With Interest Rates and Home Prices on the Rise, do you Know the True Cost of Waiting?

With Interest Rates and Home Prices on the rise, do you know the true Cost of Waiting? | Keeping Current Matters

Today we are excited to have Morgan Tranquist as our guest blogger. Morgan is the Marketing & Graphics Director for The KCM Crew and provides insight into what the Millennial Generation needs to hear from their agents. – The KCM Crew

At Keeping Current Matters, we have often broken down the opportunity that exists now for Millennials who are willing and able to purchase a home NOW… Here are a couple other ways to look at the cost of waiting.

Let’s say you’re 30 and your dream house costs $250,000 today, at 4.12% your monthly Mortgage Payment with Interest would be $1,210.90.

But you’re busy, you like your apartment, moving is such a hassle…You decide to wait till the end of next year to buy and all of a sudden, you’re 31, that same house is$270,000, at 5.3%. Your new payment per month is $1,499.32.

The difference in payment is $288.42 PER MONTH!

That’s basically like taking a $10 bill and tossing it out the window EVERY DAY!

Or you could look at it this way:

  • That’s your morning coffee everyday on the way to work (average $2) with $11 left for lunch!
  • There goes Friday Sushi Night! ($72 x 4)
  • Stressed Out? How about 3 deep tissue massages with tip!
  • Need a new car? You could get a brand new $20,000 car for $288.00 per month.

Let’s look at that number annually! Over the course of your new mortgage at 5.3%, your annual additional cost would be $3,461.04!

Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining.  We could come up with 100’s of ways to spend $3,461, and we’re sure you could too!

Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $103,831, all because when you were 30 you thought moving in 2014 was such a hassle or loved your apartment too much to leave yet.

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready, but if they showed you that you could save $103,831, you’d at least listen to what they had to say.

They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…

Posted in Financing, Home Buying, Home Selling, Homeownership, Market Conditions, Mortgage | Tagged , , , , | Leave a comment

6 Things you can do with one Can of Paint

RealtyTimes.com, August 18th, 2014
We always talk about how easy (and cheap) it is to paint your space and make it all look and feel new again. We talk about it because it’s the truth. One can of paint is all you need to transform a room, a piece of furniture, a ceiling, or even a space that has no earthly reason to be grand and glam…but you do it anyway.
Full Story: http://realtytimes.com/rtpages/20140818-6-Things-You-Can-Do-With-One-Can-of-Paint.htm

Follow Len and Leslie Marma of Success! Real Estate on their facebook business page, “Marshfield Matters” …. click LIKE to receive real estate info and what’s happening in Marshfield.  

Posted in Homeownership, Renovate | Tagged , , , , | Leave a comment

5 Reasons you Shouldn’t For Sale by Owner

Posted: 18 Aug 2014 KCM Crew

5 Reasons You Shouldn’t For Sale by Owner | Keeping Current Matters

Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). We think there are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of our 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 FSBO.

  • 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
  • Your bank in the case of a short sale

2. Exposure to Prospective Purchasers

Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an extensive internet strategy to promote the sale of your home. Do you?

3.  Actual Results also come from the Internet

Where do buyers find the home they actually purchased?

  • 43% on the internet
  • 9% from a yard sign
  • 1% from newspapers

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 commission. The seller and buyer can’t both save the same commission.

Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000.   This doesn’t mean that an agent can get $46,000 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.

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Posted in Financing, Home Buying, Home Selling, Homeownership, Listing Updates, Market Conditions, Mortgage | Tagged , , , , , | Leave a comment

9 Ways Back to School Improves your Life

RealtyTimes.com, August 18th, 2014
You couldn’t wait until your kids got out of school. Hallelujah for lazy days! Except you probably forgot about just how lazy those days are, right? Not for you. No one gave YOU a summer break. Thankfully, back to school for them means back to normalcy for you in 9 great ways.
Full Story: http://realtytimes.com/rtpages/20140818-9-Ways-Back-To-School-Improves-Your-Life.htm

Follow Len and Leslie Marma of Success! Real Estate on their facebook business page, “Marshfield Matters” …… click LIKE to receive real estate info and what’s happening in Marshfield.    

Posted in Quality of Life, School | Tagged , , , | Leave a comment

Tips to Effectively Cataloging your many Possessions

RealtyTimes.com,August 15th, 2014
From the obvious things like televisions, computers and appliances to the things tucked away in cupboards and closets like pots and pans and personal paperwork, chances are good you own hundreds, if not thousands of things.
Full Story: http://realtytimes.com/rtpages/20140815-Tips-to-Effectively-Cataloging-Your-Many-Possessions.htm

Follow Len and Leslie Marma of Success! Real Estate on their facebook business page, “Marshfield Matters” ….. click LIKE to receive real estate info and what’s happening in Marshfield. 

Posted in Quality of Life | Tagged , , , | Leave a comment

5 Reasons to Hire a Real Estate Professional

Posted: 14 Aug 2014 KCM Crew

 

5 Reasons to Hire a Real Estate Professional | Keeping Current Matters

Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO. The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened in recent months due to the projections of higher mortgage interest rates & home prices as the market continues to recover.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.” Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

Dave Ramsey, the financial guru advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:

You wouldn’t hike up Mt. Everest without a Sherpa, or replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

Posted in Financing, Home Buying, Home Selling, Homeownership, Mortgage | Tagged , , , , , | Leave a comment

Historic Mortgage Rates by Decade

Historic Mortgage Rates by Decade [INFOGRAPHIC]

Posted: 15 Aug 2014 KCM Crew

Historic Mortgage Rates by Decade | Keeping Current Matters 

Posted in Credit Score, Financing, Home Buying, Homeownership, Market Conditions, Mortgage | Tagged , , , , | Leave a comment