Don’t Let Your Dream Home Get Away!

Don’t Let Your Dream Home Get Away!

Ready to buy the house of your dreams?

It doesn’t matter if you have already started doing the due diligence or if you are unsure of the market. Making an offer is a pivotal point in the house buying process.

Let’s look at some things that’ll help you make a compelling offer and up your chances of getting that home your heart is set on!

 

Do Comprehensive Research

 

Nothing is more important than identifying the most vital aspects of the house, especially if you are buying the house with your partner. Do this even before you start looking for houses. In a hot market, it is a truism that you will probably not get the time needed to adequately investigate whether or not the house is near a good school district or make up your mind regarding how many bedrooms you would like to have. If you are interested in a house, sit together and jot down everything that is important to you.

 

Being crystal clear about your criteria is curial before stepping into the market. Keep in mind that you should also establish the factors you are willing to work around or be more flexible with. Doing so will provide you with a sense of clarity; you won’t be surprised by anything when you start making offers. And it will certainly minimize much of the stress that comes along with buying the house of your dreams.

 

Convince the Seller Why You Want to Buy Their House

 

Yes, it is absolutely vital to be personal about it. You see, selling a house can be just as stressful as buying one. And sellers would very much like to know whether or not they are giving their house to the right family.

 

It couldn’t hurt to write a personal letter to the sellers, explaining what their house means to you. Assure them that they are indeed passing it on in the right hands and that you will most certainly take care of it. When it comes to multiple offers, this a very good way to make yours stand out of the rest.

 

Look for an Experienced and Skilled Real Estate Agent

 

There is no question a qualified and experienced real estate agent must have a broad know-how of the housing market. And this includes the market for the types of dream houses you are looking for and what the prices are. The real estate professional representing you must be sincerely proactive.

 

They must understand your needs down to a personal level and must be an excellent communicator. Do not rely on the first couple of recommendations made by your friends and family. Do some vetting on your own and select one that truly reflects your perspectives.

 

Make Sure Your Seller Know You Can Afford the House

 

This is another important factor when preparing to make an offer. You have to know how much financing you can possibly get. In a fast moving market, you have to be able to convince the seller that you have the necessary financing required to make the purchase; they will not just take your word for it.

 

The best thing to do to save time on this is to ask your real estate agent to print an attested and verified letter of approval on part of your lender. The letter will contain information on how much financing the lender has approved.

 

Keep the Lender on Call

 

Sure, the approval letter is ample proof that you have the financing necessary to go ahead with the purchase. However, there may be a couple of sellers who would prefer hearing it from the lender.

 

That is why it’s vital to keep your real estate agent in the loop. Ask them to have the loan consultant talk to the seller agent, reassuring them that there will not be a financing complication.

 

 

So, there you go – these tips will help you make a compelling offer to secure your dream home. Of course, having a great real estate professional on your side is always a good idea. Go ahead and make an offer they can’t refuse and settle in in your dream home!

 

 

 

 

 

 

 

Is Renting Right for Me?

Is Renting Right for Me?

Is Renting Right for Me?

If you’re currently renting on Long Island and have dreams of owning your own home, it may be a good time to think about your next move. With rent costs rising annually and many helpful down payment assistance programs available, home ownership may be closer than you realize.

According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years.

When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. The results of the survey can be seen here:Is Renting Right for Me? | MyKCMIt’s no wonder rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years, as you can see below.Is Renting Right for Me? | MyKCMThere is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again, it’s never a bad idea to reconsider your family’s plan and ask yourself if renting is your best angle going forward. When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”

The reality is, the need to produce a 20% down payment is one of the biggest misconceptions of home ownership, especially for first-time buyers. That means a large number of renters may be able to buy now, and they don’t even know it.

Bottom Line

If you’re one of the many Long Island renters who are tired of rising rents but may be confused about what is required to buy in today’s market, let’s get together to determine your path to home ownership.

The Cost of Waiting: Interest Rates Edition

The Cost of Waiting: Interest Rates Edition

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC]

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Heading into 2020, interest rates are projected to increase steadily.
  • The more money you will end up paying for your home and the higher your monthly payment will be, the higher your interest rate.
  • Rates are still low right now so don’t wait until they hit 5% to start searching for your dream home!
The Ultimate Truth about Housing Affordability

The Ultimate Truth about Housing Affordability

The Ultimate Truth about Housing Affordability

There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.

On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…

“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Their methodology states:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

So, the higher the index, the more affordable it is to purchase a home. Here is a graph of the index going back to 1990:

The Ultimate Truth about Housing Affordability | MyKCM

It is true that the index is lower today than any year from 2009 to 2017. However, we must realize the main reason homes were more affordable. That period of time immediately followed a housing crash and there were large numbers of distressed properties (foreclosures and short sales). Those properties were sold at large discounts.

Today, the index is higher than any year from 1990 to 2008. Based on historic home affordability data, that means homes are more affordable right now than any other time besides the time following the housing crisis.

With mortgage rates remaining low and wages finally increasing, we can see that it is MORE AFFORDABLE to purchase a home today than it was last year!

Bottom Line

With wages increasing, price appreciation moderating, and mortgage rates remaining near all-time lows, purchasing a home is a great move based on historic affordability numbers.

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