Initial Expenses Involved in Buying a Home

When purchasing a home, there are a few upfront out-of-pocket expenses. This includes Earnest Money, Inspection Fee, and Appraisal Costs. The earnest money is a deposit made by the buyer to demonstrate their serious intent to purchase the property. It is a good faith deposit, typically 1% of the home’s purchase price, that the buyer provides to the seller when submitting an offer. The earnest money is held in an escrow account and is later applied toward the buyer’s down payment and closing costs. If there is no down payment or closing costs, then the buyer will receive money back at the closing table.

Having a home inspection is a crucial step in the home-buying process, ensuring that your prospective investment remains free of any unforeseen issues. A home inspection provides a thorough examination of the property’s structural and mechanical components, identifying potential problems that may not be evident during a standard walkthrough. By investing in a home inspection, you gain valuable insights into the condition of the home, allowing you to make informed decisions and negotiate repairs or adjustments with the seller before finalizing the purchase. The costs of a home inspection can range from $350-$900.

Your mortgage lender will require an appraisal to be done on the property to ensure that the amount of money being borrowed aligns with the actual value of the property. The appraiser evaluates various factors, including the property’s size, condition, location, comparable home sales in the area, and any unique features. The primary purpose of the appraisal is to provide an unbiased and objective valuation of the property. This is crucial for both the buyer and the lender, as it helps determine the fair market value of the home. The cost of the appraisal can range from $600-$800.

What Are Reserves?

Lender-required reserves refer to the amount of money that a mortgage lender may require a borrower to have in reserve, beyond the down payment and closing costs, as a financial safety net. These reserves act as a cushion to cover future mortgage payments and other housing-related expenses in case of unexpected financial challenges.

Money-saving accounts and 401(k)s may be eligible sources for lender-required reserves. Money-saving accounts, such as savings or checking accounts, are straightforward options. Lenders often prefer liquid assets that can be easily accessed if needed. These accounts demonstrate a borrower’s ability to cover mortgage payments and other expenses.

Budgeting & Saving Tips

1. Establish a Monthly Savings Goal: Based on the total savings target and the timeline for purchasing a home, help your clients set a monthly savings goal. Divide the total amount they need to save by the number of months before they plan to buy.
2. Create a Separate Savings Account: Encourage your clients to open a separate savings account dedicated to their homebuying fund. This helps them track their progress and prevents the funds from being easily spent on other expenses.
3. Cut Unnecessary Expenses: Identify areas where your clients can cut back on unnecessary expenses. This might include dining out less frequently, reducing entertainment expenses, or renegotiating subscription services. Redirect the saved funds to their homebuying savings.
4. Increase Income if Possible: Explore opportunities for your clients to increase their income, such as taking on a part-time job, freelancing, or exploring side hustles. Supplementing their income can accelerate the savings process.

5. Take Advantage of Windfalls: Advise your clients to allocate unexpected financial windfalls, such as tax refunds, work bonuses, or monetary gifts, toward their homebuying fund. This can significantly boost their savings.

6. Regularly Review and Adjust the Plan: Regularly review the savings plan with your clients to ensure they are on track. If there are changes in their financial situation or homebuying timeline, be ready to adjust the plan accordingly.

Home Ownership Is A Journey

Homeownership is a journey that deserves careful consideration and patience. Rushing into such a substantial financial commitment can lead to potential pitfalls and regrets. Taking the time to thoroughly research, plan, and assess one’s financial readiness ensures a more informed decision and a smoother journey. Patience allows prospective homeowners to explore various options, weigh the pros and cons, and make choices aligned with their long-term goals.

Oklahoma Realtor

Erica Garvin

The post Mastering Your Money: Insider Tips for Future Homeownership Success first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Increases

The total housing inventory at the end of December 2023 rose 8.88% to 2,526 existing homes available for sale. Over the last 12 months, this area has had an average of 1,027 closed sales per month. This represents an unsold inventory index of 2.46 MSI for this period.

Average Days on Market Lengthens

The average number of 34.35 days that homes spent on the market before selling increased by 5.45 days or 18.84% in December 2023 compared to last year’s same month at 28.90 DOM.

Average Sale Price Going Up

According to the preliminary trends, this market area has experienced some upward momentum with the increase in Average Price this month. Prices went up 3.01% in December 2023 to $293,793 versus the previous year at $285,222.

Sales Success is Positive

Overall, with Average Prices going up and Days on the Market increasing, the Listed versus Closed Ratio finished weak this month. There were 983 New Listings in December 2023, up 5.36% from last year at 933. Furthermore, there were 865 Closed Listings this month versus last year at 976, a -11.37% decrease. Closed versus Listed trends yielded an 88.0% ratio, down from the previous year’s, December 2022, at 104.6%, a 15.88% downswing. This will certainly create pressure on an increasing Month Supply of Inventory (MSI) in the months to come

Erica Garvin

The post January 2024- Oklahoma Market Update first appeared on Ivy Key Team .

Reasons To Consider Buying A Home:

One key benefit is the opportunity to build equity over time as you pay down your mortgage. This equity can be a valuable asset and can be accessed through home equity loans or lines of credit. Owning a home provides stability and a sense of security. You have control over your living space and don’t have to worry about landlords changing rental terms, offering a more stable and secure living arrangement. Owning a home can also be a part of a long-term financial plan. As you pay off your mortgage, your housing costs decrease, offering financial security, especially in retirement.

Homeownership also allows you to personalize your space according to your preferences. You have the freedom to make home improvements and renovations, creating a living environment that suits your lifestyle. With a fixed-rate mortgage, your monthly payments remain stable over the life of the loan. This predictability can make budgeting and financial planning easier, providing peace of mind. Homeownership often fosters a sense of community. You become part of a neighborhood, and the connections formed with neighbors can contribute to a strong sense of belonging.

Your Home Buying Journey

• Interview and enlist the help of a licensed realtor. Your realtor will have direct access to mortgage lenders and other vendors needed to make your home-buying journey seamless.

Contact A Realtor

• Apply for your home loan with a mortgage lender. This pivotal step opens the door to insightful conversations about options, monthly payments, considerations for the down payment, and understanding the necessary closing cost requirements. A tailored game plan will be made to strategically navigate your home-buying journey.

• Find your perfect home with the help of your savvy real estate agent. She/he will help you navigate inspections, surveys, and/or appraisals. They will also assist in coordinating things between the title company, lender, and the listing parties.

• Prior to closing on your home, your realtor will help coordinate utilities and other pre-closing needs. Once you close you will be handed the keys to your brand new home!

2024 Housing Market Predictions

If you are considering purchasing a home in 2024, be sure to analyze your financial situation to ensure that the pros outweigh the cons. The housing market outlook was once bleak, but better days are on the horizon.

Erica Garvin

The post 2024, The Year of New Homeowners first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Increases

The total housing inventory at the end of November 2023 rose 9.29% to 2,706 existing homes available for sale. Over the last 12 months, this area has had an average of 1,036 closed sales per month. This represents an unsold inventory index of 2.61 MSI for this period.

Average Days on Market Lengthens

The average number of 32.19 days that homes spent on the market before selling increased by 7.37 days or 29.68% in November 2023 compared to last year’s same month at 24.82 DOM.

Average Sale Price Going Up

According to the preliminary trends, this market area has experienced some upward momentum with the increase of Average Price this month. Prices went up 2.77% in November 2023 to $291,805 versus the previous year at $283,931.

Sales Success for November 2023 is Positive

Overall, with Average Prices going up and Days on Market increasing, the Listed versus Closed Ratio finished weak this month. There were 1,217 New Listings in November 2023, up 7.51% from last year at 1,132. Furthermore, there were 896 Closed Listings this month versus last year at 935, a -4.17% decrease.
Closed versus Listed trends yielded a 73.6% ratio, down from previous year’s, November 2022, at 82.6% , a 10.86% downswing. This will certainly create pressure on an increasing Months Supply of Inventory (MSI) in the months to come.

Erica Garvin

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post December 2023- Oklahoma Market Update first appeared on Ivy Key Team .

A rise in interest rates and a ton of information on the internet have led many future homebuyers misinformed

” I cannot tell you how many potential homebuyers I sit down with in a homebuying consultation that are scared to home shop right now. When I finally get to the root cause of why they are scared, I realize it is because they have been misinformed. – Erica Garvin

Erica Garvin, the owner of the Ivy Key Team, says that misinformation is one of the biggest hurdles that she must overcome to alleviate her prospective clients’ fears about starting the home-buying process. There are so many moving parts that play a role in why a future homebuyer chooses to buy other than interest rates, but even if that is your biggest concern there are solutions to decrease the interest rate even in this housing climate.

Less Competition

Real estate is cyclic and changes with the seasons. During the fall and winter months, the most fast-paced housing market may slow. Most potential home buyers will want to buy in the summer and spring months to avoid moving so close to the holidays and refrain from having their kids move into a new school district in the middle of a school year. If you are thinking of purchasing a home now, consider starting your home search during the cooler months as there is less competition with other buyers and a greater chance for your offer on your dream home to be accepted.

Motivated Sellers

As we mention less competition between buyers we must also mention how in the cooler months the market shifts from a seller’s market to a buyer’s market. A seller is more motivated and serious about selling their home and usually have listed their homes due to unforeseen circumstances. A seller may be selling their home because they are relocating due to a change in employment or a divorce. These circumstances are a huge win for potential home buyers as the seller may be willing to decrease the listing price or offer other incentives to attract a buyer to their property. In the cooler months, buyers will have an increase in negotiation power that can be used to buy down the interest rate or apply towards reducing their closing costs.

Clearer Picture of The Property

A huge advantage that home buyers often forget is the ability to see how their dream home holds up during the snowy and rainy seasons. In the summer when the weather is picture perfect, it may be hard to tell if your future home is well insulated or if the backyard’s grading allows for water to run off properly. It is also the perfect time to see how the roof and guttering hold up and a great time to thoroughly check the HVAC. During the more temperamental weather season, it is easier to see deficiencies in the home and have the seller repair them.

Focused Decision Making

The benefit of purchasing a home during a slower real estate market is that it gives you a longer amount of time to make a decision without the pressure of needing to put an offer in right away for fear of losing that home to another buyer. It allows you to check numbers with the lender to make sure that the home is within your budget. It gives you enough time to think it over and envision yourself in the home for years to come.

Seasonal Discounts With Vendors

Once you do find the perfect home and are ready to start the moving process, you can enjoy seasonal discounts with vendors that usually occur in the cooler months. Especially when shopping for appliances you can take advantage of VEterns Day, Black Friday, Christmas, & New Year’s sales. This not only applies to merchandise but also to vendors who may have slower months during this season and offer sales. This is handy for moving services, winterizing your home, and even lawn services. The list is endless.

If you are thinking about putting off owning your own own home due to interest rates I strongly encourage you to speak with one of our real estate professionals. They can also connect you with a qualified real estate professional in your state if you are not locally located in Oklahoma. Interest rates are still on the rise and there is no guarantee that it will be coming down anytime soon. The equity that you will gain while owning your home only increases and can be one of the best ways to build wealth within your family.

Erica Garvin

The post Why Now, Is The Perfect Time To Buy A Home first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Decreases

The total housing inventory decreased 0.36% to 2,503 existing homes available for sale. Over the last 12 months, this area has had an average of 1,044 closed sales per month.

Average Sale Price Going Up

The Oklahoma market area has experienced some upward momentum with the increase of Average Price this month. Prices went up 2.38% in September 2023 to $300,765 versus the previous year at $293,788.

Average Days on Market Lengthens

The average number of 29.90 days that homes spent on the market before selling increased by 9.30 days or 45.14% in September 2023 compared to last year’s same month at 20.60 DOM (days on market).

Summary

Overall, with Average Prices going up and Days on Market increasing, the Listed versus Closed Ratio finished weak this month. There were 1,423 New Listings in September 2023, down 6.13% from last year at 1,516. Furthermore, there were 1,064 Closed Listings this month versus last year at 1,348, a -21.07%
decrease Closed versus Listed trends yielded a 74.8% ratio, down from the previous year’s, September 2022, at 88.9%, a 15.91% downswing. This will certainly create pressure on a decreasing
Months Supply of Inventory (MSI) in the months to come.

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post October 2023- Oklahoma Housing Market Update first appeared on Ivy Key Team .

Write Down The Vision

If you have not done so already write down exactly what your goals are. It is hard to get to where you’re going if you don’t know where you’re supposed to be. When you write down your goals be very specific. Write down your dream home. How many bedrooms does it have? Baths? Does it have an open-concept kitchen? What type of backyard does it have? You can even take the time to draw it out and even create a Pinterest board! The key is to be as specific as you can. Don’t forget to write down a date of when you plan to be a homeowner. Store this in a place where you can meditate and pray over it daily.

Examine Your Current Situation

It is also hard to get to where you’re going if you don’t know where you’re at. If you have not done so already take the time to look over your finances and bad habits. If you are not sure what those are I recommend journaling for at least four weeks. Take this journal with you and record what you spent your money on and how much you contributed to your savings. Also, write down your income and bills that were paid. Perhaps you are driven by emotional spending, this journal will help you to see if you’ve picked up on unnecessary spending habits. In this same journal record your credit score and analyze your credit for any outstanding debts, collections, and/or negative impacts on your credit score.

Form A Healthy Relationship With Money

Practice forming a healthy relationship with money. Know that money will always come and always go. The best way to treat money is to assign a purpose for each dollar before you spend anything. Give yourself enough wiggle room for unexpected costs and don’t forget to give yourself reasonable allowance. Keep reminding yourself that you are working on something bigger, especially in times when you want to spend money unnecessarily.

Gather The A-Team

The biggest part of your success is the team you will put together that will be supporting you through your home ownership journey. If you haven’t done so already I recommend interviewing realtors in your local area. Get a feel for how they work, their resources, and their personality. You will need someone who will check in on you, believe in your vision, and push you even when you don’t feel like it. If they are a savvy realtor they will have a list of lenders, title companies, and other resources for you. This will be your team from start to finish.

Execute Your Plan

Your A-team should have helped you to create a plan to give you a realistic idea of how soon you will be ready to purchase your own home. This plan will involve setting the right expectations for improvements needed so that a lender can approve you for a home loan. Your trusted real estate agent has gone over the requirements needed by the lender with you, analyzed your finances to let you know how much you need to save, and is fully aware of your vision and supports you. He/she is checking in with you monthly to give you a boost of encouragement so that you know you are not in this alone. When creating your plan break it down into yearly, monthly, weekly, and daily if you need to. Do not underestimate the importance of an accountability partner as more people find success with one than with

This is Your Unique Journey

Sometimes when we want something so bad we tend to look over our shoulders at someone else who appears to have exactly what we want. In the age of social media, this is right at our fingertips. Trust that God has something specifically for you and keep yourself focused on your own journey to homeownership. What is meant for you will be for no one else. Continue to do the work and it will be blessed.

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• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post What To Do Now, To Buy A Home In 2024 first appeared on Ivy Key Team .

What Is A “High” Interest Rate?

In the 1980s-1990s homebuyers were no strangers to interest rates that were close to 19%. Over the years they have slowly crept down, but it begs the question “Are we really experiencing high interest rates?” Interest rates fluctuate so much for a number of reasons, but it usually comes down to just a few: economic stability, supply & demand, credit risk, loan period, and inflation. Here in 2023, we are starting to see increases from the Federal Reserves due to our need to stimulate the economy post-COVID-19 era and a rise in inflation. As a homebuyer, you have no control over the interest rates, but you do have control over how to ensure that your future investment continues to appreciate more over time, and how to avoid initially overpaying for your new home.

Avoid Over Paying For Your Future Home

In 2019-2022 homebuyers were paying thousands of dollars over the asking price for the seller to even consider entertaining a buyer’s offer on their home. When you think of supply and demand at that time you will realize why this was happening. Interest rates at the time were at an all-time low, stimulus checks were sitting in bank accounts waiting to be spent, and everything non-essential was shut down causing homebuyers to increase their savings. This caused a substantial amount of buyers to start the homebuying process. When inventory started to decrease and the number of homebuyers increased the demand for homes skyrocketed creating a supply and demand issue. Due to the increase in interest rates, the days of paying thousands of dollars over the asking price for a home are over. Depending on the pricepoint, Sellers are now having to entice buyers with buyer concessions and list their home at a favorable pricepoint to have their home sold quickly. In order for buyers to have a successful buying experience it is important now more than ever for a buyer to reach out directly with a qualified and experienced real estate agent. Your realtor will have first-hand knowledge of any up-and-coming neighborhoods, they know their market, they will help you consider future resale value, and check comparable homes in the neighborhood to ensure you’re not overpaying for your new home.

Make Interest Rates Work In Your Favor

In any market, there is pocket pricing that homebuyers are not seeing homes sitting on the market. These price points are usually aimed at first-time homebuyers and investor specials. The location also plays a big factor as well. If you’re looking to purchase a home in a highly sought-after neighborhood, a lakefront or oceanfront property, or near a major downtown metropolis you may find it difficult to find sellers willing to give buyer concessions or pay under asking on a home. In those situations, I recommend consulting with a qualified agent in that area to give you honest feedback on what it takes to ensure you have a winning offer and create a plan for your to have a successful homebuying experience. In most cases, the increase in interest rates has allowed buyers to have sellers pay for buyer concessions such as seller-paid closing costs and home warranties. Buyers are able to find great “deals” allowing them to move into their new home with equity.

Is Now Still A Good Time To Buy?

The answer is YES! The future you will be kicking yourself that you did not get started now. There are so many advantages in buying in a market with higher interest rates. In the event that the interest rates do go back down then a simple refinance can be done. As we all know, prices for homes are only increasing and with the threat of inflation on the horizon now is never a better time. The Ivy Key Team are licensed real estate professionals based out of Oklahoma and have established a vast network of qualified realtors across the United States. No matter what state you are in, contact us today to start the home-buying process.

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

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The post Buying A Home Now During Interest Rate Hikes first appeared on Ivy Key Team .