Jan 8, 2017|
Opening doors for buyers and sellers with critical and credible information on the real estate market. Fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This is real estate today. The number one real estate show on. The radio. Welcome to real estate today backed by the professional experience of real tours from across America. Where your most trusted source on the radio for up to date real estate information. Real estate today is the official radio program of the national association of real tools and Israel for members in your neighborhood. Happy new year I'm Steven gas quake and I'm glad you're with us. Especially because today we're kicking off 2017. With a special series of programs are walking you. Through every step of realistic. Starting out today show you how to buy a house so many people would ask me that question over the years and today. They all own houses I'll walk you through it too with experts from every part of the home buying process. How to buy a house is straight ahead but first let's go to the realistic to the newsroom. Bill Thompson Carville I didn't America's home prices hit a new high in October. According to the latest S&P case Shiller US national home price index. Prices posted an annual gain of five point 6% compared to September's increase of five point four. Yale professor Robert Shiller co creator of the index told Bloomberg News these latest numbers may not be good predictor of what's about it happened in the market. Well I think that it turned by the numbers we're reporting October. Before the trump collection. An area looks different now there might be until boom coming. Jurors quick to point out though he has not predicting a trump boom he says that's just one possible scenario for 2017. Homebuyers or more resilient than you might think Israel is a brokerage registry and they recently surveyed would be buyers and on the rising mortgage interest rates are not during the morning from pursuing a home of their own in fact. Only about two and a half percent of those responding to the survey said they have decided to postpone the search. While 24% of the rising rates have out of a new urgency to their search an equal numbers say the rise in rates simply does not impact their home buying decisions. And about one inform buyers admits to taking a little more time in their home search in case rates go back down again. Nearly four of every ten millennial live with mom and dad or other relatives and according to Census Bureau data. The highest percentage since 1940. The Wall Street Journal reports that even with an improving economy younger Americans have largely stayed put. Real estate experts quoted by the journal says tough underwriting standards for credit may be blocking many younger Americans from entering the housing market. The journal also points to studies to show Malone meals are delaying marriage and kids another factor in household formation and home buying. Along declining cash sales may be flattening out according to the latest figures from core logic. The company reports that the share of all cash sales in September was 31 point 7% down only one point three percentage points from September 2015. Core logic now estimates that by mid 20s19 the cash share will be back at its pre crash average rate of 25%. At their peak in January 2011. All cash transactions accounted for 46 point 6% of home sales. Coming up for half an hour we'll take you to the final frontier in home renovations. Stephen back to you thanks don't. As we enter a new year we're going to take you step by step. Through the process of buying selling and investing in real estate. Today's show starts. At the very beginning how to buy a house and in this year and in every year in fact. One of the biggest barriers to homeownership is saving up for the down payment. Many people think they need more than they really do but sometimes even saving up for a small down payment seems pretty tough. So how do you say a lot of money in a little time. Let's ask an expert. Joining us now is Laura Adams award winning author and podcaster. Who helps consumers improve their personal finances by making money easy to understand. She's the host of the top rated money girl podcast and the author of several books including money girls Smart moves to grow rich. Laura welcome to real estate today. Might wonder thanks for having made we're delighted you're here so Laura. Walk it's so important to. Its holdings is security and peace of mind I really feel like saving. And having Matt back up in the bank. Can make all the difference and your happiness because you don't feel like you're boxed and you're locked into any given situation and he had an opportunity that comes up like. Many cross country to take a different jobs. Aren't going to enter into self employment. He got other opportunities that you wanted to hate and you can do it when you know that you got a savings and money in the bank he don't have that financial back at bear. It can be very difficult and make a change when you make you change or want to make a change. I ultimately think Tex leaving it a lot more than just money in the bank that it's it's kind of a psychological. Baca. That gives you freedom engaging the ability to make changes your life. When you need to make them or you want to make them. Awesome lore nor know there's not just one answer to this but let me ask you. How can I save as much money as possible in the shortest possible amount of time. You know for me to heat wave that I saved is shopping my big purchases and it's never been easier to shop. So I would say you can't go would just store you can look at actual product in stores. But how did online we need to hand and and they agreed to make any that it because. Now we need to save time by eight shopping online and a lot of cases it's faster it's more efficient and been battling traffic parking and all of that. You stakes are kept on which actually trying to borrow it and you know hopefully don't get sidetracked by other things. Get free ship bringing. All of these great things and there's been many wonderful places where you can easily compare prices which. So do mean that just think Packard admitted to compare prices online. Can save a lot of money coverage saying. I don't go out and support your local you know mom and pop store or if there's particular story that you love its local great go for it. But if it's a product that pretty ordinary course it's something that kind of a commodity products. Shopping online can really pay off. That's wonderful you know lord has a question I've been meaning to ask you and that is. I've heard experts like yourself say before that if you water really saved some money and do it quickly and do it efficiently. You should have a direct deposit to a savings accounts so you never eat the money but it. My question is. Many bank account linked everything. So you have your savings. And then you have your checking and you can just go online and transfer money back and forth should you put a wall between your savings account. And your daily spending account. Yes if you are attempted to make those transfers on your tentative dip into your savings account. Really can't make that did you a separate account that may mean going to a different institution and it could even mean putting your money electing a short term CD that would really help you stay away from that it could be a three month six month a very short term CD. If that will make a difference for you you know all of need to tell these states can be linked to you know even if you go with a separate institution and you can link yet in many cases slopes. It can be challenged you really put up a real wall were just talking about bank account first since. Other types other counts like CDs but you know no eighty doesn't another tactic I learned recently. We'll have to urge your account I'd have to change it to let's say you put your money in a separate institute sent off your husband and your significant other. Your toward on the count to bitch ain't it and they are that kind of kind of extreme but that's one way to really put up a barrier -- don't trust yourself. And Felix you need somebody else to help you keep your hand out at your bank account. You want a person of course the that they will give you the couch or if you really need this later really just part of irritating to tell me first authentic period of time. Or even you know all of a period of time that your candidate and then there. Is there any sort of rule of thumb about how much. Money I should have saved up and by that. You know mortgage officers like to see anywhere from three months to six months savings are enough to pay all your bills. In the bank. When they grant you that mortgaged what would be a good savings target. Say three months worth of bills six months worth of bills. Yeah I have always told folks that six months of them very nice goal Nicky can do three months that's fantastic that's three to six months. But if you are in a situation where let's say you've got a family that only one bread winner and you've got one parent that staying at home we can't teach and you know losing. One job could really be devastating for your family you may want to have more like nine months even a year's worth of savings in the bank. And your savings to cover your essential living expenses stokes. Covering your all of your debt payments to what you we need for crude. Rent insecure not homeowner. So what are their potential living expenses. It does depend on your family situation to think about. What's your needs are key do you have may be looking at job but not quite secure here in an industry that's not quite. Stable right now maybe you want to think about going out for that year's worth of savings. How most people. I would say six months has a fantastic goal to meet her emergency savings. Laura great advice on savings. And thanks for joining us today. And Laura Adams host of the top rated money girl podcast. Coming up unrealistic today what happens in a home buyers first meeting with their real tour and lots of questioning on my part where I take lots of notes that's next on our special show. How to buy a house. Real estate today. Connecting you with the real estate professionals. Every week. And we're back when our special show how to buy a house. All about making 2017. The year you make the jump. From renting or from living with relatives. In to a home of your very own. Let's start up a conversation with a very simple truth. It's really not that hard millions of people buy houses. Every year and chances are. You can too. Now you will need a few things good credit a solid jobs some money in the bank N a real torque. A local market expert to help walk you through the entire transaction. So let's talk to someone now who can walk us through the transaction. Joining us is Mary dykstra real Torre and Parker owner with MK be real tours in Roanoke Virginia. Mary's been helping buyers and sellers or thirty years. She's a past president of the Virginia association of real tours end. She's currently serving as any airs 2017. Regional vice president. For the mid Atlantic states Mary welcome to realistic today and happy new year. Thanks so much Stephen F. Happy new year to year and we're looking forward to a great 2070. So Mary say that I am a first time home buyer and I come to you for help. Know what will you tell me to help get me started on that path. Well beaten them barely buried first thing when you call me on the phone and I am thinking about by Hal. In garment and Q you can give me half an hour 45 minute your time. So we can sit down together and basically begin an interview process. Not only the line learn about you at the bar higher you get to learn about me for real. Because the relationship. And make sure yet. Collect so urged begged come into the off. OK and so imagine that at that first face to face meeting Mary. The question of a mortgage comes up. I announced that one of the very first thing she should do. Is to talk to a reputable lender now some folks come in when they have already had a relationship with a lender that absolutely aren't a lot of first time buyers can never read them. Thought about that all their thinking about. It is pretty picture on the Internet at new homes and I would say to take it to the next step which is to get free free. In different areas of the country is extremely competitive market for buyers. And that you don't have a strong pre approval when you which are offering and he may be competing against other buyer you're going to be at the bottom of the article spoke. Arm yourself with what you need to be a winner when you do aren't out. OK Mary what's next week start again part of that Byron processed. What's important Q what do you media talk about the long term that nobody should look. About purchasing a house per year to year term most people are not look or they are actual homeowners shall we need to make sure to that home. Is gonna meet their need for several years back so again lots of questioning on my part. Where I take lots of notes. My job to sort them on track we go to the propped up. Well this is quite a comprehensive first meeting Mary let me ask you about the money because home buyers have to write a lot of checks the earnest money deposit. And then later the down payment and closing cost. How you handle votes. Again when I'm sitting down with pepper kind buyer one of the things that I insist that we do is to go through all standard forms that they may need. When we find that dream home. And we won't go through them clawed back on page by page and I explain. What they're not distracted by their desire for the new house at this point. What it means to win their gonna have to put money in what form it could do it can be a cashier's check and they walked clothing but the personal check. By the way answered about it now. But I explain all that as we go to that forms and that often touches on almost everything you just asked about. Well Mary this is so interesting because. You're going through so many things in that first meeting and you haven't even talked about finding a house yet. They kind of put that for the lender usually because today over 88 kind of fires start out on the Internet. That where they can look at that and look at the pretty pictures and I'll let Napa but of course we Al qualified real tour guide. Debt and pretty pictures don't I'll leave that up so they'll probably come in and play but what about that one what about one. And sometimes they've identified something that billions in their price range and it's a good fit for their opinion but sometimes not so much. Well Mary we still have a lot of ground to cover could you join us again and our next hour and will continue our conversation and glad. Well thank you so much Marie will talk to you soon. Mary dykstra real chore and partner owner with MKB realtors in Roanoke Virginia the past president of the Virginia association of real tours and and they are 2017. Regional vice president for the mid Atlantic states. Coming up on realistic today. We ask potential homebuyers how much money they think they'll need for a down payment of 20% very much you have to 3% down 3% correct but he right. Or not. The stories coming right up on our special show how to buy a house. But first it's time for our Smart home technology report. It today. A quick look at the new year and what could be a great resolution for all of us. And that is starting the new year by locking your front door. To the bad guys knock the door with a durable though I'm talking about the door that leads to all the technology in your house. Making a resolution to change every password you half. For all the Internet connected tech you use every day in your house. Now there's a lot to debt. Way too much for just one day but maybe we could stretching out over a week to make it more manageable so let's try that day by day. Day one you'd probably start with you were computers. Your Smartphones and your tablet. That's pretty obvious right OK but it's a great place to start. Then date to I'd move to any account where you keep money. Your online checking and savings accounts on line for a one K and IRA account brokerage account can also. Credit cards. Day three anyplace you'd spend money Amazon eBay. ITunes. The Google play store Xbox PlayStation. Get those passwords changed to dig for and here's one people don't tend to think about Social Security. If you have an account in my Social Security dot com. Change that password too because of all the things you need to keep really say if you're Social Security info is way up there. Okay Dave five utilities. Your wireless phone account your home phone account. Whole New York cable TV plans go online and change all those passwords to. Day six all of your Smart home tech. Thermostat webcams. Doorbell. All of it. And finally on days seven. Consider changing the password on the one thing that connects all the Internet connected devices in your home. Your router or be careful with this one because if you mess it up your Internet is DO way. But take your time and remember. As soon as the router password is changed you'll also have to change the password to every device that connects to. A lot of work yet it's worth it. Again yes. But just think if you do and change all your password the first week of every year. Well you've taken a positive step towards making your home and everything and it's safer. But connected version of a massive debt. And that's Smart approach. To your Smart. Real estate today because knowledge is power. And we are back. And our special show how to find out how this all about how to leave behind that rental car. For the basement in your parents' house and get into a whole month of your very home. Now in just a few minutes we'll talk about the down payment how much do you need that's coming right up on our special show how to buy a house. It's right after we check in with so Carlson in the realistic today newsroom I don't even. Despite whatever troubles it's had twice sixteen was housing his best year in a decade says Freddie Mac's economic and housing research group. Now controlling seventeen repeat that success. The Freddie Mac group's year end forecast sees a more mixed picture in the new year. They worry that rising mortgage interest rates could slow or even threatened to reverse housing is momentum. Yet in the end they remain optimistic note that the fundamentals favor improvement in housing markets and once the initial shock of higher interest rates wears off. Growth will resume your garage is now the final frontier. The final frontier in home renovation reports the New York Times. Indeed the times reports of the garage is quote emerged as something worthy of turning into a show peaks. And increasingly homeowners are calling on professional garage make over artist. But it doesn't come cheap according to experts who talk of the times garage upgrades can range from a few thousand dollars to more than 50000. Coming up in half an hour why one expert says don't sweat higher mortgage rates. Stephen thank you thanks bill. Continuing now with our special show how to buy a house. A step by step guide on how to make it happen this year. You know research shows the biggest barrier to homeownership. Is coming up with the down payment. It can be tough especially for young people hoping to own a home of their own. Our national correspondent meg McCloskey joins us now with more on the down payment in how people are paying it down I'm meg. Hi Stephen. With the nonpayment really merit to bury. One is saving up the money. And the others knowing how much you really need so I had people from all across the country what do you think it'll take. Being sure that I can make the mortgage payments with a third of my and come and that I had the down payment of at least 1% twenty Chris I'm pretty much the efforts 5% down 20% correct. Is guest let. Many people put out a lot less than 20%. It's one of these biggest meth about the home buying prime. No matter their age education or income many people just don't know about lowdown payment options. Even people who really understand the process like Patrick a 39 year old from Virginia. My understanding of a down payment is basically if you're gonna get Hollande the bank put lights you to have some. Money going into it says show me you're invested rather than just here you go here's your home hopefully you pay back one day. That's totally right. But when how much of a down payment he means I would guess somewhere between twenty and 40% somewhere in the ballpark for sure it's maybe a little harder now. Actually it's a little easier to get a mortgage rate now than what. And get that. What if I told you than in 35 years of any our research to be some average median down payment has been 5%. For first time buyers. And today it could be as low as three point. Wow you see. Back commune that off guard is very surprising as a matter of fact he gave my host so right now maybe after the bridges ousted. Facts that's out a young professional from California. He shows that knowing you don't always need to make a huge down payment could definitely encourage people like camp to get in the game. But he had the same time I don't know what interest rates could be on that you know I could be up the roof it could be very. It's it it has is up and downs and also is out of financially be a nice balance. A balance between the down payment and long term mortgage payments is really important. Including for Rickie a renter from Missouri who shares the same concerns. For her it's not just about getting a great deal up front on the down payment it might impact may decision. But it still would take a lot of thought about. What that means your life mean financially over the course of the mortgage not just right there at the beginning at any time you finance the more you finance does. Beer payments are going to be it may extend the period of the loan. Which can be dangerous when you have a large lot. Especially when you consider that some low down payment mortgage options require mortgage insurance which could add up over time. I know this economic kind of scary when you start to crunch the numbers. Say is feared Farley and let's see an average home in this area well. All home in this scarier looking at a quarter million dollars. And if you're gonna try to finance all of that even if you're fighting yet for thirty years that's not a small mortgage payment. That could be true and Rickie long term planning is important. But how do you possibly get over that initial hurdle of having enough money for the down payment in the first place. Well if you've got it saving. About three quarters of first time buyers he's saving for the down payment this past year. But for some hoping to buy especially from running Els. We Amy though little help from mom and dad take mark for example a homeowner from New York we actually gifted many from Maine my parents help us by. That's huge. Mark's situation has not uncommon. A lot of people in fact about a third of the millennium. Received assistance for a parent or relative in order to buy their first home. But remember Alex the guy who was so surprised about the potential 5% down payment. He wants to be able to phone his parents' footsteps and do it all on his own. Mere hours what they want help from them just because I see how hard they work for their stuff and actually having a house under their name. To me it's like it's like wow that I'm on the year I. Are if you could do happen to you can't do. Especially if you can get past 20% mess. If you are looking to bite you could talk it over with a real art. They can introduce you to some lenders who can help you determine how much you can comfortably afford and hopefully help you get preapproved. Back in the realistic today studios now with meg McCloskey make great report. But I'm fascinated that so many people are really holding on to that idea. Of needing 20%. Down. That's right Stephen and conception can be stopping qualified young people from getting into the market. People who think that they need at least 50000 dollar down payment when in fact they might need under ten and that really change things. It sure could well mega I sure hope more people take that first step. And he with her options are yeah are you talking in Steven banks meg thank you. Coming up front realistic today a national mortgage expert tells us what three things you must happen. To get home. He Triad is very important to start their mortgage security don't call my home buying German that's next on our special show. How do buyouts. This is real estate today. 100%. Real estate 100% of the time. And we're back with our special show how to buy a house it's all about making a house a home. Your home in 2017. Know most of us don't have enough money to buy a home all cash. If you do good job but most of us need a home loan a mortgage. And knowing about mortgages what to look for and how to get ready to apply for one. Is a crucial part of the home buying process. So let's talk mortgages 2017. Now. Within expert joining us is Mike Dawson vice president of single family strategy and policy at Freddie Mac. Freddie Mac of course is the government sponsored enterprise which keeps the money flowing in mortgage markets all across America might welcome to realistic today. Thank you Steven on the look forward to the discussion assessed and. We're glad you're here now Mike. People who have applied for mortgages before no about something called the tried yet. Your credit your income your savings those three things together are key to getting a mortgage tell us about that. Sure you you hit it just right Stephen and the Triad is very important to start mortgage security I'll call my home buying journey. Thank you gotta ask for a related here crediting compensating. His first. King understand it and understanding about your financial house he's your financial house in order. And what are your credit score if you haven't been done understand. Your credit score you haven't sent check your credit score and last year he is important to do so. And if you're looking to improve your score credit score there are options such as working live and OP housing counseling organization. Con helping new beef up your credit score will be (%expletive) your credit literacy. Because that is a key components. Being able to take this journey. What kind of credit score doing need. To get our home loan in America in 2017. There is no single score that. An individual is going to need however. The higher the score. Generally gonna give you a slightly better mortgage rates of this three kind of mortgage mortgages available a mortgage providers available in the market today. You have government provided mortgages such as FHA and VA. And you have conventional mortgages provided like a firm from. Like offerings from Freddie Mac. So the betting your credit score is. They better have the opportunity you'll have within the mortgage space. That's her get back to the key component of understanding what you scoring in the future if it's on the lower end of the scale on the lower side of maybe. 600 credit score he may be best to take a look at how you can improve that score. Interest stink now let's talk income. People with any income can buy a house as long as the house is proportionate. To how much money they may. That is correct. There's so understanding the components that how much how much whom you can actually afford. Comfortably afford I should say its because. Then you did is one of those components of the go home buyer a journey. Because there's not only the initial purchase set that up that home hit it off of the ongoing maintenance and upkeep of the home itself. Cannot take reserves that they conditional. Money that it were to maintained at home over time. There's many mortgage calculators out there and there's many ways of looking at. And and getting a better understanding. Of where you would be as an individual be comfortable in what size home in what size mortgages be comfortable. Acquiring here. OK now what are your savings account. Some people will save up just enough money to buy a house and use every single penny to get into a place. As we know that makes lenders really nervous they'd prefer to see you move into the place and still. Have a comfortable savings account left why. Hot day because it's yes for those unexpected. Payments such as a pure water heater or a blow up court yet to replace the heating system or get to replace the roof. Work you have to replace appliances. You wanna be comfortable you can hope you can maintain and hold onto that home over a long period of time. So you don't wanna spend it to you put it every last dollar that we're toward your mortgage. Payment you wanna provide an Abbott bought her from your savings account to ensure you can get two goes unexpected costs. Or maintenance costs as a worker homeownership. You know something I'm noticing here Mike is. By allowing a 3% down payment and by allowing lower fight goes course. It seems you're just trusting people. Get a strike and we offer through our own advisors suite of tools we make it easier Curlander customers to work with consumers. To go through the air and the eligibility origination process. So both the consumer and the lender. Company's confidence and that alone can be made and along can be maintained over time. Well Mike thank you thanks for explaining the importance of credit income and savings to getting a mortgage and thanks for joining us today. Look even thank you very much and thank you for the opportunity. Mike Dawson vice president of single family strategy and policy at Freddie Mac. Coming up on realistic today New Year's resolutions for home buyers. How to get ready and stay on track that's next on our special show how to buy a house. If you love listening to talk about real estate and join the conversation. Fine really T today radio on FaceBook. We can't wait to hear from you that's real estate today radio on FaceBook. This is a real estate today. Location. Location. And information. And we're back with our special show how to buy a house. So here we are a brand new year and let me ask have you made any resolutions. And have you already broken any. Well I hope not. But as we wrap up the first hour of today's show we wanted to leave you with a few New Year's resolutions. Designed to help you get ready to buy a home of your own in 2007. Team. So let's run down the left half now and half at the end of our next power. Resolution number one I will start saving for a down payment. I know this when sounds tough but maybe not as tough did you think research shows most people start saving for a down payment. Only six months before they buy a house. And also down payment requirement are lower than you might think. As low as 3%. Of the purchase price so if you wanna buy a house start saving right now. Okay resolution number two I will get my credit in the best shape possible. Now just like saving this one could take a little tot. You wanna look at your credit score first and see where you stand above 700 or even above 750. You're in great shape but if you're below that you might want to check your credit report very carefully. Make sure there are no mistakes. No addresses where you never lived. No credit card accounts she never had that sort of thing if you do find a mistake get to work fixing it. By contacting the three credit reporting companies Trans Union Equifax Experian. And try to get that incorrect information taken off your credit report. Okay resolution number three I will find a real sore who has a perfect fit for me. This is a big step because you'll be working very closely together ask friends and family which real tort they used and given McCall. Try to talk to three or four and sit down with each one and talk about your plants from buying a home. Who you like to see who clicks with view. And what you find that perfect fit they can help you with the next step. And that's resolution number four I will get preapproved. For a mortgage. Your real to work can refer you to trusted mortgage lenders or you can find one yourself. Either way this is huge for three reasons. First if you don't talk to a lender you don't know how much how most you can afford. You might be looking at places that are way too expensive too if you're not preapproved you make an offer sellers won't take you seriously. And they might ask that you dude get preapproved. And that's wasting time. And three if you're a competitive market and everyone else is preapproved but you were not. Most sellers won't even look at her offer so getting preapproved. Is really important. And what you are resolution number five I will not go on a spending spree on credit. Nothing can Pritchard pending mortgage at risk faster then suddenly buying a new car. New furniture horror great big brand new home theater system. On credit. That could change your financial picture so much the mortgage offer will disappear. Best bet once you're pre approved by nothing until a year in the house. Okayed a five resolutions and if you stick to him you'll be in great shape to buy a house in 2017. In our next hour five more New Year's resolutions for buyers as we continue our special show. How to buy a house. If you'd like to hear more realistic today's special show how to fire house. Either stay tuned or join us online at our new web address radio got real tool. And from all of us here realistic today thank you for listening and happy new year. If you're a realtor you can put the entire real estate today's show on your website. That's really speak show on the Radio One 100% free to NAR members just go to our new web address. Radio dot realtor and click how realtors. This is. Real estate today. The number one real estate show on the radio. Welcome back to real estate today. Back to try to professional experience of real tours from across America where your most trusted source on the radio for help today real estate information. Real estate today is the official radio program of the National Association of Realtors. And Israel tour members in your neighborhood. Hi again I'm Stephen gas great and happy new year. We're glad you're here as we kick off 2017. With a special series about how to do real estate the right way. From behind to selling to investing we'll have a at all starting today we're at our special show how to buy a house. Coming up expert advice on how to finally. Home the home of your dreams but first let's go to the real estate today newsroom with Phil Thompson cargo type Stephen. Affordability remains a big concern among homebuyers especially with mortgage interest rates now on the rise. But Jill Schlesinger CBS news business analyst and one of our favorite guest here on the show puts it in a positive perspective. A couple of months ago she says if you got a 200000 dollar mortgage at three and a half percent. Net monthly payment was just under 900 bucks a month. At four and a half percent which a big move him it's 1000. Thirteen. Dollars now I'm not saying everybody can pull in that extra 115 bucks a month there's no but. A lot of people can't and the economy is slowly improving and if your wages are rising enough you should be able to still afford it. As for rising home prices Schlessinger said on CBS this morning good. Taking inflation into account house prices are still about 16%. Below where they work in 2006. After raising interest rates in December the Federal Reserve suggested and it's been commonly believed that there will be three more such rate increases in 2017. But the economist at Fannie may don't think so. They say in the company's December economic development summary. That they believe quote the Fed will likely be in wait and see mode given the substantial policy uncertainty meaning. It's anyone's guess with the new administration a new congress will do that could impact the economy. Fannie Mae's economists say they anticipate to increases each in 2017 and 2018. Coming up and half an hour more tough real estate news. Even button. Thanks bill. We begin 2017. Many people who watch housing say it could be a pretty normal year. Economists and business analysts say based on the numbers real estate is expected to chart a steady. Slow. Upward pace in the coming year with no real huge up or down. It could be to return to a relatively. Normal real estate market. Let's talk about that now would an expert joining us is Andres Kerr about Joseph Burgos economist at Moody's analytics. Andres covers the US housing market residential construction and US regional economies. Andres thank you for joining us on realistic today. Credit. So Andres what is your take on real estate in America in the coming year com ordinary what do you think. We're still relatively optimistic so I would say we believe the housing market is going to stay calm and it's going to continue. Recovering at approximately. The same page but it did last year. We do have some upside risks for increased home sales in the and housing demand but mostly we expect to abrupt increase in home sales and home health crisis. Proportional to what we've seen in the past couple of Beers. Interesting. Let's start with home prices Andres. What are you looking at in 2017. In terms of the value of my home and my real estate investments. Sure there at two policy aspects which are going to a some what canceled out. The first is the Federal Reserve will be a hiking short term rates in the coming year. And that looks at some upward pressure on mortgage rates could also add possibly as well pressures from larger federal budget deficit so was rising mortgage rates will be the downside pressure. The upside pressure will be death to the federal government will be doing some deregulating in particular they will be. Diluting many of regulatory precautions about the Dodd-Frank act towards mortgage lending. And that will presumably lead twenty increase from the pool of potential mortgage borrowers so I would say those two things would tend to cancel out. What we will continue seeing however. Is fairly stronger than an average income growth and that will live our opinion that helped increase of how can demand and will lead to a continuing increase in home sales. So Andres if I own a home in America right now. By the time next year wife sees some price growth some value growth. Definitely our house prices have been increasing between drive and 6% for the past. Year year and a half and we don't see any reason why they would go into reverse. And they will continue increasing. Currently have a lot of homeowners are holding back from the housing market in terms of putting their warmups for sale. Most likely because they want to wait some time more so that they can at least go recover or maybe even get an increase. The whole housing belt that they may have had at the top of last decade's. Housing bubbles so will definitely see in the coming year. An improvement in the the number of homes put up for sales based on the expectation of rising house prices. Interest earning of course another factor in it. Increasing the number of homes that are for sale across America. Is of course new home construction. You think the builders were really ramp up in 2017. There will definitely do their best. Now what they're out single family home construction can and can accelerate. That's another question altogether nationally we're seeing the industry operating. Actually. Very close to full capacity. And that's mainly because construction laborer is getting very hard to find especially for a skilled construction I'm. Professions such specialty trade contractors such as plumbers. Electricians and and so on so the capacity constraints on the industry are probably the main barrier and why we think of that of residential construction especially for single family homes. Will continue to increase. Steadily but will have a difficult time in accelerating. I see another big issue of course is. The mortgage interest rate we play. So what are we looking at bear when it comes to 2017. We expect. They're gonna grow a little bit gonna rise a little bit but. How far what do you think Andres. Welcome they've already risen more than a little bit what happened with the November elections was that the bond market. Decided that it needed to price in the possibility of a much larger federal budget deficit. In coming years and so as a result. Treasury yield so I jumped substantially. And that dragged up mortgage rates Whitman backed mortgage range slumped. Increase by something like like 85 basis points between late October and December. Now you're going to get. I'm much more gradual increase in interest rates over the coming here but you're still going to get some increased. If only because the Federal Reserve will be tightening they believe that. The economy is starting to get close to full capacity and that calls for tighter monetary policy. So overall. Eight call my 2017. It. Led by a rather good job outlook. And hopefully causing more home sales and causing an increase in home prices as well set up pretty good way to coming up. That is correct I should add of course that because at that willow will tighten. They increase in house prices will gradually start to slow down starting in 2018. IC. Well not a bad outlook under is when you look at everything we've been through of course in the last ten years we can certainly take a column year let's back that's quite a welcome. Yes. Well under is really thank you so much for joining us on the show today we appreciate your insight into what to expect in the coming year should. Andre is Kerr about Joseph Burgos economist at Moody's analytics. Coming up unrealistic today. A realistic pro explains how to write a winning offer. You can ask them if we're advantage of the offer to accommodate the fact he may need to put a roof on and you're kids. That's next on our special show. How to buy out. Real estate today. Connecting you with the real estate professionals. Every week. We're back. Put our special show how to buy a house. All about making 2070. The year you. Make it happen a show filled with expert advice on how to find a house how to decide whether it's the right house and how to pay for. We're going to continue our conversation about all of that now with a realistic professional. Joining us is Mary dykstra real sore and partner owner with MK be real tours and Roanoke Virginia. Mary's been helping buyers and sellers for thirty years. She's the past president of the Virginia search usually a real tour and currently she's serving. As in nearest 2017. Regional vice president for the mid Atlantic states. Mary welcome back. Seat and I'm glad to hear we're glad you're here so Mary. In our last conversation we went through the first meeting with the clients and everything that happens at that meeting. So now let's go out and opens some doors we find our house and I think it's the one now. Side by side with you what's my first move. I can week edit the wind and when we looked at that cascade and we work bringing out things that might affect. Cost to the homeowners at what I mean by that is. I'm not a home inspector I'm not going to tell you that your replaced 22 years old and need to replace. But. I will point out a route to look aids. Because in my market. Is the root river we gained you don't get have to ask to have it replaced as part of the inspection process. So you know that because we're gonna have to just be offered to accommodate the fact you may need to put a root or many European. Tour event. A lot of discussion that we have that we're actually in mapped property while the buyer has start in the garage openers bank Boyd Lila how. RC. To marry in a competitive market I noted some real tours. Have to deal with client who say let's just skip the home inspection. What your take on that. Not my favorite thing to have someone do it again it embalmed home. And it depends on the buyer let's say you've got a buyer couldn't stand the contractor they had been a long while we're looking at how to. They have seen their house and the other offers coming in. And dad says I got that it's okay. The medication error we don't want without inspection. But it almost all cases I certainly encouraged buyers that happens back. Maybe you can tell our listeners who haven't gone through the home inspection process. What happens and why it's so important. Well again different markets have different home inspections standards. So. What happens in the home inspector will comment he's going to be looking for structural mechanical. Electrical. Plumbing the act. Now my contract in in Virginia. Breeds that those items just because the parents and of their functional life that doesn't mean necessarily that the so again remember we did that don't work up front to sort of determined in general age on that chemical compounds. But he's going to be checking everything going through looking at a turn your heating your error your route your electrical plumbing. We can't go back and talk about cosmetic and looked like you know we didn't do a good job outlook and who wouldn't aren't whether it be staying on the rug. That's cosmetic that was our job and we were in their luck and don't get to tag add up opponents. Now after the common direction is Don your client has some decisions to make. About whether or not to move forward to where they're not to have the seller do you all sorts of repairs that sort of thing is it possible in Virginia. Based on the home inspection to just say no we don't want it walk away. Not in in mind market now what happens is you have to get the shot or the community. To make the repair. And that means the entire world so let's say to our discussions they kept 5000 dollars were appear Ers. Our contract had limited the sellers mandatory liability to the album out. But Republican senator buyer no way I would have taken Iraq for finding might have I doubt about there's work to repair. At that point the buyer can make the decision I want to open land animals make repairs after closing or I don't want it in more. But it just sellers willing to make all the repairs. Then it goes on the clothes and a buyer took up a walk. Now let's talk about the appraisal Mary if the appraisal comes in in the value of the house is more. In the value stated in your ratified contract well good for the buyer but it is less. There's some talk in to be done right. There is and again that's. I'm an important part of an initial offer Europe and Arab agent should be talking to you about the comparable talking to you about app market value. And can you occasionally meant swan yes. But you shouldn't. And documents that kind of proudly I have not and the critical failure to this point but it can happen your right. How do you and your client arrive at a price. In Euro offer. Well remember back when we are looking at a lot of homes. We're teaching that client the value of our market by actually getting in those homes talking about. The price where it stands in the market is to come worked more or less. Of course I'm gonna do the comparable for them before we make the off. So they'll have a professional overlay. But when I first meet the first time buyers I tell them by the time you're ready to make an offer on home. You're going to know that it's a good value. Because that's how much homework or can do to get there cannot and just kept me count and it seems to really reassure them they like that. That's just wonderful warm area are really appreciate you joining us. In walking us through the process of buying a house. I'm delighted to have been here even and I. So it'd been helpful broke out there let him and I encourage you to investigate bank account and 2070. Graded by Mary thank you. Mary dykstra real torrent partner owner with MK be real tours in Roanoke Virginia past president of the Virginia association of real tours. In any r.s 2017. Regional vice president for the mid Atlantic states. Coming up on realistic today. How the home inspector can help you decide if it's a good house or not the number one problem with Holmes. This moisture penetration. That's coming up on our special show. How to buy a house. But first it's time for real knowledge. A special segment on realistic today in which we ask a top realistic professional. Journalist or industry expert a tough question designed to give you a complete understanding. Of the issues you need to know about. And today we're looking at credit where the national expert. Jerry debt Weiler is the director of market education at NAFTA which helps consumers and business owners manage their credit. Gerri welcome to realistic today. What Jerry today's question is for all our listeners whose credit. Took a huge hit after a short sale or foreclosure during the economic downturn. Jerry how Long Will those events dragged down their credit scores. Get the good news is that most of you negative information by law must be removed from your credit report in seven years there's some types of information. Like certain types of bankruptcy to remain on it for ten years. Unheeded judgments pure hate in accordance secret camp and hasn't been resolved the current remain on their longer. Information seven years and you'll see in the past year Q is take credit scores and temperature increase she's so tightly held that. That the average hiker scored nationwide is now it's 695 which is her record high. The worst teen consumers are recovering from most so if you haven't checked your credit report recently each. By all means do this. Something I do once a year and a I have found some serious mistakes and my credit report it on I'm I'm someone who paid attention credits so he can't that the annual credit report dot com is the federally mandated. Web site where you can get a recap keep your credit report from. Each credit bureau check call to read it again maybe they're different they don't share information with each other if there's a mistake in my dispute and make sure the information accurate map today especially if you're thinking about getting a mortgage your bride home. Of course she can get your credit report. For free once a year but not your credit score. So how do you go about that. Who went to mortgaged most of lenders ever going to rely on but the fight goes score. So a lot of time just a lot of great place check of free credit score that's one of the things that we do it man. Now that you probably can get one to your credit card company and other web site. And that's not a bad idea monitor your credit but for a mortgage in particular there's going to be a certain person. The Tyco escorted cues from mortgage applications so that might be a situation where you wanna go and spring for a up tyco's score might Tyco dot com is the place where you can purchase fat score and then see what the lenders. Wolf C network TV ninety appear in the ballpark. Jerry Jeff Carter the director of market education that now. Helping consumers and business owners manage their credit. This is really easy today. All real estate all the time. Welcome back to real estate today. I'm Stephen gas way and today we're rolling through the steps on how to. Finally get into a home. But you're very well. And our special show how to buy a house. Dedicated to making 2017. The year you make the jump from renting to owning a home. The first part of our special series on real estate in the new year how to buy a house. Continues. Right after rejecting the bill Thompson's in the realistic today newsroom. I don't I Stephen. The general downward trend in foreclosure activity continued in November according to the latest figures from black Knight financial services. The company says foreclosure inventory fell below the 500000 mark for the first time in nearly ten years. I don't expect to seek continued dramatic declines though. Liked my points out the quote annual improvement in mortgage delinquency rates is beginning to slow as the market normalized. The burgers in Indianapolis is that wages are rising. The bad news is that like many cities home prices are rising faster. Realist a professional tell the Indianapolis Star the the depth threatens to push the city's housing market out of reach for many would be buyers. For an elbow according to Adam data solutions may. In county Indiana remains one of the nation's most affordable markets. Stephen back to you thanks don't. Continuing downward our special show. How to buy a house and right now we're going to examine one of the biggest parts of any home. The home inspection. Designed to help you know whether it's a good house or not. Let's talk about the home inspection now would an expert. Joining us is frank lashed the executive director of the American society of home inspectors. Known as actually. Passion is the oldest professional organization of home inspectors in North America. And it celebrating his 41 anniversary this year. And frank has been an ashy certified home inspector for over 25 years frank welcome to realistic today. Thank you student to be here we're glad you're here first of all frank happy new year to you happy new year Q2 and all your guests both thanks very much frank. So frank if I embody my first house or for that matter my 101. The home inspection is always really important but in your own words frank tell us why. Will nobody likes surprises when they buy something and how old some very complicated machine that has a lot of parks and so you want to be. Assured that you're buying something good. IC. Now frank when you roll up to a house to do a home in action. That the buyer has asked you to do tell us what number one on your list and why is that number one. Will he does very first thing is totally owned the land around helps is it down lol is there a water source nearby and like a river or creek. And what's the elevation of the property. That's critical because for number one problem with Holmes it's moisture penetration. And moisture can be. Or he could be moisture from three pork. Which is like mold mildew. Interesting now how about other exterior elements frank liked. The roof and the windows things like that. Sure from the exterior we wanna see what the world looks like. Probably initially with binoculars or if it's high at all. Or certainly we'd like to go up on Larry the weather permits so we wanna check the condition of the roof shingles the next single is deciding. And really important is that chimney. In the recent which in use so important is because it's the bill Whitaker of the house. Pitch unique gifts whether how all four sides will risk the north side of the house may get some wind but it's always from one direction or another to chimney gets. Bombarded all the time in his hair hot. Moisture going up out of it in their cold air around the exterior so there's a lot of variance there between temperature that's really important. I see now frank let's head inside what do you look for first. When you're actually inside the house. Will the first and we'd like to look for is. What the floors look like our RD level pretty much our editor of wild squeaks under depressions. What's the conditional boost ceiling in the walls aren't they damaged. Now here's a tough one. How do you expect the plumbing. I want to run all the water into pictures in all will be sinks tubs toilets. Every place could read generate water honor roll and I want to pick a flushing one down skiers so they don't want rig count in two lowest level I can see under any leaks because demeanor have been in the water running along time and we want to make sure that we can run lots of water to look for those leaks. That's interesting. So inside the house when you start to inspect the electrical frank what are you looking for their. We want to make sure bet PX one here is protected with the correct side. Circuit breaker or fuse because he don't want or confusing. In other words. It'll white areas up in PG injury at a circuit breaker it's much heavier the circuit breaker will not trip until. Perhaps the wire Belcher catches fire so we want to make sure that your. Protected the way they should be but we also looked loose connections. A wondering debt execs won't so he appears not fixed your and it's gotten a junction box but there's wires sticking out of the junction box that's potentially dangerous so we want to make sure that that doesn't happen so we will we checked Pickens. Franklin and up by talking about the heating and air conditioning system what are you looking for there. Well the first thing is we want to make sure that it seeks we look for things like remarks anything you especially like oil or natural gas furnace boiler we want to make sure dead it's functioning do we should so we do operated we turn it on in it until forced air system we wanna make sure a bit sufficient series. Coming around in all the rooms. So we checked all the openings of the complex and everything if it up. Border system we want to make sure that the meat eaters are these boards are actually heating up quickly should you could summer or we can run your conditioning we want to make sure that that's running too so we checked after temperature drop either forced her system the most important single homeowner can do is keep the furnace filter clean. Index whether it's in the summer or winter because Fiat will overheat the furnished it also causes you to use more natural gas to Europe bills are more expensive and it's called portable you can get a clean filter he wanted to treat catch everything but you wanna make sure that you haven't. Watch everything you can't catch any more because the filters clocked. Well frank I know you've saved a lot of people a lot of money over the years and I really appreciate you being with us today. All you welcome mislead any time I've really -- about doing your show will be added touch unit and you will frank thank you for being with us today frank lashed the executive director of the men. And society of home inspectors. Coming up unrealistic today. Home values interest rates home sales we'll talk to an expert about what to expect in 2070. TDP. Per minute play that game we're playing. More moderate prudent over twenty feet that's next right here. Are realistic to. This is real estate today. Because your home might beat your biggest investment. As we've got a brand new year many people involved. And realistic are looking ahead. To try to figure out what to expect. Home sales home building home prices. And what we'll 2017. Me to you and your realistic. Let's just approach joining us now is Rodrigo assuming you. Business writer with the tempering her letter. Rodrigo covers real estate and other financial areas for kiplinger's. The nation's leading source of financial information for consumers and business owners all across America. Rodrigo welcome to realistic today. We're badger here now Rodrigo you recently wrote an in depth article examining every area of real estate in the coming year. Let's start with your findings on something we all follow prices. What's the outlook for the value of our listeners homes. In 2070. Overall your partner that we think Brett continue to push stuff and the reason didn't. Oh inventory. Especially known coastal markets well Linda area like Portland Seattle and editor my colleagues think that directly and CE prep increase your career going to be stronger better and twice seventeen that is going sixteen or night. Think. Bad we might see an increase in inventories by the yen at 117. And it might push down prices more and one cent gain dead and sixty. Excellent or you're saying they're not going to drop. But the rate of growth might cool off. Ice tour every go how about home sales and let's start with existing home sales. Totally sick and can't gonna be a continuation. Of last year's 2016 in terms of last year I think 4% year over year growth and yet here we are also seen about 4%. Your career and the reason for that is. It again low inventories especially for entry level buyers particularly in certain markets where how right had been racing so rapidly. So we think. Overall. Housing market can grow between seventeen but we do you think you're home so called GE EE no improvement from the numbers assigned to ski. You know a lot of economists believe that if new home construction increased substantially. It would help the human Torre's situation tremendously so what do you think about new home sales to. Oh go eat twice and so many of them marching in toward building and got home in bed because more bad you can see that also gain some of the leaders Cochran certainly we're builders so order more. So we think found it hurtful to go up. About 11%. In when he seventeen and we are predicting bad and putting it into you rose 9% year over years and again. What improvement over last year and that ball that bad start. Are going to be up 4%. Between seventeen and they're going to be likely going to be down Warren or twelve actually. You know I've heard your analysis of all the different areas of real estate and it sounds like. The word moderation. Might apply here what do you think Rodrigo. Yeah absolutely eat eat. Eat because it does raise interest rates and now questions are now about the ability you know. Spin it very slow. Recovery. So we see a continuation of that continuation. You know moderation of modern. Recovery. Modest recovery in patents start failed and you own selves you know so any let me. Were hurt at home buyers also were supplied her first time homebuyers in certain areas region and know very well and they're opening for them home buyers. Which now retirement millennium and not beanie and bite him for home. Soul when he do you see improvement I think came over there playing more moderate improvement over twenty feet. More Rodrigo we certainly do appreciate you joining us on the show today are besides thank you for being here. Rodrigo or an annual business writer with the Kipling a letter who covers real estate and other financial areas for kept clippers. Coming up next unrealistic today more of New Year's resolutions for homebuyers in 2017. That's straight ahead on our special show how to buy a house. If you're hungry for real estate information follow real estate today on Twitter. Shares segments listened to them again and be the first to know what's on next week show. Just search real estate today on Twitter. Real estate today. Because you love real estate. And we're back with our special New Year's show how to buy a house. The first part of our series walking you through every step of the real estate do you want to do in 2070. And right now we'll continue our list of 2017. New Year's resolutions. For buyers. All the things you really need to commit to it. If you're going to buy a home with your own this year. Let's start by recapping the resolutions we talked about earlier. Number one. Number two I will fix my credit. Number three you'll find a real tore our light. Number four I will get preapproved. For a mortgage. And number five. I will not go on a spending spree and possibly think my home loan. OK now let's continue with resolution number 64. Everyone's buying a home this year. Our will not get freaked out by rising mortgage interest rates. No easy get nervous when you hear that mortgage interest rates are on the way out but don't panic. Because now just think about it most of the people who own homes across America right now. Half at some point paid much higher interest rates than you well. Like from seven to 17%. Really. Oh don't worry about four and a half or even 5% mortgage interest rates numbers like that are still really blow. Resolution number seven are we will prepare a household budget before. I buy a house. Now this goes above and beyond with the lenders says you can before in this resolution you add up every build you get. From student loans to car loans to dry cleaning to groceries. Crunch the numbers to make sure you will be able to pay all those bit including that new mortgage. And to also make sure you have something left over after all the bills or pay. You want to do this before you buck not after. Resolution number eight I will carefully think through my list of must pass. Now this will save you a lot of time. Make up a realistic list of what you really have to have a net new house. How many bedrooms how many bathrooms. Do you need a big kitchen or not. Parking or not. Knowing all that and advance will make your house hunting go faster and more efficient. OK number nine I will get ideas about nice neighborhood from friends family and co workers. This will also save you a lot of tough is specially if you live in a big city with lots of neighborhoods. Ask everyone you know about where they live what they like about it and maybe but they don't like to. Those conversations could help turn to weeks of searching for a home. In two days. And finally number ten if I get knocked down. I'll get right back up again. Now there are lots of markets across America. In which they're just aren't enough homes for sale and so buyers have to compete for properties. Bidding wars multiple offers. Now in a tough market like that obviously not everyone went. So if you try for a house and you don't get it don't give up instead ask your realtor. Why you lost ask them what you can do next time to be the winning tiger. And it armed with that knowledge get right back out there and try again. Eventually you will win and get that house of your very alone. So there we are ten home buyer resolutions for the new year designed to help you get ready for buying a home a bureau. In 2007. Team now that's you've. Congratulations. It is so exciting. And we hope that we fewer real Tor by your side you have a great transaction. Payment. A great new year. Coming up next week on realistic today. How to sell our house we'll walk you through every step leading up to the ultimate goal. Of getting the maximum price in the minimum time. How to sell our house is next week right here on realistic today. And remember you can always listen online at our new web address radio dot real tour. And from all of us here at realistic today thank you for listening and happy new year. If you're realtor you can the team tie your real estate today's show on your website. That's real deep chill on the Radio One 100%. Greens and they are members just go to our new web address. And radio dot realtor and click. Howie.