Hope Leitner, Realtor®, CRS

iBuyers: What Is the “Cost of Convenience” When Selling Your Home? iBuyers: What Is the “Cost of Convenience” When Selling Your Home? | MyKCM When thinking about selling their house, homeowners have many options. A relatively new option is using an “iBuyer.” What is an iBuyer? According to Jovio, the definition is: “A company or investor that uses Automated Valuation Models (AVMs) to make instant offers on homes. It allows sellers to close on a property quickly. Once sold, the company then turns around and resells the home for a profit.” Today, there are many iBuyer companies such as OfferPad, Zillow Offers, Knock, Opendoor, and Perch. Even some more traditional companies offer the same or similar services (ex. Keller Williams, Redfin, Realogy). Ivy Zelman reported in her ‘Z’ Report that some traditional brokers are partnering with some of the larger iBuyers too: “Keller Williams announced a partnership with Offerpad, aligning the largest franchise-based brokerage brand in the U.S

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019. Here’s what some of the experts have to say: Ralph McLaughlin, Deputy Chief Economist for CoreLogic “We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.” Lawrence Yun, Chief Economist at NAR “We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.” Freddie Mac “The drop in mortgage rates continues to stimulate the real estate market and

The process of buying a home can be different based on the price range and whether a mortgage is needed.   While some things are different, others are similar regardless of price, financing or local customs. Each year, the National Association of REALTORS® surveys buyers and sellers who have purchased or sold in the previous twelve months in order to identify the process and steps taken.   It provides a lot of information for the people who will be going through the process now and in the near future. 44% of all buyers looked online for properties for sale.   This might be considered a logical first step to determine the prices of homes in certain areas and what features they offered. 17% of all buyers stated that their next step was to contact a real estate agent.   In another REALTOR study, it is reported that 87% of all buyers purchased their home through a real estate agent or broker.   Buyers identify a wide range of services the agents offer that is considered valuable in t

Equity build-up could be one of the biggest advantages to buying a home.   There are two distinct dynamics that take place to make this happen:   each house payment applies an amount to reduce the mortgage owed and appreciation causes the value of the home to go up. It is easy to make a projection based on the type of mortgage you get and your estimation of appreciation over the time you expect to own the home.   Even conservative estimates can produce impressive results. Let's look at an example of a home with a $270,000 mortgage at 4.5% for 30 years and a total payment of $2,047.55 payment including principal, interest, taxes and insurance.   The average monthly principal reduction for the first year is $362.98. If you assume a 3% appreciation on the $300,000 home, the average monthly appreciation is $750 a month. The total payment of $2,047.55 less $1,112.98 for principal reduction and appreciation makes the net monthly cost of housing, excluding tax benefits, $934.57.   I

Some Highlights: •Buying a home can be intimidating if you’re not familiar with the terms used throughout the process. •To point you in the right direction, here’s a list of some of the most common language you’ll hear when buying a home. •The best way to ensure your home-buying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher.’

It seems you can’t find a headline with the term “housing affordability” without the word “crisis” attached to it. That’s because some only consider the fact that residential real estate prices have continued to appreciate. However, we must realize it’s not just the price of a home that matters, but the price relative to a purchaser’s buying power. Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by 3.5% over the last year. Let’s look at three different reports issued recently that reveal how homes are very affordable in comparison to historic numbers, and how they have become even more affordable over the past several months. 1. National Association of Realtors’ (NAR) Housing Affordability Index: Here is a graph sh

Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of shows like “ Property Brothers ,” “ Fixer Upper ,” and “ Love It or List It ,” all in one sitting. When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, you may need a reality check. Reality TV Show Myths vs. Real Life: Myth #1: Buyers look at 3 homes and decide to purchase one of them. Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors, the average homebuyer tours 10 homes as a part of their search. Myth #2: The houses the buyers are touring are still for sale. Truth: Everything is staged for TV. Many of the homes shown are already sold and are off the market. Myth #3: The buyers haven’t made a purchase decision ye

Some Highlights: •Owning your own home vs. renting may lead to some great options, such as locking in your monthly payments and having the freedom to customize your living space. •Whether you rent or own, you have to cover someone’s mortgage costs. You may as well be doing so to build your own wealth, rather than that of your landlord. •Renting and owning both have up-front fees when you sign your lease or close, respectively. Think about putting that money to work for you!

35% of respondents, in a recent annual Gallup poll that dates back to 2002, identified real estate as the best long-term investment option compared to 27% who identified stocks. The top choices included real estate, stocks, savings accounts and gold.   Even with the remarkable prices of the different U.S. stock indices recorded in 2019 through April and May, homes have the highest confidence in the minds of the respondents. This seems to be based on the stability of the housing market and the expectation that home prices will continue to rise.   Homeowners build equity from both appreciation as well as reducing principal with each payment made. These same factors exist for investors of rental homes in predominantly owner-occupied neighborhoods. Real estate has another dynamic working to produce favorable investment results due to leverage.   Leverage occurs when borrowed funds are used to control an asset.   When the borrowed funds are at a lower rate than the overall investment

The Internal Revenue Service considers four different types of real estate.  Specific types of properties have benefits based on their classification.  The determination does not depend on the property itself as much as it depends on how the property is used and what the owner's intentions are. Principal Residence ... a principal residence is the place a person lives or expects to return if they are temporarily away from it.  It could be a single family, detached home or condominium or a duplex, tri-plex or four-unit.  The owner(s) can deduct the qualified mortgage interest and property taxes on the schedule A of their tax return.  There is a capital gains exclusion on profit of up to $250,000 for a single taxpayer and up to $500,000 for a married taxpayer.  Income Property  - is improved property that is rented or leased to tenants as opposed to using it personally.  It can include houses and condos, apartment buildings, office complexes, shopping centers, warehouses and othe

Some Highlights: •Existing Home Sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. •Low inventory levels are still a factor in the market. The current supply of homes for sale is at 4.4 months, which is less than the optimal 6-month supply. •Median home prices were up 4.3% from June 2018, hitting $285,700. This marked the 88th consecutive month with year-over-year price gains.