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Curious About Homeowners’ Association (HOA) Fees? Here’s What You Need to Know

January 25, 2018 by James Scott

Curious About Homeowners' Association (HOA) Fees? Here's What You Need to KnowIf you are thinking of buying a condominium or a home that is part of a planned community, you have likely come across the term “homeowners’ association” or HOA. In short, the HOA is a coalition of local homeowners who have banded together to manage the needs of the local community. Let’s explore the concept of the homeowners’ association, why they charge fees and what you can expect from your HOA if you buy a home that is part of one.

HOA Fees Are Meant To Make Things Easier

HOA fees are meant to make your life easier. Common sense dictates that all homeowners won’t be able to commit to investing some of their time in community upkeep. So the HOA charges a monthly fee to everyone to cover the costs of keeping everything in order. Of course, some HOAs can make mistakes or foolish investments that don’t benefit all equally. But most are well-intended and do positive work.

What Do HOA Fees Cover?

Your HOA fees will be used to pay for needs that benefit all homeowners’ in the community. If you live in a building, this will be everything from elevator maintenance to keeping the doors in good order. If you live in a townhouse complex or planned community, this includes landscaping, gardening, road maintenance and more. As long as your HOA leaders are doing their job, they will use fees to maintain and improve the community for everyone.

Some Pros And Cons Of HOA Fees

The main benefit of paying HOA fees is that you are offloading your share of the responsibility for building or community upkeep. In essence, you are trading a monthly payment so that you don’t have to vacuum the common areas, change the light bulbs or worry about repairing the gate when it breaks. The main downside to paying HOA fees is that you only have a single vote as to how they are spent and you may disagree with other homeowners about the HOA’s priorities.

All things considered, whether or not you have a favorable view of your HOA generally comes down to you. If you are the type that likes to share their opinion and is willing to commit the time to improve your local community, you may want to join your HOA. However, if you are less interested in having someone spend your money, you might disagree with their approach. Whatever the case, when you are ready to buy or sell your next home, contact our professional real estate team. We’re happy to help you find the right home – HOA or not.

Filed Under: Home Buyer Tips Tagged With: Buying A Home, Home Buyer Tips, Real Estate Tips

NAHB: Home Builder Confidence Drops in January

January 24, 2018 by James Scott

Homebuilder confidence in housing market conditions dipped two points in January; ongoing challenges including labor shortages and materials costs were cited by the National Association of Home Builders, which provides monthly readings on home builder sentiment. Three component readings of the Housing Market Index declined by one point each. Readings for current sales conditions, housing market conditions for the next six months and for buyer traffic within new single-family housing developments were 79, 78 and 54 respectively.

Readings over 50 indicate positive builder sentiment. The reading for buyer traffic seldom exceeds 50. Current readings support continued builder confidence in current and future housing market conditions. NAHB Chief Economist Robert Dietz said housing demand should continue to grow in 2018 based on the gauge of future market conditions remaining in the 70s range. Real estate pros have repeatedly cited slim inventories of homes for sale as driving rapidly rising home prices.

NAHB estimated 1.125 million housing starts for 2018, which was 2.70 percent higher than for2017. The Commerce Department released its annual rate of housing starts in December at 1.192 million starts; Building permits were issued at the annual rate of 1.302 million permits issued in December, based on November’s annualized reading of 1.303 million permits issued.

Regional Builder Confidence Readings Rise

Regional readings for builder confidence were higher in all four regions tracked by NAHB. Calculated on a three-month rolling average, the Northeast gained five points for an index reading of 59; The Midwest posted a one-point gain for a January reading of 70. The South posted a one-point gain for an index reading of 73 and the West reported a two-point gain for a reading of 81.

Analysts said throughout 2017 that building more homes would be the only way to solve the housing shortage and resulting challenges including rapidly rising home prices that eliminate first-time and moderate-income home buyers out of affordable home prices and home financing options.  

Filed Under: Housing Market Tagged With: Housing Market

Selling Your Home to Millennials? 3 Tips That Will Help You Get the Sale Closed

January 23, 2018 by James Scott

Selling Your Home to Millennials? 3 Tips That Will Help You Get the Sale ClosedAre you thinking of selling your home this year? If so, you are almost certainly going to interact with millennial homebuyers. This generation numbers around 80 million and are the fastest-growing consumer demographic in the country. As their earning power continues to increase, millennials are now turning their attention to real estate. In today’s post, we’ll share three tips that you can use to help make your listing more attractive to younger millennial homebuyers.

Minimalize As Much As Possible

Is your home full of trinkets and other clutter? If so, it might be best to box all of that up and store it during the home selling process. This generation tends to lean more towards a minimalist lifestyle and a ‘quality over quantity’ mentality. They are also highly social, which means that open space for mingling is more important than having large, clunky pieces of furniture all over the place. If you have large living areas, try to stage them with more of an open concept in mind.

Embrace Technology And Make Upgrades

As you might imagine, millennials are very tech-savvy and gravitate towards homes that already have their technology interests in mind. Of course, you do not need to run out and invest in a massive solar panel setup for your roof – although solar is certainly popular. Smaller, more thoughtful investments like strong WiFi signals, Internet-connected thermostats and video-based home security options are all useful tech upgrades.

Highlight The Local Community And Amenities

Finally, you will want to highlight your local community as much as possible. Everything from the local elementary and middle schools to walking trails to community centers and shopping is important to the millennial crowd. Many of this generation prefer walking and cycling over driving and aren’t interested in long, horrific commutes to work each morning. If you have a nice coffee shop or bakery that you like to frequent, try to have some of their products on hand at your open house as well.

Following the selection of tips above is sure to make your home more attractive to millennial homebuyers. To learn more about how to sell to younger buyers, or to list your home for sale, contact us today. Our professional real estate team is happy to meet with you and share how we can get your home sold quickly.

Filed Under: Home Seller Tips Tagged With: Home Seller Tips, Real Estate Tips, Selling A Home

What’s Ahead For Mortgage Rates This Week – January 22, 2018

January 22, 2018 by James Scott

Last week’s economic news included readings on home builder confidence, housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released; the week wrapped with the University of Michigan’s report on consumer sentiment.

Home Builder Confidence Dips, Remains in Positive Territory

According to the National Association of Home Builders, builder confidence dropped two points in January to 72, but high demand for homes continued to provide builders with positive outlooks on housing market conditions. While continued concerns over labor and lot shortages were cited, home builders surveyed for January’s Housing Market Index said that High demand for homes and recent tax legislation kept more builders confident than those who were not. Any reading over 50 indicates positive builder sentiment.

Housing Starts, Building Permits Fall in December

Housing starts fell 8.20 percent in December according to the Commerce Department. 1.192 million starts were forecast on a seasonally- adjusted annual basis; analysts expected a reading of 1.280 million starts based on November’s reading of 1.299 million starts. 1.302 million building permits were issued in December on a seasonally-adjusted annual basis. November’s reading was higher at 1.303 million building permits issued.

Mortgage Rates Rise, New Jobless Claims

Freddie Mac reported higher mortgage rates for the second week in a row. The average rate for a 30-year fixed rate mortgage rose five basis points to 4.04 percent; the average rate for a 15-year fixed rate mortgage rose five basis points to 3.49 percent and the average rate for a 5/1 adjustable rate mortgage was unchanged at 3.46 percent. Discount points averaged 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for 15-year fixed rate mortgages. Discount points averaged 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims were lower with 220,000 new claims filed as compared to estimates of 250,000 new claims. 261,000 new claims were filed the prior week. Consumer sentiment was lower in January with an index reading of 94.40. Analysts expected the consumer sentiment index to reach 98.00, based on December’s reading of 95.90 percent, but uncertainty over tax benefits connected with recent legislation and rising interest rates contributed to the lowest consumer sentiment index reading since July.

What‘s Ahead

This week’s scheduled economic reports include readings on new and existing home sales along with weekly readings on mortgage rates and first-time jobless claims.

Filed Under: Mortgage Rates Tagged With: Mortgage Rates

How Much Is the Right Amount to Commit to Your Down Payment? Let’s Take a Look

January 19, 2018 by James Scott

How Much Is the Right Amount to Commit to Your Down Payment? Let's Take a LookAre you thinking about buying a new home? If you are going to take out mortgage financing, one consideration you will have is your down payment, which is the amount you pay up front in cash to cover some of the purchase cost. Let’s consider a few points that will help you to decide how much is the right amount for your down payment.

How Much Do You Have?

The most obvious question you will need to answer is: how much do I realistically have to place as a down payment? Keep in mind that your down payment is money that you aren’t going to see again until you sell your home. While you want to invest a significant amount for reasons we will share below, you still need to maintain a cash cushion of a year’s salary or so in case you fall ill or lose your job.

More Down, Less Monthly

The main case for putting as much as you can into your down payment is that the more you invest, the less you have to borrow. This means that over time, you will pay less interest and you will also have lower monthly payments. Keep in mind that with today’s low interest rates it’s a bit less of a burden to carry a large mortgage. However, these rates may swing upwards over the years, which will increase your costs.

The Need For Private Mortgage Insurance

If you’re going to put less than 20 percent down on your home, you’re almost certainly going to be required to purchase mortgage insurance. There are numerous options available to you, including those offered by the Federal Housing Administration or FHA. Your mortgage lender will share this and other private insurance policies that will protect you.

Don’t Forget About Lost Opportunity Cost

Finally, don’t forget to factor in the lost opportunity cost that comes with investing a large down payment. Unless you have a terrible money manager, your mortgage interest rate is likely to be less than you would be able to make investing the difference in your financial portfolio. If you’re thinking about putting an extra $50,000 in your down payment, consider that you might be able to make 5 to 10 percent on that over the next decade. There are no guarantees in investing, so speak with a professional for further guidance.

If you are ready to start shopping for your dream home, contact your trusted real estate professional today. 

Filed Under: Home Mortgage Tips Tagged With: Down Payments, Home Mortgage Tips, Mortgage

On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage

January 18, 2018 by James Scott

On Time, Every Time: How Being Late on Monthly Payments Can Affect Your MortgageAre you the type of person that struggles with remembering to pay their bills on time? You’re not alone. People across the country regularly submit late monthly payments, inflicting terrible damage to their credit. Let’s take a quick look at how paying your loan or other monthly payments late can have a negative impact on your mortgage.

Your Credit Score Is At Risk

As you already know, almost all banks, credit cards, mortgage companies and other lenders rely on your credit score to help assess the risk of lending money to you. Paying any of your payments late – even something as small as your mobile phone bill or a department store credit card – can result in negative marks showing up on your credit report. If you are late enough times or fail to repay the late payment in full, then your score will start to drop.

Refinancing Can Be Affected

If you already have a mortgage, then a lower credit score can be a problem when you try to refinance. The process of refinancing involves taking out a new mortgage, in which your lender will reassess your risk using your credit score as one of the indicators. If you have been making late payments, you might end up having to settle for a higher interest rate or you may even be declined for the new mortgage.

Making A Late Payment? Contact Your Lender

If you are caught in a bind and have to make a late payment, it is best to call your lender as soon as possible. First, there may be a grace period in which you can be a few days late without any penalty. If that little bit of breathing room is all you need to get caught up, you’re set. If not, you can let them know your circumstances and discuss what options you have.

It is essential to pay your monthly payments on time, even if it means making some small sacrifices in other areas. The better your credit score looks, the more opportunities you will have to make positive financial moves in the future. Ready to start looking for your next home? Contact your local real estate professionals today.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Real Estate Tips

Buying a New Home in a Hot Real Estate Market? Here Are 4 Tips You Will Need to Be Successful

January 17, 2018 by James Scott

Buying a New Home in a Hot Real Estate Market? Here Are 4 Tips You Will Need to Be SuccessfulAre you in the market for a new house? In a buyer’s market, finding and closing on a beautiful home can seem very easy. However, if you are shopping when the market is hot, you may end up fighting bidding wars and losing your dream home to a competing buyer. Let’s take a look at four tips that you will need to be successful when house hunting in a hot local real estate market.

Tip #1: Do Your Research Ahead Of Time

It should go without saying that in a hot market you will need to move quickly. Making an effort to do all your research ahead of time will ensure that you do not have to later, once you’ve found the perfect dream home. Check in with your real estate agent to find out what paperwork and other material will be needed.

Tip #2: Get A Mortgage Pre-approval

Once you have found your dream home, you may discover that other buyers are interested or have submitted bids. In this case, it is crucial that you can demonstrate that you have your mortgage financing pre-approved. Remember that the seller wants to close their sale quickly and for the best price. Showing up with pre-approved mortgage financing proves that you are serious about buying their home.

Tip #3: Be Ready To Pounce (But Don’t Be Hasty!)

Speaking of being serious, it is essential that you are ready to pounce on the right listing. A hot market means that you won’t be the only potential buyer checking out a home. The last thing you want to do is find the right house, then end up losing the chance to buy it because of unnecessary delays.

Tip #4: Small Sacrifices Are Okay

The final tip to keep in mind is that sometimes you will have to make a small sacrifice to close the deal. For example, the seller may want some special terms added to the agreement. Alternatively, they might ask you to pick up some of the closing costs. Whatever the case, keep in mind that a hot market means that you lose a bit of leverage. If it’s a small sacrifice, it might be worth it.

Buying a house in a hot real estate market can be challenging, but a little preparation will go a long way in ensuring you are the winning bidder. When you are ready to buy your next home, get in touch with your local real estate professionals.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Real Estate Tips

What’s Ahead For Mortgage Rates This Week – January 16, 2018

January 16, 2018 by James Scott

Last week’s economic releases on inflation, core inflation, and retail sales. Weekly readings on mortgage rates and new jobless claims were also released.

Inflation and Retail Sales Ease in December

Consumer prices fell from November’s reading of 0.40 percent growth to o.10 percent growth in December, which matched expectations. The Core Consumer Price Index, which excludes volatile food and energy prices, dropped to 0.30 percent from November’s growth rate of 0.40 percent. Analysts expected a Core CPI reading of 0.20 percent for December.

Retail sales were lower in December as compared to November’s reading of 0.90 percent growth month-to-month; December’s retail sales grew by 0.40 percent. Core retail sales, which excludes automotive sales grew by 0.40 percent in December as compared to November’s growth rate of 0.90 percent. Analysts expected retail sales to increase by 0.50 percent. Retail sales excluding automotive sales also grew by 0.40 percent as compared to an expected reading of 0.30 percent and November’s growth rate of 1.30 percent.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week with rates for a 30-year fixed rate mortgage averaging four basis points higher at 3.99 percent. Mortgage rates for a 15-year fixed rate mortgage were six basis points higher at an average of 3.44 percent. The average rate for a 5/1 adjustable rate mortgage was one basis point higher at an average of 3.46 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose to 268,000 filings as compared to 248.000 new claims expected and 258,000 new jobless claims filed the prior week. Last week’s new jobless claims.

What‘s Ahead

This week’s economic releases include readings from the National Association of Home Builders, Commerce Department reports on housing starts and building permits issued and a report on consumer sentiment from the University of Michigan.

Filed Under: Mortgage Rates Tagged With: Mortgage Rates

Looking to Buy a Home in 2018 and Don’t Know Where to Start? Here’s a Few Tips

January 12, 2018 by James Scott

Looking to Buy a Home in 2018 and Don't Know Where to Start? Here's a Few TipsAre you a renter that has become tired of paying someone else’s mortgage and not building any equity? Or a homeowner who has a growing family and is in need of more space? Whatever the case, if you are in the market for a new home there is no time like the present. Let’s explore a few tips that will help you to prepare for the home buying experience.

Tip #1: Prepare For A Busy Spring Season

First, it should be pretty obvious that you aren’t the only house hunter on the market. Other local individuals and families alike will be searching for a new house to call their own. As you may know, the spring is generally when the local real estate market starts to heat up. So, if you are looking to buy, you may want to address your needs earlier in the spring rather than later. The sooner you can get the paperwork signed, the less of a chance you end up in a bidding war.

Tip #2: Mortgage Rates May Be Trending Up

While this is in no way a prediction, there have been some indications that mortgage interest rates may be trending higher in 2018. If this does end up being the case, the cost of buying a home is going to be a little bit more. So if you can move quickly and get your mortgage pre-approved now, you may find that you end up with a better deal than those families who wait until the summer to make a move.

Tip #3: Prepare Your Finances And Credit In Advance

Finally, it’s a great best practice to ensure that your personal finances are prepared in advance. Your real estate agent will be able to assist you with which documentation you will need to have ready. You should also check in with one of the major credit reporting agencies. They will be able to advise you as to whether you have any issues with your credit rating or FICO score.

Buying a home is always an exciting experience – one which can be relatively stress-free if you are prepared. When you are ready to discuss buying your dream home or to view available listings in the local area, give our offices a call. We are here to help you find the perfect house, condo or apartment to suit your needs.

Filed Under: Home Buyer Tips Tagged With: Buying A Home, Home Buyer Tips, Real Estate Tips

Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval Amount

January 11, 2018 by James Scott

Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval AmountAre you planning to make an offer on a new home in a hot housing market? If so, one possibility is that you are going to end up bidding against other buyers who are looking to buy the same home. Unfortunately, in some cases bidding wars are inevitable, and they can be a significant source of stress. Let’s take a look at three ways that you can win a bidding war without having to spend more than you can afford.

Price Is Important, But It’s Not Everything

The first consideration to keep in mind is that price is important, but it isn’t the sole consideration that sellers make when deciding which offer to choose. In fact, for many home sellers, the price is secondary to a variety of other factors.

For example, consider whether or not the sellers need to close quickly. Perhaps they are moving to a new city, or have already bought a new house and are looking to get out of their old one. If you have your mortgage financing pre-approved and your paperwork in order, you can promise a shorter close than other buyers may be able to provide.

Have A Face-To-Face Conversation With The Listing Agent

It’s worth investing the time in a sit-down chat with the seller’s real estate agent to find out what their motivations are. Are they selling for the money, are they moving, are they under pressure or just getting rid of the house to make an upgrade? All are factors that you can use to your advantage in a bidding war.

Another great tip: be sure to find out where the sellers plan to live once they sell their home. If they want to stay in the house, you may be able to buy it and lease it back to them. That’s a difficult offer to refuse.

Be Flexible, But Be Firm

Finally, keep in mind that you will need to be flexible to win a bidding war, but you should remain firm. Don’t bend your offer or terms too much. If you table a great offer and still lose the bidding war, that’s life. You can move on and find another great home to live in.

If you are in a hot real estate market, it’s a good idea to mentally prepare for a bidding war when you submit an offer on a new home. For more insight, contact us today.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Mortgage Applications

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