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Top Reasons to Own Your Home

Top Reasons to Own Your Home [INFOGRAPHIC] | MyKCM
Homes Sold by Jessica Harless | NextHome Realty Center

Some Highlights

June is National Homeownership Month, and it’s a great time to consider the benefits of owning your own home.
If you’re in a position to buy, homeownership might help you find the stability, community, and comfort you’ve been searching for this year.
Let’s connect today to determine if homeownership is the right next step for you and your family.

Homes Sold by Jessica Harless | NextHome Realty Center

Housing Market Positioned to Bring Back the Economy

 All eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary.

Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit.

As Mark Fleming, Chief Economist of First Americanrecently explained:

“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”

Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted:

“For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.”

And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an economic update last week explained:

“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”

Bottom Line

Every time a home is sold it has a tremendous financial impact on local economies. As the real estate market continues its recovery, it will act as a strong tailwind to the overall national economy.

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Homes Sold By Jessica Harless | NextHome Realty Center

Will Home Values Appreciate or Depreciate in 2020?

With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item.

Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.

Seller Supply

The index also asks: “How would you rate seller traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMAs the map above indicates, 46 states and Washington, D.C. reported ‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1 state reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now.

With demand still stronger than supply, home values should not depreciate.

What are the experts saying?

Here are the thoughts of three industry experts on the subject:

Ivy Zelman:

“We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through the year.”

Mark Fleming, Chief Economist, First American:

“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”

Freddie Mac:

“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.”

Bottom Line

Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about listing your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.

Homes Sold by Jessica Harless | NextHome Realty Center

Virtual Home Buying

BY KEITH ROBINSON | APRIL 24, 2020

How in the heck am I supposed to buy a house while I am sheltering in place?? I hardly know what day it is without checking right now. Is it actually possible for me to find a house, evaluate it, write an offer, get it accepted, and close on it? Not to mention moving… is that even legal right now?

Trust me, we hear you. It is always complicated, stressful, and a little emotional buying a house. Maybe even a little more so in this “new normal” (nothing normal about this) of COVID-19. To start with, the answer to all of the above questions is “it depends.” Super helpful, right? The thing is, every state (heck, every county) is approaching this differently. In some states it’s kind of business as nearly normal – just add in vats of hand sanitizer, masks, and 6-feet-away hellos. Others are in lockdown but real estate is deemed essential so you can still transact. And in a few, it’s been deemed non-essential and it’s literally not even possible to close on a home, not to mention see one. So… it depends.

If you are in one of the states (counties) with the first two options, there are some real opportunities out there for buyers right now. We’ve had an inventory shortage in this country for a while now and that is only going to continue with builders slowing down building and more and more millennials entering “household formation” years (a fancy way of saying they can now afford to buy a house). For the buyer with a little creativity and willingness to take action – and the right real estate professional – this could be the time. That being said, it is stressful and a person deciding to hold off to let the dust settle could make sense. The rest of this is for the creative and willing buyer.

Step 1: virtual buyer consultation.  It could be over Facetime, a Zoom meeting, or some other virtual conference room software. We’ve been doing things remote at NextHome since we started our company over five years ago. It’s not quite as good as meeting face-to-face but it’s really close to the same thing. I mean, if virtual happy hours are popping up around the U.S., then we can set up a virtual buyer consultation to have all your questions answered.

Step 2: virtual property search. Now you’ve already been digging through Zillow like a detective looking for the one clue to make your case. Now you’ve got someone to send them to so you can get more information. And you’ve got a partner in detective work who will be doing some digging with you and sending you properties that fit your criteria. Think of it as your virtual property concierge who is there to assist, and sometimes lead, the property finding process. Thank the technology gods that more and more have been developed to help you know a lot about a house before you see it. I know, I know, you’re already wondering what happens when you find your dream house online for that, it’s step 3.

Step 3: video home tours. We’ve all got a camera in our pocket (along with a calculator, take that my 6th-grade math teacher who said I wouldn’t always have one handy)and it’s as easy as ever to “see” a property at a distance. Your agent can get access to the property, fire up that Facetime, Facebook video chat, Google Duo, etc. and walk you through every inch of your future home.

Step 4: electronically sign things. Ok, we like it, no, we love it. Now what? It’s offer writing time. The ability to sign documents at distance has been around for years on the real estate side (come on mortgage side, step your game up, because not everything can be signed digitally there). We have all the real estate contracts, addendums, forms, and such available digitally and can email them to you. Then you would need to lean forward towards the computer screen to read the small print and smush a few mouse clicks –  you’re now in offer, counteroffer, negations, and starting the closing process. You will probably have to go somewhere to sign loan documents (see above about mortgage) but in most areas, they have changed their process to allow for safe signing. Some even have a mobile notary and closing specialist who can come to you to sign everything. Easy peasy lemon squeezy (it’s actually hard hard lemon hard but our trained real estate professionals are there to help you every step of the way).

Step 5: inspections. Buying a house is one of the biggest financial decisions you’ll ever make. There are lots and lots of inspections you can have done. And each of them can be completed, then the reports sent to you via email. We can even set up a virtual conference room to review the report with the inspector and the agent so you can get all your questions answered.

Step 6: transfer funds by wire. Yup, that’s right. You can move money around like a high-powered hedge fund manager. You feel pretty dang cool when you tell the closing facilitator, “I’ll have my people wire the money over.” Trust me. You do.

Step 7: keys, please! As an agent, this was always my favorite part of closing with a buyer.  Giving them their keys. As a real estate agent, there isn’t much more rewarding than seeing the people you’ve helped get the keys to “their home.”  It’s amazing. Now we just do it over a screen instead of in person. There are key delivery services that can have the keys brought right to you. You’ll just have to Facetime when you do it because I know your agent is going to want to see your smiling face when you get them.

Do I write this with the thoughts that someone will buy a house without ever seeing it. No, of course not. What’s important right now is we all stay safe and we can limit the contact as much as we need to for everyone to feel safe. And we’re fully set up to take care of as much of the process virtually as we can. For some buyers, this is the right time to get bold, take action, and go find their house. And for others, they might want to hold off a few months. For both sets of buyers, we’re here to help you whenever you’re ready.

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2020 Homebuying Checklist

Some Highlights:Homes Listed and Sold by Jessica Harless | nextHome Realty Center

  • If you’re thinking of buying a home, plan ahead and stay on the right track, starting with pre-approval.
  • Being proactive about the homebuying process will help set you up for success in each step.
  • Make sure to work with a trusted real estate professional along the way, to help guide you through the homebuying steps specific to your area.
Homes Sold By Jessica Harless -| NextHome Realty Center

Have You Outgrown Your Home?

It may seem hard to imagine that the home you’re in today – whether it’s your starter home or just one you’ve fallen in love with along the way – might not be your forever home.

The good news is, it’s okay to admit if your house no longer fits your needs.

According to the latest Home Price Insights from CoreLogic, prices have appreciated 3.5% year-over-year. At the same time, the National Association of Realtors (NAR) reports inventory has dropped 4.3% from one year ago.Have You Outgrown Your Home? | Simplifying The MarketThese two statistics are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

This is great news if you own a home and are thinking about selling. The equity in your house has likely risen as prices have increased. Even better is the fact that there’s a large pool of buyers out there searching for the American dream, and your home may be high on their wish list.

Bottom Line

If you think you’ve outgrown your home, let’s get together to discuss local market conditions and determine if now is the best time for you to sell.

Homes Sold by Jessica Harless | NextHome Realty Center

Planning on Buying a Home? Be Sure You Know Your Options.

When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited existing home inventory available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams.

According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB),

“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.”

This is great news for homebuyers because it means there is additional inventory coming to the market, giving buyers more choices. The most recent data from NAHB shows,

“The inventory of new homes for sale was 321,000 in September, representing a 5.5 months’ supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300.”

Another added bonus is that builders are very aware of buyer demand in this segment, so they’re now building in a price range where there are more interested buyers ($299,400 instead of $328,300). With a reduced sales price and low-interest rates, today’s buyers have strong purchasing power.

Bottom Line

If you’re thinking of buying a home, you may want to consider a new build to meet your family’s needs. Let’s get together to discuss the process and review what’s available in our area.

Homes Sold By Jessica Harless | NextHome Realty Center

What to Expect from Your Home Inspection

You made an offer and it was accepted. Your next task is to have the home inspected prior to closing. Agents often recommend you make your offer contingent upon a clean home inspection.

This contingency allows you to renegotiate the price you offered for the home, ask the sellers to cover repairs, or in some cases, walk away if challenges arise. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors they’ve worked with in the past to recommend to you. HGTV suggests you consider the following five areas when choosing the right home inspector for you:

1. Qualifications – Find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.

2. Sample Reports – Ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. In most cases, the more detailed the report,
the better.

3. References – Do your homework. Ask for phone numbers and names of past clients who you can call to discuss their experiences.

4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations does, however, often mean continued training and education are required.

5. Errors and Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human, after all, and it is possible they might miss something they should see.

Ask your inspector if it’s okay for you to tag along during the inspection, so they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating and air conditioning systems, ventilation, windows, fireplace and chimney, foundation, and so much more.