Put Your Charlotte Housing Costs to Work!

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How to Put Your Housing Cost to Work for You

How to Put Your Housing Cost to Work for You | MyKCM

Your Charlotte and Lake Norman area Realtor wants to keep you informed. Please contact Roby Robertson with any of your Real Estate Questions! Warm weather is upon us and the market will begin to build!!

There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the top is the added wealth homeowners gain simply by paying their mortgage while their home increases in value over time.

The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation.

For a homeowner who purchased their home 30 years ago, they have gained nearly $250,000 in equity with 70% coming from price increases. The full results can be seen in the chart below.

How to Put Your Housing Cost to Work for You | MyKCM

According to the Home Price Expectation Survey, a family who purchased a median priced home this January can expect to gain more than $42,000 over the next five years simply from price appreciation alone.

Bottom Line

Your home is one of the only investments you can live inside as you pay it off over time. If you are ready to use your housing costs to build wealth, let’s get together to discuss how to make your dream a reality.

What’s Going On With Real Estate Bidding Wars?

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What’s Going On with Bidding Wars?

What’s Going On with Bidding Wars? | MyKCM

In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home.

According to the Cambridge English Dictionary, bidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home.

In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.

With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell if no additional listings came to market. Any supply number under a 6-month supply is considered a seller’s market. According to NAR, the housing market hasn’t had a 6-month supply of homes for sale since August 2012.

Good News for Buyers

A recent report shows that the percentage of houses sold including a bidding war before settling on a final price decreased from 53% in January of 2018 to 13% this year.

One reason for the decline is an influx of homes being listed for sale. Even though the month’s supply number is not increasing, the number of homes for sale is. The chart below shows the year-over-year change in inventory over the last 12 months.

What’s Going On with Bidding Wars? | MyKCM

As you can see, the number of homes for sale has started to build over the last eight months. Prior to this reversal, inventory levels had fallen for 36 consecutive months when compared to the year before.

Danielle Hale, realtor.com’s Chief Economist, gave some insight into why bidding wars are less common on a local level this year,

“[Last year] you might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price. That tide is turning this year.

It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing.”

Inventory in the luxury and premium markets (the top 25% of listings in an area by price), is increasing at a greater rate than the starter home market. As the choices buyers have continued to increase, the likelihood of a bidding war will decrease.

Bottom Line

If you are debating listing your house for sale this year, you may not want to wait for additional competition as inventory continues to rise.

Excited To Buy Your Charlotte Area Home?

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Excited About Buying A Home This Year? Here’s What to Watch

Excited About Buying A Home This Year? Here's What to Watch | MyKCM

Here is some information and a place to gather more information as you make this big decision. Feel free to contact us and we will do all we can to help you !

As we kick off the new year, many families have made resolutions to enter the housing market in 2019. Whether you are thinking of finally ditching your landlord and buying your first home or selling your starter house to move into your forever home, there are two pieces of the real estate puzzle you need …Continue Reading

4 Reasons Why Fall Is A Great Time to Buy Your Charlotte Area Home!

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1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insights report reveals that home prices have appreciated by 6.2% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.1% over the next year.

Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have already increased by half of a percentage point, to around 4.5% in 2018. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by half a percentage point to around 5.1% by this time next year.

An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage
There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home which you can then tap into later in life. As a renter, you guarantee your landlord is the person building that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Do a comprehensive home search at www.RobyRobertson.com

You can get a huge amount of good real estate information here.

How To Be A Better Buyer

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Visit houselogic.com for more articles like this.

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Home Selling Strategies

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Visit houselogic.com for more articles like this.

Copyright 2015 NATIONAL ASSOCIATION OF REALTORS®

Why Brokers Don’t Like Zillow

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  • Have you ever had your agent ask you not to use Zillow as your source for searching Real Estate?
  • Have you ever questioned your agent about the data that exist on Zillow?
  • Have you ever found out that data on Zillow seems to be a bit off?
  • Have you ever questioned your agent about why the Zillow Zestimate is so far off his/her analysis?

There are some problems that exist between what consumers find on Zillow and what Realtor’s actually enter in our MLS.  Also, there are lags in status updates and other data found ( Zestimates…) As Brokers we have to agree to Zillow terms to have our data syndicated to their website.

As part of these terms the most troubling is “Zillow reserves the right to change data and we agree to not hold them accountable”.  I admit that is not the exact verbiage but it is an accurate summary.   Also, Zillow gives brokers ZERO ability to change(fix) data. Also, Zestimates are joke.  When agents do market analysis we know if a basement is finished, if counter tops have been updated,  if floor coverings are new…   Do you think Zillows this????

How in the world can they?  So,  how can their Zestimates be accurate. These items are not even the biggest problem. Case in point:  Let’s say a seller puts his home for sale and the listing agent syndicates home to numerous websites like Zillow.   Let’s also say the home has 3.5 bathrooms and 5 bedrooms.  Now what if in he syndicating of data, Zillow publishes 3 bathrooms and 4 bedrooms.

Zillow will NOT allow the agent to fix the problem.  Now the seller gets mad and calls the Real Estate Commission to complain about misrepresentation (yes people will).  Guess who is at fault?   Right the Broker… There are companies now looking very closely about whether they even want to syndicate the data.

Liability is a scary thing! The most accurate site on the web is Realtor.com.

Pricing Your Home to Sell – Get The Best Value

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Getting ready to get into the real-estate market?

Most sellers today are nervous and unsure. They wonder: is taking a loss on  our house inevitable?

The answer is no! A strategic sales plan, coupled with a smart buy in your  new location will ensure that you recoup the maximum value for your home.

Your Strategic Sales Plan

Consult with an expert, Carolina Living Real Estate real estate agents ensure your house is priced competitively and well-staged. Why? Because while there are always three factors to getting a home sold—location, price, and condition—only two are under your control: price and condition. Of the two, which is more significant? Price. Remember that price will correct bad condition, but condition will never overcome a bad price.

Act fast. Every month that price on your home may decrease, your costs remain the same. For example, I Sell Homes, Inc and Carolina Living’s research shows that sellers who listed their home at the price the agent originally recommended, sold the home 38 days faster. This is over a month of mortgage and tax payments! For a home that cost $200,000 at time of purchase, with 20 percent down and an interest rate of 6.5 percent, selling a month sooner results in a savings of $1101.31 for the mortgage alone, not including the taxes and insurance that the homeowner would be paying during this time.

Don’t worry about where the market has been, keep your focus on where it is going. The price your neighbor down the street got six months ago is not relevant in a market where your house is competing with others from all across town. Again, a local real estate agent will have the kind of long-term, wide-ranging data that will help you decide how to pinpoint your price with precision.

Your Smart Buy

Move up. Whether you are moving to an area where prices are in a downturn, or dreaming of nicer, bigger, home in your own town, selling your house now can get you into the home of your dreams. Falling home prices are a great opportunity for a savvy homeowner looking to move up. Even though your house price may be lower, the smaller loss at sale can be made up by greater savings at purchase. For example, let’s take that same $200,000 home, and imagine that it has decreased in value by 5 percent, reducing the sales price to $190,000. At the same time, let’s imagine that you would like to move up and the $400,000 home you have had your eye on has also decreased by 5 percent. That’s a savings of $20,000, and it is a home that is likely to be better positioned for appreciation when the market rebounds.

How To Prepare For The Big Move

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Once you’ve found the perfect home, it’s easy to think its all downhill from there. While its true enough that securing the home of your dreams is a fantastic feeling, there’s one last obstacle that stands in your way: the dreaded moving day. As scary as it sounds, moving day is not an impossible feat. In fact, by taking a bit of our advice, moving day can be a piece of cake.

The problem with most movers is that they wait too long to get started. Once you have solidified your new home choice, you may want to relax, but you actually have a whole new list of things to do. For starters, you can start packing away any seasonal clothing you won’t be using. Spring and summer are often considered the moving seasons, so in these cases its best to pack away your heavy coats and other winter clothing. If you happen to be moving in the fall or winter, you can apply the opposite logic and start packing any summer wear that you have. You could also begin the processes of canceling and/or transferring services. This includes things such as newspaper subscriptions, internet service, bank accounts, etc. Just because you can’t break out the cardboard boxes doesn’t mean you can’t do these menial tasks early on! As far as your utilities go, you’ll want to talk to your service provider to make sure that your services will be turned on the day before you move in. After all, no one likes moving in to a new home without running water and electricity.

You’ll also need to decide whether you will hire a moving company or enlist the help of your friends. Both have their pros and cons. Wit ha professional service, you have the assurance that it will be fast, efficient, and hopefully a guarantee that if anything is broken it will be covered. If you decide to enlist your friends, it may not be as efficient and you run the risk of damaging special items, but you will also save some money.
About two weeks before the big move, you should start packing everything- not just your seasonal belongings. Be sure to pack smartly, using a color coded system or some other markings so that whoever helps you move will know which room to set the boxes in. On the day before, create emergency boxes. What we mean is, for each member of the family, have access to clothes, toiletries, etc. You should also plan out what you will be eating in your new home as your unpack, even if its primarily take-out for the first few days.

By following these preparation tips, moving day can be just as manageable as any other day of the year. Start early and plan thoroughly and everything will be fine.

Article by Tom Miller
New Home Source

Major Home Builder Has Bullish Opinion On Housing

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According to Business Insider, Homebuilding giant PulteGroup reported Q3 net income of $117 million or $0.30 per share.  This was a big improvement  from last year’s $0.34 net loss.

According to Pulte CEO, Richard Dugas: “In past cycles, the U.S. housing industry proved to be a powerful engine that could help drive the economy forward and accelerate the pace of a recovery.  A similar scenario could again be unfolding, as the industry is responding to increased sales by hiring additional workers and purchasing more building materials.  While we are mindful of any potential impact from global or domestic economic issues, we are optimistic that the combination of ever higher rental rates, record low interest rates and limited housing supply can continue to support the improved housing demand.

Read more: Business Insider Pulte Group Article

In Charlotte, we have seen an increase in closing and a decrease in inventory pointing towards a very minor switch from a buyers market to a sellers market.  However, we are very mindful of the still looming Charlotte Foreclosures and Lake Norman Foreclosures that still impacts the ‘everyday’ Charlotte area seller.