 Buying a home can feel like a dream that’s out of reach, especially when you think about saving up for a big down payment. But the good news is, there are plenty of ways to buy a home without having a huge pile of cash. Here are 15 options to help you make homeownership a reality, explained in simple terms:
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 When a home is priced above its market value, it risks missing a large audience of serious buyers. Most buyers set a price range when they begin their house hunting, and if your home is priced too high, it won't even appear in their search results. Instead of making your home stand out, overpricing can prevent it from being seen at all, limiting your pool of potential buyers from the start. A competitive price helps you stand out and ensures more eyes on your listing.
1. Fewer Showings, Less Excitement One drawback of overpricing is its impact on showings, which are one of the most powerful ways to build buyer interest. Overpricing, however, can lead to fewer showings and missed opportunities, as potential buyers may feel they're not getting the value they want within their budget and skip over your property. Remember, more showings often mean more offers, giving you the competitive edge to negotiate the best deal. 2. The Old Listing Dilemma Another pitfall of overpricing is the risk of your home lingering on the market too long and developing a "stale" reputation, leaving buyers to wonder if something might be wrong. If your home is overpriced and doesn't sell quickly, it may sit unsold for months. Once that happens, price adjustments alone may not be enough to overcome buyers' doubts. Pricing it right from the beginning keeps your listing fresh and appealing. 3. Price Cuts Signal Desperation Overpricing can also lead to frequent price cuts, which can create doubt in buyers' minds. Multiple price adjustments can make a property appear less desirable or even give the impression that you're eager to sell at any cost. Instead of attracting a fair offer, you might get lower-than-expected bids. Setting a realistic price from day one helps you avoid these reductions and maintain the value of your listing. 4. Unexpected Appraisal Setbacks Even if a buyer agrees to a high price, there's a final hurdle—the appraisal. If the appraiser values your home below the selling price, the buyer's financing could fall through, forcing you to either lower the price or lose the sale. By setting an accurate price, you reduce the likelihood of these last-minute appraisal issues and keep your sale on track. As your trusted real estate professional, I'm here to help you price your home strategically from day one. Together, we'll attract the right buyers, build momentum, and ensure a smooth, successful sale. Let's make your home sale a success—reach out today to discuss the best pricing strategy!  The Federal Reserve's recent decision to cut its key interest rate by half a percentage point—the first cut in four years—has significant implications for both buyers and sellers. While the Fed doesn't set mortgage rates directly, its actions influence them. By lowering the federal funds rate—the rate at which banks lend to each other—the Fed indirectly pushes down other interest rates, including mortgages. However, mortgage rates are also shaped by broader economic factors beyond the Fed's control. Here's what to expect:
Don't Wait for the "Perfect" Rate If you're considering buying a home, holding out for lower rates might seem wise, but experts recommend acting now. The 30-year fixed mortgage rate is hovering around 6.5%, down from over 7.6% last year. According to Jessica Lautz, deputy chief economist for the National Association of Realtors (NAR), anticipated rate cuts are likely already factored into current mortgage rates. Buyers should take advantage of today's rates, as refinancing remains an option if rates drop further. Why Lower Rates Work in Buyers' Favor Even a 1% rate reduction can save buyers tens of thousands of dollars over the life of a mortgage. Lower rates offer three key benefits: reduced interest costs, smaller monthly payments, and easier loan approvals. Reduced payments lower the lender's risk, increasing the chances of approval. Modest rate drops alone can lead to long-term savings, making homeownership more affordable for many. More Buyers, More Demand For sellers, falling rates often bring increased buyer activity. Lower borrowing costs boost purchasing power, drawing more buyers into the market—especially in areas with tight inventory. This increased demand can drive up home prices, making it an ideal time for sellers to list their homes. Acting now allows sellers to capitalize on motivated buyers eager to lock in lower rates before competition intensifies. Stay Flexible: Negotiations and Agent Compensation The fall market typically slows, and with buyers holding out for lower mortgage rates, sellers might feel pressure to reduce prices. To avoid this, it's essential to price your home correctly from the beginning to protect your overall return. Additionally, recent changes from the NAR have made negotiations more complex, particularly around buyer's agent compensation. Now that sellers no longer set the buyer's agent fee, offers may include unique terms regarding agent payment. Sellers should be prepared for these new dynamics and stay open to flexible discussions. Adapting in both pricing and compensation can be the key to closing deals and securing the best offers. The Federal Reserve's recent decision to cut its key interest rate by half a percentage point—the first cut in four years—has significant implications for both buyers and sellers. While the Fed doesn't set mortgage rates directly, its actions influence them. By lowering the federal funds rate—the rate at which banks lend to each other—the Fed indirectly pushes down other interest rates, including mortgages. However, mortgage rates are also shaped by broader economic factors beyond the Fed's control. Here's what to expect: Don't Wait for the "Perfect" Rate If you're considering buying a home, holding out for lower rates might seem wise, but experts recommend acting now. The 30-year fixed mortgage rate is hovering around 6.5%, down from over 7.6% last year. According to Jessica Lautz, deputy chief economist for the National Association of Realtors (NAR), anticipated rate cuts are likely already factored into current mortgage rates. Buyers should take advantage of today's rates, as refinancing remains an option if rates drop further. Why Lower Rates Work in Buyers' Favor Even a 1% rate reduction can save buyers tens of thousands of dollars over the life of a mortgage. Lower rates offer three key benefits: reduced interest costs, smaller monthly payments, and easier loan approvals. Reduced payments lower the lender's risk, increasing the chances of approval. Modest rate drops alone can lead to long-term savings, making homeownership more affordable for many. More Buyers, More Demand For sellers, falling rates often bring increased buyer activity. Lower borrowing costs boost purchasing power, drawing more buyers into the market—especially in areas with tight inventory. This increased demand can drive up home prices, making it an ideal time for sellers to list their homes. Acting now allows sellers to capitalize on motivated buyers eager to lock in lower rates before competition intensifies. Stay Flexible: Negotiations and Agent Compensation The fall market typically slows, and with buyers holding out for lower mortgage rates, sellers might feel pressure to reduce prices. To avoid this, it's essential to price your home correctly from the beginning to protect your overall return. Additionally, recent changes from the NAR have made negotiations more complex, particularly around buyer's agent compensation. Now that sellers no longer set the buyer's agent fee, offers may include unique terms regarding agent payment. Sellers should be prepared for these new dynamics and stay open to flexible discussions. Adapting in both pricing and compensation can be the key to closing deals and securing the best offers.  A well-maintained roof boosts curb appeal and prepares your home for fall and winter. Extend your roof's life span and save on repairs with these tasks to safeguard your roof and foundation.
Give Your Roof a Checkup Examine your roof for damage, such as missing, cracked, or curling shingles. Even minor damage can lead to leaks and significant problems. If you notice moss, algae, or lichen, it can indicate moisture buildup and decay. Consider hiring a roofer to make repairs before winter sets in. Keep Gutters Working Smoothly Clogged gutters cause water to overflow, leading to roof damage and water pooling around your foundation. Clear out leaves, twigs, and debris from gutters to ensure proper drainage. Downspouts should direct water away from the foundation to prevent erosion and flooding. Installing gutter guards can reduce cleaning and minimize clogs. Trim Overhanging Branches Branches overhanging your roof pose a risk during storms; high winds can cause them to break and damage your roof. These branches also clog gutters with leaves and debris, so trim them back to reduce risks. For large or hard-to-reach branches, hire a tree service. Grade the Soil Around Your Foundation Proper grading around your foundation directs water away and prevents pooling. Check the soil around your foundation to ensure it slopes away from the house. If needed, add soil to create a gentle slope that directs water away. Proper grading helps prevent water from seeping into the foundation, which can cause cracks and damage. Check Basement and Crawl Space for Moisture Excess moisture in your basement or crawl space can indicate water seeping through the foundation, leading to mold growth and structural damage. Look for damp walls, musty odors, or mold. Use a dehumidifier to control humidity, and fix any leaks.  Buying a home is a major financial step, and coming up with a down payment is often the most challenging part. Fortunately, down payment assistance (DPA) programs make homeownership more attainable by providing funds to cover part of the down payment.
How DPA Programs Ease Your Homebuying Journey DPA programs offer financial support through grants or low- or no-interest loans, typically covering 3% to 5% of the home's purchase price. This reduces the amount you need to save upfront, making it easier to manage the initial costs of buying a home. By lowering the down payment requirement, these programs can also help to reduce your overall loan amount and monthly mortgage payments while expanding your options for homes and neighborhoods that might otherwise be out of reach. Getting Started: Eligibility and Application To qualify for DPA programs, you typically need a credit score of at least 640 and a debt-to-income ratio of 45% or less, along with meeting specific income limits. Many programs also require completion of homebuyer education courses. Eligibility requirements vary by state, with some programs tailored for specific groups such as government employees or veterans, and most targeting first-time homebuyers. For detailed information on eligibility and to apply, visit your state or local housing authority's website. Options for Higher Earners: Alternative Assistance If you have a higher income and don't qualify for standard DPA programs, other options may be available. For example, the Freddie Mac BorrowSmart Access Special Purpose Credit Program (SPCP) offers a $3,000 grant to households earning up to 140% of the area median income (AMI), with $1,500 of this grant being taxable. The availability of this program varies by region. The FirstHome+ program provides assistance in high-cost areas by waiving certain loan terms and fees for households earning up to 120% of the AMI, making expensive markets more affordable. If you or someone you know wants to buy a home but is struggling with the down payment, call me today to explore possible options.  On March 15, 2024, the National Association of Realtors (NAR) reached a significant settlement that will change how broker commissions work in real estate transactions. This settlement, which still needs court approval, aims to address complaints from home sellers and will take effect on August 17, 2024. Here's a breakdown of what's coming:
Written Agreements for Homebuyers One major change is the requirement for real estate agents to sign written agreements with buyers before showing any homes. The terms need to be specific and clear, such as a flat fee, a percentage, or an hourly rate, with no open-ended arrangements. Agents cannot receive more compensation than what is agreed upon and the agreement must clearly state that broker fees and commissions are negotiable. These changes are designed to ensure buyers know exactly what they're getting into, with no surprises about costs and services. Traditional Compensation for Buyers' Agents Traditionally, buyers' agents have been paid through a commission covered by the seller. When a home is sold, the seller agrees to pay a commission fee, usually split between the seller's agent and the buyer's agent. This commission is generally a percentage of the home's sale price and is included in the total closing costs. The amount is listed on the multiple listing service (MLS), allowing buyers' agents to know the compensation they will receive. This system has been criticized for potentially leading agents to prioritize properties with higher commissions over those that best fit their clients' needs. New Rules About How Compensation Offers Are Shared Compensation offers can no longer be listed on MLS platforms. However, sellers can offer compensation off an MLS through negotiation with real estate professionals. They can still offer concessions, such as covering closing costs, on an MLS. Implications for Home Buyers and Sellers Buyers will need to sign a written agreement with their agents before touring homes, detailing services and compensation, but this is not required for casual interactions like open houses. Sellers will no longer be required to pay the buyer's agent commission on MLS systems, potentially shifting this cost to buyers. Since most homebuyers will still need a real estate agent to help them purchase a home, sellers should explore alternative ways to compensate buyers' agents, including direct negotiations. Navigating the Changes The only thing constant is change—these new rules for written agreements and compensation offers will cause adjustments for buyers and sellers. As a professional real estate agent, you can trust that I'll keep you informed and prepared for these changes to ensure a smooth buying or selling experience.  A buyer’s agent is a real estate professional who represents the purchaser’s interests in a real estate transaction. Unlike the listing agent, who represents the seller, a buyer’s agent is entirely on your side, guiding you through every step. Here are some ways buyer’s agents are beneficial to the homebuying process:
Finding the Right Home Buyer’s agents listen to your needs and budget to find homes that fit your criteria. They know the local market inside and out and will use their extensive knowledge to show you the best options available, arranging viewings and walking you through each property. Educating You on Buying They’ll explain everything you need to know about buying a home, from getting preapproved to each legal step involved. They’ll make sure you’re fully prepared and comfortable with the process. Covering the Inspection They coordinate inspections, ensuring thorough assessments to uncover potential issues with the property, which is essential to make an informed decision. Negotiating Offers When you’re ready to make an offer, they’ll advise you on the best price and negotiate with the seller on your behalf. They’ll help craft a strong, competitive offer to get the best deal possible. Referring Reliable Professionals Buyer agents have connections with trusted professionals like inspectors and mortgage brokers. They’ll refer you to reputable people and handle all the communication for you. Preparing Documents for Closing Beyond these tasks, buyer agents assist in preparing and organizing important documents, ensuring a smooth closing process. Ready to make your homeownership dream a reality? Contact me now to begin your journey toward finding your perfect home. Return to Newsletter |
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December 2024
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Marybeth Rojas - Broker
1350 Old Bayshore Hwy. Suite 520
Burlingame, CA 94010
Telephone (650)796-5565
www.marybethrojas.com
www.avantproperties.us
DRE#01352623
1350 Old Bayshore Hwy. Suite 520
Burlingame, CA 94010
Telephone (650)796-5565
www.marybethrojas.com
www.avantproperties.us
DRE#01352623