Some Highlights From The Report:
•80% of all pre-retirees in the South Atlantic region plan to stay there in retirement
•4 out of 10 pre-retirees plan to relocate in retirement
•Retirees in the South Central Region are most satisfied with their Cost of Living
5 Tech Questions that Seniors Should Ask When Interviewing a Real Estate Agent
If you have not bought or sold a home in a few years (or maybe decades) it is likely that there are more than a few new trends in real estate that you will encounter as you begin to interview real estate agents.
One particular trend now common among many real estate brokerage firms is called the practice of “going paperless.” This can be a bit scary for some people, especially senior adults who are not accustomed to using computers in their personal or professional lives.
If you are one of the many with reservations about the paperless process, you will want to talk with your agent about any concerns or questions you have. In this article we have provided some basic information about the paperless process and some key questions to ask your real estate agent.
How your agent handles your questions may just help you determine if he or she is the right agent for you!
What does it mean to go paperless?
Going paperless simply means that instead of printing out every contract, form or disclosure for your signature, you may be asked to sign certain documents electronically.
This could mean:
- Typing your name into a designated field included in a form (received via email)
- Signing your name on a digital touchpad (laptop, netbook, smartphone, etc.)
While some have experienced this type of technology before and are perfectly willing and comfortable using it, others are not. Frankly, the first time I was asked to sign a real estate document electronically via email I was a bit perplexed and required some guidance.
If you have not been exposed to this type of technology, it can seem a little overwhelming, especially if introduced to it in the midst all of the other things going on during a move. This is why it’s important to educate yourself on the front end, mitigating potential delays, avoiding unnecessary frustration, and preventing surprises down the road.
Here are 5 simple questions you should ask before you ‘sign on the dotted line’
1. How do you typically communicate with your clients (phone, email, text, instant messaging, etc.)?
Good agents know that the best method (and frequency) of communication is the one that best serves the client, so getting this agreed upon early in the relationship is paramount — for both you and the agent.
If you want to communicate strictly by phone, be sure that you and your agent agree on the protocols for leaving and returning messages, hours of availability, and which phone numbers are best for certain times of day. Similar discussion around email, text messaging, and other modes of communication should be had as well, if that is your desired method of information delivery.
2. What method(s) do you use for getting client signatures?
The goal here is to find out your options. Many agents are still in the conversion process of going paperless and they are more than willing to use “more conventional” methods of getting signatures.
Some may be required, however, by their respective brokerage firms to utilize only paperless systems. If this is the case, ask the agent to show you examples of the types of things that may be asked of you during the course of working together.
If after a quick tutorial, you aren’t comfortable with the electronic signature process, it’s “OK” to choose an agent who can better accommodate your preferences.
3. Can you assess my devices to insure they are compatible with the systems you use?
Even if you are completely prepared to enter the paperless world with no reservations whatsoever, it can only be done if you have the right equipment. Before agreeing to a paperless process, ask the agent to do a “test run” using a non-official/non-binding document on your system to insure its functionality.
4. Will you provide technical support if I am not “techy” and need some help?
My dad (self described “non-techy” and proud of it), has a computer, printer, smart phone, email address, and wifi. He does not, however, have the faintest idea how they work or how to pull up attachments in his email.
When he decided to purchase a new home this past year using a reverse mortgage, the lender was located out of state, which meant everything was done via email — electronically. Needless to say, I was dad’s tech support in this situation. If you do not have a trusted advisor who can help you with troubleshooting potential technology issues, make sure your agent or their staff is capable, patient, and willing to personally walking you through the steps.
5. Are you flexible if I choose to use phone and paper over electronic communication and documentation?
Options are the key. While some agents are extremely flexible in how they deliver their services, others may be married to a very specific process or style. Insure the agent you are considering is willing and able to do what is right for you, based on your comfort level, knowledge, and ability.
Bottom Line
It goes without saying that I will always clarify my paperless processes and communication methods.
Not only will doing so put your mind at ease regarding unfamiliar territory, but it may also provide me with the necessary information so that I can serve you more effectively.
This Advice on Homeownership Hasn’t Changed in 200 Years
Last month, we reported that billionaire John Paulson believes in the financial advantages of homeownership. He has often repeated:
“I think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you’re the owner-occupier of.”
However, he has not been the only billionaire to give such advice. As a matter of fact, that same advice has been given by people of wealth throughout the history of our nation.
Here is a quote often attributed to Theodore Roosevelt, 26th President of the United States and billionaire real estate developer:
“Every person who invests in well-selected real estate … adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
Andrew Carnegie, one of the richest entrepreneurs in American history said:
“90% of all millionaires became so through owning real estate.”
Bottom Line
If the same advice has been given by the wealthiest people in each era of our country’s history, perhaps we should take it.
The Deal of the Century??
Recently, Freddie Mac published a blog post titled Mortgage Rates: Still the Deal of the Century. They explained that, if you are planning to purchase a home, now may be the time:
“If you are in the market to buy a home, today’s average mortgage rates are something to celebrate compared to almost any year since 1971.”
And they let their readers know that there is no guarantee that rates will remain this low:
“Over the past few years, we’ve enjoyed a long run of historically low mortgage rates. While no one expects them to change dramatically overnight, they are expected to head up. Most experts agree that mortgage rates will drift up in the coming months to end the year approaching 4.50%… Buying a home is a big investment – perhaps the biggest one you’ll make in your life. So, it’s important to be sure you are ready to make that purchase. If you are ready, today’s rates are not to be missed.”
The article went on to calculate what the principal and interest payment would be based on a $200,000 fully amortizing mortgage at different times in history.
Here is a look at rates over the decades:
Here is a look at rates over the last four years and what Freddie Mac projects for next year:
Bottom Line
If you are thinking of buying your first home or looking to move up to your dream home, now may be the time to do it.
There’s No Place Like Home
Last week, we reported on the financial reasons purchasing a home in today’s market makes sense. The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.
The top 4 reasons to own a home cited by respondents were not financial.
1. It means having a good place to raise children & provide them with a good education
From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase.
2. You have a physical structure where you & your family feel safe
It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.
3. It allows you to have more space for your family
Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list.
4. It gives you control over what you do with your living space, like renovations and updates
Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?
The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents:
5. Owning a home is a good way to build up wealth that can be passed along to my family
Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future?
Bottom Line
Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home.
Existing Home Sales Skyrocket!
Home Sales Skyrocketing!!
Yesterday, the National Association of Realtors (NAR) released their Existing Home Sales Report. The numbers shocked many analysts as they revealed a 10.4% increase over the same month last year.
This is the highest number of sales since September 2013. Sales have increased year-over-year for six consecutive months and the 10.4% increase is the highest annual increase since August 2013. March’s sales increase was the largest monthly increase since December 2010.
Lawrence Yun, NAR’s chief economist, explained:
“After a quiet start to the year, sales activity picked up greatly throughout the country in March. The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years.”
Here is a graph showing home sales so far this year:
An increase in sales occurred in every region of the country even the Northeast that experienced one of their roughest winters in years:
Bottom Line
Houses are flying off the shelves. This may be the perfect time to sell yours. If you would like a better idea of what your home may be worth in today’s market, I would be happy to provide a more in depth look.
We Need You(r House)!!
Though the real estate market has improved, we still have one item holding it back from a full recovery – a robust supply of homes for sale. Demand has increased dramatically. At the same time, housing inventory is decreasing especially at the lower price points.
The National Association of Realtors (NAR) recently revealed that there is a pent-up seller demand caused by the uncertainty created by the housing crisis of the last decade.
What does that mean to you?
Houses listed today sell quickly. With prices still below peak values of 2007 in many parts of the country and mortgage interest rates at historic lows, this may be the perfect time for your family to make the move to the dream house you always wanted – whether that’s a larger home or that vacation/retirement home you have been looking at.
What does that mean to the economy?
Housing has always been an essential part of the U.S. economy. As we have reported before, real estate not only provides housing for families. It is often the greatest source of wealth and savings for many. The recent increase in real estate sales has led to an increase in real estate prices. This has increased the value of everyone’s’ home, whether they are selling or not. This leads to an increase in consumer confidence which in turn leads to an increase in consumer spending. Plus, each home sale automatically puts money into the economy.
NAR compiled data from research conducted by the Bureau of Economic Analysis & Macroeconomic Advisors on the economic impact of a home purchase.
After reviewing the data, they concluded that the total economic impact of a typical home sale in the United States is an astonishing $52,205.
The more homes that sell, the better the economy.
Bottom Line
In order for the U.S. economy to get better, we need to sell more homes. Perhaps, it makes sense for one of those homes to be yours.
If you have considered selling but are still a little nervous, now might be the time to give me a call, as I am familiar with the current market and can advise you, as to what your options truly are.
2015 Redmond Garden Club Annual Plant Sale
Perennials • Vegetable Starts • Shrubs • Crafts • Planters
Hard to Find Plants
Garden Related Yard Sale and Raffle Items
Plant Professionals On-site
Saturday, May 9th, 2015 from 8:00am to 3:00pm
Sale location:
17212 NE 144th St.
Redmond, Washington 98052
www.redmondgardenclub.com
Download a copy of the sale flyer here:
2015 Redmond Garden Club Sale Flyer
Follow the signs along NE 124th/NE 128th, Avondale, or Redmond-Woodinville Rd
[mappress mapid=”15″]
Good News for ‘Typical’ Home Buyers
In a speech delivered earlier this year, Secretary for HUD Julián Castro, called 2015 “A Year of Housing Opportunity”. A recent report by The National Association of Realtors (NAR) revealed that investment home sales decreased 7.4% in 2014 to an estimated 1.02 million.
What does this mean for the ‘typical’ homebuyer?
Lawrence Yun, NAR’s Chief Economist gave some insight:
“Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the number of bargains available to turn into profitable rentals.”
This is great news for the housing market. If fewer properties are being sold to investors, they are instead being sold to American families who are entering the housing market in droves.
Details of the Report
There are many reasons buyers purchase a home as an investment property. Those who made a purchase in 2014 listed the opportunity for rental income as their top reason (37%).
Below is a graph showing the top three reasons:
The median investment-home sales price dropped 3.8% to $125,000, from $130,000 in 2013.
According to Yun, “the decrease in vacation and investment sales prices is likely due to the increase in vacation and investment buyers purchasing condos and townhouses, which contributed to a decline in the median size of 200 square feet for both.”
The drop in price can also be attributed to the majority of investment purchases being located in the South (37%) where there are often better deals from a pure pricing standpoint.
Below is a map detailing the investment purchases in 2014 by region.
Bottom Line
The housing market is continuing to recover and thrive. If your plan for 2015 includes buying your first, second or even investment property – contact me today to evaluate your ability to enter the market.