770-354-0243

fax 770-783-8896 / Email Me

Buyer Tips Category

Freddie Mac, Equity Matters a Lot!

Nest-Egg-House-Money-KCM

According to a Merrill Lynch survey, over 80% of the people in this country believe that homeownership is still “an important part of the American Dream”. There are many financial and non-financial reasons people feel this way.

One of the biggest reasons is because it helps build family wealth. Last week, Freddie Mac posted about the power of home equity. They explained:

“In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home’s appreciation. In a nutshell, your money is working for you and contributing toward your financial future.”

They went on to show an example where a person bought a home for $150,000 with a down payment of 10%, resulting in a loan amount of $135,000. The buyer secured a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance). They then illustrated what would happen after seven years of making a mortgage payment, assuming 3% per year home appreciation (the historic national average)
Home-Equity

And that number continues to build as you continue to own the home. Merrill Lynch published a report earlier this year that showed the average equity homeowners have acquired at certain ages.

Home-Equity.3-KCM

5 Reasons to Hire a Real Estate Professional

Her business insight is invaluable!
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 $208,000 compared to $235,000 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?

Call me today to discuss how I might help you! 770-354-0243

Average Interest Rates By Decade

November2014-33

5 Questions you Should Ask Your Agent

5 Questions You Should Ask Your Real Estate Agent
question mark

Whether you are buying or selling a home, the process can be challenging. That is why we always suggest that you take on the services of a real estate professional when embarking on a potential home move. However, not all real estate agents are the same. A family must make sure they hire someone who truly understands the current housing market and, not only that, knows how to connect the dots to explain how market conditions may impact your decision.

How can you make sure you have an agent who meets these requirements?

Here are just a few questions every real estate professional should be able to answer for their clients and customers:
•Are home values approaching a new bubble or will prices continue to appreciate?
•Is it better for a first time buyer or a move-up buyer to wait until they save a bigger down payment before they purchase a home?
•Where will 30-year mortgage rates likely be in 12 months?
•Why do I need an agent when I can just as easily find the house online myself?
•Is buying a home still a good investment for my family?

Make sure you hire an agent such as myself that can answer questions like those above. That will guarantee the home buying or selling process will be much easier for you and your family.

Where are home values headed?

Home Prices… Where are they Headed? | Keeping Current Matters

Home-Price-Expectation-275

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey
•Home values will appreciate by 4.6% in 2014.
•The cumulative appreciation will be 19.5% by 2018.
•That means the average annual appreciation will be 3.6% over the next 5 years.
•Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.2% by 2018.

Getting a mortgage :Why do much paperwork?

Getting a Mortgage: Why SO MUCH Paperwork? | The KCM Crew
?????????????????????????????????????????????????????????

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.
1.The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again
2.The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably below 5%.

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <5%, they would probably bend over backwards to make the process much easier. Bottom Line Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

Either way to have to pay a mortgage

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a dollar signmortgage. Everyone should realize that, unless you are living with our parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As a recent paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since prices and interest rates are still at bargain prices.

Don’t wait, Move up to that home you have always wanted!

Don’t Wait! Move Up to the Home You Always Wanted!

Posted: 28 Jan 2014 03:00 AM PST

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.

However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease. Here is a chart detailing this point:

1_28-Blog-Visual

Homes for Sale in Walton, Pope and Lassiter High School Districts

 
$1,995,000
Beds: 6
Baths: 6 | 3
Sq. Ft.: 11,583
 
Open House: Jul 30, 2017 2:00 PM - 4:00 PM
549 Gramercy Drive NE, Marietta, GA 30068
$1,650,000
Beds: 6
Baths: 5 | 1
Sq. Ft.: 8,128
 
$1,365,000
Beds: 5
Baths: 5 | 2
Sq. Ft.: 5,302
 
$1,350,000
Beds: 5
Baths: 5 | 2
Sq. Ft.: 7,605
 
$1,249,900
Beds: 6
Baths: 6 | 2
Sq. Ft.: 7,059
 
$1,200,000
Beds: 6
Baths: 6 | 1
Sq. Ft.: 5,245
 
$1,200,000
Beds: 5
Baths: 5 | 1
Sq. Ft.: 5,000
 
Open House: Jul 30, 2017 2:00 PM - 5:00 PM
4550 Bastion Drive, Roswell, GA 30075
$995,000
Beds: 5
Baths: 5 | 2
Sq. Ft.: 7,826
 
$898,500
Beds: 4
Baths: 4 | 1
Sq. Ft.: 4,761
 
$850,000
Beds: 6
Baths: 5 | 1
Sq. Ft.: 7,079
 
Information Deemed Reliable But Not Guaranteed. If you believe any FMLS listing contains material that infringes your copyrighted work please please click here to review our DMCA policy and learn how to submit a takedown request. © 2017 First Multiple Listing Service, Inc.
FMLS data last updated at July 27, 2017 12:07 PM ET

Luxury Homes for Sale In Marietta

The luxury home market is recovering, call me or email me if any of these interest you!

 
$7,300,000
Beds: 7
Baths: 7 | 2
Sq. Ft.: 19,382
 
$4,450,000
Beds: 7
Baths: 8 | 3
Sq. Ft.: 8,693
 
$3,600,000
Beds: 6
Baths: 5 | 1
Sq. Ft.: 8,104
 
$2,799,000
Beds: 0
Baths: 0
Sq. Ft.: 4,450
 
$2,589,000
Beds: 7
Baths: 7 | 3
Sq. Ft.: 11,472
 
$2,589,000
Beds: 7
Baths: 7 | 2
Sq. Ft.: 10,911
 
$2,500,000
Beds: 5
Baths: 4 | 1
Sq. Ft.: N/A
 
$2,500,000
Beds: 5
Baths: 4 | 1
Sq. Ft.: 3,500
 
$2,499,000
Beds: 6
Baths: 6 | 3
Sq. Ft.: 13,714
 
$2,400,000
Beds: 5
Baths: 5 | 1
Sq. Ft.: 7,500
 
Information Deemed Reliable But Not Guaranteed. If you believe any FMLS listing contains material that infringes your copyrighted work please please click here to review our DMCA policy and learn how to submit a takedown request. © 2017 First Multiple Listing Service, Inc.
FMLS data last updated at July 27, 2017 12:07 PM ET