Real Estate Information Archive

Buying a home can be stressful (especially in a hot market). 

But you’re in luck: There are ways to combat any worries you have and make homebuying a more enjoyable journey.

Are you getting ready to purchase a home? Want to ease the stress of it all? Here are four strategies that could help.

1. Prep your finances early. Having your finances in order can help make the process significantly smoother. You should have plenty saved up for your down payment and closing costs, and be sure to gather all the documentation you’ll need to apply for a mortgage (W-2s, bank statements, etc.).
   
   
2. Communicate openly about what you want. Knowing your needs and deal breakers — and communicating them early on — is critical to a hassle-free process. We’ll go over your budget, home purchase goals and any questions and concerns you might have along the way.
   
   
3. Delegate where possible. You don’t have to do everything on your own; in fact, that could make the process more stressful. Instead, rely on the experts — your loan officer, home inspector and other pros involved in the process. Lean on us for help and support, and don’t feel like it all rests on your shoulders. Family and friends could help carry some weight, too.
   
   
4. Keep the big picture in mind. There may be hiccups along the way, but never lose sight of the big picture: your dream home and all that comes with it. Keeping things in perspective can help you weather anything that might come your way.

Get in touch so you can have an experienced real estate agent by your side and reduce your homebuying stress considerably.

It’s common for both first-time homebuyers and experienced homeowners to feel overwhelmed by the process of purchasing a house. Plus, myths and misconceptions often make the experience even more confusing.

Myths like: Renting is cheaper than buying. You need a credit score of 700 to get a loan. You shouldn’t buy in a seller’s market. Have you come across any of these?

If you’re thinking of buying this year, don’t let these misleading ideas deter you from your goals.

Myth #1: You need a certain credit score. While mortgage programs do have credit score minimums, you’d be surprised at how low those go. With an FHA loan, you may be able to get financing with a score of 500. (Just know that your score may also affect the interest rate and terms of the loan.)

Myth #2: You should only buy during certain seasons or under certain market conditions. While competition may seem fierce lately, that doesn’t mean you shouldn’t buy a house. As long as you choose a home you can afford and one that will grow in value, it’s still a smart long-term investment. 

Myth #3: It’s cheaper to rent than buy. Home prices have been rising lately, but rents have jumped significantly, too. Since homeownership allows you to build equity and wealth over time, it’s important to crunch the numbers before assuming you’re better off renting.

Myth #4: You should get a mortgage from your bank. Your bank should definitely be on the list, but don’t limit your shopping to just them. Get quotes from several banks and lenders to ensure you get the best deal.

Myth #5: You should waive your inspection to win a bidding war. Waiving your right to an inspection might help you beat out other offers, but it can also come back to bite you. Inspections often reveal costly and even dangerous defects, and you’ll want to know about these before deciding to buy.

Have questions about buying or selling a home? Get in touch today.

When you’re buying or selling a home, the finances, the inspections, and all the other nitty gritty details are important. But at the end of the day, you’re a buying a home from — or selling a home to — another human being. Making a kind gesture can go a long way in terms of enticing a seller to choose you or incentivizing a buyer to select your property. In the spirit of Valentine’s Day, here are some ways to show buyers or sellers some love. 

If you’re trying to buy a home — especially in a competitive real estate market, and especially if you’re making an offer under asking price — you could provide the seller with an offer letter that waives a few contingencies. For example, waiving your inspection contingency or at least shortening it will tell the seller that you’re serious and willing to take this risk. Your offer will stand out as one that can get done quickly and hassle-free. I’d be happy to guide you through this process.

If you don’t need some of your furniture or window coverings in your new home, why not offer to include some of them in the sale? Filling up a new home with furniture is costly, and if your potential buyers have a lot of it to buy, they may be incentivized if they know they’ll save money on furniture and decor. If it’s furniture you were planning to get rid of anyway, it also takes away the potential headache of having to figure out what to do with it. 

For new homebuyers, the down payment and closing costs can be overwhelming, and that’s before you factor in recurring costs of homeownership. If you live in a neighborhood or building that charges HOA fees, one way to incentivize buyers is to extend a credit on HOA dues. You can do it for the time of your choosing, such as six months or one year, which takes some financial pressure off the buyer. Just have your realtor check that there aren’t any issues with your buyer’s lender since some have guidelines around seller credits.

Finding the right home is still the biggest challenge buyers are faced with in today's market as is shown in the latest Confidence Index Survey.  Assuming the buyers find the "right" home with determination, perseverance and the help of a real estate professional, 88% of all transactions last year required financing to get the buyer's address on the home.  93% of first-time buyers needed financing.

Pre-approval is an essential step that needs to be handled before buyers begin searching for a home.  The benefits to the buyer fall into the category of confidence.

PRE-APPROVAL GIVES YOU CONFIDENCE

• Knowing the amount you can borrow  
  the mortgage amount decreases as interest rates rise
• Looking at the right priced homes
  price, size, amenities, location
• Comparing and identifying the best loan
  rate, term, type
• Uncover issues early that could affect the most favorable loan terms
  time to cure possible problems
• Bargaining power to negotiate with the seller and possibly, competing buyers
  price, terms, & timing
• Settlement can occur sooner after contact is accepted
  verifications have already been made
  

Items Needed for Pre-Approval

• Photo ID
• Two months current pay stubs
• Last two year's W2s
• Complete copies of checking and savings statements for last three months
• Copies of statements for IRAs, 401k, savings, CDs, money market funds, etc.
• Employment history for last two years with addresses and contacts
• Proof of commissioned or bonus income
• Residency history for last two years with addresses and contacts
• Assets for down payment, closing costs, and reserves; must provide paper trail
• If self-employed, last two years tax returns, current profit and loss statement and balance sheet; copy of partnership/corporate tax returns for last two years if owning more than 25% of company
• FHA requires driver's license and social security card
• VA requires original certificate of eligibility and DD214
• Other things may be required such as previous bankruptcy, divorce decree

Have you outgrown your home? Or has your home outgrown you and your household? Fewer and fewer families expect to stay in their first or second home for the long haul. Here are some factors to determine if you're financially and emotionally ready to sell your house:

1. Growing or shrinking household -- Are you about to welcome a new baby or take in aging parents? Maybe you're sending your youngest off to college. In any event, if your living space has become too cramped or grown beyond your needs, it may be time to make a move. 
2. Plenty of home equity -- Subtract the value of your home from the amount you have left on your loan. What's left over is the equity -- or the amount you'll have post-sale. After you sell your home, you'll be a buyer again, so having some funds to put down is key. 
3. Interest from potential buyers --You'll want to list when you know buyers are looking. Some experts say late spring is the ideal time to sell, but peak seasons vary by region. Milder weather can increase buyer interest, but that also means more competition from other sellers. 
4. Changing circumstances --Location matters. Whether your neighborhood dynamics are changing, you're unhappy with the schools in your area or a new job significantly increases your commute, your community needs to fit your lifestyle. 
5. Home improvements --Renovations may be a wise investment, but it's best to avoid listing your home in the middle of a project. If you plan to sell your home as is, completing some minor home updates such as new paint and fixtures can be a huge selling point. 

Moving is a big decision, one that requires careful consideration. If your needs have changed since you bought your home, don't hesitate to get in touch.

When people wait until summer to sell or buy a house, they are missing out on the prime springtime options. Contrary to popular misconception, spring is actually the best time to participate in the Anchorage, Alaska residential real estate market. Bonnie Mehner and Bethany Weiser with Mehner Weiser Real Estate at RE/MAX Dynamic Properties recommend getting started earlier in the year, whether you are buying or selling.

The Anchorage, Alaska Springtime Market Advantage

Why Buy a House Now?

In the unique Alaskan climate, the real estate market tends to heat up the same time the weather does. While winter turns to spring, locals decide that the end of harsh weather makes it the perfect time to relocate. Perhaps they want to move to warmer climates or have been waiting to start the moving process until the holidays are over. Either way, this results in many houses getting put on the market all at once, leaving buyers with plenty of options. Lenders in the area know that the market boom is coming, so they are willing to send more money to the Anchorage market and approve buyers for loans.

Why Sell a House Now?

Buyers know the influx of homes is coming in the spring, so this is the time when they start looking in the area. They are getting their loans approved, so they are ready and able to purchase. If you wait until summertime to list your home, you may miss out on a large pool of potential buyers, who have already struck deals in the spring.

Don’t miss out on the incredible springtime market in Anchorage, Alaska! Contact Mehner Weiser Real Estate with RE/MAX® Dynamic Properties at (907) 261-7632 to prepare now and strategize the best way to sell or buy a house. With over 50 years combined experience in the local market Bonnie and Bethany know how to target the right buyers and will advise you on the best properties that fit your needs.