Fall-ing Inventory Means Bidding Wars Could Continue This Autumn

Homebuyers are looking to make a move, but current homeowners are staying put, adding to inventory constraints. Real estate agents share how buyers can still win in a competitive market.

As pent-up demand from the spring compounded to create one of the busiest summers for residential real estate on record, the demand is promising to spill over into the fall months.

“Normally, my brokerage’s sales start to dip after September, and we generally have a slowdown all the way through the end of February,” says Christy Walker, Designated Broker/Owner of RE/MAX Signature in Phoenix, Arizona. “But in this case, it doesn’t seem to be slowing down. We are expecting to see this pressure of demand continue through the fall.” (Read more)

Let’s be honest – in 2020, the days have started to blur together. Many people may need to be more thoughtful about how they spend their money the rest of the year.

Investing the money in environmentally friendly enhancements for a home could be a good option. Not only can going green save on monthly energy costs, it can ultimately help a home stand out when the time comes to sell.

“The environment is becoming a big priority in what people are looking for when they’re home buying,” says Anna Lee Rindskopf, an agent with RE/MAX Traditions in Beachwood, Ohio. “Young buyers and millennials are known to be interested in green homes, but even older generations are looking to have efficient homes.”

With a variety of products available on the market, it can be difficult to know which features are worth the investment before listing a home for sale or after buying a home. (Read more)

A Roth IRA may help fund your home purchase - Pros and Cons

You probably know a Roth individual retirement account is one way to save for your post-working years. It also may come in handy for certain homebuyers.

Basically, up to $10,000 in Roth IRA earnings can be withdrawn — free of both taxes and penalty — for a home purchase if you meet certain requirements. That’s in addition to being allowed to withdraw your direct contributions at any time, because you already paid taxes on that money.

As home prices continue their upward trajectory, the amount of cash needed to purchase one continues to rise, as well. While it’s possible to buy a house with less than 20% down — the average is 12% overall and 6% for first-time buyers — going that route also might mean paying private mortgage insurance, or PMI, until your equity is at least 20% of the home’s value. PMI can run $30 to $70 monthly for each $100,000 borrowed, according to Freddie Mac.

For a $250,000 house, a 6% down payment would be $15,000. At 20%, it would be $50,000. Those amounts don’t include other costs related to closing on the purchase, such as transfer taxes or points, which generally lower the interest rate on the loan. (One point is equal to 1% of the mortgage).

At the same time, the cost of borrowing is relatively cheap due to historically low-interest rates. The average rate on a conventional 30-year mortgage was just under 3% last week, according to NerdWallet.com.

Nevertheless, using Roth IRA money to buy a house is not a strategy that makes sense for everyone. Here’s what to consider. (Read more)

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