Is Saving for a Home Impossible for Millennials?

One of the issues that have come about because of the housing crisis is the problem of saving for a down payment. Buyers got spoiled to the idea that they could buy a home with 100% financing. Of course, this was one reason they ended up underwater on their mortgages. With the crisis came stricter requirements from lenders to qualify for homes. One of those restrictions was a resurrection of higher down payments.

Back to the way it was

The idea of having 20% down to buy a home has halted a lot of buyers, especially first-timers. However, this is not a new restriction. In fact, back in the mid-20^th century, 20% was considered reasonable for a down payment. In fact, it was not uncommon for lenders to require 40-50% down for financing. It’s just quite a change from where buyers were five or ten years ago.

Fast forward to today

Today’s home buyers aren’t saving the money they need to buy the homes they want. At least not at the level you would expect. They aren’t ready to give up the other things on their list of must-haves or just “I wants.” However, saving for that big purchase of a home doesn’t have to be the impossibility that some people see. Here are some ways that you can start saving for the down payment without giving up your latte.

·         Sell stuff – find things you own that you no longer use, sell them and put the money in savings.

·         Delay other purchases – do you really need that new living room set right now? Wouldn’t it look better in a nice new home?

·         Freelance or take on a second job – find something you like to do and charge for it. It may be babysitting, designing brochures, or even teaching a class, but that extra cash can go into your house fund.

Start saving up money to buy your first home. Even if you could get a loan with no money down, just think about how far ahead of the game you are with 10-20% down. If you have been saving and are ready to make that big purchase, give me a call. I can help you find the right house to fit your lifestyle and budget.

Are You Ready for a Mortgage?

Everyone is telling you that now is the time to buy before interest rates go up and your dream home is unaffordable. But buying a house just because it is a good idea doesn’t mean it is right for you. While you may think of the benefits of home ownership, you have to be ready for the challenges, too. Here are a few indications that you are ready to take that next step.

You have a down payment.

You have been saving money for your down payment. Even if you don’t have a lot saved, the act of putting money aside shows you are ready to become a home owner. You can find some special programs like FHA loans that don’t require a huge down payment.

You are dedicated to your budget.

You have a budget that you faithfully follow and are willing to do without some things if they don’t fit in your calculations. As a homeowner, you are going to have costs related to upkeep and maintenance of the home, so you need to know how to live within your means.

You know what you want in a home.

While you do need to be flexible about the home you choose, certain things are non-negotiable and you know what those are. Buying a home is much different from renting; you can’t just pick up and leave. You can be sure that you are going to be happy in the neighborhood and home you select for at least five to seven years.

You know the difference between wants and needs.

Buying a home that fits your family is important, but many people have the wrong idea about what they really need. Enough bedrooms, a good school district and a location close to work are items that are needs, essential to your happiness. However, finding a home with stainless steel appliances, walk-in closets or the perfect paint job are just wants that you can do without. It’s important that you understand the difference.

You can accept less than perfect.

No house is perfect and you must accept that before you can find the house you are meant to have. You must realize that no house is going to have everything you want. Instead, it will be your job to make the house you choose into your home.

If you understand these five concepts, then you are ready to buy a home. Give me a call and I can help you find that place that fits you and your family.

The Biggest Problems Sellers Have with Buyers

Buying or selling a home can be a stressful time. For sellers, they often have to figure out how to buy and sell at the same time or out-do the competition down the street to get the best selling price. Buyers worry that they may not find the homes they want or the sellers won’t accept their offers.

Here is a list of things buyers need to be aware of to avoid irritating the seller and to have a better chance of getting their offers accepted.

Be Courteous at Showings and Open Houses

Often the seller isn’t present when a home is shown, but that doesn’t mean the buyer can act anyway he or she wants to. Treat the house like you are a guest – after all, it’s not your home yet. Take off your shoes if they are muddy or the seller has asked for this in the showing instructions. Close doors carefully and don’t mess up or rearrange items. Keep your kids under control and don’t let them bounce on the furniture or do other things they might at home.

Cancel an Appointment If You Can’t Attend

One of the biggest pet peeves of a seller or his agent is when buyers make an appointment to see the house and then don’t show up. Sure, they understand that things come up, but a phone call is expected. The seller takes a lot of time to clean up and get out of the way, so be considerate of their time and inconvenience you cause by missing an appointment.

Don’t Pick Apart a House

Sure, there’s bound to be some things wrong with a place, but if you plan to put in an offer, don’t start listing them. Skip the complaints about wall colors or carpet; those are easy to change out. Instead, focus on big issues if you find any and explain why you still want the house if you are requesting them to be fixed.

Be Reasonable with the Contract

Buyers may try to take charge of the negotiations and start asking for a bunch of concessions or changes. This annoys a seller, especially if the requests are troublesome or unnecessary. For example, pushing the closing date. Buyers must understand that the seller has to move out and find a new place to live and be flexible.

When buyers are considerate, reasonable and put themselves in the seller’s shoes, it makes the entire process go smoother for everyone.

What the Second Half of 2014 Will Bring for the Housing Market

It has been a roller coaster ride for the last couple of years whether you are a buyer or seller. In 2013, you watched prices for homes skyrocket up from the bottom. The first half of 2014 saw the market stall, causing many to wonder what would happen next. Now that it is the busy season for the housing market, what will the rest of the year be like? Many experts have their predictions.

Steady but Sure

The theme for the second half of 2014 is steady but sure. Housing prices will continue to climb but at a much slower pace. This is good news for both buyers and sellers. Sellers who have been hesitating to put their homes on the market will feel more confident, which means that buyers will have more to choose from even as the market slows for the fall and winter season.

This change also means fewer bidding wars as people hunt for bargains. With fewer foreclosures on the market, most homes will be priced close to what they are worth. However, inventory will continue to increase as more sellers can finally afford to sell with rising home prices.

New Homes and New Buyers

New home construction is still sluggish in much of the country. This is expected to change in the coming months but at a steady pace. Overall, inventory will continue to go up, giving buyers more options.

One of the issues has been the low number of first-time buyers who are making purchases. They only comprise about a quarter of those who are purchasing homes in 2014. Many reasons have been given, but one of the primary causes is in rent vs. buy. Those who are moving out from their parents' homes are looking to rent instead of buy. This can be seen in the large demand and increasing inventory for apartment buildings.

From what experts are saying, the second half of 2014 may be a great time to buy or sell with better inventory, continued low rates, improved prices and less competition.

If you are ready to buy or sell your home, let me help. I can make the process easier and have you moving on to the next chapter of your life.

Learning about Home Maintenance

First-time homebuyers feel a thrill when the keys to their homes are finally placed in their hands. They may begin planning how they will decorate, what furniture they need to buy or when they will host their first parties. Home maintenance is seldom thought of until something goes wrong.  If you want your home to continue to look and work like it did when you first walked through the door, you will have ongoing maintenance to manage.

Heating and Cooling

One of the biggest expenses in a home is replacing a furnace or air conditioner. To postpone that purchase as long as possible, you have to take care of the systems from day one. Unless you are buying a new build, schedule a visit from a professional to look at your heating and cooling systems. They can clean the air filters or replace them and do other preventative maintenance to keep everything running smoothly.

You can learn to replace your own filters. You should check them at least once a year or more often if you have pets.

Fireplaces

If you have a fireplace or wood-burning stove in your home, you need to have a professional check and clean the chimney before you use it. This prevents the likelihood of a house fire when you start using your fireplace. This is a job for professionals and must be done every fall before you build your first fire.

Gutters and Roofs

You must clean out your gutters to ensure proper water runoff. Otherwise, it can leak onto your roof and along the house line and cause damage. When cleaning the gutters, take time to check the roof as well. Look for any broken or damaged shingles and have them replaced.

You need to check your gutters every spring and fall and inspect your roof at the same time. If you have a strong storm known for doing damage, you will want to do a quick check then, too.

Caulking

There are two areas that homeowners need to be concerned about for caulking. First, the windows. This keeps the air from getting around the cracks. Keeping your windows sealed will improve heating and cooling efficiency and help you save on utility bills. In addition, it prevents water from getting in and damaging your home. This is a DIY job so it won't cost you much, except for the price of the caulk and your time.

Check the caulk on your windows every fall, but you may not have to do it every year.

The second place to caulk is around your tub. Check it around the floor and the walls by the tub to make sure the caulk is tight. If it is loose or missing, recaulk it. This prevents water from causing damage. At the same time, check the seal around the toilet.

Other typical maintenance for homeowners includes inspecting the exterior paint for peeling or cracking and power-washing it to keep it clean, checking decks for damage or to re-stain and inspecting the crawl space for water leaks.

By doing regular home maintenance, you can prevent a lot of costly issues. It also allows you more time to spend enjoying your home rather than making repairs.

How to Sell Your Home This Summer

Summer is the hottest season of the year for the housing market. If you are ready to sell your home now, you will have a lot more buyers looking. Of course, the competition is fiercer now, too. Here are a few tips to help you beat out the competition and have the buyers beating your door down with fabulous offers.

Look Beyond the Walls

Summertime is about being outside and enjoying the warm sunshine, the pool and back yard barbeques. What this means for sellers is that they need to think beyond the inside of their homes if they want to appeal to buyers. Spruce up the landscaping and create an outside oasis. This doesn't mean you have to spend a fortune. Find a cheap table and chairs set and use a can of spray paint to make it look like new.

Stay Cool

Make sure your home is nice and cool for open houses and showings. This is an important rule to remember, especially if you have already moved out. Sellers often try to keep down costs and may not turn down the thermostat to an optimal comfort level.  Not only will buyers be more likely to linger and look around if the house is nice and cool, they will know that the AC is in great working order.

Provide a Cool Welcome

Buyers often tour multiple open houses and in the heat this can leave them tired and cranky. Make your home a memorable stop with cool refreshments. They won't be in a hurry to leave and will remember your place as the house "with the delicious lemonade" when they are reviewing what they saw. Even ice water will be enough to win them over.

The hot days of August are here and with them, tired buyers who just want to find a place they can call home. Make yours stand out when they walk through your door. Let it speak to them of coolness and comfort and you just might find a great offer on the table. That is a fantastic way to end the summer.

If you are ready to sell your home this summer or if you happen to be looking to buy a new home, give me a call. Contact me and I can help you sort through the listings to find your dream home.

Pending Home Sales Moving Upward

The numbers looked much better in May for home sales with the release of that month's statistics for the Pending Home Sales Index. It showed that the Northeast and West had the best improvements, but general numbers were up from April by 6.1 percent. In fact, the Northeast was the only area that showed improvements over 2013.

While this is good news for everyone, there is still room for caution. The numbers for May 2014 were still below what they were in May 2013. Many economists expect the home sales to continue to improve for the second half of the year, but may not be enough to make up for the first half of the year. It is expected that the totals for 2014 will still fall below those for the previous year.

First-time homebuyers were only about 27% of the numbers of pending home sales. The reason behind these low numbers is affordability coupled with lower credit scores and income. If you divide up the numbers between homes that were above $250,000 and those below, sales for homes that fell under $250,000 were down from 2013 by about 10 percent.

 There is good news for those who want to buy their first home though. Rent prices are expected to increase due to low availability. In addition, income is expected to rise and a slightly easier approval process should make it better for those applying for their first home loan.

Analysts do expect home prices to continue to rise even while existing home sales are expected to be below 5 million.

These numbers should not deter first-time homebuyers from jumping into the home buying process. Instead, it should inspire them to learn all they can about buying a home and what it involves and make sure they meet all of the requirements. It is also important to know how much home buyers can afford and not overextend themselves.

If you are ready to become a first-time homeowner, give me a call and I can show a variety of homes in your price range. With a reputable, experienced real estate agent on your team, it can make the process go much smoother. In no time at all, you will be a new homeowner.