J. Kent Erickson, Broker Associate
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Top 5 Reasons You Shouldn’t FSBO

Posted by on Sep 30, 2018 in Uncategorized | 0 comments

Top 5 Reasons You Shouldn’t FSBO In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers. Here are the top five reasons: 1. Exposure to Prospective Buyers According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers search online for a home. That is in comparison to only 15% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 2. Results Come from the Internet Where did buyers find the home they actually purchased? 49% on the internet 31% from a...

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How a Lack of Inventory Impacts the Housing Market

Posted by on Sep 28, 2018 in Uncategorized | 0 comments

How A Lack of Inventory Impacts the Housing Market The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. The market will continue to strengthen in 2018. However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. Buyer demand naturally increases during the summer months, but supply is not keeping up. Here are the thoughts of a few industry experts on the subject: Lawrence Yun, Chief Economist at National Association of Realtors “The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets. Following the same...

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Are Lending Standards Too Loose…or Too Tight?

Posted by on Sep 26, 2018 in Uncategorized | 0 comments

Are Lending Standards Too Loose…or Too Tight? With home values appreciating at record rates, some are concerned that we may be heading for another housing bubble like the one we experienced a decade ago. One of the major culprits of that housing boom and bust was the loosening of standards for mortgage credit. In a study done at the University of North Carolina immediately after the crisis, it was revealed that: “Lenders began originating large numbers of high risk mortgages from around 2004 to 2007, and loans from those vintage years exhibited higher default rates than loans made either before or after.” A study by John V Duca, John Muellbauer, and Anthony Murphy concluded that those risky mortgages caused the housing crisis: “Our findings indicate that swings in credit standards played a major, if not the major, role in driving...

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Parents Say Kids’ Opinions Matter Big When Buying a Home

Posted by on Sep 24, 2018 in Uncategorized | 0 comments

Parents Say Kids’ Opinions Matter Big When Buying a Home A recent survey conducted by Harris Poll and released by SunTrust Mortgagefound that “55% of homeowners with a child under the age of 18 at the time when they purchased their home said that the opinion of their offspring played a major role in their home buying decision.” When the results were broken down by the parent’s age, millennials (those 18-36) led the way with 74% of homeowners saying that their child’s opinion was a factor in choosing which home to buy. Eighty-three percent of renters believe that their child’s opinion would be a deciding factor when looking to purchase a home. So what features in a home are most important to kids? Coming in at 57%, it should come as no surprise that gaining their own bedrooms was the top most-desirable feature of any...

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When is a Good Time to Rent? Not Now!

Posted by on Sep 22, 2018 in Uncategorized | 0 comments

When Is a Good Time to Rent? Not Now! People often ask if now is a good time to buy a home, but nobody ever asks whether or not it’s a good time to rent. Regardless, we want to make certain that everyone understands that now is NOT a good time to rent. The Census Bureau recently released their 2018 first quarter median rent numbers. According to their report, here is a graph showing rent increases from 1988 until today: As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead. Bottom Line One way to protect yourself from rising rents is to lock in your housing expense by...

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