Hot Tip! Don’t Forget to Budget for Closing Costs!

When buying a home, it’s important to have a budget and make sure you plan ahead for certain home-buying expenses. Saving for a down payment is the main cost that comes to mind for many, buy budgeting for the closing costs required to get a mortgage is just as important.

What are closing Costs?

According to Trulia: “When you close on a home, a number of fees are due, They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees and more.”

For example, for someone buying a $300,000 home, they could potentially have between $6,000 and $15,000 in closing fees. If you’re in the market for a home above this price range, your closing costs could be greater. As mentioned above, closing costs are typically between 2% and 5% of your purchase price.

Trulia gives more great advice, explaining:

“There will be lots of paperwork I front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender and attorney, if you have one, to get all the documents you need ahead of time.

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll het this form about three days before closing since, once you (the borrower) sign it, there’s a three- day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask- your real estate agent is a great resource for getting you all the answers you need.”

Bottom Line: As home prices are rising and more buyers are finding themselves competing in bidding wars, its more important than ever to make sure your plan includes budgeting for closing costs. Let’s connect to be sure you have everything you need to land your dream home.

Market Updates -January 2021

The Condo Market is hot right now! Check out some updates from January

Looking at 2020 compared to 2021, pending sales are up by 77.4% and sold listings are up by 68.4%. The condo market saw a huge increase in activity during the month of January.
Looking at a monthly breakdown of condo pending sales, December 2020 and January 2021 have seen a large increase as condo activity has greatly increased
Looking at a breakdown of condo inventory, over the past year, inventory was incredibly high from June to November 2020, and looks to be decreasing as we are heading into 2021 more, possibly due to the increased sale and pending rates.

If you are considering selling or purchasing a condo now is a great time! Feel free to reach out with any questions as I would love to discus the current market with you!

Where Have all the Houses Gone?

In today’s housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of recording- low mortgage rates and purchases a home, housing inventor dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market whole buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.com explains:

“With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.

Every month, realtor.com releases new data showing the year- over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:

Where Have All the Houses Gone? | MyKCM

Does this mean houses aren’t being put on the market for sale?

Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they’re being counted as currently inventory. The market is that competitive! It’s like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. That’s what’s happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.

In the same realtor.com report, Hale explains:

“Time on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful. Today’s buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster- paced housing market.”

The Good News for Homeowners

The health crisis has been a major reason why potential sellers have held off this long, but as vaccines been more widely available, homeowners will start making their moves. Ali Wolf, Chief Economist at Zonda, confirms:

“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.”

With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listings shines brighter than the rest.

When you’re ready to sell your house, you’ll likely want to sell as quickly as possible, for the best price, and with little to no hassle. If you’re looking for these selling conditions, you’ll find them in today’s market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.

Bottom Line

Today’s housing market is a big win for sellers, but these conditions won’t last forever. If you’re in a position to sell your house now, you may not want to wait for your neighbors to do the same. Let’s connect to discuss how to sell your house safely so you’re able to benefit from today’s high demand and low inventory.