Uncategorized • December 24, 2024

The #1 Reason People Move: To Be Closer to Family and Friends

by Mike Kener

Have you ever considered packing up and moving to be closer to the people who mean the most to you? Maybe you’re tired of long drives to see your family or wish your kids could spend more time with their grandparents. A lot of other people feel the same way.

According to recent data from the National Association of Realtors (NAR), the desire to be near family and friends is the #1 reason people move (see graph below):

That’s because moving isn’t just about finding a new house – it’s about living where you’re surrounded by the people who matter most. Living near loved ones changes everything, whether it’s catching up over weeknight dinners, watching your kids play with their cousins, or just knowing someone’s there when you need them.

Let’s dive into why so many people are making this move and how it could be the best decision for you, too.

Why Family Comes First

Living near family and friends is a universal motivator that applies to all buyers, whether buying their first home or making a significant lifestyle change.

But it’s essential to repeat buyers. Unlike first-time homebuyers, who may be more focused on looking in more affordable areas, repeat buyers often have more flexibility on where they live. Many Baby Boomers, for example, have built significant equity in their homes, allowing them to prioritize what matters most – like retiring near their grandkids. As Ali Wolf, Chief Economist at Zonda, says:

“25% of Baby Boomer households plan to retire near their children and grandchildren . . .”

Moving closer to friends and family is about creating a meaningful next chapter in your life in which loved ones are just around the corner.

The Benefits of Living Near Loved Ones

But moving closer isn’t just a lifestyle choice – it’s a decision that offers tangible benefits:

Spending More Time Together Whether it’s joining family dinners, going to weekend activities, or simply having someone nearby to talk to, these moments strengthen relationships and make life more fulfilling.
Sharing Resources Living close to family can also provide practical advantages, such as sharing childcare, tools, or household items.
Cutting Down on Travel Instead of spending hours on the road to spend time together, you can enjoy more spontaneous visits. This not only enhances your quality of life but also provides peace of mind in case of emergencies.
Being There for Big Moments also offers emotional and practical support during life’s milestones. Being close to loved ones helps you feel connected and cared for from graduation to tough times.

Ready To Make Your Move?

Home isn’t just a place you live – it’s where your people are. Whether you’re looking to spend more quality time with family or enjoy the practical benefits of being closer to loved ones, the decision to move closer to those you care about is aroprofoundlyrsonal.

Bottom Line

If you’re considering a change, let’s connect. Together, we can explore neighborhoods that will bring you closer to the people and places you love most.

Uncategorized • December 23, 2024

How Home Equity May Help You Buy Your Next Home in Cash

by Mike Kener

Building equity in your house is one of the most significant financial advantages of homeownership. And right now, homeowners nationwide are sitting on record amounts of it.

Here’s a look at how that equity could be a game changer for you and why it’ll flip your perspective from “Why would I move right now?” to “Why wouldn’t I?”

Home Equity: What Is It?

Home equity is the difference between the value of your house and the amount you owe on your mortgage. For example, if your house is vworth$400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.

Why Equity Is Such a Big Deal for Homeowners Looking To Sell

Recent data from the Census and ATTOM shows how significant today’s home equity is. More than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):

And that’s a big deal. Think about it: 2 out of 3 homeowners have at least 50% home equity. To put a more tangible number on it so you can think about what that means for someone like you, CoreLogic shows the average homeowner has built up $311,000 worth of equity. That net worth can go a long way if you’re trying to make a move.

And that’s part of why the share of all-cash buyers recently reached a new high. According to an annual report from the National Association of Realtors (NAR), 26% of buyers were able to buy without a mortgage (see graph below):

Imagine buying your next house in cash. No mortgage. No monthly payment. There is no interest rate to mess with. If you want to find out how much equity you have to see if that’s an option, connect with a real estate agent and ask for a professional equity assessment report (PEAR).

Who knows, you may find out you have enough equity to buy your next place outright– and with today’s mortgage rates, not having to take out a home loan is pretty incredible. Even if you don’t have enough equity to buy in all cash, you may still have enough to make a larger down payment, which also has its benefits.

Bottom Line

Homeowners have an incredible amount of equity today – and that’s why the share of all-cash buyers is on the rise. To see how much equity you have and talk through how it can help fuel your next move, let’s connect.

Uncategorized • December 20, 2024

Assistance programs for First-Time home buyers

by Mike Kener

Utah offers several programs designed to help first-time homebuyers overcome financial barriers. These programs focus on down payment assistance, affordable mortgage options, and educational resources. Here’s an overview of key assistance programs available in Utah:

1. Utah Housing Corporation (UHC) Programs

The Utah Housing Corporation is a primary source of assistance for first-time buyers in Utah. Their programs are designed to help with down payments, offer competitive mortgage rates, and support low- and moderate-income households.

Key Programs:

FirstHome Loan Program:
- Specifically for first-time homebuyers.
- Provides affordable fixed-rate loans with down payment assistance.
- Income and purchase price limits apply.
HomeAgain Loan Program:
- Designed for repeat buyers but available to first-time buyers as well.
- Offers down payment assistance with slightly more flexible requirements.
Score Loan Program:
- Targets buyers with lower credit scores.
- Requires a slightly higher interest rate but still offers down payment assistance.

Down Payment Assistance:

UHC programs provide loans for down payments and closing costs.
Assistance is structured as a second mortgage with low monthly payments.

2. Federal Housing Administration (FHA) Loans

While not Utah-specific, FHA loans are popular among first-time buyers.

Require a lower down payment (as low as 3.5%).
More flexible credit score requirements (typically 580+).
Buyers in Utah often pair FHA loans with state assistance programs.

3. USDA Rural Development Loans

For buyers in rural or suburban areas of Utah, USDA loans offer:

Zero down payment.
Low interest rates.
Income limits apply, and the property must be in a USDA-eligible area.

4. Veterans Affairs (VA) Loans

If you’re a veteran or active-duty service member, VA loans offer:

Zero down payment.
Competitive interest rates.
No private mortgage insurance (PMI) requirement.

5. Homebuyer Education Courses

Many assistance programs require completing a homebuyer education course. These courses teach budgeting, mortgage basics, and home maintenance.

Examples:

Utah Housing Corporation’s Online Courses.
NeighborWorks America: Offers HUD-certified courses and counseling.
Community Development Corporations (CDCs): Local organizations provide workshops and individual coaching.

6. Local Programs by Cities or Counties

Certain cities or counties in Utah offer their own homebuyer assistance programs. Examples include:

Salt Lake City Down Payment Assistance Program:
- Provides loans of up to $15,000 for down payment and closing costs.
- Zero-interest deferred loans (repayment due upon sale or refinance).
Provo Housing Program:
- Assistance for low-income families purchasing homes in Provo.
- Offers affordable housing options and grants.
Ogden Home Sweet Ogden Program:
- Provides down payment assistance for homes purchased in designated revitalization areas.

7. Tax Benefits for First-Time Homebuyers

Mortgage Credit Certificate (MCC):
- Available through UHC.
- Allows eligible first-time buyers to claim a tax credit on a portion of their mortgage interest.

How to Access These Programs

Contact Utah Housing Corporation:
- Website: www.utahhousingcorp.org
- Provides detailed program guides and participating lender information.
Work with Approved Lenders:
- Many assistance programs require working with lenders certified by the administering organization.
Consult Local Housing Authorities:
- Reach out to city or county housing departments for localized assistance.

Uncategorized • December 20, 2024

The Truth About Down Payments

by Mike Kener

There’s a misconception that you must put 20% of the purchase price down when buying a home. But the truth is, many people don’t put down that much unless they’re trying to make their offer more competitive. And if you want to give your savings a boost, look into down payment assistance. Thousands of programs offer an average benefit of nearly $17,000. To learn more about loan options or down payment assistance programs, contact a trusted lender and check downpaymentresource.com.

Uncategorized • December 19, 2024

Struggling To Sell Your House? Read This.

by Mike Kener

Ideally, when you sell your house, it will go smoothly: you will get top dollar for it, sell it quickly, and everything will go smoothly.

Many people don’t realize that even in today’s market, where there are more buyers than homes for sale, there are still things that can cause delays or even prevent a house from selling. According to Zillow, in 2024, as many as one in three sellers took their home off the market before it sold.

And while the reasons those houses didn’t sell will vary, some general themes come through. If you’re having trouble selling your home, here are the top three hurdles that could be getting in the way and how an expert agent can help you solve these issues.

1. Priced Too High

It’s no surprise that price plays a significant role when you sell. In today’s market, overpricing a home in a high-mortgage rate environment is the biggest thing that keeps homes on the market longer than the norm. As. U.S. News Real Estate says:

“Talk to any real estate expert, and the first thing they’ll tell you is that a house is selling slowly because the price is too high.”

While it’s tempting to push the price higher to get more for your home, overpricing can turn away potential buyers. It can also make your house sit on the market for too long. And the longer it sits, the more skeptical buyers will be that there’s something wrong, even if there isn’t.

Buyers today have so many tools and resources to view homes in your area and compare prices. So, if your house is priced too high, you’ll risk driving away potential offers.

To determine if this is happening with your listing, ask your agent what they hear at open houses and showings. If the feedback is consistent, it may be time to reevaluate your asking price.

2. Not Freshened Up Before Listing

You only get one chance to make a great first impression on a buyer. That’s why sprucing up your house can be the difference between selling or sitting.

First, take into account your home’s curb appeal. There may be easy ways you can clean up the landscaping to make it tidy, inviting, and make an impact. As an article from Realtor.com notes:

” . . . for better or worse, buyers do tend to judge a book by its cover. You want to make sure potential buyers’ first impression of your home is a good one—and inspires them to stop by the open house or schedule a tour—so they can see more.”

But don’t stop at the front door. Small touches like removing personal items, reducing clutter, and cleaning the floors give buyers more freedom to imagine themselves in the home. And inexpensive upgrades like a fresh coat of paint or updated listing photos to match the current season can go a long way toward achieving that wow factor.

When in doubt, lean on your real estate agent for expert advice on whether you need a new game plan to close the deal.

3. Limited Access

Another big mistake you can make as a seller is limiting the days and times buyers can view your house. Because at the end of the day, if buyers can’t take a look around, your chances of selling decline — drastically.

And here’s something else: No matter what market you’re dealing with, buyers from outside the area are often highly motivated. Still, they don’t have as much flexibility or time as local buyers. So, make your house available to give it the best visibility.

Bottom Line

You deserve to check selling your house off your list of goals this year. So, if your home isn’t getting enough attention or your listing is getting stale, don’t be afraid to ask your trusted real estate agent how you can revamp your approach.

Uncategorized • December 18, 2024

The Biggest Perks of Buying a Home This Winter

by Mike Kener

Waiting for perfect market conditions often means missing out. Because what you may not realize is, if you’re ready and able to buy, this time of year could actually give you an edge. Here’s why. As the weather cools down, the housing market can too – and that works in your favor.

You Likely Won’t Feel as Rushed

Homes tend to take a little longer to sell during this time of year. Data from the National Association of Realtors (NAR) shows the average time a house sits on the market jumps up during the winter months (see the green bars in the graph below):

This is partly because fewer buyers are active at this time of year – and that decrease in buyer competition means the houses that are on the market aren’t going to be snatched up as quickly. So, if you decide to buy a home in the next couple of months, you’ll likely have more time to consider your options and negotiate a deal without feeling as pressured.

Sellers May Be More Willing To Negotiate

And since homes generally take longer to sell during the winter, sellers are often more motivated to close a deal. That can work in your favor, too. According to NAR:

“Less competition can lead to better deals. While homes are not selling as fast as during the summer, sellers may be more willing to negotiate.”

Whether it’s compromising on price, covering closing costs or repairs, or including extras like appliances, you have more room to ask for what you need.

Homes Are Less Expensive in the Winter

With less competition from other buyers and sellers who are more willing to negotiate, you may see slightly lower prices too. In fact, according to NAR, homes are typically about 5% less expensive now compared to when prices normally peak in the summer.

That might not seem like a huge difference, but on a $400,000 home, it could mean savings of $20,000 on the purchase price.

You can see this expected seasonal shift in home prices taking place this year. Take a look at the graph below showing the median sales price of existing homes (homes that were previously owned) over the past 12 months. You’ll notice in the green bars that prices were lower in the winter months last year, and it seems like that’s going to happen again this year. That gives you the chance to make your budget go further:

Bottom Line

Buying a home during the winter means less competition, motivated sellers, and potentially lower prices, too. Let’s work together to find the right one at the right price for you.

Uncategorized • December 16, 2024

Only an Expert Agent Can Give You an Accurate Value of Your Home

by Mike Kener

Blog Image

Before you toss a for sale sign in your yard and expect to bring in the number you saw for your house online, you need to understand why these tools generally aren’t spot-on and why working with an expert real estate agent is the best way to get an accurate picture of what your house is worth.

The Myth: Online Home Value Estimates Are Accurate

Online home valuation tools give you an approximate value for your house based on the data that’s publicly available for your home. While this can give you a rough starting point, the keyword here is rough. As an article from Ramsey Solutions says:

“Online Home Value Estimators Aren’t 100% Accurate . . . The estimates are only as reliable as the amount of public record data the real estate websites can access. The less data gathered for your particular neighborhood, county and state, the less you can depend on this number.”

The Reality: Online Estimates Miss Key Factors

The biggest issue with online estimates is that they don’t consider the unique aspects of your home or your local market. And that’s why an agent’s expertise can make a difference when figuring out what your house is worth. Here’s an example. A real estate agent will also factor in:

The Home’s Condition: Online tools cannot tell whether your home has been well-maintained or needs significant repairs. The condition of your house plays a huge role in its value, and only an in-person walk-through can account for that.
The Latest Neighborhood Trends: Is your neighborhood up-and-coming? Are there new developments or amenities nearby that make your home more desirable? Automated tools often overlook local trends that can significantly affect the value of your home.
Accurate Comparable Sales: While online estimates may use past sales data as a baseline, they don’t always reflect the most recent or relevant comparable sales or comps. On the other hand, real estate agents have access to up-to-date market data and can give you a much more accurate estimate based on real-time sales in your area.

Agents have a deep understanding of the local market, and they can provide insights that automated tools can’t match. As Bankrate explains:

“Online estimation tools determine pricing using algorithms that rely on publicly available information. These algorithms can vary widely from one tool to the next and typically don’t account for a home’s current condition or any upgrades or renovations that are not reflected in public records. So they are not as accurate as in-person methods, like a real estate agent’s comparative market analysis . . .”

Bottom Line

While online home value estimates can be a helpful tool to get a rough idea of what your home is worth, they aren’t foolproof. The actual value of your home depends on a range of factors that automated tools can’t account for.

Let’s connect to get the most accurate estimate. That way, you’ll have expert guidance and up-to-date market insights to set your home’s best price.

Uncategorized • December 13, 2024

We want you buy you house! good or bad?

by Mike Kener

We want to buy your house.

The Rise of “I Want to Buy Your House” Businesses: What Homeowners Need to Know

In recent years, businesses have increasingly approached homeowners nationwide with a simple proposition: “I want to buy your house.” These companies often advertise through yard signs, flyers, online ads, or even direct mail, promising fast cash offers for properties in any condition. While this can seem convenient for some, it’s crucial to understand how these businesses operate and what to consider before engaging with them.

What Are “I Want to Buy Your House” Businesses?

These businesses, often referred to as home-buying companies or real estate investors, typically focus on purchasing homes quickly, often below market value. The primary goal of these companies is to acquire properties that can either be flipped for a profit, rented out, or held as investments. They often target homeowners facing financial difficulties, those looking to avoid the hassle of traditional sales processes, or individuals who need to sell their properties urgently.

How Do They Work?

The process usually involves the following steps:

Initial Contact: Home-buying companies often reach out directly to homeowners through various marketing strategies. They emphasize simplicity and quick cash offers.
Property Evaluation: After initial contact, the company will assess the home’s condition and determine its value. In many cases, they may make an offer without requiring the homeowner to repair or stage the property.
Offer Presentation: These companies present a cash offer, typically lower than the property’s market value. The reduced offer reflects the company’s intent to profit from resale or rental.
Quick Closing: One of the main selling points is the speed of the transaction. Once the homeowner accepts the offer, the sale can close in a week.

Who Benefits Most?

Home-buying businesses can be a great option for homeowners in specific situations:

Financial Hardship: If someone faces foreclosure or needs quick cash, these companies can provide immediate relief.
Inherited Properties: People who inherit properties they don’t want to maintain often turn to these buyers.
Homes in Poor Condition: Selling a home needing major repairs is easier through these businesses, as they purchase “as-is.”
Time-Sensitive Moves: For individuals who need to relocate quickly, avoiding the lengthy traditional sales process can be appealing.

What Are the Risks?

While these businesses offer convenience, homeowners should proceed cautiously:

Lower Offers: The cash offer is usually significantly below market value. Homeowners may lose potential profits by not selling through a traditional real estate agent.
Limited Transparency: Some companies may not clearly explain how they calculate their offers.
Scams: Not all home-buying businesses are legitimate. Some may exploit homeowners by charging hidden fees or backing out at the last minute.

How to Protect Yourself

Do Your Research: Investigate the company’s reputation by reading reviews and checking their Better Business Bureau profile.
Get Multiple Offers: Compare offers from different companies to ensure you’re getting the best deal.
Understand the Market: Consult a real estate agent or appraiser to understand your home’s fair market value.
Read Contracts Carefully: Ensure you understand all terms and conditions before signing any agreements.

Conclusion

“I Want to Buy Your House” businesses have carved out a niche in the real estate market by offering quick and hassle-free transactions. While they can be a lifeline for homeowners in certain situations, it’s crucial to weigh the benefits against the potential drawbacks. By taking the time to research and seek professional advice, homeowners can make informed decisions and avoid pitfalls.

Selling your home is one of the most significant financial decisions you’ll make—choose wisely!

Uncategorized • December 13, 2024

What Homebuyers Need To Know About Credit Scores

by Mike Kener

What Homebuyers Need To Know About Credit Scores

Uncategorized • December 12, 2024

The Top 2 Reasons To Look at Newly Built Homes

by Mike Kener

When planning a move, a newly built home might not be the first thing that comes to mind. But with more brand-new homes on the market and builders focusing on smaller, more affordable options, this type of home may just be the key to crossing the homebuying finish line.

Here’s why a new build is worth considering – and how an agent can help you find one that meets your needs and your budget.

1. More Newly Built Homes Are Available Right Now

First, let’s break down the types of homes on the market. A newly built home is a house that was just built or is under construction. On the other hand, an existing home is one a homeowner has already lived in.

Right now, the number of existing homes for sale is still low. And, if you’re struggling to find something you like because there aren’t that many existing homes for sale, opening up your search to include brand-new homes could really expand your options. That’s because there are more newly built homes available right now than in a typical year (see graph below):

From 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. Today, that number has climbed to 28.8%, according to the most recent data.

And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes:

“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.”

While the uptick in new home construction is encouraging, rest assured that builders aren’t overdoing it, they’re just making up for over a decade of underbuilding. There are still way more buyers than there are homes on the market. But the good news for you is this increase in newly built homes means more options for your search.

2. Newly Built Homes Are Becoming Less Expensive

Still skeptical if a new build is right for you or if they’re even in your budget? The average cost of newly built homes has actually come down from a year ago.

Why is that? Builders know affordability is top of mind for homebuyers right now. So they’re focusing their efforts on building smaller homes they can offer at lower price points and are more likely to sell. As Realtor.com says:

“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.”

Something to keep in mind: buying a newly built home isn’t the same as buying an existing one. Builder contracts have different fine print. So be sure to partner with a local agent who knows the market, builder reputations, and what to look for in those contracts.

Bottom Line

Depending on your needs and budget, a new build might be the opportunity you’ve been waiting for to bring your homebuying vision to life. If you’re interested in a brand-new home, let’s connect so you can check out what builders in your area are up to.