Archive | Real Estate Updates

    Why You Should Hire A Professional When Buying A Home!

    Why You Should Hire A Professional When Buying A Home!

    Why You Should Hire A Professional When Buying A Home! | Simplifying The Market

    Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to go it on their own. In today’s market: you need an experienced professional!

    You Need an Expert Guide if you are Traveling a Dangerous Path

    The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and ready for you to move in to can be tricky. An agent listens to your wants and needs, and can sift out the homes that do not fit within the parameters of your “dream home”.

    A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

    You Need a Skilled Negotiator

    In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

    Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

    If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

    Bottom Line

    Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    Why You Should Hire A Professional When Buying A Home!

    Why You Should Hire A Professional When Buying A Home!

    Why You Should Hire A Professional When Buying A Home! | Simplifying The Market

    Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to go it on their own. In today’s market: you need an experienced professional!

    You Need an Expert Guide if you are Traveling a Dangerous Path

    The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and ready for you to move in to can be tricky. An agent listens to your wants and needs, and can sift out the homes that do not fit within the parameters of your “dream home”.

    A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

    You Need a Skilled Negotiator

    In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

    Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

    If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

    Bottom Line

    Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter

    2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter

    2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter | Simplifying The Market

    Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

    In a recent Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

    The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

    Increasing Gap in Family Wealth | Simplifying The Market

    Put Your Housing Cost to Work For You

    Simply put, homeownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.

    The latest National Housing Pulse Survey from NAR reveals that 80% of consumers believe that purchasing a home is a good financial decision. Yun comments:

    “Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

    Bottom Line

    If you are interested in finding out if you could put your housing cost to work for you through homeownership, let’s get together and discuss your options.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter

    2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter

    2016: Homeowner’s Net Worth Will Be 45x Greater Than a Renter | Simplifying The Market

    Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

    In a recent Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

    The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

    Increasing Gap in Family Wealth | Simplifying The Market

    Put Your Housing Cost to Work For You

    Simply put, homeownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.

    The latest National Housing Pulse Survey from NAR reveals that 80% of consumers believe that purchasing a home is a good financial decision. Yun comments:

    “Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

    Bottom Line

    If you are interested in finding out if you could put your housing cost to work for you through homeownership, let’s get together and discuss your options.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    Buying A Home Can Be SCARY… Until You Know The FACTS! [INFOGRAPHIC]

    Buying A Home Can Be SCARY… Until You Know The FACTS! [INFOGRAPHIC]

    Buying A Home Can Be SCARY... Until You Know The FACTS! [INFOGRAPHIC] | Simplifying The Market

     

    Some Highlights:

    • 36% of Americans think they need a 20% down payment to buy a home. 44% of Millennials who purchased a home this year have put down less than 10%.
    • 71% of loan applications were approved last month
    • The average credit score of approved loans was 723 in September (the lowest recorded score since Ellie Mae began tracking in August 2011).


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    Here Come the Millennials!!

    Here Come the Millennials!!

    Many have been wondering when the much anticipated move by Millennials’ into homeownership would actually take place. We know the belief in owning a home is there.

     

    According to a recent Merrill Lynch study, eighty one percent of Millennials believe “homeownership is an important part of the American Dream”. This compares favorably to previous generations.

    American Dream by Generation | Simplifying The Market

    The obstacle seemed to be employment. It appears that is about to change.

    The most recent jobs report disappointed many economists. However, the silver lining in that cloud of doubt was Millennials. Jonathan Smoke, realtor.com Chief Economist, reported:

    “About 33% of civilian jobs created over the last 12 months have been for the young adults who are most likely to buy their first home. This should help support continued growth in the share of homes purchased by first time buyers, as economic success has been influencing older Millennials to jump into the housing market this year.”

    Selma Hepp, chief economist at Trulia, concurred:

    “The faster rate of job growth among Millennials will continue to bolster both the rental and for-sale housing markets for an extended period of time.”

    It appears that Millennials will be entering the housing market in great numbers in the very near future.

    Look for strong numbers of first time home buyers now (October) through December and staying strong through all of next year.
    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    Family Wealth Grows as Home Equity Builds

    Family Wealth Grows as Home Equity Builds

    Family Wealth Grows as Home Equity Builds | Simplifying The Market

    With residential real estate values rising quite substantially in most parts of the country over the last few years, many homeowners are seeing a major increase in their family’s wealth as equity continues to build in their house.

    A recent study by the Joint Center of Housing Studies at Harvard University revealed that home equity grew nicely last year and has grown dramatically over the last five years…

    Inflation & Home Equity | Simplifying The Market

    Buyers looking today may not see the same build-up in equity but could still do quite well.

    Let’s assume you went into contract in the next six weeks and closed on a $250,000 home in January. If we take the house value projections from the last Home Price Expectation Survey, here is how your equity would grow over the next four years:

    Home Price Expectation Survey Home Equity | Simplifying The Market

    Bottom Line

    Homeownership has historically been a great way for the average American family to build wealth over time.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    Applying For A Mortgage: Why So Much Paperwork?

    Applying For A Mortgage: Why So Much Paperwork?

    Applying For A Mortgage: Why So Much Paperwork? | Simplifying The Market

    We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.

    Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

    There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

    1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again
    2. The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

    However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably at or below 4%.

    The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <4%, they would probably bend over backwards to make the process much easier.

    Bottom Line

    Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News

    Buying a Home Remains 35% Less Expensive than Renting!

    Buying a Home Remains 35% Less Expensive than Renting!

    Buying a Home Remains 35% Less Expensive than Renting! | Simplifying The Market

    In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

    The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

    The other interesting findings in the report include:

    • Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation. “In the past year, these two trends have made homeownership even more affordable compared with renting.”
    • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
    • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.  

    Bottom Line

    Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, lock in your housing cost with a mortgage payment now.


    Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News