters [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/1161/image/20220128-MEM-1046x2095.png" width="1046" height="2095" />
Some Highlights
Buying a home and wondering if your <a href="https://www.homeinspector.org/Buyers-And-Owners/Homebuyers-Guide/FAQs-about-Home-Inspection" title="inspection" target="_blank" rel="noopener noreferrer">inspection</a> is necessary? While some buyers may decide to <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-12-realtors-confidence-index-01-20-2022.pdf" title="waive" target="_blank" rel="noopener noreferrer">waive</a> their inspection, it’s risky decision.
Your <a href="https://www.nar.realtor/home-inspections" title="home inspection" target="_blank" rel="noopener noreferrer">home inspection</a> is a crucial step in the <a href="https://www.mykcm.com/2022/01/17/achieving-the-dream-of-homeownership/" title="homebuying process">homebuying process</a>. It <a href="https://www.realtor.com/advice/buy/how-much-does-a-home-inspection-cost/" title="assesses" target="_blank" rel="noopener noreferrer">assesses</a> the condition of the home you plan to purchase, so you can avoid costly surprises down the road.
Let’s connect so you have <a href="https://www.mykcm.com/2021/12/14/advice-for-first-generation-homebuyers/" title="expert advice">expert advice</a> and a trusted professional who will keep your interests top of mind.
2022-01-28T09:23:00-07:002022-09-23T10:23:13-07:00Tianna Sanabriatag:premrg.com,2012-09-20:3265Knowledge Is Power When It Comes to Appraisals and Inspections
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Buyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s because high buyer demand and <a href="https://www.mykcm.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/" title="low housing supply">low housing supply</a> are driving intense competition and leading some buyers to consider waiving those contingencies to stand out in the crowded market.
But is that the best move? Buying a home is one of the most <a href="https://www.mykcm.com/2021/09/30/as-home-equity-rises-so-does-your-wealth/" title="important">important</a> transactions in your lifetime, and it’s critical to keep your best interests in mind. Here’s a breakdown of what to expect from the appraisal and the inspection, and why each one can potentially save you a lot of time, money, and headaches down the road.
Home Appraisal
The home <a href="https://www.mykcm.com/2021/07/23/pop-quiz-can-you-define-these-key-terms-in-todays-housing-market-infographic/" title="appraisal">appraisal</a> is a critical step for securing a mortgage on your home. As <a href="https://www.homelight.com/blog/what-to-expect-from-a-home-appraisal/" title="Home Light" target="_blank" rel="noopener noreferrer">Home Light</a> explains:
“. . . lenders typically require an appraisal to ensure that your loan-to-value ratio falls within their underwriting guidelines. Mortgages are secured loans where the lender uses your home as collateral in case you default on the agreed-upon payments.”
Put simply: when you apply for a mortgage, an unbiased appraisal – typically required by your lender – is the best way to verify the value of the home. That appraisal ensures the lender doesn’t loan you more than what the home is worth.
When buyers are competing like they are today, bidding wars and market conditions can push prices up. A buyer’s contract price may end up higher than the value of the home – this is known as an <a href="https://www.mykcm.com/2021/08/31/what-buyers-and-sellers-need-to-know-about-the-appraisal-gap" title="appraisal gap">appraisal gap</a>. In today’s market, it’s common for the seller to ask the buyer to make up the difference when an appraisal gap occurs. That means, as a buyer, you may need to be prepared to bring extra money to the table if you really want the home.
Home Inspection
Like the appraisal, the <a href="https://www.mykcm.com/2019/10/01/what-to-expect-from-your-home-inspection-2/" title="inspection">inspection</a> is important because it gives an impartial evaluation of the home. While the appraisal determines the current value of the home, the inspection determines the current condition of the home. As the <a href="https://www.homeinspector.org/Newsroom/Articles/Waiving-A-Home-Inspection-Good-Idea-or-Bad-Idea/15698/Article" title="American Society of Home Inspectors" target="_blank" rel="noopener noreferrer">American Society of Home Inspectors</a> puts it:
“Home inspections are the opportunity to discover major defects that were not apparent at a buyer’s showing. . . . Your home inspection is to help you make an informed decision about the house, including its condition.”
If there are any concerns during the inspection – an aging roof, a malfunctioning HVAC system, or any other questionable items – you have the option to discuss and negotiate any potential issues with the seller. Your real estate advisor can help you navigate this process and negotiate what, if any, repairs need to be made before the sale is finalized.
Keep in mind – home inspections are critical because they can shed light on challenges you may face as the new homeowner. Without an inspection, serious, sometimes costly issues could come as a surprise later on.
Bottom Line
Both the appraisal and the inspection are important steps in the homebuying process. They protect your best interests as a buyer by providing unbiased information about the home’s value and condition. Let’s connect so you have an expert guiding you throughout the entire process.
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2021-10-25T08:17:00-07:002022-09-23T10:26:39-07:00Tianna Sanabriatag:premrg.com,2012-09-20:3008Housing Supply Is Rising. What Does That Mean for You?<img src="https://assets.site-static.com/userfiles/1161/image/20210714-KCM-Share.jpg" width="750" height="410" />
An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications we may have hit the lowest point we’ll see. Odeta Kushi, Deputy Chief Economist at First American, recently <a href="https://twitter.com/odetakushi/status/1407338876155351044" title="said" target="_blank" rel="noopener noreferrer">said</a> of our supply challenges:
“It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.”
To put it into perspective, the graph below shows levels of inventory <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="rising" target="_blank" rel="noopener noreferrer">rising</a> since the beginning of the year:<a href="https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-98544" src="https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1.png" alt="Housing Supply Is Rising. What Does That Mean for You? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>We’re still not close to a <a href="https://www.mykcm.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/" title="balanced market">balanced market</a>, which would be a 6 months’ supply of homes for sale. However, we are seeing a slow but steady increase in homes coming up for sale. And that leaves many buyers and sellers wondering the same thing: what does that mean for me?
Buyers: More Options Are Arriving, so It’s Time To Act
If you’re a buyer, more inventory coming to market is a welcome sight. More supply means <a href="https://www.mykcm.com/2021/06/03/dreaming-of-a-bigger-home-why-not-buy-it-this-year/" title="more options">more options</a> and less competition, which could mean fewer bidding wars.
According to the latest <a href="https://www.realtor.com/research/june-2021-data/" title="Monthly Housing Market Trends Report" target="_blank" rel="noopener noreferrer">Monthly Housing Market Trends Report</a>, supply levels are continuing to increase, which is different from the <a href="https://www.mykcm.com/2021/07/13/why-this-isnt-your-typical-summer-housing-market/" title="typical summer">typical summer</a> market:
“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”
If you’re having trouble finding your next home, this news should give you the hope and motivation to keep your buying process moving forward. Experts project <a href="https://www.mykcm.com/2021/06/25/homebuyers-hang-in-there-infographic/" title="mortgage rates">mortgage rates</a> will begin increasing, which will make purchasing a home less affordable as time passes. You can still capitalize on today’s low interest rates, so stick with your search as more homes come to market.
Sellers: Our Supply Challenges Aren’t Over Yet, so Now Is the Time To Sell
If you’ve been putting off selling your house, you shouldn’t wait much longer. The year’s month-over-month gains in homes for sale have helped buyers, but we’re still very much in a sellers’ market.
As the graph below shows, even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically:<a href="https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-98545" src="https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2.png" alt="Housing Supply Is Rising. What Does That Mean for You? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2.png 1000w, https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Of course, more homes are coming to market now, and more are expected in the coming months. Selling <a href="https://www.mykcm.com/2021/05/13/your-house-could-be-the-oasis-in-an-inventory-desert/" title="your house">your house</a> this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.
Bottom Line
More homes for sale means more options for buyers and more competition for sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s still a good time to make your move.2021-07-14T07:08:00-07:002022-09-01T07:53:49-07:00Tianna Sanabriatag:premrg.com,2012-09-20:29765 Things Homebuyers Need To Know When Making an Offer<img src="https://assets.site-static.com/userfiles/1161/image/20210621-KCM-Share.jpg" width="750" height="410" />
When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With <a href="https://www.mykcm.com/2021/04/28/patience-is-the-key-to-buying-a-home-this-year/" title="inventory">inventory</a> hovering near record lows and sky-high buyer <a href="https://www.mykcm.com/2021/05/06/why-waiting-to-buy-a-home-could-cost-you-a-small-fortune/" title="demand">demand</a>, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.
1. Know Your Numbers
Having a complete understanding of your budget and how much house you can <a href="https://www.mykcm.com/2021/05/26/buying-a-home-is-still-affordable/" title="afford">afford</a> is essential. That’s why you should connect with a lender to get <a href="https://www.mykcm.com/2021/05/07/the-power-of-mortgage-pre-approval-infographic/" title="pre-approved">pre-approved</a> for a loan early in the homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war.
2. Brace for a Fast Pace
Today’s market is dynamic and fast-paced. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> from the National Association of Realtors (NAR), the average home is on the market for just <a href="https://www.mykcm.com/2021/05/28/homes-across-the-country-are-selling-fast-infographic-3/" title="17 days">17 days</a> – that means from start to finish, a house for sale in today’s climate is active for roughly 2.5 weeks. A skilled agent will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible.
3. Lean on a Real Estate Professional
While homebuying may seem like a whirlwind process to you, local real estate agents do this every day, and we know what works. That expertise can be used to give you a significant leg up on your competition. An agent can help you consider what <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="levers">levers</a> you can pull that might be enticing to a seller, like:
Offering flexible rent-back options to give the seller more time to move out
Your ability to do a quick close or make an offer that’s not contingent on the sale of your current home
It may seem simple, but catering to what a seller may need can help your offer stand out.
4. Make a Strong, but Fair Offer
Let’s face it – we all love a good deal. In the past, offering at or near the <a href="https://www.mykcm.com/2021/06/08/in-todays-market-listing-prices-are-like-an-auctions-reserve-price/" title="asking price">asking price</a> was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to <a href="https://www.cnbc.com/2021/05/21/april-existing-home-sales-drop-marking-three-straight-months-of-declines.html" title="Lawrence Yun" target="_blank" rel="noopener noreferrer">Lawrence Yun</a>, Chief Economist at NAR:
“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”
In such a competitive market, emotions and prices can run high. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.
5. Be a Flexible Negotiator
If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego. <a href="https://myhome.freddiemac.com/blog/homeownership/20201019_5_rules_for_making_an_offer_on_a_home.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a> explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Bottom Line
When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Let’s connect so you have expert advice on this step in the homebuying process to put your best offer on the table.2021-06-23T08:44:00-07:002022-09-28T07:11:57-07:00Tianna Sanabriatag:premrg.com,2012-09-20:2330Some Buyers Prefer Smaller Homes<img src="https://assets.site-static.com/userfiles/1161/image/20210413-KCM-Share.jpg" width="750" height="410" />
Over the past year, we’ve had plenty of opportunities to reflect on what we consider most important in our lives. The place we call <a href="https://www-realtor-com.cdn.ampproject.org/c/s/www.realtor.com/news/trends/housing-market-was-rocked-by-covid-19-where-we-go-from-here/amp/" title="home" target="_blank" rel="noopener noreferrer">home</a> is one of the biggest things many of us are reevaluating. George Ratiu, Senior Economist at realtor.com, shares:
“The very nature of the pandemic, through the health implications, social distancing, and need to isolate, has really brought a central focus on the importance of home for most Americans…In a sense, it has elevated real estate markets as a centerpiece of our lives.”
For some, this has spurred an interest in making a move to a home that better suits our changing needs. In a recent <a href="https://eyeonhousing.org/2021/03/nahb-releases-what-home-buyers-really-want-study-shows-covid-19-impacts/" title="study" target="_blank" rel="noopener noreferrer">study</a> on today’s homebuyer preferences, the National Association of Home Builders (NAHB) states:
“When asked more specifically how the pandemic may have impacted their preference for home size…21% or about 1 out of every 5 buyers, do want a larger home now as a direct result of the health crisis, while another segment – 12% – would prefer a smaller one instead.”
While you might expect more time at home to lead to a need for more space, it’s interesting that a significant portion of homeowners actually want less. For those who own larger homes right now and have a desire to move, today’s housing market is full of <a href="https://www.mykcm.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/" title="opportunities">opportunities</a>. Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/news/trends/its-a-home-sellers-market-and-baby-boomers-are-cashing-in.amp/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In a real estate market that is tipped in the favor of sellers, boomers and older homeowners are really the ones holding the cards…Those who are selling homes can use the profits to help them buy new ones.”
As a homeowner today, you likely have <a href="https://www.mykcm.com/2021/03/19/americans-see-major-home-equity-gains-infographic/" title="equity">equity</a> that can be put toward the purchase of your next home. With the equity growth homes have seen over the past year, you may have more than you think, which can help significantly as you make a move into your next home. According to a <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf" title="report" target="_blank" rel="noopener noreferrer">report</a> from the National Association of Realtors (NAR):
“Home sellers cited that they sold their homes for a median of $66,000 more than they purchased it. Sellers 22 to 30 years gained the least at $33,400 in equity compared to sellers 66 to 74 years gained $100,000 in equity as they likely had lived in their homes for a longer period of time.”
Despite the benefits of growing home equity, some homeowners are still hesitant to move and could be considering remodeling or making changes to their current space instead. However, if you’ve thought about aging in place rather than downsizing, you may want to reconsider. The U.S. Census Bureau <a href="https://www.census.gov/library/stories/2020/06/old-housing-new-needs.html" title="points out" target="_blank" rel="noopener noreferrer">points out</a>:
“Of the nation’s 115 million housing units, only 10% are ready to accommodate older populations.”
If your house is no longer the best fit for your evolving needs, it may be time to put your equity to work for you and downsize to the home you really want.
Bottom Line
Today’s housing market favors homeowners who are ready to sell their houses and make a move. If you’re thinking about downsizing this year, let’s connect to discuss your options in our local market.2021-04-13T09:24:00-07:002022-09-01T07:56:25-07:00Tianna Sanabriatag:premrg.com,2012-09-20:21014 Reasons People Are Buying Homes in 2021
<article id="post-96996" class="post-96996 post type-post status-publish format-standard has-post-thumbnail hentry category-first-time-home-buyers category-buyers category-interest-rates category-move-up-buyers-buyers">
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According to many <a href="https://www.mykcm.com/2020/12/31/four-expert-views-on-the-2021-housing-market/" title="experts">experts</a>, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.
Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.
1. Record-Low Mortgage Interest Rates
In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is <a href="http://www.freddiemac.com/pmms/" title="2.65%" target="_blank" rel="noopener noreferrer">2.65%</a>. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, <a href="https://www.bankrate.com/mortgages/mortgage-rate-forecast-for-january-2021/" title="advises" target="_blank" rel="noopener noreferrer">advises</a>:
“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”
This sense of urgency is driving many to buy this year.
2. Working from Home
Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, <a href="https://press.homes.com/pandemic-reshapes-homebuying-rental-decisions-homes-com-survey/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”
The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.
3. More Outdoor Space
Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.
According to the State of Home Spending report by <a href="https://www.homeadvisor.com/r/wp-content/uploads/2020/12/DP6355-StateOfHomeSpending-2020-R4.pdf" title="HomeAdvisor" target="_blank" rel="noopener noreferrer">HomeAdvisor</a>, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.
4. Avoiding Renovations
It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="report" target="_blank" rel="noopener noreferrer">report</a> from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”
Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some <a href="https://www.mykcm.com/2020/10/30/should-i-renovate-my-house-before-i-sell-it-infographic/" title="renovations">renovations</a> before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.
Bottom Line
It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, let’s connect today to discuss your options.
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2021-01-12T07:09:00-07:002022-09-01T08:01:37-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1953A Homeowner’s Net Worth Is 40x Greater Than a Renter’sOne of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when they’re so <a href="https://www.mykcm.com/2020/09/22/the-cost-of-a-home-is-far-more-important-than-the-price/" title="affordable" data-uw-rm-brl="false">affordable</a> in today’s market.
Every three years the <a href="https://www.federalreserve.gov/publications/files/scf20.pdf" title="Survey of Consumer Finances" target="_blank" rel="noopener noreferrer" aria-label="Survey of Consumer Finances - opens in new tab" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.federalreserve.gov/publications/files/scf20.pdf$surveyofconsumerfinances" data-uw-pdf-br="1" data-uw-pdf-doc="">Survey of Consumer Finances</a> shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.<a href="https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank" data-uw-rm-brl="false" aria-label="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM - opens in new tab" data-uw-rm-ext-link="" uw-rm-external-link-id="https://files.mykcm.com/2020/10/06123109/20201012-mem-eng-1.jpg$ahomeowner’snetworthis40xgreaterthanarenter’s|mykcm"><img loading="lazy" class="aligncenter wp-image-96048" src="https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1.jpg" alt="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" data-uw-rm-ima-original="a homeowner’s net worth is 40x greater than a renter’s | mykcm" /></a>
Owning a home is a great way to build family wealth.
For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the <a href="https://www.mykcm.com/2020/09/24/home-equity-gives-sellers-options-in-todays-market/" title="equity" data-uw-rm-brl="false">equity</a> you have in your home (See chart below):<a href="https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank" data-uw-rm-brl="false" aria-label="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM - opens in new tab" data-uw-rm-ext-link="" uw-rm-external-link-id="https://files.mykcm.com/2020/10/06123107/20201012-mem-eng-2.jpg$ahomeowner’snetworthis40xgreaterthanarenter’s|mykcm"><img loading="lazy" class="aligncenter wp-image-96047" src="https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2.jpg" alt="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2.jpg 1000w, https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2-600x450.jpg 600w, https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2-768x576.jpg 768w, https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" data-uw-rm-ima-original="a homeowner’s net worth is 40x greater than a renter’s | mykcm" /></a>The impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the <a href="https://www.mykcm.com/2020/07/10/americans-rank-real-estate-best-investment-for-7-years-running-infographic/" title="seventh year" data-uw-rm-brl="false">seventh year</a> in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.
Today, there are great opportunities available for those planning to buy a home. The <a href="https://www.mykcm.com/2020/09/28/housing-market-on-track-to-beat-last-years-success" title="housing market" data-uw-rm-brl="false">housing market</a> has made a full recovery, and all-time low <a href="https://www.mykcm.com/2020/08/11/current-buyer-seller-perks-in-the-housing-market/" title="interest rates" data-uw-rm-brl="false">interest rates</a> are giving homebuyers a big boost in purchasing power. If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.
Bottom Line
To learn how you can use your monthly housing cost to build your family’s net worth, let’s connect so you have a trusted professional to guide you through the homebuying process.2020-10-07T13:41:00-07:002022-09-28T07:32:07-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1908 The 2020 Homebuyer Wish List<img src="https://assets.site-static.com/userfiles/1161/image/20200904-MEM-1046x1536.jpg" width="1046" height="1536" />
Some Highlights
The word “home” is taking on a whole <a href="https://www.zillow.com/resources/new-construction/rethinking-floor-plans-for-covid/" title="new meaning" target="_blank" rel="noopener noreferrer">new meaning</a> this year, and buyers are starting to look for new features as they re-think their needs and what’s truly possible.
From more outdoor space to virtual classrooms for their children, buyers have a <a href="https://www.mykcm.com/2020/08/24/the-top-reasons-people-are-moving-this-year/" title="growing list">growing list</a> of what they’d like to see in their homes.
Let’s connect today if your needs have changed and your wish list is expanding too.
2020-09-04T08:25:00-07:002022-09-28T07:34:13-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1897Three Ways to Win in a Bidding War<img src="https://assets.site-static.com/userfiles/1161/image/20200831-KCM-Share.jpg" width="750" height="410" />
With so few houses for sale today and <a href="https://www.mykcm.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/" title="low">low</a> mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are heating up, so it’s important to get <a href="https://www.mykcm.com/2020/08/27/why-is-it-so-important-to-be-pre-approved-in-the-homebuying-process/" title="pre-approved">pre-approved</a> before you start your search. This way, you can put your best foot forward – quickly and efficiently – if you’re planning to buy a home this season.
Javier Vivas, Director of Economic Research at realtor.com, <a href="https://www.realtor.com/research/housing-market-recovery-index-trends-august-22-data/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“COVID-19 has accelerated earlier trends, bringing even more buyers than the market can handle. In many markets, fierce competition, bidding wars, and multiple offer scenarios may be the common theme in the weeks to come.”
Here are three things you can do to make your offer a competitive one when you’re ready to make your move.
1. Be Ready
A recent <a href="https://hub.realtor.com/blog/5-rampant-mortgage-myths-you-ll-hear-these-days-completely-debunked" title="survey" target="_blank" rel="noopener noreferrer">survey</a> shows that only 52% of active homebuyers obtained a pre-approval letter before they began their home search. That means about half of active buyers missed out on this key part of the process.
Buyers who are pre-approved are definitely a step ahead when it’s time to make an offer. Having a pre-approval letter indicating you’re a qualified buyer shows sellers you’re serious. It’s often a deciding factor that can tip the scale in your direction if there’s more than one offer on a home. It’s best to contact a mortgage professional to start your pre-approval process early, so you’re in the best position right from the start of your home search.
2. Present Your Best Offer
In a highly competitive market, it’s common for sellers to pick a date and time to review all offers on a house at one time. If this is the case, you may not have an opportunity to negotiate back and forth with the sellers. As a matter of fact, the National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/v-shaped-housing-market-recovery-in-july-2020" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Not only are properties selling quickly, but they are also getting more offers. On average, REALTORS® reported nearly three offers per sold property in July 2020.”
Make sure the offer you’re presenting is the best one the sellers receive. A real estate professional can help you make sure your offer is a fair and highly competitive one.
3. Act Fast
With <a href="https://www.mykcm.com/2020/08/25/builders-realtors-agree-real-estate-is-back/" title="existing homes">existing homes</a> going like hotcakes, there’s no time to waste in the process. NAR <a href="https://www.nar.realtor/newsroom/existing-home-sales-continue-record-pace-soar-24-7-in-july" title="reports" target="_blank" rel="noopener noreferrer">reports</a> how the speed of home sales is ramping up:
“Properties typically remained on the market for 22 days in July, seasonally down from 24 days in June and from 29 days in July 2019. Sixty-eight percent of homes sold in July 2020 were on the market for less than a month.”
In addition, NAR notes:
“Total existing-home sales…jumped 24.7% from June to a seasonally adjusted annual rate of 5.86 million in July. The previous record monthly increase in sales was 20.7% in June of this year. Sales as a whole rose year-over-year, up 8.7% from a year ago (5.39 million in July 2019).”
As you can see, the market is gaining steam. For two consecutive months houses have sold very quickly. Essentially, you may not have time to sleep on it or shop around when you find a home you love. Chances are, someone else loves it too. If you take your time, it may not be available when you’re ready to commit.
Bottom Line
The housing market is very strong right now, and buyers are scooping up available homes faster than they’re coming to market. If you’re planning to purchase a home this year, let’s connect to discuss the trends in our current area, so you’re ready to compete – and win.2020-08-31T12:10:00-07:002022-09-28T07:36:08-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1879Ask a Pro About Buying a Home<img src="https://assets.site-static.com/userfiles/1161/file/20200821-MEM-1046x1226.jpg" width="1046" height="1226" />
Some Highlights
According to trending <a href="https://www.cnbc.com/2020/08/10/consumers-less-confident-about-housing-but-google-searches-are-soaring.html" title="data" target="_blank" rel="noopener noreferrer">data</a>, searches for key real estate topics are skyrocketing online.
Clearly, lots of people have questions about buying a home, and other topics related to the process.
Working with a trusted real estate professional will help you create the most personalized and helpful experience. Let’s connect so you have the guidance you need along the way.
2020-08-21T12:43:00-07:002022-09-28T07:37:47-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1850Guidance and Support Are Key When Buying Your First Home<img src="https://assets.site-static.com/userfiles/1161/image/20200728-KCM-Share.jpg" width="750" height="410" />
In June, the number of first-time homebuyers accounted for 35% of the existing homes sold, a trend that’s been building steadily throughout the year. According to the National Association of Realtors (<a href="https://www.nar.realtor/blogs/economists-outlook/first-time-home-buyer-share-rose-to-35-in-june-2020-as-mortgage-rates-hit-record-lows" title="NAR" target="_blank" rel="noopener noreferrer">NAR</a>):
“The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012.” (See graph below):
<a href="https://files.mykcm.com/2020/07/27130324/20200728-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-94953" src="https://files.mykcm.com/2020/07/27130324/20200728-MEM-Eng-1.jpg" alt="Guidance and Support Are Key When Buying Your First Home | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/07/27130324/20200728-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/07/27130324/20200728-MEM-Eng-1-600x338.jpg 600w, https://files.mykcm.com/2020/07/27130324/20200728-MEM-Eng-1-768x432.jpg 768w, https://files.mykcm.com/2020/07/27130324/20200728-MEM-Eng-1-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Why the rise in first-time homebuying?
NAR continues to say:
“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher.”
Clearly, historically low <a href="https://www.mykcm.com/2020/07/15/mortgage-rates-hit-record-lows-for-three-consecutive-weeks/" title="mortgage rates">mortgage rates</a> are encouraging many to buy. With the average mortgage payment now estimated at a lower monthly cost than renting, it’s a great time for first-time homebuyers to enter the market. According to the <a href="http://eyeonhousing.org/wp-content/uploads/2020/07/HOUSING-TRENDS-REPORT-Q220.pdf" title="Q2 2020 Housing Trends Report" target="_blank" rel="noopener noreferrer">Q2 2020 Housing Trends Report</a> from the National Association of Homebuilders (NAHB):
“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over 60% of prospective buyers in the Northeast and South are buying a home for the first time. The share is above 55% in the Midwest and West.”
There are, however, challenges for first-time buyers. A recent <a href="https://www.neighborworks.org/getattachment/Homes-Finances/Homeownership/Housing-Survey/NeighborWorks_HousingFinancialCapabilitySurvey_2020.pdf.aspx?lang=en-US" title="survey" target="_blank" rel="noopener noreferrer">survey</a> conducted by NeighborWorks America also notes that understanding the homebuying process may be the most significant barrier for many hopeful homeowners:
“Homeownership is a particular challenge for many, despite high levels of interest. Americans believe there are many benefits to homeownership and half of non-owners will seek information about the process in the next few years…a large share of non-owners say the process is too challenging and only a minority know where to find advice if they wanted it. And although many would seek the guidance of community and non-profit programs, only one in three non-owners are aware of such services.”
<a href="https://files.mykcm.com/2020/07/27130327/20200728-MEM-Eng-2.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-94954" src="https://files.mykcm.com/2020/07/27130327/20200728-MEM-Eng-2.jpg" alt="Guidance and Support Are Key When Buying Your First Home | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/07/27130327/20200728-MEM-Eng-2.jpg 1000w, https://files.mykcm.com/2020/07/27130327/20200728-MEM-Eng-2-600x338.jpg 600w, https://files.mykcm.com/2020/07/27130327/20200728-MEM-Eng-2-768x432.jpg 768w, https://files.mykcm.com/2020/07/27130327/20200728-MEM-Eng-2-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>If you’re among the first-time homebuyers who feel the <a href="https://www.mykcm.com/2020/02/28/10-steps-to-buying-a-home-infographic-2/" title="process">process</a> is complicated, you’re not alone. If you’re not sure where to begin or you simply want help in figuring out how to save for a home, finding a trusted <a href="https://www.mykcm.com/2020/04/07/how-to-find-the-perfect-real-estate-agent/" title="real estate advisor">real estate advisor</a> to work with is a critical <a href="https://www.mykcm.com/2020/07/24/a-real-estate-pro-is-more-helpful-now-than-ever-infographic/" title="step">step</a> toward your success. A real estate professional can help you understand the process, review your current situation, and guide you with a plan to help you to feel confident when buying a home.
Bottom Line
If you’re interested in purchasing a home and need help getting started, let’s connect today so you can take advantage of the support available to guide you through each step of the way.2020-07-30T08:35:00-07:002022-09-28T07:39:36-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1756Want to Make a Move? Homeowner Equity is Growing Year-Over-Year
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One of the bright spots of the 2020 real estate market is the growth in equity homeowners are experiencing across the country. According to the recently released <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" title="Homeowner Equity Insights Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights Report</a> from CoreLogic, in nearly every state there was a year-over-year first-quarter equity increase, averaging out to a 6.5% overall gain.
The report notes:
“CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year.” (See map below):
<a href="https://files.mykcm.com/2020/06/17105640/20200618-MEM-ENG.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-94296" src="https://files.mykcm.com/2020/06/17105640/20200618-MEM-ENG.jpg" alt="Want to Make a Move? Homeowner Equity is Growing Year-Over-Year | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/06/17105640/20200618-MEM-ENG.jpg 1000w, https://files.mykcm.com/2020/06/17105640/20200618-MEM-ENG-600x450.jpg 600w, https://files.mykcm.com/2020/06/17105640/20200618-MEM-ENG-768x576.jpg 768w, https://files.mykcm.com/2020/06/17105640/20200618-MEM-ENG-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>This means that “In the first quarter of 2020, the average homeowner gained approximately $9,600 in equity during the past year.”
That’s a huge win for homeowners, especially for those looking to sell their houses and make a move this <a href="https://www.mykcm.com/2020/05/27/why-this-summer-is-the-2020-real-estate-season/" title="summer">summer</a>. Having equity to re-invest in your next home is a major force that can make moving a reality, especially while buyers are expressing such a <a href="https://www.mykcm.com/2020/06/16/three-reasons-homebuyers-are-ready-to-purchase-this-year/" title="high demand">high demand</a> for homes to purchase.
Frank Martell, President and CEO of CoreLogic addresses the potential long-term outlook and how homeowners will likely fare much more positively through the current <a href="https://www.mykcm.com/2020/06/10/is-a-recession-here-yes-does-that-mean-a-housing-crash-no/" title="recession">recession</a> than many did during the last one:
“Many homeowners will experience a recession during their lifetime, and it is reasonable to compare the current recession to those in the past. But the comparison is not apples to apples — every recession is different. Primary drivers of the Great Recession were an overbuilt housing stock, risky mortgages and the collapse of home prices, creating a massive increase in negative equity that proved difficult to recover from. Today’s housing environment has low vacancy and delinquency rates and a large home equity cushion.”
Bottom Line
Now is a great time to consider leveraging your equity and making a move, especially while buyer interest is high. Let’s connect to explore your equity position and make your next move a reality.
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2020-06-18T13:11:00-07:002020-06-18T13:13:55-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1734The Benefits of Homeownership May Reach Further Than You Think<img src="https://assets.site-static.com/userfiles/1161/image/20200601-KCM-Share-1.jpg" width="750" height="410" />
More than ever, our homes have become an integral part of our lives. Today they are much more than the houses we live in. They’re evolving into our workplaces, schools for our children, and safe havens that provide shelter, stability, and protection for our families through the evolving health crisis. Today, <a href="https://www.mykcm.com/2020/05/04/u-s-homeownership-rate-rises-to-highest-point-in-8-years/" title="65.3%">65.3%</a> of Americans are able to call their homes their own, a rate that has risen to its highest point in 8 years.
June is <a href="https://nationaldaycalendar.com/national-homeownership-month-june/" title="National Homeownership Month" target="_blank" rel="noopener noreferrer">National Homeownership Month</a>, and it’s a great time to reflect on the benefits of owning your own home. Below are some <a href="https://www.nar.realtor/sites/default/files/documents/white-paper-homeownership-incentivized-by-federal-system-02-06-2020.pdf" title="highlights" target="_blank" rel="noopener noreferrer">highlights</a> and quotes recently shared by the National Association of Realtors (NAR). From non-financial to financial, and even including how owning a home benefits your local economy, these items may give you reason to think homeownership stretches well beyond a sound dollars and cents investment alone.
Non-Financial Benefits
Owning a home brings families a sense of happiness, satisfaction, and pride.
Pride of Ownership: It feels good to have a place that’s truly your own, especially since you can customize it to your liking. “The personal satisfaction and sense of accomplishment achieved through homeownership can enhance psychological health, happiness and well-being for homeowners and those around them.”
Property Maintenance and Improvement: Your home is your stake in the community, and a way to give back by driving value into your neighborhood.
Civic Participation: Homeownership creates stability, a sense of community, and increases civic engagement. It’s a way to add to the strength of your local area.
Financial Benefits
Buying a home is also an investment in your family’s financial future.
Net Worth: Homeownership builds your family’s net worth. “The median family net worth for all homeowners ($231,400) increased by nearly 15% since 2013, while net worth ($5,000) actually declined by approximately 9% since 2013 for renter families.”
Financial Security: Equity, appreciation, and predictable monthly housing expenses are huge financial benefits of homeownership. Homeownership is truly the best way to improve your long-term net worth.
Economic Benefits
Homeownership is even a local economic driver.
Housing-Related Spending: An economic force throughout our nation, housing-related expenses accounted for more than one-sixth of the country’s economic activity over the past three decades.
GDP Growth: Homeownership also helps drive GDP growth as the country aims to make an economic rebound. “Every 10% increase in total housing market wealth would translate to approximately $147 billion in additional consumer spending, or 0.8% of GDP, as well as billions of dollars in new federal tax revenue.”
Entrepreneurship: Homeownership is even a form of forced savings that provides entrepreneurial opportunities as well. “Owning a home enables new entrepreneurs to obtain access to credit to start or expand a business and generate new jobs by using their home as collateral for small business loans.”
Bottom Line
The benefits of homeownership are vast and go well beyond the surface level. Homeownership is truly a way to build financial freedom, find greater satisfaction and happiness, and make a substantial impact on your local economy. If owning a home is part of your dream, let’s connect today so you can begin the homebuying process.2020-06-02T07:52:00-07:002020-06-02T07:54:12-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1725Top Reasons to Own Your Home [INFOGRAPHIC]
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Some Highlights
June is National Homeownership Month, and it’s a great time to consider the benefits of owning your own home.
If you’re in a position to buy, homeownership might help you find the stability, community, and comfort you’ve been searching for this year.
Let’s connect today to determine if homeownership is the right next step for you and your family.
</article>
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2020-05-29T10:45:00-07:002020-05-29T10:47:29-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1694#1 Financial Benefit of Homeownership: Family Wealth<img src="https://assets.site-static.com/userfiles/1161/image/20200518-KCM-Share.jpg" width="750" height="410" />
While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home. So, what exactly is equity? The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. A recent <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" title="study" target="_blank" rel="noopener noreferrer">study</a> by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:
“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”
For most families, their home is their largest financial asset. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they’re building the net worth of their landlord.
Bottom Line
Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we’ve seen over the last several years. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.2020-05-18T08:44:00-07:002020-05-18T08:46:18-07:00Tianna Sanabriatag:premrg.com,2012-09-20:16902020 Homeowner Wish List [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/1161/image/20200515-MEM-1046x1448.jpg" width="1046" height="1448" />
Some Highlights
In a recent study by <a href="https://www.realtor.com/research/top-consumer-home-features-coronavirus/" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>, homeowners noted some of the main things they would change about their homes to make them more livable.
Not surprisingly, more space, an updated kitchen, and a home gym rose to the top of the list.
If you’re thinking of selling this year, having these items in your listing might make your house more desirable than ever to potential buyers.
2020-05-15T11:20:00-07:002020-05-15T11:24:19-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1609How Technology is Helping Buyers Navigate the Home Search Process [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/1281/image/20200417-MEM-Eng-1046x1308.png" width="1046" height="1308" />
Some Highlights:
A recent realtor.com <a href="https://news.move.com/2020-04-16-Would-You-Buy-a-Home-Without-Stepping-Foot-Inside" title="survey" target="_blank" rel="noopener noreferrer">survey</a> revealed that buyers are still considering moving forward with the homebuying process, even if they can’t see the home in-person.
While they still prefer to physically see a home, virtual home tours and accurate listing information top the list of tech specs buyers find most helpful in today’s process.
Let’s connect today to determine how technology can help power your home search.
2020-04-21T14:42:00-07:002020-04-21T14:43:33-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1507New Homes Coming to the Housing Market This Year<img src="https://assets.site-static.com/userfiles/1161/image/20200309-KCM-Share.jpg" width="750" height="410" />
The number of building permits issued for single-family homes is the best indicator of how many newly built homes will begin to come to market over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" title="Residential Construction Report" target="_blank" rel="noopener noreferrer">Residential Construction Report</a>, the number of building permits issued in January was 1,551,000. This is a 9.2% increase from December.
How will this impact buyers?<br />
New inventory means more options. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.housingwire.com/articles/single-family-building-permits-rise-to-12-year-high/" title="explained" target="_blank" rel="noopener noreferrer">explained</a> how this is good news for the housing market – especially for those looking to buy:
“More construction will mean more housing inventory for consumers in the later months of this year…Spring months could still be quite tough for buyers since it takes time to convert housing starts into actual housing completions.”
How will this impact sellers?<br />
More inventory means more competition. Yun continues to say:
“As trade-up buyers move into these newly completed homes in the near future, their existing homes will be released onto the market.”
Today, because of the tremendous lack of <a href="https://www.mykcm.com/2020/01/29/where-have-all-the-houses-disappeared-to/" title="inventory">inventory</a>, a seller can potentially anticipate:
A great sale price on their house as buyers engage in potential bidding wars.
A quick sale as buyers have little inventory to choose from.
Fewer hassles as buyers want to smoothly secure a contract.
Bottom Line
If you’re considering selling your house, you’ll want to list sooner rather than later. This way, you’ll get ahead of this new competition coming to market and ensure the most attention toward your listing and the best price for your house.2020-03-09T11:11:00-07:002020-03-09T11:17:44-07:00Tianna Sanabriatag:premrg.com,2012-09-20:149510 Steps to Buying a Home [INFOGRAPHIC]
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Some Highlights:<br />
If you’re thinking of buying a home and you’re not sure where to start, you’re not alone.
Here’s a guide with 10 simple steps to follow in the homebuying process.
Be sure to work with a trusted real estate professional to find out the specifics of what to do in your local area.
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2020-02-28T08:03:00-07:002020-02-28T08:06:08-07:00Tianna Sanabriatag:premrg.com,2012-09-20:1478Entry-Level Homeowners Are in the Driver’s Seat<img src="https://assets.site-static.com/userfiles/1161/image/20200225-KCM-Share.jpg" width="750" height="410" />
One thing helping homeowners right now is price appreciation, especially in the entry-level market. In the latest <a href="https://www.corelogic.com/news/corelogic-reports-december-home-prices-increased-by-4-percent-year-over-year.aspx" title="Home Price Insights" target="_blank" rel="noopener noreferrer">Home Price Insights</a> report, CoreLogic reveals how home prices increased by 4% year-over-year and projects prices will rise 5.2% by December 2020.
Why is this good news for the homeowners?
When prices appreciate, homeowners gain <a href="https://www.mykcm.com/2019/08/14/the-benefits-of-growing-equity-in-your-home/" title="equity">equity</a>. In addition, those planning to sell this year, especially in the entry-level market, can potentially earn a substantial profit.
Dr. Frank Nothaft, Chief Economist at CoreLogic, says:
“Moderately priced homes are in high demand and short supply, pushing up values…Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.”
As Dr. Nothaft indicates, the lack of <a href="https://www.mykcm.com/2020/02/12/the-1-reason-to-list-your-house-right-now/" title="inventory">inventory</a> continues to drive home price growth. This means there’s a high demand for homes in this tier of the market, making it a great time to consider using your equity to move up to a bigger or more premium home.
When you upgrade your home, you may be able to find the amenities or features you’ve dreamed of – such as a yard to plant or garden in with your family this spring, or more outdoor space for entertaining this summer. Maybe it’s the master bath you’ve always hoped for, or a garage to finally park your car inside.
Whatever you choose, if you’re moving out of an entry-level house, you’re likely going to be in the driver’s seat as a seller.
Bottom Line
If you’d like to own a bigger home, let’s get together to discuss your situation. You may be surprised by the current value of your home and the equity you’ve gained.2020-02-25T07:15:00-07:002020-02-25T07:20:39-07:00Tianna Sanabria