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Date Archives: October 2021

BHHS Bay Street Realty Group Cora Bett Thomas Realty Blog Home

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October
31

The Mortgage Process Doesn't Have To Be Scary [INFOGRAPHIC]

The Mortgage Process Doesn't Have To Be Scary [INFOGRAPHIC] | MyKCM

Some Highlights

  • Applying for a mortgage is a big step towards homeownership, but it doesn't need to be one you fear. Here are some tips to help you prepare.
  • Know your credit score and work to build strong credit. When you're ready, lean on your agent to connect you with a lender so you can get pre-approved and begin your home search.
  • Any major life change can be scary, and buying a home is no different. Let's connect so you have an advisor by your side to take the fear out of the equation.
October
30

Housing Challenge or Housing Opportunity? It Depends.

Housing Challenge or Housing Opportunity? It Depends. | MyKCM

The biggest challenge in real estate today is the lack of available homes for sale. The low housing supply has caused homes throughout the country to appreciate at a much faster rate than what we've experienced historically.

There are many reasons for the limited number of homes on the market, but as you can see in the graph below, we're well below where we've been for most of the past 10 years. Today, across the country, there is only a 2.4-month supply of homes available for sale.Housing Challenge or Housing Opportunity? It Depends. | MyKCM

The Opportunity 

This lack of homes for sale is creating a challenge for many buyers who are growing frustrated in their search. On the other hand, this is a huge opportunity for sellers as low supply is driving up home values. According to CoreLogic, the average home has appreciated by more than $50,000 over the past year. And for many homeowners, that's opening new doors as they re-think their needs and use their equity to move up or downsize.

According to Dr. Frank Nothaft, Chief Economist at CoreLogic:

"The average homeowner with a mortgage has more than $200,000 in home equity as of mid-2021."

Today, many sellers are taking advantage of low interest rates and the equity they have in their homes to make a move.

Bottom Line

The biggest challenge in real estate is the lack of homes for sale, but this challenge is also an opportunity for sellers. If you're thinking about selling your house, let's connect to start the process.

October
29

Does Your House Have What Buyers Want?

Does Your House Have What Buyers Want? | MyKCM

The rise in remote work is changing what many Americans want in their homes. Many companies are choosing to delay reopening or go remote full-time, and today's buyers are looking for homes with more space to support their work needs.

As a seller, if you no longer need the extra room you have in your home, rest assured there are buyers who do.

Remote Work Is Here To Stay

Remote work remains a reality for many Americans. A recent poll from Garter, Inc. shows many organizations have not yet returned their offices:

". . . 66% of organizations are delaying reopening their offices due to new COVID-19 variants."

And it's not just companies that are choosing to remain remote for the time being – workers are seeking more flexibility. According to research from PricewaterhouseCoopers, nearly one-fifth of employees want to be fully remote in the future. The study also finds that many people are leaving jobs to seek out remote work opportunities:

"Among employees looking for new jobs, almost one in ten say it's because they moved away from the office while working remotely and don't want to go back on-site."

More Remote Work Means a Greater Need for Home Offices

That's leading today's buyers to prioritize finding homes with more space so they can comfortably work from home. The 2021 Home Design Trends Survey from the American Institute of Architects finds that 69% of surveyed individuals still want at least one office at home. However, it also shows that more people are looking for multiple spaces in their home for remote work and virtual meetings (see graph below):Does Your House Have What Buyers Want? | MyKCM

What Does This Mean for You?

If your house has extra space that you no longer need, buyers are interested, and now may be the perfect time to sell.

Your trusted real estate advisor can help you highlight many of the most sought-after features in your listing, including home offices. On the other hand, if you have extra room without a purpose, consider staging it as an area where remote work can happen. Your agent can help you with this as well by evaluating and preparing your space for potential buyers. They'll make recommendations for how to stage the room, where to draw the eye, and what other sellers are doing to make their houses stand out.

Bottom Line

With the continued rise in remote work, more buyers are looking for homes that can support multiple home offices. If you have extra room you're no longer using, consider selling. Let's connect today to discuss the unique features in your house and how you can capitalize on any extra space to appeal to today's buyers.

October
27

7 Critical Steps to Safeguard your Business and Help Avoid Potentially Devastating Financial Loss From Occurring to Clients

Heightened Discipline for Wire Fraud - North Carolina Bar Association

About two years ago, a respected industry attorney and cybercrime expert released a video, giving real estate professionals the one "100% surefire way" to protect your computer against cybercrime:

  • Close all programs.
  • Power off and unplug said computer.
  • Carry said computer to your backyard, dig a hole and pitch computer into the hole.
  • Follow by pouring gasoline on the computer and setting it on fire.

"This," the lawyer quipped, "is how you secure your computer 100% from cybercrime."

Of course there is no 100% surefire way to eliminate the risk of cybercrime.

In fact, 2020 was a record year for cybercrime with nearly $4.2 billion in reported losses, up from 2019's $3.5 billion, according to the FBI's 2020 Internet Crime Report.

The pandemic has certainly played into the hands of the cybercriminals with more people working from home and systems going remote. One-third of all cybercrime over the last five years occurred in 2020, including $213 million in real estate-related crime losses.

Why Hackers Love Targeting Real Estate Professionals

Real estate fraud is particularly pervasive for a number of reasons: Cybercriminals love targeting small- to mid-sized companies, such as brokerages. Real estate agents handle large sums of money; work off multiple devices; deal with sensitive financial data; and interact with multiple players during the transaction, including buyers, sellers, agents, escrow agents, lawyers, mortgage brokers and banks — all of which makes them the perfect target.

The nature of our industry's remote work makes agents and transaction coordinators particularly vulnerable.

Moreover, the average real estate customer doesn't experience a real estate transaction frequently and, therefore, can be more susceptible to fraud.

So what can real estate professionals do to protect themselves and their customers? They can help to prevent cybercrime before it occurs and results in devastating consequences. Here's how.

How Real Estate Agents Can Help Prevent Wire Fraud

In 2020, NAR data revealed that 13,638 people fell prey to real estate wire fraud, representing a 17% increase over 2019.

Even more alarming, title insurance professionals reported cybercriminals attempted to trick employees into wiring funds to a fraudulent account in one-third of all real estate and mortgage transactions, according to ALTA's 2021 Wire Fraud and Cyber Crime Survey. Fortunately, the thieves were only successful in a little over 8% of these attempts, thanks to proper training and education.

Typically, a cybercriminal targeting a real estate transaction will assume the identity of the title, real estate agent or closing attorney. Just before the deal closes, they will forge an email, which is then sent to the unwitting buyer with new wire instructions. Before anyone has detected what happened, the cybercriminal diverts the buyer's funds into their bank account.

These emails can look quite convincing and indeed appear identical to those sent from one of the trusted players in the transaction. However, real estate agents can take action to help prevent this type of wire fraud from occurring:

STEP 1 - Send Earnest Money Digitally

Emailing sensitive data like banking accounts and social security numbers can leave clients vulnerable to identity theft and loss of large sums of money. However, there's an easier, more convenient alternative to mailing checks and wire transfers, both of which can result in fraud.

Earnnest provides another option to buyers who opt to pay their deposit directly to the escrow holder via a digital transfer using dotloop's safe, secure Earnnest integration. Unlike the manual means of depositing a paper check or a wire transfer, Earnnest processes the funds using a bank-level encrypted transfer, the same high-level security implemented by banks.

Here are the three key steps to how an Earnnest digital transfer works:

1. SELECT ESCROW HOLDER

The real estate agent selects their escrow holder with Earnnest. If the escrow holder is not in Earnnest's network, the agent can invite them to enroll.

2. REQUEST EARNEST MONEY

When it's time for the buyer to pay their earnest money, the agent sends the client a request for earnest money via dotloop, which auto-completes the buyer information to kick off the process.

3. COMPLETE THE DIGITAL TRANSFER

The buyer receives the request, pays the earnest deposit through Earnnest digitally, and the agent and buyer receive a payment receipt email when it's complete.

Unlike wire transfers, digital transfers through Earnnest allow agents and buyers to request and pay earnest deposits from anywhere while protecting their sensitive information. The system automates receipts, provides payment tracking and verifies funds, ensuring a swift delivery and speedy transaction process.

Earnnest takes several steps to ensure the security of all parties. First, the portal fully verifies the identification of the buyer and verifies funds. Also, Earnnest never stores banking information, so the buyer's sensitive data is never visible to anyone other than the bank and the escrow office where it's sent.

The entire process occurs within a matter of seconds, and it's free to real estate agents, costing the buyer only $15.

STEP 2 - Confirm by Phone

Most agents know this, but it bears repeating: Always advise clients to confirm wire instructions by phone using the contact information shared verbally, not via email. Hackers can spoof signature blocks in emails so convincingly, there have been some cases in which clients have called fictitious numbers to verify the wiring instructions only to unwittingly surrender their sensitive bank data to the hackers on the other line.

The best approach is to give the client the phone number of the escrow or title officer at the beginning of the transaction and verbally communicate any changes to the points of contact before any funds are transferred.

Agents should warn all parties involved in a transaction to remain suspicious and vigilant regarding any information exchanged via email, and clearly post these warnings in listing agreements and other visible means of communication.

STEP 3 - Use Secure Wi-Fi

Always use a secure Wi-Fi connection — not a public, unsecured Wi-Fi connection that hackers can easily breach. While it can be tempting to do business over a cup of coffee at the local coffee shop, Wi-Fi connections in public places are favorite targets of hackers.

STEP 4 - Don't Overshare on Social Media

Cybercriminals are notorious for gleaning key information from agents' social media accounts that they, in turn, use to forge a convincing email or identify their next potential victim.

As Chris DeRosa, NAR's member information and eCommerce product lead, points out, "Realtors® are very public people and social media makes it easy for hackers to learn about you. With the right logos and branding, information on listings and clients, photos and domain names that are very close [to your real one], someone could easily convince the target user that the communication and request is legitimate."

Be conscious of what you post on your social media channels and ask yourself, "Is this information a hacker could use to forge an email in my name?"

STEP 5 - Practice Safe Email Habits

Agents and clients can further protect their emails by enabling two factor authentication and, if using Gmail, clicking on the Details link at the bottom of the page in the inbox to show any recent activity, such as from a foreign country. If your email provider offers alerts of any unusual activity, make sure to set these notifications to "on."

As a general rule, always think before clicking on a link. Agents should particularly pay attention to referral emails, which might look like they're from a colleague or a client in another state.

Avoid sending personal information in emails or texts, such as social security numbers and bank account numbers, and regularly purge unwanted email.

Most importantly, avoid and caution clients to avoid clicking on any embedded links and attachments within emails if not from a verbally confirmed, valid source. Hackers often use an infected link or attachment to install malware that can devastate personal finances or wipe out a business's entire operation.

STEP 6 - Update Computer Security Often

It's important to ensure your computer is protected with the latest security updates. On Macs, updates can be installed using the Mac App Store or by choosing System Preferences and then Software Update from the Apple menu. On Windows 10, updates can be found in Settings. Select Update & Security and then Check for Updates.

You'll also want to install and frequently update virus protection as well as make sure your system firewall is enabled.

STEP 7 - Practice Good Password Hygiene

Keeping up with passwords can be a royal pain with the number of apps and devices the average user interacts with daily. However, it's critical that real estate professionals make sure they're not using passwords that can be easily hacked. Avoid using obvious password phrases and the same password for all your systems. Some experts recommend using long phrases of 20 characters or more. Also, consider using an encrypted password vault that stores and encrypts your passwords.

If You Suspect Fraud, Take the Following Steps:

  • Notify the FBI at https://www.ic3.gov/. There's a critical 72 hour window after a breach, in which victims need to notify the authorities to optimize their chances of recovering diverted funds.
  • Notify all parties involved in the transaction to stop any further spread of fraudulent activity.
  • Change all usernames and passwords.
  • Review your insurance policy and contact your insurance company immediately.

Blog post sourced from dotloop.

October
26

There Are More Homes Available Now than There Were This Spring

There Are More Homes Available Now than There Were This Spring | MyKCM

There's a lot of talk lately about how challenging it can be to find a home to buy. While housing inventory is still low, there are a few important things to understand about the supply of homes for sale as we move into the end of the year.

The Number of Homes for Sale Usually Peaks in the Fall

In the residential real estate market, trends generally follow a predictable and seasonal pattern. Typically, the number of homes available for sale (or active monthly listings) peaks in the fall. But in a chapter where so little feels normal, the question becomes: should we expect a fall peak this year?

If we look at the active monthly listings for 2021 (shown in the chart below), we'll see that the number of homes on the market has increased fairly steadily since spring this year. The realtor.com data shows we're still seeing an increase in active inventory month-over-month. While that gain is a bit smaller month-to-month (see August to September in the chart), September numbers are still up from the month prior.There Are More Homes Available Now than There Were This Spring | MyKCMThe important takeaway here is the latest monthly numbers show growth. At the end of September, buyers had more options to pick from than they did this spring. That's encouraging for buyers who may have paused their search months ago because they had trouble finding a home. Danielle Hale, Chief Economist at realtor.com, sums this up nicely:

"Put simply, this September buyers had more options than they've had all year and while that's typical of early fall, that's not what happened in 2020. Still, it's important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year." 

As Hale says, a fall peak in inventory is in line with typical seasonal trends. While it's impossible to say for certain what the future holds for housing inventory, we do know both buyers and sellers have opportunities this season based on the latest data.

What Does That Mean for You?

If you're thinking of buying a home, rest assured you do have more options now than you did earlier this year – and that's a welcome relief. That said, today's market is still highly competitive. This isn't the time to slow your search. It's actually the season when the number of homes available for sale tends to peak. Focus on the additional options with renewed energy this season and be prepared for ongoing competition from other buyers.

If you're considering selling your house, realize that while growing, inventory is still low. Selling now means you'll be in a great position to negotiate with buyers – and competition among buyers is good news for your bottom line. Eager buyers will likely be motivated to act before the holidays, giving you the benefit of a fast sale.

Bottom Line

Whether you're buying or selling, there's still a chance to make your goals a reality this season. Let's connect so we can discuss what's going on with the local market and current trends and what they mean for you.

October
25

Your Home Equity Is Growing [INFOGRAPHIC]

Your Home Equity Is Growing [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you're a homeowner, today's rising equity is great news. On average, homeowners have gained $51,500 in equity since this time last year.
  • Whether it's funding an education, fueling your next move, or starting a business, your home equity is a great tool you can use to power your dreams.
  • Ready to sell? Let's connect to talk about how you can take advantage of your rising equity to reach your goals.
October
23

Homebuyer Tips for Finding the One [INFOGRAPHIC]

Homebuyer Tips for Finding the One [INFOGRAPHIC] | MyKCM

Some Highlights

  • The best advice carries across multiple areas of life. When it comes to homebuying, a few simple tips can help you stay on track.
  • Because of increased demand, you'll need to be patient and embrace compromises during your search. Then, once you've fallen in love, commit by putting your best offer forward.
  • If you're looking to buy a home this year, let's connect so you have a dedicated partner and teammate to help you find the one.
October
22

Celebrate Fall With Family Fun Activities

Autumn is sometimes that overlooked period between the last of summer's outdoor activities and hectic preparations for the holidays. But fall offers its own opportunities for rewarding family fun. Check out these leisurely ways to make some happy autumn memories.  

  • Check Out the Foliage In most areas of the country, you are no more than a couple hours drive away from some vibrant fall foliage. If you need ideas, get online to find out where you can best view the best of fall's amazing colors. Pack a picnic and head out for an afternoon of splashing about the falling leaves.
  • Pick Pumpkins …but not from the local market. Look for a fall festival or farmer's market where you can get your fill of fun activities and head home with the best of autumn's harvest, including the perfect pumpkins.
  • Go Apple Picking Apple picking season usually starts in August and peaks through September, but there's still time to squeeze in a trip to a nearby apple orchard during the first half of October. You can take photos, pick apples, eat cider doughnuts and stock up on homemade apple cider.
  • Enjoy Oktoberfest Somewhere in your area, you can probably find a commercial or sponsored Oktoberfest celebration, featuring authentic German foods, a beer and/or cider garden, guides in German folk dress and a variety of games and shopping opportunities the whole family can enjoy.
  • Take a Haunted Road Trip For a good, friendly scare, find a haunted house to explore during the month of October. If all else fails, tour a cemetery at night and make up your own ghost tales.
  • Make Costumes Forget the commercially-made costumes at the store and brainstorm some ideas of your own. Find the fabrics and accessories you need and spend some happy family hours making your costume wishes come true.
  • Get Cooking Spend some time in the kitchen together making pumpkin spice muffins, pumpkin pies or even some pumpkin-based soup. You'll be making memories your kids will remember all while enjoying the fruits of your labor.
October
21

Looking To Move? It Could Be Time To Build Your Dream Home.

Looking To Move? It Could Be Time To Build Your Dream Home. | MyKCM

While today's supply of homes for sale is still low, the number of newly built homes is increasing. If you're ready to sell but have held off because you weren't sure you'd be able to find a home to move into, newly built homes and those under construction can provide the options you've been waiting for.

The latest Census data shows the inventory of new homes is increasing this year (see graph below):Looking To Move? It Could Be Time To Build Your Dream Home. | MyKCMWith more new homes coming to the market, this means you'll have more options to choose from if you're ready to buy. Of course, if you do consider a newly built home, you'll want to keep timing in mind. The supply shown in the graph above includes homes at various stages of the construction process – some are near completion while others may be months away.

According to Robert Dietz, Chief Economist and Senior VP for Economics and Housing Policy for the National Association of Home Builders (NAHB):

"28% of new home inventory consists of homes that have not started construction, compared to 21% a year ago."

Buying a home near completion is great if you're ready to move. Alternatively, a home that has yet to break ground might benefit you if you're ready to sell and you aren't on a strict timeline. You'll have an even greater opportunity to design your future home to suit your needs. No matter what, your trusted real estate advisor can help you find a home that works for you.

Bottom Line

If you want to take advantage of today's sellers' market, but you're not sure if you'll be able to find a home to move into, consider a newly built home. Let's connect today so you have a trusted real estate advisor to guide you through the sale of your house and discuss your homebuying options.

October
20

The Big Question: Should You Renovate or Move?

The Big Question: Should You Renovate or Move? | MyKCM

The last 18 months changed what many buyers are looking for in a home. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:

  • 70% of respondents want more outdoor living space
  • 69% of respondents want a home office (48% wanted multiple offices)
  • 46% of respondents want a multi-function room/flexible space
  • 42% of respondents want an au pair/in-law suite
  • 39% of respondents want an exercise room/yoga space

If you're a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:

  1. A possible desire to relocate
  2. The difference in the cost of a renovation versus a purchase
  3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

In either case, you'll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.

Home Equity Is Skyrocketing

The record-setting increases in home prices over the last two years dramatically improved homeowners' equity. The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:The Big Question: Should You Renovate or Move? | MyKCMOdeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:

"Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high."

As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.

If you decide to renovate, you'll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you'll still need to mortgage the remaining difference between the down payment and the cost of your next home.

Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you'll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you're one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you're one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

First Step: Determine the Amount of Equity in Your Home

If you're ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you'll need two things:

  1. The current mortgage balance on your home
  2. The current value of your home

You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.

Bottom Line

If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home. If you decide making a move is right for you, let's connect!

October
19

Click Here to View the Q3 Market Report

October
19

Click Here to View the Third Quarter Market Report

October
18

Don't Wait for a Lower Mortgage Rate – It Could Cost You

Don't Wait for a Lower Mortgage Rate – It Could Cost You | MyKCM

Today's housing market is truly one for the record books. Over the past year, we've seen the lowest mortgage rates in history. And while those rates seemed to bottom out in January of this year, the golden window of opportunity for buyers isn't over just yet. If you're one of the buyers who worry they've missed out, rest assured today's mortgage rates are still worth taking advantage of.

Even today, our mortgage rates are below what they've been in recent decades. So, while you may not be able to lock in the rate your friend got recently, you're still in a great position to secure a rate well below what your parents and even grandparents got in years past. The key will be acting sooner rather than later.

In late September, mortgage rates ticked above 3% for the first time in months. And according to experts throughout the industry, mortgage rates are projected to continue rising in the months ahead. Here's where experts say rates are headed:Don't Wait for a Lower Mortgage Rate – It Could Cost You | MyKCMWhile a projected half percentage point increase may not seem substantial, it does have an impact when you're buying a home. When rates rise even slightly, it affects how much you'll pay month-to-month on your home loan. The chart below shows how it works:Don't Wait for a Lower Mortgage Rate – It Could Cost You | MyKCMIn this example, if rates rise to 3.55%, you'll pay an extra $100 each month on your monthly mortgage payment if you purchase a home around this time next year. That extra money can really add up over the life of a 15 or 30-year loan.

Clearly, today's mortgage rates are worth taking advantage of before they climb further. The rates we're seeing right now give you a unique opportunity to afford more home for your money while keeping your monthly payment down.

Bottom Line

Waiting for a lower mortgage rate could cost you. Experts project rates will continue to rise in the months ahead. Let's connect so you can seize this opportunity before they increase further.

October
15

Fall Paint Color Guide

A paint refresh is the easiest way to transform a space without committing to a complete design overhaul. If you're craving a deeper, more decadent atmosphere, adorning your room with fall hues will create a luxe, seasonal space. Whether you want a deep pecan hue, a rich, burgundy color, or the gleaming color of golden hour, a fresh application of paint can bring these hues into your home. The below paint colors are a curated selection to bring cozy fall tones into your own home—and can also make a statement all year round.

Benjamin Moore – Bear Creek 1470
A deep, gray-brown color, Bear Creek is a rich tone that is a beautiful contrast to creams and creamy whites. In addition, Bear Creek brings in tones of winter woods and adds a layer of coziness to your living areas. This deep tone pairs well with a warm white or cream color for the trim and ceiling or can be continued on the trim, but a different sheen, like semi-gloss, is recommended for trim.

→ Where to Use It: A living room or great room

Benjamin Moore – Sequoia 1245
This reddish-brown color is both a neutral tone and also brings drama. Sequoia is softer than a burgundy but is deep enough to create a moody space. In addition, Sequoia's dustiness is neutral enough to pair well with many complementary colors. For a trim pairing, Sequoia looks stunning with an off-white or warm white paint selection.

→ Where to Use It: A library or study

Benjamin Moore – Metallic Gold 2163-40
This shimmery, soft brown has pink undertones, which brings a glowing ambiance to any space. Earthy yet elegant, Metallic Gold makes a room look effortless and inviting.

→ Where to Use It: A dining room

Farrow & Ball – Hague Blue
This dramatic, intense blue is a timeless color with green undertones. In addition, Hague Blue's deep, pigmented hue makes a dark room feel intentionally cozy and moody.

→ Where to Use It: A powder bathroom

Farrow & Ball – Deep Reddish Brown
Both luxurious and soothing, Deep Reddish Brown, is a warm tone with chocolatey undertones. Deep, warm and welcoming, Deep Reddish Brown will add richness and drama to walls, doors and trim.

→ Where to Use It: A stairway

Farrow & Ball – Tanner's Brown
This dramatic hue is a strong dark brown that is almost black in low lighting. However, in a well-lit space, it reads as brown. A rich, warm hue, Tanner's Brown brings drama and warmth to a room.

→ Where to Use It: Interior of a fireplace

Sherwin Williams – Cotton
This warm white will make your space feel effortlessly layered and cozy. It's soothing neutral hue makes any room feel relaxed and inviting. It's the perfect backdrop to layer in neutral or colorful furniture and accessories and to begin your day on a crisp, calm note.

→ Where to Use It: A bedroom or great room

October
14

Very Superstitious: Home Traditions That Are Still Alive Today

Superstitions are often over the top. There's probably nothing magical about a rabbit's foot, and walking under a ladder or breaking a mirror won't lead to doom. But then again, trying to bring a little luck to your house can't hurt.

There are traditions that promise to bring good fortune to your new home. And even though these rituals are just old tales, following a few can give you a sense of peace and comfort. Here are a few:

Hang a horseshoe. There are a lot of theories as to why horseshoes bring good luck, with some sources claiming it dates back to ancient Egypt. There's even debate as to how a horseshoe should be placed on a wall. Some say the shoe should point upward, U-shaped, so that the luck doesn't drain from the shoe, while another theory says pointing it down allows the luck to pour down on people.

Buy a new broom. Legend says your old broom not only cleaned up dust and debris, but also collected your bad experiences, and you don't want to bring those into your new home. This could be a trick by the broom industry, but if you follow it, at least you'll have a nice, new broom.

Pick the right day. Did you know moving on a Friday or Saturday is said to be bad luck? It's an old superstition that may derive from the fact that those are common moving days when it's hard to find a mover. Moving on a rainy day is supposedly risky, while in Chinese culture, the No. 8 is believed to bring good fortune, so planning a move on the eighth might be a good idea. According to Indian culture, Thursday is the best day to relocate.

Bread and salt. These are traditionally given to new homeowners as a gift, with the bread representing all the wonderful food that will be enjoyed in the household while the salt ensures flavor, not just to meals but to life in general.

Ring the bells and shine a light. These are easy ones. First, after moving in, open all your home's windows and ring a bell in each room to ward off old, negative energy. Then complete the cleansing by lighting a candle at night.

Let's connect when you're ready to buy or sell!

October
13

What's Causing Today's Competitive Real Estate Market? [INFOGRAPHIC]

What's Causing Today's Competitive Real Estate Market? [INFOGRAPHIC] | MyKCM

Some Highlights

October
11

111,285 Reasons You Should Buy a Home This Year

111,285 Reasons You Should Buy a Home This Year | MyKCM

The financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.

According to the latest research from the National Association of Realtors (NAR):

"Homeownership is a key pathway to building wealth and narrowing the racial income and wealth inequality gap. Housing wealth (equity) accumulation takes time and is built up by price appreciation and paying off the mortgage."

An increase in equity builds the wealth of the individual that owns it. This wealth can be passed down to future generations. The Federal Reserve in an addendum to their Survey of Consumer Finances explains:

"There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift."

The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:

"In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children's educational success by paying for college or private schools, which can in turn increase their children's ability to accumulate wealth."

Here's a look at how equity can build your wealth over time when you own a home.

Equity over the Last 30 Years

The NAR research reveals that the average gain for homeowners over the last five years was $139,134 and over the last 10 years was $218,505. Looking even further back in time, the article says:

"Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258."

Homeownership builds household wealth which also enables households to more easily move to the home of their dreams. As Mark Fleming, the Chief Economist at First American, explains:

"As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity."

If you missed out on the equity gains over the last 30 years, don't fret. Experts are still calling for substantial growth in equity over the next five years.

Looking Forward at the Equity To Come

The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home values (and therefore equity) to increase as follows:

  • 2021: 11.74%
  • 2022: 5.82%
  • 2023: 3.94%
  • 2024: 3.56%
  • 2025: 3.55%

The survey estimates a 31.8% cumulative appreciation over the next five years. Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example:111,285 Reasons You Should Buy a Home This Year | MyKCMThat's a potential increase in household wealth of $111,285 over five years.

Bottom Line

Owning a home is one of the best ways to grow your wealth over time. House wealth can impact generations. In many cases, the largest single investment a household has is their home. As that investment appreciates in value, the financial options also increase. Let's connect when you're ready to own a home!

October
8

What Do Supply and Demand Tell Us About Today's Housing Market?

What Do Supply and Demand Tell Us About Today's Housing Market? | MyKCM

There's a well-known economic theory – the law of supply and demand – that explains what's happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is very high and supply is very low, prices can rise significantly.

Understanding the impact both supply and demand have can provide the answers to a few popular questions about today's housing market:

  • Why are prices rising?
  • Where are prices headed?
  • What does this mean for homebuyers?

Why Are Prices Rising?

According to the latest Home Price Insights report from CoreLogic, home prices have risen 18.1% since this time last year. But what's driving the increase?

Recent buyer and seller activity data from the National Association of Realtors (NAR) helps answer that question. When we take NAR's buyer activity data and compare it to the seller traffic during the same timeframe, we can see buyer demand continues to outpace seller activity by a wide margin. In other words, the demand for homes is significantly greater than the current supply that's available to buy (see maps below):What Do Supply and Demand Tell Us About Today's Housing Market? | MyKCMThis combination of low supply and high demand is what's driving home prices up. Bill McBride, author of the Calculated Risk blog, puts it best, saying:

"By some measures, house prices seem high, but the recent price increases make sense from a supply and demand perspective."

Where Are Prices Headed?

The supply of homes for sale will greatly affect where prices head over the coming months. Many experts forecast prices will continue to increase, but they'll likely appreciate at a slower rate.

Buyers hoping to purchase the home of their dreams may see this as welcome news. In this case, perspective is important: a slight moderation of home prices does not mean prices will depreciate or fall. Price increases may occur at a slower pace, but experts still expect them to rise.

Five major entities that closely follow the real estate market forecast home prices will continue appreciating through 2022 (see graph below):What Do Supply and Demand Tell Us About Today's Housing Market? | MyKCM

What Does This Mean for Homebuyers?

If you're waiting to enter the market because you're expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.

Bottom Line

The truth is, high demand and low supply are what's driving up home prices in today's housing market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise. If you're a potential homebuyer, let's connect today to discuss what that could mean for you if you wait even longer to buy.

October
7

The Main Key To Understanding the Rise in Mortgage Rates

The Main Key To Understanding the Rise in Mortgage Rates | MyKCM

Every Thursday, Freddie Mac releases the results of their Primary Mortgage Market Survey which reveals the most recent movement in the 30-year fixed mortgage rate. Last week, the rate was announced as 3.01%. It was the first time in three months that the mortgage rate surpassed 3%. In a press release accompanying the survey, Sam Khater, Chief Economist at Freddie Mac, explains:

"Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June."

The reason Khater mentions the 10-year U.S. Treasury yield is because there has been a very strong relationship between the yield and the 30-year mortgage rate over the last five decades. Here's a graph showing that relationship:The Main Key To Understanding the Rise in Mortgage Rates | MyKCMThe relationship has also been consistent throughout 2021 as evidenced by this graph:The Main Key To Understanding the Rise in Mortgage Rates | MyKCMThe graph also reveals the most recent jump in mortgage rates was preceded by a jump in the 10-year Treasury rate (called out by the red circles).

So, What Impacts the Yield Rate?

According to Investopedia:

"There are a number of economic factors that impact Treasury yields, such as interest rates, inflation, and economic growth."

Since there are currently concerns about inflation and economic growth due to the pandemic, the Treasury yield spiked last week. That spike impacted mortgage rates.

What Does This Mean for You?

Khater, in the Freddie Mac release mentioned above, says:

"We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year."

Nadia Evangelou, Senior Economist and Director of Forecasting for the National Association of Realtors (NAR), also addresses the issue:

"Consumers shouldn't panic. Keep in mind that even though rates will increase in the following months, these rates will still be historically low. The National Association of REALTORS forecasts the 30-year fixed mortgage rate to reach 3.5% by mid-2022."

Bottom Line

Forecasting mortgage rates is very difficult. As Mark Fleming, Chief Economist at First American, once quipped:

"You know, the fallacy of economic forecasting is don't ever try and forecast interest rates and or, more specifically, if you're a real estate economist mortgage rates, because you will always invariably be wrong."

That being said, if you're either a first-time homebuyer or a current homeowner thinking of moving into a home that better fits your current needs, keep abreast of what's happening with mortgage rates. It may very well impact your decision. Let's connect when you're ready to buy or sell!

October
6

4 Tips To Prep for Your Home Sale This Fall

4 Tips To Prep for Your Home Sale This Fall | MyKCM

Even in a hot sellers' market like today's in which homes are selling so quickly, it's still important to make a good first impression on potential buyers. Taking the time upfront to prep your house appropriately can bring in the greatest return on your investment.

Here are four simple tips to make sure you maximize the sale of your house this fall.

1. Price It Right

One of the first things buyers will notice is the price of your house. That's why it's important to price it right. Your goal in pricing your house is to draw attention from competing buyers and let bidding wars push the final sales price up. Pricing your house too high to begin with could put you at a disadvantage by discouraging buyers from making an offer.

Your trusted real estate advisor can help you find the price for your home that reflects the current market value. Lean on your agent to help you with this crucial first step.

2. Keep It Clean

It may sound simple, but keeping your house clean is key to making sure it gets the attention it deserves. As realtor.com says in the Home Selling Checklist:

"When selling your home, it's important to keep everything tidy for buyers. . . . Remember to take special care with the bathroom, making sure the tile, counters, shower, and floors shine."

Before each buyer visits, assess your space and determine what needs your attention. Wash the dishes, make the beds, and put away any toys. Doing these simple things can reduce any potential distractions for buyers.

3. Make It Easy To Visit

Giving buyers the opportunity to see your house on their schedule can be a true game-changer. Buyers are less likely to make an offer if it's difficult to plan a tour or they can't easily fit it into their schedule. Making your house available as often as possible helps create opportunities for more buyers to fall in love with your house.

Rest assured your trusted real estate advisor will keep your health and safety top of mind when buyers tour your home. Agents use the latest guidance to stay up to date on any protocols and sanitization recommendations.

4. Help Buyers Feel at Home

Finally, it's important for buyers to see all the possible ways they can make your house their next home. As the realtor.com article puts it:

"The goal is to create a blank canvas on which buyers can project their own visions of living there, and loving it."

An easy first step to create this blank canvas is removing personal items – pictures, awards, and sentimental belongings – from your space. If you're unsure what should be packed away and what can stay, consult your trusted real estate advisor. Spending the time on this step can pay off in the long run, as the 2021 Profile of Home Staging from the National Association of Realtors notes:

"Eighteen percent of sellers' agents said home staging increased the dollar value of a residence between 6% and 10%."

Bottom Line

To make the most of today's sellers' market, avoid the temptation to skip over the essential preparation steps. Let's connect today to discuss all the ways you can maximize your home sale.

October
4

Reasons Renters Buy [INFOGRAPHIC]

Reasons Renters Buy [INFOGRAPHIC] | MyKCM

Some Highlights

  • When deciding whether you should rent or buy, make sure you're considering these factors.
  • Buying a home means consistent monthly payments. Homeownership also helps to build your wealth. And owning a home gives you greater flexibility than renting.
  • If you're ready to take advantage of the perks of homeownership, let's connect to explore your options.
October
2

4 Tips to Gradually Minimize Clutter

We all know that minimizing clutter can make your home more manageable and more welcoming. A clutter-free home can also help with your mental health. Thankfully, keeping your home clutter-free doesn't require extensive decluttering sessions all the time. These four tips can help you minimize clutter gradually without a lot of effort.

One in, One Out Rule
Your home has a finite amount of space. Use this rule to help yourself remember that. Every time you purchase an item, a like item needs to be tossed, recycled or donated to ensure that you don't clutter your home. This can help you evaluate items based on need and it can even help you spend less money. That new dish towel is a great purchase since it can easily replace the worn and stained one you want to discard, but do you really want a new dress enough to donate one you currently own?

Gift Activities as Presents
A great gift comes from the heart, and time spent together can be far more valuable than a toy that will soon be forgotten. To keep clutter at bay, consider gifting activities instead of physical presents. This is especially great for children who can get overwhelmed with too many toys. Gift a trip to the zoo, movie theater or a theme park instead. For adults, gift a cooking class, tickets to an art museum or go on a trip together.

Read the Room
They say the best defense is a great offense. Instead of trying to declutter constantly, read your room and fully evaluate if you have a spot for an item you want. That souvenir figurine may look beautiful on the shelf at the gift shop, but if you can't think of exactly where you would happily display it at home, it may become cluttered quickly.

Keep an Outbox
Keep an outbox at all times so you can be constantly decluttering items that no longer serve your needs. Did you try on a shirt that you don't like anymore? Toss it in the outbox. Did you find a duplicate kitchen utensil hiding in the drawer? Into the outbox it goes. Keeping an outbox on hand ensures you don't forget about items when it is time to donate them.

October
1

Don't Tackle Selling Your Home on Your Own – an Agent Can Help

Don't Tackle Selling Your Home on Your Own - an Agent Can Help | MyKCM

If you're looking to maximize your sale and minimize your effort, you need to work with a real estate professional. In a sellers' market like today's, it can be tempting to list your house on your own – known as For Sale By Owner (FSBO). But the truth is, a real estate professional can save you time and money by managing every step of the process, from pricing your home to reviewing documents and handling negotiations.

Before you decide to sell your house on your own, here are five reasons why working with an agent is your best bet to maximize the sale of your home.

1. First impressions are everything – and an agent knows how to make a great one.

Prepping a house for sale requires a significant amount of time and effort, even though it may seem simple at first glance. Doing it right so it stands out takes expertise and an understanding of what buyers are looking for. An agent considers things like:

  • Should you take down any personal art or pictures?
  • How much landscaping should you invest in to boost your house's curb appeal?
  • What wall colors are most appealing to buyers?

An expert real estate advisor relies on their experience to answer these questions and more so you don't invest in the wrong things. Your time and money are important – you shouldn't waste either.

2. Agents have tools to maximize the number of views your home gets.

Put plainly, the more buyers that view your house, the better your return will be. In our current market, homes are receiving 3.8 offers on average per sale, according to recent data from the National Association of Realtors (NAR). While that's promising for the sale of your home, it's important to understand your agent's role in bringing buyers in.

Agents have multiple tools at their disposal – from social media to agency resources – to ensure your home is viewed by more prospective buyers. Leveraging the tools available to your agent and your agent's expertise may help boost your sale price as well.

3. An agent won't miss anything in the fine print.

Your agent can also save you time by taking any guesswork out of navigating the required documentation. Today, more disclosures and regulations are mandatory, meaning the number of legal documents you need to juggle is growing.

Because there's so much to take care of, it can be hard to truly understand all of the requirements and the fine print. That's where an expert advisor can truly shine. They've been through the process before and can be your guide to avoid any costly missteps.

4. Expert advisors know the market and how to price your home.

Another way your agent maximizes the sale of your home is by making sure it's priced right. Real estate professionals have the experience to compare your house to recently sold homes in your area. They also understand the market at large and can factor in any upgrades you've completed to your home. Combining these factors is the key to making sure your home is priced to move quickly – and at a competitive price.

When you FSBO, you're operating without this expertise. Even with your own research, you may not find the most up-to-date information and could risk setting a price that's inaccurate or unrealistic. If you price your house too high, you could turn buyers away before they're even in the front door. This could also cause problems when it's time for the appraisal.

5. Your agent will be an expert negotiator.

In addition to their experience navigating sales, real estate professionals understand how to negotiate every aspect of a deal. They also know all the parties that will be involved with the sale, including:

  • The buyer, who wants the best deal possible.
  • The buyer's agent, who will use their expertise to advocate for the buyer.
  • The inspection company, which works for the buyer and will almost always find concerns with the house.
  • The appraiser, who assesses the property's value to protect the lender.

An agent relies on their experience and training to make the right moves during the negotiation. They'll know what levers to pull, how to address each individual's concerns, and when you may want to get a second opinion. Selling your house as a FSBO means you'll need to be prepared to have these conversations on your own.

Bottom Line

Selling a house takes time, effort, and expertise – don't go at it alone. Let's connect to make sure you have an expert on your side to make the most of your sale

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