http://townandcountryrealty.org/blog/archive_201609/sort_entrydatetime-desc/ Most people totally agree with Millennials who think buying a first home is scary. But the best way to come to terms with that is to stop looking in the rear view mirror and reliving the bruising years of the Great Recession and a snail’s pace recovery. That was then and now is now. Knowing what’s happening with the local economy can soothe some of yesteryear’s fears and put you in the right frame of mind to face the future.  Remember that bad news will always get more attention than good news. While a layoff  gets a prime spot on TV and a big front-page headline, the bigger picture about job and employment gains get far less – if any – regular attention. The reality is in October there were 3,200 more nonfarm jobs in the Tri-Cities than there were during October of last year. Wages are also improving. More jobs, better wages and lower gas prices mean retail sales are increasing.  Although the numbers are not in yet, in all likelihood, home sales will move past the 12-month total from last year in November.  That’s a reality check from reliable sources that contradicts a story making the rounds that the local economy is slowing down. With that reality in hand focus on a few other speed bump on the road to home buying.  In a perfect world every buyer would  have a 20 percent down payment.  Twenty percent is a best-case lending industry benchmark.  Some lenders would also like to see the 30-year mortgage go away, but we don’t’ live in a perfect world.  Locally the average down payment is in the range of 10 to 15 percent, and most mortgages are written for 360 months. Some potential buyers are sitting on the fence because they think buying a home costs too much.  Granted, you can find examples of homes with seven-figure price tags in the Tri-Cities. It’s also true that prices start in the $225,000 up range in many of the new home developments.  But it’s also true that that’s not the norm. In October $165,750 was the median price of a previously owned, single-family home in Johnson City.  In Kingsport it was $140,000, and it ranged lower in all local major city markets except Erwin where it was $145,000.  In fact, 63 percent of the Tri-Cities homes on the market this month are in the $200,000 and below price range. There are many programs to help buyers and they’re not all for first-time buyers. According to the group at Down Payment Resource, 73 percent of the homeownership programs have no first-time buyer requirement.  Programs are available in urban and rural settings. And you might be surprised that you don’t have to get very far from the city limits to be considered rural. This is the reason potential buyers need to shop homeownership programs to find one that fits their needs. Resources include Realtors, local agencies like Easter Eight Community Development and the Tennessee Housing Development Agency. The U.S. Department of Housing and Urban Development, the U.S. Department of Agriculture and Veterans Administration can also be added to the list. Down Payment Resource recently pointed out in an article that there are more than 2,400 programs available across the country and 85 percent have funds available for homebuyers. “It’s important for new buyers to seek homeownership education. It’s often a requirement for down payment programs and it gives buyers confidence with the home buying process, financing options, including down payment programs, and budgeting.”  According to the most recent Census data almost half (49.5 percent) of renters in Tri-Cities are paying 35 percent or more of their income on housing. Compare that to the largest share of homeowners with a mortgage.  In the four-county Kingsport-Bristol Metropolitan Statistical Area (MSA) comprising Sullivan, Hawkins, Scott and Washington Co. VA. 47.1 percent were paying 20 percent or less of their income on housing.  For the three county Johnson City MSA (Washington, Carter and Unicoi counties) the number was 46 percent paying 20 percent or less. It doesn’t take an advanced degree in economics to see the advantage of buying a home instead of renting in the Tri-Cities. http://townandcountryrealty.org/blog/52/reality-check/ Fri, 30 Sep 2016 12:00:00 -0500 Two of the biggest buzz topics in the TriCities these days are entrepreneurship and Millennials.  Both have significant and lasting implications.  Entrepreneurship is a hot topic because of its job creation potential in the evolution of local economies.  It has gained new emphasis because it’s the cornerstone for jobs created by those who are self-employed.  In numbers that breaks down to 3 out of every 10 jobs.  At the same time just about everyone is trying to get a handle on the wants of Millennials.  The topic shares the spotlight with entrepreneurship because Millennials are stepping into the limelight once focused on Baby Boomers and will soon dominate the demographic and cultural landscape. The challenge for the Tri-Cities is many of them relocate somewhere else.  Kingsport Development Services Director Lynn Tully described it this way during her presentation at the OneKingsport summit; We’re losing a generation because they can’t find jobs here, but it’s not just a Kingsport issue.  There are two primary Tri-Cities real estate implications of the focus on entrepreneurship and Millennials. The first is Millennials are first-time home buyers. They are a critical part of the housing market because first-time buyers drive the ability of existing home owners to sell and trade up or scale down for retirement.  The second is the all-important necessity of promoting and encouraging  entrepreneurship, including Millennials, to strengthen the regional labor force. Various studies show Millennials have some career goals and preferences that causes some employers to shake their heads and wonder if there’s a middle ground. Many Millennials want a career that allows them to be independent. They want flexible hours and working conditions. They also want the opportunity to be entrepreneurs instead of a job that hems them into a company hierarchy with prescribed routines and where the fruits of their labor, both monetary and recognition, are often dependent on where they are in the corporate ladder.  In other words, they don’t want many of the jobs their fathers or mothers had.  Those characteristics may be a headache in some labor market circles, but they’re tailor-made for real estate.  Let’s look at just three examples of why a career in real estate appeals to Tri-Cities entrepreneurs and future entrepreneurs.          After they get their real estate license most local agents become a Realtor® by joining the Northeast Tennessee Association of Realtors. That also makes them a National Association of Realtors® member and part of a professional that subscribes to a strict code of ethics.  There are also state-required continuing education requirements.  It’s not a career where getting a degree and finding a job punches your ticket.  Continued learning and specializing begins on day one and continues throughout the career.  Realtors® may have some mandatory time requirements at their offices but for most parts there is a lot of freedom to set their own pace.   There is no way around the fact that agents have to contend with their client’s timetable, but the profession is not a 9 to 5, five days a week situation because community involvement is a Realtor’s® path to success.  A key Realtor’s® success trait is specific, detailed market information. You don’t get that sitting in an office then going home and closing the door.  It requires combining technical professional knowledge with detailed local and regional market knowledge.  Much of that knowledge is a direct result the relationships gained through community involvement.  Realtors® are independent contractors.  There is no limit to how far they can advance their career or incomes.  The ceiling is their willingness to pursue their goals.   NETAR’s membership has steadily increased with an improving economy.  Some are returning members, others include those new to the profession who have recently formed NETAR’s first Young Professionals’ group.  Some are graduates of East Tennessee State University’s finance major with a real estate concentration program. Others are switching from unfulfilling jobs because a career in real estate fits what many Millennials and entrepreneurs are looking for.   At Town & Country Realty, we will help you plan and achieve your goals step by step. We'll make sure you have the resources, technology, and personal coaching to be successful. Contact us today to find out how to become a successful real estate professional. http://townandcountryrealty.org/blog/50/first-time-buyers-should-get-a-real-estate-career-fit-for-what-many-entrepreneurs-and-millennials-are-looking-for/ Mon, 19 Sep 2016 12:00:00 -0500 It’s prime time now, because it will take a couple of months to get everything into place. Being a serious buyer simply means you’ve done your homework, aligned your credit affairs and aren’t just a casual observer when you go to an open house or showing.  The first step is knowing what you can afford, getting your credit in order.   How much house you can afford isn’t as simple as comparing a mortgage payment with the rent. Factor in things like property taxes, insurance premiums, homeowner association dues – if applicable –  homeowners insurance, and a monthly home maintenance fund of 1% per year of the home’s value. Add that to the mortgage and you have a clearer idea of what you’re working within a given price range.  Make a final check of your credit to ensure there are no tweaks needed to boost the score. And don’t be surprised when lenders run another credit check. They’ll do that because there’re as many FICO scores as there are Baskin Robbins flavors and the educational credit score you get may or may not be representative of what lenders will use for your mortgage application. Odds are the score you have and the FICO used by your lender won’t be the same.  You’ll also need to spend some time finding a partner.  It would be a good idea to look at Realtors who have specialized training and experience working with first-time buyers.  You can window shop agents on the Web and look at their experience and training certificates.  Select at least three and interview them just like you would if you were hiring an employee.  Ask for and check references.  You will be working closely with them and sharing a lot of personal information so there has to be a good level of trust.  You’ll also want someone who comfortable communicating on your level i.e. texting, email, telephone calls or face-to-face.  If you really want to weld the trust status make a commitment to your Realtor that you will work with her or him exclusively.  Good agents invest a lot of time and effort that is wasted if the client suddenly calls another agent because they saw an attractive listing.  Once you have a partner and have shared your target price range, the agent can begin lining up options.  This is the stage of house hunting where neighborhood preferences, schools and a multitude of likes and dislikes will be in play.  Some “go” and “no-go” decisions can be made after doing some work on the Web.  Prime candidates will require a showing.  This is also the period when you don’t want to make any major purchases that would affect your credit score.  Discuss your down payment options with your partner and lending agents.  Although 20% is the industry standard that level downpayment isn’t written in stone.  In fact, 10% to 12% is closer to the local norm, and there are programs when you can get by with less.   It’s a good idea to have your downpayment in your account two to three months before a closing.  That’s called “seasoning the downpayment.”   Even if it’s not required there’s a comfort factor to having the downpayment and enough money for the closing sitting in an account ready to use well in advance.  Throughout the process expect the unexpected, there will be bumps in the road and maybe a detour or two. And while timing the market is impossible, being ready to make an offer before the prime selling season starts is not a bad strategy. Currently the local market is seeing record sales.  During the first 10 months of the year the average home sales price across the region was up 3%.  Inventory is tighter than last year, but the area is still in what’s called a “soft buyers’ market.”  That simply means there are good deals out there for determined buyers.  And, while history is not a perfect guide to the future, next year may hold extra advantages for buyers since home sales are traditionally softer during a presidential election year.  That means a little less competition for buyers who have done their homework, have partnered with a professional Town & Country Realtor® and are ready when opportunities present themselves. http://townandcountryrealty.org/blog/45/first-time-home-buyers/ Fri, 09 Sep 2016 12:00:00 -0500