Home Search Frustration? How to Refocus and Keep Going

The best part of buying a new home is going out and touring homes. This is especially true for first-time home buyers. As time goes on, however, it can be frustrating when each home falls short of expectations. While it’s important to be realistic about what is available and affordable, there can be a temptation to settle when the right homes don't pop up quickly.

When this happens, it’s important to take a step back and reevaluate the criteria. Often buyers head out without a solid list of “must-have” and “like-to-have” features in mind. If finding the right home is becoming difficult, then this is the time to create or review these items. Consider lifestyle as well as willingness to renovate or remodel. Is it important the home is turn-key on day one, or is there a willingness and ability to make changes after the sale?

Focus on the “must-have” list first. There could be a beautiful chef’s kitchen on the “like-to-have” but if 4 bedrooms are critical for the size of the family, the larger kitchen will not compensate for long. That said, if the hope is to find a home with a pool, is there room to add the pool later?

Finding the right home is often a matter of timing. Patience is the best advice. With the start of the new year, new listings are hitting the market every day. The perfect home may not have been listed yet

Should You Repair or Replace a Roof?

One of the most important elements of any home is the roof. The roof is the first line of defense in protecting the home from weather-related issues, such as wind, fire, and rain. Over time, the constant abuse can take its toll, and your roof will require some attention. But how do you know if you should replace it or just repair it? There are a few things to consider before making the decision.

The Age of the Roof – Most roofs come with a 10-year warranty and are expected to last for anywhere from 20-25 years. Some tile roofs should last even longer with some simple maintenance for the under sheathing

Extent of the Damage – Sometimes the extent of the damage is great, such as when there has been a large storm. Other times the original roof was not installed properly or has structural issues, causing widespread damage

Cost – You may find when comparing the cost of the repairs to the expense of a new root, that the new roof is simply a better value. Always get estimates for both.

Insurance - Insurance companies view an older or deteriorated roof as a liability. In their eyes, it's more likely to leak, collapse, or suffer other types of damage, which means they're more likely to have to pay out a claim. Because of this, some insurers require roofs to be under a certain age or in good condition as a condition for providing coverage.

Personal Considerations – Are you planning to stay in the home for a long time? In this case, replacement now will be more economical than replacing later when costs have increased.

Finally, consult a few professionals. Discuss the issues for both replacement and repair with a few trusted roofing specialists and your insurance agent before making the final decision.

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.

Solar Rings – Cheap and Eco-Friendly Pool Heating

Everyone is looking for ways to save on energy costs. Many people have had to change the way they behave – larger laundry loads, fewer lights in the evening, fans vs air conditioning – and even more have looked to alternative options, such as solar. These methods are not always easy or inexpensive, at least not up front. The great news is that there is an inexpensive and eco-friendly way to heat your pool this summer and save hundreds of dollars in the process by using solar pool rings.

Solar pool rings are floating devices that contain UV-resistant vinyl material that traps the heat to warm the pool without using the heater. The rings are made of 2 layers. The top layer guides the sun to the lower layer which converts the rays to heat. Not only do these rings effectively trap and disperse heat to the water, but they also reduce evaporation, saving money on water bills.

Solar pool rings can also be effective as barriers against backyard debris, which can throw the chemical balance off. Solar pool rings typically come in sets of 6 and most pools can be covered for less than about $400. They are simple to inflate/deflate for storage and are suitable for all pool types. While solar rings will never heat a pool as quickly as a pool heater, with regular use and plenty of sunshine, these devices save money and extend the pool season in most climates.

“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.

Basics of a Successful 1031 Exchange

A 1031 Exchange is a potential option for investors who may be interested in deferring taxes when selling an investment property. By reinvesting the proceeds into another investment property, investors have the opportunity to take advantage of real estate market opportunities without having to pay taxes on their profits immediately. It is important to note, however, that this strategy comes with strict rules that must be followed carefully in order to ensure a successful exchange.

In order to be considered for a 1031 Exchange, the properties involved may need to be investments and not for personal use. Additionally, it is generally required that the properties be like-kind, although they do not have to be exactly identical.

There are many different types of investments that could potentially qualify for a 1031 Exchange. For instance, an investor may choose to exchange a multi-family apartment complex for a shopping center, or a commercial office building for a rental property. Ultimately, the specific circumstances of each investor's situation will determine whether or not a 1031 Exchange is the right choice.

The timing of a 1031 Exchange is crucial, and investors should aim to identify a replacement property within 45 days of selling the original property, with the exchange being completed within 180 days of the sale.

Working with experienced real estate professionals who have knowledge and expertise in 1031 Exchange transactions can be helpful, as mistakes can be costly if the rules are not followed precisely. While a 1031 Exchange can be a valuable strategy for investors, it is important to keep in mind that individual circumstances can vary, and it may be wise to seek personalized tax advice from a Certified Public Accountant (CPA) or tax advisor to determine if this strategy is suitable for a particular investor.

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Is This a “Normal” Real Estate Market Yet?

The events of the last few years disrupted almost every facet of our lives and the real estate market was no exception. Buyers and sellers across the country have experienced a market more volatile and unpredictable and are wondering if we will ever return to normal? Will the tougher economic times ahead help balance the real estate market?

As interest rates rise to slow the economy, the housing market is feeling the shift. Gone are the cheap loans and quick home sales. Today’s buyers have the luxury of being choosier and sellers must again offer their homes at a reasonable price in good condition. While this “feels” like a normal market condition, is it?

The essence of a “normal” real estate market would be predictability and confidence, but we are not seeing this yet. True, the slowing economy and rising interest rates have moved us away from the frantic pace of the past few years, but experts question whether this means a traditional “buyers’ market.”

The pandemic changed the way we work, and where, also. People around the world are moving. With remote working a normal occurrence, people can live anywhere they want. Cities are emptying out and some states are seeing an influx of new residents anxious to avoid high-tax states.

With all these added elements, the real estate market may not return to the “normal”, more predictable patterns we’re accustomed to for years, maybe never. For consumers, the most important thing is to make the right decision for their families. There are opportunities in every market, even if it doesn’t feel “normal.”

5 Modern Details to Update Your Traditional Living Room

Here are 5 cool modern accents you can use to update your living room this weekend.

1. Hyperrealism Art – This art form mimics traditional realistic photography or art, but is designed to evoke an emotion rather than just recreate the scene. Emotional pieces of any kind provide a unique focus to the room.

2. Modern Accent Chair – An accent piece of furniture, such as a chair or table, can immediately add depth to the room. It can be a unique shape or texture; anything that breaks with the overall style of the room.

3. Modern Art Décor – Pillows and vases are a simple way to update a room. Consider adding a low sleek vase for a single rose or perhaps a knot-shaped pillow on the floor by the fireplace.

4. Curves – Soft curved lines are gaining popularity. Gone are the sleek, harsh lines of the past few years. Add a simple round mirror to a corner wall to not only add softness, but a mirror expands the area and reflects light, brightening the room.

5. Extra-Large Lighting – Design magazines are featuring giant, oversized paper lanterns. These can be colorful and boho or soft colored and subtle, but a fun and inexpensive way to add a quick update to a traditional living area.

Whatever you decide, there are endless ways to create a more eclectic living room while giving your home a boost this season.

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.

Overall Market Update – 5 Realities for Sellers Now

Over the past few years, most of the US has been in a strong seller’s market. Historically low interest rates coupled with rising incomes resulted in buyers who were ready and able to buy a new home. It was a crazy time when sellers needed to do little more than put a sign in the yard to attract multiple offers.

However, the post-Covid housing market is quite different. The uncertainty in the economy has slowed the pace and rising interest rates have caused buyers to reconsider their purchase, and the amount they are willing to pay. As a result, sellers must go back to the tried-and-true methods of selling a home, debunking the myths of the past few years. 5 “New” Realities for Sellers

1. Price the Home Realistically –Now sellers must be more careful and price the home realistically to avoid losing the precious early days of a listing when buyer’s interest is highest.

2. Make Repairs – Buyers have more choices now and they will be more careful about buying a home that needs a lot of work.

3. Consider Making Concessions – Buyers often ask for reasonable concessions; sellers should weigh the offer before rejecting.

4. Staging is Back – Make sure the home is show-ready and sellers may consider some simple staging to make the home more appealing to buyers.

5. Be Prepared to Wait – The pace has slowed. In a “normal” market, most homes take 30-45 days to enter escrow.

Finally, sellers should pay attention to their local market and determine the right time to list. Balance has returned to the housing market.

Should I Move For My Job?

The question of moving for a new job is not uncommon. In the past few years, more and more companies are moving their entire operations out of high-tax states to those more business-friendly. Possible work-from-home options further complicate the decision to move with your company. So, should you move when your company does?

Things to Consider Before You Move for Your Company

· Career Growth – One of the biggest reasons to stay with your job through a move is career growth and advancement. Speak with your manager or HR professional about what kind of career path is available before you decide. · Better Location – Companies moving out-of-state often move to a more desirable location. If the new area appeals to you, then using a corporate relocation package can be a cost-effective way to move to a better location.

· Personal Relationships – Moving away from family and friends may be too high a price to pay to stay with your company. Aging parents or the school your children enjoy may encourage you to stay put.

· Remote Working Option – If you do not want to move, ask if a work-from-home situation is available. If so, understand the impact it may have on your career. One big advantage a move like this has is you already know the company, the employees, and the corporate culture.

Consider all the options available and you’ll be able to make the best decision for you and your family

6 DIY Home Projects That Could Kill Your Home Value

Weekend TV lineups are filled with Do-It-Yourself home improvement programs. One home inspector used to call the results “six-pack projects.” While not all DIY projects end in disaster, some projects can harm home sales because buyers see these “improvements” as changes they will need to make once they buy the house. If you are planning to sell soon, it’s important to realize that potential buyers may not be as impressed with your handiwork as you are.

6 DIY Projects that Can Kill Your Home Value

1. Garage Conversion – Homebuyers love extra square footage, but they don’t want it in the garage. Most buyers will plan to “unconvert” a game room back to space for their cars or storage.

2. New Doors – New doors can add beauty to a room, but if they are not mounted properly, they land on a new buyer’s list of things to fix.

3. Uneven Hardware – If you are trying to update cabinets with new hardware, make sure they are level and line up evenly.

4. Crown Molding – Seems like an easy upgrade but adding elegant crown molding is very difficult and ends up looking sloppy.

5. Painting to Hide Problems – Cracks, gaps, and surface defects only look worse when covered with fresh paint.

6. Kitchen Cabinets – Old, worn cabinets should be replaced if possible. As with the walls, a fresh coat of paint only accentuates the dated look.

Every seller knows they need to freshen their home and add curb appeal to list their home. Before launching into a frenzied weekend of DIY projects, speak to a professional agent or stager and make sure you don’t make things worse in the eyes of your potential buyers

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.

Homeownership Is A Great Hedge Against Inflation

Over the past couple of months, the news of rising inflation is fueling concern across the country. Currently, inflation is at a 40-year high. This is impacting household budgets the most as families try to make ends meet with less buying power. For potential home buyers, rising interest rates may cause worry that you will not be able to afford the home you want.

While these are all valid concerns, for those who are still able to finance a home, homeownership is one of the best hedges against inflation and may be worth stretching your budget to do.

The biggest advantage of owning a home in an inflationary period is a fixed-rate mortgage stabilizes your largest household expense. Most people budget 25-45% of their monthly income for housing. As costs continue to rise, rental rates will rise right along with them. These costs can far outpace salaries and increase the burden on families.

The second advantage is that home values historically outperform other assets in appreciation. Owning a home builds equity for the future that is based on a tangible asset. Even if the home loses value short-term, some studies show that over 7-years, homeowners should gain more equity than other investments.

The bottom line is that if you’ve been thinking about buying a home this year, it makes sense to act, even if interest rates are rising. This allows you to stabilize your monthly housing expense while potentially building equity for the future

The Benefits of Owning a Second Home

As the world emerges from the pandemic era and begins to look for a new normal, we’ve all changed the way we look at homeownership and lifestyle. More and more, families are forgoing exotic vacations and using the savings to enhance their home for staycations. In addition to the home improvement boom, the second home market has also exploded. Owning a second home was once a privilege for the rich and famous, but now even those with a modest income can purchase a second home.

There are some great benefits to owning a second home. The first is enjoyment. Many people buy a second home to get a change of scenery. With more companies offering a work-from-home option, spending winter in a warmer climate has become feasible for the average person.

There are financial advantages to buying a vacation home. A second home can help you save money on your taxes. The mortgage and property taxes of a second home can be deducted from your income in the same way a primary home is. The property can also be rented out while not in use to provide extra income or pay for the costs of the home.

Owning a second home can enhance the lifestyle of the family. Building equity in two properties will build wealth more quickly while providing an alternate location for work or fun.

What is the most important aspect of listing a home for sale?

An unexpected byproduct of the pandemic has been a booming housing market. As Covid-19 hit the country, the housing supply was already low, and the lockdown depressed the volume even more. As more homebuyers began looking for new homes, fueled by the ability to work-from-home and low interest rates, sellers have been experiencing a strong seller’s market.

Interest rates are starting to rise, and the higher home prices have discouraged potential buyers from purchasing. So, what does this mean for a seller? Amidst concern over the slowing market, sellers already in the market or considering listing their home should plan for a potential slowdown. No one likes to leave money on the table, but it’s more important than ever to have a real conversation about list price with a professional real estate agent. Whereas just a few months ago, a new home would sell the first weekend for an over-asking price, new listings should now consider that it could take longer. Listing the property slightly below what might have been appropriate last spring, could help generate quick interest and result in a contract.

Pricing strategy is the single most important aspect of listing a home for sale. Price dictates how quickly a home attracts attention and offers. If the market is showing signs of slowing, savvy buyers will wait. Sellers need to consider their listing price carefully to avoid price reductions later for a home that is sitting on the market.

Can an Expensive Home Still be Affordable?

Real estate prices across the country have increased dramatically in the past year. With increases in the 10-12% range, many potential homebuyers have given up and decided that homes are just too expensive to consider. While homes have become more expensive, it does not mean they are unaffordable.

Would you believe that we are experiencing a historically favorable market for buyers when it comes to affordability? Why? This is because affordability involves more than just the purchase price of the home. When considering whether you can afford a home, you must include wage growth and interest rates.

Interest rates are among the lowest we’ve seen in decades. In addition, wages are increasing at a staggering 7% rate year-over-year. For example, a median household income of $68,000/year with a 7% wage growth, will see an extra $400/month.

The median home price is about $325,000. If we add a 10% growth factor to this, that same home would sell for $357,500. At a 3.5% interest rate, the monthly payment would increase from $1313/month to $1444/month, an increase of only $131/month. In terms of affordability, today’s market offers homebuyers more for their money.

Many homebuyers indeed have sticker shock; homes are getting more expensive. But for many homebuyers, other economic factors combine to make homes more affordable than ever before.

Stay Focused on Your Goal

Buying or selling a home can be stressful, even in normal times. Right now, when the housing market is moving at a frenetic pace, both buyers and sellers are making quick decisions and are feeling extreme pressure. As the tension rises, it can be easy to overlook the end goal; right-sized home, relocation, dream home, etc. Try not to lose focus!

Buyer Challenges

Facing a very tight inventory of available properties, buyers have limited time to arrange to tour homes and knowing they must make a quick decision once they have. Buyers do not have the luxury of a second look or hesitation and often are competing against multiple offers, adding to the pressure.

Seller Challenges

Sellers are also feeling the challenge of the frantic pace. While it is nice to have multiple offers from which to choose, the fact that the offers are at times being made sight-unseen means that some of the offers may not be the buyer’s first choice and they could lose a “real” offer by choosing to work with the wrong one. In addition, if the seller intends to buy another home, then they will be in the same position as the buyers once they enter that side of the competitive market. The bottom line in each case, however, is to stay focused on the end goal. Why are you looking to buy or sell? Working with your agent, and relying on their experience, keep your eye on the prize and recognize that the goal will be worth the effort.

Don't Get Represented by a “Yes-Agent”!

We all know the type. The person who just says “yes” to anything, never challenging or questioning an opinion or strategy. These people-pleasers agree with anything suggested; while they may be nice friends, in real estate a yes-man or yes-woman can actually cost you money. Often a lot of money. No one likes to leave money on the table, but having an agent who doesn’t challenge unrealistic expectations is not serving the client. So, how can you spot these yes-agents? These yes-agents can take many forms. On the seller side, they could be the agent that lists a home at an unrealistic price. Well-priced homes are selling quickly, but that does not mean that a seller can add 10% or more to recent sales and expect to sell the home. Over-pricing a home can cost precious time as potential buyers forgo viewing the property in favor of well-priced options. As the home lingers on the market, the seller must eventually lower their price to market value. Buyers often assume the seller is desperate to sell and offer lower prices than they might have at the beginning of the listing. Buyers represented by a yes-agent could find themselves writing unrealistic offers as well. There is danger in writing a low-ball offer just to “see if it sticks.” The yes agent might be willing to send over the offer, but the seller is just as likely to assume the buyer isn’t serious and move to more realistic offers. The yes-agent just cost the buyer the home. Spotting a yes-agent, and avoiding them, can save real estate clients time and money, and ensure they achieve their real estate goals.