Don’t Give Up on Buying a Home if You’re a Millennial Renter

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Almost 25% of Millennials (ages 26-41) claim they plan on renting forever according to this Apartment List article. That’s nearly double the amount since they started their ongoing survey of 31,000 Millennials in 2018.

In the grand scheme of things, 1 in 4 Millennials swearing off homeownership forever isn’t earth-shattering news. To put things in perspective, the highest rate of homeownership ever was 80% in North Dakota back in 1900. But generally speaking, the homeownership rate has hovered in the 65% range nationally for almost 5 decades. Some people will always be renters; homeownership isn’t for everyone. 

There are four main reasons they give for not buying:

• They feel it’s financially risky (19%)
• Don’t want the costs of maintaining a home (30%)
• They like the flexibility renting allows (28%)
• Can’t afford to buy a house (77%)

Obviously, by far the biggest reason is affordability. It’d be easy to chalk that up to the recent surge in home prices and rising interest rates. It’s legitimate and true. But that’s also been the main reason since well before the current market conditions. Truthfully, affordability is almost always the reason renters give for not buying, regardless of the decade. It’s never an easy financial leap to take.

However, while renting may feel like the easier, more affordable option, over time it’s not. In fact, renting is getting even more expensive. According to this Fortune article, an increasing amount of older adults are struggling to be able to pay rent. They’re constantly in fear of rent hikes that may just get to a point they can’t afford to pay. Then what?

While it’s never an easy financial leap to take, once you take the leap, your housing cost can be kept stable for years to come, and even go down as you pay off your house. Sure, it won’t be easy up front, but think of how it’ll be for you a couple of decades from now. Would you rather have an asset you can sell, or still be paying a landlord an ever-increasing amount of rent with nothing to show for it? 

Sure, prices and rates may seem high right now, but it almost always feels that way relative to the times. There’s always an area and a house you can afford to buy a house in, if you’re qualified for a mortgage. (And if you’re not, it’s worth making an effort to be qualified!) Your first house may not be everything you want or where you ideally would like to live, but it’s a first step toward taking control of being able to afford to live comfortably as you get older. It may seem years away right now, but time has a way of creeping up on you. And the cost of living does, too… 

The Takeaway:

Considering the financial burdens many Millennials have, coupled with rising interest rates and home prices, it’s no surprise that an increasing number of Millennials are saying they’ll never buy a home and remain renters forever. 

But if you can afford to rent, the chances are you can afford to buy. It might not be your dream home, or in the exact neighborhood you’d prefer, but you can buy something. Buy where (and what) you can afford now, so that you have a predictable and controllable cost of living — as well as an asset you can sell — as you grow older.

Let’s discuss your real estate goals. Jennifer Hanley, REALTOR The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2700 HanleyHomeTeam.com

Now May Be the Perfect Time to Sell Your House If You Aren’t Planning on Buying Another Home

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You’ve probably been hearing in the news lately that the real estate market is “shifting.” Well, according to this realtor.com article, many economists feel that we’ve moved from shifting into a “balanced” market. In other words, it’s not really a sellers’ market or a buyers’ market.

That may have you thinking that it’s not as favorable for sellers as it has been, and you missed out on the opportunity to get a historically high price for your house. Oddly, that isn’t the case at all.

Despite what headlines and economists may say, all signs point to it being an absolutely perfecttime to sell—especially if you don’t plan on buying another home. Consider the following data in that realtor.com article:

• Median listing prices are up 14.4% year-over-year
• New listings are down 12%
• Houses are taking 4 days longer to sell than they had been

Of those three things, the only thing slightly better for buyers is that it’s taking listings longer to sell…by four days.

While prices may be stabilizing and leveling off, the fact is, prices are still a good deal higher than they were just a year ago. One of the biggest reasons why the market was so favorable for sellers over the past few years was because there weren’t enough listings, and now there’s even 12% less competition.

That said, the market is shifting and it’s hard to say how much more of a window sellers have to capitalize on high prices and low competition. But, at least for now, there’s still an opportunity for you to sell and reap the benefits of the sellers’ market we’ve seen over the past couple of years.

The Takeaway:

The real estate market is now “balanced,” which might sound like it’s good for both buyers and sellers alike. But the reality is, it’s still more in favor of sellers, and even more so for sellers who aren’t planning on buying another home.

If you’re thinking about selling your house and either renting, moving in with family, into a retirement community, or a second home you already own, now is a good time to capitalize on the market conditions. Prices are still historically high, you’ve likely accrued quite a bit of equity in the past few years, and there are even less listings to compete with than there have been.

So, if you’ve been hesitating because the news made it sound like you missed out on the sellers’ market, you still have a window of opportunity. But it’s hard to say how long that will last.

Let’s talk about your special real estate goals. Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Getting Ready to Buy a Home? Use These Tips to Boost Your Credit Score

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Your credit score plays a major part in your ability to secure a mortgage—and to secure a competitive interest rate on your loan. So, before you buy a house, you’ll want to do everything you can to get your credit score as high as possible.

So how, exactly, do you do that?

A recent article from realtor.com outlined strategies potential buyers can use to boost their credit score before they purchase a home, including:

• Increase your credit limits. If you can’t pay off your credit card debt, one trick to boost your score is to ask your credit card company to increase your credit limit. Increasing your credit limit will improve your debt-to-credit ratio (how much you owe relative to how much credit you have available)—which plays a huge role in how lenders evaluate your creditworthiness for a mortgage.
• Try to erase one-time mistakes. If you have a history of paying your bills on time, but have one or two late payments on your credit report, try reaching out to your credit card company and asking them to remove the late payment from your credit report. While this won’t work for people with a history of late payments, if you have a mostly positive track record, they may be willing to work with you.
• Pay on time. If your credit score is less-than-perfect because you have a history of late payments, it’s time to start paying your bills on time. The more consistently you pay on time, the more your credit score will improve—and the easier it will be to get a loan.

Want more tips? Get in touch today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

Opendoor Loses in Court – Trust Your Real Estate Agent, Not an iBuyer

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Buying a home, fair market value, homes for sale in Jacksonville FL, ibuyer, Jacksonville FL Real Estate, Jacksonville Real Estate, opendoor, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, The best real estate agent in Jacksonville, zillow

When you’re selling your house, you want to make as much money as you can, as quickly as possible, and with the least amount of interruption to your life.

So when you come across an “iBuyer” company that offers to buy your house for fair market value, without having to put it on the market, and not having to pay real estate commissions, it can sound super appealing.

The problem is, going that route doesn’t necessarily end up making you as much money as you can!

Real estate agents have been warning consumers that iBuyer offers are often too good to be true, and that there are hidden fees and costs that end up costing the homeowner more than they would pay in commissions. To make matters worse, their offers are often for less than the owner would have received on the open market. 

Well, the Federal Trade Commission (FTC) has confirmed all of that, and more, when they took action and imposed a $62 million fine against the online home buying firm Opendoor Labs, Inc., for misleading sellers and “tricking them into thinking that they could make more money selling their home to Opendoor than on the open market using the traditional sales process.”

In addition to paying the fine, the FTC has also ordered Opendoor to stop deceiving potential homeowners and stop making baseless claims. But that doesn’t mean they’re necessarily out of the iBuying business, nor does it guarantee that they (or any other company like them) won’t deceive consumers again. In fact, it may just lead to a $46,517 fine according to the FTC press release. So, there’s still a chance you could be enticed by Opendoor (or another iBuyer) to sell directly to them, rather than go through the more traditional sales process, and list with an agent.

The problem is, when a company like this pits the consumer against agents and is supposedly trying to save them from agents, it can be hard to trust an agent warning you against that very company or type of offer. So if you aren’t fully informed, it may come across as a self-serving attempt on the part of agents to defend themselves and make money, rather than trying to truly warn and protect you. But knowing that the FTC has fined and sanctioned them ought to be fair and objective enough warning for you to trust your agent over an online company making an offer that sounds too good to be true.

The Takeaway:

If you’re debating whether to sell your house to an iBuyer, versus listing your house with an agent, make sure to interview a local real estate agent you trust before signing on the dotted line with an iBuyer. 

Listen closely to the warnings your agent is giving you, and truly analyze whether the claims and offer an iBuyer makes would net you more than listing on the open market with your local agent. If an offer from Opendoor or any other iBuyer still sounds better and more appealing, just keep in mind what the FTC recently found and fined them for. It’s probably too good to be true…

Get in touch today for a professional market analysis of your home from the Hanley Home Team. Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

3 Reasons Why the Fed Raising Interest Rates Is Good for Home Buyers

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If you’re either in the process of buying a house, or thinking of jumping into the market, you’re probably well aware that rates have jumped significantly in recent weeks. And that likely doesn’t feel or sound like anything good to you. 

But what you might not be well aware of is that, according to Chair of the Federal Reserve, Jerome Powell, raising interest rates is actually being done (at least in part) for the good of home buyers. 

With rates nearly double what they were not too long ago, you may be wondering where on earth the silver lining is. This Fortune article keys in on three things Powell is hoping the Fed’s actions will do for real estate buyers. Here’s a quick summary and how it can help you in your home search:

• They hope it gives you a “bit of a reset” – In short, there hasn’t been enough listings, and there are too many active buyers for the amount of available inventory. Ultimately, that is what led to bidding wars and prices continuing to rise. They’re hoping that by raising the rates, it will help raise inventory levels and price some buyers out of the market, giving buyers who continue with their search for a home more time and options to choose from.
• Potentially lower prices – Powell didn’t come right out and say that he hoped prices would fall, or that they definitely would. In fact, he basically said he’s not sure if it’ll affect them at all, but that they’re keeping an eye on how it affects prices. The issue is still that there are not enough houses for sale. In order for prices to come down, there needs to be an uptick in inventory. If you read between the lines, it sounds more like they’re hoping that “overvalued” markets will correct, but other areas will plateau or only see mild increases for some time, as opposed to the steep increases in value we’ve been seeing. So, this isn’t a promise, and it will likely depend a lot on your local market conditions. Keep in mind that they’ll also be sensitive to protecting the values and equity of homeowners to avoid causing homeowners financial issues or the inability to maintain or sell their house. It’s a balancing act, which is likely why he sounds a bit vague and says they’ll be watching it carefully.
• They want mortgage rates to fall – Powell just wants to get inflation under control, and calm down the real estate market so that prices don’t get too out of whack with incomes. Once that’s done, he wants to see rates drop again. Now that won’t be in the next few weeks or months. In fact, it could take a couple of years before you see that happen.

The Takeaway:

While this certainly isn’t great news for every buyer in the market, it can be for you. The rate hikes will edge some buyers out of the market, but those who are qualified and in a position to buy at the higher rates will ideally benefit from lower competition and more homes to choose from at a less frenzied pace. 

Prices may not take a steep dive, which some buyers may be hoping for, but that can be a good thing if you already own a home anyway, and want to use the equity you’ve gained by using it to buy a bigger home, or downsize and pocket some of your gains. 

On the other hand, if you are hoping for prices to fall, they will at least likely stop rising so much and so fast, and may even take a dip if your market is overvalued. So there is hope for that. Just be ready and in a position to pounce if they do, because inventory is still low, and competition is always fierce for well-priced houses, regardless of what rates are doing.

And lastly, even if you buy at a higher mortgage rate right now, know that the Fed wants to lower rates in the near future, so you can always refinance when they do.

So, even though it may not seem like the Fed raising rates is a good thing for you, it can be if you understand what they’re trying to do and are in a position to take advantage of the lower competition and increased inventory they’re hoping to create by doing so. Let’s discuss your next step – Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

These DIY Home Improvements Can Make a Negative Impression on Potential Buyers

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Many homeowners enjoy changing, updating, and renovating their homes—and many enjoy tackling those changes, updates, and renovations themselves.

But if you’re planning on selling in the future, it’s important to recognize that potential buyers might not be as impressed with your DIY handiwork as you are.

So, what are some of the DIY home improvements that might make a negative impression on buyers, and potentially make it harder to sell your home?

A recent article from realtor.com outlined some of the DIY projects that can come back to haunt you if and when you decide to sell, including:

• Converting your garage into additional living space. While it might make sense for you and your family to convert your garage into additional living space (like a home office or game room), a lot of buyers have “garage” on the top of their non-negotiable list—so think twice before you transform your garage space into anything other than a garage.
• Painting your walls… Painting your walls is one of the fastest, easiest, and most affordable DIY home projects. And, if you do it right, there shouldn’t be any problem when it comes time to sell. But if you don’t know what you’re doing (and the paint job looks sloppy, uneven, or unprofessional), it could make a negative impression on potential buyers.
• …or your kitchen cabinets. Instead of buying brand new cabinets, many homeowners choose to add a coat of fresh paint to older cabinets to breathe new life into their kitchen. And while that’s a fine decision if you’re planning on staying in the home, if you’re planning to sell, it’s important to recognize that a fresh coat of paint won’t fool buyers into thinking the cabinets are newer or more modern than they actually are.

The Takeaway:

So, what does this mean for you? There’s nothing wrong with taking a DIY approach to home renovation projects. But before you do, it’s important to make sure you know what you’re doing—and to consider what kind of impression those DIY projects are going to have on potential buyers if and when you’re ready to sell. Want to know more projects that don’t always work well – give us a call! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty HanleyHomeTeam.com 904-515-2479

Multigenerational Living

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Buying a home, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, multigenerational, multigenerational living, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, senior citizen; senior home transitioning; senior living transition; real estate for seniors, SRES, The best real estate agent in Jacksonville

Homeowners Gain an Average of $64K in Equity From Q1 2021 to Q1 2022

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When you buy a home, you want to gain equity in that home over time.

So, when it comes to equity, how did homeowners fare over the past year? According to the most recent Home Equity Insights Report from CoreLogic, homeowners did very well.

According to the report, homeowners gained, on average, approximately $64,000 in equity between Q1 2021 and Q2 2022—although many states saw much larger average equity gains for homeowners, including California ($141,000), Hawaii ($139,000), and Washington ($119,000). Overall, U.S. homeowners with mortgages (which makes up 62 percent of all properties) saw their equity increase by a whopping $3.8 trillion between Q1 2021 and Q2 2022—a year-over-year change of 32.2 percent.

The Takeaway:

If you’re a homeowner, chances are, you’ve gained some equity in your home over the past year—and if you’re planning to sell and/or buy a new home, understanding those equity gains is a must. Give us a call and let’s discuss! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty HanleyHomeTeam.com 904-515-2479

Have a Bankruptcy on Your Record? Here’s What to Know About Buying a Home

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There’s no denying that bankruptcy is a serious financial challenge. But filing for bankruptcy doesn’t have to keep you from successfully applying for a mortgage; you just need to know how to navigate the process.

So how, exactly, do you do that?

A recent article from realtor.com outlined tips for people who are looking to buy a home following a bankruptcy, including:

• Understand you may need to wait. Most people will have to wait a certain stretch of time after filing for bankruptcy to apply for a mortgage—which can range from one year (for FHA loans) to two to four years (for traditional lenders). If you’ve recently filed for bankruptcy, do your research to see how long your lender will want you to wait before they’ll consider your loan application.
• Take the time to build back up your credit. Filing for bankruptcy negatively impacts your credit score—so you’ll want to do everything you can to build it back up before applying for a mortgage. Apply for a few revolving lines of credit, pay your bills on time every month, and keep your balances low to help boost your score.
• The more documentation you can provide, the better. If you filed bankruptcy due to an unforeseen, negative, or extenuating circumstance that kept you from being able to pay your bills—such as a serious illness or the death of a spouse—lenders may be more willing to work with you. Before you apply for your home loan, write a detailed letter explaining the circumstances behind your bankruptcy, and then submit that letter with documentation supporting your claims (like a note from your doctor or a death certificate).

Need more tips? Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty HanleyHomeTeam.com 904-515-2479

Homeowners Should Have Some “Fear of Missing Out” on This Market

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Buying a home, FOMO, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, Selling a home, selling your home, selling your home in the summer. summer real estate, The best real estate agent in Jacksonville

If you’ve been thinking about selling and hesitating or simply waiting, you may want to start thinking about how you’ll feel if you miss out on the best time to sell your house in a long time. You never know when (or if) conditions will be like this in the real estate market again.

It’s been a sellers’ market for quite some time now, and with rates going up significantly and home prices still historically high, there’s a lot of chatter about whether or not there’s a real estate “bubble” that’s about to pop. In particular, The Federal Reserve Bank of Dallas recently warned about the potential of a housing bubble and how buyers’ “fear of missing out” (FOMO) is making it worse.

On the other hand, a recent survey revealed that home buyers are still hopeful and feel that it will still be a good time to buy a home in the next three months. 

That’s despite the fact that even though there have been signs and reports about the market slowing, according to this Realtor Magazine article, as of March sellers have still been:

• Receiving an average of 5 offers on their home
• Selling for above list price over 57% of the time
• And 87% of listing sold in less than a month

Much of that may very well be fueled by buyers’ FOMO, but it can’t and won’t last forever. That’s how the real estate market works—it goes up, then it goes down, and then back up again in cycles. So even if you “miss out” on this moment in history, there will certainly be a time when home values are this high, or even higher. 

But will there be such a combination of high values, low inventory, historically low rates, andhigh demand? And when will it happen? How will you feel if you “miss out” now? 

Those are questions you need to ask yourself if you’ve been toying with the idea of selling your house. 

The Takeaway:

Don’t be fueled by fear of missing out, but definitely think about how it would affect you if you did, because the market’s still in your favor…for now at least. If you’re going to sell in the next few years, now is as good a time as any to take advantage of the fact that buyers are still hopeful, offers are plentiful and over asking price, and homes are selling quickly.

GITT (get in touch today!) Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com