What are the Benefits of Becoming a Homeowner?

Every family has a list of important dates. We celebrate birthdays, anniversaries, pet adoptions…and the list goes on. For 64.4 percent of households in the United States, this list includes the day they became a homeowner for the first time!

Why is this date important? Homeownership is not just a roof over your head! It represents shelter, stability, wealth, and pride! For decades, homeownership has been an important part of the American Dream!

However, many question if the next generations see the same benefits of homeownership as their predecessors.

In case we have forgotten, some of those benefits are:

Non-Financial Benefits

1. Educational Achievement: Homeownership has a positive impact on academic achievement, including reading and math performance in children 3-12 years old.
2. Civic Participation: “Owning a home means owning a part of the neighborhood.” Homeowners have a stronger connection to their neighborhood and are more committed to volunteer.
3. Health Benefits: Adjusting for a range of demographic, socioeconomic and housing-related characteristics, homeowners have a substantial health advantage over renters.
4. Public Assistance: The report shows 47% of homeowners use their home equity credit lines to help pay other debts, diminishing their need for public assistance.
5. Property Maintenance and Improvement: A well-maintained home not only generates benefits through consumption and safety, but a high-quality structure also raises mental health.
6. Pride of Ownership: This place is uniquely “yours.” You can customize it according to your likes and personality.

In addition to financial benefits, homeownership also brings significant social benefits. These not only pertain to the family, but extend to the communities, the state, and the country!

Financial Benefits

Buying a home is an investment in your future!

1. Appreciation: On average, home prices are appreciating annually at a rate of 3.6%. This helps to create a safety net.
2. Forced Savings: Your mortgage is like a forced savings plan! With each payment, you are reducing the principal of your loan.
3. Home Equity: Homeownership builds equity every single month. You can later use that equity to start a business, send your children to college, etc.
4. Net Worth: A homeowners’ net worth is 44x greater than renters! This gives you the financial freedom to invest.
5. Stability: Rent prices increase 4% annually! A fixed mortgage payment allows you to save for future projects and guard against inflation.
6. Tax Benefits: The government has created tax benefits to encourage customers to purchase. (Talk to your CPA to see which benefits apply to you).

Bottom Line

Homeownership is and will always be part of the American Dream! There are many financial and non-financial benefits to take advantage of when owning a home. If owning a home is part of your dream, let’s get together to help you with the process!

Compliments of:

Julius F Zatopek III

Licensed Texas Real Estate Broker

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It’s the Little Things….Creating the Ultimate Customer Experience!

It’s the Little Things….Creating the Ultimate Customer Experience!

Valentine’s Day - went to a quaint little Italian Restaurant in the Rice Village area with my bride.  The location was grand, parking was no issue, and the ambiance of the night started out jut as planned.  We entered the remodeled home that was transformed into an elegant eatery.  The wood appeared re-purposed and the décor was within the element.  We had reservations, so the host was ready to seat us as soon as we arrived.  So far, so good!

Then, it started falling apart.  I understand owners try to maximize capacity and cram as many table and chairs into the facility, but we were literally sitting between two other couples, and it felt as if we were all sitting together.  I could understand this seating arrangement in a casual dining restaurant, but this was a restaurant designed to provide romantic evenings.

Luckily, we asked if we could move outside onto the deck and the host was very accommodating.  Only problem, I believe she forgot to tell the wait staff because we sat there for several minutes before a waiter finally came over and asked if we had been helped.  We ordered our drinks and asked for a basket of fresh bread to start.  After several more minutes passed, the server brought out the bread and drinks, but he gave them to the wrong table!  After several more minutes, our waiter came by, we told him what happened and it was corrected.

We were enjoying the cool night air on the deck, so the little mishaps were not spoiling our evening, and in defense of the staff, they corrected things as the night went along.  Even though, we were the only table missing the flowers and candles that all the other tables had.  Something I feel a good waiter, host, or manager walking around should notice – no one did.  Not to disappoint my bride, I got up and stole some flowers and a candle off another table, and placed them by my bride!  Again, not going to let the little things spoil my evening with the most beautiful girl and my best friend.

We ate, drank some wine, had dessert and enjoyed our evening.  My bride couldn’t finish her entrée, so we asked for a box.  The waiter took her plate and said he’d have it boxed for her – nice touch.  However, when he brought it back to the table it was in a generic white plastic grocery bag!

Overall, we had a great evening.  Unfortunately, we will not be revisiting this quaint little restaurant anytime soon.  Even though the food was delicious, the atmosphere was appealing, the location was convenient – it was the little things that will keep us from referring or revisiting.

So what could the little Italian restaurant have done differently to provide the ultimate experience and earn repeat and referral business?

• ·         Instead of several very small square tables crammed into the dining rooms, mix it up with some round tables and spread them out a bit to create a romantic setting.
• ·         Ensure ALL wait staff pay attention to the floor – even if it’s not your assigned area, take note of customers not getting served and take action.
• ·         Wait staff should frequent their assigned tables more often to ensure their customers are doing okay, even if it means hiring more staff so not to spread them too thin
• ·         Ensure ALL staff pays attention to details, like the flowers and candle missing on the table
• ·         And lastly, spend a little money on a nice gift bag with your restaurant’s name and/or logo on it for take out

We can all learn lessons from this type of experience.  You can have the best product, the best price, the best location, etc. – but, if you don’t do the little things well to create the ultimate customer experience, you may fail to have the repeat business.  During my days at a great company in the corporate world, I learned a valuable acronym “ATD”’ – Attention To Detail.  If you pay attention to detail, “the little things”, the consumer will notice.

Compliments of:

Julius F Zatopek III

Licensed Texas Real Estate Broker

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Lessons Learned from the Millennials!

There have been generations slaving hard at work just waiting for the day they can retire and start having fun. Unfortunately, some never make it to that day. These younger generations, Millennials included, aren’t about to let that happen to them. They believe that life is meant to be enjoyed. They aren’t planning on wasting life working to buy material things, they are going to enjoy every moment of it.

You know, reminds me of a good Kenny Chesney song: "The Life" 

based on the old parable entitled: "The Parable of the Mexican Fisherman" 

Maybe we could all learn a lesson or two from the Younger Generation (Millenials), or the Mexican Fisherman!

Affordable housing is one of the biggest dilemmas for all Americans, especially the younger generation, including the Millennial!  The average house in Houston was $294,500 in October 2018, which means the home buyer would need a combined income of roughly $100,000, with a 3.5% down payment, or $10,308, plus closing costs and reserves - and that's if hey have great credit!  This eliminates a vast majority of home buyers in all age brackets!

So, what's a home buyer to do?  BUY AN RV!!

The younger folks, especially Millenials, have caught a lot of slack from people. Their generations are stereotyped as being lazy, unmotivated, and having a sense of entitlement. But, that’s because the media attention has been on the wrong group of younger generations & millennials. While there are some still living with their parents and working at low paying jobs with loads of student debt, there are also plenty that are paving their own path.

For those paving their paths, RV'ing seems to be the perfect fit. This generation has discovered that there is an entire world out there just waiting to be discovered and an RV will help them do just that. Over the past few years, the RV industry has seen a steady incline that they attribute to younger generations, including millennials, jumping into the market.

What they are finding:

1.  They can make money online from ANYWHERE

They have discovered that they don’t have to pick a city that fits what they are looking for in order to get a job. Thanks to modern technology there are more and more people transitioning to the life of an online freelancer. They work for themselves, create their own schedule, and all they need is a laptop and Wi-Fi. That means they can do as much traveling and exploring as they want.

2. Buying an RV is more affordable than buying a house and provides freedom

It’s true that they have waited longer than any other generation to enter the housing market. Many claim this is because they are carrying some hefty student loan debt. That makes it hard for them to save enough money for a down payment and then have enough to pay a monthly mortgage payment. But, many have found that RV'ing living is a lot more affordable than buying a starter home, and it allows them to have an adventure.

3. They don’t have to wait for retirement

They can enjoy life NOW!!!

Thanks to: YouTube, Sky River RV, Be More with Less, and Houston Business Journal for info used in this blog.

Compliments of:

Julius F Zatopek III – Broker/Owner

Zatopek Properties

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Notices:

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You're being Watched....and Listened to as You Tour Property!

You're being Watched....and Listened to as You Tour Property!



As smart-home technology becomes more common, real estate agents and their clients are increasingly thrown into settings where someone, somewhere, could secretly be observing them tour property listings. And while most people believe such technology is not normally used for nefarious purposes, it does raise a host of questions about ethics, legality, and privacy when it comes to listings that feature surveillance devices.  States generally have laws governing recordings but it’s a patchwork of different regulations, and few real estate agents actually know what they are. Some states require both parties must have knowledge they are being recorded; while other states only require that one person has to consent.  

Either way, many real estate agents (myself included) believe we have an ethical obligation to disclose the existence of recording technology, regardless of what the law says, to all parties.  Agents have a fiduciary duty to their clients, and making everyone involved in a sale aware of cameras is part of that duty; regardless if the law states only one party has to be aware.

It is very difficult to ask a seller not to watch or listen in to conversations, because sellers will argue that they have the right to know who is in their property, and what they are saying or doing.  And quite frankly, whether you agree or not, that is hard to argue against.

On the other hand, buyers will argue that they should be given the opportunity to preview and discuss the property in private.  Again, a very hard argument to debate.

So, agents are really in a dilemma.  However, I still believe full disclosure is best practice.  If sellers wants to watch & listen, so be it - in fact, why not just make it fun!  Wave at the cameras and tell the seller(s) Hi!  If you're feeling really bold, leave feedback via the video devices for the sellers!

With all this said, it's human nature (I guess) to ease drop on conversations or watch what's going on.  Heck, before technology advanced to this - sellers were sitting in there cars watching from down the street or their neighbors drive - and using tape recorders in their home.  WAIT!!!  They still do this!!!

Compliments of:

Julius F Zatopek III – Broker/Owner

Zatopek Properties

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Find us at: www.ZatopekProperties.com

Notices:

Texas Real Estate Commission Consumer Protection Notice

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Do You Know How Much Your Home Has Increased in Value?

Last year we saw headlines about a possible housing market bubble, and many wondered if Americans still felt confident about the value of their homes. Recently, the 2018 Houzz & Home Study revealed:

“Homeowners with mortgages have seen their home equity more than double since 2011, increasing to a record-setting $8.3 trillion in 2017.”

The average homeowner gained $16,200 in home equity between Q2 2017 and Q2 2018 according to the latest release of CoreLogic’s Home Equity Report.

Since 2011 home values have increased significantly throughout the country, with prices rising by 5.1% in 2018 alone. When surveyed, homeowners revealed the top four reasons why they felt their homes had increased in value.

1. Desirable Location
2. Improved National Economy
3. Improved Local Economy
4. Low Home Inventory in My Area

As we can see, not only does the data show that the homes have appreciated, but homeowners also believe they know why. Many have taken advantage of the opportunity to use their newly found equity to sell their current house and move up to their dream home!

2019 will be a good year for the homeowners that still want to take advantage of their home equity! CoreLogic forecasts that home prices will increase by 4.8% by the end of the year.

Bottom Line

If you are a homeowner who would like to find out your current home value, let’s get together to discuss the hidden opportunities in your home!

Compliments of:

Julius F Zatopek III – Broker/Owner

Zatopek Properties

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Find us at: www.ZatopekProperties.com

Notices:

Texas Real Estate Commission Consumer Protection Notice

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Want to Get the Most Money from The Sale of Your Home? Use These 2 Tips!

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

HGTV gives this advice:

“First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers.

If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out on the shelf — in a positive way.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may believe that he or she will make more money without having to pay a real estate commission, but studies have shown that homes typically sell for more money when handled by a real estate professional.

Research by the National Association of Realtors in their 2018 Profile of Home Buyers and Sellers revealed that,

“the median selling price for all FSBO homes was $200,000 last year. However, homes that were sold with the assistance of an agent had a median selling price of $264,900 – nearly $65,000 more for the typical home sale.”

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the money you get for your house.

Compliments of:

Julius F Zatopek III – Broker/Owner

Zatopek Properties

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Find us at: www.ZatopekProperties.com

Notices:

Texas Real Estate Commission Consumer Protection Notice

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Impact of Government Shutdown on Housing

Unless you have been living under a rock, you are probably aware of the ongoing government shutdown. If you are a non-government worker, you may think that this will have little impact on you, but the effects may be more far reaching than you think. The shutdown includes all non-essential government employees and the many departments they represent. Some of these departments are directly related to the mortgage process. If you are selling a home, your buyer could directly be affected. Furthermore, if you are buying, the process may be stalled until there is some resolution. Regardless, the government shutdown will have a negative impact on the real estate market.

Even if you aren’t applying for a government loan, your application could directly be impacted. Most lenders need verification of income and identity through the Internal Revenue Service (IRS) or the Social Security Administration to process the loan. Even though income fraud and identity theft for the purposes of a mortgage application is very rare, it does happen. Lenders that underwrite these loans would be on the hook for the entire loan amount and unable to sell in the secondary market. Because of the shutdown, many lenders are forced to decide if the risk is worth the reward in lending without these important documents. Some lenders are forging on, but at the first sign of fraud, they will no doubt stop lending all together.

The longer the shutdown continues, the more likely something will come up and cause servicers to stop lending. This will have a trickle-down effect on rate locks, approvals and ultimately closings. A buyer that may have liked the property and the price may not feel the same way in 60 or 90 days. A seller that may have needed to sell to move somewhere else may be in a holding pattern for an undetermined amount of time.

Markets can adjust for a short term shutdown, but the longer it goes on, the more unstable things get. This may cause mortgage interest rates to fluctuate or shoot up if this lingers past our debt ceiling date. This increase may deter buyers from buying or may increase debt to income ratios and loan approvals. If buyers aren’t buying, then demand is lowered and this would cause a drop in home values. It is uncertain if the economy could withstand another drop in values, considering how much it took to finally get to this point.

This is not even accounting for buyers or sellers who are directly applying for FHA or VA loans. Those are direct government loans that are underwritten by these departments. For now they are continuing approvals, but the staffs have shrunk to skeleton crews. These loans make up anywhere from 15-30% of all new home purchases. With a decreased staff, this will cause an increase in loan turnaround times. It may make sellers or buyers consider walking away from the deal instead of waiting for 60 days. That will push parties into the holidays or near the first of the year.

There is no doubt that the sooner this gets worked out, the better it would be for the mortgage and real estate market. There has been no direct impact yet, but with every passing day, there is the risk that the purchase market can stall. If that happens, the government will have its hands full with another mess.

Article published by & courtesy of: Than Merrill - https://www.thanmerrill.com/impact-government-shutdown-real-estate-market/

Compliments of:

Julius F Zatopek III – Broker/Owner

Zatopek Properties

Follow us on Facebook®, Twitter®, LinkedIn®, and Instagram®

Find us at: www.ZatopekProperties.com

Notices:

Texas Real Estate Commission Consumer Protection Notice

Information About Broker Services