Key Terms To Know When Buying a Home

Key Terms To Know When Buying a Home [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Buying a home is a major transaction that can seem even more complex when you don’t understand the terms used throughout the process.
  • If you’re looking to become a homeowner this year, it’s important to know these housing terms and how they relate to the current market so you feel confident throughout the homebuying process.
  • Let’s connect so you have expert answers for any questions as they come up.

3bed 2bath Corner Lot / 5 MILES to Bethany Beach / THE ESTUARY / 38057 Pine Needle Lane

Perfectly situated on a large corner lot in the Estuary, this 3 bedroom 2 bathroom Darley Model home some so much to offer – both inside, and out! You’ll notice gorgeous extensive landscaping, a brick paver entryway, spacious outdoor brick paver patio with sitting walls, and a fully fenced back yard! Indoors, the entire main living area is luxury vinyl plank flooring, and features a contemporary kitchen with white cabinetry and granite countertops. The baths offer upgraded shower doors, and all closets have built-in organization systems. Enjoy your afternoons on the screened porch, with retractable sunshades – perfect for those hot summer days! The garage features a large work bench, slat board walls for plenty of storage, and hanging racks all around the high areas. This home also has a whole-house water filtration system installed! 

The Estuary is located less than 5 miles from Bethany Beach, and offers incredible community amenities including: Clubhouse, game room, fitness facility, arts/crafts room, 17 miles of pathways, beach shuttle, expansive main pool w/ in-water sunning deck, lap pool, children’s pool, covered pavilion with bar, fire pit, large lake with pier for fishing and kayaking, tennis and pickleball courts!⁠


Thinking about listing your home? CONNECT WITH OUR TEAM to learn what your homes value is in todays local Real Estate market!

Is It Time To Sell Your Second Home?

Is It Time To Sell Your Second Home? | MyKCM

During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a recent articleInvestopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious.

A recent report from the Institute for Luxury Home Marketing (ILHM) explains just how much remote work impacted the demand for second and luxury homes:

“The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”

But what if you bought a second home that you no longer use? If you’re now shifting back into the office or are seeing your priorities and needs change, you may find you’re not utilizing your second home as much. If so, it may be time to sell it.

And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing explains:

“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.

This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.”

If you own a luxury second home that isn’t being used as much anymore, now’s the time to sell. There are still buyers in the market who are looking for a home like yours today.

Connect with our team to explore the benefits of selling your second home this year!

Today’s Housing Market Is Nothing Like 15 Years Ago

Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM

There’s no doubt today’s housing market is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences.

In the latest Real Estate Forecast Summit, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), drew the comparisons below between today’s housing market and the previous cycle:

Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM

Looking at the facts, it’s clear: today is very different than the housing market of 15 years ago.

There’s Opportunity in Real Estate Today

And in today’s market, with inventory rising and less competition from other buyers, there’s opportunity right now. According to David Stevens, former Assistant Secretary of Housing:

“So be advised…this may be the one and only window for the next few years to get into a buyer’s market. And remember…as the Federal Reserve data shows…home prices only go up and always recover from recessions no matter how mild or severe. Long term homeowners should view this market…right now…as a unique buying opportunity.”

Bottom Line

Today’s housing market is nothing like the real estate market 15 years ago. If you’re a buyer right now, this may be the chance you’ve been waiting for.

Avoid the Rental Trap in 2023

Avoid the Rental Trap in 2023 | MyKCM

If you’re a renter, you likely face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different. But before you dive too deeply into your options, it helps to understand the true costs of renting moving forward.

In the past year, both current renters and new renters have seen their rent go up based on information from realtor.com:

Three out of four renters (74.2%) who have moved in the past 12 months reported seeing their rent increase. The strain from recent rent hikes isn’t exclusive to renters who have recently moved. Nearly two-thirds of renters (63.2%) who have lived in their current rental between 12 and 24 months, and likely renewed their lease, have also reported increases in their rent.”

And if you look back at historical data, that shouldn’t come as surprise. That’s because, according to the Census, rents have been rising fairly consistently since 1988 (see graph below):

Avoid the Rental Trap in 2023 | MyKCM

So, if you’re considering renting as an option in 2023, it’s worth weighing whether this trend is likely to continue. The 2023 Housing Forecast from realtor.com expects rents will keep climbing (see graph below):

Avoid the Rental Trap in 2023 | MyKCM

That forecast projects rents will increase by 6.3% in the year ahead (shown in green). When compared to the blue bars in the graph, it’s clear that the 2023 projection doesn’t call for an increase as drastic as the ones renters have seen over the past two years, but it’s still above the historical average for rent hikes between 2013-2019.

That means, if you’re planning to rent again this year and you’ve not yet renewed your lease, you may pay more when you do.

Homeownership Provides an Alternative to Rising Rents

These rising costs may make you reconsider what other alternatives you have. If you’re looking for more stability, it could be time to prioritize homeownership. One of the many benefits of owning your own home is it provides a stable monthly cost that you can lock in for the duration of your loan. As Freddie Mac says:

Monthly rent payments may increase over time, but a fixed-rate mortgage will ensure that you’re paying the same amount each month. With a fixed-rate mortgage, your interest rate is locked in for the life of loan. Steady payments allow you to budget wisely and make plans for the future.”

If you’re planning to make a move this year, locking in your monthly housing costs for the duration of your loan can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases like you would if you left your housing payment up to your landlord and their renewal cycle.

Homeowners also enjoy the added benefit of home equity, which has grown substantially. In fact, the latest Homeowner Equity Insight report from CoreLogic shows the average homeowner gained $34,300 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage on a house, you grow your wealth through the forced savings that is your home equity.

If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face. Connect with our team to see how you can begin your journey to homeownership today.

Planning To Sell Your House? It’s Critical To Hire a Pro.

Planning To Sell Your House? It’s Critical To Hire a Pro | MyKCM

With higher mortgage rates and moderating buyer demand, it’s important for sellers to understand how the market has changed, and what that means for you! Working with a local, trusted Realtor is the best way to get the most out of your sale, and to make sure you’re constantly in the know.

Our team keeps a close eye on the Real Estate Market Trends in our area! More importantly, we’ll know what all of this means for you in relation to your homes value, how to approach and adjust your selling plan, along with how to help you make decisions based on trustworthy, data-bound information.

We can help you set the right price for your home! With home price appreciation moderating this year, it’s important to get an unbiased opinion of an accurate price for your home. We’ll use factors like the condition of your home, any upgrades you’ve made, and compare your house to recently sold homes in your area to find the best price for today’s market. These steps are key to making sure it’s set to move as quickly as possible! Without access to the tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.

Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. Our team knows exactly what the fine print means and how to work through it efficiently. We’ll help you review documents and avoid any costly missteps that could occur if you tried to handle them on your own.

In today’s market, buyers are also regaining some negotiation power as bidding wars ease. As your agent, we’ll also be responsible for any back-and-forth- saving you time, and energy. It’s our job to coordinate with:

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who will use their expertise to advocate for the buyer
  • The inspection company, which works for the buyer and will almost always find concerns with the house
  • The appraiser, who assesses the property’s value to protect the lender

Instead of going toe-to-toe with all the above parties alone, you can lean on our team! We’ll know how to address everyone’s concerns, and when you may want to get a second opinion.

Don’t go at it alone! If you’re planning to sell your house this winter, let’s connect so you have an expert by your side to guide you in today’s market.

Applying For a Mortgage? Here’s What You Should Avoid Once You Do.

Applying For a Mortgage? Here’s What You Should Avoid Once You Do. | MyKCM

BETHANY BEACH HOME BUYERS: Here are some KEY THINGS to avoid once you apply for a mortgage:

Don’t deposit large sums of cash! Lenders need to source your money, and cash isn’t easily traceable. Before you deposit cash into your accounts, discuss the proper way to document your transactions with your lender.

Don’t make any large purchases! We know that new couch would look AMAZING in your living room, BUT, wait until after closing… trust us on this one! Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios, and since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. 

Don’t co-sign loans for anyone! When you cosign for a loan, you’re making yourself accountable for that loan’s repayment. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.

Don’t switch OR close bank accounts! Tracking your assets is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your lender. Additionally, a major component of your credit score is your length and depth of credit history, and your total usage over available credit ratio. Closing accounts has a negative impact on both of those aspects of your score.

Don’t apply for new credit! Whether it’s a new credit card OR a new car…. Wait until AFTER closing! When your credit report is ran by organizations in multiple financial channels, it will have an impact on your FICO® score. 

Last, Don’t leave your questions unanswered! Always ask your lender or Realtor for advice at any point during your home buying process – we’re here to help!

Ready to move to Coastal Delaware or Maryland? Connect with our team to get started!

Confused About What’s Going on in the Housing Market? Lean on a Professional.

Confused About What’s Going on in the Housing Market? Lean on a Professional. | MyKCM

If you’re thinking about buying or selling a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, explains:

“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.

Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parclsays:

In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.

But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local real estate advisor.

A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.

Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.

After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.

Bottom Line

If you have questions about the headlines or what’s happening in the housing market today, let’s connect so you have expert insights and advice on your side!

4 Things That Make a House a Home

What makes a house, a home?🏠

There’s no denying the long-term financial benefits of owning a home, but the current housing market may have you wondering if buying a home today, is still worth it. On top of financial benefits, buying a home also offers enormous non-financial and emotional perks, as well! 

Home means something different to all of us. Whether it’s creating new memories with loved ones at the kitchen table, gardening in your bigger backyard, or settling in to read a book in a favorite chair, the emotional connections to our homes can be just as important as the financial ones.✨ 

Whether you’re planning to buy your first home or you’re ready to find a new space that better meets your needs, consider the emotional benefits that can turn a house into your very own happy place! Feeling ready? CLICK HERE to connect with our team!

#bethanybeachrealestate #theashleybrosnahanteam #marylandrealestate #delawarebeaches #coastalliving #bethanybeachdelaware #buyingahome #firsttimehomebuyer #homebuyer 

What To Expect From the Housing Market in 2023

What To Expect from the Housing Market in 2023 | MyKCM

The 2022 housing market has been defined by two key things: inflation and rapidly rising mortgage rates. And in many ways, it’s put the market into a reset position.

As the Federal Reserve (the Fed) made moves this year to try to lower inflation, mortgage rates more than doubled – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between supply and demand, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.

But what does that mean for next year? What everyone really wants is more stability in the market in 2023. For that to happen we’ll need to see the Fed bring inflation down even more and keep it there. Here’s what housing market experts say we can expect next year.

What’s Ahead for Mortgage Rates in 2023?

Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, mortgage rates will likely respond. While there may be early signs inflation is easing as we round out this year, we’re not out of the woods just yet. Inflation is still something to watch in 2023.

Right now, experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more in 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):

What To Expect from the Housing Market in 2023 | MyKCM

That means, we’ll start the year out about where we are right now. But we could see rates tick down if inflation continues to drop. As Greg McBride, Chief Financial Analyst at Bankrateexplains:

“. . . mortgage rates could pull back meaningfully next year if inflation pressures ease.

In the meantime, expect some volatility as rates will likely fluctuate in the weeks ahead. If we see inflation come back under control, that would be good news for the housing market.

What Will Happen to Home Prices Next Year?

Homes prices will always be defined by supply and demand. The more buyers and fewer homes there are on the market, the more home prices will rise. And that’s exactly what we saw during the pandemic.

But this year, things changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates. The level of moderation has varied by local area – with the biggest changes happening in overheated markets. But do experts think that will continue?

The graph below shows the latest home price forecasts for 2023. As the different colored bars indicate, some experts are saying home prices will appreciate next year, and others are saying home prices will come down. But again, if we take the average of all the forecasts (shown in green), we can get a feel for what 2023 may hold.

What To Expect from the Housing Market in 2023 | MyKCM

The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation in 2023. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Bottom Line

The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor. Connect with our team today!