5 Reasons to Buy a House in the Fall

Fall isn’t thought of as “the best” time to buy but that may be changing. Savvy buyers have an advantage when shopping for a home during the fall season. So here’s 5 reasons why fall is a great time to buy a home.

1. Year-End Tax Breaks: any mortgage interest or property taxes paid by December 31st are tax-deductible for that year. This could increase what you get back or reduce what you owe the IRS.

2. Less Competition: The National Association of Realtors® reports that almost half of the homes sold, happen between May and August. Luckily fall is the best time in Arizona for the weather, so house hunting will be cooler and even less stressful. You could avoid a bidding war, since most people wait until summer!

3. Eager Sellers: not all homes will sell during that summer rush. So homes on the market during the fall will have sellers that are ready to move on. That may allow you to negotiate a better deal, with less competition.

4. Less Expensive to Move: with most people focused on the holidays, moving companies have lighter schedules than during the summer. Pricing and scheduling during this time of year may be more flexible.

5. Quicker Transactions: title companies are also experiencing a slow down as transactions tend to decline in the fall and winter. Pair that with a motivated seller and you could be in a house before the holidays hit!

If you’re ready to buy and just have been waiting for more homes to come on the market, let’s start looking now. You may end up finding the perfect deal, that you would have missed or had more competition on during the summer months.

Ready to start looking? Email me at kyle@teamclayton.com!

How to Lose a House in Today's Market

Home buying is one of the biggest decisions we make in our adult life. Unfortunately, there are tons of things that can make a deal fall through– especially if you aren’t working with an experienced professional.

Here are 10 ways you might to lose out on your dream home (and how to avoid them):

1. You don’t have enough saved for a down payment. Surprise! Houses are expensive. The down payment for which you’ve spent so much time saving might not be enough. In addition to closing costs, there can also be other fees. Make sure that you have significant cushion savings, in addition to whatever you plan on putting down for your house.

2. You don’t have your ducks in a row. Staying organized is essential when you’re house hunting. Are you serious about the bid you’re putting down? Make sure that you’re fully aware of all deadlines, contingencies, and paperwork involved in moving forward with your home purchase.

3. You’re shopping out of your budget. Looking for houses way outside of your budget is the first way to “lose a house”—you’ll just be losing a home you never had a chance of having. When you shop above your budget you’re sure to find a dream house that’s nothing more than that: a dream.
   
   Plan for the strong possibility of putting in an offer above asking price. This may mean looking at homes listed a few thousand below your budget to create padding in your budget to make a higher offer. 

4. You lose a bidding war. Quick, decisive, assertive—these are all necessary traits to winning a bidding war. Working with an agent who can negotiate on your behalf is a great way to ensure you play your cards right.

5. You come down with a case of buyer’s remorse. Buyer’s remorse plagues homebuyers across the nation. What’s the most obvious symptom of this condition? Cold feet. Sales contracts fall through all the time because buyers back out at the last second, succumbing to the fear of such a life-altering decision. Trust your gut.

6. You close too slowly. Sellers are trying to get sales contracts through as swiftly as possible. In this climate of high demand and limited inventory, residential real estate is a hot market. There will almost always be someone behind you, vying for your potential future home—if you really want it, work hard to satisfy the seller and make things official as soon as possible.

7. You don’t have an experienced agent. None of the above issues are simple. Having someone on your side that knows the ropes of the home buying process is the most valuable tool in your box. Your agent is there to take the brunt of the work off your shoulders and hold your hand along the way. Let a professional help you with the most important purchase of your life.

8. Your inspections aren’t timely. If you’re lucky, all you’ll need is one inspection. However, the inspection is just a first step. If an inspector discovers any problems, you’ll have to start making appointments with specialists to look further into the house’s issues. Don’t waste any time getting the inspections going or you might find yourself without a house to inspect.

9. Your Seller receives a low appraisal. An appraisal that comes in lower than anticipated is always taken by the seller as a personal blow. This proves to be an issue for the buyer, too. Either the seller will become difficult or, even worse, you’ll have to pay the difference between the appraisal and the sales price out of pocket.

10. You can’t secure a mortgage. You’re so close to the finish—and then your mortgage application is declined. Nothing will lose you a house faster than the inability to pay for it! Apply for pre-approval so the seller knows that you’ll actually be able to buy their home; don’t wait for something to go wrong. If you are proactive throughout the buying process the odds of you losing the home are significantly slimmed.

Have questions or need an experienced Realtor® to help you win? Email me at Kyle@teamclayton.com or call 623-334-5144.

What Makes Team Clayton Different

Everybody seems to know someone who's a REALTOR®, however some important things set us apart from the average real estate agent. Tom and Janet, have been full-time agents since 2002, that's a lot of experience supporting you! When you hire us, you're supporting a family business! You're also getting a whole team of agents for the price of one. That's just the beginning...

• We're charitable: Team Clayton was just recognized as a Top 10 contributor in RE/MAX Professionals to the Children's Miracle Network, supporting Phoenix Children's Hospital. Not only that RE/MAX Professionals raised over $20,000 for PHX Children's in 2018!

• We're top performers: Top 5% of agents nationwide! We do over 40 transactions every year, so all of that experience is working for you, to get you the best deal!

• A team on your side: Tom, Janet, and Kyle Clayton are all full-time Realtors®! You get all of us, plus Stephanie, our Transaction Coordinator for no additional cost to you.

• We don't drop the ball: We have the systems in place to get your transaction closed and the expertise to get your offer accepted. That's huge! Diann will be in constant contact with you and you can call any of us with questions.

We want to make buying and selling your home, an easy process. Our goal is to not only make sure you know what is going on at all times but also to ensure your transaction closes. Our experience and media presence can make the all the difference when selling your home. Team Clayton is the whole package and we continue to innovate. So let's work together!

Home Improvements That Increase Property Value

It always seems to happen, you start fixing your house up right when you're ready to move. That's life! So I wanted to give you a few, easy fixes that translate to an increase in your home's value.

• Subway Tile: from the kitchen to bathrooms, you can't go wrong with this classic tile. You could realize a 4-7% increase in property value by adding a backsplash. 
• Kitchen improvements have a 75% Return on Investment (ROI), so you can spend some money and expect to get most of it back. You'll also be able to enjoy the kitchen of your dreams!
• Farmhouse Sink! Buyers love these sinks and may even buy the house just because of this! Homeowners have seen as much of an 8% increase in sales price due to a farmhouse sink!
• Shaker Cabinets in the bathroom are totally in style. They'll can jump the sales price almost 10%! These classic style cabinets appeal to all types of buyers, so it's a no brainer for bathrooms or kitchens!

Zillow was some other suggestions too, so read more here.

Preparing your home to sell is essential and sometimes, it means doing a little home improvement work yourself. However, I always want you to focus on things that will make you money, so don't go crazy. Doing the right things when fixing up your home can help it sell faster, without costing you a fortune. 

Have any questions? Feel free to ask me at Kyle@TeamClayton.com

House Hunting In A Seller's Market

The real estate market today, has become a Seller's Market. That means there's not enough homes for sale, to keep up with the demand of home buyers. Finding the home you love, may be a challenge. 

When a new house comes on the market, there's going to be a lot of eyes on the property and if it meets a seller's needs, people will jump on putting their offers in. Buyers are having wait longer to find homes they like, so when a desirable home is on the market, they're ready to pounce on it! The house you saw today, may be the house someone else loved yesterday. So how are you going to navigate the market?

Here's some tips on finding a home in a Seller's Market:

1. Be patient but vigilant. You're going to have to exercise your patience, especially if you have a certain area or budget. You may have to wait for new homes to come on the market. When you see a home you like, it's time to be vigilant and tour it as soon as possible. 
2. Be ready to make an offer. Your competition for a home is ready to offer too, so be on the ball and get your offer out as soon as you can. In this market, it's important to submit offers that makes it easy for the Seller to say yes!
3. Expand your possibilities. You may have to think about expanding your search area or what you will accept. Smaller house? Fixer-upper? Maybe your not getting the house you thought you would but you can turn it into your dream home.
4. Negotiate. If you're asking for closing cost, could you come up in price? If you have a big down payment, is your REALTOR® making that clear to the Seller. Crafting a good deal for the Buyer that appeals the the Seller is an art. An experienced real estate agent won't have a problem explaining their method of negotiation. 

Don't worry, you'll find something, the journey may just be a little longer. 

As your REALTOR®, I will make sure you get the home you want but more importantly, want the home you get. So let's get together and talk about how we can work together to accomplish your real estate goals!

The Benefits of Owning a Home.

We all need a place to call home and feel comfortable. It may be a house, apartment, condo, or townhouse. We all know that finding a place to call home can be a complicated and even become an emotional decision. Especially after the downturn, young people  may be hesitant to buy a home. The good news is homeownership is still beneficial in many ways. 

Health Benefits: Homeowners and their families are generally more engaged in the community surrounding their home. That makes for healthier individuals, mentally and physically, according to Mark Lindblad, research director at the University of North Carolina’s Center for Community Capital. Children who's parents own a home also do better academically. Having a consistent home and a consistent school, helps kids thrive.

Tax Benefits: If you're single or married, without any children, you probably don't have many tax deductions to help lower your overall tax burden. Owning a home automatically allows you to deduct taxes and interest paid that year, up to 10,000 dollars. Make sure you speak with an Accountant to make sure your deductions are correct. 

Stable Costs: Rents are rising in today's market and owning a home, with a fixed rate loan, makes your housing costs predictable. As you pay down the loan amount, your mortgage will cost you even less. Rent is always cheaper in the short term, but owning a home stabilizes that cost and lowers it in the long term. A rental will never do that. 

Build Wealth: Homes typically go up in value. Although that can fluctuate in the short term, home values in the long term are stable. Real Estate is a long term investment so be patient. Even better, there are monthly gains in equity as you continue to pay your mortgage down. The bottom line is that real estate is still a great way to build wealth for you and your family. 

Capital Gains Exclusion: When you sell your primary residence for a profit, you get to keep $250,000 if your single and $500,000 if you're married. You'll pay $0.00 in capital gains taxes. ZERO! You just have to live in the home for five of the last 8 years.

The financial benefits are clear but the social benefits are based on stability. So when thinking of buying a home, make sure you're going to stay there for the long term. Then get a fixed rate mortgage and look for down payment assistance, if needed. That, along with a stable job, will ensure that you reap the financial and social benefits of owning a home.

Need help making those housing decisions? Know someone buying or selling? Please contact me, I'd love to help! Visit: www.teamclayton.com or email kyle@teamclayton.com

How to Buy a House With No Money

Well, not literally zero dollars. Unfortunately, it's rare to negotiate a deal with zero money down but it has been done. What is more common is purchasing a home with very little money down. It all depends on your financial situation, loan type, and the seller of the home you want to buy.

As a starting point, you're going to have to have $1,000 as an "Earnest Deposit". It's a way of showing that you are seriously interested in buying the property. That's going to be a part of every real estate transaction, it will credit to your sales price but it is still cash you have to come up with out-of-pocket. 

Secondly, you're going to have closing costs that range anywhere from 2% to 5% of your sales price. So, for a $100,000 home, closing costs would be $2,000 to $5,000 dollars, with the average being around $3,000. Having a REALTOR® on your side will give you the help you to negotiate a deal with those costs in mind. There are a variety of ways a REALTOR® can negotiate a deal to help you pay as little as possible. Closing costs are unavoidable but can also be gifted if that applies in your situation.

Now is the time where down payment assistance programs kick in, a popular one is the Home in 5 Advantage program. You could qualify for 2.5% to 3.5% of down payment and closing cost assistance, depending on your financial position. There is also the Home Plus program and each lender also has their own programs.

Depending on your loan, there may be other fees, costs, and rates that apply, they may even affect your monthly payment. It's important to have an open dialogue with your mortgage broker to make sure you know what fees and rates you will be charged. 

You have to balance your financial goals with your homeownership goals to find what is right for you. Focus on what is important to you—is it a certain budget, low interest rate, low out of pocket costs, or something else? Think about it, then talk with both your lender and REALTOR® so that they can help you achieve your goals.

When you choose to work with professionals, you will have a team on your side fighting for your goals. Literally. This is why using a licensed, full-time real estate agent is crucial to you buying a home with little money down. Finding the right mortgage broker is also important because they each have different styles and offer different programs, so don't be shy about shopping around.

Check out my video on down payment assistance programs for more information. 

Have any questions? Email me at Kyle@teamclayton.com or on Facebook!

The Benefits of Homeownership

We all need a roof over our heads, whether it's a home, apartment, condo, or townhouse. However, housing can be a complicated and even become an emotional decision. Especially after the downturn, people can be hesitant to buy a home, the good news is homeownership is still beneficial. 

Health Benefits: Homeowners and their families are generally more engaged in the community and healthier individuals, mentally and physically, according to Mark Lindblad, research director at the University of North Carolina’s Center for Community Capital. Children who's parents own a home also do better academically. 

Tax Benefits: if you're single or married, without any children, you probably don't have many deductions to help lower your tax burden. Owning a home automatically allows you to deduct taxes and interest paid that year. Make sure you speak with an Accountant to make sure your deductions are correct. 

Stable Costs: Rents are rising in today's market and owning a home, with a fixed rate loan, makes your housing costs predictable. As you pay down the loan amount, your mortgage will cost you even less. Rent is always cheaper in the short term, but owning a home stabilizes that cost and lowers it in the long term. A rental will never do that. 

Build Wealth: Homes typically go up in value, although that can fluctuate in the short term, house values in the long term are stable. Real Estate is a long term investment so be patient. Luckily there are also monthly gains in equity as you continue to pay your mortgage down. The bottom line is that real estate is still a great way to build wealth for you and your family. 

Capital Gains Exclusion: When you sell your primary residence for a profit, you get to keep $250,000 if your single and $500,000 if you're married. You'll pay $0.00 in capital gains taxes. ZERO!

The financial benefits are clear but the social benefits are based on stability. So when thinking of buying a home, make sure you're going to stay there for the long term. Then get a fixed rate mortgage and look for downpayment assistance if needed. That, along with a stable job, will ensure that you reap the financial and social benefits of owning a home. 

Need help making those decisions? Know someone buying or selling? Please contact me, Team Clayton Real Estate is ready to help you! Visit: www.teamclayton.com or email Kyle@teamclayton.com