Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

This is one bridge I am HAPPY to cross today!!!

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | MyKCM

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home)

The chart below illustrates the changes in home price estimates over the last two years.

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years | MyKCM

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Bottom Line 

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this and any other obstacles that may arise.

 

Hooray! That means when I give you a Market Analysis on your home the bank appraisers for your prospective buyers will be more apt to agree with the contracted sale price!
As we get more inventory and, in effect more sales, the market more clearly reflects current home values. This has been a challenge as supply and demand makes a huge difference in local market price that is not proportionally reflected by the independent appraisers reports.
So today we celebrate! Now let’s get your home on this amazing market!
Get educated – Let’s talk! 413.301.4614

Visit me at: ToriDentonRealtor
Helping you make the right MOVE – one HOME at a time!!

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Housing Bubble ? – Experts say….

A Housing Bubble? Industry Experts Say NO!

A Housing Bubble? Industry Experts Say NO! | MyKCMWith residential home prices continuing to appreciate at levels above historic norms, some are questioning if we are heading toward another housing bubble (and subsequent burst) like the one we experienced in 2006-2008.

Recently, five housing experts weighed in on the question.

Rick Sharga, Executive VP at Ten-X:

“We’re definitely not in a bubble.”

“We have a handful of markets that are frothy and probably have hit an affordability wall of sorts but…while prices nominally have surpassed the 2006 peak, we’re not talking about 2006 dollars.”

Christopher Thornberg, Partner at Beacon Economics:

“There is no direct or indirect sign of any kind of bubble.”

“Steady as she goes. Prices continue to rise. Sales roughly flat.…Overall this market is in an almost boring place.”

Bill McBride, Calculated Risk:

“I wouldn’t call house prices a bubble.”

“So prices may be a little overvalued, but there is little speculation and I don’t expect house prices to decline nationally like during the bust.”

David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices:

“Housing is not repeating the bubble period of 2000-2006.”

“…price increases vary unlike the earlier period when rising prices were almost universal; the number of homes sold annually is 20% less today than in the earlier period and the months’ supply is declining, not surging.”

Bing Bai & Edward Golding, Urban Institute:

“We are not in a bubble and nowhere near the situation preceding the 2008 housing crisis.”

“Despite recent increases, house prices remain affordable by historical standards, suggesting that home prices are tracking a broader economic expansion.”

It’s an excellent time to get involved in real estate! Just ask some of my clients! Let’s talk 413.301.4614

ToriDentonRealtor.com

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

The Truth About Homeowner Equity

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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®

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ToriDentonRealtor.com

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

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.”

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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

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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!

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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!

 

Updates, Staging, Preparing – Oh my!

 

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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

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

Great Tips -Preparing Your House For Sale

Here are some handy tips for preparing your house for sale. And every little bit helps when it comes to the proper presentation of your home.

                                – Best advice… De-clutter

 

Tips for Preparing Your House For Sale [INFOGRAPHIC] | MyKCM

Click here for your FREE print copy of this checklist!

Think about it:

  • When listing your house for sale your top goal will be to get the home sold for the best price possible!
  • There are many small projects that you can do to ensure this happens!
  • During your pre-listing campaign I will give you a list of specific suggestions for getting your house ready for market. This graphic is a great resource for getting a jump on things!
  • Got questions? I’ve got answers! Contact me today at 413.301.4614 or tedenton109@gmail.com

Tori Denton, PSA, Realtor®

Helping you make the right MOVE – every time!

 

 

Who knew? Student Loans = Higher Credit Scores! Wow!

Student Loans = Higher Credit Scores | MyKCM

According to a recent analysis by CoreLogic, Millennial renters (aged 20-34) who have student loan debt also have higher credit scores than those who do not have student loans.

This may come as a surprise, as there is so much talk about student loans burdening Millennials and holding them back from many milestones that previous generations have been able to achieve (i.e. homeownership, investing for retirement).

CoreLogic used the information provided on rental applications and the applicants’ credit history from credit bureaus to determine if there was a correlation between student loan debt and credit scores.

The analysis concluded that:

“Student loan debt did not prevent millennials from access to credit even though it may delay their homebuying decisions.”

In fact, those with a higher amount of debt actually had higher credit scores.

“Renters with student loan debt have higher average credit scores than those without; and those with higher debt amounts have higher average credit scores than those with lower student loan debt amounts.”

In a Nutshell

Millennials are on pace to become the most educated generation in our nation’s history, with that comes a pretty big bill for education. But there is a light at the end of the tunnel:

“Despite the fact that student loan debt has grown into the nation’s second largest consumer debt, following mortgage, and has created a significant financial burden for millennials, it does not appear to prevent millennials from accessing credit.”

Contact me today to get on the road to home ownership! 413.301.4614 tedenton109@gmail.com

Rethinking Your Christmas List This Year

This article comes courtesy of Realtor.com

Getting a Down Payment as a Gift? Why NOT??

Why not give a gift that will KEEP on giving for years to come?!?

The first time I talked with a mortgage broker about buying a home, he suggested I just ask my parents for help coming up with the down payment.

“It’ll be easy,” he assured me. “You just get it as a gift. Lots of first-time buyers do it.”

In some ways, he was right. Many people do get help from their parents—after all, many of us are dealing with crippling student debt or other financial burdens that make it difficult to amass the cash needed for a down payment.

But he was wrong about one big thing: It ain’t easy.

Getting down payment help from the parents (or anyone else) isn’t as simple as just asking and then receiving when the money rolls in. If you’re going to do it, you’d better do it right. Avoid some of the big mistakes I made with an eye toward these tips.

1. The down payment must be a gift

What my mortgage broker should have told me is that the money has to be a gift. If a lender suspects the money might be a loan, repaying said loan will be factored into your mortgage approval amount and you’ll qualify for less than you might have wanted.

In order to prove it’s a gift, you’ll have to get a gift letter from the person who gave it to you—your parents (or the gifters) will need to swear on paper they don’t plan on asking for the money back. Thankfully, my wise parents had already put up a down payment for my sister and they knew this drill. But if yours don’t, get them up to speed quickly.

“The gift letter is very serious,” says Casey Fleming, mortgage adviser and author of “The Loan Guide: How to Get the Best Possible Mortgage.”

“While it is doubtful that a lender would ever audit a file after the fact to see if the recipient is paying the donor back, if the transaction goes bad, you might very well find yourself with a subpoena in your hand.” (True story—it’s a felony to lie on a mortgage application.)

2. You’ll want the down payment in advance

When you’re getting help, you have two options: 1) Take the money from Mom and Dad now, during the early planning stages, and save yourself some headache (and paperwork) later on, or 2) wait until you’re ready to buy and have your parents send the money just before you walk into your mortgage broker’s office.

Both will work, but if you have any say in the matter, get the money as early as possible.

“If the funds are ‘seasoned’—meaning that they’ve been in the account long enough so that the last two bank statements don’t show the deposit—the gift does not have to be addressed,” Fleming says.

My parents opted for a last-minute donation, and I was more than happy to have the help however they chose to give it. But it was tricky getting a lender to take it on faith that I’m going to get a big influx of cash once I find a home to buy.

3. There’s a limit to what can be gifted (tax-free)

The timing isn’t the only thing that’s tricky. There’s also a limit to how much someone can fork over to you—tax-free, at least. Under the current rules, any gift of $14,000 and up will incur a tax bill. So your parents will have to gift you less than that, or pay a tax penalty at the end of the year.

Of course, there is a (perfectly legal) loophole of sorts.

“It is $14,000 per year per donor, so a couple could give $28,000 ($14,000 from each) to their child,” Fleming says.

4. Gifted down payment funds will have to be verified

So you did your due diligence and you got a gift letter. Good for you! But guess what? That gift letter might not be enough for your lender to verify the funds. To do that, your parents are going to have to provide a paper trail.

Bank statements should do it, Fleming says, but be ready for this to feel a little … invasive.

Most lenders will require two months of statements from the gifter’s account, including all pages from each statement. Those bank statements will need to include all relevant information, meaning your lender is going to see your parents’ bank account number and personal information.

That felt weird to my parents, who worried about the security risk of faxing that information to a virtual stranger. But really—it happens all the time, so don’t let them freak out over it.

5. Your parents can’t go broke trying to help you

We both know your parents aren’t going to give away all of their money for the sake of your down payment, but your lender has to know that, too. That’s why your folks will have to prove with bank statements that they can comfortably afford the gifted down payment—and have sufficient funds left over.

If your parents are going to use a separate account for the down payment, or they split their money over several accounts, make sure your lender knows what’s going on and have your parents provide extra proof that they can afford to help you.

Just be sure to also provide your parents with extra proof of your gratitude. And invite them over for dinner once in a while, eh?

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| Nov 28, 2016
Angela Colley lives in New Orleans, where she writes about buying, selling, and renting news for realtor.com. Her passions include animal rescue, photography, historic homes, and Southern architecture..

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