Phil's Blog

3 Reasons to Buy that House NOW!

July 30, 2013
3 Reasons to Buy that House NOW!
Posted: 30 Jul 2013 04:00 AM PDT
house keysHere are three great reasons to consider buying a home today instead of waiting.
1.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic).
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.
2.) Mortgage Interest Rates Are Increasing
As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows.
The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
3.) It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
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Buying a Home? Don’t Let Fear Get in Your Way

July 24, 2013
Buying a Home? Don’t Let Fear Get in Your Way
Posted: 24 Jul 2013 04:00 AM PDT
Our founder, Steve Harney, occasionally asks to do a personal post on what he sees as important to our industry. Today is one of those days. Enjoy! – The KCM Crew
financial burdenLast week, I was talking to a young couple I know that was about to close on their first home. They were riding the wild rollercoaster of current mortgage rate swings and were not happy about the mortgage process overall. Yet, when the conversation shifted to finally living in a home that they own, their disposition changed dramatically.
A smile came across their faces as they talked about decorating their son’s bedroom and how much he will enjoy the backyard. They talked about inviting friends over for dinner and their family over for the holidays. The more they talked, the more excited they became.
I asked them if many of their friends were also buying. I was shocked to find out that they weren’t. Why not? Their friends believed that homeownership was financially unobtainable right now. Many wanted to own but didn’t think they could afford the monthly mortgage payment. They decided to rent instead.
I said that, with interest rates and prices where they are today, owning a home might not be any more expensive than renting one. The couple agreed but said their friends were afraid; afraid they might not qualify for a loan, afraid to handle negotiations with a seller, afraid of the home buying process itself.
Wow!
People should not make decisions out of fear! I’m not saying that every young person should own a home. I am saying that anyone that is qualified and wants to buy should not be afraid of the process. I realize the process may seem daunting but realize over 10,000 homes sell every day in this country. Sit down and discuss your goals with professionals from both the real estate and mortgage industries. Get the facts. Make an informed decision. Don’t let the fear of the unknown prevent you from living the life of your dreams.
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Buying a Home? If You Can, Buy Two

July 22, 2013
Buying a Home? If You Can, Buy Two
Posted: 22 Jul 2013 04:00 AM PDT
OB-KG706_roi093_G_20100930200048[1]John Paulson gave the keynote lunchtime address at the CNBC/Institutional Investor conference recently. He believes that housing will continue its strong recovery for the next 4 to 7 years saying:
“The housing market has bottomed. It’s not too late to get involved. I still think buying a home is the best investment any individual can make. Affordability is still at an all-time high.”
When asked how the average person can take advantage of the current real estate market, Paulson said:
“Buy a home and, if you can, buy a second home.”
Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here is why.
Who is John Paulson?
Paulson is the person who made a fortune back in 2007 betting that the subprime mortgage mess would cause the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell.
If we are to trust anyone’s advice, it should be Mr. Paulson’s.

Attention Agents:

With more experts agreeing that this is the time to buy, buyers will continue to flood the market. Let us help you build a listing inventory that will enable you to help as many of these buyers as possible. Join us on our webinar, The 5 Elements of a PERFECT Listing Presentation, on Thursday, July 25th. You can reserve a seat here.
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