Aug 20, 2016|
Opening doors for buyers and sellers with critical and credible information on the real estate market. Fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This it's real estate today. The number one real estate show on. The radio. Welcome to real estate today. Backed by the professional experience of real tours from across America where your most trusted source on the radio for up to date real estate information. Realistic today is presented by the national association of real homes in Israel for members in your neighborhood. Hi there I'm Stephen gas query and today a great show about a big part of the market. That hardly anyone talks about. First time sellers. All about the very first time you sell your home. It's a huge transaction even bigger than buying your first home because this time you have money coming in as well as going out. How do you do with the right way to make sure you get the maximum profit in the minimum time. We'll talk to experts. First time sellers is straight ahead. But first let's go to the realistic today newsroom with no talks are no I Stephen. It's good to own a home near highly rated schools as a new report because that home is going to be worth more money up to 77%. More according to the new Adam data solutions 20s16 schools and housing report. They compared homes in the same zip code as a least one good elementary school with homes and zip codes without a good school there and blonde Chris senior vice president and Adam data. So as well we've always on the good schools provide a quality of life benefit the study shows there is also what tangible economic benefit to homeowners. In a few months will have a new president the next administration will have an opportunity to change the direction of the conversation about housing says ahead of the Mortgage Bankers Association. MBA president and CEO David Stephens calls it an opportunity to pivot away from a focus on recovering from recession. This next administration regardless of which party takes the White House is coming in with a blank slate and chance to if so every benchmark where we are. And where the challenges our housing. Stephen says the Mortgage Bankers Association has been working with both major parties to make housing policy priority. Two generations of young Americans may not live in mom and dad's basement. Because mom and dad may not have a basement. An analysis of construction data by the national association of homebuilders finds that an ever shrinking number of new homes are being built with based on. The NAHB says the share of new single family homes are built on a slab. Has risen steadily from 46% in 200257%. Last year. Basement foundations have become less common except in some colder areas which are the most likely places to find a full or partial basement. We told you recently here on realists say today how some realtors have begun mentioning Pokemon go in their listings in hopes of drawing more attention to those homes. Well not according to re code dot com. A surging number real estate ads are touting Pokemon go amenities run alongside things like the number of bedrooms and bathrooms. The website on one listen for a Condo in Nashville in which of Pokemon gold logo. The first picture in the listing. Coming up and half an hour do you have your own personal robot yeah. She's been back to you thanks don't. We're starting off today show by talking about buying a house whether it's your first house or not. And we wanna tackle head on the assumption some people have that they can't get a mortgage. Because that assumption may not be true. And many people who assumed they can't buy a house can't and they can take advantage of today's unbelievable. Low interest rates. That's the subject of a recent article by our first guest. Can hardly author of the nationally syndicated column the nation's housing his award winning articles look at every part of the real estate experience. And he explains exactly would it all means to you can welcome to real estate today but it wouldn't. Glad you're here now Ken in your recent article you discussed changes in the mortgage world brought about by Freddie Mac and Fannie Mae. Can you tell us about those changes. Yeah I mean they're very important that changes and make caused me to write this piece because quite up to readers and good potential buyers over time and you know you hear the same thing I had no way I'm going to be able to have get a mortgage. And I asked why well I don't dump them there are programmed and can help you have vomit down payment and have. And so you have. Fannie and Freddie both orphan programs requiring just 3% down payment and in the case of been okay. I 3% felt like you know too much for you there is no minimum cash requirement. From the borrowed applicant. Out of their own pocket you know he don't generally don't go or dinner or parent or someone who will. I help you out don't have to be at your own retort that meant that who import. We've been responsible loan if you had. In the case had been praised the minimum. Cycle requirement. Over you know if you're good you're. Apparently quite go to score. Is below six figures X sixty. Then maybe this may not be the court review. There and Freddie are trying to make which really. Credit responsible loan to people who didn't think they could they would qualify for round at number eight they can but they got to have you know that a a minimum I comScore. You know Ken looking at the big picture this could make homeownership possible. For millions. More Americans. Well I think that's the intention and you know the hope is that the board will get out perhaps you programs like this then maybe people writing about it. And are more people understand. That yes they do you have what needed to the buyout. I have to tell you when I wrote about it. I wrote about the program. I got a lot of flak from I guess we would be would be you know spoke in very good don't believe. They're. My own good low down payment can be made responsibly and yet. All of you being alone are fully documented. Appraisal is this for real. You know it is not the old type of program permanent or what ability my belt back. We you know him as a decade ago. You know you start archer article by talking about the fact that many of these people are leaving on the table here. Today's incredibly. Low. Interest rates and that's a big point can you explain why that's just so important for today's homebuyers. And it rates are just unbelievable they're just you know to be on biblical they're just. What is longer dependent history. And you know we're talking about we now have 4%. As we speak today's rate floored just you know historic. And pick it pains me to think that he got people who could qualify through these programs who are not. Doomed them because they just assume they can't afford a mortgage. It can be too expensive well interest rates at solo. And now we have these programs that make it easier wary that the owners who may be the time to check from the step out. Not everybody go very you know make it on clinical scores there are some other thing that I should mention you know that qualify you have to go through. A fairly short counseling. Program either online. Or if you're faced the faced with a counselor and there are incumbent. All we have to have. No more leave the median income for your area. You know what's important most of these programs and not for everybody but they were a whole lot of people currently probably from the there and knock down. Well these are great options can but I know you're also a big fan. Of FHA day and its load down payment options. FHA water you know through net percent down payment and very. Generous underwriting terms. So for those who. And I may try the program we've been talking about they don't qualify or maybe you had to achieve them but don't qualify there's still a paycheck. And then on them despite that they community. By focusing on these irk them and then of course is the way he has been an entitlement. You know to zero down and buried in the region under ready and great for the fact that there are lots of ways this school located at first now. So a question for our listeners can. If I'm interested in a mortgage like this knowing that Fannie and Freddie themselves. Don't write mortgages. But their products are available just standard mortgage lenders. When I go to a mortgage lender and just count on that lender to know about these or would have to shop around to find these products. Well competent. You know mortgage loan officer or any broker will be up bright indeed moment right now. And do it you know they'll be there at the bug not a bad idea to keep going and say look I understand they're doing them 3% down a program that come out of the you know Freddie Mac and many whatever you wanna go forth and I'm not depending upon. Which participant in the mortgage market the loan officer or the broker deals written that in your mind at that one of those men. Loan officers who don't know about these programs right now hearkens you know they're not competent these are growing programs very popular. And they should be even more puppet. What can thanks for being on the show and talking about those new rules and thanks for reading that article to you know you might have helped some people given a shocked who otherwise would have not tried to buy a house. We were very kind thank you. My pleasure. Kenneth Barney the author of the nationally syndicated column the nation's housing. Coming up unrealistic today if your first time Siler. What's your first step. Yeah I really helped because just governor what they're going to chills. Snatched out of there call you actually interact com reality. That's next on our special show. First time Seles. Real estate today. Because knowledge is power. We're continuing now with our special show first time sellers. All about selling that starter house and buying a house number two. It's a lot more complicated than buying your first house because it's two transactions not one. And you're not only spending money to buy a house you're also hopefully making money when you sell. Joining us now to talk about first time selling is a pro. More and metric would real chore with Berkshire Hathaway home services teenage group loss in Chicago. Lauren is the past president of the Chicago chapter of the women's council of real torched. And has been awarded to prestigious thirty under thirty awards one from real drum magazine and one from Forbes magazine. Lauren welcome to realistic today thank you why are you out I'm great thank you and let me ask Lauren how's business in Chicago. You know it really meet each. Had to penetrate for years it won't tell our market there's not a lot of inventory you can get other other on the Internet and I had it out for years. So Lauren say that I've been in my starter home. For 56. Or maybe seven years and now I need to get a bigger place what my very first step. We are urged captains calling it can stop for a mortgage lender. And I are buying it what he can now board and how the going to walk. How can really shot well actually quite badly Al under eat what you're out Alfaro right. And how much you're going to get out of that call. We're back you're going to need a realtor for. Well I deal with a lot of might protect Ballard and it I heard Colbert are home we chat about what their situation and what Eric. Tying me up like they're motivation for Halloween and then what got knocked out walk bike and most people don't know. You know I want about the number and the need to get out how to park and how oh yeah I really can't comment and Cabrera what they're going chew. Nat out of their call in large and eat in tax com reality and a big part of it yeah absolutely what I like he didn't pick out my car. Children need more Eid Al went in their Macs I point. And what they actually want and can look forward to it something that are comparable. That you don't want to put a carpet or of course they look like by her out at. You know get out much about it Barton and then you can go look at bought my home. Laura and guess what that electoral whine that you are right now you realize you need a generic album on Egypt cannot ordinary now meeting we are. Don't you know back when they really helped me a comment I ain't tumbled eight and what their next move box by. Know Laura that's very helpful making sure they can do both transactions now. Assuming that they can't how do you help them get the house there in ready for sale. So a lot of I'm even if you batting or bumper a couple year at any Eric I'll get changed you collect a lot of means well. Note are being hurt and Michael Barrett a chocolate and go cable com and we know it's a pretty adept chocolate to get repeated then we go over everything I am wearing out and eating out bookshelves. Now. Cameron are now own immediate. Changing the backing to why Craig. Apple or that. We thought about or and I think alcohol. And then beaver at work. We need you forgot to change a light textured meat and and change we may get regain a background or shall check Ehrlich a comedian get up at armoire. Under anyway each Q will promote the amount of money you get the most money out of her call. Two I have to keep the place looking perfect. Every single day. I don't pay you know get ready for charmer and are sharing every point we get all are really should be made and I eighty as much if he can't. I can't think showing burned up a lot of people. Ethnic what can now hope Carlisle might have a child or not I think I a couple of people living like Abu. Well you know we were quick to Allard and thinking you know one kidnapped kind AirTran in my house. But we're not trainer went completely up down we can carve out time would create showing blocked. Or if we're looking aren't cute they are told at are showing old parent orbiting item at a cup many local out. And then maybe not showing on Saturday between twelve and breached and that way you create but you can. Act showing a lot of people are now how quickly a Gergen he each. Naturally get a lot of people in power at your home need culture and shelling between scared won't that wouldn't just create a aren't that buyers and compassion on people we take action can and I thought. More and that is a great idea are showing block. That's a big help to your sellers know Lauren we still have a lot of ground to cover but were just about out of time. Could you join us again in the next hour of realistic today and we'll talk about the offer and the inspections. And the closing absolutely. More in metric would. Real chore with Berkshire Hathaway home services teenage group loss in Chicago. Coming up unrealistic today. You're selling one house and buying another one at the same time how do you do that. Pre approval by a wonder his teeth because he one of my worst nightmares is to connect client out if you can't. That they always loved listed and find out it's not in their current strengths. That's coming up on our special show. First time sellers. But first it's time for our Smart home technology report. And today we're looking at the most fundamental part of your home security. The locks and that's right the locks on your doors. You know many years ago had a thought about the door locks at my house in today's world just about everybody walks up to their car in unlocks it. With a remote. And when they leave their car one push on the remote in the car locks that. And I thought so why can't we lock and unlock. Our houses the same way. Now for a few years there really were no answers to that cars were cars houses were houses. And the idea of using a remote to open that big dead bolts on your front door. Well it just wasn't possible but sensed then the Internet of things has taken over. And so many parts of the house have become smarter. Including. Your door locks there's a brand new generation of gorloks out there now. And the use Bluetooth technology so you can lock and unlock you do worst with your Smartphone. Like most Smart home track there are available from both legacy companies like quick out and show leg. As well as newer companies like August lucky trot and Gucci. And no work basically the same way. You pair the locked to your Smartphone. And then you can lock or unlock the deadbolt. With just a tap on your screen. No matter where you war so if your fifty miles away headed out on vacation and you wonder how do I lock the house. One look at your screen and you'll know. It'll tell you right there. Oh in another way to work some of the locks heavy proximity feature like the new cars do. He just walk up to your door and it sense is you're there in automatically unlocks the house. Now there are a couple of obvious questions one. What if you don't have your phone will just about all the new Smart locks also opened with a key so you don't have to use the Bluetooth technology. And also what if you lose your phone. Anyone who finds it be able to get into your house well maybe. If they can get past your phones password. And if they can find your address and if they know enough to look for the Smart block app. And if you don't disabled a lock as soon as you lose your phone. Well then they probably could get him but that's not really a tech issue. Because you'd be in the same situation if you lost your house keys to. The new Bluetooth Smart locks do show a lot of promise the only downside. Your house doesn't have a whore and so when you walk away and lock the door with your phone. You won't get that reassuring. Broad. The real estate today. Connecting you with the real estate professionals. Every week. And we're back when our special show first time sellers. All about putting that starter home on the market and going for home number two. It's a big transaction because this time you're not just spending money you're making it we'll walk you through every step with top real estate professionals. First time sellers is coming right up right after we check in with bill tops in the realistic today newsroom hi bill. Even human how Smart home technology like nest or echo but you have your own personal robot. Coming soon. Big ally that's big the letter I. But it also has a big IE YE and big I will follow your around the house answering your questions and offered a helping hand us even the promotional video. They die T Simi waved my head start things turn on the land hey this guy image plane landed during his time in meeting its. Thanks big daddy. According to engadget big guy resembles a cuddly trash can. And it's expected to integrate with your existing Smart home appliances but manufacturer MX robo isn't saying yet exactly when big guide will be available. Baby boomers want when buying a new home. New research by Hanley wood and home builder Taylor Morrison founded first impressions are very important to buyers in the 55 plus age group. They're looking for a welcoming environment location near shopping restaurants and medical services. And amenities such as club houses schools and walking trails. Inside the home the research found boomers value open floor plan high ceilings and natural light and they like integrated indoor and outdoor space and a lot of storage place. Coming up on half an hour more top real estate news Stephen back to you. Thanks bill. We're continuing our our special show first time sellers all about selling that starter house. And moving into another place that might be bigger better and more expensive. And right now one of the most challenging and confusing parts of that move. Selling one house at the same time you're buying another one how on earth do you do that the right way. Let's ask approach. Joining us now is Margaret Ramsey real chore and president elect of the Virginia chapter of the women's council of real tours Margaret as a thirteen year real estate veteran. Who's an associate broker with Virginia country real estate on the middle peninsula of Virginia. And with Roy Wheeler realty in Charlottesville Virginia. She's also a member of the honor society of the Virginia association. Of real torched Margaret welcome to realistic today. Well thank you Pratt and beyond that there. Well toward talking. No Margaret let's say one of our listeners is in their starter home and they want to move up they'll be selling one house while biting another one. So what would you tell them. Should be their first step. First step is to call me. Become a high end game. That's put an apoplectic let me come by and talk to them out take down information. Talking completed the mayor compared to market analysis for their home. Include chill in the all around the health I want them to point out to me this. Best features what made them by that particular house at that will help me sell it to somebody else. Spending that time together also confirmed that we're going to be comfortable working with each other so I think that's very important. So on the one hand they have to get their house ready for sale. Let's take that when first what's involved with that. I try to share of really good information with them about what. We are staying true researched it current buyers are looking for you want packed dark and up front stoop to look up some. Two. But it can't just things they can't afford to do like their clients that the that I can also talk about hitting a home warranties and including it in the sale of the hot. Okay they're getting the place all fixed up so what's next the lender because after all. They'll still need to get preapproved for their second home. Then there Richard I and pre approval viable under it's key because one of my worst nightmares is to connect client out to feel home. That they fall in love with and then find out it's not in their courage strength you haven't pre approval also out first it is quickly once we find something that they do loud. RC. OK now you start looking for houses and it gets kinda tricky what if they find a house they love. Before they sell their first one or vice Versa they get an offer on their house therein before they can find their next place what happens. That's usually where it's my job to write to correct contingencies and to their contracts if we can content. Was being aged mom mad cow off to get the year. Aren't you accept any. Contract with the home so contingency. That's probably one of the first things were going to try. If that doesn't work and we can lower the price on their house little Barrett. To get it sold more quickly can make that deal happen at something in the we will consider. Now it's taking had a contract on pier house you can write a contingency and the other way staying still for that price and all the other terms. But it's contingent up on didn't finding a replaced but health but I'd like to. Nor is it reasonable to assume that it's possible that in some cases. Some clients end up in a short term apartment. In between their starter house and their second house. And we try to avoid a bit it sometimes does happen. Even there of the planets to complete simultaneous closings would try to have a backup plans such as that in place. Didn't we go back and try to use those contingencies to keep it from happening. No rights. Margaret Ramsey real tour and president elect of the Virginia chapter of the women's council of real tours. Margaret thank you so much for joining us on real estate today thank you grab an 80. Coming up on realistic today and you're telling your first house and buying your second so. Harsher credit. Aren't there for a mortgage that it's gonna get you back here that's coming up on our special show. First time sellers. This it's real estate today. 100%. Real estate 100% of the time. And we're back with our special show first time sellers. All about that big moment when you sell your starter home and to move up. No one thing most first time sellers count on is the equity in their starter. It can be substantial. And it can often provide the down payment end the closing cost on their next home. But one thing they might forget. Is their credit if they've been in the house for several years. They might have no idea where its stance and whether it will help or hurt their plants. So let's talk about first times seller credit now within expert. Joining us now is Cali Gilda editorial director at credit dot com. The nation's leading authority on consumer credit and finance issues Kelly welcome to realistic today. What it's good to have you back now Cali let say that I bought my starter house about five or six years ago. And I haven't really paid any attention to my credit it sent but now I want to buy my second home. What's my first step in finding out exactly where my credit stance. Right off the bat you're gonna wanna get your credit report if you haven't checked Arab or get a free credit report for each of the major credit reporting you used the back at what back. Trans Union and Experian. Eat your derby you'd need. Did you want every twelve months for free under federal law. So ebitda are going to I don't credit report dot com. I wanna make sure that all we have a credit report are free from error that all of the major credit out. App all of your credit card and mortgage auto load if you are. All of that are being reported accurately all re of the other Arab. The complaint is I get my card or not a member gray dot com. We ever they credit or every month. We actually read up impact. Bet I'd Wear it every fourteen days and that you hoped you would actually in the clothing process where you might make the credit expect. Spending no quickly you're ordered grip or not that's free right. Yeah actually bring no credit card required a powered by Syrian Arab or get cute ordered the hitters or big white out. Which is the latest in a sport credit wearing model. That's our about it that he genetic explanation or. Ed and letter grade but you'll probably got it quite well a purpose that were a I have major credit scoring error. Don't know exactly how you diagnose the I'll look at and it is there ought it not been great run and that could take a look at it eat great. Compared your age group. You're eight mark the national level and you're you might have bragging right or you might bite and how it pretty that he ever have bragging rights that you Eric. Well that's a really important point because if you go and check your credit report and your credit score and you're looking good to. Well good for you go get a mortgage yeah. But if there's a lot of work to do. And I have a low credit score and I've missed payment Cali what's my repair plan. I really recommend sitting down with your mortgage lender. Re enter credit report that they aren't aren't they at anything that would be a pop up that they give you more holistic. Picture of what might be problematic in actually getting a group been allowed in the long run. Know another thing the first time home sellers have on their side. Is if they've been making their mortgage payments on time for 567. Years. It's possible that their credit score is even better now than when they first moved in. Definitely absolutely a history on current payment our mortgage which he ever have a lot Europe or the actually helped pull back is that it's gonna be a huge factor. Especially at that might be your lot at ending it all that out so maybe you can adopt if you are acute your pick out what you have. And here are. They're good aren't I'm into history on your mortgage your app. At your longer and it bird Dominique out and that other huge impact on your art or at our project at bishop Eddie and it wound. Now the last question. I'm selling it. My first house that are owned my starter house. And I have another when picked up and wanna move into. And so I get approved for the mortgage. And I'm just wait and a net three or four week period between being approved. And the closing day. And I think. Before. I buy the new place what happens. To my credit into my mortgage. My church responded no and Hewitt that it should be employed by your head saying that he would be cared. During the loading brought bad. There are things that happened with your mortgage under a when he predicted a prayer of governing art go through the application with your lender you're gonna pull your credit bad. But they're all we're gonna pour it right before you. So you you're not under any circumstances what looked like brittney credit during that. I'm period. Well that and all I wanna make sure that you're not hard up ballot on your credit. Art Wheaton who you close a memoir is when you have that either hand and that he could do it and. The clothing prospect that a lot of oversight over what sort of an ark here aren't into account that are here to the by the arm and had a lot of elaborate but I would like target are to report that don't Anthony and. Thought I'd hurt your credit and don't lack about the Arctic Arctic and you should be a good spot there are quote without issue. What Kelly thanks again for joining us on realistic today. And talking about credit strategies for first time sellers. I'll think about every Kelly jobless editorial director. At credit dot com. Coming up unrealistic today. First time seller mistakes. And how to avoid them that's straight ahead on our special show first time sellers. If you're hungry for real estate information follow real estate today on Twitter shares segment. Listen to them again and be the first to know what's on next weeks ago. Just search real estate today on Twitter. This is a real estate today is location. Location. Information. Put our special show first time sellers. You know it's a much bigger deal than buying your first house. Because this transaction comes with the potential of making money possibly a lot of money so you want to do it right. With that in mind let's look at five mistakes first time sellers often make and how to avoid them. Mistake number one making every issue a deal killer. Not sure it's a big transaction and your first sale. People are probably telling you you only have one chance to get what's coming to you because once you sign the contract for negotiations. End. What that might be true but if you did again on every single issue. It's going to be a rough road and you could just scare the buyers away. So try to prioritize. What's really important like the price or the settlement date. And what's not like the curtains or the gas grow. The second mistake pricing their house wrong. Sure it's a seller's market and a great time to sell but you can't just pick a price out of thin air. And expect eight someone's going to pitch and beat it'll appraised at that price when they get a mortgage. Plus price it too hard and it could just sit on the market and eventually you might have to reduce the price anyway. Talk to your real torn about pricing it right for maximum profit in the minimum time. Also on price mistake number three is assuming what you put into it is what you get out of it. This happens all the time you buy a place for 300 grand and they put in 75 grand for new kitchen and new bathrooms. And now are you figure you'll get at least 375000. Well maybe. But maybe not the market determines what you get when you sell your house not which he spent fixing the place up. Again talk it over with your real torque. Mistake number four is also about strikes and that's what happens. When you get an offer. Not sure when the offer comes in you go right to the price and that's perfectly reasonable but stopping there no that's a mistake. You can't just look at price and price alone. You have to look at the whole offer including contingencies. Deposit and the ability of the buyer to do the deal you'll real tour will help view. Take a 360. Degree approach to be offer. Looking at priced stand. Everything else. And finally mistake number five is one of the biggest mistakes anyone can make trying to sell your home all by yourself. Sure it might be tempting to be up for sale by owner kind of person. No agent no commission right well that's right. Except that studies prove that if you work wit an agent you make more money even after the commission. A lot more money according to NAR in 2015. People who sold their homes without an agent. Made on average 2101000. Dollars. But those who used an agent they made on average 249000. Dollars. That's 39000 dollars more an even after you subtract the commission. You'll still make approximately. 25000. Dollars more. So unless you wanna leave that money behind me don't try to sell your house all alone. So there you have it five mistakes first time sellers often make. You know I've made some of the myself but that was when there was a lot younger in the years sense I've learned a lot including to lean on my real tour for advice. They're the market expert Beno pricing marketing contracts and much much more. You'll realtor will help you achieve the ultimate sellers gold. Of maximum profit in the minimum time whether you're selling your first house. Or your 101. If you'd like to hear more of real estate today's special show the first time sellers. Either stay tuned for join us online get RET radio dot com. And from all of us here at realistic very thank you for listening. It here we'll turn you in the T entire real estate today show on your website. The best real estate show on the Radio One 100% free to any our members. Just go to RE ET radio dot com. And click for real yeah. This is real estate today. The number one real estate show on the radio. Welcome back to real estate today. Backed by the professional experience of real tours from across America we're your most trusted source on the radio for help today real estate information. Real estate today is presented by the national association of real tools and Israel for members in your neighborhood. Hi again I'm Stephen gas Quaid and we have other great show for you today first time sellers. All about that rite of passage when you sell your starter home and get your second place. It's a huge transaction because this time you could be making some serious money. We'll talk to the best in the business about how to make that happen in our special show first time. Sellers but first let's go to the realistic today newsroom with Bill Thompson card by Stephen. The nation's homebuilders remain confident about the single family 55 plus housing market according to the national association of homebuilders. The association's quarterly survey of builders find that builders and developers for the 55 plus sector continue to report steady demand. NAHB's chief economist Robert Dietz says this quarter's survey results show that the 55 plus segment quote continues its gradual steady recovery. Jim Chapman chairman of NAHB's 55 plus housing industry council. Also acknowledges that in many markets builders are still facing labor and law shortages which he says are hindering production. The nation's foreclosure inventory tumbled nearly 26%. In June year every year according to the latest figures from core logic. And completed foreclosures declined by nearly 5% compared to June of last year. Core logic says the June 2016 number is down 67%. From its peak in September 2010. Wherever home prices keep surging someone invariably wonders aloud if the market is in a bubble there will inevitably burst. Economist Robert Shiller co creator of the Case Shiller Index tells Mike dot com that yes it looks bubbly in places as he puts it. But there is a fundamental difference this time. 20032004. We did surveys of homebuyer. Assam what do you think home prices will do on average for the next ten years typical answer is borrowed 101215%. A year injuries. That was crazy they're not talking like them more people don't have such extravagant expectations. Schiller says that in that context is looking less like a bubble than it did in the early 2000. The share of American homes being read about pest surged to record highs in recent years. And it's baby boomers who are leading the way and becoming landlords. Bloomberg News reports that boomers are growing force in the single family rental market while a number starter homes for sale has steadily fallen in the last few years. The number starter homes for rent is now a thirty year holiday. According to Bloomberg volatility in traditional investments like stocks has made real estate and attractive option for retirees. Coming up and half an hour America's small motion boomerang. Stephen back to you. Thanks bill. We're continuing now with our special show all about the first time sellers and in depth look. At the first time you actually have a chance to make money in realistic. And sometimes that can be a lot of money. But of course when ever you make money no matter how you do it. You need to be aware of taxes. And whether the money you make will or will not. Cause you to write a great big check when you fire your income tax return so let's talk taxes now with a pro. Joining us is Eric Smith spokesperson. For the Internal Revenue Service Eric welcome to realistic today. Oh page Steve great to be would you grade could be what. We're glad you're here. Now Eric today were talking about first time sellers who have never sold a home before and who needs some solid information so let's start at the very beginning. Tell them about the capital gains exemption how what works and how it helps people who self. Well Steve our policy makers and here in Washington Concord. Eat he. For many years to recognize that that we don't stayed in particular your own home there's certain special treatment of attacks on and so. What they've done is to provide an exemption. For a principal residence the main home the one you live in most the time. When you sell that home. You can exempt from tax. The first 250000. Dollars of the prop bet because capital gains that you make comments fail and if you're a married couple. That exemption can apply to a record 500000. Dollars up your capital gains. And let's talk about those limits permanent because first time home seller will probably Nazi a profit approaching those capped barked. It's important to stress any profit they make any profit that's under those cap. Is tax free. It has actually it and it's a matter of fact if you qualify for the people who have been your home. As your main home almost for the tribe. It is an even desperately looked a couple of years it's gonna qualify part that to an exemption. OK so exactly how do you qualify for this. Well you lead to live in your home are you remaining home and and typically you're looking at the past. New year so you take you know promote people that you could the big deal you know you eat you live in a particular place and now Russia but sometimes people live in a couple of places may be yeah. You held by. You know a place that which you go to the lake and replaced him Powell and whatnot. And it Intel in note cases may or may be that makes it different. But it's it's a play if you live he had been viewed that your your main home. The bulk of the time. The idea. Billion these days you can make up half million dollar profit on selling your home. Married or a quarter million dollar profit single and pay no taxes on it that is. Amazing. I think a lot of people like this kind of been out of got it it's certainly been popular with our our policymakers. And went that the public and it it is something for people and all golf and if they qualifying path by army to take advantage of that. Know about those caps Eric if anyone listening to this exceeded them. 500000. Dollars profit for a married couple 250000. Dollars profit for a single person. We've just got to say well done. Danielle you better check you know you figure any page you can bet it's nice to be it's always nice to be in the money. And you're an important things speed in that situation. Old people a little bit of current occurred at times they've probably made some significant improvement. You know maybe they put on a new book that are are adequate problem or. Finished basement or something. It might be enough if you have good records for that might be enough to put China the cap. Let's do some myth busting. There's a really really old tax law that some people believe is still in effect but it's not. That was the rule that said when you sell a house for profit. You have to buy another win within eighteen months or you'll be taxed on the money and tell people Eric that that is old law and it's no longer true. I had told life and it's no longer truth be happily in touch right you are or you are spot on and it's like you know that a lot of it has a lot of ideas once they're all very you know good things can change and in the middle. People open up paying that much attention to be quite still can't get away in this state plant that kind of auto situation. That while we've achieved by congress in 1990 haven't. And they want to live their system we have now what should. Which is much simpler and yet he used it's actually a larger exemption per per people probably are capital gains. By Neil basically it true you he'd like he almost treat it is so essentially you're doing well Walker's view he is the idea would fit. If you owned a home you finish your main home and he's sold it typically we're gonna be rolling over litigated into a new home and so. You rolled over and year old Albert you rolled over throughout your life. And I could build up over a period of time. And and certainly it very very many cases that's true but you know some people it's not you know you're gonna sell and they maybe you're gonna move. Took part of the country by Rem pearl island that you might wanna get back into the into homeownership began. Well this being viewed the law would change curry really give you the flexibility to do that you don't have to worry about the roll over you don't have to worry about. All expelled that may have happened decades ago. Eric Smith spokesperson with the Internal Revenue Service in Washington DC. Eric thank you again for joining us on realistic today. Old Steven is absolutely been my pleasure. Coming up on realistic today. Could a love letter to help you get that perfect second house. The fat that's next on our special show. First time sellers. This is real estate today. Because it's not just a house it's home. Back again now with our special show first time sellers. Making the jump from your starter home to Europe. Second house. And we're continuing our conversation with a real estate pro walking you through the process step by step. Joining us once again now is Lauren metric would. Real chore with Berkshire Hathaway home services Keeney group bluff in Chicago. Lauren is the past president of the women's council of real tours in Chicago. And she's one to thirty under thirty awards. One from real for magazine and one from Forbes magazine Lauren thanks for joining us again absolutely. Yeah. In our first hour we talked about pricing the home right. Making sure you can afford your next home and also getting the house ready for sale. Now let's move to the offer when you get an offer on your home how do you know it's a good one. Sure well. Start then how opera or that it I'd rather have one yet well why he now are not acting we're all right on that what you are. What it is pretty bland or boring at my client. So clean completely fouled out at putting about an important one tired a bit. Conditioning offer crack I have and he'd bring that forward I'd like soccer and that he buried on big Arctic figure out who's who live in who the latter then indeed you know. It could compete not all the paperwork could make it at the Lebanon one need now are not packaged. And then went and I'm in black he you have to Craig Aaron now go over here aren't aren't all out so what's that like what do you do. They got print everything in their car pileup in all of your basic under under that aren't even. You know I can't work with the iron battered or older couple -- aren't normally go to a lot flatter Allah you know based on Havoc on how big American art. Along kind but honoring a baton. So I pulled apart shouldn't have been well or Mac or LA or own your I'll talk one bet wow. Not in a lot water really matter how he had out you know he read our can one put out what went. Powell when the market and would you like what I need. Clearly beating wall how much couldn't let me what I thought it was about oh I love your honor they. Own global WiMax and you're. So it works. Mart that are you don't need all the time but right and my blood. Well that's really good to know because some real church where by love letters others say don't do moment. It's interesting that you do. Happened and he hadn't taken to good doesn't it not matter I know. Think he'd been called for a. And you've got the house. How can a realtor helped me know. If the buyer is really able to do the deal and purchased a house. So I don't know kind of effect the first I thought I would not have your friend Eric wanna me Eric. Why the buyer it. They approved or they have approved up on both he cashed what can improve a lot error won't opt in on what all the more. Okay I'm mark Bob Hope crying you know 101 get in accordance able. And company in more clothing capacity. So talking about lack merit hockey page and interact and to understand more about the by abortion so. Allard can't while we're at our current crop. In many cases the buyer will ask for a home inspection. If I'm a first time seller should I be nervous about that. Yeah I mean I've never been an actual battle from what clean. Okayed it impact your third shot. Out about it yet degree I mean. And yet. Actor got an immigrant I block call. Even your actions and conditions you're not a let me know on pumping and having a hall duke Claudette yet on how won't. When did Karl ask them out of react and I know were aren't apple included eared. In an urban I don't you know you know I have no a lot of I had it DUIR. Warranty opt aren't. It's all about I expect Asian and indeed it Eller had that great expectation. When you current aren't. Home buyer won't eat Garrard or upgrade in actress I go. We aren't got to adhere how water he and Nowak returned a twelve year. Battery not by our own guy not a class got a YE book back and. Nice now we're gonna fast forward Lawrence the closing. In most cases win the first time seller. Cells that starter house they then move on to their second house. How does that work when it comes to closing when you're selling one place and then buying another. May be in the same day or within two or three day span. Yeah again I dabbling rank and got to keep all the balls in the air. And just hope and pray and not be you know all about your hand know what I've been doing not. As of late and it didn't expect are doing a bad back situation and and the fire occurred on the our own. They might rent or are people who need a mom is everybody trying. In key being pushed back up Allard. A quick aren't buying uncle Al. Opt in time back pardon me out by ball not just a pop rock act you know that he'd probably customer and there are two big victory for a week than any social and why can work now thinks the iron into Red Sox situation on the Allard. You know Oppenheim there are in bed Wear clothing and apple wanted to look at your age and what a crane. Quote how about a track cleaning it delivered a walk out. Will Lauren great advice for first time sellers. I really appreciate you joining us on the show. Thank you and lack of no on eight and I much appreciate that. Moran metric would. Real chore with Berkshire Hathaway home services teenage group loss in Chicago. Coming up on realistic today. Entering kids into the equation. These actors are actually actors that things like eating chips and and even perhaps parks and recreation facility that actually got out of the west because we'll really be on the number one priority is it. That's next on our special show. First time seller. But first it's time for real knowledge. A special segment on realistic today in which we talked to a top real estate professionals. Economist or journalists and asking them but tough question. Designed to help you have a complete understanding of some of the most complicated areas are realistic. Joining us now is Keith coming or vice president of consumer education at HSH. Doug column. The nation's leading online resource for mortgage information. Keith welcome to realistic today aren't you chief our question today on real knowledge is. How does a person no. It's the right time for them to refinance. What do general you have to shut out with a goal in mind to another child spot he could. You have to start out by saying I want to achieve this goal I'd like to have on a lower monthly cost that is a point to prove by cash flow. Or I'd like to be paid less interest over time. Which might indicate he won a shortcut to turn your mortgage. Or wanna get out of the product and I don't think you did an armed Bourque a bunch Erie and great have been really great the town you can't stop Lockett kicked straight forever more. At a rate it's comparable to what you pay on your arm choke starting out but it started what is Michael for refinancing. Take a look at the marketplace to see if there's a product it'll Beecher call it and now we're talking about. Is there an interest rate differential and I think. If this mortgage it's going to provide me the benefit Taiwan. Up over that time period touch people other crucial factors how long do you plan on for a meeting. In this mortgage because it's going to cost you something to get into that mortgage cautioned fees at a can be paid out of pocket. You continue to bike building momentum loan amount you continue to poetry offer slightly higher than market interest rates but they're good reasons to do any one of those. But depending upon your circumstances panic upon what your goal is depending upon what's available to view. One of those passes could be the best for you so. Start with that. I need to set a goal for what a lottery but it's I need to know what's in the marketplace to which he'd act all I can do the prices of those mortgages and and how long particularly to take me to get to the goal of Russia. Keep that is great advice especially the advice about having a specific goal in mind when your deciding whether to refinance. Keith as always thanks for joining us today. To be here let's keep coming your vice president of consumer education at HSH dot com. The nation's leading online resource for mortgage information. If you have a question for real knowledge you can email us at questions at par ET radio dot com. That's questions that are ET radio dot com. This is really easy today. All real estate all the time. And we're back and I'm glad you're with us as we continue our special show. All about the first time you could make go a hundred grand in cash. Since you're looking to make as much money as possible to pour into your next place. So how do you make the maximum profit in the minimum time we're talk to the pros as our special show first time sellers rules off. But first let's check in with Bill Thompson and a realistic today in future. I don't. Stephen. A recent resurgence in job creation is boosting the luxury housing market in many cities. Has some Naji president and CEO Marcus and Milledge up real save brokerage tells CNBC. There's a definite correlation between job creation and the health of housing. When you look at where jobs are being created surprisingly markets like Dallas still topped the list of course Los Angeles New York. I'm other markets that may be surprising are Philadelphia. A Boston is still it's a pretty good job creator Orlando Florida has come back without a lot of strength in the inland empire in Southern California. Now do you also concedes though that in many markets there is a chronic. Shortage of inventory but can't keep up with economic growth. Nearly two out of three millennial are saving cash to buy their first home according to new research from TD bank. They're second annual first time home buyer poll finds the Malone meals are more conservative with the money than their youth was just. Gotta pay more had a pricing and secondary markets at TD bank says quote it's encouraging to see millennial thoughtfully prepare to enter the housing market. Stephen back you. Thanks no. Continuing downward our special show first time sellers. A show all about that first time you actually sell your house and hopefully make some serious money. Know people sell their starter homes and move on for a lot of different reasons new job and a big city being closer to family and of course. Getting a bigger house because your having more kids. It happens a lot baby on the way house on the market new house on the horizon. And a brand new report from any our digs deep into all the factors affecting a move with kids. Let's talk about that now with Jessica Lutz managing director of survey research and communications. At the national association of real torch Jessica welcome to realistic today. It. We're glad you're here now Jessica first of all tell us about the new NAR study moving up with kids what were you looking for here. We've really meant and know how to best Amelie you have children who are on dairy eat. Mood and agitated and our entire. How big and that's great elite eight and eat Kraft knew that and the I had brain are well and we thought it would be timely because it herald he's ready to go back to well at least take it out. You just made a really interesting point which is the time for now because the school year calendar is set in stone. Two people with kids either timing and the speed of the transaction to be more urgent. Than people who do not have kids in the home. Currently one of the things that we match our in our prep I have of art that Elliot Perry took that either ran it. Urgent need our own L and be counted twelve and all in the Allard who. Are telling who have no children. Are telling barriers patent double her home with their children under each eat an all. Twenty corporate I'd eat it felt very urgent and when they're looking for each and being oblique titans pregnant Alley with and that is I think I've ever variant aren't Allard. There have children. So these are not people who were just kicking back in testing the market. They really got to get up and go. Speaking you know and are often telling because they do you have an Egyptian in the home they want to alert our how to make currently has. Weren't they also can have a talk regret is that ultimate ink would really put pressure on elegant quicker I. Nor understand that the survey found that kids are a huge tractor. When it comes to deciding where to buy your home because of schools or can you tell us about back. Absolutely don't want to meet you that we actually eat. But the quality of the old historic event aren't earth it deeper and can be found it convenient to all of our 43 or and to be out. And these actors are patch big actors that big picture and eating get and and even perhaps park and recreation facilities and actually go down and elect because we'll really be calm and not I want parity it. Very interesting now Jessica. What kind of homes. Are people with kids buying especially when compared to homes people without kids are buying. It's probably not keep it bright either write a lecture hall ED brand to Breaux would not comment while. I know people would keep her out very keen are buying typically aren't that cheap out and 100 RE XP compare it and it goes without it 8200 or eight. I had they're buying one additional Patrick at our veteran and she backed would be typically have a on the urgent at the read that your chief. I eat well Jessica summing up the study. It seems that when you move with kids that impacts your timeframe at your location. And even that type of how she picked. Or when you sell one house and buy another having kids really affects every part of the transaction. App early and they really are relying on each and would hate and that worried today it's really hard anyone in every column. At this Ashley hard was Everett Ehrlich would really within its eight. Ethic that he and it's at it would look at a well attacked and they really can't rely on our agent event up that the army and timely information. And to really help and Alec at a at a time. A very interesting study Jessica and also tie aimed of course. Justice school is starting up in cities all across the country. Absolutely we tried typing while it. Are you certainly duke Jessica allowed. The managing director of survey research and communications at the national association of real course. Thanks for joining us on realistic today. Coming up unrealistic today. Will you sell your house faster and it hits the stage to. I need to go all the public you're probably. And wanna bias what then perhaps you think that's next on our special show. First arms sellers. This is a real estate today. Because your home might beat. Your biggest investment. And we're back with our special show first time sellers. All about that huge moment in life. When you sell your first home. And move up to a bigger and better place now every seller. Especially first time sellers. Want to make the maximum profit when they sell their house and one of the best ways to make that happen is to make the place so. Beautiful buyers want to make an offer right there on the spot. And for that you might consider hiring a professional home stage your. Let's talk home staging now with a pro Karen you banquet eubanks staging and design in Dallas. Turns an industry professional and she's right now the region ten vice president of the real estate staging association. Kerry and welcome to realistic today. It bad or caring for first time sellers who have never sold a property before. Tell them what a home Ager does and why it matters. I mean people are a lot with your humble. And wanna buy it more than any other big. And day out Al and I made by. Creating. Something bad is a white IL an image that itch you know she got target Democrat back. So it iMac and I am I'm in a particular neighborhood in Dallas. I know what kind of fire on it'd be targeting. If I'm gonna have like Eminem neighborhood where it a lot of Rand style com and bet that thirty G your home buyer. And you're in love with the entry in modern confident are at a moderate bought into what I like Al wants. And creating a lifestyle that a fire fighters. So Karen let's say I'm in my starter house and it's time to sell and get a bigger place. How to know if I need to agent or not. You know what don't go home is all of baseball and art and get a on opposite picture online that pictured are prey. They're not gonna arm up people are looking at their mom online today. And what people online at apps to their match at a point that actually Ellen look at come so. It is not a healing on the curb all the way to the end by people even our other. People already know they want the neighborhood they aren't you know pick a sport that secular all it right it. So you would benefit at least from having it our population but a professional major. Or anywhere from Jeter 400 dollars of our entry area. A professional major and do what we call a walk and talk and that's actually what they do. In walked you don't come on and chat with you about is curtain you can. Add cost and I and you can do all of the curtain stop a lot of it is edit out eat bitter personal and you change to keep pink colored can to keep up. Right and so when a professional stranger comes in and give someone advice about how to rearrange their house to make everything look better. Typically what do you find and what do you tell them to do. Typically find at furniture arranged in a way it does Bankrate proper pilot blocked so why don't we are often not rearrange or repair it if it. Anti aren't really dug up a lot. We hit the league might wait many. We can collect the all week and he photographed. Gambling item and it's very quick get rid of and then a hundred in dairy case that the picked color ethnic kind of a bigger issue or more time. That it has been detected but Alec that the umbrage at what we have that typical red dining room we bought those acts that. Add bait you don't really appeal to the Democrat a two day especially on her umpire. Everything Asian gray and why shouldn't going to be for awhile. So I have read you did just that people paint at Eric urged all Brandon. Had a tap are all colors within neutral color. So Karen earlier you said that the consultation. Would be for maybe two to 400 dollars. But what if the house is vacant and you had to move in all this rented furniture in every room how much would that be. Well for about one that a public art that house. You can get it helped burnished and that. Erie a little bit that the rule of thumb. It is Ager and chummy and and do a report for you had our backs are generally aren't they can come at age as an amateur a finished well. And usually got complication he credit it. It Beijing and I see you're really not out of pocket and at bat bat in the back yeah that now 1% at the April on will. Karen this has been fantastic. And I really appreciate you joining us on the show. Well I enjoyed it how much they give me a colony on. We will Karen thank you again for joining us on realistic today. That's Karen eubanks with eubanks staging and design in Dallas. Real estate today because you. Love real estate. And we're back with our special show for first time sellers. We're going to leave you now with an idea for all you first time sellers out there and it's also something any seller might think about it. It's an idea that may even sound revolutionary. And the idea is. Always by real estate. But never sell it have you ever heard that. It's an interesting concept but right from the start we should tell you that it only works for a very few people. The best neighbors out there. Because the whole concept is. Instead of just using the equity on one house to buy your next when you keep their first house. And you save save and save some more to buy the next. The national association of real torch reports in their buyers and sellers god. That a typical seller of home after eight years. Saw a median gain an equity of 24%. But if that same seller waited up to fifteen years they could enjoy a 40%. Increase in equity. The message is clear the longer you hold on to a property the more money you stand to gain. So let's take a look at this step by step. If you're like most people you saved like crazy to buy that first house. You did without luxuries like having dinner out or movies or a new set of clothes. You put off buying a new car and you just saved saved and need some more until you had enough to buy that starter house. And finally all that savings paid off because you've got the keys. And then after a few years if you wanted to move up well again if you're like most people. You bought house number two using the equity you earned on house number one. But what if you didn't do that instead you capped the first place and to buy house number two. You did the exact same thing you did the first time save save and save some more. The results not you'd have two houses one to live and the other to rent out. And the same scenario can happen again and again throughout your lifetime using your savings to move up not your equity. The result in the long run. In come and asset. If you read the place out there's your income and it'll be especially welcome after that mortgage is paid off. And it's an asset that will grow in value in as it grows. You'll wealth grows and of course it'll also work if you never move out at all. But just by properties one by one overtime. Not using equity to buy them but using savings. Which are doing is allowing your property investments to grow over time and it's a technique that employees to its secret ingredient to building wealth. Savings. And letting time pass. Together. That's a powerful formula for building wealth. The longer you own traditionally the more the property value goes up. Now obviously home appreciation varies and the downturn in the housing market a few years ago bears that out. Remember now realistic is cyclical it can go up or it can go down. But in the long run realist he usually goes up. No no idea is foolproof if you can't find a tenants you'll see a dent in your prophet and you might have trouble making the mortgage payments. Another thing to consider stepping into the role of landlord. That can be tricky particularly if you've never done it before. Talked to your real tour many real tours can help with property management duties for instance they can tell you how much your house might rent for. They can help you find tenants and they can help you write the leafs. Plus they also know reliable lenders who can help make this idea. A reality. And that brings up an important point if you keep the house you're in and buy another one. Will you be able to qualify for a mortgage with that much debt. You wanna talk to your lender about that because you'll have to be able to comfortably pay that mortgage debt every single month. And that brings us to our last point never go overboard acquiring properties. Taking on much more than you can manage that are quick query to deplete your wealth not grow over time. So when you talk it over with your real tort and your lender. Make sure you're making moves that are comfortable and sustainable. So you get richer not you know the other way around. So always by never sell. Will that be a great idea for everyone now. But for those who can afford it and those who are excellent sabres people who were looking to build in income stream and retirement using realist it. Well it might just be one way too slowly. And steadily. Build some serious household wealth. Coming up next week on realistic today your real estate dream team. From your agent to your lender to your home inspector we'll meet the people who make every real estate transaction happen for you. Your realistic dream team is next week right here on realistic today. And remember you can always listen on line and RT ET radio dot com. And from all of us here at realistic today thank you for listening. If you're realtor you can put the entire real estate today show on your web site. That that's really stage show on the Radio One 100% free to any time. Just go to RE ET radio dot com and click for everything.