Tips to Sell Your Home Faster

When selling your house, there are a few key things you can prioritize to have the greatest impact for a faster sale:

1. Make Buyers Feel at Home

Declutter your home! Pack away all personal items like pictures, awards, and sentimental belongings. Make buyers feel like they belong in the house. According to the 2019 Profile of Home Staging by the National Association of Realtors, “83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”
Not only will your house spend less time on the market, but the same report mentioned that, “One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.”

2. Keep It Organized

Since you took the time to declutter, keep it organized. Before buyers arrive, pick up toys, make the bed, and put away clean dishes. According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers. Put out a scented candle or some cookies fresh from the oven. Buyers will remember the smell of your home.

3. Price It Right

More inventory coming into the market guarantees there will be some competition. You want to make sure your home is noticed. A key to selling your house is ensuring it is Priced to Sell Immediately (PTSI). This means you’ll be driving more traffic to your property, and ultimately creating more interest in your home.

4. Give Buyers Full Access

One of the top four elements when selling your home is access. If your home is available anytime, that opens up more opportunity to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one.

Bottom Line

If you want to sell your home in the least amount of time at the best price with as little hassle as possible, reach out to a local real estate professional to find out what you need to do to sell your home as quickly as possible.

The True Cost of Not Owning Your Home

There are great advantages to owning a home, yet many people continue to rent. The financial benefits are just some of the reasons why homeownership has been a part of the long-standing American dream.
Realtor.com reported that:

“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”

Why is owning a home financially better than renting?

Here are the top 5 financial benefits of homeownership:

1. Homeownership is a form of forced savings.
2. Homeownership provides tax savings.
3. Homeownership allows you to lock in your monthly housing cost.
4. Buying a home is less expensive than renting.
5. No other investment lets you live inside of it.

Studies have also shown that a homeowner’s net worth is 44x greater than that of a renter.
A family that purchased a median-priced home at the start of 2019 would build more than
$37,750 in family wealth over the next five years with projected price appreciation alone.
Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!

Bottom Line

Owning a home has many social and financial benefits that cannot be achieved by renting. Reach out to a Real Estate Professional to determine if buying a home is your best move.

7 Reasons to List Your House This Holiday Season

Around this time each year, many homeowners decide to wait until after the holidays to list their houses. Similarly, others who already have their homes on the market remove their listings until the spring. Let’s unpack the top reasons why listing your house now or keeping it on the market this winter may be the best choice you can make.

Here are seven great reasons not to wait:

1. Relocation buyers are out there now. Many companies are still hiring throughout the holidays, and they need their new employees to start as soon as possible.
2. Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now.
3. You can restrict the showings on your home to days and times that are most convenient for you. You will remain in control.
4. Homes show better when decorated for the holidays.
5. There is minimal competition for you as a seller right now. Over the past few months we’ve seen the supply of homes for sale decreasing year-over-year, as shown in the graph below:
6. The desire to own a home doesn’t stop during the holidays. Buyers who were unable to find their dream homes during the busy spring and summer months are still searching, and your home may be the answer.
7. Late fall and early winter make up the “sweet spot” for sellers. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge and reach new heights in 2020, which will lessen the demand for your house next year.

Bottom Line 

It may make the most sense to list your home this holiday season. Reach out to a local real estate professional to determine if selling now is your best move.

Liquid Drain Cleaners

Clogged drains may be a pain, but liquid drain cleaners are even worse. They're no friend to the environment with their high toxicity levels that make them hazardous water pollutants. And their fumes are bad for air quality and unhealthy to inhale. Even if you plug your nose while you pour the stuff down the drain, the fumes hang in the air for longer than you'd think.
Basically, these products cause damage everywhere they go. The chemicals in the cleaners are corrosive to plumbing lines made of iron and steel. And if your lines are made from PVC, the chemical reaction that occurs creates heat and can soften the plastic. The liquid is likely to end up sitting in your pipes, so the more you pour, the weaker they will get. In the end, you'll end up with rusted or even broken pipes, which will cost you a whole lot more to fix than a clog should.

It's also important to know what kind of clog you're dealing with. Drain cleaners only have the potential to be useful if it's organic material that's backing things up. If there's a sewage problem, on the other hand, or if you have a broken pipe, those cleaners won't do a thing.

All in all, it's much smarter and safer to go with an alternative. A plumber's auger is like a shorter, manual drain snake and can break up clogs from hair and grease. There are also plungers that can loosen the clog, and enzyme and bacteria-based cleaners that can break down matter without harming you, your pipes, or the environment.

So don't take the easy way out. In the end, liquid drain cleaners cause much more harm than good, and the alternatives are more effective anyway. If nothing else works, you can always depend on your trusted and licensed handyman or plumber.

Millennials Buying Homes

Though there are a number of stereotypes surrounding Millennials, they actually make up a fairly significant part of the economy. More importantly, their economic strength as a group seems to be growing by the day. As of 2019, Millennials make up approximately 37 percent of home buyers… that’s a bigger share than any other generation, including Baby Boomers! So what exactly are these Millennials buying, and what trends are growing along with their increasing representation in the market? Let’s take a closer look and find out.

First-Time Buyers

Approximately 52 percent of Millennials who are buying homes are first-time home buyers. This makes sense for younger Millennials, but even older Millennials who were born in the 80s still see a significant number of first-time buyers. Before buying, a large number of these Millennials were renting homes. By buying homes, they can enjoy the benefits of ownership and build equity for similar amounts (or in some cases, less) than they were paying each month in rent previously.

Family Homes

The majority of home-buying Millennials are buying single-family homes. This is in part because over 50 percent of them are either married or in long-term relationships; in fact, in 2018 there were more married couples among home-buying Millennials than there were in any other generational group that was in the market for a house. A significant number of Millennials also have children under the age of 18 living at home, further increasing the need for a family-friendly home.

Motivation to Buy

The majority of Millennials who have bought homes within the last year did so simply because they wanted to own a home of their own. Some wanted to own a larger home, be closer to friends and family or were moving due to job relocation, but the general desire to own a home was listed as a reason for buying by as many Millennials as ones that gave all other reasons combined. A lot of this came down to the opportunities that were present as well; over 50 percent of Millennials report that it was “just the right time” to buy a home, while the second most common reason (that they didn’t have much choice and had to buy when they did) was only reported by around 10 to 15 percent of Millennials.

Back to the Suburbs

One big trend among Millennial home buyers is that they were buying homes in the suburbs. This wasn’t restricted only to Millennials, either; 51 percent of all homes purchased in 2018 were located in suburban areas or subdivisions. The Millennials fell pretty close to this statistic, with small towns being the second most common location. A vast majority of these homes were previously owned; though there have been a number of new subdivisions built around the country in recent years, only a small percentage of Millennials are buying into them.

Biggest Factors

There are a number of factors that affected the purchasing decisions of Millennials. The presence of public transit or proximity to work was one major factor, with many Millennials trying to minimize commuting costs. Heating and cooling efficiency also played an important role. In general, Millennials were more willing to compromise on price than on a home’s condition, but only around 20 percent were willing to compromise on the distance of their new home from work.

Home Shopping Trends

By far, the majority of Millennials started their home search by looking online to try and find properties for sale. Around 15 percent spent even more time online than that, starting their search by researching the ins and outs of the home buying process before even starting to look at properties. Beyond online sources, Millennials trusted real estate agents and Realtors the most for information about homes for sale. The entire process took about 10 weeks on average before finding the home they wanted to buy, though a real estate agent was involved for the last 7 or so weeks of the search.

In the Market?

Are you a Millennial in the market for a new home?

Buyers Are Looking Now. Are You Ready to List Your Home?

Inventory on the market today is low, especially among existing homes in the entry and middle-level tiers of the market. It is hovering well below the 6-month supply typically found in a more normal market, as shown in the graph below:With inventory being one of the biggest housing market challenges today, finding a starter home right now isn’t easy. According to the Q3 Housing Trends Report from the National Association of Homebuilders (NAHB), 68% of those searching for a home think their search will get harder or stay about the same over the next 12 months.
The same study reveals,

“In Qtr3’19, buyers actively engaged in the process of buying a home are more likely to have spent at least 3 months searching (58%) than a year earlier (55%).”

 This is certainly no surprise, given the current inventory status. So, what’s the good news? The NAHB continues to say,

“If still unable to find a home in the next few months, the next step for most long-time searchers is to continue looking for the ‘right’ home in the same preferred location (52%). The next step for 35% is to expand their search area and for 16% is to accept a smaller/older home. Only 15% will give up looking.”

What does this mean for homeowners?

 If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t planning on giving up anytime soon. The majority of potential buyers who are still searching for their dream home are eager, willing, and ready to buy, so maybe it’s time to list your house and make your move.

Bottom Line

With buyer demand as high as it is today, and inventory in the entry and middle-tier markets remaining low, it’s never been a better time to move up. Reach out to a local real estate professional to determine if now is your time to sell.

Expert Advice: 3 Benefits to Owning a Home

Success is something often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has certainly made his way in a momentum-driving direction. Here are 3 tips he shares from a recent piece in Business Insider on the benefits of owning real estate:

1. Real estate diversifies your income

“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”

The article highlights how having multiple sources of income, such as those derived from real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement.

2. Real estate produces near-immediate results

“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”

Currently, home prices are appreciating in all price ranges, and just last week CoreLogic announced their 12-month home value projection at 5.6%, an increase from 4.5% noted earlier this summer. With that in mind, real estate today is definitely driving immediate results!

3. Passive income can help you become financially independent sooner

“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.
While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”

Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence.

Bottom Line

If you want to increase your savings and overall net worth, real estate is a great way to go. To learn how you can make it happen, contact a local real estate professional to guide you through the process.

Who is Brent Sutherland?

Sutherland was 35 when he bought his first single home to rent out for income, less than five years later, he owns eight additional properties and part of a commercial real estate project.

2 Myths Holding Back Home Buyers

In a recent article, First American shared how millennials are not really any different from previous generations when it comes to the goal of homeownership; it is still a huge part of their American Dream. The piece, however, also reveals,

 “Saving for a down payment is one of the biggest obstacles faced by first-time home buyers. Dispelling the 20 percent down payment myth could open the path to homeownership for many more.”

 Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate how much they need to qualify for a home loan. According to the same article:

“Americans still overestimate the qualifications needed to get a mortgage, resulting in qualified potential buyers not even considering homeownership. Indeed, the Urban Institute report revealed that 16 percent of consumers believed that the minimum down payment required by lenders is 20 percent or more, and another 40 percent didn’t know at all.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a little research, many renters may actually be able to enter the housing market sooner than they ever imagined.

Myth #2: “I Need a 780 FICO® Score or Higher”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing a ‘good’ credit score is 780 or higher.
To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.As indicated in the chart above, 50.23% of approved mortgages had a credit score of 500-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Believe it or not – your dream home may already be within your reach.

How to Make Your Property Look Its Best Before Showings

When you're ready to put your home on the market, make sure it looks its very best in order to outshine the competition.

While there are many things you can do to enhance your property, here are four of the most important aspects to highlight when attempting to attract buyers:

Appeal

Appeal reigns supreme when it comes to attracting prospective buyers. They're looking for an attractive residence that'll present a welcoming façade and inspire pride in ownership. Inspect the interior and exterior of your home from a buyer's perspective. Every room and space inside, as well as the lawn, walkways and outbuildings, should be aesthetically appealing with coordinated colors and designs. Mismatches in structure or decor are usually a turnoff to those seriously interested in purchasing a home.

Cleanliness

Everything should be orderly. Get rid of trash, debris and weeds that can make the property appear uncared for. Unused items that are stored in closets, cupboards, the attic or the garage should be removed to make those areas appear more spacious and useful. All surface areas, including counters, floors, walls and ceilings should be free of dust or stains. Bathrooms should appear especially tidy and free of moldy tiles or rusty fixtures.

Freshness

Even a mansion can appear old and uninviting. Freshen the paint indoors, replace missing tiles and hardware and upgrade bathroom fixtures. Hardwood floors can be polished, or new carpet may be installed. Windows should be clean without spots or stains. Everything about the property should look well cared for and updated. Up the ante even further by cutting the grass and weeding any flower beds on the property.

Functionality

Make sure everything about the property is in good working order. Check electric switches and replace burned out bulbs. Check to see that cabinet drawers close completely and evenly. Inspect appliances and equipment for any problems or flaws that should be fixed before the property goes on the market. Creaking doors can be lubricated. Broken window latches should be repaired or replaced. Ensure the toilet flushes completely and that no faucets are leaking. Additionally, do a walk-through of the property and visualize how prospective buyers might see the space.

Your property should look its best as soon as you put up the for-sale sign. You may not get feedback about what causes a prospective buyer to not place an offer; however, the better the property looks and functions, the faster it's likely to sell!

What's the Difference in Pre-Qualification and Pre-Approval?

Before looking for a home, you need to know how much you can afford. While you may have a number in your head, the lender has the final say. Securing a pre-approval from a lender helps make the home buying process easier and helps to avoid delays.
Many buyers confuse the terms pre-qualification and pre-approval. They mean two different things. In simple terms, a pre-qualification is an estimate of what you can afford. A pre-approval is a conditional approval based on the proof you provide.

The pre-qualification is a preliminary step some borrowers take to get a feel for what price home they can afford. Based on your income, assets, and estimated credit score, lenders can estimate what you can afford.

It's important to know, there's nothing binding about a pre-qualification. It's simply a starting point.   When you are serious about buying a home, though, you want a pre-approval.

Before you shop for a home, meet with a recommended lender to get a pre-approval letter. Sellers and/or Realtors value this letter because it shows you are likely to secure the necessary financing and serious about buying a home.

Lenders meet with you in person to create the pre-approval. You'll provide the lender with all the following:

• Permission to order your credit report
• Paystubs, W-2s and/or tax returns to prove your income
• Asset statements, investment statements or any other proof of assets
• Proof of employment
• Any other miscellaneous documentation required by lender

Lenders evaluate the documents and determine your conditional approval. The letter will state the mortgage amount you qualify for, the loan's terms, and any conditions the approval is contingent upon. 

Normally, final approval is contingent on a fully executed sales contract of the property to be purchased, a satisfactory appraisal and clear title on the property.
Once a purchase contract is signed, the lender completes the underwriting on your loan. They will confirm that the property meets the necessary requirements. The lender will also re-confirm your income, assets, employment, and credit information before closing on the loan.

Securing a pre-approval prior to beginning the home buying process will give you confidence and can help your negotiations with the seller.

Top 10 Things That Need Fixing When You Buy a New Home

When you buy your new home, you are excited and exhilarated. You are moving and living in this amazing new place. But then you move in and all of a sudden your need to start fixing quirky things that you did not see when you first looked at the house. These are the top things in the house that generally need fixing when you buy a new home.

It’s good practice to set aside some money for these fix it and repair projects when buying your home.

Replacing Light Bulbs with Energy Efficient Bulbs

You can immediately start saving money with more energy efficient light bulbs. So setting aside some time and money to buy these bulbs and to replace them around the house will be helpful to your budget. Replacing light bulbs can be done in one simple hour. It is worth your time to save money in the long term.

Replacing Hoses Around the House

Hoses wear out over time. They are left outside and the sun and cold weather cause them to be less effective. Changing hoses with new hoses can help manage the pressure in your hose and prevent any leaks.

Replacing Air Filters

Replacing air filters is important to ensure you have clean air and good functioning heating and air conditioning units. It is good to do this immediately as you probably do not know when the air filters were last changed unless you asked for a HomeZada review of the house.

Replace Water Filters

Your home may have a water filter system in it. Like the air filters, you do not know when the water filters were last changed. It is good practice to change the filters and set up a schedule when you will continue to replace them.

Clean out the Dryer Vent

Cleaning out the dryer vent will prevent fires from occurring in your laundry room. This is another one of those task that is best to schedule. Cleaning out the dryer vent is a good task to accomplish at least once per year. Without knowing when it was last cleaned, it is best to do it yourself. Some people have not cleaned their dryer vent for 10 years. That is a huge risk of fire. And a clogged dryer vent, will force your clothes dryer to work harder. Thus increasing your energy bill.

Clean the Stove Filter or Fume Hood

This is important and like the dryer vent, this area can cause a fire with grease build up. Without knowing when the previous owners cleaned the stove filter or fume hood, you are better off taking care of this immediately rather than later. Not to mention, your food will taste better.

Check all the Home GFIs

This is a great little task that can be highly valuable. Walk around your home, test if all the GFIs are working. If you run into ones that are not, then replace them. Pay attention when you unhook the original and replace it with the new GFI. If you are uncomfortable, hire an electrician to help you.

Check the Sprinkler System

Your new home may have a sprinkler system. It is important to walk around your yard while the sprinkler system is on and to make sure all the water is flowing and flowing properly. Some of your sprinkler heads may be broken and you need to replace drip caps or sprinklers to keep water on plants. This will also prevent wasted water from overflowing elsewhere. By replacing broken sprinkler heads, you will also save money on your water bill.

Change Your Locks

You do not know who the previous owners gave a key to while living in their home. They may have given it to family members, cleaning providers or other professionals. The last thing you want is unknowns coming into your home. Change the locks to avoid any issues.

Check Garage Door Safety Light

There is a safety light on automatic garage doors. This safety light protects pets, children, and adults from getting hurt and cars from getting damaged. It is good to test this light before opening and closing your garage doors.

These simple fixes make managing your new home easier.

Homeownership Rate Remains on the Rise

In the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market.
The U.S. Census Bureau announced,

“The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”

Today there is still a lack of inventory, particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.

Bottom Line

If you’re thinking of buying a home, contact a local real estate professional to make your dream a reality.

75 Years of VA Home Loan Benefits

Today, on Veterans Day, we salute those who have served our country in war or peace, and we thank them for their sacrifice.
This year marks the 75^th anniversary of VA Home Loan Benefit offerings through the Servicemen’s Readjustment Act, also known as the GI Bill. Since 1944, this law has created opportunities for those who have served our country, ranging from vocational training to home loans.

Facts About VA Home Loans:

• Nearly 24 million home loans have been guaranteed by the Veterans Administration.
• Nearly 82% of VA home loans are made with no down payment.
• The VA also provides grants to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs. Last year the VA provided 2,000 grants totaling $104 million.

Benefits of a VA Home Loan:

1. No down payment
2. No Private Mortgage Insurance*
3. Lower credit score requirements
4. Limitation on closing costs
5. Lower average interest rates

*More information on VA Home Loan Fees

Bottom Line

The best thing you can do today to celebrate Veterans Day is to share this information with those who can benefit from these opportunities. For more information, or to find out how to qualify to use a VA Home Loan Benefit, contact a local real estate professional who can help you through the process. Thank you for your service!

Housing Market Sees Re-Acceleration in Home Prices

Good news for sellers: Home prices are on the rise. But buyers should brace for higher prices.
Nearly all—93%—of the largest metros in the U.S. saw home prices rise in the third quarter over the past year. A shortage of homes for sale, combined with higher demand, continues to push home prices higher, according to the latest quarterly report from the National Association of REALTORS®, released Thursday.

The national median existing single-family home price in the third quarter was $280,200, a 5.1% increase from a year ago.

“Incremental price increases are to be expected, but the housing market has been seeing re-acceleration in home prices as more buyers want to take on lower interest rates in the midst of insufficient supply,” says Lawrence Yun, NAR’s chief economist. “Unfortunately, income and wages are not rising as fast and will make it difficult to buy once rates rise.”

Ninety-six out of 178 metros that NAR tracked saw home price growth of 5% or higher. Ten metros saw double-digit increases in the third quarter annually, led by Montgomery, Ala. (12.6%); Spokane-Spokane Valley, Wash. (12.6%); and Salt Lake City (12%).

Yun has repeatedly called on the new-home industry to build more to meet the growing demand. He acknowledges there has been some progress. “In some markets, yes, we’re seeing construction companies ramp up plans to build more houses,” Yun says. “But in an overall comparison of 2019 and 2018, fewer homes have been built. So, hopefully home builders will expand their plans in order to better address the national inventory shortage.”

At the end of the third quarter, 1.83 million existing homes were available for sale. That is 2.7% less than the year ago. The average supply during the third quarter was 4.1 months.

While the majority of metros saw higher prices in the third quarter, a few markets did register lower prices, notably in areas long-known for high costs. Single-family median home prices moderated in the third quarter in markets such as San Jose-Sunnyvale-Santa Clara, Calif. (–4.6%); San Francisco-Oakland-Hayward, Calif. (–2.5%); and San Diego-Carlsbad, Calif. (–0.8%).

Forget the Price of the Home. The Cost is What Matters.

Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months.
The reacceleration of home values will cause some to again voice concerns about affordability. Just last week, however, First American came out with a data analysis that explains how price is not the only market factor that impacts affordability. They studied prices, mortgage rates, and wages from January through August of this year. Here are their findings:

Home Prices

“In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house. By August, that home had appreciated to $395,000, an increase of $21,100.”

Mortgage Interest Rates

“The 0.85 percentage point drop in mortgage rates from January 2019 through August 2019 increased affordability by 9.7%. That translates to a $40,200 improvement in house-buying power in just eight months.”

Wage Growth

“As rates have fallen in 2019, the economy has continued to perform well also, resulting in a tight labor market and wage growth. Wage growth pushes household incomes upward, which were 1.5% higher in August compared with January. The growth in household income increased consumer house-buying power by 1.5%, pushing house-buying power up an additional $5,600.”

When all three market factors are combined, purchasing power increased by $24,500, thus making home buying more affordable, not less affordable. Here is a table that simply shows the data:

Bottom Line

In the article, Mark Fleming, Chief Economist at First American, explained it best:

“Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”

Millennials: Here’s Why the Process is Well Worth It.

Millennials have waited longer than any other generation to become homeowners, but the wait for this cohort is just about over. According to National Mortgage News,

 “Millennials, those young adults now aged 23 to 38, are now entering their peak household formation and homebuying years.”

If you’re a Millennial, you’re already well aware that you’re among a generation of those who favor fast-paced, real-time answers – and results. When you’re ready to make a decision, it’s go-time, and you probably want the latest technology at your fingertips to make it happen.
National Mortgage News agrees, stating,

“Millennials are different than previous generations—not only in their delayed homebuying but also in how they approach interactions with financial institutions, including mortgage lenders. Taking a picture of a check on their phone and depositing it without visiting a branch is not novel, it’s the way Millennials learned to do banking. They expect real-time access to account and transaction data and are frustrated when it’s not available.”

Here’s the catch – the overall speed of the homebuying process can take some time, and it might feel like it is slowing you down. When you’re ready to buy, you can make an offer and go under contract quickly, but the rest of the process might take a little longer. The same article explains why:

“When Millennials apply for a loan, the mortgage lender must qualify the borrower and determine who owns the property, how much the property is worth, and the property’s risk profile. Traditionally, this has been one of the most time-consuming and fragmented parts of the mortgage process…There are many moving pieces, each data point being sourced from a different provider, which can ultimately lead to a lengthy or delayed process.
 What has historically been accepted as the process norm does not align with the expectations of the most prominent generation in the home buying market today. Millennials have come to expect rapid, digital workflows in their daily purchase decisions, and in their mind, the home buying process shouldn’t be any different.”

So, where do you go from here?

 If you’re pre-approved for a mortgage, that will help speed things up. But the steps it takes and the time to finalize a loan with most traditional lenders may feel like an eternity to you and your generational peers. Don’t worry, though – it’s well worth the wait when you finally get the keys to your new castle!
The financial benefits of homeownership, like increasing your net worth by building equity, and the non-financial benefits, like being able to customize and improve your space, will ultimately set you on the course to happiness, success, overall satisfaction, and much, much more.

Bottom Line

If you’re feeling like it’s go-time, reach out to a local real estate professional and get the process moving to determine if homeownership is your next best step.

Planning on Buying a Home? Be Sure You Know Your Options.

When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited existing home inventory available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams.

According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB),

“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.”

This is great news for homebuyers because it means there is additional inventory coming to the market, giving buyers more choices. The most recent data from NAHB shows,

“The inventory of new homes for sale was 321,000 in September, representing a 5.5 months’ supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300.”

Another added bonus is that builders are very aware of buyer demand in this segment, so they’re now building in a price range where there are more interested buyers ($299,400 instead of $328,300). With a reduced sales price and low-interest rates, today’s buyers have strong purchasing power.

Bottom Line

If you’re thinking of buying a home, you may want to consider a new build to meet your family’s needs. Contact a local real estate professional to learn more about the process and what’s available in your area.

The #1 Reason to List Your House in the Winter

Many sellers believe spring is the best time to put their homes on the market because buyer demand traditionally increases at that time of year. What they don’t realize is if every homeowner believes the same thing, then that’s when they’ll have the most competition.

So, what’s the #1 reason to list your house in the winter? Less competition.

Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months supply of listings from the National Association of Realtors.As you can see, the ‘sweet spot’ to list your house for the most exposure naturally occurs in the late fall and winter months (November – January). 
Temperatures aren’t the only thing that heats up in the spring – so do listings!In 2018, listings increased from December to May. Don’t wait for these listings and the competition that comes with them to come to the market before you decide to list your house.

Added Bonus: Serious Buyers Are Out in the Winter

At this time of year, purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers.’ The lookers are at the mall or online doing their holiday shopping.

 Bottom Line

If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, talk with a local real estate professional who can help you decide the best time to list your house.

What’s New in Legislation for Homeowners?

Owning a home can be expensive, though the benefits of home ownership typically outweigh the cost. Occasionally, changes to the law at either the state or national level can affect how these benefits and costs affect you. This is especially true if you’re still considering whether or not to buy a house, since knowing how the law stands can have a big impact on your final decision.
Some legislation affecting homeowners is enacted at the federal level, while other bits of legislation come from the state. Because of the significant differences in the reach of these different types of legislation, it can be hard to cover all of the changes in law that affect homeowners from year to year. To help keep you informed, though, here are some fairly recent legislation trends that may be worth looking into.

Tax Break Changes

One big change that’s hitting a lot of homeowners hard is the elimination of some tax breaks that were formerly offered for home ownership. While this doesn’t directly affect the cost of owning a home, it can have a significant impact on your tax return if you were expecting to qualify for one of these expired breaks. Tax law is complex and can change from one year to the next, so it’s possible that these breaks (or others like them) will see a return in future years. However, it’s important to check each year before filing your taxes to make sure that you haven’t gotten mixed up by tax break changes or missed a break that you could have qualified for.

Roof Replacement Costs

In some areas, the law allowed homeowners to replace their roof without all of the costs normally associated with such a big job. This was due to contractors being allowed to waive a portion of their fees equal to the deductible on the customer’s homeowner’s insurance. Unfortunately, changes in the law are starting to shut this down. States like Texas are changing the law so that contractors caught waiving the deductible could face fines or even jail time. Homeowners obviously aren’t big fans of such changes, since they result in more out-of-pocket expenses when having to use their homeowner’s insurance.

Solar and Alt Energy Incentives

There were a number of solar and alternative energy incentives available to homeowners at both the state and federal level, but some of these have been altered, were negated or simply expired without renewal in the last year or two. In some cases, federal programs have been replaced by state programs that provide similar incentives. In other cases, the incentives have been revamped and renewed later. Not all tax breaks and other incentives have been renewed, though, so it’s important for homeowners to confirm that specific programs still exist before depending upon them to add alternative energy solutions to their homes.

Home Loan Changes

It seems like there are significant changes to home loans every few years – and recent years have been no exception. Fortunately for those wanting to buy a new home or refinance an existing loan, some recent bits of legislation have expanded on borrowing limits for certain types of loans without adding new restrictions. Unfortunately, many of these laws affect lending through state-level programs instead of making adjustments to loans at the federal level. Some also only affect certain types of homes or houses that are built for specific uses. If you’re waiting for changes to federal loan programs, you may have to wait a bit longer before those programs see major updates.

Consult the Experts

It’s hard to stay on top of the changes in laws from one year to the next. Having a lawyer or real estate expert to help you sort through all of it can be a great way to keep from being caught unprepared by these new laws.