Hope Leitner, Realtor®, CRS

There are many reasons why a homeowner decides to sell their house and move. The latest Generational Trends Report from the National Association of Realtor asked recent home sellers to share their reason for moving. The younger the respondents, the more likely their top response centered around needing a larger home (ages 29 to 53). Relocating for a job was the top reason for those ages 54 to 63 and the second most popular response for those under 53. The chart below shows the breakdown for these two reasons. For homeowners over the age of 64, wanting to be closer to friends and family served as the top motivator to move. Downsizing to a smaller home or moving due to retirement came in as a close second and third. Have you outgrown your current house? Are you a homeowner who can relate to wanting to be closer to family and friends? Is your house becoming a burden to clean now that the kids have moved out? Bottom Line Let’s get together to set you on the path to selling yo...

There are an increasing number of real estate companies, termed iBuyers, like Open Door, Offerpad, Zillow, Knock and others that market a service that has an appeal to homeowners.   The pitch for these quick cash offer companies will include some variation of "let us buy your home in days without the normal hassles of listing." This approach attempts to provide an alternative to selling a home in a normal manner at the expense of not realizing the full equity a homeowner is entitled. There is no fiduciary relationship requiring the broker to put a seller's best interest above their own interest.   An iBuyer does not represent a seller and does not owe client-level services like loyalty, obedience disclosure among other things required by most state license laws. The offer is based on an automated valuation model, many times, without a physical inspection of the home.   In some cases, a contract is written but there are provisions that allow iBuyers time to possibly ...

In a recent Insights Blog, CoreLogic reported that rent prices have skyrocketed since 2005. Meanwhile, the typical mortgage payment has actually decreased. “CoreLogic’s national rent index was up 36% in December 2018 compared with December 2005, while the typical mortgage payment was down 4% over that period.” Why the difference between the costs of renting versus owning? It makes sense that rents have risen. However, how did mortgage payments decrease? CoreLogic explained: “It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018. The national median sale price in December 2005 – $190,000 – was lower than the $220,305 median in December 2018, but because of higher mortgage rates in 2005 the typical monthly mortgage payment was slightly higher back then – $941 – compared with $904 in December 2018.” Additionally, a recent report by the National Association of Real...

With home prices on the rise and buyer demand still strong, some sellers may be tempted to try to sell their homes on their own rather than using the services of a real estate professional. Real estate agents are trained and experienced in negotiation while, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families. Here is a list of just some of the people with whom the seller must be prepared to negotiate with if they decide to For Sale by Owner (FSBO): •The buyer, who wants the best deal possible •The buyer’s agent, who solely represents the best interests of the buyer •The buyer’s attorney (in some parts of the country) •The home inspection companies, which work for the buyer and will almost always find some problems with the house •The termite company, if there are challenges •The buyer’s lender, if the structure of the mortgage requires the sellers’ parti...

The FNMA HomeStyle conventional mortgage allows a buyer to purchase a home that needs renovations and include them in the financing.   This facilitates the purchase of the home and the renovations in one loan rather than getting a separate second mortgage or home equity line of credit. The combination of these loans should save closing costs as well as interest rates which would typically be higher on a home improvement loan. The borrower will need to have an itemized, written bid from a contractor covering the scope of the improvements.   Any type of renovation or repair is eligible if it is a permanent part of the property.   Improvements must be completed within 12 months from the date the mortgage loan is delivered. 15 and 30-year fixed rate and eligible adjustable rate loans are available. Typical FNMA down payments are available starting as low as 3% for a one-unit principal residence to 25% for three and four-unit principal residence and one-unit ...

Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade. However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available). Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months. Why the increase in demand? Increased buying power. According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand. “Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixe...

Some Highlights: •The average down payment for first-time homebuyers is only 6%! •Mortgage interest rates have been on the decline since November! Hop in now to lock in a low rate! •88% of property managers raised their rents in the last 12 months! •The average credit score on approved loans continues to fall across many loan types!

Every month, the National Association of Realtors (NAR) releases their Seller Traffic Index as a part of their Realtors Confidence Index. In the latest release, NAR reported that homeowners have been reluctant to sell their houses. This is reflected when broken down by state. Only 11 states have a stable level of seller traffic compared to the remainder of the country, which came in with a weak rating. As we can see in the following table, the number of people who moved last year is half of what the rate was in the 1980s. This does not come as a surprise, as tenure length (the number of years someone owns a home before moving again) among existing homeowners has increased. It has risen from an average of 6 years from 1985 to 2008, up to 9.5 years over the last few years. This is shown in the graph below: As we can see, there is a pent-up seller demand! What led to this change in behavior? Falling prices during the housing crisis led to many homeowners having negative equity...

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market. Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market. 1. Why am I buying a home in the first place? This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money. For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.” This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are: •A good place to raise children and provide th...

Periodically, you need to rid yourself of things that are taking up you time and space to make room for more of what you like and want. There's a frequently quoted suggestion that if you haven't used something for two years, maybe it isn't essential in your life.   If you have books you'll never read again, give them to someone who will.   If you have a deviled egg plate that hasn't been used since the year your Aunt Phoebe gave it to you, it's out of there.   Periodically, go through every closet, drawer, cabinet, room and storage area to get rid of the things that are just taking up space in your home and your life. Every item receives the decision to keep or get rid of.   Consider these questions as you judge each item: When was the last time you used it? Do you believe you'll use it again? Is there a sentimental reason to keep it? You have four options for the things that you're not going to keep.   Give it to so...

There has been a lot written about millennials and their preference to live in city centers above their favorite pizza place. Some have even gone so far as to say that millennials are a “Renter-Generation”. And while this might be true for some millennials, more and more research has surfaced that shows for the vast majority, owning a home is a major part of their American Dream! New research shows that 66% of millennials who currently rent are determined to buy a home! Seventy-three percent of those surveyed by Pulsenomics plan to buy a home in the next five years, with 40% planning to do so within the next two years! “Millennials want to own a home as much as prior generations,” Ali Wolf, Director of Economic Research at Meyers Research says. “We saw millennial shoppers scooping up homes in 2018—and 2019 will be no different.” Bottom Line Are you one of the millions of renters who are ready and willing to buy a home? Let’s get together to determine your ability to buy no...

One of the many benefits of owning your own home is the freedom to find your ‘furever’ friend. By pointing out the aspects of your home that make it ‘pet-friendly’ in your listing, you’ll attract these buyers, rather than alienating the 68% of American households that have a pet! If you are one of the many homeowners looking to list your home for sale, how do you stand out to the millions of pet parents searching for their dream home? Whether a dog person, a cat person, or someone who prefers the company of another pet species, 99% of pet owners say that they consider their animal to be family. When finding a home, 95% of animal owners believe it is important that a housing community allows animals. A study by the National Association of Realtors (NAR) revealed that there are many aspects of the home buying, selling and owning experience that have been greatly impacted by our love for our pets. This should come as no surprise, as $72 billion was spent on pets in the U.S in 2018. ...

If you're at an age where you need to be taking Required Minimum Distributions (age 70.5) from your IRA, a qualified charitable contribution and some planning may allow you to lower your overall tax liability. Let's say that a couple's 2019 itemized deductions include $8,000 in property taxes, $4,400 in interest and $20,000 in charitable contributions.   That would total $32,400 which exceeds the 2019 $25,300 standard deduction for married couples, 65 years of age or older, filing jointly.   Their required minimum distribution from their IRA is $40,000 which will be taxed at ordinary income.   If this couple is in the 24% tax bracket, the tax liability would be $9,600. Alternatively, if they made the $20,000 in charitable contributions from their IRA as a Qualified Charitable Contribution, it would not be taxable in the withdrawal.   The balance of the RMD of $20,000 would be taxable at 24% which would have a tax liability of $4,800. Their $32,400 worth of it...

Some Highlights: •Every spring, your home needs some extra TLC! •Whether you plan on selling your home this spring or not, conducting this maintenance will help ensure your home functions well for the rest of the year. •Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!

In every area of the country, homes that are priced at the top 25% of the price range for that area are considered to be Premium Homes . In today’s real estate market there are deals to be had at the higher end! This is great news for homeowners who want to upgrade from their current house and move-up to a premium home. Much of the demand for housing over the past couple years has come from first-time buyers looking for their starter home, which means that many of the more expensive homes that have been listed for sale have not seen as much interest. This mismatch in demand and inventory has created a Buyer’s Market in the luxury and premium home markets according to the ILHM’s latest Luxury Report. For the purpose of the report, a luxury home is defined as one that costs $1 million or more. “A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting de...

In the time that it takes to write one check, you can set it up with your bank and never have to do it again.   You won't have to write checks, envelopes or buy stamps anymore.   You'll save time, money and benefit in other ways too. Never be late ... avoid late fees and protect your credit Schedule additional principal contributions monthly to save interest, build equity and shorten the mortgage term. An extra $200 a month applied to the principal on a $200,000 mortgage at 4.5% for 30 years will result in shortening the loan by 8.5 years.   If the loan was paid to term, it would save $52,977 in interest.   Use the Equity Accelerator to see how much you can save. It's convenient ... by doing it online with your bank, you'll have a centralized history of the payments. Protect your credit ... your payment history is the single biggest component of your credit score and accounts for over 1/3 of your credit score. Establishing the pra...

Here are five compelling reasons listing your home for sale this spring makes sense. 1. Demand Is Strong The latest Buyer Traffic Index from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home. Take advantage of the buyer activity currently in the market. 2. There Is Less Competition Now Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers. Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years du...