Tag Archives: real estate

How Homebuyers Can Overcome Tough Competition

Tips for homebuyers

Source: Kiplinger

Redfin Chief Economist says to win in a hot market, home buyers should take advantage of technology to find homes as soon as they are listed.

Making sense of the story:

  • Arm yourself with tech tools to find available homes quickly. With the variety of apps available today, you can receive listing alerts so that you’re notified as soon as a home in your price range or search area hits the market.
  • Buyers will gain an advantage from whatever concessions they can offer. Instead of a small earnest-money deposit, we’ve seen buyers put into escrow their entire down payment or even half of the purchase price.
    You needn’t waive a contingency for inspection in the purchase contract.
  • Rather, you can agree to pay the seller, say, $2,500, or next month’s mortgage payment, if you walk away.
    Work with a local or reputable lender to get a pre¬approval for your mortgage that includes full documentation of your means to obtain a certain amount of financing in advance of a signed purchase contract.
  • That may give you the confidence to waive a contingency for financing, and it’s almost as good as cash for closing a deal quickly.
  • Because sellers can sell their homes in days but may take months to buy, you can gain leverage by offering to “rent back” their home to them for a certain number of months.
  • Fall can be a good time to buy a home because prices generally peak in the summer and ease up in the fall.
  • There’s a bit less inventory, but many fewer buyers. Plus, sellers who list in the fall are serious because they must leave because of job relocation, divorce or something else that made them miss the top of the season.

Read the full story

Money Monday: Common Home Buying Expenses

When home buyers purchase real estate, they often don’t factor in other expenses that they may incur.

Your new home is certainly a large expense, but have you considered the other purchases that may go hand-in-hand with that home’s cost?

Common home buying expenses for real estate buyers

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS, available here.

Homeownership Up From 50-Year Low

Homeownership rate jumps from 50-year low

Source: The Wall Street Journal

The U.S. homeownership rate may have finally bottomed out, as the share of Americans who own homes is steadily climbing. The ownership rate posted an increase in the second quarter, reversing a sharp downward trend that begun in the Great Recession.

The homeownership rate was 63.7 percent in the second quarter, the U.S. Census Bureau reported. That marks nearly a full percentage point increase from a year ago. Last year, the homeownership rate had plunged to a 50-year low of 62.9 percent.

“The addition of 1.2 million households being homeowners is clearly good news, as more households are participating in housing equity gains,” says Lawrence Yun, chief economist for the National Association of REALTORS®. “But let’s keep it in perspective: There are fewer homeowners today compared to a decade ago, while renter households have risen by 8 million.

So it is still the case that the massive $7 trillion in housing wealth gains from the cyclical low point has been accumulated by a fewer number of families in America. Further advances in homeownership are required to strengthen and broaden the middle class.”

Read the full story

Money Monday: Money terms and what they mean

It’s easy to be confused by all the different finance and money terms out there. Here are a few terms common to real estate:

Escrow

Escrow is a safe, intermediary account for money when it’s moving between a buyer and seller. Placing funds there tells the seller: “I’m serious about this deal and I can pay.” During the time the down-payment is in escrow, a homebuyer can take care of due diligence, including a home inspection. If it turns out something is off about the house — like structural damage — the buyer can pull out.

You can also escrow money (yes, it’s a noun or verb) for fees beyond your mortgage, like property tax and mortgage and homeowners insurance. Federal Housing Administration-insured mortgages, for example, require escrow accounts. (“Money terms you’re too embarrassed to ask about.” 

APR

Even if you already know that APR means “annual percentage rate,” you might not understand what it is. Lenders are required to disclose the APR when lending, which is great for transparency…

The APR is the rate charged annually for borrowing money. But unlike an interest rate, it includes fees and other costs the transaction may include. So the APR is usually higher than the nominal interest rate. Also, unlike annual percentage yield (APY), the APR doesn’t take into account compounding interest. (“Money terms you’re too embarrassed to ask about.” 

Read up on more financial and money terms here, on Money.CNN.com: “Money terms you’re too embarrassed to ask about.”

Homebuyers Move Quickly for Inventory

Falling inventory forces homebuyers to move at fastest pace ever

Source: Housing Wire

housing market forecastHousing inventory fell 8.9 percent from last year in the second quarter of 2017, sending homebuyers scurrying to beat the rising competition.

Housing inventory dropped for nine consecutive quarters, and is currently down a full 20 percent from inventory levels five years ago, a new report from Trulia shows.

And now, homebuyers are snatching up homes at the fastest pace since Trulia began tracking in 2012. While 57 percent of homes were still on the market after two months in 2012, today that number shrank down to 47 percent.

Competition is so fierce, in fact, that 33 percent of Americans who bought a home in the last year made an offer without even seeing the home in person, according to a survey from Redfin, an online real estate brokerage.

This is up from 19 percent of buyers who placed an offer on a home without seeing it first last year. Among millennials, even more placed offers without seeing the home in person — a full 41 percent.

Read the full story

May 2017 – Market at a Glance

May 2017 real estate statistics

Thanks to the CALIFORNIA ASSOCIATION OF REALTORS, you can view a succinct pdf on the market statistics for last month.

In short, it only takes a listing an average of 22.4 days on the market before it’s in escrow, at the median price of $550,200. View more information below:

Click to view the pdf from CAR.org

Money Monday: How to retire debt-free

Retiring already can put a strain on your budget; don’t exacerbate it by being deep in debt on top of it!

Picture from www.ccPixs.com

Here are a few ways to get and stay debt-free:

  1. Start and keep building up your savings — having at least an emergency savings stash is especially crucial.
  2. Spend less than you bring in — live below your means.
  3. Work on paying off your student loans early.
  4. Don’t overpay when buying your home — you need to get an affordable mortgage.
  5. Keep that credit card debt very low.

Read more on all five of these ideas on Money.CNN.com’s article: “5 steps to retire debt-free.”

Money Monday: Millennials saving for financial freedom

Millennials are saving for financial freedom—not retirement

Source: Yahoo Finance

Photo from Pictures of Money

Millennials often get a bad rap when it comes to financial responsibility. But it turns out those stereotypes may be off base. Millennials are saving more money than any other generation, according to a new study by Bank of America and Merrill Edge. But it’s what they’re saving for that really sets them apart from older generations.

Saving for financial freedom is the No. 1 priority for millennials — 63 percent of millennials said they’re saving a set amount of money to enjoy their desired lifestyle. This is a stark contrast to older generations: the majority of the Gen X and baby boomer generations prioritize their savings specifically to leave the workforce and retire.

This shift speaks to the bigger differences in the ways millennials and older generations view money, and what they prioritize in their lives. While it may not sound surprising that younger workers aren’t thinking about nest eggs as much as older generations, what’s a little different here is that they’re not thinking about retirement as a phase of life, let alone working to afford it. Millennials listed personal milestones as their top priorities: getting their dream job and traveling the world trumped more traditional goals like getting married and having children.

Read the full story from Yahoo Finance here