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3 Reasons Why Snowbirds LOVE Phoenix

by Melissa Dierks

Source:  ARMLS, Oct 23, 2017 

Vector pigeons throwing off gloves and scarves in the desert

Can you feel that? The temperature is cooling down, the traffic is growing more dense and white hair can be spotted more often than not. Winter is coming, and the snowbirds (older residents who chase good weather) are slowly migrating back to Phoenix. And who could blame them? Here are three reasons why snowbirds love Phoenix.

1. Beautiful Weather

There’s a saying we have in the desert, “You can’t shovel sunshine”. There are few things better than wearing t-shirts and sandals in the fall and winter. With average temperatures in Arizona plummeting from the 100s in the summer to the upper-60s/mid-70s during the fall and winter seasons, snowbirds keep their summer lifestyle year round.

2. There’s Always Something To Do

Whether you’re into fine dining, concerts, sports or the like, when the weather cools down, there’s plenty to do in the area. Some popular events in Phoenix include PGA Golf Championships, Arizona Beer Week, the Taste of Arizona, various concerts, shows, sporting events and more!

3. The Low Cost of Living

Where does Phoenix stack up against other major metropolitan areas in the United States? According to Tim Gallen of the Phoenix Business Journal, “Phoenix is one of the most affordable big cities in the country. Phoenix has an index score of 97, which means the cost for items like groceries, health care, transportation and miscellaneous goods are 3 percent lower than the national average.” This bodes well for snowbirds coming from cities like ChicagoNew YorkBostonMinneapolis, etc.

These are just three of the many reasons snowbirds love Phoenix. As they begin preparations for their winter move, the market demand forvacation rentals typically increase. Make sure any of your listings with vacation rental days are updated and ready to go.

The post 3 Reasons Why Snowbirds Love Phoenix appeared first on ARMLS.

If you are looking to buy, sell or invest in the Phoenix or surrounding areas, call The Regal Team. 

Melissa Dierks

Owner, The Regal Team of RE/MAX Professionals

Direct: 623-229-0154

Email: melissa@theregalteam.com

2017 Home Design Trends

by Melissa Dierks
SOurce:  realtor magazine, BY BARBARA BALLINGER
2017
 

Housing styles emerge slowly and typically appeal first to cutting-edge architects, builders, and interior designers. As a trend spreads and gains wider interest, it may go mainstream, become almost ubiquitous, and eventually lose its star power. Just look at once-favored granite, which now has been replaced by the equally durable and attractive options of quartz and quartzite.

The economy, environment, and demographics always play a big role in trend spotting. But this year there are two additional triggers: a desire for greater healthfulness and a yearning for a sense of community.

1. Community Gathering Spaces

Why it’s happening: The combination of more time spent on social media and at work and the fact that fewer people live near their family members has caused many to feel isolated and crave face-to-face interactions.

How it will impact you as a real estate pro: Multifamily buildings and even single-family residential developments are rushing to offer an array of amenity spaces to serve this need. Some popular options include clubhouses with spiffy kitchens, outdoor decks with pools and movie screens, fitness centers with group classes, and drive-up areas for food-truck socials. At its Main+Stone building in Greenville, S.C., The Beach Co. began hosting free monthly events such as its “Bingo & Brews.” Make sure you know which buildings, communities, and neighborhoods offer these sought-after social events and gathering spaces so you can help clients connect.

2. Taupe Is the New Gray

Why it’s happening: White remains the top paint color choice due to its flexibility and the fact that it comes in so many variations (PPG Paints has 80 in its inventory, according to Dee Schlotter, senior color expert). Though white has been upstaged by gray in recent years, this year many will be searching for a warmer neutral, which is why paint manufacturer Sherwin-Williams named “Poised Taupe” as its 2017 Color of the Year. “Poised Taupe celebrates everything people love about cool gray as a neutral, and also brings in the warmth of a weathered, woodsy neutral and a sense of coziness and harmony that people seek,” says Sue Wadden, the company’s director of color marketing. 

How it will impact you: Dallas-based designer Barbara Gilbert considers taupe a smart alternative since it still performs as a neutral with other colors, cool or warm. She expects to see taupe on more exteriors — blending well with roofs, doors, window frames, and surrounding landscape — but it also will turn up indoors on walls, ceilings, kitchen cabinets, furnishings, and molding. It might even work to help update a listing clad in gray, she says, as the two colors work well together.

3. More Playful Homes

Why it’s happening: Americans work harder now than ever, with many delaying retirement or starting second careers, so they want their homes to be a refuge and a place to unwind.

How it will impact you: Be sure you’re asking buyers how they like to spend their free time. Spaces that encourage play are trending higher on their wish lists, whether it’s a backyard bocce court (the latest outdoor amenity to show up in residential backyards) or a putting green. And sports don’t have to be relegated to the outdoors. says Gilbert; technological advances have allowed for rapid improvement in indoor golf simulators, for example. While some of her clients have installed modest models, she’s working on a dedicated golf room with software that gives homeowners virtual access to any golf course in the world. Though landscape architect Steve Chepurny of Beechwood Landscape Architecture in Southampton, N.J., designs putting greens with synthetic grass that range from $12,000 to $30,000, he also notes he’s seeing more playfulness outdoors in the form of non-sports amenities, such as pizza ovens.

4. Naturally Renewable, Warmer Surfaces

Why it’s happening: The pervasiveness of technology throughout homes has resulted in a corresponding yearning for more tactile surfaces and materials that convey warmth. Natural cork is a perfect expression of these needs, with the bonus of being low-maintenance.

How it will impact you: In recent years, cork, a renewable material harvested from the bark of cork oak trees, has resurfaced as a favorite for myriad uses, and for good reason. Some credit designer Ilse Crawford’s introduction of cool, edgy cork pieces in her “Sinnerlig” collection for IKEA for the resurgence. Aside from aesthetics, the material is appealing since it’s resistant to mold, mildew, water, termites, fire, cracking, and abrasions. Moreover, cork can be stained and finished with acrylic- or water-based polyurethane. Chicago designer Jessica Lagrange likes to incorporate cork to clad walls and floors. “It’s an especially effective and forgiving choice since dents bounce back and floors retain heat,” she says.

5. Surface-Deep Energy Conservation

Why it’s happening: As energy costs continue to increase, the search is on for ways to save. Incentives to do so only increase as states and municipalities enact new, stricter energy codes. While energy-wise appliances and more efficient HVAC systems are still appealing to homeowners looking to save on their utility bills, less costly surface upgrades are gaining in popularity.

How it will impact you: After New Jersey increased its requirements for insulation, architect Jason Kliwinski, principal at Designs for Lifeand current chair of New Jersey’s AIA Committee on the Environment, went looking for new options. He found new low-E window film that can double the performance of glass at one-fifth the cost of a full window replacement. Several options for this film are on the market now, and Kliwinski says manufacturers such as EnerLogic are producing versions that are invisible when installed. Other surface-change artists that lower energy use and that are cost-effective and relatively easy to apply include a ceramic insulating paint coating for walls and a thermal energy shield for attic interiors. Tesla, the innovative manufacturer of electric cars, is just debuting solar glass tiles that resemble traditional roof materials such as slate and terracotta, but provide passive heat gain.

6. More Authentic, Personalized Use of Space

Why it’s happening: As home prices escalate — up 5.5 percent, according to CoreLogic Case-Shiller — and baby boomers downsizeto retire or cut costs, every inch of available space counts more than ever. To make the best use of space for each resident, design professionals are zeroing in on how clients want to live rather than thinking about how people use space generically. “One size doesn’t fit all any longer,” says Mary Cook, whose eponymous Chicago-based design firm specializes in amenities, public spaces, and model home interiors.

How it will impact you: You and your clients are likely to see a greater variety in terms of layouts, building materials, home systems, color palettes, and furnishing choices, both in model homes and in houses staged for sale. Listing agents can take the cue from this trend by helping sellers highlight the flexibility of their spaces when putting a home on the market. Buyers’ reps should similarly showcase a range of living options in each home-shopping session.

7. The Walkable Suburb

Why it’s happening: Urban centers have long been a magnet for residents wanting to walk rather than drive to work, shopping, and entertainment. But the trend is now spreading to the suburbs where being close to a town center — and public transit into a larger city — offers similar appeal.

How it will impact you: high walk score has become a recognized real estate marketing tool. Real estate salesperson Stephanie Mallios of Coldwell Banker Residential Brokerage in Short Hills, N.J., has seen a huge uptick in interest and value in single-family homes and townhouses close to town centers, especially those near a train station if residents commute to a large metropolitan area. “Most homes for sale in my area list the number of blocks and steps to public transit in their marketing materials. Homes far from everything have become less valuable,” Mallios says. The most appealing towns also incorporate individually owned shops rather than chain stores.

8. Healthier Homes

Why it’s happening: Consumers have been increasingly aware of hazardous indoor environments over the last few years, but news of the lead-tainted water crisis in Flint, Mich., raised awareness to a nationwide level in 2016. Homeowners are actively seeking out healthy water supplies, purifiers, and HVAC systems, along with nontoxic paints and adhesives. A newer element to this trend in 2017 will include enhanced environmental testing.

How it will impact you: A growing number of builders, remodelers, architects, and interior designers expect health to influence their business decisions due to consumer demand, according to studies from both the Urban Land Institute and McGraw-Hill Construction. You should expect to see more buyers hiring health experts to examine listings and requiring in-home contaminant removal prior to a sale. Your clients will also have greater access to additional home products that promote healthy sleep patterns, such as those featuring UV and LED circadian lighting.

9. Shifting Hearths

Why it’s happening: The traditional log-burning fireplace has lost some appeal as homeowners realize it’s less energy-efficient and can send more particulates into the air. But there are a number of replacement options waiting in the wings.

How it will impact you: Homeowners have been switching out their log-burning fireplaces with new gas models for many years. Newer on the market are the ventless alcohol-burning fireplaces that can be placed almost anywhere and without costly construction, says Los Angeles–based designer Sarah Barnard. Another increasingly popular solution is to build a fireplace outdoors, according to landscape architect Chepurny.

10. Counter Options

Why it’s happening: Much like granite did, quartz and quartzite are predicted to be kitchen favorites until another material comes along. But other green laminate options are gaining in popularity, and they’re no longer just for the budget-minded consumer.

How it will impact you: A new countertop can make a big difference in the appeal of a room. Sally Chavez, senior product designer at Wilsonart in Temple, Texas, which manufactures engineered surfaces, says laminate options that mimic stone, wood, distressed metal, and concrete are gaining in popularity. But she recommends avoiding designs that include the “spots and dots” or speckled patterns from decades past. Some newer countertop options offer an additional perk: They lessen the time and cost of installation and also eliminate the need to discard the old countertop. Trend Transformations, an Italian manufacturer with a U.S. manufacturing facility, incorporates recycled granite, glass, and even seashells in its surfaces, which are installed over an existing countertop. Installation can be finished within a day, and prices are competitive with quartz and quartzite. Because these countertops are less porous than traditional stone, they’re also more resistant to stains and scratches.

11. The Transforming Office

Why it’s happening: Regular work-from-home time among the non–self-employed population has grown by 103 percent since 2005, according to Kate Lister, president of Global Workplace Analytics, a San Diego–based research and consulting group focused on workplace change. Her organization estimates that number will continue to grow at between 10 percent and 20 percent a year.

How it will impact you: More of your clients are likely to need a work-from-home space, but due to the diminished size and highly transient nature of technology tools, there’s less need for a dedicated, separate office. Brad Hunter, HomeAdvisor’s chief economist, says almost any area of a house can become a workplace, but the most functional ones incorporate built-ins and furnishings that serve a dual purpose. That same desire for flexibility may someday translate to layouts that can easily change to a homeowner’s whim, such as the KB Home ProjeKt movable wall concept in its “Home of 2050” at the Greenbuild Conference and Expo this past October.

If you're looking to buy or sell a home in the Phoenix or surrounding area, call The Regal Team today!

Melisa Dierks

Owner, The Regal Team of RE/MAX Professionals

Direct: 623-229-0154

EMail: melissa@theregalteam.com

 

Whether you are buying or selling a home, it can be quite an adventurous journey. This is why you need an experienced real estate professional to guide you on the path to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 reasons you NEED a real estate professional in your corner haven’t changed, but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to a study by Collateral Analytics, FSBOs achieve prices significantly lower than those from similar properties sold by real estate agents:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of the most important financial decisions of your life without hiring a real estate professional?

If you are looking to buy, sell or invest in the Phoenix or surrounding areas, call The Regal Team. 

Melissa Dierks

Owner, The Regal Team of RE/MAX Professionals

Direct: 623-229-0154

Email: melissa@theregalteam.com

Source: Keeping Current Matters

Net Worth of Homeowners 44X Greater than Renters

by Melissa Dierks

Net Worth of Homeowners 44X Greater than Renters | Simplifying The Market

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago.

The study revealed that the 2016 median net worth of homeowners was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

Owning a home is a great way to build family wealth

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

That is why, for the fourth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.

Greater equity in your home gives you options

If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, let’s get together to discuss the process.

If you are looking to buy, sell or invest in the Phoenix or surrounding areas, call The Regal Team.

Melissa Dierks

Owner, The Regal Team of RE/MAX Professionals

Direct: 623-229-0154

E-Mail: melissa@theregalteam.com 

The Truth About Homeowner Equity

by Melissa Dierks

A recent article from a reputable news source was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.” The article then goes on to soften that stance but we want to bring better clarity to the equity situation.

A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity. That level of equity allows the homeowner to sell their home if they so desire. (There was no reference to significant equity in the article.)

If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”

Here is a map showing the percentage of homes in each state which currently have significant equity:

The Truth About Homeowner Equity | Simplifying The Market

Bottom Line

If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, let’s get together to determine if now is the time to list.

If you're looking to buy, sell or invest in the Phoenix and surrounding areas, call The Regal Team.

Melissa Dierks

Owner, The Regal Team of RE/MAX Professionals

623-229-0154

melissa@theregalteam.com

 

Source: Keeping Current Matters and CoreLogic

Tips for Lowering Heating Bill

by Melissa Dierks

5 Tips For A Lower Heating Bill

Keeping a home warm during the colder months of the year can prove to be expensive. With energy costs on the rise, many households are facing higher energy bills each year.

Fixr.com, which provides "Cost Guides" of estimates to common household remodeling projects, highlights five projects to help increase a home’s energy efficiency and keep utility bills lower. (Fixr.com also provides cost estimates below of the projects listed.)

1. Find unorthodox heat sources. More efficient sources of heat are available, particularly if the home is in a milder climate or if the home can be broken into zones.

A heat pump can help lower your electric bills by 50 percent if you currently use electricity to heat your home. Heat pumps cost about $7,500, but will pay for themselves with reduced energy costs. Switching to a geothermal heat pump will save you even more. According to Money Crashers, geothermal heat pumps qualify for a tax credit equal to 30 percent of equipment and installation costs, with no upper limit. Pumps are also frequently paired with things like radiant heat flooring in specific areas of the home, as they are more effective at using energy than either baseboards or radiators and can help supplement the heat in smaller spaces.

Radiant heat costs between $6,000 and $14,000 if covering your whole home, but you can often install it in a single room for around $700. Paired with a heat pump, this will keep your home warm while significantly lowering your energy bills.

2. Add extra insulation. The amount of insulation that your home needs is directly tied to the type of heat source you have. Many homes are actually underinsulated for their climate and their heat source, resulting in their furnaces or radiators having to work harder than they need to and causing a spike in energy bills.

Insulating even a single room in your home can dramatically increase comfort and help you lower your thermostat, resulting in smaller bills. Adding insulation to your attic can also help you prevent costly and damaging ice dams as well, saving you even more. The cost to insulate a single room in your home is around $1,200 to $1,800, and will recoup about 107 percent of the cost at time of resale, making this one of the best improvements you can do for your home.

3. Take care of your furnace. Furnaces are one of the most commonly used ways to heat large homes. Unfortunately, they often have a wide range of efficiency that could be costing you more in monthly bills than they need to.

If your furnace is less than 10 years old, make sure to schedule regular maintenance to keep it running at peak efficiency. This involves changing the filter and making repairs as necessary. The most common furnace repair involves replacing the heat exchange, for around $1,000 to $1,700.

If your furnace is older than 10 years, replacing it can dramatically increase its efficiency. Older furnaces only run at around 50 percent efficiency, while newer models can reach rates of 90 percent, making them a much better choice for keeping monthly bills down. A new furnace costs around $3,000 to $5,000, but will pay for itself in lowered bills over time.

4. Make the switch to gas. If you’re currently heating your home with electricity or oil, you’re likely spending more each month than you would if you switched to natural gas. Gas furnaces are much more efficient than oil or electric heaters, which can save as much as 30 percent on energy bills each month.

The cost to install a new gas system in your home is around $6,000 to $8,000, assuming you have ducts already in place. This upgrade makes the most sense if your current heating system is over 10 years old, as you’ll see the largest gains. The typical ROI of a new gas furnace system is around 15 percent, which means that it will pay for itself in just 6 years.

5. Complete an energy audit. Your home may be losing a great deal of the energy you use to heat it, without you even realizing it. An energy audit—or a comprehensive look at how your home uses and loses energy—will help you find ways to make your home more efficient overall.

An energy audit costs about $150, and many times this cost will be rolled into any upgrades you may choose to make, allowing you to save more. Conducting an energy audit before you have any other work or upgrades done on your home can help you make better informed decisions about the space, maximizing your potential efficiency and savings.

If you're looking to buy, sell or invest in the Phoenix or surrounding area, call The Regal Team today.

Melissa Dierks

Owner, The Regal Team of RE/MAX Professionals

623-229-0154

melissa@theregalteam.com

Source: Fixr.com

4 Reasons to Sell This Fall!

by Melissa Dierks

Millionaire to Millennials - BUY NOW!

by Melissa Dierks

 

Millionaire to Millennials: Buy a Home Now! | MyKCM

In a CNBC article, self-made millionaire David Bach explained that “the single biggest mistake millennials are making” is not purchasing a home because buying real estate is “an escalator to wealth.”

Bach went on to explain: “If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter.”

In his bestselling book, “The Automatic Millionaire,” Bach does the math: “As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!”

 Who is David Bach? Bach is a self-made millionaire who has written nine consecutive New York Times bestsellers. His book, “The Automatic Millionaire,” spent 31 weeks on the New York Times bestseller list. He is one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists. He has been a contributor to NBC’s Today Show, appearing more than 100 times, as well as a regular on ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS. He has also been profiled in many major publications, including the New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Time, Financial TimesWashington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investors’ Business Daily, and Forbes.

Bottom Line: Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice – if you don’t yet live in your own home, go buy one.

If you're looking to buy or sell in the Phoenix or surrounding areas, call The Regal Team today!

Melissa Dierks

Owner of The Regal Team of RE/MAX Professionals

20241 N 67th Ave, Glendale, AZ 85308

Direct:   623-229-0154

Email: melissa@theregalteam.com

Web: www.theregalteam.com

VA Refinancing - Beware of Scams

by Melissa Dierks

Refinance Scams Target Military Vets

The federal government is investigating a number of predatory lending schemes targeting thousands of veterans who have Veterans Administration mortgages. Officials say the scams aim to convince borrowers to repeatedly refinance, ultimately paying more on their loans. Some lenders also are being accused of using teaser interest rates, “cash out” windfalls, and lower monthly payments, using marketing materials that sometimes resemble Department of Defense information, the Chicago Tribune reports.

Veterans reportedly are being overwhelmed with misleading refinance offers—sometimes refinancing properties multiple times in a year. “We’re seeing borrowers refinance three times in less than six months, and their loan balances are going up,” says Michael R. Bright, acting president of VA loan giant Ginnie Mae. The Department of Veterans Affairs has teamed with Ginnie Mae to create a task force to investigate such cases.

Ginnie Mae investigators have found that these refinancing offers often prompt homeowners to switch from a long-term fixed-rate mortgage to a riskier short-term adjustable-rate loan. The borrowers then find that the principal amount they owe to the lender has increased by thousands of dollars. In some cases, borrowers added $12,000 to their total loan amount in order to reduce their monthly payments by $165. Ginnie Mae economists say it would take more than six years just to break even on such a deal. VA home loans often have no down payment requirements.

The VA warned that lenders who make “improper charges or fees” that lead to foreclosure will face stiff penalties. The Consumer Financial Protection Bureau plans to fine and sue lenders who propagate these abuses.

Source: “Government Cracks Down on Home Refinancing Scheme Targeting Veterans,” Chicago Tribune (Sept. 26, 2017)

If you'd like more information or if you're looking to buy a home in Phoenix or surrounding areas, please contact The Regal Team today!
Melissa Dierks
The Regal Team of RE/MAX Professionals
7111 W Bell Road, Suite 101, Glendale, AZ 85308
623-229-0154
www.theregalteam.com

If you'd like more information or if you're looking to buy a home in Phoenix or surrounding areas, please contact The Regal Team today!

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101, Glendale, AZ 85308

623-229-0154

www.theregalteam.com

No, You Do Not Need 20% Down to Buy NOW!

by Melissa Dierks

The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that non-homeowners cite the main reason for not currently owning a home, as not being able to afford one.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

NAR’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 39% of non-homeowners say they believe they need more than 20% for a down payment on a home purchase. In actuality, there are many loans written with a down payment of 3% or less.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO® Scores

An Ipson survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores of approved conventional and FHA mortgages are much lower.

The average conventional loan closed in August had a credit score of 752, while FHA mortgages closed with a score of 683. The average across all loans closed in August was 724. The chart below shows the distribution of FICO® Scores for all loans approved in August.

No… You Do Not Need 20% Down to Buy NOW! | Simplifying The Market

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options.

If you'd like more information or if you're looking to buy a home in Phoenix or surrounding areas, please contact The Regal Team today!

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101, Glendale, AZ 85308

623-229-0154

www.theregalteam.com

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Melissa Dierks
The Regal Team of RE/MAX Professionals
7111 W Bell Road, Suite 101,
Glendale AZ 85308
Direct: (623)229-0154
Office: (623)643-1092
Fax: (623)201-7562

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