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Is It a Good Time to Sell My House?

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Is It a Good Time to Sell My House? | MyKCM

Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.

Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains:

“Overall, the index’s monthly increase was driven largely by a substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.”

Normally, spring is the busiest season in the housing market – the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say:

“We will pay close attention to see if this newfound optimism develops into a trend.”

What does this mean if you’re thinking of selling your house?

The fact that there are so few houses available for sale today is one driver that’s encouraging consumers to think more positively about selling. The National Association of Realtors (NAR) states:

“Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).”

With so few homes available to buy, your house will be more likely to rise to the top of an eager purchaser’s wish list in this competitive market. Today’s high buyer activity is creating upward pressure on home prices and more multiple-offer scenarios. According to the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing.

In this kind of sellers’ market, you have a huge advantage in the process. And here’s another win – you can also use your equity toward a down payment on a new home when you move.

Wondering where you’ll go if you try to move while it’s so challenging to find a home to buy? Well, in many areas, there are more homes available at the higher end of the market, so finding a move-up home may be less of an issue if you’re ready to search for your dream home this spring.

Bottom Line

If you pressed pause on selling your house last year, now may be the best time to put your plans back into motion while inventory is so low. Let’s connect today to get the process started.

How Smart Is It to Buy a Home Today?

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How Smart Is It to Buy a Home Today? | MyKCM

Whether you’re buying your first home or selling your current house, if your needs are changing and you think you need to move, the decision can be complicated. You may have to take personal or professional considerations into account, and only you can judge what impact those factors should have on your desire to move.

However, there’s one category that provides a simple answer. When deciding to buy now or wait until next year, the financial aspect of the purchase is easy to evaluate. You just need to ask yourself two questions:

  1. Do I think home values will be higher a year from now?
  2. Do I think mortgage rates will be higher a year from now?

From a purely financial standpoint, if the answer is ‘yes’ to either question, you should strongly consider buying now. If the answer to both questions is ‘yes,’ you should definitely buy now.

Nobody can guarantee what home values or mortgage rates will be by the end of this year. The experts, however, seem certain the answer to both questions above is a resounding ‘yes.’ Mortgage rates are expected to rise and home values are expected to appreciate rather nicely.

What does this mean to you?

Let’s look at how waiting would impact your financial situation. Here are the assumptions made for this example:

  • The experts are right – mortgage rates will be 3.18% at the end of the year
  • The experts are right – home values will appreciate by 5.9%
  • You want to buy a home valued at $350,000 today
  • You decide on a 10% down payment

How Smart Is It to Buy a Home Today? | MyKCMHere’s the financial impact of waiting:

  • You pay an extra $20,650 for the house
  • You need an additional $2,065 for a down payment
  • You pay an extra $116/month in your mortgage payment ($1,392 additional per year)
  • You don’t gain the $20,650 increase in wealth through equity build-up

Bottom Line

There are many things to consider when buying a home. However, from a purely financial aspect, if you find a home that meets your needs, buying now makes much more sense than buying next year.

Key Points To Note When Drafting A Contract For A Remodeling Contract

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Key Points To Note When Drafting A Contract For A Remodeling ContractThere are a lot of homeowners who are thinking about carrying out a home remodel during the current era; however, it is important to understand what goes into a home remodel contract. Even though it can be expensive to get the contract reviewed by an attorney, it is critical to take a close look at the contract to make sure the language is correct.

What are some of the most important points that homeowners should keep in mind when it comes to a contract for a home remodel?

Understand The Basics Of A Home Remodel Contract

First, it is important to understand the basics. The home remodel contract will have a lot of numbers and it can be challenging to understand. In general, the home remodel contract must state that the contractor is going to secure any and all necessary permits and approvals, the payment schedule, when the project will start, and when the project will end. Any home remodel contract should also contact the license number of the contractor and include a few days to rescind the contract without penalty should the homeowner change his or her mind.

Review The Payment Schedule

In addition to understanding the start and end dates, read the payment schedule carefully. The first payment should never be any more than 10 percent of the total cost of the job while the final payment should be approximately a third of the total cost of the project to ensure the contractor actually comes back to fix any issues should something go wrong with the project. The final details of a home remodel are important.

Don’t Jump On The Warranty

Finally, do not jump on the warranty even if it sounds great. A warranty for a home remodel is usually packed with a punch of exclusions that are instituted in favor of the contractor and not the homeowner. There are probably state statutes in place that provide much better protection than any warranty that is offered by a contractor. Furthermore, accepting the warranty will remove this protection from the state. Unless a lawyer says to take the warranty, it is better to turn this down and go with state regulations.

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