Without a doubt, we are experiencing an extraordinary real estate market. Adapting to its many twists and turns, 8z has launched several new programs to help get our clients over the finish line. Last month we highlighted 8z Bridge, a solution that allows 8z clients to buy a new home before they sell in a safe and seamless manner, while also enabling them to maximize their home value as they would on the open market. This month, we’re very excited to announce yet another new solution that can help buyers win in this highly competitive market: 8z Offers - Cash Buyer. As you may know, it’s not uncommon for homes to receive dozens of showings, by also more offers than ever before – each more creative and competitive than the next. This is where Cash Buyer truly gives you a leg up. Similar to Bridge, our Cash Buyer solution turns your traditional mortgage offer into a cash offer. Cash buyers usually pay less for their house and get their offers accepted more often. After we close on your new home, you will move in with your standard mortgage and pay a 1% transaction fee on the purchase price. If you want to be a competitive buyer in this market, this is a game-changer. If you’d like to learn more about 8z Cash Buyer, simply contact me to get the pre-approval process started today Email: Jenny.Kipp@8z.com or 720.431.7935
Three Reasons Why We Are Not In A Housing Bubble
With home values appreciating by about 10% nation-wide in 2020, some have voiced concerns that we might be in another housing bubble like we experienced a little over a decade ago. Here are three reasons why this market is completely different:
1. Supply is extremely limited. Between 2006 and 2008, there was much more inventory while prices continued to rise. However, what we are seeing now is a natural increase in prices, as would occur in any market with low inventory and high demand.
2. Housing remain is real – not fabricated. The desire to own (especially from millennials, the largest generation in the country) couples with historically low mortgage rates, makes purchasing a home a strong, sound financial decision in today’s market.
3. Households have plenty of equity. From 2005 through 2007, there was a wave of cash-out refinances, enabling homeowners to pull out $824 billion dollars in equity and leaving them with little to none at a critical time. When prices began to drop, some of these homeowners found themselves in a negative equity situation, where the mortgage was higher than the value of their home. This led many to default on their payments, creating an avalanche of foreclosures. Today, over 56% of all homes in the U.S. have a minimum of 50% equity, which is significantly better than the situation in 2008.
This is nothing like 2008. In fact, it’s quite the opposite.
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All my best, Jenny Kipp, 8z Real Estate, Authentically Guiding You Home, www.8z.com