Georgetown Real Estate Law Blog

Youngest adults want to be homeowners

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Monday, April 15, 2019.

Young people in Delaware and throughout the country would have a home as opposed to a vacation or dream wedding. According to a survey from Bank of America, 59 percent of those between the ages of 18 and 23 say that they will buy a home within five years. This would mean that those within this age range would be homeowners before they turn 30. The study involved about 2,000 people who own a home or are planning to.

To accomplish their goal, younger people are planning to go to a less expensive college or live with their parents while saving for a down payment. Individuals who are considered part of Generation Z are more likely to want to buy a house to start a family compared to other generations. This was true for over half of study participants born after 1995 compared to just 40 percent of Millennials.

A guide to buying a short sale property

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Thursday, April 4, 2019.

Between 2008 and 2012, it was not uncommon to see a home being sold through a short sale. Since then, short sales have become less common as the economy and housing market and become more stable. However, those who purchase a home through a short sale may be able to get a good deal on a property. A short sale is often preferable for a seller because it means less damage to his or her credit score when compared to a foreclosure.

The lender may prefer a short sale as opposed to foreclosure because it can help to minimize the loss it takes on the property. Short sales generally occur when the home is worth less than what a borrower owes on it. Furthermore, they can typically only occur with the permission of the mortgage lender. This is because the lender is agreeing to take less than what it is owed.

Selling a home during a divorce

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Monday, March 18, 2019.

Many divorcing people in Delaware often wonder what to do with the marital home. One option is for someone to buy out his or her spouse and keep the home for him or herself, which is sometimes done to maintain stability for children. Another popular solution is for both parties to agree to sell the home and divide the proceeds. Regardless of what decision is made, the most important step is for both soon-to-be-ex-spouses to get on the same page, which is something that's sometimes easier said than done.

Selling residential real estate after a divorce can present several advantages for splitting couples. For starters, proceeds from the sale can allow both people to invest in new homes while also being able to move on faster. Also, the profits from a sale could ease the burden of other joint obligations that may still exist post-divorce, such as joint credit card or student loan debt.

How to avoid paying too much for a home

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Tuesday, March 5, 2019.

Home buying is a complex process in Delaware and around the country. One of the biggest hurdles for a buyer is getting a seller to agree to his or her offer price. According to a 2019 report from NerdWallet, 45 percent of buyers paid more than the asking price on a home. The respondents had all purchased their homes within the last five years.

Among those who were buying their first homes, 56 percent said that they had to pay more than a seller's asking price. However, there are steps that buyers can take to improve their chances of having an offer accepted. Flexibility when it comes to other terms can be helpful. For instance, those who are willing to move in quickly or solve other problems a seller may have could have an advantage during negotiations.

Real estate tips can help move a property quickly

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Tuesday, February 19, 2019.

Some Delaware homeowners may be looking to maximize their opportunities to sell their homes quickly. When people first try to sell a house, they may be surprised by how long the process can take. For many sellers, it can take weeks or even months, as carrying costs and other expenses accumulate. In addition, the success of the sale can depend on many factors, including the local real estate market. Some sellers may bring in less than they were hoping to obtain in the sale, while others may find proceeds consumed by associated expenses.

It takes a significant amount of work to make a home an exciting property on the residential real estate market in all but the hottest of areas. Sellers need to photograph and video the property, clean and repair various areas and prepare to market their property in person and online, even when they are working with real estate professionals. At the same time, this kind of preparation can be one of the most important factors in a successful sale, including completing renovations and staging the home with proper furniture and decor.

How to maximize the value of a bonus room

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Tuesday, February 5, 2019.

Those who are looking to sell a home in Delaware should highlight any finished basement or bonus rooms that a property has. This is because that extra living space could appeal to buyers and increase the property's value. However, sellers will need to properly showcase that extra space in a way that appeals to buyers in specific ways.

For example, young couples may want to see if an extra room can be used as a nursery or play room for the kids. Those who are interested in improving their health could see if the space can be used as a gym or yoga studio. As a larger percentage of Americans embrace video games, it may be possible to showcase a finished basement or extra bedroom as a game room. Such a room should have plenty of electrical outlets and room for a large table.

Student loan debt may be making it harder to buy homes

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Wednesday, January 23, 2019.

Individuals between the ages of 24 and 32 owe roughly $1.5 trillion in student loan debt. This is one of the reasons why young people in Delaware and throughout the country are not buying homes, according to a Federal Reserve study. However, home ownership has been down among all Americans between 2005 and 2014.

In 2005, 69 percent of Americans owned homes. In 2014, only 65 percent did. For those between ages 24 and 32, home ownership rates dropped from 45 percent to 36 percent. According to the report, the average per capita student loan debt increased from $5,000 to $10,000 during the period analyzed by researchers. Much of the increase happened after the start of the Great Recession. This was a period of high unemployment during which there was a greater demand for a college education.

How to prepare to buy a home

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Thursday, January 10, 2019.

House hunters in Delaware may benefit from adequate preparation before starting their searches. Doing so may ensure that they find a home that fits their needs as well as a loan that fits their budget. The first step in the process should be to do a credit review, and individuals can get a free copy of their credit report once a year.

Another important step is to create a list of things that a home must have. For example, a dream home might have three bedrooms or be located in a certain school district. While the real-life property may not have everything a buyer wants, it should have two or three of those characteristics. Prior to making an offer, a prospective buyer should understand the type of paperwork that he or she may need to sign. This will make it easier to develop an agreement that is in their best interests.

How the housing market could look in 2019

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Wednesday, December 26, 2018.

The housing market in Delaware and throughout the country is forecast to look different in 2019 compared to 2018. In 2019, the number of available homes is expected to increase while the number of buyers is expected to decrease. Mortgage rates are predicted to rise over the course of 2019, which may mean that some people will still be unable to afford their desired homes. Of course, fewer buyers and more inventory could mean less competition for those in the housing market.

Those who are looking to sell their homes will likely need to pay greater attention to how they price their properties. Failing to provide competitive list prices could mean that buyers decide to look at other properties instead. It is expected that home prices will increase up to 3 percent in 2019. This compares to the roughly 5 percent growth in 2018. In addition to more properties available for sale, there will be an increase in the types of properties available.

Why winter may be good for home sales this year

On behalf of Tunnell & Raysor, P.A. posted in Residential Real Estate on Monday, December 10, 2018.

In most years, homes in Delaware tend to move slowly during the month of December. However, in 2018, that may not necessarily be the case. This is because many buyers are wary that interest rates are going to continue climbing throughout 2019. Currently, interest rates are just below 5 percent. As a lack of inventory has caused housing prices to increase rapidly, interest rate increases may result in significantly higher mortgage payments.

Price appreciation has caused some to be priced out of the market, and both new and existing home sales have started to slow. One potential silver lining is that with fewer buyers on the market, prices are starting to flatten out or at least not appreciate as quickly. Buyers may also benefit because prices may be lower in the winter compared to the summer in most years.

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