Gabby Taylor Group Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.gabbytaylorgroup.com/blog/Copyright GabbyTaylorGroup.com2024-02-05T10:19:44-07:00tag:gabbytaylorgroup.com,2012-09-20:32699Why Having Your Own Agent Matters When Buying a New Construction Home
Finding the right home is one of the biggest challenges for potential buyers today. Right now, the supply of homes for sale is still low. But there is a bright spot. Newly built homes make up a larger percent of the total homes available for sale than normal. That’s why, if you’re craving more options, it makes sense to see if a newly built home is right for you.
But it’s important to remember the process of working with a builder is different than buying from a homeowner. And, while builders typically have sales agents on-site, having your own agent helps make sure you have proper representation throughout your homebuying journey. As Realtor.com says:
“Keep in mind that the on-site agent you meet at a new-construction office works for the builder. So, as the homebuyer, it’s a smart idea to bring in your own agent, as well, to help you negotiate and stay protected in the transaction.”
Here’s how having your own agent is key when you build or buy a new construction home.
Agents Know the Local Area and Market
It’s important to consider how the neighborhood and surrounding area may evolve before making your home purchase. Your agent is well-versed in the upcoming communities and developments that could influence your decision. One way a real estate agent can help is by reviewing the builder's site plan. For example, you’ll want to know if there are any plans to construct a highway or add a drainage ditch behind your prospective backyard.
Knowledge of Construction Quality and Builder Reputation
An agent also has expertise in the construction quality and reputation of different builders. They can give you insights into each one's track record, customer satisfaction, and construction practices. Armed with this information, you can choose a builder known for consistently delivering top-notch homes.
Assistance with Customization and Upgrades
The most obvious benefit of opting for new home construction is the opportunity to customize your home. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise helps make sure you focus your budget on areas that will give you the greatest return on your investment later.
Understanding Builder Negotiations and Contracts
When it comes to working with builders, having a skilled negotiator on your side can make all the difference. Builder contracts can be complex. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. Plus, agents are skilled negotiators who can advocate for you, potentially securing better deals, upgrades, or incentives throughout the process. As Realtor.com says:
“A good buyer’s agent will be able to review any contracts before you sign on the dotted line, ensuring you aren’t unwittingly agreeing to terms that only benefit the builder.”
Bottom Line
If you are interested in buying or building a new construction home, having a trusted agent by your side can make a big difference. If you'd like to start that conversation, let’s connect! Call me at 909-633-3714
2024-02-05T10:07:53-07:002024-02-05T10:19:44-07:00Gabby Taylortag:gabbytaylorgroup.com,2012-09-20:32571The Top Benefits of Buying a Multi-Generational Home
Has the idea of sharing a home with loved ones like your grandparents, parents, or other relatives crossed your mind? If so, you’re not alone. More buyers are choosing to go this route and buy a multi-generational home. Here’s a look at some of the top reasons why, to see if a home like this may be right for you too.
Why Buyers Are Opting for Multi-Generational Living
According to the National Association of Realtors (NAR), two of the top reasons buyers are opting for multi-generational homes today have to do with affordability (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240124/20230125-Reasons-To-Purchase-A-MultiGeneration-Home.PNG" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240124/20230125-Reasons-To-Purchase-A-MultiGeneration-Home.PNG" /></a>
First-time buyers are focused most on cost savings – with 28% saying this was a key reason for them. By pooling their resources with others, they can share financial responsibilities like mortgage payments, utilities, and more to make homeownership more affordable. This is especially helpful for those first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.
Buyers are also turning to multi-generational homes so they can more easily afford their dream home. Both first-time (28%) and repeat buyers (18%) chose to live with others so they could buy a larger home. When everyone chips in and combines their incomes, that big dream home with more space could be more within reach.
But multi-generational living isn’t just about the financial side of things. According to the same study from NAR, 23% of repeat buyers chose to buy a multi-generational home to make it easier to care for an aging parent. Many older adults want to age in place and a multi-generational home can help make that possible. For those older adults, it gives them an opportunity to maintain their quality of life while being surrounded by their loved ones. As Axios explains:
“Financial concerns and caregiving needs are two of the major reasons people live with their parents (and parents' parents).”
Lean on an Expert
Finding the perfect multi-generational home isn’t as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs to be considered. It's like solving a puzzle, and the pieces need to fit just right.
So if you're interested in the many benefits multi-generational living offers, partner with a local real estate agent who has the expertise to help.
Bottom Line
Whether your motives are financial or focused on the people you’ll share your home with, buying a multi-generational home may make sense for you. If you’re interested in learning more, let’s connect.
2024-01-29T08:36:55-07:002024-01-29T08:50:04-07:00Gabby Taylortag:gabbytaylorgroup.com,2012-09-20:25713Why Buying a Home Is a Sound Decision
If you’re <a href="https://www.mykcm.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/" rel="noopener noreferrer" target="_blank">thinking</a> about <a href="https://www.mykcm.com/2023/03/09/4-tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">buying</a> a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are <a href="https://www.mykcm.com/2023/03/20/whats-ahead-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">projected to do</a> in the coming years and how that could impact your investment.
This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the <a href="https://www.mykcm.com/2023/02/27/one-major-benefit-of-investing-in-a-home/" rel="noopener noreferrer" target="_blank">long-term</a> view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.
Home Price Appreciation in the Years Ahead
Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.
<a href="https://files.keepingcurrentmatters.com/content/images/20230321/20230327-estimated-national-price-performance-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230321/20230327-estimated-national-price-performance-MEM.png" /></a>
The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.
What Does This Mean for You?
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230321/20230327-potential-growth-in-household-wealth-hpes-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230321/20230327-potential-growth-in-household-wealth-hpes-MEM.png" /></a>
In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.
Bottom Line
According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a <a href="https://www.mykcm.com/2023/03/06/is-it-really-better-to-rent-than-to-own-a-home-right-now/" rel="noopener noreferrer" target="_blank">homeowner</a>, know that <a href="https://www.mykcm.com/2023/03/07/could-a-multigenerational-home-be-the-right-fit-for-you/" rel="noopener noreferrer" target="_blank">buying</a> today can set you up for long-term success as home values (and your own net worth) are projected to grow. <a href="https://www.mykcm.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">Let’s connect</a> to begin the homebuying process today.
2023-03-24T09:43:00-07:002023-03-24T09:46:08-07:00Michael Taylortag:gabbytaylorgroup.com,2012-09-20:253964 Tips for Making Your Best Offer on a HomeAre you planning to buy a home this spring? Though things are more balanced than they were at the height of the pandemic, it’s still a sellers’ market. So, when you find the home you want to buy, remember these four <a href="https://www.mykcm.com/2023/02/10/how-to-win-as-a-buyer-in-todays-housing-market-infographic/" title="tips">tips</a> to make your best offer.
1.Lean on a Real Estate Professional
Rely on an agent who can support your goals. As Bankrate <a href="https://www.bankrate.com/real-estate/how-to-make-an-offer-on-house/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“. . . select the best real estate agent for your needs. They will be a critical part of your home buying process.”
Agents are local market experts. They know what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out.
2.Know Your Budget
Understanding your <a href="https://www.mykcm.com/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/" title="budget">budget</a> is especially important right now. As Sandy Higgins, Senior Wealth Advisor at Capstone Financial Advisors, <a href="https://www.cnbc.com/2022/10/26/how-to-buy-a-home-in-a-cooling-market-according-to-top-ranked-advisors.html" title="puts" target="_blank" rel="noopener noreferrer">puts</a> it:
“Understand your current budget … what are your expenses, how’s your spending, would you need to make changes?”
The best way to understand your <a href="https://www.mykcm.com/2023/02/13/what-you-should-know-about-closing-costs/" title="numbers">numbers</a> is to work with a lender so you can get pre-approved for a loan. It helps you be more financially confident, and it shows sellers you’re serious. That can give you a competitive edge.
3.Think Through Everything Before Making an Offer
Today’s market isn’t moving at the record pace it did during the pandemic. That means you may have a bit more time to think before you need to make an offer. According to Danielle Hale, Chief Economist at <a href="https://www.realtor.com/advice/buy/homebuying-rules-youve-heard-lately-you-should-break/" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“In general, you likely have more time to make an offer, although that’s certainly not a guarantee. If you’re on the fence about a home or its asking price doesn’t quite fit your budget, you might want to keep an eye on it, and if it doesn’t sell right away, you may have some room to negotiate with the seller.”
While it’s still important to stay on top of the market and be prepared to move quickly, there can be more flexibility today. Lean on the advice of your agent as you explore the options in your market.
4. Work with Your Advisor To Negotiate
During the pandemic, some buyers skipped home inspections or didn’t ask for concessions from the seller in order to submit the winning bid on a home. Fortunately, today’s market is different, and you may have more negotiating power than before. When putting together an offer, your trusted real estate advisor will help you think through what levers to pull.
Bottom Line
When you buy a home this spring, let’s connect so you have the guidance to make your best offer.2023-03-10T09:52:02-07:002023-03-10T10:03:50-07:00Gabby Taylortag:gabbytaylorgroup.com,2012-09-20:25123Making Homeownership a RealityAccording to a recent Harris Poll survey, <a href="https://www.nerdwallet.com/article/mortgages/2023-home-buyer-report" title="8 in 10" target="_blank" rel="noopener noreferrer">8 in 10</a> Americans say buying a home is a priority, and 28 million Americans actually plan to buy within the next 12 months. Homeownership provides many financial and nonfinancial <a href="https://www.mykcm.com/2022/12/22/what-makes-a-house-a-home/" title="benefits">benefits</a>, so that interest is understandable.
However, it’s unlikely all 28 million Americans will accomplish that goal in the coming year. Experts <a href="https://www.mykcm.com/2022/12/16/2023-housing-market-forecast-infographic/" title="project">project</a> a total of around five million homes will be sold in 2023. Why is there such a big difference? It’s partly because there can be challenges to buying a home.
In the same survey, when asked, “Which of the following are preventing you from pursuing homeownership at this time?”:
34% answered, “I don’t have enough saved for a down payment”
30% answered, “My credit score”
If you’re aiming to buy a home, here’s what you need to know to accomplish that goal.
Save for Your Down Payment
Your <a href="https://www.mykcm.com/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/" title="down payment">down payment</a> is a big chunk of what you pay up front for your home. For most home purchases, buyers put down some amount of cash up front (a down payment) and then take out a loan (a mortgage) to pay for the rest.
It’s a longstanding myth that you need to pay 20% of the purchase price for your down payment. In reality, 20% down isn’t always required. In fact, according to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), today’s median down payment is 14% for the average buyer and just 6% for a first-time buyer.
Regardless of how much money you can save for your <a href="https://www.mykcm.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/" title="down payment">down payment</a>, know there’s help available. A local lender can show you <a href="https://downpaymentresource.com/" title="options" target="_blank" rel="noopener noreferrer">options</a> to help you get closer to your down payment goal. Plus, there are even loan types, like <a href="https://www.hud.gov/buying/loans" title="FHA loans" target="_blank" rel="noopener noreferrer">FHA loans</a>, with down payments as low as 3.5% for some buyers, as well as options like <a href="https://www.mykcm.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/" title="VA loans">VA loans</a> and <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program" title="USDA loans" target="_blank" rel="noopener noreferrer">USDA loans</a> with no down payment requirements for qualified applicants.
Beyond assistance programs and different loan types, <a href="https://www.nerdwallet.com/article/mortgages/payment-buy-home" title="here" target="_blank" rel="noopener noreferrer">here</a> are a few other tips to help you as you save for your down payment:
Remember to factor in closing costs. In addition to your down payment, <a href="https://www.mykcm.com/2023/02/13/what-you-should-know-about-closing-costs/" title="closing costs">closing costs</a> are usually 2-5% of the home’s purchase price.
Maintain your savings. Your down payment shouldn’t deplete all your savings. It’s important to still have some money set aside for homeownership expenses after you move in.
Explore your options and lean on your trusted advisor for expert guidance. Do your research, ask questions, and look into the resources available for buyers like you.
Improve Your Credit Score
Your credit score is a number that indicates how financially reliable you are to lenders. A higher credit score usually means you’ll be able to borrow more money at a better interest rate. If your credit score is preventing you from getting an affordable mortgage, there are steps you can take to improve it. Here are two:
Pay your bills on time. When you pay your bills on time, your credit score improves. When you’re late, it takes a hit. One way to make paying your bills on time easier? Set up automatic payments when and where you can.
Mix it up. From auto loans, to credit cards, to mortgages – there are several different types of credit. And having a mix of them improves your credit score.
2023-02-24T09:34:46-07:002023-02-24T09:37:52-07:00Gabby Taylortag:gabbytaylorgroup.com,2012-09-20:23392Key Advantages of Buying a Home TodayThere’s no doubt <a href="https://www.mykcm.com/2022/11/01/3-trends-that-are-good-news-for-todays-homebuyers/" title="buying a home">buying a home</a> today is different than it was over the past couple of years, and the shift in the market has led to advantages for buyers today. Right now, there are specific reasons that make this housing market attractive for those who’ve thought about buying but have sidelined their search due to rising mortgage rates.
<a href="https://www.mykcm.com/2022/12/01/what-you-want-to-know-if-youre-pursuing-your-dream-of-homeownership/" title="Buying a home">Buying a home</a> in any market is a personal decision, and the best way to make that decision is to educate yourself on the facts, not following sensationalized headlines in the news today. The reality is, headlines do more to terrify people thinking about buying a home than they do to clarify what’s actually going on with real estate.
Here are three reasons potential homebuyers should consider buying a home today.
1. More Homes Are for Sale Right Now
According to <a href="https://www.nar.realtor/topics/existing-home-sales" title="data" target="_blank" rel="noopener noreferrer">data</a> from the National Association of Realtors (NAR), this year, the <a href="https://www.mykcm.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/" title="supply of homes">supply of homes</a> for sale has grown significantly compared to where we started the year (see graph below):
<a href="https://files.mykcm.com/2022/12/06123756/the-supply-of-homes-for-sale-has-grown-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106173" src="https://files.mykcm.com/2022/12/06123756/the-supply-of-homes-for-sale-has-grown-MEM.png" alt="Key Advantages of Buying a Home Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/06123756/the-supply-of-homes-for-sale-has-grown-MEM.png 960w, https://files.mykcm.com/2022/12/06123756/the-supply-of-homes-for-sale-has-grown-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/06123756/the-supply-of-homes-for-sale-has-grown-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/06123756/the-supply-of-homes-for-sale-has-grown-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
This growth has happened for two reasons: homeowners listing their homes for sale and homes staying on the market a bit longer as buyer demand has moderated in response to higher mortgage rates.
The good news for you is that more inventory means more homes to choose from. And when there are more homes on the market, you could also see less competition from other buyers because the peak frenzy of competing over the same home has eased too.
2. Home Prices Are Not Projected To Crash
Experts don’t believe home prices will <a href="https://www.mykcm.com/2022/10/26/3-graphs-showing-why-todays-housing-market-isnt-like-2008/" title="crash">crash</a> like they did in 2008. Instead, <a href="https://www.mykcm.com/2022/12/06/whats-going-on-with-home-prices-ask-a-professional/" title="home prices">home prices</a> will moderate at various levels depending on the local market and the factors, like supply and demand, at play in that area. That’s why some experts are calling for slight appreciation and others are calling for slight depreciation (see graph below):
<a href="https://files.mykcm.com/2022/12/06131036/home-price-forecasts-for-2023-2-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106176" src="https://files.mykcm.com/2022/12/06131036/home-price-forecasts-for-2023-2-MEM.png" alt="Key Advantages of Buying a Home Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/06131036/home-price-forecasts-for-2023-2-MEM.png 960w, https://files.mykcm.com/2022/12/06131036/home-price-forecasts-for-2023-2-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/06131036/home-price-forecasts-for-2023-2-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/06131036/home-price-forecasts-for-2023-2-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
If you consider the big picture and average the expert forecasts for 2023 together, the expectation is for relatively flat or neutral price appreciation next year. So, if you’re worried about buying a home because you’re afraid home prices will crash like they did in 2008, rest assured that’s not what expert projections tell us.
3. Mortgage Rates Have Risen, but They Will Come Down
While <a href="https://www.mykcm.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/" title="mortgage rates">mortgage rates</a> have risen dramatically this year, the rapid increases we’ve seen have <a href="https://www.freddiemac.com/pmms/archive" title="moderated" target="_blank" rel="noopener noreferrer">moderated</a> in recent weeks as early signs hint that inflation may be easing slightly. Where they’ll go from here largely depends on what happens next with inflation. If inflation does truly begin to cool, mortgage rates may come down as a result.
When that happens, expect more buyers to jump back into the market. For you, that means you’ll once again face more competition. Buying your house now before more buyers reenter the market could help you get one step ahead. As Lawrence Yun, Chief Economist for NAR, <a href="https://twitter.com/NAR_Research/status/1597970968298782720?s=20&t=RM8XMxPm_1ZkD0xfSe4N6Q" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
When mortgage rates come down, those waiting on the sidelines will jump back in. Your advantage is getting in before they do.
Bottom Line
If you’re thinking about buying a home, you should seriously consider the advantages today’s market offers. Let’s connect so you can make the dream of homeownership a reality.
2022-12-07T10:31:18-07:002022-12-07T10:42:11-07:00Michael Taylortag:gabbytaylorgroup.com,2012-09-20:23171Multigenerational HouseholdsMore People Are Finding the Benefits of Multigenerational Households Today
If you’re thinking of buying a home and living with siblings, parents, or grandparents, then multigenerational living may be for you. The <a href="https://www.pewresearch.org/fact-tank/2022/07/20/young-adults-in-u-s-are-much-more-likely-than-50-years-ago-to-be-living-in-a-multigenerational-household/" title="Pew Research Center" target="_blank" rel="noopener noreferrer">Pew Research Center</a> defines a multigenerational household as a home with two or more adult generations. And the number of individuals choosing multigenerational living has increased over the past 50 years.
As you consider this option for your own home search, know it could help you on your <a href="https://www.mykcm.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/" title="homeownership journey">homeownership journey</a> and provide you with other incredible benefits along the way.
Living with Loved Ones Could Help You Achieve Your Homeownership Goals
There are several reasons people choose to live in a multigenerational household, and for many, the arrangement is a personal one. But according to the <a href="https://www.pewresearch.org/social-trends/2022/03/24/financial-issues-top-the-list-of-reasons-u-s-adults-live-in-multigenerational-homes/" title="Pew Research Center" target="_blank" rel="noopener noreferrer">Pew Research Center</a>, the top reason people choose to live together today is financial.
A <a href="https://www.freddiemac.com/research/insight/20220908-co-borrowing-rise-first-time-homebuyers" title="recent study" target="_blank" rel="noopener noreferrer">recent study</a> from Freddie Mac also finds more people are choosing to buy a home together so they can save money in the homebuying process. As the study says:
“. . . an increasing percentage of young adult first-time homebuyers are relying on support from older generations, including their parents, to buy a home together.”
For these individuals, combining their resources can help them achieve their dream of buying and owning a home. By pooling their incomes together to make that purchase, they may be able to afford a home they couldn’t on their own.
Other Key Benefits of Multigenerational Living
Not to mention, living in a home with loved ones can have other benefits too, like giving you more quality time to spend together. Darla Mercado, Certified Financial Planner and Markets Editor for CNBC.com, <a href="https://www.cnbc.com/2022/10/19/multigenerational-hispanic-households-feel-rising-economic-pressure.html" title="explains" target="_blank" rel="noopener noreferrer">explains</a> how this living arrangement can help on a <a href="https://www.mykcm.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/" title="personal">personal</a> and financial level:
“Residing with relatives can offer advantages . . . you can pool multiple streams of income, for instance. And in households with young children, grandparents can pitch in with child care.”
If this sounds like a great option for you, it’s important to work with a trusted real estate professional to discuss your needs. They can help you navigate the process to find the right home for you and your loved ones.
Bottom Line
More people are discovering the benefits of multigenerational living. For the best information and help deciding what’s right for your personal situation, let’s connect and start the conversation today.
2022-11-23T10:13:52-07:002022-11-23T10:24:03-07:00Gabby Taylortag:gabbytaylorgroup.com,2012-09-20:23056It May Be Time To Add A Newly Built Home to Your SearchWhy It May Be Time To Add Newly Built Homes to Your Search
If you put a pause on your home search because you weren’t sure where you’d go once you <a href="https://www.mykcm.com/2022/11/02/sell-your-house-before-the-holidays/" title="sold your house">sold your house</a>, it might be a good time to get back into the market. If you’re willing to work with a trusted agent to consider a newly built home, you may have even more options and incentives than you realize. That may be why the National Association of Home Builders (NAHB) <a href="https://www.builderonline.com/data-analysis/share-of-buyers-looking-for-new-construction-homes-continues-to-increase_c" title="says" target="_blank" rel="noopener noreferrer">says</a> the share of buyers looking for new construction is increasing:
“According to the quarterly Housing Trends Report, the popularity of new construction homes is continuing to rebound . . .”
Here’s a few reasons more buyers may be drawn to newly built homes.
More Options To Choose from and Potential Builder Incentives
When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the inventory of existing homes has increased this year, it’s still <a href="https://www.calculatedriskblog.com/2022/11/housing-november-14th-weekly-update.html" title="below" target="_blank" rel="noopener noreferrer">below</a> more typical years like 2019. Currently, according to the National Association of Realtors (NAR), there is a <a href="https://www.nar.realtor/newsroom/existing-home-sales-decreased-1-5-in-september" title="3.2-month supply" target="_blank" rel="noopener noreferrer">3.2-month supply</a> at the current sales pace. For reference, a roughly 6-month supply is considered a balanced market, leaving us in a sellers’ market today.
While it’s a smaller segment of the overall inventory of homes for sale, the supply of newly built homes has grown even more. The National Association of Home Builders (NAHB) <a href="https://eyeonhousing.org/2022/10/new-home-sales-fall-back-in-september/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“New single-family home inventory remained elevated at a 9.2 months’ supply (of varying stages of construction). A measure near a 6 months’ supply is considered balanced.”
Here’s why this matters for you. While you have more homes to choose from in either category, there’s one extra benefit of newly built homes. Because the inventory of newly built homes has grown so much, builders are motivated to sell their properties before they build more.
Back in the housing <a href="https://www.mykcm.com/2022/10/26/3-graphs-showing-why-todays-housing-market-isnt-like-2008/" title="crash of 2008">crash of 2008</a>, builders were building too many homes, and that oversupply is part of what contributed to the housing bubble bursting. Now, builders don’t want to have a surplus of inventory in their pipeline, and many are offering buyers incentives to help move that inventory along. As Doug Duncan, Chief Economist at Fannie Mae, <a href="https://www.builderonline.com/data-analysis/new-home-sales-decline-10-9-in-september_o" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . a continual increase in the number of completed homes available for sale is now occurring, with the inventories of such homes now at the highest level since July 2020. . . . This suggests to us that builders may be increasingly willing to offer more aggressive incentives and discounts to maintain sales of completed inventory.”
While specifics will vary by builder and market, some buyers are seeing builders reduce prices and offer incentives. To find out what’s available in your area, lean on a trusted real estate professional.
Lifestyle Benefits of Buying a Newly Built Home
In addition to more supply and the potential for builder incentives, newly built homes have various benefits that may suit your lifestyle. For example, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. That can free up time for you to do other things you’re passionate about.
Another perk of a new home is that nothing in the house is used. It’s brand new and uniquely yours from day one. You’ll have all new appliances, windows, roofing, and more. These things can help lower your energy costs, which can add up to significant savings over time. You may even have the latest and greatest technology features built into your new home.
Builder <a href="https://www.builderonline.com/design/technology/what-drives-new-homebuyers-to-buy-new-build-homes-instead-of-existing" title="sums" target="_blank" rel="noopener noreferrer">sums</a> up why some buyers today are turning to newly built homes:
“For some, it’s the lure of something new and modern. For others, it’s the move-in ready experience. And now there’s another factor to consider when making this decision: technology.”
If any of these benefits appeal to you, it’s time to connect with a trusted real estate advisor to learn more.
Bottom Line
If you’re considering a newly built home, let’s connect so you have an expert guide on what’s available in our local market. Together we’ll explore your options and the benefits of an all-new home.
2022-11-16T14:04:14-07:002022-11-16T15:27:09-07:00Gabby Taylortag:gabbytaylorgroup.com,2012-09-20:22204Why You Should Consider Condos as Part of Your Home Search
<img src="https://assets.site-static.com/userfiles/3099/image/20220928-KCM-Share.jpg" width="750" height="410" />
The historically low inventory over the past few years led to challenges for many buyers trying to find a home that met their needs and their budget. If you’re in the same boat, you should know the recent shift in the housing market may have opened up doors for you to restart your search.
The inventory of homes for sale <a href="https://www.mykcm.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/" title="has increased">has increased</a> this year, and that’s giving buyers much needed options. As Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-sep-10-2022/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . today’s shoppers have more than 5 homes to consider for every 4 they had at this time a year ago.”
But perspective is important. Overall, housing supply is still low. If you need even more choices, <a href="https://www.mykcm.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/" title="expanding your search">expanding your search</a> by adding additional housing types, like condominiums, could help.
Exploring Condos Could Add Options That Fit Your Budget
One thing to consider is condos generally differ from single-family homes in average space and floorplans. But that size difference is one reason why condos can be a more affordable option. According to a <a href="https://www.realtor.com/research/2022-condo-affordability/" title="recent report" target="_blank" rel="noopener noreferrer">recent report</a> from realtor.com, condo buyers paid roughly 7% less for their home than buyers of other housing types last year. With rising mortgage rates and home prices, the relative affordability of a condo could be worth considering.
Remember, your first home doesn’t have to be your forever home. The important thing is to get your foot in the door as a homeowner. Buying a condo now can springboard you into a bigger home later on. An <a href="https://www.urban.org/urban-wire/housing-market-needs-more-condos-why-are-so-few-being-built" title="article" target="_blank" rel="noopener noreferrer">article</a> from the Urban Institute explains:
“Because condos and co-ops are generally more affordable, they tend to help first-time homebuyers step onto the first rung of the homeownership ladder. These buyers often use the equity on their condo to then purchase a larger single-family home.”
In other words, owning a condo will help you start <a href="https://www.mykcm.com/2022/09/06/how-owning-a-home-builds-your-net-worth/" title="building wealth">building wealth</a> in the form of home equity. In time, the <a href="https://www.mykcm.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/" title="equity">equity</a> you build can fuel a future purchase should you decide you want to buy a home with more space or different amenities.
Condo Living Provides Several Great Perks
Boosting the number of options in your budget during your home search is just one reason to consider condos, but there are several other benefits to condo living.
First, they tend to require minimal upkeep and lower maintenance – and that can give you more time to spend doing the things you enjoy. A recent article from Bankrate highlights this, <a href="https://www.bankrate.com/real-estate/buy-house-condo-townhouse-apartment/" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Condos can be a good option for anyone who wants to keep home maintenance to a minimum . . . if the roof is leaking or the carpet in the lobby needs to be replaced, that’s not your responsibility — the condo association handles those duties.”
Plus, since many condos are located in or near city centers, they offer the added benefit of being in close proximity to work and leisure. Again, realtor.com <a href="https://www.realtor.com/research/2022-condo-affordability/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Buying a condo, which is generally less expensive than a single-family home, enables a household to afford to own in the middle of it all, and often means a newer-built home with less maintenance responsibility.”
Ultimately, owning and living in a condo can be a lifestyle choice. And if that appeals to you, they could give you the added options you need to buy your first home.
Bottom Line
Adding condominiums to your housing search could be a great move. If you’re ready to search condos in our area, let’s connect today.2022-09-29T12:25:00-07:002022-10-10T13:53:30-07:00Michael Taylortag:gabbytaylorgroup.com,2012-09-20:13575Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/3099/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2021-04-15T07:39:00-07:002021-04-15T07:50:23-07:00Michael Taylortag:gabbytaylorgroup.com,2012-09-20:13577Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/3099/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2021-04-15T07:39:00-07:002021-04-15T07:50:16-07:00Michael Taylor