Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data covers responses from 2013-2016.

The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

There are many who see that statistic and point toward how broad the range of respondents are for the Federal Reserve survey. Their study includes all economic and social groups and also includes all age groups. The argument is that older respondents have a higher likelihood of being homeowners, while the homeownership rate among younger survey takers is much lower.

Recently, the Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference in net worth between homeowners and renters at this age group was actually 47.5 times greater!

Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36. Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated.

It is no surprise that lifelong-renters have had a hard time accruing net worth as the latest Census report shows that the Median Asking Rent has been climbing consistently over the last 30 years.

 

Bottom Line
As a homeowner you put your monthly mortgage payment to work for you, building your net worth with every payment. Thinking about buying or selling a home? Char MacCallum Real Estate Group can help! Call us today 913-782-8857.

Many homebuyers think that saving for their down payment is enough to buy the house of their dreams, but what about the closing costs that are required to obtain a mortgage?

By law, a homebuyer will receive a loan estimate from their lender 3 days after submitting their loan application and they should receive a closing disclosure 3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing costs https://green-touch.org/business-loans/minority-business-loan/.

But what are closing costs anyway?

According to Trulia:

Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)”

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. As mentioned before,

Closing costs are typically between 2% and 5% of your purchase price.

Trulia continues to give great advice, saying that:

“…understanding and educating yourself about these costs before settlement day arrives might help you avoid any headaches at the end of the deal.”

Bottom Line

Speak with your lender and your Char MacCallum Real Estate Group agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to. Have more questions?  We can help! Call 913-782-8857 for a personal consultation with one of our real estate experts

Everyone wants a place to call home; a place that gives them a sense of security. We are currently seeing major interest from females who want to achieve this dream, and the numbers are proving it!

In 2018, for the second year in a row, single female buyers accounted for 18% of all buyers. In 2017, 60% of millennial women listed as the primary borrowers on mortgages were single.

According to the 2018 Home Buyer and Seller Generational Trends Report by the National Association of Realtors, one in five homebuyers in the U.S. were single females (most of them part of the baby boomer generation) as you can see in the graph below:

Females Are Making It a Priority to Invest in Real Estate! | MyKCM

This does not come as a surprise since 50.8% of the U.S. population is female and 15.6% of them are 65 years and over, according to the Census Bureau.

What are the reasons for this demographic’s booming interest in homeownership?

Bankrate published an article with what they believe to be some of the reasons:

  • Divorce rate: Known as the “Gray Divorce,” the divorce rate has doubled for those ages 50 and over and tripled for those ages 65 and over.
  • Average life expectancy: For women it’s 81, four years longer than men.
  • To build home equity: Women want to build equity through their home. As mentioned by Bankrate, “some are hoping to escape rising rents, some might be downsizing or looking for a new start,” especially those going through a gray divorce.

Are they only downsizing and buying small homes?

Not really; The Institute of Luxury Home Marketing recently stated that:

The number of female billionaires grew faster globally in 2017 than the number of male billionaires. This redistribution of wealth has seen an impact on luxury real estate both in its purchase and design attributes – and obviously, this is important for realtors to recognize when relating to their clients.”

Bottom Line

Whether you are a millennial who wants to buy a starter home, a billionaire looking for that luxury home you’ve always wanted, or maybe even someone who just went through a gray divorce, let’s get together to help you create your real estate portfolio so that you can start investing your money in real estate today!  As small business owners in Olathe, KS we know what it takes to make a smart investment. Thinking about investing in real estate? We can help get you started. Call 913-782-8857 to speak with one of our real estate experts today.

Over the past few years, two trends have emerged in the housing market:

  1. Home renovations have shot up
  2. Inventory of homes available for sale on the market has dropped

A ‘normal’ housing market is defined by having a 6-month supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.

This low inventory environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.

According to Home Advisorhomeowners spent an average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.

A new study from Zillow asked the question,

“Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?”

Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.

 

Are Homeowners Renovating to Sell or to Stay? | MyKCM

More and more studies are coming out about the intention that many Americans have to ‘age in place’ (or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.

If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end up changing the identity of the home and impacting resale value, then the renovations may end up costing them more in the long run.

With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this low-competition environment could net you more money than your renovations otherwise would.

Bottom Line

If you are one of the many homeowners who is thinking about remodeling instead of selling, let’s get together to help you make the right decision for you based on the demand for your house in today’s market. Call 913-782-8857 to speak with one of our real estate experts that specialize in Olathe and the surrounding Kansas City neighborhoods.

The lack of existing inventory for sale has forced many homebuyers to begin looking at new construction. Char MacCallum Real Estate Group knows the new construction process and our local builders.  However, when you buy a newly constructed home instead of an existing home, there are many extra steps that must take place.

To ensure a hassle-free process, here are 5 tips to keep in mind if you are considering new construction:

1. Hire an Inspector

Despite the fact that builders must comply with town and city regulations, a home inspector will have your best interests in mind! When buying new construction, you will have between 1-3 inspections, depending on your preference (the foundation inspection, the pre-drywall inspection, and a final inspection).

These inspections are important because the inspector will often notice something that the builder missed. If possible, attend the inspection so that you can ask questions about your new home and make sure the builder fixes any problems found by the inspector.

2. Maintain good communication with your builder

Starting with the pre-construction meeting (where you will go over all the details of your home with your project manager), establish a line of communication. For example, will the builder email you every Friday with progress updates? If you are an out-of-state buyer, will you receive weekly pictures of the progress via email? Can you call the builder and if so, how often? How often can you visit the site?

3. Look for builder’s incentives

The good thing about buying a new home is that you can add the countertop you need, the mudroom you want, or an extra porch off the back of your home! However, there is always a price for such additions, and they add up quickly!

Some builders offer incentives that can help reduce the amount you spend on your home. Do your homework and see what sort of incentives the builders in your area are offering.

4. Schedule extra time into the process

There are many things that can impact the progress on your home. One of these things is the weather, especially if you are building in the fall and winter. Rain can delay the pouring of a foundation as well as other necessary steps at the beginning of construction, while snow can freeze pipes and slow your timeline.

Most builders already have a one-to-two-week buffer added into their timelines, but if you are also in the process of selling your current home, you must keep that in mind! Nobody wants to be between homes for a couple of weeks.

5. Visit the site often

As we mentioned earlier, be sure to schedule time with your project manager at least once a week to see the progress on your home. It’s easy for someone who is not there all the time to notice little details that the builder may have forgotten or overlooked. Additionally, don’t forget to take pictures! You might need them later to see exactly where that pipe is or where those electrical connections are once they’re covered up with drywall!

Bottom Line

Watching your home come to life is a wonderful experience that can sometimes come with hassles. To avoid some of these headaches, keep these tips in mind!

If you are ready to put your current home on the market and find out what new construction is available in your area, let’s get together to discuss your options! Call us today at 913-782-8857.

Char MacCallum Real Estate Group is hosting Shred-it to shred and destroy sensitive paperwork on site at our office located at 1819 S Ridgeview Road, Olathe, KS.

Join us on April 7th between the hours of 9:00 am to Noon for this ABSOLUTELY FREE to our clients and community!

Did you know that you can also recycle small electronics (up to 15lbs) for FREE in Olathe, KS?  Here is information on what they will take and how to recycle them!

Let’s get started on our spring cleaning together!  See you on April 7th! also try or new leading casinos

 

 

Local Real Estate Professional Brings Home National Honor

Broker★Agent™ Advisor Honors Achievement

Phoenix, Arizona August 21, 2017 – Now in its 21st year, Broker★Agent™ Advisor celebrates the success and accomplishment of the industry’s finest real estate professionals through it’s exclusive ‘Certificate of Excellence’ Program.

Through proprietary criteria, formulas, and other valuable considerations, Stephanie MacCallum of EXP REALTY, LLC has been distinguished by Broker★Agent™ Advisor as one of the best in heating and maintenance business based on achievement, potential, leadership, ethics, community value, experience, capability, and trust for their service during the calendar year of 2016.

“Stephanie exemplifies the type of professional we designed this award for,” says Chad Golladay, Executive Publisher of Broker★Agent™ Advisor. “A true credit to their company, profession, and community both inside and outside of their real estate practice; one with whom the honor is truly ours in being able to share this award.”

There is no cost or fee required for this award, and all applicant’s credentials are verified, which makes this honor one of the most genuine in the industry towards identifying those truly worthy of special recognition and distinction.

Stephanie Maccallum can be found in Broker★Agent™ Advisor’s national online directory of award recipients here: http://brokeragentadvisor.com/brag-directory

More About Broker★Agent™ Advisor

Established in 1996 Broker★Agent™ is a real estate trade publication which provides information, tools, and resources to assist the modern real estate professional in achieving greater success through their real practice. Discover more about our award program here…  http://brokeragentadvisor.com/brag

Build Your Future with eXp Realty

by scottm

Being a independent team for over 20 years, I’ve had offers to join major real estate franchises and none of them gave me the freedom to keep my own brand and control my own growth.  My business coach of 20+ years came to me and says, “Char, you need to get on board this company.”  My business coach is a very wise man, and I listened to the short webinar. Concluding it, I thought, “Why isn’t every agent an eXp agent?”  The model is better than every business model out there!  Call or email me if you’re interested.  913.782.8857

What makes it so great?…

Agents are Owners

At eXp Realty, our family of agents and brokers build their own businesses while establishing a direct ownership interest in our parent company, eXp World Holdings, as a shareholder and partner.

All agents can earn equity awards for various achievements such as closing their first transaction as well as the opportunity to earn back their yearly commission cap in stock.

Revenue sharing vs Profit Sharing

Many big franchise companies have a profit sharing model which grants a share of the profit a brokerage office makes.  If that office doesn’t make a profit against their expenses there’s nothing to share.

With Revenue sharing, you get your cut off the top with no expenses factored in on any agents you sponsor into the company.  There’s no need to wait to see if your office made profit to find out if you get a profit and most of all, there’s no limit to what you can earn!

Revolutionary Lead Generation Platforms

As part of being an exp agent, you’ll receive access to a powerful CRM and lead generation website called Kunversion.  This would normally cost $500 a month, but is given to you as part of your agent technology package.

Cloud-based office and full electronic transactions

Say goodbye to office commutes: Our one-of-a-kind cloud office environment allows agents and brokers to work together at any time or any place. Defy distance. Interact and learn from industry experts and other top professionals. eXp agents build teams, share best practices and enjoy a powerful referral network.

Company Stock Acquisition

Just for joining exp, you’ll get stock in eXp World Holdings.  At other milestones, such as first sale, you’ll be given more!  Also, you can purchase stock at discounted rates.

Live Weekly Education and Sales Training

Never stop learning with more than 15 hours of live training each week on eXp tools and business best practices. Agent support is only a click away with eXp’s agent services, technology and finance expertise available wherever an agent or team is located.

Ready to make the switch?…  Let’s talk