HOW HOME EQUITY MAY HELP YOU BUY YOUR NEXT HOME IN CASH

 

How Home Equity May Help You Buy Your Next Home in Cash

Building equity in your house is one of the biggest financial advantages of homeownership. And right now, homeowners across the country are sitting on record amounts of it.

Here’s a look at how that equity could be a game changer for you, and why it’ll flip your perspective from “Why would I move right now?” to “Why wouldn’t I?”

Home Equity: What Is It?

Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is valued at $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.

Why Equity Is Such a Big Deal for Homeowners Looking To Sell

Recent data from the Census and ATTOM shows how significant today’s home equity really is. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):

And that’s a big deal. Think about it: 2 out of 3 homeowners have at least 50% equity in their homes. To put a more tangible number on it so you can think about what that really means for someone like you, CoreLogic shows the average homeowner has $311,000 worth of equity built up. That kind of net worth can go a long way if you’re trying to make a move.

And that’s part of the reason why the share of all-cash buyers recently reached a new high. According to an annual report from the National Association of Realtors (NAR), 26% of buyers were able to buy without a mortgage (see graph below):

Imagine buying your next house in cash. No mortgage. No monthly payment. No interest rate to mess with. If you want to find out how much equity you have to see if that’s an option for you, connect with a real estate agent and ask for a professional equity assessment report (PEAR).

Who knows, you may find out you have enough equity to buy your next place outright– and with today’s mortgage rates, not having to take out a home loan is pretty incredible. Even if you don’t have enough equity to buy in all cash, you may still have enough to make a larger down payment, which has its own benefits too.

Bottom Line

Homeowners have an incredible amount of equity today – and that’s why the share of all-cash buyers is on the rise. To see how much equity you have and talk through how it can help fuel your next move, let’s connect.

HOW ECO-FRIENDLY FEATURES CAN BOOST YOUR HOME'S VALUE

 

Selling your house? Or just looking to increase the value and appeal of your home for when you do? Here’s something you should know – homebuyers are increasingly looking for homes with environmentally friendly features.

What Energy Efficient Features Do Buyers Want?

According to recent data from the National Association of Realtors (NAR), when buyers think about eco-friendly features, they’re looking for (see visual below):

a blue and white rectangles with white text

Heating and cooling costs: 82% of buyers consider heating and cooling costs to be one of the most important factors when looking for a home. And efficient heating and cooling systems with programmable thermostats can significantly lower monthly energy bills.

Windows and doors with proper insulation: These help maintain comfortable indoor temperatures without overworking the HVAC system, which turns into saving on energy bills.

Energy-efficient lighting and appliances: These can save money on utility bills and reduce a home's overall energy use too.

Commuting costs and environmentally friendly community features: Living in a community designed with energy-saving amenities and shorter commutes can reduce expenses and environmental impact.

Landscaping for energy conservation: Strategically placed trees and shrubs can lower cooling costs in the summer.

Solar panels: Solar panels can also provide long-term savings and are an attractive feature for eco-conscious buyers.

The common theme? Environmentally friendly features are popular with buyers because they help them save money and make homes more comfortable to live in. But making some of these updates before you sell your house doesn’t just benefit buyers – it's worthwhile for you too.

How Green Features Benefit You

If your appliances or systems are aging, upgrading them now means you can enjoy the savings and comfort while you’re still living in the home.

The U.S. Department of Energy has introduced Home Energy Rebates, which can provide households with up to $14,000 in savings on energy-efficient upgrades. This includes insulation, duct sealing, heat pumps, and more. These rebates make it more affordable than ever to improve your home’s efficiency.

Then, when you decide to sell, you’ll reap the rewards again. Energy-efficient homes stand out in a competitive market and appeal to the growing group of environmentally conscious buyers.

Studies also show that homes with energy-efficient upgrades, like those with high-efficiency HVAC systems or modern insulation, are more desirable for buyers- and they generally net a higher price. Research from Freddie Mac found that homes with high energy-efficiency ratings sold for 2.7% more on average than homes without these upgrades.

Work with a Real Estate Agent to Maximize Value

Not sure which upgrades to prioritize? That’s where a local real estate agent comes in. They can help you identify the eco-friendly features that buyers in your area value most. Whether it’s adding Energy Star appliances or improving insulation, they’ll guide you in making the best choices for your house and your budget.

Bottom Line

Making environmentally friendly upgrades can pay off in more ways than one. You can enjoy saving on energy bills and improved comfort now. Additionally, you’ll have the satisfaction of knowing you’re contributing to a more sustainable future while adding value to your home. Ready to learn more about how you can make your house stand out? Let’s connect.

Farms and Ranches Most Desirable Type of Land to Live On

 

It was a mixed bag of results, but according to the November LANDTHINK Pulse results, 35% of respondents would choose a farm(ette) or ranch(ette) to live on. Americans are moving to rural areas in ever-increasing numbers, reflecting their increased desire to seek out more space, embrace entrepreneurial opportunities, and take advantage of a lower cost of living. Whether you’re retiring, starting on a farm or ranch, or escaping the rat race, a farm or ranch can be your own special oasis. There are so many types of farms and ranches and ways to live the farm or ranch life, making this lifestyle appealing to many.

Last month, the November Pulse asked: If you had to choose a type of land to live on, regardless of size or location, which would it be?

Outside professional agriculture, the terms “ranch” and “farm” often get tossed around interchangeably, but they refer to distinct types of operations. A ranch is a specific type of farm that is focused on herding and raising hoven animals, usually cattle or sheep. The primary purpose of a ranch is breeding, raising and selling livestock, although there might be a small farm or garden on the land. A farm on the other hand, is used for agricultural purposes. There are different types of farms, such as dairy farms and crop farms. Large acreage farms and mega-ranches come with a hefty price tag and for many owning and operating a full-on farm or ranch just isn’t feasible. The good news is, there is a smaller and more pocketbook friendly alternative.

Most small acreage farms or ranches (often called ranchettes or farmettes) are rural properties, usually under 40 acres, where part of the land is used for agricultural purposes, including crops, livestock and horses. Buying a farmette or ranchette can be desirable for people looking for a mix of lifestyle benefits, potential income generation, and a connection to the land, especially for those seeking a semi-rural living experience with the ability to raise some livestock or grow produce while still maintaining a manageable property size.

Reasons to Invest in a Farmette

Wholesome family activities: Farmettes are often family-owned and operated, with the owners actively involved in day-to-day activities. This provides a hands-on learning environment where children can directly engage with nature, learn about food production, care for animals, and develop a sense of responsibility through gardening, livestock tending, and other farm chores, all while enjoying the outdoors and building strong family bonds through shared activities.

Environmentally friendly practices: Many farmettes are considered to be organic because of their smaller size and focus on producing a diverse range of crops for local markets, often utilizing sustainable practices that align with organic farming principles like composting, crop rotation, and minimal chemical use.

Increase your income: Farmettes can generate income from selling fresh produce, eggs, meat, honey, and services like agritourism activities like farm stays or workshops, educational programs, or direct-to-consumer sales.

Reasons to Invest in a Ranchette

Peace and privacy: Because of their proximity to metropolitan areas, ranchettes are the perfect location if you’re looking for the peace and privacy of the country with benefits of a nearby city. They also allow for more privacy, security, and independence.

Self-sufficiency: Ranchette owners value the ability to produce their own food or resources, whether through gardening, raising livestock, or harvesting timber. These days sustainable living has a large appeal and is often times becoming more and more necessary. This self-sufficiency can lead to a more sustainable lifestyle and reduce reliance on external sources.

Views and scenery: With landscapes that often stretch as far as the eye can see, ranchettes redefine the meaning of spacious living, providing the ideal backdrop for a buyer’s grand visions. Ranchette offer beautiful views of hills, fields, woods, lakes, and rivers. They also have access to natural resources like water, plants, and wildlife.

Pride of Ownership: The weather can be unpredictable at times and a lot of hard work goes into properly maintaining a ranch. It takes a lot of sweat equity to improve and manage a ranchette. Ask any owner about their land and they’ll wax poetic about the grazing, the scenery, and the hard work that comes with owning a ranch property.

It was a tie for second place, with 17% of respondents indicating they would choose waterfront land and 17% indicating they would choose rural undeveloped land to live on.

Whether it’s the majestic ocean, the serene ambiance of a lake, or the tranquil flow of a river, waterfront properties hold a unique appeal. There are several reasons why waterfront real estate could be an opportunity worth discussing. When it comes to investing in real estate, waterfront properties often stand out as high-reward investments, owing to their long-term potential. Additionally, the opportunity to wake up to panoramic water views and experience nature’s captivating beauty up close is a privilege that few can resist. Waterfront properties offer more than just a stunning view; they provide unique opportunities for community engagement and a lifestyle deeply connected with nature.

Rural undeveloped land is an investment like no other. Undeveloped land, often called raw land, is a vacant area without any public utilities, buildings or even driveways. Typically, undeveloped land is in rural areas, found off county roads and could be the place to build your dream home. It can be used for many other purposes as well, including:

• Recreation and Relaxation
• Agriculture & Farming
• Long-Term Investment
• Tax Benefits
• Freedom and Privacy
• Leasing Opportunities

Whether it’s a farm or ranch, waterfront land or rural undeveloped land, living on acreage have many benefits. If you’re considering buying land, it’s important to have a plan in place for the land and how you’ll finance the purchase. Knowing what to expect ahead of the purchase will help you save time and money. Make sure you factor in all costs and all the steps you’ll need to take to purchase, prep and use the land the right way.

If you have any questions or are wanting to move to the country, please give the Rural KC Team-Keller Williams Realty Partners a call at 913-837-0760 or 913-837-0411.

WHY OWNING A HOME IS WORTH IT IN THE LONG RUN

Today’s mortgage rates and home prices may have you second-guessing whether it's still a good idea to buy a home right now. While market factors are definitely important, there’s also a bigger picture to consider: the long-term benefits of homeownership.

Think of it this way. If you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. That’s because over time, home values usually grow – and that means a homeowner’s net worth does too. Here's a look at how that can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show how much prices have grown over the last five years. Since home prices vary by area, the map is broken out regionally to really showcase larger market trends:

You can see that nationally, home prices increased by over 57% in just five years.

Some regions are slightly above or below that average, but overall, home prices saw a big uptick in a short time. And if you zoom out even more, the benefit of homeownership — and the drastic gains homeowners made over the years — become even more clear (see map below):

The second map shows that, over a roughly 30-year span, home prices appreciated by an average of more than 320% nationally.

So the typical homeowner who bought a house about 30 years ago saw their home triple in value during that time. And that’s a major reason so many homeowners who bought their homes years ago are still happy with their decision today.

Bottom Line

There’s no denying today’s market is complex. But if you’re ready and able to buy right now, let’s connect to talk about how we can still make your move happen. That way you can take advantage of the long-term advantages that come with homeownership, like your ability to build wealth as your home value rises.