More Starter Homes Are Hitting the Market
More Starter Homes Are Hitting the Market More entry-level homes – also known as starter homes – are popping up on the market. And after several years with very few homes available to buy and prices rising, there are finally some more options for first-time buyers. Inventory Is Increasing – Especially at Lower Price Points Over the past year, the total supply of homes for sale has improved. According to Realtor.com, in November there were 26.2% more homes for sale compared to this time last year, marking 13 months of inventory growth and the most homes available since December of 2019. Interestingly, the growth isn’t spread evenly among all types of homes, though. According to Redfin, starter homes have seen the biggest increase (see graph below): So, if you’re a first-time buyer who’s been sitting on the sidelines waiting because you thought you might never find a starter home in your market, this could be a game-changer. You finally have more options to choose from, and you just might be able to find one in your price range. How an Experienced Agent Helps You Find a Starter Homes Finding the right starter home at the right price point in your local market might feel like an unthinkable challenge, but a local real estate agent makes it easier. They stay up to date on the latest starter home listings in your area, so you don’t miss any opportunities. Your agent will help you focus on homes that match your budget and your needs, making the search less stressful. They’ll also guide you through how to make the right offer and negotiate to get the best outcome possible. On top of that, they handle the important details, like documentation and deadlines, so you can stay right on track. And if you have questions, your agent is there with answers and expert advice every step of the way. Bottom Line Starter homes are making a bit of a comeback, and this could be your chance to find one. Whether you’re ready to visit listings, need advice, or just want to see what’s out there, let’s connect.
Only an Expert Agent Can Give You an Accurate Value of Your Home
Only an Expert Agent Can Give You an Accurate Value of Your Home In today’s digital age, it’s tempting to rely on automated tools for everything — including figuring out how much your house is worth. But be careful. The automated estimates you’re seeing online often miss key details that affect the true market value of your home. Before you toss a for sale sign in your yard and expect to bring in the number you saw for your house online, you need to understand why these tools generally aren’t spot-on and why working with an expert real estate agent is the best way to get an accurate picture of what your house is really worth. The Myth: Online Home Value Estimates Are Accurate Online home valuation tools give you an approximate value for your house based on the data that’s publicly available for your home. While this can give you a rough starting point, the keyword here is rough. As an article from Ramsey Solutions says: “Online Home Value Estimators Aren’t 100% Accurate . . . The estimates are only as reliable as the amount of public record data the real estate websites can access. The less data gathered for your particular neighborhood, county and state, the less you can depend on this number.” The Reality: Online Estimates Miss Key Factors Here’s the biggest issue with online estimates: they don’t take into account the unique aspects of your home or your local market. And that’s why an agent’s expertise can make such a difference when figuring out what your house is really worth. Here’s an example. A real estate agent will also factor in: The Home’s Condition: Online tools can’t tell whether your home has been well-maintained or if it needs significant repairs. The condition of your house plays a huge role in its value, and only an in-person walk-through can account for that. The Latest Neighborhood Trends: Is your neighborhood up-and-coming? Are there new developments or amenities nearby that make your home more desirable? Automated tools often overlook local trends that can significantly affect the value of your home. Accurate Comparable Sales: While online estimates may use past sales data as a baseline, they don’t always reflect the most recent or most relevant comparable sales, or comps. Real estate agents, on the other hand, have access to up-to-date market data and can give you a much more accurate estimate based on real-time sales in your area. Agents have a deep understanding of the local market, and they can provide insights that automated tools simply can’t match. As Bankrate explains: “Online estimation tools determine pricing using algorithms that rely on publicly available information. These algorithms can vary widely from one tool to the next and typically don’t account for a home’s current condition or any upgrades or renovations that are not reflected in public records. So they are not as accurate as in-person methods, like a real estate agent’s comparative market analysis . . .” Bottom Line While online home value estimates can be a helpful tool to get a rough idea of what your home is worth, they aren’t foolproof. The true value of your home depends on a range of factors that automated tools just can’t account for. To get the most accurate estimate, let’s connect. That way you have expert guidance and up-to-date market insights to set the best possible price for your home.
What Homebuyers Need to Know About Credit Scores
What Homebuyers Need to Know About Credit Scores When you’re preparing to buy a home, understanding your credit score can make all the difference. Your credit score is a key factor that lenders evaluate when deciding whether to approve your mortgage application and what terms to offer. Here’s a breakdown of the essentials you need to know about credit scores and how they impact your homebuying journey. What Credit Score Do Lenders Want to See? Did you know that 7 out of 10 prospective buyers don’t know the minimum credit score lenders require? Your credit score is essentially your financial report card, and it helps lenders gauge your reliability in paying back a loan. The Minimum Varies by Lender and Loan Type The minimum credit score needed to buy a house can range widely—from 500 to 700. However, the specific score you’ll need depends on the type of mortgage loan you’re applying for and your lender’s requirements. For example: FHA Loans: Typically require a lower credit score, making them a good option for first-time buyers. USDA Loans: Focused on rural homebuyers, these loans also have flexible credit requirements. VA Loans: Designed for veterans, these loans offer competitive rates and terms. Conventional Loans: Require a higher credit score but may offer better rates. Jumbo Loans: For high-value homes, these loans demand an excellent credit score. Average Buyer FICO Credit Score by Loan Type Let’s take a closer look at average credit scores for homebuyers based on loan types: Overall Average: 727 FHA Loans: 645 USDA Loans: 684 VA Loans: 692 Conventional Loans: 738 Jumbo Loans: 768 As you can see, conventional and jumbo loans generally require higher credit scores than government-backed loans like FHA, USDA, and VA loans. Tips to Improve Your Credit Score If your credit score isn’t quite where you’d like it to be, don’t worry. There are steps you can take to improve it. Here are some tips: Pay Your Bills on Time: Consistently paying your bills by their due dates is one of the fastest ways to boost your score. Pay Off Outstanding Debt: Reducing your debt can improve your credit utilization ratio, which plays a big role in your score. Don’t Apply for Too Much Credit: Each application for new credit can result in a hard inquiry, which may temporarily lower your score. Final Thoughts Your credit score is an important factor when buying a home, but it doesn’t need to be perfect. By working with a knowledgeable lender, you can explore a variety of loan options that may suit your financial situation. Take proactive steps to understand and improve your credit score, and you’ll be one step closer to owning your dream home. If you’re ready to take the next step or have questions about the homebuying process, contact us today. We’re here to guide you every step of the way!
The Top 2 Reasons To Look at Newly Built Homes
The Top 2 Reasons To Look at Newly Built Homes When planning a move, a newly built home might not be the first thing that comes to mind. But with more brand-new homes on the market and builders focusing on smaller, more affordable options, this type of home may just be the key to crossing the homebuying finish line. Here's why a new build is worth considering – and how an agent can help you find one that meets your needs and your budget. 1. More Newly Built Homes Are Available Right Now First, let’s break down the types of homes on the market. A newly built home is a house that was just built or is under construction. On the other hand, an existing home is one a homeowner has already lived in. Right now, the number of existing homes for sale is still low. And, if you’re struggling to find something you like because there aren’t that many existing homes for sale, opening up your search to include brand-new homes could really expand your options. That’s because there are more newly built homes available right now than in a typical year (see graph below): From 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. Today, that number has climbed to 28.8%, according to the most recent data. And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes: “Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.” While the uptick in new home construction is encouraging, rest assured that builders aren’t overdoing it, they’re just making up for over a decade of underbuilding. There are still way more buyers than there are homes on the market. But the good news for you is this increase in newly built homes means more options for your search. 2. Newly Built Homes Are Becoming Less Expensive Still skeptical if a new build is right for you or if they’re even in your budget? The average cost of newly built homes has actually come down from a year ago. Why is that? Builders know affordability is top of mind for homebuyers right now. So they’re focusing their efforts on building smaller homes they can offer at lower price points and are more likely to sell. As Realtor.com says: “Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.” Something to keep in mind: buying a newly built home isn’t the same as buying an existing one. Builder contracts have different fine print. So be sure to partner with a local agent who knows the market, builder reputations, and what to look for in those contracts. Bottom Line Depending on your needs and budget, a new build might be the opportunity you’ve been waiting for to bring your homebuying vision to life. If you’re interested in a brand-new home, let’s connect so you can check out what builders in your area are up to.
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