March National Housing Trend Report

by Team Member 4. May 2015 09:45

The realtor.com March National Housing Trend Report shows that inventory in Kansas City has increased 2.7 percent month over month and decreased 12.8 percent year over year. In March 2015, homes spent approximately 67 days on the market, which was a decrease of 33 percent both month over month and year over year. Median prices rose to $178,000, an increase of 4.1 percent month over month and 15.6 percent year over year. WE CAN GET YOUR HOME LISTED AND SOLD QUICKLY! Need a great agentjQuery152009523531165905297_1430747125186 Email or call me and allow my team to get your home SOLD the 1st time! barbandtrice@greaterkcrealty.net | 913.232.9252 


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NAR Infographic: Today’s Opening Day Baseball Matchups in Home Prices

by Team Member 6. April 2015 11:13


Baseball enthusiasts young and old are rejoicing today as the start of another baseball season gets underway. While fans will most likely be focused on extra-base hits, double-plays and ERA’s, look to our newly released infographic for signs of home prices in 16 cities playing baseball today.

Read more - http://narnewsline.blogs.realtor.org/2015/04/06/nar-infographic-todays-opening-day-baseball-matchups-in-home-prices/#sf8412129

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Did you remember to "Spring Forward" an hour on Sunday? What a difference an hour makes!

by Team Member 9. March 2015 10:54

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Buying A Home | General | Research | Selling Your Home

4 Reasons to Buy Before Spring!

by Team Member 12. January 2015 11:53

  

The holiday season is behind us, time to focus on what exciting new experiences 2015 can bring! If you are planning on becoming a homeowner, or moving up to the home of your dreams in 2015, here are four great reasons to consider buying a home now, instead of waiting until spring.

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2015 Resolution: Save for a House?

by Team Member 5. January 2015 14:40

by  on December 31, 2014

Many people make New Year’s Resolutions as the calendar flips from December 31st to January 1st. Often times, at the top of the list (along with trimming the waist line) is saving money and paying down debt. Many people do so with a goal in mind – a nice vacation, a new car, or even a new home. Maybe this year you are saving for your downpayment for a new home, or know someone who is.

Read more: http://economistsoutlook.blogs.realtor.org/2014/12/31/2015-resolution-save-for-a-house/#sf6701797

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The REAL Reasons Americans Buy a Home

by masspa 29. December 2014 10:57

Last week, we reported on the financial reasons that the New York Times felt that homeownership was important. The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.

There’s No Place Like Home

The top 4 reasons to own a home cited by respondents were not financial.

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4 Reasons to Buy Before Winter

by Team Member 18. November 2014 14:38

It's that time of year, the seasons are changing and with them bring thoughts of the upcoming holidays, family get togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.

Click here to read more: http://www.keepingcurrentmatters.com/2014/11/10/4-reasons-to-buy-before-winter-2/?utm_content=bufferf1a1b&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

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More Americans Are Going Solo

by Team Member 28. October 2014 08:47

According to the Bureau of Labor Statistics, this year is the first time that single Americans make up the majority of the adult population since the government began tracking the data 38 years ago (a whopping 124.6 million people identify as single!) A recent article from Builder Magazine describes how single adults will change the face of the housing industry: http://bit.ly/1Dd2FsE

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Home Buying in Six Steps

by Team Member 7. October 2014 09:49

The home-buying process can seem daunting to potential homebuyers, but a qualified real estate professional who understands the entire process can help ease many of these worries. Be prepared with these useful tips - http://buff.ly/1x9dWtL

 

 

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Millennials and the American Dream

by Team Member 18. September 2014 11:34

by  on September 16, 2014

In the next five years, 8.3 million new millennial (Gen Y) households will form. It is predicted that millennials will spend $1.6 trillion on home purchases and $600 billion on rent. The generation is optimistic: 79% expect their financial situation to improve and 74% expect to move within the next five years.

Read more here: http://economistsoutlook.blogs.realtor.org/2014/09/16/millennials-and-the-american-dream/#sf4672543

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5 Best Ways to Research Your Property History

by Team Member 8. September 2014 13:26

By:  

Property history research gives you a picture of how the history of your property developed through the years. The history may purely serve to staunch your curiosity.

But you may also learn why some things were built as they were and—potentially—learn more information to help you fix or update your home.

If you’re embarking on a remodel, for example, you’ll need to understand the genesis of your home, how it was built and possibly added on to, and what might lie behind the walls or under the carpeting.

Plus, sometimes it’s just fun to know the provenance of your abode. You can start by asking your REALTOR®, and if you want to go deeper into the property history, there are these resources as well.

Click here to read about the various research methods: http://www.realtor.com/advice/5-best-ways-research-your-property-history/?sf4186933=1

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July Existing Home Sales Data Release

by Team Member 2. September 2014 12:35

It's easy to see the value of an open house. REALTORS® and homeowners who think outside the box can increase the number of prospective buyers who see the home. Here are 6 creative open house ideas to sell homes fast:

  • Last week, NAR released a summary of existing home sales data, showing that July’s existing home sales continued to improve with the highest sales pace of the year.  July marks the fourth consecutive month of increased sales. Sales improved by 2.4% from last month but declined 4.3% from a year ago.
  •  The national median existing-home price for all housing types was $222,900 in July, up 4.9% percent from July 2013.
  •  All regions showed growth in prices – the Northeast had the lowest gain at 2.4% from last year. The West continues to maintain the biggest price gain  (up 6.3% from a year ago).
  • July’s inventory figures increased by 5.8% from a year ago and it will take 5.5 months to move the current level of inventory. It takes approximately 48 days for a home to go from listing to a contract in the current housing market.
  • Distressed sales have hit a low point, representing a lesser portion of the homes being sold. All cash buyers are representing 20% of the home purchasing population. Price appreciation is decelerating, loans are performing well and mortgage rates are still low so there are some key positives for housing recovery.
READ MORE - http://economistsoutlook.blogs.realtor.org/2014/08/27/draft-july-existing-home-data-release/#sf4390172

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REALTORS® Confidence Index Survey: July 2014 Highlights

by Team Member 25. August 2014 14:26

In July, REALTORS® continued to hold a modest assessment about the existing home sales market. REALTORS® reported an inventory uptick in some areas, but in many areas supply remained tight, especially for "lower" and "middle-priced" homes. http://bit.ly/1ttz36T

 

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Taking the Long View on Recovery

by Team Member 21. July 2014 16:21

JULY 2014 | BY LAWRENCE YUN

No industry is more cyclical than the housing sector. Changes in job growth and mortgage rates can have a big impact on whether home sales rise or fall. Today, after two years of solid growth, home sales appear to be hitting a soft spot. But that doesn’t necessarily mean the recovery is over.

Compared with previous cycles, hitting a soft spot only two years into a recovery is unusual. That’s because the country’s steady population growth typically boosts demand for home sales after a  downturn. We saw this in the three housing recoveries since 1970. These recoveries were multiyear phenomena of seven, five, and 14 years (the boom).

This time, the expansion seems to be sputtering after only two years. Why? It doesn’t appear to be a lack of demand. We’ve seen a build-up of potential buyers from the creation of 2.4 million jobs over the past 12 months, as well as continuing low interest rates (4.2 percent as of early summer), and the pent-up demand from young adults living at home longer or doubling up with friends.

The difference between this and previous recoveries is on the supply side. There simply isn’t enough inventory to keep the market growing. Just to keep pace with the growing U.S. population, we would need to see about 1.5 million housing starts a year, but since the downturn, we’ve seen the construction of new homes at levels well below half that.

Fortunately, we’re starting to see more homes being listed for sale. March and April inventory levels were higher this year compared with last year, and homebuilders are increasing their activity.

To be sure, the affordability side continues to face pressure. Home prices have been rising throughout the recovery, and credit standards remain tight. But there’s good news on both fronts. As more homes come on the market, the pressure on prices should moderate, and we expect future price gains to be in line with income growth. And we see signs lenders could dial down credit standards to more normal levels, in part because of the strong performance of mortgages originated in the last few years.

Therefore, all in all, a multiyear housing market recovery is still in the works if we discount the modest slowdown for this year.

SOURCE: http://realtormag.realtor.org/news-and-commentary/economy/article/2014/07/taking-long-view-recovery#sf3767236

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National Association of REALTORS® Existing Home Sales Report

by Team Member 16. July 2014 13:00

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Price Expectations by State in Next 12 Months

by Team Member 7. July 2014 11:21

Posted in Did You Know, by  on July 1, 2014

REALTORS® generally expect home prices to increase in all states and the District of Columbia over the next 12 months, according to the May 2014 REALTORS® Confidence Index. The median expected price increase is 4.0 percent (same as in Feb-April 2014) [1].

 

Expected price movements depend on local conditions relating to housing demand and supply, demographics, and job growth. The difficulty in accessing mortgage financing and modest expectations about overall economic and job prospects are factors underpinning the modest price expectation. The expected price growth was highest (red) in states with low inventory levels, strong cash sales, and strong growth sectors (e.g., technology, oil).

[1] The median expected price change is the value such that 50 percent of respondents expect prices to change above this value and 50 percent of respondents expect prices to change below this value. A median expected price change is computed for each state based on the respondents for that state. The graph shows the range of these state median expected price change. To increase sample size, the data is averaged from the last three survey months.

SOURCE: http://economistsoutlook.blogs.realtor.org/2014/07/01/realtors-price-expectations-by-state-in-next-12-months-based-on-may-2014-realtor-survey/#sf3511861#sf3514930

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Pending Home Sales Surge in May

by Team Member 30. June 2014 13:30

WASHINGTON (June 30, 2014) — Pending home sales rose sharply in May, with lower mortgage rates and increased inventory accelerating the market, according to the National Association of Realtors®. All four regions of the country saw increases in pending sales, with the Northeast and West experiencing the largest gains.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 6.1 percent to 103.9 in May from 97.9 in April, but still remains 5.2 percent below May 2013 (109.6). May’s 6.1 percent increase was the largest month-over-month gain since April 2010 (9.6 percent), when first-time home buyers rushed to sign purchase contracts before a popular tax credit program ended.

Lawrence Yun, NAR chief economist, expects improving home sales in the second half of the year. “Sales should exceed an annual pace of five million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation,” he said. “However, second-half sales growth won’t be enough to compensate for the sluggish first quarter and will likely fall below last year’s total.”  

Despite the positive gains in signed contracts last month, Yun cautions that affordability and access to credit is still an area of concern for first-time home buyers, who accounted for only 27 percent of existing-home sales1 in May and typically carry student loan debt and lower credit scores.

“The flourishing stock market the last few years has propelled sales in the higher price brackets, while sales for homes under $250,000 are 10 percent behind last year’s pace. Meanwhile, apartment rents are expected to rise 8 percent cumulatively over the next two years because of tight availability,” said Yun. “Solid income growth and a slight easing in underwriting standards are needed to encourage first-time buyer participation, especially as renting becomes less affordable.” 

The PHSI in the Northeast jumped 8.8 percent to 86.3 in May, and is now 0.2 percent above a year ago. In the Midwest the index rose 6.3 percent to 105.4 in May, but is still 6.6 percent below May 2013.

Pending home sales in the South advanced 4.4 percent to an index of 117.0 in May, and is 2.9 percent below a year ago. The index in the West rose 7.6 percent in May to 95.4, but remains 11.1 percent below May 2013.

Yun expects existing-homes sales to be down 2.8 percent this year to 4.95 million, compared to 5.1 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 percent this year and in the range of 4 to 5 percent in 2015.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

SOURCE: http://www.realtor.org/news-releases/2014/06/pending-home-sales-surge-in-may#sf3492319

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Existing-Home Sales Heat Up in May, Inventory Levels Continue to Improve

by Team Member 23. June 2014 17:13

Media Contact: Adam DeSanctis / 202-383-1178 / Email

WASHINGTON (June 23, 2014) – Existing-home sales rose strongly in May and inventory gains continued to help moderate price growth, according to the National Association of Realtors®. All four regions of the country experienced sales gains compared to a month earlier.

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.9 percent to a seasonally adjusted annual rate of 4.89 million in May from an upwardly-revised 4.66 million in April, but remain 5.0 percent below the 5.15 million-unit level in May 2013. The 4.9 percent month-over-month gain in May was the highest monthly rise since August 2011 (5.5 percent).

Lawrence Yun, NAR chief economist, said current sales activity is rebounding after the lackluster first quarter. “Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” he said. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.” 

Total housing inventory2 at the end of May climbed 2.2 percent to 2.28 million existing homes available for sale, which represents a 5.6-month supply at the current sales pace, down slightly from 5.7 months in April. Unsold inventory is 6.0 percent higher than a year ago, when there were 2.15 million existing homes available for sale.

The median existing-home price3 for all housing types in May was $213,400, which is 5.1 percent above May 2013. “Rising inventory bodes well for slower price growth and greater affordability, but the amount of homes for sale is still modestly below a balanced market. Therefore, new home construction is still needed to keep prices and housing supply healthy in the long run,” Yun added.  

Earlier this month, NAR reported new home construction activity is currently insufficient in most of the U.S., and some states could face persistent housing shortages and affordability issues unless housing starts increase to match up with local job creation.

Distressed homes4 – foreclosures and short sales – accounted for 11 percent of May sales, down from 18 percent in May 2013. Eight percent of May sales were foreclosures and three percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in May, while short sales were discounted 11 percent.

The percent share of first-time buyers continued to underperform, representing less than one- third of all buyers at 27 percent in May, down from 29 percent in April; they were 29 percent in April 2013.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dropped to 4.19 percent in May from 4.34 percent in April, and is the lowest since June 2013 (4.07 percent).

NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, said housing fundamentals are showing slight improvement in markets across the country. “Many potential buyers were left on the sidelines beginning last summer as affordability declined amidst rising home prices and interest rates,” he said. “The temporary pause in rising interest rates and more homes for sale is good news – especially for first-time home buyers – who likely have a better chance in upcoming months to make a competitive offer that’s in return accepted by the seller.”

The median time on market for all homes was 47 days in May, down from 48 days in April; it was 41 days on market in May 2013. Short sales were on the market for a median of 125 days in May, while foreclosures typically sold in 57 days and non-distressed homes took 44 days. Forty-one percent of homes sold in May were on the market for less than a month.

All-cash sales comprised 32 percent of transactions in May, unchanged from last month and down from 33 percent in May 2013. Individual investors, who account for many cash sales, purchased 16 percent of homes in May, down from 18 percent in April; they were 18 percent in May 2013. Sixty-eight percent of investors paid cash in May.

Single-family home sales rose 5.7 percent to a seasonally adjusted annual rate of 4.30 million in May from 4.07 million in April, but remain 5.7 percent below the 4.56 million pace a year ago. The median existing single-family home price was $213,600 in May, up 4.9 percent from May 2013.

Existing condominium and co-op sales remained unchanged in May from April (as well as May 2013) at an annual rate of 590,000 units. The median existing condo price was $212,300 in May, which is 6.6 percent higher than a year ago.

Regionally, existing-home sales in the Northeast rose 3.3 percent to an annual rate of 620,000 in May, but are 3.1 percent below a year ago. The median price in the Northeast was $256,700, down 0.9 percent from May 2013.

In the Midwest, existing-home sales jumped 8.7 percent to an annual rate of 1.13 million in May, but are still 7.4 percent below May 2013. The median price in the Midwest was $165,900, up 4.0 percent from a year ago.

Existing-home sales in the South increased 5.7 percent to an annual level of 2.05 million in May, but are down 0.5 percent from May 2013. The median price in the South was $184,800, up 4.4 percent from a year ago.

Existing-home sales in the West rose 0.9 percent to an annual rate of 1.09 million in May, and are 11.4 percent below a year ago. The median price in the West was $297,500, which is 8.4 percent above May 2013.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE:  For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger data sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single- family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).

3The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single- family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

4Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors® Confidence Index, posted at Realtor.org.

Realtor.com®, NAR’s listing site, posts metro area median listing price and inventory data at: www.realtor.com/data-portal/Real-Estate-Statistics.aspx.

The Pending Home Sales Index for May will be released June 30, and existing-home sales for June is scheduled for July 22; release times are 10:00 a.m. EDT.

SOURCE: http://www.realtor.org/news-releases/2014/06/existing-home-sales-heat-up-in-may-inventory-levels-continue-to-improve#sf3402872

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5 Reasons to Hire a Real Estate Professional

by Team Member 10. June 2014 06:51

by The KCM Crew on May 14, 2014

Whether you are buying or selling a home, you need an experienced Real Estate Professional to lead you toward your ultimate goal. In this world of instant gratification and Internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but rather have been strengthened in recent months due torising interest rates & home prices as the market recovers.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

Not only is it important for your home to be priced correctly from the start, to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.

According to the National Association of REALTORS“the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave Ramsey

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

 

SOURCE: http://www.keepingcurrentmatters.com/2014/05/14/5-reasons-to-hire-a-real-estate-professional-3/

4 Things Homebuyers Should Never Say

by Team Member 19. May 2014 13:26

By Chris Birk

You don’t need to be a world-class negotiator to nab a great deal on your dream home.

 

More often, it’s a matter of knowing what not to say. One errant comment or paperwork misstep can compromise your negotiating position. Playing it close to the vest around home sellers and listing agents is critical.

So is flexibility. Homebuyers who conflate wants and needs can cost themselves big time.

Here’s a look at four messages and mindsets buyers should avoid broadcasting.

1. “I’m Not Pre-Approved”

Prospective homebuyers who shop for homes before getting pre-approved can put themselves at a disadvantage from the outset.

Real estate agents and home sellers prefer strong buying candidates who are likely to make good on their purchase offer. Agents and sellers will often want to see a copy of your pre-approval letter alongside your offer. A pre-approval letter signals that a potential buyer has the credit, income and assets necessary to stir confidence in a mortgage lender.

A homebuyer without that confidence is a total wildcard. There are no guarantees when it comes to pre-approval and purchase offers, but the buyer who looks like a better bet will often reap the rewards, especially if there are competing offers.

2. “I’m Pre-Approved for This Exact Amount”

That pre-approval letter is a critical document. But what exactly it details is also incredibly important.

Homebuyers can shop with more certainty when they know how much a lender is willing to extend. But that ceiling isn’t a figure that sellers need to know. In fact, you can squander goodwill and compromise your negotiating position by including a pre-approval letter for more than your offer.

Market and specific property notwithstanding, buyers will often make a first offer below the list price. Put yourself in the seller’s shoes: Imagine getting an offer at or below your $150,000 list price from a buyer who’s been pre-approved for $250,000. You’re practically begging the seller to push back hard.

Instead, submit a pre-approval letter that matches the amount of your offer, or refrain entirely from using a dollar amount. Lenders can tailor these for specific properties and amounts up to your max. There’s little benefit to telling sellers you can pay more than you’re offering.

3. “I Can’t Live Without This Home”

Falling in love is easy when you’re shopping for homes. But fixating on one and only one property is likely to hurt your chances of landing a good deal. It’s not even so much a concern about sellers or their agents catching wind (although that’s certainly a reason to stay silent if you’re touring homes when a seller or listing agent is present).

It’s more that being inflexible is bad for business. Buyers who say they “must” have a certain home can have a tougher time being objective. That can lead to big-time imbalance at the negotiating table.

4. “This Is My Forever Home”

This is a sweet sentiment, and you very well may intend to spend the rest of your life in your new home. But lives, circumstances and finances all change. People get divorced or lose their jobs.

Only about a quarter of homebuyers in 2013 planned to stay in their home for at least 16 years, according to the National Association of Realtors. More than four in 10 said they didn’t know their expected tenure.

Resale should always be a consideration regardless of your best intentions. A day may come when you have to put your forever home back on the market.

 

Keep this in mind with unique properties or homes with uncommon features, which could become hurdles down the road.

SOURCE: http://finance.yahoo.com/news/4-things-homebuyers-never-113047714.html?sf2989138=1


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Buying A Home

Home Sales Struggle, But Improvement Seen

by Team Member 19. May 2014 13:24

DAILY REAL ESTATE NEWS | FRIDAY, MAY 16, 2014

 

Two years into the economic recovery, residential home sales are struggling. But because of demographic and other trends, long-term growth prospects remain good, NAR Chief Economist Lawrence Yun said Thursday at the REALTOR® Party Convention & Trade Expo.

At the Residential Economic Issues & Trends Forum, Yun forecast 4.9 million existing-home sales this year, a roughly 3 percent drop from last year and a signal that the recovery in home sales that started two years ago is flagging.

Weakness in the broader economy is part of the problem. Economic growth turned negative in the first quarter of 2014, by about a percentage point, in part because severe winter weather hampered consumption. The rest of the year should be better, Yun said, but growth will remain tepid: only about 2.1 percent rather than the 3 percent that analysts would like to see.

Home sales were hit by the cold weather, too, although a portion of the stalled activity is expected to return now that the weather is improving.

The more fundamental problem is the continuing tough time households face getting financing and the lack of inventory, which is hurting affordability by keeping prices rising at a time when interest rates are going up as well.

Yun is forecasting a national median home price of $209,000 for this year, up from $197,000, and an average rate of 4.7 percent for a 30-year, fixed-rate loan. The rate remains historically low, but the days of an accommodative Federal Reserve interest-rate policy are ending and the rate could get close to 6 percent next year.

What’s needed is a ramp up in new-home starts to about 1.7 million a year, the historical average, from about 1.1 million now, Yun said. Until there’s more inventory, sales volume will remain low and prices will keep rising.

To get more starts, community banks—the traditional sources of credit for small builders—need to pick up their lending. Although there are lagging signs that lending might be poised to head up, uncertainty over banking regulations enacted after the financial crisis is contributing to the status quo.

For the long term, the picture is much brighter, because there is a lot of pent-up demand from young adults who can’t overcome income and financing hurdles to buy and increasing interest from international buyers who want to purchase in the United States. As the broader economic recovery strengthens, with the creation of more and better-paying jobs, the gap between the country’s growing population and flat-lining home sales will narrow.

For 2015, Yun is forecasting 5.2 million existing-home sales, 710,000 new-home sales, up from 510,000 this year, and a home-sale dollar-volume increase of 11 percent from the year before.

Looking further ahead, as the global population nears the 9 billion mark at the beginning of the next decade, destination cities including New York, San Francisco, Washington, Boston, Chicago, San Diego, Dallas, and Miami, among others, will see ever-increasing home values as global buyers stoke demand.

—Robert Freedman, REALTOR® Magazine

SOURCE: http://realtormag.realtor.org/daily-news/2014/05/16/home-sales-struggle-improvement-seen#sf2963413#sf2964457


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Buying A Home | General | Real Estate Agents | Real Estate Future

KC Among Most Affordable Places to Buy Homes

by Team Member 7. May 2014 10:41

by Reporter- Kansas City Business Journal

Kansas City is the nation's seventh most affordable large metro area for buying a home.

That's according to a new study byNerdWallet, a consumer advocacy site. The study analyzed recent data related to home prices and household incomes to formulate home-price-to-income ratios for the most and least affordable places nationwide.

The study found that:

  • The disparity between most affordable and least affordable metro areas is increasing.
  • Differences in local home prices, not gaps in household income, determine whether an area is affordable.
  • The most affordable metros for homeownership are primarily in the North Central and Mid-Atlantic regions.

Cleveland was rated as the most affordable place to buy a home. It's 2.4 home-price-to-income ratio was based on a median home price of $117,700 and a median household income of $48,952.

Kansas City's seventh-place 2.7 ratio was based on a median home price of $154,800 and a median household income of $58,826.

RELATED: Report: Buying a home vs. renting a 'no-brainer' in KC

Among medium metro areas (those with populations between 300,000 and 1 million), Wichita ranked No. 9. It's 2.4 home-price-to-income ratio was based on a median home price of $122,200 and a median household income of $50,511.

 

Among small metro areas (those with populations of less than 300,000), Topeka ranked No. 6 with a 2.2 ratio, based on a median home price of $109,000 and a median household income of $49,780.

SOURCE: http://www.bizjournals.com/kansascity/news/2014/04/29/most-affordable-places-to-buy-homes.html

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Buying A Home | General

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