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BY BEN VERDE

Half of homebuyers cry at least once while shopping for a home: Survey

50% of people who bought a home over the past 2 years say the process brought them to tears, according to a new survey conducted by Zillow!

Buying a home can be as stressful as planning a wedding or getting fired for Americans, half of whom find themselves in tears at least once during the process, according to a new survey. Conducted by Zillow, the survey found that 50 percent of homebuyers said the process left them in tears, with millennial and Generation Z buyers — who are most likely to be buying their first home — leading the pack, with 61 percent of millennials and 65 percent of Gen Zers reporting tears, according to Zillow.


The findings come at a point when the housing market has come to be defined by low inventory and high demand, with 60 percent of home sellers reporting at least two offers on their home. While increased mortgage rates have begun to shift the market, intense competition and high prices persist, with nearly half of all homes sold during April 2022 going for above-asking price, up from 37 percent in 2021.


The already-emotional nature of buying a home combined with some of the most challenging conditions ever seen for making the purchase has been enough to make buyers break down and cry, according to Zillow experts.


“Buying a home is not like buying any other asset; it’s deeply personal and it’s emotional,” Zillow home trends expert Amanda Pendleton said in a statement. “When you make an offer on a home, you have likely envisioned your life there. If you lose out on that home to a stronger offer, it can feel like losing a future you have already started planning. These survey results find, even when they are ultimately successful, a large share of buyers in today’s competitive market experience heartache and stress.”


Buying a home has long been a stressful endeavor in most markets, but the added stressors of higher costs and competition has increased the burden on buyers, many of whom have to compete with all cash offers or engage in bidding wars.


Zillow’s survey, which featured data from more than 2,000 people who purchased a home over the past two years, found that 62 percent were stressed about being able to find a home within budget, 61 percent were stressed about not having enough homes to choose from, and 58 percent were stressed about finding a home in their preferred neighborhood.

Non-white buyers were more likely to cry at least once during the process, Zillow found, with only 48 percent of white buyers reporting tears compared to 68 percent of Latinx buyers and 51 percent of Black buyers.


Past studies have shown that Black mortgage applicants are significantly more likely to be denied mortgages due to low appraisals,  with data from Zillow showing that Black mortgage applicants are 84 percent more likely to be denied than white applicants.

 

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    Why Inflation Shouldn't Stop You from Buying a Home in 2022

    Arrows Up and Down

    If you’re following along with the news today, you’re probably hearing a lot about record-breaking home prices, rising consumer costs, supply chain constraints, and more. And if you’re thinking about purchasing a home this year, all of these inflationary concerns are likely making you wonder if you should wait to buy. Investopedia explains that during a period of high inflation, prices rise across the board. And while home prices aren’t immune from this increase, here’s why inflation shouldn’t stop you from buying a home in 2022.

     

    Homeownership Offers Stability and Security

    Home prices have been increasing for quite some time, and experts say they’re going to continue to climb throughout 2022. So, as a buyer, how can you protect yourself from rising costs for things like food, shelter, entertainment, and other goods and services? The answer lies in housing.

    Buying a home allows you to lock in your monthly mortgage payment for the foreseeable future. That means as other prices rise, your monthly payment will be consistent thanks to your fixed-rate mortgage. This gives you the peace of mind that the bulk of your housing costs is shielded from inflation.

    James Royal, Senior Wealth Management Reporter at Bankrate, says:

    A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

    If you rent, you don’t have that same benefit and you won’t be protected from rising housing costs. As an added incentive to buy, consider that today’s mortgage interest rates are lower than they have been in decades. While inflation decreases what your dollars can buy, low mortgage rates help counteract it by boosting your purchasing power so you can get more home for your money. They also help keep your monthly payments down. This is especially important during an inflationary period because you’ll want to protect yourself from the impact of inflation as much as possible.

    Ali Wolf, Chief Economist at Zondaexplains:

    “If you have cash and are expecting inflation, you want to think through where you can put your money so it does not lose value. Housing is commonly looked at as a good inflation hedge, especially with interest rates so low.”

     

    Bottom Line

    The best hedge against inflation is a fixed housing cost. That’s why you shouldn’t let it stop you from buying a home this year. Not sure where to start? Let’s connect so you have expert advice and help throughout every step of the homebuying process.

     

     

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      How to get ready for Retirement!

      How to get ready for Retirement!

      For most people, retirement feels like a long way off. But, if you don’t start preparing as early as possible, you may find yourself in a place of financial insecurity when the time does come. To avoid this, consider implementing the following tips.

      1. Calculate your target savings. In general, it’s recommended that you save between 10 to 15 percent of your income for retirement. However, you can always use an online savings calculator to determine the amount you need to save for your specific needs and goals.
      2. Contribute to your employer’s retirement savings plan. Does your job offer a 401(k), traditional IRA, or Roth IRA? Sign up and start saving as soon as they allow you to. It’s recommended to set up automatic paycheck deductions and, once the money is in your retirement fund, don’t touch it.
      3. Take advantage of employee benefits. Many employers offer matching which generally requires you contribute a certain percentage of each paycheck and your company will then contribute a matching amount with funds of their own. They might also offer health savings or flexible savings account. By contributing to these accounts, you reduce your amount of taxable income, allowing you to save more money.
      4. Pay off your debts. Start by paying off any high-interest credit card debt first. Then look at other debts, such as student loans and car payments, and make a plan for paying those off incrementally.
      5. Reduce daily spending. Although this feels like a no-brainer, spending your money thoughtfully now can make a big impact later. Seek out areas of your life where you can

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        The #1 Thing You Can Do Now to Position Yourself to Buy a Home This Year

        The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus. The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.

        One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year. According to John Burns Consulting:

        “Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.” 

        Given this situation, if you’re thinking about buying a home this year, the best thing you can do right now is use this time to get pre-approved for a mortgage, which you can do from the comfort of your home. Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:

        1. Gain a Competitive Advantage

        Today’s low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home, which is always a plus in your corner.

        2. Accelerate the Homebuying Process

        Pre-approval can also speed-up the homebuying process so you can move faster when you’re ready to make an offer. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.

        Bottom Line

        Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. Let’s connect today to get the process started.

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          Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

          When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.

          1. Gain a Competitive Advantage

          Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.

          2. Accelerate the Homebuying Process

          Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.

          3. Know What You Can Borrow and Afford

          Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach.

          Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:

          “It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

          Local real estate professionals also have relationships with lenders who can help you through this process, so partnering with a trusted advisor will be key for that introduction. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

          Freddie Mac also describes the ‘4 Cs’ that help determine the amount you’ll be qualified to borrow:

          1. Capacity: Your current and future ability to make your payments
          2. Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
          3. Collateral: The home, or type of home, that you would like to purchase
          4. Credit: Your history of paying bills and other debts on time

          While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.

          Bottom Line

          Getting started with pre-approval is a great way to begin the homebuying journey. Let’s get together today to make sure you’re on the fastest path to homeownership.

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