Today's tidbit continues yesterdays thought, the importance of having your "why" and how it will change your life. I shared the "why" that got me into Real Estate, which then allowed me to find and follow my passions. Now, 10 plus years later, my "why" has changed, which also allowed my passions to grow and create. This is why Breakthrough is in existence today! Amazing! What is your "why"? Has it changed over the years? Please share your stories and "why" is the comments. I cant wait to read them. Please share these videos if they are making in impact. I appreciate everyone of you and every single view so much. Thanks!
Todays tidbit is finding your why. It's important to find your why. It's also important to know that over time your why may change. Your why may be your career or it may be what your career allows you to do. Todays message changed my life. Check it out. Please, like, and if these tidbits are making any impact, please share and subscribe. Thank you so much.
Welcome to Episode 1 of the Breakthrough Real Estate Daily Tidbit that has yet to be named!!! LoL Please submit name ideas in the comments. This first episode is called The Right Home at the Right Time for the Right Buyer. Enjoy! Please like, share and subscribe! Join us tomorrow for episode 2! If you have any stories or tidbits we'd love to hear them. Please comment or email firstname.lastname@example.org Thanks!
Have you heard about Breakthrough's new Agent Training Program? It is AWESOME!!! It is geared to agents of any experience to take advantage of. It's crazy detailed and not easy, but for those who can tough it out and "Graduate" you will have the career of your dreams and accomplish all your goals whether it's becoming a Millionaire, providing for your family, retirement, vacations or launching your business to the largest and fullest it can be, this is your tool.
Breakthrough Agents go through the tough training and hard work to perfect our craft, provide the maximum level of service to our clients and lay the proper foundation for a long lasting successful career in Real Estate. If you would like to take part, please call 602-938-5415.
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Designated Broker and Owner of
Breakthrough Real Estate & Property Management
The AZ Real Estate Market is HOT!! Especially the Phoenix Area where we have not even 2 months supply of homes for sale, great average sales prices, and lots of qualified buyers just looking for the right home. For many sellers, this also poses a tough question," How do you time the market?" Easy answer: You Cant. It is impossible to time the market BUT think of this. You don't want to sell at the peak. Where will you go without also paying peak prices? You want to sell with room to still improve (at a better appreciation base line at that). With rising interest rates, the hot market and supply, NOW May be the best time ever. Let's dive deeper into this.
What impact does the price you pay for the home have compared to the loan you get for said home? HUGE IMPACT. The price difference between paying $350,000 and $355,000 for a home is easy to gauge, $5000. Is it worth paying $5000 more "than list price" right now? In a rising market, of 4% average appreciation per year, that home is going to rise in value by $14,200. By paying $5000 you are bringing a net profit of $9,200 by acting today. So is it worth paying the slightly higher price? Absolutely. You are actually making money and our market was at around 7% last year. So far this year it is looking even better.
Now lets look at the loan you get. Interest rates are on the rise, we hear this, but what does it mean? Let's look at an example of the difference in an interest rate of 4.5% and 5% on a $355,000 home. The monthly payment at 4.5% is $1798.73, rounded to $1799. At 5% the monthly payment is $1905.72, rounded to $1906. That is $107 more per month for the same home at the same purchase price. Let's look even further since the average mortgage is 30 years. The total cost of the home at 4.5% at the end of 30 years would be $647,642. At 5%, paying it off after 30 years would cost $686,059. That's a $38,417 difference! Does .5% make a difference, YES!
The monthly payment also impacts how much home you can afford. The higher the interest rate, the higher your monthly payment for the same home. By reverse engineering the payment to purchase price, lets look at how much home you can purchase using the same $1800 payment. At 5% that $1800 per month will now only allow you to purchase a $335,000 home. $20,000 less home, for the same monthly payment!
The flip side of this is you are able to purchase a little "more home" for the same monthly payment if you ACT NOW. Buy jumping early you can buy the home with the upgrades you really like, for the "same monthly payment". Meaning you will love the home that much more AND it will bring you that much more actually dollar amount in appreciation each year with the same percent.
Lastly, lets blend them together and look at a overall impact: By acting now, AND paying $5000 more than "planned" the appreciation will raise the value of your home by $14,200 and NET you $9200 (approx). Next, will you save over $100 per month, $1200 per year, and $38,000+ in the long run. You purchased a $355,000 home at the same monthly payment as a $335,000 home at 5%, making your money work harder, go farther, and earn you more. $20,000 (discount or More Home) + $1200 monthly payment savings + $9200 Appreciation = $30,400 True Benefit (excluding tax benefits, cash flow for rental, etc.)
Compound the market, savings, interest, appreciation, happiness, tax benefits, and it all adds up... NOW IS THE TIME! Call me today, I would be very happy to discuss these topics, further. Enjoy the Article Below!!
Designated Broker, Owner
Breakthrough Real Estate &
Property Management, LLC
If mortgage rate forecasts pan out, home buyers might see their mortgage payments grow by 15 percent this year, according to a new analysis by CoreLogic, a real estate data firm.
CoreLogic economists predict that mortgage rates will increase by about 0.85 percentage points between November 2017 and November 2018. The median sales price of a home is projected to increase 2.6 percent in real terms over that same period.
Based on that, CoreLogic researchers predict that the inflation-adjusted typical mortgage payment will increase from $804 in November 2017 to $910 by November 2018, a 13.3 percent year-over-year gain. In nominal terms, CoreLogic researchers say the typical mortgage payment’s year-over-year increase would be 15.5 percent.
As such, home buyers could see a larger portion of their incomes devoted to mortgage payments.
Still, adjusted for inflation, the average mortgage payment puts homebuyers’ current costs at historical ranges, CoreLogic researchers note.
“While the inflation-adjusted typical mortgage payment has trended higher in recent years, in November 2017 it remained 36.4 percent below the all-time peak of $1,263 in June 2006,” CoreLogic reports at its Insights blog. “That’s because the average mortgage rate back in June 2006 was about 6.7 percent, compared with an average rate of 3.9 percent in November 2017, and the inflation-adjusted median sale price in June 2006 was $245,259 (or $199,900 in 2006 dollars) compared with a November 2017 median of $212,460.”
Source: “Forecast Suggests Homeowners’ ‘Typical Mortgage Payment’ Could Rise Over 15 Percent this Year,” CoreLogic Insights Blog (Feb. 15, 2018)
Right now the Phoenix area Real Estate Market is exploding! This is wonderful, we were hit hard by the fall and it is wonderful seeing our market just as strong if not stronger than 2007. Currently it is a sellers market, there are not enough homes active, which means prices are rising. As a seller where do you price your home? As a buyer what is a good offer? In any market whether a strong sellers market or a hot buyers market there will be list prices of homes, this means absolutely nothing. Here is why:
It is important to have a great agent guide you through the process. We will help you get the best deal possible on your new home, and help your get top dollar in the time you need when selling your home. Both of these require skill, research, experience and a strong pulse on the market. Find a Realtor you trust and run with them. Breakthrough is always looking for great agents and we love to help buyers and sellers achieve their goals. Give us a call today!
Josh Ezell is Designated Broker and Owner of Breakthrough Real Estate & Property Management
602-938-5415 and Josh@BREPM.com
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