More Than Half of All Buyers Are Surprised by Closing Costs

More Than Half of All Buyers Are Surprised by Closing Costs | MyKCM


According to a survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.” gathered closing cost data from lenders in every state and Washington, D.C. in order to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

More Than Half of All Buyers Are Surprised by Closing Costs | MyKCM

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

Credit: (Keeping Current Matters, Inc.)

5 Reasons to Sell This Fall

5 Reasons to Sell This Fall | MyKCM

Here are five reasons listing your home for sale this fall makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply that is needed for a normal housing market.

This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

Historically, the average number of years a homeowner stayed in their home was six, but that number has jumped to an average of almost nine years since 2008. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 43 days, after seeing a 12-month high of 48 days in January.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move-up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

Prices are projected to appreciate by 5.0% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Credit: (Keeping Current Matters, Inc.)

Why everyone should consider investing in Real Estate (The Buy and Hold)

When it comes to investing in your future real estate investing has multiple significant advantages over most other investment opportunities. While most investments offer either a consistent return or the potential for equity appreciation. Real estate offers both.

When people think about real estate investing, they often refer to the “Flip”. While flipping, when done right, is a great business, there are many cons of the flip to consider. Such as holding costs, unanticipated expenses, difficulty in selling and losing your profit to taxes.

What I would like to focus on is the “Buy and Hold”. Buy and Hold is a more passive investment strategy in which an investor buys a property and holds it for a long period of time, regardless of the fluctuations in the real estate market. This type of investment offers a positive cash flow from rents that not only offset the expenses and debt, but also provide a passive monthly income.

This provides the investor with a great option for building wealth and generating passive income on a monthly basis (see example below). This process is much slower paced than the flip because the value doesn’t come from the resell. The real estate market has little to no effect on your cash flow and there is less involvement needed to start seeing your return on investment.

Additionally, the amount of people looking for rentals has a positive effect on the buy and hold strategy. The rental market at the Jersey Shore has been red hot for the last few years. Rent prices have been on the rise and show no signs of slowing down any time soon.

Another reason to consider the Buy and Hold is the leverage it provides. For example, if you invest $20,000 into the stock market, and it goes up 10 percent, you’ve made $2000. If you invest that same money into real estate, you can buy a $100,000 property with an $80,000 mortgage. Let’s say it only goes up 5 percent, your profit is $5000. In other words, you’ve made a 25 percent return on your overall investment. The fact
the stock market has a higher return on average is unimportant because your returns with real estate are based on a much higher amount than your principal investment.

To clarify, here is an example for an actual Buy and Hold I closed for an investor in June 2017. This was for a 2 bedroom 1 bath condo located in Brick that was completely turn-key.

Asking Price: $123,000
Purchase Price: $117,000
Money down: $23,400 (20%)
Amount Financed: 93,600 over 30 Years
Interest Rate: 4%
Monthly Mortgage $446
Taxes: 3,006 per year or $250.50 per month.
HOA Monthly Fee: $230
Home Owners Insurance: $500 per year or $41.66 monthly
Total Monthly Investment: $969.03
Annually Rented: $1550 per month.
Positive Cash Flow Monthly: $580.97
Positive Cash Flow Yearly: $6,971.64

With the above in mind, making a Buy and Hold type of investment is a beneficial way to building passive monthly income, as well as, your long term net worth.

If you are interested in learning more about investing, please feel free to contact me at or 732 685 7746.

14,904 Homes Sold Yesterday… Did Yours?

14,904 Homes Sold Yesterday… Did Yours? | MyKCM

There are some homeowners who are patiently waiting to get the price they hoped for when they originally listed their houses for sale. Something these homeowners might want to take into consideration is the fact that if their homes haven’t sold yet, maybe they’re not priced properly.

After all, 14,904 houses sold yesterday, 14,904 will sell today, and 14,904 will sell tomorrow.


This is the average number of homes that sell each and every day in this country, according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales are at an annual rate of 5.44 million. Divide that number by 365 (days in a year) and we can see that, on average, over 14,904 homes sell every day.

The report from NAR also revealed that there is currently only a 4.2-month supply of inventory available for sale (6-months inventory is considered ‘historically normal’).

This means that there are not enough homes available for sale to satisfy all of the buyers who currently are out in the market in record numbers.

Bottom Line

We realize that you want to get the fair market value for your home. However, if it hasn’t sold in today’s active real estate market, perhaps you should reconsider your current asking price.


Credit: (Keeping Current Matter’s, Inc.)