Using the Internet in Your Home Search

August 18, 2016 - Comments Off on Using the Internet in Your Home Search

To follow are insights on how to use the internet in your home search, and why it is important to have an experienced professional guiding you through the home buying process.

Using the Internet in Your Home Search

2016 Second Quarter Market Update

August 9, 2016 - Comments Off on 2016 Second Quarter Market Update

Please find below 2nd quarter statistics for Davis, Weber, Salt Lake, Utah, Tooele, and Box Elder Counties.

If you have any questions about the marketplace or if I can be of service to you or your friends and family, please let me know!

Thank you for being our client!

2016 2nd Quarter Market Update

Want More Money For Your Home? 3 Great Selling Tips

May 31, 2016 - Comments Off on Want More Money For Your Home? 3 Great Selling Tips

Many of our clients ask us which home renovations get the most return on their investment.  Please read on to learn which renovations pay off and how to remodel on a budget.

3 Tips to Renovate on a Budget

2016 First Quarter Market Update

May 4, 2016 - Comments Off on 2016 First Quarter Market Update

Please find below 1st quarter statistics for Davis, Weber, Salt Lake, Utah, Tooele, and Box Elder Counties.

20161stQuarterMarketUpdate

Great news!  According to the Utah Housing Market Report, the median sold price of homes has increased from last year and the average number of days on the market has dropped. 

FYI: The CDOM stands for Combined Days on Market.

2016 Market report

Home Maintenance Made Easy

April 19, 2016 - Comments Off on Home Maintenance Made Easy

Home maintenance is essential to preventing costly repairs.  This handy checklist will help you keep on top of home maintenance tasks so you can keep your home in great condition for years to come.

Home Maintenance Made Easy-1_Page_1Home Maintenance Made Easy-1_Page_2

Thinking of Buying a Home? 3 Questions Every Buyer Should Answer First

January 20, 2016 - Comments Off on Thinking of Buying a Home? 3 Questions Every Buyer Should Answer First

3-Questions-KCM

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Answering the following 3 questions will help you determine if now is actually a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is 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.

A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money. They are:

  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.

What does that mean to you?

Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait till next year. Your down payment will need to be higher as well to account for the higher home price.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of Realtors and Freddie Mac have all projected that mortgage interest rates will increase by approximately three-quarters of a percent over the next twelve months as you can see in the chart below:

Slide2

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

 

Building Family Wealth Over The Next 5 Years

December 23, 2015 - Comments Off on Building Family Wealth Over The Next 5 Years

Family-Wealth

As the economy continues to improve, more and more Americans are seeing their personal financial situations also improving. Instead of just getting by, many are now beginning to save and find other ways to build their net worth. One way to dramatically increase their family wealth is through the acquisition of real estate.

For example, let’s assume a young couple purchases and closes on a $250,000 home in January. What will that home be worth five years down the road?

Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists every quarter. They ask them to project how residential prices will appreciate over the next five years. According to their latest survey, here is how much value that $250,000 house will gain in the coming years.

HPES-Equity-Earned.jpg

Over a five year period, that homeowner can build their home equity to over $40,000. And, in many cases, home equity is large portion of a family’s overall net worth.

Bottom Line

If you are looking to better your family’s long-term financial situation, buying your dream home might be a great option.

Prices & Mortgage Rates Going Up in 2016

December 4, 2015 - Comments Off on Prices & Mortgage Rates Going Up in 2016

Prices-Rising-KCM

The monthly mortgage payment on a home is determined by two elements: the price of the house and the interest rate you pay on your mortgage. Recently released reports are revealing that the experts expect both elements to increase in 2016.

HOME PRICES

CoreLogic has projected a nationwide 5.2% home value appreciation for the next twelve months. Here is their breakdown by state:

Prices-KCM.jpg

MORTGAGE INTEREST RATES

All four of the entities that provide projections on mortgage interest rates agree: they’re going up in 2016. Here are the predictions over the next four quarters:

Current rates.jpg

Bottom Line

With both home values and interest rates projected to increase over the next twelve months, buying (or moving-up), sooner rather than later, makes sense.

Millennials: What FICO Score is Needed to Buy a Home?

December 1, 2015 - Comments Off on Millennials: What FICO Score is Needed to Buy a Home?

Millennials-Credit-KCM

In a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some Millennials are not looking to purchase a home simply because they don’t believe they can qualify for a mortgage.

The article quoted Jessica Lautz, the National Association of RealtorsManaging Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos :

“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”

So what credit score is necessary?

A recent survey reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.

In actuality, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months.

FICO-score-KCM.jpg

Bottom Line

Millennials who are considering a home purchase should get advice from a local real estate or mortgage professional now. They may be surprised how much the requirements for a mortgage have eased.

Should I Wait to Put Down a Bigger Down Payment?

October 5, 2015 - Comments Off on Should I Wait to Put Down a Bigger Down Payment?

Should-I-Wait-KCM

Some experts are advising that first time and move-up buyers wait until they save up 20% before they move forward with their decision to purchase a home. One of the main reasons they suggest waiting is that a buyer must purchase private mortgage insurance if they have less than the 20%. That increases the monthly payment the buyer will be responsible for.

In a recent article, Freddie Mac explained what this would mean for a $200,000 house:

Difference-in-Percentage-and-20

However, we must look at other aspects of the purchase to see if it truly makes sense to wait.

Are you actually saving money by waiting?

CoreLogic has recently projected that home values will increase by 4.3% over the next 12 months. Let’s compare the extra cost of PMI against the projected appreciation:

PMI-vs-Appreciation

If you decide to wait until you have saved up a 20% down payment, the money you would have saved by avoiding the PMI payment could be surpassed by the additional price you eventually pay for the home. Prices are expected to increase by more than 3% each of the next five years.

Saving will also be more difficult if you are renting, as rents are also projected to increase over the next several years. Zillow Chief Economist Dr. Svenja Gudell explained in a recent report:

“Our research found that unaffordable rents are making it hard for people to save for a down payment … There are good reasons to rent temporarily – when you move to a new city, for example – but from an affordability perspective, rents are crazy right now. If you can possibly come up with a down payment, then it’s a good time to buy a home and start putting your money toward a mortgage.”

Laura Kusisto of the Wall Street Journal recently agreed with Dr. Gudell:

“For some renters there may be a way out: Buy a house. Mortgages remain very affordable.”

Mortgage rates are expected to rise…

Freddie Mac is projecting that mortgage interest rates will increase by almost a full percentage point over the next 12 months. That will also impact your mortgage payment if you wait.

Bottom Line

Sit with a real estate or mortgage professional to truly understand whether you should buy now or wait until you save the 20%.