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Navigating and Negotiating In a Seller’s Market

Buying in a seller’s real estate market can be daunting. With the possibility of high competition for properties, it can be difficult to determine what might put your offer ahead of others. Below are tips on how to negotiate should you be looking to buy a home in a seller’s market. Sellers have the upper […]

Buying in a seller’s real estate market can be daunting. With the possibility of high competition for properties, it can be difficult to determine what might put your offer ahead of others. Below are tips on how to negotiate should you be looking to buy a home in a seller’s market.

Sellers have the upper hand when it comes to selling in a seller’s market. Buyers can’t be too choosy, especially when the competition is high. If you’ve found a house and there are multiple offers, don’t make demands that will make a seller turn down your offer. If a seller has made it clear that the appliances are not staying, don’t demand them. If there are cosmetic things you don’t like, don’t make the sale contingent upon those items being fixed. A Realtor will be able to offer advice on ways to make your offer more attractive to a seller.

Prices can get crazy in a seller’s market as well, but do not get drawn into an unrealistic price. Remember, even when home inventory is limited, other homes are or will become available. While there are several online programs to instantly provide a ‘Market Price,’ these draw from general information and can be wildly inaccurate. Make sure your Realtor does a market analysis for each home prior to submitting an offer.   There may be a sensible reason to raise your offering price, as well as a good reason to back off. Your agent can factor in expected changes to the area as well as which homes in the area are comparable and which are not.

When it comes to buying or selling a house, finances are a huge part of both transactions. Whether you’re looking to sell or looking to buy, knowing your current financial situation is vital to your next steps.  When it comes to buying a property, getting pre-approval for a mortgage is a must, and it’s an absolute must in a seller’s market. You want to be able to negotiate and close quickly. Having a pre-approval letter from a reputable mortgage lender when making the offer shows you’re serious and ready to make a deal. The letter should indicate the lender has already received and approved your credit history and verification of income. It should have only limited conditions, such as ‘continued level of income of buyer’ and ‘satisfactory appraisal of property.  Money talks when it comes to real estate. If you’re serious about a property, larger earnest money shows the seller you’re serious and already have money on hand. It makes your offer more appealing!

If you currently own a home, one of the first steps you should complete is researching the equity in your current home. You’ll want to know how much your home will sell for in your real estate market. Don’t be afraid to have an inspection done to understand what repairs or work may need to be done on your house as this will help you understand how much you may need to deduct from the possible sale price or any concessions you may need to make for a future buyer.  If you have a mortgage loan, you will absolutely want to know how much equity you have in your home. The equity that has built up could be enough for a down payment on another home. It’s important to remember, though, that any equity is only accessible after closing.

Finding a home when inventory is low can be a difficult task. If you’re on the hunt for a home and live in a city with a competitive real estate market, make the challenge a little less difficult by being prepared!

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What Homebuyers are Waiting For…

Most homeowners are content with their purchase. In a recent Bank of America survey, 95 percent of current homeowners reported that they feel proud of owning their home. And it looks like there may be more happy owners in the future soon. Twenty-five percent of prospective buyers said they plan to purchase in the next […]

Most homeowners are content with their purchase.
In a recent Bank of America survey, 95 percent of current homeowners reported that they feel proud of owning their home.
And it looks like there may be more happy owners in the future soon. Twenty-five percent of prospective buyers said they plan to purchase in the next two years. The majority (61 percent) are delaying purchasing to pay off bills and debts, while 47 percent are striving to improve their credit score. Forty-five percent are saving for a new home, while 39 percent are saving for retirement. Nearly one-third are still paying off student loans, while 28 percent are saving for their child’s education. However, 35 percent of buyers have started saving for a down payment, and 75 percent said their savings would pay for their down payment. Most aspiring buyers are not sure how much they have to put down for a down payment. Thirty-one percent said 10 percent, while 29 percent said 20 percent, and 15 percent said more than 20 percent.
So, what leads prospective homebuyers to become home buyers? According to the majority (52 percent), it’s having the financial means. Forty percent are ready to have their own place, while 35 percent want a reliable job with steady income.
For those who do already own, across all generations, 36 percent believe their current home is a stepping stone to their dream home. To 68 percent of millennials, that’s their plan.
About one-third of owners said that their home’s value is determined by how much they spent to purchase it. Ninety-one percent reported that they treasure the memories made there.
Homeownership has a positive impact on their long-term financial picture, according to 79 percent of millennials surveyed. For first-time buyers across generations, 72 percent believe that is true. Eighty-six percent of millennials believe buying a home is more affordable than renting, compared to 54 percent of first-time homebuyers of all generations.
With that being said, According to the fourth annual housing survey from Neighbor Works, more adults are struggling with their student loans, making homeownership more of a dream than a reality.
In 2016, 30 percent of respondents said they know someone whose student loans were delaying them from purchasing a home, up from 28 percent in 2015, and 24 percent in 2014. More than half of respondents this year (53 percent) said their student loans are at least somewhat of an obstacle to purchasing a home, down from 57 percent last year, but an increase from 49 percent in 2014.
Affordability continues to be an issue, as only 45 percent of respondents said their community is affordable for first-time homebuyers, but 56 percent believe that rent prices are too costly for someone to save enough to purchase a home.
Additionally, more than half of respondents said that they believed home buying is complicated, down 3 percent from 70 percent last year.
However, the positive outlook on home ownership has been growing for minorities, which are the fastest-growing segment of homebuyers, according to the survey. This year, 14 percent of African Americans, along with 12 percent of Hispanics said that homeownership is the most important part of their “American Dream,” compared to only 9 percent of whites. Last year, 16 percent of African Americans, 10 percent of Hispanics and 8 percent of whites reported that homeownership was the most important part of the “American Dream.” However, 52 percent of minorities reported that rent in their area is too high to save for a home, once again, delaying them from purchasing.

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Most Millennials Searching for More Income before Home Buying

While much has been written about millennials and their lack of house buying, a recent survey suggests the desire is there, but it’s the means that are lacking. Fannie May recently released the results of their National Housing Survey™ (NHS), and the report suggests that millennial renters of today have “as much desire to own […]

While much has been written about millennials and their lack of house buying, a recent survey suggests the desire is there, but it’s the means that are lacking.

Fannie May recently released the results of their National Housing Survey™ (NHS), and the report suggests that millennial renters of today have “as much desire to own a home as the general population of renters.”

According to the released results, the majority of renters aged 25-34 believe that owning a home is more financially beneficial than renting. Likewise, a majority of millennials also think that owning is better than renting in regards to their lifestyle. Of those surveyed, 91 percent plan to own a home at some point of their lives. That surpasses Generation X (83 percent), baby boomers (68 percent) and pre-baby boomers (25 percent).

However, 52 percent of millennial renters cite income as their main reason for not owning a home yet, compared to 48 percent of all renters surveyed overall. Twenty-nine percent of said renters claim their lifestyle isn’t suitable for ownership at this time.

Likewise, 40 percent of millennials said an increase in income will drive them to buy a home, with 21 percent citing an increase in credit score as an incentive for them to buy.

The vast majority of millennial renters indicate they do plan to buy at some point in the future, but appear to be exercising caution from a financial perspective. This caution may support more sustainable housing costs for consumers and a healthy housing market overall. While the crisis may have stalled wage growth for younger renters, recent improvements in household income seem to be reflected in consumer perceptions, with increasing shares saying that their household income is significantly higher now than a year ago. These improvements are an encouraging sign for millennial renters aspiring to own in the future.

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