J. Kent Erickson, Broker Associate
Direct / 208.447.7848

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

Posted by on Feb 12, 2020 in Buying a Home, Home Ownership | 0 comments

When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process. 1. Gain a Competitive Advantage Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the...

Read More

Buying a Home Early Can Significantly Increase Future Wealth

Posted by on Jan 29, 2020 in Buying a Home | 0 comments

According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60. The good news is, our younger generations are strong believers in homeownership. According to a Freddie Mac survey, “The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials. Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).” If these aspiring homeowners purchase at an early age, the Urban Institute study shows the impact it can have. Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The...

Read More

Planning on Buying a Home? Be Sure You Know Your Options.

Posted by on Dec 4, 2019 in Buying a Home | 0 comments

When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited existing home inventory available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams. According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), “The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.” This is great news for homebuyers because it means there is additional inventory coming to the market, giving buyers more choices. The most recent data from NAHB shows, “The inventory of new homes for sale was 321,000...

Read More

How to Determine If You Can Afford to Buy a Home

Posted by on Nov 27, 2019 in Buying a Home, Mortgage & Finances | 0 comments

The gap between the increase in personal income and residential real estate prices has been used to defend the concept that we are experiencing an affordability crisis in housing today. It is true that home prices and wages are two key elements in any affordability equation. There is, however, an extremely important third component to that equation: mortgage interest rates. Mortgage interest rates have fallen by more than a full percentage point from this time last year. Today’s rate is 3.75%; it was 4.86% at this time last year. This has dramatically increased a purchaser’s ability to afford a home. Here are three reports validating that purchasing a home is in fact more affordable today than it was a year ago: CoreLogic’s Typical Mortgage Payment “Falling mortgage rates and slower home-price growth mean that many buyers this year are...

Read More

Depending on the Price, You’re Going to Need Advice

Posted by on Nov 15, 2019 in Buying a Home, Real Estate Market | 0 comments

To understand today’s complex real estate market, it is critical to have a local, trusted advisor on your side – for more reasons than you may think. In real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Each one is unique, and depending on the city, the price point in these categories will vary. For example, a starter or lower-end home in San Francisco, California is much more expensive than almost any other part of the country. Let’s explore what you need to know about each of these tiers. Starter-Home Market: This market varies by price, and these homes are typically purchased by first-time home buyers or investors looking to flip them for a profit. Across the country, homes in this space currently have less than 6 months of inventory for sale. That...

Read More

5 Tips for Starting Your Home Search

Posted by on Nov 13, 2019 in Buying a Home | 0 comments

In today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are five tips from realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.” 1. Get Pre-Approved for a Mortgage Before You Start Your Search One way to show you’re serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage. Even if you’re in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach. This will help you avoid the disappointment of falling in love with a home well outside your price range. 2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’ Do you really need that...

Read More