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Showing posts from August, 2020

What Are Experts Saying about Home Prices?

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If you own a home you might be interested in knowing where home prices are predicted to go. Read on to learn what the experts are saying. As always we are happy to answer any questions you have about your current mortgage or a future purchase. Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months. CoreLogic, in their latest Home Price Index said: “The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.” The forecast was surprising as it was strikingly different than any other projection by major analysts. Six of the other eight forecasts call for appreciation, and the two who project depreciation indicate it will be one percent or less. Here is a graph showing all of the projections: There’s a simple formula to determine the future price of any item: calculate the supply of that item ...

Closing Costs Explained

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You may be in the early stages of searching for a home, but it’s never too soon to prepare for the closing! Let’s jump ahead and take a look at what that entails. In the meantime, we are here to get you pre-approved, too! The closing is the final step of the home buying process. Once everything has been cleared by the underwriter, the closing department and the title company will work together to get your Closing Disclosure (CD) ready to be signed at closing. Your Closing Disclosure details all of the financial pieces of the transaction for you as the buyer; it may also show credits the seller is giving (if applicable). What are closing costs? Closing costs are the expenses incurred by buyers and sellers for the services of various real estate and lending related professionals when transferring ownership of a property. These expenses normally include an origination fee, property taxes, title insurance, escrow costs, appraisal fees, etc. Closing costs can be thousands of dollars and will ...

Give your offer a competitive edge

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  The 2020 housing market will continue to be competitive, with rates and inventory remaining low. Be sure you understand the various options available to you to strengthen your offer. This may be the difference that gets you into your dream home. Escalation Clause : An escalation clause states that the buyer is willing to outbid other offers by a certain amount up to a capped price. Both agents and the seller need to understand the clause and how it works. Be sure other offers are legitimate (bona fide). The increase needs to be realistic, especially if there are other important issues for sellers to negotiate, for example the closing date. Don’t forget the appraisal, if it comes in too low that could create other problems. Hire a Home Inspector : More frequently, buyers are hiring a home inspector for the day to attend open houses with them. The benefit is buyers may decide to waive inspection contingencies, making for a stronger offer. Waiving Mortgage Contingency : By waiving t...

Your dream home in 2020

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Due to low interest rates, many people are hoping to refinance this year, and we are available to have a conversation with you about your options. We are also seeing an increase in home purchases, creating opportunities for those looking to sell. We are happy to talk through scenarios with you anytime. Mud rooms turned into sanitizing stations, larger than ever kitchens, actual home offices, hands-free technology and “delivery stations” are just some of the amenities buyers want in a home right now, according to Jean Chatzky’s Her Money blog. In our inventory starved market, none of these should be deal breakers for a home sale locally. There are some interesting ideas that could make a home more attractive to a buyer perhaps increasing value, or as upgrades to make your current home more accommodating for you now. Which of these updates are most appealing to you? Any you would invest in adding to your home for yourself? Let us know! We have a variety of Home Renovation loans that may ...