Online Home Searching is Good—But Here’s Why Using an Agent is Better

These days, it’s easier than ever before to search for a home online—and tons of buyers are doing it. In fact, 93% of buyers start their search on a website…but that doesn’t tell the full story. In addition to websites, 86% of buyers are also still using a real estate agent to find out more about homes for sale in the area.

So, with so much technology at our disposal, what is it about real estate agents that keeps people coming back?

 1. There’s More to Real Estate Than Finding a Home Online.

People pointing at homes for sale on a laptop screen.

Guess how many estimated steps you’ll take during the real estate process. Have a number in your head? It’s likely not high enough. In reality, there are around 230 possible actions that can take place in a successful real estate transaction, and the search process is just a drop in the bucket!

Touring homes, submitting an offer, getting in-depth info on a property, setting up an inspection—it’s a long list of to-dos, and not many of them can be taken care of online. You’ll want someone by your side who’s already been through it all!

2. Negotiations are Tricky.

People shaking hands in front of a white brick wall.

Want to save thousands on your home purchase? It’ll take some stiff negotiating. There are several places during a sale where there’s opportunity to open and reopen negotiations, from the initial offer, to the appraisal, to post-inspection. If you want to capitalize on the potential for a lower price, you’ll need to work with a real estate agent who knows exactly what to say and exactly when to say it.

3.  Your Offer Needs to Set You Apart.

People discussing an offer on a home.

You may not realize it now, but the offer you submit determines whether or not you make it to the seller’s next round of considerations. Are they offering a fair price? Should you offer over or under? Does it make sense compared to other local sales trends…or are they trying to get more than their home’s worth?

An offer is a lot more than just a number—it’s your entryway to the rest of the buying process. Working with a real estate agent who knows their way around market trends is the best way to confidently know that your offer is competitive enough.

Enlist the Help of Local Real Estate Agents

From the online search to the closing negotiations, you can trust Linda Craft & Team, REALTORS® to be there through every step of your buying journey. Don’t go into your real estate experience underprepared—let us help you find your dream home for a dream price.

Whenever you’re ready to get started, we’re just a phone call away!

Find Out Why More Than Half of Buyers are Wrong About Down Payments

True or false: if you’re buying a home, you need to have at least a 20% down payment? If you answered true, you aren’t alone—so did 62% of Americans.

But in reality, that couldn’t be further from the truth—and you don’t have put off your home-buying dreams just because you can’t come up with 20% down!

While a 20% down payment will help you avoid private mortgage insurance (PMI), it isn’t some sort of home-buying hurdle that you must clear in order to buy. In fact, it’s far from the most common amount that U.S. buyers put down!

Here’s the truth about down payments—and why you shouldn’t let that 20% number prevent you from reaching your buying goals.

The Truth about Down Payments

A piggy bank standing against a white background.

According to NerdWallet’s 2019 Home Buyer Report, around 6 in 10 Americans think you need a 20% down payment in order to buy a house. Because of this, they also tend to think that it takes several years to come up with the necessary funds for buying.

Unfortunately, this way of thinking unnecessarily postpones plenty of people’s home-buying dreams!

The truth? The most common down payment amount—put forward by around 32% of buyers—was just 5% or less. Put that in terms of concrete amounts, and it translates to just $7,500 on a $150,000 home or $15,000 on a $300,000 home.

Other Common Down Payment Amounts

A single dollar bill sitting on a wooden surface.

While 5% or less is the most common down payment amount, it’s still just one of the many options that buyers choose. Here’s how the rest of the numbers break down:

  • 16% of buyers put down 6 – 10%
  • 23% of buyers put down 11 – 20%
  • 18% of buyers put down more than 20%
  • 10% of buyers bought their home outright

A 20% down payment is a great goal, but you don’t have to feel locked into that amount! Instead, consider how much money you’d feel comfortable with putting down, then work from there.

Buyers are Optimistic

A woman packing up her home and writing on a cardboard box.

Despite prevailing misconceptions about down payments, buyers are still feeling optimistic about the market. Around 42% of Americans feel better about their home-buying prospects this year, which is up almost 20% from last year.

Additionally, 44% of people say that the current economic and political conditions make them more likely to buy in the next year, which is around a 10% increase from last year.

Long story short? Now’s a great time to buy!

Find Your Dream Triangle Home

Buying a home is major step, so it’s important that you have trusted and experienced professionals on your side. At Linda Craft & Team REALTORS®, we have over 300 years of combined real estate experience, making us well-equipped to provide you with everything you need to find home-buying success.

Take some time to explore our resources for home-buyers, learn a little more about what our past clients have to say, and use our specialized search tool to narrow down your options. Once you’re ready to get started, we’d love to talk details!

Your Latest Course in Homebuying: The 5 Acronyms You Need to Know

You might think that since you’ve put some distance between now and high school and college, your days of memorizing vocabulary and learning new definitions is long gone. But if you’re buying a home, then you’re going to want to dust off those skills and start studying up.

Real estate comes with its own confusing jargon, and knowing what each term means makes you all-the-more prepared to tackle the process. Here are the top five homebuying acronyms that you should add to your vocabulary!

APR

Calculator

APR, or annual percentage rate, represents the annual cost of borrowing money based on your loan amount, interest rate, and other specific fees. The calculations for APR are a little confusing, but there are plenty of online calculators that can help you figure out what the number might look like for you!

FRM

FRM stands for fixed-rate mortgage, which is one of the most common types of mortgage. Luckily, this one pretty much means what it sounds like: with FRM, your interest rate will not change during the entire term of your loan.

DTI

A credit card.

One of the most important aspects of your finances that a lender looks at is your DTI, or debt-to-income ration. Your DTI is calculated by measuring your total monthly income against your total monthly debt payments. Ideally, you’d want to have around a 36% DTI.

PMI

If you can’t afford a 20% down payment, you’ll have to pay PMI, or private mortgage insurance. This acts as an added safeguard for lenders who work with you by ensuring that they’ll be protected from losses if you default on loan payments. Once you’ve paid off around 80% of your home, you’ll no longer have to pay PMI.

P & I

People at a bank.

P & I is just a fancy way of saying principal and interest, which are the portions of your monthly mortgage payment that go towards paying off the money you borrowed to purchase your home.

Ace Your Real Estate Experience

Of course, these five acronyms aren’t the only ones that’ll come up during your buying journey—but we’ll be around to make sure you can handle any other letter combinations that get thrown your way.

At Linda Craft & Team, REALTORS®, we’ve been working in the Raleigh real estate world for years, and we’d be more than happy to leverage our experience to your benefit. Get to know a little more about what we bring to the table, explore our resources for buyers, and give us a call when you’re ready to get started!

The Biggest Reasons Why Homeowners are Happy… and Renters Aren’t

Coffee or tea? Cake or pie? Rent or buy? Life is full of big questions—some a little harder to answer than others. But in the case of renting versus buying, there are a few big reasons why ownership still wins the battle.

Thinking about making the jump from renting to owning? Here’s how your life might change.

Does Owning Make You Happier than Renting?

A family with pets.

That’s the big question posed by the most recent Bank of America Homebuyer Insights Report. The answer? A resounding yes. In fact, out of the modern homebuyers interviewed, 93% of respondents said that owning a home made them happier than renting, and 83% said that they would never go back to renting after owning.

It doesn’t just end with happiness, though—79% of homeowners believe that buying their own property has changed them for the better and 88% say it’s the best decision they’ve ever made.

On the flip side, according to the latest Zillow Housing Aspirations Report, 45% of renters regret not buying, with the biggest reasons being lack of customization opportunities, high rent payments, and lack of private outdoor space.

The Effects of Owning a Home

A grandmother and granddaughter.

You hear a lot about the financial equity of owning a home, but Bank of America’s survey sought out information on the “emotional” equity of ownership—which brought up some interesting numbers.

When asked if they viewed the home as a place to make memories or a financial investment, more than half of respondents chose the former. After buying, more than 76% of people pursued new hobbies—including landscaping and gardening, cooking and baking, and interior design.

And it’s not just the individuals: family relationships also benefited. Homeownership allowed 49% of respondents to entertain more often and 24% to bring the entire family under one roof.

Current Homeowners versus Prospective Homeowners

A house.

If you’re still on the fence about buying a home, consider these numbers:

  • Time spent pursuing hobbies
    • Current homeowners: 82%
    • Prospective homeowners: 63%
  • The quality of social life
    • Current homeowners: 78%
    • Prospective homeowners: 58%
  • Financial well-being
    • Current homeowners: 77%
    • Prospective homeowners: 42%
  • Quality of life overall
    • Current homeowners: 88%
    • Prospective homeowners: 70%

Ready to Become a Homeowner?

Owning a home comes with a myriad of benefits—both financial and emotional. If you’re ready to take the leap into homeowning, then congratulations!

At Linda Craft & Team REALTORS ®, we’re dedicated to not only finding you the best Triangle-area home for your wants and needs, but also ensuring that your journey is seamless and stress-free. Browse some of the resources we have to offer our buyers, and use our specialized home search tool to narrow down your options. Once you’re ready to get started, just give us a call!

Why Owning a Home is One of the Most Effective Saving Strategies

Over the past few months, we’ve talked a great deal about the benefits of owning a home—and why today’s market is one of the best windows to buy.

With a new set of numbers released on home equity, we’ve got another major reason why owning a home pays: it forces you to save, and in the process, those savings only appreciate.

It’s All About Equity

A jar of coins.

As you pay off your home, you start building up your equity—which is, in short, the difference between the current value of the home and what you still owe on the home. As your home appreciates in value and you chip away at the payments, your equity increases. Think of it as a “forced savings account.”

During the housing crisis and recession from 2006 to 2008, it was common for homeowners to dip into their equity and pull out money for other big ticket purchases, which ended up spelling major trouble for their personal finances.

Since your equity is technically an asset, it’s part of your net worth. The greater your equity, the greater your net worth, the better your chance of building future wealth.

The Latest Numbers

A person paying off their bills.

According to a recent report from CoreLogic, the average homeowner gained a staggering $65,000 in equity over the last 5 years. Not only that, but another study from the Urban Institute found that 37.1% of all homes in the country are totally mortgage-free. Of the remaining 63% of homes, about half of them have at least 50% equity—and that number is only going up.

Crunch the numbers, and you’ll find that just over 50% of all homes in the country have at least 50% equity. That means a whole lot of homeowners are continuing to pay into that “forced savings account” and are setting themselves up for major future wealth in the process.

The Importance of Equity

A house.

By building up your equity, you’re ensuring that you have a firm financial base to stand on in the future. It does, however, take time to accumulate. That’s why it’s important to take advantage of current market conditions, and begin your journey to increased equity.

Ready to Invest in Your Savings Account?

Buying a home now means building your equity sooner and ensuring a stable financial future. Now’s the time to jump in! If you’re ready to get started with the buying process, the Linda Craft & Team, REALTORS® is here to help. Take some time to browse our resources, use our specialized search tool to narrow down your options, and give us a call to get started.

Nervous About a Recession? Here’s Why You Don’t Need to Worry about a 2008 Repeat

If you’re getting ready to buy a home soon, then you’ve probably heard whispers of an imminent recession—and the real estate market and recessions don’t have a great track record. Although it’s hard not to be plagued by memories of the 2008 recession and the housing market crash, you need to know: the conditions of 2008 will not happen again.

Here’s what makes this year’s market different, and why you shouldn’t be nervous about buying a home.

Even Though People are Wary…

People talking around a laptop.

It must be addressed that the events of 2008 are enough to give any buyer some PTSD. In fact, a recent survey from realtor.com found that 53% of buyers (both first-time and repeat) believe a recession will occur this year or next, and 57% believe it’ll be worse than 2008. On top of that, 55% said they would cancel their plans to move if a recession did occur.

While these people are certainly right in their prediction that a recession could soon hit, it won’t have nearly the same effect on the housing market that it did ten years ago.

…The Housing Market Won’t Resemble 2008

A large house.

Jeff Tucker, a Zillow economist, sheds a little more light on this point. In a recent article, he outlines how unusual the 2008 housing market was—largely because of risky borrowers taking unpredictable, adjustable-rate mortgages when they may not have been financially prepared. This year, however, the market is mostly made up of buyers with great credit scores taking out predictable, 30-year fixed-rate mortgages.

George Ratiu, a senior economist for realtor.com, echoes Tucker’s sentiments, adding that a recession now would likely be much shorter than the one we saw in the past.

2001 vs. 2008

In the recent history of our country, there have been two major recessions: 2008 and 2001. While most people vividly remember the almost 20% drop in home prices during the 2008 recession, not many remember that homes prices actually went up almost 7% during 2001’s.

When it comes to the next recession, you can expect conditions to be more similar to 2001, not 2008.

Still on the Fence?

People shaking hands.

It’s true that no one can predict the future, and the state of the economy could greatly change over the next 12-24 months. While it’s great to be cautious, it’s also important to keep a realistic mindset—and listen to the experts.

If you’re hoping to buy a home soon, you should know that you don’t have to worry about 2008-like conditions. The current and future market are still great for buying!

Start Your Buying Journey

Ready to get started with your home search? Then Linda Craft & Team REALTORS® is here to help. Get to know more about our expertise and local knowledge, explore some of our resources, and give us a call when you’re ready to explore all of your Raleigh real estate options!

How A Daily Latte Affects Your Real Estate Goals

With summer on its way out and fall just around the corner, it’s prime latte season. Pumpkin spice, maple pecan, salted caramel—some of the best seasonal flavors make their debut!

While it’s great to treat yourself to a cup of coffee every now and then, those small expenses can really add up—especially if you’re pinching pennies for a down payment.

The Latte Method

A person making a latte.

Recently, Realtor.com put together a report titled “A Latte a Day Keeps Homeownership Away.”

By calculating the average down payment and median home price for a number of major US cities, the minds at Realtor.com were able to figure out just how much you need to save every day in order to afford a down payment within the next five years, representing that number with the equivalent amount of lattes.

The title may be a little pessimistic, but when you take a hard look at the numbers, the results are undeniable.

Daily Savings

A person reading a book and drinking a coffee.

The average price of a latte fluctuates based on city, but typically hovers within the $3.50 to $3.80 range. Depending on your usual coffee order, that number could be even higher—for example, a tall pumpkin spice latte comes in at $4.25.

Here’s what you’d need to save daily to afford a down payment within five years:

  • Atlanta: 1.6 lattes
    • Average down payment: $10,450
    • Median price: $335,436
    • Daily savings: $5.72
  • Chicago: 2.9 lattes
    • Average down payment: $19,580
    • Median price: $312,098
    • Daily savings: $10.72
  • New York: 6.8 lattes
    • Average down payment: $45,717
    • Median price: $564,500
    • Daily savings: $25.04

Raleigh falls on the lower end of the range, coming in at 2 lattes a day, or around $7.30. When you break your down payment into these smaller numbers, you can see just how much a coffee day affects your overall budget.

Buying Your First Home

A person holding up several bills.

Figuring out your finances while buying your first home is a daunting process, but not an impossible one. If you need help creating your five-year plan, Linda Craft & Team REALTORS® can help. Start things off by figuring out what your extra daily expense might be—whether it’s a latte, lunch, or an after-work drink—and cutting it back. Then, use our mortgage calculator to get some concrete numbers!

Need Some Budgeting Help?

Trust in the expertise of Linda Craft & Team REALTORS®. With over 300 years of combined real estate experience, we have what it takes to not only help you save up for your new home, but also successfully lead you through the in and outs of the buying process.

Take a look at some of our resources for buyers, browse a few homes on the market, and give us a call to get started.

The Best Real Estate Advice for Millennials—from a Millionaire

If you’re a millennial, then you’re probably a little tired of hearing all the criticism towards your generation. Buying avocado toast instead of saving money, always texting instead of calling—they’re all pretty unfair generalizations.

Another common criticism of millennials? That they never buy homes. But actually, that couldn’t be further from the truth! In fact, millennials represent the largest portion of homebuyers in the market.

And according to millionaire David Bach, buying a home is one of the best decisions you can make for your future equity.

It’s All About Owning

A beautiful home.

Since you’re likely working with limited funds, your first home probably won’t be your dream home—but that’s okay. Getting your foot in the door and buying a home is the stepping stone to building wealth and equity, according to Bach. Even if your budget isn’t as high as you’d like, it’s best to buy as soon as you can!

In Bach’s opinion, you should start by crunching the numbers. You might think you can’t afford a home, but setting clear goals based on concrete numbers will help put things into a realistic perspective.

A good rule of thumb? Make sure your home payments don’t total more than 30% of your take-home pay.

David Bach’s Background

A person pulling money out of their wallet.

Why should you trust what Bach has to say? Well, his resume speaks for itself. A self-made millionaire, Bach has written nine consecutive New York Times bestsellers.

Not only that, but he’s also one of the only business authors to ever have four books on the New York Times, Wall Street Journal, BusinessWeek, and USA Today bestseller lists at the same time. His book The Automatic Millionaire even spent 31 weeks on the New York Times bestseller list!

Additionally, Bach is considered to be one of the foremost authorities on finance, appearing as a contributor on NBC’s Today Show,  ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS.

Why Now is a Great Time to Buy

A person holding up house keys.

If you’re all in on following Bach’s advice, then you should know: now is the perfect time to buy a home—and we’re not just saying that.

Mortgage rates are hitting near-record lows, and home prices are steadily increasing. Buying a home soon means saving on payments now and benefitting from higher prices in the future.

Ready to Get Started?

We understand that buying a home is a major decision. But with over 300 years of combined real estate experience, in-depth area knowledge, and a wide collection of resources, Linda Craft & Team REALTORS® are well-equipped to lead you to buying success.

Explore a few of our resources, kick off your home search, and give us a call when you’re ready to get started.

The 2 Biggest Buying Myths—And Why You Shouldn’t Believe Them

Buying a home is a major decision—one that you should spend plenty of time thinking about. But for many people, that thinking stage quickly becomes filled with anxieties—about money, about mortgages, about lenders—and they may decide to postpone their buying plans.

At Linda Craft & Team REALTORS®, we want to break some of the negative stigma around the buying process. Here are the top two myths that scare away buyers and why you shouldn’t believe them.

Myth #1: The 20% Down Payment

Professionals meeting at a bank.

While a 20% down payment is preferred, it’s far from required—even though 22% of renters and 31% of homeowners believe that it is! In fact, buyers often overestimate how much they need for a home—so much so that it delays their plans.

A recent report from Freddie Mac found that if a 20% down payment was actually required, 70% of people planning on buying the next three years would delay their purchase. Not only that, but 30% of buyers said they would never be able to afford a home under those conditions.

In reality, there are a number of programs available to buyers that help lower your down payment, from VA loans to FHA loans. Give us a call, and we can help you figure out what you qualify for.

Myth #2: The Stellar Credit Score

A person holding out a credit card.

Many people think a “good” credit score is right around 780—and that you need a “good” credit score to qualify for a loan. But according to Ellie Mae’s Origination Insight Report, that number is way above average. In fact, over 50% of approved mortgages had credit scores anywhere between 600 to 749—way below what most people consider “good.”

Even if you don’t have an outstanding credit score, odds are, it’s still good enough to snag the right financing. Need some tips on upping your credit score? Just reach out to my team, and we’ll help you out!

Don’t Let Buying Myths Hold You Back

Buying a home is certainly a tricky process, but it’s often more attainable than people think—especially when you work with a professional. At Linda Craft & Team REALTORS®, we have over 100 years of combined real estate experience around the Triangle, and we’d love to leverage our skills to help you find your dream home.

Take some time to explore our resources for buyers, and give us a call when you’re ready to learn more about your buying options!

Is Moving in with Your Family the Latest Real Estate Trend?

Moving back in with your parents after a few years? You’re certainly not the only one!

Maybe your loved ones are growing older, and you want to spend more time with them, or they need a little extra help around the house. Maybe finances are tight, and you’re saving up for your own place.

Whatever your reasoning may be, multigenerational households are on the rise—and they provide some major benefits.

The Basics of Multigenerational Housing

A grandmother, grandson, and daughter sitting by the water.

The only qualification for a home to be multigenerational is, well, there’s more than one generation under the roof—whether it’s parents and adult children, adult grandkids and their grandparents, or any other combination.

Until recently, multigenerational households hadn’t been popular—or even common—since the 1950s, when around 21% of the population lived in a multigenerational home. That number continued to tick down over the years, but as of 2009, it’s been on the rise.

Currently, around 20% of the population lives in a multigenerational home, making it the second-highest percentage in recent history!

Reasons Behind Multigenerational Housing

Grandparents holding their grandchildren.

There are several major reasons why people have started moving back in with older family members. The most common reason is to take care of aging parents (26%), closely followed by spending time with parents in general (14%). Previously, adults ages 85 and older were most likely to live in multigenerational homes. Now, the title goes to young adults ages 25 to 29.

Additionally, growing diversity may play a part in those numbers. According to the Pew analysis, Asian and Hispanic populations—both of which have grown rapidly—are more likely than others to live in multigenerational homes, coming in at 29% and 27% of the population, respectively.

Lastly, student loan debt might be a big factor in multigenerational homes. For people ages 22 to 35, 83% blame their student loans for preventing home ownership. Seeing as how the average borrower owes over $30,000, they might be onto something!

The Surprising Benefits

A daughter and mother sitting on a park bench.

Not only do multigenerational households make financial sense for many people, they also boast a number of benefits. According to a study from the University of Oxford, children who grow up close to their grandparents often have fewer emotional and behavioral problems and can cope with traumatic events better. Also, researchers from Boston College found that when adult grandkids have close bonds with their grandparents, both groups report reduced depressive symptoms.

Understanding the benefits helps put into perspective why a staggering 41% of Americans are now in the market to buy a multigenerational home!

Linda Craft on Multigenerational Housing

Find Your Multigenerational Home in Raleigh

Raleigh has a wide variety of large, private homes for sale, perfect for multigenerational housing. If you’re looking to make the move with a few family members, then Linda Craft & Team REALTORS® is more than happy to help.

Explore all of your home-buying options in Raleigh, browse our helpful resources, and give us a call today to get started!