Broker-Talk.com Premier Show

December 5, 2019 by Larry Lawfer

Broker-Talk.com Premier Show centers around the real world of real estate. We say we “tell it like it is” and we all know that always means we tell it like we see it. The quickly moving landscape of residential real estate is being flooded with new technology, new offers, quicker, faster, better as their marketing states unequivocally. But is this the truth or is this “puffery”. In our first show we invited a seasoned broker from Manhattan who joined Redfin this year to talk about the benefits as he sees them.

Redfin touts their caring for the consumer and say, without blushing, their system is set up to serve the consumer. As a professional I have to ask the question, really? Redfin real estate is much like Uber real estate. When the consumer is ready then can request a showing. The Redfin system routes that call to a regional call center where the “next agent up” is assigned the showing. This agent shows up at the showing knowing nothing about the Buyer/consumer. This agent gets paid to be there. This agent has little motivation to create or develop a deeper understanding of the needs and wants. Redfin feels the consumer best knows what they want so why bog the process down with a professional sharing insights and information about the house, neighborhood, process ways to be successful. Redfin has an app for all that and so the agent is just the driver/shower and they get paid to do it.

As our guest (name withheld to protect his gig), shares that he traded steady income for the bigger pay day. Effectively this will produce agents with licenses with no practice working with an individual from beginning to end. The process of buying a home has so many twists and turns that are not evident to the non professional. These twists can bite you later if you are not aware of them and take steps to protect yourself. Broker-Talk.com will post weekly with subjects that are of interest to both professionals and consumers. Our promise to “tell it like it is” goes to bringing in experts to discuss topics we, the hosts, do not have as deep an understanding. We hope you enjoy our show and will subscribe to the feed, it is available in all the formats you use. Broker-Talk.com Premier Show

What is the Best Investment for Americans?

December 5, 2019 by Larry Lawfer

Some are reporting that there is trepidation regarding the real estate market in the United States. Apparently, the American people are quite comfortable.

Porch.com, a major network helping homeowners with their renovation projects, recently conducted a survey which asked Americans:

“What do you believe is the safest investment over the next 10 years?”

U.S. housing came in at number one, beating out other investments such as gold, stocks, bonds, and savings.

Here is a graph showing the top five investments Americans selected:The findings of the Porch.com survey also coincide with two previous surveys done earlier this year:

The Federal Reserve Bank’s 2019 Consumer Expectations Housing Survey reported that 65% of Americans believe homeownership is a good financial investment, and that the percentage has increased in each of the last four years.
The Gallup survey showed that Americans have picked real estate as the “best” investment for six straight years.

Bottom Line

Based on all three surveys done this year, we can see that Americans still believe in homeownership as a great investment, and that feeling continues to grow.

Is A Bigger House Within Your Budget?

December 4, 2019 by Larry Lawfer

At this time of year, many families come together to celebrate the season. It’s also the time when many realize their homes are just not quite big enough to host all of their guests and loved ones. Are you one of those homeowners dreaming for a larger space to call home?

You may have enough equity in your current home to move up.

According to the Q3 2019 U.S. Home Equity & Underwater Report by ATTOM Data Solutions,

“14.4 million residential properties in the United States were considered equity rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value.”

This means that one in four of the 54 million mortgaged homes in the U.S. have at least 50% equity. If these homeowners decide to sell, they can use their equity to put toward the purchase of a new home. Maybe you’ll be one of them.

NAR recently released their 2019 Profile of Home Buyers and Sellers showing that,

“This year, home sellers cited that they sold their homes for a median of $60,000 more than they purchased it, up from $55,500 the year prior. This accounted for a 31 percent price gain, up from 29 percent the year before.”

Here’s the equity gain breakdown based on the number of years these sellers lived in their homes:

Bottom Line

If you’re one of the many homeowners with big dreams of owning a larger home, let’s get together. Working with a trusted advisor to find out how much equity you have is a great first step in putting your move-up plan in motion.

It’s ‘National Roof Over Your Head’ Day!

December 3, 2019 by Larry Lawfer

Did you know that each year in the United States, we celebrate “National Roof Over Your Head Day” on December 3^rd?

As noted on the National Calendar, it was “created as a day to be thankful for what you have, starting with the roof over your head. There are many things that we have that we take for granted and do not stop to appreciate how fortunate we are for having them.”

From bungalows to cottages, and farmhouses to treehouses, today we show our appreciation and gratitude for the places we call home. Owning the roof that shelters us is something many renters still aspire to, knowing there are so many financial and non-financial benefits to homeownership.

According to the 2019 State of the Nation’s Housing from the Joint Center for Housing Studies of Harvard University,

“Cost-burdened renters now outnumber cost-burdened homeowners by more than 3.0 million. In addition, renters make up 10.8 million of the 18.2 million severely burdened households that pay more than half their incomes for housing.”

Homeownership drives many benefits, including providing families with a place to feel secure. It also helps promote confidence that they are investing proactively in themselves and their communities. That is why there are 77.7 million owner-occupied housing units in the United States.

Many, however, fear it is too expensive to own a home. In reality, however, it’s actually more expensive to rent. Here’s the breakdown as a percentage of income necessary for both – affording median rent and owning a home: It’s ‘National Roof Over Your Head’ Day! | Simplifying The Market

Bottom Line

Today we pause to appreciate the places we call home, and all of the other reasons we have to be truly thankful. For those who don’t own yet and would like to, it’s a wonderful time to start identifying the steps to take toward homeownership. Let’s connect today to begin creating your plan.

Buyers Are Looking For Your Home [INFOGRAPHIC]

November 29, 2019 by Larry Lawfer

Some Highlights:

Existing Home Sales are currently at an annual pace of 5.46 million.
The inventory of existing homes for sale remains below the 6 months needed for a normal market and is now at a 3.9-month supply.
Inventory remains low due to high demand from buyers who are still looking for a house to buy!

The True Cost of Not Owning Your Home

November 26, 2019 by Larry Lawfer

There are great advantages to owning a home, yet many people continue to rent. The financial benefits are just some of the reasons why homeownership has been a part of the long-standing American dream.

Realtor.com reported that:

“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”

Why is owning a home financially better than renting?

Here are the top 5 financial benefits of homeownership:

Homeownership is a form of forced savings.
Homeownership provides tax savings.
Homeownership allows you to lock in your monthly housing cost.
Buying a home is less expensive than renting.
No other investment lets you live inside of it.

Studies have also shown that a homeowner’s net worth is 44x greater than that of a renter.

A family that purchased a median-priced home at the start of 2019 would build more than
$37,750 in family wealth over the next five years with projected price appreciation alone.

Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!

Bottom Line

Owning a home has many social and financial benefits that cannot be achieved by renting. Let’s connect to determine if buying a home is your best move.