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<h3 class="kcm-post-minimal-title">Home Prices: What Happened in 2020? What Will Happen This Year?</h3>
<img class="attachment-entry size-entry wp-post-image" src="https://files.mykcm.com/2021/03/01145848/20210302-KCM-Share.jpg" sizes="(max-width: 750px) 100vw, 750px" srcset="https://files.mykcm.com/2021/03/01145848/20210302-KCM-Share.jpg 750w, https://files.mykcm.com/2021/03/01145848/20210302-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/03/01145848/20210302-KCM-Share-100x55.jpg 100w" alt="Home Prices: What Happened in 2020? What Will Happen This Year? | MyKCM" width="750" height="410" /> 
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The real estate market was on fire during the second half of 2020. Buyer demand was way up, and the supply of homes available for sale hit record lows. The price of anything is determined by the supply and demand ratio, so home prices skyrocketed last year. Dr. Lynn Fisher,&nbsp;Deputy Director&nbsp;of the&nbsp;Federal Housing Finance Agency&nbsp;(FHFA)&nbsp;Division of Research and Statistics,&nbsp;<a title="explains" href="https://www.fhfa.gov/AboutUs/Reports/Pages/US-House-Price-Index-Report-2020-Q4.aspx" target="_blank" rel="noopener noreferrer">explains</a>:
<blockquote>
&ldquo;House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA Home Price Index. Low mortgage rates, pent up demand from homebuyers, and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic.&rdquo;
</blockquote>
Here are the year-end home price appreciation numbers from the FHFA and two other prominent pricing indexes:
<ul>
<li>Federal Housing Finance Agency&nbsp;<a title="House Price Index Report" href="https://www.fhfa.gov/AboutUs/Reports/Pages/US-House-Price-Index-Report-2020-Q4.aspx" target="_blank" rel="noopener noreferrer">House Price Index Report</a>: 10.8%</li>
<li>CoreLogic&nbsp;<a title="Home Price Insights" href="https://www.corelogic.com/insights-download/home-price-index.aspx" target="_blank" rel="noopener noreferrer">Home Price Insights</a>: 9.2%</li>
<li>S&amp;P Case-Shiller&nbsp;<a title="U.S. National Home Price Index" href="https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20210223-1321360/1321360_cshomeprice-release-0223.pdf" target="_blank" rel="noopener noreferrer">U.S. National Home Price Index</a>: 10.4%</li>
</ul>
The past year was truly a remarkable time for homeowners as prices appreciated substantially. Lawrence Yun,&nbsp;Senior Economist&nbsp;at the&nbsp;National Association of Realtors&nbsp;(NAR),&nbsp;<a title="reveals" href="https://www.thedenverchannel.com/news/national/soaring-housing-prices-during-pandemic-may-point-to-split-economic-recovery" target="_blank" rel="noopener noreferrer">reveals</a>:
<blockquote>
&ldquo;A typical homeowner in 2020, just by being a homeowner, would have&nbsp;accumulated around $24,000 in housing wealth.&rdquo;
</blockquote>
<h4>What will happen with home prices this year?</h4>
Many experts believe buyer demand will soften somewhat as mortgage rates are poised to&nbsp;<a title="bump up" href="https://www.simplifyingthemarket.com/2021/02/23/the-reason-mortgage-rates-are-projected-to-increase-and-what-it-means-for-you/?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer">bump up</a>&nbsp;slightly. Some also believe the inventory challenge will ease as&nbsp;<a title="more listings" href="https://www.simplifyingthemarket.com/2021/02/25/are-there-going-to-be-more-homes-to-buy-this-year/?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer">more listings</a>&nbsp;come to market this year.
Based on this, most forecasters anticipate we&rsquo;ll see strong appreciation in 2021 &ndash;&nbsp;but not as strong as last year. Here are seven prominent groups and their projections:<a href="https://files.simplifyingthemarket.com/2021/03/01145850/20210302-MEM-Eng-1.png?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-97387" src="https://files.mykcm.com/2021/03/01145850/20210302-MEM-Eng-1.png" alt="Home Prices: What Happened in 2020? What Will Happen This Year? | MyKCM" width="600" height="338" /></a>
<h3>Bottom Line</h3>
Home price appreciation will be strong this year, but it won&rsquo;t reach the historic levels of 2020. Let&rsquo;s connect if you&rsquo;d like to find out what your house is currently worth in our local market.
</div>

Home Prices: What Happened in 2020? What Will Happen This Year? 

<h3 class="kcm-post-minimal-title">The Reason Mortgage Rates Are Projected to Increase and What It Means for You</h3>
<img class="attachment-entry size-entry wp-post-image" src="https://files.mykcm.com/2021/02/22161211/20210223-KCM-Share.jpg" border="0" alt="The Reason Mortgage Rates Are Projected to Increase and What It Means for You | MyKCM" width="750" height="410" /> 
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We&rsquo;re currently experiencing historically low mortgage rates. Over the last fifty years, the average on a&nbsp;Freddie Mac&nbsp;30-year fixed-rate mortgage has been 7.76%. Today, that rate is&nbsp;<a href="https://www.simplifyingthemarket.com/2021/02/19/home-mortgage-rates-by-decade-infographic/?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" title="2.81%" rel="noopener noreferrer">2.81%</a>. Flocks of homebuyers have been taking advantage of these remarkably low rates over the last twelve months. However, there&rsquo;s no guarantee rates will remain this&nbsp;<a href="https://www.simplifyingthemarket.com/2021/02/18/will-low-mortgage-rates-continue-through-2021/?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" title="low" rel="noopener noreferrer">low</a>&nbsp;much longer.
Whenever we try to forecast mortgage rates, we should consider the&nbsp;<a href="https://blog.firstam.com/economics/reconomy-podcast-2021-housing-market-outlook" target="_blank" title="advice" rel="noopener noreferrer">advice</a>&nbsp;of Mark Fleming,&nbsp;Chief Economist&nbsp;at&nbsp;First American:
<blockquote>
&ldquo;You know, the fallacy of economic forecasting is don't ever try and forecast interest rates and/or, more specifically, if you're a real estate economist mortgage rates, because you will always invariably be wrong.&rdquo;
</blockquote>
Many things impact mortgage rates. The economy, inflation, and Fed policy, just to name a few. That makes forecasting rates difficult. However, there&rsquo;s one metric that has held up over the last fifty years &ndash;&nbsp;the relationship between mortgage rates and the 10-year treasury rate.&nbsp;Here&rsquo;s a graph detailing this relationship since&nbsp;Freddie Mac&nbsp;started keeping mortgage rate records in 1972:<a href="https://files.simplifyingthemarket.com/2021/02/22161207/20210223-MEM-Eng-1.jpg?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-97336" src="https://files.mykcm.com/2021/02/22161207/20210223-MEM-Eng-1.jpg" border="0" alt="The Reason Mortgage Rates Are Projected to Increase and What It Means for You | MyKCM" width="600" height="450" /></a>There&rsquo;s no denying the close relationship between the two. Over the last five decades, there&rsquo;s been an average 1.7-point spread between these two rates. It&rsquo;s this long-term relationship that has some forecasters projecting an increase in mortgage rates as we move throughout the year. This is based on the recent surge in the 10-year treasury rate shown here:<a href="https://files.simplifyingthemarket.com/2021/02/22161205/20210223-MEM-Eng-2.jpg?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-97335" src="https://files.mykcm.com/2021/02/22161205/20210223-MEM-Eng-2.jpg" border="0" alt="The Reason Mortgage Rates Are Projected to Increase and What It Means for You | MyKCM" width="600" height="450" /></a>The spread between the two is now 1.53, indicating mortgage rates could rise. Actually, a bump-up in rate has already begun. As Joel Kan,&nbsp;Associate VP of Economic Forecasting&nbsp;for the&nbsp;Mortgage Bankers Association,&nbsp;<a href="https://www.mba.org/2021-press-releases/february/mortgage-applications-decrease-in-latest-mba-weekly-survey-x277401" target="_blank" title="reveals" rel="noopener noreferrer">reveals</a>:
<blockquote>
&ldquo;Expectations of faster economic growth and inflation continue to push Treasury yields &amp; mortgage rates higher. Since hitting a survey low in December, the 30-year fixed rate has slowly risen, &amp; last week climbed to its highest level since Nov 2020.&rdquo;
</blockquote>
<h4>How high might they go in 2021?</h4>
No one knows for sure. Sam Khater,&nbsp;Chief Economist&nbsp;for&nbsp;Freddie Mac, recently&nbsp;<a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-move-0" target="_blank" title="suggested" rel="noopener noreferrer">suggested</a>:
<blockquote>
&ldquo;While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3% range for the year.&rdquo;
</blockquote>
<h4>What does this mean for you?</h4>
Whether you&rsquo;re a first-time buyer or you&rsquo;ve purchased a home before, even an increase of half a point in mortgage rate (2.81 to 3.31%) makes a big difference. On a $300,000 mortgage, that difference (including principal and interest) is $82 a month, $984 a year, or a total of $29,520 over the life of the home loan.
<h3>Bottom Line</h3>
Based on the 50-year symbiotic relationship between treasury rates and mortgage rates, it appears mortgage rates could be headed up this year. It may make sense to buy now rather than wait.
</div>

The Reason Mortgage Rates Are Projected to Increase and What it Means for You

<h3 class="kcm-post-minimal-title">Where Have All the Houses Gone?</h3>
<img class="attachment-entry size-entry wp-post-image" src="https://files.mykcm.com/2021/02/18152016/20210222-KCM-Share.jpg" sizes="(max-width: 750px) 100vw, 750px" srcset="https://files.mykcm.com/2021/02/18152016/20210222-KCM-Share.jpg 750w, https://files.mykcm.com/2021/02/18152016/20210222-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/02/18152016/20210222-KCM-Share-100x55.jpg 100w" alt="Where Have All the Houses Gone? | MyKCM" width="750" height="410" /> 
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In today&rsquo;s housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market while buyers continue to compete for homes. As Danielle Hale,&nbsp;Chief Economist&nbsp;at&nbsp;realtor.com,&nbsp;<a title="explains" href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-feb-6-2021/" target="_blank" rel="noopener noreferrer">explains</a>:
<blockquote>
&ldquo;With buyers active in the market and seller participation lagging,&nbsp;homes are selling quickly and&nbsp;the total number available for sale at any point in time continues to drop lower. In&nbsp;January&nbsp;as a whole, the number of for sale homes&nbsp;dropped below 600,000.&rdquo;
</blockquote>
Every month,&nbsp;realtor.com&nbsp;releases new&nbsp;<a title="data" href="https://www.realtor.com/research/data/" target="_blank" rel="noopener noreferrer">data</a>&nbsp;showing the year-over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:<a href="https://files.simplifyingthemarket.com/2021/02/18152014/20210222-MEM-Eng-1.jpg?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-97316" src="https://files.mykcm.com/2021/02/18152014/20210222-MEM-Eng-1.jpg" alt="Where Have All the Houses Gone? | MyKCM" width="600" height="450" /></a>
<h4>Does this mean houses aren&rsquo;t being put on the market for sale?</h4>
Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they&rsquo;re being counted as current inventory. The market is that competitive! It&rsquo;s like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. That&rsquo;s what&rsquo;s happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.
In the same&nbsp;realtor.com&nbsp;report, Hale explains:
<blockquote>
&ldquo;Time on the market was 10 days faster than last year&nbsp;meaning that buyers still have to make decisions quickly in order to be successful. Today&rsquo;s buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster-paced housing market.&rdquo;
</blockquote>
<h4>The Good News for Homeowners</h4>
The health crisis has been a major reason why potential sellers have held off this long, but as vaccines become more widely available, homeowners will start making their moves. Ali Wolf,&nbsp;Chief Economist&nbsp;at&nbsp;Zonda,&nbsp;<a title="confirms" href="https://www.realtor.com/news/trends/vaccines-housing-market/" target="_blank" rel="noopener noreferrer">confirms</a>:
<blockquote>
&ldquo;Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.&rdquo;
</blockquote>
With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listing shines brighter than the rest.
When you&rsquo;re ready to sell your house, you&rsquo;ll likely want it to sell as quickly as possible, for the best price, and with little to no hassle. If you&rsquo;re looking for these selling conditions, you&rsquo;ll find them in today&rsquo;s market. When demand is high and inventory is low,&nbsp;<a title="sellers" href="https://www.simplifyingthemarket.com/2020/12/10/why-it-makes-sense-to-sell-your-house-this-holiday-season/?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer">sellers</a>&nbsp;have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.
<h3>Bottom Line</h3>
Today&rsquo;s housing market is a big win for sellers, but these conditions won&rsquo;t last forever. If you&rsquo;re in a position to sell your house now, you may not want to wait for your neighbors to do the same. Let&rsquo;s connect to discuss how to sell your house&nbsp;<a title="safely" href="https://www.simplifyingthemarket.com/2020/11/13/tips-to-sell-your-house-safely-right-now-infographic/?a=704114-2a10420cfdd3119ffc6bc847f537f332" target="_blank" rel="noopener noreferrer">safely</a>&nbsp;so you&rsquo;re able to benefit from today&rsquo;s high demand and low inventory.
</div>

Where Have All the Houses Gone? 

Running an energy-efficient home doesn't necessarily entail buying expensive solar panels or wind generators. &nbsp;Here are 8 useful tips.
Laundry: Wait until you have a full load of laundry and run the machine on cold. Detergents are available to clean clothes at low temperatures.
Dishes: Don't pre-rinse your dishes as this wastes energy. And wait until the dishwasher is full before turning it on. If you have the time, use the air dry or no-heat dry settings so the dishes dry without using electricity.
Windows: In the winter during the day, open the blinds on south-facing windows to allow the sun to warm your home then close them in the evening to increase insulation. (In the summer, you can do the opposite to keep your home cool.)
Computers and TVs: Turn off your appliances when you are not using them. Even when they're in standby mode they are still using electricity -- it's estimated 5% of household energy use is from appliances leaking away electricity. So turn them off at the wall.
Showers: While a long, hot shower is nice and relaxing, you can save a lot of money taking shorter showers and by installing energy-efficient shower heads that give you a good shower while reducing water use.
Space heaters: Surprisingly, space heaters are a lot cheaper than a central heating system. And don't forget to turn them off when you're out. Installing a programmable thermostat will also keep your heating bill low.
Furnace filter: Change the filter at the start of every season and then every month or two after because a dirty filter makes the furnace work harder and be less efficient.
Floors and drafts: If you've got hardwood floors, put down some rugs, particularly if you have wood floors above a cold basement. Make sure also that you've installed insulation such as weather-stripping at the bottom of doors.

8 Easy Ways to Save Energy in Your Home

Selling a home can be cumbersome and difficult, so hiring an agent to represent you can help alleviate some of those stressors. When you are ready to sell, keep in mind that you can only control what you can control.&nbsp;
You can control:
Condition of the property.&nbsp;Try to minimize the clutter. You are moving so start packing away those out of season clothes and box up any items you don&rsquo;t use every day. Clean up those areas that easily become stockpiles, like the garage and your closets. &nbsp;
Mow the lawn if the weather permits, and plant a few flowers to add a little color to clean beds for a nice curb appeal. Pay extra attention to the front door and porch area because potential buyers are greeted by this first impression. Give the door a good scrub down and sweep off any debris from the porch. Garage doors are also important if they face the street.
Keep your house tidy. You never know when a possible buyer will want to schedule a showing, and it sometimes happens at the worst time. Plan for at least one day a week to do a thorough cleaning to make maintaining it the rest of the week easier. &nbsp;
Walk through the house with the intention to repair or replace items that are broken or not working. Drippy faucets, loose knobs, squeaky doors, even light bulbs that are burned out can affect the speed of your sale and possibly the selling price.&nbsp;
Availability.&nbsp;While your house is listed your goal is to have potential buyers schedule a showing. Be flexible with the times and days you are prepared to leave your house for a potential buyer. Have a plan in mind for pets and even ideas for what you and the kids will do at various times of the day, any day of the week. &nbsp;
Price.&nbsp;Price can be a major decision when selling your house. Your agent can provide a market analysis that will show you three major considerations when determining the market range for your property.
Homes that have recently sold is your best barometer to determine what buyers are willing to pay for a comparable home in your area. Homes that are currently on the market for sale in your area will give you an idea of the competition. Finally, homes that have failed to sell can help you gain some insight on what buyers are not interested in or perhaps what price is too high.&nbsp;
Only you know what is motivating you to sell. Your agent will be providing the most current market conditions, so you can make an informed decision when setting a sales price.&nbsp;
Home Warranty.&nbsp;Be prepared to provide a home warranty plan for your buyer. The plan should last at least one year and cover the major appliances, heating and air conditioning, and overall function of the house. Providing a home warranty plan will give your buyer some peace of mind and may help close your deal.&nbsp;
There are some conditions that you cannot control. &nbsp;
&bull; Competition
&bull; Market
&bull; Economy
&bull; Interest Rates
&bull; Location
Remember, the things you can&rsquo;t control are not worth stressing over. Your agent will help you manage the things you can control to make the process of selling your house easier and less stressful on you.&nbsp;

Tips for Sellers

A key element in staging a home for sale is to make it look clean, spacious, and presentable.&nbsp;Learn how to clear the clutter with these quick and easy storage solutions that keep your home looking its best and make moving day a breeze at the same time.
Storage Bench or Seat
Buy an attractive storage bench or seat to store toys, pet items, and garden tools in a great looking container that adds a decorative element to the space. Outdoor PVC garden benches are an easy alternative to keep a patio or porch tidy, while a toy box in each bedroom makes quick work of preparing bedrooms to be shown on short notice. Best of all, storage benches make light work of packing when moving day arrives.
Bright Boxes
Purchase bright colored storage boxes to use on shelves or inside cabinets to reduce the appearance of clutter.&nbsp;
Overhead Storage Systems
Add inexpensive overhead storage systems to the garage, shed, or even bedrooms. Sturdy and easy-to- install ceiling mounted storage systems keep walkways free of debris, especially in cluttered spaces like the garage. Add colorful ribbons or bright decorations to create the perfect place for stuffed animals, games, or other infrequently used toys in bedrooms.
Racks
From bikes to hats, there is a rack for every reason, so chances are your home could benefit from a few well positioned and inexpensive racks too. Some of the more popular racks include bike racks, multimedia racks, coat and hat rack, laundry racks and of course &ndash; spice racks.&nbsp;
Remember, potential buyers are likely to search every inch of your home including closet space, cabinets, and storage sheds to determine if their own belongings will fit.&nbsp;Stay prepared by presenting your home in the best light possible by putting everything in its place.

Ideas to Help Declutter Your Home

Moving into a new home is an exciting time, and you&rsquo;re probably daydreaming about decor and paint schemes and new furniture. But before you get into the fun stuff, there are some basics you should cover first.
Change the locks
Even if you&rsquo;re promised that new locks have been installed in your home, you can never be too careful. It&rsquo;s worth the money to have the peace of mind that comes with knowing that no one else has the keys to your home. Changing the locks can be a DIY project, or you can call in a locksmith for a little extra money.
Steam clean the carpets
It&rsquo;s good to get a fresh start with your floors before you start decorating. The previous owners may have had pets, young children, or just some plain old clumsiness. Take the time to steam clean the carpets so that your floors are free of stains and allergens. It&rsquo;s pretty easy and affordable to rent a steam cleaner&mdash;your local grocery store may have them available.
Call an exterminator
Prior to move-in, you probably haven&rsquo;t spent enough time in the house to get a view of any pests that may be lurking. Call an exterminator to take care of any mice, insects, and other critters that may be hiding in your home.
Clean out the kitchen
If the previous occupants wanted to skip on some of their cleaning duties when they moved out, the kitchen is where they probably cut corners. Wipe down the inside of cabinets, clean out the refrigerator, clean the oven, and clean in the nooks and crannies underneath the appliances.

Priority Tasks for Your Move In

When it comes to buying and selling real estate, timing is of the utmost importance. Unfortunately, it&rsquo;s also a topic few people truly understand. The following are some tips to keep in mind when speaking with your real estate agent.
Sell before buying or buy before selling?&nbsp;
It&rsquo;s an age-old question, but asking a few strategic questions might enable you to narrow your decision down to the right choice for your individual situation.&nbsp;
Is selling or buying a necessity or do you have some flexibility?&nbsp;
Job relocation, change of marital status or other life situations often require a relocation within a specified period of time. Equally important are the needs of the other party. Work with your agent to understand the opportunities and limitations of both sides in order to create a win-win situation.
Buying before selling typically benefits those who simply must move or relocate within a specified period of time and who are unable or unwilling to lease or rent. It is also a popular option for those seeking an exchange of property under Section 1031 of the U.S. Internal Revenue Code or for those who are attempting to minimize taxation via other deals.&nbsp;
Can you obtain financing or afford to carry both mortgages for any period of time?&nbsp;
If so, you may have a little more flexibility at your disposal. Speak to your agent about a leaseback or other temporary term. It&rsquo;s often possible to use these when negotiating terms.
Selling before buying can benefit those who are unable to obtain financing with an existing mortgage in place or who wish to use cash proceeds from the prior sale to fund repairs, renovations or an entire purchase.&nbsp;
In many instances, it is possible to arrange a simultaneous closing for both the home purchased and the home sold with contingencies that reflect this situation on both transactions.&nbsp;

Sell First or Buy First, Which is Right for You?

You have decided to pursue home ownership and buy your first, second, or last house. Congratulations! Now what? Your first step should be to consult a professional that can help you make sense of the real estate world. A real estate agent will guide you through the unknown.
What should you expect when you call an agent? Guidance and help to facilitate your home search should be the first thing. A great agent will take time to ask you a few questions about where you are in your search for your first house. An agent should ask:
&bull; How long you have been looking for a home?
&bull; Are you working with any other agents?
&bull; Did any other agents show you property?
&bull; What did you sign with them?&nbsp;
&bull; Are you in an exclusive agreement with another broker?
&bull; Do you have a pre-approval letter from your lender?&nbsp;
&bull; Did you see anything you liked?
&bull; What kept you from buying?
Assuming that you are not in an exclusive agreement with another party, the agent you are speaking with will most likely request to set up a consultation appointment. This first meeting is critical for both you and the agent. You will be requested to bring a copy of a pre-approval letter from your lender; if you do not have one, the agent will request it prior to viewing homes. This will provide the agent with valuable information to better serve you by narrowing your search and plan a strategy for finding you the right home.&nbsp;
The agent will share with you what he/she can do for you to find the right property at the right price. You can benefit from this meeting by learning about current market conditions, the search and buying process, obtaining answers to your questions and getting acquainted with the agent to determine if you want to work with him or her.&nbsp;
When deciding who should represent you, you may want to consider calling an agent who has an Accredited Buyer Representative (ABR&reg;) designation. An agent with this designation has specialized training in the business of representing real estate buyer-clients.&nbsp; An ABR&reg; has knowledge of the market along with training to help negotiate the best deal for buyers. They will have an expertise in listening and communication skills.
Once you&rsquo;ve found the property that is right for you, your agent will advise you in formulating your offer and help you make your best initial offer. Over half the buyers today are using a buyer&rsquo;s agent, and having one that is an ABR&reg; will give you an advantage as you come to terms with the seller&rsquo;s agent. Once the contract has been signed, the agent will continue to be an advocate for negotiating repairs or conditions that surface during the inspection.
You can rest assured that your ABR&reg; agent understands your specific needs and will locate appropriate properties to narrow your search, saving you time. An ABR&reg; a licensed real estate professional who is committed to maintaining their professional edge by staying current on the latest issues and trends in buyer representation. You will be served, not sold.&nbsp;

What can a Buyer's Representative do for you?

Finding your dream home is easy, but obtaining a competitive home loan is not. Thankfully, with sufficient planning, you can obtain the best mortgage possible &ndash; providing you with significant financial savings in the long run. &nbsp;
Check for Credit Score Errors
The most important element of obtaining a competitive loan is your credit score.&nbsp; Even if you have stellar credit, obtain a copy of your credit report from the three reporting agencies to check for any reporting errors.&nbsp; Considering that 40% of credit reports have errors, it is important to resolve these problems before you apply for your mortgage.&nbsp; &nbsp;
Raise Your Credit Score
Generally, it takes six months to one year to improve your credit.&nbsp; The earlier you begin, the better your score will be.&nbsp; However, if you plan on applying for a loan within the next two months, you can still improve your credit.&nbsp; Reduce your debt-utilization ratio by paying down your credit cards and staying well below your maximum credit limits. &nbsp;
Show Your Savings&nbsp;
During the mortgage application process, the lenders will scrutinize your financial health.&nbsp; Do not keep your savings in a checking account.&nbsp; Instead, open a savings account or CD to demonstrate your ability to save money.&nbsp; Remember, the more you have for your down payment, the better your mortgage rate will be.
Become Pre-Qualified
Becoming pre-qualified for your home loan locks in interest rates, protecting you from fluctuations.&nbsp; In addition, being pre-qualified demonstrates that you are a financially serious buyer, which aids greatly during your closing negotiations. &nbsp;
Planning ahead increases your probability of obtaining the best mortgage possible for your dream home.&nbsp;&nbsp;Having an experienced and knowledgeable Realtor on your side will improve your success. &nbsp;One of the most important aspects to winning the contract is connecting with a local lender and having your pre-qualification for funding before looking at houses. &nbsp;When homes are only lasting days on the market you will edge out the competition when you can demonstrate you&rsquo;ve done the financial planning before the offer. &nbsp;Sellers want to know that you can follow through on your offer. &nbsp;
Want to connect with a local lender in the Greater Fort Worth Area?&nbsp; Check out the information below to get started on your journey to home ownership.
Blair Thomas with Gateway Mortgage has several programs unique to helping clients with down payment assistance, and he works with all types of loans including conventional, VA, and FHA. &nbsp;He has helped to qualify clients when other lenders said it couldn&rsquo;t be done. You can reach him at 972-543-8999 or 214-794-8627. &nbsp;You can also provide your information to him for a quick response at&nbsp;<a href="https://app.smartsheet.com/b/form?EQBCT=975c3496826e456b8b1c40a480ac56d3">https://app.smartsheet.com/b/form?EQBCT=975c3496826e456b8b1c40a480ac56d3</a>
Alex Varela with PrimeLending has an extraordinary team of loan officers working for you. &nbsp;His team specializes in every type of loan as well as staying in the know of new programs and services available to individuals like yourself. &nbsp;The SETH 5 Star program is just one of those programs. &nbsp;You can reach Alex or one of his team at 972-250-9603. You can also apply online at&nbsp;<a href="http://teamvarela.com/">teamvarela.com</a>

Tips to Help You Get the Best Mortgage

Are you a first time buyer?&nbsp; Maybe it's just been a very long time since you purchased a home. Are you feeling a little nervous about the whole process?&nbsp; Not sure where to begin?&nbsp; You are not alone.&nbsp;
The home buying process has changed over the years, especially now that most home buyers begin searching for their perfect home on the internet.&nbsp;&nbsp;Don't be fooled into thinking buying a home is as easy as buying your favorite movie on Amazon. It is true the internet gives buyers outlets to search, however, those sources are not always reliable. It can become a frustrating process if you begin searching before you have a clear idea of what you want and what you can afford.&nbsp;
Here are a few tips to consider when starting your home buying experience.&nbsp; First, take out a note pad and divide it into the following three columns: Must have, Must NOT have, my Perfect Home.
The "must have" column is a list of the things you can not compromise on, for example if you need a three bedroom then you need three bedrooms, a two bedroom won't do but a fourth bedroom is okay. The must have's are the deal breaker items; it these are not in the home you can't consider that house an option. These items should relate mostly to structure, cosmetic items can be changed to meet your needs.
The "must Not's" column is similar to the must have's except these are the items that would break a deal if they are in the home. For example, perhaps you can't do stairs so you need a one-story home, "2-story home" would be in the must Not's column.&nbsp; These items should also focus on the structure and include very limited cosmetic items if any at all.&nbsp; Remember cosmetic features can be added or taken away over time.&nbsp;
The "Perfect home" column is your top ten items you would love to see in your next home but could possibly compromise on if they can be added later. Your Realtor wants to know about these items to try to find as many of them as possible for you, however unless your building that dream home, it's unlikely you'll find all of them in one house.
Now that you have a clearer idea of what you need vs what you want, it's time to call the lender. What?!? You thought it was time to call a Realtor didn't you?&nbsp; Well, if you want a referral from your agent to a lender, than yes, give that Realtor a call and ask for a lender referral.&nbsp;
It is important to get connected with a lender that is local to the area you plan to buy a home, they understand the mortgage programs available to buyers best. If you connect with one that has worked with your real estate agent that's a bonus. Your lender and real estate agent should be working as a team to provide you with the best service.&nbsp; Your mortgage lender will walk you through the application process, discuss the various programs that could benefit you, and explain the types of loans available.&nbsp; Your main goal during your first discussion with any mortgage lender is to find out what programs they can access that benefit you. It is wise to speak to multiple lenders and find the one that you believe you can work with to close your loan. This is a huge step, you need to trust your lender and be able to speak candidly. Once you have chosen a lender, get your application completed to get pre-approved.&nbsp; Your pre-approval is vital to moving forward with your home search.&nbsp;
In the next installment of "What Every Buyer Should Know" we will share how having a buyer's representative protects your interests.

What every buyer should know... before you look for your next home

Now that you have established a relationship with your lender and received a pre-approval letter you are ready to start looking at houses.&nbsp; You may have reached out to a real estate agent for a lender referral, if so, then your agent is already aware you are ready for the next step in your home buying process.&nbsp;
If you haven't already, this is a great time to share your list of "must have's", "must not's", and "dream home" with your agent. Your agents will most likely send you a representation agreement.&nbsp; This document outlines the responsibilities of your agent and protects your interests in future negotiations because it is a binding agreement that your agent represents you, the buyer, and not the seller.&nbsp;&nbsp;
Your Buyer's Representative will review your list of preferences along with your pre-approval letter and begin to set up an automatic home search in the local MLS database (this is the same Data base used by most third party sources but is updated regularly, unlike those third party sources) that includes your specific home needs.&nbsp; This list can be generated and updated as often as needed.&nbsp; Once the initial list is sent to you, updated lists will show new listing as well as status changes of previous listings.&nbsp; This system allows you to mark the properties you like and leave notes about specific properties that your agent can review in order to provide feedback.&nbsp;
Once you have found three - five properties that are your top choices on paper, your agent can schedule private tours of the homes. It's important to limit the number of properties you visit in one day, it can be very over-whelming after the third house, be sure and take notes on the handouts of each property your agent provides for you. Your representative should be helping you to compare each property to establish which one will best meet your home needs.&nbsp;&nbsp;
Once you have found the home you want, your representative will discuss with you the details of your offer, guide you through the process and draw up the appropriate documents to send your best offer to the listing agent.&nbsp; Having a buyer's representative is vital at this stage to negotiate you the best deal that protects your interests while securing the overall goal - winning you the contract to purchase.&nbsp;
Once your buyer's representative has negotiated the terms and you have the executed contract your agent will guide you through each stage of the contract to close process. In our next installment of "what buyer's need to know" we will discuss the buying process after the contract is executed.&nbsp;

What every buyer should know.... about a Buyer's Representative

You found the perfect house, your agent has negotiated on your behalf, and both sides have signed the sales contract. Now what?&nbsp; Over the next twenty-five to thirty-five days your agent will guide you through the stages of contract to close. Most lenders need around thirty days to process the loan documents and prepare for closing. If you are paying cash you can typically close with in 10-15 days. The following is typical of what you can expect when closing on a house with a mortgage loan.
Option fee and Earnest fee
Once you have signed, you will need to deliver the option fee to the seller and the earnest fee to the title company.&nbsp; This is due immediately. Your agent can assist by providing the addresses and often will acquire a overnight shipping label from the title company for the earnest check.&nbsp; Time is of the essence for fee delivery so be prepared to access this money as soon as the contract is executed.&nbsp;
Option Period
After you sign, your option period begins.&nbsp; It is important for you to know when your option period expires because this deadline is strictly enforced by the contract.&nbsp; The option period is the buyer's time to consider the purchase and "Opt out of purchase" without losing earnest money. During option period it is best advised that you hire a licensed home inspector to do a full inspection of the house including an inspection for wood destroying insects as well as any additional amenities such as irrigation system, pool, spa, etc.&nbsp; After the inspection, you can discuss concerns with your agent and have your agent request repairs be made by the seller prior to closing.&nbsp; If any of the requested repairs will impact your decision to purchase the home, all negotiations need to be finalized before your option period ends.&nbsp;&nbsp;
Contract deadlines
When you review your contract you will notice that there are several deadlines given in the form of "number of days".&nbsp; Such as Seller's Disclosure, survey, HOA, deed restrictions, etc. Your agent is monitoring these deadlines and following up should specific information not be provided within the time agreed upon.&nbsp; Also note that the contract may have a clause that specifies what will happen if the information is not provided within the agreed upon time.&nbsp;
Your financing
After the inspection it may feel as if everything just stopped. Your lender may follow up with you to provide additional documents.&nbsp; After the inspection, your lender will most likely request the property appraisal be completed. This is required on most lender loans. While you wait for the third party appraiser to complete the order, you can follow up with your lender to make sure all documents have been provided from you.&nbsp; Your agent will be monitoring your finance approval deadline and following up with your lender. This deadline is also important to protect your earnest money should something prevent you from closing. You should also be checking on home owner insurance rates, and this is a great time to begin packing. Once the appraisal is completed you will be notified of the outcome and you can request a copy from your lender.&nbsp;&nbsp;
Appraisal
An appraisal is required on most lender loans. This is paid for by the buyer but the appraiser is hired by the lender through a management company. The appraiser's job is to determine if the home's value meets or exceeds the amount the bank is loaning.&nbsp; There may be various stipulations based on the type of loan you are using as to what value this must be to receive the full loan amount requested.&nbsp; One you receive the report, your lender will inform you of any changes that need to be made.&nbsp; Often you will hear the phrase, "property met value" or "property did not meet value".&nbsp; A property meeting value needs no further action. A property that does not meet value may require more action depending on your situation. Your agent and lender can explain your options in this situation.&nbsp;&nbsp;
All Conditions are met
Once all conditions are met the title company and your lender will finalize their documents for closing.&nbsp; They must compare documents to make sure they match and then you will be sent a copy to review prior to closing day.&nbsp;&nbsp;Be sure and be on the lookout for any documents sent from your lender.&nbsp; Some loans require you to review documents a minimum number of days before you can sign closing documents.&nbsp;&nbsp;Acknowledging you received the documents from your lender may be time sensitive. Ask your lender if you have a review requirement on your loan.&nbsp;
Closing Day!
Once all reviews are complete and the title company and lender are ready, you will be given a clear to close.&nbsp; Your agent will have already scheduled a time for you to close on your contracted close date based on your preferences.&nbsp; You will be provided with specific details as to what to bring to closing, where to meet and the time to arrive. Once you are at the designated closing location, usually the title company, you will meet the escrow or closing officer.&nbsp; He or She will explain all your closing documents as you initial and sign. Once both parties have signed, the title company will request the funding from your lender. Once funded you are fully closed. Your agent will be notified you have funded. your agent will contact you to transfer your keys of your new home to you.&nbsp;&nbsp;Congratulations, your a home owner!

What every buyer should know... after you execute a contract

Do you own a residential property you are considering selling?&nbsp; Is it a primary residence, second home, vacation home, investment property? Your agent will ask this and several other questions when meeting with you to discuss your options. Knowing your property&rsquo;s value is one step in helping to make the decision to sell now or sell later. As your Realtor, my goal is to provide you with up to date information on the market around your property as well as guidance on what is currently motivating buyers.&nbsp;
The real estate market is fluid, meaning it can swing up or down at any time. It is typical for a market area to have higher activity seasons, however it&rsquo;s important to keep in mind that every property is unique in some way which can affect the property&rsquo;s value as well as the days on market. Your agent should give you weekly updates on any changes to your market activity and how this affects your property value.
Oftentimes agents will hear, &ldquo;the guy down the street&rdquo; followed by a statement of what he received or paid for his house and a comparison of the subject house to the one that just sold. This can be a very misleading and discouraging way to try and price your home. There could be circumstances that we are not privy to knowing that influenced the sales price of the other home. If that home is a true comparable property, it will be used as one influencer on the market value of your home but it cannot be the only influencer.
Don&rsquo;t be discouraged by negative feedback from potential buyers or their agents. Feedback is important to help guide you moving forward and gives you a current representation of the buyer&rsquo;s motivation. Your agent will help you to filter the feedback to know what you can address to appeal to the current buyers. It can be difficult to read or hear negative comments about a home you may love, but keep in mind these comments are not intended to be personal, they are from the perspective of a buyer who has an ideal image of what they want in their next home.
Repairs and remodels may not always be necessary. Walk your property with your agent and discuss how it will appear from a prospective buyer&rsquo;s eyes. Your agent understands you have lived there and have made it your home, now she will guide you into how to help a buyer see it as their new home. Your agent will discuss the benefits of focusing on major repairs/updates versus cosmetic changes. There is no cookie cutter answer, every property is different and every seller has their own budget. Your agent will guide you into making the best decision that will still help you to receive the most return.
Know how much you owe and be honest about what you need and how it may affect your next purchase. Everyone hopes to get the big payday from their real estate sale. While it should be profitable for the seller, it&rsquo;s important to be realistic. I want to help you get the most out of this investment, I am also going to be straightforward with you on the current market value. Most of my clients are reluctant to share what they owe, but it&rsquo;s vital to trust your agent and be open about this information. I know that your sales price and what you owe is only a part of estimating your net profit. Aside from the standard fees from a title company, there are still plenty of negotiating terms that can happen between contract and closing which could influence your profit. Knowing your bottom line helps me to better advise you on how an offer could influence your goal. This is especially important in multiple offer situations.
Knowing the best time to sale is like looking in a crystal ball to predict the future. A better question may be to ask yourself if this is a time you are ready to move? If you are contemplating selling your primary residence than you&rsquo;ll need to know what your options are for moving. Is there a home out there you love and want to purchase? Are you prepared to move into temporary living quarters if needed? Perhaps this is a vacation home or second home you no longer need. In this case, have your agent determine the current activity level of homes in the area. Are they selling quickly (days on market)? Are they selling for list price, higher than list price, or lower than list price? How does this compare to a previous quarter or season of the year? Why are you selling? This is the one question that may be the main influencer on when you list your property.
Having a conversation with a Realtor is the best first step to determining if this is the time you sale. If you don&rsquo;t already have an agent, give me a call. I&rsquo;m ready to take the extra stress out of selling and help you reach your next goal.

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How to prepare your house for sale | Mineral Grove Realty

You&rsquo;d be surprised how often I walk into a house with buyer clients and we turn to each other and say something like, &ldquo;Are they trying to NOT sell this house?&rdquo;
Lots of homeowners just put their house on the market without preparing it properly.
It&rsquo;s not my job to care about the houses I show to buyers; we can just move on to the next one. But I always want my sellers to be prepared so THEY never have buyers and agents coming through and thinking that!
So, I created a free guide to help my clients properly prepare their house for sale. If you&rsquo;re thinking about selling your house in the near future (or ever&hellip;), grab a copy!
You can request a mailed copy by emailing amy@mineralgrove.com or you can download a copy here: <a href="https://bestrealestateblog.com/get-preparing-booklet?m=rYdmIHxvnjTfLtaRwmEg" target="_blank" rel="noopener">Preparing Your House for Sale</a>

How to prepare your house for sale

Published 01/22/2019 | Posted by Amy Bernard

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