Hire A Professional • Selling Your Home • October 19, 2023

The Reality of Selling Your Home as a For Sale by Owner (FSBO)

by Michael Cummiskey

Are you thinking about selling your house as a For Sale by Owner (FSBO)? It’s a tempting idea, but there’s a whole lot more to it than you might think. The process of selling a home involves a multitude of tasks, from setting the right price to marketing to potential buyers, coordinating showings, and handling paperwork. In the absence of a real estate agent, you’ll have to do it all yourself. So, before you dive into the world of FSBO, let’s explore some of the challenges you might face and why partnering with an agent could be the right choice.

**1. You May Not Price it Right**

Pricing your house right is a critical factor for a successful sale. Real estate agents have the experience and expertise needed to navigate the housing market and understand the art of pricing a home to sell today. Unfortunately, homeowners who opt for FSBO often lack this essential experience, which can lead to two common consequences: overpricing or underpricing the house.

As advised by Nerd Wallet, overpricing your home can lead to buyers not even considering your listing, while underpricing it might leave money on the table or raise questions about potential issues with the property. To avoid these pitfalls, it’s crucial to partner with a real estate agent who can help you price your house at its current market value, ensuring your property attracts the right buyers and makes a strong first impression.

**2. You Don’t Have as Much Experience in Marketing a House**

In today’s digital age, online marketing has become a game-changer in the real estate industry. According to the National Association of Realtors (NAR), the first step for all generations of homebuyers is to search for properties online. Real estate agents are well-versed in leveraging online marketing tools and resources to reach tech-savvy house hunters. However, if you’re attempting to sell your house on your own, you may miss out on the full power of online and social media strategies. To maximize your chances of a successful sale, partnering with an agent who understands the digital landscape is crucial.

**3. You May Not Be Comfortable Handling All the Back-and-Forth**

Selling your house isn’t just about finding a buyer; it’s also about stepping into the world of negotiations. You’ll need to coordinate with various parties, including the buyer, the buyer’s agent, the inspection company, the appraiser, and more. Every move counts in this intricate dance, and the expertise of a real estate agent can make a significant difference in keeping negotiations on track and ultimately sealing the deal.

Your listing agent will be on your side throughout negotiations, double-checking paperwork, communicating with the buyer’s agent and other parties involved, and ensuring everything runs smoothly through to closing day.

**Bottom Line**

If the idea of selling your house as a For Sale by Owner has crossed your mind, it’s essential to think through this decision carefully. While it may seem like a way to save money on agent commissions, the process can be more challenging than it appears. Connecting with a local real estate agent is a wise move, as professionals have the experience needed to handle all the complexities of selling your home, relieving you of stress and ensuring a successful transaction. So, before you embark on the journey of FSBO, consider the advantages of having a seasoned agent by your side.

Hire A Professional • Money Talk • Selling Your Home • October 18, 2023

Making the Right Move: Why Now Might Be the Perfect Time to Sell Your Home

by Michael Cummiskey

Selling your home is a significant decision that’s often prompted by a change in your life circumstances. While factors like mortgage rates and market conditions are crucial, it’s essential not to lose sight of the primary reason why you contemplated making a move in the first place. In today’s dynamic real estate landscape, it’s crucial to prioritize your lifestyle and changing needs alongside financial considerations.

Mortgage rates are indeed higher at the moment, impacting affordability. Consequently, some homeowners are hesitating to sell, fearing they might end up with a higher mortgage rate on their next home. However, your life situation and evolving requirements should carry substantial weight in your decision. As a recent Realtor.com article aptly notes:

“No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change.”

Let’s explore some of the most common reasons why people are choosing to sell their homes today. Perhaps you’ll find that one of these resonates with your current situation and serves as a compelling reason to make the move now.

**1. Relocation**

Changing jobs, a desire to be closer to friends and family, finding your ideal location, or simply seeking a change in scenery are all motivating factors for a relocation. For instance, if you’ve just landed your dream job in another state, the thought of selling your current home and moving for work might be on your mind.

**2. Upgrading**

Many homeowners decide to sell their current homes to transition into a larger property. This is especially common when there’s a need for more room for entertaining, a home office or gym, or additional bedrooms to accommodate a growing family. For example, if you’re living in a condo and your household is expanding, it may be time to find a home that better suits your growing needs.

**3. Downsizing**

On the flip side, some homeowners decide to sell because someone has recently moved out, leaving them with more space than needed. It could also be due to retirement or simply the desire for a change. For instance, if you’ve recently retired and wish to enjoy a warmer climate with less house maintenance, a different home may be better suited to your new lifestyle.

**4. Change in Relationship Status**

Divorce, separation, or marriage are other common factors that prompt individuals to sell their homes. For example, if you’ve recently separated, it may be challenging to continue living under the same roof, making selling and finding a place of your own a more suitable option.

**5. Health Concerns**

Homeowners facing mobility challenges or health issues that necessitate specific living arrangements or modifications may decide to sell their current house to find a more suitable living space. For instance, you may be looking to sell your house and use the proceeds to help pay for a unit in an assisted-living facility.

While it’s true that higher mortgage rates and rising home prices present affordability challenges, it’s crucial to remember that your needs and lifestyle matter significantly. As a recent article from Bankrate advises:

“Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market… Your future plans and goals should be a significant part of the equation.”

In conclusion, if you’re considering selling your house to find a new one that better aligns with your evolving needs, it’s advisable to get in touch with a real estate expert. They’ll be there to guide you through the process and help you find a home that not only meets your financial goals but also caters to your lifestyle and life changes. Don’t let market conditions overshadow the significance of making the right move for your future.

Hire A Professional • Home Buyers • Money Talk • October 17, 2023

How Buying a Multi-Generational Home Helps with Affordability Today

by Michael Cummiskey

In today’s world, where the cost of homeownership continues to rise, many prospective buyers are exploring innovative ways to make their dream of owning a home a reality. One such solution gaining popularity is multi-generational living, where two or more adult generations choose to share a home under one roof. This arrangement can encompass siblings, parents, grandparents, or any combination thereof. In this blog post, we’ll delve into why an increasing number of buyers are embracing this lifestyle and how it can help mitigate the challenges posed by today’s housing market.

**Reasons to Consider a Multi-Generational Home**

A recent study conducted by the National Association of Realtors (NAR) sheds light on the primary reasons behind the growing interest in multi-generational homes, with affordability taking center stage:

**1. Cost Savings:**
Approximately 28% of first-time homebuyers and 11% of repeat buyers are turning to multi-generational living as a means to save on housing costs. By pooling their financial resources, households can collectively bear the burden of expenses such as mortgage payments, utilities, property taxes, and maintenance. This cooperative approach makes homeownership far more attainable, especially for those who might find it challenging to purchase a home independently in today’s competitive real estate market.

**2. More Space:**
An equally significant motivator for 28% of first-time buyers and 18% of repeat buyers is the desire for a larger home that they wouldn’t be able to afford on their own. This need for additional space often arises from the responsibilities of caring for older parents while also accommodating young adults who return to the nest. By combining their incomes and resources, the prospect of owning a more spacious dream home becomes a reality. As the Triangle Business Journal notes, multi-generational living allows people to “purchase a home much larger than they could afford on their own by leveraging the combined income, credit, and a down payment of those that they will be occupying the home with.”

**The Role of Real Estate Experts**

If you’re considering multi-generational living, partnering with a local real estate agent is crucial. Finding the perfect multi-generational home is not as straightforward as searching for a standard house. With more family members involved, each with their unique needs and preferences, it’s akin to solving a complex puzzle.

Your real estate agent can provide valuable expertise and local knowledge to help you locate a home where everyone can coexist comfortably without straining your budget. As MoneyGeek.com aptly puts it, “Having a good multigenerational property can improve the prospects of success when living with loved ones. A multigenerational home should fit the specific needs of most family members regardless of age or health. Speaking to a real-estate agent can help you gain clarity and locate a fit.”

**Conclusion: A Smart Approach to Homeownership**

Buying a multi-generational home represents a smart and practical way to address the affordability challenges that many individuals and families face in today’s real estate market. By sharing expenses and pooling resources, the dream of owning a home becomes not just attainable but also enjoyable.

If this living arrangement resonates with you and your loved ones, consider connecting with a local real estate agent who can guide you in finding the ideal home that meets the unique needs and preferences of multiple generations. Embrace the benefits of multi-generational living and embark on a journey to make homeownership a reality for your family.

Hire A Professional • Home Buyers • Money Talk • October 16, 2023

Are Higher Mortgage Rates Here To Stay?

by Michael Cummiskey

**Navigating Rising Mortgage Rates: What You Need to Know**

Mortgage rates have been making waves in recent headlines, and if you’re in the market for a new home or considering a real estate move, you might have felt a pang of anxiety. The chatter in financial circles suggests that rates have recently reached their highest point in over two decades. But before you put your plans on hold or dive into a guessing game about the future of mortgage rates, let’s unpack the situation and explore what you really need to know.

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### **How Higher Mortgage Rates Impact You**

First things first, it’s undeniable that mortgage rates are higher now than they’ve been in recent years. When rates are up, they can significantly affect the overall affordability of homes. The mechanism behind this is rather straightforward: the higher the interest rate, the more expensive it becomes to borrow money for purchasing a home. As rates trend upwards, your monthly mortgage payments for your future home loan also increase.

The Urban Institute has shed light on the impact of rising mortgage rates on both buyers and sellers:

“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”

In essence, the rising rates are causing some prospective buyers to reconsider their plans. But the real question is, should you follow suit?

### **Where Will Mortgage Rates Go from Here?**

If you’ve been keeping your fingers crossed for mortgage rates to drop, you’re not alone. Many are eagerly awaiting that dip. However, here’s the catch: no one can predict when it will happen. Even financial experts find themselves in a bit of a guessing game when it comes to forecasting the future of mortgage rates.

While forecasts might suggest a decline in rates in the months ahead, recent data indicates a climbing trend. This discrepancy highlights the unpredictability of mortgage rates. Therefore, trying to time the market or predict future rates is a risky strategy, as CBS News rightly advises:

“If you’re in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”

Instead of trying to control the uncontrollable, your focus should shift to assembling a team of skilled professionals who can provide insights into the market and guide you through these uncertain times. Whether you’re moving due to a job change, wanting to be closer to family, or experiencing other life changes, a knowledgeable lender and real estate agent can help you navigate the complex landscape.

### **Bottom Line**

The best advice for anyone considering a move in the current mortgage rate environment is simple: don’t attempt to control what you can’t predict – especially mortgage rates. Even the experts find it challenging to provide concrete forecasts for where rates are headed. Instead, channel your energy into building a team of trusted professionals who can keep you well-informed throughout your home-buying journey. When you’re ready to embark on the process, reach out to a local real estate agent who can offer the expertise and guidance you need.

Hire A Professional • Home Buyers • Money Talk • October 16, 2023

The Difference Between Renting and Buying a Home [INFOGRAPHIC]

by Michael Cummiskey

Some Highlights

When deciding between buying a home or renting, think about these three important factors.
Buying a home means avoiding rising rents, owning a tangible and valuable asset, and growing your wealth over time.
If you’re ready to enjoy the advantages of owning a home, connect with a local real estate expert to discuss your options.

Hire A Professional • Home Buyers • Money Talk • October 12, 2023

Growing Your Net Worth with Homeownership

by Michael Cummiskey

Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.

One of the many reasons to buy a home is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values are rising right now. According to Zillow:

“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”

Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.

Here’s a look at some data to see how much owning a home can really make a difference in your life.

Household Net Worth Is Rising

Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):

For many of those people, the rising value of their home plays a big part in that.

Owning a Home Helps You Achieve Financial Success

You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):

The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.

Bottom Line

One of the biggest benefits of owning a home is that it can provide an avenue to grow your net worth. Connect with a local real estate professional so you can start investing in homeownership.

Hire A Professional • Home Buyers • Money Talk • Selling Your Home • October 11, 2023

The Latest Expert Forecasts for Home Prices in 2023

by Michael Cummiskey

Are you thinking about making a move? If so, all the speculation that home prices would crash this year may have you feeling a bit on edge about your decision. Let the data and the experts reassure you. Prices aren’t in a downward spiral and will actually finish the year strong.

Even though you may have heard talk that prices would drop 5, 10, or even 20% this year, that hasn’t happened. The big reason why is the supply of homes for sale is too low. There are just more buyers looking to buy than homes available, and that’s kept prices from falling.

To prove this year wasn’t a bust for home prices, let’s look at the latest 2023 forecast from a number of experts.

Most Experts Project Home Prices Will Net Positive this Year

The general consensus from industry experts is that home price appreciation will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:

As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.

If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The projection from the National Association of Realtors (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3% positive growth for the year.

If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average from all 100 of those experts is 3.3% price growth for the year.

If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3% appreciation is a completely different story than prices falling.

Bottom Line

If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in your area, connect with a real estate agent.

Hire A Professional • Home Buyers • October 10, 2023

Are Grandparents Moving To Be Closer to Their Grandkids?

by Michael Cummiskey

During the pandemic, many people distanced themselves from their loved ones for health reasons. Grandparents were told to stay away from their grandkids, especially as schools started to open. That’s because it would have been risky to visit with their grandchildren who may have gotten sick from school.

Now that the pandemic has passed, many grandparents want more than ever to be near their grandchildren again to make up for that lost time. But how are they getting that “Grandparent Wish?” The data tells us many are moving to make sure they’re getting more quality time.

Grandparents Are Moving To Be Near Loved Ones

Recent data from the National Association of Realtors (NAR) shows people between the ages of 55 and 74 are moving farther (more than 100 miles) than any other age group (see graph below):

The average age of grandparents in the U.S. is 67 years. The logical leap is that at least some of the people who are moving the furthest are grandparents. But what’s causing them to move so far?

The same report from NAR shows the top reason people move is to be closer to loved ones (see graph below):

Based on this data, it’s fair to say many grandparents are getting their wish of more quality time with their grandchildren by moving to be closer to them. And after experiencing isolation and loneliness during the COVID pandemic, that’s an especially good thing.

If you’re a grandparent, you know how important your grandchildren are. And you may be willing to sell and move just to be closer by. As Vance Cariaga, a journalist at Go Bank Rates, explains:

“Never underestimate the power of grandchildren – especially when it comes to lifestyle and financial decisions. Recent data shows that many baby boomers are relocating further away from home than they used to so they can be closer to their grandbabies.”

Bottom Line

The data shows grandparents are moving further to be near their grandchildren. If you have grandchildren of your own, maybe you can relate. When you decide it’s time to be closer to your loved ones, connect with a local real estate professional.

Hire A Professional • Selling Your Home • October 9, 2023

Key Skills You Need Your Listing Agent To Have

by Michael Cummiskey

Selling your house is a big decision. And that can make it feel both exciting and a little bit nerve-wracking. But the key to a successful sale is finding the perfect listing agent to work with you throughout the process. A listing agent, also known as a seller’s agent, helps market and sell your house while advocating for you every step of the way.

But, how do you know you’ve found the perfect match in an agent? Here are three key skills you’ll want your listing agent to have.

They Price Your House Based on the Latest Data

While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean it’ll sit on the market longer because the higher price is actually deterring buyers.

Instead, you want to pick an agent who’s going to have an open conversation about how they think you should price your house and why. A great agent will base their pricing strategy on solid data. They won’t throw out a number just to win your listing. Instead, they’ll show you the facts, explain their pricing strategy, and make sure you’re on the same page. As NerdWallet explains:

“An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.”

They’re a Great Negotiator

The home-selling process can be emotional, especially if you’ve been in your house for a long time. You’re connected to it and have a lot of memories there. This can make the negotiation process harder. That’s where a trusted professional comes in.

A skilled listing agent will be calm under pressure and will be your point-person in all of those conversations. Their experience in handling the back-and-forth gives you with the peace of mind that you’ve got someone on your side who’s got your best interests in mind throughout this journey.

They’re a Skilled Problem Solver

At the heart of it all, a listing agent’s main priority is to get your house sold. A great agent never loses sight of that goal and will help you prioritize your needs above all else. If they identify any necessary steps you need to take, they’ll be open with you about it. Their commitment to your success means they’ll work with you to address any potential roadblocks and find creative solutions to anything that pops up along the way.

BankRate explains it like this:

“Just as important as the knowledge and experience agents bring is their ability to guide you smoothly through the process. Above all, go with an agent you trust and will feel comfortable with. . .”

Bottom Line

Whether you’re a first-time seller or you’ve been through selling a house before, a great listing agent is the key to success. Connect with a real estate professional so you have a skilled local expert by your side to guide you through every step of the process.

Hire A Professional • Home Buyers • Money Talk • October 6, 2023

How Homeowner Net Worth Grows with Time

by Michael Cummiskey

Some Highlights

If you’re thinking about buying a home this year, be sure to consider the long-term financial advantages of homeownership, like home equity.
On average, people who bought homes 32 years ago have seen their home’s value nearly triple over that time.
If you’re wondering if buying a home is a good idea, remember rising home values could grow your net worth with time. When you’re ready to start your homebuying journey, talk with a local real estate professional.

The Reality of Selling Your Home as a For Sale by Owner (FSBO)

Making the Right Move: Why Now Might Be the Perfect Time to Sell Your Home

How Buying a Multi-Generational Home Helps with Affordability Today

Are Higher Mortgage Rates Here To Stay?

The Difference Between Renting and Buying a Home [INFOGRAPHIC]

Some Highlights

Growing Your Net Worth with Homeownership

Household Net Worth Is Rising

Owning a Home Helps You Achieve Financial Success

Bottom Line

The Latest Expert Forecasts for Home Prices in 2023

Most Experts Project Home Prices Will Net Positive this Year

Bottom Line

Are Grandparents Moving To Be Closer to Their Grandkids?

Grandparents Are Moving To Be Near Loved Ones

Bottom Line

Key Skills You Need Your Listing Agent To Have

They Price Your House Based on the Latest Data

They’re a Great Negotiator

They’re a Skilled Problem Solver

Bottom Line

How Homeowner Net Worth Grows with Time

Some Highlights

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