Navy Fellas Realty Group

Real Estate, Residential sales and purchase

The Younger Generations Are Interested In Owning A Home

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The Younger Generations Are Interested In Owning A HomeThe real estate market has been red hot this year, with many people looking to purchase a home because of record-low interest rates. This includes younger individuals, as younger generations are interested in owning a house for the first time. The past couple of years have been anything except normal, and the housing market has taken off, with demand far exceeding supply. Why is this taking place?

Record Low-Interest Rates Are Driving People Into the Market

Even though there are many reasons why people are interested in purchasing a home, incredibly low-interest rates are one of the biggest reasons. Many people are interested in taking out a home loan with a 30-year term. Potential homebuyers think that they may never see interest rates this low again. As a result, many are looking to capitalize on this opportunity before it disappears. This is increasing competition for homes on the market, driving up their values.

Interest Is Skyrocketing Among Younger Individuals

Record-low interest rates are appealing to just about everyone, but it is a particularly attractive option for young homebuyers. Many are just beginning their careers and are looking for ways to build wealth. One of the best ways to do so is through homeownership. Many research bureaus have noted that there is a sharp increase in younger individuals looking at houses. 

Many Are Facing An Uphill Battle

Even though there are many young individuals and families looking for houses, there are a number of challenges they will need to overcome. One of the biggest challenges is that there is a historic shortage of inventory. Even though potential homeowners might be able to lock in a low interest rate on a loan, they might not find a house they can purchase. It is difficult for young home buyers to compete against older individuals and families who can make a cash offer. If a bidding war takes place, younger homeowners rarely have the cash to come out on top. 

Asking For Help Is Key

Even though today’s mortgage rates are attractive, it is critical not to overpay for a house. Asking for help from a professional can help potential homeowners make the right decision. 

 

Win When You Sell And Move

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Win When You Sell And MoveHome sellers often feel like there may only be a small window of opportunity to sell their home. Winter is typically regarded as a “waiting period,” until buyers start being active again. But winter may be a great time to sell and move.

Your House Will Probably Have Less Competition

More and more sellers are realizing that winter can be a favorable time to put a house on the market. Still, when you decide to sell during the winter months, you’ll have much less competition due to lower inventory. In turn, this will make your house stand out and capture more attention from interested buyers.

Multiple Offers Are Likely

For the same reason that your home will have less competition, it’s likely that you’ll receive multiple offers when you list your house in the winter. You could even have a situation where there’s competitive bidding on your house! This is due to low inventory, as well as buyers’ eagerness to get settled into their new home before the first daffodils have broken ground in the spring.

Houses Sell Faster In Winter

Statistics show that houses are on the market for shorter periods of time in winter than in other seasons. The average tends to be just a little over two weeks. Again, this is likely due to buyers wanting to hurry and move into their new home so they can be ready for the first beautiful spring days.

Now Is A Great Time To Sell

Home values are at record highs right now. At the same time, mortgage rates are still at historically low rates. Therefore, this perfect storm of opportunity is ideal for both sellers and buyers. You can likely get a great sale price on your home, and your buyers will be getting terrific low rates on borrowed money to buy. It’s a win-win situation that you should take advantage of!

Don’t wait any longer to list your home for sale. If you’ve been planning to move, now’s the time to win when you sell and move. To make the transaction easy, contact a licensed real estate agent in your area to get started.

The Top Signs Of Readiness To Own A Home

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The Top Signs Of Readiness To Own A HomeOne of the top ways to build wealth is to own a home; however, it can be challenging to qualify for a home loan. Not everyone has the finances to maintain a house, and some people might not be ready to settle down for a prolonged amount of time. Therefore, everyone has to think carefully before deciding homeownership is the right move. What are the top signs that someone is ready to be a homeowner? 

There Is Enough Money for a Down Payment

One of the top signs that someone is ready to be a homeowner is that they have enough money for a down payment. Even though it might be possible for someone to qualify for a first-time home loan with only 3.5 percent down, this might not be the best financial move. Putting more money down could secure a lower interest rate, helping someone save thousands of dollars over the life of the loan.

The Credit Score Is High Enough

For someone to afford a home, they need to have a solid credit score. A credit score is a reflection of someone’s financial character. Most lenders have a minimum credit score someone has to achieve before they can qualify for a home loan. There are many credit monitoring systems that will provide a free credit report, so potential homeowners should frequently check the report and make sure there are no inaccuracies. Then, when the credit score is high enough, it might be time to apply for a home loan. 

Geographic Stability

Finally, potential homeowners should make sure they are going to stay in one place for the foreseeable future. There is not a lot of stability when renting. A landlord could decide to terminate the lease, or they could decide to sell the property entirely. This is not an issue with homeownership. If someone is not planning on moving in the near future, they should consider buying a house. 

Consider The Prospect Of Homeownership

These are a few of the top signs someone is ready to own a home. Anyone who is tired of throwing money away on rent should consider purchasing a home instead. This is one of the top ways to build wealth and save for retirement.

 

How Can Parents Help Their Children Buy A Home?

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How Can Parents Help Their Children Buy A Home?One of the most common dreams is homeownership; however, the cost of buying a house is rising quickly, and many children cannot afford to buy a house even after they finish school. They might be encumbered with student loans, and they could have a difficult time finding a job. Fortunately, there are ways parents can help their adult children buy a home.

Help Children Build A Healthy Credit History As Early As Possible

One of the biggest factors involved in an application for a home loan is the credit score. One reason why children have a difficult time qualifying for a home loan is that their credit scores are not high enough. They simply do not have a lengthy credit history. Parents should help their children build credit as early as possible. One way to do that is to help them take out a credit card and co-sign for it, giving children a lengthy credit history of on-time payments when they apply for a home loan.

Let Children Live At Home Temporarily

Another obstacle that gets in the way of homeownership is the size of the down payment. For children to qualify for a home loan with a favorable interest rate, they need to have a sizable down payment. It can take a long time for children to save 20 percent for a down payment, so parents should consider letting children live at home temporarily, rent-free, so they can save money for a down payment.

Offer To Be A Co-Signer

Finally, parents can also make it easier for children to buy a home by co-signing for the loan. While some parents might be reluctant to do so, this could be the best way to help children qualify for a mortgage. If parents are confident that their children can afford the mortgage, they should consider becoming a co-signer to give the lender a greater degree of confidence.

Make It Easier For Adult Children To Buy A Home

These are a few of the best ways parents can make it easier for their children to purchase a new home. Even though homeownership can be a challenge, it doesn’t have to be a fantasy. Parents should start planning for their children as early as possible to make it easier for them to qualify for a home loan.

Owning A Home With Boat And RV Parking: The Benefits

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Owning A Home With Boat And RV Parking: The BenefitsEveryone is looking for something slightly different in a home. Even though the location is still the most important factor, some people have specific criteria they require. For example, those who love the water might be looking for a house with parking for boats and RVs.

What are a few benefits of purchasing a house with room for these extra vehicles? 

Reduced Storage Expenses

The first benefit of owning a home with a boat for RV parking is reduced storage expenses. Owning a boat means you have to take care of it, and some people have to pay for space at the dock or the marina. If a house already has parking for a boat, owners do not have to worry about paying extra dock or parking fees. All they have to do is park the boat at their house. 

Added Security

It is also far safer to park a boat at the house instead of off-site somewhere else. Unfortunately, boats at docks and marinas can get vandalized. Homeowners can tailor their house’s boat parking to meet their needs. For example, they may want to put an extra lock, added security cameras, and a cover on the boat while it is parked. It is also easier to protect the boat against the elements if it is parked at the house. 

More Convenient

Of course, it is also far more convenient to park the boat or RV at the house. If the boat or RV is stored off-site, it will take a while to drive to that location, get the RV or boat ready to go, and then head to the final destination. It is always easier to simply walk outside and get the vehicle ready to go instead of having to add an extra trip. 

Consider A Home With RV And Boat Parking

These are just a few of the many benefits of purchasing a house that comes with boat and RV parking. Even though this might not be for everyone, those who are looking for a bit of adventure in their lives may want to consider a house that already has parking built-in. It can save a lot of time and money during the next trip.

Tips For Buying A Home In Another State

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Tips For Buying A Home In Another StateThere are many reasons why people need to move. Some people might be moving to be closer to a school. Other people might be moving to live closer to family members. Some people might have gotten a job in another state. Purchasing a home in another state can be a challenge, but technology has made it easier. Even though a lot of people still prefer to see a potential home in person, it is possible to take a virtual tour of a house. As a result, some people purchase homes they have never seen in person. On the other hand, there are many challenges that come with purchasing a house in another state. What can potential homeowners do to make the process easier?

Choose The Right Real Estate Agent

One of the first tips potential homeowners need to keep in mind is that they need to choose the right real estate agent. Even though it is always important to work with a real estate agent, it is even more important when purchasing a home in a new area. Potential homeowners are unfamiliar with the area, and they need to learn more about the community. A real estate agent can talk to homeowners about local schools, shopping and dining opportunities, potential development, and property values. The right real estate agent should take the time to understand the needs of his or her clients and generate a list of potential properties based on those preferences. 

Ask Questions About The Area

Next, homeowners should not be afraid to ask questions about the area. There is no such thing as a dumb question, and homeowners need to collect all the necessary information to make an educated decision. How much earnest money is required? What is it like to get an inspection? How long does it take to close? Don’t hesitate to ask a few questions about the region. 

Request A Remote Closing 

Speaking of closing, homeowners can request a remote closing. That way, they don’t have to worry about altering their schedules to be physically present at the closing table. The real estate agent can be the representative of the buyer at closing. This can make the process easier, saving money on travel expenses along the way. 

 

How To Sell A Home Around The Holidays

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How To Sell A Home Around The HolidaysIt is true that the summer months are a hot time for the real estate market. Many families with children prefer to move during the summer because they do not have to pull their kids out of school. On the other hand, it is possible to sell a home during the holidays. There are fewer homes on the market, so this could drive up prices. What are a few tips homeowners should follow for selling their houses around the holidays?

Remove The Clutter

When the temperature cools off, people spend more time inside. Therefore, it is easy for houses to get cluttered. When this is combined with the rest of the holidays, it is easy for messes to build up. People looking to sell their houses during the holidays need to avoid clutter at all costs. Potential buyers want to imagine what their life is like in the house. If there is a mess everywhere, it will be difficult for buyer imaginations to run wild. 

Maximize The Curb Appeal

There is never a second chance to make a first impression, and the first impression comes from curb appeal. Even though there might be a lot of leaves on the ground, homeowners need to act quickly to remove them. Furthermore, bare trees can expose damaged parts of the house. It might be a good idea to throw a fresh coat of paint on the outside. 

Price To Sell

There is a delicate balance between pricing a house too high and pricing a house too low. Nobody wants to leave money on the table, but it is important not to scare away buyers. Homeowners who can afford to wait may want to price the house higher; however, if someone is starting a new job at the beginning of the year, the house might need to be priced lower to sell quickly. 

Select The Right Agent

Selling a home during the holidays can be a challenge, but the right real estate agent can make all the difference. It is critical to work with an agent who has experience selling a home during the holidays. That way, they can find comparable homes in the area, set the price right, and get as many showings as possible to get offers on the table. 

 

When Inventory Is Low, Sellers Win

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When Inventory Is Low, Sellers WinThe real estate market has gone through a number of changes during the past few months. When inventory is low, sellers win. They have the ability to pick a buyer, they can make more money, and they can sell a house faster. What are some of the biggest reasons why sellers win when inventory is low? 

The Asking Price Goes Up

One of the biggest reasons why sellers win when inventory is low is that the asking price goes up. When there are more buyers than there are sellers, a seller may have multiple offers on the table. Then, the seller can leverage those offers against each other, driving up the price of the house. This could allow sellers to get thousands of dollars over the asking price for their homes. 

Sellers Maximize The Return

When sellers drive up the asking price of a house, this also increases the equity they have in their homes. When sellers have a mortgage, the monthly payment does not change much over the life of that mortgage; however, when the value of the house rises, this means sellers have more equity in their homes. They can do a lot with this equity. They can sell the house, pocket the extra equity, and either put it toward a new house or deposit it into their retirement account. 

The Seller Can Dictate The Terms

Finally, when inventory is low, sellers have the ability to dictate the terms. For example, a seller might be selling a house that has a wide variety of repairs. When inventory is low, sellers do not necessarily have to do these repairs. They know there are so many people looking for houses that someone will be willing to purchase the house without asking for repairs to be made. Sellers might even ask for cash offers only. This allows the seller to avoid certain closing expenses and walk away with more cash. 

Sellers Win When Inventory Is Low

The real estate market fluctuates over time; however, when inventory is low, sellers win. Because there is less competition on the market, sellers can get multiple offers on the table. This allows them to drive the negotiation, getting as much money as possible for their house. 

 

Renters Missed Out On Tens Of Thousands Of Dollars This Past Year

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Renters Missed Out On Tens Of Thousands Of Dollars This Past YearRent has gone up significantly during the past year. Even though it is not unusual for rent to go up over time, the average rent across the country has increased significantly during the past year. This means that the average rent will probably be even higher next year than it is this year. Even though this is one of the biggest deterrents against renting, there are other reasons to get out of the rental market as well. 

Renters Stand To Lose More Money This Year

One of the biggest reasons why renters are losing so much money is that the average value of a house has gone up significantly. During the past year, the average value of a home in the United States increased by more than $50,000. This means that the average homeowner gained this amount of money in equity. Renters do not get the same benefit. Because renters are not investing any money in property, they are not seeing any return on the money they throw away in rent. This means that renters lost tens of thousands of dollars by renting this past year instead of owning. 

Renting Can Be Very Expensive

A lot of people do not want to purchase a house because they are scared of maintenance expenses, property taxes, and the size of the down payment. On the other hand, renting is like throwing money down the drain. The money is going directly into the pocket of the property owner, and the renter is not seeing any sort of return on that investment. Furthermore, even though the price of renting can go up over time, many people who take out a mortgage lock in the rate for 30 years. This means the monthly payment will be the same at the end of the loan as it is at the beginning of the loan. If someone has a steady job, their income is likely to go up during the course of the mortgage, meaning that they have more financial flexibility in the future. Renters need to think carefully about what they can do to get out of the rental market and purchase property before rent increases in the future. 

 

Buying A Second Home As A First Home: What To Know

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Buying A Second Home As A First Home: What To KnowMany first-time homebuyers are having a difficult time finding the right purchase. Therefore, a new trend is catching on. Some people are renting in the city, where property values are more expensive. Then, they buy a vacation home in the suburbs. Is it smart to buy a second home as a first home? 

The Advantages Of Buying A Vacation Home First

There are several advantages that come with buying a vacation home as a first home. First, buying a vacation home in the suburbs is usually less expensive than purchasing a house in the city. Furthermore, first-time homeowners can rent out their vacation homes the majority of the time, helping them cover monthly mortgage payments. Then, as the value of the vacation home rises, first-time homeowners build equity they can use to purchase a more expensive home in the city later. This can also help people save money on the cost of a vacation. 

Interest Rates On Vacation Homes Might Be Higher

At the same time, interest rates on vacation homes might be higher. Homeowners interested in getting the best interest rates need to live in the home they are buying. If they are not living in that specific home, lenders may charge a higher interest rate. Furthermore, first-time homeowners might have to put more money down to qualify for that loan. 

Managing A Vacation Home

First-time homeowners also have to think about how they will bring in rental income. It might be helpful to work with a property management company that can handle this from start to finish. Or, services such as VRBO or Airbnb might be helpful. Homeowners need to have a plan for how to maximize rental income. The more the home is rented out, the easier it will be to afford the mortgage payments.

Have An Emergency Fund Set Aside

First-time homeowners still need to have an emergency fund set aside for the vacation home. What happens if the roof needs a repair? What happens if the HVAC system has to be replaced? Homeowners need to think carefully about how they can cover these expenses. Not all of them are covered by home insurance, and some of them can cost thousands of dollars.