Aiken at Home, Smart Home Additions, Real Estate Trends & Tips

There's a new magazine on the block.... and we're excited to be a part of it! In the Aiken at Home magazine we look forward to providing sellers, buyers and homeowners more tips and trends as an extension of our weekly videos. Pick up the inaugural copy, out now. We discuss some smart home additions and how they can be a smart move for you!

Brandi Cook and Vikki Crossland
Meybohm Real Estate

#thesearchisover​ #aikenhomesteam​ #meybohmrealestate​ #theplacetobe​ #weeklyvideo​ #tipsandtrends​ #smarthome​ #technology​ #aikenathome​ #aikensc​ #augustaga​ #csra​ #buyers​ #sellers​ #homeowners​ #listingagents​ #buyersagents​ #realestate​ #realtors​ #wesellscandga​ #licensedinscandga​ #yourhomeyourlifestyleyourteam

Charity Spotlight: Whitney Barns Group, Aiken Horse District, SC

This week Brandi and Vikki visit with Jack Wetzel of the Whitney Barns Group to discuss their mission in preserving the Aiken Horse District and how they plan to do it. Aiken is so rich in history, including the barns the group is restoring and we could listen to Jack tell us about it all day. Check out how you can help the Whitney Barns Group and more on their continuing preservation and projects!

Brandi Cook and Vikki Crossland

Meybohm Real Estate

#thesearchisover #aikenhomesteam #brandiandvikki #meybohmrealestate #theplacetobe #aikensc #augustaga #local #charity #whitneybarnsgroup #aikenhorsedistrict #horses #csra #donate #support #welcomehome #hometown #realestate #realtors #wesellscandga #licensedinscandga #weeklyvideo #localspotlight #yourhomeyourlifestyleyourteam

Visit the website at www.whitneybarns.org or their Facebook page "Whitney Barns Group"

Homeowner Equity and Wealth Accumulation

 

Homeowner Equity and Wealth Accumulation 

National homeowner equity grew in the fourth quarter of 2020 by $1.5 Trillion or 16.2% year-over-year based on a CoreLogic analysis.  The study was done on the six out of ten homeowners who have mortgages on their home. The fourth quarter of 2020 also saw the number of mortgaged residential homes with negative equity decrease by 8% from the third quarter.  Compared to the same quarter in 2019, negative equity decreased by 21%. Equity is defined as the value of the home less the mortgage owed.  Negative equity means that the homeowner's debt is more than the value of the home.  Appreciation is the dynamic that is moving homeowner's equity to the positive position. On a national basis, according to National Association of REALTORS®, annual price growth for the last ten years has been 6.4%.  In the last five years, it has grown at 7.3% annually.  According to the CoreLogic Home Price Index, home prices in December 2020 were up 9.2% from the year before. Frank Nothaft, Chief Economist for CoreLogic, is quoted as saying "the amount of home equity for the average homeowner with a mortgage is more than $200,000." Equity in a home is a significant component of net worth.  The latest Survey of Consumer Finances reports the median homeowner has 40 times the household wealth of a renter: $254,000 compared to $6,270.  According to the 2019 Survey of Consumer Finances by First American, housing wealth was the single biggest contributor to the increase in net worth across all income groups. The study also concluded that housing wealth represented nearly 75% of total assets of the lowest income households.  For homeowners in the mid-range of income, it represented 50-65% of total assets and 34% of total assets for the highest income households. Renters do not benefit from the appreciation of housing or the amortization of the mortgage which are significant contributors to home equity that results in net worth.  Examine what a down payment can grow to in seven years with a Rent vs. Own.

Brick Pond Park- North Augusta, SC

This week Brandi and Vikki head to Brick Pond Park, a 40-acre restored wetland that now functions as a storm-water treatment system in beautiful North Augusta, South Carolina. Bike, walk or run the trails, view wildlife, canoe or row boat, take a stroll along the plant identification trail and so much more... This place is cool! Brandi Cook and Vikki Crossland Meybohm Real Estate #thesearchisover #meybohmrealestate #theplacetobe #weeklyvideo #realtipsandtrends #northaugusta #brickpondpark #outdoorsy #nature #ecosystem #lovewhereyoulive #livewhereyoulove #explore #csra #aikensc #augustaga #welcomehome #wesellscandga #licensedinscandga #yourhomeyourlifestyleyourteam Learn even more about Brick Pond Park at https://www.northaugusta.net/government/city-departments/engineering-public-works/stormwater-management/brick-pond-park

Thinking of a Remodel or Addition? Have A Plan.

This week Brandi and Vikki give some food for thought if you have been thinking of remodeling or doing an addition to your home. First things, first... have plan! Brandi Cook and Vikki Crossland Meybohm Real Estate #thesearchisover #aikenhomesteam #meybohmrealestate #theplacetobe #brandiandvikki #weeklyvideo #remodel #renovation #addition #foodforthought #tips #trends #wecanhelp #homeownership #change #listingagents #buyeragents #teamwork #realestate #realtors #flips #wesellscandga #licensedinscandga #yourhomeyourlifestyleyourteam

Skip the Starter Home

 

Skip the Starter Home

For generations, people have begun their homeowner experience with a "starter" home.  Part of the logic may be that by beginning with a smaller home, they can learn what it takes to run the home and discover some of the unexpected costs that come along with it.  A slightly longer view into the future could suggest a different strategy.

As of March 4, 2021, the average 30-year mortgage rate according to Freddie Mac was 3.02%; up .37% from the week of January 7th this year.  At the same time, in 2020, the rate was 3.29% and in 2019, it was 4.41%.  That is a difference of 28 and 139 basis points.

The principal and interest payment on a $300,000 mortgage would have been $236 higher two-years ago and $44 more one-year ago.  Today's low mortgage rates are saving buyers lots of interest especially when you factor in the median tenure for sellers is approximately ten years.  Even though prices have increased over the last two years, some people may be able to afford more now with the lower rates.

Anticipating the future wants and needs now may present some opportunities for preparing for the inevitable.  By purchasing a larger home today, a buyer can lock in today's low rates and prices to allow themselves room to grow without the expenses of moving.

Each time you sell and purchase a home, there are expenses associated with each side of the transaction.  Purchase costs could be 1.5 to 3% while sales expenses could easily be 2.5 times that much.  These expenses lower the value of your equity. 

Instead of looking at the low mortgage rates as generating a savings from the payment you might normally have to make, consider it an opportunity to purchase more home that will possibly meet your needs for a longer time while eliminating the cost of selling and purchasing in the transition.

Closing Costs vs. Pre-Paids: What's the Difference?

This week Brandi and Vikki give you the rundown on closing costs and pre-paids of a real estate transaction. Sellers need to understand what buyers are asking for and buyers need to understand what to ask for and that's where we come in! Buying, selling or both? We're here for all your real estate questions and needs! Brandi Cook and Vikki Crossland Meybohm Real Estate #thesearchisover #aikenhomesteam #meybohmrealestate #theplacetobe #augustaga #aikensc #csra #homeownership #closingcosts #prepaids #buyersandsellers #themoreyouknow #benefits # closing #realtors #realtipsandtrends #realestate #listingagents #buyersagent #csra #wesellscandga #licensedinscandga #yourhomeyourlifestyleyourteam

Your Refund Could Open the Door

Your Refund Could Open the Door 

One of the silver linings to filing your income tax return is finding out that you are going to receive a refund that could literally open the door to owning a home.  If you happen to be one of these fortunate taxpayers, your next decision is what to do with it. 

With the average tax refund near $3,000, it could be the ticket to buying a home sooner rather than later.  Regardless of the size of your refund, it can be used toward the down payment or closing costs of the home.

Most people think it takes 10% or more down payment to purchase a home, but actually, it is much less because of several low down payment mortgages. There are VA and USDA mortgages that allow for no down payment for qualified buyers.  FHA has a 3.5% down payment program and FNMA and Freddie Mac have 3% down payment mortgages for qualified creditors as well as 5% down programs.

Closing costs for originating new mortgages can easily range from two to three percent of the purchase price but most lenders will allow the seller to pay part or all of them based on the agreement in the sales contract.  If you are using a VA or USDA loan, your refund could go toward paying the closing costs.

On a practical matter, if you are due a refund, have it deposited directly into your account.  It is necessary to trace the source of the funds.  Cashing a refund check and depositing the cash adds an unnecessary aging requirement.

Maybe you have the money saved for your down payment and closing costs but you have other debt that is keeping you from qualifying for a mortgage.  The IRS refund could be used to pay down that debt.  However, you need solid advice from a trusted mortgage professional before you do that.

While the average tax refund might not cover the down payment on the median price home, it certainly helps.  Your refund could make it a simple as 1-2-3 to get into a home.

1. Get the hard, cold facts for the homes and mortgages in your area and price range.
2. Get pre-approved with a trusted mortgage professional.
3. Start looking at homes.

Download the BuyersGuide and contact me at (803) 645-3325 or info@aikenhomes.com to get started.