Why You Should Hire A Professional When Buying A Home!

Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to go it on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide if you are Traveling a Dangerous Path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and ready for you to move in to can be tricky. An agent listens to your wants and needs, and can sift out the homes that do not fit within the parameters of your “dream home”.

A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

Buying A Home Can Be SCARY...Until You Know The FACTS!

Some Highlights:

• 36% of Americans think they need a 20% down payment to buy a home. 44% of Millennials who purchased a home this year have put down less than 10%.
• 71% of loan applications were approved last month
• The average credit score of approved loans was 723 in September (the lowest recorded score since Ellie Mae began tracking in August 2011).

3 Spooky Myths of Home Buying

All of the frights of the fall – like the terrifying calorie count of the handfuls of treats you're scarfing down at the office and the ghouls and goblins lurking at your door – will all be gone before you know it. But some horrors last year-round, including scary myths about buying a home .

Let's take the fear out of a few of them.



1. Spooky myth: You need a 20 percent down payment to buy a home.

Truth: Not every lender requires such a large down payment from every buyer. It all depends on your financial situation, and often your credit worthiness. Buyers often pay a down payment of between 5 and 10 percent. In fact, some Federal Housing Authority (FHA) loans require only a 3.5-percent down payment. There are also programs that help provide down-payment assistance for first-time homebuyers . You'll want to explore all your options.



2. Spooky myth: You’ll never qualify for a mortgage if you have any outstanding debt.

Truth: Just like there are good witches and bad witches, there’s good debt and bad debt. Excessive debt and late payments can crush a credit score, which could mean trouble when it comes to qualifying for a home loan . However, good debt that you’ve dutifully been paying off bit by bit, like school and car loans, can actually help your chances by showing that you’ve been financially responsible. Another key factor is your debt-to-income ratio. Essentially, lenders don't want your housing expense to exceed 28 percent of your gross monthly income, and they don't want your monthly debts (for example, credit card minimums and car payments) to exceed 36 percent of your gross monthly income. This is called the 28/36 rule . If you fall within the parameters of the rule, it's OK to be optimistic about your chances of qualifying for a mortgage.



3. Spooky myth: The mortgage amount I qualify to borrow represents what I can afford.

Truth: This is so wrong, it's blood curdling. Lenders who prequalify you for a home loan are not considering all the facets of your budget, such as child care costs, groceries and utilities. They look primarily at your gross income, your debt and your credit-worthiness. It's up to you to determine your price range based on the monthly payment you can afford to absorb when you consider your take-home pay and all of your monthly expenses. The number you're comfortable with may be lower than the amount the lender has authorized. And whether or not you can afford the monthly payment on the full qualifying amount, you don't have to borrow as much as the bank is willing to lend you.



Keep Halloween scary but take the spookiness out of buying a home . Use an agent that has a well-rounded background in business management, marketing and sales: http://www.housefl.com/



(Article from Remax.com)

Here Come the Millennials!!

Many have been wondering when the much anticipated move by Millennials’ into homeownership would actually take place. We know the belief in owning a home is there.

According to a recent Merrill Lynch study , eighty one percent of Millennials believe “homeownership is an important part of the American Dream” . This compares favorably to previous generations.



The obstacle seemed to be employment. It appears that is about to change.

The most recent jobs report disappointed many economists. However, the silver lining in that cloud of doubt was Millennials. Jonathan Smoke, realtor.com Chief Economist, reported :

“About 33% of civilian jobs created over the last 12 months have been for the young adults who are most likely to buy their first home. This should help support continued growth in the share of homes purchased by first time buyers, as economic success has been influencing older Millennials to jump into the housing market this year.”

Selma Hepp, chief economist at Trulia , concurred :

“The faster rate of job growth among Millennials will continue to bolster both the rental and for-sale housing markets for an extended period of time.”

It appears that Millennials will be entering the housing market in great numbers in the very near future.

Family Wealth Grows as Home Equity Builds

With residential real estate values rising quite substantially in most parts of the country over the last few years, many homeowners are seeing a major increase in their family’s wealth as equity continues to build in their house.

A recent study by the Joint Center of Housing Studies at Harvard University revealed that home equity grew nicely last year and has grown dramatically over the last five years…

Buyers looking today may not see the same build-up in equity but could still do quite well.

Let’s assume youwent into contract in the next six weeks and closed on a $250,000 home in January. If we take the house value projections from the last Home Price Expectation Survey , here is how your equity would grow over the next four years:

Bottom Line

Homeownership has historically been a great way for the average American family to build wealth over time.

Buying a Home Remains 35% Less Expensive than Renting!

In the latest Rent vs. Buy Report from Trulia , they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

• Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation. “In the past year, these two trends have made homeownership even more affordable compared with renting.”
• Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.

Bottom Line

Buying a home makes sense socially andfinancially. Rents are predicted to increase substantially in the next year, lock in your housing cost with a mortgage payment now.

New Home Sales Surge

According to the latest report from the US Census Bureau and the Department of Housing and Urban Development , newly constructed home sales jumped 5.7% month-over-month and 21.6% year-over-year to an annual pace of 552,000.

Many buyers are looking to the new homes market to make up for the lack of existing home sales inventory. National Association of Home Builders Chief Economist David Crowe explains:

"Today's report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low. The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015."

Regionally, the Northeast led the way with a 24.1% increase in new home sales, followed by the South (7.4%) and West (5.4%). Sales in the Midwest declined by 9.1%.

The inventory of new homes for sale currently sits at a 4.7-month supply down slightly from July (4.9) and significantly from August 2014 (5.4).

Buyers who purchased a new home were willing to spend more to get the amenities that they wanted. The median home price for new homes was $64,000 higher than existing homes in August at $292,700!

Approved applications for building permits increased 3.5% over July and 12.5% over this time last year. Permit applications are seen as a strong indicator of builder confidence in the market.

Bottom Line

Buyer demand continues to outpace inventory of homes for sale. If you are thinking of selling your house this year, now may be the time to list before builders have a chance to replenish the supply of new homes.



For more information on the original post :

http://www.simplifyingthemarket.com/2015/10/13/new-home-sales-surge/?a=217437-c603026527635a35fc4c17da95ca9ed9