Don’t Forget to Budget for Closing Costs

Don’t Forget to Budget for Closing Costs | MyKCM

When buying a home, it’s important to have a budget and make sure you plan ahead for certain homebuying expenses. Saving for a down payment is the main cost that comes to mind for many, but budgeting for the closing costs required to get a mortgage is just as important.

What Are Closing Costs?

According to Trulia:

When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”

For example, for someone buying a $300,000 home, they could potentially have between $6,000 and $15,000 in closing fees. If you’re in the market for a home above this price range, your closing costs could be greater. As mentioned above, closing costs are typically between 2% and 5% of your purchase price.

Trulia gives more great advice, explaining:

“There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

Budget for Closing Costs

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.”

Bottom Line

As home prices are rising and more buyers are finding themselves competing in bidding wars, it’s more important than ever to make sure your plan includes budgeting for closing costs. Let’s connect to be sure you have everything you need to land your dream home.

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Real Estate Will Lead the Economic Recovery

Real Estate Will Lead the Economic Recovery | MyKCM

Real Estate Will Lead the Economic Recovery. With more U.S. states reopening for business this summer, and as people start to return to work, we can expect the economy to begin improving. Most expert forecasts indicate this economic recovery will start to happen in the second half of this year. As we get back to work and the financial landscape of the country begins to turn around, many experts also agree that real estate has the potential to lead the way in the recovery process.

According to Ivy Zelman of Zelman & Associates:

 “Housing will fare better than expected during this severe downturn.”

In addition, CNBC notes:

How Your Tax Refund Can Move You Toward Home Ownership

“Mortgage demand from home buyers shows unexpectedly strong and quick recovery…The quick recovery has surprised most forecasters.”

Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy of the National Association of Home Builders (NAHB) says:

“Overall, the data lend evidence to the NAHB forecast that housing will be a leading sector in an eventual economic recovery.”

Real Estate Will Lead the Economic Recovery | MyKCM

One of the big reasons why housing has the potential to be such a driving force is the significant impact it has on the local economy. This impact is particularly strong when a newly constructed home is built and sold. According to a recent study by the National Association of Realtors (NAR), the average new home sale has a total economic impact of $88,416. As outlined in the graphic below, this is a combination of income generated from real estate industries, expenditures, and new home construction.With so many unknowns today, especially in the wake of a worldwide pandemic, one known factor is the bright spark the housing market can play in local and national recovery. Buying and selling a home goes well beyond personal growth and satisfaction – it supports our economy as a whole.

Bottom Line

According to experts, the economy will begin to recover in the second half of this year. With real estate as a driver, that recovery may start sooner than we think.

Real Estate Economic Recovery

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Three Reasons Why Pre-Approval Is the First Step in Homebuying

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey | MyKCM

When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.

1. Gain a Competitive Advantage

Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.

2. Accelerate the Homebuying Process

Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.

3. Know What You Can Borrow and Afford

Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach.

Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

Local real estate professionals also have relationships with lenders who can help you through this process, so partnering with a trusted advisor will be key for that introduction. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac also describes the ‘4 Cs’ that help determine the amount you’ll be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.

Bottom Line

Getting started with pre-approval is a great way to begin the homebuying journey. Let’s get together today to make sure you’re on the fastest path to homeownership. Contact one of our preferred lenders and get pre-qualified today!

Dreaming of a new home in 2020? Contact us today!

Silverton: 503.874.4666
Woodburn: 503.446.5411
Keizer: 971.339.5244

Sell Your Home Faster with the Best!

Simply The Best!
Oregon Licensed Real Estate Brokers

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First-Time Buyers Are Searching for Existing Homes This Year

First-Time Buyers Are Searching for Existing Homes This Year | MyKCM

In the latest Housing Trends Report, the National Association of Home Builders (NAHB) measured the share of adults planning to buy a home over the next 12 months. The report indicates the percentage of all buyers that will be first-time buyers looking to purchase a home grew from 58% in Q4 2018 to 63% in Q4 2019.

The results revealed,

“Millennials are the most likely generation to be making plans to purchase a home within a year (19%), followed by Gen Z (13%) and Gen X (12%)…Prospective buyers in the youngest two generations are primarily first-time buyers:  88% of Gen Z buyers and 78% of Millennial buyers are reaching out to homeownership for the first time in their lives.”

With a high demand from first-time homebuyers and a shortage of inventory in the current market, selling your existing home this year might be your best move. Why? Because when homebuyers begin their search, they’re not all looking for new construction. Many are eager to find a little charm and character in a place to call home – possibly yours.

In fact, according to the same study, there is a significant demand for existing homes:

“In terms of the type of home these prospective home buyers are interested in, 40% are looking to buy an existing home and 19% a newly-built home. The remaining 41% would buy either a new or existing home.”

With showing activity up among buyers and more new construction coming to market, as a homeowner, you have the opportunity to sell your existing house now and move up into a new one, or downsize into a home that better fits your current and ever-changing needs.

Bottom Line

Not all buyers are looking for a newly built house. If you’re ready to take advantage of low mortgage rates and a high demand for your existing home, let’s get together to determine how we will market the charming details of your current house to potential buyers.

Dreaming of a new home in 2020? Contact us today!

Silverton: 503.874.4666
Woodburn: 503.446.5411
Keizer: 971.339.5244

Sell Your Home Faster with the Best!

Simply The Best!
Oregon Licensed Real Estate Brokers

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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Why Have a Home Inspection?

New Home Inspection

Why have a home inspection? As real estate brokers, we are often asked about inspections. “Should I have a home inspection on a new house?”  “What about a radon test?” “Are sewer scopes important?” “Is testing for lead base paint important?”

Why Inspections? Why Not?

The answer is relatively easy – Safety matters. Protecting your most significant investment matters. Your family matters. 

Let’s Start with a Home Inspection

Let’s start with a home inspection. What you see is not always what you get. That really cool attic where you can stand up and also envision storing holiday decorations…did you notice the mold? Probably not. A professional inspector will. Did you notice the siding is rotting because it comes into constant contact with the moist soil and plants? An inspector is trained for that. How about that roof that looks almost brand new? My inspector thought so, too, until he got up on the roof and noticed that it was horrible. The seller had simply spray-painted it black. Looked new. Kind of like that old phrase, “It’s like putting lipstick on a pig.”  True story. 

Why have a home inspection on a new house?

Why have a home inspection on a new house? You might feel it is unnecessary and throwing good money after bad because to get an “Occupancy” permit, it just passed inspection. It did pass the building code inspection. A professional home inspector (private) is also the perfect person to help you create a punch list, which is a list of things you want the builder to do prior to moving in. You may know them as the “Blue tag special”, where inspectors will put small pieces of blue tape on areas that he or she wants the builder to correct. A cracked tile in your brand-new island. Paint blotches on your living room wall. Stains in a new carpet. One of our inspectors noticed that the gas meter was upside down. The gas company was going to charge the buyers $1500 to turn it right side up but because of the inspector’s diligence, the builder paid, correctly so. 

The Truth About Sewer Scopes? Part of the Home Inspection

Why a sewer scope? These are inspecting the sewer line that goes from your home to the City sewer main that can be damaged by excavators, rodents, and tree roots. We even recommend sewer scopes on new homes, because contractors and sub-contractors can do damage unknowingly. The repair can be costly, so it’s worth it!

Home Inspections and The Radon Test

Why inspections for radon? Easy. It can kill you. And the tests cost about $150. You can purchase a kit at the hardware store is even less, although you have to capture the sample and send it to a professional lab. It is a naturally occurring gas, and it can be deadly. The mitigation is pretty certain, too. For about $1300 to $2,000, you can have a system installed by professionals that can make your family safe. 

Home Inspection – What About Lead Based Paint?

What about inspections for lead-based paint and asbestos? Same reasons. They can cause major health issues. Again, the inspections are relatively inexpensive, but it is better to know that the problem is there than have your grand-kid digest lead-based paint. The complications can be deadly. 

In general, our belief is that money you spend on inspections, by Oregon-licensed and bonded professionals, is money well spent. For example, a 2,000 s.f. home built in 1940 might cost you $450 to inspect by a pro, but would you rather spend $450 and discover the roof, which would take $14,000 to replace, was folding like a cheap suit and spray-painted? Robert Burton said it best, in 1621 – “Penny wise, pound foolish.” Why a home inspection? Because they simply make sense for you.

Dreaming of a new home in 2020? Let’s get you safely on the road to home ownership! Contact us today!

Silverton: 503.874.4666
Woodburn: 503.446.5411
Keizer: 971.339.5244

Sell Your Home Faster with the Best!

Simply The Best!
Oregon Licensed Real Estate Brokers

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The 2020 Real Estate Projections That May Surprise You

The 2020 Real Estate Projections That May Surprise You | MyKCM

This will be an interesting year for residential real estate. With a presidential election taking place this fall and talk of a possible recession occurring before the end of the year, predicting what will happen in the 2020 U.S. housing market can be challenging. As a result, taking a look at the combined projections from the most trusted entities in the industry when it comes to mortgage rateshome sales, and home prices is incredibly valuable – and they may surprise you.

Mortgage Rates

The 2020 Real Estate Projections That May Surprise You | MyKCM

Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:Since rates have remained under 5% for the last decade, we may not fully realize the opportunity we have right now.

Here are the average mortgage interest rates over the last several decades:

  • 1970s: 8.86%
  • 1980s: 12.70%
  • 1990s: 8.12%
  • 2000s: 6.29%

Home Sales

The 2020 Real Estate Projections That May Surprise You | MyKCM

Three of the four expert groups noted above also predict an increase in home sales in 2020, and the fourth sees the transaction number remaining stable:With mortgage rates remaining near all-time lows, demand should not be a challenge. The lack of available inventory, however, may moderate the increase in sales.

Home Prices

The 2020 Real Estate Projections That May Surprise You | MyKCM

Below are the projections from six different expert entities that look closely at home values: CoreLogicFannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).Each group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing at a greater pace than it did in 2019.

Is a Recession Possible?

In early 2019, a large percentage of economists began predicting a recession may occur in 2020. In addition, a recent survey of potential home purchasers showed that over 50% agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.

For example, Goldman Sachs, in their 2020 U.S. Outlook, explained:

“Markets sounded the recession alarm this year, and the average forecaster now sees a 33% chance of recession over the next year. In contrast, our new recession model suggests just a 20% probability. Despite the record age of the expansion, the usual late-cycle problems—inflationary overheating and financial imbalances—do not look threatening.”

Bottom Line

Mortgage rates are projected to remain under 4%, causing sales to increase in 2020. With growing demand and a limited supply of inventory, prices will continue to appreciate, while the threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market.

Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244


Contact a Local Agent

HOMES FOR SALE IN KEIZER OREGON

Simply The Best!
Oregon Licensed Real Estate Brokers

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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Where is the Housing Market Headed?

2002 Housing Market

Expert Prediction on Where Housing Market is Headed.

Where is the Housing Market Headed in 2020?

Where is the Housing Market Headed in 2020? Here are some highlights to consider.

Some Highlights on Where the Housing Market is Headed:

  • Interest rates will be lower than they have been since before 1980 at 3.8% and are projected to remain steady throughout 2020!
  • According to CoreLogic, home prices will appreciate at a rate of 5.4% over the course of the year.
  • Experts predict that the number of homes sold next year will be equal to or outpace 2019.

Now is Still a Great Time to Sell!

As the housing market is expected to continue to be strong for sellers due to lack of inventory, now may be a great time to sell. Let one of our local agents help you gather the information needed to decide if the time is right for you!

Contact us to receive a full, no obligation market report.

Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244


Contact a Local Agent

BST Realty Blog

Simply The Best!
Oregon Licensed Real Estate Brokers

Information deemed reliable but not guaranteed.

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Biggest Issues Facing The Housing Market

Inventory……Interest rates…..Appreciation

The Biggest Issue Facing Housing Next Year

The housing market will be defined by three things…

This coming year the housing market will be defined by 3 things- inventoryinterest rates, and appreciation.  But the biggest issue the housing market will face in 2020 is an inventory shortage.  There aren’t enough homes on the market for buyers, especially on the lower end of the market. This is a topic that has come up frequently within the past several months.

Based on what is forecasted, we know that interest rates are projected to remain low

Based on what is forecasted, we know that interest rates are projected to remain low and that appreciation is expected to continue as we move into 2020.  Additionally, the upcoming election will provoke many unique perspectives on the health of the US housing market. The challenge will be understanding what is actually happening and how you can best position yourself if you are thinking of buying or selling your home.

Here are several perspectives to consider on the inventory issue facing housing next year:

According to realtor.com:

“Despite increases in new construction, next year will once again fail to bring a solution to the inventory shortage that has plagued the housing market since 2015. Inventory could reach a historic low as a steady flow of demand, especially for entry level homes, and declining seller sentiment combine to keep a lid on sales transactions.”

Diana Olick at CNBC:

“Inventory has been falling annually for five straight months, after it recovered slightly toward the end of last year, due to a spike in mortgage rates. Rates began falling again by spring of this year. Homebuilders have been increasing production slowly, but it’s not enough to meet the increasingly strong demand.”

George Ratiu, Senior Economist with realtor.com

“As millennials — the largest cohort of buyers in U.S. history — embrace homeownership and take advantage of this year’s unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish. The housing shortage is felt acutely at the entry-level of the market, where most millennials are looking to break into the market for their first home.”

Bottom Line

The most important thing you can do is understand what is happening in your local market. You may not be able to avoid some of the issues brought on by low inventory, but you can be educated and prepared. Let’s connect and discuss the options that make the most sense for you and your family.

Search All the Homes

Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

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Selecting Your Real Estate Broker

Selecting Your Real Estate Broker

Having a real estate broker is like having an opinion – virtually everybody has one. And like a good tenant for owners of investment properties, good real estate brokers are gold. 

How do you select a good one? Ask your friends, family, co-workers, your title company friend, your mortgage broker, and the person next to you at Denny’s. Ask the Chamber of Commerce. Look at the signs around town – who is listing the most homes? Usually there is a reason for that. Ask around on Social Media but keep a wary eye on the responses. It is a bit funny when someone asks for a local broker with a great reputation, and a respondent gives a name from a city 40 miles away. See the first line – “virtually everybody has one.” That doesn’t necessarily mean they are putting forth the best agent for you in that local area. It might mean they are recommending their daughter, their golf partner, or someone who sends them a lot of home loan candidates. 

Our best advice? Interview a few, perhaps three. Who is on time? Who understands technology? Who listens after asking you what is important to you? Who lets you get a word in edgewise, and encourages you to wax philosophical about your real estate dreams? With which one do you feel most comfortable? Who is most candid, telling you that your $300,000 home is not actually worth $400,000 like your mom said? Which real estate broker will tell you to see a lender and give it several months of following their sage advice to get your 540 credit score up by paying all your bills on time and reducing your use of credit to 30% or less of your credit line? Which one has the most impressive, user-friendly webpage and doesn’t dabble in silly stuff on Facebook? Which one has a contemporary view of the current market, and can move easily between data and pleasantries? 

Most importantly, which one does what they say they are going to do in the timeframe they said they would do it, and with the quality they promised? Are their presentation materials professional? Did they ask you how you would like to receive the information as to the estimated value of your property in today’s market? If you asked for a one-page summary did, they give you 50 pages of glitz? If you asked for all the bells and whistles with 50 pages of glitz, did they call you and give you a verbal estimate? 

“…In the world of real estate brokers, what sets the best from the rest is relatively simple – service that at least meets if not exceeds your expectations….”

Exceed Expectation!

Testimonials are a good way to help you decide which real estate broker is the best fit for you. Most agents will have several on their web page, and if you are lucky, you may know those who “testify”!

The ideal brokerage is one that has someone there for you. Our belief is that anyone walking into one of our three offices is going to find someone that fits them like a warm glove on a cold winter day. Maybe it is the millennial who lives and breathes technology. Maybe it is the Boomer who has been successful for years and is only now discovering the power of Tweets. Maybe it is the person who genuinely enjoys working with seniors who wish to downsize or the veteran who knows what it takes to help those who serve (or served) get their homeowner dreams fulfilled. 

In the world of real estate brokers, what sets the best from the rest is relatively simple – service that at least meets if not exceeds your expectations. Candor. Someone who believes community service is a privilege and giving back to their community is simply the right thing to do. A real estate broker with knowledge of the market and what is happening in it and to it. Ethics. To us, ethics matter, and our customers deserve at least our best, every day. And a real estate broker who puts you above their commission. The good ones know that if they do these things, the money will follow but more importantly, so will the referrals and lifetime friendships. 

Contact us to get started today!

Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

Bledsoe Santana Team Realty LLC, Oregon Licensed Brokers

Simply The Best!
Oregon Licensed Real Estate Brokers

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Sell Your Home Faster

Tips to Sell Your Home Faster

Tips to Sell Your Home Faster | MyKCM

When selling your house, there are a few key things you can prioritize to have the greatest impact for a faster sale:

1. Make Buyers Feel at Home

Declutter your home! Pack away all personal items like pictures, awards, and sentimental belongings. Make buyers feel like they belong in the house. According to the 2019 Profile of Home Staging by the National Association of Realtors“83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”

Not only will your house spend less time on the market, but the same report mentioned that, “One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.”

2. Keep It Organized

Since you took the time to declutter, keep it organized. Before buyers arrive, pick up toys, make the bed, and put away clean dishes. According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers. Put out a scented candle or some cookies fresh from the oven. Buyers will remember the smell of your home.

3. Price It Right

More inventory coming into the market guarantees there will be some competition. You want to make sure your home is noticed. A key to selling your house is ensuring it is Priced to Sell Immediately (PTSI)This means you’ll be driving more traffic to your property, and ultimately creating more interest in your home.

4. Give Buyers Full Access

One of the top four elements when selling your home is access. If your home is available anytime, that opens up more opportunity to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one.

Bottom Line

If you want to sell your home in the least amount of time at the best price with as little hassle as possible, a local real estate professional is a useful guide. Let’s connect today to determine what you need to do to sell your home as quickly as possible.

Bledsoe Santana Team Realty LLC, your local real estate experts with 3 offices ready to serve you for all your real estate needs. “At Bledsoe Santana Team Realty LLC, we want to be a warm fire on a cold winter day and are here to serve you throughout the Willamette Valley. We are “Simply the BEST! “ Contact Us

Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

Simply The Best!
Oregon Licensed Real Estate Brokers

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