Irene D. Molnar, REALTOR®

Don’t get me wrong. The real estate market is on fire! With mortgage rates at an all time low, there are first-time homeowners wanting to buy a first home and current homeowners that want to upsize. On paper, it should be the perfect time to buy. Or is it?

The problem lies in the fact that we’re in a sellers market. For those of you who don’t know what that means, there are more buyers for homes than there are homes for sale. In a normal market, you have at least 6 months of inventory available for buyers to buy. In some markets, there are currently about 1 1/2 months worth of inventory! That creates a real problem…

The sellers are in control. While they still need to price their home competitively, (it does have to appraise, after all!) If the homes are priced correctly and have been well maintained, they are going into multiple offers. So how do you win in this market?

There are several strategies you can do. It all depends on your comfort zone. Please consult your real estate professional for guidance.

Some things to consider:

1. Coming in at your highest and best offer. You know what your comfort level is. Don’t over extend yourself just to get the home.
2. Not asking for closing costs. Remember, you have the money to buy a home, make sure you have the money to cover your closing costs. Typically 2.5% of the cost of the home. Check with your title company to find out the actual cost. It could help you win the home.
3. Focusing on the structural, health and safety items from the home inspection. Look, NEVER skip a home inspection! However, have the money to fix the minor items yourself. Only ask for items costing over $2000.00 (or whatever your comfort zone is).
4. Make sure your contract includes renegotiating the price of the home if your appraisal comes in low. Don’t just go in high knowing the seller will renegotiate. They may not and call you on it!

There’s still time to get into a new home before the holidays. Contact a real estate professional to help. And if you are in the Cleveland Ohio area, call me! I can help you find the home of your dreams:-)

So you’re a first time homeowner and are excited to purchase your first home.  You’re pretty confident you can find the perfect home and live happily ever after.  After all, you watch all the home shows and scour Pinterest so perfection is certainly attainable, right?

After you do your due diligence and get pre-approved for a mortgage, you start the search and realize that perfect kitchen is not in a home in your price range.  How can that be possible?  Every home you’ve seen on TV is updated, so why the disconnect?

You have to realize that there is always a compromise in finding a home.  What may have the perfect yard and outdoor space, may come with a kitchen stuck in the ’80’s.  The perfect cape cod home with the white picket fence, may only have 1 full bath.  The homes in your desired neighborhood with only a half hour commute may have ’70’s inspired wallpaper.  What do you do now?

Your next step is to list all the features of a home that you would like, and to qualify them as follows:

• ‘Must-Haves’ – if this property does not have these items, then it shouldn’t even be considered (ex: distance from work or family, number of bedrooms/bathrooms).  Must-Haves can also be known as a deal breaker.

• ‘Should-Haves’ – if the property hits all of the ‘must-haves’ and some of the ‘should-haves,’ it stays in contention but does not need to have all of these features.

• ‘Absolute-Wish List’ – if you find a property in your budget that has all of the ‘must-haves,’ most of the ‘should-haves,’ and ANY of these, it’s the winner!

Only you know what you can live with and what you can’t.  There are certain things that are fixable for relatively little cost.  Changing paint colors, removing wallpaper and changing out light fixtures, for example, can really update a home for a relatively small cost.  Adding a bathroom or updating a kitchen will set you back some.  But if they are in good working order, can you be happy with them while you save up for the renovation?

Keeping an open mind is key.  Having a knowledgeable real estate agent working with you can really help guide you through the process.  If you’re in the Northern Virginia area and looking for a real estate agent, contact me!  I can help you realize your real estate dreams:-)

 

I’ve encountered a few first time home  buyers lately that are afraid to pull the trigger (so to speak) and get in the market.  They want to buy something, but they’re afraid of actually doing it.  What is holding them back?

One of the best phrases I’ve heard is “Everything you want is on the other side of fear”.  But what is the fear?

There are so many advantages to home ownership.  Homeownership builds wealth over time.  Homeownership can be a very savvy financial move.  You build equity every month, you get tax benefits, and according to Forbes Magazine, “Long Term, Buying Is Cheaper than Renting.  In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. But more importantly, you are not throwing away all that money on rent.”  We all need to live someplace, so instead of paying off your landlord’s home, why not pay off your own?

There are so many programs out there that can get you in a home that doesn’t require a 20% down payment.  Talk to a Mortgage Broker, or your current bank.  I had a client that was able to get into a home with just 1.5% down!  That option is not for everyone, but the point is, it’s doable.  The thought of your entire financial footprint being on the line is daunting, but is the first step in buying a home.  Take the leap!  You’ll be happy that you did.

The latest Rent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of homeownership:

• Mortgage payments can be fixed while rents go up.
• Equity in your home can be a financial resource later.
• You can build wealth without paying capital gain.
• A mortgage can act as a forced savings account
• Overall, homeowners can enjoy greater wealth growth than renters.

Bottom line is that it’s better to invest in yourself than anyone else.

If you are thinking to getting in the market, let me know.  I will get you in touch with some fabulous mortgage brokers that can help you buy a home.   Call me!  I’m happy to help you realize your real estate dreams:-)

 

Hello and welcome!  This is my first blog post and I’m really excited to get started.  I’ve wanted to share my experiences with you and answer questions that I get all the time as a REALTOR® here in Northern VA.  My intent is to try and be as informative as possible and help you navigate the world of real estate.  Whether you are buying or selling, they each present their own set of circumstances.  I am here to talk about things that come up and to help take the stress out of buying or selling your home.

When someone mentions real estate, so much comes to mind.  It can be scary!  It’s one of the major purchases you will make in your life.  There’s a lot at stake.  But as scary as it may be, there is also a lot of pride and joy to be had.  You are now an adult!  LOL!  It’s the first step in growing wealth.  Here in the Washington DC area, for every 10 yrs you own your home, you can expect a 4% average increase of equity.  Some years are more, some are less, but if you hold on to the property, that is what you can expect.  And the numbers back it up.  Can your current financial institution provide you that?

Currently, the market is on fire!  We are in the middle of a Seller’s market, where inventory is low and the demand is high!  According to Northern Virginia Association of Realtors® Chairman of the Board Bob Adamson, “While rising interest rates are not holding back serious Northern Virginia buyers, the Achilles heel of our market is still our lean inventory with only a two months’ supply. Multi-family construction has reached its peak. Entry level buyers have very little to choose from in the price range below  $400,000.”  NVAR also stated that the average home sale price rose in March to $565,964 compared to last March. This is up 5.27 percent compared to March 2016, when the average price was $537,628.

As you can see, there is no better time to invest in real estate.  Contact me to get started.  I’m here to help you realize your real estate dreams:-)