3 Simple Ways to Add Appeal to Your Home

September 16th, 2019

 

Adding value to your home doesn’t have to be a major task! Level up your curb appeal, add new hardware, or repaint a room to update your home.

        Curb Appeal

Potential buyers start judging your house the moment they pull up. That’s why it is so important to also think about the way your home is presented. By adding some flowers, a new mail box, and even painting the door you can create an entirely new feel to your house!

        Updating Your Hardware

Thinking about adding new hardware can seem like a huge task, that a lot of times isn’t needed. A trick to elevating your hardware is as simple as changing the knobs on your kitchen cabinets, adding new light fixtures, or updating the ceiling fans. Upgrading these things is a wonderful way to make a space seem brand new!

        Fresh Coat of Paint

Adding a fresh coat of paint is a quick and easy home improvement trick! Change the color of your living room to create a more inviting feel to your home. You can even paint your kitchen cabinets a new color that will upgrade your kitchen space. Fresh coats of paint go a long way when trying to update spaces in your home.

BOTTOM LINE

Updating your home doesn’t have to be stressful or expensive. Add simple touches to your front yard, elevating living spaces with new lighting fixtures, or repainting that dated room in your home are small touches that are sure to go a long way.

As the first round of Millennials turns the Big 3-0, will they celebrate with homeownership?

September 13th, 2019

 

Millennial Buying Power Poised to Boost Homeownership

Millennial Buying Power Poised to Boost Homeownership | MyKCM

In a recent article by Realtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes,

“The largest group of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying years”.

The article continues to describe how millennials have more buying-power than the generations that preceded them, making their interest in embracing homeownership stronger than ever,

“Millennials—the most educated generation—have the highest incomes across their generational cohorts, even when salaries are adjusted for inflation.”

This combination of power and desire has the potential to drive positive growth in the homeownership rate heading into the near future. According to Fleming,

‘“The gap between the potential and actual homeownership in 2018 narrowed slightly as the growth in homeownership modestly exceeded the increase in potential demand,” he says, citing First American’s Homeownership Progress Index.

“We expect the homeownership rate to further close the gap with potential in the years ahead as millennials continue to make important decisions, such as attaining an education and, later in life, getting married and having children.”’

That said, the shortage of sellable inventory in the entry and mid-range levels that’s attractive to potential millennial buyers may be a contributing factor as to why many millennials haven’t yet purchased a home. According to another recent report citing Frank Martell, President and CEO of CoreLogic,

“Lower rates are certainly making it more affordable to buy homes and millennial buyers are entering the market with increasing force. These positive demand drivers, which are occurring against a backdrop of persistent shortages in housing stock, are the major drivers for higher home prices, which will likely continue to rise for the foreseeable future.”

With millennials aging-up into mortgage-ready and home-buying territory, along with their strong buying interest and buying power, this generation is poised and ready to have positive impact on homeownership rates across the country. Many of them just need to find a home they’re excited to buy in this competitive end of the market.

Bottom Line

If you’re thinking of selling, let’s connect and determine if now is a great time for you to list your house and move-up. More millennials are getting ready to jump into the market and join the ranks of homeownership, so demand for homes in the starter and mid-level range will continue to be strong.

Home Buying 101 – Do you get an A+?

September 6th, 2019

A+ Reasons to Hire a Real Estate Pro

A+ Reasons to Hire a Real Estate Pro [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Hiring a real estate professional to help you buy your dream home or sell your current house is one of the most powerful decisions you can make.
  • A real estate professional has the experience to help you confidently navigate through the entire process.
  • Make sure you work with someone who knows the current market conditions and can simply and effectively explain them to you and your family.

Predictions for 2019 Year End

August 28th, 2019

Experts Predict a Strong Housing Market for the Rest of 2019

Existing Home Sales Point Toward a Good Time to Sell

August 2nd, 2019

Some Highlights:

  • Existing Home Sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June.
  • Low inventory levels are still a factor in the market. The current supply of homes for sale is at 4.4 months, which is less than the optimal 6-month supply.
  • Median home prices were up 4.3% from June 2018, hitting $285,700. This marked the 88th consecutive month with year-over-year price gains.

Mid-Year Housing Market Update: Three Things to Know Today

July 24th, 2019

Shifting trends and industry-leading research are pointing toward some valuable projections about the status of the housing market for the rest of the year.

If you’re thinking of buying or selling, or if you just want to know what experts are saying is on the horizon, here are the top three things to put on your radar as we head into the coming months:

  1. Home prices are appreciating at a more normal rate: Home prices have been appreciating for about ten years now. Experts at the Home Price Expectation Survey, Mortgage Bankers Association, Freddie Mac, and Fannie Mae are forecasting continued growth throughout the next year, although it should be leveling-off to normal appreciation (3.6%), as we move into 2020.
  2. Interest rates are low: Over the past 30 years, the average mortgage rate in the United States has been 8.27%, and rates even peaked as high as 18% in the 1980s. Today, at 3.81%, the rate is considerably lower than the historical 30-year average. Although experts predict it may climb into the low 4% range in the near future, that’s still remarkably lower than our running average, suggesting a great time to get more for your money over the life of your loan.
  3. An impending recession does not mean there will be a housing crash: Although expert research studies such as those found in the Duke Survey of American CFOs and the National Association of Business Economics, are pointing toward a recession beginning within the next 18 months, a potential recession isn’t expected to be driven by the housing industry. That means we likely won’t experience a devastating housing crash like the country felt in 2008. Expert financial analyst Morgan Housel tweeted:

“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”

In fact, during 3 of the 5 last U.S. recessions, housing prices actually appreciated:Mid-Year Housing Market Update: Three Things to Know Today | MyKCM

Bottom Line

With prices appreciating and low interest rates available, it’s a perfect time to buy or sell a home. Let’s get together to discuss how you can take the next step in the exciting journey of homeownership.

Coming Soon in Como!

July 15th, 2019

Check out this 3 bed, 2 bathroom Como home BEFORE it hits the market! Imagine yourself living just blocks away from Lake Como, while enjoying the convenience of having an attached garage and lower level.

Give Todd a call today if you or someone you know would LOVE this home… (651) 398-8201

Should You Hire a Realtor When Buying New Construction?

July 9th, 2019

There are unmistakably unique allures built into every newly constructed home: the window for personal customization sits open, wide as it ever will. A bevy of brand new appliances, amenities and of-the-moment upgrades come ready for you and your family to experience. Lest we forget the most fundamental pull—there’s the personal privilege to christen it yours, first.

If you’re wondering whether you can employ a real estate agent for a newly-built home purchase, the answer is an unequivocal “YES!” While the developer’s agent will be always ready to assist potential buyers, you’re definitely going to want an expert of your own ready to represent your side of the deal. Suffice to say purchasing new vs. purchasing resale is a whole other ballgame, one requiring a buyer’s agent to successfully navigate complex headwinds, and protect your involvement at every step. Let’s break this down for a closer look.

 

 

The Builder’s Agent vs Your Real Estate Agent

The Builder’s:

It’s important to identify who’s on what side of the transaction, along with the roles each person plays. In this situation the builder plays a dual role also functioning as the “seller.” The agent representing the builders sales office functions as that builder/sellers agent. It should go without saying the primary duty of this agent is to generate sales for their builder. Consequently, the agent’s attention won’t be devoted to your best interests, but that of the builder.

While price negotiations with this agent (especially without your own agent) are bound to produce some spirited discussions, you can in fact rely on them for some valuable information. Builder agents can be a wealth of knowledge on things such as background details on home construction and housing development in regards to a newly built home.

Your Agent

Your realtor is your personal advocate. Not only will they ensure you’re aware of your rights at the table, securing the most value out of your budget is of top mind. These benefits and more all come together making for a relatively painless purchasing process.

Should you decide to move forward on a new home purchase working with an agent, make sure to disclose this detail to the selling party on your initial visit to the model home. It’s ideal to clarify upfront that you will have a representative, and that the builder agrees to this. This is good to remember because most builders require a serious buyer to be accompanied by a real estate agent on their first visit.

Here are some of the biggest reasons why you should hire a real estate agent to represent you:

A real estate agent will round out your knowledge of the builder, the home and its construction quality.

While the builder’s agent is unquestionably knowledgeable there’s a risk in relying solely on their word. You may likely be getting just a narrow, potentially biased perspective of a fuller picture. It isn’t for lack of insight, but more-so about what can sometimes get lost in a property breakdown. An experienced real estate agent will be well familiar with every major area builder and their work quality, cluing you in on things that may have been omitted from the seller agent. If you’re at all unsure of where to buy, a qualified realtor can recommend the right builder and neighborhood for you.


They will help you make the right choices according to your budget.

Especially if you’re a first time home buyer, purchasing new construction can not only be overwhelming, but expensive to boot. Considering the endless array of upfront upgrades and modifications to choose from your agent can help guide you through the personalization process, delivering the best options for your budget. From floor plans to the latest amenities, you can think of your realtor as your personal shopper here. They can make informed considerations on items better to install at present, versus items that are easier to improve upon in the future. An added bonus: if you’re thinking about selling your property a couple of years down the line, your realtor can appraise you on the features and amenities likely to attract future buyers in the long-term.


They’re your negotiator.

An experienced agent will come into talks knowing prior what “is” and “isn’t” on the table for discussion. In this approach, your realtor can better broker on things such as paint color, style of utilities and even closing costs. This is especially valuable since builders are far more likely to negotiate on fees or upgrades than they are on the purchase price of the home. It’s important to note, varying builder by builder, whether or not one is even willing to negotiate. Your agent will act as your guide through all of this, additionally making you aware of any “builder promotions” available to take advantage of.


No realtor fees on your end.

That’s right. Hiring a realtor to buy new construction comes at no cost to you since the builder will be the one paying your agent’s commission. Builders rely on outside agents to bring clients to them. As such, they view commissions as part of their cost of doing business, usually adding it into the marketing budgets of the homes. However, this doesn’t mean the builder would credit you the commission should you forego a realtor; they would much rather dole it out to an agent on your behalf. Builders are also unlikely to reduce the price of the home because it sets the comparison price for future home sales in that neighborhood.


Your realtor will help you set and oversee a home inspection.

You may be thinking, “Why do I need a home inspection if it’s a newly built home?” Well, even with the best construction, using only the best materials, contractors, etc., new homes can still have their fair share of defects just the same as resale homes. The builder’s agent is unlikely to push for or offer up an inspection, likely because the builder doesn’t necessarily want to inspect it themselves. You may be thinking you  can depend on a new home warranty to cover unaccounted for issues despite this, but let’s just say we wouldn’t hold our breath on that.

It’s up to you and your real estate agent to set up a home inspection. An excellent realtor has connections to multiple independent inspectors who will work in your best interest. Your agent will help you set up an appointment then review the inspection report to identify potential areas of negotiation with the builder. Also, it’s best to attend the walkthrough with your agent so they can help spot errors on the new home.


What you see is NOT what you get.

You might be amazed when you tour the model home and see top tier granite countertops, upgraded appliances, crown molding, rough-in plumbing—you name it. However, it’s prudent to remember that the model you visited is not necessarily the home you’ll end up purchasing. That model is worth more than the base price being advertised precisely because of all those amenities. In this case, keep that old adage in mind. Like buying a new car, your home could feel distinctly different from what you see on the showroom floor.

With the help of your realtor, you can differentiate between base price and whatever comes at the cost of an upgrade. With this you can accurately price compare between a model brimming with every possible bell and whistle, and a more sensible option, possibly with a little less flash, but a healthy amount nonetheless.


Your realtor is also your contract and paperwork guru.

Be honest, how familiar are you with real estate contracts? Unfortunately, every real estate purchase involves some level of exhaustive paperwork that can not only be confusing but also very intimidating. When buying new construction, you will have to sign a builder’s standard contract, which covers all the pertinent details of a new-home purchase. Your agent, being an expert in the industry, will review any contracts you sign to ensure everything is in order, and most importantly, that you are protected. They will guarantee your comfort and understanding pertaining to every aspect of the agreement. Whatever has been agreed upon by you and the builder (fees, timelines, upgrades) a realtor is going to ensure it is incorporated into the contract. Moreover, they will make sure that all other paperwork is reviewed and filed correctly for a smooth transaction.


They can recommend financing.

A builder will typically have a preferred lender and will even offer incentives to ensure a buyer works with that lender. This reassures them that the buyer is a good credit risk. However, the smartest thing you can do is to shop around and find the best loan that works for you and your situation. Your agent can help you with your search by exercising their rolodex of connections, partnering you with only the most reputable of lenders and letting you compare rates. At the end of the day, you will need to find the best loan for you and not for the builder—an agent is a great resource to rely on.

Americans Rank Real Estate Best Investment for 6 Years Running!

July 3rd, 2019

Some Highlights:

  • Real estate has outranked stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long-term investment among Americans for the last 6 years.
  • Stock owners are more positive about real estate than stocks as an investment.
  • Of the 4 listed, real estate is the only investment you can also live in!

 

Home Wants vs. Needs

June 26th, 2019

Before You Look for Your Dream Home: Know What You Want vs. What You Need!

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale through rose-colored glasses.

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the “man cave” of your dreams be a future renovation project instead of a make-or-break right now?

The first step in your home buying process should be getting pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

  • “Must-Haves” – if this property does not have these items, then it shouldn’t even be considered (ex: distance from work or family, number of bedrooms/bathrooms).
  • “Should-Haves” – if the property hits all of the ‘must-haves’ and some of the ‘should-haves,’ it stays in contention but does not need to have all of these features.
  • “Absolute-Wish List” – if we find a property in our budget that has all of the ‘must-haves,’ most of the ‘should-haves,’ and ANY of these, it’s the winner!

Bottom Line

Having this list fleshed out before starting your search will save you time and frustration. It also lets your agent know what features are most important to you before they start showing you houses in your desired area.