Wondering if we’re in a housing bubble? If so, you’re not alone. Here’s the latest on what experts over at Bloomberg Business are saying about the current housing boom. No doubt today’s environment feels a lot like the bubble market in 2006, but don’t worry, there are a few “market” differences: Loans are much harder to get today than in 2006. Lenders have raised lending standards and loans are smaller in proportion to house values and borrowers’ income. Translation? Buyers can’t weasel their way into loans like they used to.
The main factors in the current price runup are tight supply and strong demand, not sloppy lending. Many think the boom has been years in the making. Having overbuilt in the 2000s, homebuilders underbuilt in the 2010s—and now, it’s playing catch up. Yes, home prices are soaring, but the market is strong with no hint of slowing down. If you’re curious about buying or selling right now, I’d love to connect. Reach out and let’s talk.
Comments Off on Features to Focus on in Your Home Search
by liz
When I sit down with clients to discuss what they are looking for in a home, I ask them to make a “wish list” of everything that they want in a home. Bedrooms, baths, amenities, location, price, etc. Some have a laundry list of everything under the sun, and some can only come up with a couple. I then ask them to narrow it down to the top 5 “high priority” features. If they have less than 5, I’ll ask more questions to pull out more ideas from them.
Why 5? Because most of the time you can sum up what you are truly looking for within this number. Keep in mind you aren’t always going to get all 5. I always tell potential buyers that we are looking for a home that meets at least 85% of their criterial because 100%, aka “perfect” homes do not exist. Even if you build your “perfect” home there will be things that you wish you would have done differently.
So how do you decide what should make your top 5?
Keep an Open Mind About Features
Do you have your mind set on a 3 bedroom home, but in actuality a home with 2 bedrooms and an office would fit the bill and keep you in your price range? Do you really want a 2 stall garage, but if you have a 1 stall garage and a storage shed that would meet your needs as well? Maybe your hoping to stay in a certain price range but if you bump it up just a bit you can find more of what you are looking for and can still comfortably afford the mortgage payment.
Have Your Non Negotiables
If the main goal of buying a new home is to live in a certain school district and have bussing for your kids. Don’t settle for a home in a neighboring school district and resign to chancing the school of choice system and driving your kids to and from school every day. You likely will regret this decision. Another example would be that really want to live in a home that has main floor everything. You find a one that has almost everything you are looking for but the owner’s sweet is in the basement. Every day when you climb those stairs you will wonder what you were thinking at the time.
I’d love to guide you through the home buying process. My passion is to help my clients reach their goals and find the right home for them!
Comments Off on Home Inspections, What You Need to Know
by liz
Let’s start with the most basic question, What is a home inspection?
The inspection will uncover any issues in the home that would have otherwise been unknown. You will receive a written report of the inspection. I recommend that you are present for the inspection, so that you may ask the inspector any questions.
What does “inspection period” mean?
During the inspection period, the buyer has the right to hire a professional to inspect the condition of the home. If the results on the inspection report comes back with any issues that need to be addressed, the buyer may ask the seller to cover the costs of these repairs, reduce the sales price, or fix the repairs before closing. (In our local purchase agreement if you ask for any of these alterations the seller does at that time, have the right to terminate the contract.) If an agreement can not be made, the buyer has the right to back out of the contract. Either way if the contract is terminated, the buyer has the right to get the earnest deposit back with no consequences.
The home seems fine, do I really need a home inspection?
You may think the home is in perfect shape, but some of the costliest problems are difficult to spot: leaks, termite damage, foundation issues, poor ventilation, faulty wiring, and drippy appliances. A home inspection gives you the chance (before you sign on the dotted line) to have a professional inspector see if there are any problems that need to be addressed, replaced, or fixed.
How do I choose a Home Inspector?
I have several reputable home inspection companies that I can recommend or you can use someone that was referred to you by a trusted source. I highly recommend that you do a little of research on your own by visiting the company websites and/or calling the company with questions.
How long do home inspections take?
Inspections typically take about 2-4 hours depending on the size of the home.
Do I need to be at inspections as a buyer?
Attending the inspections as a buyer is truly beneficial and I encourage you to make an effort to be there if you can! It’s an opportunity to personally experience the inspector’s insights as they walk you through the home. You’ll be able to see and hear their observations firsthand, which adds a personal touch to the process. Plus, being present allows you to take measurements, snap extra pictures, and focus on any specific details that catch your attention. By participating actively, you can gather valuable information and make more informed decisions about the property. So, if you have the chance, don’t miss out on this exciting and informative part of the home buying journey!
What will I need to bring at inspections?
When attending inspections, it’s essential to come prepared with a few items. Firstly, it’s advisable to bring a form of payment, such as a check, as most inspectors require immediate payment. Additionally, many inspectors nowadays accept credit cards for convenience. If you’re interested in taking measurements of certain areas or features within the property, having a tape measure on hand can be quite useful. Lastly, bringing a notepad allows you to jot down any important notes or observations during the inspection. This way, you can keep track of any specific details you’d like to remember or discuss later. By having these items readily available, you’ll be well-equipped to make the most of the inspection process.
Comments Off on 6 Reasons Why December is a Good Month to Buy a Home
by liz
Most people are not excited about the thought of buying a home in December. The weather is less than ideal for moving and it’s such a busy season for events with friends and family.
Here are 6 reasons why you should consider buying a home in December:
1.Sellers are highly motivated. People who are listing their homes in December are usually on a timeline. They may be relocating for work, wanting to move over the school break, or need to sell their home before the end of the year.
2.You have less competition. Listings do go down in December, but many buyers also take a break during the holiday season. So while the overall number of homes available might be lower, you also have less competition looking.
3. You can get a better price. Motivated sellers and fewer lookers means you can make a better deal. If your seller needs to make a move before the end of the year, they will be willing to work with you on all other terms besides closing date.
4.Rates are staying low. Mortgage rates are forecast to remain low through the end of this year, and into 2021, so it’s a good time to buy.
5. Take advantage of tax benefits. If you close on your home purchase by December 31st, you can take tax deductions for mortgage interest, loan points, and property taxes.
6.Schedules are more flexible. You might think December is too busy a month for moving, but most people tend to have more flexible schedules in December. Children’s activities are suspended, work schedules are more lax, for both you, your sellers, as well as your lender, home inspector, and moving companies, so scheduling all the parts of your transaction and move may actually become easier.
I’d love to help you find your next home. Let’s make your holiday wishes come true!
Comments Off on Buying Your First Home? Things You Should Know
by liz
I love working with first-time home buyers. Helping you find your first home, learn the home buying process, and guiding you from house-hunting to move-in day gives me such joy! Here are three things you should know before you start looking.
Work with one Realtor. It’s best to have one agent who is helping you with your search. Your agent will be dedicated to finding you the right property, and then negotiating on all the terms of your transaction on your behalf. You want that person to get to know you and your family’s needs and preferences, rather than starting over with someone new each time you go look at a house. Keep in mind that the agent who shows you a home is, ethically, the one who should continue the transaction. Also, when you call an agent from a yard sign or advertisement, you are dealing with the seller’s agent. While most real estate professionals are adept at handling both sides of a transaction professionally, it makes more sense to deal with someone you have already taken time to get to know and who has your best interests at heart as the buyer. You aren’t paying your agent; unless otherwise stated, he or she is paid by the seller upon closing. Still, you are hiring someone to work for you, so feel free to interview multiple agents and pick the one that you feel fits you best.
You need to be pre-approved for financing. Unless you are paying cash for your home, you do need to talk to a lender before you start looking at houses. One reason is that it helps you set an accurate price range for house hunting. Looking at homes that you can’t afford to make an offer on just leads to frustration. A mortgage lender will not only tell you what amount you can borrow, but also your projected monthly payment, your closing costs, and what you should or shouldn’t do with your finances to maintain your eligibility throughout the lending process. Another reason for having an up-to-date pre-approval in hand is so you don’t lose out to another buyer. If you find the perfect house, you will want to get an offer in before someone else gets it, and that pre-approval letter must accompany your offer. I would be happy to provide you with names of mortgage lenders in our area who have provided excellent service to my clients.
There are some up-front costs. When you find the right house, and you and the seller have agreed on the price and terms and have signed the contract, you will first need to make your earnest deposit, or “good faith” deposit. This is money you are risking if you back out of the deal for reasons not protected in the contract. Usually it is between 1% and 5% of the sales price but can be more or less depending on what you and the seller agree to in the contract. Your agent will help you with this during negotiations. The earnest deposit will go towards your down payment at closing.
Next, you should have an inspection of the property done by a certified home inspector. This cost varies depending on the size, condition, age, and features of the home, but is usually a few hundred dollars. You will need to pay this at the time of service. You may elect to pay for other inspections based on the results of the initial inspection. For example, if the inspector notes an issue with the HVAC system, you may need to pay a service fee for an HVAC contractor to look at the system. You want to get as much information during your inspection period as you need to confidently move forward with the purchase.
An appraisal of the property will be ordered, usually this is paid out of your application deposit with the mortgage company.
I will guide through all of these steps throughout your home buying journey. Ready to get started? Schedule a no obligation consultation today!!
