Author: Christy Walton

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Knowledge Is Power on the Path to Homeownership

Knowledge Is Power on the Path to Homeownership | MyKCM

Homeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying process to pre-approval and down payment assistance options, uncertainty along the way can ultimately hold some buyers back.

Today, there are over 75 million Millennials and 67 million Gen Z’ers in the U.S., making up a significant number of both current and soon-to-be homebuyers. According to a recent Fannie Mae survey of more than 2,000 of these individuals:

“88% said they are confident they will achieve homeownership someday.”

In addition, the survey also reveals that for younger generations, the motivation to own a home may be more emotional than financial compared to previous generations:

  • <50% say they want to use their home as an asset
  • 78% believe it’s the best way to live the way they want, without restrictions
  • 80% believe homeownership is the best way to make it on their own

Whether homeownership goals come from the heart or are driven by financial aspirations (or maybe both), the obstacles standing in the way don’t have to bring these dreams to a screeching halt. The same survey also reveals two key roadblocks for potential buyers. Thankfully, they’re both easily overcome with the power of knowledge and trusted advisors leading the way. Here’s a look at these two challenges potential homebuyers face today:

1. 73% of future homebuyers are unaware of low-down-payment mortgage options

For those who want to purchase a home, low-down-payment options are instrumental to affording one sooner rather than later, especially given the amount of debt many younger adults have accumulated. Fannie Mae also notes:

“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as a limited ability to save and the fear of taking on more debt.”

Today, there are more than 2,340 down payment assistance programs available nationwide to help relieve this pressure. Understanding what’s out there and the options available may help many buyers become homeowners faster than they thought possible. In a year like this, with record-low mortgage rates making their mark in the history books, being able to take advantage of the opportunity buyers have right now is essential to long-term affordability.

2. 64% of buyers expect lenders and other real estate professionals to educate them about the mortgage process

While many people love to do a quick search online to find instant answers to their questions, it isn’t the only way younger generations want to consume information or build their knowledge base. As the survey mentions, having trusted professionals help them learn what it takes to achieve their dreams is definitely on their wish list too, so call me. If I can’t answer you quickly and concisely, I know someone who can.

Bottom Line

If you’re aiming for homeownership someday, it may be in closer reach than you think. Let’s connect so you can learn about the process and get the guidance you need to make it happen.

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5 Tips for Homebuyers Who Want to Make a Competitive Offer

5 Tips for Homebuyers Who Want to Make a Competitive Offer | MyKCM

Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.

1. Listen to Your Real Estate Agent

A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.

2. Understand Your Finances

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.

3. Be Ready to Move Quickly

According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.

4. Make a Fair Offer

It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”

5. Be a Flexible Negotiator

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.

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Happy Thanksgiving

I am grateful for what I am and have. My thanksgiving is perpetual. 
Henry David Thoreau

Thanksgiving’s a day we get together with family and friends. Some we see often. Others we see but a few times a year. I’m so thankful that I still have my parents and can visit them this Thanksgiving!

We come together to give thanks for all we have on our lives…and eat way too much.

Here’s what I’m thankful for this year (and every year)…

That’s basically every day of the year for me.

The health, joy, and prosperity of my family (the current cold that’s running through my household notwithstanding). I am also deeply thankful that we are living in a world that is slowly but surely trying to right wrongs and commit to justice, truth, and love.

Being a real estate agent, I’m constantly gathering with friends and family. (Minus the eating too much part.)

So, I’ve gotten to see many of you throughout the year, and celebrated with you along the way, when you bought or sold a home.

I’m thankful to each and every one of you who gave me the opportunity to be a part of your real estate celebrations this year…

… and I look forward to celebrating with many more of you in the coming year, and years to come, when you buy or sell a home.

But for now, enjoy this day of rest and thanks. (And go eat way too much!)

Want my mom’s internationally craved and celebrated stuffing recipe? Drop me a line. Trust me. It’s AMAZING! 

Best – and more to come!
Christy 
503.793.3345
RE/MAX Select

P.S. Oh, and another thing I’m thankful for… all of the clients you refer to me. Remember: I’m never too busy for your referrals.

May your Thanksgiving be bountiful, may your meal be hearty.
May your guests be civilized, and may your clean floors shine.
If they don’t, though, call me to find a new home with gorgeous floors
and plenty of room for all of your guests!
(I will even kick in a few recipes to make your next family meal even yummier.)

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Fall Landscaping Checklist

Photo courtesy of Condé Nast Traveler of Neuschwanstein Castle
Fall Landscaping Checklist
“This is prime time to prep your yard for the next growing season,” says This Old House landscape contractor Roger Cook. Cooling temperatures slow aboveground growth, and moister soil encourages strong root development. Removing spent stems, dead branches, and heavy leaf cover protects plants’ overall health. Read on for Roger’s fall checklist.

Aerate the Lawn
If rainfall pools on the grass, it’s time to aerate compressed soil so water and nutrients can reach the roots. A garden fork can do the job on a small yard, but for larger lawns Roger uses a walk-behind aerator that pulls out 2½-to 3-inch-deep soil plugs, which will break down naturally by spring.

Feed Your Grass
Cutting back on fertilizer in late summer prevents perennials from wasting energy on leaf production. “But grass roots keep growing until the ground gets down to around 40 degrees,” says Roger, “so this is a good time to feed them.” Apply a high-phosphorus (12-25-12) mix to lawns in fall to encourage roots, so turf greens up earlier in spring.

Mow a Final Time
Roger trims turf down to 1¼ inches for the last cut of the season. “Disease has a harder time with shorter grass,” Roger says, “and fallen leaves blow across the lawn because they have nothing to latch on to.” Don’t go too low, though: Grass makes most of its food in the upper blade.

Collect Leaves
To make fallen leaves easier to transport, rake them onto a plastic tarp. Roger adds them (along with leaves he’s cleared from the gutters) to a compost bin—a simple chicken-wire pen will do. Flip the leaf pile every week with a garden fork to aerate; the “black gold” that results next year can nourish lawns, flower beds, and shrub borders.
 
Plant New Shrubs
In many parts of the country, planting shrubs in early fall gives the plants a head start at establishing roots in the season’s cool, moist soil. The basics: Dig a hole (twice the diameter and to a depth of 2 inches less than the full height of the root ball); position the shrub in the hole (make sure the top of the root ball remains at, not below, ground level); fill in with soil; water to settle soil; add more soil to top of root ball (don’t pack soil down with foot); mulch.

Trim Dead Limbs
Lifeless branches can succumb to winter snow and winds, endangering you and your home. “For big jobs, call in the pros,” says Roger. But you can protect small ornamental trees from further damage by cutting cracked, loose, and diseased limbs close to (but not flush with) the trunk; leave the wounds exposed to heal.
 
Cut Back Perennials
A little work now results in healthier spring beds: Evict tired annuals, as well as the snails and slugs that feed on them, which breed in fall. Trim spent perennial foliage down to the ground; this sends energy to the roots, for next season. Every three years, divide crowded tuberous plants, like irises and daylilies: More space means more flowers.

Mulch Young Plants
Give new beds a layer of mulch—chopped leaves, weed-free straw, or wood chips—after a light frost, but before the ground freezes. Till decomposed layers of organic mulch into the soil, then apply a fresh 2- to 4-inch layer (more will smother roots) to keep new plantings warm and to control water runoff and soil erosion.
  
Dry Out Drip Systems
Standing water can freeze and crack drip-irrigation tubing. For simple systems, Roger shuts the water off, unscrews the tap-joint adapter, and, using a high-volume, low-pressure setting on his compressor, inserts an air hose where the system normally attaches to the tap. “Blowing the water out avoids having to uproot the entire system.”

From This Old House
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Winter Will Bring a Flurry of Activity to the Housing Market

Winter Will Bring a Flurry of Activity to the Housing Market | MyKCM

In the second half of this year, the housing market surged with activity. Today, real estate experts are looking ahead to the winter season and the forecast is anything but chilly. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes:

“It will be one of the best winter sales years ever.”

The typical winter slowdown in the housing market is simply not on the radar. Here’s why.

While today’s historically low mortgage rates are expected to remain low, they won’t be this low for much longer. This could be the last chance for homebuyers to secure such low rates, and they’re ready to take action. In a recent article, Bankrate explained:

“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”

As long as we continue to see low interest rates, we’ll see hopeful buyers on the hunt for their dream homes. Yun confirmed:

“The demand for home buying remains super strong…And we’re still likely to end the year with more homes sold overall in 2020 than in 2019…With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”

The challenge, however, is the lack of homes available for sale. With that in mind, all eyes are on homeowners to see if they’ll sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it’s best for sellers to capitalize on this moment sooner rather than later:

“We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”

With buyers ready to stay active this winter, sellers who want to close a deal on the best possible terms shouldn’t wait until spring to put their homes on the market.

Bottom Line

Experts agree the winter housing market could potentially be bigger than ever. Whether you’re ready to buy or sell, let’s connect today so you can be in your dream home by the new year.

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Real Estate Fact Friday

I have to disagree with this one for Oregon. We have some good ones here: Wanker’s Corner, Drain, Boring (sister city of Dull, Scotland), Whorehouse Meadow, and the ever-popular Jackass Mountain in southern Oregon.

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It Pays to Sell with a Real Estate Agent

It Pays to Sell with a Real Estate Agent [INFOGRAPHIC] | MyKCM

Some Highlights

  • Today, it’s more important than ever to have an expert you trust to guide you as you sell your house.
  • From your safety throughout the process to the complexity of negotiating the deal, you need a professional on your side.
  • Before you decide to take on the challenge of selling your house on your own, let’s connect to discuss your options.
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Will Mortgage Rates Remain Low Next Year?

Will Mortgage Rates Remain Low Next Year? | MyKCM
Will Mortgage Rates Remain Low Next Year? | MyKCM

In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to Freddie Mac, rates hit all-time lows 12 times this year, dipping below 3% for the first time ever while making buying a home more and more attractive as the year progressed (See graph below):When you continually hear how rates are hitting record lows, you may be wondering: Are they going to keep falling? Should I wait until they get even lower?

The Challenge with Waiting

The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates jumped this week as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year ago.”

Will Mortgage Rates Remain Low Next Year? | MyKCM
Will Mortgage Rates Remain Low Next Year? | MyKCM

While rates are still lower today than they were one year ago, as the economy continues to get stronger and the pandemic is resolved, there’s a very good chance interest rates will rise again. Several top institutions in the real estate industry are projecting an increase in mortgage rates over the next four quarters (See chart below):If you’re planning to wait until next year or later, Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), forecasts mortgage rates will begin to steadily rise:As a buyer, you need to decide if waiting makes financial sense for you.

Bottom Line

If you’re planning to buy a home and want to take advantage of today’s low rates, now is the time to do so. Don’t assume they’re going to stay this low forever.

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How to dispose of fall leaves

We all know that leaving dead leaves leaves your lea… trees susceptible to disease. This Old House leaves some hints on how to dispose of your leaves.
WHEN IN DOUBT, MULCH
“The most environmentally conscious thing to do is to leave the leaves on your lawn,” says Kurt Morrell of the New York Botanical Garden. Leaves, when left to decay in the street, will release phosphorous, which can find its way into storm drains and waterways—better to shred them finely with a mulching mower and let them fertilize the lawn. Or rake choppings under shrubs and onto flower and vegetable beds as mulch.
OR COMPOST THEM
Decaying leaves also generate carbon, which helps spin food scraps into “black gold”—good for the gardener and for the garbage collector. In a mixed pile, keep the ratio of dead leaves to grass clippings at about 2-to-1. Spread the leaves on top so they can soak up the moisture in food scraps and help keep a lid on odors; turn over regularly to discourage pests. Or just compost the leaves alone in a pile to make leaf mold.
CURBSIDE COLLECTION
[Portland has our awesome green cans, you can just put the leaves in there. The can weight limit is 135lbs. Additional Kraft paper bags, cans or bundles may be put out for an additional $3.75 each]. Be sure you know what bags are acceptable—usually those made from paper or biodegradable plant starch (like BioBag Lawn & Leaf Bags, $9.99; Target).