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...