10 Questions You Need to Ask Your Contractor Before You Hire Them

Hiring the right contractor can mean the difference between a successful remodeling project and a nightmare. The contractor is responsible for hiring the best tradesmen, budgeting, ordering raw materials, timing, and much more.

Before you meet with a contractor, it’s important to prepare. Not only should you be clear about the scope and goals for the project, but you also need to have questions about their business and these 10 questions can help you ensure you are hiring the best person for your needs.

1. Are you licensed and bonded? Can you provide information about your insurance coverages and exclusions?

2. What kind of project management system do you use? What is your communication cadence with your team and with me?

3. What is your policy regarding the cleanliness of the job site? How do you ensure employee safety on the job site?

4. Do you have a portfolio of similar projects and recent work with photos and/or videos?

5. Will you give me some references of recent past clients?

6. Can you provide me with a sample contract in advance for review?

7. How are selections and allowances handled?

8. How are payments handled? Will you provide a payment schedule?

9. What is the estimated time frame for planning, start date, and completion?

10.What penalties will you pay for delays caused by your team? How is fault defined for delays? Is this in the contract?

Remember, a home remodel can cause a great deal of upheaval, weeks or months of workers, delays, and adjustments. While you can’t plan for all contingencies, you can hire the best possible contractor. This puts you in the best position for a successful project.

5 Important Things to Consider Before Buying a Fixer-Upper Home

Purchasing a fixer-upper property can be an exciting and rewarding experience. HGTV is filled with programs of amateurs knocking down walls and tiling bathroom floors. The fact is that this is much harder than it looks and before diving headfirst into this kind of project, it’s critical to consider whether you are prepared for the venture. 5 Important Things to Consider Before Buying a Fixer-Upper Home

1. Financial Planning – The first step in buying a fixer-upper home is to establish a realistic budget. Include the purchase price, repairs costs, and any expected expenses for renovation or restoration. Once you have created a “known” list, then add extra for unexpected issues that will arise.

2. Time and Effort – Renovating a fixer-upper takes time and effort, even if you hire a general contractor to oversee the project. Consider the overall scope of the project and evaluate your skills and level of time commitment.

3. Structural Condition – Before making an offer, thoroughly inspect the property’s structure and foundation. Recognize the impact of any issues uncovered and make sure to budget for the proper corrections.

4. Real Estate Market and Location – Even a beautiful home in a terrible area is a bad investment. Consider such factors as property values, market trends and the potential for future appreciation. Work with a financial planner to make sure the investment fits your long-term goals.

5. Legal Considerations – Before writing the offer, familiarize yourself with local building codes, permit requirements, and zoning regulations. Ensure the changes you anticipate align with local requirements.

Purchasing a fixer-upper home can be a wonderful investment and worthwhile project. By evaluating your budget, time commitment, property condition, and potential appreciation, you can be sure to choose the right situation for your goals and experience.

5 Common Lawn Mistakes

Summer is made for the outdoors. When the weather turns warm, the backyard becomes the central focus for family fun. After a long, cold winter, homeowners around the country turn their attention to their lawn. Yet, these weekend warriors could be sabotaging their lawn by making these 5 common mistakes.

1. Overwatering – Watering is vital for a healthy lawn, but overwatering can prevent that lush green homeowners seek. Instead of frequent light watering, aim for more infrequent waterings for a longer, deeper soak. This allows the moisture to penetrate deep down to the roots.

2. Over mowing – Cutting the grass too short weakens the root. Every type of grass has different requirements, consult a local gardening center to understand the needs of your lawn. Avoid cutting more than a third of the grass blade height in a single mowing session.

3. Ignoring Soil Health – Regular soil care ensures a strong foundation for your lawn. Test for the proper pH level and any nutrient deficiencies. Use fertilizers throughout the growing season and consider an aeration rotation for better water absorption.

4. Neglecting Weed Control – Weeds and other pests can damage lawns quickly and make it difficult to recover. Implement a regular weed and pest control program. Be careful using pesticides around pets and children. Watch that you do not overuse pesticides as that can deprive the lawn of essential nutrients.

5. Forgetting to Feed Properly – In addition to soil health, the lawn itself needs regular feeding. Choose a fertilizer based on the type of grass and environment, then create a regular cadence for use. Ensure a healthy and vibrant lawn all summer long by avoiding a few common mistakes homeowners make each year.

“Date the Rate and Marry the House” – Is This Still a Good Idea?

You’ve heard the old expression, “Date the Rate but Marry the House.” The idea is that you can always refinance the loan, but the right house may not come around again. But with rising interest rates and falling home inventory, many buyers are wondering if this mantra still rings true. Should you marry the house at whatever interest rate is available?

First, the US lending market has been experiencing record low interest rates. In May of 2000 saw the 30-year fixed rate rise to an average of 8.6% before falling to 6.5% in July of 2008. Historically, any long-term interest rate under 6.5% was considered exceptional. The pattern of rising and falling interest rates has been repeated multiple times in the past 40 years and likely will continue.

While purchasing an unaffordable home with the hope of refinancing quickly into a lower rate is a poor strategy, so is waiting on the home that you like or need if you can manage the payment. A simple truth of the housing market is that as rates increase, home values usually decrease as more buyers are forced from the market. This offers the opportunity for buyers to find a home previously unaffordable. When rates do decline, they can refinance for even more savings.

The concept of “Date the Rate and Marry the House” is not new. Home buyers in this real estate climate need to be more intentional about the home they choose and the costs incurred. Rates will most likely increase before they fall, so weighing the lower home price to the higher interest rate is a personal decision to be taken carefully.

Creative Ideas for Decorating Your Home on a Budget

Decorating your home can be a fun and exciting experience, but it can also be a costly one. However, with a bit of creativity and some DIY skills, you can decorate your home on a budget and still achieve the look you want. In this blog post, we'll share some creative ideas for decorating your home on a budget.

Shop Secondhand One of the easiest ways to decorate your home on a budget is to shop secondhand. You can find some incredible deals on furniture and decor items at thrift stores, garage sales, and online marketplaces. Don't be afraid to haggle a bit to get an even better deal. You may also want to consider attending estate sales, where you can often find unique and high-quality pieces at a fraction of their original cost.

Repurpose and Upcycle Another way to save money on home decor is to repurpose and upcycle items you already own or find secondhand. For example, you can turn an old ladder into a stylish bookshelf or a set of vintage suitcases into unique side tables. With a little creativity and some basic DIY skills, you can transform almost anything into a decorative and functional piece for your home.

Use Wall Art Adding wall art to your home is an easy and affordable way to add some color and personality to your walls. You don't have to spend a lot of money on original artwork; there are plenty of affordable prints, posters, and photographs available online. You can also create your own wall art by framing fabric swatches, postcards, or even pages from old books.

Add Plants Plants are an inexpensive and easy way to bring some life and color into your home. You can find a variety of affordable indoor plants at your local nursery or online. If you're on a really tight budget, you can even propagate plants from cuttings or rescue plants from the clearance section at your local nursery.

Use Textiles Another way to add some color and texture to your home is to use textiles. You can find affordable throw pillows, blankets, and rugs at discount stores, online retailers, and even thrift stores. You can also create your own textiles by sewing your own pillow covers or weaving your own rugs.

Create a Gallery Wall Creating a gallery wall is a fun and easy way to display your favorite photos and artwork. You can use a variety of frames and matting styles to create a cohesive and stylish look. You can also mix in other decorative items, such as mirrors and wall-mounted shelves.

DIY Your Furniture If you're feeling adventurous, you can try your hand at DIY furniture projects. There are plenty of tutorials and plans available online for everything from coffee tables to bed frames. Not only can you save money by making your own furniture, but you can also create unique pieces that reflect your personal style.

In conclusion, decorating your home on a budget is a fun and rewarding experience that doesn't have to break the bank. By shopping secondhand, repurposing and upcycling, using wall art and textiles, adding plants, creating a gallery wall, and DIYing your furniture, you can create a beautiful and personalized home without spending a fortune.

FICO Shock? Your Lender Can Help with a Rapid Rescore

If you’re ready to buy a new home, you know that a good FICO score is critical to the process. Your FICO affects not just your ability to buy a new home, but the interest rate and fees you’ll pay for the new loan. Often, buyers are shocked to realize their credit score is not as high as they thought. Even borrowers who always pay their bills on time can be surprised by a lower FICO score when they apply for a loan. Fortunately, your lender can help with a rapid rescore process.

A rapid rescore is initiated by your lender to boost your FICO in days. Most lenders offer this service and will start by reviewing your credit report with you. Lenders use what’s known as the “middle score,” in determining risk. There are three credit bureaus – Transunion, Equifax, and Experian – and they each calculate your score a little differently. The middle score is used for most home loans as your FICO.

Your lender has a program which can estimate your rescore based on removing false reporting or lowering the balance on a credit card. Even paying off one card can raise your score by 20+ points, enough to make a huge difference in your mortgage interest rate. Once the steps are determined and taken, they then request the credit bureaus to verify the report. This takes a few days. Then the new score will be available to the lender to use for your loan.

If you are considering a new home loan, it’s important to know your credit score ahead of time, when you can still correct mistakes. But, if you are already in the process, your lender may be able to use the rapid rescore process to quickly increase your score and offer you a better loan.

2023 Market Predictions

The real estate industry is in for a wild ride over the next year, according to the Realtor.com's 2023 Housing Market Predications Report. This forecast predicts an overall positive outlook with ongoing growth, but it also acknowledges that several regional markets are more volatile than others and may not experience consistent gains.

The report notes that there are some headwinds to sustained growth, particularly in regions affected by the pandemic and its economic fallout. Tightening credit conditions, an already low inventory of homes for sale, and historically high lumber costs may all put pressure on affordability and slow the housing market's progress.

The good news is that many markets have been resilient and there are signs of optimism as the economy recovers. Realtor.com expects that home prices and sales activity will continue to rise in most markets, albeit at a slower pace. Affordability is projected to remain a challenge for some buyers, however, as potential buyers may have difficulty securing financing.

The report also predicts an increase in rental activity over the next year as renters take advantage of more affordable housing options and the flexibility that comes with not having to commit to a longer-term mortgage agreement. This could spell good news for investors looking to capitalize on these shifting trends.

Overall, the 2023 National Housing Forecast predicts a continued rise in housing prices, though certain regional markets may be more volatile than others. It also forecasts an increase in rental activity as renters take advantage of the flexibility that comes with renting. All of this suggests a vibrant and dynamic real estate market going into 2023, so it’s important to stay informed and up-to-date with the latest trends.

No matter where you are in your real estate journey, it’s important to stay abreast of the fluctuating market conditions. By doing so, you can ensure that you’re making informed decisions and leveraging the best opportunities available to you. With a comprehensive understanding of the current market conditions and the changing trends, you can make sure that you’re making the most of your investments and positioning yourself for success.

6 Factors That Could Damage Your Credit Score

Having good credit is essential for a number of aspects of your life, ranging from the interest rate on a car loan or credit card to background checks for employment. Poor credit can be incredibly expensive, costing you thousands of dollars in higher interest rates over the course of a home loan. Fortunately, with proper care and attention paid to your finances, it is possible to maintain a good credit rating.

Here are six factors that could damage your credit score:

1. Not paying your bills on time - Bills not paid within 30 days can be reported to the credit bureaus.

2. Utilizing all of your available credit on credit cards - It is important to not max out your credit cards without a plan to pay them off.

3. Not having a diverse mix of credit - Having different types of credit, such as car loans and revolving credit, could help improve your score.

4. Applying for too much credit - Multiple applications for credit cards in a short period of time can be a bad sign.

5. Not using credit at all - You must show that you can responsibly use and manage credit in order to maintain a good score. 6. Closing credit cards - Keeping long-term accounts open is important, as closing them removes the positive history from your report.

Good credit is especially essential when searching for a new home or home loan. Having a good credit score can make the difference between having your loan accepted and being declined. Poor credit is preventable if you pay attention to the above mentioned criteria, so be sure to stay on top of your finances to ensure success.

Ceiling Design Ideas that Add Impact

For most people, the only effort they place into the ceiling design is removing the old popcorn treatment. While this is certainly an important first step, there are many ways to use the ceiling to add interest and impact to any room.

Considered the “fifth wall” by designers, ceiling design changes can be either subtle or dramatic. Browse through any home décor magazine and notice the ceiling treatments. Often, they feature bold colors or textures that go somewhat unnoticed by the viewer. Bedrooms, living rooms, and even bathrooms are prime targets for a makeover. Here are 5 great options to try out in your home.

1. Bold Color – Contrary to popular opinion, a dark or strong color on the ceiling does not make the room look smaller. In fact, the use of a color on the ceiling invites the eye to move around the room and creates another interesting space.

2. Brighten Monotone Rooms – If you are planning to keep the room monotone, with soft whites or beiges, add more white tone to the ceiling to add some depth to the room.

3. Molding – Add an interesting molding to the ceiling. You can create an elegant surrounding with a chandelier, for example.

4. Add Some Shine – Contrast a matte wall with a high-gloss ceiling in bold color. Perfect to brighten any room.

5. Metallic Options – You’ve seen the pressed metal ceilings in old bars or restaurants, but there are also more subtle modern treatments that bring an element of industrial design to a space. There are so many ways to create a more interesting design story by using the ceiling.

There is no reason not to try something dramatic that can give any room a fresh look.

How to Use Comps to Price Your Home Correctly

The most important aspect of listing your home for sales is the asking price. Unlike many other items we purchase, home prices are based on what a willing and able buyer would pay for the property. Sounds complicated, right? This is why real estate agents bring comps ( short for comparable properties) information with them to the discussion. Yet are you using the right comps to successfully sell your home? The idea is to gather information about comparable properties that have sold recently that are similar to your own. The goal is to compare apples to apples. In other words, the properties should be as close to the subject home as possible. This includes things like:

· Location – how far is the property from yours.

· Size – square footage is an important aspect of value.

· Number of bedrooms/bathrooms – even if the square footage is close, the number of bedrooms and bathrooms can have a large effect on price.

· Style, view, street, yard – even the exact same floorplan can have vastly different value based on the street it’s on or the view. Size of the yard and privacy are also critical components of value.

· Amenities – private or community pools and other amenities can affect value as well.

Your agent will bring recent sales for homes that compare to yours. As you look through these listings, you can add or subtract values based on the differences. This is the same process an appraiser will use to approve the loan. While this is more of an art than a science, the right comps can help you properly price your home for a smooth sale.

Can My HOA Make Me Get Rid of My Dog?

Most homebuyers know to review the HOA (Homeowner’s Association) documents provided by the seller during disclosures to ensure the rules will not interfere with their lifestyle. Yet, once they become homeowners, often these same people do not pay attention to bylaw changes over the years. So, when they find themselves in violation of a bylaw, they are caught off guard. When this affects a beloved pet, this can be very upsetting. But can an HOA force a homeowner to get rid of their pet? Often, they can.

An HOA has a duty to create and enforce restrictions to ensure the well-being and safety of the homeowners in the association. If they operate within the guidelines of federal anti-discrimination laws, HOAs have broad latitude to create their bylaws, including the complete restriction on having animals in one’s home or on HOA property.

This is an extreme rule, however. Typically, restrictions include the requirement to keep pets on a leash, to remove pet waste, and to keep pets off association grass or landscaping. Considered “reasonable restrictions,” an HOA may prohibit a specific type of pet, such as a pig or bird. It may also limit the size or breed of a dog.

One exception to any restriction is the ability of an owner to have a service animal. Another situation that may allow a pet in contradiction to a bylaw is a member who has already had a specific animal when the rules changed. In most cases, these animals are allowed to remain.

Most HOA communities welcome pets, but an HOA does have significant power to influence the standard of living within the community. Careful understanding of the HOA and climate of a community will avoid painful issues and ensure a pleasant homeowning experience.

10 Most Common Home Buyer Questions

Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.

1. How do I get started? – The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.

2. How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.

3. What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.

4. How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.

5. What credit score do I need to qualify? – A 620 FICO score or higher is required for most home loan programs. Talk to a lender for other options for lower scores.

6. How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 5% down payment.

7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.

8. What if I change my mind? – Your agent will work with you to build in contingencies for conditions, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.

9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.

10. What’s the best advice for home buyers? – Trust the experts and ask lots of questions. Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help you make the best choice for your needs.

Property Liens That Can Stop The Sale

One of the most common reasons for a home sale to fall through is the presence of property liens. Often the sellers are not even aware they have a lien on their home and the delay caused by having them removed can cause a qualified buyer to look elsewhere.

Along with other pre-listing tasks, such as repairs and curb appeal projects, sellers should order a title search to determine if any liens are on the property. Some liens are expected, such as the mortgage lien which ensures any home loan is paid off at the time of close, but others might come as a surprise. Here are a few liens which can derail your closing.

· Mechanics Lien – A contractor may place a mechanics lien on your home to make sure they are paid after a home project.

· Divorce Lien – Even if you and your spouse have agreed on the sale of the home, the court may need to approve the sale before the lien can be removed.

· Homeowner’s Association – Past due HOA payments and assessments can lead to a lien on the home.

· IRS and Property Taxes - A government legal claim against your property when you neglect or fail to pay a tax debt.

· Judgment Liens - Is a court ruling that gives a creditor the right to take possession of a debtor's real or personal property if the debtor fails to fulfill his or her contractual obligations.

· Credit Card Liens – If you default on a credit card and the issuers get a judgment, they can attach a lien to your property. Liens must be dealt with before a home can change title. Often the lienholder will negotiate the payment, but others will want full payment before releasing the hold. Either way, dealing with liens can take time and money. It’s always best to remove liens before listing your home for sale.

Should I Use My 401k to Buy a Home?

Buying a home can be a financial stretch. With soaring home values and rising interest rates, many potential first time home buyers find saving for a down payment increasingly difficult. For many people, the main source of savings is in the form of a 401k and tapping into this resource for a home purchase is one way to find the down payment necessary to finance a new home; but should you use your 401k to buy a home? Experts are conflicted.

A 401k is a retirement savings plan offered by employers which takes pre-tax earnings and deposits it into an investment account for use in retirement. The money in a 401k account can be accessed by either taking out a loan against the balance or by a straight withdrawal. A withdrawal before the age of 59.5 is also subject to a 10% penalty.

Taking out a loan from a 401k account may be a viable option for potential home buyers. For one thing, a loan from your 401k should not count against your borrowing power. You also don’t need to qualify because you are borrowing from yourself. The amount you can borrow is limited, for example 50% of the balance, and typically must be repaid within 5 years. The other option is a simple withdrawal; the 10% penalty is incurred, but the value is not usually limited.

Saving for a down payment can be challenging. Using your 401k to help may be a great option. Speak with your financial advisor and see if this is the right financial move for you.

Are the bidding wars over?

Let’s face it, it’s fun to have a home listing during a seller’s market. When inventory is tight, even less-than-perfect homes invite the frantic bidding wars seen over the past few years. But as the economy slows down and interest rates increase, sellers are wondering if the bidding wars are over, and what that means for them.

First of all, bidding wars have occurred in every kind of real estate market. Well-positioned homes have always garnered attention and offers. What’s different in a seller’s market is that buyers are so desperate to find a home, that multiple offers seem to be normal on every listing. As the pace slows down, sellers need to adjust their expectations and avoid costly mistakes.

Seller Mistakes to Avoid in a “Normal” Market

· Bad Curb Appeal – Curb Appeal is once again important to making a good impression.

· Delayed Response – Don’t wait to respond to a buyer’s offer because you hope to have a bidding war.

· Unreasonable Demands – Buyers have choices now, be reasonable with the counter and contingencies. · Highest Offer – Don’t assume that the highest offer is the best offer.

· Priced too Low or too High – Price the home correctly. Don’t play games with the price.

Finally, be patient. In a typical market, an average home is on the market 30-45 days. This is a change from the past few years, but a healthy real estate market benefits all parties.