Tag Archives : home purchase

Did you know the real estate market affects you, even if you’re not planning to move or buy a home? Whether you’re a homeowner, renter, or just curious about the economy, the housing market has a ripple effect on everything from personal finances to the broader economy. Understanding these trends can help you stay ahead and make smarter decisions for your future. Curious how? Let’s dive in!

Here are answers and my predictions to four of the most common questions we’re hearing right now:

When Will Mortgage Rates Come Down?
Mortgage rates are influenced by the Federal Reserve’s monetary policy, overall economic conditions, the labor market, and even the geopolitical landscape. Rates have risen as the Fed works to combat inflation. While there’s no exact timeline, many experts suggest rates could stabilize or decrease once inflation is under control and the economy shows consistent signs of improvement. Some predict this could happen in 2025, but it ultimately depends on economic data and future Fed decisions.

For buyers, waiting for lower rates might not always be the best strategy. Acting strategically—such as locking in today’s rates—can make sense, especially as high rates have reduced buyer competition. This often means better negotiating power when purchasing a home.

My prediction? Mortgage rates likely won’t meaningfully reduce until 2026.

When Will Home Prices Come Down?
In short, they won’t—at least not significantly. Housing prices are driven by supply and demand. Currently, most markets in our area face a shortage of inventory, which keeps prices elevated. For prices to drop, we’d need a substantial increase in supply or a major drop in demand. However, cautious builders, a lack of large parcels of land, and homeowners holding onto their low mortgage rates make widespread price declines unlikely.

What we might see instead is a slower rate of appreciation, which offers buyers some relief but not a complete reversal of prices. This environment creates opportunities to purchase at more reasonable valuations with less competition, reducing the risk of buying at a market peak. It’s also a good time to explore long-term rental investments.

My prediction? Our area will return to a normal appreciation rate of 4–5% by 2025.

Will the Housing Market Pick Up Next Year?
The housing market’s trajectory in 2025 will depend on economic stability and consumer confidence. If mortgage rates start to decline, we could see increased buyer activity. Additionally, pent-up demand from buyers who paused their searches due to high rates or election uncertainty could drive new market momentum. Many of these buyers are waiting on the sidelines, ready to jump back in when conditions improve.

My prediction? 2025 will see more home sales than 2024. I do not foresee it as a boom, but
a higher volume than this past year

Is Now a Good Time to Buy?
A market crash like 2008 is improbable. The current market is underpinned by strong fundamentals: tighter lending standards, significant homeowner equity, and sustained demand. While there are challenges —such as affordability issues due to higher prices and rates — these don’t equate to a crash. Instead, the market is undergoing a correction, with cooling in overly hot areas and a shift toward more balanced conditions.What this looks like now is a home selling process that involves negotiation on both sides, more balance between a buyer and seller market. The market will always have fluctuations and instead of fixating on timing the market, focus on securing a home that fits your needs and budget. For both buyers and sellers, this is a time to work closely with real estate professionals to navigate the evolving landscape.

My prediction? While the market presents challenges, strategic buyers who act now can benefit from reduced competition and position themselves for long-term appreciation and stability.

Final Thoughts
The real estate market is always changing, influenced by everything from the economy to politics and even social trends. While rising rates and limited inventory might feel like obstacles, they also open the door to unique opportunities for savvy buyers and investors. By staying informed and understanding the bigger picture, you can make confident decisions—whether you’re searching for your dream home, exploring investment options, or just keeping an eye on the market. Want to know how current trends could impact your plans? Reach out to us today, and let’s discuss your goals!

Buying your first home is an exciting milestone, but it can also feel overwhelming if you’re unsure where to start. Even if you think you’re not ready, proper preparation can help you jump on the right opportunity when it comes. As experienced real estate agents, we’ve had the privilege of helping countless first-time buyers navigate this process. This guide will walk you through what to expect and how to prepare for the journey ahead. Let’s dive into the key steps of buying your first home!

Step 1: Assess Your Financial Situation to Determine Your Homebuying Budget
Before you start dreaming about your ideal home, you need to understand your financial situation. Knowing your credit score, monthly budget, and how much you can realistically afford are essential first steps. Take the time to review your financial standing. This means looking at your savings, debts, and any other expenses that may impact your mortgage eligibility.

A great starting point is to connect with a lender. They can help you figure out how much you can borrow and set realistic expectations before you begin your house search. Pre-approval strengthens your offer later and shows sellers that you’re serious about buying.

Step 2: Get Pre-Approved for a Mortgage to Speed Up the Process
Getting pre-approved for a mortgage is crucial in today’s competitive market. It shows sellers that you are a legitimate buyer and helps you set a concrete budget for your house hunt. The pre-approval process involves submitting financial documents such as tax returns, pay stubs, bank statements, and employment verification.

If you haven’t yet chosen a lender, don’t worry! We work closely with trusted mortgage professionals who specialize in helping first-time buyers. Getting pre-approved also means you’ll know exactly what kind of mortgage you qualify for, giving you confidence as you start your search.

Step 3: Identify Your Needs vs. Wants in a Home
Now comes the fun part—imagining what your new home will look like! But first, you’ll need to distinguish between your “must-haves” and your “nice-to-haves.” For instance, do you need three bedrooms, or could you get by with two? Is a large backyard essential, or could a smaller one work if the house is in the right neighborhood?

Listing your needs and wants helps streamline your search and ensures you don’t get distracted by features that aren’t necessary. This will keep you focused and prevent any future regrets.

Step 4: Start Touring Homes That Fit Your Criteria
House hunting can be one of the most enjoyable parts of the process, but it can also be overwhelming. We can guide you through various neighborhoods and homes that meet your criteria. As exciting as it can be to tour different properties, remember to stay grounded in your budget and priorities.

It’s normal to have to make compromises, but don’t feel pressured into buying a home that doesn’t meet your most important needs. With patience, you’ll find a house that checks off most of the boxes!

Step 5: Make an Offer on Your Dream Home
Found the perfect home? Great! Now it’s time to make an offer. This is where things can get a little nerve-wracking, but don’t worry—we’re here to help you craft a competitive offer based on current market trends and property value.

We’ll negotiate on your behalf, whether it’s the final purchase price, closing costs, or contingencies, to ensure you get the best possible deal. And remember, it’s not just about offering the highest price but also about presenting the most appealing terms to the seller.

Step 6: Conduct a Home Inspection Before You Finalize the Deal
Once your offer is accepted, the next crucial step is the home inspection. A professional home inspector will assess the property to ensure there are no major structural or mechanical issues. The inspection will give you peace of mind and help you avoid any unwanted surprises after closing.

If the inspection uncovers any problems, we’ll help negotiate repairs or price adjustments to address these issues. After this, you’ll be ready to move forward with the closing process.

Step 7: Close the Deal and Get the Keys to Your New Home
The final step is closing, where you’ll finalize your mortgage and sign all the necessary paperwork. Once everything is completed, you’ll receive the keys to your new home.
Congratulations, you’re officially a homeowner!

Final Thoughts: Your Journey to Homeownership
Buying your first home can feel intimidating at times, but with the right preparation and guidance, it’s one of the most rewarding experiences. From setting a budget to closing the deal, each step is essential in making your homeownership dreams come true.

If you’re thinking about taking the plunge or simply want to learn more about the process, feel free to reach out. We’re here to guide you every step of the way, turning your homeownership dreams into reality!

Frequently Asked Questions (FAQs)

1. How much should I save for a down payment on my first home?
Typically, first-time homebuyers should aim for a down payment of at least 5% to 20% of the home’s purchase price. However, some loan programs offer lower down payment options.

2. How does getting pre-approved for a mortgage help?
A mortgage pre-approval helps you understand your borrowing power, sets your budget, and strengthens your offer when bidding on a home.

3. What should I prioritize when house hunting?
Focus on your needs first—such as location, size, and budget. Wants like extra space or luxury finishes can come second to make sure you stay within budget.

4. How long does the home-buying process take?
From start to finish, the home-buying process typically takes 30 to 60 days, depending on factors like loan approval and the local housing market.

5. Is a home inspection necessary?
Yes! A home inspection ensures there are no hidden issues with the property that could cause problems later. It’s a crucial step before finalizing any purchase.

On August 17, a historic change reshaped real estate transactions, following a settlement by the National Association of Realtors (NAR). This impacts how compensation is handled, bringing more transparency to the process for both buyers and sellers. But what exactly has changed, and how does it affect you as a consumer of real estate services?

Understanding the Changes in Real Estate Compensation

While compensation in real estate transactions has always been negotiable, the way this compensation is paid might change. When selling a home, the homeowner now has a choice of whether to pay a buyer’s agent or not. This option has always existed, but a recent lawsuit and the resulting rule change have drawn more attention to it.

Benefits for Consumers
This shift is advantageous for consumers as it brings more transparency and disclosure about who pays what and how much. For professional real estate agents, this change also highlights their value—or lack thereof—to consumers.

To enhance this transparency, the Georgia Association of Realtors has updated the forms used in transactions. For instance, the Exclusive Seller Brokerage Engagement Agreement, the document used to engage a client when marketing and selling their home, now provides more details about compensation paid to both the seller’s broker and the buyer’s broker. Real estate professionals can now better explain how compensation works, the choices sellers have, and the pros and cons of offering or not offering compensation to a buyer’s broker. Ideally, this conversation should have been happening even before the rule change, but that was not always the case.

New Requirement for Buyers
Another significant rule change requires buyers to sign an agreement with their real estate agent before they start looking at homes, whether in person or virtually. This document has been in use by many Realtors, including The Curtin Team, but is now mandatory. The Georgia Association of Realtors has updated this document to clearly state the compensation the buyer’s broker will receive. Known as the Exclusive Buyer Brokerage Engagement, this document outlines scenarios where a buyer’s broker may be compensated, whether directly from the buyer, the seller, or the seller’s broker, and specifies the amount and services covered.

At The Curtin Team, we have always trained our partner agents to begin a relationship with a buyer by meeting to understand their goals and educate them on the process—including how we are compensated and the benefits of signing an engagement to work together.

Types of Compensation for Buyer’s Brokers
Compensation for brokers working with buyers can take various forms, including but not limited to:

– A fixed-fee commission paid directly by the buyers.
– Concessions from the seller.
– A portion of the listing broker’s compensation.

I am thrilled that this practice is now required, bringing more transparency to our industry. I believe it will elevate professionalism and encourage those who may not best serve buyer clients to pursue other directions. This change presents an opportunity to showcase our value.

Industry Impact
“This isn’t a significant shift for us, but our industry has never seen anything like this,” said Joanne Curtin, Founder of The Curtin Team. “We have more buyers coming to us now seeking expert guidance, and we are confident in providing a superior customer experience by having these conversations and highlighting potential value gaps between Realtors,” she added.

We are already seeing a shift in buyer engagement and increased transparency. Buyers might want to limit the number of days they agree to the engagement or restrict the contract to specific homes.

Changes in Communicating Compensation
Another new rule states that offers of compensation cannot be communicated on Multiple Listing Services (MLS). What does this mean? If a listing broker gets a seller’s approval to make an offer of compensation to a buyer’s broker, it cannot be shared on an MLS. However, it can be communicated through other marketing avenues. Therefore, it is more crucial than ever to hire a real estate professional with a strong marketing presence and a solid local agent network.

Benefits of Offers of Compensation
Offers of compensation benefit both buyers and sellers. For buyers, it ensures access to representation throughout the homebuying process, helping them achieve homeownership on terms that best suit them. For sellers, it attracts more buyers and broadens the pool of prospective buyers by lowering the barrier for those who may not be able to afford to pay buyer agent compensation out of pocket.

For Sellers
Compensation is negotiable. The amount you pay should reflect the value you receive. Your real estate professional should guide you through the available options and help you make the best choice for your home sale. Trust your real estate professional, but if they cannot clearly explain your options and justify their compensation, seek a second opinion.

For Buyers
In Georgia, it’s “buyer beware.” Due diligence falls on the buyer, so having a professional guide you is wise. Asking a Realtor to show you a home without signing an agreement is not an option. If someone is willing to break the law and do it anyway, consider whether that is the person you want representing your best interests. Now more than ever, a strong relationship with an experienced real estate team is crucial!

We are here to answer your questions and provide guidance. Please reach out if we can assist you.

In this Agent Spotlight video meet Heather Woodruff, a dedicated buyer’s agent on the Curtin Team. Originally from Boston, Heather made the exciting move to Georgia with her family, bringing her extensive real estate experience from the Boston market to the vibrant communities of Alpharetta, Roswell, and East Cobb.

Heather shares her journey of restarting her business in Georgia and the joy she finds in exploring her new surroundings. The move has brought her closer to extended family, and she loves the friendly atmosphere and beautiful spring weather of the South.

Before embarking on her real estate career, Heather was a pediatric physical therapist. Her passion for helping others seamlessly transitioned into real estate when she sold her own home and fell in love with the process. This inspired her to make a significant career change and become a realtor.

Heather holds several special designations in real estate, including being an Accredited Buyer’s Representative (ABR), Seniors Real Estate Specialist (SRES), Real Estate Collaboration Specialist in Divorce (RCS-D), and certified Real Estate Negotiation Expert (RENE). Her genuine love for getting to know people and her attentive listening skills make her an exceptional agent who truly cares about her clients’ needs.

Don’t forget to like, comment, and subscribe to the Curtin Team channel to stay updated on more enriching content like this!

WATCH THE FULL EPISODE HERE

Remember your friends who bought a house right at the beginning of Covid 19? At the time, we thought it was risky, as time went on we see what an amazing opportunity it was to purchase. Similarly, we may be looking back at those friends who purchase in the first few months of 2024 in the same light. There’s hesitancy with Buyers right now between interest rates, an election year and uncertainty in the real estate market.

Our data points to a rising market. The Federal Reserve has already indicated they will ease interest rates in 2024. Waiting for lower rates, like the majority of Buyers will do, means you’ll likely pay more. That’s because as mortgage rates drop, housing demand will surge, driving prices up. As mortgage rates drop, Buyers will come flocking back into the market, driving up competition. So as prices rise, and competition rises, we will be back to multiple offers and Sellers back in the driver seat. There is a window now with a more balanced market. Over the next few months, Buyers don’t necessarily have to make a rushed decision with little due diligence period and reduced negotiating leverage, giving Buyers more time to make an informed decision.

Home prices in our area rose over 6% from the start of 2023. Home prices are expected to continue to rise throughout 2024. Several factors are contributing to home price appreciation in our area. Despite the new home construction that is going on all around us, the new home inventory is still falling short of the housing stock we need. This problem goes back to the recession of 2009-2011, home building came to a screeching halt. For 3 years, we didn’t see any new building, and builders haven’t closed that gap. Adding to that were supply chain issues caused by Covid 19, to some degree builders are still dealing with short supply and labor. There’s still not enough being built at a fast enough pace to meet demand. Couple this with the homeowners who are not willing to part with their 3% mortgage rate, there are not enough homes on the market. Supply and demand dictates prices. More supply of Buyers, less supply of homes equals rising prices. Additionally, we continue to have a healthy supply of Buyers relocating to our area from out of state, attracted to the lifestyle and affordability compared to many other metro areas. Many out of state Buyers purchase in the late Spring and Summer (choosing to move in between school sessions). Waiting will place you in direct competition with these Buyers who often have company support and a tight timeline, making for tough competition. Often they are willing to pay asking price or above to secure their housing quickly and get settled in their new job and state.

If you’re renting, and you’re financially able to purchase, you should consider buying now. The sooner you purchase a home, the sooner you start building equity through mortgage paydown and price appreciation. Your costs are fixed, unlike rent that is likely to be increased each year. And when mortgage rates fall, you can consider refinancing. There’s peace of mind having predictability with your monthly housing costs. Inflation, interest rates or a change in your landlord’s situation will not impact your housing or payment situation once you’ve locked into a fixed rate loan in your own home. There are tax advantages you may be missing as a renter as well. Consult with your CPA for how these tax breaks would apply to you as some income limitation may apply, here are a few common ones.
 Mortgage Interest- you can deduct your mortgage interest.
 Real Estate Taxes – you can deduct state and local taxes in the year you pay them.
 Home Office Deduction – if you’re a small business owner who works from home and use part of your home exclusively for the primary place of business, you can deduct many home expenses.

Tom Curtin, CEO of the Curtin Team, and Ben and Candice Thorton from Capital Mortgage Solutions, LLC, actively discuss cooperative buying and aiding first-time homebuyers. They dispel myths regarding down payments and explore alternative financing methods. It is revealed that a primary residence can be purchased with as little as a 5% down payment, and some loan programs mandate even less. Furthermore, they delve into the possibility of gift funds, which parents, friends, or close family members can offer. Conventional guidelines dictate that gift funds must originate from a direct family member or fiancé. 401k loans are also an option for individuals who lack a family member or employer to help with the down payment. Borrowing from a 401k to make a down payment on a home has no impact on the debt-to-income ratio.

Check out our previous blog post about the real cost of waiting to buy –
https://www.curtinteam.com/the-real-cost-of-waiting/

If you’re considering continuing to rent, maybe you think it’s best to wait until prices come down, or maybe you’re waiting for interest rates to come down. Or maybe you just don’t see the value in taking on the responsibility of owning a home. But did you know home ownership is one of the largest factors in building wealth? It is the differentiator between those that bought and those that continue to rent. How big of a difference can it really make, you ask? Let’s look at the tale of two friends, Harry and Randy, and really dive into the numbers to see what a difference buying a home now and continuing to rent will make in a 7-year period.

Harry Homeowner just purchased his new home for $400,000. He used FHA financing and put 3.5% down, or $14,000. His loan would be $392,755 because of the up-front 1.75% mortgage insurance that gets rolled into the loan on FHA loans. His monthly payment would be:

Principal & Interest – $2,613
PMI – $273.42
Estimated Taxes & Insurance – $474
Total payment = $3,360.76

After 7 years, Harry will have paid $181,546.66 in interest and $34,171.22 in principal, leaving a loan balance of $351,829.02. Harry has gained $34,171.22 in principal paydown, which can also be looked at as a forced savings. But wait – it gets better. Harry will also gain equity. The average equity increase annually is 4% (in metro Atlanta, it’s been 5% average.) After 7 years at an average of 4% annual appreciation, Harry’s home is now worth $526,327. That’s a gain of $126,327. Adding in the principal paydown of $34,171, Harry is sitting on a nice $160,498 gain. Harry could access some of this equity through a Home Equity Line of Credit and perhaps purchase an investment property (smart choice Harry!) or decide it’s time to upgrade and roll those gains into a new home and start the process over.
Another scenario that would likely have occurred for Harry is that because of the gain in the property value and equity, the PMI would drop off – most likely Harry would have refinanced his house and the payment would have reduced by $300-$400, so Harry’s payment in year 7 would be estimated to be around $2,900.

Randy Renter is renting a cool two-bedroom apartment in a hip, walkable location for just $2,000/mo. Instead of making a mortgage payment, Randy is a disciplined dude and he is saving the difference in his rent payment and what his friend Harry is making in a mortgage payment. So he’s saving $1,360 per month.
Randy is smart with his money, and he’s invested it in a mutual fund and was able to obtain an average annual return of 12%. Randy would now be sitting on a cool $167,000.
Aha you say: “So buying is not the right move! I’d actually have more money by saving money by renting (assuming you’re as disciplined as Randy) and not buying.”
However, we didn’t factor in that rent continues to increase every year. So in reality, Randy’s fixed cost of living continues to increase, while Harry’s fixed housing cost is locked in (and likely reduced when he refinances). Let’s rerun this scenario factoring the rent increases and consequently the savings decreases for Randy.
Average rents increase by 6% per year in our area. Randy’s two bedroom apartment rent looks like this over 7 years:
Year 1 $2,000
Year 2 $2,120
Year 3 $2,247
Year 4 $2,382
Year 5 $2,525
Year 6 $2,676
Year 7 $2,837
At the end of 7 years, again Randy is super disciplined and did not touch any of his savings, he now has $138,855 saved.

Let’s compare.
Harry has $160,498 in equity/net worth.
Randy has $138,855 in equity/net worth.
Harry has a fixed monthly housing payment.
Randy also has a monthly payment that will continue to rise and is beyond his control.
Randy can buy too, but the same house Harry bought 7 years ago will cost Randy a lot more.
It has been said “the best time to plant a tree was 30 years ago, the second-best time is today.” The same can be said of real estate. Don’t wait to buy real estate, buy real estate and wait!

The Curtin Team’s CEO, Tom Curtin and Director of Sales, Christy Smith explain the benefits for first time home buyers in today’s market. One of the biggest advantages of buying a home today is the stability and equity you get. Waiting a year or two can cost you tens of thousands of dollars in equity loss. And as rental rates continue to rise, a fixed rate mortgage payment stays the same. Also, many sellers and lenders are now offering to pay closing costs and buy downs on rates. Large down payments often scare off first time homebuyers, but some loans require as little as 3.5% down. As an example, the down payment on a $400,000 house can be as low as $14,000. And there are many ways to get that down payment including finding places in your budget to cut back and save, loans from family, or loans against a 401K to cover some or all it. The news of interest rate hikes shouldn’t scare off potential home buyers either. If rates go down, refinancing is available and if rates go up, you’ll be glad you locked in a lower rate.

The Curtin Team’s CEO, Tom Curtin and Director of Sales, Christy Smith explain the benefits of mortgage rate buy downs for buyers and sellers. Like many practices in the world of Real Estate, mortgage hacks depend on Buyer/Seller goals, timelines, and preferences. Buy-downs are unique, though, because they offer direct benefits to both Buyers and Sellers in the short term and long term. They allow houses to be sold more efficiently, less stress with high monthly payments for Buyers, and less interest payment over time. If you are in the market to either buy or sell a home, don’t forget that there are ways for you to save money during the process.

The real estate market is constantly shifting. Do you know how to position yourself for success as a buyer or a seller? Our team of real estate experts will be available to answer your questions on August 10 at 10am (Eastern Time). Dial into our Zoom call and join us for an informative Q and A.

Register Here
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