El Dorado Hills & Folsom Real Estate BlogRecently posted or modified blog postshttps://www.thefriedrichteam.com/blog/Copyright TheFriedrichTeam.com2023-06-12T12:34:01-07:00tag:thefriedrichteam.com,2012-09-20:23475Blackstone Monthly Market UpdateJune 2023 Monthly Market Update
<br /><br /><a href="https://heyzine.com/flip-book/785314021e.html">Previous Market Updates (Last 12 Months)</a>2023-06-12T00:00:00-07:002023-06-12T12:34:01-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:27334What Sellers Need To Know About Appraisals
Sharing some important information about appraisals to prepare sellers.
What should sellers know about appraisals? It’s a common question we receive, and today, we want to share some insights with you. An appraisal is essentially an opinion of the value of your home. Appraisers compare your property to similar homes in the neighborhood, typically within a mile or two in suburban areas, and up to five or ten miles in rural areas.
In addition to location, appraisers also consider the condition of your home. It’s crucial to ensure that your property meets certain criteria before the appraisal. For example, they look for essential safety features like double-strapped water heaters, smoke detectors, and carbon monoxide detectors. Failing to meet these requirements could result in a re-inspection, causing delays and additional costs.
Appraisers make adjustments based on factors such as square footage, number of bedrooms and bathrooms, garage, pool, and other amenities when comparing your home to the surrounding properties. They use these data points to determine the condition and value of your home, which is then relayed to the lender.
<a class="pullquote" href="https://twitter.com/home/?status=Appraisers%20deeply%20consider%20the%20condition%20of%20your%20home.%20localhost:4000/what-sellers-need-to-know-about-appraisals.html%20via%40" target="_blank">“Appraisers deeply consider the condition of your home.”</a>
Another thing that you should know is what can happen when there is an appraisal gap. In some cases, sellers receive multiple offers on their property, and the buyer may choose to waive the appraisal. However, if there’s a gap between the appraised value and the agreed-upon price, the buyer will need to cover the difference out of pocket. For instance, if a property is listed at $500,000 and the buyer offers $540,000, but the appraisal comes in at $500,000, the buyer will need to bring an additional $40,000 to the table.
To ensure transparency, we, as agents, verify the buyer’s proof of funds, so we can be confident they can cover any potential gap. It’s crucial to avoid a situation where the buyer claims to have funds but can’t deliver on that promise. This verification process safeguards both parties involved.
In some unique cases or for probate estate matters, sellers may consider obtaining an appraisal before listing the property. However, in most situations, it’s not necessary, as it can be costly and time-consuming. Appraisals typically range from $500 to $1,000, depending on the property’s complexity.
Appraisals can be a confusing part of the process for many people, so don’t hesitate to ask us any questions that you have. Call or email us anytime; we are here to be your real estate resource. Also, if you’ve watched the video above till the end, we invite you to email us! As a token of our appreciation, we’ll be delighted to send you a Starbucks card if you’re among the first five respondents.2023-05-31T00:00:00-07:002023-06-06T17:13:01-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:27076Announcing the Next Chapter: Introducing Maic and Renee Friedrich
All about the transition of agents and the upcoming retirement party.
Today, we are very excited to introduce ourselves to all of you! Our names are Maic and Renee Friedrich, and we are taking over the database of the wonderful Anne Daily and Joe Herbert. They are getting the pleasure of retiring and are looking forward to traveling more, and we are honored that they entrusted all of their clients to us!
You should have received your invitation to Anne and Joe’s retirement party, but just in case you haven’t, <a href="https://www.eventbrite.com/e/anne-and-joes-retirement-party-tickets-601646800777">click here to see more information about it</a>. The awesome event will be on Saturday, June 17, at their lovely home in Fair Oaks. We want Anne and Joe to feel truly celebrated, and we can’t wait to meet all of you in person!
One thing you should know about our service is that we work hard to keep you updated on the market. We regularly send out videos like this to keep you informed on valuable information, and we’ve added you to that database. If you don’t want to receive these updates for any reason, you can unsubscribe—no hard feelings.
Overall, just know that we look forward to serving you and connecting with you soon, especially at the upcoming retirement party! Please click the link above to RSVP. In the meantime, if you have any questions, don’t hesitate to call us at (916) 907-8060 or send an email to <a href="mailto:sold@thefriedrichteam.com">sold@thefriedrichteam.com</a>. We look forward to talking with you.2023-05-22T00:00:00-07:002023-05-25T17:50:15-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:27075Empowering Homebuyers: Exploring the Different Loan Programs
These are the many loan programs that are available to buyers today.
What types of loans and loan programs are available? Recently, we’ve experienced the short-lived Dream For All program, an incredibly hyped loan program that ended up being available for less than a few weeks. We made a video about it, and within 24 hours after posting it on Youtube, the program was no longer available. Its abrupt end has led many to ask, “What other options do I have?”
One option you have are traditional loan programs. These include conventional loans, Federal Housing Administration (FHA) loans, and Veterans Affairs (VA) loans; for those living in rural areas, you have the USDA programs. Both VA and USDA offer 100% financing options.
For first-time buyers with limited savings, there are numerous down payment assistance programs available. These programs can facilitate homeownership with very little down payment, and in some instances, no down payment at all.
<a class="pullquote" href="https://twitter.com/home/?status=There%20are%20numerous%20down%20payment%20assistance%20programs%20available.%20localhost:4000/empowering-homebuyers-exploring-the-different-loan-programs.html%20via%40" target="_blank">“There are numerous down payment assistance programs available.”</a>
Certain cities and municipalities also offer low-income housing, although these are quite hard to qualify for and don’t come up often. For move-up buyers, the decision often lies between putting down more to avoid jumbo loan territory or opting for a jumbo loan. Interestingly, we often find that jumbo financing, typically for loan amounts of $726,000 and above, sometimes offers better rates than even the conventional lower loan amounts.
If you are considering whether you can afford a home, whether to transition from renting, or if you should leave a 4% mortgage for a 6% one because you’re unhappy with your current home, we’re here to help. Regardless of your reasons for making a move, whether it’s upgrading or adding a bedroom, we’re here to answer all your questions; just call or email us anytime.2023-05-16T00:00:00-07:002023-05-25T17:47:58-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:26583Should You Tank Your Credit for a Better Mortgage Deal? Here's What the Experts Say
An important disclaimer about the trend of tanking your credit score.
Today, we’re here to address a concerning question that has been circulating: “Should I purposely lower my credit score to get better pricing on a mortgage?” This is a loaded question, and we’d like to clarify some facts about recent changes in guidelines and rules set by Fannie Mae and Freddie Mac.
In short, the answer is no, you should not tank your credit. Yes, Fannie Mae and Freddie Mac aim to make homeownership more accessible to people across the US by improving pricing for those with lower credit scores. However, while this may seem like a disadvantage to those with higher credit scores, there is still a significant benefit to having good credit. The pricing difference between great credit scores (740 and above) and okay credit scores (640 and below) has simply become smaller.
<a class="pullquote" href="https://twitter.com/home/?status=Good%20credit%20still%20gets%20rewarded.%20localhost:4000/should-you-tank-your-credit-for-a-better-mortgage-deal-here-s-what-the-experts-say.html%20via%40" target="_blank">“Good credit still gets rewarded.”</a>
It’s important to note that these changes only affect purchase loans, not refinances, except in cases where cash is not being pulled out. Also, it’s worth mentioning that Fannie Mae and Freddie Mac want to promote homeownership, so if you already own a home, the pricing will not be as favorable as it is for first-time buyers. Therefore, we advise against purposely lowering your credit score since it will not significantly improve pricing, and good credit is still beneficial in the long run.
<a href="https://housingbrief.com/article/6442fb30ea38958fc0eb89fc/63dc0ab80422cb6ea94b7d25?sr=true">Check out this link if you’d like to learn more</a>. If you have any questions about buying, refinancing, or investing, we are happy to help. Just call or email us. We look forward to hearing from you!2023-05-03T00:00:00-07:002023-05-03T10:54:35-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:26411Moving Out of State? We Can Connect You With an Amazing Agent
Here’s what you need to know about our agent referral program.
Today’s question is, “I’m moving out of the area, and I want a great agent like you guys. What should I do?” This is a loaded question but a great one.
Recently, we’ve had a couple of clients and friends looking to buy investment properties or move out of the area. We’ve received calls from frustrated clients who are not being listened to or experiencing other frustrating situations. We typically ask permission to connect these clients with agents we know personally and have vetted. We attend a lot of events and network with the best agents across the country who are quality and learning-based.
<a class="pullquote" href="https://twitter.com/home/?status=We%20have%20great%20connections%20all%20over%20the%20country.%20localhost:4000/moving-out-of-state-we-can-connect-you-with-an-amazing-agent.html%20via%40" target="_blank">“We have great connections all over the country.”</a>
Chances are that whatever area you’re moving to, we know an agent who can help you out. If we don’t, we know what questions to ask to find the right agent for you. We want to make sure you have an amazing experience no matter where you’re looking to buy and that you receive the same service you’re used to from us.
When we connect you with an agent, we vet them to ensure they can take care of you just like we do. We make sure that the personality of the agent is a good fit for you and similar to ours if you’re used to working with us.
If you’re thinking of moving out of state or buying an investment property, give us a call first. We can get you connected with the right agent who will provide you with the white glove service you’re used to from us. We look forward to hearing from you!2023-04-20T00:00:00-07:002023-04-26T10:46:55-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:262223 Things Inspectors Check in a Home Inspection
Three of the biggest things inspectors check during home inspections.
Do you know what a home inspector looks for when they visit a property? Inspectors will investigate every nook and cranny from the foundation to the roof to find anything that might affect the property’s value. If possible, it’s best to fix issues before listing your home to avoid them becoming a negotiation tactic for a potential buyer. To help you prepare, here are the top three things inspectors will look for:
1. The mechanical systems. This includes the big items like your HVAC and water heater. In our experience, inspectors will look at a lot of different things to do with your water heater, including whether or not it is earthquake-proof since we’re in California. Then with the HVAC, you need to make sure to replace your filter and clean the return vents before showing the house because that can be a big red flag. If a potential buyer or their agent sees that you have neglected your HVAC, they’ll wonder what else you have failed to maintain.
<a class="pullquote" href="https://twitter.com/home/?status=It%E2%80%99s%20best%20to%20fix%20issues%20before%20listing%20your%20home%20to%20create%20a%20smoother%20transaction.%20localhost:4000/3-things-inspectors-check-in-a-home-inspection.html%20via%40" target="_blank">“It’s best to fix issues before listing your home to create a smoother transaction.”</a>
2. The roof. Inspectors will look for things like slipping or cracked tiles, metal sheeting sticking out, dry rot, and more. Most of the time, inspectors will find something wrong with the roof, and they’ll often defer to a roofing expert, so be prepared for that. They’ll also look to see if there’s debris in the gutters, which is an easy thing to fix beforehand.
3. An anti-siphon device. This is one of our biggest pet peeves because it’s only $2 and such an easy fix. This item connects to your hose and is considered necessary because it can stop water from going back into the house, so inspectors will call this out. When it comes up on the inspection report, it sounds very scary, but it’s an affordable and simple fix.
There are, of course, many other things we could list, but those are the main ones to pay attention to. If you’re thinking about selling your house, reach out to us, as part of our job is to point those things out to you. We can help you avoid major issues, so call or email us anytime.2023-04-06T00:00:00-07:002023-04-17T18:07:10-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:262214 Ways Buying an Imperfect Home Could Benefit You
Sharing four reasons why buying an imperfect home could be great.
Is HGTV ruining real estate for buyers? What we mean by that is, should you consider buying a house that isn’t as pretty and HGTV-ready? Many buyers let the small details hold them back, like not enjoying the wall color, but the truth is that paint is cheap and easy to change!
Features like paint, flooring, and countertops are easy to fix and can add a lot of value to your home, so don’t let them stop you from choosing a certain house. To help you understand this, here are four reasons why it might benefit you to choose the “uglier” house:
1. You will face less competition. If you think the house is ugly, most buyers will likely agree with you, and they might let that stop them from buying as you would’ve. As long as the house is currently livable, if you take advantage of this opportunity with less competition, you’ll have the chance to make the house your own.
<a class="pullquote" href="https://twitter.com/home/?status=There%20are%20many%20reasons%20to%20choose%20a%20house%20that%20needs%20a%20little%20more%20work.%20localhost:4000/4-ways-buying-an-imperfect-home-could-benefit-you.html%20via%40" target="_blank">“There are many reasons to choose a house that needs a little more work.”</a>
2. You can build up your sweat equity. Rather than writing a big check for the house that’s already perfect, you can put in a little work and time to make it your own. Then you get to choose which upgrades work with your style preferences instead of having to settle with what the previous owner chose.
3. There are tax benefits. We are not tax professionals, so we can’t give you tax advice, but there is an advantage to paying taxes on a cheaper home instead of a more expensive one. Overall, you’ll spend less money.
4. You can work on upgrades and repairs the way you want to. Previous owners may have chosen a quick fix that’s not sustainable or made things look a way you wouldn’t want them to. When you do things yourself, you can know they’re done correctly.
There are many reasons to choose a house that needs a little more work, these are just a few of them. If you’re considering buying a house, reach out to us, as we would love to talk you through more reasons and help you buy the right house for you. Call or email us anytime—we would love to hear from you.2023-03-23T00:00:00-07:002023-04-17T18:05:52-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:25571How To Sell a Home That Needs Repairs
Three things you should do to successfully sell a fixer-upper.
If you’re thinking about selling your house, but it’s not quite ready to go on the market, what should you do? The answer to that question depends on the state of your house. Is it in disrepair, or does it just need an update? Are you looking to sell quickly, or are you willing to wait? There are a few options available to you, and each one has its pros and cons. Here are three things you can do when selling a fixer-upper:
1. Sell your house to an investor. They will make a cash offer and do the necessary repairs and renovations. This option is ideal if you’re looking to sell quickly, but keep in mind that you may not get the full market value of your house. Investors need to make a profit, so the offer they make will likely be lower than what you could get if you put your house on the market, which is why only a few people choose this route.
<a class="pullquote" href="https://twitter.com/home/?status=If%20you%20can%27t%20recoup%20your%20investment,%20it%20may%20not%20make%20sense%20to%20go%20through%20with%20the%20updates.%20localhost:4000/how-to-sell-a-home-that-needs-repairs.html%20via%40" target="_blank">“If you can’t recoup your investment, it may not make sense to go through with the updates.”</a>
2. Price accordingly and sell as is. You could try pricing your house accordingly and selling it as-is to a retail buyer. This option is best if your house is livable but needs some updates. You may not get the full market value of your house, but you’ll likely get more than you would from an investor.
3. Make the necessary repairs and updates. This option is best if you’re willing to invest the time and money to make your house more attractive to buyers. Keep in mind that you’ll need to make efficient changes if you want to recoup your investment. Painting your cabinets with neutral colors and changing your flooring can be cost-effective changes that can make a big difference in the look and feel of your house.
You’ll need to consider the cost of repairs and updates, as well as the potential upside in the sale price. If you can’t recoup your investment, it may not make sense to go through with the updates. We can help you choose the right upgrades to make and analyze the numbers for a great return on your investment.
If you’re not sure which option is best for you or need help with your real estate goals, call or email us. We’re here to help.2023-03-07T01:00:00-07:002023-03-17T16:30:03-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:25306The Pros and Cons of Renting Out Your Home
Should you sell your primary residence or turn it into a rental property?
If you’ve been paying attention to the news, you know that inflation is high and the cost of living is increasing almost everywhere. At the same time, home values are increasing, and property taxes are rising with them. If you want to make a wise real estate decision in this environment, what should you do?
There are two main ways for homeowners to get value out of their current properties. First, you can sell the home and get your equity out of it. However, a less conventional strategy is becoming more popular in our area: converting your primary residence into a rental.
Many homeowners bought their properties when interest rates were low. Now that rates are higher, many of them are reluctant to let go of their fantastic mortgages. If you’re in this position, renting out your home could be a perfect solution. You won’t have to let go of your old mortgage, and you can continue to build equity.
How do you do that? First, you need to speak with your lender if you haven’t paid off your mortgage. You typically can’t use a primary residence loan for investment purposes, so you may have to change the terms of your mortgage or wait until it is paid in full. Also, you must have lived in your home for at least 12 months before converting it into a rental. Finally, check local laws and HOA regulations to make sure it’s legal for you to make this switch.
<a class="pullquote" href="https://twitter.com/home/?status=Converting%20your%20home%20into%20a%20rental%20could%20make%20all%20of%20your%20rental%20income%20tax-free.%20localhost:4000/the-pros-and-cons-of-renting-out-your-home.html%20via%40" target="_blank">“Converting your home into a rental could make all of your rental income tax-free.”</a>
There are some fantastic pros to converting your primary residence into a rental. For example, you’ll have a steady stream of passive income you can use to invest in other areas. Rents have been rising all over the country, so you might be able to make more money from your rental than you think.
There are also many tax benefits to rentals. Unlike primary residences, there are a lot of deductions that rentals may qualify for, including advertising, repairs, cleaning, and maintenance. However, the most important tax benefit is the depreciation expense. This is an exemption for general wear and tear, and it could make all of your rental income tax-free.
Unfortunately, there are some cons to turning your primary residence into a rental. Maintaining a rental can be a full-time job unless you pay a property management company to do it for you. Also, you forfeit the ability to exempt yourself from capital gain taxes when you eventually sell. You can get around this using a 1031 exchange, but you’d have to use the funds to purchase another investment property, so your options are limited.
Personally, we’ve been buying and selling real estate together for 25 years, and our biggest regrets are the two homes that we sold instead of keeping. Keeping your old home and renting it out is definitely not for everyone, but if you can make it work, the rewards are almost endless.
The truth is that whether or not it makes sense to convert your primary residence into a rental depends on your situation. If you’d like to discuss the topic further, don’t hesitate to call, email, or <a href="https://calendly.com/reneefr/30-minute-strategy-session-with-renee">click this calendly link</a>. I’d love to talk things over with you.2023-02-21T01:00:00-07:002023-03-06T12:46:05-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:24488Why Buying Is Always the Superior Choice
Whose mortgage do you want to be paying, anyway?
“Should you keep renting, or should you finally buy?” It may seem like a loaded question. After all, we’re in real estate and want you to buy. However, we also want what is best for you and your situation.
So the No. 1 thing we always say when confronted with this question is: when you are paying for housing, whose mortgage do you want to be paying for, yours or your landlord’s? The fact is that, no matter what, you’re going to be paying on a mortgage. The only question is whose you’re paying. You might be leery of paying a rate as high as 6.5% or 7%, but the truth is that when you’re renting, you’re basically paying 100% interest.
<a class="pullquote" href="https://twitter.com/home/?status=You%20could%20be%20building%20wealth%20for%20yourself%20rather%20than%20some%20landlord.%20localhost:4000/why-buying-is-always-the-superior-choice.html%20via%40" target="_blank">“You could be building wealth for yourself rather than some landlord.”</a>
The other concern is that interest rates have made the payments on a home unaffordable. Well, we crunched the numbers, and this is what we found. Back in April, with those super low rates of 4.5%, people had to overbid by a lot to get a home. That means they were paying a much higher principal than they would today. However, in this market, sellers are coming down from their list price, so even if you were to pay a higher interest rate, you’re getting a break on the purchase price. When you factor in everything, at the end of the day, your payment isn’t all that much higher. Using a $450,000 list price and some very reasonable assumptions, we found that the difference was only around $15. That’s not even considering the difference in the down payment.
That’s why we feel it always makes more sense for someone to buy. Remember that if you’re paying on a mortgage, it might as well be your own. You could be building wealth for yourself rather than some landlord.
If you want to discuss what buying a home would look like for you, then give us a call. We’re here to be a resource for you.2023-02-01T01:00:00-07:002023-02-01T17:55:43-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:24268What Really Happened in 2022's Housing Market
Wrapping up the 2022 housing market and seeing how it affects us today.
How did the market end up in 2022? As we enter 2023, it seems as though many people are still feeling a bit of a 2022 hangover. To help with this, we thought we’d share some statistics to wrap up the year.
Compared to December 2021, the sales prices went down 4.5%. With interest rates rising, prices have gone down to keep things affordable. Also, the number of sold transactions went down 46%. The second half of 2022 certainly had a big falloff in sales, but it’s tough to compare because 2020 and 2021 were so abnormal.
Inventory went up in 2022, which is a big difference between today’s market and that of 2008. Back then, inventory went from three months to 12 months practically overnight, so things are looking better today. As 2022 ended, our market had about three months of inventory, which is still technically a seller’s market, even though many things are in favor of buyers today.
<a class="pullquote" href="https://twitter.com/home/?status=There%20are%20great%20opportunities%20for%20both%20buyers%20and%20sellers%20in%20today%E2%80%99s%20market.%20localhost:4000/what-really-happened-in-2022-s-housing-market.html%20via%40" target="_blank">“There are great opportunities for both buyers and sellers in today’s market.”</a>
If you are thinking about buying, don’t let the interest rates concern you. They’re still affordable, and you might as well secure the house you want to live in. Then if interest rates go down, you can refinance, which some lenders are starting to offer for free now, which is very exciting.
During the pandemic, many buyers were settling for houses they didn’t truly want just to make sure they got something. Therefore, many of those people are starting to enter the market again to try to find something better suited to them. If that’s you, know that we can help you get into your dream home!
Overall, there are great opportunities for both buyers and sellers in today’s market. <a href="https://pdfhost.io/v/YI9TuPj7s_TrendVisionReport">Click here to view the market stats we discussed</a>. If you want our help running numbers for your specific situation, please reach out! You can call or email us anytime, and we would love to help you.2023-01-18T01:00:00-07:002023-01-19T18:05:20-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:23697A Guide for Living in a For-Sale Home
Six ways to help make selling your home simpler and more efficient.
How can you continue to live in your house once you put it on the market? Your home has always been your sanctuary, your one true personal space, but now it’s listed for sale and will soon get a ton of foot traffic. This can get very stressful and make it difficult to continue living your normal life in your house, especially if you have young children. So here are six tips to help you continue living your life in your for-sale home and keep things a bit less hectic:
1. Start packing now. Packing and storing boxes in the basement or garage is completely acceptable. We want to open up as much space as possible; we’re emphasizing floor space and square footage, so the larger it feels, the more money you’ll get.
2. Sell, donate, or throw it away. While you’re packing, try to get rid of things you don’t need. My recommendation is if you haven’t touched an item in a year and it’s not an heirloom or memory, it’s time to part with it. Try to at least donate items that are still in decent condition.
3. Get squeaky clean. A clean, cared-for house can net you $5,000 to $10,000 more for your sale. Shoot for five-star hotel perfection when cleaning, and focus particularly on bathrooms, the kitchen, windows, and floors. Make it sparkle!
<a class="pullquote" href="https://twitter.com/home/?status=Packing%20and%20storing%20boxes%20in%20the%20basement%20or%20garage%20is%20completely%20acceptable.%20localhost:4000/a-guide-for-living-in-a-for-sale-home.html%20via%40" target="_blank">“Packing and storing boxes in the basement or garage is completely acceptable.”</a>
4. Maintain privacy and safety. Buyers are going to be looking through closets and other areas people wouldn’t typically see. Ensure there’s nothing valuable or personal anywhere that they could find. If you’re unsure about an item, be on the safe side and lock it away somewhere secure (this includes medications).
5. Involve your kids. Nothing is better than having your kids be part of the selling process. The easiest way to get them involved is through games or a reward system so they’ll help you clean the house and prepare it for showings. You won’t believe how motivated kids can get when there’s something fun tied to a chore!
6. Take a small vacation. Being out of town for the first weekend while we’re doing showings for your house makes it easy for us to have access and get lots of buyers through your house. You can relax knowing your home is getting lots of exposure, and you won’t have to be constantly in and out of the house on that first weekend.
If you’d like to dig deeper into the tips above or have any questions about real estate in general, please shoot us an email or give us a call. We would love to help in any way we can.2022-12-21T01:00:00-07:002022-12-23T10:10:43-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:23449Happy Holidays From Us
From our team to your family, we want to wish you a happy holiday season.
Happy holidays to you!
The holiday season has officially arrived. We hope you enjoy this wonderful time of year and make some fantastic memories.
We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us and supporting our business.
This may be a busy time of year, but we are always here to help you and answer any questions you may have. Give us a call or reply to this email; we’d love to help you.
In case we don’t hear from you until 2023, have a happy New Year!2022-12-06T01:00:00-07:002022-12-09T10:36:14-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:23232Our Exciting New YouTube Channel
Our new YouTube channel will help people relocate to Sacramento.
Do you have any friends that are thinking about relocating to the Sacramento region? If so, we would love to help them with that! That’s why we created our brand-new YouTube channel that <a href="https://www.youtube.com/@livinginsacramento916">you can access by clicking here</a>. In this channel, we will be talking about how to relocate to our area, including the great suburbs to consider.
We are asking for your help—if you would be willing, please subscribe to this new channel. If you’re a real estate agent that’s not from our area, feel free to watch our videos too or show your contacts the channel. Know that we would be happy to help them move.
This is going to be a great resource for anyone who is interested in our area. If you have any questions, call or email us, we would love to help you. And thank you for considering subscribing to our new channel!2022-11-22T01:00:00-07:002022-11-29T11:10:42-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:23054What To Know About This Declining Market
What sellers should be aware of in today’s declining market.
What should a seller expect in this declining market? If you’re thinking about selling your home, there are a few things you should know about today’s market. There are tools and tricks we can use to help you sell, so you should make yourself aware of your options.
The most important thing to know in this climate is that it’s crucial to price your home correctly from the start. Normally we would look at comparables from three months ago, but in today’s market, we just have to look at what’s pending right now since things have changed too much in the last few months.
We were in this business in 2008 when the market crashed, and we learned then that it is imperative to price ahead of the market. Pricing a home for a little less than your neighbor’s might be hard at first, but it could be the difference between selling your home and having to make price reductions while stuck on the market.
<a class="pullquote" href="https://twitter.com/home/?status=There%20are%20tools%20and%20tricks%20we%20can%20use%20to%20help%20you%20sell,%20so%20you%20should%20make%20yourself%20aware%20of%20your%20options.%20localhost:4000/what-to-know-about-this-declining-market.html%20via%40" target="_blank">“There are tools and tricks we can use to help you sell, so you should make yourself aware of your options.”</a>
Another thing that sellers should know about is that rate buydowns are becoming more and more common, and they save the seller’s equity. A buydown is when the seller offers to buy down the buyer’s interest rate, whether that be temporarily or permanently. This often ends up saving the buyer and the seller more than a price reduction would. Plus, if the interest rate does go down soon and the buyer refinances, the buydown gets credited toward the principal. With a buydown, the buyer can ease their way into a higher payment, which is especially nice for first-time homebuyers.
Along with offering a buydown, another thing that can set sellers apart in today’s market is getting the home inspection done early. This helps the seller be better prepared and helps the buyer feel more comfortable, so it’s a win-win! Plus, this oftentimes shortens the contingency period, so the seller will know quickly if they truly have a deal or not.
If you have any questions about this stuff or want to know more from a buyer’s perspective, call or text us at (916) 907-8060. We’re here to help you!2022-11-09T01:00:00-07:002022-11-16T12:55:58-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:2278211 Reasons You Should Sell During the Holidays
Why we believe you should list your house during the holiday season
The holiday season is officially upon us - can you believe it? As we get closer to those winter months, we wanted to address a question that we get a lot this time of year: Should I list my home during the holidays? One question we have in response to that is: Why not? We have a list of 11 reasons why we think it’s a good idea to list during this season, and we use it every year. <a href="https://pdfhost.io/v/tUcLZSLxW_11_TOP_Reasons_why_sellers_shoudl_sell_during_the_holidays">View the full list by clicking here</a>. In the meantime, here are six of the reasons:
1. You have the opportunity to be a non-contingent buyer. If you sell now, you can take advantage of the spring when there’s more inventory. Plus, you’ll have less competition because sellers will be more attracted to a buyer who doesn’t need to make the deal contingent on the sale of their current home.
2. Buyers have more time to look for a home. During the holiday season, people have more time off work, so they have more time to look at houses. This means buyers have more time for you and tend to be a little more serious.
3. You can have more say in when you show your house. This season does tend to get busy for people with friends and family coming into town and things like that, so we can limit showings based on your calendar.
<a class="pullquote" href="https://twitter.com/home/?status=This%20time%20will%20help%20you%20find%20motivated%20and%20serious%20buyers.%20localhost:4000/11-reasons-you-should-sell-during-the-holidays.html%20via%40" target="_blank">“This time will help you find motivated and serious buyers.”</a>
4. Homes will feel more warm and cozy. During the holiday season, homes tend to smell nice with holiday candles, and they feel warm in contrast to the winter weather. These kinds of things will make your home more inviting and help your buyers imagine celebrating their holidays in the house.
5. Many people need to be in their new homes by January. Many people looking in November and December are doing so because they have to start a new job at the beginning of the year, so this will also mean getting more serious buyers.
6. Buyers may be more time-conscious because of their taxes. Needing to close by the end of the tax year will motivate buyers, and motivated buyers are exactly what you want.
These are just some of the many reasons why we believe the holiday season is a great time to sell your home. Again, <a href="https://pdfhost.io/v/tUcLZSLxW_11_TOP_Reasons_why_sellers_shoudl_sell_during_the_holidays">if you’d like to see the full list of reasons, click here</a>. If you have any questions or would like help getting the listing process started with your home, call or email us anytime! We would love to hear from you.2022-10-27T00:00:00-07:002022-11-16T17:37:06-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:22458Is Winter the Right Time To Buy?
Is winter here for the economy? Here’s why you still might buy.
If winter is coming, should people be buying real estate? Our opinion is that we are in the middle of “winter”, and the first “blizzard” of rising interest rates and a declining economy has already hit. What we know is that just because it’s winter doesn’t mean it’s all doom and gloom. There will be nicer parts of the winter, and we’re already seeing a little bit of recovery. Through this up and down, there are three questions you should ask yourself to determine if now is the right time for you to be buying real estate:
1. Can I afford the home? We do this kind of analysis for our clients all of the time. Can you afford the down payment, closing costs, and monthly payments? If the answer to all three questions is “yes,” then you should buy the home. Consider that if you continue to rent, your payments are likely to go up by at least 3% to 5% due to inflation. If you buy, you’ll be locking in your payments for the foreseeable future.
<a class="pullquote" href="https://twitter.com/home/?status=Property%20continues%20to%20be%20a%20safe%20investment%20for%20troubling%20times.%20localhost:4000/is-winter-the-right-time-to-buy.html%20via%40" target="_blank">“Property continues to be a safe investment for troubling times.”</a>
2. How long will I own the home? If you’re thinking about purchasing real estate, you should be looking at a five- to seven-year investment, or possibly even longer. If you’re looking long term, real estate will continue to be a safe investment. We like to say: “Buy real estate and wait, don’t wait to buy real estate.”
3. Am I secure in my career? This goes back to the question of affordability. You want to ensure that you will continue to be employable in your industry. If you love the house and know you’re going to continue to be able to afford the payment, then now is the time to buy.
Finally, something to consider as our economy continues to look like a winter setting is that real estate tends to do fairly well in recessionary times. Real property holds its value through inflation and recession, so it remains a safe investment for troubling times.
If you have any questions about whether or not the time is right for you to buy or sell, or if you have questions about real estate in general, that’s what we’re here for. Give us a call or send an email. We love strategizing with our clients and look forward to catching up.2022-10-13T00:00:00-07:002022-10-13T12:38:33-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:22368Homebuyer Assistance Programs
There are more options available these days to help buyers.
Did you know there are many different ways to buy a house? We’re seeing a lot of interesting programs come out right now, so we wanted to reach out and tell you about some of them.
While things are slowing down slightly, there’s definitely still competition out there. However, we’ve got some cash-buyer options that you can use, as well as down payment assistance. Things like this were really tough to make work with sellers recently, but now things have loosened up a little bit. For the most part, sellers are more open to looking at stuff like that.
<a class="pullquote" href="https://twitter.com/home/?status=There%20are%20a%20lot%20of%20options%20out%20there%20for%20buyers%20these%20days.%20localhost:4000/homebuyer-assistance-programs.html%20via%40" target="_blank">“There are a lot of options out there for buyers these days.”</a>
If those options don’t work for you, we still have cash programs, which are basically consumer-friendly bridge loans. The terms are much more reasonable than traditional bridge loans. This type of loan bridges you from one property to the other. If you’re interested in finding out more about how we can get you to look like a cash buyer even if you don’t have the cash in the bank, just give us a call and we’d love to talk you through it and see if it’s an option for you.
There are a lot of options out there for buyers these days. If you know anyone who’s thinking about buying their first home or their tenth one, we’re here for you. If you have any real estate questions, call or email us anytime. We look forward to hearing from you!2022-09-29T00:00:00-07:002022-10-10T13:39:28-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:22166How To Make Your Home More Efficient
Here are a few simple upgrades to make your home more energy efficient.
Are you thinking about doing some energy upgrades? A good place to start is by getting <a href="https://www.energy.ca.gov/programs-and-topics/programs/home-energy-rating-system-hers-program">an energy assessment of your home, also known as a HERS rating</a>. Most people assume solar panels are the only way to make your home energy efficient, but that isn’t the case.
One way to make your home more power-saving is to upgrade your windows. Good windows will improve your insulation and help you regulate the temperature of your home, so you won’t have to rely on air conditioning or heating as much. We recently upgraded our windows, and our home stays cooler for much longer.
If you want to improve your insulation in other ways, you can have an energy inspection done on your home. This will tell you where your leaks are. Once you patch them up, you’ll be surprised how much more pleasant your living area is. Upgrading your roof is another easy way to improve your insulation.
<a class="pullquote" href="https://twitter.com/home/?status=Consult%20an%20expert%20before%20deciding%20on%20your%20financing.%20localhost:4000/how-to-make-your-home-more-efficient.html%20via%40" target="_blank">“Consult an expert before deciding on your financing.”</a>
Of course, you have to pay for these upgrades somehow. Fortunately, you have options. When we upgraded our home, we used a home equity line of credit. You can also take out a pace loan, although it comes with some strings attached. For example, you can’t take out an FHA loan if you haven’t paid off your pace loan. Before you sign off on one of these, consult an expert to see if this option is right for you.
No matter what upgrades you’re thinking about making, please call or email us. We’d love to guide you through the process and put you in touch with great contractors. We look forward to hearing from you!2022-09-16T00:00:00-07:002022-09-27T10:56:39-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21833Why You Should Consider Working In Real Estate
Are you looking for a new job? Here’s why real estate might be for you.
Are you looking for a career change? A lot of our friends and clients have been taking part in this “Great Resignation.” We find it inspiring that so many people are brave enough to find something different that they’re passionate about! When you do what you love, you will be much more successful.
Have you thought about a career in real estate? We have helped many agents transition into real estate, and it has brought all of us lots of joy. Yes, there are hard parts to every job, but we have tips and tools to help you be successful. One thing we’ve found is that people who are good at following systems find the transition easier. Plus, one perk to real estate is that it can be a career for people of all ages!
Starting is inexpensive, but the potential earnings are huge, and it is a very fulfilling career. If you are interested or just have questions, call or email us anytime. We’d love to chat with you.2022-09-01T00:00:00-07:002022-09-07T14:39:50-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21405How To Find The Perfect Agent
Here’s what you need to know when picking the right agent for you.
“What should I look for in a real estate agent?” We receive this question all the time. The truth is that a good agent can be the difference between getting a fantastic deal and leaving money on the table, so picking the right one is crucial. Today we’ll cover a few qualities every fantastic agent should have.
The two most important qualities to look for in an agent are experience and reputation. Experience is pretty self-explanatory; if you want someone to sell your home for top dollar, you should hire someone with a proven track record of doing so.
<a class="pullquote" href="https://twitter.com/home/?status=People%20are%20more%20likely%20to%20work%20with%20those%20that%20they%E2%80%99ve%20worked%20well%20with%20in%20the%20past.%20localhost:4000/how-to-find-the-perfect-agent.html%20via%40" target="_blank">“People are more likely to work with those that they’ve worked well with in the past.”</a>
However, reputation might be equally important. Speaking for ourselves, we are more likely to take a buyer’s offer more seriously if we know that their agent is a likable professional. People are more likely to work with those that they’ve worked well with in the past.
These two factors are crucial, but they aren’t all that matters. Knowing the local numbers is important as well. For example, if homes in your area are selling for an average of 105% of their list prices, your agent should let you know that an offer that’s only 95% of the list price has no chance.
A great agent should also know what’s happening in your area. By looking at recently sold homes and the pending market, your agent should let you know what you need to do to sell your home for a certain price. This knowledge is invaluable in a shifting market.
Finally, the team you work with should be a good cultural and personal fit. We’re friends with a lot of our past clients because we love people. We tend to work with those we know, like, and trust, and we’d love to get to know you better.
If you have questions about today’s topic or anything else, please call or email us. We are always willing to help.2022-08-12T16:54:00-07:002022-08-12T16:56:20-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21089Real Market Updates for Buyers and Sellers
A true market update and our best advice for navigating it.
When it comes to the housing market, are you worried that doomsday is coming? Lately, we have been getting the same question over and over, and that is: “Is the market crashing?” The media has taken advantage of rising interest rates and decreasing sales. People feel like the sky is falling, but we are here to ease your concerns. There are actually some good things happening in the market right now!
For example, in the first half of June, 56% of sold homes had multiple offers. Then in the last two weeks, this number went down to 42%. There’s less competition now, which is great news for buyers. This should even things out and send us to a more neutral, or normal, market than this crazy seller’s market we have seen the last couple of years. This isn’t a market crash; it’s just becoming more balanced.
In addition, things aren’t so frantic anymore. We are seeing sellers take the asking price, or less than asking, which is so refreshing. Plus, sellers are looking at offers with contingencies! This will help people find the home that they truly want to be in. Things seem to be moving toward a market that is a win-win for both sides.
<a class="pullquote" href="https://twitter.com/home/?status=We%20aren%E2%80%99t%20headed%20for%20a%20market%20crash,%20just%20a%20more%20neutral%20one.%20localhost:4000/real-market-updates-for-buyers-and-sellers.html%20via%40" target="_blank">“We aren’t headed for a market crash, just a more neutral one.”</a>
The other thing that people are asking a lot is what is going on with interest rates? We have seen them jump so much, so fast, and that has caused a pause in the market. It has buyers reevaluating what they can afford.
Recently, one of our lending partners gave some great advice: marry the house, date the interest rate. That means if you find the right home and the interest rate is slightly higher than you would’ve hoped, that doesn’t have to be your forever interest rate. We can get creative with different types of loans because there are many different options available. Plus, there is some talk that we might see interest rates soften in 10 to 12 years.
However, there is no guarantee that interest rates are going to go down, so our best advice is to get in the house now and secure the interest rate that you know you can get today. You don’t want to wait and risk interest rates going up and wishing you had acted before. Take the guesswork out.
We do work with a lot of first-time home buyers, so one thing we do want to note is that renting is 100% interest. If you want to have 6% interest instead of 100%, give us a call! The same goes with any other real estate questions or market concerns — call us anytime. We would love to help!
2022-07-26T00:00:00-07:002022-08-01T13:33:38-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21156Does it feel like the media is trying to scare you?
Don't let negative reports scare you away from purchasing a home.
Keeping yourself updated on the latest news in the market is great, but should your decision to buy or sell be based on what you see and hear from the media? It’s a loaded question, and here’s our take on this topic.
Working in this industry means we constantly see data that reflects the current market, and a lot of the time, the media is two to six months behind with their reporting. The sad truth is that bad news sells. Headlines such as “Interest rates are increasing” and “Home prices are dropping” are both controversial and alarming, and the media will always look for these kinds of headlines because it captures people’s attention.
<a class="pullquote" href="https://twitter.com/home/?status=The%20media%20can%20be%20two%20to%20six%20months%20behind%20with%20their%20reporting.%20localhost:4000/dont-listen-to-alarming-real-estate-news.html%20via%40" target="_blank">“The media can be two to six months behind with their reporting.”</a>
To set the record straight, home prices haven’t dropped significantly in the Greater Sacramento area since interest rates have gone up. If you’re planning to buy or sell a home now, don’t listen to the news and take a look at your personal situation instead. Decide whether it makes more sense to pay the landlord’s mortgage or your own. Rents can go up every year, but if you purchase a house now, you lock in your monthly payment.
We know a lot of strategies that can help you buy your dream home at the payment that you want. If you’d like to have a conversation about this or want to ask any real estate questions, don’t hesitate to call or email us. We’ll be happy to help!2022-07-12T00:00:00-07:002022-08-01T13:32:06-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21155Why iBuyers Might Not Be Worth It
Explaining iBuyers and the pros and cons of working with them.
What’s an iBuyer? You might’ve heard this term thrown around, but what does it actually mean? In short, an iBuyer is an institutional buyer. It’s usually an investor looking to buy your home at a discounted price and either flip it or rent it out for a time. There are lots of different iBuyers out there: Offerpad, Opendoor, and even Zillow was an iBuyer for a while.
How does selling to an iBuyer work? We went through this process with a seller recently, so it’s fresh in our minds. We went to one of the investors we work with, and they offered the seller about $60,000 (or about 30%) less than the fair market value for his home because they have to make money. They have overhead and holding costs, and they still need to turn a profit because they’re a business.
In many cases, you might leave money on the table if you work with an iBuyer. They make it sound so enticing in their ads; you get to avoid the hassle of moving, and you don’t have to show your property. That’s all true, but is it worth 30% of your equity?
To put it in perspective, you may be inconvenienced for a week while you get the house ready. If you price your home correctly in this market, it should sell within a week or two, so you’d only have to deal with about a week of showings. You need to ask yourself if avoiding this inconvenience is worth 30% of your equity. We would say no, but it’s a very personal question.
<a class="pullquote" href="https://twitter.com/home/?status=Is%20the%20convenience%20of%20an%20iBuyer%20worth%2030%%20of%20your%20equity?%20localhost:4000/why-ibuyers-might-not-be-worth-it.html%20via%40" target="_blank">“Is the convenience of an iBuyer worth 30% of your equity?”</a>
iBuyers can also work out for other reasons. We had a client who sold their home with Opendoor a while ago, and frankly, Opendoor overpaid for the house, so it worked out okay. It still might’ve been better to go on the market, but the seller had a lot going on and was under a ton of stress. The easy button worked out for them.
If you’re considering selling your home, let us know. We have access to multiple iBuyers, so if you want the easy button, we can help provide it. However, it can also be easy to sell your home on the market. We have a client who’s living with their parents over the weekend while we show their home. That’s easy for them, but they’ll also get the highest price possible.
At the end of the day, you have us to make the process easier. If you’re thinking about moving, call or email us, and we’ll walk you through all your options, including selling to iBuyers. We’d love to hear from you.2022-06-28T00:00:00-07:002022-08-01T13:29:45-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21154Do You Need an Agent to Sell Your Home?
Why it’s still worth it to sell with an agent in this hot market.
We are in a hot seller’s market, and many are asking, “Do I really need an agent to sell my house?” That’s a great question; tons of people think that all agents just put a sign in the yard, list the home on the MLS, and pray that a buyer comes along.
In this market, it’s not a question of if a home will sell; it’s all about maximizing the equity in your home. If you want to sell without an agent, would you be comfortable leaving money on the table?
Buyers are coming out of the woodwork these days, but the value that we offer is our expertise. A lot of people use discount brokers instead of selling themselves, but they’re almost the same thing. Sure, you’ll get your home in the MLS, but you’ll still have to do the negotiations, and you’ll still have to work with inexperienced agents.
One of the ways our experience can help you is by selling your home off the market. Putting your home on the market is not easy. You’ll be living in a fishbowl for three to 10 days, and your house has to look perfect. We have some sellers who are worried about that and just want to sell the home off their market.
<a class="pullquote" href="https://twitter.com/home/?status=We%20know%20what%20we%E2%80%99re%20doing,%20and%20we%20will%20help%20you%20maximize%20your%20proceeds.%20localhost:4000/do-you-need-an-agent-to-sell-your-home.html%20via%40" target="_blank">“We know what we’re doing, and we will help you maximize your proceeds.”</a>
One client was going out of town for a few weeks and asked us to sell their home off the market in the meantime. Their magic number was $1.2 million. We took photos, put the home on an off-market list, and sent it out to a few of our buyers. We thought the home would sell for $1.15 million, and we did get showings while it was off the market, but nobody wrote an offer.
When it came time to list the home on the MLS, we priced it at $1.1 million, and we had a crazy weekend of showings. We ended up getting multiple offers and the $1.2 million that our seller wanted. Our strategy worked, and we negotiated like bulldogs. That’s why you want us in your corner.
Fun, Fast, and Fabulous
Renee was the best choice I could have made. She was honest and informative when discussing the listing and the pricing of my house. She didn’t allow the crazy market to over inflate my expectations, which was very much appreciated and led to a very quick sale. I appreciate all that Renee and her team did to keep me on track through the entire process, making it mostly effortless on my part.
Michelle B.
Most homeowners would’ve listed that property at $1.3 million if they were selling by themselves. They would go above the number they wanted to give themselves negotiating room, but now the property seems overpriced, and no one will look at it. It will go stale on the market, and the owner will probably have to sell it for less than $1.2 million and take much longer to do so.
In short, hire the experts. We know what we’re doing, and we will help you maximize your proceeds. Of course, we like to help you too if you’re looking to sell! If you have any questions, just give us a call. We would love to chat.2022-06-23T00:00:00-07:002022-08-01T13:26:59-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21153Why Home Inspections Are Important
Here’s why both buyers and sellers should get home inspections.
Why are home inspections so important for both buyers and sellers in today’s market? Today we’ll discuss the virtues of the process for both parties.
<a class="pullquote" href="https://twitter.com/home/?status=A%20home%20is%20the%20biggest%20investment%20that%20most%20people%20will%20ever%20make,%20so%20do%20your%20due%20diligence.%20localhost:4000/why-home-inspections-are-important-for-buyers-sellers.html%20via%40" target="_blank">“A home is the biggest investment that most people will ever make, so do your due diligence.”</a>
It’s important for sellers to have a home inspection done so that they’re not getting themselves into a transaction just to find out later that there are deferred maintenance items they’ll have to deal with. Whether or not that deferred maintenance item is expensive, the buyer will see it as another thing they’ll have to spend money on if the seller doesn’t address it. If the seller identifies and discloses it ahead of time, then making the repairs or paying for them can be negotiated with the buyer.
For buyers, home inspections are just due diligence. A home is the biggest investment that most people will ever make, so it’s wise to spend a little time and money to figure out the condition of the house. Currently, we’re in a seller’s market, so many times, buyers aren’t able to negotiate repairs—many sellers are trying to sell their homes as is. However, that doesn’t mean buyers shouldn’t know the details about the house they’re buying. Even if buyers can’t negotiate those repairs with the seller, at least they’ll have a to-do list to work with once they close on the home.
We’re always going to fight to get every dollar our clients deserve, even if that requires compromising with the other party. If you have any questions about home inspections or other real estate topics, don’t hesitate to give us a call or send an email. We hope to hear from you soon!2022-05-10T00:00:00-07:002022-08-01T13:24:18-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21151Speaking with Nick Smith About Prop 19
Here’s what Nick Smith has to say about changes from Prop 19.
Today we’re pleased to be joined by Nick Smith from Scott and Baldwin CPA. He’s an expert on all things taxes, so we wanted to ask him a few questions about Proposition 19. It affects principal residences, and it should have a big impact on fire victims, severely disabled individuals, and the 55+ community.
You can listen to our full conversation in the video above or skip to each topic using the timestamps provided:
0:00 — Introducing Nick and today’s topic
0:51 — The basics of Prop 19
1:24 — This proposition lets you keep your previous rate when you move
2:38 — Can people who inherit properties take advantage of Prop 19?
4:02 — How you can get in touch with Nick
4:35 — You have two years to file paperwork after you sell
5:33 — Wrapping up today’s topic
Prop 19 is a great opportunity for people who need it most to save money on taxes. We are not tax experts, but Nick is! If you need to ask him any questions about today’s topic, just call him at 916-722-2524 or email <a href="mailto:nick.smith@Scott-Baldwin.com">nick.smith@Scott-Baldwin.com</a>.
As always, if you have questions about anything related to real estate, please call or email us. We are always willing to help!2022-04-29T00:00:00-07:002022-08-01T13:21:41-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21150Updates That Get You The Most Bang for Your Buck
Here are a few upgrades that will net you a great ROI when selling.
Which home-improvement projects get you the most bang for your buck? We’ve teased this topic in the past, so today we want to run through some of the best upgrades to make for a fantastic return on investment.
The data we’re talking about today comes from a survey specific to the Sacramento area. Also, we’ve been doing a concierge program for the last few years where we manage and fund repairs for our clients so they can get the most money possible out of their sales. If you’d like a copy of the survey or you want to learn more about our program, just reach out; we’d be happy to speak with you.
<a class="pullquote" href="https://twitter.com/home/?status=Cosmetic%20upgrades%20are%20always%20popular%20with%20buyers.%20%20localhost:4000/updates-that-get-you-the-most-bang-for-your-buck.html%20via%40" target="_blank">“Cosmetic upgrades are always popular with buyers. ”</a>
Based on the survey, here are the top three upgrades you can make to your home for a great ROI:
1. Minor kitchen remodel. This upgrade will net you almost 80% of your investment.
2. Manufactured stone veneer. This one surprised us. If you make this upgrade, you can expect to get 92% of your investment back when you sell.
3. Garage door replacement. Just like the veneer, this can net you a 92% return on your investment.
Through our concierge program, we’ve noticed a few other things that really stand out to buyers. For example, cosmetic upgrades, such as new counters, new backsplashes, or laminated flooring, can get you a great bang for your buck. Every home is different, so we try to fit our recommendations to your unique situation.
As a side note, we are always looking for good contractors for our concierge program. If you are a reliable contractor or know someone who is, please reach out. We’d love to talk details with you.
If you have questions about this topic, or if you want to know more about the survey we referenced, please call or email us. We are always willing to help!2022-04-15T00:00:00-07:002022-08-01T13:18:23-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21149Making a Better Offer in This Competitive Market
Evangeline Scott talks about ways to strengthen your offer as a buyer.
How can you get your offers accepted as a buyer in this competitive market? You need to think of several things, but most of them have to do with the financing. To talk about all those specifics, we sat down with Evangeline Scott from Reliance Home Loans.
She recommends getting fully pre-approved upfront. It will put your offer in a strong position, but it will also help you understand exactly how aggressive you can be as a buyer. You can figure out what your maximum monthly payment and out-of-pocket contribution are and use that to settle into a strategy. This goes beyond just what you are qualified for. We care about your limits; what are you comfortable paying?
She is happy to sit down and have a conversation with you about the process. Buying a house is a big deal, so it’s good to meet with someone willing to go over everything with you. You simply won’t know what you qualify for without having your credit pulled. Any ethical lender won’t give you an approval letter without pulling your credit, and you shouldn’t be looking at houses without an approval letter.
At the end of the day, it’s better to check your credit ahead of time. When we first looked at buying a house, we didn’t want our credit pulled because everyone had told us it would hurt our score. When we actually looked, something showed up from 10 years ago that we weren’t even aware of.
<a class="pullquote" href="https://twitter.com/home/?status=Buying%20a%20house%20is%20a%20big%20deal.%20localhost:4000/making-a-better-offer-in-this-competitive-market.html%20via%40" target="_blank">“Buying a house is a big deal.”</a>
If you look ahead of time, you can adjust and plan better. Evangeline loves to go over the credit report, run over different scenarios, and consider each option. All of that is part of getting educated at the start of the process.
Another thing to talk about is your no-regrets number. How much are you willing to pay for your dream house? Today we’re seeing homes selling for 115% of asking price, so you really need to know exactly how much you’re willing to pay to get the house. In this market, you need to put your best offer first because you might not get a chance to renegotiate.
Buying a home is not a scary process. You only hear horror stories when the buyer doesn’t have a great team to handle the process for them. We’re seeing a lot of contingency removals right now. Some of the practices from our neighbors in the Bay Area have come over into our market, so we’re having to balance protecting our buyers and keeping them competitive. A lot of it comes down to conversations about if we can shorten the inspection period or remove the appraisal contingency.
There’s so much more we want to talk about. If you have any questions about our market or your next purchase, we would love to hear from you. Just call or email us.2022-03-21T00:00:00-07:002022-08-01T13:14:08-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21148Don’t Wait To Purchase a Home
Here are a few reasons why it doesn’t make sense for buyers to wait.
It’s no secret that the market is pretty crazy for buyers right now. Considering this, should you wait to purchase a home? We don’t think so, and today we want to go over a few reasons why:
1. Prices continue to rise. Prices are rising at a constant pace. If you wait, you are almost guaranteeing that you’ll pay more for the same house. Instead, buying sooner lets you take advantage of price increases by building equity.
<a class="pullquote" href="https://twitter.com/home/?status=It%E2%80%99s%20always%20good%20to%20think%20things%20through,%20but%20don%E2%80%99t%20wait%20too%20long.%20localhost:4000/dont-wait-to-purchase-a-home.html%20via%40" target="_blank">“It’s always good to think things through, but don’t wait too long.”</a>
2. Interest rates are rising. The Federal Reserve has announced rate hikes to combat inflation. Rates have already increased, and it looks like they’re only going up from here. Thankfully, they are still low from a historical perspective, so take advantage while you can.
3. Our market is moving fast. Many times, buyers want to think things over and sit on their decision for a bit. It’s always good to think things through, but don’t wait too long. Our market is moving lightning-quick, and the longer you wait, the less inventory we’ll have. You may not be as concerned about this point because you’re selling as well. While it’s true that the longer you wait, the more you could make on your sale, you will also be paying more for the house you end up purchasing.
We understand that buying in our current market can be stressful. If you want to discuss buying strategies, please reach out to us. We just had a great conversation with a potential buyer who was stuck thinking that she had to sell before she could buy. After asking a few questions, we found out that she had money in a place she wasn’t thinking about. Now she can use that money for her down payment and transition between homes much easier.
If you are looking for results, please call or email us. We’d love to help you in any way we can!2022-03-10T01:00:00-07:002022-08-01T13:12:03-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21147How To Survive a Kitchen Remodel
How do you survive a home remodel while you’re living in the house?
We’re coming to you today from our newly remodeled kitchen. The remodeling process can be a lot of fun (and hard work to boot), but you need to keep a few things in mind about the realities of living in a house you’re currently remodeling. Today we’ll share how to get around temporarily losing access to things like your sink, dishwasher, and oven, as well as some other helpful bits of advice to get you through the process.
Those are just a few practical suggestions to help you get through your own project. More broadly, today we’re sharing some tips to keep in mind as you’re remodeling your home.
<a class="pullquote" href="https://twitter.com/home/?status=Hoping%20is%20not%20a%20good%20strategy%20when%20it%20comes%20to%20planning%20your%20project.%20localhost:4000/how-to-survive-a-kitchen-remodel.html%20via%40" target="_blank">“Hoping is not a good strategy when it comes to planning your project.”</a>
If you’re changing the footprint of the space, we recommend having a couple of professionals come to your house to give you design tips. During our remodel, we had a designer and four contractors give us bids on design projects. Just make sure that you feel comfortable with the contractor you choose, that they have a timeline that works for you, and that they can give you a clear idea of your budget. Sometimes projects have a way of becoming more and more expensive when things change during the process.
Also, be sure to plan your timeline well. Supply chain issues due to COVID and other factors have slowed down the shipment and availability of some appliances. When you order them, find out when they’re expected to be delivered. We ordered our appliances before starting our remodel; our oven came in four months later! Hoping is not a good strategy when it comes to planning your project.
If you’re thinking about doing a kitchen remodel and would like more tips and advice, don’t hesitate to reach out to us. We’d love to connect you with some great contractors and designers who can help you pick the best features for your new space.2022-02-25T01:00:00-07:002022-08-01T13:10:03-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21145Inflation and Interest Rates: What To Expect in 2022
Evangeline Scott joins us to discuss inflation and interest rates.
Today we’re delighted to be joined by Evangeline Scott with Reliance Home Loans to talk about inflation and how it’s affecting the housing market through interest rates and higher prices. We also talked about refinancing, using equity as leverage, and much more.
Feel free to watch the full video, or use these timestamps to browse specific topics at your leisure:
0:30 — How the Federal Reserve is going to play a huge role with inflation in 2022
1:18 — Where we expect rates to rise in the near future and the effect that will have
2:10 — Is it still a good time to refinance?
3:45 — A few wild cards to watch out for
5:05 — How to use your equity as leverage in this kind of market
6:30 — Final thoughts
If you have any mortgage-related needs, we highly recommend working with Evangeline. If you have any questions for her, reach out to her via phone at (916) 496-0160.
If you have any other real estate-related questions for us, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.2022-02-03T01:00:00-07:002022-08-01T13:07:01-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:211445 Ways To Prep Your Home for Sale
These are five tips to help you prepare your house for sale.
Here are the top five things you can do to prepare your home for sale:
1. Think about how your home looks from the outside. We only get one chance to make a wonderful first impression, so put yourself in the buyer’s shoes and consider how your home looks to someone driving up to it for the first time. Make sure your bark/mulch is refreshed, the lawn is mowed and edged, bushes are trimmed, and there are fresh flowers to give a pop of color; these small things make a huge difference.
2. Make your front door inviting. Your front door needs to stand out, and we’ve had success with many different colors. Having your front door painted an un-neutral color is very trendy, so we want to ensure we’re painting it an appropriate color for your neighborhood and house style.
3. Depersonalize as much as your can. You don’t want large photographs or art that are of your family; they should be neutral. We want potential buyers to focus on the home, not your family or things. When we moved last year, we brought in a stager because they’re the experts, and they helped us depersonalize our home. Think about model homes and how they look, feel, and smell—that’s what you want to emulate. We took down our family photos and 49ers memorabilia in case someone isn’t a fan, helping our home feel more open to more buyers.
<a class="pullquote" href="https://twitter.com/home/?status=We%20only%20get%20one%20chance%20to%20make%20a%20wonderful%20first%20impression.%20localhost:4000/5-ways-to-prep-your-home-for-sale.html%20via%40" target="_blank">“We only get one chance to make a wonderful first impression.”</a>
4. Declutter. You’re going to move anyway, so buy plenty of boxes and start packing things up.
5. Take care of any deferred maintenance. Even small things such as a nick, a dirty filter, or burned-out or mismatched lightbulbs can make a massive difference. Buyers may notice and be put off, even by the little things. If you need a great handyman, reach out to us, and we can get you into contact with one.
Bonus tip: If you’re thinking about selling, give us a call. At the end of your listing appointment, we’ll go through and make a list of all the things you need to do to get your home ready for sale so that there’s no confusion about what needs to be done to make your house look its best for photos. We’ll also include resources you might need to help you get your list done.
Give us a call or send an email if you have further questions about preparing your house for sale or any other real estate matter. We’re always excited to help and provide you with resources.2022-01-18T01:00:00-07:002022-08-01T13:04:21-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21143What Is the Future of Northern California’s Real Estate Market?
Here’s where our Sacramento market seems to be heading in 2022.
Now that Christmas has passed, it’s a good time to reflect on what happened in 2021 and see what the future holds for 2022. That’s why today we want to take a look at the future of Northern California’s real estate market.
Hopefully, we can all agree that 2021 was a bit of an odd year. COVID-19 is still hanging around, but so is our crazy-hot real estate market. Supply remains low, and demand remains high. On top of that, interest rates stayed at historically low levels, so buyers could still afford great homes. Overall, the market was pretty great.
One of the biggest stories of 2021’s housing market was our crazy appreciation. If you owned a home at the beginning of 2021, your equity probably shot up like never before. In fact, Northern California saw its average home value increase by 22%. That means that if you owned a $500,000 home in January, it’s now worth $600,000.
<a class="pullquote" href="https://twitter.com/home/?status=If%20you%20owned%20a%20home%20at%20the%20beginning%20of%202021,%20your%20equity%20probably%20shot%20up%20like%20never%20before.%20localhost:4000/what-is-the-future-of-northern-californias-real-estate-market.html%20via%40" target="_blank">“If you owned a home at the beginning of 2021, your equity probably shot up like never before.”</a>
So what does 2022 look like? The short answer is that no one knows for sure, but we can make an educated guess. It’s likely that interest rates will go up, and if this happens, homes will become less affordable. If you’re a buyer, don’t wait. Interest rates are likely to increase, and home prices are likely to appreciate. The sooner you get into the market, the more likely you are to get a great deal.
If you have any questions about today’s topic or anything else, please call or email us. We’d love to help you with buying, investing, contracting, or anything else you need. Happy New Year!2021-12-28T01:00:00-07:002022-08-01T13:01:46-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21142What Are Your Holiday Traditions?
Thank you for allowing us to be a part of your life this year.
What are your favorite holiday traditions? We’d love to hear what they are. Please email or comment below so we can share the joy.
One of Renee’s favorite holiday traditions is drinking hot mulled wine at the Christmas markets when we go to Germany. Maic does a great job of recreating it at home when we haven’t traveled to Germany for the holidays. It’s very simple to do, so if you want our recipe, give us a shout (the key is plenty of sugar).
Maic loves to FaceTime with the family when we’re in different parts of the county or world; our family is scattered all over. We’ve sort of perfected the art of video calling, as we’ve been doing it since the early 2000s.
Whatever you have planned with your family, we hope that you have a ball, whether you’ve already celebrated or it’s coming up. We wish you all the best. Merry Christmas, happy holidays, and happy New Year. See you in 2022!
If you ever have any real estate questions or needs, please call or email us. We would love to help you. 2021-12-20T01:00:00-07:002022-08-01T12:59:20-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21141Are The Holidays A Good Time To Sell?
Here are our top 11 reasons why the holidays are a great time to sell.
Are the holidays a good time to sell your home? Conventional wisdom says no, but we were crazy busy last year, and it looks like this year won’t be any different. There are still tons of buyers and sellers out there, so today, we want to share our top 11 reasons why the holidays are still a fantastic time to sell a home:
11. Selling now puts you in a great position for spring. The market is great, but more homes will appear in spring. If you sell now, you can increase your buying leverage for that time.
10. If you sell now, we can negotiate a lengthy rent-back. Fewer homes on market mean less competition. We’ll be in a great position to negotiate a long rent-back period with your buyer.
9. You have control when you have showings. If you don’t want buyers interrupting your decorating, don’t worry. You can set the terms however you like.
8. Employees are moving to start new jobs. If someone is moving for a job, they need to secure a home fast. These buyers could be willing to give you a fantastic offer.
7. Some people have to buy or sell by the end of the year for tax reasons.
6. Most buyers have more time to look at homes over the holidays. The holidays are a great time to take time off, so buyers will probably use that time to check out your home.
<a class="pullquote" href="https://twitter.com/home/?status=Sell%20your%20home%20now%20so%20that%20you%20can%20be%20a%20strong%20buyer%20this%20spring.%20localhost:4000/are-the-holidays-a-good-time-to-sell.html%20via%40" target="_blank">“Sell your home now so that you can be a strong buyer this spring.”</a>
5. The holidays are an emotional time. Buying a home is an emotional process. The holidays could get people in the buying spirit.
4. Houses show better when they’re decorated for the holidays.
3. There is less competition. Inventory remains low, and a lot of sellers will make the mistake of waiting until spring.
2. Serious buyers want to buy now. Since inventory is so low, buyers may compete for your home.
1. The quality of buyers is higher. If you are putting off holiday activities to look at homes, you are probably very serious about buying a home.
Hopefully, this list gave you an idea of why it’s still an awesome time to sell. If you have any questions about today’s topic or anything else, please reach out to us via phone or email. We are always willing to help.2021-12-01T01:00:00-07:002022-08-01T12:56:52-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21140We Are So Grateful for All of You
We’re so grateful for all of your support; we couldn’t do it without you.
What are you grateful for this year? With Thanksgiving just around the corner, we’re very focused on gratitude this time of year. It also happens to be our anniversary; we’ve been married 23 years now!
We’re also very grateful for all of you, our clients. You do so much to support our business and our lives. We couldn’t do it without you.
We also just had our client appreciation event last month. A good number of people RSVP’d, but as the weather got worse, we dropped down to about 40 people. It sure was the storm of the century.
Since so many of you couldn’t make it, we decided why not host another event in the summer? That way, everyone can come out and not have to worry about the weather, so keep an eye out for that.
Let us know what you’re grateful for this time of year in the comments below or in an email. With an attitude of gratitude, everything seems to go better.
If you need anything over the holidays, just give us a call. We’re here for you.2021-11-18T01:00:00-07:002022-08-01T12:54:20-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21139Our Market Is Still Really Strong
We are not in a real estate bubble right now, and here’s why.
Are we in a bubble? That is the question that we constantly get asked by our clients. Some of them have said that they’re going to wait for prices to drop. We’ve been hearing that same statement for three to four years now. Just imagine how those people who decided to wait in 2018 must feel now. Our growth is probably going to slow down, but we don’t expect prices to drop anytime soon, especially given our position as the more affordable location in California. Let’s look at some statistics and talk about why:
The fun thing about statistics is that whoever is presenting them can distort them how they like. For example, we can say that inventory has almost doubled. It went all the way from 0.6 months of inventory to a little under a full month of inventory! Considering we had 13 months of inventory in 2008, our supply is still ridiculously low, and it’s creating a competitive market.
<a class="pullquote" href="https://twitter.com/home/?status=The%20bubble%20in%202008%20was%20mainly%20created%20by%20bad%20loans.%20Today%20our%20loans%20are%20much%20more%20strict%20localhost:4000/our-market-is-still-really-strong.html%20via%40" target="_blank">“The bubble in 2008 was mainly created by bad loans. Today our loans are much more strict”</a>
Another one is that prices have gone down. This is somewhat true. Last month, you would get 103% over the asking price on average. This month, that’s down to 102%. It is a drop, but it’s not very much. We still hear from listing agents about houses where you need to come in at 110% or even 120% over asking just to stay competitive with other buyers. If the house is clean and priced correctly, you can still create an incredibly competitive environment, and that holds true no matter how the market is doing.
In summary, we don’t think we’re in a bubble. It might feel like a bubble as our rapid appreciation rates off 10% to 15% level off to a normal rate, like 4%. Don’t listen to the news about this; their job is to sensationalize and create fear. The bubble in 2008 was mainly created by bad loans. Today our loans are much more strict; people’s incomes and assets are actually being verified.
Give us a call if you have any market-related questions. Things vary a lot by area and even by price point, so if you reach out to us, we can give you more specific information and walk you through some strategies. We look forward to hearing from you!2021-10-29T00:00:00-07:002022-08-01T12:51:58-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21137What To Think About When Buying a Rural Home
Here’s why moving out to the country might make your insurance cost more.
Do you know what to look out for when you move into a rural area? Because of COVID, People are looking for more space when they buy a home. The obvious choice is to move out to the country, but there are a few things you have to know about before doing this, especially with insurance. It was a few years ago when we first had a client who had to go with a California FAIR Plan, and that was a bit of a shock to everyone.
If you’re unfamiliar, typical insurance agencies might not cover rural homes. For those cases, the state of California put some plans in place which ensure that you can get insurance, but the rates will likely be much higher. In our client’s case, their yearly premium was $20,000, which almost doubled their mortgage payment. That situation is not normal, but $10,000 or $5,000 can happen with these plans.
It’s pretty easy to tell what factors affect these rates. Being on top of a hill, how close you are to the nearest fire station, and whether or not you have a fire hydrant nearby all affect your premium significantly.
<a class="pullquote" href="https://twitter.com/home/?status=Your%20insurance%20premium%20could%20be%20much%20higher%20out%20in%20the%20country.%20localhost:4000/what-to-think-about-when-buying-a-rural-home.html%20via%40" target="_blank">“Your insurance premium could be much higher out in the country.”</a>
There are a few more factors that you have control over as well. Having a water tank that is accessible for firefighters and creating a defensible space by clearing out the brush in a 200 feet area around your house can help. In El Dorado county, cutting back the brush like that is actually mandatory.
You should also work with a local insurance broker. They might walk the property and do a four-year analysis instead of going with the highest possible premium. It can make a huge difference, so always go local.
If you have any questions about moving out to the country or insurance, give us a call. We have a great list of local insurance agencies, and we just moved out here recently ourselves, so we can definitely help.2021-10-18T00:00:00-07:002022-08-01T12:44:10-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:211363 Ways To Move Without Becoming Homeless
Here’s how you can buy and sell successfully in this real estate market.
You have the desire to move, but you also have the fear of becoming homeless because the market is so competitive for buyers right now. There is little doubt that you’ll be able to sell your home quickly, but how fast will you be able to find another property? How can you navigate a sale and a purchase at the same time? There are three options that most of our clients choose from:
1. Qualify for a second mortgage and buy first. If you can qualify for two mortgages at once, you have the best of both worlds by purchasing your next home before selling your current one. Not everyone has the financial ability to do this, however.
2. Contingent sale. This is probably the most common strategy. This means you have to sell in order to purchase a new home or make an offer on a new home that is contingent upon your sale. This strategy has been one of our specialties for the past few years.
3. Sell first and pray you find a new home. This is a strategy you can use, but it’s very risky. There are a lot of moving parts, but we can help minimize the stress involved. Often, we can negotiate a rent back so you can stay in your home after you sell, giving you time to find your new home.
<a class="pullquote" href="https://twitter.com/home/?status=Not%20everyone%20can%20qualify%20for%20two%20mortgages%20at%20once.%20localhost:4000/3-ways-to-move-without-becoming-homeless.html%20via%40" target="_blank">“Not everyone can qualify for two mortgages at once.”</a>
The goal with any of these strategies is to avoid a double move, but sometimes it happens. The market is moving pretty quickly, so we do have clients that have used all three options. The first option is ideal, the second one is good, and the third option is very risky.
If you’re thinking about making a move in this market, give us a call or send us an email today, and we can work together to find the right strategy for you. We look forward to hearing from you soon.2021-09-23T00:00:00-07:002022-08-01T12:45:11-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21130The Top 13 Things To Bring in an Emergency
Here’s our list of the top things you should take with you in an emergency.
With so much of California on fire, it’s important to have an evacuation plan. A lot of our friends have found themselves under evacuation orders only to panic over what to bring with them. While you hopefully never have to think about it, today we want to go over the top things you should bring with you in case of an emergency.
First things first, you should check out <a href="http://www.ready.gov/" rel="noopener" target="_blank">www.ready.gov</a> to build a comprehensive evacuation plan. We recommend everyone make one, even if you don’t currently live near any of the fires. Now, onto the list:
1. Pets. This should be at the top of any list. Pets are part of the family, so you want to make sure you have a plan on how to safely and quickly take them with you in case of an emergency. Don’t forget any necessary accessories as well such as leashes, medicine, or even a favorite toy.
2. Identification. We probably all carry identification on us in normal circumstances, but an emergency is anything but normal. Make sure you don’t leave behind driver’s licenses, passports, or anything else you might need.
3. Proof of address. It is for when you eventually head back to your neighborhood and check on your property. This could be a utility bill or anything official that proves your address.
4. Cash and credit. In today’s age, we don’t use cash too often. However, it is important to keep some around for an emergency. Of course, this doesn’t mean you should leave your cards behind; just make sure both options are available.
5. Important documents. Marriage certificates, birth certificates, insurance documents, and any other irreplaceable document should be kept safe with you.
6. Keys. If your property comes out of the emergency in okay condition, you’ll want your house keys. Your security deposit keys are essential as well.
<a class="pullquote" href="https://twitter.com/home/?status=You%20should%20check%20out%20www.ready.gov%20to%20build%20a%20comprehensive%20evacuation%20plan.%20localhost:4000/the-top-13-things-to-bring-in-an-emergency.html%20via%40" target="_blank">“You should check out www.ready.gov to build a comprehensive evacuation plan.”</a>
7. Medication and medical supplies. It may seem obvious, but these are things you don’t want to forget on the way out of the house.
8. Hygiene items. You don’t want to be lugging a liter bottle of shampoo on the way out, but having travel-sized items is important.
9. Food and water. Once again, a small amount is fine. You just want to make sure you and your loved ones will be okay in a worst-case scenario.
10. Change of clothes. You don’t know how long you will be away from your home, so you should prepare in case you need to stay in a hotel for a few nights.
11. Masks. Due to the pandemic, everyone should have a mask at this point. While it’s great for protecting yourself and others from disease, it will also protect your lungs from ash and dust.
12. Electronics. Don’t risk your life for a few electronics, but if you have the time, grab expensive items you would be upset to lose, such as laptops, tablets, or phones.
13. Irreplaceable comfort items. Focus on what can’t be replaced. Photos without digital copies, childhood toys, family heirlooms, or anything else you don’t want to lose.
We know this was a lot of information, but it is important to be prepared in case of an emergency. If you have questions about today’s topic or anything else related to real estate, please reach out to us via phone or email. We would love to hear from you!2021-09-09T00:00:00-07:002022-08-01T12:45:57-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:21129Now Is Still a Great Time To Buy a Home
Are there still opportunities to buy homes?
Many of our clients have been asking if now is a good time to buy or sell. The answer to both questions is, in our opinion, a resounding yes. For buyers, if you’re renting right now, would you rather pay your landlord’s mortgage or your own? And if you’re in a wrong-sized home, we can help you right-size into a better fit with a great mortgage.
Interest rates are still historically low, which means that homes are still affordable, despite rising home prices. 40 years ago, interest rates were around 17% or 18%, and for a 30-year mortgage today, rates are in the lower 3’s. For a 15-year mortgage, rates can even get into the 2’s.
All in all, there’s so much opportunity to get the deal you’re looking for while navigating this seller’s market. If you have any questions about what’s happening in your specific market or what opportunities are available to you, give us a call or send an email. We’d love to discuss your options with you.2021-08-27T00:00:00-07:002022-08-01T12:46:53-07:00The Friedrich Teamtag:thefriedrichteam.com,2012-09-20:10271The Top Reasons People Are Moving This Year<a href="https://www.mykcm.com/2020/08/24/the-top-reasons-people-are-moving-this-year/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/24/the-top-reasons-people-are-moving-this-year/&source=gmail&ust=1598369681916000&usg=AFQjCNHq8KJkGosmKs5psaQ6JRUbWcC9tw">The Top Reasons People Are Moving This Year</a>
<img width="600" height="328" src="https://ci6.googleusercontent.com/proxy/J6ggpf3vVt3BFhTsQsckzmt0q0UWM_0Ce7bzoAehtA7mZ7vISxe4HS3_CbYsStGzY6_o31hItqbz3srCoNICUEffXJtiIbFlayGJnN0XPCtPPGJT7acSloor=s0-d-e1-ft#https://files.mykcm.com/2020/08/21123356/20200824-KCM-Share-600x328.jpg" alt="The Top Reasons People Are
Moving This Year | MyKCM" class="CToWUd a6T" tabindex="0" />
Today, Americans are moving for a variety of different reasons. The current health crisis has truly re-shaped our lifestyles and our needs. Spending extra time where we currently live is enabling many families to re-evaluate what homeownership means and what they find most important in a home.
According to <a href="https://www.zillow.com/resources/new-construction/rethinking-floor-plans-for-covid/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.zillow.com/resources/new-construction/rethinking-floor-plans-for-covid/&source=gmail&ust=1598369681916000&usg=AFQjCNEHnBF_kk8LufKBplh_53Ij0Zq5CQ">Zillow</a>:
In 2020, homes went from the place people returned to after work, school, hitting the gym or vacationing, to the place where families do all of the above. For those who now spend the majority of their hours at home, there's a growing wish list of what they'd change about their homes, if possible.
With a new perspective on homeownership, here are some of the top reasons people are reconsidering where they live and making moves this year.
1. Working from Home
<a href="https://www.mykcm.com/2020/08/06/how-is-remote-work-changing-homebuyer-needs/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/06/how-is-remote-work-changing-homebuyer-needs/&source=gmail&ust=1598369681916000&usg=AFQjCNHB7wb18ZtU8mBPPfg8REjSOzNrhg">Remote work</a> is becoming the new norm in 2020, and it's continuing on longer than most initially expected. Many in the workforce today are discovering they don't need to live close to the office anymore, and they can get more for their money if they <a href="https://www.mykcm.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/&source=gmail&ust=1598369681916000&usg=AFQjCNGKDChKjsIRBKsauqvpkHE9ddQHcQ">move</a> a little further outside the city limits. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) <a href="https://www.nar.realtor/newsroom/existing-home-sales-continue-record-pace-soar-24-7-in-july" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.nar.realtor/newsroom/existing-home-sales-continue-record-pace-soar-24-7-in-july&source=gmail&ust=1598369681916000&usg=AFQjCNF6Sy-wgZKdOe9qt4q4zi1U4ZRAfg">notes</a>:
With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.
If you've tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work and continued productivity very challenging.
2. Virtual Schooling
With school about to restart this fall, many districts are beginning the new academic year online. Education Week is <a href="https://www.edweek.org/ew/section/multimedia/school-districts-reopening-plans-a-snapshot.html" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.edweek.org/ew/section/multimedia/school-districts-reopening-plans-a-snapshot.html&source=gmail&ust=1598369681916000&usg=AFQjCNHcmmHmS7-fgwwWGx2UP_AiHBgsOA">tracking</a> the reopening plans of schools across the country, and as of August 21, 21 of the 25 largest school districts are choosing remote learning as their back-to-school instructional model, affecting over 4.5 million students.
With a need for a dedicated learning space, it may be time to find a larger home to provide your children with the same kind of quiet room to focus on their schoolwork, just like you likely need for your office work.
3. A Home Gym
Staying healthy and active is a top priority for many Americans. With various levels of concern around the safety of returning to health clubs across the country, dreams of space for a home gym are growing stronger. The Home Builders Association of Greater New Orleans <a href="https://www.hbagno.org/news/details/8-features-home-buyers-want-after-covid-19" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.hbagno.org/news/details/8-features-home-buyers-want-after-covid-19&source=gmail&ust=1598369681916000&usg=AFQjCNHk5fM3kAtAbzywlGu71QMrcJ6stA">explains</a>:
For many in quarantine, a significant decrease in activity is more than a vanity issue – it’s a mental health issue.
Having room to maintain a healthy lifestyle at home – mentally and physically – may prompt you to consider a new place to live that includes space for at-home workouts.
4. Outdoor Space
Especially for those living in an apartment or a small townhouse, this is a new priority for many as well. Zillow also notes the benefits of being able to use yard space throughout the year:
People want more space in their next home, and one way to get it is by turning part of the backyard into a functional room, ‘an outdoor space for play as well as entertaining or cooking.'
You may, however, not have the extra square footage today to have these designated areas – indoor or out.
Moving May Be Your Best Option
If you're clamoring for extra space to accommodate your family's changing needs, making a move may be your best bet, especially while you can take advantage of today's <a href="https://www.mykcm.com/2020/08/13/homes-are-more-affordable-right-now-than-they-have-been-in-years/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/13/homes-are-more-affordable-right-now-than-they-have-been-in-years/&source=gmail&ust=1598369681916000&usg=AFQjCNF4n5upLXDDc1Bu-u9zQJDnMqc22w">low mortgage rates</a>. Low rates are making homes more <a href="https://www.mykcm.com/2020/08/13/homes-are-more-affordable-right-now-than-they-have-been-in-years/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/13/homes-are-more-affordable-right-now-than-they-have-been-in-years/&source=gmail&ust=1598369681916000&usg=AFQjCNF4n5upLXDDc1Bu-u9zQJDnMqc22w">affordable</a> than they have been in years. According to <a href="https://www.blackknightinc.com/black-knights-june-2020-mortgage-monitor/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.blackknightinc.com/black-knights-june-2020-mortgage-monitor/&source=gmail&ust=1598369681916000&usg=AFQjCNGGDO9vUZJncvw02pep_Q0dJ2Grtw">Black Knight</a>:
Buying power for those shopping for a home is up 10% year over year, with home buyers able to afford nearly $32,000 more home than they could have 1 year ago while keeping their monthly payment the same.<br />
It's a great time to get more home for your money, just when you need the extra space.
Bottom Line
People are moving for a variety of different reasons today, and many families' needs have changed throughout the year. If you've been trying to decide if now is the time to buy a new home, let's connect to discuss your needs.
2020-08-24T16:06:00-07:002020-08-24T16:08:18-07:00Renee Friedrichtag:thefriedrichteam.com,2012-09-20:10138Mortgage Rates & Payments by Decade [INFOGRAPHIC]<a href="https://www.mykcm.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/&source=gmail&ust=1597505824000000&usg=AFQjCNEhCUAGbpywLgpyRR0zoiuhs_3Ruw">Mortgage Rates & Payments by Decade [INFOGRAPHIC]</a>
<img width="480" height="600" src="https://ci6.googleusercontent.com/proxy/e7mDj_sQH0JLAnsbkx3bUKtXX9eH0ffSqx3JRR-fZfGSpt180UKp8BI72AOh6Gzvy1X3FXSfHbYwOBAeGSGMO8KZqyyPcRqi_9wxwF_VHsUj8aMwJZU=s0-d-e1-ft#https://files.mykcm.com/2020/08/13150648/20200814-MEM-1-480x600.jpg" alt="Mortgage Rates & Payments
by Decade [INFOGRAPHIC] | MyKCM" class="CToWUd a6T" tabindex="0" />
Some Highlights<br />
Sometimes it helps to see the dollars and cents you'll save when you purchase a home while mortgage rates are low.
Today's low rates mean it's less expensive to borrow money, so the savings over the life of your loan is significant.
Let's connect to determine the best way to position your family for a financially-savvy move in today's market.
2020-08-14T12:54:00-07:002020-08-14T12:56:06-07:00Maic Friedrichtag:thefriedrichteam.com,2012-09-20:10098Homes Are More Affordable Right Now Than They Have Been in Years<a href="https://www.mykcm.com/2020/08/13/homes-are-more-affordable-right-now-than-they-have-been-in-years/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/13/homes-are-more-affordable-right-now-than-they-have-been-in-years/&source=gmail&ust=1597429415042000&usg=AFQjCNE2RhDYPAg4xxEn4gt4h9N9C32wLw">Homes Are More Affordable Right Now Than They Have Been in Years</a>
<img width="600" height="328" src="https://ci6.googleusercontent.com/proxy/bQY1USlq9Vm4q_4iTiNH0kUxRS_2qj1pPG0AcopEWe1rNwNs4c3khy__27vMCO72peYWit6VKnF1XmmM_mw25Vj_zi6BLzhXZXgDn48k4UmZppeD3p_b1FiJ=s0-d-e1-ft#https://files.mykcm.com/2020/08/12112056/20200813-KCM-Share-600x328.jpg" alt="Homes Are More Affordable
Right Now Than They Have Been in Years | MyKCM" class="CToWUd a6T" tabindex="0" />
Today, home prices are appreciating. When we hear prices are going up, it's normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Here's why.
According to the <a href="https://www.blackknightinc.com/black-knights-june-2020-mortgage-monitor/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.blackknightinc.com/black-knights-june-2020-mortgage-monitor/&source=gmail&ust=1597429415042000&usg=AFQjCNG0f_gEBruW7mhxliEX0pIZIgcZZw">Mortgage Monitor Report</a> from Black Knight:
While home prices have risen for 97 consecutive months, July's record-low mortgage rates have made purchasing the average-priced home the most affordable it's been since 2016.
How is that possible?
Black Knight continues to explain:
As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.
This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.
In fact, buying power is now up 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.
This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now afford 10% more home than they could have a year ago while keeping their monthly mortgage payment unchanged.
With mortgage rates hitting all-time lows eight times <a href="https://www.mykcm.com/2020/08/11/current-buyer-seller-perks-in-the-housing-market/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/11/current-buyer-seller-perks-in-the-housing-market/&source=gmail&ust=1597429415042000&usg=AFQjCNEuv_gpgOJFX3b176Y8QCNPFkDqxg">this year</a>, it's now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/what-the-historic-mortgage-rate-drop-means-for-affordability" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://blog.firstam.com/economics/what-the-historic-mortgage-rate-drop-means-for-affordability&source=gmail&ust=1597429415042000&usg=AFQjCNHKS0DAXc5HJvyFQ26I0JqThopNkQ">shares</a> what low mortgage rates mean for affordability:
In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.
The map below shows the last time homes were this affordable by <a href="https://cdn.blackknightinc.com/wp-content/uploads/2020/07/BKI_MM_Jun2020_Report.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://cdn.blackknightinc.com/wp-content/uploads/2020/07/BKI_MM_Jun2020_Report.pdf&source=gmail&ust=1597429415042000&usg=AFQjCNHIt7RsmpZfEVRdongB8Z1t3uYCdw">state</a>:<a href="https://files.mykcm.com/2020/08/12112058/20200813-MEM-Eng-1.jpg" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://files.mykcm.com/2020/08/12112058/20200813-MEM-Eng-1.jpg&source=gmail&ust=1597429415042000&usg=AFQjCNEYJIHYM0nvTPtEwlCc0jolcka1Eg"><img src="https://ci5.googleusercontent.com/proxy/_lHYEfofmgLtZItNx3_O39NiCV16MepkL8R-4PsgmT6VChXmZ0vweAW2Ibss00mKG2gzdj0MIF8W4V2VINPYClVCsVbOvXrIazbX74tC3nvgkA=s0-d-e1-ft#https://files.mykcm.com/2020/08/12112058/20200813-MEM-Eng-1.jpg" alt="Homes Are More Affordable Right Now Than They Have Been in Years | MyKCM" width="600" height="450" class="CToWUd" /></a>In six states – Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia – homes have not been this affordable in more than 25 years.
Bottom Line
If you're thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you're thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, let's connect today to determine your next steps in the process.
2020-08-13T14:06:00-07:002020-08-13T14:07:50-07:00Maic Friedrichtag:thefriedrichteam.com,2012-09-20:10031The Latest Unemployment Report: Slow and Steady Improvement<a href="https://www.mykcm.com/2020/08/10/the-latest-unemployment-report-slow-and-steady-improvement/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/10/the-latest-unemployment-report-slow-and-steady-improvement/&source=gmail&ust=1597168183116000&usg=AFQjCNGTfoYstxLcN8oK3fDeRbcKN7aoSQ">The Latest Unemployment Report: Slow and Steady Improvement</a>
<img width="600" height="328" src="https://ci4.googleusercontent.com/proxy/j-jq6J3HSfTFP8mEIQ2K4KPBbqW_Oro4IMFyWimQI5DQjT24fjlXMkuEhLX_ViJDgRcILjrdjDB1i-sbUCBL_B72jqacKQDBQGeAtzQOAUrVPGewGhvynci8_rE=s0-d-e1-ft#https://files.mykcm.com/2020/08/09065523/20200810-KCM-Share-2-600x328.jpg" alt="The Latest Unemployment
Report: Slow and Steady Improvement | MyKCM" class="CToWUd a6T" tabindex="0" />
Last Friday, the Bureau of Labor Statistics (BLS) released its latest <a href="https://www.bls.gov/news.release/empsit.nr0.htm" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.bls.gov/news.release/empsit.nr0.htm&source=gmail&ust=1597168183117000&usg=AFQjCNGzFrbco035xM_MER5iPOg3DobOrw">Employment Situation Summary</a>. Going into the release, the <a href="https://www.calculatedriskblog.com/2020/08/july-employment-preview.html" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.calculatedriskblog.com/2020/08/july-employment-preview.html&source=gmail&ust=1597168183117000&usg=AFQjCNFlGzuXtrdaZwRxCW5NrtYlBDFepw">expert</a> consensus was for 1.58 million jobs to be added in July, and for the unemployment rate to fall to 10.5%.
When the official report came out, it revealed that 1.8 million jobs were added, and the unemployment rate fell to 10.2% (from 11.1% last month). Once again, this is excellent news as this was the third consecutive month the unemployment rate decreased.<a href="https://files.mykcm.com/2020/08/09065525/20200810-MEM-Eng-1-1.jpg" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://files.mykcm.com/2020/08/09065525/20200810-MEM-Eng-1-1.jpg&source=gmail&ust=1597168183117000&usg=AFQjCNHnL1jH5gqVKkd_o_Eq3s6KgVsxgg"><img src="https://ci4.googleusercontent.com/proxy/IYnjnJJoInSTQcbanr54hE4uaye5cfkyoSkmTPMeHJPoJCbgtO9Apoqp68yXEBsg-UktwCjwh_AT52x2rKBJBLL2ZQMugjc3RVgL-qIgfQN5TLG4=s0-d-e1-ft#https://files.mykcm.com/2020/08/09065525/20200810-MEM-Eng-1-1.jpg" alt="The Latest Unemployment Report: Slow and Steady Improvement | MyKCM" width="600" height="450" class="CToWUd" /></a>There is, however, still a long way to go before the job market fully recovers. The Wall Street Journal (WSJ) put a potential <a href="https://economics.cmail19.com/t/ViewEmail/d/1068CC5C02D98BD92540EF23F30FEDED/5323CD85A2087AFD22947492D9797BBC" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://economics.cmail19.com/t/ViewEmail/d/1068CC5C02D98BD92540EF23F30FEDED/5323CD85A2087AFD22947492D9797BBC&source=gmail&ust=1597168183117000&usg=AFQjCNG6PuEDjmzJUXf-F9cSLATNrxSbmw">date</a> on that recovery:
July's payroll growth, at 1.8 million, still leaves total payrolls 12.9 million lower than in February. And yet if job gains continued at July's pace, that deficit will be erased by March 2021. If payrolls reclaim their last peak in 13 months, that would be remarkably fast. It took more than six years after the last recession.
Permanent vs. Temporary Unemployment
During a pandemic, it's important to differentiate those who have lost their jobs on a temporary basis from those who have lost them on a permanent basis. Morgan Stanley economists noted in the same WSJ article:
The rate of churn in the labor market remains incredibly high, but a notable positive detail in this month’s report was the downtick in the rate of new permanent layoffs.
To address this, the <a href="https://www.mykcm.com/2020/06/24/should-we-be-looking-at-unemployment-numbers-differently/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/06/24/should-we-be-looking-at-unemployment-numbers-differently/&source=gmail&ust=1597168183117000&usg=AFQjCNG1mME4-EyKPxtegQPQSSjCH4SWlA">core</a> unemployment rate becomes increasingly important. It identifies the number of people who have permanently lost their jobs. This measure subtracts temporary layoffs and adds unemployed who did not search for a job recently. Jed Kolko, Chief Economist at Indeed and the founder of the index <a href="https://twitter.com/JedKolko/status/1291716024782340100" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://twitter.com/JedKolko/status/1291716024782340100&source=gmail&ust=1597168183117000&usg=AFQjCNE9X8Z0OecDt5u3eC-wno27BLATfg">reported</a>:
Core unemployment fell in July for the first time in the pandemic. That’s the good news I was hoping for.
What about the housing market?
The housing market has continued to show tremendous resilience during the pandemic. Commenting on the labor report, Robert Dietz, Chief Economist for the National Association of Home Builders (NAHB), <a href="https://twitter.com/dietz_econ/status/1291715690328731649" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://twitter.com/dietz_econ/status/1291715690328731649&source=gmail&ust=1597168183117000&usg=AFQjCNHoM8HUnb17VfEs4oByy3xPNHWNWw">tweeted</a>:
Housing continues to rebound in another positive labor market report. Home builder and remodeler job gains of 24K for July. Residential construction employment down just 56.4K compared to a year ago. Total residential construction employment at 2.85 million.
Bottom Line
We should remain cautious in our optimism, as the recovery is ultimately tied to our future success in mitigating the ongoing health crisis. However, as Mike Fratantoni, Chief Economist for the Mortgage Bankers Association, <a href="https://www.msn.com/en-us/money/realestate/here-are-todays-best-mortgage-and-refinance-rates-for-august-7-2020/ar-BB17H7rr" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.msn.com/en-us/money/realestate/here-are-todays-best-mortgage-and-refinance-rates-for-august-7-2020/ar-BB17H7rr&source=gmail&ust=1597168183117000&usg=AFQjCNE3pZYQPwpW8QR-iGJMkSXJETI4oA">reminds us</a>: The pace of job growth slowed in July, but the gains over the past three months represent an impressive rebound during the ongoing economic challenges brought forth by the pandemic.”
2020-08-10T17:00:00-07:002020-08-10T17:01:20-07:00Renee Friedrichtag:thefriedrichteam.com,2012-09-20:99932020 Homebuyer Preferences [INFOGRAPHIC]<a href="https://www.mykcm.com/2020/08/07/2020-homebuyer-preferences-infographic/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/07/2020-homebuyer-preferences-infographic/&source=gmail&ust=1596895890742000&usg=AFQjCNEex7u4UggX7Psfzx9LJUWf9oSjtA">2020 Homebuyer Preferences [INFOGRAPHIC]</a>
<img width="351" height="600" src="https://ci3.googleusercontent.com/proxy/yivXzjchsItSLKKgu9y3_dmnowxIsBjh0tpS9wFB4uhAftuZUlrpwNnBnVJ4ux-rbGELEkKm8T3Tw8Kl11Lj35yeIImtCeRoN04jUMUy8DGBb6Yz=s0-d-e1-ft#https://files.mykcm.com/2020/08/06112131/20200807-MEM-351x600.jpg" alt="2020 Homebuyer Preferences
[INFOGRAPHIC] | MyKCM" class="CToWUd a6T" tabindex="0" />
Some Highlights
A recent <a href="https://www.realtor.com/research/home-buying-2020-consumer-preferences-post-covid/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.realtor.com/research/home-buying-2020-consumer-preferences-post-covid/&source=gmail&ust=1596895890742000&usg=AFQjCNF0ijsRIWMDwD3_Ogx55yYdzqI3iw">study</a> from HarrisX shows the current health crisis isn't slowing down today's homebuyers.
Many buyers are accelerating their timelines to take advantage of <a href="https://www.mykcm.com/2020/07/17/mortgage-rates-fall-below-3-infographic/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/17/mortgage-rates-fall-below-3-infographic/&source=gmail&ust=1596895890742000&usg=AFQjCNEs0UFFuIXAw45CBzO59MNnp9Y0iw">low mortgage rates</a>, and staying home has enabled some to save more money to put toward a down payment.
Let's connect today if your needs have recently changed and you're ready to make a move this year.
2020-08-07T11:43:00-07:002020-08-07T11:44:33-07:00Renee Friedrichtag:thefriedrichteam.com,2012-09-20:9927How Is Remote Work Changing Homebuyer Needs?<a href="https://www.mykcm.com/2020/08/06/how-is-remote-work-changing-homebuyer-needs/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/06/how-is-remote-work-changing-homebuyer-needs/&source=gmail&ust=1596837738876000&usg=AFQjCNG0JnQD2xtHkni8-XfHONELxdI4jg">How Is Remote Work Changing Homebuyer Needs?</a>
<img width="600" height="328" src="https://ci3.googleusercontent.com/proxy/YI56dbugmXuTawCpH_BIMPxhgTlRWeXteGaF41JQwGRVWAu3UKdqNtszI01e_Kz0W7bkEDmtDMrLrB7-Uhae558qkzFhKNAiiQNGEkZwL2J4dde1r2EEbkKR=s0-d-e1-ft#https://files.mykcm.com/2020/08/05065529/20200810-KCM-Share-600x328.jpg" alt="How Is Remote Work Changing
Homebuyer Needs? | MyKCM" class="CToWUd a6T" tabindex="0" />
With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs. Do I still need to live close to my company's office building? Do I need a larger home with more office space? Would making a move to the suburbs make more sense for my family? All of these questions are on the table for many Americans as we ride the wave of the current health crisis and consider evolving homeownership needs.
According to <a href="https://themreport.com/daily-dose/07-29-2020/how-remote-working-is-impacting-homebuyer-sentiment" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://themreport.com/daily-dose/07-29-2020/how-remote-working-is-impacting-homebuyer-sentiment&source=gmail&ust=1596837738876000&usg=AFQjCNHKPxs2-qGIDevRN9Ea-OvRoqlMpQ">George Ratiu</a>, Senior Economist for <a href="http://realtor.com/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://realtor.com&source=gmail&ust=1596837738876000&usg=AFQjCNGMcViIYpqlwV-ab-mh8NyJGsmFBA">realtor.com</a>:
“The ability to work remotely is expanding home shoppers’ geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term…Although it’s too early to tell what long-term impact the COVID-era of remote work will have on housing, it’s clear that the pandemic is shaping how people live and work under the same roof.”
Working remotely is definitely <a href="https://www.realtor.com/research/home-buying-2020-remote-work-post-covid/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.realtor.com/research/home-buying-2020-remote-work-post-covid/&source=gmail&ust=1596837738876000&usg=AFQjCNFpW82TOdRkaOcWv_XobUDy4tgU6Q">changing</a> how Americans spend their time at home, and also how they use their available square footage. Homeowners aren't just looking for a room for a home office, either. The desire to have a home gym, an updated kitchen, and <a href="https://www.mykcm.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/&source=gmail&ust=1596837738876000&usg=AFQjCNGsW_iysruuJljvmp0Ki7nqIl_BYA">more space</a> in general – indoor and outdoor – are all key factors motivating some buyers to change their home search parameters.
A recent realtor.com-HarrisX survey <a href="https://themreport.com/daily-dose/07-29-2020/how-remote-working-is-impacting-homebuyer-sentiment" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://themreport.com/daily-dose/07-29-2020/how-remote-working-is-impacting-homebuyer-sentiment&source=gmail&ust=1596837738876000&usg=AFQjCNHKPxs2-qGIDevRN9Ea-OvRoqlMpQ">indicates</a>:
In a June poll of 2,000 potential home shoppers who indicated plans to make a purchase in the next year, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely, while nearly 40% [of] that number expected to purchase a home within four to six months and 13% said changes related to pandemic fueled their interest in buying a new home.
Clearly, Americans are thinking differently about homeownership today, and through a new lens. The National Association of Home Builders (NAHB) <a href="http://eyeonhousing.org/2020/07/new-home-sales-jump-in-june/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://eyeonhousing.org/2020/07/new-home-sales-jump-in-june/&source=gmail&ust=1596837738876000&usg=AFQjCNGDAflxNTLJxURBDteaHnhCEyiasA">notes</a>:
New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.
Through these challenging times, you may have found your home becoming your office, your children's classroom, your workout facility, and your family's safe haven. This has quickly shifted what home truly means to many American families. More than ever, having a place to focus on professional productivity while many competing priorities (and distractions!) are knocking on your door is challenging homeowners to get creative, use space wisely, and ultimately find a place where all of these essential needs can realistically be met. In many cases, a new home is the best option.
In today's real estate market, making a move while <a href="https://www.mykcm.com/2020/07/17/mortgage-rates-fall-below-3-infographic/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/17/mortgage-rates-fall-below-3-infographic/&source=gmail&ust=1596837738876000&usg=AFQjCNFVCR9eYDTPM3BZU2v8jQtenAOEhA">mortgage rates</a> are hovering at historic lows may enable you to purchase more home for your money, just when you and your family need it most.
Bottom Line
If your personal and professional needs have changed and you're ready to accommodate all of your family's competing priorities, let's connect today. Making a move into a larger home may be exactly what you need to set your family up for optimal long-term success.
2020-08-06T15:17:00-07:002020-08-06T15:20:06-07:00Maic Friedrichtag:thefriedrichteam.com,2012-09-20:9920Why Homeowners Have Great Selling Power Today<a href="https://www.mykcm.com/2020/08/05/why-homeowners-have-great-selling-power-today/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/08/05/why-homeowners-have-great-selling-power-today/&source=gmail&ust=1596722586169000&usg=AFQjCNG-IOjh30mLGqEAdF_YLPk8t_5phQ">Why Homeowners Have Great Selling Power Today</a>
<img width="600" height="328" src="https://ci5.googleusercontent.com/proxy/RzshPyfRd_TGosbeAv3PI1Of3kuqsEHbVlcuKb0-fAgAk5U1ajxUc-VKf2kztYF5Mi9RlmvGiqJGiunuonzmZvkWF9hnXpt22ZBTBkishozYypX4Gd4ZU_xr=s0-d-e1-ft#https://files.mykcm.com/2020/08/03115615/20200805-KCM-Share-600x328.jpg" alt="Why Homeowners Have Great
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We're sitting in an optimal moment in time for homeowners who are ready to sell their houses and make a move this year. Today's homeowners are, on average, staying in their homes <a href="https://www.mykcm.com/2020/07/20/thinking-of-selling-your-house-now-may-be-the-right-time/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/20/thinking-of-selling-your-house-now-may-be-the-right-time/&source=gmail&ust=1596722586169000&usg=AFQjCNFsefnAXjTQSOo6vknWGSBVnZs-1A">longer</a> than they used to, and this is one factor driving increased homeowner <a href="https://www.mykcm.com/2020/06/18/want-to-make-a-move-homeowner-equity-is-growing-year-over-year/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/06/18/want-to-make-a-move-homeowner-equity-is-growing-year-over-year/&source=gmail&ust=1596722586169000&usg=AFQjCNFpXEVpymaO4Jay51iKp1Hc4lkiSw">equity</a>. When equity grows, selling a house becomes increasingly desirable. Here's a breakdown of why it's a great time to capitalize on equity gain in today's market.
As average homeowner tenure lengthens and home <a href="https://www.mykcm.com/2020/07/23/home-sales-hit-a-record-setting-rebound/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/23/home-sales-hit-a-record-setting-rebound/&source=gmail&ust=1596722586169000&usg=AFQjCNFOCDpO8wSFsG_yilj_XnbIgj9zdw">prices</a> rise, equity, a form of forced savings, can be applied forward to the purchase of a new home. CoreLogic <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.corelogic.com/insights-download/homeowner-equity-report.aspx&source=gmail&ust=1596722586169000&usg=AFQjCNGLTMiZ9CyMHyJajNIpL-tJ4XBbcw">explains</a>:
Over the past 10 years, the equity position of homeowners has positively changed as a result of more than eight years of rising home prices. As the economy climbed out of the recession in the first quarter of 2010, 25.9% or 12.1 million homes were still underwater, compared to the first quarter of 2020 when the negative equity share was at 3.4%, or 1.8 million properties. Borrowers have seen an aggregate increase of $6.2 trillion in home equity since the first quarter of 2010 and the average homeowner has gained about $106,100 in equity.
Increasing equity is enabling many homeowners who are ready to sell their current houses today to sell for an increased profit, and then reinvest their earnings in a new home. According to the <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-data-solutions-q2-2020-u-s-home-sales-report/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.attomdata.com/news/market-trends/home-sales-prices/attom-data-solutions-q2-2020-u-s-home-sales-report/&source=gmail&ust=1596722586169000&usg=AFQjCNET1aEnVwZ8pV01o3EO02L0wGj0Mg">Q2 2020 U.S. Home Sales Report</a> from ATTOM Data Solutions, in the second quarter of 2020:
Home sellers nationwide realized a gain of $75,971 on the typical sale, up from the $66,500 in the first quarter of 2020 and from $65,250 in the second quarter of last year. The latest figure, based on median purchase and resale prices, marked yet another peak level of raw profits in the United States since the housing market began recovering from the Great Recession in 2012.
If you've been taking a closer look at your house recently and are thinking it might be time for you to make a <a href="https://www.mykcm.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/&source=gmail&ust=1596722586169000&usg=AFQjCNH-ACocf7YAC7cbMR8Uh6k1cVPxBQ">move</a>, determining your equity position is a great place to start. Understanding how much equity you've earned over time can be a key factor in helping you realize the potential profits in your real estate investment and move toward your next homeownership goal.
Bottom Line
With average home sale profits growing, it's a great time to leverage your equity and make a move, especially while the <a href="https://www.mykcm.com/2020/07/20/thinking-of-selling-your-house-now-may-be-the-right-time/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/20/thinking-of-selling-your-house-now-may-be-the-right-time/&source=gmail&ust=1596722586169000&usg=AFQjCNFsefnAXjTQSOo6vknWGSBVnZs-1A">inventory</a> of houses for sale and mortgage rates are <a href="https://www.mykcm.com/2020/07/15/mortgage-rates-hit-record-lows-for-three-consecutive-weeks" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.mykcm.com/2020/07/15/mortgage-rates-hit-record-lows-for-three-consecutive-weeks&source=gmail&ust=1596722586169000&usg=AFQjCNGVdgAKe9Xp9_BNFAcBpAev2HzTig">historically low</a>. If you're considering selling your house, let's connect today so you can better understand your home equity position and take one step closer to the home of your dreams.
2020-08-05T16:59:00-07:002020-08-05T17:12:29-07:00Maic Friedrich