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Luxury Homes Are in High Demand | MyKCM

As people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this category. In a recent article, they point out that a luxury home isn’t only defined by its price. Location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available.

According to the Luxury Market Report from the Institute for Luxury Home Marketingthere’s been a substantial increase in how many buyers are purchasing luxury homes over the past two years. It says:

“. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.

If you own a luxury home, it could be a great time to list your house today while demand is so high. But first, let’s understand where the demand is coming from.

What’s Driving the Heightened Buyer Demand for High-End Homes?

The same report says more people have reached a certain net-worth threshold, and that’s contributing to the increased interest in luxury housing:

“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%.

This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”

So, if you’re looking to make changes to your real estate portfolio or are looking to sell your current house, it may be a great time to list and benefit from the high demand for luxury homes today.

Bottom Line

If you own a luxury home and want to know how strong demand is in your area, let’s connect so you can capitalize on current market conditions while buyer demand for upscale homes is so high.

As the real estate market changes, it’s important to have a running start on your home buying journey. 

Here are three things to keep in mind — from mortgage rates to buying power — as you navigate the housing market.

What’s going on with mortgage rates? 

As consumers, we have been spoiled with historically low interest rates that held out for an uncommonly long time. As interest rates begin to fluctuate, it is common to feel concern, especially for first-time home buyers. 

Understanding the cause and effect behind rate increases can help reduce worry over market changes. Interest rates directly influence a buyer’s buying power. Real estate agents can help you understand what this means and what steps you can take to better prepare for it. 

I often advise clients to check with the financing institution with whom they have a working relationship. This institution will already have your financial history and a personal gain in maintaining your business. They are best equipped to help you understand your buying power. 

Know your buying power 

Increased interest rates will increase mortgage payments, and this ultimately influences how much buying power you have. Knowing your buying power is an important factor when it comes to entering the housing market. 

It is especially important to understand what you can afford monthly (in terms of payments) and how much of a down payment you need to get the monthly payments where you need them. Many people would rather look for lower costs vs. having to produce more of a down payment, but it is always good to have options.  

Don’t be afraid to shop lenders

I have a working relationship with several lenders, and I encourage my clients to shop around for the best rate when going through the pre-approval process. A home is one of the largest purchases you will ever make, and even though refinancing is an option later down the road, you should feel confident in your purchase and the process of paying it off for the foreseeable future. Plus, it is always in the buyer’s favor to come to the market prepared.

How Homeownership Impacts You | MyKCM

June is National Homeownership Month, and it’s the perfect time to reflect on how impactful owning a home can truly be. When you purchase a house, it becomes more than just a space you occupy. It’s your stake in the community, an investment, and a place you can put your stamp on.

If you’re thinking about buying a home this year, here are some of the benefits you’ll experience when you do.

The Emotional Benefits of Homeownership

Because it’s a place that’s uniquely yours, owning a home can give you a sense of pride and happiness in several ways.

Your Home Can Reflect Your Tastes and Personality

Investopedia puts it like this:

“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.

That knowledge can lead to a powerful, emotional connection to the place where you live. But so can the realization that your home will grow with you. Because it’s yours, you have the freedom to make updates to it as your needs and tastes change. As Logan Mohtashami, Lead Analyst for HousingWiresays:

“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “

And that can create a greater sense of ownership, pride, and connection with your home and your community.

It Can Enhance Your Neighborhood and Civic Engagement

Homeownership can lead you to get even more involved with your local area. After all, you’re putting your roots down in a location and will want to do what you can to help improve it, much like your home. In a recent report, the National Association of Realtors (NAR) says:

Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”

The Financial Benefits of Homeownership

When you choose to become a homeowner, you’re making a financial decision as well. That’s because your home is also an investment.

It Can Help You Feel Financially Stable

Homeownership is truly one of the best ways to improve your long-term financial position. Not only will you have a predictable monthly housing expense that can benefit your budget in the short term, but you’ll also gain equity as your home appreciates in value and you make your monthly mortgage payment. As Freddie Mac says:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

It Can Grow Your Wealth

Because of your growing equity, you can build your net worth as a homeowner. And when you compare the difference in net worth between a renter and a homeowner, it’s clear that owning a home truly offers a great way to build your long-term financial position.

According to the latest data from NAR, the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.

Bottom Line

Homeownership is truly a way to find greater satisfaction and happiness and to build financial freedom. If National Homeownership Month has you dreaming about purchasing a home, then let’s connect to begin the process today.

Springs are amazing in Texas: The weather warms up a little, patios begin to fill in and we all start thinking about pool season and summer vacations.

But the spring also means it’s time for spring cleaning. While no one enjoys cleaning, doing certain things around your house in the spring can protect your home — and your wallet — for years to come.

I have seen the return on my home and homes I have sold by doing just a few simple things that keep your house updated and looking beautiful.

Check out these 5 tips from my friends at Check Out DFW to do around your home and garden. Your summer self will thank you.   

1. Spring cleaning

Spring cleaning is a necessity in Texas thanks to this season’s new blooms of allergen-inducing particles.

2. Clean and insulate your home’s exterior 

We all remember the old childhood rhyme, “spring showers.” Springtime absolutely brings lots of rain and other weather surprises.

3. A/C maintenance and inspection 

No air conditioning during a Texas summer is the worst. Some of us have unfortunately undergone it, and nothing will motivate you more to take care of your home’s air conditioning unit.

4. Lawn Care

Springtime is a suitable time to fertilize and treat your lawn. This is a simple and affordable process that can save you a lot of expense and time in the summer. For a helpful guide on current lawn fertilizers and what they offer, check out this site

5. Planting/Gardening

While it does depend on your zone area (you can look it up here), many Texans plant spring gardens and do landscaping work in April, after Easter. Weather patterns are such that most of Texas is free from fear of freezing or deadly frost by then.

There are many reasons why homebuyers love new construction. They get to move into a brand-new house that has the latest and greatest finishes and will likely have little maintenance in the near future. While the process may seem straightforward, there are lots of things that buyers need to be aware of. Having a real estate agent in your corner can help you avoid the many headaches associated with going the new construction route. 

Selecting the Right Builder

Most agents are very familiar with the various builders in their area. They understand which builders have the best price points, who specialize in certain styles of homes (production, semi-custom, custom, etc.), what materials a builder uses, and whether the builder has a reputation for having good or bad quality or is responsive to service requests after-closing. 

By sitting down with an agent and explaining your goals and requirements, they can save you a lot of time by immediately narrowing down the list of builders who are best suited for your project.  

Selecting the Right Community, Floor Plan, and Lot

Agents help guide buyers through the selection process to ensure that the floor plan, community, and lot aligns with the buyer’s individual needs. There are some floor plans and communities that may be hard to resell. An agent will be able to point out these potential challenges. An agent can also help identify poor lot orientations or difficult soil conditions. 

Selecting Options

When you visit a builder to tour a model home, you will likely be presented with a model that has all of the optional features and upgrades. This is intentional as the builder’s number one priority is to sell each house for the highest possible price. Not every upgrade adds significant value to the property. A real estate agent can help their clients pick the best options to maximize their investment. An agent also knows which options are highly marked-up in order to assist with negotiating a better deal. 

Having an Advocate in Your Corner

The on-site agent at the model home may look and sound like someone who is there to help you. However, this representative works for the builder and is there to represent their employer’s best interests. Agents are licensed professionals bound by law and professional ethics, while the builder’s sales representatives are not constrained by those requirements. A good quality agent will be able to see through what is truth and what is a sales pitch.

Once you have reached a decision on which builder to use and which model you would like, it’s time for the real work to begin. Now it’s time for your real estate agent to negotiate with the builder and lock down the purchase of your new property! 

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