Blogs

Millionaire to Millennials: Don’t Rent a Home… Buy!
 February 7, 2018    Cindi Parmenter

In a CNBC article, self-made millionaire David Bach explained that: “The biggest mistake millennials are making is not buying their first home.” He goes on to say that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.” Bach went on to explain: “Homeowners are worth 40 times more than renters. Now, that first home doesn’t need to be a dream home, it can be a very small home. You might literally have to buy a small studio apartment, but that’s how you get started.”  Then he explains the secret in order to buy that home! “Don’t do a 30-year mortgage. You want to take that 30-year mortgage and instead pay it off early, do a 15-year mortgage. What happens if you do a 15-year mortgage? Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in […]

Equity in Your Home
Whether You Rent or Buy, Either Way You’re Paying a Mortgage!
   Cindi Parmenter

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s. As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”: “While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.” Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent: “With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will […]

5 Reasons Homeowners Can Throw Better Super Bowl Parties! [INFOGRAPHIC]
 February 5, 2018    Cindi Parmenter

Highlights: Watching the big game at home with your friends & family offers many advantages. There’s more room to entertain a large crowd and you don’t have to worry about complaints to your landlord if you cheer too loudly! The kitchen is big enough to make as many appetizers as you want, and if some of your guests are only there to watch the commercials, they can do so on a different TV in another room! Powered by WPeMatico

Bidding Wars Abound… How Long Will They Continue?
 February 2, 2018    Cindi Parmenter

Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase. In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner. CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price. “The share selling above list price was almost three times the trough in January 2008 and represented more than one-fifth of total sales.” Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price. “San Francisco had the largest […]

Study Shows “Millennials Deserve More Credit”
   Cindi Parmenter

When it comes to talking about millennials, there are many stereotypes out there that have influenced the way the public feels about the generation. Whether it’s the assumption that millennials are irresponsible with money and would rather buy avocado toast than save for a down payment, or that millennials jump from job to job, the majority of these stereotypes paint the generation in a negative light. A new study by Bank of America entitled Better Money Habits Millennial Report recently came to the defense of the generation when it reported that: “Millennials deserve more credit – both from themselves and from others – for their mindfulness when it comes to money and their lives.” Here are some key takeaways from the study proving that millennials deserve more credit for what they are already doing: 63% are saving – (47% have $15,000 or more in savings) 54% are budgeting – (73% […]

Roller Coaster in Nashville Real Estate
U.S. Housing Inventory Crunch Continues… List Your House Today!
 January 31, 2018    Cindi Parmenter

Every winter, families across the country decide if this will be the year that they sell their current houses and move into their dream homes. Mortgage rates hovered around 4% for all of 2017 which forced many buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW! At the same time, however, inventory levels of homes for sale have dropped dramatically as compared to this time last year. Trulia reported that “in Q4 2017, U.S. home inventory decreased by 10.5%. That is the biggest drop we’ve seen since Q2 2013.” Here is a chart showing the decrease in inventory levels by category: The largest drop in inventory was in the starter home category which saw a 19% dip in listings. Bottom Line Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are […]

Magic Lamp in Real Estate
2 Major Myths Holding Back Home Buyers
   Cindi Parmenter

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that “eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.” Myth #1: “I Need a 20% Down Payment” Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report: “Consumers are often unaware of the option to take out low-down-payment mortgages. Only 19% of consumers believe lenders would make loans with a down payment of 5% or less… While 15% believe lenders require a 20% down payment, and 30% believe lenders expect a 20% down payment.” These numbers do not differ much between non-owners and homeowners; 39% of non-owners believe they need more than 20% for a down payment and 30% of homeowners believe they need more than 20% for a down […]

5 Reasons Millennials Choose to Buy [INFOGRAPHIC]
 January 29, 2018    Cindi Parmenter

Some Highlights: “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.” The top reason millennials choose to buy is to have control over their living space, at 93%. Many millennials who rent a home or apartment prior to buying their own homes dream of the day when they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space. Powered by WPeMatico

If You’re Considering Selling, ACT NOW!!
 January 26, 2018    Cindi Parmenter

Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME! How did we finish 2017? New-home sales were at their highest level in a decade. Sales of previously owned homes were at their highest level in more than a decade. Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007. And Bloomberg Business just reported: “America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.” And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year. The only challenge to the market is a […]

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years
   Cindi Parmenter

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal. When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank. Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is. In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to […]