Tuesday, June 9, 2015

2 Out of 3 Renters Want to Own. What’s Stopping Them?

The Federal Reserve Bank of New York recently released the 2015 SCE Housing Survey. The survey revealed that most current renters would prefer owning and that 61.9% of them plan to buy a home within the next five years. 68.3% stated they would prefer owning (with 45.6% saying they ‘strongly’ prefer owning). When asked at what point in the future do they think they will own a primary residence:
8.2% said within a year
15.3% said in 1 to 2 years
38.4% said between 3 to 5 years
What’s Holding Them Back?
Of the 68.3% who would prefer to own, 2 out of 3 cited difficulty in getting a mortgage for the reason they do not own. However, many believe that the reason so many think that it would be difficult to get a mortgage is not fully based on current market realities. For example, studies have shown that there is confusion over the amount of money needed for a down payment. Research has shown that 40 to 50% of Americans believe that between 15-20% is the minimum required for a down payment. In reality, there are many programs available at 5% and even 3%. There are even some programs that don’t require any down payment (ex. VA loans). Others fear they need a perfect credit score or believe that the overall mortgaging process has become almost impossible. Actually, the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association, has shown that, over the last seven months, access to mortgages has gotten much more available. And the NY Fed study suggests that some renters are waiting for interest mortgage rates to fall even further. Fifty percent of the renters surveyed believe mortgage interest rates will fall over the next year and almost 10% believe that they will fall by more than 1%. However, the reality of the situation is that Freddie Mac, the Mortgage Bankers Association and the National Association of Realtors are all projecting that rates will be significantly higher at this time next year. They are all predicting mortgage rates will be almost 1% higher!
Bottom Line
Many renters want to own their own home. Some are not moving forward based on misunderstandings regarding the mortgage process. If you are currently a renter who desires the benefits of homeownership, sit down with a local real estate professional to determine what your options actually are.
Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz
Synergy Realty Group - where we are not #1 - YOU ARE!  By the way, I'm never too busy for any of your referrals!

Insurance deadline looms for victims of 2013 Black Forest 

The second anniversary of the Black Forest fire on Thursday brings a deadline for many fire victims: it will be their last chance to sue their insurance companies and their last chance to seek to collect the full amount of money they are owed to replace belongings.
The fire started on June 11, 2013 and burned 14,280 acres in Black Forest, destroying 488 homes and killing two people.
Fire victims who are working to settle their claims should ask for an extension of the deadline verified in writing.  Most insurance companies will grant them if homeowners request them. 
If the insurer denies the extension, residents should contact the Colorado Department of Regulatory Agencies, which has encouraged insurance companies to grant those extensions.
Before the two-year deadline, policyholders should get written confirmation of the following:
- Your insurance claim will remain open and payable past the two-year anniversary.
- Your insurer will continue to honor its obligation to pay all benefits owing, including replacement values, past the two-year anniversary.
- Your insurer agrees that it will not enforce any "suit against us" provision that may arise at the two-year anniversary.

Thursday, June 4, 2015

5 Reasons You Shouldn’t For Sale By Owner

 In today's market, with homes selling quickly and prices rising some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies which work for the buyer and will almost always find some problems with the house.
The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?
43% on the internet
9% from a yard sign
1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.
5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer

Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz
Synergy Realty Group - where we are not #1 - YOU ARE!  By the way, I'm never too busy for any of your referrals!