Prospective Columbia SC home buyers are seeing the housing market continue to recover, with home prices in some areas rising as much as 13 percent over the past year. The rise in home prices has helped a lot of homeowners get out from being underwater on their mortgage. Leftovers from the housing crisis however continue to make it too hard for families to access the credit they need to purchase a home.
Prospective Columbia SC Home Buyers Struggling With Credit
Many would-be Columbia SC home buyers are still struggling with credit histories that should make them eligible for mortgages under normal circumstances, but they are still unable to find lenders willing to approve them for a mortgage at an affordable rate.
Estimates from Moody's suggest that if the acceptable credit score reverted to the more traditional and sustainable standards that existed prior to the housing bubble, then the pool of potential mortgage borrowers could increase by more than 12.5 million households nationwide.
The Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA) took important steps recently to ensure that more responsible, creditworthy families can obtain a loan when they're ready and prepared to become Columbia SC home buyers — while ensuring we don't return to the days of unsound lending practices. These steps respond to a basic question presented in the mortgage data: If responsible borrowers have a credit history that should make them eligible for loans — especially in a housing market and an economy that is growing stronger — why haven't these loans been made?
It seems that a perceived lack of clarity by lenders about how mortgage guarantees will be treated has made them more cautious in lending to eligible borrowers with credit histories that are anything less than perfect.
The new rules coming down the pike would provide FHA assurance that loans that meet their credit guidelines can be originated without fear of penalty and announced additional benefits to borrowers who receive housing counseling services. The FHFA gave new clarity as to the circumstances under which lenders would be required to repurchase defaulted Fannie Mae- and Freddie Mac-guaranteed loans.
Some Columbia SC Home Buyers Already Seeing Benefits
Already some lenders have lowered the credit score they are willing to accept for government-guaranteed loans for Columbia SC home buyers.
The bill known as the Housing Finance Reform and Taxpayer Protection Act of 2014 hopes to complete a major piece of unfinished business from the financial crisis. This bill should help more prospective Columbia SC home buyers be able to find a lender willing to underwrite the mortgage needed to finance a home purchase.
Check out our other articles and news affecting Columbia SC mortgage rates and how rates and qualification requirements can help more Columbia SC home buyers by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
Everyone has experienced buyers remorse at some point in their lives. A recent Chase Bank survey found that some Columbia SC homebuyers would change some things about their home purchase if they had a second chance.
Chase's survey, "What I Wish I Knew About the Homebuying Process," asked 807 recent homebuyers about their attitudes following the purchase of a home, taking the pulse of how people are living with their decision to become Columbia SC homebuyers. Here's what some say they would do differently if they could make the decision over again.
Things Columbia SC Homebuyers Would Do Differently
Get Smarter About Financing
While 9 out of 10 buyers surveyed say they felt prepared at the time they bought their home, 56 percent say that in hindsight, they should have known more about financing.
Specifically:
- 22 percent say they weren't as educated about the ins and outs of closings as they should have been.
- 19 percent say they weren't as well-versed on making an offer and negotiating.
- 15 percent say they needed more guidance on the overall financing of a home.
Pick a Different-Size House/Area
Sometimes you don't know whether a house fits your needs until you start living in it. That would seem to be the case for 39 percent of Columbia SC homebuyers who say they would choose a different size house or a different price — or even in a different neighborhood — if they could get a do-over on their home purchase.
Adjust Expectations
A good chunk of buyers weren't expecting the home-buying process to take as long as it did, with 40 percent saying it took longer than they thought it would. Sixteen percent say they got a "pleasant surprise on timing," according to the survey.
Be Better Prepared to Spend on Maintenance
Eventually, we all have to face the cold, hard facts of home ownership: It can be expensive. Thirty-four percent of respondents say that home-maintenance costs ended up being more than they expected. Among first-time home buyers, 51 percent say they "got that sinking feeling" when faced with maintenance costs. Furthermore, 80 percent of survey respondents say they considered their home move-in ready when they bought it, but 76 percent have since completed or planned renovations.
Check out some of our other articles on Columbia SC home buying tips by clicking the Columbia SC Home Buying Tips link to your right under our Columbia SC Real Estate Categories.
Columbia SC homebuyers think credit access is about where it was two months ago. Perceptions remained largely unchanged with slightly more consumers thinking it will be either somewhat or much easier to get a loan a year from now. At the same time, more consumers said they think it will be much harder to obtain a mortgage, a possible reflection of more stringent lending requirements implemented in January.
The latest poll from the Federal Reserve Bank of New York shows Columbia SC homebuyers and generally, overall consumer expectations, stayed mostly flat in February. According to responses in the New York Fed's most recent Survey of Consumer Expectations, Americans last month indicated a median home price change expectation of 4 percent, reversing an increase to 4.6 percent in January.
Keep up with trends that affect Columbia SC homebuyers, both on the home price side, and on the mortgage side, by checking out our updated articles and tips concerning Columbia SC Real Estate News by clicking the link to your right under Columbia SC Real Estate Categories.
The biggest growing trend Columbia SC homebuyers are looking for in new homes appears to be more space.
According to data presented by the National Association of Home Builders (NAHB) at the International Builders' Show in Las Vegas, the size of new homes is up 13.4 percent in the last four years alone, with a massive rise in 4+ bedroom homes being sold.
Regardless of size, the NAHB says that features builders are most likely to include in a typical single-family home this year are a walk-in closet in the master bedroom, low-e windows, a laundry room and a great room.
Energy-efficiency is also a key theme among Columbia SC homebuyers, as Energy-Star rated appliances, programmable thermostats and Energy-Star rated windows also rank high on the wish list.
Columbia SC Homebuyers Still Want Kitchen Islands
According to builders, Columbia SC homebuyers are still wanting granite countertops, a double-sink and a central island in the kitchen as well as a linen closet and a private toilet in the bathroom.
Paneled appliances that blend into the cabinetry are gaining favor. And appliances are being moved around the kitchen. Two ovens are becoming more popular. They could be in different locations rather than above one another.
Other features that builders are likely to include are first-floor ceilings at least nine-feet high, a front porch, exterior lighting and a patio.
Based on feedback from Columbia SC homebuyers, the most unlikely features wanted in 2014 homes are laminate kitchen countertops, an outdoor kitchen, an outdoor fireplace, a sun-room, a two-story family room, a media room, a two-story foyer and a whirlpool in the master bathroom.
For more on what Columbia SC homebuyers want in their homes, as well as improvements, visit our Columbia SC Home Improvement section of articles under Columbia SC Real Estate Categories to your right.
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7 Ways Columbia SC Homebuyers Overpay
Columbia SC homebuyers often undermine their own best interests and end up overpaying for a home.
First-time homebuyers, as well as those looking in a hot market, are susceptible to overpaying because they have a hard time exercising discipline when it comes to price.
Any buyer can make a mistake, and if they don't keep a level head, that mistake can end up costing them a lot of money. And when buying a home, you may not get a do-over.
This month, we're devoting our entire newsletter to helping Columbia SC homebuyers not overpay for their home.
1 – Open House Fever
Sellers oftentimes use open houses to drum up interest in their property. But looked at from a buyer's point of view, open houses should be a big caution flag.
Oftentimes, with a lot of people milling around in an open house, it brings out the competitive nature in all of us, and it's all too easy to end up overpaying because of the hype.
Thankfully, open houses aren't mandatory. If you're interested in a property, we suggest that you ask for a private showing where there are no distractions like food, music or overly enthusiastic looky-loos.
Even in a private showing, buyers need to be conscious of staging techniques that are often designed to wow them into complacency.
Remember, that staging look is not how it will be when you live there. Those are topical treatments to make a house look good. Keep a level head on your shoulders and examine the basics like plumbing, roof, electric and the foundation. Once you see the underside of a home, you'll be less inclined to overpay.
2 – Not Being on the Same Page
If you're buying real estate with your significant other, you'd better get on the same page or you'll end up stretching your wish list — and that will cost you.
If you're staying in a home for a while, why overpay for a one-year advantage, like being close to a school when the child is going to be moving on to another school anyway, or graduating soon. Discuss your timelines and long-term goals, then go looking for a home.
Make separate lists of your wants versus needs, then rank them from most to least important, and compare.
After visiting homes, check back with your lists. You'll be amazed at how adaptive they can be, so keep an open mind. For some Columbia SC homebuyers there are things that are worth overpaying for, but you need to know what that is for your spouse, and you need to set boundaries so you don't overpay on everything.
3 – Being in a Hurry
Typically, Columbia SC homebuyers spend months or more searching for a home. But not all buyers have that kind of time, especially if the purchase is driven by a life change, such as a new job or a divorce.
Any time a lengthy process is condensed into one or two weekends, the potential for mistakes is greatly increased. If not handled properly, a rushed purchase during a potentially stressful life change can often lead to buyer's remorse on multiple levels, including overpaying or choosing a home in the wrong location.
A Columbia SC homebuyer in a time crunch can mitigate the problem by working with an experienced agent who is active in the area, like we are.
We may have specific knowledge about a property that can be advantageous to the you as the homebuyer, especially if you're on a tight timeline. It could be that we know of a house that's a better fit, or we might have a local's understanding of maintenance issues, for example.
4 – Making Lowball Offers
Unless the home you're looking at has been sitting on the market for months or more without so much as a nibble, we will most likely advise you against making a lowball offer, which is substantially below the asking price. Lowball offers really aren't offers at all because sellers either don't take them seriously or see them as an insult.
Besides the high likelihood of losing out to a higher bidder, the big risk is starting off on the wrong foot with the seller. If the seller gets insulted, or feels that yours is not a serious offer, they are less likely to respond with a reasonable counteroffer, and you've basically shot yourself in the foot for any further communications from that seller.
While that doesn't mean the deal is dead, it can mean that the seller will be reluctant to negotiate when you make a serious offer. By starting off with a respectful offer, even if it's below the asking price, Columbia SC homebuyers create an opening to adjust the price downward as the deal moves toward closing.
5 – Not Knowing the Neighborhood
When you don't know an area, you won't know a good location from a bad one, and that ignorance can cost you.
It is always best to be a well-informed buyer, but obviously this doesn't always happen.
There's a simple solution — work with an experienced agent like us who knows the Columbia SC area.
If an agent can't provide additional details about a particular neighborhood or doesn't seem to know the community, it's best just to move along and find an agent who does. Hyperlocal knowledge can help buyers find the best listings and secure the right price. We know the Columbia SC neighborhoods you may be looking at well… so we can provide you with expert knowledge of the area you may not get elsewhere.
6 – Bid Fatigue
In a competitive market, it's not uncommon for buyers to spend months making offers on multiple homes. The process can be exhausting, demoralizing, and expensive.
Columbia SC homebuyers can most definitely get fatigued in this market. Bidding on homes and not getting anywhere can be very frustrating, and sometimes that frustration does cause buyers to up their budget.
Increasing your budget isn't necessarily a bad thing, especially in a competitive market. The key is staying within an affordable range.
We strongly advise buyers against overpaying just because they're worn down. It makes more sense to either rethink your wants and needs in a home, or even consider sitting it out a bit, if you're able to do so.
7 – Falling for the Goalpost Shift
A deal is supposed to be a deal. But in extremely competitive markets, sometimes sellers renege after accepting an offer, only to jack up the price. The phenomenon is common enough to have a name: the "shift-the-goalpost sale." Unfortunately, some buyers do fall for it.
Sometimes, Columbia SC homebuyers put up with sellers reneging on offers because they fear losing out on the property or just don't want to go through another round of searching. But, buyers can end up paying tens of thousands of dollars more when they continue negotiating with sellers who reneged on accepted offers.
What's a buyer to do? Taking legal action likely just means more money spent on lawyers. Instead, buyers need to either take a firm stand and say no, or risk losing the property.
Keep these 7 tips for Columbia SC homebuyers in mind before you even start your home search. And depend on us to help you avoid making any of these costly mistakes.