Home Buyers are Optimistic About Homeownership!

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Home Buyers are Optimistic About Homeownership! | MyKCM

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.

Why Access Is One of the Most Important Factors in Getting Your House Sold!

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Why Access Is One of the Most Important Factors in Getting Your House Sold! | MyKCM

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you through the entire process, and they have asked you what level of access you want to provide to your potential buyers.

There are four elements to a quality listing. At the top of the list is access, followed by condition, financing, and price. There are many levels of access that you can provide to your agent so that he or she can show your home.

Here are five levels of access that you can give to buyers, along with a brief description:

  1. Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
  2. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
  3. Open Access with a Phone Call – the seller allows showings with just a phone call’s notice.
  4. By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
  5. Limited Access (example: the home is only available on Mondays or Tuesdays at 2 pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.

With more competition coming to the market this spring, access can make or break your ability to get the price you are looking for, or even sell your house at all.

Here’s Everything You Need To Know About Mortgage Pre-approval

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Even if you’re not in a competitive real estate market where you need to do everything to stand out, a mortgage pre-approval is your key to understanding your budget, help you speed up the process, and prove to the real estate world that you are serious about buying your dream home.

Here we’ve laid out everything you need to know about getting pre-approved, how long is your mortgage pre-approval good for, and what should you do if your pre-approval will soon come to an end. Heed these tips before even thinking of house-hunting so sellers will know you’re on top of your game!

Before starting your search, your first step should be to prove that you have the financial capability to purchase a home. In the pre-approval process, the lender reviews your loan application and your finances to determine whether you will qualify for a mortgage. They will have a preliminary examination of your credit, employment, income, assets, monthly debts, and other financial information.

Since the pre-approval letter will also indicate the actual loan amount you qualify for, you should use that as your guide when shopping for a home because your lender will only let you borrow up to that certain amount.

When you found a home you want, your real estate agent will submit the pre-approval letter together with your offer to the seller. This will prove to the seller that you are serious about buying and can obtain a mortgage.

Buying a house does take time. Your home search and loan approval process could go on for weeks, even months, before you could actually close the deal and get the keys to your home. If your journey to being a homeowner actually took a long cut, will your pre-approval letter still be valid by the time of your purchase?

While there is no definite duration for the validity of the mortgage pre-approval letter, in general, it is typically good for 60 to 90 days or about three months. Still, the actual time frame is indicated in your letter. So if you need a longer time frame, you have to ask for it beforehand.

However, many lenders and sellers may consider your letter too old after three months. Yes, making a decision as huge and remarkable as buying a home shouldn’t be put into such a short timeframe. However, your financial situation can change anytime within that three-month period. Lenders could have a hard time trusting you if your letter is more than a few months old because you could’ve done things that hurt your DTI and credit, like losing your job or buying a car. There is an expiration date to ensure the potential borrower has excellent DTI from the start until the end of his or her homebuying journey.

Also, the expiration date lenders placed on your pre-approval letter acts as a hastening mechanism so you can choose a home before the interest rate indicated in your letter goes up. It prevents you from taking a leisurely stroll through open houses for weeks and extending the buying process.

If your house-hunting journey is taking a bit longer than planned and your pre-approval letter is about to expire, you’ll likely need to renew it. However, there’s no need to go through all the trouble of applying all over again. Just take it back to your lender, together with your updated financial statements and pay stubs to show there’s been no change to your income, debts, or credit scores.

And since pre-approval letters are only valid for a certain period, it might be best to only get it when you’re already serious about looking for a home.

When you’re applying for a mortgage, having one or two checks on your credit report will indeed temporarily lower your credit score. It can lower your score for a few points, depending on your initial score and the number of payments you’re making, but it shouldn’t be significant. The problem comes when the hard checks or inquiries on your FICO score raise too many flags, which could get you disqualified from getting a loan.

If you don’t want the pre-approval process to cause any significant stress to your credit report, you can pull a soft report or a soft inquiry. Unlike hard checks, it won’t affect your credit score and you can use it as reference. Since soft inquiries are only visible to you, if you found out your score is lower than 620, it might be best to hold off purchasing a house for now and do the necessary steps to improve your score.

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Why Choose The Nelson Team?

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Ever wonder ???? what The Nelson Team does when it comes to selling a home? ???? Here is a sample of what we do for our clients to make sure they get the highest sales price ???? and are taken care of throughout the process! ???? #tntre #denverlivinghomes

Zeppelin Station & RiNo Art District

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The Nelson Team checks out the newly open Zeppelin Station in the heart of the fast growing RiNo Art District near downtown Denver. Located at the foot the new A-Line light rail station at 38th and Blake. Zeppelin station is home to a collection of innovative chefs, merchants, and creative companies.
 

Tips for a Better Home Appraisal

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If you’re buying a home or refinancing, an important part of the loan process is the home appraisal. The home appraisal determines the value of your home and plays a significant role in how much a lender is willing to lend you for your home financing. The Nelson Team is here to help with some key tips on how to get the most out of your home appraisal!

6 Home Design Trends of 2018

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Whether you are designing a new home or looking to renovate a room in your current house, The Nelson Team shares 6 home design trends to watch in 2018.

Making Your Renovation Count

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At some point in time, homeowners look to make improvements to their homes. Regardless of the reason, making smart decisions on what to renovate and when can not only make a home feel fresh and new, but increase the value and ability to sell. Watch the video and take a look at the additional information below to learn more about the costs of renovating and the life expectancy around the home. The handy infographics below were created by Glotech Repairs.

 

1. Kitchen Renovation

Kitchens are often referred to as the ‘heart of the home’. They are a gathering place for families and a place where a good amount of time is spent. When planning a kitchen renovation, think about the materials you would want for the next decade and if your budget doesn’t allow for certain materials today, think about placeholders. As an example, instead of installing a granite countertop right now, select a laminate that looks similar at half the cost until you can afford the upgrade.

Average Kitchen Renovation Costs – $20,000

Average Return on Investment – $18,000 or 87%

 

 

2. Window Replacement

Windows provide more functionality to a home than just letting in sunlight or allowing you to spy on the neighbors. During the winter, they can help hold in heat from the sun shining through. On the other hand, drafty windows can increase your energy bills by 10% to 25%, according to Energy.gov, Replacing old windows with new energy-efficient ones can reduce your heating and cooling bills and increase home value.

Average Window Replacement Costs – $15,000

Average Return on Investment – $11,000 or 72%

 

 

 

3. Bathroom Renovation

Even though bathrooms are usually among the smallest rooms throughout a home, fully renovating them is anything but a small task. In some instances, getting rid what’s there may require tearing out dusty plaster, concrete, and cast iron which might uncover any number of problems. And the design process during rebuild may have as many choices as redoing the kitchen. However, a newly renovated bathroom can help a home feel more luxurious and entice potential buyers. 

Average Bathroom Renovation Costs – $18,000

Average Return on Investment – $11,000 or 61%

 

 

4. Basement Renovation

Finishing a basement can significantly increase home value for owners and potential buyers. Unfinished basements are blank canvases, allowing freedom to add a bathroom, create recreation space or even an additional bedroom.

Average Basement Renovation Costs – $69,000

Average Return on Investment – $44,000 or 64%

 

 

5. Additional Renovations Around the Home

If you are starting a new renovation or searching for help with an existing project, reach out to us by contacting us above and we can guide you through the process. If we didn’t touch on the room in your home you are renovating, don’t worry, here are the additional graphics created by Glotech Repairs!

 

5 Tips to Prepare Your Home to Sell

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When buying or selling a home, there can often times be issues that are uncovered during the inspection process. In order to avoid surprises and insure your home is ready to sell, we recommend addressing five items that commonly cause home sales to fall through.

 

1. Have the Sewer Line Inspected

 

More often than not, homeowners neglect their sewer lines and are completely unaware of their condition. By hiring a licensed professional to inspect the lines, you can rest assured your sewer lines are free from any cracks, tree root intrusion, or other possible issues.

 

2. Check Your Roof for Damage

 

Along with sewer lines, your home’s roof is a big ticket item that buyers are concerned with. With hail storms in Colorado, it is always best to have your roof inspected for damage as soon as possible. Damage that is unattended to can lead to more severe issues and a more costly repair.

 

3. Inspect the Electrical Wiring Throughout Your Home

 

Newer homes typically don’t have issues with proper wiring, however, older homes built between the 1920’s and 1950’s may have older wiring that has yet to be updated. If this is the case, the wiring must be brought up to code in order to handle the higher voltage modern appliances.

 

4. Make Sure Your HVAC Systems Are in Good Condition

 

HVAC systems include your furnace, air conditioner, evaporative cooler, and water heater. Having these essential components inspected before selling your home will give you and potential buyers peace of mind knowing everything is in working order.

 

5. Test Your Home’s Radon Levels

 

Colorado has higher levels of radon gas than other parts of the country. If the levels in your home are high, installing a radon mitigation system will be required to ensure your safety and the safety of your buyers.

 

By having these five items inspected before selling your home, you can eliminate some of the headaches and surprises that popup throughout the process, give potential buyers better piece of mind, and you more negotiating power having taken care of these beforehand.

If you are currently preparing to sell your home or would just like to have these items inspected. Please reach out to us and ask for our recommended inspectors by contacting us above!