Will the cost of your next home be less than your parents home?

The COST of Your Next Home Will Be LESS Than Your Parents’ Home Was

The COST of Your Next Home Will Be LESS Than Your Parents' Home Was | MyKCM

There is no doubt that theprice of a home in most regions of the country is greater now than at any time in history. However, when we look at the cost of a home, it is cheaper to own today than it has been historically.

The Difference Between PRICE and COST

The price of a home is the dollar amount you and the seller agree to at the time of purchase. The cost of a home is the monthly expense you pay for your mortgage payment.

To accurately compare costs in different time periods, we must look at home prices, mortgage rates, and wages during each period. Home prices were less expensive years ago, but paychecks were also smaller and mortgage rates were much higher (the average mortgage interest rate in 1988 was 10.34%).

The best way to measure the COST of a home is to determine what percentage of income is necessary to buy a home at the time. That would take into account the price of the home, the mortgage interest rate and wages at the time.

Zillow just released research that examined home costs using this formula. The research compares the historic percentage of income necessary to afford a mortgage to the percentage needed today. It also revealed the cost if mortgage rates continue to rise as experts are predicting. Here is a graph of their findings*:

The COST of Your Next Home Will Be LESS Than Your Parents' Home Was | MyKCM

Rates would need to jump to 7% in order for the percentage of necessary income to be greater than historic norms.

Bottom Line

Whether you are a homeowner considering selling your current house and moving up to the home of your dreams, or a first-time buyer trying to purchase your first home, it’s a great time to move forward.

*Assumptions in the Zillow report: Buyer puts 20% down, takes out a conforming, 30-year fixed-rate mortgage at rates prevailing at the time, earns the median household income, and is buying a median-valued home.

By: The KCM Group.                 HRE-ROB MATTHEWS

2 Ways to get the Most Money from The Sale of Your Home

2 Ways to Get the Most Money from The Sale of Your Home

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

2 Ways to Get the Most Money from The Sale of Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

KeepingCurrentMatters

HRE-ROB MATTHEWS

Is Now the Right Time to Sell Your Central Indiana Home?

Is Now the Right Time to Sell Your Central Indiana Home?

A lot of people have been asking us, “When is the best time of year to sell my house?” Our answer is that the best time to sell is the time of year when your house looks the best.

For a lot of people, that means spring is the right time to sell. There are some flowers blooming, and most people deep-clean their homes in the spring. Of course, the issue with the spring season is you will have more competition, as many people try and sell in spring so that they can move before the next school year.

Really, there’s no particular season that is the best time to list a home. If you’re not in a big hurry, then waiting until February or March might be feasible. If you’re in a rush, then you can certainly list this winter. Houses decorated for the holidays tend to sell well.

Ultimately, you should list your home based on when you need to get into the next location. Don’t get pigeonholed into one time of the year. If you can, list the property when it will look the best.

If you have any questions, give us a call or send us an email. We look forward to hearing from you!

Robert Matthews SFR, Realtor, CNE                                                               317.345.9370                                                                   RobertMatthews@highgarden.com                                          http://MoveWithMatthews.com

 

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Should you do a pre-listing inspection?

Should you do a pre-listing inspection?

     Today, I’d like to talk about the importance of home inspections. Home inspections can be mutually beneficial to both buyers and sellers. However, a common trend that we’re seeing is when a seller will actually get a home inspection prior to listing a home.

From the seller’s standpoint, a pre-listing inspection can be very valuable. That way, you know about the issues with the property and you can get a lot of them taken care of up front. A buyer might misinterpret some minor issues as major issues, and having that pre-listing inspection can save you a lot of money.

Buyers enjoy the fact that a seller was being proactive and got an inspection before listing their home. This gives them peace of mind, and that’s a nice thing to have in a real estate transaction. This is also a great way for a seller to stand out in a crowded market.

If you have any questions, please don’t hesitate to call or send an email. We look forward to hearing from you!

Robert Matthews                                                                                               317.345.9370                                                            www.robertmatthews@highgarden.com                                    www.MoveWithMatthews.com

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Read this before you sign that lease.

 Why Does Buying Make More Sense than Renting?

Today we are talking about renting vs. buying, a fun topic that I enjoy talking about. Our rental market is getting incredibly hot right now. As a landlord renting my house out, I’ve seen prices going through the roof and I can’t believe how high they are getting. For example, a house that rented at $1200 a month last year is renting for $1500 a month this year.

If you can buy a house, you should. You get many tax benefits, including your interest and mortgage insurance being tax deductible. In a rental situation, you will spend equal to or more than your mortgage payments, and you don’t get any of those tax benefits and aren’t able to do home improvements.

The clear answer is if you have the capability, you definitely want to buy. It provides huge financial benefits and incentives, and it doesn’t make sense not to if you are able to.

If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you soon!

Robert Matthews Realtor, CNE, SFR                                                                 317.345.9370                                                             www.RobertMatthews@highgarden.com                                 www.MoveWithMatthews.com

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Why Winter Is a Good Time to Sell in Central Indiana.

Today, we’ll go over selling your property in the winter season. The conventional wisdom is that you shouldn’t sell your home in the winter because no one wants to buy a home and move during the holidays. However, we’ve seen that winter is one of the best times to sell and get top dollar. 

Why? It’s a simple matter of supply and demand. Due to the conventional wisdom out there, many people opt to wait and sell in spring or even take their homes off the market during the fourth quarter. This leads to a shortage of inventory. 

No one wants to move during the holiday season. Those that move during winter do so because they have to. Maybe they are a military family. Perhaps, they’ve been transferred by their employer and need to move in by the end of the fiscal year, which is December 31st. These buyers are highly motivated. Since there aren’t as many homes available for sale, you can get the most amount of motivated buyers with the least amount of competition! 

In the winter, you will most likely spend fewer days on the market, and your overall sales price can go up because of the highly motivated buyers. If you’re thinking of selling your home or if you have any other questions for us, give us a call or send us an email. We look forward to hearing from you!

Robert Matthews SFR, CNE, Realtor 

www.MoveWithMatthews.com 

RobertMatthews@highgarden.com 

Cell: 317.345.9370 

 

The Number One Winterizing Tip

The Number One Winterizing Tip

The cold is coming – is your home prepared?

Keep your home protected from the cold winter! Shut off and drain your hose bibs, so they don’t freeze and break.

In most houses, you’ll find a front and back hose bib by the water heater in your utility room. Both valves should be horizontal or perpendicular to the line the water is flowing through.

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Ensure the valves are turned off before disconnecting hoses and draining them separately. Open the valves and drain them before heading back inside. Next, you want to use the bleeder valve, which you can open by hand or with a pair of pliers. Break the seal and let the air in. This causes the water to siphon out through the outside spigot.

This ensures there is no water in the lines and will prevent frozen pipes and a huge mess in the spring! This is a simple task that every homeowner should do to keep their home protected through the cold months.

If you have any questions or need real estate assistance of any kind, please don’t hesitate to reach out to us. We would love to hear from you!

http://www.MoveWithMatthews.com

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How to Upgrade Your Home Inexpensively

Today I want to talk to you about a few ways that you can upgrade the look of your Scottsdale home without breaking the bank. People are always looking for ways to add value to their home so it sells for top dollar. We’ve got some great tips for you today on how to do just that. Here are our top tips for improving your home’s look inexpensively:

  • Clean, bright, and uncluttered homes show better and give an impression to the buyers that the home is well taken care of.
  • Front yard landscaping is a must. If your curb appeal isn’t there, the buyer might not make it to the front door.
  • Make sure your fixtures are shining for the showing by replacing all your light bulbs, letting the sun in, and opening up those blinds or curtains.
  • Remove personal items like family photos, keepsakes, and antiques.
  • Keep a bottle of cleaner handy to make sure your counters, tables, and bathrooms are all cleared off, which makes them look bigger.
  • Keep the fridge shelves clean, and wipe down all cabinets.
  • Clean up your baseboards and touch them up with paint if necessary.
  • Paint in neutral tones to help buyers picture their furniture in your home better.
  • If your kitchen and bathrooms scream 1980, it’s time for an upgrade.

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If you have any other questions for us or if there is anything I can help you with, give me a call or send me an email. I look forward to hearing from you!

Robert Matthews,

Realtor®, SFR, CNE®

Highgarden Real Estate

317.345.9370

 

 

2804 Arklow Way, Brownsburg, IN

2804 Arklow Way, Brownsburg, IN

For Sale

Presented By:

Robert Matthews

Highgarden Real Estate
317-345-9370
Licensed In: IN

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$ Click for current price
4 BEDROOMS | 3 (2 full, 1 half ) BATHROOMS | 2578 SQUARE FEET

Excellent condition two story 4bedroom 2.5 bath home. This home has many upgrades: vinyl siding, 2’extension on rear of house, 9′ ceiling on first floor, large pantry, kitchen cabinets, appliances, kitchen island, insulated garage door, 4′ garage side bump out. Home has been well maintained.

 

2804 Arklow Way, Brownsburg, IN

2804 Arklow Way, Brownsburg, IN

For Sale

$ Click for current price
4 BEDROOMS | 3 (2 full, 1 half ) BATHROOMS | 2578 SQUARE FEET

Excellent condition two story 4bedroom 2.5 bath home. This home has many upgrades: vinyl siding, 2’extension on rear of house, 9′ ceiling on first floor, large pantry, kitchen cabinets, appliances, kitchen island, insulated garage door, 4′ garage side bump out. Home has been well maintained.