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All Gave Some. Some Gave All.
28 Tuesday May 2019
Posted in Uncategorized
Monthly Archives: May 2019
Just Listed! 1205 Blume Road, Blythewood’s Cedar Creek
28 Tuesday May 2019
Posted in Area Homes For Sale, Home buying
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4 Most Popular Bottom Line Investments in America
23 Thursday May 2019
Posted in Home buying
4 Most Popular Bottom Line Investments in America
Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks, gold, and savings accounts.
For the sixth year in a row, real estate has come out on top as the best long-term investment! That has not always been the case. Gallup explains:
“Between 2008 and 2010, covering most of the Great Recession period that saw plummeting home and stock values, Americans were as likely to name savings accounts or CDs as the best long-term investment as they were to name stocks or real estate.”
This year’s results showed that 35% of Americans chose real estate, followed by stocks at 27%. The full results are shown in the chart below.
Bottom Line
Now that the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.
4 Tips for Making a Competitive Offer
15 Wednesday May 2019
Posted in Columbia tell me what you think?, Home buying
4 Tips for Making a Competitive Offer
So, you’ve been searching all over Columbia SC for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!
Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:
1. Determine Your Price
“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”
Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.
Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.
2. Submit an Offer
“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”
Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.
3. Negotiate the Offer
“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.
Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.
4. Act Fast
The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.
Bottom Line
Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality!
The Benefits of a 20% Down Payment
08 Wednesday May 2019
Posted in Home buying
If you are in the market to buy a home this year, you may be confused about how much money you need to come up with for your down payment. Many people you talk to will tell you that you need to save 20% or you won’t be able to secure a mortgage.
The truth is that there are many programs available that let you put down as little as 3%. Those who have served our country could qualify for a Veterans Affairs Home Loan (VA) without needing a down payment.
These programs have cut the savings time that many families would need to compile a large down payment from five or more years down to a year or two. This allows them to start building family wealth sooner.
So then, why do so many people believe that they need a 20% down payment to buy a home? There has to be a reason! Today, we want to talk about the benefits of a 20% down payment the four reasons why putting 20% down is a good plan, if you can afford it.
1. Your interest rate will be lower.
Putting down a 20% down payment vs. a 3-5% down payment shows your lender/bank that you are more financially stable, thus a good credit risk. The more confident your bank is in your credit score and your ability to pay your loan, the lower the rate they will be willing to give you.
2. You’ll end up paying less for your home.
The bigger your down payment, the lower your loan amount will be for your mortgage. If you are able to pay 20% of the cost of your new home at the start of the transaction, you will only pay interest on the remaining 80%. If you put down a 5% down payment, the extra 15% on your loan will accrue interest and end up costing you more in the long run!
3. Your offer will stand out in a competitive market!
In a market where many buyers are competing for the same home, sellers like to see offers come in with 20% or larger down payments. The seller gains the same confidence that the bank did above. You are seen as a stronger buyer whose financing is more likely to be approved. Therefore, the deal will be more likely to go through!
4. You won’t have to pay Private Mortgage Insurance (PMI)
Simply put, PMI is “an insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.”
As we mentioned earlier, when you put down less than 20% to buy a home, your lender/bank will see your loan as having more risk. PMI helps them recover their investment in you if you are unable to pay your loan. This insurance is not required if you are able to put down 20% or more.
Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put down 20% on their next home.
If you are looking to buy your first home, you will have to weigh the benefits of saving a 20% down payment vs. the time and cost of continuing to rent while you save that amount.
Bottom Line
If your plan for your future includes buying a home and you’re already saving for your down payment, let’s get together to help you decide what down payment size best fits with your long-term plan!
Home Buyers are Optimistic About Homeownership!
07 Tuesday May 2019
Posted in Uncategorized
When we consider buying an item, we naturally go through a research process prior to making our decision. We ask our friends and family members who have made similar purchases about their experience, we get opinions and insights, and we read reviews online. There’s no difference when considering a home purchase!
Most homebuyers start by listening to the news to hear what is being said about the real estate market. They check with family and friends about their experience. They spend time online reading reviews about their desired neighborhood.
The challenge is that comments from the news and those closest to us can contradict the data and reports. One source says one thing, while another source says something completely different.
There is a group of homebuyers that are not allowing comments about an upcoming recession to interfere with their decision to buy a home. According to a survey by realtor.com®,
“Nearly 70 percent of home shoppers this spring think the U.S. will enter a recession in the next three years, but that hasn’t stopped them from trying to close on a home…Despite the fact that they foresee an economic downturn, they generally expressed confidence that a future recession will be better than 2008 for the housing market.”
The report provides more insights from the survey:
- Nearly 30% of the active home shoppers* surveyed expect the next recession to begin sometime in 2020.
- 56% of shoppers believe home prices have hit their peak.
- 41% believe housing will fare better than 2008.
- 45% of home shoppers feel at least slightly more optimistic about homeownership.
- 33% reported no impact on their feelings about homeownership.
Homebuyers are aware and making decisions with their eyes wide-open. As the report mentioned,
“The fact that some [36%] home shoppers expect the next recession to be harder on the housing market than the last recession suggests that they are buying homes with eyes wide-open and very sober, if not slightly pessimistic, views of the housing market.
This is a stark contrast to the years leading up to the last recession when ‘irrational exuberance’ was more common and yet another reason to expect that the next downturn will be very different for the housing market than the last.”
Bottom Line
If you are considering buying a home, let’s get together to help you understand our local market and determine if buying a home is the right choice for you now.
*Active home shoppers are those consumers who responded that they plan to purchase their next home in 1 year or less.
Buying a Home at South Carolina County Auction Post-Foreclosure
07 Tuesday May 2019
Posted in Avoiding Foreclosure, Home buying, Post-Foreclosure
Tags
#COLUMBIAFORECLOSURERELIEF, #Postforeclosure, #Preforeclosure, #RMFRealty, #Rozalynfranklinrealtor, #SCRealtor
How a Home Ends Up On the Auction Block
When it comes to a buying a home at South Carolina County Auction Post-foreclosure. Many wonder how the house may have ended up here. There’s really just one way that a property ends up on the block: someone doesn’t make their payments and the bank seizes the real estate securing their mortgage. For most mortgages, this means the former owners were more than 90 days past due. This could be because they couldn’t afford the house anymore due to some major life change, or maybe they just sent their bank “jingle mail”.
Jingle mail was really common during the Great Recession and the steep decline in real estate values that resulted. Homeowners would realize they couldn’t afford their adjustable rate mortgage when its interest rate reset and since they couldn’t refinance, they’d end up there sooner or later. Others just knew how far underwater they were and weren’t willing or able to hang on until they were righted.
The point of all of that was to demonstrate that just because a house goes to foreclosure auction doesn’t mean that it’s going to be a total nightmare. There are lots of nice properties that have been thoughtfully and strategically abandoned. The trick is figuring out how to tell them apart from those that are basically ready to be pushed over with a bulldozer (and a real estate or appraisal expert can help you with this in a big way).
Getting the Most Out of a Foreclosure Auction
There’s a lot to learn about buying houses at post-foreclosure auctions, but if there were just three pieces of advice to offer, these are probably the most important:
- Bring cash or a cash equivalent. You can’t walk into an auction like this and expect to be able to spend a month arranging financing. Most will require at least five percent down on the day of the sale with the balance due soon after. Anywhere from a day to a week is pretty normal. This is why investors are generally the only people at these auctions. They often have credit lines that make it easy to buy on the fly.
- Base your top bid on the value of the home minus any repairs you anticipate. If this is your first home auction, find out long ahead of time if you will be allowed to inspect the property prior to the big day. If no, keep that bid low because you never know what may crop up. If yes, take a licensed home inspector with you and let them do their job on the day the house will be open. They’ll be able to estimate what the visible, necessary repairs will cost so you’re not going into the auction blind.
- Remember that the owner can still redeem that home within a set period. It’s a common misconception that when you buy a home at a county auction, either for non-payment of taxes or foreclosure, that it’s yours. Said and done. It’s not. Most states allow a redemption period for the former owner. Should they be able to get enough money together to solve the financial issue that landed their home in this state to begin with, within the provided window, your rights to the property will be terminated. So, whatever you do, hold off on any work or spending on the property until that window has expired.
1 Dawson Pond Ct, Blythewood SC
01 Wednesday May 2019
Posted in Area Homes For Sale
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