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...

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 benefit...

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...