Category Archives: buyers in sacramento

Thinking of Buying? Selling? 5 Reasons You Need To Hire A Professional

Thinking of Buying? Selling? 5 Reasons You Need To Hire A Professsional | Keeping Current Matters

Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to 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 have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover.

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?

It is 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. You 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 $210,000 compared to $245,000 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 in order 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?

Dave Ramsey, the financial guru advises:

“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.”

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.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

Are You Wondering What It Takes To Buy Your First Home?

Are You Wondering What It Takes To Buy Your First Home? | Keeping Current Matters

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still others might think their current income would never enable them to qualify for a mortgage.

We want to share what the typical first time homebuyer actually looks like based on theNational Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first time buyer:

First-Time Homebuyer Statistics | Keeping Current Matters

Bottom Line

You may not be much different than many people who have already purchased their first home. Meet with a local real estate professional today who can help determine if your dream home is within your grasp.

Rents Still Skyrocketing

Rents Still Skyrocketing | Keeping Current Matters

Zillow recently revealed that the 43 million renter households in the US spent $535 billion on rent in 2015. Aggregate numbers like these often make it difficult to truly assess a situation. For more clarity, we want to share some points that were made in aWall Street Journal article earlier this month.

The article made two important points:

1. Rents are increasing faster than the last several years:

 “Apartment rents increased faster last year than at any time since 2007.”

2. Rent increases are accelerating

“Another report from Axiometrics Inc., a Dallas-based apartment research company, showed that rents increased 4.7% in the fourth quarter compared with the same quarter a year earlier, the strongest year-end performance since 2005”.

Here is a graph to illustrate the rate of increase over the last several years:

Average Effective Rent in the US | Keeping Current Matters

Why Do Americans Consider Moving? [INFOGRAPHIC]

Why Do Americans Consider Moving? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • In a recent Harris Poll, Americans listed “change in climate/weather” as their top reason for wanting to relocate.
  • 41% would move for a better job opportunity.
  • Being closer to loved ones filled out 3 of the top 6 reasons why American’s move.

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

Thinking of Buying a Home? 3 Questions Every Buyer Should Answer First | Keeping Current Matters

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

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

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

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

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

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

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

2. Where are home values headed?

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

What does that mean to you?

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

3. Where are mortgage interest rates headed?

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

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

Mortgage Rate Projections | Keeping Current Matters

Bottom Line

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

5 Simple Ways to Cut Down Your Grocery Bill Without Coupons

Most of us have a love-hate relationship with the grocery store. Some coupon-savvy families squeak by on less than $300 a month, while others jam-pack their carts to the tune of $300 a week.

So who’s right?

It depends. We recommend spending 5–15% of your take-home pay on food, which includes groceries and meals out. But even if your food budget falls within that healthy range, maybe you’d still like to see it come down a few notches. Check out these five easy ways to change your grocery shopping habits for the better—without clipping coupons.

1. Redefine Dinner

If the word dinner conjures up a big homemade meal with a nice cut of meat, two steaming sides, a crusty French loaf and a chocolaty finish, cut yourself some slack! This isn’t the 1950s and weeknight suppers don’t have to be a big production.

Your kids and spouse will survive on BLTs, omelets or a nice salad several times a week. So don’t be afraid to plan simple, one-item-only meals. Reduce your guilt andyour budget by redefining the most expensive meal of the day.

2. Buy the Store Brands Already!

You know generic pasta is cheaper, but you’re still not convinced it won’t ruin your great-grandmother’s lasagna recipe. In a 2009 Consumer Reports study, 29 brand-name foods went up against their generic counterparts. Of the 29 pairings, 19 scored “equally good” in the blind taste test. In other words, your less-expensive lasagna will taste just as delicious.

Still not sold? According to a 2014 academic study, when chefs bought staples like salt, sugar and baking soda, they were much more likely to buy the generic than were non-chefs. And they’re the food experts! The study concluded that if more of us purchased store brands, we could save roughly $44 billion collectively. It pays to be brand un-loyal.

3. Change Up Your Grocery Stores

What made you pick your current grocery store? Is it the friendliest? How about the most convenient? Maybe you just know where everything is? Don’t let a comfortable routine cost you money.You may even find that two grocery stores are your best bet—one for meats and bulk items and another for everything else.

If you’re still not sure which grocery stores are worth checking into, ask around. People love talking about getting a good deal, and the ones who are getting the best deals will gladly gush about their favorite spots. Figuring out a new grocery store may be frustrating at first, but it’s worth learning a new layout to keep that extra $20 in your wallet.

4. Make a Detailed List

A list is simply a plan. You must plan out what you’ll make for breakfasts, lunches and dinners for the next week and then write out each ingredient you’ll need for those meals (plus a few snacks, of course).

When you arrive at the store, remember to buy only what’s on your list. This is key to staying on budget! And if you go shopping as a family, let your kids help plan the meals on the front end so they know this trip isn’t a junk food free-for-all. It’s much easier to stay on budget when you’re shopping with a plan and working as a team.

5. Always Use Cash

The best way to stick to a lower food budget is to pay with cash. When you enter the grocery store with cash in hand, you know exactly how much you can spend. Plus, you’ll stick to the meat-and-potatoes necessities of your budget rather than your ice cream-and-cookie impulse buys.

If you still find you’re eating high on the hog at the beginning of the month and then scraping by on tuna fish by the end, make a cash run every two weeks, instead of every month. This way, you’ll have a better picture of how much you can actually afford to spend each week, versus for the entire month.

Better Habits, Better Budget

By simply starting a few new habits, you can lower your monthly food budget and meet your money goals even faster. That means more cash to pay down debts, invest for the future, or save up for something fun—like a babysitter and a nice meal out where someone else cooks and cleans up.

See why Dave recommends eMeals to help you gain control of your family meal plans and food budget.

(Courtesy of Dave Ramsey, “Top 6 Life–Changing Articles of 2015” http://www.daveramsey.com/blog/5-ways-cut-grocery-bill-without-coupons?ictid=604O1208)

Thinking of Selling Your Home? Get Ready to Negotiate!

Thinking of Selling Your Home? Get Ready to Negotiate! | Keeping Current Matters

Now that the market has showed signs of recovery, some sellers may be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller must realize their ability to negotiate will determine whether they can get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house.
  • The termite company if there are challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the COs permits mentioned above
  • The buyer’s buyer in case there are challenges on the house your buyer is selling
  • Your bank in the case of a short sale

Bottom Line

The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process.

NAR’s Latest Existing Home Sales Report [INFOGRAPHIC]

NAR's Latest Existing Home Sales Report [INFOGRAPHIC] | Keeping Current Matters

Why Did Home Sales Drop So Dramatically Last Month?

Why Did Home Sales Drop So Dramatically Last Month? | Keeping Current Matters

Yesterday, the National Association of Realtors (NAR) released their latest Existing Home Sales Report which covered sales in November. The report revealed that sales:

“…fell 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November (lowest since April 2014 at 4.75 million)…”

That revelation gave birth to a series of industry articles, some of which quoted pundits questioning whether the housing market was slowing. In actuality, there is one rather simple explanation to much of the falloff in sales last month. It is likely the implementation of the “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which went into effect on October 3. These regulations caused house closings to be delayed by an extra three days in November as shown in the graph below.

Average Days To Close | Keeping Current Matters

Three days might sound like a minimal difference. However, since there are only approximately 20 days in a month that a closing would normally take place (Mondays through Fridays), losing three days constitutes well over 10% of all closings. These sales are not lost. They are just moved into the next month’s numbers. In a DS Newsarticle on the subject yesterday, Auction.com EVP Rick Sharga explained:

“The most likely cause for the weak sales numbers is a delay in processing loans due to the new TRID mortgage requirements imposed by the CFPB. This is the biggest change in mortgage document processing in many years, and there have been numerous reports within the industry of problems implementing the process and the new documentation that comes with it.”

So how is the housing market actually doing?

A better way to look at how well the housing market is doing is to look at the Foot Traffic Report from NAR which quantifies the number of prospective buyers that are actively looking for a home at the current time:

Foot Traffic Growing | Keeping Current Matters

We can see immediately that demand to buy single family homes is increasing over the last few months – not decreasing.

Bottom Line

No matter what last month’s sales numbers show, the housing market is still doing well as demand remains strong.

Building Family Wealth Over The Next 5 Years

Building Family Wealth Over The Next 5 Years | Keeping Current Matters

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

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

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

Family Wealth Earned with Home Equity | Keeping Current Matters

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

Bottom Line

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