Real Estate

Higher Rates Could Raise Housing Costs 15%

NAR Daily News Magazine - February 20, 2018 - 12:00am

If forecasted mortgage rate hikes pan out, home buyers may be paying much more expensive monthly payments. 

Categories: Real Estate

Home Maintenance Can Cost Up to $2K a Year

NAR Daily News Magazine - February 20, 2018 - 12:00am

Find out the most common services homeowners use and how much they cost monthly.

Categories: Real Estate

Stop Flu From Spreading to Your Listings

NAR Daily News Magazine - February 20, 2018 - 12:00am

These four tips will help your sellers keep the virus at bay during periods of high foot traffic from open houses and showings.

Categories: Real Estate

How Buyers Misjudge the Mortgage Process

NAR Daily News Magazine - February 20, 2018 - 12:00am

Many consumers find it “stressful” or “complicated” to obtain a mortgage, according to recent surveys. Here are some of...

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Could Glut of Luxury Rentals Cause ‘Crisis’?

NAR Daily News Magazine - February 20, 2018 - 12:00am

Builders have focused for too long on serving the high-end market, while a shortage of affordable rental housing is worsening, economists warn.

Categories: Real Estate

New-Home Market Picks Up the Pace

NAR Daily News Magazine - February 20, 2018 - 12:00am

The increase in single-family housing construction may help tame home price growth, while the uptick in multifamily units could help slow rent...

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Survey Finds Hidden Costs of Homeownership

Daily Real Estate News - February 19, 2018 - 4:04pm

(TNS)—Your day burns brightly on both ends.

You prod your kids out of bed at daybreak, get them dressed, fed and off to school. You drive to work, endure meetings, colleagues, power lunches, memos and strategy sessions, only to return home through gridlocked traffic just as the sun sets, beg your kids to eat dinner, wash them, coax them to sleep, do the dishes and then mercifully collapse in front of the television set.

You fret over your emergency savings account, retirement savings account, credit card debt, mortgage rate, health insurance, college savings, and on and on.

It makes sense, then, you’d opt to pay a cleaning or lawn service every week to lighten your load. Hiring someone to keep your property in working order, either on your own or through homeowners association fees, doesn’t come cheap, though.

More than three in five homeowners—63 percent—use at least one recurring home maintenance provider, while 35 percent use two, according to a recent Bankrate survey. The average homeowner pays $2,000 annually on maintenance services, the survey finds.

Costs of Owning a Home
The price of biweekly landscaping probably never factored into your calculus when deciding how much house you can afford.

The average home mortgage neared $250,000 last year, according to the National Association of REALTORS®, which came with a monthly principal and interest payment of $973, or about one-sixth of median family income.

Homeowners saw an average property tax bill of $3,300 in 2016, according to ATTOM’s most recent data, adding another $275 to your monthly budget. You’ll also owe hundreds more in insurance premiums depending on where you live and what type of house you own.

That doesn’t even include the money you need saved in case something unexpected happens. If your air conditioning unit or washer and dryer gives out, you could immediately owe hundreds, if not thousands.

Kevin Mahoney, CEO of fee-only financial advice firm Illumint, recommends to designate a savings account as a “home maintenance fund.” Mahoney, who recently bought a renovated row house in Washington, D.C., contributes $100 to $200 a month as a hedge against unexpected repairs and wear-and-tear. Maintaining a house fund will inoculate you against high-interest debt, leaving your budget open for routine maintenance services.

Cost You Probably Didn’t Think About
After the years required to amass a sufficient down payment—the average among new homebuyers is 11 percent—and all the big costs staring homeowners in the face, it’s little wonder if you don’t account for smaller fare.

But the price tag for convenience can rise quickly.

People who opt for housekeeping shell out an average of $285 a month, while HOA dues ($210) and landscaping ($144) followed behind. A home security system costs $130, slightly more than pool care ($123). Snow removal ($84), septic service ($67) and trash and recycling collection ($55) proved more affordable.

Unsurprisingly, renters are less likely than homeowners to pay for recurring maintenance services, and when they do, they pay less for most services.

On average, renters pay less for housekeeping ($128), HOA dues ($71), pool care ($70), landscaping ($61) and snow removal ($24); however, they fork over a little more for security systems ($142), septic service ($113), and trash and recycling collection ($63).

Nate Masterson, a director of Finance for Maple Holistics, pays $1,000 annually for gardening services, and another $70 to clear his Riverside, N.Y., home of snow.

“It would require a lot of strenuous work to perform either task, and it’s simply more worthwhile for me to pay a professional,” says Masterson, 34.

Make Sure You Account for All Costs
Americans broadly struggle mightily to save.

The average person wouldn’t pay for an unexpected $1,000 expense from their savings, per a recent Bankrate survey, while the median amount in a savings and checking account for a middle-income household has essentially remained flat over the past 27 years, according to Federal Reserve data.

Credit card debt recently hit an all-time high, while the personal savings rate has dropped precipitously over the past two years.

If you don’t have a fully-funded emergency fund comprising three to six months’ worth of expenses in a high-yield savings account, strongly consider suspending as many as these services as possible until you do. Dropping almost $300 a month on housekeeping while lacking $1,000 in the bank is simply too risky. What if the roof caves in? At the very least, start contributing to a home maintenance fund.

You may not have a say in other costs—trash collection and HOA fees were two of the three most common—but make sure to account for those expenses into your budget prior to moving in, and in your emergency fund.

Life’s hard, and there’s nothing wrong with paying someone else to mow your lawn. Unless you can’t afford it.

©2018 Bankrate.com
Distributed by Tribune Content Agency, LLC

For the latest real estate news and trends, bookmark RISMedia.com.

The post Survey Finds Hidden Costs of Homeownership appeared first on RISMedia.

Categories: Real Estate

Brokerage’s Pig Stunt Annoys Seattle Residents

NAR Daily News Magazine - February 16, 2018 - 12:00am

Marketing campaigns can sometimes prompt backlash, as one startup real estate company learned this week.

Categories: Real Estate

House Passes Bill to Curb ‘Drive-by’ Accessibility Lawsuits

NAR Daily News Magazine - February 16, 2018 - 12:00am

Legislation would likely lead to greater accountability by building owners with regard to potential violations of the...

Categories: Real Estate

Builder Lets Consumers Design Its Model Homes

NAR Daily News Magazine - February 16, 2018 - 12:00am

Taylor Morrison Home Corp. is crowdsourcing the design of its model homes to give home shoppers more of a say through its myModel Home Project.

Categories: Real Estate

Climbing Mortgage Rates Reach 4-Year High

NAR Daily News Magazine - February 16, 2018 - 12:00am

Rates continue to increase, soaring this week to the highest average since 2014. 

Categories: Real Estate

First-Time Buyers May Have it Easiest Here

NAR Daily News Magazine - February 16, 2018 - 12:00am

First-time home buyers are entering the market under tight inventory conditions and rising home prices. But not all cities are posing a challenge...

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Are Romantic Addresses a Better Investment?

NAR Daily News Magazine - February 14, 2018 - 12:00am

A new study suggests a sales-to-love connection for certain sweet street names.

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Small Investors Are Looking to Partner Up

NAR Daily News Magazine - February 14, 2018 - 12:00am

Mom-and-pop landlords and house flippers seek to alleviate risks and smooth financing hurdles as property prices increase. 

Categories: Real Estate

Buyers Finding Love Takes More Time

NAR Daily News Magazine - February 14, 2018 - 12:00am

Real estate pros may be working with a home shopper much longer than they used to. Two-thirds of buyers are shopping for three months or more...

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Is Market Volatility Giving Buyers Cold Feet?

NAR Daily News Magazine - February 14, 2018 - 12:00am

Stock jitters and higher interest rates were likely behind the most recent plunge in mortgage applications.

Categories: Real Estate

It’s Official: Lennar, CalAtlantic Merge

NAR Daily News Magazine - February 14, 2018 - 12:00am

The two companies now make up the nation’s largest homebuilder based on revenue.

Categories: Real Estate

Guiding Buyers Who Follow Their Hearts

NAR Daily News Magazine - February 13, 2018 - 12:00am

Love is in the air, and if your clients have recently fallen for a property, use these tips to ensure they have really found “the one....

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Buyers Entering the Market Solo Struggle

Daily Real Estate News - February 12, 2018 - 4:33pm

Accumulating a down payment is a struggle—and even more so for singles, according to a new report.

Singles are facing more than 10 years of saving, assuming they make a 20 percent down payment on a median-priced property, an analysis by Zillow reveals. Conversely, couples can do it in half the time: 4.6 years.

In addition, buyers have limited options when solo: 45 percent of inventory, compared to couples, who can afford 82 percent of supply.

“Nearly two-thirds of Americans agree that buying a home is a central part of living the American Dream, but for unmarried or un-partnered Americans, that dream is increasingly out of reach,” says Aaron Terrazas, senior economist at Zillow. “Single buyers typically have more limited budgets, which means they are likely competing for lower-priced homes that are in high demand. Having two incomes allows buyers to compete in higher-priced tiers where competition is not as stiff.”

The challenge is intensified in markets with rising values, the report shows. Couples face 14 years of saving in San Jose, Calif.—already a haul—but for singles, that span stretches over 30 years. In San Francisco, Calif., couples can amass enough for 20 percent down in 12.6 years, but singles have a longer road, at 27.8 years.

A handful of markets are more realistic for singles: Indianapolis, Ind. (7.5 years of saving); Cleveland, Ohio, and Detroit, Mich. (8 years); and St. Louis, Mo., and Pittsburgh, Pa. (8.1 years).

Across the largest metros:

Analysts assumed buyers are portioning off 10 percent of their income each year to savings. According to 2016 Census data, annual earnings were a median $80,800 for couples and $34,500 for singles.

For more information, please visit www.zillow.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post Buyers Entering the Market Solo Struggle appeared first on RISMedia.

Categories: Real Estate

Airbnb Income Counts Toward Refinancing

NAR Daily News Magazine - February 12, 2018 - 12:00am

A new program allows homeowners who rent rooms through the popular home-sharing service to include their earnings as income when applying to...

Categories: Real Estate
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