What’s in Store for Our Lane County Market

Our Lane County market is headed for a shift, but there’s still good news for buyers and sellers.

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As we know, the real estate market crashed in 2007 and 2008 and bottomed out around 2011. Since then, our Lane County market has appreciated by almost 10% per year, but lately, that rate has slowed to 5%

What does this mean? It means we’re reaching the peak of the market. We’re in year seven of our current market cycle, and we’ve never exceeded a seven-year run of appreciation, so that’s as good of an indicator as any that we’re in for a shift. 

Another indicator is interest rates. At the end of 2018, rates hovered around 5% range, and they were expected to be close to the 5.25% mark at this time, but that hasn’t happened. In fact, they’ve decreased, and as of the filming of this video, they’re expected to be at 4% or lower. Why the decrease? The economy is expected to slow down, which means now is the time to sell your home at the very top of the market. 

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The economy is expected to slow down, which means now is the time to sell your home at the very top of the market.

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Many sellers are noticing that home values are higher, and they’re taking advantage of that. As the law of supply and demand dictates, the more inventory increases, the more demand diminishes. At the moment, listings average about two to three offers before selling. Last year, the average was about seven.

If you’re a buyer, the drop in interest rates makes now the perfect time to buy—especially if you’re currently renting. If you buy now, your monthly mortgage payment would be lower than your rent.

If you have any other questions about our Lane County market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.

Should You Borrow Money From Relatives to Buy Your First Home?

For today’s topic, we’re going to discuss whether borrowing money from a relative to purchase your first home is a wise move.

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Especially for younger buyers, having the financial wherewithal to purchase their first home comes with its challenges. With home prices continuing to mount, breaking into the market for the first time can be difficult.

If you’re one of these first-time buyers, how can you get into a home?

The obvious answer is to borrow money from a relative, but it’s important to recognize the good, the bad, and the ugly associated with this course of action.

Let’s first consider the good. It could be that your parents or grandparents have set aside funds with the express intent of helping you get into your first home, giving you a leg up. There’s no real downside to this because your relative saved money for that very reason.

Alternatively, if you’ve established a retirement plan such as a Roth IRA or the like, you can borrow from that account to pay for a home without penalty. Check with an accountant or a professional who’s familiar with your situation beforehand, though.

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It’s important to recognize the good, the bad, and the ugly associated with this course of action.

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Now, I’d like to share a brief example that’s representative of the bad (plus the ugly): About four years ago, I happily assisted one of my clients in her home sale, from which she extracted $75,000 to $100,000 in equity.

I recently learned that, with that money, she helped her children get into their first home. By doing so, however, she exhausted all of that money. What’s worse, she didn’t have a retirement plan in place. Because her children couldn’t return the favor financially speaking, she’s now stuck with little money to live on month to month.

Therein lies the problem with relatives lending money to children or grandchildren in order for them to buy a home. Without having a keen awareness of what it means for their financial future, some people, unfortunately, give in to emotion and pass along money that’s vital to their own livelihood to their children or grandchildren.

A word of advice: Think twice before borrowing funds from a relative for your home purchase. If you do borrow from them, make sure you’re borrowing surplus funds that don’t eat into their own retirement system. 

If you have any questions about today’s topic or anything else real estate-related, feel free to give me a call at 541-554-5825 or email me at GaryRaze@Remax.net. I’d be happy to help!

How Can Buyers Compete in a Tight Seller’s Market?

The key to winning the home you want in a tight seller’s market is following a few simple tips.

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Here in Lane County, as we close the book on May, we’re down to 1.8 months of inventory. This means there are more buyers out there than there are available homes.

As a buyer, what can you do to make your offer more attractive to sellers without overpaying for the home you want?

First, have your agent call the listing agent and find out as much as they can about the seller. Why are they moving? What’s their moving date? Have they already purchased a new home? Knowing the answers to these questions will help you craft your offer. For example, if you find out when they need to move, you can adjust your closing date so it’s more appealing.

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In this market, why would anyone choose a low offer when they have other offers that are either at or above their asking price?

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Next, make sure you have a strong pre-qualification and offer a good earnest money deposit. The higher your deposit is, the safer your offer looks.

Also, try minimizing your inspection timeline. The average timeline for completing inspections is about 10 days, so if you tell the seller you can get yours done in, say, three to five days, that sends a clear message that you’re ready to buy now and you won’t be picky in terms of what repairs you ask for.

Whatever you do, don’t try lowballing the seller. Remember, they’ll likely have more than just your offer to look at. In this market, why would anyone choose a low offer when they have other offers that are either at or above their asking price?

If you’d like to know more about how you can compete in a seller’s market or you have any other real estate questions for me, don’t hesitate to reach out to me. I’d be happy to help you.

Preparing Your Home Before the Inspection

Before your home gets inspected, check off these easy-to-fix items so they don’t show up in the final report.   

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Let’s say you’re a seller and you’ve received an offer on your home. In the ensuing days, an inspector will come to the home and check for various items of concern—rot and pests are a few examples.

As the seller, you can act preemptively and take care of a few items before the inspector has to be the one who flags them. Here’s how: 

First, make sure all lightbulbs inside and outside your home are working. When it comes time for showings, illuminate your home a little more by installing brighter bulbs—especially if yours are a little older and have dulled.

You’ll want to check and potentially replace your CO2 and carbon monoxide detectors as well. Your current detectors may have served you well for the last ten years, but being as they’re older models, the inspector will make a note of that in the report.

Ensure that your water heater is secure in the event of an earthquake by tying two straps, not just one, to it. Next, clear any debris that may have collected around your electrical panel, your attic space, or underneath your house. The inspector needs to have unobstructed pathways and access to these areas.

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As the seller, you can act preemptively and take care of a few items before the inspector has to be the one who flags them.

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For those who have pets, be sure to place them in a carrier or take them with you when leaving the home to let the inspector conduct their work. 

Also, every toilet in your home will need to be squeaky clean before the inspector sets foot in your home.They will use a moisture detector to establish whether any seepage is coming out from the wax rings, so scrub the area around the base of the toilet.

Another thing that will catch the inspector’s eye is the downspout. If yours run straight down and water isn’t being properly diverted away from the home, you can expect to be flagged in the final report. To avoid this, purchase a plastic downspout diverter—they’re inexpensive, and they’ll funnel the water about nine to 12 inches away from the home.

Those are just a few easy and quick loose ends up to tie up in your home before having an inspection done. If you have any questions, please feel free to text or call me at 541-554-5825 or shoot me an email at garyraze@remax.net. I look forward to talking with you soon!

What Plummeting Interest Rates Mean for Buyers and Sellers

Interest rates are falling quickly in out market, which means buyers and sellers need to act now to take advantage of that.

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Interest rates are falling hard in our market.

In fact, they recently had the single largest one-week drop in a decade. They’re not the lowest they’ve ever been, but they’re still extremely low right now. For a 30-year conventional loan, rates are between 4.25% and 4.5%.

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Nobody knows how long rates will stay this low, so acting soon will make a big difference in your bottom line.

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That’s very impressive, and it’s something that affects everyone in the real estate market. If you’re thinking of buying or selling a home, make sure you do it sooner rather than later. Nobody knows how long rates will stay this low, so acting soon will make a big difference in your bottom line.

In the meantime, if you have any questions about our market or you have any real estate needs I can take care of, don’t hesitate to reach out to me. I’d be happy to help you.

Make the Outside of Your Home Sparkle With This Spring Cleaning Checklist

 If you’re gearing up to host plenty of friends and family at your home this spring, here’s a quick outdoor cleaning checklist you can use to make sure everything looks great. 

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To get the outside of your home ready for everything spring has to offer, here’s a quick cleaning checklist:

• Clear your lawn of debris
• Clean out your flower beds
• Layer in fresh mulch
• Divide any perennials so they’ll be blooming nicely for May and June
• Wash your outdoor furniture
• Power wash your house, sidewalks, and driveway—keep in mind that different areas require different levels of water pressure
• Clean your grill, and check your propane tank and its hose—there’s nothing worse than running out of fuel right in the middle of cooking!
• Apply an application to your lawn to prevent weeds from growing
• Fertilize your lawn, but be careful not to overdo it
• Remove your storm windows and wash your regular windows
• Repair any broken screens
• Clean your gutters
• Fix any cracks in the driveway
• Remove any dead leaves from your flowers and plants
• Add new flowers to your deck and lawn

And finally...don’t forget to invite me over to your first barbecue!

As always, if you’d like to know more about this topic or you have any other real estate questions for me, don’t hesitate to reach out to me. I’d be happy to speak with you.

Is It Time for You to Get in on the Madness?

 It’s almost time for the busy season in Lane County real estate. Here’s what you need to know in the coming weeks and months whether you’re buying or selling.

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Right now, it’s time for March Madness, both on the court and in the real estate market.

In the real estate world, our March “madness” is the beginning of the spring market. Now that the weather is finally getting better in Lane County, people will start making their decision to buy or sell rather quickly.

Right now, we still have just two months of inventory. If no new homes came on the market in two months, we would completely sell out. This is a huge advantage to you if you’re a seller, but not if you’re a buyer.

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In a few short months, your competition will be much stronger.

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First-time homebuyers are continuing to come into the market, and there are still buyers out there who will have a home to sell. However, they’re not too excited about putting those homes on the market until the kind of home they are looking for is available. It’s kind of a catch-22 situation.

Let’s say you're a first-time buyer: You want to see if there’s anything out there right now that works for you. In a few short months, you'll be competing against many more buyers than you would be right now. The chance of getting the right home at the right price is probably better now than it will be later.

Most sellers are waiting until April or May to list. That is when we’ll see an influx of buyers, but they'll also have more homes to choose from during that time.  Sellers can get ahead of the market curve by getting their homes listed now.

As you can see, March “madness” has begun in the real estate market. If you have any questions about buying or selling, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

How Will Our 2019 Market Be Different?

 As we move further into 2019, now is the perfect time to discuss how things have changed since last year and how things will continue to change in the months ahead.

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Even though it’s still early in the year, it’s already clear that our 2019 real estate market is going to be quite a bit different from what we saw last year.

In contrast to 2018’s record-low inventory, we believe that 2019 will see a nationwide increase in the number of available homes. Because of this, sellers will need to be careful with how they price their homes. We, therefore, highly recommend consulting with a trusted agent before you list.

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Buyers and sellers alike have a lot of opportunities before them this year.

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Of course, there are some similarities between the 2018 and 2019 markets. For one thing, millennials will continue to make up a significant portion of all homebuyers in our market. About 45% of all homebuyers today are millennials, and that percentage is expected to increase in the coming months.

All in all, our market is still very healthy. In Lane County, specifically, activity will remain strong despite rising prices. Buyers and sellers alike have a lot of opportunities before them this year, but with 1.9 months’ worth of available inventory, we are still technically in a seller’s market.

If you’ve got any questions or would like more information, don’t be afraid to reach out. Our team would be happy to serve you. We look forward to hearing from you soon.

Why Credit Scores Matter, How They Work, and More

 Credit scores are critical, but not everyone understands how they work. Thankfully, local mortgage professional Ron Smith of Opes Advisors sat down with us recently to answer a few common questions.

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Credit scores are a hot-button subject. Despite this, not everyone understands as much about them as they should.

To help amend this, I recently sat down for a discussion on this crucial subject with local mortgage consultant Ron Smith of Opes Advisors, and I’m excited to share a few highlights from our conversation with you today.

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:

0:45 - What is a credit score?

1:10 - How is a credit score determined?

1:54 - Why are credit scores so important?

2:42 - How can someone improve a credit score?

3:51 - How can major purchases or credit inquiries impact your score?

5:40 - How can someone check their score without damaging it?

6:44 - Are free credit reports legitimate?

7:41 - A few closing words about the importance of credit

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How to Slay the Mortgage Monster

Slaying the mortgage monster can seem like an insurmountable task. Here are a few tips to make the task much easier.

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You may know this already, but when you get a 30-year mortgage, the interest is paid almost completely up front. The 360 payments you make throughout the life of the loan remain almost identical, aside from taxes. However, most of your first payments in the first few years strictly go toward interest. You don’t get to pay down the principal amount of the loan until after that.

However, today we’ve got some tips to help you eliminate some of that monster interest you are paying at the beginning of your loan. If you pay about $100 extra per month and put it toward your principal amount, it will have a huge effect on your bottom line down the road.

A lot of people also just make one extra mortgage payment per year. That will take seven years off of a 30-year mortgage right there.

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Making an extra payment per year will take seven years off a 30-year mortgage.

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Starting at 2:00 in the video above, you can see the differences in paying off a 30-year mortgage versus paying off a 15-year mortgage for a $250,000 home at 5.25%. For a 30-year mortgage, you’d be taking out a $237,500 loan, which would make your payment right around $1,300 per month. The amount that you’d be paying in interest over that time period would be $234,634.

As for a 15-year mortgage, that same $237,500 loan would have a monthly payment of around $1,900. However, once your home is paid off in 15 years, you will end up saving $128,476 in interest for taking the burden of adding that extra $600 per month to your payment.

If you want to know more about how to reduce your mortgage amount or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

6 Crucial Tips for Sellers Who Plan to List This Fall

When listing in the fall, there are six critical tips all sellers should follow.

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Given the high level of buyer demand still left over from the market’s summer months, fall is actually a great time to sell. And with interest rates on the rise, buyers and sellers alike can benefit from striking a deal as soon as possible.

Even so, it’s important to realize that today’s average interest rate (5%) is still historically low compared to the previous average of 7%.

With all of this in mind, here are six key tips sellers should follow when listing in the fall:

1. Don’t over-improve your home. Making your home look its best is great, but don’t invest too much money on projects that won’t bring a high return.


2. Declutter and depersonalize your home. Buyers want to be able to imagine themselves living in your home. Family photos or other highly personal touches, therefore, may make it difficult for them to do so. A messy environment, too, can be off-putting for buyers.


3. Freshen up your curb appeal. Your home’s curb appeal will serve as a buyer’s first impression, so it’s essential that your property’s exterior looks its best. Even just mowing your lawn and adding fresh mulch can go a long way.

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Selling without the guidance of a real estate professional would be a major mistake.

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4. Don’t limit the number of showings. The more people who view your home, the better chance you’ll have of earning top dollar. Your property should always be in show-ready condition while it’s on the market.


5. Don’t overprice your home. Even though we’ve been in a seller’s market for several months now, market conditions have begun to shift. Smart sellers today know that listing at fair market value is the best way to generate buyer interest and earn the best possible price. An overpriced home will earn far less money than one that was priced correctly from the start.


6. Don’t sell your property on your own. Working with an agent will not only help you secure superior results for your listing, but it will also help you avoid potential legal issues. Real estate agents are trained to understand all of the ins and outs of the listing process. Selling without the guidance of such a professional would be a major mistake.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Remodeling—Is It the Right Choice for You?

 Is remodeling the right way to go for homeowners? The truth is that it depends on whether you plan to stay there or not.

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The answer to whether remodeling your home is the right choice for you depends on your motive. For example, if you’re looking to improve your surroundings and you plan to stay at your home, then go ahead and pursue whatever projects you have planned and can afford.

However, if you’re planning to sell your home, it’s a different story. Dollar for dollar, you usually don’t get the same value you put into a renovated home when you sell it.

Here is a list of major remodeling projects coupled with the recovery rate associated with each:

• Installing a patio. The projected recovery rate for this project would only be about 47%, meaning you’d get less than half of what you put into the project back when you sold the home.

• Renovating your bathroom. The projected recovery rate would be around 70%.

• Upgrading your entryway door. This project has a surprisingly high recovery rate—91%.

• Renovating your kitchen. For this project, you should only expect to receive an estimated 59% return.

• Replacing your windows. This remodeling task has a projected recovery rate of 74%.

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Dollar for dollar, you usually don’t get the same value you put into a renovated home when you sell it.

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If you have any questions about real estate or remodeling, don’t hesitate to reach out to us. We’d be glad to help you out.

An Update on Our Lane County Market

What’s going on in our Lane County real estate market as we approach fall? Let’s find out.

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As we approach the fall, many of you are likely wondering what’s going on in our Lane County real estate market. Of course, if you’re anything like me, the coming autumn also means you’ve got something else on your mind: football season.

Believe it or not, these two things are actually somewhat related. This is because when football season arrives, buyers tend to have fewer opportunities to attend open houses.

That aside, let’s take a look at the market itself.

Inventory has increased from the all-time low we saw in March, when there were just 42 days of supply. Now, supply is up to 54 days’ worth of homes. This means if no new homes came on to our market, it would take just 54 days for Lane County to run out of listings.

This puts sellers in the driver's seat. In fact, we would need about 180 days’ worth of supply for buyers and sellers to be on equal ground in our market.

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Sellers are in the driver’s seat, but it’s still a great time to buy.

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As far as median price, we’ve seen a growth of 9% since this time last year, leaving us with a current median price of approximately $272,000. This increase in price is part of a larger upward trend that we’ve been seeing for the past four years. So when will this rapid growth end?

With the number of millennial homebuyers continuing to increase, and interest rates still rising, as well, experts are divided on when we can expect the market to level out. With that in mind, though, the appreciation of home values is expected to slow down to a rate of 3% or 4% in the near future.

The bottom line is this: It is still a great time to buy. So if you want to know how to navigate your specific market, please reach out.

As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Does Your Homeowners Insurance Policy Cover Your Home’s Appreciation?

With all the recent wildfires in California, I wanted to talk about whether or not you are covered by your homeowners insurance policy if a natural disaster was to strike us.

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Today we’re going to talk about whether your homeowners insurance policy is keeping up with your home’s continual appreciation.

As you know, we’ve had many catastrophes lately with forest fires in California. Could that ever happen to your home here in Lane County? It’s always a possibility.

If you live here, you’re obviously aware of how rapidly our home values have been rising over the last few years. Is your homeowners insurance policy keeping up with your home’s increasing value?

Let’s say you purchased an insurance policy 10 years ago when your home was worth $180,000 and today it’s worth $300,000. Let’s also say we did have a forest fire and the home burned down. Does your insurance policy just cover the $180,000, or does it cover more?

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You want to make sure you’re covered if disaster strikes.

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In reality, your land value is a non-factor. The land stays the same regardless. However, the structure of most insurance companies has an automatic adjustment built in.

Here’s how it works. Many companies look at the material and labor costs in your neighborhood to determine the loss and how much will be paid out. They don’t look at the value that is posted on an appraisal. They want to know how much the home is going to cost them to replace.

I recommend checking with your insurance company, because they each do things in a different way. You want to make sure you’re covered in case disaster strikes.

If you want to know what your home’s current value is, we’d be happy to provide you with a free CMA. You don’t need one for insurance purposes, however.

If you have any questions about your Lane County home or your homeowners insurance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Are We in for a Market Correction Soon?

Property values continue to rise in Lane County, but I don’t think this trend is sustainable.

 If you’re a buyer, I think you should buy now.

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As most people are already aware, home sales continue to rise in Lane County. Over the past 12 months, property values have also risen to the tune of 8.4%. This is great news for sellers, but not for buyers.

Does this mean we’re in for a market correction soon? There are two prevailing opinions about this.

Some experts predict that property values will increase by 4% every year for the next several years, mostly due to millennials entering the market with more zeal than they have in the past. Others maintain that we can’t sustain such growth without running into an affordability issue, and we’re already having affordability issues as it is.

If I was a betting man, I’d predict that Lane County can’t continue this increase until more industry develops. For example, property values in Portland are rising more quickly than ours, but they also have more industry.

If you’re a buyer, you can either buy now and hope values keep rising so your home’s value does as well or wait for a correction. The problem with waiting for a correction, though, is no one knows if or when that will happen. It could be several years from now, so renting for that length of time definitely wouldn’t be advantageous. Another issue to take into consideration is interest rates will continue to rise, which hurts both buyers and sellers.

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The problem with waiting for a market correction is nobody knows when that will happen.

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With that being said, my advice to buyers is to buy as soon as possible.

If you have any other questions about our market or any other real estate needs, don’t hesitate to give me a call. I’d be happy to help you.

What You Need to Know About PMI

Are you looking at buying a home and putting less than 20% down? Your loan will require you to purchase private mortgage insurance, or PMI.

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What is PMI?

PMI is private mortgage insurance. It is essentially an insurance policy that protects the lender from you not being able to pay your loan. PMI is a monthly fee rolled into your mortgage payment and is required for all conventional loans that have down payments less than 20%.

For conventional loans, once you have built up equity of 20% in your home, you can cancel your PMI and remove the expense from your monthly payment. With FHA loans, however, PMI costs stay with the loan for its duration. Once they have reached the 20% equity level,many people change their FHA loan to a more conventional loan. As the buyer, you pay a monthly premium and the lender is the beneficiary.

PMI costs vary based on your loan-to-value ratio, the amount you owe on your mortgage compared to its value, and your credit score. The better your credit score, the better the rate you are going to get on your private mortgage insurance. You can expect to pay between $30 to $70 per month for every $100,000 you borrow.

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People purchase private mortgage insurance because, even though it is an extra cost, it enables them to buy a home much sooner.

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If your credit score was 800, you could expect to pay $68 a month on a $200,000 loan. If your credit score was 625, meanwhile, you’d pay $268 per month for your private mortgage insurance.

The average down payment last year, according to the National Association of Realtors, was about 10%. For first-time homebuyers, the average down payment was 5%. This means that a lot of people are paying private mortgage insurance.

Why though? While it is an extra cost, it enables you to buy a home much sooner. If homes are appreciating at a certain rate, the sooner you can buy, the better off you are. This helps compensate for the sting of private mortgage insurance.

If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

How Do Reverse Mortgages Work?

Do you know how reverse mortgages benefit senior citizens? If not, let Ron Smith of Opes Advisors explain.

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What are reverse mortgages? How do they work? To help explain, I have with me Ron Smith, a reverse mortgage expert from Opes Advisors.

I understand that reverse mortgages once had a bad reputation, but that is no longer the case.

It is true that there was a time when, for reverse mortgages, the bank went on title with you, and that is no longer happening. Now, they are simply a loan or lien against your property like a regular mortgage. That way, when you pass away or move out of the house, your heirs get the property just like normal; the bank doesn’t take it over.

There was also once a concern about, say, if one of the borrowers was less than 62 (the minimum age to be eligible for a reverse mortgage) and the older spouse who had the mortgage passed away, what would happen to the spouse? That issue has also been taken care of. Now the spouse can just stay in that house.

Can you clarify what a reverse mortgage actually is?

Typically they are used when somebody has a fixed income, like Social Security or a pension, and they just do not have enough money to make it through the month. We do a loan on the house, at which point, they can either get an income stream, a lump sum of cash, or a line of credit; then they can just take what they need when they need it. As time goes by, they just use those funds to help them pay their bills and live their life. Medical reasons are the one of the primary motivators for reverse mortgages. There is no payment required, although you are welcome to make a payment if you would like. Once you move out of the house, it goes to your estate, allowing your heirs to either pay it off or sell it.

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Reverse mortgages are used when somebody has a fixed income, like Social Security or a pension, and they just don’t have enough money to make it through the month.

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You said that you don’t have to pay it back if you wish—obviously, it will come due at some point, so how does that work?

Once you no longer live in your house, your heirs can sell the house to pay off the loan, or pay it off themselves without selling it. Whatever money is left goes to the estate.

It sounds like a good plan to help senior citizens stay in their homes for a longer time if they lack a good pension plan.

It absolutely is. For example, we are doing one for a lady whose husband passed away. She receives $1,000 a month from Social Security, but her house payment is $796 a month. Through the reverse mortgage, she won’t be getting a lot of money, but we’re going to make that payment go away.

How can people get in touch with you to learn more about reverse mortgages?

They can call me directly at (541) 284-8036. I would be happy to answer any questions for them.

I would like to thank Ron for coming and speaking with me. If you have any real estate questions for me, please feel free to reach out to me. I hope to speak with you soon!

Your April 2018 Market Update

What is going on in the market today? Here is an update for Lane County.

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Today I have your monthly market update for Lane County. In terms of home activity for the month of April, there is actually some good news: the number of listings is up 42% from the month before.

The bad news is that we’ve had an upswing in pendings, as well. As a matter of fact, those have wiped out all our inventory gains. We’re down to 1.4 months’ worth of inventory. That means if we have no additional listings come on to the market, we will sell all of what we have in about 42 days. 

Of course, this makes purchasing a home quite a bit more difficult for buyers, especially because there are a lot of multiple offers going on at the moment. What does that mean for all of us?

Recently we’ve seen a small increase in the number of homes people are putting on the market. The reason they’re doing that is simple: they know that at this time there’s a shortage of listings, making it a good time to sell.

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Don’t let the market situation scare you one way or the other.

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We also know that interest rates are starting to creep up. If you’re thinking about selling a home but aren’t sure if you should list now or wait until, say, the fall, the interest rates will be higher then. That won’t work to the advantage of the buyer or seller. Now is certainly the better time to put your home on the market.

You also need to remember that, yes, our inventory is lacking, but it’s going to improve. The average amount of inventory is six months’ worth, and the average interest rate is about 6%. We are well below both of those numbers.

If you have any questions or need help buying or selling a home, please feel free to reach out to me. I’d love to sit down and discuss your situation.

A Few Tips and Tricks to Save for a Down Payment

There are many ways you can save for a down payment. Here are a few tips that can save you anywhere from $5,000 to $10,000 in a hurry.

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What can you do to save for a down payment if you plan on buying a home soon? Here are a few tips and suggestions to realign your savings program.

First, set your goal as far as how much home you want to purchase. Talk to your lender and find out what your down payment for your particular price tag would be. Once you know what you need for your down payment, you can start saving for it.

Next, assess your spending habits. Write down what you spend every week. When you do that, you’ll realize that you maybe didn’t really need that Starbucks coffee.

Speaking of that, I know most people like Starbucks and you might too, but most people also spend at least $5 per day there. If you think about it, you can say as much as $2,000 a year by not going to Starbucks and instead making your own coffee or just going to McDonald’s like I do (it’s all about the dollar menu!)

Another step to consider is shrinking your TV package. Do you really need a large TV package for all of those programs that you can only watch one at a time?

Once you know what you need for your down payment, you can start saving for it.

You can also think about canceling your gym membership. I myself had a gym membership for three years and I never lost a single pound. A lot of us sign up for a gym membership, pay our dues, but never even step inside the gym.

Also, consider selling any extra items in your house that you haven’t used in a while. Even in the garage, you can find items that will sell for a couple thousand dollars easily and in a hurry.

Another thing to think about is getting extra points on your credit cards. Switch your credit cards so you get points on them and pay for items through a point system as opposed to just cash.

Lastly, save some money through your tax return. It’s always nice to see a couple thousand dollars coming back to you at the end of the year, and it’s also nice to spend that extra money.

These tips can save anywhere from $5,000 to $10,000 in a short amount of time. If you have any other questions about saving for a down payment or you’re thinking about buying or selling a home soon in our market, don’t hesitate to give me a call or send me an email. I’d be happy to speak with you!

The Reality of Life Insurance and Its Benefits

Life insurance isn’t a popular thing to talk about. However, it’s so important that your family is taken care of if the worst happens.

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Why in the world would a real estate professional be talking about life insurance? Well, as most of you know, I enjoy having personal relationships with my clients after I’ve helped them out professionally. I keep in touch with them after the transaction and from time to time I hear some really sad stories.

Over the last few years, I’ve seen people pass away and leave their spouses with nothing because they always felt like they couldn’t afford life insurance. It’s very disconcerting when you know that someone is left with nothing in the wake of a tragedy.

Your policy doesn’t have to be an expensive one.

I think that you should do everything in your power to get in touch with a life insurance professional. It should be someone you know and trust. It should be someone who can set you up with a low-cost plan to protect your family with life insurance in some way.

None of us are getting out of here alive, so the more that you can protect your family, the better off they will be. Keep in mind that the younger you are the less expensive the life insurance policy will be.

I’m not here to sell you life insurance. I just hate it when I see a family in financial distress in the wake of a tragedy simply because they weren’t aware that they could afford life insurance.

I hope you take this message to heart. If you have any questions for me in the meantime, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you.