Is 2017 the Year to Move Up to Your Dream Home? If So, Do It Early!

Luxury Homes For Sale 22181

Here’s what our colleagues at Keeping Current Matters had to say about whether this year is the year to move up to your dream home:

************************************************************************************************

If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:

Freddie Mac

While full employment and rising inflation are signs of a strong economy, they also have the potential to push mortgage rates and house prices up. The higher rates and higher prices create significant affordability concerns, which may continue to characterize the housing market for the rest of 2017.”

Lynn Fisher, Vice President of Research & Economics for the Mortgage Bankers Association

By the time we get to the fourth quarter of this year, we will still be under 5 percent – we are thinking 4.7 percent…Something north of 5 percent by the time we get to 2018, and by the time we get to 2019, we show fourth-quarter rates hitting 5.5 percent.”

Mark Fleming, First American’s Chief Economist

Despite some regional disparities, title agents and real estate professionals do not expect increasing mortgage rates to have a significant impact on the housing market this spring. Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5 percent bode well for 2017 real estate.

Len Kiefer, Deputy Chief Economist for Freddie Mac

We will probably see rates higher at the end of year, around 4.5%.”

Bottom Line

If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.

********************************************************************************************

Call The Belt Team at (703) 242-3975. We are happy to walk you through the pros and cons of moving up now and help you make the BEST move!

It’s a Seller’s Market! Should I Downsize Now?

This article about downsizing (or “rightsizing” as we like to call it!) from “Keeping Current Matters” brings up some great points. Call us at (703) 242-3975 if you’d like someone to help lay out your options and walk through current market conditions with you. You might also check out our blog posts:

It's a Seller's Market! Should I Downsize Now? | MyKCM

A study by Edelman Berland reveals that 33% of homeowners who are contemplating selling their houses in the near future are planning to scale down. Let’s look at a few reasons why this might make sense for many homeowners, as the majority of the country is currently experiencing a seller’s market.

In a blog, Dave Ramsey, the financial guru, highlighted the advantages of selling your current house and downsizing into a smaller home that better serves your current needs. Ramsey explains three potential financial advantages to downsizing:

  1. A smaller home means less space, but it also means less time, stress and money spent on upkeep.
  2. Let’s assume you save $500 a month on your mortgage payment. In 30 years, you could have an additional $1–1.6 million in the bank to get you through your golden years.
  3. Use the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed rate mortgage and put at least 10–20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.

Realtor.com also addressed downsizing in an article. They suggest that you ask yourself some questions before deciding if downsizing is right for you and your family. Here are two of their questions followed by their answers (in italics) and some additional information that could help.

Q: What kind of lifestyle do I want after I downsize?

A: “For some folks, it’s a matter of living a simpler life focused on family. Some might want to cross off travel destinations on their bucket lists. Some might want a low-maintenance community with high-end upgrades and social events. Decide what you want to achieve from your move first, and you’ll be able to better narrow down your housing options.”

Comments: Many homeowners are taking the profits from the sales of their current homes and splitting it in order to put down payments on smaller homes in their current locations, as well as on vacation/retirement homes where they plan to live when they retire.

This allows them to lock in the home price and mortgage interest rate at today’s values which makes sense financially as both home prices and interest rates are projected to rise.

Q: Have I built up enough equity in my current home to make a profit?

A: “For most homeowners, the answer is yes. This is if they’ve held on to their properties long enough to have positive equity that will be sizable enough to put a large down payment on their next home.”

Comments: A study by Fannie Mae revealed that only 37% of Americans believe that they have significant equity (> 20%) in their current home. In actuality, CoreLogic’s latest Equity Report revealed that 78.9% have greater than 20% equity. That equity could enable you to build the life you’ve always dreamt about.

Bottom Line

If you are debating downsizing your home and want to evaluate the options you currently have, let’s meet up to help guide you through the process.Call Terry Belt &The Belt Team at 703-242-3975. Don’t you deserve the BEST?!

WHat Is My Home Worth

Thinking of Downsizing? 4 Tips To Simplify Your Life!

The Belt Team works with many clients who are downsizing. (And we like to call it “right sizing.”) So why do people think about moving “down” and how can you simplify the process?

Downsizing Your Home Northern VA Real Estate  Halstead at The Metro II

Here are the most common reasons our clients “right size” to a smaller home:

Travel – A smaller home is easier to maintain. And that means they can travel more – visit grandchildren – or take those trips they’ve always dreamed of. This is not uncommon with empty nesters.

Health – Sometimes their current home is just too much to take care of on top of whatever health concerns they are dealing with.

Financial Freedom – Some people bite off more than they can chew. Or their priorities change (or their job situation) and they don’t want to be tied down to a big mortgage payment.

Commuting Time – Buying a condo or townhouse closer to the city might be enticing after commuting an hour each way in order to have that single family home.

Age – Perhaps it’s time to move into a community where you can get the extra assistance you need and/or have more opportunity for recreation and cultural activities. And maybe it’s time for a place without stairs.

Here are 4 Tips To Simplify Downsizing:

1. Plan Ahead

Schedule appointments with your financial advisor, your Realtor and your lender. Each one will walk you through a variety of things you’ll need to either do or think about: cash flow, market conditions, important amenities, lifestyle changes, tax considerations & more.

And don’t wait until you HAVE to move. As soon as the thought crosses your mind – start gathering information. This will make it SO much less stressful when the time comes. My parents moved several years ago. After 30+ years in the same town, the move was emotional. They didn’t “have to” move at the time, but they were starting to think about things like stairs and maintenance of such a large home. Not long after they moved, Dad fell & became very ill. If they had still been living in the big house, his road back to “normalcy” would have been long extended. But since they were in their condo by that time, he was able to come home so much sooner. Looking back now, they are so happy they moved when they did.

2. Start Educating Yourself To The Market

Online searches are a great way to see what your money will buy AND see what range your current home might sell for. You may find you have to compromise some of your wish list or you might find your money buys more than you think.

3. Family Is An Easy Way To Simplify

If you have children (or grandchildren) who may benefit from some of the “things” you’re ready to let go of, but you’re not ready for those cherished items to leave the family; make family holidays a “shopping time”. Send each visitor home with a (re)gift! You could also enlist one of the younger generation to help you sell unwanted items on Craig’s List. Offer them a percentage of the sales – and you have a win-win. Less clutter for your home. And you’re helping teach entrepreneurial skills & hard work!

4. Open House Instead of Garage Sale

When my parents moved, they had an open house. It was like a garage sale, except the items were free. They were moving from a huge house where they entertained a lot – to a smaller condominium, and Mom had so many lovely things she just didn’t use any more. She wanted to know that they were going to someone who would enjoy using them the way she did. We set up tables and displayed all the items – silver platters, crystal, percolaters, linens. Mom invited folks over – a number of whom were friends in my generation. They were so excited. I still have a friend who talks about how awesome Mom’s turkey roaster is! (They don’t make them like they used to.) Not only did this help clear her house of clutter and make moving easier – it was also a nice way for Mom to connect with folks before she moved.

The Belt Team has helped hundreds of clients downsize. And some on our team have even downsized themselves! If “rightsizing” is in your future, call Terry Belt & The Belt Team at (703) 242-3975. We are happy to meet with you and walk you through all kinds of helpful ideas to help you make the RIGHT move!

Search Homes For Sale in Northern VA On Our State-of-the-Art Search Site

FREE – How Much Is My Home Worth

The Belt Team’s Mission Statement is “Changing Lives For The Better“. if it’s time to change yours, call (703) 242-3975 today!

Downsizing Your Home

Downsizing Made Easy – 4 Tips To Simplify

The Belt Team works with many clients who are downsizing. (We like to call it “right sizing.”) There are a number of reasons people think about moving “down”:

Downsizing Your Home Northern VA Real Estate

Travel – Some of our clients downsize to a home that’s easier to maintain so they can travel more – visit grandchildren – or take those trips they’ve always dreamed of. This is not uncommon with empty nesters.

Health – Maybe your current home is just too much for you to take care of on top of whatever health concerns you are dealing with.

Financial Freedom – Some people bite off more than they can chew. Or their priorities change (or their job situation) and they don’t want to be tied down to a big mortgage payment.

Commuting Time – Buying a condo or townhouse closer to the city might be enticing after commuting an hour each way in order to have that single family home.

Age – Perhaps it’s time to move into a community where you can get the extra assistance you need and/or have more opportunity for recreation and cultural activities. And maybe it’s time for a place without stairs.

Here are 4 Tips To Simplify Downsizing:

1. Plan Ahead

Schedule appointments with your financial advisor, your Realtor and your lender. Each one will walk you through a variety of things you’ll need to either do or think about: cash flow, market conditions, important amenities, lifestyle changes, tax considerations & more.

And don’t wait until you HAVE to move. As soon as the thought crosses your mind – start gathering information. This will make it SO much less stressful when the time comes. My parents moved several years ago. After 30+ years in the same town, the move was emotional. They didn’t “have to” move at the time, but they were starting to think about things like stairs and maintenance of such a large home. Not long after they moved, Dad fell & became very ill. If they had still been living in the big house, his road back to “normalcy” would have been long extended. But since they were in their condo by that time, he was able to come home so much sooner. Looking back now, they are so happy they moved when they did.

2. Start Educating Yourself To The Market

Online searches are a great way to see what your money will buy AND see what range your current home might sell for. You may find you have to compromise some of your wish list or you might find your money buys more than you think.

3. Family Is An Easy Way To Simplify

If you have children (or grandchildren) who may benefit from some of the “things” you’re ready to let go of, but you’re not ready for them to leave the family; make family holidays a “shopping time”. Send each visitor home with a (re)gift! You could also enlist one of the younger generation to help you sell unwanted items on Craig’s List. Offer them a percentage of the sales – and you have a win-win. Less clutter for your home. And you’re helping teach entrepreneurial skills & hard work!

4. Open House Instead of Garage Sale

When my parents moved, they had an open house. It was like a garage sale, except the items were free. They were moving from a huge house where they entertained a lot – to a smaller condominium, and Mom had so many lovely things she just didn’t use any more. She wanted to know that they were going to someone who would enjoy using them the way she did. We set up tables and displayed all the items – silver platters, crystal, percolaters, linens. Mom invited folks over – a number of whom were friends in my generation. They were so excited. I still have a friend who talks about how awesome Mom’s turkey roaster is! (They don’t make them like they used to.) Not only did this help clear her house of clutter and make moving easier – it was also a nice way for Mom to connect with folks before she moved.

The Belt Team has helped hundreds of clients downsize. And some on our team have even downsized themselves! If “rightsizing” is in your future, give us a call today at (703) 242-3975. We are happy to meet with you and walk you through all kinds of helpful ideas to help you make the RIGHT move!

Search Homes For Sale in Northern VA On Our State-of-the-Art Search Site

FREE – How Much Is My Home Worth

The Belt Team’s Mission Statement is “Changing Lives For The Better“. if it’s time to change yours, call (703) 242-3975 today!

Downsizing Your Home