Tag Archives: homebuyers

Millennials: Looking for More Space?

If you’re a millennial, buying a home might be top of mind for you right now. Your generation is the largest group of homebuyers in the market today and has been since 2014, according to the National Association of Realtors (NAR). While other millennials are looking to buy for the first time, you may be one of the many, who are discovering you’ve already outgrown your first house.

If that’s the case, you’re not alone. The past two years brought about significant changes for many people. Today, many homeowners are reevaluating what they truly need in a house. As a recent report from the Wall Street Journal states: “The pandemic and the emergence of remote work accelerated millennial home-buying trends already under way…Millennials who already owned homes traded up for more space.”

So, if you’re now working remotely or simply have a growing need for additional space, it may be time to move. Even if you purchased your current home over the last few years, you can still move into a different one that has the space and features you’re looking for. That’s because there’s a good chance you have more equity than you realize.

As Diana Olick, Real Estate Correspondent for CNBCnotes: “The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth. About 42% of homeowners were considered equity-rich at the end of last year, meaning their mortgages were half or less than half of the value of their home!

Growing equity can be the key you need to fuel your next move, especially if you’re looking to purchase a larger home. When you sell your current house, the equity that comes back to you in the sale can be used toward the down payment on your next home.

Equity plus low mortgage interest rates would make what might appear to be the “unaffordable” actually affordable.

Your purchasing power may be greater than you realize, making a move to a larger home a realistic option. 

Curious about your options? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions.

It’s important that you have the right information to make an educated and informed decision.

Have a good week…

Mari and Hank

Homeownership Is Worth it

When you’re getting ready to buy your first home, there’s always a well intentioned family member or friend whispering in your ear telling you that it’s not worth it.

“Just rent,” they say. “You don’t need the aggravation.”

“A house is a money pit. There’s always something.”

“Think about all you’ll save by not paying property taxes.”

But, respondents to a recent Fannie Mae  consumer survey beg to differ. According to them, the top four financial benefits of owning a home are:

  • 88% – a better chance of saving for retirement
  • 87% – the best investment plan
  • 85% – the chance to be better off financially
  • 85% – the chance to build up wealth

Additional financial advantages of homeownership mentioned in the survey are having the best overall tax situation and being able to live within your budget.

Does homeownership actually give you a better chance to build wealth?

No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset.

Last fall, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

Homeownership Is Full of Financial Benefits | MyKCM

The difference in net worth between homeowners and renters has continued to grow. Here’s a graph showing the results of the last four Fed surveys:The above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

Homeownership Is Full of Financial Benefits | MyKCM

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings :Others may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

Homeowners 65 and older have 47.6 times greater net worth than renters.

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

Clearly homeownership is worth the “aggravation” as it is a direct way to build your net worth.

So, thank well meaning family and friends for their concern. Then let’s connect at 508-568-8191 or msennott@todayrealestate.com to discuss your options. Helping our clients — including many first time homebuyers — make the best decisions for their individual situations has been our full time job for more than 20 years. Let’s talk soon…

Don’t wish for it; go for it!

Mari and Hank

Bottom Line

Pricing Your House Right in 2021

Even in the current sellers’ market, pricing strategy is important for the successful and efficient sale of your home.

Your goal should be to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should be looking to list your home so that demand is maximized and more buyers want to take a look.

As a seller in today’s market, you might be tempted to price your house on the high end, since so many are searching harder than ever to find a home to purchase. But here’s the thing – a high price tag does not mean you’re going to cash in big. It’s actually more likely to deter buyers.

Why It’s Important to Price Your House Right Today | MyKCM

Even with inventory limited on Cape Cod and elsewhere, your house is more likely to sit on the market longer if it isn’t priced right from the very beginning. Unrealistic prices lead to “price improvements” and what can be appear to be too much time on the market raising questions about “what’s wrong” with the property.

When you price your home competitively from the start, you’ll likely have multiple buyers competing for the house, potentially increasing the final sale price.

Here’s another reason to realistically price your home. We’ve worked with several buyers over the last many weeks, who contacted us about property on the Cape. When they became discouraged because of tight inventory and/or unrealistic prices, they moved their search back over the bridges.

We’ve shown property in places as far off Cape as Fairhaven and currently have sales pending in Rochester and Randolph with offers made in a few more communities.

With buyer interest in the Cape remaining strong, now’s the time to maximize the return on your investment in your home.

Helping our clients make the best decisions when selling their homes has been our full time job for 21 years, not a part time hobby. Let’s connect at 508-568-8191 or msennott@todayrealestate.com to discuss a pricing and marketing strategy that’s right for your home.


More predictions for 2021

We shared with you last week industry predictions for the 2021 market.

Here are direct quotes from some of the more respected experts in the field..

“In 2021, I think rates will be similar or modestly higher, maybe 3%…So, mortgage rates will continue to be historically favorable.” – Lawrence Yun, Chief Economist, National Association of Realtors.

“We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels.” – Danielle Haille, Chief Economist, realtor.com

Mortgage rates are expected to remain low for the foreseeable future and millennials will continue forming households, keeping demand robust, even if income growth moderates. Despite the best intentions of home builders to provide more housing supply, the big short in housing supply will continue into 2021 and likely keep house price appreciation flying high.” – Mark Fleming, Chief Economist, First American

So, what are you waiting for? Whether buying, selling, or both, there’s no reason to hesitate about making your move in 2021!

Please let us know how we can help. Thanks…

Stay healthy. Stay optimistic.

Mari and Hank

How Technology Has Changed the Way We Buy Homes

In a year when we’ve learned to do so much remotely, buying or selling a home is no exception.

Rather than delaying purchases due to the virus crisis, buyers – working with their real estate professionals – have been turning to the Internet to do more than just a typical home search. In some cases, they have bought without even stepping foot inside the property.

In fact, the National Association of Realtors says that throughout the virus crisis, one in every 20 home buyers purchased a house sight-unseen.

Today, we and many other real estate professionals are using digital practices to help homebuyers and sellers virtually walk through the many steps in the process. While following all safety protocols, we work with buyers and sellers using virtual tours, 3D floor plans, high-quality photos, videos, online open houses, and more.

Virtual practices help buyers safely narrow down their top choices, so they don’t have to unnecessarily walk into more homes than they need to see, as the graph below shows.

This also means that sellers don’t need to open their doors over and over again, while their home is being marketed.

As we’ve written about before, we’ve successfully assisted remote buyers this year. We’ve also worked with homeowners, who were very concerned about safety procedures being followed. Once we agreed on guidelines and effective technologies, the process itself was actually surprisingly smooth.

So, if you’re ready to make your move — or still thinking about it — let’s connect at 508-568-8191 or msennott@todayrealestate.com to discuss the safe and effective options that are available to buy or sell a home.

We hope you’ll join us in supporting local merchants this holiday season.

Gift cards from restaurants and shops make great stocking stuffers, for example.

Please don’t forget local non profit organizations — especially food pantries. Many social service providers have been pushed to the limit assisting those who have been impacted by the virus crisis. People, who have never turned to these organizations before for help, now find that they need their assistance.

Anything you can do will be appreciated. Thanks.

Stay healthy Stay optimistic.

Mari and Hank

Will Working From Home Determine Your Next Move?

If you’ve been working from home this year, chances are you’ve been at it a little longer than you initially expected. Businesses all over the country have figured out how to operate remotely to keep their employees healthy, safe, and productive. (As well as imagining potential cost savings due to less need for office space.)

As the virus crisis continues, Americans are re-evaluating their homes; floorplans; locations; needs, and more. Some are thinking about more space, while others less. Whether you rent or own, if remote work is part of your future, you may be thinking about moving, especially while today’s mortgage rates are so low.

A recent study from Upwork notes:

“Anywhere from 14 to 23 million Americans are planning to move as a result of remote work.”

To put this into perspective, last year, 6 million homes were sold in the U.S. This means roughly 2 – 4X as many people are considering moving now, and there’s a direct connection to their ability to work from home.

Why Working from Home May Spark Your Next Move | MyKCM

The same study also notes while 45.3% of people are planning to stay within a 2-hour drive from their current location, 41.5% of the people who are citing working from home as their primary reason for making a move are willing to look for a home more than 4 hours away from where they currently live. In some cases, moving a little further away from your current location could mean getting more house for your money.

Cape Cod is a desired destination point for many, who are working remotely. We’ve met a number of people at Open Houses that we’ve hosted over the last few months, who are looking for more space both indoors and outdoors. This past weekend, about half of the visitors to a home we’re representing on a cul-de-sac, but close to highway access, were from over the bridges.

This has been a year of changes, and what you need in your home is now is quite possibly different than when you bought it. Let’s connect today to make sure you have expert guidance to help you find a Cape Cod home that fits your remote work needs.

Helping our clients make the best decisions has been our full time job for 21 years, not a part time hobby. Let’s get the conversation started at 508-568-8191 or msennott@todayrealestate.com. Talk to you soon….

Stay healthy. Stay optimistic.

Mari and Hank