BUSTED: 4 Myths About Buying Your Home That Just Aren’t True

BUSTED: 4 Myths About Buying Your Home That Just Aren’t True. 

It can be intimidating to dip your toes into the realm of home ownership especially as a first-time homebuyer. To make things worse, there are a number of myths out there about the home buying process.  Such misconceptions have kept many would-be homeowners from realizing the personal and financial rewards of owning a property. To clear things up, here are 4 myths about buying your home that simply aren’t true.

Myth #1 – It’s Cheaper To Rent Instead Of Own

If you buy a property that is within your budget and your mortgage terms allow you to make comfortable monthly payments, the cost of rent can often be higher than mortgage payments.

Sure, there are other expenses associated with owning a property that you wouldn’t be responsible for if you were renting, but one thing that many people forget is the fact that renting does not allow you to build equity.

The ability to build equity into a property that you own is like paying into a savings account – if you buy a home for $200,000, and pay down your mortgage to $175,000 in 5 years, you’ll have $25,000 in home equity that can be tapped into later if you need a lump sum of cash to pay for other large expenses.  If you sell your property down the line, any equity that the property has accumulated will provide you with more profit from the sale of the home.

Myth #2 – Whatever Shows Up On The Inspection Report Is The Seller’s Responsibility

Most offers on a home usually come with a home inspection condition that makes the offer contingent on the acceptance of a home inspection report by the buyer. Many buyers, however, are under the impression that sellers are responsible for any issues that show up on the inspection report.

Although the seller may be required to make certain major repairs as stipulated by the lender, everything is still negotiable. A buyer may ask the seller to fix a minor crack in the basement wall or repair scuff marks on the hardwood flooring, but the seller can refuse leaving the buyer with the decision of whether or not to move forward.

Myth #3 – The Perfect Home Is Out There – I Just Have To Wait For It

Buyers have a tendency to focus too much on all the little things that may be wrong about a house rather than on the majority of the things that are right. Homes are much like people – they aren’t perfect. Even brand new homes may have a few minor flaws.

The goal of a house hunt is to find a perfectly acceptable home – one that may have a couple quirks that you can either live with or fix, but is otherwise ideal. An experienced buyer’s agent can help you identify issues that are deal-breakers and keep perspective separating little annoyances from the big picture.

Myth #4 – I Don’t Need A Real Estate Agent To Buy A House

Without the proper team behind you – especially if you’re a first-time homebuyer – you could potentially find yourself in a compromised position. Many buyers don’t take the time necessary to shop for an agent who can best represent them in their purchase.

Think about it this way – would you perform surgery on yourself? Do you feel comfortable filing your own income taxes, or do you opt to use the services of an accountant? Being represented by a licensed real estate agent will give you the benefit of professional skills and knowledge, including the ability to find financing and close the deal with your best interests put first.  Call Terry Robinson and The Early-Group, your trusted Conifer, Evergreen, Pine, Bailey, Morrison and Front Range/Foot Hill Real Estate Team.  303.748.3838

It’s always in your best interest to have an experienced, knowledgeable agent represent you in a home purchase. With such a major investment on the line, you want someone who can help you complete a purchase leaving no stone unturned, ultimately saving you money and a lot of headaches.  A professional real estate agent will be able to sort the myths from the reality and make your first home-buying experience a positive one.

Why Buying Real Estate Can Be A Smart Financial Move

Why Buying Real Estate Can Be A Smart Financial Move

Buying Conifer or Evergreen real estate doesn’t just give you a place to live; it can also be a very smart financial move.  This is because owning a home can be like having a forced savings account, which you are committed to for the long term.

Consistent Saving On Autopilot

Sometimes saving money on our own each month is difficult. It takes a lot of discipline to maintain a consistent savings plan.  However, paying your mortgage every month means that you are paying down the principal and working toward eventually owning the property outright.

In the early years of the mortgage, the payments will go primarily to the interest on the loan.  But over time, the portion of your payment dedicated to principle increases, which accelerates paying off the entire mortgage.

Make Yourself Wealthy Instead Of Your Landlord

In the long term, owning your own home may be a much better financial arrangement than renting a home. No matter how long you pay monthly rent, you will never own the real estate that you are living in.  When you are renting your home, it may also be possible for your landlord to increase your rent every year.

On the other hand, paying a mortgage on your real estate means that every month you get closer to owning the home.  In fact, most home mortgage lenders offer a fixed interest rate mortgage. This gives you a sense of control over how much you are paying every month, year to year.

In a fixed rate mortgage, every mortgage payment pays down a portion of the principle on your mortgage loan.  In many cases this builds equity in your property and increases your net worth.  It’s a good idea to check with a professional mortgage lender to get an idea of the most up-to-date programs available.

Real Estate May Increase In Value Over Time

Over the years, your home might appreciate in value. Many experts say that the average home value increase each year over longer stretches of time, although this will vary according to the area you live in, the current economy and other factors.  Your home’s value may very well fluctuate throughout the years, but history has shown that over the long term, buying a home can be a very beneficial financial decision.

Understanding the benefits of home ownership, including the potential financial upside of purchasing your own home, can be an excellent way to further your overall personal financial plan.

Clever Tips for Paying Off Your Home Mortgage Faster

Clever Tips for Paying Off Your Home Mortgage Faster

Paying off the mortgage on your Colorado home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property sooner, but you may also save thousands of dollars in mortgage interest payments over time and enjoy the all that the Denver lifestyle has to offer .  Below are seven clever tips to help you get your mortgage payments on the fast track.

Save for a large down payment Make as large of a down payment as you can reasonably afford. The more cash you can put down, the less you’ll have to borrow from the bank. This will reduce your monthly mortgage obligation.

Read the fine print When you are choosing a mortgage, ask your lender if there are restrictions related to paying extra principal monthly. Some lenders will charge you for making extra or early payments.

Prepay early in the life of the mortgage The early years of a mortgage are interest-heavy. On a 30-year mortgage, throughout the first five to seven years, you payments are mostly interest. Request an amortization schedule of your mortgage to get a clear picture of how this works.

Be smart with unexpected fortune If you get an unexpected chunk of cash, such as a gift, prize, work bonus, inheritance, tax refund or other windfall, consider applying it directly toward paying down the principal on your mortgage.

Double-check your records When you make extra payments, ensure that they are processed correctly. Sometimes when the lender receives a payment that is outside of the monthly cycle, they may not know what to do with it. Make a special note and keep track of the payments yourself, so you can make sure they’ve been applied to your principal.

Increase your payment Even increasing your monthly mortgage payment by a small amount may take years off the length of your mortgage. Consider how much additional you can afford to pay every month rather than just the minimum required payment amount.

Think about a bi-weekly payment Many lenders offer accelerated, bi-weekly mortgage payment programs which can reduce your loan term by several years, saving mortgage interest over the life of the loan.

These are just a few techniques you can use to pay off your mortgage more quickly. Remember, the fewer years you pay on your home loan, the less mortgage interest you pay over time.

 

That Was Then, This is Now: How Much Things Have Changed in The Housing Market.

That Was Then, This is Now:  How Much Things Have Changed in The Housing Market.

As 2013 gets underway, Colorado’s housing market is poised to continue the steady recovery that began last year. Houses on sale and the median sale price rose in most of our markets last year, and industry economists expect more improvement this year. Foreclosures and short sales continue to decline.

The only problem seems to be that many potential sellers don’t realize that things have changed so dramatically since the downturn of the housing market, and they’re missing out on a tremendous opportunity.

There’s a severe shortage of homes for sale in many areas, which means that homeowners savvy enough to list their home right now are often getting multiple offers – and sometimes at prices we haven’t seen in several years!

Available inventory of homes for sale in much of our region is down 50 percent or more just in the past year. Right now, there are more eager buyers out there than homes on the market to meet their demand.

With an imbalance between supply and demand, homebuyers have been fiercely competing with each other, and that’s great news for sellers.

The Denver Metro Area is one of a growing number of metropolitan areas across the country now considered a seller’s market, according to Metrolist, the region’s multiple listing service. In both November and December, the number of homes sold, under contract or pending settlement outnumbered those available.

Approximately 3,400 homes sold in the region last month, an 8 percent jump from a year ago, and the average sale price climbed even faster, reaching $289,926, a 14 percent increase over the same month a year ago.

This representation is based in whole or in part on data gathered from the IRES MLS. Neither the member Boards of Realtors nor their MLS guarantees or is in any way responsible for its accuracy.

 

The inventory of single-family homes and condominiums has dropped by more than 50 percent from its high in July of 2010, Metrolist reported. Inventory at the end of December was the lowest it has been since 1998. And the average number of days it took to sell a home has fallen to just two and a half months.

The same trends that we are seeing here in Colorado are occurring in markets across the country, according to the National Association of Realtors.

Home sales nationwide rose to a seasonally adjusted annual rate of 5.04 million in November, the highest level since November 2009, when the annual pace spiked at 5.44 million, NAR reported.

“Momentum continues to build in the housing market from growing jobs and a bursting out of household formation,” said Lawrence Yun, NAR’s chief economist. “With lower rental vacancy rates and rising rents, combined with still historically favorable affordability conditions, more people are buying homes.”

Yun said healthy market demand and shortage of listings is driving up prices once again. “A diminishing share of foreclosed property sales is helping home values,” he noted. “Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions.”

Total housing inventory at the end of November nationwide fell 3.8 percent to 2.03 million existing homes available for sale, which represents a 4.8-month supply at the current sales pace. It was down from 5.3 months in October and is the lowest housing supply since September of 2005 when it was 4.6 months, NAR reported.

Listed inventory is 22.5 percent below a year ago when there was a 7.1-month supply. Raw unsold inventory is now at the lowest level since December 2001 when there were 1.89 million homes on the market, NAR said.

Compared with a year ago, home listings are down in every price category in each of the nation’s 30 largest housing markets, according to a study by real estate website Zillow.

The tight inventory conditions won’t last forever, of course. In an interview with USA Today, Zillow economist Stan Humphries said tight inventories will push up prices, encouraging more people to list homes.

So where does this all leave you? If you’ve been putting off selling your home, you may want to seriously consider getting back into the market right now. As the New Year gets under way, the pendulum has swung back into a seller’s market. But there’s no guarantee how long that will last.

Buyers are out there looking, prices are climbing once again and there just aren’t enough good home listings to go around. With such strong buyer demand and a shortage of listings, this may be the best time to sell your home. We’re ready to help you get started today! Give us a call 303.816.7516.

 

 

 

 

 



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