J. Kent Erickson, Broker Associate
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Buying a Home is 36% Less Expensive Than Renting Nationwide!

Posted by on Sep 29, 2016 in Uncategorized | 0 comments

Buying a Home is 36% Less Expensive Than Renting Nationwide! In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide! Other interesting findings in the report include: Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation. Some markets may tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy. Nationally, rates would have to rise...

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Put Your Housing Cost To Work For You!

Posted by on Sep 22, 2016 in Uncategorized | 0 comments

Put Your Housing Cost To Work For You! There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home. As we have said before, mortgage interest rates are still nearhistoric lows and rents continue to rise. Housing Cost & Net Worth Whether you rent or buy, you have a monthly housing cost. As a buyer, you are contributing to YOUR net worth. Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “forced savings.” “Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.” The principal portion of your mortgage payment helps build your net worth through building the equity you have in your...

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3 Questions Every Buyer Should Ask Themselves

Posted by on Sep 15, 2016 in Uncategorized | 0 comments

3 Questions Every Buyer Should Ask Themselves If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market. Answering the following 3 questions will help you determine if now is actually a good time for you to buy in today’s market. 1. Why am I buying a home in the first place? This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money. For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an...

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Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly

Posted by on Sep 8, 2016 in Uncategorized | 0 comments

Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. One major challenge in such a market is the bank appraisal. If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank. Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months. The gap between the homeowner vs. appraiser’s opinion has started to head in the right direction (closer to even), as June saw a slight decrease from May’s -1.95% to -1.89% nationally....

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2 Tips For Getting the Most Money When Selling Your House

Posted by on Sep 1, 2016 in Uncategorized | 0 comments

2 Tips For Getting The Most Money When Selling Your House Every homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible. 1. Price it a LITTLE LOW This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below). Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In that way, the seller will not be fighting with a buyer over...

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