KCM™s Housing Predictions for 2014

KCM’s Housing Predictions for 2014 Posted: 02 Jan 2014 04:00 AM PST Making predictions in what is still a somewhat volatile housing market can be tricky. That being said, we are going to give you what we believe will be the five biggest headlines for housing in 2014. Home Sales Will Surge Many housing pundits are calling for home sales to do slightly better in 2014 than they did in 2013. To the contrary, we strongly believe that home sales will skyrocket with increases of 10-15% in 2014. Supply Will Struggle to Keep Up with Demand With a dramatic increase in demand, it will be up to real estate professionals and builders to make sure there is the necessary inventory to satisfy this demand. This will be a challenge for much of the year. Interest Rates Will Increase Significantly Most experts are calling for an increase in mortgage interest rates in 2014. However, we believe the increase will be more dramatic than is being projected. We believe rates will be closer to 6% than 5% by year’s end. And with that being said The Underwood Sales Group is here to help you today get the best rates and sell your home faster and for top dollar. Using the power of the Keller Williams Realty and #1 in agent count we are here to answer any questions or concerns. Please feel free to contact us at (888) 831-0736 anytime!

RENT VS. BUY YOU MAKE THE CALL!

Buy or Rent: Which Makes More Sense Financially?     Every potential home buyer has to stop for at least a moment and consider this question. Today, we want to look at one of the many financial reasons to buy instead of rent: the housing expense moving forward. According to the latest Existing Home Sales Report from the National Association of Realtors, the median sales price of a home in the U.S. is $184,300. The mortgage payment (principal & interest) on that purchase would be $661.89 assuming a 20% down payment and a 3.5% mortgage interest rate. Currently, the median asking rent in the U.S. according to the Census Bureau is $717 a month. We realize that the two payments do not necessarily reflect the housing cost on a similar residence. However, that is not the point of the post. All we are saying is that the monthly housing expense on a median price home is $661.89 and the median rent is $717. We now want to discuss what will happen to these costs over time. The principal and interest portion of the mortgage payment is locked in for the next 30 years. We know real estate taxes may be included in the payment and will increase to some degree over that time. We also acknowledge that the homeowner will have occasion to spend money on repairs. They also receive many tax advantages as a homeowner. However, the actual monthly housing expense remains the same for the next 30 years. Now, let’s look at what happens to a rent payment. The best thing to do to predict the future is to study the past. Here is a graph of the median asking rent since 1988 based on Census Bureau data:   We believe rents will follow their historically pattern and increase dramatically over the next 30 years. Buyers have a choice: either lock in your housing expense or deal with the uncertainty of rental increases.

GETTING TOP DOLLAR FOR YOUR HOME!

The Homeowner Who Represents Himself is Dumb and … Posted: 24 Apr 2013 04:00 AM PDT   With the housing market beginning to heat up, we are afraid some sellers may consider trying to sell their house as a For Sale By Owner (FSBO). This week we will be posting on the reasons that we believe trying to sell on your own may be a mistake. – KCM Crew A well-known legal profession axiom: “The attorney who represents himself is dumb and has a fool as a client.” We believe this also applies if you attempt to sell your own home as a For Sale by Owner (FSBO). In today’s volatile market, you need an experienced professional! You and your family need a skilled negotiator In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes. Here is a list of some of the people with whom your agent will potentially negotiate on your behalf: The buyer The buyer’s agent The buyer’s attorney The home inspection company The termite company The buyer’s lender The appraiser The title company The town or municipality The buyer’s buyer Your bank (in the case of a short sale) How do you know if an agent negotiates well? Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer in your deal. Bottom Line You need a great negotiator. We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.