Tag Archives: Home Buyers

Home Buying 101: The Service Providers You Need for Your Home Purchase

Home Buying 101

When it comes to buying a home, there are more things to consider than you may realize. After all, it’s a lot more complicated than walking into the grocery store to buy a gallon of milk!

Buying a home is one of the biggest purchases the average person makes. As such, you can expect there to be a lot of preparation, negotiation, and paperwork involved. In addition to obtaining a mortgage and signing the paperwork, there are a number of other tasks that need to be completed before you can open the doors to your new home.

Here’s a quick crash course in Home Buying 101: what service providers you need to hire while purchasing your new home.

Mortgage Lender

Man and a woman speaking with a bank lender holding pens.Ideally, you should start talking to lenders before you even begin looking for homes—and get pre-qualified for a mortgage as soon as possible.

Pre-qualification involves reviewing all of your finances, including income, expenses, and savings, with a lender.

Then, the lender will do some math and let you know exactly how much the bank is willing to loan you.

From all of our years of experience, we suggest using a local lender. Contact us for a list of the best in the Ann Arbor area. Continue reading

So, What Does a Realtor Actually Do for Home Buyers?

If you’re actively looking for a new home to buy, it may be tempting to try and do it yourself, without a Realtor. After all, the agent isn’t really working for you, right?

Two-story suburban home made of brick and stucco.There is a common misconception that real estate agents are only working for sellers, but that couldn’t be further from the truth!

When you’re buying a home, a real estate agent can help you make the right financial decision while maintaining your sanity.

Real estate agents live and breathe real estate, so they know how to navigate the market unlike anyone else.

The Right Buyer’s Agent Will Make All the Difference

An experienced Buyer’s Agent will keep you on top of the market, show you hard-to-find homes for sale, negotiate your buying terms, handle the bulk of your paperwork, and more. And it won’t cost you a penny!

In fact, here are the 4 things real estate agents do to eliminate stress from your home-buying process. Continue reading

The Bouma Group Welcomes Trevor McIlwaine to their Real Estate Team!

Trevor McIlwaine, Buyer's Agent for the Bouma Group RealtorsWelcome Trevor McIlwaine!

Trevor McIlwaine was born and raised in Ann Arbor, attending Wines Elementary, Forsythe Middle, and Pioneer High Schools. He studied hospitality management at Mercyhurst University in Pennsylvania and proceeded to work in luxury hotels and restaurants throughout Michigan and Chicago. Passionate about customer service, real estate was a natural fit. With encouragement from family and friends, Trevor obtained his real estate license in October 2014 and has been helping clients with their real estate needs ever since. In his free time, he likes to golf, dance and is a football fanatic. Trevor is excited to be working with The Bouma Group and such a great team of real estate professionals.

Martin Bouma and The Bouma Group have been servicing the real estate needs of Washtenaw County for more than 32 years and bring a unique, personal touch to each transaction. Thorough market knowledge, exceptional follow-through, and cutting edge marketing are the hallmarks of the Bouma Group’s continued success and have consistently made them the #1 real estate team in Ann Arbor. To find out more about home and condo buying opportunities in Washtenaw County, contact The Bouma Group at 734-761-3060 or visit their website at www.bouma.com.

6 Ways to Save for Your Down Payment

A 20% down payment is a significant chunk of change. But with enough time to prepare and a little bit of creative budgeting, you’ll be able to save up for your new home sooner than you think. Follow these helpful budgeting tips to get started!

Break Down Your Budget

Closeup of the black and white number keys on a basic calculator.While it’s never a bad idea to start saving for a down payment, it’s an even better idea to analyze your budget before you consider a home purchase. This will help you set realistic expectations and concrete goals.

First, make a list of all of your necessary monthly expenditures — rent, power, water, phone service, student loans, etc. Add these expenditures up and subtract them from your monthly take-home pay. Then, look at everything that is left over and consider what to cut back.

After you’ve taken a look at your spending, determine what home price range (and, consequently, a 20% down payment) you could comfortably afford based on your current monthly budget. Our handy mortgage payment calculator might help! Continue reading

Why Are So Few Homes for Sale?

How is the Lack of Homes for Sale Affecting Buyers?

Detective Buyer Searching for Homes for Sale

There is no doubt that the largest challenge in today’s housing market is a lack of inventory for sale. This challenge has been defined as an “overwhelming lack of supply,” and even a “straight up inventory crisis.”

First American just released the results of a survey which sheds light on the reasons for the current lack of supply.

The survey asked title agents and real estate professionals to identify what they believe are the top reasons for this lack of inventory in their markets. Here are the results of the survey:

  • 47% – existing homeowners are worried that they will not be able to find a home to buy
  • 26.5% – first-time buyer demand is absorbing a large share of available homes
  • 11.3% – existing homeowners’ mortgage rates are lower than the current rates
  • 10.6% – insufficient or negative equity in the home
  • 4.6% – foreign buyer demand is absorbing a large share of available homes

As the survey revealed, there is a shortage of current homeowners willing to put their homes on the market for one of three reasons (see numbers 1, 3 and 4 above).

Is this an opportunity for some homeowners?

The report on the survey explains:

“The crowd has spoken, and it seems in many markets home buyers and sellers alike are ‘imprisoned’ by the lack of housing inventory.”

That leaves a tremendous opportunity for every homeowner not facing these concerns. If you can put your home on the market today, you are subject to far less competition than at any time in recent history. That will result in your home selling quickly and for the highest possible price.

The Bottom Line

While many homeowners are feeling imprisoned for multiple reasons, those who are not handcuffed by these concerns have a once in a lifetime opportunity to sell at a peak selling time. Plenty of buyers have seen what the summer market has leftover and are just waiting for better homes to come to the market. If you’re an anxious buyer waiting for new inventory, let one of our Buyer Specialists get you set up on a ‘flash’. You will receive instant notification of new listings that fit your criteria as soon as they hit the market. Give us a call at 734-761-3060 or shoot us an email at info@bouma.com and we’ll get started!

The 5 Greatest Benefits of Homeownership

The 5 Benefits of Homeownership You Need to Know!

Homeownership is Worth Celebrating

Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”

  1. Homeownership can help you build equity over time.
  2. Your monthly payments will remain stable.
  3. You may have some tax benefits.
  4. You can take pride in ownership.
  5. Homeownership improves your community.

Let’s expand on each of Freddie Mac’s points:

Homeownership can help you build equity over time.

Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun reported that now the net worth gap is 45 times greater.

Your monthly payments will remain stable.

When you purchase a home with a fixed rate mortgage, the majority of the payment (principle and interest) remain constant. On the other hand, rents continue to skyrocket. Your housing expense is much more stable if you own instead of rent.

You may have some tax benefits.

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.

Here are four items from the Briefing Book:

  • Mortgage Interest Deduction
  • Property Tax Deduction
  • Imputed Rent
  • Profits from Home Sale

You can take pride in ownership.

Most surveys show that a major factor in purchasing a home is the freedom you have to design the home the way you want. From paint colors to yard accessories, you don’t need a landlord’s permission to make the house feel like a home.

Homeownership improves your community.

The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study explained:

“Homeownership does create social capital and provide residents with a platform from which to connect and interact with neighbors…Owning a home means owning part of a neighborhood, and a homeowner’s feelings of commitment to the home can arouse feelings of commitment to the neighborhood, which, in turn, can produce interactions with neighbors.”

Bottom Line

There are many benefits to homeownership, in addition to these top 5. Have you been considering purchasing a home, but aren’t sure where to start? Check out our state-of-the-art home search here. If you’re ready to get out and view a few homes, contact us at The Bouma Group, Realtors today at 734-761-3060 or email info@bouma.com and we’d be happy to help!

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The American Dream Index Continues to Increase!

Your Opportunity to Achieve the American Dream Keeps Getting Better!

Your Opportunity to Achieve the American Dream Keeps Getting Better! | MyKCM


Forbes.com 
recently released the latest results of their American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the American Dream.”

The monthly index measures several different economic factors, including goods-producing employment, personal and commercial bankruptcies, building permits, startup activity, unemployment insurance claims, labor force participation, and layoffs.

The national index score was rounded out to 100.0 in January as a baseline for comparison. It rose the fourth straight month in a row to 101.8.

Alaska, coming in at 89.4, represented the lowest score on the index due in part to the recent collapse in oil prices. In contrast, Wyoming came in with the highest score at 115.1. You can see the full results can be seen in the map below.

Your Opportunity to Achieve the American Dream Keeps Getting Better! | MyKCM

Forbes Senior Editor Kurt Badenhausen explained why many states saw a boost in the index last month:

“The American Dream Index rose for the fourth straight month to 101.8 propelled by gains in goods-producing jobs and building permits, as well as declines in unemployment claims and mass layoffs.

Goods-producing jobs (manufacturing, mining, construction and agriculture) were up for the ninth straight month in May…Building permits rose for the fourth straight month compared to the prior year.”

Bottom Line

Owning a home of one’s own, for many, is a big part of the American Dream. With the economy improving in many areas of the country, that dream can finally become a reality. Are you a first time home buyer and want to know what you can afford in today’s market? Or see what is available in your price range? Give us a call at The Bouma Group, Realtors at 734-761-3060 or email info@bouma.com and let’s get started helping you achieve the American Dream!

What’s Hot in Home Design This Summer

Hot Summer Home Design Tips!

Bright sunshine, warmer days, and a ton of new trends come with the change in season, and this summer certainly won’t disappoint. In the real estate world, these new trends revolve around the latest and greatest in wall colors and decorations, space savers, and creative living arrangements. We have our eye on a few interesting home design ideas and hot home features that we think you’re going to love!

laptop sitting on marble countertop

Marble: A Sophisticated Look for Summer

Whether natural or imitation, marble is one of the top home décor trends for summer 2017. Designers are incorporating this luxe look into bathrooms and kitchens as expected, but they’re also taking it to everything from flower vases to side tables. Continue reading

3 Home Buying Mistakes That are Far Too Easy to Make

How to Avoid These Home Buying Mistakes

potential buyers staring at a house

This time of year is ideal for looking for homes. Since springtime is a popular home selling season, you have plenty of choices when it comes to finding listings in your preferred location, in your ideal price range, and with your favorite features. With all of these options, it’s going to be a breeze buying your perfect home… right?

There are some common mistakes to be aware of when searching for and buying your next home. But with the right resources and a team of professionals on your side, purchasing a home should be hassle-free.

1. Letting Your Emotions Get the Best of You

Buying a home is an emotional experience. While you’re touring a home, you can’t help but feel an emotional connection as you imagine hanging your photos and decorations in the living room, cooking dinners in the kitchen, and making precious memories with your friends, family, and new neighbors.

But be careful; if your feelings cloud your judgment, you may find yourself overpaying for your dream home, jumping in too quickly to make an offer, or low-balling and risk losing your favorite home.

home buyer tracking financesHow to Avoid This Home Buying Mistake

Arm yourself with facts and objective advice, such as your list of wants and needs, to keep you from making any emotional home buying mistakes. Continue reading

9 Moments All New Home Buyers Experience

You’re armed with your pre-approval letter, your wants and needs list, and your knowledge of the real estate market. Now comes the fun part: searching for homes! Like any part of buying a home, the home search has its ups and downs. But once you’re living in your new home, spending weekends shopping for furniture and décor, and enjoying all the amenities of your new location, you know you wouldn’t trade the experience for anything. Here are the moments only home buyers understand.

home buyers searching for homes

1. When You Hit “Search” for the First Time

You put your price range, number of bedrooms, and a couple of must-have features into an online home search tool, then hold your breath while the results page loads. Look at all those listings! Your new home is just a click away!

sign pointing to home for sale Continue reading