HomeBuying

Spring is finally here, but the spring market feels like it's been here for a while. If you have been paying any attention at all to the real estate market lately, you probably have heard a good bit about multiple offers, prices increasing, interest rates, and short days on market. But what does it all mean, and what does it mean for YOU and your real estate goals? I'm going to break down some of the info here for you, and give you my assessment (based on experience and research, but obviously not guaranteed) on what it all means, and how it impacts you. I've heard lots of people say they've thought of waiting to buy until the market cools, or until it "crashes." Here are my thoughts on that: the market is unlikely to "crash," at least not anytime soon. This is not a bubble in the sense of the last bubble ('06-'08). The problem there was primarily that lenders were loaning money to anyone, with very low standards proving they could pay it back. The market now is really a product of a few factors- The last bubble burst, putting some builders out of business, and causing most to slow down or stop building "spec" homes completely. A whole new generation of buyers has dropped into the buying pool (Hi Millenials!) Rates have been at all time lows for the last couple of years (yes, they have ticked up a bit, but they are still comparatively low to the "average" market.) Covid/quarantine/work and school from home...the list goes on regarding how we live in our homes, and how that has changed over the past couple of years, so more people are moving to accommodate those things. In the end, this crazy market is really a result of basic supply and demand. There are simply not enough homes for all the people who want or need to buy a home. So...will prices go down? Well, my thought is that prices won't go down anytime soon. The good news? They likely won't continue to increase at the same rate as they have been. If you're a buyer, what does all that mean? Well, my sentiment is always that if it's the right time for YOU to buy, it's a good time to buy. That is to say, sometimes there's no way to "outsmart" the market if you're buying a home to use as your primary residence. If you're going to be paying to live somewhere, and you usually are, you may as well be paying towards your own equity, rather than someone else's. Even if rates are higher than you'd like. You can always refinance if/when they go down again. If you're looking to buy an investment property, that's a trickier thing, because there aren't a lot of deals happening right now. (There are some, though, so it's not impossible!) In either case, talking through the possibilities, and the market conditions, in the area you're looking, BEFORE you find that place you want to call home, is invaluable in this market. The most important things you can do when buying in this market: Have realistic expectations (many people are writing 4-6 offers before they're getting to one that "sticks") Have a plan (know how much you can and are willing to spend, how much of a down payment is reasonable, and what your payments will be) Be ready to move forward quickly (and have all of those ducks in a row, including a pre-approval letter from a lender) when something comes on the market that you love If you're selling- yes, it is still a great time to sell, and things are going very quickly, often with few contingencies, and in many cases, OVER the asking price. That doesn't mean you can just throw a sign in the yard, though! Doing the prep work to get your home ready still makes a difference if you want to maximize the offers and the final selling price. This means cleaning, maybe a bit of yard work, staging, and overall, just making sure your house shines in its best light. It also means working with an agent who uses professional photography, who will do all the same things to market your property in this market that they will in a less "hot" market, and who will walk you through those things that will maximize the return on your investment. The difference that will make really is surprising, and can mean the difference in 5 offers vs 25. But, you say, "we can only accept one, though." True. But having more competition pushes everyone to build a better offer, giving you better terms, and a better price. Trust me. It's worth it. Do you want more details on the market or the neighborhood where you live (or want to live?) Reach out to me. I'd love to help you navigate the process, or just help you determine if it is a good time to buy or sell.  

So you want to buy a home in the new year? Here are some great tips to help get you started so that your plan gets off on the right foot. Tips for Buying a Home in 2022 First of all, find an agent that's going to work with you, you're going to feel comfortable with sharing all your hopes and dreams and some of your financial information. Next, you really want to start getting your financial information together and talk with a lender. A local lender is best and one that your agent works with on a regular basis is crucial and tremendously helpful as you go through the process. I have some great tools to not only help get your financial information ready, but also help you narrow down what exactly you're looking for in a home. Reach out to me and let's get you started on the process of buying. I'm here to answer any questions you might have!

No matter where I go, the question on everyone's mind lately is not just "How's the market?" but "Is this a bubble?" The short answer? No, it's not a bubble. Then what the #%(@ is going on?? Well, that answer is not so short. In the past couple of years, a whole new generation of homebuyers have dropped into the market. After the mortgage crash that happened 15 or so years ago, building seriously slowed (No one was buying, many builders got into bad financial positions... so, why bother building?), leaving us with simply not as many homes as buyers. On top of the home shortage, and all the new buyers, we have extraordinarily low mortgage interest rates, so borrowing money is simply "cheaper" than it is in a normal market. All of these things combine to form this unprecedented (yes, I am as sick of that word as you are) market. For sellers, there are a lot of benefits, for sure. While we have started to see a bit of a shift, things are still quite competitive. We may not be seeing as many 25 offer situations, but we're still seeing plenty of five or ten offer situations. Along with those multiple offers, we're seeing buyers trying to do all they can to make their offer the best- from waiving inspections, or portions of inspections, waiving appraisals, paying well above asking price, offering free "rent back" to the sellers, and so much more. Who, when you're selling, doesn't love getting an offer that basically lets you write your own ticket? But what if you're a buyer? Should you "just wait?" This market can indeed be a bear if you're looking to buy, and I totally understand your frustration. Many buyers are writing offer after offer and losing the battle. It's exhausting, and I know it can make you want to throw in the towel. But wait? Hold up. Here's why: Date           Avg Home      Rates         Payment  Sept 2018     $262,000      4.63%             $1361 Sept 2019     $260,000      3.61%             $1230 Sept 2020    $290,000      2.89%             $1247.75 Sept 2021     $320,000      2.91%.             $1350 Waiting for a normal market could cost you. Right now, there is simply not enough supply, but all signs point to that leveling off to a degree. For the market to "cool," it will most certainly be because rates have gone up to a "normal" range. Unlikely that an uptick in rates is going to drastically impact prices overall, so that lands us back at somewhere in the neighborhood of a rate of 4.63% in a normal market, and that same home you've been eyeing at $320,000 would now be $1600 per month rather than $1350. Not an insignificant difference. But with the rates as they are now, hovering right around 3%, you can actually go over that asking price, even by $30,000, for only an additional $125 or so in your payment. Still better per payment than what you're likely to get when waiting. Yes, it's not quite that simple, but if I got into all the details, I'd surely have lost you by now. If you're still reading, maybe you have questions? Reach out and let's talk!            

I've helped many first time home buyers successfully buy their dream home, and over the years, I've noticed something that I want to share with as many future first time home buyers as possible! It's this- some first time buyers aren’t aware that they have the ability to use a buyer’s agent to represent them in one of the biggest purchases they will ever make! (AND, that it doesn't cost them any more!!) I want to put this out there to help educate as many people as I can. You can and SHOULD have an agent who works for YOU when you are ready to buy a home. Because let’s be honest, buying a home involves a lot more steps than most people realize. So what does a buyer’s agent do? In a nutshell, we help you, the buyers; navigate the entire home buying process one step at a time. I'll dive in and break it down for you. (Make sure you read until the end because there is great news waiting for you there!) First things first, a buyer’s agent will meet with you to go over the entire home buying process. That way, you're fully equipped so you know exactly what to expect. (We can do this in person or via Zoom) They will help you identify your needs and wants in a home, including your top "must haves" and your deal breakers. I'm a huge fan of understanding your "why," so I always spend some time asking why you want what you want. That helps me help you more than you know. They will then set up a custom home search that will find listings matching your wants and needs, so that you don’t have to filter through hundreds of listings that don’t even fit what you’re looking for. When you start looking at homes, you’ll notice that they will be listed by a listing agent. What's great about a buyer’s agent, is that they work in your best interest, not that of the sellers. In addition to helping you find a house that meets your needs, they will also help you understand your options when it comes to writing an offer, advise you on the market, help you determine what price to offer the sellers and most importantly, negotiate on your behalf. If you find yourself in a multiple offer situation (pretty common in this 2021 market), they have strategies to help make your offer stand out, while matching the seller’s priorities to give you the best shot at getting that dream home. Once you have an accepted offer, they maintain strong communication with both you and the listing agent so you'll always be kept in the loop and never left wondering what’s next! A buyer’s agent will also remove as much doubt as possible. They'll provide you with all the tools necessary to make an informed decision before you take on the investment of owning a home. Think of them as your go-to resource throughout the entire transaction. Not only will they educate you through each step, they will refer you to their trusted vendors. From lenders to home inspectors, attorneys, and contractors, there can be so many moving parts in a transaction that you’ll be thankful to have the help of trusted professionals and save time trying to research them on your own. All of this will help you have peace of mind throughout the home buying process and prevent you from falling into the buyer’s remorse trap! It’s time to fill you in on the best part about hiring a buyer’s agent. Here it is.. it costs you absolutely NOTHING! You might be thinking this all sounds great and I would love to have someone work on my behalf but how much is someone like this going to cost? Having a buyer’s agent won’t cost you anything because the sellers are responsible for paying all commissions. So, if you’re already searching for homes online, googling questions you have about the process and you’re ready to dive in, what are you waiting for? It’s time to find yourself a buyer’s agent who will work for you and walk you through all of this – literally, one house at a time! Look for a buyer’s agent who you feel is a good fit for helping you through the process of buying a home. When you’re interviewing different agents, you’ll want to make sure you choose someone who not only seems knowledgeable but someone who will be available, willing to educate you, able to communicate the way that you want and most of all, someone you feel comfortable working with! Maybe that's me. And, maybe it's not. But do your legwork here, and I promise you that the home buying process will be much easier!!

If you’ve been thinking about buying your first home, chances are you’re getting tons of advice from everyone you've mentioned it to. It can be pretty overwhelming, and that's why I want to share 3 home buying myths you need to know if you’re considering homeownership. These will help debunk some of the things you may be hearing from people who probably have great intentions, but probably aren’t professionals. MYTH #1: You Have to Put 20% Down to Purchase a Home This could be the biggest home buying myth of all time! Putting a minimum of 20% down on a house does have some financial benefits .. BUT it isn’t required. There are several options when it comes to financing your home so you’ll want to meet with a local lender to discuss these options before jumping head first into the process. There are loans that require as little as 3% down as well as resources for buyers struggling with down payment money and first time home buyer programs. MYTH #1 Tip: Do not get pre-approved from an online lender. Find someone local who you can actually sit down with, understand your options and make the best decision for your financial future. (I can refer you to some great ones.) MYTH #2: It Doesn’t Matter if I Don’t Have a Real Estate Agent Some buyers prefer not to commit to working with one specific agent. That means they don’t take advantage of hiring a buyer’s agent to help them with their home purchase. That means they’re on their own for scheduling showings, being alerted of new listings, and when it comes time to negotiations, they won’t have anyone working in their best interest. This is not a great combination- especially in this market. It can prevent you from getting an accepted offer on the house you really love because you haven’t been educated on the market or how quickly you need to make a move. Right now, that's QUICK! It could also result in you losing money or overspending because you don’t have anyone negotiating on your behalf. I don’t know about you, but if I’m buying my first home, or any home, for that matter, that does not sound like a great situation. MYTH #3:Prices probably won't keep rising forever. But a market crash isn't likely, based on who's buying homes now: people with low debt-to-income ratios who put a lot of money down after losing out on a few homes to other buyers. "They will not be the first to abandon their homes if there is a downturn in the economy," said Kenneth ErI of Climb Real Estate. "These homes are owner-occupied and not highly leveraged like in the run-up to the last crash."   There are certainly a few more myths, but I'm here to help you navigate them. If you think you're ready to purchaase, give me a call, or email me here. I'd love to help!