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Key Terms for Homebuyers
![Key Terms for Homebuyers [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2022/03/09163312/20220311-MEM-1046x2681.png)
Some Highlights
- Knowing key housing terms and how they relate to today’s market is important. For example, when mortgage rates and home prices rise, it impacts how much home you can afford.
- Terms like appraisal (what lenders rely on to validate a home’s value) and the inspection contingency (which gives buyers essential information on a home’s condition) directly impact the transaction.
- Buying a home can be intimidating if you’re not familiar with the terms used throughout the process. Let’s connect so you have an expert guide and advice for any questions that may come up.
How To Navigate a Market Where Multiple Offers Is the New Normal
If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing supply coupled with high buyer demand means you should be prepared to navigate a highly competitive market where homes sell fast and get multiple offers. Realtor.com has this to say:
“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”
In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest RealtorsConfidence Index from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers. That’s the most offers we’ve seen in January for the last 5 years (see graph below):
To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. They know what’s worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.
1. Know Your Numbers
Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. Pre-approval shows sellers you’re serious, which can give you a competitive edge. You should also know making an offer at the home’s asking price may not be enough. Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.
2. Be Ready To Move Fast
Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy.
3. Make a Strong but Fair Offer
When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember there are certain contingencies you don’t want to give up, like the home inspection.
Bottom Line
No matter what, your agent is your best resource for making an offer that stands out in a competitive market. Let’s connect to talk through what you can expect as a buyer and how to kick off a successful home search.
Key Factors That Impact Affordability Today
You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There’s no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable.
There are three measures used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each of these components.
1. Home Prices
The most recent Home Price Insights report by CoreLogic shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.
2. Mortgage Rates
While the current global uncertainty makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. According to Freddie Mac, the average monthly rate for last February was 2.81%. This February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year.
3. Wages
The one big, positive component in the affordability equation is an increase in American wages. In a recent article by RealtyTrac, Peter Miller addresses that point:
“Prices are up, but what about wages? ADP reports that job holder incomes increased 5.9% last year but rose 8.0% for those who switched employers. In effect, some of the higher cost to buy a home has been offset by more cash income.”
The National Association of Realtors (NAR) also recently released information that looks at income and affordability. The NAR data provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. Here’s a graph of their findings:
As the graph shows, the median family income (shown in blue on the graph) is greater than the qualifying income needed to buy a median-priced home (shown in green on the graph) in all four regions of the country. While those figures may vary in certain locations within each region, it’s important to note that, in most of the country, homes are still affordable.
So, when you think about affordability, remember that the picture includes more than just home prices and mortgage rates. When prices rise and rates rise, it does impact affordability, and experts project both of those things will climb in the months ahead. That’s why it’s less affordable to buy a home than it was over the past two years when prices and rates were lower than they are today. But wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable, homes are not unaffordable today.
Bottom Line
To find out more about affordability in our local area, let’s discuss where home prices are locally, what’s happening with mortgage rates, and get you in contact with a lender so you can make an informed financial decision. Remember, while less affordable, homes are not unaffordable, which still gives you an opportunity to buy today.
March 2022 Housing Market Update
Welcome to the March 2022 Housing Market Update. Geoff Green, President of Green Team Realty and Co-Founder and CEO of NuOp, is the host of the March 15 webinar. If you missed it, the video of the webinar is available below.
Price appreciation
As shown here, there is an acceleration again in price appreciation. For a while, we were talking about it decelerating (not depreciating). According to Geoff, inventory is just so low that pricing has nowhere to go but up.
In addition. the major forecasting agencies show an average of 6.1% increase for 2022. The average annual home price forecast has usually been around 4% per year.
Supply and Demand
Basically, inventory is a subject that the Housing Market Update has discussed for several years. A Sellers’ Market is defined as having less than 6 months’ inventory. Home prices will appreciate. A neutral market, during which prices appreciate with inflation, is 6-7 months inventory. A Buyers’ Market, with over 7 months of inventory, will see home prices depreciating.
In addition, worries of a housing bubble persist among 77% of consumers and 44% of agents. However, there is a big difference in factors, including inventory supply as shown below.
Keeping an eye on other factors…
According to Mark Zandi, Moody’s Analytics Chief Economist,
“Recession risks later this year and into next are now uncomfortably high.” “The odds that the Fed missteps and tightens too aggressively are material and rising. Landing the economic plane on the tarmac was already going to be difficult for the Fed because of the pandemic and high inflation, but Russia’s invasion makes it more likely the economic plane hits the tarmac hard or even crashes.”
The Housing Market Update will continue to keep an eye on this. However, Geoff reminded viewers that a recession does not necessarily lead to a bad housing market.
Meet the Panel
Joining Geoff for this March 2022 Housing Market Update are Keren Gonen, Green Team New Jersey Realty, and Peter Mallon, Americana Mortgage Group, Inc. The panel discussed the issues and data presented by Geoff as it relates to what they are experiencing in their own businesses. To watch the webinar and view the panel discussion, click here. You’ll find contact information for the panelists below:
“Housekeeping” Items
An Expert Advisor Will Give You the Best Advice in Today’s Market
Having an experienced guide coaching you through the process of buying or selling a home is important in a normal market – but today’s market is far from normal. As a result, an expert real estate advisor isn’t just good to have by your side, they’re essential.
Today’s housing market is full of extremes. Experts project mortgage rates will continue to rise this year, and that’s driving significant demand for homes as buyers want to make their purchases before rates climb even higher. At the same time, an absence of sellers is leading to record-low housing inventory. This imbalance in supply and demand is creating bidding wars and driving home price appreciation as well as considerable gains in home equity.
These market conditions can feel overwhelming, but you don’t have to go at it alone. Having a trusted expert to coach you through the process of buying or selling a home gives you clarity and confidence through each step.
Here are just a few of the ways a real estate expert is invaluable:
Contracts – Agents help with the disclosures and contracts necessary in today’s heavily regulated environment.
Experience – In an unprecedented market, experience is crucial. Real estate professionals know the entire sales process, including how it’s changed over the past two years.
Negotiations – Your real estate advisor acts as a buffer in negotiations with all parties throughout the entire transaction and advocates for your best interests.
Education – Knowledge is power in today’s market, and your advisor will simply and effectively explain market conditions and translate what they mean for you.
Pricing – Finally, a real estate professional understands today’s real estate values when setting the price of your home or helping you make an offer to purchase one.
A real estate agent is a crucial guide through this unprecedented market, but not all agents are created equal. A true expert can carefully walk you through the whole real estate process, look out for your unique needs, and advise you on the best ways to achieve success. Finding an expert real estate advisor – not just any agent – should be your top priority when you’re ready to buy or sell a home.
What’s the key to choosing the right expert?
It starts with trust. You’ll want to know you can trust the advice they’re giving you, so you need to make sure you’re connected with a true professional. No one can provide perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in today’s unique market. But a true professional can give you the best possible advice based on the information and situation at hand. They’ll help you make the necessary adjustments along the way, advocate for you throughout the process, and coach you on the essential knowledge you need to make confident decisions. That’s exactly what you want and deserve.
Bottom Line
It’s critical to have an expert on your side who’s well versed in navigating today’s rapidly changing market. If you’re planning to buy or sell a home this year, let’s connect so you have a real estate professional on your side to give you the best advice and guide you along the way.
Celebrating Five Years with Green Team
Like any family, Green Team likes to celebrate special occasions. And, celebrating five years with Green Team is indeed an important anniversary! Congratulations to:
Jaime Dalton
Jaime Dalton joined Green Team New Jersey Realty in January 2017. Raised in Vernon, NJ, Jaime graduated from Vernon Township High School in 1996. Jaime’s love of Sussex County and her deep roots in the area enable her to share her knowledge with clients. “I just can’t imagine not living here, “said Dalton. “It had the best of everything…living in the beautiful, peaceful mountains while having anything else you could want all within an hour.” Jaime ended 2021 by achieving a Bronze Award for a sales volume of $1.5-$3 Million.
Robert Valentine
Robert Valentine joined Green Team New York Realty in January 2017. Robert has even more to celebrate. He finished 2021 with the Bronze Award for sales volume between $1.5-$3 Million.
Theodore Van Laar
Theodore Van Laar has been part of Green Team New Jersey Realty since February 2017. He has over 35 years of experience selling resort properties. In 1979, the amenities and beauty first attracted Ted and his wife, Rosanne, to the area. Through the years, they fell in love with the lifestyle and growth here in the Mountain Creek, Crystal Springs, and Great Gorge resort area. They enjoy and share their appreciation for the surrounding area with their three children, family, and friends. Ted is a seasoned professional with a record of achievement and a reputation for his honesty and integrity. He is enthusiastic about sharing his love of the Resort lifestyle with his clients, whether they are looking for an investment property, second home, or primary residence. Ted received the Gold award for $5-$10 Million sales volume for 2021.
Barbara Tesa
Barbara Tesa joined Green Team New Jersey Realty in April of 2017. She brought with her over 20 years of professional experience in both residential and commercial real estate management. Furthermore, Barbara has a successful history as a licensed real estate agent in New Jersey since 2009. In 2001, Barbara and her husband purchased a home in Crystal Springs. There, they enjoy a resort lifestyle and all the beauty that Sussex County has to offer. The ability to embrace the potential in each of their homes became second nature to Barbara giving her the confidence to inspire many of her clients to do the same. In 2021, Barbara achieved the Gold award for $5-$10 Million in sales.
Lora Chandra
Lora Chandra joined Green Team Realty in April of 2017 as a CSA (Certified Sales Assistant). In 2018, she received the Team Player Award for being the most reliable, positive, and dependable. Furthermore, the award states that she works well with others and is a great problem solver. Ultimately, it’s no surprise that Lora has risen in the company to Operations Manager.
Pam Zachowski
Pam Zachowski joined Green Team New Jersey Realty in May of 2017. With diversified corporate experience, Pam pays great attention to detail and has a strong drive to find your next home. Additionally, her dedication to continued participation and growth within this industry has furthered her advancement. Pamela has a high level of motivation to continue advancing her professional skills and eagerly looks to utilize and challenge her abilities. She achieved the Gold award for 2021 sales volume of $5-$10 Million.
Kim Lesley Spaughton
Kim Lesley Spaughton joined Green Team New York Realty in May 2017. She was born in England and moved to New York City 28 years ago. There, she raised her daughter Jasmine, who is one of the original cast of ‘Hamilton the Musical’ on Broadway. Kim is a professional working musician, performing concerts, teaching singing locally. She also leads meditation workshops as the Spiritual Director of her own program in rehabs and outpatient facilities. Kim has a sublime understanding of the heart in others and in turn, has dedicated herself to finding the perfect home for you. Negotiating is her passion, understanding that each transaction has its own unique quality. Kim achieved the Bronze award for sales of $1.5-$3 Million.
Jim Moser
Jim Moser joined Green Team New York Realty in June of 2017. He studied marketing at Dominican College and, throughout his career, he has had a great passion for customer service. While a native of Rockland County, Jim has lived in Orange County for over 25 years residing in Warwick for over five. And, while some consider it “country,” Jim loves the mixture of farmland, great neighborhoods, and quality restaurants and shops. Of course, there are also wineries, the drive-in theatre, and concerts in town. His knowledge of the area and his desire to create a positive customer experience is a plus for his clients.
Tom Folino
Tom Folino became a member of Green Team New York Realty in October of 2017. If Tom’s name sounds familiar, it’s probably because he taught at Warwick Valley Central School District, where he was highly respected as both a teacher and coach; formally the Head Coach of both Boys Varsity Basketball and Boys Varsity Golf for 20 years. After 37 years with the WVCS District, Tom retired from teaching in 2014 and coaching in 2017. He decided to pursue real estate full time, motivated by a desire to help people sell and buy homes they’d love within this community he knows so well. Tom received the Gold award for sales of $5-$10 Million in 2021..
Walter Ross
Walter Ross joined Green Team New York Realty in December 2017. As a Warwick resident for over 40 years, Walter has knowledge of both the local and Orange County markets. Combined with over 35 years of business and marketing experience, he has the knowledge and experience needed to achieve a successful real estate transaction. Walter received the Silver award for $3-$5 Million in sales in 2021.
Happy 5th Anniversary and Congratulations!
Agent Spotlight on Kristi Anderson
The Green Team Agent Spotlight is on Kristi Anderson.
About Kristi…
Kristi joined Green Team New Jersey Realty in 2019, bringing with her over 18 years of experience. That year, she became a Captains Club award winner with $3-$5 Million in sales. In 2020, with $10.8 Million in sales, she was in the top 1.7% of all agents in Sussex County. In addition, she was named to the Green Team MVP Circle. Furthermore, Kristi received the New Jersey Realtors® Silver Circle of Excellence Sales Award that year.
The Broker-Realtor® is an Accredited Buyer’s Representative. In addition, Kristi has Short Sales and Foreclosure Resource Certification. This busy mom of four still finds time to volunteer with the Vernon Township School District’s SCA. She is also a dedicated, hardworking volunteer board member of the Vernon Chamber of Commerce. What’s more, Kristi has also started volunteering for the Highland Lakes Community Ecology Committee.
Before entering the real estate profession, what did you do?
I was in banking for several years then I worked as an Account Service Representative for a pharmaceutical Data Company. It was interesting but sitting at a desk all day was just not my cup of tea. I love the diversity being a Realtor offers
How and why did you become a real estate agent?
What do you like best about being a real estate agent?
What do you like least about being a real estate agent?
What was your most memorable/unusual real estate transaction?
What is it like being part of the Green Team?
How would family and friends describe you?
Hardworking, tenacious, easy to talk to, problem solver, dedicated, sincere, transparent, and most importantly honest!
What does “home” mean to you?
Home means family to me. A place where you feel safe, where you belong. Where you feel stable and secure. Homes is the base of where memories begin.
What advice would you give to someone thinking about selling their home?
There is no better time to sell. Covid has really made people appreciate the value of owning a home which has helped the values rise.
What advice would you give to someone thinking about buying a home?
What advice would you give to your younger self?
2021 Circle of Excellence Awards
Green Team New Jersey Realty is proud to announce its 2021 Circle of Excellence Awards recipients.
According to NJ Realtors®, the NJ Realtors® Circle of Excellence® Sales Award® recognizes those members who have demonstrated excellence in the field of salesmanship”
The 2021 Circle of Excellence Awards levels are:
- Platinum: $20 million and 30 units minimum, or 125 units
- Gold: $12 million and 25 units minimum, or 90 units
- Silver: $6.5 million and 20 units minimum, or 70 units
- Bronze: $2.5 million and 15 units minimum, or 30 units”
Most noteworthy, this is the first year Green Team New Jersey Realty has had a sales associate in each of the four categories.
Green Team New Jersey’s NJ Realtors® Circle of Excellence® Sales Award® recipients are:
Keren Gonen s the first to reach the Platinum Level for more than $20 million in sales. Kristi Anderson achieved Gold Level, with over $12 million in sales.
The Dynamic Duo of Charles Nagy and Theodore Van Laar each received the silver award. And Barbara Tesa and Pamela Zachowski were awarded the bronze award.
Green Team 2021 Awards
Geoff Green, President of Green Team Realty, summed up the unique challenges of 2021.
“It was a culmination of two of the most difficult years in the history of our industry and our Agency. Yes, the market has been sizzling, and yes lots of our Sales Associates had their best years of production ever. However, it all came at a cost. Our Sales Associates worked boldly through a pandemic. They endured countless bidding wars, many of which they didn’t win. They counseled their clients through an endless amount of phone calls to help them not be deterred from attaining their vision of becoming a homeowner. Despite the challenges put in front of them, they all endured and succeeded at new heights. A sincere congratulations to all of Green Team Realty’s Sales Leaders for their success in 2021.”
2021 resulted in the creation of new sales level awards, to ensure that the dedication and hard work of Green Team Sales Associates are recognized. Due to that dedication, Green Team New York Realty is #1 out of 149 offices in the Town of Warwick, based on sales volume and number of transactions in 2021. Furthermore, Green Team New York Realty is #5 of 585 offices in Orange County. Green Team New Jersey Realty is #1 of 206 offices in Vernon Township, based on sales volume and number of transactions in 2021. Furthermore, Green Team New Jersey Realty is #9 of 506 offices in Sussex County.
Yearly Sales Leaders and new sales level awards, setting the bar higher
Keren Gonen,, Green Team New Jersey Realty Sales Leader, and Sapphire Level. ($20-30 Million)
Jennifer DiCostanzo, Green Team New York Realty Sales Leader, Diamond Level ($15-20 Million)
Platinum ($10-15 Million)
Green Team New York Realty: Tiffany Megna, Nancy Sardo, Dean Diltz
Green Team New Jersey Realty: Kristi Anderson
Gold ($5-$10 Million)
Green Team New York Realty: Tammy Scotto, Carol Buchanan, Kimberly Lasalandra, Karen Gauvin, Kristine Many, Tom Folino, Vikki Garby, Pip Klein, Mary Pearsall, Angela Murphy.
Green Team New Jersey Realty: Charles Nagy, Theodore Van Laar, Pam Zachowski, Barbara Tesa.
Silver ($3-5 Million)
Green Team New York Realty: Cami Cielo, Lucyann Tinnirello, Toni Vogel, Walter Ross, Kasey Decker
Green Team New Jersey Realty: Cami Cielo, Toni Kreusch
Bronze ($1.5-$3 Million)
Green Team New York Realty: Linda Vandeweert, Toni Kreusch, Rebecca Hundley, Cara Dumond, Guillermina Tavares, Chris Kimiecik, Robert Valentine, Ed Sattler, Kim Lesley
Green Team New Jersey Realty: Jaime Dalton
Welcome Nerette Lewis to Green Team New Jersey
The Green Team is proud to announce that Nerette Lewis has decided to join our Vernon, NJ office. We’re excited to have her on our team in both New York and New Jersey and look forward to helping her continue to grow!
Please join us in Welcoming Nerette Lewis to The Green Team New Jersey!
