Americans’ Powerful Belief in Homeownership as an Investment

The Federal Reserve Bank (The Fed) recently released their 2019  Survey of Consumer Expectations Housing Survey. The survey reported that 65% of Americans believe homeownership is a good financial investment. Since 2014, the percentage has increased by over nine percent.The Fed’s survey also showed that when the results are broken down by age, education, income, or region of the country, more than 55% of Americans in each category see homeownership as a good investment.

This coincides with a recent Gallup survey of Americans which revealed that real estate was their number one choice for the best long-term investment when compared to stocks, savings accounts or gold.

Bottom Line

Americans’ belief in residential real estate as a good financial investment continues to grow as the housing market returns to normalcy.

Now’s the Time to Move-Up and Upgrade Your Current Home!

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.

Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.


According to ILHM’s Luxury Report, this mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.

“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”

The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.

“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

Bottom Line

If you are debating upgrading your current house to a premium or luxury home, now is the time!

Summertime Selling Tips

Since school is out and the days are longer, summertime is the perfect time to put your house on the market. Take advantage of warmer weather to spruce up areas that need it. Make sure that when prospective buyers come to look at your home it gleams under the summer sun.

Freshen Up

It's amazing what a big difference a bit of freshening up can make. Indoor and outdoor spaces alike need to reflect the care you’ve given them. It's a good idea to patch holes in drywall, clean carpet and make any repairs that might be a safety concern. A fresh coat of paint can make a dramatic difference. Repaint any rooms that could use some brightening. You don't need to paint the exterior of your house to freshen it up. Try pressure washing siding and decking so that everything looks pristine.

Decorate More Generically

As precious as your family photos are, they are not ideal for potential homebuyers and can be distracting. Clear out any personal items in your home like photos, collections and award certificates. This also includes items that might be considered controversial, such as political flags or morally questionable paraphernalia. It’s not always easy, but it will help you sell more quickly in the long run.

Keep the Outdoors Great

Even if the sun can turn your skin to bronze, you don’t want the same effect on your lawn and garden. Water regularly to keep your grass lush and to make wilted flowers stand up tall and proud once more. Also, don’t underestimate the power of curb appeal; trimmed grass and hedges make a bigger difference than you might think.

Stage the Home

Once the house is clean and working like a well-oiled machine, make it even more beautiful with staging. Professionally staging the home means that furniture and decor are brought into the home by a decorator. This process makes for a clean and cohesive look. Staging can make a huge impact on people who are touring the house.

Use the brightest season of the year to highlight your home’s beauty. You already know it’s a gem, so show buyers why they should think so too!

Are Older Generations Really Not Selling Their Homes?

Many studies suggest one of the main reasons for the inventory shortage in today’s market of homes for sale is that older generations have chosen to “age in place” over moving.

The 2019 Home Buyers & Sellers Generational Trend Report by NAR clarifies this point!

NAR’s findings show that Baby Boomers (43%) and the Silent Generation (12%) made up 56% of sellers in 2018! This means the majority of sellers last year were over the age of 54. This also shows these generations ARE moving!

The report also shared the reasons why they chose to move. According to the research, the top reason was a desire to be closer to friends and family. Below is a full breakdown:

As we can see, they have plenty of reasons to sell their current home! But what type of homes are they trading in?
Once again, the report demonstrated that older generations are not keeping that 3-bedroom, 2-bath colonial home. Instead, they are putting it on the market and moving on with their lives!

Bottom Line

If you are living in a house that no longer fits your needs, contact a local real estate professional who can help you find a home that will!

Home Mortgages: Rates Up, Requirements Easing

The media has extensively covered the rise in mortgage interest rates since last fall (from 3.42% last September to the current 4.1% according to Freddie Mac). However, a less covered aspect of the mortgage market is that requirements to get a mortgage have eased while rates have risen. The Mortgage Bankers Association (MBA) quantifies the availability of mortgage credit each month with their Mortgage Credit Availability Index (MCAI). According to the MBA, the MCAI is:

“A summary measure which indicates the availability of mortgage credit at a point in time.”

The higher the index, the easier it is to get a mortgage. Here is a chart showing the MCAI over the last several months as rates have increased.

Have requirements for attaining a mortgage actually eased?

Yes. Here are two examples:

1. FICO® Score – the credit score which helps determine a buyer’s eligibility. The score required to attain a mortgage has been falling over the last five months:

2. Down Payment Requirement – the percentage of the purchase price necessary to place as a down payment on a home. To make this point, let’s look at the percentage of first-time buyers who have put less than 5% down over the last several years as compared to the 1^st quarter of 2017:

Bottom Line

Whether you are a current homeowner looking to move to a home that will better serve your family’s current needs, or a first-time buyer looking for a starter home, it is easier to get a mortgage today than it has been at any other time in the last ten years.

The Importance of Using a Professional to Sell Your Home

When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes sold. In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process.

According to the National Association of Realtors’ 2016 Profile of Home Buyers & Sellers, the percentage of buyers who used the internet in their home search increased to 94%. However, the report also revealed that 96% of buyers who used the internet when searching for homes purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their homes directly from a seller whom the buyer didn’t know.

Buyers search for a home online but then depend on an agent to find the home they will buy (50%), to negotiate the terms of the sale (47%) & price (36%), or to help understand the process (61%). The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who have used agents to buy their homes has steadily increased from 69% in 2001.Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process. Give me a call, text, or email today!

Market Condition

In real estate, the terms buyer’s market and seller’s market are tossed around quite often. First-time home buyers or those with experience buying in a buyer’s market may be caught off guard when trying to navigate the current market trends. When inventory is low and demand is high the “power” swings from the buyer to the seller.

Buying this Spring? Be Prepared for Bidding Wars

Traditionally, spring is the busiest season for real estate. Buyers come out in force and homeowners list their houses for sale hoping to capitalize on buyer activity. This year will be no different! Buyers have already been out in force looking for their dream homes and more are on their way, but the challenge is that the inventory of homes for sale has not kept up with demand, which has lead to A LOT of competition for the homes that are available. A recent Bloomberg article touched on the current market conditions:

“It’s the 2017 U.S. spring home-selling season, and listings are scarcer than they’ve ever been. Bidding wars common in perennially hot markets like the San Francisco Bay area, Denver and Boston are now also prevalent in the once slow-and-steady heartland, sending prices higher and sparking desperation among buyers across the country.”

Sam Khater, Deputy Chief Economist at CoreLogic went on to explain why buyers are flocking to the market in big numbers:

“In today’s market, many buyers think the trough in [interest] rates is over. If you don’t get in now, it’s just going to be worse later. Rates will be higher, prices will be higher, and maybe inventory selection will be lower.”

In some markets, “thirty-five percent of properties are selling within the first week or two of hitting the market.” Homes are selling at a rapid clip in places like:

• Denver, CO
• Seattle, WA
• Oakland, CA
• Grand Rapids, MI
• Boise, ID
• Madison, WI
• Omaha, NE

Bottom Line

In today’s competitive atmosphere, you need a professional on your side who knows your exact market conditions and can help you take the steps you need to be able to secure your new home!

The Home Buyer's Road Map

The Home Buyer's Road Map. I will guide you through this daunting journey, step by step. www.timgrissett.com

Documents Needed For Mortgage

Here are all the documents needed for mortgage applications, so that you're fully prepared before you even see a lender!

Selling A Home "As-Is"

Fixer-uppers can be a challenge  to market. Many prospective home buyers are looking for a move-in ready home that will be reliable. Some people are turned off by the idea of having to invest time and money in renovations, and the fear of the unknown is enough to have them overlook any properties that are being sold as-is. Despite the number of homeowners who disregard any fixer-uppers, there is a lot of potential in selling a home as-is. If you’re looking to sell your home quickly, then listing it as-is could be the right option for you. With the right marketing knowledge, you can find qualified buyers, market a fixer-upper at the right price and get it sold quickly and for more money. Contact me today if you have questions about listing your home "As-Is". 

Why a Good Home Appraisal is Important

A good home appraisal is one of the most important components of getting approved for a mortgage. This appraisal ultimately decides just how much a bank is willing to lend to you, and a bad appraisal can kill your plans for a new home faster than a bad credit score. A home appraisal is the best way for a lender to see if they wont lose their seat on the deal.

The lender wants to make sure that they have an asset that they can sell to get their money back in case of default. The home appraisal is also a way for you to see if the home you are wanting is overpriced or not.

Lets say that John Doe wants to secure a mortgage on a home that cost $180,000. His credit score is very good, yet the home only appraises for $150,000.

Will John get his loan? You better believe he won't. The sale price will have to be lowered for the lender to consider to loan John the money. This is also a warning for John, that the home that he is trying to secure may be overpriced.

So what does an appraiser look for?

An appraisal usually starts with an inspection of the inside and outside of your home, as well as sale and ask prices for comparable homes in the area.The appraiser will create a report for the lender that includes:

• An explanation of how the appraiser determined the value of the property
• The size and condition of the house and other permanent fixtures, along with a description of any improvements that have been made and the materials used
• Statements regarding serious structural problems, such as wet basements and cracked foundations
• Notes about the surrounding area, such as new or established development, rural acreage, and so on
• Evaluation of recent market trends of the area that may affect the value
• Comparative market analysis that supports the appraisal: maps, photographs and sketches

An important thing to note is that, an appraiser is not a home inspector. An appraiser will make note of obvious issues but does not inspect the home to see if it is up to code. For this you will actually need to hire someone to do a home inspection to avoid any costly nightmares in the future if something is wrong with the house.

How much is this going to cost me?

Appraisals typically cost in the range of $300- $400. This price can change though depending on the location of the property, square footage of the home, or property type. The appraiser’s fees are usually included in the closing costs of the home, unless a deal on the property is not made.

Is it time to throw in the towel if the appraisal is too low?

First you need to see why the appraisal was low. It could be something that the homeowner could correct, or the home could be overpriced. If it is overpriced see if the homeowner would come down on their price. You can also request another appraisal on the home, keep in mind that you are the one paying for these appraisals.

As a seller what can you do to make up for a bad appraisal?

The first thing you need to do is see why it was appraised lower, it could be because of maintenance or repairs. If this is the case, you can get another appraisal after they have been fixed. Another way to increase the appraisal price is cosmetics, especially in an older home. New paint, appliances, carpet and replacement windows are all ways to add to the value of your home.