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Buyer & Seller Tips • Real Estate News • Market Trends

Is homeownership still the American dream?

July 5, 2022

Defining the American dream is personal, and no one individual will have the same definition as another. But the feelings it brings about – success, freedom, and a sense of prosperity – are universal. That’s why, for many people, homeownership remains a key part of the American dream. Your home is your stake in the community, a strong financial investment, and an achievement to be proud of.

A recent survey from Bankrate asked respondents to rank achievements as indicators of financial success, and the responses prove that owning a home is still important to so many Americans today (see graph below):

As the graph shows, homeownership ranks above other significant milestones, including retirement, having a successful career, and earning a college degree. That could be because owning a home is a significant wealth-building tool and provides meaningful financial stability. The National Association of Realtors (NAR) explains:

“Homeownership builds financial security. With 65.5% of Americans owning homes, the net worth of a typical homeowner is nearly 40 times the net worth of a non-owner.”Continue Reading

Filed Under: Home Ownership Tagged With: American Dream

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Real Estate consistently voted best investment

July 1, 2022

Based on a recent Gallup poll, real estate has been rated the best long-term investment for nine years in a row. Owning real estate is more than just a place to call home. It’s also an investment in your future. That’s because it’s typically a stable and secure asset that can grow in value over time.

If you’re ready to buy a home and invest in your future, let’s connect.

Filed Under: Home Ownership Tagged With: Appreciation, Home Equity, Infographics

Selling your house this Summer? Hiring a pro is critical

June 30, 2022

It can be tempting, especially with how hot the housing market has been over the past two years, to consider selling your home on your own. But today’s market is at a turning point, making it more essential than ever to work with a real estate professional.

Not only will a trusted real estate advisor keep you updated and help you make the best decisions based on current market trends, but they’re also experts in managing the many aspects of selling your house. Here are five key reasons why working with a real estate professional makes sense today.

1. A professional follows the latest market trends

With higher mortgage rates, rising home prices, and a growing number of homes for sale, today’s housing market is showing signs of a shift back toward more pre-pandemic levels. When conditions change, following the trends and staying on top of new information is crucial when you sell.

That makes working with an expert real estate advisor critical today. They know your local area and follow national trends too. More importantly, they’ll know what this data means for you, and as the market shifts, they’ll be able to help you navigate it and make your best decision.

2. A professional helps maximize your pool of buyers

Your agent’s role in bringing in buyers is important. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house is viewed by the most buyers. Investopedia explains why it’s risky to sell on your own without the network an agent provides:

“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.”

Filed Under: Tips for Home Sellers Tagged With: Home Prices, Real Estate Professional

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Why an agent is essential when pricing your home

June 24, 2022

When it comes to pricing your home, there’s a lot to consider. The only way to ensure you price it right is by partnering with a local real estate professional. To find the best price, your agent balances current market demand, the values of homes in your neighborhood, where prices are headed, and your home’s condition.

Don’t pick just any price for your house. If you’re ready to sell, let’s connect to find the perfect price for your house.

Filed Under: Tips for Home Sellers Tagged With: Home Prices, Infographics, Real Estate Professional

In a bidding war? Make sure to avoid these mistakes

May 1, 2022

Today’s real estate market is incredibly competitive and, as such, many potential buyers find themselves competing with other buyers for the same property. Or, in other words, they find themselves in a bidding war — and how they navigate that bidding war can mean the difference between successfully purchasing their dream home, or losing out to another offer.

But what, exactly, is the right way to navigate a bidding war — and, just as importantly, what mistakes should buyers avoid if they want to successfully purchase a home? Here are a few common bidding war mistakes buyers are making in today’s market, including:

Bidding their entire budget. In an attempt to win the bidding war, many buyers make an offer at the very top of their budget. But the home price isn’t the only cost associated with buying a home. Be mindful of additional expenses, such as closing costs, moving expenses or essential repairs. If you find yourself in a bidding war, make sure to leave wiggle room in your budget.
Bidding with no contingencies. Many buyers are waiving contingencies — like the home inspection — in order to make their offers more competitive. But waiving the inspection contingency could leave you stuck with a house that needs more repairs than you can afford (or that you want to manage!). So while there are ways to tweak your offer to make it more competitive (for example, changing the length of escrow or increasing the down payment), you’ll want to think twice before waiving the inspection.
Using the term “best and final offer.” Negotiations are part of most real estate deals, and it may take a few rounds of back-and-forth before the buyer and seller agree on the terms of a home sale. So, if you find yourself in a bidding war for a home you’re excited about, don’t shut down those negotiations by using verbiage like “best and final offer.”

In today’s competitive housing market, you need a partner who can serve as your guide, especially when it comes to making a winning offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.

Filed Under: Tips for Home Buyers Tagged With: Bidding Wars, Multiple Offers

Pros and cons of using an Escalation Clause in your offer

March 1, 2022

It doesn’t matter if it’s a sellers’ market or one that’s more in favor of buyers; if a house is desirable and priced appropriately, the chances are you’re going to find yourself in a bidding war. Makes sense, right? If you love the house, most likely other buyers in the market will as well. So, not only do you have to act fast, but you need to pull out all the stops in order to get your offer accepted.

But that doesn’t mean you want to offer more than you have to in order to get the house! It’d be nice to be able to submit an aggressive offer that’ll beat out every other offer, yet not go more than a few bucks higher than the next highest offer, right? Well, you can pull that off with the use of what is known as an escalation clause.

Simply put, an escalation clause allows you to submit an initial lower offer, which will automatically increase in specific increments above any other offer that comes in, up to a certain capped amount you set.

For instance, if you made an offer of $300,000, and another offer came in at $310,000, if you had an escalation clause that said to offer $1,000 over any higher bid, your offer would go to $311,000. If nobody offered higher, your bid would effectively be the highest. But let’s say you capped it at $315,000. Your offer would continue to increase until someone exceeded that amount — but wouldn’t go higher — protecting you from paying more than you wanted to.

That said, while escalation clauses can be useful in helping you win a multiple offer situation, they can also cost you the house. So, let’s look at the pros and cons to using one, so you can decide if it’s the right decision for you:Continue Reading

Filed Under: Tips for Home Buyers Tagged With: Bidding Wars, Escalation Clause, Multiple Offers

The difference between an Appraisal and an Inspection

February 1, 2022

If you’re planning to buy a home, the home inspection and appraisal are important steps in the path to home ownership. But there is a key difference between an appraisal and an inspection: “In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home.” Here’s the breakdown of each one and why they’re both important when buying a home.

Appraisal

The home appraisal is a professional evaluation of the market value of the home you’d like to buy. In most cases, when you apply for a mortgage, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase.

Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth. This is especially critical in a sellers’ market where low inventory is driving an increase in bidding wars, which can push home prices upward.

When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more. However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check.

Home Inspection

The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.

Bottom Line

The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate through the entire home buying process.

Filed Under: Tips for Home Buyers Tagged With: Appraisal, Home Inspection

Retirement may be changing what you need in a home

November 27, 2021

Retirement may be changing what you need in a home

The past year and a half brought about significant life changes for many of us. For some, it meant entering retirement earlier than expected. Recent data shows more people retired this year than anticipated. According to the Schwartz Center for Economic Policy Analysis, 2021 saw a retirement boom:

“At least 1.7 million more older workers than expected retired due to the pandemic recession.”

If you’ve recently retired, your home may not fit your new lifestyle. The good news is, you’ve likely built-up significant equity that can fuel your next move. According to the latest Homeowner Equity Insights report from CoreLogic, homeowners gained more than $50,000 in equity over the past 12 months alone. That, plus today’s sellers’ market, presents a great opportunity to sell your house and address your evolving needs.

You can move closer to the ones you love

The 2021 Home Buyers and Sellers Generational Trends report from the National Association of Realtors (NAR) provides a look at the reasons people buy homes. For those reaching retirement age, the number one reason to buy is the opportunity to be closer to loved ones, friends, or relatives. If you find yourself farther from your loved ones than you’d like to be, retirement and the equity you’ve built in your home may enable you to move closer to the people in your life who matter most.

You can find the right home for your needs

Not only can your equity power a move to a new location, but it can also help you purchase the right size home. Lawrence Yun, Chief Economist at NAR, says many homebuyers 55 and older choose to downsize – or buy a smaller home – when they make a purchase:

“Clearly from the age patterns, young people want to upsize, and the older generation is looking to downsize. . . .”

Whatever your home goals are, I can help you to find the best option for your situation. I’ll help you sell your current home and guide you as you buy your next one while you move into this new phase of life.

Filed Under: Home Ownership Tagged With: Retirement

4 ways homeowners can use their equity

November 22, 2021

4 Ways Homeowners Can Use Their Equity

Your equity is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.

If you’re looking for the best ways to use your growing equity, here are four options:

1. Use your equity to buy a home that fits your needs

If you’re finding you no longer have the space you need, it might be time to move into a larger home. Or, it’s possible you have too much space and would like something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.

2. Move to the location of your dreams

If the size of your home isn’t a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and you’re dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than you’d like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.Continue Reading

Filed Under: Home Ownership Tagged With: Home Equity

5 tips for making your best offer

September 15, 2021

5 tips for making your best offer

In today’s sellers’ market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyer demand. If you’re buying this fall, you’ll want every advantage, especially when you’ve found the home of your dreams. Following are five things to keep in mind when it’s time to make an offer.

1. Know your budget

Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. The pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.

Showing sellers you’re serious can give you a competitive edge. It enables you to act quickly when you’ve found your perfect home.

2. Be prepared to move fast

Speed and the pace of sales are contributing factors to today’s competitive housing market. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the average home is on the market for just 17 days. In fact, 89 percent of homes sold in July 2021 were on the market for less than a month.

When homes are selling fast, staying on top of the market and moving quickly are key. After you’ve worked with your agent to find the home that suits your needs, they’ll help you put together and submit your best offer as soon as possible.Continue Reading

Filed Under: Tips for Home Buyers