CareFree Realty

04/19/2018

3 Steps for Unmarried Couples Looking to Buy
DAILY REAL ESTATE NEWS | THURSDAY, APRIL 19, 2018
Homebuying dreams can become real for shoppers in unmarried but committed relationships. According to Jessica Lautz, the National Association of REALTORS®’s director of survey research and communication, a report from NAR found that the highest share of first-time buyers who are unmarried couples was in 2017—the highest on record since 1981. Of course, there are significant risks when buying a home with an unmarried partner. But there are precautionary steps your partnered clients can take to ensure they can deal with the posed risks throughout the home planning and shopping together. A recent article in the Seattle Times gives details on three crucial steps:

1-Sign a prenup for the home. Renee Bergmann, a real estate attorney and owner of Bergmann Law in Westmont, N.J., says couples must have a conversation about potentially breaking up if they want to be co-homeowners. Using help from a legal professional, she says coupled clients should establish a co-ownership contract before closing day. Do not “wait and see what happens”—without a written agreement, Bergmann says, things could get messy very quickly.
2-Choose the right title. Ownership titles are different in various states, but usually these titles include: sole ownership (one person has the full ownership), joint tenancy (a 50-50 split ownership, with one tenant’s share transferring to the other in the case of death), and tenants in common (allows unequal ownership, such as a 75-25 split). All three approaches have pros and cons, but Bergmann says your clients should consider revising the deed to reflect their new legal status, using a “quitclaim deed,” if they decide to get married after buying.
3-Leave parents out of it. Younger couples often get their parents involved during the stressful homebuying process and final transaction. But doing so may cause more confusion, so it may be best to leave the parents at home, says Danielle Moy, an agent with Coldwell Banker Residential Brokerage in Orland Park, Ill. When parents show uncertainty about the situation, it causes “a bit of an emotional roller coaster when they’re looking at homes,” according to Moy. The chosen home and the final decision will ultimately be left in the clients’ hands, Moy says, so be sure to help your partnered clients become aware of what they can agree on and what they want for their homeowning future.

Source: “Buying a home as an unmarried couple? Take 3 steps,” (Seattle Times, April 7, 2018)

04/17/2018

Report: U.S. Needs 7.3 Million More Homes
DAILY REAL ESTATE NEWS | TUESDAY, APRIL 17, 2018
Housing construction has not kept pace with population growth in the U.S. for more than a decade, and in order to stymie shortages across the nation, builders will need to construct 7.3 million more homes, according to a new report. The Up for Growth National Coalition, a group of real estate developers, owners, and builders of affordable housing, finds that since 2000, builders in about 22 states and the District of Columbia have not constructed enough homes to sustain population growth.

California is the most in need of new housing, having built 3.4 million fewer homes than necessary to support its population during this time period, the report notes. Other states are also grappling with a shortage of buildable lots, labor, and materials. “As we dug into the numbers behind this, at a local market level, we’re seeing a pronounced affordability challenge in places like Arizona,” Mike Kingsella, executive director of the Up for Growth National Coalition, told The Wall Street Journal. While Arizona and Utah are facing housing shortages, the report credits the problem to strong buyer demand among retirees and other growing population groups rather than too few buildable lots.

Home construction per household is near the lowest level in 60 years, John Rappaport, an economist at the Federal Reserve Bank of Kansas City, told the Journal. But some economists are cautious about the report’s findings, noting that most people who have trouble finding a home will work out different living arrangements, such as doubling up with family members or roommates. They also might decide to move to areas where homes are more abundant, prompting a population shift, the Journal reports.

Source: “Homebuilding Isn’t Keeping Up With Growth, Development Group Says,” The Wall Street Journal (April 16, 2018) [Log-in required.]

04/10/2018

More Consumers Say It’s a Good Time to Buy
DAILY REAL ESTATE NEWS | TUESDAY, APRIL 10, 2018
The latest consumer sentiment index from Fannie Mae shows that home buyers don’t seem to be deterred by rising prices and rates, at least for now. The net share of survey respondents who said now is a good time to buy rose 10 percentage points in March month over month and is now at 32 percent, according to Fannie Mae’s Home Purchase Sentiment Index, based on a poll of about 1,000 consumers.

Overall, the index rose 2.5 percent in March to a reading of 88.3. Two of the six components registered the largest increases last month: the share of consumers who said it’s a good time to buy and those who were optimistic about selling. The net share of consumers who reported it was a good time to sell a home rose 3 percentage points in March.

The index’s “recent run of volatility continued in March, as it recovered last month’s loss and remained within the five-point range of the past twelve months,” says Doug Duncan, Fannie Mae’s chief economist. “The primary driver of this month’s increase was a sizable rise in the net share of consumers who think it’s a good time to buy a home, which returned the indicator to its year-ago level. On the whole, a slight majority of consumers continue to express optimism regarding the overall direction of the economy.”

Here’s a closer look at findings from Fannie Mae’s Home Purchase Sentiment Index in March, based on a survey of 1,000 consumers:

32%: The net share of Americans who say now is a good time to buy a home (up 10 percentage points from February).
39%: The net share of consumers who say now is a good time to sell a home (up 3 percentage points and matching a survey high from June 2017).
42%: The net share of Americans who say home prices will drop 3 percentage points, which is continuing a decreasing trend from last month.
71%: The net share of Americans who say they are not concerned about losing their job, unchanged from February’s reading.
17%: The net share of consumers who say their household income is significantly higher than it was 12 months ago, also unchanged from February’s reading.
Source: Fannie Mae

04/10/2018

Multigenerational Households Hit New High
DAILY REAL ESTATE NEWS | TUESDAY, APRIL 10, 2018
More generations are living under one roof together. A new analysis from the Pew Research Center shows that households with two or more adult generations hit an all-time high in 2016, using the most recent census data available for the analysis.

Read more: Must-Have Design for Multigenerational Living

The number of multigenerational households rose to an all-time high of 20 percent—or 64 million—of the U.S. population in 2016.

The multigenerational household trend appears to be growing across nearly all racial and age groups, the Pew Research Center reports. A specific increase in Asian and Hispanic populations does make up a significant part of the boost—both ethnic groups are more likely to live in multigenerational households than white households. About 29 percent of Asians lived in a multigenerational household in 2016 compared to 27 percent of Hispanics, 26 percent of blacks, and 16 percent of whites.

Also, millennials are the most likely age group to live in a multigenerational household. Thirty-three percent of those ages 25 to 29 live with their parents, according to Pew Research’s analysis. But a greater number of older adults are starting to live with their adult children too. Twenty-four percent of those aged 55 to 64 are living with their children, and 21 percent of those ages 65 and older are living with their children or adult grandchildren, according to the analysis.

Builders have been trying to prepare for the growth in multigenerational living, such as by introducing new floor plans that include mother-in-law suites, two main floor master bedrooms, or backyard cottages.

Source: “Number of Multigenerational Households Hit All-Time High,” HousingWire (April 9, 2018)

02/28/2018

5 Essential Questions Home Buyers Should Ask Home Inspectors (Part 1 of 2)
Published on Published onFebruary 27, 2018

You've done your homework: researching the real estate market, school districts, mortgage fees, and even the home inspection company. You're sure that you can understand a simple inspection report. But wait a second before you shake hands with the inspector and part ways. Business Insider suggests 5 questions buyers should ask home inspectors. We will discuss the first two today, and the final three in our next blog post.

Quick tip: Be present during the home inspection. In fact, ask if you can tour the house along with the inspector. This will give you a better understanding of the inspection process. You should not pester the inspector of course, but he or she would probably be fine with you shadowing.

1. How bad is it - really?

Home inspectors are usually very blunt when detailing their findings. The inspector must list every issue they discover, no matter the size. This transparency is great for records, but it can overwhelm the layperson. Ask your inspector how serious a condition is before you react: low water pressure sounds ominous, but you should be more concerned about bad wiring. Most states don't allow home inspectors to give you an estimate for a repair, but they will be able to tell you if an issue is minor, major, or a dealbreaker.

2. Who should I have fix that?

Once you know the magnitude of a problem, you can ask your inspector to recommend a contractor. For most small issues, the inspector might direct you to the nearest hardware store and explain what you need to do (or suggest a few YouTube tutorials). For larger repairs, your home inspector will likely be familiar with local contractors. Business Insider also points out that mentioning the inspector's name might help you schedule a timely appointment with contractor!

We'll discuss the final three questions in our next post!

For more information, visit Business Insider here:

Most home buyers feel like they are bona fide real estate experts after all the studying up on l...

11/17/2017

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06/07/2017

http://realtormag.realtor.org/daily-news/2017/06/07/fannie-loosen-mortgage-requirements?om_rid=AAC67n&om_mid=_BZOC2QB9ciH1ot&om_ntype=RMODaily

The financing giant will ease its debt-to-income requirements next month, a move that could help more buyers qualify for a mortgage.