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How Current Interest Rates Can Have a High Impact on Your Purchasing Power

How Current Interest Rates Can Have a High Impact on Your Purchasing Power

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DonÂ’t Wait to Sell Your House! Buyers Are Out Now

Don’t Wait to Sell Your House! Buyers Are Out Now

Don’t Wait to Sell Your House! Buyers Are Out Now | MyKCM

Recently released data from the National Association of Realtors (NAR) suggests that now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.

Let’s see how this applies to the current residential real estate market.

SUPPLY

It is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.

Supply is currently very low!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”

Demand is currently very high!

Bottom Line

Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, let’s get together to discuss the conditions in our market.

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Moving Up to Your Dream Home? DonÂ’t Wait!

Moving Up to Your Dream Home? Don’t Wait!

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Renters Under 50 Want to Buy a Home!

Renters Under 50 Want to Buy a Home!

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Homeownership: “A Man Is Not a Complete Man, Unless He Owns a House”

Homeownership: “A Man Is Not a Complete Man, Unless He Owns a House”

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3 Tips for Making Your Dream of Owning a Home a Reality

3 Tips for Making Your Dream of Owning a Home a Reality [INFOGRAPHIC]

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5 Ways Tax Reform Has Impacted the 2018 Housing Market

5 Ways Tax Reform Has Impacted the 2018 Housing Market

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Real Estate Tops Best Investment Poll for 5th Year Running

Real Estate Tops Best Investment Poll for 5th Year Running

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Home Inspections: What to Expect

Home Inspections: What to Expect

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What If I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home? | MyKCM

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until Next Year to Buy a Home? | MyKCM

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

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4 Reasons Why TodayÂ’s Housing Market is NOT 2006 All Over Again

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again

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50% of Homes Sold in 30 Days in March

50% of Homes Sold in 30 Days in March [INFOGRAPHIC]

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Data Says May is the Best Month to Sell Your Home

This Just In: Data Says May is the Best Month to Sell Your Home

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How Much Has Your Home Increased in Value Over the Last Year?

How Much Has Your Home Increased in Value Over the Last Year?

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Existing Home Sales Grow Despite Low Inventory...

Existing Home Sales Grow Despite Low Inventory [INFOGRAPHIC]

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“Short of a war or stock market crash…”

“Short of a war or stock market crash…”

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New Study Shows ‘Best States for Millennials’

New Study Shows ‘Best States for Millennials’

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Thinking of Selling Your Home? Why You Need A Pro in Your Corner...Call Mike Brown - Broker at 760.822.8734

Thinking of Selling Your Home? Why You Need A Pro in Your Corner

Thinking of Selling Your Home? Why You Need A Pro in Your Corner | MyKCM

With home prices on the rise and buyer demand strong, some sellers may be tempted to try and sell their homes on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they 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 termite company if there are challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the CO permits mentioned above
  • The buyer’s buyer in case there are challenges with the house your buyer is selling
  • Your bank in the case of a short sale

Bottom Line

The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Let’s get together and discuss all we can do to make the process easier for you.

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Buying a Home Is Cheaper Than Renting in the Majority of the US

Buying a Home Is Cheaper Than Renting in the Majority of the US

Buying a Home Is Cheaper Than Renting in the Majority of the US | MyKCM

The results of the 2018 Rental Affordability Report from ATTOM show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of U.S. counties analyzed for the report.

The updated numbers show that renting a three-bedroom property in the United States requires an average of 38.8% of income.

The least affordable market for renting was Marin County, CA, just over the Golden Gate Bridge from San Francisco, where renters spend a staggering 79.5% of average wages on rent, while the most affordable market was Madison County, AL where 22.3% of average wages went to rent.

Other interesting findings in the report include:

  • Average rent rose faster than income in 60% of counties
  • Average rent rose faster than median home prices in 41% of counties
  • While median home prices rose faster than average rents in 58% of counties

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home.

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Is Family Mortgage Debt Out of Control?

Is Family Mortgage Debt Out of Control?

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How Much Do You Need to Make to Buy a Home in California?

How Much Do You Need to Make to Buy a Home in Your State?

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Rising Prices Help You Build Your FamilyÂ’s Wealth


Rising Prices Help You Build Your Family’s Wealth

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Getting Pre-Approved Should Always Be Your First Step

Getting Pre-Approved Should Always Be Your First Step

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A Tale of Two Markets...Seller's Market vs Buyer's Market

A Tale of Two Markets [INFOGRAPHIC]

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The COST of Your Next Home Will Be LESS Than Your ParentsÂ’ Home Was

The COST of Your Next Home Will Be LESS Than Your Parents’ Home Was

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Mortgage Interest Rates Have Begun to Level Off

Mortgage Interest Rates Have Begun to Level Off

Mortgage Interest Rates Have Begun to Level Off | MyKCM

Whether you are a buyer searching for your first home, or a homeowner looking to move up to your next home, you should pay attention to where mortgage interest rates are heading.

Over the course of 2018, according to Freddie Mac’s Primary Mortgage Market Survey, rates have increased from 3.95% in the first week of January to 4.40% in the first week of April.

At first glance, the difference between these numbers in such a short amount of time could be concerning, but if we look at the graph below, we’ll see that rates have already started to level off and return to the mark set in February.

Mortgage Interest Rates Have Begun to Level Off | MyKCM

This is great news for anyone looking to buy a home this spring! The spring is always one of the busiest seasons for home buying, and with rates increasing even more, buyers have come off the fence to lock in great rates! This is still great advice as the experts believe that rates will continue to rise throughout the year.

Every month, Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtorsrelease their projections for where they believe mortgage rates will be in the coming months. If we take the average of what each of the four organizations is predicting for the second quarter, rates are expected to rise to about 4.48% by June.

That average climbs to 4.73% by the end of this year.

So, what does this mean?

Waiting until the end of the year to buy, with rates still projected to increase, will end up costing you more money on your monthly mortgage payment. For every $250,000 you need to borrow to purchase your dream home, you will spend $49.21 more per month, $590.52 per year, and over $17,700 by the end of your 30-year mortgage.

And that’s just the impact of your interest rate going up!

Bottom Line

If you are ready and willing to purchase a home, find out if you’re able to. Let’s get together to evaluate your needs and help you with next steps!

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What Is Private Mortgage Insurance (PMI)?

What Is Private Mortgage Insurance (PMI)?

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US Housing Market Still In ‘Buy Territory’!

US Housing Market Still In ‘Buy Territory’!

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VA Loans by the Numbers

VA Loans by the Numbers [INFOGRAPHIC]

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House Prices: Simply a Matter of Supply & Demand

House Prices: Simply a Matter of Supply & Demand

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Boomerang Buyers: Most Qualify for Financing in 2-3 Years

Boomerang Buyers: Most Qualify for Financing in 2-3 Years

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What Should You Look for In Your Real Estate Team?

What Should You Look for In Your Real Estate Team?

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NOT Owning Your Home Can Cost You a Lot of Money!

NOT Owning Your Home Can Cost You a Lot of Money!

NOT Owning Your Home Can Cost You a Lot of Money! | MyKCM

Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Realtor.com recently reported that:

Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option… as people get more savings in their pockets, buying becomes the better option.”

What proof exists that owning is financially better than renting?

1. In a previous blog we highlighted the top 5 financial benefits of homeownership:

  • Homeownership is a form of forced savings.
  • Homeownership provides tax savings.
  • Homeownership allows you to lock in your monthly housing cost.
  • Buying a home is cheaper than renting.
  • No other investment lets you live inside of it.

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2018 could build more than $44,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent paymentalong with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.

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The Cost of Renting vs. Buying Today

The Cost of Renting vs. Buying Today 

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99% of Experts Agree: Home Prices Will Increase in 2018

99% of Experts Agree: Home Prices Will Increase

99% of Experts Agree: Home Prices Will Increase | MyKCM

Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on residential real estate prices in 2018. However, the clear majority of recently surveyed housing experts believe that home values will continue to rise this year.

What is the Home Price Expectation Survey?

Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment & market strategists. Those surveyed include experts such as:

  • Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP
  • Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics
  • David Downs, Real Estate Finance Professor at VCU
  • Edward Pinto, Resident Fellow at American Enterprise Institute
  • Albert Saiz, Director at MIT Center for Real Estate

Where do these experts see home values headed in 2018?

Here is a breakdown of where they see home values twelve months from now:

  • 21.6% believe prices will appreciate by 6% or more
  • 71.6% believe prices will appreciate between 3 and 5.99%
  • 5.7% believe prices will appreciate between 0 and 2.99%
  • Only 1.1% believe prices will depreciate

Bottom Line

Almost ninety-nine percent of the top experts studying residential real estate believe that prices will appreciate this year, and over 93% believe home values will appreciate by at least 3%.

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Be Thankful You DonÂ’t Have to Pay Your ParentsÂ’ Interest Rate!

Be Thankful You Don’t Have to Pay Your Parents’ Interest Rate!

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Buyer Demand Still Outpacing the Supply of Homes for Sale

Buyer Demand Still Outpacing the Supply of Homes for Sale

Buyer Demand Still Outpacing the Supply of Homes for Sale | MyKCM

The price of any item is determined by the supply of that item, as well as market demand. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”

Buyer Demand Still Outpacing the Supply of Homes for Sale | MyKCM

The darker the blue, the stronger the demand for homes in that area. Only four states had a ‘stable’ demand level.

Seller Supply

The index also asked: “How would you rate seller traffic in your area?”

As you can see from the map below, 25 states reported ‘weak’ seller traffic, 21 states reported ‘stable’ seller traffic, 3 states and Washington D.C. reported ‘strong’ seller traffic, and only 1 state reported ‘very strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for their dream homes.

Buyer Demand Still Outpacing the Supply of Homes for Sale | MyKCM

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together to help you capitalize on the demand in the market now!

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5 Reasons Why to Sell This Spring!

5 Reasons Why to Sell This Spring!

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20 Tips for Preparing Your House for Sale This Spring

20 Tips for Preparing Your House for Sale This Spring [INFOGRAPHIC]

Tips for Preparing Your House for Sale This Spring [INFOGRAPHIC] | MyKCM

Highlights:

  • When listing your house for sale your top goal will be to get the home sold for the best price possible!
  • There are many small projects that you can do to ensure this happens!
  • Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!

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Freddie Mac: Rising Mortgage Rates DO NOT Lead to Falling Home Prices

Freddie Mac: Rising Mortgage Rates DO NOT Lead to Falling Home Prices

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Is a Major Home Renovation Worth It in the Long Run?

Is a Major Home Renovation Worth It in the Long Run?

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Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

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Dreaming of a Luxury Home? NowÂ’s the Time!

Dreaming of a Luxury Home? Now’s the Time!

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DON'T WAIT FOR LOWER HOME SALES PRICES....SALES PRICE VERSUS INTEREST RATES...DON'T LOSE PURCHASING POWER...

When a buyer asks me if they should hold off purchasing a home and wait for lower sales prices I am quick to point out the loss of purchasing power as mortgage interest rates increase.

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7 Factors to Consider When Choosing A Home to Retire In

7 Factors to Consider When Choosing A Home to Retire In

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The Cost of Waiting: Interest Rates Edition

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC]

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Now Is The Time To Moving Up.... It Is MORE Affordable Now Than Almost Any Other Time in 40 Years

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years

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You Can Save for a Down Payment Faster Than You Think!

You Can Save for a Down Payment Faster Than You Think!

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4 Reasons Spring is a Great Time to Buy a Home!

4 Reasons Spring is a Great Time to Buy a Home!

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NORTH SAN DIEGO COUNTY REAL ESTATE REPORT FROM HOMEDEX....

Homes continue to move quickly with multiple offers from Buyers.  Inventory continues to be low as for February only 1,930 homes for sale, which is down -16.6% from 2017.  If you are considering Selling your Home, now is the perfect time before more homes/competition come on the market in early April and May.  If you would like a FREE Market Analysis of your home, please give me a call:  Mike Brown - Broker - 760.822.8734

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Home Prices: The Difference 5 Years Makes


Home Prices: The Difference 5 Years Makes

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Competition is Coming, Are You Thinking of Selling Your Home?

Competition is Coming, Are You Thinking of Selling Your Home?

Competition is Coming, Are You Thinking of Selling Your Home? | MyKCM

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban DevelopmentResidential Sales Report, the number of these permits were up 7.4% over last year.

How will this impact buyers?

More inventory means more options. Lawrence Yun, NAR’s Chief Economistexplained this is good news for the housing market – especially for those looking to buy:

“This rise in single-family housing construction will help tame home price growth, and the increase in multifamily units should continue to help slow rent growth.”

How will this impact sellers?

More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:

  1. A great price on their home as buyers outbid each other for it
  2. A quick sale as buyers have so little to choose from
  3. Fewer hassles as buyers don’t want to “rock the boat” on the deal

With an increase in competition, the seller may not enjoy these same benefits. As ChiefEconomist Nela Richardson, added:

“Because existing home inventory has been so low for so long, new construction is taking a larger share of the market…Builders meet the buyers and see the demand firsthand.”

Bottom Line

If you are considering selling your house, you’ll want to beat this new competition to market to ensure you get the most attention for your listing and the best price.

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Housing Market Expected To “Spring Forward” This Year

Housing Market Expected To “Spring Forward” This Year

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4 Reasons to Sell This Spring

4 Reasons to Sell This Spring

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Are Home Values Really Overinflated?


Are Home Values Really Overinflated?

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ItÂ’s Tax SeasonÂ… Use Your Refund to Jump Start Your Down Payment Savings!

It’s Tax Season… Use Your Refund to Jump Start Your Down Payment Savings!

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

 

The darker the blue, the closer your tax refund gets you to homeownership! For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream!

Bottom Line

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

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Is Now a Good Time to Rent? No Not Really...Rents Are Going Up Very Fast in Southern California...

Is Now a Good Time to Rent?

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Latest NAR Data Shows Now Is a Great Time to Sell!

Latest NAR Data Shows Now Is a Great Time to Sell!

Latest NAR Data Shows Now Is a Great Time to Sell! | MyKCM

We all realize that the best time to sell anything is when demand for that item is high, and the supply of that item is limited. Two major reports released by the National Association of Realtors (NAR) revealed information that suggests that now is a great time to sell your house.

Let’s look at the data covered in the latest REALTORS® Confidence Index and Existing Home Sales Report.

REALTORS® CONFIDENCE INDEX

Every month, NAR surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions.” This month, the index showed (again) that homebuying demand continued to outpace the supply of homes available in January.

The map below illustrates buyer demand broken down by state (the darker your state, the stronger demand there is).

Latest NAR Data Shows Now Is a Great Time to Sell! | MyKCM

In addition to revealing high demand, the index also shows that compared to conditions in the same month last year, seller traffic conditions were ‘weak’ in 22 states, ‘stable’ in 25 states, and ‘strong’ in only 4 states (Alaska, Nevada, North Dakota & Utah).

Takeaway: Demand for housing continues to be strong but supply is struggling to keep up, and this trend is likely to continue throughout 2018.

THE EXISTING HOME SALES REPORT

The most important data revealed in the report was not sales but was instead the inventory of homes for sale (supply). The report explained:

  • Total housing inventory rose 4.1% from December to 1.52 million homes available for sale.
  • Unsold inventory is 9.5% lower than a year ago, marking the 32nd consecutive month with year-over-year declines.
  • This represents a 3.4-month supply at the current sales pace.

According to Lawrence Yun, Chief Economist at NAR:

“Another month of solid price gains underlines this ongoing trend of strong demand and weak supply. The underproduction of single-family homes over the last decade has played a predominant role in the current inventory crisis that is weighing on affordability.”

In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values.

As we mentioned before, there is currently a 3.4-month supply, and houses are going under contract fast. The Existing Home Sales Report shows that 43% of properties were on the market for less than a month when sold.

In January, properties sold nationally were typically on the market for 42 days. As Yun notes, this will continue unless more listings come to the market.

“While the good news is that Realtors in most areas are saying buyer traffic is even stronger than the beginning of last year, sales failed to follow course and far lagged last January’s pace. It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market and supply will ‘fail to catch up with demand’ if a ‘sizable’ supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out searching for your house.

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The Mortgage Process: What You Need to Know

The Mortgage Process: What You Need to Know [INFOGRAPHIC]

The Mortgage Process: What You Need to Know [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Many buyers are purchasing a home with a down payment as little as 3%.
  • You may already qualify for a loan, even if you don’t have perfect credit.
  • Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.

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Mortgage Rates on FIRE! Home Prices Up in Smoke?

Mortgage Rates on FIRE! Home Prices Up in Smoke?

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80% of Renters Believe Homeownership is a Part of Their American Dream

80% of Renters Believe Homeownership is a Part of Their American Dream

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2 Ways to Get the Most Money from The Sale of Your Home

2 Ways to Get the Most Money from The Sale of Your Home

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

A study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

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Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling!

Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling!

Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling! | MyKCM

Whether you are buying or selling a home it can be quite the adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal. But 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 by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

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 his or her 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?

There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best deals possible), to the home inspection companies, all the way to the appraisers, there are at least 11 different people who you will need to be knowledgeable of, 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 amount of 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 a study by Collateral Analytics, FSBOs achieve prices significantly lower than those from similar properties sold by real estate agents:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

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 on the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home 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 lowball 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 his or her finger on the pulse of the market will make your buying or 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 replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?

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Should I Wait Until Next Year to Buy? Or Buy Now?

Should I Wait Until Next Year to Buy? Or Buy Now? 

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The Stock Market May Be Shaky...However, Calm Down! The Real Estate Market is NOT Falling Apart

Calm Down! The Real Estate Market is NOT Falling Apart

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Which Comes FirstÂ… Marriage or Mortgage?

Which Comes First… Marriage or Mortgage?

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LOW INVENTORY HAS PUSHED HOME PRICES HIGHER...

Low Inventory Pushes Home Prices Higher

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The #1 Reason to Sell Now Before Spring

The #1 Reason to Sell Now Before Spring

The #1 Reason to Sell Now Before Spring | MyKCM

The price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2017:

The #1 Reason to Sell Now Before Spring | MyKCM

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

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Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

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Where Are Mortgage Interest Rates Headed in 2018?

Where Are Mortgage Interest Rates Headed in 2018?

Where Are Mortgage Interest Rates Headed in 2018? | MyKCM

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

Where Are Interest Rates Headed? | MyKCM

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line 

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.

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Millionaire to Millennials: DonÂ’t Rent a HomeÂ… Buy!

Millionaire to Millennials: Don’t Rent a Home… Buy!

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Bidding Wars AboundÂ… How Long Will They Continue?

Bidding Wars Abound… How Long Will They Continue?

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Whether You Rent or Buy, Either Way YouÂ’re Paying a Mortgage!

Whether You Rent or Buy, Either Way You’re Paying a Mortgage!

Whether You Rent or Buy, Either Way You're Paying a Mortgage! | MyKCM

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

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5 Reasons Homeowners Can Throw Better Super Bowl Parties!

5 Reasons Homeowners Can Throw Better Super Bowl Parties! 

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STUDY SHOWS "MILLENNIALS DESERVE MORE CREDIT"

Study Shows “Millennials Deserve More Credit”

Study Shows "Millennials Deserve More Credit" | MyKCM

When it comes to talking about millennials, there are many stereotypes out there that have influenced the way the public feels about the generation. Whether it’s the assumption that millennials are irresponsible with money and would rather buy avocado toast than save for a down payment, or that millennials jump from job to job, the majority of these stereotypes paint the generation in a negative light.

A new study by Bank of America entitled Better Money Habits Millennial Report recently came to the defense of the generation when it reported that:

“Millennials deserve more credit – both from themselves and from others – for their mindfulness when it comes to money and their lives.”

Here are some key takeaways from the study proving that millennials deserve more credit for what they are already doing:

  • 63% are saving – (47% have $15,000 or more in savings)
  • 54% are budgeting – (73% who have a budget stick to it every month)
  • 57% have a savings goal – (67% who have a goal stick to it every month)
  • 46% have asked for a raise in the past 2 years – (80% who asked for a raise got one)
  • 59% feel financially secure – (16% have $100,000 or more in savings)

Many have wondered if millennials even want to own their own homes or if they would choose to rent instead. Well, not only do they want to own their own homes, but many already do and are looking to trade up! A recent study by realtor.com shows that 49% of Americans who plan to sell their home in the next 12 months are millennials!

Danielle Hale, realtor.com’s Chief Economist, gave some insight into why millennials are looking to sell,

“The housing shortage forced many first-time homebuyers to consider smaller homes and condos as a way to literally get their foot in the door. Our survey data reveals that we may see more of these homes hitting the market in the next year.”

Bottom Line

Not every millennial fits into the stereotypes that are so prominent in our society. Those who have risen above the stereotype are ready and willing to buy a home of their own, and many others already have!

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2 MAJOR MYTHS HOLDING BACK HOME BUYERS...

2 Major Myths Holding Back Home Buyers

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U.S. Housing Inventory Crunch ContinuesÂ… List Your House Today!

U.S. Housing Inventory Crunch Continues… List Your House Today!

U.S. Housing Inventory Crunch Continues… List Your House Today! | MyKCM

Every winter, families across the country decide if this will be the year that they sell their current houses and move into their dream homes.

Mortgage rates hovered around 4% for all of 2017 which forced many buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!

At the same time, however, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Trulia reported that “in Q4 2017, U.S. home inventory decreased by 10.5%. That is the biggest drop we’ve seen since Q2 2013.”

Here is a chart showing the decrease in inventory levels by category:

U.S. Housing Inventory Crunch Continues… List Your House Today! | MyKCM

The largest drop in inventory was in the starter home category which saw a 19% dip in listings.

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2018, now may be the perfect time.

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If YouÂ’re Considering Selling, ACT NOW!!

If You’re Considering Selling, ACT NOW!!

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Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | MyKCM

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home)

The chart below illustrates the changes in home price estimates over the last two years.

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | MyKCM

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Bottom Line 

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this and any other obstacles that may arise.

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Why You Need a Professional on Your Team When Buying a Home

Why You Need a Professional on Your Team When Buying a Home

Why You Need a Professional on Your Team When Buying a Home | MyKCM

Many people wonder whether they should hire a real estate professional to assist them in buying their dream homes or if they should first try to go through the buying process on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide If You Are Traveling a Dangerous Path

The field of real estate is loaded with landmines; you need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and is ready for you to move into can be tricky. An agent listens to your wants and needs, and can sift through the homes that do not fit within the parameters of your “dream home.”

A great agent will also have relationships with mortgage professionals and other experts that you will need in order to secure your dream home. 

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands, of dollars. Each step of the way – from the original offer to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating his or her commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal. 

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

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Buying A Home Is More Affordable Than Renting In 54% Of US Counties

Buying A Home Is More Affordable Than Renting In 54% Of US Counties

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Where Did Americans Move in 2017?

Where Did Americans Move in 2017? 

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61% of First-Time Buyers Put Down Less than 6%


61% of First-Time Buyers Put Down Less than 6%

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Wondering If You Can Buy Your First Home?


Wondering If You Can Buy Your First Home?

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THINKING ABOUT SELLING YOUR HOME? NOW IS THE PERFECT TIME...

Thinking of Selling? Now is the Perfect Time

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The Impact Staging Your Home Has on Sales Price

The Impact Staging Your Home Has on Sales Price 

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IS YOUR AMERICAN DREAM HOMEOWNERSHIP?

93% Believe Homeownership Is Important in Attaining the American Dream

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FICO® Scores on Approved Home Loans Drop Again


FICO® Scores on Approved Home Loans Drop Again

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The Impact of Tight Inventory on the Housing Market

The Impact of Tight Inventory on the Housing Market

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HOMES IN SOUTHERN CALIFORNIA CONTINUE TO INCREASE IN VALUE THROUGH APPRECIATION..

712,000 Homes in the US Regained Equity in the Past 12 Months!

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EASEMENTS: WHAT ARE THEY AND HOW THE AFFECT REAL PROPERTY

EASEMENTS: WHAT ARE THEY AND HOW THE AFFECT REAL PROPERTY

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Low Inventory Set New Low For Homes on Market in 2017

Time on the Market Drops to New Low in 2017

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The Benefits of Homeownership Go Beyond the Financial

The Benefits of Homeownership Go Beyond the Financial

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How Rising Prices Will Help You Build Family Wealth in 2018

How Rising Prices Will Help You Build Family Wealth in 2018

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HAPPY NEW YEAR!!!...HOPE EVERYONE HAS AN AMAZING 2018

Here’s to a Wonderful 2018!

Here?s to a Wonderful 2018! | MyKCM

We hope 2018 is a great year for you, both personally and professionally!

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Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro...Mike Brown Broker

Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro...Mike Brown Broker

Read More

There's More To A "Housing Bubble" Than Rising Home Prices...


There’s More to a Bubble Than Rising Home Prices

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Top 4 REAL Reasons We Purchase A Home...

Top 4 REAL Reasons We Buy a Home

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SUMMARY & REFERENCE GUIDE ON THE RECENT TAX REFORM BILL PASSED BY CONGRESS....

Read More

FSBO/FOR SALE BY OWNER...You will receive LESS than working with a Professional Real Estate Broker!!!

Top 5 Reasons You Shouldn’t FSBO

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Existing Home Sales Reach Highest Annual Pace in 11 Years


Existing Home Sales Reach Highest Annual Pace in 11 Years [INFOGRAPHIC]

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Home Prices In Southern CA up 8.4% Year Over Year - However, NOT Heading For Another Housing Crash!!!

Housing Prices are NOT Heading for Another Crash

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TOP 5 BENEFITS OF HIRING A REAL ESTATE BROKER...


Top 5 Benefits of Hiring a Real Estate Agent

Read More

Home Prices Continue To Rise...So Does Rents...

Rents Are on the Rise: Don’t Get Caught in the Rental Trap!

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HOME PRICES CONTINUE TO RISE YEAR OVER YEAR IN SOUTHERN CALIFORNIA...UP 8.4%


Home Prices Up 6.54% Across the Country! 

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Great Question!!! - Should Boomers Buy or Rent After Selling Their Homes?

Should Boomers Buy or Rent after Selling?

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It May Cost You More If You Wait Until 2018 To Purchase Your Dream Home

What is the Cost of Waiting Until Next Year to Buy?

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In Today's Extremely Competitive Real Estate Market...Good To Know These 4 Tips For Success...


Before You Make an Offer, Here Are 4 Tips for Success!

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You Must Be Pre-Approved Before You Make An Offer To Purchase Your Dream Home...


Why Getting Pre-Approved Should Be Your First Step

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Thinking About Buying Your Dream Home? Important To Know Your Credit Score...

Thinking About Buying? Know Your Credit Score

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The #1 Reason To List Your Home Today! Would you Sell Your Home For The Right Price???

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HOME PRICES CONTINUE TO RISE YEAR OVER YEAR IN SOUTHERN CALIFORNIA...

Home Prices Up 7% from Last Year

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WHY THE FEDS REQUIRE SO MUCH PAPERWORK TO GET A HOME MORTGAGE IN TODAY'S MARKETPLACE?

Why Is There So Much Paperwork Required to Get a Mortgage?

Why Is There So Much Paperwork Required to Get a Mortgage? | MyKCM

Why is there so much paperwork mandated by the lenders for a mortgage loan application when buying a home today? It seems that they need to know everything about you and requires three separate sources to validate each and every entry on the application form.

Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

1. The government has set new guidelines that now demand that the bank proves beyond any doubt that you are indeed capable of paying the mortgage.

During the run-up to the housing crisis, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.

2. The banks don’t want to be in the real estate business.

Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

However, there is some good news in the situation.

The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate around 4%.

The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process, but also paid a higher interest rate (the average 30-year fixed rate mortgage was 8.12% in the 1990s and 6.29% in the 2000s).

If you went to the bank and offered to pay 7% instead of around 4%, they would probably bend over backward to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

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Winter In Souther California...Warm & Sunny...5 Reasons To Sell Your Home This Winter!


5 Reasons to Sell This Winter!

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IS IT TOO EASY TO GET A HOME MORTGAGE TODAY?

Bubble Alert! Is it Getting Too Easy to Get a Mortgage?

Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | MyKCM

There is little doubt that it is easier to get a home mortgage today than it was last year. The Mortgage Credit Availability Index (MCAI), published by the Mortgage Bankers Association, shows that mortgage credit has become more available in each of the last several years. In fact, in just the last year:

  • More buyers are putting less than 20% down to purchase a home
  • The average credit score on closed mortgages is lower
  • More low-down-payment programs have been introduced

This has some people worrying that we are returning to the lax lending standards which led to the boom and bust that real estate experienced ten years ago. Let’s alleviate some of that concern.

The graph below shows the MCAI going back to the boom years of 2004-2005. The higher the graph line, the easier it was to get a mortgage.

Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | MyKCM

As you can see, lending standards were much more lenient from 2004 to 2007. Though it has gradually become easier to get a mortgage since 2011, we are nowhere near the lenient standards during the boom.

The Urban Institute also publishes a Home Credit Availability Index (HCAI). According to the Institute, the HCAI:

“Measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates … it is easier to get a loan.”

Here is a graph showing their findings:

Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | MyKCM

Again, today’s lending standards are nowhere near the levels of the boom years. As a matter of fact, they are more stringent than they were even before the boom.

Bottom Line

It is getting easier to gain financing for a home purchase. However, we are not seeing the irresponsible lending that caused the housing crisis.

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CARLSBAD CA REAL ESTATE UPDATE FOR WEEK ENDING NOV 27 2017

The City Of Carlsbad Real Estate Update...

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Why Are Home Prices Increasing Significantly In Southern California?

The Real Reason Home Prices are Increasing

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The Truth About Home Affordability...

2 Charts That Show the Truth about Home Affordability

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You Will Be Surprised How Much House You Can Now Afford with Extremely Low Mortgage Rates...

Low Interest Rates Have a High Impact on Your Purchasing Power

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.92%, which is still near record lows in comparison to recent history!

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

Low Interest Rates Have a High Impact on Your Purchasing Power | MyKCM

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard-earned money.

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BUYING YOUR DREAM HOME MAKES MORE FINANCIAL SENSE THAN RENTING A HOME...

The Cost of NOT Owning Your Home

The Cost of NOT Owning Your Home | MyKCM

Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Zillow recently reported that:

“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”

What proof exists that owning is financially better than renting?

1. We recently highlighted the top 5 financial benefits of homeownership:

  • Homeownership is a form of forced savings.
  • Homeownership provides tax savings.
  • Homeownership allows you to lock in your monthly housing cost.
  • Buying a home is cheaper than renting.
  • No other investment lets you live inside of it.

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent paymentalong with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.

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The Cost of RENTING vs. BUYING...

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Home Buying & Selling By Generation...

What Generation Do you and Your Family Belong Too???

Read More

Existing Home Sales Slowed by a Lack of Listings For Buyers...

Existing Home Sales Slowed by a Lack of Listings For Buyers...

Read More

Southern CA Homes Continue To Increase In Value Due To Low Inventory...

Low Inventory Causes Home Prices to Maintain Fast Growth

Read More

Your Home May Not Appraise At A Value You Think It Is Worth...

Homeowners: Your House Must Be Sold TWICE

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Start Your Home Renovations Now...To Sell In The Spring...

Top 4 Home Renovations for Maximum ROI...

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Access To Your Home For Buyers...Can Be More Important Than Price...

Access: A Key Component in Getting Your House SOLD!

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For Sale By Owners Don't Save On The Real Estate Commissions...

FSBOs Don’t Save Real Estate Commission

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NOW IS THE RIGHT TIME TO PURCHASE YOUR DREAM HOME...

Your Friends Are Crazy Wrong If They're Telling You Not to Buy

Read More

Tis The Season...12 Great Reasons You Should List Your Home During The Holidays....

12 Reasons to List During Fall & Winter Months
Why Acting NOW Could BENEFIT You… NOW!
1. Inventory of Competition is Lower. Law of Supply and Demand works! Your home stands out with serious buyers who have less to choose from now. Your odds of selling go UP during this time of year. The % of total inventory sold is great during these months.
2. Only SERIOUS Buyers are out in the fall/winter. Fewer people are in the house, yet are more likely to make an offer.
3. Taking Exterior Photos with Holiday Decorations. This can be a big asset before being left with full-on-winter, dead landscaping… and nothing to dress it up!
4. Homes Show Better While Decorated. Fireplaces, evergreens, and scented candles, all add to the beauty inside… when it’s not so pretty outside. This Contrast can cause YOUR home to show BEST NOW.
5. Little Know Fact: It’s perfectly OK to have specific “no showings-times” during the Holidays. In fact, it’s expected. Just because you’re planning a few days of no showings is no reason to not be for sale the REST of the time. “None this weekend” is perfectly OK.
6. Houses Feel More Like “Homes”. Coming in from the cold… some cozy-home-feelings causes emotion you can’t get other time of the year. People are generally just grateful and happier during this time of year. That can equal a Sale since a lot of Buyers buy on emotion.
7. Online Searches Go Way Up. People stay indoors and tend to do more home research online during times they were outdoors over the spring/summer. If you aren’t listed, they can’t find you online. If you don’t play, you can’t win!
8. End of Year Buyers May Even Pay More. End of year buyers may have mental or actual deadlines they want to meet. With less time to negotiate AND fewer homes competing that could = the BEST price for YOU. Often the % of asking price received is statically higher Nov-March.
9. More Day-time Showings mid-November through January. With holiday time-off, daytime showings increase during this time of year leaving your home free for you during evenings and weekends.
10. End of Year Buyers often has an “urgency factor” they must meet. Many employers hire to start January. There are also tax benefits and other urgency factors that may affect Buyers in Nov/Dec. If you don’t list now, you miss those buyers. They’ve already bought before you ever go on the market if you wait until the new year.
11. Late occupancies are common during this time. Many that need to buy by end of year don’t have to occupy right away, allowing a real win-win. They win buying now, and you may be able to negotiate your move for later while taking your profit out now. This happens over the holidays more than any other time of year.
12. Decreased Demand on Vendors means easier quicker closings. Lenders, appraisers, home inspectors, movers and other vendors are less busy during this time of year, resulting more time for YOUR transaction to be smoother & easier. A huge reason to do this NOW rather than with the “crowds”.


Think of the Peace of Mind you’ll have to be “all done” while others are just starting! --- Not listing now could cause you to miss YOUR perfect buyer who needs to buy NOW.

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Feeling ?Stuck In Place"? Should you continue to Rent or Renovate...

Feeling ‘Stuck in Place’? You Aren’t Alone… And There’s Hope!

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Mortgage Interest Rates Are Going Up...Should You Wait to Purchase Your Dream Home?

Mortgage Interest Rates Are Going Up… Should I Wait to Buy?

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YOUR FREE PERSONAL PATH TO THE MLS TO SEARCH FOR YOUR DREAM HOME...

YOUR PERSONAL PATH TO THE MLS TO SEARCH FOR YOUR DREAM HOME...

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7 Great Reasons To Sell Your Home This Holiday Season...

7 Reasons to List Your Home This Holiday Season

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Experts Say We Are Not In a Housing Bubble...

A Housing Bubble? Industry Experts Say NO!

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HIGHER HOME PRICES ARE BRING FAMILIES TOGETHER...

Multigenerational Households May Be the Answer to Price Increases

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HOME PRICES CONTINUE TO RISE ON LOW INVENTORY OF HOMES AVAILABLE TO BUYERS...

Low Inventory Causes Home Prices to Maintain Fast Growth

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Another VA Success Story...Helped Marine Vet Chris & his wife Karen Purchase Their Dream Home near the Beach in Oceanside

Conversion with Nick Dawson VP at First Choice Loan Service discussing our mutual friends Chris & Karen Graves New Beach Condo in Oceanside.  This is New Home Construction and Nick Dawson approved their VA Loan so they could purchase their Dream Home.

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Considerable Buyer Interest in Purchasing a Home...Continued Low Inventory of Available Homes...

The #1 Reason to List Your House, NOW!

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WE CAN HELP YOU FIND YOUR DREAM HOME - WE HELP BUYERS CLOSE ON NEW HOME CONSTRUCTION

Great time to look at New Home Construction. Rates are low, Builders have inventory to sell. New Luxury Home in North San Diego County. This Beautiful Home has a 5/4, 3,606 sq ft, with Granite Countertops, Stainless Appliances, and Upgraded Flooring. To get more info, pictures, pricing and mortgage info go to http://bit.ly/2sujUFw

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PRICES ARE GOING UPÂ…INTEREST RATES ARE LOWÂ…AND DAYS ON MARKET IS GOING DOWN...

PRICES ARE GOING UP…INTEREST RATES ARE LOW…AND DAYS ON MARKET IS GOING DOWN...

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BEAUTIFUL EXECUTIVE HOME COMING SOON TO PRESTIGIOUS CALAVERA HILLS IN CARLSBAD

COMING SOON TO PRESTIGIOUS CALAVERA HILLS...

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THE CARLSBAD REAL ESTATE MARKET IS ON FIRE!!!!

Attention Home Sellers... The Real Estate Market in Carlsbad and all of North San Diego County is on FIRE!!!  We are receiving multiple offers on all of our Listing. 

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REAL ESTATE MARKET UPDATE FOR CARLSBAD CA ZIP CODES 92008, 92009, 92010, 92011

The Real Estate Market in Carlsbad continues to be on FIRE!!!  We continue to have a very limited inventory of homes available for numerous buyers interested in purchasing their Dream Homes. As of Monday the 29th of May, the Median List Price in the City of Carlsbad is $1,092,500. Prices continue to rise. The 224 properties have been on the market for an average of 59 days.  The average DOM/Days on Market continues to go down on average in Carlsbad. 

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Beautiful Executive Home in Prestigious Evans Point - VIDEO

Welcome home to 5142 Frost Avenue in Prestigious Evans Point in Carlsbad, CA. This Beautiful home has views of the rollings hills, city lights, ocean breezes and all the privacy you could ask for. This desirable property is located a short distance from Award Winning Kelly Elementary and Valley Middle Schools, and the new beautiful Sage Creek High School that specializes in S.T.E.M. education.  

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Escrow Wire Fraud Is On The Rise

Great Information from Fidelity Title who is one of our Title and Escrow Partners relative to Wire Fraud.

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MARKETING UPDATE FOR CARLSBAD CA ZIP CODES 92008, 92009, 92010, 92011

ALTOS MARKETING UPDATE FOR CARLSBAD CA ZIP CODES 92008, 92009, 92010, 92011

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HOME PRICES IN CARLSBAD CA CONTINUE TO RISE...

As we enter into the latter months of 2016, the Real Estate Market has tighten and property values continue to rise in all (4) Carlsbad Zip codes: 92008, 92009, 92010, and 92011

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A TRUSTED BUSINESS PARTNER - FIDELITY NATIONAL TITLE

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What is my ROI or Cost vs Value of Remodeling my Home?

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Contact
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Mike Brown

(760) 822-8734

MikeBrownBroker@gmail.com

Find Your Dream Home