Contradicting previous research, new study finds FSBOs sell at discount
Agents tend to achieve higher sales prices for properties than comparable FSBO listings, enough to offset their commission fee, according to a recent analysis.
Academic research has often cast doubt on the value of real estate agents, but a new study will come as music to their ears.It suggests that homeowners will net roughly the same proceeds whether they sell through a real estate agent or take the FSBO (for-sale-by-owner) route.That’s because agents tend to achieve higher sales prices for properties than comparable FSBO listings — enough to offset their commission fee, according to an analysis released by automated
Young Americans are delaying homeownership because they're burdened with student loan debt, waiting longer to get married and have kids, and spending more on renting. Some are still living with their parents — especially in certain parts of the country.
Waiting longer to buy a home means there's plenty of time to prepare financially if homeownership is on your list of life goals.
Below, we've outlined seven of the dumbest money moves to avoid before you buy a home:
1. Expect to get a big return.
If someone asks why you want to buy a house and your first answer is something along the lines of "Because I'm wasting money on rent," or "Because it's a good investment," you might not be mentally prepared for all the responsibilities
For first-time home buyers, the challenge of coming up with a 20% mortgage down payment is often difficult enough to keep them out of the market. But the fact is, the 20% down payment is all but dead — and has been for quite some time, especially for first-time buyers.
Most buyers make down payments lower than 20%
“It’s been my experience that about half of my clients know that there are loans and/or programs that require less than 20% down,” says Kris Lindahl, a real estate agent in Blaine, Minnesota. “The other half still think that they must have at least 20% down in order to qualify for a home mortgage.”
But most people don’t put 20% down on a home, even though it’s the benchmark most often quoted by lenders and mortgage experts. More than
Home price data for April shows another record high, the fifth consecutive month of new peaks.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index which covers all 9 US census areas hit its highest reading (188.50), rising 5.5% from a year earlier, but easing from the 5.6% gain for March.
The 10-City Composite annual increase was 4.9% (to 197.19), down from 5.2% the previous month; and the 20-City Composite posted a 5.7% year-over-year gain (to 210.64), down from 5.9% in March.
Month-over-month (before seasonal adjustments), the National Index was up 0.9% in April; the 10-City was up 0.8% and the 20-City gained 0.9%. After seasonal adjustments, the National and 10-City readings were 0.2% and the 20-City was up 0.3%.
Lenders are concerned over general economic conditions, and they are easing their credit standards to cope with the anticipated slowdown in market demand.
Fannie Mae said in an outlook report that more lenders expect to implement less stringent standards in the next three months for GSE eligible, non-GSE eligible and government loans as lenders report a drop in purchase mortgage demand.
“The drop in purchase mortgage demand also reflects the latest finding in the Fannie Mae National Housing Survey, in which the net share of consumers who reported that now is a good time to buy a home dropped to a record low,” the government-sponsored enterprise also said.
Doug Duncan, senior vice president and chief economist at Fannie Mae said, “Expectations
The misconception about down payments continue to hinder millennials from the possibility of owning a home.
An outlook study conducted by United Shore Financial Services along with Michigan State University found out that a whopping 96% of its respondents became more interested in purchasing a home after finding out that down payment could actually be the same as two months’ worth of rent.
Industry professionals at a recent Mortgage Bankers Association (MBA) conference cited the belief that a 20% down payment was required to get a mortgage as “the greatest cause of confusion among first-time homebuyers.” This was evident in United Shore’s survey, as 67% of millennials thought the 20% down was indeed necessary, while only 7% were aware that a down payment
Buying a house can be both an exciting and simultaneously stressful experience. One reason the home buying process tends to be so stressful for many consumers — besides the fact that it’s probably the biggest purchase you’ll ever make — is the rigorous qualification process involved in getting approved for a mortgage.
If you’re preparing for a mortgage application, it is important to understand that qualifying for a home loan is a very different process than when you apply for most other types of credit accounts. Here are two important differences when it comes to qualifying for a mortgage versus other loans:
Difference #1: Lenders Look at All Three Credit Reports and Multiple Credit Scores
The biggest difference between applying for a mortgage
Existing-home sales are poised to see their best year in a decade, but low supply and affordability still threaten to keep the homeownership rate down, according to the National Association of Realtors.
Lawrence Yun, chief economist for the NAR, recently presented his 2017 midyear forecast. According to Yun, the first quarter saw the best quarterly existing-home sales pace in 10 years with 5.62 million. Yun said he expected that pace to stay on track and finish around 5.64 million, 3.5% above 2016 and the best rate since 2006. The national median existing-home price is also expected to rise around 5% this year, according to the NAR.
“The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates,”
Deciding between a VA loan or a conventional loan may seem easy. No money down, no mortgage insurance, a better interest rate — a VA mortgage wins hands down, right?
But when you consider things like the VA funding fee and perhaps putting enough money down on a conventional mortgage to forgo mortgage insurance, the choice may be more complex. And, some of the VA loan benefits, such as no minimum credit score and no maximum debt-to-income ratio, are often overstated.
Here are the factors to consider when deciding between a Department of Veterans Affairs mortgage and a conventional loan.
To start, the type of property you’re buying can be a primary factor in the VA-versus-conventional decision.