The Truth About Homeowner Equity

february2015-27

Weeding out the deceit & falsehoods of the housing market media:

A recent article from a reputable news source was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.” This really could not be further from the truth! The article then goes on to soften that stance but we want to bring better clarity to the equity situation.

A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity in their home. This level of equity allows the homeowner to easily sell their home if they so desire.

If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”

Massachusetts and Connecticut both support the data showing a huge number homeowners with significant equity!

Here is a map showing the percentage of homes in each state which currently have significant equity:

The Truth About Homeowner Equity | MyKCM

Bottom Line

If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, let’s get together to determine if now is the time to sell your home, update, move up or down-size!

Let’s make a good strategy together! 413.301.4614 – tedenton109@gmail.com

Tori Denton, PSA, CMHS, Realtor®

unnamed

 

ToriDentonRealtor.com

Helping you make the right MOVE – One HOME at a time!

Advertisements

The Housing Inventory – What are Realtors SO Whiny About?

There is no doubt that the largest challenge in today’s housing market is a lack of housing inventory for sale. This challenge has been defined as an “overwhelming lack of supply,” and even a “straight up inventory crisis.”

cropped-good1.jpg

First American just released the results of a survey which sheds light on the reasons for the current lack of supply.

The survey asked title agents and real estate professionals to identify what they believe are the top reasons for this lack of inventory in their markets.

Here are the results of the survey:

  • 47% – existing homeowners are worried that they will not be able to find a home to buy
  • 26.5% – first-time buyer demand is absorbing a large share of available homes
  • 11.3% – existing homeowners’ mortgage rates are lower than the current rates
  • 10.6% – insufficient or negative equity in the home
  • 4.6% – foreign buyer demand is absorbing a large share of available homes

february2015-27

As the survey revealed, there is a shortage of current homeowners willing to put their homes on the market for one of three reasons (see numbers 1, 3 and 4 above).

Is this an opportunity for some homeowners?

The report on the survey explains:

“The crowd has spoken, and it seems in many markets home buyers and sellers alike are ‘imprisoned’ by the lack of housing inventory.”

That leaves a tremendous opportunity for every homeowner not facing these concerns. If you can put your home on the market today, you are subject to far less competition than at any time in recent history. That will result in your home selling quickly and for the highest possible price.

Perhaps you are ready to down-size or move to a Condo or 55+ community.  I can help you there.

Is it time to use the equity in your current home to purchase your dream home or build one! I can help with that too!

Simultaneous closings take organization and attention to detail… I’ve done that successfully for others and I can do it for you!

Bottom Line

While many homeowners are feeling imprisoned for multiple reasons, those who are not handcuffed by these concerns have a once in a lifetime opportunity to sell their houses at a peak selling time. Is it your time??

Let’s talk and find out! Why not sit down with me and discuss your options… worse case we have a cup of coffee and get to know each other better.. best case – you sell your house in an amazing market!

20170526_092904

You might not sell houses every month – but I kinda do… Let me give you a helping hand !

Tori Denton, PSA, CMHS, Realtor® ToriDentonRealtor.com 413.301.4614 tedenton109@gmail.com

Turning HOPES & DREAMS into HOMES!

 

NEW TO MARKET -CONDO

NEW TO MARKET! 413.301.4614

82 S Maple St U:44 Westfield MA 01085
This Westfield Condo has everything you could possibly want if you are down-sizing from your current home or looking to purchase your first home!
This condo has many features including tons of storage, 2 big bedrooms, OPEN concept floor plan, A/C, balcony on front AND back…. On-site private Storage unit, NEW ROOF (2017), ample parking, PET-Friendly, and 5 minutes gets you anywhere you need to be!


This is a 2nd floor, single level (garden-style) condo. As a bonus it is also an END unit!
And you won’t believe the price! $68,000 !
That means you can own/ finance this unit for around $600 a month… what?? really?!? YES! add the condo fee and you are looking at less than half what local rents are charging in this area… and- the Condo fee includes your HEAT AND HOT WATER – when do you ever see that?!?
If you sell your current home all you pay is the condo fee – interested in hearing more on this process?
Give me a call and I’d be happy to talk about it further!
Let’s get you into a home that’s just the right size for your current needs!
Tori Denton, Realtor – Helping you make the right MOVE – One HOME at a time!
ToriDentonRealtor.com 413.301.4614 #westfieldforsale #parksquarerealty#forsaleMA #condoforsale #toridentonrealtor

Visit my Website!

Visit Park Square for more info!

 

Do You Know What to do with the Equity in Your Home?

BOTTOM LINE:

If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2017! Let’s get together to evaluate your situation!

That’s what I did with Rodney and Sara – they used the equity in their first home to purchase a new, bigger home that fits the WHOLE family- dogs, toys and all!

Smart move – they went to the closing table owing NOTHING!

WOW! You could do the same…  Let’s talk about your next dream home!

My website

Email: tedenton109@gmail.com

Call or text – 413.301.4614 –

You may not sell a house every week, but I kind of do 🙂

                              Let me give you a hand!

The FACTS:

Do You Know How Much Equity You Have in Your Home? | MyKCM

 

CoreLogic’s latest Equity Report revealed that 91,000 properties regained equity in the first quarter of 2017. This is great news for the country, as 48.2 million of all mortgaged properties are now in a positive equity situation.

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

One million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.”

Frank Martell, President and CEO of CoreLogic, believes this is a great sign for the market in 2017 as well, as he had this to say:

Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home equity is one of the main drivers of improved mortgage performance. Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending and the broader economy.”

This is great news for homeowners! But, do they realize that their equity position has changed?

According to the Fannie Mae’s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize that they may have more equity than they first thought.

This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share of those saying it’s a good time to buy.

78.8% of homeowners have significant equity (more than 20%) in their homes today!

This means that many Americans with a mortgage have an opportunity to take advantage of today’s seller’s market. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae spoke out on this issue:

“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market. However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market…” 

 

Updates, Staging, Preparing – Oh my!

 

20160422_191246
High-end Kitchen upgrades

If you are considering selling your home or just want to make some improvements that will bring a nice return on investment… take a minute and read these articles!

Visit houselogic.com for more articles like this.

 

 

 

 

 

 

 

 

 

 

Copyright 2017 NATIONAL ASSOCIATION OF REALTORS®

 

Got questions?? I’ve got answers – Let’s talk!

Tori Denton, PSA, Realtor

413-301-4614  or tedenton109@gmail.com

Thank you for making me #1 at Park Square Realty Westfield

Why Working with a Local Real Estate Professional Makes All the Difference

Why Working with a Local Real Estate Professional Makes All the Difference | MyKCM

 

If you’ve entered the real estate market, as a buyer or a seller, you’ve inevitably heard the real estate mantra, “location, location, location” in reference to how identical homes can increase or decrease in value due to where they’re located.

Well, a new survey shows that when it comes to choosing a real estate agent, the millennial generation’s mantra is, “local, local, local.”

CentSai, a financial wellness online community, recently surveyed over 2,000 millennials (ages 18-34) and found that 75% of respondents would use a local real estate agent over an online agent, and 71% would choose a local lender.

Survey respondents cited many reasons for their choice to go local, “including personal touch & handholding, longstanding relationships, local knowledge, and amount of hassle.”

Doria Lavagnino, Cofounder & President of CentSai had this to say:

closing-table-1200x675

“We were surprised to learn that online providers are not yet as big a disruptor in this sector as we first thought, despite purported cost savings. We found that millennials place a high value on the personal touch and knowledge of a local agent. Buying a home for the first time is daunting, and working with a local agent—particularly an agent referred by a parent or friend—could provide peace of mind.”

The findings of the CentSai survey are consistent with the Consumer Housing Trends Study, which found that millennials prefer a more hands-on approach to their real estate experience:

“While older generations rely on real estate agents for information and expertise, Millennials expect real estate agents to become trusted advisers and strategic partners.”

When it comes to choosing an agent, millennials and other generations share their top priority: the sense that an agent is trustworthy and responsive to their needs.

That said, technology still plays a huge role in the real estate process. According to the National Association of Realtors, 95% of home buyers look for prospective homes and neighborhoods online, and 91% also said they would use an online site or mobile app to research homes they might consider purchasing.

Bottom Line happysold

Many wondered if this tech-savvy generation would prefer to work with an online agent or lender, but more and more studies show that when it comes to real estate, millennials want someone they can trust, someone who knows the neighborhood they want to move into, leading them through the entire experience.

Whether you’re a millennial or not, your best choice is your local Realtor®

 

Got questions? I’ve got answers – Let’s talk! 413.301.4614 qr code 4133014614

Tori Denton, PSA, Realtor®

Helping you make the right MOVE – one HOME at a time!

 

Here’s WHY You Should BUY

Real Estate Mogul: Here’s Why You Should Buy | MyKCM

Real Estate mogul, Sean Conlon, host of The Deed: Chicago on CNBC, was recently asked the question, should you buy? Or should you rent a house?

 

Conlon responded:

“I am a true believer that you save every penny and you buy your first house… and that is still the fastest path to wealth in this country.”

Conlon went on to suggest that first-time buyers put down 10-20% “if they can make it work,” and to remain in their home at least 4-5 years to see a return on their investment.

Who is Sean Conlon, and why should you listen to his advice?

Within a few years of working in the real estate industry, Conlon had established himself as one of the leading agents in the United States and has founded 3 billion-dollar brokerages dealing in residential, commercial and investment sales. Since immigrating to America from the United Kingdom in 1990, he believes very strongly in the American Dream and the role that homeownership plays in achieving it. Conlon is quoted on his website as saying:

“I treat people the way I would like to be treated if I went in to buy a house and I work harder than anybody I know. I think if you do that in America, you will always succeed.”

Bottom Line

Homeownership is an investment you can leverage against in the future that not only provides shelter and safety but also helps you build your family’s wealth. If you are debating whether or not to purchase a home this year, let’s get together to discuss the opportunities available in today’s market!

Shining the Light on Solar

Before you get involved in Solar energy – please do your homework. Whether you are the buyer or seller in this transaction, there are important things to consider when it comes to the transfer of ownership of your home.

 

Do you Lease or Own the panels?

OWNED PANELS: If the panels are owned by the seller, then they should be factored into the price of your home just as any other asset would be. This can usually be accomplished by searching comparable homes with owned solar panels.

A Solar Renewable Energy Credit (SREC): An SREC is created for every megawatt hour (MWh) of electricity produced by a solar generator. SRECs allow a seller with a solar array to use electricity that is produced by the panels and then separately sell the SREC to a utility company. You should factor in an SREC when valuing the asset.

Some solar owners use SREC brokers to handle the sale, so if you are a seller who is part of a ten-year SREC program you may want to consider selling your future credits through such a broker. If a seller does this, they would then value their solar panels based on the energy savings that they provide.

Buyers need to ask sellers if they are part of an SREC program and whether the SRECs will be transferred with the panels. If they are, a buyer would also want to know what the average annual output of the panels has been so that they can properly value them.

Leased Panels: If the panels are leased, it can be a bit more complicated. When a seller has leased solar panels, it is recommend that the seller contact the leasing company right away to let them know that they are planning to sell the home. In fact, some solar companies have set up departments specifically to work on lease transfers.

What’s a UCC-1: The solar company may reference a UCC-1 (Uniform Commercial Code – 1) that has been recorded with the property. A UCC-1 is a legal form that acts as a lien against the solar equipment on the property and is used by the solar companies to protect their interest in the leased panels. These finds should be recorded at your local registry of deeds. It is important to know whether or not a UCC-1 has been recorded with the property, because some lenders may have concerns that the UCC-1 will take priority over the mortgage in the event of a bankruptcy. Some companies will remove the UCC-1 filing and then replace it when the new mortgage is recorded.

Home Buyers: Buyers who are interested in a home with leased solar panels may want to remember to factor the monthly lease cost when determining whether or not you can afford the home. Your lender will most likely consider this when making a determination on your loan. Also, buyers should review your credit scores because the solar leasing companies are going to ensure that the buyer can assume the costs of the lease before they approve a transfer.

LEASED PANELS:  A seller client has three options when dealing with leased solar panels:

1. They can buy out the lease;

2. Transfer the lease to the new buyer; or

3. Attempt to transfer the panels to their new home, although this option may only be available in rare occasions.

As you can see Solar panels can at the very least complicate the purchase and sale of a house, and at the most stop the transfer all together if the item is not handled properly from the get-go! Please use caution when buying or selling a house with solar panels.

Got questions? I’ve got answers – please feel free to contact with your house Purchase and Sale concerns!

Tori Denton, PSA, Realtor®

413.301.4614

tedenton109@gmail.com

Need more information?

The Attorney General published the following helpful informational sheet on solar panels:

http://www.mass.gov/ago/news-and-updates/press-releases/2016/advice-to-homeowners-considering-solar-panels.html

Source: Shining the Light on Solar BY MAR LEGAL STAFF July/August 2016

How to Get the Most Money When Selling Your Home

SOLD – 2 houses in 2 weeks at the OPEN HOUSE! How did I do this?? Strategic pricing and Target-audience marketing!!

Bestsold in 1 day

How to Get the Most Money When Selling Your Home | MyKCMEvery homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.

 

1. Price it a LITTLE LOW 

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for

negotiation. In reality, this just dramatically lessens the demand for their house (see chart below).

How to Get the Most Money When Selling Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyersfighting with each other over the house.

 

 

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive, as the seller likely believes that he or she will net more money if they don’t have to pay a real estate commission. With that being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

Research posted by the National Association of Realtors revealed that:

“The median selling price for all FSBO homes was $185,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $163,800. However, homes that were sold with the assistance of an agent had a median selling price of $245,000 – nearly $60,000 more for the typical home sale.”

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

Contact me today to learn more and get your home SOLD!

Tori Denton, PSA, Realtor®

Talk to someone you can trust!

You might not sell a home every week…. but I kinda do!

413.301.4614 or tedenton109@gmail.com

 

Blog at WordPress.com.

Up ↑