6 Features of a Kitchen Remodel That Are a Waste of Money

Kitchen remodels are always popular. The pandemic has increased home improvement projects even more as people embrace the idea of staying home more. While it’s easy to find inspiration for these kitchen remodels, there are great ways to save money and still create a beautiful, welcoming space. 6 Kitchen Remodel Features That Are a Waste of Money

1. Expensive Backsplashes – Backsplashes can make a huge visual impact, but more expensive isn’t necessarily better. There are many cost-effective materials that mimic more expensive quartz, marble, and glass.

2. Designer Appliances – Designer labels look great on shoes and purses but look for style and function for new appliances and forget the designer brands that can cost twice as much for the same look.

3. Trendy Hardware – Hardware is one of the least expensive ways to update a kitchen, but there is still a cost. Balance personal style with price and avoid fad fixtures that will need to be replaced soon.

4. High-Tech Gadgets – Tech is fun, but will you really use your refrigerator to build a shopping list or turn on your oven from the beach? Most likely, tech gadgets in the kitchen will go to waste.

5. Moving Electrical/Plumbing – When possible, work within the current layout of electrical and plumbing access. Relocating these sources is expensive and difficult.

6. Open Shelving – Displaying beautiful plates and glassware may be appealing but consider the upkeep to maintain this look. You may end up adding closed cabinets anyway for more money after the remodel.

A kitchen remodel is exciting but expensive and time consuming. Fortunately, there are ways to lower the cost and still have the fresh, beautiful kitchen you’ll want to spend time in.

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.

Two Ways Homebuyers Can Win in Today’s Market

It’s no secret that many prospective homebuyers are finding the current real estate market challenging. One of the more unexpected consequences of the Covid pandemic was the hyper-focus on one’s home. This has resulted in a robust market where sellers are seeing advancing home sales prices and multiple offers.

While competition is fierce, clearly for sellers to sell, they need buyers. If your goal is to find a new home this year, there are a couple ways you can maximize your ability to have your offer accepted.

Two Ways Homebuyers Can Win in Today’s Market

1. Act Early - There are a couple reasons why home buyers should start early this year. With rising inflation, interest rates are likely to rise this year. While conventional wisdom may suggest lower real estate prices with an increase in mortgage rates, this is a gamble. Lower interest rates can not only save homeowners thousands of dollars over a 30-year term, but also provides better buying power with lenders, providing more choices.

2. Buy Now and Move Later - The rapid pace of the current market affects not only buyers but sellers as well. In a typical market, sellers often have weeks or months to find their replacement property. Buyers can sweeten their offer by asking about the sellers needs and allowing them extra time to move, offering to close quickly but renting to the sellers for 2-3 months to allow them time to find their new home. The bottom line is that home loan rates and home prices will likely continue to advance throughout 2022. Potential homebuyers who move quickly can maximize their buying power and ability to win the home.

Landlord Deductions from Security Deposits

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A rental deposit against damage is a standard part of all housing rental agreements. The purpose of the security deposit is to protect the landlord from loss in the event the tenant does not take proper care of the property. Most renters don’t even think about it when they sign a new lease, assuming they will get their entire deposit back when they move out. So, it often comes as a surprise when the refund amount is lower than they paid when they signed the agreement. Many renters are surprised to find out what the landlord can deduct from their deposit.

Here are some common items that the landlord can charge to renters when they leave:

• Non-Payment of Rent – This should seem obvious; if the tenant leaves before the lease is up or simply owes back rent, the landlord can deduct or keep the deposit to compensate.

• Unpaid Utilities – Utility companies will hold the landlord responsible for unpaid bills, so if the water or electric bill has been unpaid, they will deduct this from the security deposit.

• Unusual or Excessive Cleaning – While normal wear and tear are not deductible, excessive cleaning can be charged to the renter.

• Damage – This also should be obvious. This was the main purpose of the deposit.

• Trash and Other Items Left Behind – Renters should think twice about leaving that old patio furniture behind. Any cost to remove and dispose of anything left in the property can be charged against the deposit.

Finally, breaking the lease for any reason could put your deposit at risk. Renters need to educate themselves about the risks to their deposit and read the lease carefully for any specific terms included by the landlord. This can help renters avoid the shock of a smaller-than-expected refund check.

Can You Sell an Outdated House?

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It seems that everywhere you turn there are companies who advertise buying ugly houses. These messages offer to quickly buy any house, regardless of the condition. The problem is that their offers are often significantly below market value. If you’re a seller whose home needs some attention, you might think these companies are your only option. Some of the offers sound attractive; quick sale, all cash, no commissions, and no fees. But before you do anything, it’s worth your time to call a local real estate agent for a second opinion.

3 Reasons to Call a Real Estate Agent Now

1. Free Advice – The real estate agent will not charge you anything to simply come look at your home. 2. Your House Might Not Be that Ugly – You may be surprised to find that your home is quite marketable. A few years ago, a 1950s mid-century modern home would have been considered a tear-down. Now, these ranch homes command top dollar and are in very short supply.

3. A Path Forward – If your home does have some issues, the agent can offer some ideas about moving forward. They can suggest local contractors provide repair/upgrade services or market to investors that might still offer significantly higher prices than the quick-sale guys.

Even outdated houses sell. We are in a seller’s market in almost every part of the country. Selling your home has a large financial impact on you and your family. Don’t make assumptions about value, reach out to a real estate agent, and make sure you understand all your options so you can get the best offer possible.

"Land of the flee"

Have you heard grumblings from friends or family considering moving out of California lately? With the Governors COVID orders, more and more Californians’ are considering relocating for more space and more commonly to avoid another state income tax increase. According to FORBES California legislators are proposing a 0.4% wealth tax, plus a 16.8% Income Tax Rate.

Last month, we heard comments from Elon Musk, of Tesla moving the Tesla headquarters to Austin, TX. Meanwhile, the Palo Alto headquarters remains opens, we will see if the move actually takes place now that the authorities have given Tesla authorization to resume business in California.

MITdeveloped a living wage calculator to estimate the cost of living in your community or region based on typical expenses. The tool helps individuals, communities, and employers determine a local wage rate that allows residents to meet minimum standards of living.” Reflecting that the Golden State remains to be one of the highest cost of living states in the United States.

If the proposed income tax rate does increase, we can expect a surge of Californians to move. If you or someone you know is considering relocating, please refer them to The OC Nest for guidance through this timely process.

Thankful Thursday

When I first started my business, I thought the best part would be setting my own hours. But today, it goes much deeper. My favorite thing about being a Real Estate Broker is that I get to help my friends achieve their personal homeownership goals. However, this time was even more special for me because my client is one of my dearest friends and also happens to be my accountability partner. I have so much gratitude for this amazing family, and it brings me so much joy to be apart of their journey. I wish them many years of love & laughter in their beautiful new home! THIS is why I love what I do.

Should buyers wait for another 2008 recession to buy?

The Orange County Real Estate market has softened and sales volumes are stagnant.  According to the OC Register, CoreLogic homebuying stats show 2019’s first six months were Orange County’s slowest-selling first half in over 8 years, since just after the Great Recession ended.  Quarter 2 reflects a 13% drop in home sales from 2018.  Many expect that Quarter 3 will show an even larger drop.   This indicates that home prices are high and due for a correction, which means opportunity is on the horizon.

A component of this slowdown is the trade war between the United States and China as new tariffs lead businesses to scale back on investing and hiring. See Trump’s China tariffs are already hitting the housing industry. Furthermore, Chinese cash that previously flowed into Southern California’s economy, driving up real estate, could dry up.   

Although the nature of real estate is cyclical and we may incur a standard recession, there is good news for buyers.   Economists have stated that even if there is another recession, the housing marketing will not bring about housing bargains like in 2008.  Specifically, “The 2008 recession didn’t cause the housing market to go into freefall. The housing market going into freefall caused the recession.” 

It would be a fairly standard recession that has nothing to do with mortgages or the housing market, and its severity is not expected to rival the one in 2008. An upcoming recession would also, encounter a housing market that’s almost the inverse of what it was in 2008: tight mortgage credit instead of loose mortgage credit, housing supply shortage instead of a housing surplus.

Also, keep in mind historic precedent: As far as home prices dropping in the wake of a recession, 2008 is the exception to the rule. During two mild recessions in the early 1980s, for example, home prices actually increased, just as they did in the early 2000s after the dot-com bust. Home prices are less responsive to recessions because housing is an absolute need, and because buyers tend to come from better financial situations that aren’t as damaged by a recession.

The 2008 Great Recession hit the housing market due to mortgage lenders issuing bad loans that were projected to fail and did.  Since then, lending guidelines have tightened up, consumers' best interest is standard practice and integrity is the name of the game. Therefore, waiting for prices to drop to 2008 prices is highly unlikely. 

It has been a buyer’s market in 2019, and we will continue to see a buyer’s market moving forward in 2019 through 2020

Thankful Thursday

This kind & loving couple had to make room for the new addition to their family… so we worked together to sell their house and find them a new “NEST” for them to call home. With lots of trust and communication we were able to accomplish both! I’m so honored to be their Realtor. They are such amazing people and I know this house is where dreams came true for a loving and deserving family. Congratulations on everything!!

Thankful Thursday

Having young kids AND having to sell your house can be super stressful, but with good communication and teamwork it doesn’t have to be. The OC Nest is thankful to have such wonderful clients to partner with, so together we can alleviate unnecessary stress and focus on the goal of getting the most money off the table for our Sellers!

When experience matters...

Sometimes homebuyers need to sell first. In these circumstances it is important that you work with someone that is experienced to handle coordinating concurrent closings. In this case, we sold their home in 4 days $16,000 above list price and found them a new home, and closed concurrently $15,000 under list price.

Sell & Buy SMART with The OC Nest.

Tuesday Trends

This weekend Fall arrives. How will you greet the season?

Just Listed ...73 Ashdale Irvine

Premier corner lot location boasting 4 spacious bedrooms (optional den/office), 4 bath, conservatory, tech loft and tons of stylish upgrades throughout offering comfortable living space for everyone making this model-like home highly desirable. Conveniently located nearby shopping, recreation, community amenities and award winning schools within walking distance. This pristine home is a rare opportunity. Bring your luck Buyers! HURRY this won't last!

Thankful Thursday

When we first developed this business model, this was the outcome we had in mind and to see it come to fruition for such a loving family, really warms my heart. We are so happy that The OC Nest was able to help and be apart of something so special as purchasing your first family home! Congratulations and thank you!

Monday's Market

Check out some helpful tips for new homeowners

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