The Benefits of Growing Equity in Your Home

The Benefits of Growing Equity in Your Home | MyKCM

Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners.

1. Move-Up Opportunity

With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic,

“In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.”

This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home.

2. Gain in Seller’s Profit

ATTOM Data Solutions recently released their Q2 2019 Home Sales Report, indicating the seller’s profit jumped at one of the fastest rates since 2015. They said:

“A look at the national numbers showed that U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since the original purchase of $67,500…the average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of the original purchase price.”

Looking at the amount paid when they bought their homes, and then the amount they received after selling, we can see that some homeowners were able to walk away with a significant gain.

3. Out of a Negative Equity Situation

Negative equity occurs when there is a decline in home value, an increase in mortgage debt, or both. Many families experienced these challenges over the last decade. According to the same report from CoreLogic,

“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $485.7 billion since the first quarter 2018, an increase of 5.6%, year over year.

In the first quarter of 2019, the total number of mortgaged residential properties with negative equity decreased…to 2.2 million homes, or 4.1% of all mortgaged properties.”

The good news is, many families have moved beyond a negative equity situation, and no longer owe more on their mortgage than the value of their home.

Bottom Line

If you’re a current homeowner, you may have more equity than you realize. Your equity can open the door to future opportunities, such as moving up to your dream home. Let’s get together to discuss your options and start to put your equity to work for you.

Interested in knowing what your home is worth in today’s market? Visit  https://www.nexthomevictors.com/cma/property-valuation/

Dani

Appreciation Is Strong: It Might Be Time to Sell

Appreciation Is Strong: It Might Be Time to Sell | MyKCM

There’s no doubt that today’s housing market is changing, and everything we see right now indicates it is time to sell. Here’s a look at why selling now is likely to drive the greatest return on your largest investment.

Home values have been appreciating for several years now, growing at a strong, steady, and impressive pace. In fact, the average annual appreciation rate since 2012 has nearly doubled the average rate from the more normal market of the 1990s (think: pre-bubble).Appreciation Is Strong: It Might Be Time to Sell | MyKCMAppreciation, however, is projected to shift back toward normal, meaning home prices will likely keep climbing over the next few years, but they are not projected to continue to increase at such a high rate.

Here’s What That Means for Homeowners:

As noted in the latest Home Price Expectation Survey (HPES) powered by Pulsenomics, experts forecast an average annual appreciation rate closer to 3.2% over the next five years, which is more in line with a historically normal market (3.6%). The good news is, there’s still time to take advantage of the current strength of home prices by selling your house now.Appreciation Is Strong: It Might Be Time to Sell | MyKCMLooking at the projections as they stand today, 2019 is slated to drive the strongest appreciation as compared to the upcoming few years. With average home prices still on the rise, the pace at which they are predicted to continue increasing will likely soften by 2020.

Bottom Line

If you’re thinking about selling your house, now is a great time to make your move. Don’t get stuck waiting until projected home price appreciation rates potentially re-accelerate again in 2023. You’ll likely earn the greatest return on your investment by selling now before the prices start to normalize next year.

Are you thinking about buying a home? Download my free Home Seller Guide, “Things to Consider When Selling Your House”. I’m always happy to talk with you about real estate options!

 

Dani

The Importance of a Home Warranty

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What is a Home Warranty?

A home warranty plan is a service contract made with a third party repair company.  Home warranties are designed to protect your home’s appliances and systems from breakdowns caused by normal wear and tear. For an appliance or system to be covered, it must be in working order when the contract is entered into with the warranty company. There are many options when it comes to home warranties, and your REALTOR® will guide you to make sure you get the right coverage. The purpose of the home warranty is to make sure that you are not met with unexpected repairs or system failures during the term of the policy.

A home warranty covers all the major systems of a home. They provide insurance against repairs or failures of electrical, plumbing, water heater, appliances, garbage disposal, heating, air conditioning and sometimes they include roof, pool/spa and even building code issues. The coverage depends on the policy itself, and the price corresponds with the level of coverage. Make sure you have reviewed your contract and coverage before you need to use it. You should be clear on what is covered/not covered (e.g.:- the ac condenser may not be included), any cap limits on coverage, and is there a deductible or trade call fee?

So how does a home warranty work?

If there is a problem with a covered system, you will contact the home warranty company and place a claim. They will then send a repair person to your home to assess and correct the problem. This could entail a minor repair or a complete replacement of the appliance or system.

If you are selling a home, you can purchase a home warranty that will cover your appliances and systems during the listing and up until the sale. The warranty then transfers to the buyer for a period of one year. A home warranty can help to minimize post-sale conflict should an appliance or system fail after the closing.

Most warranties are about $500-$700 per year; a small price to pay for the peace of mind that homes warranty provides.

Ready to make a move? Contact me for a no obligation consultation, and we can discuss the value of your home and marketing options.

Dani 

8 Things Buyers Notice as Soon as they Walk In

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Buyers notice everything, good and bad. From the moment they walk in the front door, they are trying to determine if this is the right home for them and their family. If you have your home listed for sale, paying attention to what the buyers’ notice can mean the difference between an offer and a missed opportunity.

Here are eight things that buyers notice as soon as they walk in a house:

  1. Light- A bright home is inviting. Make sure you fill your home with lots of natural light or a soft evening glow.
  2. Smell- Nothing is less inviting than a strong odor. Even candles and air fresheners can be overwhelming. Less is more and make sure nothing unpleasant is lingering from last nights dinner or your furry friends.
  3. Space- Remove any unneeded furniture and offer a spacious home which flows. If you need a little help, hire a local stager or interior designer for a consultation.
  4. Ceilings- Of course, you can’t make your ceilings higher, but make sure they are free from water stains and spider webs; buyers will look up.
  5. Windows- Make sure windows are clean to maximize light and be sure to wipe down window sills and touch up with fresh paint if needed.
  6. Pictures and personal items- Remove personalization as much as possible so the buyers can imagine their family in the home.
  7. Outdated furnishings and fixtures- If your home is filled with hand-me-downs, consider a professional stager. Old wallpaper or old paint colors should be replaced as well.
  8. Dirty or cluttered rooms- Most important, clean everything thoroughly and box up items you don’t use daily.

A little attention to details will help your home sell faster and for more money.

Ready to make a move? Contact me for a no obligation consultation, and we can discuss the value of your home and marketing options.

Dani