benefit of buying a home in Richmond

The True Strength of Homeowners Today

The main benefit of buying a home in Richmond is that our housing market is strong and building home equity is one of the best ways to build wealth.

Richmond homeowners are wondering what’s going on with the Real Estate market and how home values will hold up with the recent shift.  The article below gives a great overview of the benefit of buying a home in Richmond.

The True Strength of Homeowners Today | MyKCM

The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country? Mortgage debt grew beyond 10 trillion dollars over the past year, and many called that a troubling sign when it happened for the first time in history.

Recently Odeta Kushi, Deputy Chief Economist at First American, answered that question when she said:

“U.S. households own $41 trillion in owner-occupied real estate, just over $12 trillion in debt, and the remaining ~$29 trillion in equity. The national “LTV” in Q2 2022 was 29.5%, the lowest since 1983.”

She continued on to say:

“Homeowners had an average of $320,000 in inflation-adjusted equity in their homes in Q2 2022, an all-time high.”

What Is LTV?

The term LTV refers to loan to value ratio. For more context, here’s how the Mortgage Reports defines it:

“Your ‘loan to value ratio’ (LTV) compares the size of your mortgage loan to the value of the home. For example: If your home is worth $200,000, and you have a mortgage for $180,000, your LTV ratio is 90% — because the loan makes up 90% of the total price.

You can also think about LTV in terms of your down payment. If you put 20% down, that means you’re borrowing 80% of the home’s value. So your LTV ratio is 80%.”

Why Is This Important?

This is yet another reason we won’t see the housing market crash. Home equity allows homeowners to be in control. For example, if someone did need to sell their home, they likely have the equity they need to be able to sell it and still put money in their pocket. This was not the case back in 2008, when many owed more on their homes than they were worth.

Bottom Line

Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another benefit of buying a home in Richmond and why homeownership in any market makes sense.

2 years ago

Do You Really Need A Real Estate Agent For New Construction?

We get this question a lot! With Richmond and Midlothian resale inventory so low, many of our Buyers are choosing to build, both in the luxury and mid-market categories. We know Richmond builders and know how they work. Learn why it’s a great idea for us to be by a Buyer’s side during this process!

  • We advocate for you and work in your best interest
  • There is no cost for you
  • We know Richmond builders and can find the right builder for you
  • We can help you build in your budget
  • We’re aware of builder promotions
  • We have preferred lenders who are experienced in home building lending
  • We will negotiate for you
  • We will help you understand your contract
  • We can help oversee inspections
3 years ago

How to be a Competitive Buyer

Nervous about entering the Richmond, VA real estate market as a Buyer? The key is to know what to expect, have your ducks in a row and follow these 4 home-buying guidelines.
 

1. Get your credit healthy, financing nailed down, and have that pre-approval letter in hand. If you need a mortgage advisor, we can help with that.

 

2. When you are competing with other aggressive offers, you may have to give a little on some of your must-haves. Be prepared to decide which home features are most important to you and which you can be flexible with. If you find the one that you can’t live without, a luxury updated bathroom may be able to wait.


 
3. Multiple offers are the norm, so be prepared with your absolute maximum budget in mind. An agent with real estate negotiation expertise can help you figure out what other line items like appraisals, inspections, and contingencies can make your offer stand out. Here are 4 areas to consider.
 
The Price:

What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity and the urgency of the seller. While some buyers want to make a low offer just to see if the seller accepts, it’s wise to read the current market and understand that might not be the best strategy right now, given low inventory. To be most competitive, choose a home that is comfortably within your budget and allow for some potential escalation of price.

 

The Move-in Date:
If you can be flexible on the possession date, the seller will be more apt to choose your offer over others.

 

Additional Property:
Often, the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation.

 

Remove Contingencies:
If you are comfortable, making an offer that is not contingent on the sale of your home is often looked upon favorably. Additionally, you may consider an inspection waiver if the home looks to be well-maintained or newer.

 

4. Our home becomes a part of our heart, but during this part of the process, keep it all business. You don’t want to get caught up in a frenzy, offer too much for your comfort level and end up regretting anything later. Your agent can help you manage emotions and keep things in perspective.

 

Give us a call so we can talk about what you need, what your options are, and how to be best-prepared to purchase a home in Richmond, VA.
3 years ago
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