Landis Rentsel Team

Is Buying a Home Together Right for Your Family? Here's How to Think It Through

Wed, 01 Apr 2026 17:16:23 GMT

For a long time, multigenerational living had a reputation problem. It was the option families turned to when something had gone wrong — a job loss, a divorce, a health crisis. Moving back in with your parents, or having your parents move in with you, meant something hadn't worked out.

That story has changed pretty significantly.

Today, families are choosing this arrangement on purpose — not as a fallback, but as a deliberate decision to share costs, stay connected, and build something that actually works for how their lives are structured right now. According to NAR, 14% of buyers recently purchased a multigenerational home, and the year before that hit 17%. [1] These aren't people making the best of a bad situation. They're rethinking what "home" needs to do.

If this is something you're considering — or something a family member has brought up — here's what's worth knowing before you start the search.

Why More Families Are Going This Route

The honest answer is: it's rarely just one thing.

For most families, cost is somewhere in the mix. Buying together means more income earners on the loan, more people splitting the mortgage, and a monthly payment that's easier to justify. But if you talk to families who've actually done it, the financial piece rarely tells the whole story.

Caregiving comes up constantly. Nearly half of multigenerational buyers in NAR's research cited caring for or wanting to be near aging parents as a primary reason for the purchase. [1][4] For older millennials in particular, aging-parent health and caretaking responsibilities were a major driver. That's not a trend that's going away — there are now more than 70 million Americans age 65 or older, and the question of how families want to handle that isn't one most people want to outsource entirely. [2]

Remote work has also quietly changed the math. When you're not tethered to an office, living near family becomes less of a sacrifice. You can be close without it costing you professionally, which is a relatively new dynamic. [3]

And then there's the harder-to-quantify stuff — the daily support, the shared routines, the sense that you're not navigating things alone. For families with young kids, having grandparents nearby can be transformative. For families with aging parents, so can having adult children close.

The point is: if you find yourself drawn to this idea, you're in good company, and your reasons are probably more layered than just the numbers.

What to Actually Look for in a Property

This is where a lot of families get tripped up. They find a house they love, start imagining how it could work, and convince themselves the layout is more flexible than it really is. Then six months into living together, they realize what they actually needed was a separate entrance, not just a second bathroom.

The properties that work best for multigenerational living tend to share a few things in common.

They take privacy seriously. Not just in theory, but in the layout. Dual primary suites, separate entrances, a finished basement with its own sitting area, or a detached guest house — these aren't luxury features, they're what make the arrangement actually sustainable. If each household can't fully decompress, host their own guests, and keep their own rhythm, the togetherness part gets old fast. Home design professionals increasingly flag this as the most important feature to get right, and it's easy to see why. [5][6]

They're built — or can be converted — for flexibility. ADUs (accessory dwelling units) have become a serious part of this conversation as more cities loosen zoning restrictions. A detached ADU gives you the ultimate setup: close enough to matter, separate enough to breathe. If an ADU isn't already in place, it's worth asking whether the lot and local zoning would allow for one down the road. [5][6]

They work for the long game. Think about where everyone in the arrangement will be in ten or fifteen years. First-floor suites, wider hallways, zero-step entries, and rooms that can adapt as needs change aren't just nice to have — they're what make a multigenerational home function well over time rather than just right now. [6][7]

The short version: the best multigenerational properties support both togetherness and independence. If a home checks one but not the other, keep looking.

The Conversations Most Families Skip

Here's the part that tends to get glossed over, because the emotional pull of the idea is strong and the practical details feel like they can wait. They can't.

Start with the financial structure early. If multiple people will be on the loan, everyone needs to understand what that actually means. Co-borrowers can combine income and assets to qualify for more — but they also share legal responsibility for the debt and share in whatever equity the home builds. That's meaningfully different from being a co-signer, who carries the liability but doesn't own a piece of the property. Knowing which structure makes sense for your family is a conversation to have with a lender before you fall in love with a house. [8]

Define ownership clearly. There are several ways to structure who owns what — joint tenancy, tenancy in common, shared-equity arrangements — and each one affects what happens if someone wants to sell, refinance, or passes away. Equal contributions don't automatically mean equal ownership makes sense, and unequal contributions don't mean anyone is getting a bad deal. But these things need to be spelled out explicitly, not assumed. [8]

Get it in writing. A verbal agreement between family members feels fine when everyone is on the same page. It gets complicated when circumstances change — and circumstances always change eventually. A written agreement that covers shared expenses, maintenance responsibilities, common areas, and how exits would be handled gives everyone protection and, honestly, usually makes the conversations easier because you've already had them. [9]

Talk through the "what-ifs" before closing. Job relocations, caregiving shifts, a marriage, someone wanting to sell — these aren't worst-case scenarios, they're just life. The way a home is titled can affect everything from Medicaid eligibility to how inheritance plays out. It's worth a conversation with an estate planning attorney or real estate attorney before you close, not after. [9]

This stuff isn't fun to work through. But families who do it upfront tend to have far smoother experiences than those who assume it'll all work itself out.

Is This Actually the Right Move?

That depends on a few honest questions.

Is everyone genuinely choosing this, or is someone going along with it? The families who thrive in multigenerational arrangements almost always went in with shared intent — everyone wanted it, everyone understood what they were agreeing to. That's different from one party tolerating it because the math made sense or because it felt like the easier thing to say yes to.

Are the financial expectations clear and actually fair? Not just the down payment, but ongoing contributions, equity stakes, and what happens if someone needs to exit. These things are much easier to define before the purchase than to renegotiate afterward.

Does everyone have a realistic picture of what shared space feels like day-to-day, long-term? Not on a good weekend when everyone's happy to be together — but on a random Tuesday when someone's had a bad day, the kids are loud, and you just want your house to yourself for an hour.

If the answers to those questions are honest and mostly positive, multigenerational living can be genuinely great. The data backs that up. So do plenty of real families who've made it work.

BOTTOMLINE

Multigenerational living has moved from fallback plan to deliberate strategy for a growing number of families — and it's easy to understand why. The financial upside is real, the caregiving benefits are real, and when it's set up well, the emotional rewards are too.

What makes it work is going in with eyes open: the right property, the right legal structure, and honest conversations before anyone signs anything.

If this is something your family is exploring — or if it's on the horizon and you're not sure where to start — that's exactly the kind of conversation a good agent can help you think through. Getting the strategy right early makes everything that follows a lot smoother.

Reach out anytime — even if you're just starting to think it through.

Sources

1. National Association of REALTORS® — Making Extra Room at the Table: Multi-Generational Homes in the United States
https://www.nar.realtor/blogs/economists-outlook/making-extra-room-at-the-table-multi-generational-homes-in-the-united-states

2. National Association of REALTORS® — The "Silver Tsunami" in Real Estate Is Here: Are You Ready?
https://www.nar.realtor/magazine/real-estate-news/the-silver-tsunami-in-real-estate-is-here-are-you-ready

3. U.S. Census Bureau — New U.S. Census Bureau Data Show Detailed Characteristics of Home-Based Workers
https://www.census.gov/library/stories/2025/01/work-from-home-inequalities.html

4. National Association of REALTORS® — One Big Happy Household: How Families and the Data Are Shaping Multigenerational Living
https://www.nar.realtor/blogs/economists-outlook/one-big-happy-household-how-families-and-the-data-are-shaping-multigenerational-living

5. Better Homes & Gardens — Multigenerational Living Will Define the Future of Home Design, According to Thumbtack and Redfin
https://www.bhg.com/thumbtack-redfin-home-design-report-2026-11869197

6. The House Plan Company — How 2025 Is Redefining Multigenerational Home Design
https://www.thehouseplancompany.com/blog/how-2025-is-redefining-multigenerational-home-design/

7. National Association of REALTORS® — All Under One Roof: Trends in Multigenerational Living
https://www.nar.realtor/magazine/real-estate-news/home-and-design/all-under-one-roof-trends-in-multigenerational-living

8. The Mortgage Reports — How to Buy a House With Your Parents
https://themortgagereports.com/77007/buying-a-home-with-parents-or-child

9. Elder Law Answers — Home Ownership When Parents and Adult Children Live Together
https://www.elderlawanswers.com/what-are-the-house-ownership-options-when-parents-and-adult-children-live-together-14484

What Actually Makes a Listing Stand Out in 2026

Tue, 24 Mar 2026 17:47:42 GMT

The playbook for selling a home has changed fast. Active housing inventory rose more than 16% year-over-year in 2025, and 62% of homebuyers paid below the original list price—the highest share since 2019. The average discount hit 7.9%, the biggest in over a decade.

What does that mean for sellers? The days of putting a home on the MLS, snapping a few photos, and waiting for offers are over. Today's buyers are more informed, more cautious, and more willing to walk away. The listings that win are the ones that eliminate friction at every stage. Here is what that actually looks like.

Know What the 2026 Buyer Is Filtering For

Today's buyer is thinking about what a home will cost them after they buy it. According to the 2026 Design Trends Report, 86% of buyers say flexible layouts help them see past square footage. Dedicated home offices, walk-in pantries, and multipurpose rooms now outweigh raw size. Nearly half of buyers say they will not buy a home that does not feel right the moment they walk in.

Energy efficiency is being evaluated as a financial hedge against utility costs, climate risk, and future insurability. Terms like "zero-energy ready" and "home battery system" are appearing far more frequently in buyer searches. Sellers who position features like updated HVAC systems, new windows, or solar panels as cost-saving assets have a clear advantage.

What does it mean for you?
Win the Screen Before You Win the Showing
The online listing is the first showing. By the time a buyer walks through the front door, they have already decided they are interested—or they have scrolled past.

85% of homebuyers consider listing photos the most critical factor when evaluating a property online. Not the price. Not the description. The photo.

Listings with professional photography receive up to 61% more views and sell 32% faster
Twilight photos used as the primary listing image average 76% more views
Listings with video get 403% more inquiries
Listings with 3D virtual tours sell up to 31% faster and for up to 9% more

These are not small edges—they are the differences that help a listing generate momentum.

What does it mean for you?
Remove Every Reason to Say "No"
In a slower market, uncertainty creates lower offers—or no offers. Every unanswered question is a reason to negotiate down or walk away. The smartest move is to answer the scary questions before they are asked.

That starts with a pre-listing inspection. For $300 to $800, a seller can identify and address issues on their own timeline and terms, before a buyer's inspector turns a minor finding into a deal-killing negotiation. Home inspections are the number one reason deals fall apart today. In mid-2025, 15% of pending sales fell through—above the 12% historical norm—largely because financially stretched buyers will not absorb surprise repair costs.

What does it mean for you?
Price It Right or Pay the Price
Overpriced listings don't just sit longer—they sell for less than if they had been priced correctly from the start. 39% of all listings nationwide had price reductions in 2025. The typical home sold for nearly 4% under its asking price during peak season, the steepest discount in six years.

A listing's visibility and buyer interest peak immediately after launch. Pricing high to see what happens is dangerous:

Every week of inactivity makes the next correction less effective
Multiple small reductions signal desperation and train buyers to wait for the next drop
A single strategic correction, aggressive enough to restart the clock, is almost always more effective

Pricing correctly from day one is not conservative—it is strategic.

What does it mean for you?
The New Definition of a Winning Listing
The 2026 winner is not the cheapest or the biggest. It is the most ready.

The difference between a home that moves and one that sits often comes down to strategy, not the property itself.

What does it mean for you?
We're Here to Guide You
If you are thinking about selling—or if you have a listing that is not performing the way you expected—let's talk. A strategic approach to pricing, presentation, and preparation can make all the difference in today's market.

This content is for informational purposes only and does not constitute professional real estate advice. Market conditions vary by location and individual circumstances. Always consult with a licensed real estate professional before making decisions about buying or selling property.

Sources
HousingWire – The U.S. Housing Market in 2025
Redfin – Homebuyers Are Scoring the Biggest Discounts in 13 Years
Better Homes & Gardens Real Estate – 2026 Design Trends Report
Redfin – Why 15% of Home Sales Are Falling Apart
HomeLight – What Buyers Want in a Home
Zillow 2026 Home Trends Report
PhotoUp – Real Estate Photography Statistics
RubyHome – Real Estate Photography Statistics
Matterport – 3D Tours Study
Matterport – Property Buyers Prefer 3D Tours
NAR Magazine – Pre-Listing Inspections
CubiCasa – Real Estate Listing Trends in 2026
Redfin – Home Sellers Cutting Prices at Record Rate
NAR Magazine – Listing Price Reduction Navigation

You’re Invited to Our Free Community Shredding Event!

Thu, 26 Feb 2026 19:56:29 GMT

At the Vickie Landis Rentsel Team of Keller Williams Realty Group, we’re always looking for small ways to say thank you to our amazing clients and community.

That’s why we’re excited to host a FREE Community Shredding Event this spring!

If you have old tax returns, bank statements, medical paperwork, or other sensitive documents piling up at home, this is the perfect opportunity to safely and securely dispose of them.

⸻

Why Shredding Matters

Identity theft continues to be a growing concern, and one of the simplest ways to protect yourself is by properly destroying confidential documents.

Items like:
• Old tax documents
• Credit card statements
• Bank records
• Medical paperwork
• Pre-approved credit offers
• Anything containing your Social Security number or account information

Shredding these materials helps prevent personal information from falling into the wrong hands.

⸻

Event Details

Date: Saturday, April 11, 2026
Time: 10:00 AM – 12:00 PM
Location: Keller Williams Realty Group Office
431 S. West End Blvd.
Quakertown, PA 18951

Mobile shredding services will be provided on-site by Richter Mobile Shredding, so your documents will be destroyed securely and professionally.

⸻

Important Guidelines

To ensure the event runs smoothly, please note:

✔ PAPER ONLY
✖ No X-rays
✖ No hanging folders
✖ No ring binders
✖ No cardboard
✖ No businesses, please (this event is intended for personal household shredding only)

⸻

This event is simply our way of giving back and helping you protect what matters most. No sales pitch — just a helpful service for our community.

We look forward to seeing you on April 11th!

If you have any questions, feel free to reach out to a member of the Vickie Landis Rentsel Team.

The True Cost of Homeownership: What You Pay Beyond the Mortgage

Mon, 02 Feb 2026 19:27:12 GMT

When most homebuyers calculate whether they can afford a new home, they focus almost exclusively on one number: the monthly mortgage payment. It's the figure lenders qualify them for, the number discussed during showings, and the benchmark used to determine budgets.

The average annual cost of owning and maintaining a single-family home in the U.S., excluding the mortgage itself, is estimated at around $21,400 in 2025—roughly $1,800 per month.¹ When you factor in these national average ownership expenses, a $2,500 monthly mortgage can grow to over $4,000 in total housing costs.

for a mortgage answers one question: "Can a bank trust you with this loan?" It doesn't answer the more important one: "Can you comfortably maintain this lifestyle?"

In today's market, where nearly 45% of homeowners report post-purchase regrets (most commonly because maintenance and hidden costs were higher than expected), understanding the full financial picture before buying has never been more important.²

The Predictable Ongoing Costs

Property Taxes

Property tax bills have been rising sharply nationwide, with the average reaching $4,271 in 2024 and many homeowners seeing increases of 16% or more. ³ Even where tax rates dip slightly, rising home values keep actual bills climbing—creating the irony that a home's appreciation increases annual expenses.

Property taxes aren't truly fixed. Reassessments happen regularly, and as neighborhood values rise, so do tax bills—even when rates stay the same.

Homeowners Insurance

As of December 2025, the average premium for a new policy rose 8.5% year-over-year . ⁴ Climate disasters, higher rebuilding costs, and insurer risk recalibration continue driving these increases, and the trend shows no signs of reversing.

A homeowner could see their monthly payment jump $200-300 in a single year without taking any action themselves—simply because their mortgage servicer adjusted the escrow to cover higher insurance premiums.

HOA Dues

About 40% of homes for sale have HOA fees, with median costs around $125 per month, though single-family homes typically range from $200-$300 monthly.⁵ These fees rarely decrease and often include special assessments that can add thousands in unexpected annual costs.

Utilities

In 2024, energy and utility costs averaged $4,494 annually, with internet and cable adding another $1,515. ¹ Buyers moving from apartments to single-family homes often see these costs double due to increased square footage, outdoor irrigation, and climate control demands.

Routine Maintenance

Beyond emergencies, homes require ongoing care: lawn service, gutter cleaning, pest control, HVAC servicing, and seasonal tasks. These aren't luxuries for many households—they're practical solutions to time constraints and property upkeep. Collectively, these services can add $200-400 monthly to ownership costs.

The Irregular—but Inevitable—Expenses

Major System Replacements

This is where many homeowners get caught off guard. Maintenance and repairs aren't a matter of "if" but "when"—and recent years have made "when" far more expensive.

Home maintenance now averages around $8,800 annually, with first-year homeowners often facing even higher costs. ^1,6 Major repairs aren't cheap:

● HVAC replacement: $5,000-$10,000

● Roof replacement: $8,000-$15,000

● Water heater: $1,200-$2,500

● Foundation repairs: $4,000-$12,000

These aren't possibilities—they're certainties with varying timelines.

Use the inspection as a planning tool. A 15-year-old water heater or aging roof signals $8,000-12,000 in likely expenses within the first few years. That's not a deal-breaker—it's a budget roadmap. Buyers who understand these timelines can plan strategically instead of scrambling when systems fail.

Newer isn't maintenance-free. Newer builds offer a temporary reprieve, but systems still age, warranties expire, and eventually every home requires major capital improvements.

Emergency repairs happen at the worst times. An HVAC failure during a heat wave, a burst pipe in winter, or storm damage to the roof—these scenarios happen when it's least convenient and most expensive. Without liquid reserves, a single emergency can derail finances entirely.

Ownership Costs That Creep Up Over Time

Here's what surprises many first-time buyers: the so-called "fixed costs" of homeownership aren't actually fixed.

While a locked-rate mortgage provides payment stability, the escrowed components—taxes and insurance—can climb significantly year over year due to inflation, climate risk, and local policy changes. A mortgage payment that felt comfortable at closing can feel tight three years later, even without lifestyle changes.

Picture this: a letter arrives saying the monthly payment is increasing $200 because insurance premiums rose and the property was reassessed at a higher value. No move, no refinance, no renovation—yet annual housing costs just jumped $2,400.

The same gradual creep affects utilities, maintenance services, and every other aspect of homeownership. Budgeting for homeownership means expecting these costs to rise 3-5% annually. True stability requires planning for volatility.

Planning Smarter: How Homeowners Can Stay Ahead

The encouraging news: buyer's remorse is largely preventable. The issue isn't buying the wrong house—it's buying without adequate preparation.

Create a Dedicated House Repair Fund

Separate from emergency savings, this fund exists solely for home maintenance and repairs. Treat it like a non-negotiable monthly bill—set up automatic transfers so it happens without thinking about it.

The old rule of saving 1% of your home's value annually? It's outdated. Plan for more—closer to 2-3% of your home's value annually, or whatever amount lets you sleep at night knowing the HVAC won't derail your budget.

Don't Drain Your Savings at Closing

Cash reserves protect against surprises and prevent forced debt when repairs arise. If possible, keep several thousand dollars liquid after closing rather than putting every available dollar into the down payment or upgrades. That breathing room matters more than most buyers realize.

Invest in Preventative Maintenance

Annual HVAC servicing, gutter cleaning, and seasonal inspections catch small problems before they become expensive emergencies. A modest service call that prevents a major system failure is always worthwhile.

Create a seasonal maintenance calendar: HVAC checkups in spring and fall, gutter cleaning before winter, roof inspections after major storms. Consistency prevents costly surprises.

Know Your Home's Systems and Timelines

Understanding when major systems were last replaced helps predict future expenses. A 12-year-old water heater isn't an emergency today, but it signals a likely expense within 2-3 years. Planning beats scrambling.

When Homeownership Still Make Sense

Despite the expenses, homeownership remains one of the most powerful wealth-building tools available to American families—when approached correctly!

Long-Term Equity Building

Mortgage payments build equity with every payment. Unlike rent, ownership creates a forced savings mechanism that compounds over decades. In most markets, homes appreciate over time, multiplying the wealth-building effect.

Stability and Control

Homeowners control their living environment. Want to renovate the kitchen, paint the walls, landscape the yard, or install solar panels? Ownership provides autonomy that renting never will. That control has both lifestyle and financial value.

Predictability vs. Rent Volatility

While ownership costs rise gradually over time, rent increases can be sudden and dramatic—with national rents climbing 31% over the past five year. ⁷ A fixed-rate mortgage provides payment predictability that renting cannot match.

Yes, taxes and insurance increase, but the principal and interest portion—typically 60-70% of the total payment—remains locked. Renters face volatility on 100% of their housing costs.

Lifestyle Benefits

Beyond finances, homeownership offers intangible benefits: deeper community roots, stability for families, space for hobbies, and the pride of building something that's truly yours. These benefits have real value, even if they don't appear on a balance sheet.

The key is ensuring the financial foundation supports the lifestyle, not undermines it.

A Better Way to Think About Affordability

The true measure of affordability isn't what a lender will approve—it's what allows sleeping well at night when the water heater fails or the insurance premium spikes.

The smartest buyers calculate affordability as "mortgage plus carrying costs" from the start, which might narrow the price range slightly but creates breathing room and peace of mind.

Homeownership remains one of the most powerful wealth-building tools available, but only when approached with financial realism rather than maximum leverage. Having an honest conversation about what affordability truly looks like isn't about limiting dreams—it's about making sure those dreams don't become financial nightmares.

Sources:

1. Bankrate: https://www.bankrate.com/home-equity/hidden-costs-of-homeownership-study/

2. Bankrate: https://www.bankrate.com/f/102997/x/c84a6b9359/homeowner-regrets-survey-press-release.pdf

3. Matic: https://matic.com/blog/2026-home-insurance-predictions/

4. NAHB: https://www.nahb.org/blog/2025/12/property-taxes-2024-residential/

5. Realtor.com: https://www.realtor.com/research/homeowners-associations-2024/

6. Inman: https://www.inman.com/2026/01/12/as-home-maintenance-costs-rise-agents-turn-to-tools-that-reduce-buyer-risk/

7. Rentec Direct: https://www.rentecdirect.com/blog/new-data-shows-the-state-of-rent-in-2025-from-rentec-direct/

2026 US Housing Market Forecast: Will the Market Find Its Footing?

Mon, 05 Jan 2026 19:07:38 GMT

Will 2026 be the year buyers stop waiting? Forecasters are split, predicting anywhere from 1.7% ¹ to 14% ² growth in home sales. That 12-point gap reveals the central question facing the housing market: how much will slightly lower mortgage rates and slowly eroding lock-in effects actually unlock pent-up demand?

Nearly every major forecaster agrees the market will be more active than 2025. But beyond that consensus, predictions diverge sharply on pace and scale. The National Association of Realtors (NAR) expects robust 14% sales growth. Realtor.com sees a modest 1.7% bump. Both could be right for different markets and price points.

For anyone planning to buy, sell, or simply understand their home equity position in 2026, these diverging forecasts matter less than the underlying fundamentals. Mortgage rates should settle slightly lower. Inventory will improve modestly. Prices will continue rising, though more slowly than recent years. The market is thawing. More importantly, the housing market appears to be returning to the pace and rhythm of more normal conditions after the artificial volatility of the pandemic era.

The 2025 Context: Why the Market Stayed Frozen

The 2025 housing market disappointed. Mortgage rates remained stubbornly above 6.5%, suppressing demand and keeping transaction volumes near historic lows. ⁸ As of mid-2025, more than 80% of U.S. homeowners hold mortgage rates below 6%, reinforcing the lock-in effect that has kept many would-be sellers on the sidelines.³

Affordability challenges reached acute levels. The typical first-time buyer aged to 40 years old ⁴ , reflecting simple math that monthly payments at elevated rates and prices pushed homeownership out of reach for younger buyers. The market did not crash but did not heal either, with overall transaction volume remaining constrained.

2026 Predictions: Where Forecasters Agree and Disagree

Mortgage Rates: Consensus on Modest Improvement

Forecasters agree broadly on mortgage rate trajectories. Expectations cluster tightly in the 6.0% to 6.4% range, representing modest but meaningful improvement from 2025 levels.

2026 Mortgage Rate Forecasts

This narrow range suggests forecasters see similar Federal Reserve policy paths ahead. While rates in the low 6% range remain elevated by recent standards, they represent improvement that could make a difference for buyers.

The more important question is whether this modest decline triggers meaningful market activity. A drop from 7% to 6.5% means little if buyers continue waiting for 5% or sellers remain locked in at 3%. The National Association of Realtors estimates that a drop to 6% could unlock 5.5 million additional buyers, including 1.6 million renters. ² But the forecasters’ disagreements on sales volume reveal uncertainty about how big an impact lower rates will have.

Existing Home Sales: The Uncertainty Factor

Existing home sales projections for 2026 show far more variation than mortgage rate predictions, reflecting different assumptions about how quickly the market thaws.

2026 Existing Home Sales Forecasts

This wide range from 1.7% to 14% growth reveals genuine uncertainty about buyer and seller behavior. Will homeowners with 3% mortgages finally accept that rates around 6% represent the new baseline? Will life changes like job relocations, family adjustments, or divorces finally outweigh the financial cost of giving up low rates?

The trajectory depends on several key factors working together. The lock-in effect must continue eroding. As long as a significant percentage of homeowners hold mortgages well below current rates, many will choose to stay put, but this effect will continue to decline as more homeowners reach the threshold where life circumstances outweigh rate considerations.

Buyers also need to shift psychologically from waiting for rates to return to the artificial levels of 2020 toward accepting 6% as normal. Many prospective buyers spent the past two years waiting for dramatic rate declines. However, with 6%-7% now normalized and rates expected to drop further next year, buyers may decide to reenter the market.

Additionally, employment and income stability provide the foundation for both buyer confidence and seller flexibility. Job gains and wage growth give more buyers the financial capacity to proceed with purchases despite elevated rates. Several forecasters expect slowing price growth combined with continued income gains to gradually improve affordability in 2026. ¹ Any weakening in employment conditions would likely push sales toward the lower end of forecasts, while sustained strength supports higher volumes.

Even modest changes in interest rates or consumer psychology could swing actual sales significantly within this forecast range. The wide spread reflects genuine uncertainty about these behavioral factors rather than disagreement about underlying economic fundamentals.

Home Prices: Continued Appreciation Expected

All major forecasters predict continued home price appreciation in 2026, though projections cluster in a relatively narrow band between 0.5% and 4% growth.

2026 Home Price Growth Forecasts

*Based on Q2 2025 median price of $410,800

The relatively narrow range of price forecasts—compared with wider variation in sales volume projections—suggests greater agreement on price direction than on transaction activity. While sales volumes remain uncertain, supply-demand fundamentals continue to support prices.

Housing inventory remains below levels associated with a balanced market, reflecting years of underbuilding relative to household formation. These supply constraints continue to support prices even as transaction volumes remain lower.

Existing homeowners are generally in strong financial positions, with substantial equity accumulated in recent years. This limits forced sales and allows many move-up buyers to deploy equity toward down payments, helping sustain prices, particularly in higher-priced segments.

Price growth expectations for 2026 are modest compared with recent years. The projected appreciation reflects a return to more historically typical growth rates rather than the elevated gains seen during the pandemic period.

What This Means for Buyers

For prospective homebuyers, 2026 presents a complex environment requiring careful evaluation of affordability constraints against the reality that waiting may not yield significantly better conditions.

Accepting the New Rate Reality

Mortgage rates are expected to settle in the 6.0% to 6.4% range in 2026, representing modest improvement from 2025 but remaining well above the unusually low levels seen during the pandemic. Rates below 3% were driven by emergency monetary policy and are unlikely to return in the near term. Buyers waiting for a drop to 4% or 5% may need to recalibrate expectations, as current forecasts suggest low-to-mid-6% rates are closer to a new baseline. Planning purchases around these levels provides a more realistic framework, with refinancing remaining an option if rates fall further in later years.

Improved Supply and Buyer Leverage

While housing supply remains below long-term balanced levels, inventory has improved compared with recent years, giving buyers more options and greater flexibility. ¹ Days on market have lengthened, bidding wars are less common, and sellers are generally more open to contingencies, repairs, and concessions. ⁵ Competition persists for well-priced homes in desirable locations—particularly during spring and summer—but overall market conditions are less frenetic than during the pandemic surge.

Pricing and Competition Dynamics

Home prices are still expected to rise modestly, with forecasts ranging from 0.5% to 4% growth nationally. This means waiting may not lead to meaningfully lower prices, even as rates improve slightly. However, slower appreciation reduces urgency and allows buyers to be more selective. Homes priced appropriately should continue to sell, but overpricing carries greater risk as buyers gain more alternatives. The market increasingly rewards patience, preparation, and informed offer strategies rather than speed alone.

First-Time Buyer Challenges

First-time buyers continue to face the steepest hurdles in 2026. The median age of a first-time buyer has risen to 40 years old ⁴ , underscoring how affordability pressures, higher down payment requirements, and elevated mortgage rates have delayed entry into homeownership for many households. Even with modest improvements in rates and inventory, upfront costs and monthly payments remain significant barriers, particularly for buyers without existing equity.

That said, conditions may ease slightly compared with 2025. Slower price growth and incremental rate declines reduce some pressure, while increased inventory offers more choice and less competition than in recent years. Low-down-payment programs, co-buying arrangements with family or friends, and targeting more affordable submarkets can help bridge the gap. While first-time buyers still face meaningful challenges, the 2026 market offers greater flexibility and less urgency than the peak pandemic period, making preparation and strategy more important than speed.

What This Means for Sellers

For homeowners considering a sale in 2026, market conditions remain generally favorable—but seller leverage is no longer uniform. Outcomes increasingly depend on location, price tier, and property condition. Well-priced, move-in-ready homes in desirable areas continue to attract strong interest, while properties that are overpriced or require significant work face longer marketing times and greater buyer resistance.

Evaluating the Mortgage Rate Trade-Off

The lock-in effect continues to influence seller decisions, but the calculation goes beyond comparing a 3% mortgage to a new loan at 6% or higher. Many homeowners now hold substantial equity that can offset higher borrowing costs, particularly for those downsizing, relocating to more affordable markets, or reducing overall housing expenses. Life events—job changes, family needs, or retirement—are increasingly outweighing rate considerations as sellers reassess priorities in a market where rates in the low-to-mid 6% range appear more durable.

Pricing Strategy

Accurate pricing is critical. Overpricing increases the risk of extended days on market, which can stigmatize listings and lead to eventual price reductions. Buyers in 2026 are more patient and better informed, with more alternatives available than in recent years. Sellers should rely on recent comparable sales and current local conditions rather than peak pandemic benchmarks. Homes priced correctly from the outset are more likely to sell efficiently and closer to asking price.

Concessions Are Becoming a Normal Tool

As affordability remains stretched for many buyers, seller concessions are playing a larger role in successful transactions. Closing cost credits, rate buydowns, and repair allowances are increasingly used to bridge gaps without cutting headline prices. These tools allow sellers to remain competitive while helping buyers manage monthly payments and upfront costs. In many markets, concessions are not a sign of weakness but a practical response to current financing realities.

Preparation and Presentation Are Decisive

With inventory higher than in recent years, presentation matters again. Homes in excellent condition command stronger interest and pricing premiums, while properties needing repairs are more likely to linger. Minor improvements—fresh paint, deferred maintenance, professional cleaning, and quality photography—can materially affect outcomes. Pre-listing inspections can also reduce surprises during escrow and improve buyer confidence. In a more balanced market, preparation often determines whether a home sells quickly or requires multiple price adjustments.

What This Means for Renters

For households choosing—or needing—to rent in 2026, the decision remains largely pragmatic. While rent growth has slowed in many markets, homeownership costs remain elevated due to prices and mortgage rates in the low-to-mid 6% range. In much of the country, renting continues to offer lower monthly costs and greater flexibility, particularly for households without substantial savings or with uncertain time horizons.

The rent-versus-buy decision in 2026 depends heavily on location, finances, and length of stay. Modest home price appreciation suggests waiting may not result in lower purchase prices, but renting can still make sense for those prioritizing mobility or avoiding financial overextension. Ownership builds equity and stabilizes long-term housing costs, while renting preserves optionality in a market still adjusting to higher rates.

For renters who aspire to buy, 2026 may be best viewed as a preparation period rather than a holding pattern. Strengthening credit, building savings, reducing debt, and monitoring target markets can materially improve future buying power. For others, continuing to rent remains a rational choice, not a failure to “time the market.” In a market defined by normalization rather than disruption, aligning housing decisions with personal circumstances matters more than forcing a transition to ownership.

Conclusion: A Market in Transition

The 2026 housing market is defined less by dramatic change than by gradual normalization. Mortgage rates are expected to remain in the low-to-mid 6% range, sales activity may improve modestly, and home prices are projected to rise at a slower, more historically typical pace. The volatility of the pandemic era has faded, replaced by a market driven more by income growth, supply constraints, and household needs.

For buyers, sellers, and renters, success in 2026 depends less on timing the market and more on adapting to it. Buyers gain more choice and negotiating room but face ongoing affordability challenges. Sellers still benefit from limited supply, but pricing discipline and preparation matter more. Renters continue to balance flexibility against long-term ownership goals. With rates unlikely to return to pandemic lows and prices expected to hold, the market rewards realistic expectations, financial readiness, and decisions grounded in personal circumstances rather than predictions of dramatic shifts.

References

1. Realtor.com
https://www.realtor.com/news/trends/housing-forecast-2026-mortgage-rates-affordability-improves/

2. NAR Real Estate Forecast Summit
https://www.nar.realtor/events/nar-real-estate-forecast-summit

3. RealtorMag
https://www.realtor.com/news/trends/mortgage-rates-below-6-percent-august-2025/

4. National Association of Realtors (NAR). (2025, November). First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40. https://www.nar.realtor/newsroom/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40

5. Zillow
https://www.zillow.com/research/2026-housing-predictions-35800/

6. MBA
https://www.mba.org/news-and-research/newsroom/news/2025/10/19/mba-forecast--total-single-family-mortgage-originations-to-increase-8-percent-to--2.2-trillion-in-2026

7. FannieMae
https://www.fanniemae.com/media/56451/display

8. NAR
https://www.nar.realtor/sites/default/files/2025-11/ehs-10-2025-summary-2025-11-20.pdf

Planning Your 2026 Real Estate Moves: A Guide to the Best Buying and Selling Seasons

Tue, 02 Dec 2025 22:13:17 GMT

Timing isn’t everything in real estate, but it can mean the difference between saving $20,000 or paying a premium, selling in 30 days or waiting three months, and negotiating from a position of strength or uncertainty.

As we look toward 2026, understanding seasonal patterns has become more critical than ever. With inventory levels normalizing and market conditions continuing to evolve, knowing when to make your move can dramatically impact your outcome. Whether you're a first-time buyer watching every dollar or a seller trying to maximize your profit, the season you choose matters.

The challenge? Not everyone can wait for the "perfect" time. Job relocations happen in January. A growing family needs more space in July. Retirement doesn’t wait for spring. This guide breaks down the pros and cons of each season so you can make the smartest decision within your timeline.

Spring: Peak Selling Season (March-May)

Spring isn’t called peak season by accident. The housing market comes alive with energy that is impossible to ignore. Data shows homes listed in spring sell in as few as 33 days, compared to 49 days in winter. ¹ May also offers the highest seller premium, 13.1% above market value, translating to faster sales and higher returns. ²

Buyer psychology also plays a role. Warmer weather encourages open house attendance, longer daylight allows more viewings, and families aim to move before school starts, creating urgency. Spring blooms and greenery boost curb appeal in ways winter staging cannot match. ³

The Competition Factor

The trade-off is that spring’s advantages come with more competition. Sellers must make their homes stand out, pricing correctly, staging well, and marketing aggressively. Buyers benefit from the largest inventory, with new properties listed weekly, but face higher competition. In May and June, 35% of buyers pay above list price compared to 24% in January, making bidding wars common and increasing pressure to decide quickly. ⁴

Summer: Extended Peak Season (June-August)

As spring transitions to summer, the market maintains its momentum. June often sees the highest sales volume of the year, with more than 16,500 homes selling per day. ¹

The Family Timeline

Summer’s appeal aligns with family schedules, as school breaks let children move without disrupting education. Warm weather and long days make moving easier and provide ample time for viewings. Outdoor spaces like pools, patios, and landscaping are at their best. Higher prices and sales activity reflect the premium buyers pay for peak-season convenience.

Late Summer Shifts

By August, changes appear. Unsold spring or early summer listings may become “stale,” and buyers begin settling as school starts. Competition eases slightly, though prices stay high, making it a transition month where patient buyers can benefit.

A practical concern is moving costs, which peak in summer due to high demand. Nearly half of all household moves occur between June and August, increasing competition for movers and rental trucks alike. ⁵

Fall: Underrated Opportunity Season (September-November)

Fall might be real estate's best-kept secret. While conventional wisdom suggests spring is the only time to transact, savvy buyers and sellers increasingly recognize fall's unique advantages.

Less Competition, More Serious Players

Data shows a large share of home sales occur in the fall, a detail often overlooked. With fewer competing sellers, listings stand out more, and active buyers tend to be serious and ready to act quickly. ³

October typically offers the best conditions for buyers. Data shows it has one of the lowest seller premiums of the year—about 8.8% above market value—as demand cools and competition eases. ² Home prices also tend to dip slightly from summer highs, saving buyers thousands compared to peak-season purchases. ⁴ For first-time buyers especially, fall can be an ideal time to find value without the bidding wars of spring and summer.

The Urgency Factor

Fall brings natural urgency. Buyers aim to close before holidays and bad weather, while sellers may be motivated by taxes or avoiding a winter listing. Comfortable weather in many areas makes showings easier.

Fall buyers are often more decisive, with fewer casual browsers and more serious purchasers ready to negotiate.

Winter: Value Season (December-February)

Winter gets a bad reputation in real estate, but for buyers with flexibility, it offers the year's best value proposition.

The Numbers Don’t Lie

The low-competition environment in winter provides the best opportunity for buyers to secure a discount. In January, only 24% of buyers pay above list price compared to 35% in May and June, which greatly reduces the chance of bidding wars. ⁴ This lower competition also means winter homes stay on the market longer, averaging 49 days versus 31 days during peak season, giving buyers more time, less pressure, and stronger negotiating power. ¹ Motivated sellers become more flexible as the holidays pass. Moving companies also offer their lowest rates in winter.

Winter’s Challenges

Winter has trade-offs. Sellers face the lowest buyer traffic, holiday distractions, limited curb appeal from dormant landscaping, and shorter daylight for showings.

Yet winter offers advantages. Less competition can help if you price aggressively and present well, and buyers who do visit are highly motivated, often relocating for jobs. Warm-climate markets like Florida and Arizona see smaller winter slowdowns, making location important. ¹

Snow and ice create safety hazards, and cold weather makes moving harder. However, winter also reveals property truths, such as heating efficiency, drafty windows, and roof performance, which is all information savvy buyers use during inspections.

Regional Differences: Not All Markets Are Equal

Seasonal changes in the real estate market depend heavily on location, meaning a strategy that works in one city may fail in another. Markets in the Midwest and Northeast experience the most dramatic seasonal swings due to harsh winters, which push most activity into the short window between May and August. For example, daily home sales in the Midwest often more than double from January to June, with states like Illinois and Ohio seeing significant annual price swings.

In contrast, Southern and Western markets enjoy stable, year-round activity because of mild weather. Places like California and most of the South see much less severe slowdowns in winter. The exception markets are those where mild winter weather attracts buyers, like Phoenix, Arizona , where the best selling time is late November. Understanding these local patterns is crucial, as local market dynamics always matter more than general national statistics. Feel free to reach out if you would like to know more about the specific seasonal patterns in your local area.

Pricing Strategies by Season

Pricing strategy must adapt to seasonal realities. What works in May fails in December, and vice versa.

Spring and Summer Pricing

During peak season, competitive pricing often attracts multiple offers. Pricing strategically 10–15% below comparable sales can spark competition and push final offers above list. Psychological pricing also matters; listing slightly under round numbers ($349,000 instead of $350,000) increases online visibility and appeals to buyer behavior. Emphasizing seasonal features such as outdoor spaces, natural light, and blooming gardens helps justify premium pricing. ³

Fall Reality Check

As competition declines in fall, pricing should be more realistic. Listing slightly below spring comparables can help generate activity. Flexibility on price attracts serious year-end buyers eager to close before the holidays and bad weather. Recognizing buyer urgency allows you to price strategically rather than reactively. ²

Winter Aggression

Winter requires more aggressive pricing to attract a smaller buyer pool. Pricing 5–10% below spring values can create immediate interest. Motivated sellers should focus on value over premium pricing. Buyers shopping in January aren’t bargain hunters, they’re seeking homes that justify moving during an inconvenient season. ¹

Year-round best practices stay consistent: use a Comparative Market Analysis, consider current market conditions, account for unique property features that algorithms may overlook, and monitor comparable sales while staying open to adjustments.

Buyer Offer Strategies by Season

Spring and Summer Competition

Peak season requires quick, confident action. Get pre-approved to show you’re a serious buyer and be ready to move fast. Consider offering above asking price when you find the right property, and use an escalation clause to outbid competitors up to your limit. Flexible closing dates also strengthen your offer. Some buyers write personal letters to create emotional connections.

Fall and Winter Leverage

Negotiating power shifts with the seasons. In fall and winter, when seller competition drops and buyer pools shrink, you gain leverage. You can more easily request seller concessions such as closing costs, home warranties, repairs, or even appliances and fixtures. Use inspection results to negotiate price reductions, as motivated sellers grow more flexible later in the season. You can also request longer inspection periods and winter move-in credits.¹

Year-Round Negotiation Fundamentals

No matter the season, understanding the seller’s motivation is key. Support your offer with market data rather than emotion, and build rapport when possible. Stay calm and avoid emotional decisions.

Have your agent handle offers and counteroffers to reduce tension. Know your limits and walk away from deals that don’t fit your goals. In buyer’s markets, be assertive; in seller’s markets, make offers strong and decisive. The fundamentals stay the same, though their intensity shifts with the season.

BOTTOMLINE

Seasonality creates opportunities and challenges, but personal circumstances should drive timing. Spring/early summer brings the highest prices and fastest sales. Winter offers buyers the best deals. Waiting for the “perfect” season doesn’t help if life demands action.

Understanding your specific situation, timeline, and goals allows us to create a customized strategy that maximizes outcomes within your constraints. The best time to move is when it's right for you.

Sources

1. National Association of REALTORS®. Navigating the Housing Market: A Seasonal Perspective. 2024.
https://www.nar.realtor/blogs/economists-outlook/navigating-the-housing-market-a-seasonal-perspective

2. Bankrate. Best Time to Sell a House. 2024
https://www.bankrate.com/real-estate/best-time-to-sell-house

3. Investopedia. How Seasons Impact Real Estate More Than You Think. 2024.
https://www.investopedia.com/articles/investing/010717/seasons-impact-real-estate-more-you-think.asp

4. Zillow
https://www.zillow.com/learn/best-time-to-buy-a-house/

5. My Moving Journey
https://mymovingjourney.com/blogs/moving-in-peak-season-vs-off-season

Can You Really Trust Online Home Estimates?

Mon, 03 Nov 2025 17:06:50 GMT

For millions of homeowners, checking their Zillow Zestimate has become as routine as checking a stock portfolio—a quick hit of seeing your home's estimated value, right at your fingertips. With 178 million monthly users and over 100 million homes covered, the platform's instant, free, and convenient appeal is undeniable.

But here's a famous cautionary tale: Spencer Rascoff, Zillow's former CEO, sold his own home for a staggering 40% less than its Zestimate. This story highlights a critical fact that many homeowners don't realize: Zillow itself calls its Zestimate a "starting point... not an appraisal" ¹ .

If the creator of the system can be off by that much, how accurate are online home valuations for the rest of us? Relying on an automated number for your most valuable asset could be a mistake worth tens of thousands of dollars.

In this article, we'll examine how these powerful algorithms work, reveal the data behind their wildly varying accuracy rates, identify what they systematically miss, and show why local human expertise remains irreplaceable when precision—and your equity—matters most.

How These Algorithms Actually Calculate Your Home's Value

Automated Valuation Models are algorithms designed to crunch massive amounts of data in seconds. ³ Think of them as sophisticated calculators—impressive in computational power, but limited by the quality and completeness of their inputs.

These systems analyze public records, tax assessments, recent comparable sales from the MLS, and basic property characteristics like bedrooms, bathrooms, and square footage. ⁴ For standard properties with plenty of recent comparable sales, this data-driven approach can produce reasonable estimates.

But here's the fundamental limitation that shapes everything else we'll discuss: these models rely purely on historical data and never actually visit your property. They're backward-looking by design, using what sold yesterday to predict what might sell tomorrow, and while an algorithm can tell you that your home has three bedrooms, it cannot tell you that the primary suite has stunning morning light that makes buyers fall in love.

Accuracy and When Online Estimates Miss the Mark

Now for the numbers that every homeowner needs to understand.

When discussing AVM accuracy, you'll encounter the term "median error rate." This measures how far the estimate typically deviates from the actual sale price—specifically, half of all estimates fall within this percentage, and half fall outside it. ² Lower is obviously better, but context is everything.

The On-Market vs. Off-Market Divide

Here's where online home estimate accuracy gets interesting—and where most homeowners make their biggest mistake.

When a home is actively listed for sale , AVMs perform surprisingly well. Zillow's median error rate drops to just 1.83%–1.94%, while Redfin achieves 1.98%. ^2,5 These are impressive numbers. Why? Because when your home hits the market, these algorithms gain access to fresh, verified MLS data—professional photos, detailed descriptions, and real-time pricing intelligence.

For off-market properties—which describes your home right now if you're just curious about its value—the median error rate skyrockets. Zillow's accuracy drops to 7.06%–7.5%, while Redfin's plummets to 7.66%–7.72%. ^2,5 That's not a minor adjustment. That's a fundamental breakdown in reliability.

What This Means in Actual Dollars

Let's make this tangible. On a $400,000 home, a 7% median error translates to ±$28,000 or more —and remember, that's the median, meaning half of all estimates miss by even more than that. For a $600,000 property, you're looking at potential discrepancies exceeding $40,000. For luxury homes, the gap can easily reach six figures. The difference between an accurate valuation and an algorithm's best guess could equal is immense—so it’s important to understand their limitations.

The Algorithm's Blind Spots: What Online Estimates Cannot See

If AVMs have access to so much data, why do they miss by such significant margins? The answer lies in what they can't measure.

The Condition Conundrum

This is the AVM's Achilles heel. Every algorithm must assume your home is in "average condition." Your newly renovated kitchen with custom cabinetry? Average. Your finished basement adding 600 square feet? Average. Your brand-new HVAC system? Average. Flip it around—deferred maintenance, a crumbling driveway, outdated bathrooms—all get the same treatment. This isn't minor—condition often accounts for significant price variations between otherwise identical properties.

Location Nuances and Human Appeal

Algorithms understand neighborhoods but struggle with subtleties. Two identical homes—one on a quiet cul-de-sac, another backing a busy road. Same value to an algorithm, vastly different to buyers.

Market Lag and Unique Properties

Because AVMs depend on historical sales data, they lag behind current conditions. In rapidly moving markets, this lag can render estimates nearly useless. For custom homes, luxury properties, or anything unique, AVMs often fail completely—there simply aren't comparable sales to analyze.

The Solution: Why a CMA Is the Indispensable Tool

A Comparative Market Analysis (CMA) is the professional valuation tool that real estate agents provide. It's the bridge between raw data and real-world value—combining analytical power with human expertise and local knowledge.

What Makes a CMA Superior

Physical Inspection: Unlike an algorithm, your agent actually walks through your home. They see the quality of updates, evaluate floor plan flow, notice natural light, and assess the overall "feel" that influences buyer psychology. They identify value-adding features no database captures.

Micro-Local Knowledge: Agents live and breathe their local markets. They know which streets command premiums, understand seasonal patterns and inventory levels, and track current buyer demand. They explain not just what your home is worth, but why—and how to position it strategically.

Real, Adjusted Comparables: Your agent doesn't just pull recent sales—they analyze and adjust them. They can justify why your home is worth $20,000 more than one down the street: "Their kitchen had 1990s oak cabinets; yours has modern shaker style buyers want, justifying a $15,000 adjustment. They had builder-grade carpet; you have refinished hardwood, worth another $10,000."

Why Pricing Correctly From Day One Matters

For sellers, an accurate CMA prevents the two most expensive mistakes. Overpricing based on an inflated estimate leads to your home sitting stagnant—each week without offers damages your negotiating position and ultimately results in selling for less than if you'd priced correctly initially. Underpricing based on a conservative algorithm means leaving tens of thousands on the table. In real estate, you rarely get a second chance at a first impression. The initial listing price sets market perception, and getting it right requires the precision only a CMA provides.

When Online Valuations are Useful

For Sellers: Never set your listing price based solely on an online estimate. Use it as a conversation starter, but rely on your agent's CMA to build a strategic, defensible pricing plan.

For Buyers: Use online estimates to establish a general ballpark before you start searching, but trust your agent's analysis of recent comparable sales when crafting offers. The algorithm doesn't know that three other buyers are submitting offers this weekend—your agent does.

BOTTOMLINE: Technology Is a Tool, Not a Guide

Online home valuations are impressive tools for satisfying curiosity, but they remain prone to significant error—especially for off-market properties where median error rates of 7-8% translate to tens of thousands of real dollars. The blind spots around condition, location nuances, and market timing aren't minor technical limitations—they're fundamental gaps that only human expertise can fill.

When it comes to your largest financial asset and a decision that will impact your life for years, technology can give you a ballpark, but only a professional CMA can give you the strategic precision you need.

Ready to know what your home is really worth? Contact us today for a complimentary Comparative Market Analysis—a personalized, in-person valuation that examines your specific property, incorporates current market dynamics, and provides the strategic guidance the internet simply cannot match.

Sources

1. Inman - https://www.inman.com/2016/05/18/zillow-ceo-spencer-rascoff-sold-home-for-much-less-than-zestimate/

2. Zillow Zestimate Accuracy - https://www.zillow.com/z/zestimate/

3. Rocket Mortgage: Automated Valuation Model - https://www.rocketmortgage.com/learn/automated-valuation-model

4. Experian: What Is an Automated Valuation Model - https://www.experian.com/blogs/ask-experian/what-is-automated-valuation-model/

5. Redfin - https://www.redfin.com/redfin-estimate

How to Spot Real Estate Scams (and Protect Your Investment)

Wed, 01 Oct 2025 18:01:39 GMT

Real estate scams are targeting more victims than ever before, and they're becoming increasingly sophisticated. Nearly 10,000 Americans fell victim to real estate fraud in 2024, losing over $173 million according to FBI reports. ^] Even more concerning, about one in four home buyers or sellers encounter suspicious activity during the closing process , and one in 20 end up victims of wire fraud. ²

These aren't isolated incidents targeting the naive or unprepared—they're professional operations that can fool experienced investors and savvy consumers alike. Scammers have adapted to modern technology and remote transactions, making their schemes harder to detect and more financially devastating than ever.

The shift to digital communications and remote closings has created new vulnerabilities that criminals actively exploit. Whether you're a first-time homebuyer, seasoned investor, property owner, or renter, understanding these threats and knowing how to protect yourself is essential. From wire transfer hijacking to fake listings, title theft, and impostor agents, real estate scams come in many forms. Here's how to recognize and protect yourself from the most common threats.

Wire Transfer Fraud: The Costliest Threat

Wire fraud strikes at closing when buyers are most vulnerable. Criminals hack or spoof emails from real estate agents, title companies, or attorneys, then send fake wiring instructions directing your down payment to their accounts. The setup appears completely legitimate—the email looks official, uses proper terminology, and creates urgency around closing deadlines.

Real estate wire fraud schemes cost victims $145 million in reported losses in 2023 ¹ , with typical losses exceeding $70,000 per case . ⁴ For many homebuyers, this represents their entire life savings and down payment. By the time fraud is discovered, the money is usually gone forever, as these transfers are nearly impossible to reverse.

Critical warning signs include:

Last-minute wiring instruction changes marked urgent or claiming emergencies
Email address anomalies with letters off or different domains (like "titlle-co.com" instead of "title-co.com")
Pressure tactics demanding immediate action to avoid closing delays

Protection requires verification. Always confirm wiring instructions in person or by calling verified phone numbers—never rely on email contact information. Many brokers now require wire fraud acknowledgment forms. ⁵

If fraud occurs, contact your bank and the FBI's IC3 hotline within 24-72 hours for the best recovery chances. ⁵

Rental Listing Scams: Too Good to Be True

Rental scams use fake listings or fraudulent "landlords" to collect upfront payments for properties that don't exist or aren't actually available. Scammers copy real listings with gorgeous photos and below-market rents to lure victims, particularly those under pressure to find housing quickly in competitive markets.

The emotional manipulation is deliberate—scammers create urgency by claiming multiple interested renters or limited availability. They often pose as property managers or landlords who are conveniently out of town, overseas for work, or on missionary trips, making in-person meetings impossible.

Red flags include:

Unusually low rent for the area or property quality
Remote landlords who claim they're out of the country and can't meet in person
Upfront payment requests before property viewing or lease signing[^7]

Never send money for rentals you haven't verified. Insist on inspecting properties before paying anything, and verify ownership through county records. Avoid wire transfers, gift cards, or cryptocurrency for deposits—these payment methods are nearly impossible to recover.

The implications extend beyond renters. Homeowners can also be targeted when scammers impersonate property owners to illegally rent out vacant homes. If you own vacant property or one that's listed for sale, monitor for fake rental ads using your address. Some counties offer property fraud alert services that notify you of suspicious activity.

Title and Deed Fraud: Stealing Your Home

Title fraud involves criminals forging documents to steal ownership of your property. They typically use quitclaim deeds with forged signatures to make it appear they own your home. Once they've fraudulently transferred ownership, they can take out loans against it, sell it, or rent it out, leaving you with a legal nightmare to undo. Vacant homes, investment properties, and homes owned free-and-clear are prime targets because fraud is less likely to be detected quickly.

The trend is accelerating as criminals become more organized. The FBI's Boston field office has reported a "steady increase" in quitclaim deed fraud cases, exacerbated by remote transactions. Between 2019 and 2023, over 58,000 victims reported $1.3 billion in losses to real estate fraud , including title scams. ⁸ Some operations involve crime rings with teams specifically tasked with identifying target properties through public records.

Watch for unusual mail including notices of new mortgages you didn't initiate, stopped tax bills, or deed transfer notices. If you stop receiving property tax statements or get unexpected foreclosure notices, investigate immediately.

Protect yourself by monitoring your property records through county databases and setting up fraud alerts where available. Consider title insurance for additional protection.

Fake Buyers, Sellers, and Realtors

Identity scams involve criminals impersonating transaction parties or real estate professionals.

Fake buyer scams target home sellers with attractive cash offers, then send fake cashier's checks for deposits exceeding required amounts, asking sellers to wire back the difference.

Seller impersonation has exploded recently— more than half of U.S. real estate agents (54%) encountered seller impersonation attempts in 2023 . ⁹ Fraudsters pose as property owners to list and sell properties without authorization.

Fake real estate professionals create phony profiles, sometimes stealing legitimate agents' names and photos to mislead clients into paying bogus fees. In one recent Florida case, a scammer stole a real Realtor's identity online, misled multiple clients, and collected thousands in illegitimate fees before the fraud was uncovered. ¹³

Always verify identities by checking photo IDs and confirming credentials through state licensing databases. Legitimate Realtors have license numbers you can verify independently. Meet in person when possible and independently verify property ownership through public records. If you receive unsolicited offers to buy your home, never provide banking information or accept funds from unvetted parties.

Bait-and-Switch Schemes

These scams promise attractive deals, then switch to inferior terms once you're hooked.

Rental bait-and-switch advertises great properties that are suddenly "unavailable," then pushes less desirable alternatives at higher prices.

"We Buy Houses" schemes offer inflated purchase prices, then renegotiate last-minute or assign contracts to other buyers, often leaving sellers with as little as 50% of market value . ⁶

Mortgage bait-and-switch promises unrealistic rates requiring large upfront fees, then switches to higher rates or forfeits your deposit if you decline.

Trust your instincts when deals change suddenly or seem too good to be true. Get all offers in writing and avoid non-refundable upfront fees.

Best Practices: Your Defense Strategy

Work with licensed professionals. Use reputable real estate agents, attorneys, and title companies. Verify licenses and check reviews.

Verify all identities. Ask for photo ID and confirm credentials through independent sources. Meet in person or via video call when possible.

Protect personal information. Use strong passwords, enable two-factor authentication, and never email sensitive financial data.

Avoid pressure tactics. Legitimate deals don't require immediate action that bypasses verification safeguards.

Use secure payment methods. Wire transfers should only go to verified escrow accounts. Avoid cash, gift cards, or individual wire transfers.

Monitor your property. Regularly check title records and set up fraud alerts where available.

Report suspected fraud to local police, the FBI's IC3, and the FTC to help protect others and potentially recover losses.

BOTTOMLINE

Real estate scams exploit trust and urgency, but the warning signs are consistent: bypassed safeguards, pressure tactics, unverified identities, and deals too good to be true. Protection comes from verification, patience, and working with experienced professionals who can spot red flags.

Whether you're buying, selling, or renting, take time to properly vet every aspect of your transaction. If something feels wrong, pause and investigate—it's better to lose a "great" deal than become a fraud victim.

Planning a real estate transaction? Let's discuss how to protect your investment while achieving your goals. An experienced agent can help you navigate the process safely and spot potential scams before they become costly problems.

Sources

1. FBI Internet Crime Complaint Center - https://www.ic3.gov/AnnualReport/Reports/2024_IC3Report.pdf

2. National Cybersecurity Alliance - https://staysafeonline.org/resources/5-common-real-estate-scams-you-need-to-know-about/

3. Rocket Mortgage - https://www.rocketmortgage.com/learn/real-estate-scams

4. Eftsure - https://www.eftsure.com/articles/wire-fraud-statistics/

5. National Association of Realtors - https://www.nar.realtor/wire-fraud

6. MMBB - https://www.mmbb.org/article/unmasking-real-estate-scams/

7. Federal Trade Commission - https://consumer.ftc.gov/articles/rental-listing-scams

8. Florida Realtors - https://www.floridarealtors.org/news-media/news-articles/2025/06/quitclaim-deed-fraud-rise-fbi-says

9. American Land Title Association - https://www.alta.org/news/news.cfm?20231108-Over-Half-of-US-Real-Estate-Professionals-Experienced-a-Seller-Impersonation-Fraud-Attempt-in-2023

10. NBC Washington - https://www.nbcwashington.com/news/local/scammers-impersonating-owners-in-vacant-land-sales/

11. Kiplinger - https://www.kiplinger.com/article/real-estate/t048-c050-s002-how-to-protect-your-home-from-deed-theft.html

12. Federal Housing Finance Agency - https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FraudPrevention.pdf

NBC Miami - https://www.nbcmiami.com/investigations/scammer-posing-as-realtor-costs-victims-thousands-and-unfairly-tarnishes-a-reputation/3598591/

What Makes a Great Long-Term Rental Property? A Checklist for Smart Investors

Thu, 04 Sep 2025 17:43:43 GMT

Real estate continues to dominate as America's favorite long-term investment strategy. For the 12th consecutive year, 37% of Americans consider real estate the top investment choice—nearly doubling stocks at just 16%. ¹ This isn't just sentiment; investors are putting their money where their beliefs are, purchasing 13% of all homes sold in 2024. ²

The truth is, real estate offers unique advantages that traditional investments can't match. A rental property provides multiple income streams, delivering monthly rent payments while simultaneously building equity and appreciating in value. Plus, leverage amplifies returns: Even if you put down 20%, you’ll benefit from 100% of the property's appreciation gains. Tax advantages, such as depreciation and deductible expenses, can further boost profitability. ³

When executed wisely, rental properties can deliver steady cash flow today and significant wealth tomorrow. But success starts with preparation—knowing how rentals make money, who is best suited to invest, what to look for, and where to start.

How Rental Properties Build Wealth

Great rental properties create wealth through three primary channels that work together to compound returns over time:

Cash Flow represents net monthly income after expenses. The formula: Total rent minus all expenses (mortgage, taxes, insurance, maintenance, management fees, etc.). A duplex renting for $3,300 monthly with $2,700 in expenses generates $600 monthly positive cash flow—money for profit or reinvestment.
Appreciation refers to property value increases over time. Historically, U.S. home prices have risen approximately 3-5% annually. ⁴ A 5% annual appreciation on a $300,000 house adds $15,000+ to your equity annually from market gains alone.
Equity growth also occurs as mortgage payments reduce loan principal. Ideally, tenant rent effectively covers these payments, so tenants are purchasing the property for you incrementally. If $500 monthly goes toward principal, you gain $6,000 in equity annually.

The total return combines all three elements. While individual components might not create overnight wealth, together they compound impressively for patient investors.

Who Should Invest in Rentals?

Rental property investing isn’t for everyone. The most successful investors tend to share a few traits:

Long-term wealth builders with financial stability and risk tolerance typically succeed. Investment properties require substantial down payments (typically 20-30%) plus cash reserves for maintenance and vacancies. You need stable finances with emergency funds before investing, as real estate is illiquid. ⁵
Detail-oriented, patient investors often find the greatest success. Nearly 90% of real estate investors encounter challenges—bad tenants, unexpected repairs, or incorrect pricing. ⁶ Smart investors educate themselves and analyze numbers carefully before buying.
Hands-on, resourceful owners who can handle basic maintenance, repairs, and tenant management themselves also have an advantage. These investors can save thousands each year on property management and service fees, boosting overall returns.

If you align with these traits, rental property investing can be a powerful tool for building lasting wealth.

Where to Begin Your Investment Journey

The first step is to contact an investment-savvy real estate agent. We can be an invaluable partner in finding and securing great properties by offering:

Access to off-market deals that you can’t find on your own. We have extensive networks and can sometimes help you uncover properties before they are publicly listed.
Expert market knowledge to help you choose the right property. We know which neighborhoods, property types, and home features are the most desirable to renters in our area.
Deal analysis assistance to maximize your returns. We can help you estimate cash flow, cap rates, and return on investment.
Ongoing network support that extends beyond closing. We maintain networks of reliable contractors, property managers, investor-friendly lenders, and insurance brokers.

With the right guidance from day one, you can move forward with confidence and start building a portfolio that works for you.

Your Rental Property Evaluation Checklist

Not all rental properties offer equal investment potential. Smart investors use systematic criteria to identify truly great opportunities:

Location & Market Analysis

Location determines everything—tenant quality, rental demand, and appreciation potential. Focus on areas with strong rental demand near employment centers, universities, or transit systems ensuring steady tenant pools.

Research local vacancy rates carefully. High neighborhood vacancy signals low demand, while low vacancy allows rent increases. Investigate safety and school quality—properties in low-crime areas with good schools attract stable, long-term tenants. ⁵

Evaluate regional economic trends beyond immediate neighborhoods. Growing employment opportunities drive housing demand. Research major employers that are expanding but avoid areas dependent on single industries. Check government infrastructure plans—new transit or development projects can boost values, but excessive new development might increase competition. ⁵

Financial Analysis

Perform detailed cash flow analysis for every potential property. Calculate expected rent and subtract all expenses: mortgage payments, property taxes, insurance, HOA fees, management costs, maintenance reserves (budget 10% of rent), and vacancy allowances.

The “1% rule” provides a quick assessment—monthly rent should equal at least 1% of purchase price plus any necessary repairs. Therefore, a $200,000 home should rent for at least $2,000 monthly. ⁵ Run sensitivity analysis: What happens if rents drop 5% or expenses increase 10%? Great properties remain profitable under various conditions.

Property Condition & Carrying Costs

Physical condition directly impacts returns. Older homes with outdated systems may require frequent, costly repairs. ⁷ Schedule professional inspections focusing on major components: roof, foundation, electrical, plumbing, and HVAC systems.

Consider property layout—standard configurations like 3-bedroom/2-bathroom homes appeal to broader tenant bases than unusual layouts. Factor in capital expenditure timelines for major items needing replacement every 15-30 years.

Research property tax rates and insurance costs carefully. Some areas have taxes so high that even nice properties won't generate profit. Get insurance quotes before purchasing, especially for properties in flood zones or disaster-prone areas requiring expensive additional coverage.

Property Type Selection

For most investors, single-family homes, condominiums, or townhomes offer the best starting point. Single-family homes typically attract longer-term tenants who treat the property as their home, resulting in steadier income. ⁵

Unless you’re planning to use your property as a short-term or vacation rental, avoid highly specialized properties like luxury mansions or tiny studios targeting niche markets with higher vacancy risks. “Bread and butter” 2-4 bedroom homes in middle-class neighborhoods form successful long-term rental portfolio foundations. ⁵

Due Diligence Requirements

Verify all numbers independently. Research comparable rents for similar nearby properties ensuring realistic projections. ⁷ Check sales comparables to avoid overpaying. Schedule professional inspections and read reports thoroughly—unexpected problems can transform great deals into money pits.

Understand local landlord-tenant laws covering eviction processes and deposit rules. Consult professionals, as needed, for valuable guidance.

If this checklist seems overwhelming, don’t worry! We can help with each of these items. By following this checklist, we’ll separate high-performing rental opportunities from costly mistakes and position you for long-term success.

BOTTOM LINE

Great rental properties aren't found by chance—they're identified through systematic evaluation. Properties that build lasting wealth combine healthy cash flow, solid locations, sound physical condition, and strong growth potential.

Success requires patience, proper analysis, and the right team. While markets fluctuate, well-chosen properties consistently reward investors through income, appreciation, and equity growth creating real wealth over time.

Ready to start building wealth through rental property investment? The fundamentals we’ve outlined provide your foundation, but local market expertise and deal analysis make the difference between mediocre and exceptional investments. Let's discuss how these principles apply to current opportunities in your target market.

Sources

1. Gallup - "Real Estate Still Best Investment" - https://news.gallup.com/poll/660161/stocks-fall-gold-rises-real-estate-best-investment.aspx

2. Realtor.com Research - "Investor Report June 2025" - https://www.realtor.com/research/investor-report-june-2025/

3. Investopedia - "Real Estate vs. Stocks" - https://www.investopedia.com/investing/reasons-invest-real-estate-vs-stock-market/

4. Redfin Blog - "Average home appreciation per year" - https://www.redfin.com/blog/average-home-appreciation-per-year/

5. Investopedia - "10 Factors to Consider When Buying an Income Property" - https://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp

6. Clever Real Estate Survey - "Residential Real Estate Investing in 2024" - https://listwithclever.com/research/residential-real-estate-investing-2024/

7. Investopedia - "5 Ways to Value a Real Estate Rental Property" - https://www.investopedia.com/articles/mortgages-real-estate/11/how-to-value-real-estate-rental.asp

10 Hidden Home Maintenance Tasks That Could Save You Thousands

Wed, 06 Aug 2025 16:40:59 GMT

As a homeowner, you’re likely diligent about the basics—mowing the lawn, touching up paint, and cleaning regularly. But what about the critical home maintenance tasks you don’t see every day?

Research shows that home maintenance frequently takes a backseat, even with the best intentions. In fact, a recent survey found that 60% of homeowners have postponed necessary maintenance or repairs, while 40% admit to paying for a major home repair that could have been avoided with better upkeep. ¹

Still, it’s not just about avoiding costly emergencies—it’s also about maximizing the return on your biggest investment. According to research by Thumbtack, homeowners who do put in the extra care are rewarded: Well-maintained homes sell for an average of 10% more. ²

Let’s explore 10 often overlooked home maintenance tasks and how they can save you thousands in long-term costs.

1. Gutter Cleaning: Your First Line of Protection

Clogged gutters can cause water to overflow and seep into your home’s foundation, attic, or siding. Left unchecked, this can lead to foundation damage, rot, and even flooding.

The real cost of neglect: While professional gutter cleaning averages $162 nationally (up to $390 for multi-story homes), water damage repair costs can add up—averaging $5,100 for foundation damage and $4,300 for a flooded basement. ^3,4,5

Your action plan:

Clean gutters at least twice annually—in spring and fall.
Use a gutter scoop or hose to remove debris.
Consider investing in gutter guards to reduce future clogs.

This small task prevents major structural damage and prolongs the life of your home’s exterior.

2. HVAC Filter Replacement: Small Task, Major Impact

A dirty HVAC filter reduces airflow, causes your system to work harder, and increases energy use. It can also lead to health concerns from trapped contaminants circulating in your home’s air. ⁶

The hidden costs: A neglected filter can lead to clamped-up coils, furnace failures, and sometimes a complete system replacement costing $4,000-$12,000. ⁶

Your maintenance routine:

Replace filters every 1–3 months, depending on filter type, usage, and the number of pets in your home.
Opt for MERV 8–13 filters for efficiency and air quality balance. ⁷
Schedule full-system annual servicing ($175–$550) to catch hidden issues early. ⁸

This simple task saves on energy bills (15-20% according to the Department of Energy) and extends your HVAC system’s lifespan. ⁸

3. Water Heater Flushing: Preventing Sediment Buildup

Over time, sediment accumulates in your water heater tank, reducing efficiency and shortening the unit's lifespan. Left unchecked, this buildup can cause leaks or complete tank failure.

The financial reality: Regular flushing prevents early replacement and may be required to maintain your water heater’s warranty. ⁹ You can do it yourself or hire a professional for around $160. ¹⁰

Your annual process:

Turn off power and water supply to the unit
Attach a hose to the drain valve and empty the tank completely
Check your anode rod; it may need to be replaced every 3–5 years.

This simple routine extends your water heater’s life and preserves energy efficiency.

4. Dryer Vent Cleaning: A Critical Safety Task

Lint buildup in dryer vents doesn’t just reduce drying efficiency—it’s one of the leading causes of house fires in the U.S. ¹¹ They also force your dryer to work harder and longer for each load.

The cost factor: Professional dryer vent cleaning costs about $144 nationwide, while fire-related damage can run into the tens of thousands. ¹²

Your safety protocol:

Clean dryer vents every six months using a brush kit, or call in a professional.
Replace plastic ducts with rigid metal ones, which resist lint clogs.
Monitor drying times—longer than usual may signal a blockage.

This potentially life-saving task improves both safety and appliance efficiency.

5. Refrigerator Coil Cleaning: The 35% Energy Drain

Your refrigerator’s coils help expel heat. When coated in dust, they force the compressor to work harder, increasing energy bills and shortening appliance lifespan.

The efficiency impact: Dirty coils can increase energy use by up to 35% and, over time, can lead to costly repairs or replacement. ¹³

Your simple solution:

Check your manufacturer’s guidelines; many recommend cleaning every six months.
Locate coils behind or at the bottom of the unit and use a vacuum or coil brush to remove dust and debris.
Keep condenser fan areas unobstructed.

This $0 DIY task can trim your electricity bill—and prevent early breakdown.

6. Garage Door Lubrication: Prevents Costly Repairs

A squeaky garage door means friction—and friction leads to wear on moving parts, costly spring damage, and failed openers.

The mechanical reality: A new garage door opener can cost between $350-$1000 installed, but a can of lubricant only costs about $10. ¹⁴

Your annual routine:

Check the manufacturer’s guidelines to choose the right lubricant for your garage door.
Prioritize safety: Ensure the door is fully closed and cut the electricity.
Check for any signs of damage before proceeding, and call in a pro if needed. ¹⁵

This simple task eliminates squeaks and avoids expensive mechanical repairs.

7. Sump Pump Testing: Your Basement's Guardian

Your sump pump quietly protects your basement from water damage—but it needs testing to ensure it works when you need it most.

The flood prevention factor: Sump pump failure during a storm can result in thousands of dollars in cleanup costs. ⁵

Your quarterly test:

Pour water into the pit to ensure the float triggers the pump.
Confirm pump and drainage are working correctly.
Clean the inlet screen once per year to avoid clogs.

This 10-minute check gives peace of mind and avoids major flood damage.

8. Chimney Cleaning: Preventing House Fires

According to the National Fire Protection Association, the leading cause of home heating fires (30%) is a dirty chimney. ¹⁶

The fire prevention imperative: Professional cleaning costs between $100-$350 and is crucial for anyone burning wood. ¹⁷ The cost of ignoring this task includes chimney repairs and fire damage that can devastate homes.

Your annual safety check:

Hire a certified chimney sweep for inspection and cleaning, if needed.
Use only seasoned wood to reduce creosote buildup.
Install a chimney cap to block debris and critters.

Professional chimney maintenance is a non-negotiable safety investment.

9. Roof Inspection: Protecting Your Shelter

Your roof endures a lot—storms, sun, pests—and while damage may start small, it can become unbelievably costly if ignored.

The structural stakes: A professional inspection averages $239, but some roofers will offer one for free. ¹⁸ Roof repair costs have surged 28.47% year-over-year. ¹⁹ A new roof now costs $9,500 on average. ²⁰

Your inspection process:

Twice per year, perform a DIY inspection for missing shingles, cracked flashing, and sagging areas.
Check your attic for stains or leaks after rainfall.
Consider a professional inspection every 1-2 years, depending on your risk factors. ¹⁸

Early intervention prevents thousands in repairs and helps retain resale value.

10. Water Pressure Monitoring: Protecting Your Plumbing

Many homeowners never check their home’s water pressure, but levels above 80 psi can damage pipes, appliances, and fixtures throughout your home, leading to premature failures and leaks.

The pressure problem: Water pressure that’s too high can damage your pipes and lead to expensive repairs or flooding. Pressure that’s too low can impact the performance of your faucets and appliances. ²¹

Your annual check:

Use a water pressure gauge connected to an outdoor faucet.
Ideal pressure: 40-60 psi. Install a regulator if it runs high.
Monitor for sudden changes that could signal a plumbing issue. ²¹

This small check helps you avoid hidden damage to your entire plumbing system.

Creating Your Home Maintenance Schedule

Rather than reacting to emergencies, create a proactive plan. Here's a maintenance chart that puts it all in one place:

The Maintenance Investment Reality

Homes with consistent maintenance routines sell for around 10% more than average. ² More importantly, budgeting 1–4% of your home’s purchase price annually helps prevent sudden, catastrophic expenses. ²²

As Lucas Puente, Economist at Thumbtack, notes: “Across the U.S., buyers should be prepared to spend at least a few thousand a year in home maintenance costs.” ²³

Bottom Line

Proactive home maintenance isn’t optional—it’s essential. The ten hidden tasks above are often overlooked, but they’re critical to preserving your home’s safety, energy efficiency, and resale value.

Ultimately, your home is an investment. Consistent upkeep helps you avoid emergencies, save on utilities, and protect your equity for the long term.

Ready to create a tailored maintenance plan for your home? I can connect you with trusted local service pros and show you how proactive upkeep contributes to your home's market value. Let’s talk about keeping your home in peak condition—and protecting one of your most valuable investments.

Sources

1. Finance Buzz -
https://financebuzz.com/homeowner-maintenance-repairs-survey

2. Thumbtack -
https://blog.thumbtack.com/investing-in-home-maintenance-pays-off-yet-the-majority-of-homeowners-are-under-budgeting-84426995b6c5

3. This Old House -
https://www.thisoldhouse.com/gutters/gutter-cleaning-cost

4. This Old House -
https://www.thisoldhouse.com/foundations/foundation-repair-cost

5. Forbes -
https://www.forbes.com/home-improvement/plumbing/basement-flooding-repair-cost/

6. HVAC.com -
https://www.hvac.com/expert-advice/consequences-not-changing-your-air-filter/

7. New York Times -
https://www.nytimes.com/wirecutter/reviews/furnace-and-air-conditioner-filters-we-would-buy/#how-to-choose-a-filter-by-its-merv-rating

8. Today’s Homeowner -
https://todayshomeowner.com/hvac/cost/ac-tune-up-cost/

9. Home Depot -
https://www.homedepot.com/c/ah/how-to-flush-a-water-heater/9ba683603be9fa5395fab901d7efffcd

10. Angi -
https://www.angi.com/articles/water-heater-flush-cost.htm

11. National Fire Protection Association -
https://www.nfpa.org/education-and-research/research/nfpa-research/fire-statistical-reports/home-fires-involving-clothes-dryers-and-washing-machines

12. Home Advisor -
https://www.homeadvisor.com/cost/cleaning-services/clean-dryer-vents/

13. U.S. Department of Energy -
https://www.energy.gov/energysaver/purchasing-and-maintaining-refrigerators-and-freezers

14. Angi -
https://www.angi.com/articles/how-much-does-garage-door-opener-cost.htm

15. Lowes -
https://www.lowes.com/n/how-to/how-to-lubricate-garage-door

16. U.S. Environmental Protection Agency -
https://www.epa.gov/sites/default/files/2016-11/documents/kit_2_fast_facts.pdf

17. Today -
https://www.today.com/series/how-often-should-you/chimney-cleaning-how-often-get-sweep-inspection-t104648

18. Angi -
https://www.angi.com/articles/how-much-does-roof-inspection-cost.htm

19. Bankrate -
https://www.bankrate.com/home-equity/most-expensive-home-maintenance-costs/#home-maintenance

20. Nerdwallet -
https://www.nerdwallet.com/article/mortgages/roof-replacement-cost

21. The Spruce -
https://www.thespruce.com/testing-water-pressure-in-your-home-2718692

22. Home Guide -
https://homeguide.com/costs/average-home-maintenance-costs

23. Zillow -
https://zillow.mediaroom.com/2017-07-31-Homeowners-Can-Spend-More-Than-9-000-a-Year-on-Hidden-Homeownership-and-Maintenance-Costs?mobile=No

Real Estate Market Update: What Mid-Year Indicators Mean for Your Next Move

Tue, 01 Jul 2025 23:23:22 GMT

As we reach the midpoint of 2025, the U.S. housing market stands at a critical juncture. The frenzy of the pandemic-era real estate boom has long since cooled, but in its place we’re seeing a market searching for balance. Higher mortgage rates, cautious buyers, and rising home inventory are combining to reshape what it means to buy or sell a home in today’s climate.

“The housing market is at a turning point,” says Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors. 1 This turning point brings both challenges and opportunities. Whether you’re buying, selling, or just keeping a close eye on the market, understanding these evolving trends is essential.

In this comprehensive market update, we examine four key factors influencing today's housing market and provide actionable strategies for navigating these evolving conditions.

FEWER HOME SALES, BUT MOMENTUM IS GROWING

While existing home sales have seen a modest uptick compared to last year, overall activity remains well below pre-pandemic norms. ^2,3 Many potential buyers are still on the sidelines, held back by ongoing economic uncertainty and affordability challenges driven by elevated mortgage rates and home prices. ⁴

As Lawrence Yun, Chief Economist for the National Association of Realtors, explains, “Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy. Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand.” ³

Yet, change is in the air. An increase in inventory, coupled with selective price reductions, is creating renewed interest among buyers. Hannah Jones, senior economic analyst at Realtor.co m, told Newsweek in May, “This summer’s housing market is expected to display familiar seasonal patterns, such as increased home sales and rising prices, but overall activity may remain subdued as buyers contend with elevated housing costs.” ⁵

What it means for you: A slower pace of sales offers opportunities for buyers. With less competition and more room to negotiate, now could be a smart time to reenter the market.

For sellers, success lies in understanding today’s buyer mindset and pricing your home to reflect current market dynamics. We're here to help you analyze local trends and craft a strategy that gets results.

MORTGAGE RATES REMAIN ELEVATED BUT STABLE

Currently, 30-year fixed mortgage rates are hovering below 7%, and Yun expects them to average 6.4% in the second half of the year. ⁶ While this is a far cry from the sub-3% rates of the pandemic era, it’s becoming the new normal. “Persistently high mortgage rates mean affordability remains top of mind,” explains Jones. ⁵

For many would-be buyers, affordability challenges are now central. Monthly housing payments have more than doubled since the pandemic, not only due to higher home prices but also because mortgage rates are amplifying the cost of borrowing. ⁷ In response, builders and sellers alike are offering concessions—from interest rate buydowns to closing cost assistance. ⁸

What it means for you: Mortgage rates aren’t likely to drop significantly anytime soon, so waiting for a better rate might not be the most effective strategy. Instead, buyers should focus on ways to reduce costs upfront or refinance later if rates eventually fall.

Sellers take note: Offering mortgage rate incentives or closing cost support can set your listing apart and expand your pool of qualified purchasers. We can help you evaluate your options and market these perks to today’s cost-conscious buyers.

AN UPTICK IN INVENTORY OFFERS OPPORTUNITY FOR BUYERS

One of the most significant shifts in 2025 is the dramatic change in housing supply. For the first time in recent history, there are far more active sellers than buyers—an estimated 33.7% more.

This reversal stems from a combination of factors: the return-to-office trend has cooled demand in previously hot markets, while affordability issues continue to keep many potential buyers on the sidelines. At the same time, a growing number of homeowners—tired of waiting out market uncertainty—are choosing to list their properties, further swelling the supply. ⁹

Many major metros are now considered buyer’s markets, especially in the South and on the West Coast. Homes are sitting on the market longer, and stale inventory is piling up. “The balance of power in the U.S. housing market has shifted toward buyers,” says Redfin senior economist Asad Khan. ⁹

What it means for you: Buyers in many markets now have more choice and leverage than they’ve had in years. Sellers must adapt quickly—pricing aggressively, staging well, and being open to negotiation.

A skilled agent is an invaluable ally in this climate: For buyers, we can help identify hidden gems and guide strong offers. For sellers, we can develop marketing strategies to move your home efficiently, even in a competitive landscape.

HOME PRICES REMAIN HIGH BUT SHOW SIGNS OF SOFTENING

After years of rapid price growth, the market is seeing a gentle descent back to earth. While some pockets of the Northeast and Midwest are still experiencing price increases, values are flattening or falling in many parts of the country. Newsweek reports that home values declined in over half the U.S. states during the first half of 2025, especially in the Sun Belt region. ⁵

Economists forecast that the median U.S. home price will remain flat in the third quarter and dip about 1% year-over-year by the end of 2025. ⁸ Sellers are beginning to accept that sky-high comps from 2021 and 2022 are no longer relevant–-largely due to persistent affordability challenges.

Households earning $75,000 a year can now afford just 20% of homes on the market—down sharply from nearly 50% before the pandemic.¹ This shift is driven in part by a chronic shortage of housing supply, which continues to keep prices out of reach for many would-be buyers despite recent softening. ¹⁰

This ongoing supply shortage is expected to prevent a significant drop in home values. As finance expert Michael Ryan tells Newsweek in May, “The housing market isn’t crashing dramatically, more like it’s finally coming back down to earth from a sugar high.” ⁵

What it means for you: For buyers, softening prices can lead to better opportunities—especially in market segments where listings are lingering.

For sellers, the key is realism. “Gone are the days when you could slap any old price on your house and expect a bidding war,” says Ryan. Strategic pricing from the start is crucial. We can help determine what your home is truly worth in today’s market. ⁵

LET’S MAKE YOUR NEXT MOVE A SMART ONE

While national housing reports can give you a “big picture” outlook, much of real estate is local. And as local market experts, we know what's likely to impact sales and drive home values in your particular neighborhood.

If you're planning to buy a home in 2025, you have more options and room to negotiate—but must remain vigilant about financing and affordability. If you're a seller, your strategy should reflect today’s conditions, not yesterday’s highs. And if you’re a homeowner, now is a good time to evaluate whether it makes sense to stay put, refinance, or take advantage of current equity to make a move.

The best decision is an informed one, and that’s where a trusted real estate professional comes in. We have the local insight, negotiation skills, and market knowledge to help you succeed—whether you're buying your first home, selling your third, or simply weighing your next move. Reach out today to start a conversation about your goals and how the current market can work for you.

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. National Association of Realtors - https://www.nar.realtor/newsroom/americas-housing-affordability-gap-persists-households-earning-75000-annually-can-afford-less-than-a-quarter-of-for-sale-home-listings

2. Zillow -
https://www.zillow.com/research/home-value-sales-forecast-33822/

3. National Association of Realtors -
https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales

4. MarketWatch -
https://www.marketwatch.com/story/home-buyers-are-finding-the-silver-lining-in-a-stalled-housing-market-especially-if-theyre-in-this-group-1bd9eaff

5. Newsweek -
https://www.newsweek.com/map-shows-home-values-dropping-half-country-housing-market-shifts-2074904

6. National Association of REALTORS® Residential Economic Issues & Trends Forum -
https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-says-mortgage-rates-fast-rise-hurt-housing-market-during-realtors-legislative-meetings

7. National Association of REALTORS® Legislative Meetings 2025
https://cms.nar.realtor/sites/default/files/2025-06/2025-realtors-legislative-meetings-residential-economic-issues-and-trends-forum-lawrence-yun-presentation-slides-06-03-2025.pdf?_gl=1*166ceye*_gcl_au*MTUxMjAyMjU3Ny4xNzQ2ODI4MDcz

8. Redfin -
https://www.redfin.com/news/home-price-forecast-decline-2025/

9. ResiClub -

https://www.resiclubanalytics.com/p/housing-market-now-has-500000-more-home-sellers-than-homebuyers-redfin

Realtor.com -
https://cms.nar.realtor/sites/default/files/2025-06/2025-realtors-legislative-meetings-residential-economic-issues-and-trends-forum-danielle-hale-presentation-slides-6-3-2025.pdf?_gl=1*166ceye*_gcl_au*MTUxMjAyMjU3Ny4xNzQ2ODI4MDcz

Ready to Buy or Sell a Home? Here Are 5 Key Factors in Choosing the Right Agent

Mon, 02 Jun 2025 19:08:54 GMT

Navigating the real estate market without guidance is like starting an expedition without a map. Whether you're selling your cherished family home or searching for your dream property, having the right real estate agent by your side can make all the difference.

According to a 2024 report from the National Association of Realtors, agent-represented homes sold for a median price of $435,000, compared to just $380,000 for those sold by owners alone. ¹

But home sellers aren’t the only ones who can benefit. A study by the Consumer Federation of America found that homebuyers can save significantly by working with an agent dedicated to their interests. ²

While it’s easy to see the advantages of working with a real estate professional, it can be challenging to find the right representative whose expertise, service, and terms align with your specific needs. This comprehensive guide presents five factors to consider when choosing a real estate agent who can deliver results while streamlining the process.

Buyer’s Agent vs. Listing Agent: What’s the Difference?

A buyer’s agent represents the interests of the homebuyer. Their role includes helping you find properties that meet your criteria, coordinating viewings, negotiating offers, and guiding you through inspections and closing. They are your advocate throughout the purchasing process.

A listing agent, on the other hand, represents the seller. They are responsible for pricing the home competitively, marketing the property, managing showings, and negotiating with buyers on your behalf. Their job is to sell your home with the best possible terms.

In most cases, homeowners who are selling their current property and buying a new one can work with the same agent for both transactions. This offers convenience and consistency, as your agent will have a full understanding of your timeline, financial goals, and property preferences. However, if you’re relocating to a different city or state, you may need to work with two separate agents—one to list and sell your current home and another with local expertise in your new area to assist with your purchase.

1. Credentials & Reputation

A well-qualified agent brings more than just enthusiasm; they bring training, experience, and a proven track record.

First, check that the agent holds a valid license through your state's real estate commission. Licensed real estate agents must complete state-approved education courses, pass a licensing exam, and stay current with the latest laws and market practices. They are also bound by state regulations and ethical codes, particularly if they are members of the National Association of Realtors. ³

Next, inquire about the agent’s continuing education. Real estate designations and certifications indicate additional training and a commitment to excellence in specific areas of real estate.

When it comes to reputation, don’t hesitate to ask for references and check online reviews. Past clients can provide insight into the agent’s communication style, negotiation skills, and ability to manage complex transactions. Prioritize any feedback you receive from trusted family and friends.

Additionally, take time to visit the agent’s website and social media channels to see if they regularly share useful and relevant real estate information, such as market updates, home buying and selling tips, or neighborhood insights. A well-maintained online presence not only reflects their commitment to staying engaged in the industry but also shows they are a resource for their clients before, during, and after a transaction.

2. Local Market Knowledge

One of the most valuable assets a real estate agent can offer is in-depth knowledge of the local market. Whether you're buying or selling, working with someone who understands the neighborhoods, pricing trends, school districts, amenities, and zoning regulations in your target area can give you a significant edge.

A local market expert can help sellers price their home competitively, attract the right buyers, and highlight community features that add value. For buyers, a locally knowledgeable agent can identify hidden gems, alert you to upcoming developments that may impact property values, and advise on which areas offer the best long-term investment potential.

They also tend to have established relationships with local lenders, inspectors, contractors, and other professionals, which can make the entire process smoother and more efficient. When choosing your agent, ask how long they’ve worked in the area and what insights they can offer about your specific neighborhood or region.

3. Service & Value Proposition

Not all real estate agents offer the same level of service, so it’s important to understand what sets one apart from another. Take time to evaluate an agent’s unique value proposition—what they promise to deliver that others may not. This can help you choose someone whose approach and strengths align with your specific needs.

If you're selling a home, ask for a written copy of their marketing plan. What steps will they take to reach qualified buyers? Find out how they determine pricing and how actively they will communicate with you throughout the transaction.

For buyers, consider how the agent searches for properties, how quickly they can schedule showings, and whether they can help you compete in a competitive market. Do they offer guidance on financing, local insight on neighborhoods, or access to off-market listings?

An effective agent should be able to clearly articulate the value they bring, backed by experience, data, and a commitment to personalized service. Ask for a breakdown of their services upfront to ensure you understand what to expect from the partnership.

4. Terms of Representation

Before committing to an agent, it’s essential to understand the terms of your working relationship. Clarify who will be your primary contact and how and when they will communicate with you throughout the process. The best real estate agents establish clear communication protocols and consistently meet or exceed expectations throughout the relationship.

Most agents will ask you to sign a contract that outlines their duties, your obligations, and the scope of services provided. Take time to review the terms carefully and ask questions.

For sellers, the agreement may include the listing price, compensation terms, and the duration of the contract. ⁴ Buyers typically sign a representation agreement, which confirms the agent is working in their best interest during the home search and purchase process. ⁵

Always thoroughly review any buyer or seller agency agreement for termination clauses and commission obligations before signing. Trustworthy agents are transparent about their compensation structure and willing to explain how it aligns with your goals.

5. Ongoing Support

Exceptional agents continue to provide support long after closing. A top-tier real estate professional offers ongoing support, ensuring you have a trusted resource long after the transaction is complete.

Some agents are willing to provide post-purchase assistance, such as recommending reliable contractors, helping you understand your property tax assessments, or offering periodic home value analyses. For sellers, they may provide advice on reinvestment options or an agent referral if you’re planning to move to a new area.

This continued relationship can be especially valuable if you’re new to the area or plan to buy or sell again in the future. Ask potential agents how they stay in touch with past clients and whether they offer any resources or services to support you after closing. An agent who sees the relationship as long-term is one who genuinely values your trust and satisfaction.

READY TO MAKE YOUR MOVE? LET’S TALK.

Choosing a real estate agent is one of the most important decisions you'll make when buying or selling a home. The right partner can make the process easier to navigate and more rewarding, both financially and emotionally.

If you're looking for an experienced, locally knowledgeable agent who prioritizes clear communication, personalized service, and proven results, we’d love the opportunity to earn your trust.

Schedule a free, no-obligation consultation today to discuss your goals, ask questions, and find out how we can help you navigate your next move with confidence. Let’s turn your real estate goals into a successful reality—together.

Sources:

1. National Association of Realtors -
https://www.nar.realtor/magazine/real-estate-news/fsbos-reach-all-time-low-more-sellers-rely-on-agents

2. Forbes -
https://www.forbes.com/sites/tedknutson/2019/01/14/home-buyer-could-lose-big-by-not-working-with-agent-serving-them-solely-warns-consumer-federation/

3. Investopedia -
https://www.investopedia.com/investing/steps-becoming-real-estate-agent/

4. National Association of Realtors -
https://www.nar.realtor/the-facts/consumer-guide-listing-agreements

5. National Association of Realtors -
https://www.nar.realtor/sites/default/files/2024-08/consumer-guide-written-buyer-agreements-2024-08-24.pdf

Selling Your Home In 2025? Here's What Buyers Want (And How To Deliver)

Mon, 05 May 2025 16:49:34 GMT

Thinking about listing your home in 2025? If so, you're smart to start planning ahead. With housing inventory rising in many market segments, today’s sellers need more than just a “for sale” sign to stand out. ¹

The good news? You can still make a strong impression and command top dollar—if you know what today’s buyers are really looking for.

We’ve outlined six of the top homebuyer priorities in 2025, along with a clear action plan to help you position your property for success. Whether you're weeks or months away from listing, these insights will help you attract serious offers and maximize your return.

BUYER PRIORITY #1: Move-In-Ready Condition

Buyers want homes that are ready to enjoy from day one. In fact, a recent survey found that 94% of buyers said it was either “very important” or “somewhat important” to buy a home that’s move-in ready. ² Properties that feel fresh and well-maintained are far more likely to attract competitive offers.

Seller Action Plan:

Refresh your interior.

This might include painting rooms in neutral, contemporary colors and swapping outdated fixtures for more modern alternatives. We may also recommend that you take down heavy drapery or dated blinds to brighten your space and clean or replace flooring to create a clean and cohesive look.

Fix anything that’s broken.

If something isn’t working quite right, repair it now. Provide maintenance records, if you have them, and consider a pre-listing inspection to identify potential issues early—helping avoid delays or negotiations later. We can advise you on the best course of action given your circumstances and your home’s condition.

Strategically enhance kitchens and bathrooms.

Modern kitchens and bathrooms are a major selling point for many buyers. ³ While you don’t necessarily need a full remodel, smaller updates—like replacing kitchen appliances or retiling a bathroom shower—can make a big difference. At a minimum, ensure all surfaces–-including cabinets, countertops, and floors—are clean and in good condition, and address any grout issues or needed repairs.

Our team can help you identify and prioritize strategic improvements that will maximize your home's appeal and market value. Contact us for a free evaluation!

BUYER PRIORITY #2: Flexible Closing Timelines

Many of today’s buyers are juggling complicated schedules and circumstances, especially if they need to time the sale of their current home with the purchase of their new one. If you are able to offer a flexible closing timeline, it can deliver an advantage.

Seller Action Plan:

Define your ideal timeline and explore your level of flexibility.

We can discuss your goals and expectations for a closing timeline and consider how much flexibility you might be able to offer buyers. This will depend on your specific circumstances, but additional leeway can be helpful

Make a plan to get out of your home quickly if needed.

Some buyers need to move out of their current home quickly or relocate by a certain date to start school or a new job. Therefore, they may require an accelerated closing timeline. These buyers will be particularly interested in finding sellers who are willing and able to accommodate a fast closing. Worried about finding a new home if yours sells quickly? We can help you assess your options. ⁴

Leverage your real estate agent’s negotiation expertise.

Closing dates can be tricky to navigate. As experienced professionals, we can help you work through the details to arrive at a mutually beneficial arrangement for you and the buyer.

Trying to figure out a plan for your move? Schedule a free consultation to discuss your specific selling timeline and explore flexible closing options.

BUYER PRIORITY #3: Assistance & Incentives

The high cost of purchasing a home leaves many homebuyers financially tapped out. Offering strategic assistance and incentives can make your property stand out and attract a larger pool of potential purchasers. That’s why, in a recent survey of real estate agents, the majority recommended offering some type of homebuyer incentive. ⁵

Seller Action Plan:

Consider closing cost assistance.

Closing costs remain a significant barrier for many homebuyers, especially first-timers or those with limited savings. You might cover some of these expenses—such as mortgage fees or the buyer’s agent commission—using proceeds from the sale ⁶ . This type of assistance can make a big difference in helping buyers afford your home.

Evaluate the value of a mortgage rate buydown.

Another option popular with buyers is a temporary or permanent mortgage rate buydown. ⁷ This means that you pay a lump sum upfront to reduce their mortgage rate (and their monthly payments), making a home purchase significantly more affordable for buyers.

Offer an improvement allowance or home warranty.

For homebuyers who are already stretched financially, the cost of home improvements and repairs can be a big concern. One way to alleviate those concerns is to offer a home improvement allowance. For example, you could offer to pay a set amount toward new kitchen appliances or to replace worn carpeting. Another solution is to offer buyers a one-year home warranty from a reputable provider.

The most effective incentive strategies will depend on your specific property and its target buyers. Our team can help you identify creative and impactful options tailored to your home.

BUYER PRIORITY #4: Curb Appeal

A well-maintained and visually appealing exterior, often referred to as "curb appeal," is essential for generating interest and bringing buyers in the door. In fact, 97% of Realtors say that curb appeal is important to buyers, and research indicates that properties with strong curb appeal tend to sell faster and for higher prices. ⁸

Seller Action Plan:

Maintain an immaculate exterior.

Ensure your landscaping is well-maintained while it’s on the market, with your lawn mowed, hedges trimmed, and flower beds weed-free. If this isn’t your strong suit, invest in a professional service. When it comes to your home itself, a welcoming entrance with a clean, freshly painted front door and updated hardware can make a big difference.

Address visible exterior elements.

Inspect and touch up any peeling or faded paint on the siding or trim, and repair or replace any damaged siding or roofing. Check that your walkways and driveway are in good condition and that your outdoor lighting is sufficient and in working order.

Keep things clean.

Thoroughly power wash the siding, walkways, driveway, and any other exterior surfaces to remove dirt, grime, and mildew. Clean all windows and screens, both inside and out, to maximize natural light and improve the overall appearance of your home.

We’re happy to offer specific recommendations to enhance your property's curb appeal and to refer you to landscapers, painters, and other professionals for help.

BUYER PRIORITY #5: Functional Spaces

Today's buyers often prioritize properties that offer flexible and functional living spaces capable of adapting to their evolving needs, ranging from entertaining to remote work. ⁹ This includes the increasing importance of reliable, high-speed internet connectivity, which has become essential for work and school, smart home technology, and overall modern living.

Seller Action Plan:

Showcase versatile spaces to highlight their adaptability.

Stage rooms to demonstrate their potential for various uses, such as a dedicated home office, a guest room that can also serve as a workout space, or a flexible living area that can accommodate a reading nook.

Highlight storage and organization solutions.

Functional living isn’t just about primary spaces—it’s also about smart storage. Showcase built-in shelving, closet systems, and other storage solutions that help keep the home organized and clutter-free. This gives buyers a sense of ease and livability.

Keep connectivity in mind.

Today’s buyers want high-tech capabilities without sacrificing style. ¹⁰ High-speed internet access has become increasingly important, and technology features—like home automation systems and built-in charging stations—offer seamless integration while preserving a clean, modern aesthetic. If your home features any coveted technology features, be sure to highlight them.

Our team can help you stage your home to attract more potential buyers. Reach out for our recommendations!

BUYER PRIORITY #6: Energy Efficiency & Sustainability

With rising utility costs and a focus on environmental responsibility and clean living, buyers are looking for homes with eco-friendly features. ¹¹ A few small changes can help you make the most of that desire and draw in conscious buyers.

Seller Action Plan:

Incorporate and highlight sustainable materials.

Buyers are increasingly drawn to homes that feature eco-conscious design choices. If you’ve used sustainable materials—like bamboo flooring, recycled glass countertops, low-VOC paints, or reclaimed wood accents—make sure to highlight these details. They not only enhance your home’s aesthetic but also signal a thoughtful, environmentally responsible approach to design.

Install energy-efficient features.

While it isn’t always cost-effective to add these features solely to sell your home, if you plan on making any upgrades to windows, systems, or appliances, keep energy efficiency in mind. You may also want to consider upgrades like a smart thermostat that can both help cut utility bills and show potential buyers that your home is loaded with the latest technology.

Take steps to reduce energy loss throughout the home.

Simple upgrades like sealing gaps around doors and windows, adding weather stripping, or insulating the attic can significantly improve a home’s energy efficiency. ¹² These improvements may seem small, but they can lower utility bills and demonstrate to buyers that the home has been well maintained with long-term savings in mind.

We can help you identify the most impactful energy-efficient upgrades and highlight your home’s sustainable features to attract today’s eco-conscious buyers.

Partnering for Success: Your Strategic Advantage in Today's Market

Successfully selling your home in today’s competitive and ever-evolving market requires more than luck—it demands insight, preparation, and expert strategy. By aligning your listing with the priorities of today’s buyers, you’ll position your property to stand out and sell faster for top dollar.

Our team is here to guide you every step of the way. From personalized recommendations and trusted vendor referrals to strategic pricing and marketing, we’re committed to helping you achieve a smooth and profitable sale.

Ready to take the next step? Contact us today for a complimentary home value assessment and customized sales plan designed to make your property shine. Let’s work together to turn your real estate goals into reality!

Sources:

1. The Mortgage Report -
https://themortgagereports.com/111334/monthly-for-sale-home-listings

2. Bright MLS -
https://brightmls.com/article/what-will-homebuyers-want-in-2025

3. Homelight -
https://www.homelight.com/blog/which-renovations-increase-home-value/

4. Homelight -
https://www.homelight.com/blog/buyer-how-to-buy-a-house-while-selling-your-own/

5. Homelight -
https://www.homelight.com/blog/real-estate-top-agent-insights-for-end-of-year-2024/

6. Federal Housing Finance Authority -
https://www.fhfa.gov/blog/insights/opening-new-doors-overcoming-obstacles-to-attain-affordable-homeownership

7. LendingTree -
https://www.lendingtree.com/home/mortgage/buydown/

8. National Association of Realtors -
https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact-report-outdoor-features#

9. Yahoo -
https://www.yahoo.com/lifestyle/home-trends-buyers-looking-2025-151535883.html

10. Apartment Therapy -
https://www.apartmenttherapy.com/2025-house-style-trend-prediction-real-estate-37448456

11. National Association of Realtors -
https://www.nar.realtor/magazine/real-estate-news/sales-marketing/13-features-new-home-buyers-say-are-essential-desirable

12. EnergyStar -
https://www.energystar.gov/saveathome/seal_insulate/why-seal-and-insulate

5 ROADBLOCKS TO AFFORDABLE HOMEOWNERSHIP (AND WAYS TO MOVE PAST THEM)

Fri, 04 Apr 2025 17:19:32 GMT

Dreaming of a new home but feeling priced out? You’re not alone! According to a recent survey by Bankrate, 78% of aspiring homebuyers cite affordability issues as their primary deterrent. ¹

According to data from the U.S. Census Bureau, home prices have risen around 32% since the pandemic, and elevated mortgage rates have caused monthly payments to balloon. ²

Despite the challenges, homeownership remains a top goal for many Americans. Fortunately, there are ways to turn your dreams of homeownership into reality! In this guide, we’ll explore five common roadblocks to affordable homeownership and actionable solutions to help you overcome them. Let’s break down those barriers so you can finally get the home of your dreams!

ROADBLOCK #1: I Don't Have Enough Saved For A Down Payment

Many prospective buyers believe they need a 20% down payment to buy a home. But in reality, most conventional loans require just 3-5%. And, for buyers who qualify, there are a number of programs and mortgage options that can make a home purchase more accessible.

Down Payment Assistance Programs (DPAs)

DPAs offer grants, loans, and other financial assistance to help with your down payment and closing costs. Many programs are specifically designed for first-time buyers, but there are also options for repeat homebuyers. ^3,4 These programs can significantly reduce the upfront costs of buying a home. We can help you find down payment assistance programs. Contact us to find out if you may qualify!

0% Down Government-Backed Mortgages
If you qualify for certain government-backed mortgages, you may not need to come up with a down payment at all. ⁵ While these loans, offered by the Department of Veterans Affairs (VA) and the United States Department of Agriculture (USDA), are not available to all buyers, they offer numerous benefits, including competitive rates and no down payment requirement.

VA loans are available to U.S. military members, including veterans and surviving spouses. ⁶ They do not require a down payment, though the buyer must pay a fee at closing.
USDA loans are available to moderate to low-income buyers in certain rural areas. ⁷ They do not require a down payment.

Family Gifts

Did you know that 25% of first-time buyers in 2024 reported receiving down payment gifts or loans from family members or friends? ⁸ In fact, a growing number of Baby Boomers are choosing to gift all or a portion of their heirs’ inheritance before they pass away. ⁹ Some financial advisors even recommend this as part of their client’s estate plan. Just be sure to follow the proper procedures to document these types of gifts, if you’re fortunate enough to receive them. ¹⁰

Existing Home Equity

Due to record-high real estate gains over the past few years, if you already own a home, you may have more equity than you realize. ¹¹ This equity (or difference between your home’s current value and what you owe on your mortgage) could go toward a down payment on a new property. Wondering how much equity you have in your current home? Reach out for a free home value assessment.

ROADBLOCK #2: I Can't Afford the Monthly Payment

Worried about those monthly mortgage payments? High interest rates and rising costs can make mortgage payments feel daunting. But there are strategies to reduce your monthly burden.

Explore Alternative Mortgage Terms

The traditional 30-year fixed-rate mortgage isn’t the only kind of loan out there. Options like adjustable-rate mortgages (ARMs) or hybrid mortgages can offer lower initial rates. ^{12, 13} Some buyers opt for these if they plan to sell the home before the initial rate term ends or refinance down the road. A lower mortgage rate can significantly lower your monthly payment. However, it’s important to understand the risks involved so you can weigh the pros and cons before deciding.

Consider Discount Points

Buying discount points—a process also known as a permanent rate buy-down—is another great way to limit your monthly costs. ¹⁴ Essentially, this strategy involves prepaying a fee to lower your interest rate across the life of your loan. If a seller is especially motivated, they may be willing to pay for discount points for the buyer to close the deal on a home. In some cases, we can help you negotiate these types of seller concessions.

Ask About Seller Financing or an Assumable Mortgage

Here are two less common options you might not have considered: ¹⁵

Seller Financing – The seller acts as the bank, offering you potentially better terms than a traditional mortgage.
Assumable Mortgage – You take over the seller's existing mortgage with a lower interest rate than what's currently offered by lenders.

Note that these options may or may not be possible for you depending on the seller, the home, and the type of mortgage, but they are worth exploring—and we can help.

Co-Buy with Family or Friends

A growing number of homebuyers are returning to multigenerational living or are even buying a home with friends. ¹⁶ This arrangement enables you to cut costs significantly while sharing both the time and financial responsibilities of homeownership. We can help you search for homes that are well suited for your group.

Purchase a Home with Income Potential

You can generate extra income to offset your mortgage payments by purchasing a duplex, renting out a room or an accessory dwelling unit (like a garage apartment), or even listing your property on Airbnb. We work with investors and can help you find a property to meet your goals.

ROADBLOCK #3: I Can't Qualify for a Mortgage

Qualifying for a mortgage can be a stressful process, especially if you have previously faced financial challenges. But you might be pleasantly surprised—there’s a lot you can do to improve your chances of success.

Boost Your Credit Score

Your credit score is foundational when it comes to getting a mortgage. ¹⁷ A higher score typically means a lower interest rate and more options. Take steps to improve your credit by paying bills on time, reducing debt, and checking your credit report for errors. Even a small improvement in your score can make a big difference. Pro tip: Avoid opening or closing credit cards or taking out other loans (like car or personal loans) if you plan to start home shopping in the near future.

Lower Your Debt-to-Income Ratio

Lenders want to see that you can comfortably handle your debts. They assess this by calculating your debt-to-income ratio: your total monthly loan payments (including mortgage, car loans, student loans, and credit cards) divided by your gross monthly salary. ¹⁸ Paying down other types of debt, like your car loan, will leave more space in your budget for a monthly mortgage payment.

Apply for an FHA Loan

FHA loans are designed for buyers with less access to savings, as well as those with lower credit scores. ¹⁹ Down payments on FHA mortgages can be as low as 3.5% with a credit score of 580 or above, or 10% with a credit score of 500 or above. Generally, the buyer’s debt-to-income ratio must be below 43%, with no more than 31% of income going to mortgage payments. These loans do come with some additional requirements, such as mortgage insurance (including an upfront premium of 1.75% at closing), a pre-purchase inspection, and borrowing limits that vary based on geographic area.

Consider Getting a Co-Signer

Having a co-signer with a stronger credit history or more income can strengthen your application, but make sure you (and they) understand the risks and responsibilities involved.

ROADBLOCK #4: I Can't Find a Home in My Price Range

Feeling frustrated by the lack of affordable homes on the market? Unfortunately, this is a common problem. ²⁰ But with a little flexibility and guidance, it’s possible to find a great property to fit most budgets.

Expand Your Home Search

You may need to search outside your target area. In many markets, home prices vary drastically within the span of miles. ²¹ Being open to exploring alternative neighborhoods or those farther from town can open up surprising possibilities. As local market experts, we can help you discover hidden gems and up-and-coming neighborhoods. Reach out for a complimentary consultation.

Revisit Your Must-Haves

Take a close look at your "must-have" list. Are there any features you can compromise on to expand your options and find a more affordable property? For example, do you really need two bathrooms, or could you settle for a single bathroom with space to add a second one in the future? These types of compromises can sometimes shave tens of thousands off your purchase price. We’re happy to offer our thoughts on the features that you’re likely to find within your budget.

Consider Fixer-Uppers

Looking to cut purchase costs? Don't shy away from homes that need a little TLC. ²² Fixer-uppers usually come with a lower price tag, and you can personalize the renovations to your taste. Just be sure to factor in the cost of repairs and renovations when determining your budget—and to be realistic about your own home repair skills! If you’re interested in exploring fixer-upper opportunities, we can help you identify properties with potential and connect you with reliable contractors.

ROADBLOCK #5: I'm Overwhelmed by the Process

Buying a home can feel like navigating a maze. Between searching for properties, securing financing, negotiating contracts, and handling paperwork, the process can quickly become overwhelming. But you don’t have to do it alone! We can simplify every step, helping you stay organized, informed, and confident in your decisions.

Find the Right Home Faster

The sheer number of listings on the market can be daunting, and homes that meet your criteria may not always be easy to find. Our team can:

Save you time by narrowing down homes that fit your budget, needs, and lifestyle.
Get you access to off-market and pre-listing properties that aren’t widely advertised.
Provide insights on local market trends to help you make a competitive offer.

Navigate Financing & Paperwork With Ease

Real estate transactions involve complex contracts, legal documents, and lender requirements. One misstep could delay your purchase—or even cost you your dream home. We will:

Help you find down payment assistance or grants that you may not be aware of.
Explain mortgage options and connect you with reputable lenders.
Ensure all purchase documents are accurate and deadlines are met.

Score the Best Deal

Many buyers worry about overpaying for a home or getting stuck with costly repairs, but we know how to:

Use expert negotiation tactics to secure the best possible price.
Identify hidden costs so you aren’t caught off guard at closing.
Negotiate repairs or seller concessions to save you money.

Streamline Inspections & Closing

The home inspection and closing process can bring last-minute surprises. We avoid these by:

Helping you interpret inspection reports and advising on necessary repairs.
Coordinating with lenders, appraisers, and title companies to keep everything on track.
Preparing you for closing day so you know exactly what to expect.

Benefit From Ongoing Support

Our relationship doesn’t end once you get the keys. We always go the extra mile to:

Recommend trusted contractors for renovations and repairs.
Help you make strategic upgrades through complimentary real estate consultations.
Provide market updates in case you want to refinance or sell later.

The bottom line? You don’t have to navigate this process alone. When you work with us, you’ll have a trusted partner to handle the complexities, answer your questions, and ensure everything goes smoothly from start to finish.

LET’S TURN ROADBLOCKS INTO STEPPING STONES TOWARD YOUR DREAM HOME

Buying a home may come with challenges, but none of them are impossible to overcome. With the right strategies, resources, and expert guidance, you can navigate these obstacles with ease.

Whether you're worried about saving for a down payment, qualifying for a mortgage, or finding the right home in your price range, there are solutions available to help you move forward. The key is to stay informed, explore all your options, and work with professionals who can guide you every step of the way.

Our team is here to help you find the right home, secure the best financing, and negotiate the best deal—without the stress and uncertainty of doing it all yourself. Let’s turn your homeownership dreams into reality. Contact us today to get started!

SOURCES:

1. Bankrate -
https://www.bankrate.com/mortgages/home-affordability-report/#unaffordability

2. Nerdwallet -
https://www.nerdwallet.com/article/mortgages/2025-home-buyer-report

3. Bankrate -
https://www.bankrate.com/mortgages/first-time-homebuyer-grants/#types

4. Down Payment Resource -
https://downpaymentresource.com/

5. Bankrate -
https://www.bankrate.com/mortgages/types-of-mortgages/#government-backed

6. Bankrate -
https://www.bankrate.com/mortgages/understanding-va-loans/

7. Bankrate -
https://www.bankrate.com/mortgages/what-is-a-usda-loan/

8. National Association of Realtors -
https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers

9. Business Insider -
https://www.businessinsider.com/boomers-not-waiting-pass-inheritance-wealth-transfer-millennials-need-it-2024-7

10. Experian -
https://www.experian.com/blogs/ask-experian/down-payment-gift-rules/

11. Bankrate -
https://www.bankrate.com/home-equity/homeowner-equity-data-and-statistics/

12. Nerdwallet -
https://www.nerdwallet.com/article/mortgages/adjustable-rate-mortgage-arm

13. Lending Tree -
https://www.lendingtree.com/home/mortgage/what-is-a-hybrid-mortgage/

14. Investopedia -
https://www.investopedia.com/terms/d/discountpoints.asp

15. Lending Tree -
https://www.lendingtree.com/home/mortgage/what-to-know-about-owner-financing/

16. National Association of Realtors -
https://www.nar.realtor/blogs/economists-outlook/home-for-the-holidays-the-rise-of-multi-generational-home-buying

17. Consumer Financial Protection Bureau -
https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/

18. Nerdwallet -
https://www.nerdwallet.com/article/mortgages/debt-income-ratio-mortgage

19. Bankrate -
https://www.bankrate.com/mortgages/what-is-an-fha-loan/#requirements

20. Bankrate -
https://www.bankrate.com/real-estate/low-inventory-housing-shortage/

21. Realtor -
https://www.realtor.com/advice/buy/priced-out-of-dream-neighborhood-cheaper-alternative/

22. This Old House -
https://www.thisoldhouse.com/buying/21017198/buying-a-fixer-upper-house

First Time Home Buyer Grant Programs

Wed, 26 Mar 2025 21:16:52 GMT

Unlock Your Dream Home: Pennsylvania First-Time Home Buyer Grants You Need to Know

Dreaming of owning your own slice of Pennsylvania? If you're a first-time home buyer, that dream might be closer than you think, thanks to some fantastic grant programs. Navigating the real estate market can be daunting, especially when it comes to finances. But don't worry, we're here to break down two key programs that can significantly ease the burden: the Pennsylvania Housing Finance Agency (PHFA) programs and the First Front Door (FFD) grant.

Why Grants are a Game-Changer for First-Time Buyers

Let's face it: the down payment and closing costs are often the biggest hurdles for first-time buyers. Grants offer free money (yes, free!) that you don't have to repay. This can drastically reduce the amount you need to save and make homeownership more attainable.

Pennsylvania Housing Finance Agency (PHFA) Programs: Your Gateway to Homeownership

PHFA offers a range of programs designed to assist first-time buyers. Here's a glimpse of what they provide:

PHFA's Keystone Advantage Assistance Loan: This program provides a second loan to help with down payment and closing costs. The amount you can borrow depends on your income and the location of the property. While technically a loan, it's often offered with favorable terms and can be combined with other grant programs.
PHFA's Keystone Home Loan: This is PHFA's flagship first-time home buyer program. It offers competitive interest rates and flexible terms. To qualify, you generally need to meet income limits, credit score requirements, and complete a homebuyer counseling course.
PHFA's ACCESS Down Payment and Closing Cost Assistance: This program offers assistance to individuals with disabilities and those purchasing a home in a designated revitalization area.

Key things to remember about PHFA:

PHFA defines a first-time buyer as someone who hasn't owned a primary residence within the past three years.
Income and purchase price limits apply, and these vary by county.
You'll need to work with a PHFA-approved lender.
Homebuyer counseling is a requirement.

First Front Door (FFD): A Sweet Boost to Your Down Payment

The First Front Door (FFD) program, offered through the Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh), is another fantastic resource for first-time buyers.

Matching Funds: FFD provides matching funds, typically on a 3:1 basis. This means for every $1 you contribute, you could receive $3 in grant funds, up to a maximum grant amount.
Down Payment and Closing Costs: The grant can be used for down payment and eligible closing costs.
Income Limits: Like PHFA, FFD has income limits that vary by location.
Homebuyer Counseling: Participation in a homebuyer counseling program is mandatory.

Important Considerations for FFD:

Funds are limited and distributed on a first-come, first-served basis, so act quickly!
You'll need to apply through a participating FHLBank Pittsburgh member bank.
FFD is often used in conjunction with PHFA programs.

Steps to Take:

Get Pre-Approved: Start by getting pre-approved for a mortgage. This will give you a clear idea of how much you can afford.
Contact a PHFA-Approved Lender: A qualified lender can guide you through the PHFA process and help you determine your eligibility.
Find a Participating FHLBank Pittsburgh Member Bank: To access the FFD program, you'll need to work with a participating bank.
Complete Homebuyer Counseling: This is a crucial step for both PHFA and FFD.
Gather Your Documentation: Be prepared to provide proof of income, credit history, and other required documents.
Act Quickly: Grant funds can be limited, so don't delay!

Don't Let This Opportunity Pass You By!

Navigating the world of first-time home buyer grants can be complex, but the rewards are well worth it. By taking advantage of these programs you can significantly reduce your upfront costs and make your dream of homeownership a reality. Give us a call today for full details and to see if you qualify!!!

Disclaimer: Grant programs and eligibility requirements are subject to change. Always verify the most up-to-date information with PHFA, FHLBank Pittsburgh, and your lender. This blog post is for informational purposes only and does not constitute financial advice. Consult with a qualified professional for personalized guidance.

Home-Related Tax Deductions

Tue, 11 Mar 2025 18:08:51 GMT

Tax season. Just the words can send shivers down your spine. But if you’re a homeowner, there’s a silver lining: potential savings!

You’ve probably heard that you can deduct the interest you pay on your mortgage — but did you know there are many other ways homeowners can reduce their tax burden?

Before you start your return, read this post for common home-related tax deductions, eligibility requirements, and tips on how to maximize your savings.

Home-Related Tax Savings: The Basics

Before we get into the details, it’s important to define some important terms to set the stage.

Tax Deductions vs. Tax Credits

Most tax savings opportunities for homeowners come in the form of tax deductions. Deductions work by reducing your taxable income — essentially, the government allows you to subtract certain expenses from your total income before calculating how much you owe in taxes. This means a lower taxable income and, ultimately, a lower tax bill. For example, if you earn $50,000 and claim tax deductions worth $5,000, you will only pay taxes on $45,000.

Tax credits, on the other hand, directly reduce your tax bill, rather than your taxable income. That means that if you owe $10,000 in taxes and claim a tax credit worth $2,000, your tax bill will be reduced to $8,000.

Pro Tip: Meticulous record-keeping is crucial. Keep detailed records of all potentially eligible expenses. This will make tax time much smoother and ensure you don’t miss out on any deductions.

Itemized Deductions vs. Standard Deduction

To understand what deductions apply to your situation, it’s important to know the difference between itemized deductions and the standard deduction . The standard deduction is a fixed dollar amount that you can subtract from your adjusted gross income (AGI) regardless of your actual expenses. Itemized deductions, on the other hand, are specific expenses that you can deduct, such as mortgage interest, property taxes, and charitable contributions.

You’ll need to choose whether to itemize or take the standard deduction. Generally, you should itemize if your total itemized deductions exceed the standard deduction. Most home-related deductions are only applicable if you choose to itemize.

2025 Standard Deduction Amounts

Single and Married Filing Separately: $15,000
Head of Household: $22,500
Married Filing Jointly: $30,000 1

Source: IRS

Key Home-Related Tax Deductions and Credits

If you do choose to itemize your taxes, common tax deductions and credits available to homeowners include:

Mortgage Interest Deduction

No one likes to pay mortgage interest, but the good news is that you can deduct interest used to buy or build your primary residence or a second home. However, there are certain limitations that you need to be aware of. 2

Mortgage size: If you file your taxes single or married filing jointly, you can deduct interest paid on the first $750,000 of mortgage debt 3 for your primary residence or second home. If you are married but choose to file separately, that limit drops to the first $375,000 (for each partner).

Requirements:

The mortgage interest deduction only applies if your home is collateral for the loan (which is standard).
To qualify as a primary home, your property must have sleeping, cooking, and toilet facilities.
If you are deducting mortgage interest on a second home, you don’t need to use the home during the year; however, if you rent it out, you must spend at least 14 days or more than 10% of the days you rented it out (whichever is longer).

So, how do you calculate how much mortgage interest you’ve paid?

The amount of interest you pay each year will vary, even if your interest rate is fixed — that’s because mortgage amortization 3 means that you pay more interest earlier in the mortgage’s term, and more principal closer to the end. Each year, your lender will send you (and the IRS) a copy of Form 1098 , which shows how much you paid in interest. 4

For example, let’s say you are a married homeowner filing jointly with a mortgage for $400,000. If your Form 1098 shows that you paid $25,000 in mortgage interest in 2025, you could deduct the full $25,000 from your 2025 household income.

Real Estate Taxes (Property Taxes)

You can deduct state and local real estate taxes (property taxes) you pay on your primary residence or second home. However, it’s crucial to understand what qualifies. Only property taxes imposed for “general public welfare” are deductible 5 —if your town imposes a special assessment for a project that directly improves your property value, like a sewer line, that is not deductible. Furthermore, fees for local services, such as trash collection or sewer maintenance, are not deductible, even though your town may list them on the same bill as your property taxes.

There’s also a limit: the 2017 Tax Cuts and Jobs Act imposed a $10,000 cap on the total amount of state and local taxes (SALT) 6 you can deduct. This includes state and local income tax (or sales tax) as well as property taxes.

Finally, be aware that the amount you deduct must match the amount actually paid to the tax authority.7 This might differ from what you put into escrow if you pay property taxes through your mortgage lender. Typically, the amount your lender paid to your tax authority is listed on Form 1098.

Home Equity Loan Interest

You can deduct the interest paid on home equity loans or home equity lines of credit, but with a significant caveat. Since 2017, that interest is only deductible if the loan proceeds are used to buy, build, or substantially improve 3 your primary residence or second home, and the loan is secured by the home.

If you use the home equity loan for other purposes, such as a vacation, debt consolidation, or purchasing a car, the interest is generally not deductible. If you use part of the loan or line of credit for eligible purchases, and part for non-eligible purchases, only interest incurred on the portion used for eligible spending is deductible.

Loan interest is also not deductible if the funds are used for home improvement projects or repairs that do not “substantially improve” your home. Smaller projects, like repainting or new cabinets, likely do not qualify. However, projects like building an addition, a full kitchen remodel, or installing a new roof should qualify as substantial improvements.

It’s also important to note that home equity loan and HELOC interest rate deductions are subject to the same upper limits 3 as mortgages (and are added together with your mortgage for calculation purposes). For example, if you have a $500,000 mortgage and a $300,000 home equity line of credit—which together exceed the $750,000 limit for a married couple—you would only be able to deduct interest paid on the first $750,000 of those combined loans.

Home Improvement Expenses

You can’t usually deduct home improvement expenses directly.9 However, the money you spend on capital improvements (improvements that increase your home’s value) can help reduce your tax bill later. These expenses are added to your home’s “cost basis,” 10 which reduces your capital gains tax when you eventually sell the house. Think of it this way: by keeping records of your home improvements, you’re essentially increasing the “price” you’re considered to have paid for your home, thus lowering your profit when you sell.

It’s important to note that not all projects qualify as capital improvement. Basic repairs and updates likely won’t qualify, while major additions and landscaping likely will (the considerations are the same as those used to determine whether home equity loan interest is deductible).

Beyond capital improvement, there are a few specific categories of home improvement that are deductible, including work on home offices (which is subject to specific limitations) and certain modifications for medical/accessibility reasons. 11

Energy-Efficient and Clean Energy Tax Credits

Certain energy-efficient home improvements can qualify you for valuable tax credits. Unlike deductions, which reduce your taxable income, tax credits directly reduce your tax bill, making them even more beneficial.

For qualifying energy efficiency expenses in the 2024 tax year 12 , homeowners can claim up to 30% of qualified expenses on their federal tax return, with a maximum credit of $3,200.13 However, some qualifying expenses, like new exterior doors and windows, come with their own maximum credit limits, so it’s essential to check the specific rules.

Another option is the Residential Clean Energy Tax Credit, which offers a 30% credit for the cost of installing renewable energy systems, such as solar panels, on your primary residence or a second home that you use part-time and don’t rent out. 13 Many states also offer their own tax deductions, rebates, or credits related to energy efficiency and clean energy, so be sure to investigate what’s available in your state.

Selling Your Home and Taxes

When you sell your home, the difference between the selling price and what you originally paid for it (plus any major improvements) is called your capital gain. Think of it as your profit from the sale. Let’s walk through a simple example:

Imagine you bought your home for $200,000. Over the years, you invested in some significant upgrades, like a kitchen remodel ($30,000), a new roof ($15,000), and landscaping ($5,000). These are called “capital improvements,” and they increase your home’s “cost basis”—essentially, what the IRS considers you to have invested in the property. In this case, your adjusted cost basis would be $250,000 ($200,000 original price + $50,000 improvements).

Now, let’s say you sell your home for $350,000. Your capital gain would be $100,000 ($350,000 selling price – $250,000 adjusted cost basis).

Capital Gains Exclusion

The good news is that the IRS allows you to exclude a significant portion of your capital gain from taxation! 14 If you’re single, you can exclude up to $250,000, and if you’re married filing jointly, you can exclude up to $500,000. To qualify for this exclusion, you need to have owned and used the home as your primary residence for at least two out of the five years before the sale. This is a key factor to consider when deciding how long you plan to live in a home.

Essentially, this exclusion means that, in many cases, homeowners won’t owe any capital gains tax when they sell their primary residence. It’s a valuable tax benefit that can significantly impact your finances. Keep good records of your purchase price and any capital improvements you make to ensure you can accurately calculate your capital gain and take full advantage of the exclusion when you sell.

Record-Keeping Tips for Homeowners

Organized records are essential for taking advantage of tax deductions and credits. Keep all relevant documents, such as mortgage statements, property tax bills, and receipts for home improvements, readily accessible.15 It’s wise to keep both physical and digital copies (scan and save everything!). Store physical copies securely, perhaps in a safe deposit box. Keep all home-related records for as long as you own the home, plus at least three years after you file your tax returns for the year of the sale.

Conclusion

Homeownership offers numerous opportunities to save on taxes. From mortgage interest and property taxes to energy-efficient upgrades and capital gains exclusions, understanding these deductions and credits can significantly reduce your tax burden. Remember, this information is for general guidance only. Consulting with a qualified tax professional is invaluable for personalized advice.

Have questions about real estate or need a referral to a trusted tax advisor? Contact us today!

Note: This information is intended for general guidance only. Tax regulations are subject to change.

Sources:

4 Home Remodeling Projects with the Highest ROI

Fri, 07 Feb 2025 01:51:24 GMT

Ask any homeowner about what they would like to change about their home, and most will say, “How much time do you have?

Home improvements (cue Tim Allen) or home remodeling projects can stem from a variety of motivations, like preparing your home to put on the market, adding space for a growing family, addressing outdated features or aesthetics, or fixing structural/functional issues with the home.

However, when it comes to home remodeling projects, too many people assume their project will proportionally increase the value of their home. Few actually consider the complete scope of return on investment (ROI), taking into account not only potential impact on resale value but also the total costs of time, labor, and materials. Some renovations may provide more “quality of life” ROI by improving comfort and aesthetics without significantly impacting resale value, while others can deliver notable financial returns.

Whether you’re looking to upgrade your living space, increase the equity of your home, or trying to make some quick changes to improve your resale price, here are four remodeling projects with the highest ROI and some tips on how to get them done.

Top 4 Home Remodeling Projects with the Highest ROI

Before diving into specific projects, it’s important to understand how the data supporting these ROI estimates was gathered. This article references findings from the 2024 Cost vs. Value Report conducted by Zonda Media, a reputable research firm in the real estate and construction industries. The report’s ROI figures are based on national averages for both the cost of materials and labor, which means that regional differences may lead to variations in actual returns.

1. Garage Door Replacement

Job Cost: $4,513
Resale Value: $8,751
ROI: 193.9%

Replacing an old garage door is one of the simplest ways to dramatically boost your home’s curb appeal—and it happens to deliver the highest ROI of any remodeling project. The impact is largely due to the prominent visual space a garage door occupies on a home’s exterior. A sleek, modern garage door can make your entire facade look fresher and more attractive to buyers.

Garage doors with the highest ROI include insulated steel doors with modern paneling, custom carriage-style doors, and those featuring windows or decorative hardware. These options not only enhance the home’s exterior aesthetics but also improve functionality and energy efficiency.

2. Steel Entry Door Replacement

Job Cost: $2,355
Resale Value: $4,430
 ROI: 188.1%

Upgrading to a steel entry door is a simple yet impactful change that can drastically improve both the look and energy efficiency of your home. Steel doors cost less than wood ones, giving you a cost effective way to make a big impact on the curb appeal of a home, without sacrificing performance, life span, or durability.

Why It Works:

Cost-Effective Curb Appeal: Steel doors are less expensive than wood but provide a similar aesthetic boost. This makes them a budget-friendly way to enhance a home’s exterior.
Energy Efficiency: Many steel doors come with insulating cores, which can help keep your home comfortable year-round and lower energy bills.
Increased Security: Steel doors are harder to break into, providing an added layer of safety that appeals to security-conscious buyers.

3. Manufactured Stone Veneer

Job Cost: $11,287
Resale Value: $17,291
ROI: 153.2%

Manufactured stone veneer (MSV) is a high-ROI project because it delivers a striking visual upgrade at a relatively moderate cost. MSV is an artificial cladding material designed to mimic the look of natural stone, making it a cost-effective way to add texture and sophistication to your home’s exterior.

Why It Works:

Strong Visual Impact: Stone veneers add depth and elegance, creating an upscale appearance that can significantly boost curb appeal.
Durability and Low Maintenance: Unlike natural stone, MSV is lightweight, easier to install, and resistant to wear and tear.
Perceived Value: Even though it’s a faux material, MSV adds an air of luxury and craftsmanship that can make your home more appealing to buyers.

Pro Tip: Use manufactured stone veneer to accentuate specific areas, such as around the entryway or along the lower portion of the facade, for maximum visual impact without overspending.

4. Minor Kitchen Remodel (Midrange)

Job Cost: $27,492
Resale Value: $26,406
ROI: 96.1%

According to Homelight’s “Top Agent Insights End of Year 2024 Report”, “88% of agents say that upgraded kitchens and appliances are one of the best selling points for homes”--a significant increase from the previous year. https://homelightblog.wpengine.com/wp-content/uploads/2024/12/homelight-top-agent-insights-end-of-year-2024-report.pdf

The trick to ROI with a kitchen remodel is the budget, and how you decide to balance what to upgrade, the quality of materials, and how much to work within the existing layout. For example, you can make a big impact with less expense if you keep your current cabinet boxes but upgrade the doors and hardware. However, if you strike that balance, you can recoup much of your investment. If you’re looking to sell, an updated kitchen will appeal to buyers, which can also help your home stand out and sell faster.

Why It Works:

High Buyer Interest: Kitchens are a focal point for most buyers, so even modest improvements can make a significant impact.
Affordable Upgrades: By focusing on midrange materials—such as quartz countertops, midrange appliances, and refaced cabinets—you can keep costs manageable while still delivering a fresh look.
By keeping the existing layout and avoiding costly structural changes, you can modernize your kitchen while keeping costs down.

Key Takeaways for Homeowners

7 out of the 10 best ROI projects all have to do with improvements to the exterior of your home, which makes one thing very clear: Boosting the curb appeal of your home in a cost-effective manner will give you the best ROI if you’re thinking about selling this year.

If you look at the current housing market, you can start to see why that is. In the post-pandemic frenzy, buyers had to accept whatever they could find. However, housing inventory has increased over the last couple of years, giving buyers more options. Additionally, due to high-interest rates and affordability issues, the current market favors older, move-up home buyers who are sitting on equity, and these buyers can afford to be pickier about the home they buy.

You can see these trends play out in the “Top Agent Insights End of Year 2024 Report” conducted by HomeLight:

Given these trends, it’s no wonder that the remodeling projects with the best ROI are those that make the home stand out from other homes in the area and leave a strong impression with potential buyers.

Conversely, the projects with the lowest ROI involve major remodels or upscale materials. Anytime you alter the footprint of a home—such as by moving walls or adding square footage—you’ll incur higher costs and lower returns. Unless you’re a general contractor or a skilled DIYer, these high-end renovations typically aren’t worth it from a purely financial perspective. The one caveat is if you’re in a market where high-end appliances and materials are the rule not the exception.

How to Get Started on a Remodeling Project

Starting a remodeling project can feel overwhelming. Here’s how to set yourself up for success:

1. Outline Your Project Goals
Before you dive into the nitty-gritty of remodeling, take a step back and clarify what you hope to achieve.

Are you remodeling to improve aesthetics? To improve functionality or comfort for your family? To prepare your home for the market or boost your resale value? Is it an essential repair? After you decide on why you’re doing it, you can take a step back and decide what is worth the cost to you.

2. Get inspired: Take time to gather ideas and give shape to your vision. Whether you're updating a single room or tackling a whole-house remodel, these resources can inspire you:

Houzz – A go-to platform for home remodeling ideas, complete with photos, product links, and even local contractor recommendations.
Pinterest – Create mood boards for different rooms by pinning your favorite designs and layouts. You can also add '-pinterest' to Google searches to find more targeted boards and collections of remodeling ideas on Pinterest.
This Old House – Packed with articles, videos, and guides on home renovation projects, from DIY fixes to large-scale remodels.
YouTube Channels: Follow popular home renovation YouTubers who share real-life projects, product reviews, and practical tips.
Visit Local Showrooms: You can visit the showrooms or warehouses from local manufactures for ideas on fixtures, cabinetry, and counter tops.
Open Houses - Stop by open houses in your area to get a feel for what’s popular and what other homeowners have done.
Local Remodeling / Contractor Websites: Many will post galleries and before/after images of their renovations, and these galleries can be a goldmine for practical remodeling ideas!

3. Prioritize your wants vs. needs: Once you’ve gathered ideas, it’s time to separate the essentials from the extras.

Must-Haves: These are the non-negotiable items—structural fixes, code-compliance upgrades, or critical repairs.
Nice-to-Haves: These are aesthetic choices or features that you’d like to include if your budget allows.A prioritized list will help you make tough decisions if costs start to climb or timelines get tight.

4. Create a scope and timeline: Clearly defining what’s included (and excluded) in your remodel is critical for staying on schedule and within budget.

What’s Included: Are you only updating finishes and fixtures, or are you changing the layout and moving walls?
Project Phases: If you’re remodeling multiple areas, consider breaking the project into phases to manage timelines more effectively.
Expected Timelines: Be realistic about how long the project will take, especially if you’re working around major life events or seasonal weather.

5. Set a realistic budget: Start by researching the typical costs for your specific type of remodeling project in your area. Resources like Remodeling Magazine’s Cost vs. Value Report, HomeAdvisor, and NAHB provide national and regional averages for popular renovations like kitchens, bathrooms, and additions.

6. Include a Contingency Fund: Even with thorough planning, unexpected costs seem to always arise. Many experts recommend setting aside 15% - 30% of your total budget for contingencies.

7. Research contractors & Get Multiple Quotes: If you're hiring contractors, request at least three detailed quotes to compare prices and scope of work. Make sure to clarify what’s included in each quote to avoid misunderstandings. And use your checklist below for some tips on hiring a contractor!

Checklist for Hiring a Contractor

Finding the right contractor is crucial for a successful remodeling project. Here’s a quick checklist to help you hire the right professional:

Get recommendations from friends, family, neighbors, and your real estate agent. Word of mouth is one of the most reliable ways to find a trusted contractor. Ask people you trust about their experiences and if they would hire the contractor again. After you have a recommendation, you can also search for reviews online.
Check credentials, licensing, and insurance. Verify that the contractor is licensed to work in your state. Most states have an online database for checking contractor licenses. You can also look for contractors certified by reputable organizations, such as the National Association of the Remodeling Industry (NARI).
Review past projects and ask for client references. Ask to see a portfolio of previous projects similar to yours. Pay attention to the quality of work and whether their style aligns with your vision.
Request detailed bids from multiple contractors. Ask for written estimates that break down costs into categories such as labor, materials, permits, and any additional fees. Compare bids carefully to ensure all contractors are quoting on the same scope of work.
Ensure the contract includes a clear scope of work, timeline, and payment terms.
Check references - A reputable contractor should have no issue providing references. Contact past clients and ask about their experience.
Avoid red flags
Unusually Low Bids: If a bid is significantly lower than others, it could indicate corner-cutting or hidden costs.
Pressure to Pay Upfront: A small deposit is normal, but never pay the full amount before work begins.
Lack of Written Contract: Never agree to verbal agreements only.
Poor Communication: If a contractor is difficult to reach or dismissive during the bidding process, this may continue during the project.

Conclusion

Whether you’re updating your home to sell or simply want to enjoy a more modern space, focusing on high-ROI projects is a smart strategy. From replacing your garage door to enhancing your home’s exterior with stone veneer, these upgrades can boost both your home’s value and appeal.

Curious about what features are popular in your neighborhood? Thinking of moving and wondering what remodeling projects, if any, you should do before listing? Want recommendations on contractors? I’m happy to help!

The 2025 Real Estate Report

Tue, 07 Jan 2025 22:05:47 GMT

Experts Predict Home Values to Increase 1.5% to 3.6% in 2025.

Top housing experts and economists give a glimpse of what mortgage rates, home values and the national real estate market will do in 2025.

Key Takeaways

Mortgages are forecasted to remain higher for longer; but there are things you can do to lower your rate.
Home values are predicted to increase incrementally on a national level; and there are projects you can do to increase your home’s value.
The national market will slightly favor sellers in negotiations; however, real estate is driven by local dynamics and may favor either buyers or sellers.

Note: real estate is a dynamic market and forecasts made in this article will change as the year unfolds.

Mortgage Rates Will Average 6.4% in 2025

In 2023, the average 30-year mortgage peaked at 7.79% following the pandemic. Rates came down from that peak in 2024. What will mortgage rates do in the next year?

The Federal Reserve is predicted to lower the federal funds rate 6 to 8 times in 2025; but mortgage rates are not set by the Federal Reserve and may not drop significantly ( National Association of REALTORS® ).

Fannie Mae predicts mortgage rates to average 6.4% in 2025. Mortgage Bankers Association also predicts mortgage rates to average 6.4%, but with slightly higher rates compared to Fannie’s forecast.

Sources: Fannie Mae Housing Forecast: November 2024 and

Mortgage Bankers Association Mortgage Finance Forecast: November 2024

When Will Mortgage Rates Drop Back to 3%?

Historically, rates have never been as low as the pandemic era interest rates. 30-Year mortgage rates averaged between 4% and 6% during & after the housing crisis and Great Recession. A return to a 3% range is very unlikely.

Source: Federal Reserve of St. Louis

Tips to get a better mortgage rate…

While we can’t affect the average 30 year mortgage rate, you can improve your credit and get the best possible rate. Here’s an example of recent mortgage rates by credit score:

Source: myFICO.com

If you’re thinking of making a move, the earlier you talk to a mortgage finance professional, the more time you have to work on improving your credit to get a better rate.

Need a recommendation to a trusted lender? Send me a message.

Home Values Will Increase by 1.5% to 3.6%

Since 2020, the average sales price of a home has gone up by $97,000 or 29.7% (Federal Reserve of St. Louis). Which indicates homeownership to be a great investment. But, what will home values do in the next year?

On a national level, home price growth is predicted to slow down from 2024. However, home prices are predicted to increase in 2025. Fannie Mae predicts home prices to increase on average by 3.6%. MBA is predicting an average increase of 1.5%.

Sources: Fannie Mae Housing Forecast: November 2024 and
Mortgage Bankers Association Mortgage Finance Forecast: November 2024

Home values are influenced by local market dynamics. If you want to understand what home values are forecasted to do locally, consider talking to a real estate professional.

Want to increase your home’s value? Consider these remodeling projects for the highest return on investment.

Will Home Values Crash in 2025?

For home values to drop significantly, a major influx of homes for sale would have to hit the market. Freddie Mac estimates the U.S. housing stock is 3.7 million units below what’s needed to meet demand. It will take time to build up inventory to meet demand. Which is why a major drop in home values and prices is unlikely.

Will 2025 Be a Home Buyers or Sellers Market?

Who will have the advantage in the 2025 housing market, buyers or sellers? One measure of the market is Months Supply and it shows who has the advantage.

Months Supply is calculated by dividing the total number of homes for sale by the average number of homes sold each month. For example if there are 500 homes for sale in a particular area and an average of 100 homes are selling each month, the Months Supply is 5 months.

Here’s a chart of month’s supply going back to November of 2023:

Source: Federal Reserve of St. Louis

6 Months Supply is considered a balanced market. Over 6 months supply is considered a buyers’ market. Below 6 months supply is a sellers’ market. At 4 months supply on a national level, the market slightly favors sellers.

Inventory is rising nationally, however, which could shift the market to favor buyers in the next year. With that said, all real estate is local and local markets will differ in favoring buyers versus sellers.

If you want to know if your area favors buyers or sellers, send me a message.

What This Means for Homeowners

If you own a home, you will likely see a slight increase in your home's value. If you want to increase your home’s value and enjoy the upgrades, consider making some home improvements. If you want advice on which features or projects are best suited for increasing your home’s value, consult with a professional.

Tips for Potential Home Buyers

If you’re thinking of purchasing a home, the sooner you start planning the better. Knowing your price range, optimizing your credit, and working towards your down payment are steps you can take now. Even if you’re in the market to buy in the next 12 to 24 months, talking with a real estate professional early in the process will set you up for success.

Tips for Potential Home Sellers

Sellers need to prioritize their objectives. Is getting top dollar for your home the highest priority, is it moving within a specific timeframe? Do you have to sell a home prior to purchasing your next one? These objectives must be prioritized so that an effective plan and marketing strategy can be put into place. Thinking of making a move? Talk to a real estate professional!

Real Estate Forecast Outline

How’s the Market? Housing Experts Predict XX Change in 2025

Purpose / Intent Statement

Current State of Market

Interest Rates
Inflation
Economic Growth
Housing Supply & Demand

Key Factors Affecting 2025 Market

Discuss the specific factors that will shape the housing market in 2025.
Interest rates and inflation
Economic conditions and employment
Demographic shifts and migration patterns
Government policies and regulations
Technological advancements

Predictions and Trends

Will it be a buyer's or seller's market?
Which regions will see the most growth?
What types of properties will be in high demand?
Discuss emerging trends in the real estate industry.
Sustainable and eco-friendly housing
Smart home technology
Co-living and shared housing

Advice for Buyers and Sellers

Tips for getting pre-approved for a mortgage
Strategies for finding the right property
Advice on negotiating offers
Recommendations for staging and selling a home

Conclusion

Summarize the key takeaways from the article.
Offer a final thought or prediction about the 2025 housing market.
Include a call to action

Sources

Calculated Risk, Preliminary 2025 Housing Forecasts
Zillow’s Predictions

NAR’s Residential economic issues & trends (Lawrence Yun)

Mortgage Rates

MBA November 24

Fannie Mae November

MyFICO

Mortgage

Home Prices

Tech the Halls: Smart Home Gadgets for a Stress-Free Holiday Season

Thu, 05 Dec 2024 22:01:22 GMT

The holidays are a time for joy, family, and celebration, but they also bring added responsibilities. Between decorating, hosting, and just keeping up with your daily routines, your home can quickly start to feel more like a neverending to-do list rather than your haven.

That’s where smart home technology comes in. It can help you streamline holiday tasks to focus on what matters most—spending time with loved ones and enjoying the season's magic.

And there are more upsides to upgrading your home tech: doing so can also enhance the overall value and appeal of your property. Current research indicates that 77% of today’s home buyers are interested in smart homes, which results in an up to 5% increase in a property’s resale value! In general, estimates indicate that sellers who invest in smart home technologies realize a 50% return. ¹

So whether you're thinking about selling in the near future or just want to enjoy your home to the fullest this season, adding smart gadgets is an investment that pays off. Read on for some of the best smart home solutions to simplify your holidays (and just maybe make your home more marketable down the road, too).

ENTERTAINING MADE EASY

Spending time with friends and family is the highlight of the holiday season—but entertaining can be a lot of work. These tools can help turn any gathering into a celebration to remember without all of the fuss.

1. Make Cooking Easier with Digital Recipe Access

Holiday cooking often means late nights and multiple trips to the store. Instead of juggling old recipe cards, let smart-home displays keep you organized with easy menu planning and grocery lists.

High-end: Google Nest Hub Max
This smart display offers an easy-to-use recipe mode with step-by-step guidance from the Google Assistant. It’s like having a sous chef right on your countertop.

Mid-range: LG - 27" Smart webOS TV with Countertop Design
This smart TV can be perched on your kitchen counter or mounted on the wall to watch cooking shows, pull up your favorite recipes, or cast content from your mobile device.

Budget pick: Amazon Echo Show 8
With a Food Network integration and recipe assistance, this countertop model offers plenty of features in a less-expensive package.

2. Set the Mood with Smart Lighting

The right ambiance can elevate any gathering. Control colors, brightness, and temperatures remotely with these smart lighting options.

High-end: Philips Hue Play HDMI Sync Box
Watching a holiday movie? Sync your smart lightbulbs to adapt their colors to what’s on the screen for the ultimate festive movie experience.

Mid-range: Lutron Caseta Wireless Bridge
Use this small internet-controlled device to set up automations for your smart bulbs, so you can dim all your lights at once with a swipe on your smartphone.

Budget-friendly: Govee Lightbulbs
Just getting started with smart bulbs? This affordable option allows you to control color and brightness using your Alexa or Google Home device.

3. Amplify Your Holiday Spirit with Smart Speakers

From carols to party playlists, music sets the tone for the holidays. These smart speakers will get everyone in the mood to sing along.

High-end: Bose Smart Speaker 500
This powerful speaker delivers room-filling sound—and Google Assistant and Alexa are both built-in.

Mid-range: Amazon Echo Studio
The best device for Amazon loyalists who care about sound, music comes through loud and clear on this speaker.

Budget-friendly: Google Nest Mini
This diminutive speaker gives you voice-controlled playback at an entry-level price.

TRADITIONS WITH A TWIST

Decorating your home and popping on a holiday film gets everyone in the holiday spirit. These tech solutions make things easier and give you more time to enjoy the fun.

1. Watch Holiday Favorites in Style

Level up your holiday movie traditions with smart projectors that turn any room in your home—or even your backyard—into a movie theater.

High-end: Epson Home Cinema LS1100
This 4K projector is a serious investment, but it delivers cinema-quality performance and a laser light source that won't require replacement bulbs. It's also easy to set up and adjust.

Mid-range: Samsung Freestyle 2nd Gen Smart Portable Projector
Use this feature-packed, battery-powered projector nearly anywhere—it's designed to level and focus your video automatically and to scale to the size of your space.

Budget-friendly: Vankyo Performance V700W
This 1080p projector offers a bright picture, high-quality audio, and the portability to move it from room to room (plus outside). You can cast from your mobile device or plug in a computer or USB.

2. Shine Bright with Smart Plugs

Tired of clambering behind furniture to get to a hard-to-reach plug for your decorations? Invest in smart plugs, and you can control all of your electrified holiday decor (plus anything else you might plug in!) easily from your phone.

High-end: Meross Smart Power Strip
This smart power strip includes four AC outlets plus two USB C and one USB A port. It’s compatible with Apple HomeKit, Amazon Alexa, and Google Home, and each outlet can be operated individually.

Mid-range: Enbrighten Wifi Smart 2-Outlet Plug
This smart plug turns one wall outlet into two smart outlets. Control the plug using an app or with Google or Alexa voice assistants.

Budget-friendly: Kasa Smart Plug Ultra Mini
These inexpensive plugs are designed to take up minimal wall space yet offer plenty of features. Plus, they’re compatible with Google and Amazon home ecosystems.

3. Create a Winter Wonderland with Smart Outdoor Lighting

Whether you want to wow the neighborhood with an eye-catching display or simply add a touch of outdoor holiday charm, setting up lights doesn’t have to be a daunting task. Smart outdoor lighting makes it simple to illuminate your home’s exterior with minimal effort or planning.

High-end: Govee Permanent Outdoor Lights
Install these permanent outdoor lights on your home and celebrate year-round with app-controlled color and effects options for every holiday you can think of.

Mid-range: Twinkly Icicle Lights
Drape your home in any color you can think of with these easy-to-use, app-controlled icicle-style lights. True to the name, there are plenty of twinkling options to choose from!

Budget-friendly: Brizled Smart Christmas Lights
String up these indoor-outdoor lights wherever you’d like to enjoy customizable colors and effects, or sync the bulbs with music for a truly eye-catching outdoor display.

SIMPLIFIED HOME MANAGEMENT

There’s plenty to manage at the holidays as it is—make things easier for yourself by automating some basic home tasks and functions. Less time spent on tedious chores means more time making memories with your family.

1. Keep Your Home Spotless with Robot Vacuums

The holidays can create a lot of mess — stay on top of it with smart vacuums that clean up all of those cookie crumbs and bits of wrapping paper for you.

High-end: Roomba Combo J9 Plus
Say goodbye to vacuuming and mopping with this high-tech robot, which comes complete with AI obstacle avoidance to keep it from banging into your furniture.

Mid-range: Roborock Q5 Max+
This powerful robot vacuum is highly customizable—use the app to set up cleaning preferences like a second pass through high-traffic rooms or to block off areas you’d like left alone. Plus, it empties its own bin!

Budget-friendly: Shark Ion
This robot vacuum may not come with all the bells and whistles, but it does a great job keeping dirt and pet hair off the floor. You can control it with Amazon Alexa or the Google Assistant in addition to a dedicated app.

2. Manage Deliveries and Greet Guests with Smart Doorbells

The holidays tend to bring a lot more people than usual to your door. Keep track of who’s coming and going, and keep your home safe with smart video doorbells.

High-end: Eufy Dual+ Security Video Doorbell
This large video doorbell offers a much wider field of view than most competitors, plus high resolution and night vision. It’s compatible with both Amazon Alexa and Google Home devices and can be set up wired or wireless.

Mid-range: Google Nest Doorbell Camera
This sleek doorbell camera is easy to set up and control from a distance and offers fast notifications and the ability to respond by voice or with preset messages. Advanced features include package detection and facial recognition.

Budget-friendly: Arlo Video Doorbell
This doorbell offers a wide field of view, high-resolution images, and the ability to zoom in, and is compatible with multiple smart-device ecosystems. However, some of its features, like recordings, require a monthly subscription.

3. Protect Your Home While You Travel

Unfortunately, the holidays tend to bring higher rates of home break-ins. Whether you’re traveling or staying local, these tech solutions can help keep your home and family safe.

High-end: Ring Alarm Pro
Ring is well-known for video doorbells, but they also offer full home security systems, complete with professional monitoring (for a monthly fee). With high-performing devices and a built-in router to ensure working wifi, this system lets you keep an eye on things no matter where you are.

Mid-range: Abode Smart Security Kit
This kit is designed to work with all of the major smart home ecosystems, allowing you to connect as many devices as you’d like for a seamless experience. It includes a hub device, a door/window sensor, and a motion sensor, and you can easily add on from there to customize a system to your needs.

Budget-friendly: August WiFi Smart Lock
Lots of visitors coming and going this holiday season? This smart lock upgrades your existing deadbolt, allowing you to give access to trusted family and friends. Best of all, it attaches to the lock on the inside of your door, so it won’t impact your curb appeal or draw unwanted attention.

ENJOY A BETTER HOLIDAY SEASON WITH SMART HOME TECH

Incorporating smart home technology can help make this holiday season more relaxing—and it can also be a great investment that adds value to your property in the long run. From energy-efficient lighting to reassuring security systems, these gadgets do more than just make life easier; they enhance your home’s appeal to future buyers.

If you're curious about how upgrading your home’s tech might impact its value, we’d love to help. Reach out for a free consultation to learn more about the latest trends in smart home technology and how it can align with your real estate goals. Whether you’re looking to sell soon or simply upgrade your lifestyle, we're here to guide you every step of the way.

Sources:

National Association of Realtors - https://www.nar.realtor/blogs/emerging-technology/smart-homes-can-help-you-grow-your-business-heres-how

Multigenerational Home Buying: How to Find a Home That Fits Your Whole Family

Mon, 04 Nov 2024 22:40:19 GMT

For many homebuyers, multigenerational living used to be considered an option of last resort: it was a route families took only when they needed to ride out a financial storm or care for ailing family members. But that mindset is on the decline: A growing number of families now say that they are embracing multigenerational living and moving in together by choice.

In fact, research by the National Association of Realtors (NAR) found that the share of multigenerational home buyers rose to 14% in 2022––close to an all-time high. ¹

Buyers cite a multitude of reasons for choosing a multigenerational home, including saving money on living expenses, pooling resources, taking care of very young or aging relatives, and spending more time with family. "Multi-generational home buying is a way for families to care for one another, support one another, and often buy a home that may have been previously out of reach," writes Deputy Chief Economist Jessica Lautz in a blog post about the trend. ¹

Living with extended family has become especially popular in recent years as younger generations face higher home costs and seniors embrace aging in place. According to Pew Research, the number of Americans living in a home with at least two generations of adults has more than quadrupled since the 1970s. ²

For many families, the benefits are substantial. Research shows that people who live in multigenerational homes are healthier and tend to live longer. They also enjoy more financial security. Plus, research by Pew found that people who live with relatives are more likely than not to say that it has been a positive experience. ^2,3

That's not to say that multigenerational living is easy: It can also be stressful––especially if you choose a home that isn't suited for a larger family. The key to making it work is to pick a home that can accommodate young and old alike without requiring you to sacrifice comfort or privacy. ^2,4

Here's a closer look at multigenerational living, along with tips for finding a home that's suitable for a diverse group.

WHAT TO CONSIDER BEFORE SHOPPING FOR A MULTIGENERATIONAL HOME

Before starting your house hunt, take the time to discuss your house plans as a family so that you're all on the same page. Have you hashed out what you're looking for in a new home? Can you agree on potential compromises? Are there any unaddressed concerns about the move?

You may also find it helpful to articulate your "why" for buying a multigenerational home and how each of you might benefit. For some families, multigenerational living is all about caring for relatives and sharing responsibilities. But for others, the goal is to pool resources so that you can purchase a more desirable property or cut down on expenses, like childcare or senior living.

For homeowner Jian Huang, she initially bought a multigenerational home to help her aging mother. But she says the purchase also helped her family save a lot of money on expenses––as much as $25,000 to $40,000 a year. “It makes so much sense financially and emotionally that we would not have it any other way,” commented Huang to Apartment Therapy. ⁵

In addition to talking over your short-term wants and needs, you'll also want to weigh long-term issues that could crop up in the future, like accessibility or money concerns. For example, if some family members are nearing retirement, accessibility issues (such as extra-steep stairs or a narrow hallway) could become a problem over time. Similarly, a more luxurious home with extra amenities like a pool may appeal to buyers who have gathered a lot of cash upfront, but it may also require a bigger long-term budget for maintenance and supplies.

If you haven't had these discussions yet, set a date in your calendar so that you can talk it over as a group. We can help by interviewing family members individually and advising you on what you can realistically find in today's housing market.

WHAT TO LOOK FOR IN A MULTIGENERATIONAL HOME

Once you've settled on what you want and need from a new home, your next step should be to jointly draft a budget so that you'll know what you can afford. To ensure that no one in your family gets accidentally overextended, think holistically when planning your new housing budget and determine what you would need to buy the home––and maintain it.

In addition to budget, you'll also want to consider a home's size and what kind of layout you might need. In general, homes that offer ample space for solitude and privacy are thought to be more practical for multigenerational living––especially if there will also be young children. ⁴

However, the ideal layout for your family and the amount of square footage you'll need to be happy long-term will also depend, in part, on family members' personalities. Some people don't mind sharing a bathroom or having bedrooms situated close to one another. But others may find that they need something more separate to relax. Different housing options to consider include:

A large home with plenty of rooms and at least one or more ensuite bathrooms.
A home with an accessory dwelling unit (ADU), such as a basement apartment.
A multifamily unit, such as a duplex.

For home buyers looking to age in place, a home that offers a separate ground-floor unit, such as a backyard ADU, could be the most comfortable (and the most practical) option, says author Sheri Koones. “It’s a way for many older people to avoid having to go into an expensive assisted living or other facility as they age,” said Koones in an interview with Realtor Magazine. ⁶

Another possibility to consider would be a home you could add onto or retrofit into multiple units. However, building a brand-new accessory unit or renovating an existing space can be pricey. When visiting a property, we'll help you weigh potential costs and estimate whether it's a good investment. We can also connect you with a trusted contractor who specializes in renovations.

HOW TO BUY A MULTIGENERATIONAL HOME

Buying a home with family can be complicated––especially if you plan to jointly apply for a mortgage. However, depending on your financial resources, you may be surprised to find that it's sometimes easier to qualify for certain mortgages as a group than if you tried to go it alone. ⁷

Talk it over with a mortgage lender or broker and ask for advice on what's best for your situation. We'd be happy to connect you with a professional who understands the nuances of co-buying.

Technically, there's no limit to the number of co-borrowers you can have, but some lenders may be more lenient with their lending requirements than others. For example, most conventional lenders will only work with a maximum of four borrowers for a single loan. If you want to buy a home with a larger number of co-borrowers, you may have to look to an alternative lender. ⁷

Your credit will also be an important factor in determining your mortgage qualifications and what you can buy, so have everyone check it as soon as possible. Pulling your credit reports and scores will not only tell you where you stand. It will also alert you to correctable issues with your credit, such as mistakes on your credit reports or too much debt on your cards. ⁸

As you discuss your homebuying budget and strategy, jointly consider the following:

Who will be on the mortgage?
What about the title?
Would including everyone on the mortgage be beneficial for your mortgage rate?
For those who don't qualify for the mortgage or have a lower credit score, can you make other arrangements so that they can still financially contribute?

Next, consider potential tax and estate planning implications of your home purchase and what might happen if some family members later decide to drop out of the arrangement. ⁹

To ensure you make an informed decision, it's best to speak with a licensed professional. Ask us for a referral to a legal professional or an accountant who can advise you.

BOTTOM LINE

Multigenerational home buying has grown more popular for a reason: it's a great way to combine resources and buy a supportive home for more than just your immediate family. It can also be a smart lifestyle choice, helping reduce loneliness and promote health and well-being. ¹⁰

If you're wondering whether multigenerational living is right for you, call us for a consultation. We'd be happy to walk you through potential options and help you envision your own full house.

References:

National Association of Realtors -
https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying
Pew Research Center -
https://www.pewresearch.org/social-trends/2022/03/24/financial-issues-top-the-list-of-reasons-u-s-adults-live-in-multigenerational-homes/
SSM - Population Health -
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5769098/
Better Homes and Gardens -
https://www.bhg.com/what-to-look-for-in-a-multigenerational-home-8409277
Apartment Therapy -
https://www.apartmenttherapy.com/multigenerational-homes-37412085
Realtor Magazine -
https://www.nar.realtor/magazine/real-estate-news/home-and-design/all-under-one-roof-trends-in-multigenerational-living
Bankrate -
https://www.bankrate.com/mortgages/how-many-names-can-be-on-a-mortgage/
Experian -
https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/
Kiplinger -
https://www.kiplinger.com/retirement/estate-planning-for-multigenerational-living-arrangements
Institute for Family Studies -
https://ifstudies.org/blog/multigenerational-living-is-it-a-solution-for-our-aging-population

Stage to Sell: 7 Proven Steps to Attract Buyers and Boost Offers

Wed, 02 Oct 2024 20:04:24 GMT

Selling your home quickly and at the right price takes more than just listing it online. To draw in potential buyers and secure top offers, your home needs to stand out. That’s where home staging comes in. By strategically preparing your home—through redecorating, repairing, and making it look its best—you can make a lasting impression and significantly increase its appeal. The numbers speak for themselves: according to the National Association of Realtors, 81% of buyers’ agents report that staging makes it easier for potential buyers to envision themselves living in a home. Moreover, 44% of buyers’ and sellers’ agents say that staging can increase a home’s sales price, and 48% of sellers' agents agree it shortens the time a house spends on the market.1 You can choose to stage your home yourself with advice from your real estate agent or work with a professional stager. Whichever route you take, here are seven essential strategies to transform your home into a buyer’s dream.

Step #1: Declutter and Depersonalize The first step in staging is to declutter and depersonalize your home. A recent survey of real estate agents found that this simple step can increase your home’s sale price by 3-5%.2 Ideally, you want to create a clean, neutral canvas where potential buyers can imagine their own lives. Remember that staging isn’t interior design—the goal isn’t to add personal, homey touches but to take them away.3 While you may love having plenty of comfy furniture, family photos, and unique knick-knacks, these items can distract potential sellers and make your home feel smaller.4 Be especially mindful to remove children’s toys and pet items. The task can feel overwhelming, but consider it a head start on packing for your move — and an opportunity to clear out things you no longer need. If you have a lot of belongings, renting a storage unit might be a smart way to keep things tidy while your home is on the market.

Step # 2: Deep Clean and Repair A sparkling clean home leaves a fantastic first impression. Deep clean every room, paying special attention to areas that are often overlooked, like baseboards, windows, and appliances. Even minor smudges, scrapes, or signs of pet hair can put off some buyers. Your goal? Make it look like no one has ever lived there!5 Minor repairs are equally important. Fix slight imperfections like chipped paint, regrouting tiles, and replacing worn hardware. These easy cosmetic updates make a big difference in how buyers perceive your home’s value. For example, refinishing hardwood floors can offer a 147% return on investment.6 Need help getting your home spic-and-span? Let us recommend a professional who can help.

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Step #3: Pick Up a Paintbrush While buyers may repaint after they move in, the color and condition of your walls still have a big impact on their impression of the home as a whole. Neutral tones like beiges and off-whites appeal to the widest range of buyers—and to the friends and relatives who are also weighing on purchasing decisions.7 If your home features bold colors or striking wallpaper, consider a repaint before you list. When choosing paint colors, make sure to think about how they’ll appear in listing photos and videos. Light, neutral shades can make rooms look brighter and more spacious. Repainting is especially important in high-traffic areas like the kitchen. Painting outdated cabinets in white or a soft gray can also modernize your space.8

Step #4: Enhance Curb Appeal First impressions matter, and your home's exterior is the first thing buyers will see. That’s why 98% of agents believe that curb appeal is crucial to attracting a buyer.9 Boost your home’s curb appeal by power-washing the exterior and touching up your deck’s varnish.5 You might also consider repainting your front door. Research shows that a freshly painted front door in a classic shade like black or terracotta can increase offers by thousands of dollars.10 And don’t forget landscaping! Keep your lawn tidy, remove dead or dying plants, and consider adding seasonal flowers. Even standard lawn service can lead to a 217% return on investment.9 If you need assistance, we’re happy to offer a referral to landscapers in our area.

Step #5: Stage Key Rooms When staging, concentrate on the rooms that matter most to buyers: the living room, primary bedroom, and kitchen. These spaces have the greatest influence on a buyer’s decision.1 If you’re working with a professional stager, they may bring in furniture and decor.3 If not, make the most of what you have, and don’t worry about how you’d arrange furniture in real life. This is just about showing off the space. Arrange furniture to create an open, inviting flow.5 Use large rugs to make rooms appear bigger and ensure artwork complements rather than overwhelms the space.7 Add pops of color with fresh flowers or simple decor like pillows to bring warmth without personalizing the space too much.

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Step #6: Put Your Home in Its Best Light Lighting is key to creating a welcoming atmosphere in your home. Natural light in particular makes any room feel more airy and spacious, so it’s essential to make the most of it. First, remove heavy curtains or blinds — if a room feels bare without a window treatment, hang sheer curtains or light-filtering shades to invite the outdoors in. Next, take a look at the landscaping surrounding your home. If overgrown hedges or trees block windows, especially on the ground floor, consider cutting them back or removing them entirely to let in the sunshine. Of course, homes need more than just natural light — and it’s important to use a combination of types of lighting to suit different uses and moods. Experts recommend that each room have three light sources: ambient lighting (think ceiling lights or chandeliers), task lighting (like lamps or under-cabinet lights), and accent lights (like track lighting and picture lights).11 If needed, replace outdated fixtures with more modern options.12 Even swapping out lightbulbs can make a difference—opt for warm, 2700k bulbs to create an inviting glow.7 Have hard-to-reach windows or need help installing new lighting fixtures? We’re happy to refer a professional who can help.

Step #7: Show Off Your Work with Photography These days, most buyers will first see your home online, making high-quality photos essential. According to the National Association of Realtors, 89% of agents agree that professional photos are critical to marketing a listing.1 Depending on your home and market, you may also benefit from marketing your property with videos, virtual tours, and even virtual staging, where photo editors swap out furniture and colors to show how your home would look with different decor. Talk to your agent about what makes sense for your situation, and work with them to hire professionals who can capture your staged home in its best light. When it comes time, treat the photo shoot like an open house—everything should be spotless, well-lit, and arranged to show off your home’s best features.

BOTTOMLINE Whether or not staging is worth the investment depends on your home’s condition, your desired sale timeline, and your local market. Before committing to professional help or cosmetic upgrades, reach out for a free consultation. We can help you assess the best path forward and connect you with the best professionals to make it happen.

References:

National Association of Realtors - https://www.nar.realtor/sites/default/files/documents/2023-profile-of-home-staging-03-30-2023.pdf
Homelight - https://www.homelight.com/blog/how-to-clean-out-a-house-to-sell/
National Association of Realtors - https://www.nar.realtor/blogs/styled-staged-sold/6-things-home-stagers-wish-real-estate-pros-knew-about-staging
Coldwell Banker - https://blog.coldwellbanker.com/home-staging-mistakes-to-avoid/
Zillow - https://www.zillow.com/learn/how-to-stage-house-to-sell/
NAR - https://www.nar.realtor/magazine/real-estate-news/stub-for-148394
House Beautiful - https://www.housebeautiful.com/design-inspiration/real-estate/a61712558/how-to-make-your-house-sell-over-asking-according-to-professional-home-stagers/
HGTV - https://www.hgtv.com/lifestyle/real-estate/15-secrets-of-home-staging-pictures
National Association of Realtors - https://cdn.nar.realtor//sites/default/files/documents/2023-03-remodeling-impact-outdoor-features-03-17-2023.pdf
Zillow - https://www.zillow.com/learn/what-color-paint-front-door/
Martha Stewart - https://www.marthastewart.com/2126982/how-to-layer-your-lighting
Martha Stewart - https://www.marthastewart.com/outdated-lighting-trends-8421744

Keller Williams Annual Food Drive Drop-off Party

Wed, 11 Sep 2024 23:10:25 GMT

We invite you to help us fill the shelves in our local pantries!

Drop off donations at our drop-off party on Saturday, September 28th between 9am - 12 noon.

Location:

431 S. West End Blvd., Quakertown PA 18951

What we need:

WATER, JUICE, PASTA, PASTA SAUCE, HOT/COLD CEREAL, OATMEAL, BEANS, CANNED VEGETABLES/FRUITS, SNACKS & HYGIENE PRODUCTS.

Benefiting local food pantries!

Can't make our drop-off party? Please feel free to contact us to pick up your donation or deliver it directly to your favorite local food pantry.

7 Mistakes to Avoid When Hiring a Contractor

Wed, 11 Sep 2024 17:02:10 GMT

A recent survey found that more than half (52%) of American homeowners have a renovation project planned this year. ¹ If you’re among them, you know that embarking on home improvements can be both exciting and daunting. According to the survey, the median renovation budget is around $15,000, so you're probably investing a significant amount—and you'll want to ensure your project’s success. ¹

One of the most critical decisions you'll make is choosing the right contractor to bring your vision to life. However, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and subpar results.

In this guide, we'll explore seven mistakes to avoid when hiring a contractor to ensure your project runs smoothly from start to finish.

1. SKIPPING THE RESEARCH PHASE

A common mistake homeowners make is rushing into hiring a contractor without proper research. But to ensure the success of your renovation, it’s crucial to take time to meet with multiple candidates and educate yourself on best practices surrounding your project.

If you bypass the interview process, you miss the opportunity to evaluate different approaches, pricing, and expertise. This can result in overpaying or hiring someone whose skills and vision do not align with your needs.

Neglecting to research the processes and steps involved can also leave you vulnerable. Not only does it make it more difficult to ask the right questions, but you also risk hiring unqualified professionals or settling for subpar work.

What To Do Instead:

● Educate Yourself — Read up or watch YouTube videos to gain a better understanding of best practices surrounding your project.

● Interview Multiple Contractors — Search for and interview at least three contractors who specialize in the type of work you need.

● Ask Specific Questions — Inquire about the processes and materials each candidate will utilize.

● Seek Recommendations — Get referrals from trusted sources like friends, neighbors, and real estate professionals. We’d be happy to share a list of referrals!

2. CHOOSING BASED SOLELY ON PRICE

Once you’ve interviewed candidates and reviewed their proposals, it’s time to choose your favorite. But don’t make the mistake of rushing to the lowest bid.

While it's natural to want to save money, selecting a contractor based entirely on price can be a costly mistake. Extremely low bids may indicate cut corners, subpar materials, or hidden costs that will surface later.

According to the National Association of the Remodeling Industry, when evaluating bids, make sure you’re comparing “apples” to “apples” and considering factors like quality, timeline, and scope. ² Are they fully licensed and insured? How long have they been in business? Do they warranty their work?

What To Do Instead:

● Consider Overall Value — In addition to price, look at experience, reputation, and quality of work.

● Ask for Detailed Breakdowns — Understand what's included and what's not in each bid.

● Be Wary of Low Bids – Bids that are significantly lower than others may be too good to be true.

● Invest in Quality — Remember that quality work comes at a fair price, and investing in a reputable contractor can save you money in the long run by avoiding costly mistakes or repairs.

3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE

When you’ve established a good rapport with a contractor, it’s natural to want to believe the best in them. But neglecting to check references and verify licensing and insurance could come back to haunt you. ³

Hiring an untrained or unlicensed contractor puts you at risk for safety and code violations, not to mention shoddy workmanship. Without proper insurance, you could be left footing the bill for costly repairs, legal issues, or even medical bills if someone gets hurt on the job. ⁴

Skipping out on a reference check can be equally problematic. It’s your best opportunity to ensure that their promises and your expectations line up with reality.

What To Do Instead:

● Verify Licensing and Insurance — Confirm that the contractor is licensed according to local requirements and verify insurance, including general liability and workers' compensation coverage.

● Check Reviews — Read online reviews and confirm that the business is in good standing with the Better Business Bureau and other relevant trade groups.

● Call References — When contacting references, ask questions and request to see photos of the contractor's completed projects.

● Visit Job Sites — If possible, visit a current job site to observe the contractor's work in progress and interaction with clients.

4. PROCEEDING WITHOUT A WRITTEN AGREEMENT

A handshake deal might seem friendly and straightforward, but it's a recipe for misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and leave room for miscommunication about project scope, timelines, and costs. ⁵

Instead, you should have a signed contract in place before any work begins. ³ Paperwork can be tedious, but don’t skip the important step of carefully reading over your contract, asking questions, and pushing back on any terms that make you uncomfortable.

Don’t forget to ask for payment receipts and document any change orders or issues that arise throughout the project, as well.

What To Do instead:

● Insist on a Written Contract — Outline all aspects, including scope, materials, timeline, payment schedule, warranty information, and a process for handling change orders.

● Understand and Agree — Don't sign anything until you fully understand and agree to all terms.

● Keep Documentation — Once you’ve made your final payment, request a lien waiver or receipt marked “Paid in Full” to keep on file for legal and tax purposes. ⁶

5. PAYING TOO MUCH UPFRONT

Another common misstep is paying a large sum upfront or the full cost of the project before the work is completed. This can leave you vulnerable if the contractor fails to complete the work or disappears with your money.

According to the home services platform Angi, deposits typically range between 10% and 33% of the total project cost. ⁷ The remaining payments should be tied to progress milestones outlined in your contract.

Construction attorneys caution against paying a greater share of the project cost than the percentage of the work that’s been completed. ³ If you end up dissatisfied with the outcome, you’ll have much less leverage if you’ve already paid.

What To Do Instead:

● Be Cautious — Avoid contractors who demand large upfront payments or cash-only deals.

● Establish a Payment Schedule — Tie payments to project milestones and stick to them.

● Pay Only Upon Completion — Never pay in full until the project is completed to your satisfaction and all required inspections have been passed.

6. FAILING TO GET NECESSARY PERMITS

Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences. Without the proper permits, you risk running afoul of local building codes and regulations, which could result in fines, forced removal of work, or even legal action. ⁸

Additionally, unpermitted work might compromise the safety and structural integrity of your home, potentially leading to hazardous conditions or diminished resale potential. Homeowners may also find themselves without recourse if issues arise later, as insurance companies often exclude coverage for unpermitted renovations. ⁸

If your community has a homeowners association (HOA), don’t forget to check their requirements, as well. You may need prior approval to make modifications to your home or yard. HOAs have the power to enforce these restrictions with fines, and they can even put a lien on your home—so don’t skip this important step. ⁹

What To Do Instead:

● Discuss Permits — Talk about permits and HOA requirements with your contractor before work begins.

● Include Permits in the Contract — Ensure that obtaining necessary permits and approvals is part of your contract.

● Verify Inspections — Make sure all required inspections are completed during the project.

● Keep Records — Keep copies of all permits, HOA approvals, and inspection reports for your records.

7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED

Sometimes a contractor can check all the right boxes—until the work begins. Unfortunately, red flags that are spotted mid-project can be especially challenging to address.

If you’ve already paid a substantial amount or had a portion of your home demolished, you may feel trapped in a bad situation. However, if there are major problems that the contractor is unwilling to address, ignoring them can make things exponentially worse.

Don’t be afraid to seek legal or professional advice if issues persist. Taking immediate, informed, and decisive action is crucial to safeguarding your investment and ensuring the project's ultimate success. ¹⁰

What To Do Instead:

● Review Your Contract — Make sure you thoroughly understand your rights and the agreed-upon terms.

● Document Issues — Keep detailed records, including dates, descriptions of problems, photographs of subpar work or materials, and any communications with the contractor.

● Communicate Professionally — Arrange a meeting to discuss your concerns, ensuring you remain calm and professional while clearly expressing your expectations.

● Request a Resolution Plan — Ask for a plan to address the issues, set a timeline for resolution, and put everything in writing to ensure you’re both on the same page.

● Seek Advice — If the contractor is uncooperative or dismissive, consider seeking advice from a legal professional. You could also contact your local licensing board or consumer protection agency for guidance.

BOTTOMLINE

Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience.

Remember, taking the time to thoroughly vet contractors, communicate clearly, and plan carefully will pay off in the long run. Your home is likely your most significant investment, and it deserves the care and attention that comes with making informed, thoughtful decisions about who works on it.

If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation!

Sources:

1. USA Today -
https://www.usatoday.com/money/homefront/moving/home-renovation-statistics/

2. National Association of the Remodeling Industry -
https://remodelingdoneright.nari.org/Homeowner-Resources/Questions-to-ask/How-to-select-a-remodeler

3. The Washington Post -
https://www.washingtonpost.com/home/2024/07/08/how-to-find-good-honest-contractor/

4. MarketWatch -
https://www.marketwatch.com/guides/insurance-services/home-insurance-during-renovations/

5. LegalZoom -
https://www.legalzoom.com/articles/oral-contracts-do-they-carry-any-weight

6. Better Business Bureau -
https://www.bbb.org/all/home-improvement/your-home-improvement-contract

7. Angi -
https://www.angi.com/articles/how-much-should-i-pay-general-contractor-prior-starting-job.htm

8. Bob Vila -
https://www.bobvila.com/articles/remodel-without-permit/

9. Bankrate -
https://www.bankrate.com/real-estate/hoa-homeowners-association-rules/

10. Angi -
https://www.angi.com/articles/how-complain-contractors-effectively.htm

125 Edison-Furlong Rd, Doylestown PA 18901

Tue, 30 Jul 2024 18:36:49 GMT

Property Address: 125 Edison-Furlong Rd, Doylestown PA 18901

Price: $ 1,799,000

Property Description:

Situated on 10.2 acres, this expansive property offers a tranquil and secluded escape just 5-9 minutes from downtown Doylestown. The main residence, covering around 6,000 sq ft, combines original charm with modern expansions. The original 4,000 sq ft house, constructed around 1985, was tastefully enlarged by 2,000 sq ft in 2015, creating a versatile and roomy living space.

The property boasts a magnificent 2,500 sq ft flagstone patio, perfect for outdoor gatherings. The two-story barn, approximately 2,000 sq ft, includes two horse stalls and a one-car garage with an automatic door opener, offering ample space for equestrian enthusiasts.

The home was designed to provide up to 7 potential bedrooms, and four full bathrooms, one of which includes a luxurious Jacuzzi tub. The chef's kitchen is a culinary dream, equipped with two dishwashers, Thermador double ovens, a Thermador 5-burner cooktop, a Wolf in-counter steamer, microwave, warming drawer, and garbage disposal. An additional kitchen in the new wing enhances the home's versatility.

Additional features include a full-size redwood sauna, a variety of flooring types (carpeting, tile, hardwood, pine, ceramic, and laminate), a two-car attached garage with automatic door openers, and a multi-acre fenced backyard suitable for use as a horse paddock.

Modern amenities include propane heat and cooking, well water, a recently serviced septic system, a whole-house generator with automatic switch-over, two central vacuum systems, an electric car charger (Tesla, 220 VAC), an open floor plan, Verizon FIOS wired internet, a water softener, a 3-zone HVAC system, a whole-house ADT security system, a new roof, new exterior siding, a French drain, and a comprehensive drainage system.

The second-floor laundry room and a small unfinished waterproofed basement for mechanicals add convenience. An external shed provides storage for patio furniture, and a doggy door caters to pet owners.

The attached addition, built in 2015, can serve multiple purposes, including a great room/home office combination space; an in-law suite, a returning child or an au pair suite, a housekeeper suite, an exercise studio, a guest house, or a studio. It also features a propane fireplace, adding warmth and ambiance.

This property provides luxury, ample space, and practicality at 125 Edison Furlong Rd. Welcome to your new home!

7 Weekend Projects to Boost Your Property Value

Wed, 03 Jul 2024 18:03:21 GMT

Whether you’re putting your home on the market in a few weeks or a few years, strategic upgrades can make all the difference. But you don't have to embark on a major remodel to make a significant improvement. Even minor updates can have a big impact on your home’s aesthetic, and certain renovations can even boost its future sale price. From curb appeal to interior updates, here are seven weekend projects that will enhance your home’s current charm and long-term value.

1. Freshen Your Front Door Is your front door looking a little tired? A new coat of paint can make your home more inviting to today’s guests and tomorrow’s buyers. But before you grab that paintbrush, think carefully about your choice of hue. According to a recent study, the color of your front door can boost—or lower—your home's sale price by thousands of dollars.1 Cement gray, for instance, was found to decrease purchase offers by an average of $3,365. Going too bold can also deter home shoppers. The safest bets? Classic black or a mid-tone brown are proven winners.1 Need help choosing the perfect paint or stain for your front door? We'd be happy to offer advice or refer you to a design professional for assistance.

2. Upgrade Your Hardware and Lighting It's easy to overlook dated cabinet pulls or dingy light switches in your own home. But those seemingly minor details can leave a bad impression on visitors. Swapping out old hardware for modern alternatives can easily and affordably elevate your space. New cabinet handles, for example, are relatively inexpensive and require just a few minutes and a screwdriver to install. To maximize the longevity of your update, consider classic shapes and finishes like brass knobs or nickel cup pulls. 2 Take a look at your light fixtures, too. Try replacing an out-of-style chandelier with a more contemporary option. Even just updating your lampshades and lightbulbs can create a brighter, more welcoming space. Additionally, many experts agree that high-quality lighting can show off your property’s best features when it comes time to sell.3 Uncomfortable changing a light fixture yourself? Contact us for a referral to a licensed electrician for help.

3. Update Your Bathroom Fixtures Bathrooms can show their age quickly, but a few inexpensive updates can take years off in just a few hours. And since many buyers will be more drawn to a home that feels clean and modern, even small changes can make a big difference. According to one study, for every dollar you spend on minor cosmetic upgrades—like swapping out the bathroom mirror, upgrading hardware, or refinishing cabinets—you’ll see a $1.71 increase in your home’s value.4 Bathroom hardware is a great place to start. Consider updating your faucets and showerheads (we recommend lower-flow options to save money and the environment), and don't forget about towel racks, toilet paper holders, and any other fixtures that look worn or discolored.5 If you want to stay on-trend, the most popular faucet finishes are currently black, nickel, and pewter. Spa-like upgrades, like steam showers and rain showers, are also in high demand.5,6 If your existing vanity is in poor condition, installing a new one is a slightly bigger project, but it has a huge impact on the look and feel of the room. Reach out for a list of retailers who carry high-quality but affordable prefabricated options.

4. Give Your Kitchen Cabinets a Makeover The kitchen is often referred to as the heart of the home, so it's no surprise that an updated kitchen is a top priority for current homeowners and potential buyers alike.7,8 If your kitchen cabinets are from another era, that’s probably the first place you’ll want to start. Fortunately, you don’t need to commit to the hassle and expense of installing new cabinets if your current ones are in good shape. Instead, consider painting them. Not only is it more affordable and eco-friendly than replacement, but Better Homes and Gardens reports that this option typically offers a greater return on investment.9 When it comes to choosing the right color, warm neutrals and shades of green and blue are especially on-trend.10 Thinking about painting your cabinets yourself? Be sure to plan in advance and block out at least a couple of days for the project. You’ll need to take off all your cabinet doors and hardware and thoroughly cover your kitchen appliances and counters. You’ll also need to wait for the doors to dry before reassembling your kitchen.11 If you’re not confident in your painting skills, hiring a professional will still be far less expensive than installing new cabinets. We’re happy to refer you to capable painters in our network.

5. Look at Your Landscaping First impressions matter, and putting some work into your home’s exterior can make a big difference in how your guests and neighbors view it. Curb appeal can also make or break a potential buyer’s perception of your home—and significantly impact their offer. According to HomeLight, buyers will pay 7% more, on average, for a home with good curb appeal. And in some areas, the return on investment for improvements can exceed 300%.12 One of the best ways to improve curb appeal is through landscaping—and it doesn’t have to be elaborate. First and foremost, focus on keeping things neat, tidy, and welcoming. Mow your lawn, refresh any mulch, prune overgrown shrubs, and add pops of color with flowers. To take things up a notch, add outdoor lighting and plant perennial flowers along the sides of your walkway. When you’re ready to get started, reach out for a list of our favorite local garden centers where you can find all the necessary supplies.

6. Refinish Your Wood Floors For many buyers, wood floors are a huge selling point. Unfortunately, they also tend to get scuffed and worn over time, especially if you have kids or pets. The good news? If your wood floors could use a touch-up, it’s well worth the time and cost. According to the National Association of Realtors, it’s the project that pays off the most in terms of resale value, with an average 147% return on investment.13 If you have a few days to devote to your floors, you can rent the necessary equipment from a local hardware store. While you’re there, pick up some basic supplies, like a putty knife, paintbrushes, sandpaper, and stain.14 And if you want to modernize your space, opt for a lighter wood tone, which is the current trend.15 Of course, we’re also happy to provide the names of trusted professionals who can tackle the work for you.

7. Clean or Replace Your Grout Let’s face it: Whether it’s on a kitchen floor or a bathroom wall, grout gets grimy over time, even with regular cleaning. Fortunately, refreshing your grout is a relatively simple and affordable project that can yield impressive results. According to Apartment Therapy, grout that’s in poor condition is often one of the first things a potential buyer notices when they tour a bathroom.16 Fresh, clean grout, on the other hand, makes your bathroom sparkle—and that can pay off in a big way in terms of buyer’s perceptions. If your grout is simply stained, a focused cleaning session can make a big difference. Try a specialized product or a simple mix of baking soda, water, and hydrogen peroxide.16 If the grout is cracked, crumbling, or stained beyond repair, it’s time to replace it. Luckily, the right tools make that a very doable DIY project, even if it can get messy—and it’s a lot easier and less expensive than retiling.17 No time to tackle it yourself? Reach out for a recommendation of a pro who can help.

CHOOSING THE PROJECT THAT’S RIGHT FOR YOU Embarking on home improvements can be exciting, but it's essential to choose projects that align with your goals, budget, and skill level. Whether you're preparing to sell your home or simply want to enhance its value, there are projects to suit every homeowner. If you're unsure where to start, don't hesitate to reach out for personalized advice and recommendations. With the right approach, you can unlock your home's full potential and enjoy the rewards for years to come.

Sources:

Zillow - https://www.zillow.com/learn/what-color-paint-front-door/
Martha Stewart - https://www.marthastewart.com/kitchen-hardware-trends-8563764
The Spruce - https://www.thespruce.com/expert-home-lighting-tips-8302722
Zillow - https://www.zillow.com/learn/roi-for-bathroom-remodel/
Forbes - https://www.forbes.com/home-improvement/bathroom/easy-quick-bathroom-updates/
Real Simple - https://www.realsimple.com/nkba-bathroom-design-trends-2024-8403788
Houzz - https://www.houzz.com/magazine/2024-u-s-houzz-and-home-study-renovation-trends-stsetivw-vs~174492310
National Association of Realtors - https://www.nar.realtor/magazine/real-estate-news/survey-buyers-judge-a-home-by-its-kitchen
Better Homes and Gardens - https://www.bhg.com/kitchen/remodeling/planning/kitchen-upgrades-cost-value/
House Beautiful - https://www.housebeautiful.com/room-decorating/colors/g46105350/kitchen-paint-color-trends-2024/
HGTV - https://www.hgtv.com/design/rooms/kitchens/best-way-to-paint-kitchen-cabinets
Homelight - https://www.homelight.com/blog/what-upgrades-increase-home-value/
National Association of Realtors - https://www.nar.realtor/magazine/real-estate-news/stub-for-148394
Architectural Digest - https://www.architecturaldigest.com/story/refinishing-hardwood-floors
Houzz - https://www.houzz.com/magazine/5-new-trends-in-flooring-for-2024-stsetivw-vs~173560747
Apartment Therapy - https://www.apartmenttherapy.com/outdated-bathroom-features-37131219
Better Homes and Gardens - https://www.bhg.com/how-to-regrout-tile-7554710

Mid-Year Market Update for 2024: What Buyers and Sellers Need to Know

Wed, 05 Jun 2024 16:36:33 GMT

Last December, when the Federal Reserve projected a series of benchmark rate cuts in the coming year, some analysts speculated that mortgage rates—which had recently peaked near 8%—would fall closer to 6% by mid-2024.1,2,3 Unfortunately, persistent inflation has delayed the central bank’s timeline and kept the average 30-year mortgage rate hovering around 7% so far this year.2 While elevated mortgage rates have continued to dampen the pace of home sales and affordability, there have been some positive developments for frustrated homebuyers. Nationwide, the inventory shortage is starting to ease, and an uptick in starter homes coming on the market has helped to slow the median home price growth rate, presenting some relief to cash-strapped buyers.4 There are also signs that sellers are adjusting to the higher rate environment, as a growing number list their properties for sale.4 Still, economists say a persistent housing deficit—combined with tighter lending standards and historically high levels of home equity—will help keep the market stable.5 What does that mean for you? Read on for our take on this year's most important real estate news and get a sneak peek into what analysts predict is around the corner for 2024.

MORTGAGE RATE CUTS WILL TAKE LONGER THAN EXPECTED At its most recent meeting on May 1, the Federal Reserve announced that it would keep its overnight rate at a 23-year high in response to the latest, still-elevated inflation numbers.6 While mortgage rates aren’t directly tied to the federal funds rate, they do tend to move in tandem. So, while expected, the Fed’s announcement was further proof that a meaningful decline in mortgage rates—and a subsequent real estate market rebound—is farther off than many experts predicted. “The housing market has always been interest rate sensitive. When rates go up, we tend to see less activity,” explained Realtor.com chief economist Danielle Hale in a recent article. “The housing market is even more rate sensitive now because many people are locked into low mortgage rates and because first-time buyers are really stretched by high prices and borrowing costs.”7 Many experts now speculate that the first benchmark rate cut will come no sooner than September, so homebuyers hoping for a cheaper mortgage will have to remain patient. “We’re not likely to see mortgage rates decline significantly until after the Fed makes its first cut; and the longer it takes for that to happen, the less likely it is that we’ll see rates much below 6.5% by the end of the year,” predicted Rick Sharga, CEO at CJ Patrick Company, in a May interview.

What does it mean for you? Mortgage rates aren’t expected to fall significantly any time soon, but that doesn’t necessarily mean you should wait to buy a home. A drop in rates could lead to a spike in home prices if pent-up demand sends a flood of homebuyers back into the market. Reach out to schedule a free consultation so we can help you chart the best course for your home purchase or sale.

BUYERS ARE GAINING OPTIONS AS SELLERS RETURN TO THE MARKET There is a silver lining for buyers who have struggled to find the right property: More Americans are sticking a for-sale in their yard.9 Given the record-low inventory levels of the past few years, this presents an opportunity for buyers to find a place they love—and potentially score a better deal. In 2023, inventory remained scarce as homeowners who felt beholden to their existing mortgage rates delayed their plans to sell. However, a recent survey by Realtor.com shows that a growing number of those owners are ready to jump in off the sidelines.10 While the majority of potential sellers still report feeling “locked in” by their current mortgage, the share has declined slightly (79% now versus 82% in 2023). Additionally, nearly one-third of those “locked-in” owners say they need to sell soon for personal reasons, and the vast majority (86%) report that they’ve already been thinking about selling for more than a year.10 Renewed optimism may also be playing a part. “Both our ‘good time to buy’ and ‘good time to sell’ measures continued their slow upward drift this month,” noted Fannie Mae Chief Economist Doug Duncan in an April statement.11 However, the current stock of available homes still falls short of pre-pandemic levels, according to economists at Realtor.com . “For the first four months of this year, the inventory of homes actively for sale was at its highest level since 2020. However, while inventory this April is much improved compared with the previous three years, it is still down 35.9% compared with typical 2017 to 2019 levels.”

What does it mean for you? If you’ve had trouble finding a home in the past, you may want to take another look. An increase in inventory, coupled with relatively low buyer competition, could make this an ideal time to make a move. Reach out if you’re ready to search for your next home. If you’re hoping to sell this year, you may also want to act now. If inventory levels grow, it will become more challenging for your home to stand out. We can craft a plan to maximize your profits, starting with a professional assessment of your home’s current market value. Contact us to schedule a free consultation.

HOME PRICES ARE RISING AT A MORE MANAGEABLE PACE Homebuyers struggling with high borrowing costs have something else to celebrate. The national median home price has remained relatively stable over the past year, due to sellers bringing a greater share of smaller, more affordable homes to the market.4 In addition to offering cheaper homes, a recent survey found that home sellers are also adjusting their expectations when it comes to pricing. In many regions, just 12% anticipate a bidding war (down from 23% last year) and only 15% expect to sell above list price (versus 31% in 2023).10 But buyers shouldn’t expect a fire sale. According to Realtor.com ’s April Housing Market Trends Report, “On an adjusted per-square-foot basis, the median list price grew by 3.8%, as homes continue to retain their value despite increased inventory compared with last year.”4 Dr. Selma Hepp, chief economist for the data firm CoreLogic, projects that home prices will keep rising at a gradual pace through the rest of 2024. “Spring home price gains are already off to a strong start despite continued mortgage rate volatility. That said, more inventory finally coming to market will likely translate to more options for buyers and fewer bidding wars, which typically keeps outsized price growth in check.”

What does it mean for you? An increase in more affordable housing stock is great news, especially for first-time buyers. And with home values expected to keep rising, an investment in real estate could help you build wealth over time. Reach out to discuss your goals and budget, and we can help you decide if you’re ready to take your first step on the property ladder.

DESIRE TO OWN PERSISTS, BUT AFFORDABILITY REMAINS AN OBSTACLE Surveys show that the American dream of homeownership is alive and well, despite the financial challenges. In fact, a recent poll by Realtor.com found that 55% of Millennial and 40% of Gen Z respondents believe that now is a good time to buy a home.13 According to Fannie Mae Chief Economist Doug Duncan, buyers are starting to adapt to the new economic reality. “With the historically low rates of the pandemic era now firmly behind us, some households appear to be moving past the hurdle of last year’s sharp jump in rates, an adjustment that we think could help further thaw the housing market. We noted in our latest monthly forecast that we expect to see a gradual increase in home listings and sales transactions in the coming year." The Realtor.com study also revealed that even a small drop in mortgage rates could give a big boost to homebuyer demand and affordability. In fact, 40% of the buyers polled would find a home purchase attainable if rates fall under 6%, and an additional 32% plan to enter the market if rates dip below 5%.13 But waiting for rates to drop isn’t the only approach that Americans are using to afford a home. A survey by U.S. News & World Report found that determined homebuyers are employing a variety of strategies, including shopping multiple lenders (52%), purchasing discount points to lower their rates (36%), and opting for adjustable-rate mortgages (36%). More than three-quarters of today’s buyers also hope to refinance to a lower rate in the future.14 Despite the obstacles, these respondents remain steadfast in their desire to own a home, listing financial benefits, stability, and more space as their top motivations for wanting to buy.

What does it mean for you? If you’re dreaming of a new home, let’s talk. We can help you evaluate your options and connect you with a mortgage professional to discuss strategies you can use to make your monthly payments more affordable. And remember, in many cases, you can refinance if rates drop in the future. If you have plans to sell, it will be crucial to enlist the help of a skilled agent who knows how to maximize your profit margins and draw in qualified buyers. Reach out for a copy of our multi-step Property Marketing Plan.

WE'RE HERE TO GUIDE YOU While national housing reports can give you a “big picture” outlook, much of real estate is local. And as local market experts, we know what's most likely to impact sales and drive home values in your particular neighborhood. As a trusted partner in your real estate journey, we can guide you through the market's twists and turns. If you’re considering buying or selling a home in 2024, contact us now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals.

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate for advice regarding your individual needs.

Sources:

6 Strategies to Save on Home Insurance Premiums

Thu, 04 Apr 2024 19:00:34 GMT

From wildfires to floods, the past few years have brought a historic number of devastating climate and weather events to the United States. In 2023 alone, there were 28 individual weather-related disasters that caused at least $1 billion in damages each. ¹

These events triggered a huge influx of home insurance claims, and analysts expect the increase in both catastrophes and claims to continue. Adding to the problem, construction labor and supply costs have risen, making it more expensive to repair affected homes. Consequently, home insurance rates have surged: In 2024, Bankrate reports, premiums are already up an average of 23%, following double-digit increases the previous year. ^2,3

In disaster-prone regions, the situation is even more challenging. Some insurers have pulled out of risky areas entirely, and many of those that still offer policies in high-risk areas have doubled or even tripled their premiums. ⁴

For most homeowners, comprehensive home insurance coverage is crucial for financial security—but massive rate increases can turn a once-affordable home into a financial burden. They can also pose a serious challenge for sellers. A home insurance policy is typically required to get a mortgage, and, in some hard-hit regions, we’re seeing sales fall through or homes sit on the market because insurance policies are unattainable or too expensive. ^5,6

But don’t panic! While these broader trends may be out of your control, there’s still plenty you can do to save. Here are our top six strategies to slash insurance premiums while maintaining the protection you need.

1. SHOP AROUND

Getting multiple quotes is a smart move for many major purchases, including home insurance. We recommend reviewing at least three estimates before you commit to a policy. You can get quotes either by reaching out to insurers directly or by working with an independent insurance broker. ⁷ You’ll need to provide detailed information about the property you’re insuring and your claims history.

Make sure you read policies carefully before you choose. Sometimes, a policy can look like a better deal at first glance but turn out to have important coverage gaps. Be sure to consider how much the policy will pay out to repair or replace your home and review caps on personal possession and liability claims. It’s also smart to read reviews from policyholders (Trustpilot is a good place to start) and ratings published by organizations like the Better Business Bureau and J.D. Power.

For help choosing the right policy, reach out to us for a list of trusted insurance professionals.

2. INCREASE YOUR DEDUCTIBLE

The size of your deductible—which is the amount you pay before your insurance coverage kicks in on a claim—is a major factor in your insurance cost.

A low deductible, such as $500, comes with higher premiums, while a higher deductible, like $2,500 or even $5,000, costs less on a monthly basis. In some cases, you may be able to customize your coverage further by designating a different deductible for certain kinds of claims, such as those caused by named storms or natural disasters.

If you are confident that you have enough in savings to cover that initial outlay if needed, choosing a higher deductible can help you save significantly over the long term. According to Nerdwallet, raising your deductible from $1,000 to $2,500, for example, could save you an average of 11% each year. ⁸

3. BUNDLE MULTIPLE TYPES OF INSURANCE

Insurers want to get as much of your business as possible, so most offer significant discounts if you bundle your home and auto insurance, meaning that you package the two policies together. With some insurers, you can get even higher savings by bundling more than home and auto—RV, boat, jewelry, and life insurance are potential options to consider.

According to US News and World Report, insurers typically offer customers who bundle home and auto insurance 10-25% savings on monthly premiums. This approach also has other advantages: It cuts down on your paperwork, and in some cases—like if a storm damages both your home and car—you may be able to pay just one deductible instead of two when you file a claim. ⁹

However, before you sign on the dotted line, remember strategy #1 and be sure to shop around. In some cases, bundling isn’t the cheaper option, and bundling deals vary between companies. It’s also critical to carefully check that the bundled coverage offers everything you need.

4. ASK ABOUT AVAILABLE DISCOUNTS

Did you know that being a nonsmoker might qualify you for a home insurance discount? ⁸ Some insurers offer some surprising incentives for policyholders who pose a statistically lower risk of filing a claim. In the case of nonsmokers, that’s because of the decreased risk of a home fire.

Many carriers also offer discounts to military-affiliated families, homeowners in certain professions, such as teachers or engineers, or recent homebuyers. Sometimes, you can also save by opting for paperless billing or paying your premiums for a full year upfront. ¹⁰

Since available discounts vary significantly between insurers, the best strategy is to simply ask a representative for the full list of available discounts so you can see what cost savings might be available to you.

5. AVOID MAKING SMALL CLAIMS

Worried that your premiums will rise significantly in the future? Try to avoid making a claim unless truly necessary. Many insurers offer discounted rates to policyholders who go a certain number of years without filing a claim, and filing multiple claims typically results in large increases. ¹⁰ If you file too many, you may even risk nonrenewal of your policy. ¹¹

Since the cost of even a small premium increase can add up significantly over time, if you have minor damage to your home—for example, if a few shingles blew off your roof in a windstorm—it may be a wiser long-term financial decision to pay out of pocket instead of filing a claim.

If the cost of the repair is less than your deductible, it never makes sense to file, and if it’s just slightly above your deductible, it’s also usually best to pay for the repairs yourself. Additionally, always be sure to review your policy before you make a claim. Even claims that are denied can count against you, so it’s not worth filing if the damage is clearly excluded from coverage. ¹¹

If you find yourself in this situation, feel free to reach out for a list of reasonably-priced professionals who can help with home repairs.

6. BE STRATEGIC ABOUT HOME IMPROVEMENTS

Insurance premiums alone may not be the deciding factor for a home improvement project, but it’s important to know how renovations could impact your rates—for better or worse.

For example, some upgrades and repairs can reduce your premiums by making your home safer or less prone to certain types of damage. These include: ¹²

● Upgrading your electrical system

● Updating your plumbing

● Installing a monitored security system

● Adding a fire sprinkler system

● Replacing the roof

On the other hand, some upgrades can raise premiums significantly, either because they increase the value of your home (and therefore the cost to replace it) or because they pose a hazard. These include: ¹²

● Installing a swimming pool or other water features

● Building an extension or expanding your living space

● Upgrading materials, like flooring or countertops

● Adding a fireplace or woodstove

Whether or not your planned renovations are on either of these lists, it’s wise to inform your insurer about changes you make to your home—otherwise, you may risk gaps in coverage. And you’re always welcome to check with us before you begin any home improvement project to find out how it could impact the value and resale potential of your home.

BOTTOMLINE: Protect Your Investment Without Sacrificing Enjoyment of Your Home

Getting the coverage you need for financial security without overpaying can be a tricky balance, especially in today’s environment. But remember, while it’s important to find the best deal you can, home insurance isn’t an area to skimp on.

For advice on your specific risks and the type of coverage you need, we recommend consulting with a knowledgeable insurance professional. We’re happy to connect you with a trusted adviser in our network. And if you’re considering a home renovation, feel free to reach out for a free consultation on how it might affect your property value (and your premiums).

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, insurance, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

SOURCES:

1. Climate.gov -
https://www.climate.gov/news-features/blogs/beyond-data/2023-historic-year-us-billion-dollar-weather-and-climate-disasters

2. Bankrate -

https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-cost/

3. Policygenius -
https://www.policygenius.com/homeowners-insurance/home-insurance-pricing-report-2023/

4. CNN -

https://www.cnn.com/2023/09/20/business/insurance-price-increase-risk-climate-first-street-dg/index.html

5. BBC -

https://www.bbc.com/news/business-66367224

6. US News -

https://realestate.usnews.com/real-estate/articles/how-climate-change-could-impact-your-home-value

7. Nerdwallet -

https://www.nerdwallet.com/article/insurance/how-to-shop-for-homeowners-insurance

8. Nerdwallet -

https://www.nerdwallet.com/article/insurance/save-on-homeowners-insurance

9. US News and World Report -

https://www.usnews.com/insurance/homeowners-insurance/how-to-bundle-home-and-auto-insurance

10. Marketwatch -

https://www.marketwatch.com/guides/insurance-services/how-to-save-on-homeowners-insurance/

11. Bankrate -

https://www.bankrate.com/insurance/homeowners-insurance/when-to-file-a-home-insurance-claim/#when

12. Bankrate -

https://www.bankrate.com/insurance/homeowners-insurance/home-insurance-and-renovations/

Downsize Your Home, Rightsize Your Life: How to Choose the Ideal Smaller Home

Wed, 13 Mar 2024 21:29:04 GMT

When you've lived somewhere for many years, it can be tough to say goodbye. But if you (or a loved one) currently have a home that is bigger than necessary or is too high maintenance, it may be time to trade unused square footage for a smaller, more manageable space.

Take it from the downsizers who’ve been there: Although living small might require some adjustments, it can also be liberating––especially if you're in a stage of life where past responsibilities have given way to new possibilities and adventures.

In fact, many downsizers report feeling invigorated by the change, according to real estate journalist and author Sheri Koones. “It scares people to think of moving into a smaller space,” said Koones to the Associated Press. “But every single person I interviewed who has made the transition says they are so happy they did.”1

The key is to find somewhere you can live well and move around comfortably, without feeling overly restricted. If you like the idea of aging in place or are already in your golden years, you may also want to look for signs that a new home can conveniently age with you.

With that in mind, we recommend focusing your search around three key factors: desired lifestyle, optimal design, and long-term accessibility. Read on for specific tips, then call us for a free consultation. We can help you identify the types of homes that are best suited to living large with less.

Do you have a loved one whose housing needs have changed?

Share this information to help start a conversation about the benefits of downsizing.

DESIRED LIFESTYLE

The best part of downsizing is the lifestyle you unlock when you trade square footage for convenience. With fewer chores and home maintenance tasks to worry about, you can instead channel your energy into other pursuits.

For example, instead of spending your afternoons working in the yard or cleaning, you can catch up on the news, read a bestseller, start a new craft project, or pursue other hobbies. You may even be able to travel or spend more time with friends and family.

Research shows that individuals over the age of 65 report more life satisfaction when they have the opportunity to spend time around children, talk with friends, socialize in community centers, volunteer, or engage in hobbies. But that can be hard to do regularly when you've got a home that needs constant attention or you live far from your community.2

As you compare potential homes, keep in mind the type of lifestyle you envision. Do you plan to travel? If so, a home with extra security, such as a condominium or gated community, may give you some welcome peace of mind. Or do you plan to have friends and family stay overnight? In that case, you may want to look for a floor plan with flex space or a property that has access to separate guest suites.

Alternatively, a senior community that offers catered meals and housekeeping may be a better choice if you or a spouse need extra support.

Action item: Grab a pen and take some time to envision what your ideal future might look like. Write down the activities and hobbies you hope to add to your life or continue with going forward, as well as the chores and responsibilities you'd love to drop. We can use those answers to help shape your house hunt.

OPTIMAL DESIGN

Even though your new home will be smaller, that doesn't mean it has to feel cramped. As Koones explains, “The key is to have a home that is efficiently designed, both in terms of energy use and in terms of space.”1

Look for features that can help make a space feel bigger, like high ceilings, large windows, and an open layout.

Built-in shelving that extends all the way to the ceiling can also make a small room feel more expansive by helping to draw the eye upward. The same goes for highly placed window treatments and striped or mural-style wallpaper, says interior designer, Kati Greene Curtis. “You’ll feel like you’re walking into the scene,” said Curtis to the Washington Post.3

Efficient layouts with flexible, multi-purpose rooms and few, if any, hallways work especially well for small-scale living. You can also limit dead space in a home by steering clear of layouts with awkward corners, unusable nooks, and other space-eating design elements.

In addition, look for features that support a simpler, lower-maintenance lifestyle, such as easy-care floors, durable countertops, and bare walls with little, if any, crown molding.

Don’t write off a home too soon, though, if it feels narrow or congested because of outdated design or poor staging. Cosmetic issues that visually shrink a space are often easy to fix.

For example, you can instantly make a room feel bigger just by painting it a lighter shade. Adding mirrors and swapping out heavy curtains for sheer ones can also be effective. Plus, utilizing multipurpose furniture with hidden storage is a great way to maximize space.

Action item: Make a note of your must-keep furniture and other items. Then pull out a measuring tape and write down the dimensions. Once it's time to visit homes, we'll have a more accurate sense of what will fit and how much space you’ll need.

To get your creative juices flowing, you may also want to flip through some design magazines that specialize in compact living or catalogs that feature space-saving furniture and accessories. If you give us a list of your favorite features, we can use it to pinpoint homes that are a good match.

LONG-TERM ACCESSIBILITY

Buying a home that you can age well in can be a great way to boost your health prospects and happiness. According to the U.S. Department of Housing and Urban Development (HUD), homeowners who age in place instead of in an institutional environment not only save money over time, they also enjoy greater health and emotional benefits.4

Aging in place is also popular. According to survey findings from the National Poll on Healthy Aging, the vast majority of adults between the ages of 50 and 80 would prefer to age in their own homes.5

But even though many adults want to age in place, only 34% of surveyed adults currently live in a home with the features to make it possible.5

If you're already in the second half of your life, then it's smart to prioritize accessibility now, even if you're highly mobile.

Choosing an accessible home will improve your odds of staying put for longer. Plus, you never know when you might need an accessible light switch, handrails in the bathroom, or a seat in the shower, says Sheri Koones. “Yes, older people with disabilities need them, but even younger people break a leg skiing, or have situations where they want a barrier-free shower.”1

As you consider your options, try to imagine what your needs might be as you get older and be proactive in identifying potential obstacles, recommends the National Council on Aging (NCOA).6

For example, a single-level home or one with wide enough stairs for a stair lift or access to an elevator may be a more practical choice than a home with lots of narrow stairs. Alternatively, a home with at least one ground-level bedroom and bathroom may also work well for you.

Consider your needs outside the home, as well: If you frequently visit the doctor, grocery store, or community center, for example, then you may benefit from choosing a property nearby.

Action item: Review the checklist below, adapted from the National Institute on Aging’s home safety worksheet, or download the full version from the agency’s website.7 Highlight the items that are most important to you. We can reference these guidelines as we consider potential homes and suggest ways to adapt a property to meet your current or future requirements.

HOME SAFETY CHECKLIST 7

If a walker or wheelchair is needed, can the entrances to the house be modified — perhaps by putting in a ramp to the front door?
Are there any tripping hazards at exterior entrances or inside the house?
Are the hallways and doorways wide enough to accommodate a wheelchair if needed?
Does the home have at least one ground-floor bedroom and bathroom?
Are there any staircases, and if so, could they accommodate a stair lift?
Is the house well-lit, inside and out, particularly at the top and bottom of stairs?
Could handrails be installed on both sides of the staircase?
Is there at least one stairway handrail that extends beyond the first and last steps on each flight of stairs?
Are outdoor steps sturdy and textured to prevent falls in wet or icy weather?
Are there grab bars near toilets and in the tub or shower?
Have a shower stool and hand-held shower head been installed to make bathing easier?
Is the water heater set at 120° F to avoid scalding tap water?
Are there safety knobs and an automatic shut-off switch on the stove?
Have smoke and carbon monoxide alarms been installed near the kitchen and in all bedrooms?
Are there secure locks on all outside doors and windows?

BOTTOMLINE

You don't have to compromise on comfort to downsize successfully. We can help you strategize your next move and identify the best new home for you—whether that's a smaller home for rent or another one to call your own. We take pride in offering a full-service real estate experience and assisting our clients through all stages of the real estate journey. And we’ll go the extra mile to maximize your current home's sales price so that you’re set up for financial security.

Sources:

Associated Press (AP) -
https://apnews.com/article/lifestyle-f094372b46bae82020c174907eb953c0
Healthcare (Basel) -
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10671417/
Washington Post -
https://www.washingtonpost.com/home/2023/02/07/make-small-room-appear-larger/
HUD User -
https://www.huduser.gov/portal/periodicals/em/fall13/highlight2.html
National Poll on Healthy Aging - https://www.healthyagingpoll.org/reports-more/report/older-adults-preparedness-age-place
National Council on Aging (NCOA) - https://www.ncoa.org/adviser/medical-alert-systems/downsizing-for-aging-in-place/
National Institute of Health (NIH) - https://www.nia.nih.gov/sites/default/files/2023-04/worksheet-home-safety-checklist_1.pdf

KW Shredding Event

Wed, 13 Mar 2024 19:32:07 GMT

You are invited to our Shredding Event

As a thank you to our clients, we are offering free paper shredding for one day only: Saturday, April 13, 2024.

Safely get rid of those important papers that have been piling up around your home.

Shredded your sensitive, personal documents is one of the best ways to avoid identity theft!

Mobile shredding services provided by Richter Mobile Shredding of Souderton.

Date: Saturday, April 13, 2024

Location: Keller Williams Realty Group Office

431 S. West End Blvd.

Quakertown PA 18951

Time: 10am - 12 noon

PAPER ONLY!
NO x-rays, hanging folders, ring binders or cardboard.

*NO BUSINESSES please

Upgrade Your Home With These 2024 Design Trends

Wed, 14 Feb 2024 19:02:05 GMT

One of the best parts of owning a home is the freedom to make it truly your own with design choices that reflect your personality and lifestyle. Whether you lean toward contemporary design or a farmhouse aesthetic, your home is your canvas.

Even so, it’s always smart to think about the long-term impact those decisions might have on your home’s value. Choosing over-personalized or unpopular materials and finishes could make your home less appealing to future buyers. And selecting out-of-style or overly-trendy elements could cause your home to feel dated quickly.

To help inspire your design choices, we’ve rounded up some of the top trends we’re watching in 2024. Keep in mind, not all of these will work well in every house. If you plan to list or renovate your property, give us a call. We can help you realize your vision and maximize the impact of your investment.

Spa-Like Bathrooms

We could all use a little more relaxation in our lives—so why not bring the spa into your home? In 2024, more homeowners will remodel their bathrooms to turn them into personal oases.1,2

If you’re undertaking a renovation, consider upgrading fixtures and materials. Handmade tile and custom cabinetry can add a touch of style and luxury. Trade stark whites for warm neutrals to create a more relaxed feel—think light wood tones, creams, and beiges.3 Complete the look with soft ambient lighting from a backlit mirror or pair of decorative sconces.2,3

If you want to maximize the mind-body benefits of a relaxing bathroom (and have the budget to spare), you might consider installing a steam shower, infrared sauna, or cold plunge tub.3 Not looking to spend as much? Even minor upgrades like a massaging showerhead or heated towel bar can add some pampering to your morning routine.3

But remember, if you’re modifying your bathroom, it’s always wise to work with experienced and licensed professionals to avoid water damage that could lead to costly repairs. We can refer you to a trusted contractor for help.

Maximalist Decor

In 2024, maximalism is back in vogue, contrasting the neutral aesthetic that dominated design in recent years. While maximalism can be summed up as “more is more,” there’s nothing sloppy or cluttered about this look. Instead, it’s all about intentional curation.4

Hallmarks of maximalist style include rich and saturated colors, bold wallpaper, statement rugs and furniture, and lots of art. And forget matching—maximalist interiors often include plenty of contrasting colors, textures, and patterns selected to complement one another.4

If you’re trying to embrace maximalism on a budget, check out thrift stores. They’re often a great place to find unique furniture, colorful rugs, and interesting art or collectibles. Before you invest in rolls of vintage wallpaper, though, it’s important to note—if you plan to sell your home in the near future, the maximalist look won’t appeal to every buyer.

We typically advise sellers to remove clutter and personal items to help buyers imagine their own future lives within the home. Sometimes, that means repainting or redecorating in a more neutral palette. Of course, this shouldn’t stop you from embracing your own style now—just be aware that you may need to walk back your aesthetic prior to selling. We can advise you when the time comes.

Japandi Style

Not quite ready to embrace maximalism? Japandi style, which blends Japanese and Scandinavian influences, offers a more subdued approach that still has plenty of character. The look dates back about 150 years to a time when many Scandinavian designers were traveling to Japan for inspiration.5

Japandi style brings together clean lines, simplicity, and a focus on natural elements and light. It emphasizes the beauty in imperfection, or “wabi sabi,” and a deep connection to Mother Earth. And like Scandinavian decor, the look prioritizes comfort and a sense of sanctuary in the home.5

Interested in playing with Japandi? Common features include calming color palettes and organic materials like raw wood and bamboo. Try softening harsh edges with softer textures, like cozy blankets and ceramic pieces.

The look also minimizes clutter, but that doesn’t mean you need to be a minimalist. Instead, Japandi style embraces storage solutions like baskets, folding screens, and sofas with built-in storage to give everything a place.6 If you’d like some help implementing Japandi-style organization in your home, contact us for a list of recommended professionals.

Mixed Metals

Mixing metals used to be a “no-no.” But in 2024, it’s definitely a “yes.”

According to designers, mixing the colors and finishes of metal fixtures and hardware can bring visual interest to a room—as long as you go about it the right way.1,7

The most important rule to keep in mind is to stay away from near matches, like brass and gold—that’s more likely to look accidental than intentional. Instead, go for bold contrast: Think polished nickel and matte black.7

Some designers recommend using each metal at least twice in a room to make it look cohesive. Another good rule of thumb is to stick to two types of metals in a small room and two to three in a larger space.7

Finally, you might think about playing with undertones (brass is warm, chrome is cool) to change the “temperature” of a room. And don’t be afraid of a little shine—many designers predict that a retro, high-polished look will replace matte finishes in 2024.8

Want some help sourcing fixtures and hardware in a variety of finishes? Reach out for a list of our favorite retailers.

Wood Cabinetry And Accents

The all-white kitchen has been ubiquitous in recent years. But in 2024, classic wood cabinetry is back in a big way.9 In fact, industry professionals surveyed by the National Kitchen & Bath Association predict that wood cabinets will be more popular than white in the next three years.10

Natural wood tones offer a sense of warmth and natural beauty.11 And today’s cabinets aren’t anything like the heavy, dated versions of the past. Instead, light to medium versions—like white oak and walnut—and warmer undertones are trending.9

The addition of wood-grain accents to painted kitchen cabinets—like with a contrasting island or range hood—is another popular option.12 And wood continues to be a favored choice for flooring. A recent survey found that 40% of homeowners opted for either hardwood or engineered wood when renovating their kitchen floors.13

You can also expect to see more wood in bathrooms in 2024. According to Houzz, last year, wood vanities surpassed white in popularity for the first time in recent years, and designers expect the trend to continue.12 While white countertops and walls still dominate bathrooms, a wood-grained vanity brings a relaxed, organic element into the space.

Dreaming about new cabinets or hardwood floors? We’d be happy to share a list of recommended trade professionals who can help.

Timeless Renovations

In its latest Kitchen Trends Study, Houzz found that “nearly half of homeowners (47%) opt for a timeless design as a sustainable choice during renovations.” Respondents cited long-term cost effectiveness and environmental consciousness as their main motivators.14

In a rapidly changing, technology-driven world, it’s no surprise that homeowners want a nurturing space with lasting appeal—especially if they plan to stay in their homes for years to come.12

Traditional materials and quality craftsmanship lie at the core of timeless design, which some designers are calling “quiet luxury.”15 Think of enduring classics, like hardwood floors, hand-crafted tiles, and marble countertops.12 A timeless color palette will also often include warm neutrals and muted shades of blue and green.15

If you’re thinking about remodeling, it’s wise to incorporate as many classic elements as you can. These stylistic choices tend to hold up well over time, which can prolong the life of your investment and make it easier to sell your home down the road. If you’d like advice on an upcoming project, contact us for a free consultation.

BEAUTIFY YOUR HOME WHILE BOOSTING ITS VALUE

If you’re thinking about making design changes—whether that’s repainting or a full remodel—it’s important to be informed about how your choices could impact your home’s resale potential. Buyer preferences can vary significantly based on your home’s neighborhood and price point. Before you begin your project, reach out to discuss your plans and how they could impact the value of your home.

Sources:

HGTV -
https://www.hgtv.com/design/decorating/design-101/2024-home-and-garden-design-trends
The Spruce -
https://www.thespruce.com/2024-design-trends-8411457
The Spruce -
https://www.thespruce.com/2024-bathroom-design-trends-8380169
Homes and Gardens -
https://www.homesandgardens.com/interior-design/maximalist-decor-ideas
The Spruce -
https://www.thespruce.com/japandi-design-4782478
House Beautiful -
https://www.housebeautiful.com/room-decorating/a45851530/japandi-interior-design-style/
The Spruce - https://www.thespruce.com/4-rules-designers-say-you-should-follow-or-ignore-when-mixing-metals-in-a-room-5199031
The Spruce -
https://www.thespruce.com/2024-lighting-trends-8365056
Good Housekeeping -
https://www.goodhousekeeping.com/home/decorating-ideas/a45576463/wood-kitchen-cabinet-trend-2023/
Better Homes and Gardens -
https://www.bhg.com/2024-kitchen-trends-840656
Real Simple -
https://www.realsimple.com/2024-kitchen-cabinet-trends-masterbrand-7974600
Houzz -
https://www.houzz.com/magazine/28-home-design-trends-that-will-define-2024-stsetivw-vs~172317389
Houzz -
https://www.houzz.com/magazine/10-kitchen-trends-to-watch-in-layouts-features-and-more-stsetivw-vs~165050822
Houzz -
https://www.houzz.com/magazine/2023-u-s-houzz-kitchen-trends-study-stsetivw-vs~164970160
Better Homes and Gardens -
https://www.bhg.com/quiet-luxury-home-trend-7554026

Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024

Fri, 05 Jan 2024 18:30:57 GMT

A growing share of home buyers and sellers sat on the sidelines last year as the pace of home sales continued its downward trajectory. ¹ In fact, since the Federal Reserve began its series of interest rate hikes in 2022, the combination of higher borrowing costs and record-high home prices has fostered the steepest real estate market slowdown since the 2008 recession. ²

Priced out of the market, a generation of would-be buyers has been forced to delay their plans for homeownership. ³ At the same time, current owners—reluctant to give up their pandemic-era mortgage rates—are waiting to sell, which has resulted in a sharp drop in listings. ⁴

But there may be some relief in sight: In December, the Fed signaled that it was done raising interest rates—and suggested that it could cut rates by 0.75% over the coming year. While mortgages don’t directly follow the federal funds rate, they typically move in tandem—so cheaper home loans may finally be on the horizon. ⁵

Lower mortgage rates should bring some much-needed movement back into the real estate sector. But with a market this fluid, the home buyers and sellers with an edge will be those who proactively leverage a real estate agent’s on-the-ground expertise and stay flexible so that they can quickly adapt to changes.

What does that mean for you? Read on to learn more about the current state of the U.S. housing market, the potential opportunities for buyers and sellers, and economists’ predictions for the year ahead.

HOME PRICES WILL REMAIN RELATIVELY STABLE

Not even 8% mortgage rates could bring home prices crashing down in 2023, as some prospective home buyers may have hoped. In fact, on average, U.S. property values ended the year higher—with declines in some areas of the country offset by appreciation in others. ⁶

Prices typically fall when rising interest rates drive down demand. So what’s keeping home values high?

Mike Simonsen at Altos Research points to a nationwide housing shortage: “Declining home prices probably require that supply-and-demand imbalance, and what we have is really a balance. There's a balance between low demand and low supply.” ⁷

Analysts expect that equilibrium to continue to prop up home prices in 2024, although the specific forecasts vary. For example, economists at Realtor.com predict that the median home price will fall slightly, by 1.7%, while those at Fannie Mae project modest price growth of 2.8%. ^6,8

However, experts widely agree: Mortgage rates will be the largest driver of property values. If rates fall faster than expected, more buyers will enter the market—which could send home prices soaring higher.

What does it mean for you? There’s no evidence that home prices are headed for a major decline. So if you’re ready and able to afford a home, this is a great time to test the waters. The best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.

And if you’ve been waiting to sell your home, this could be your year. Price growth has slowed, so now is the time to maximize your equity gains while minimizing your competition. Contact us for recommendations and to find out what your home could sell for in today’s market.

MORTGAGE RATES SHOULD FINALLY TREND DOWN

The best news we've got incoming for 2024? The extra-high mortgage rates that have weighed heavily on the real estate market may finally be headed south.

At its December meeting, the Fed signaled that the worst is likely behind us and that it expects to cut its overnight rate in 2024. Analysts predict that mortgage rates will fall in lockstep. ⁵

“Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year,” said Freddie Mac’s Chief Economist Sam Khater following the announcement. ⁹

The average 30-year fixed mortgage rate has already declined from an October high of around 8%, and analysts at Fannie Mae, the Mortgage Bankers Association, and Realtor.com all forecast that rates will trend down this year, ending 2024 closer to 6%. ⁷

However, it’s not all good news: It appears that the days of 3% mortgage rates are firmly behind us. “As long as the economy continues to motor along, the new normal of higher rates is here to stay,” explains Greg McBride, chief financial analyst for Bankrate. ⁴ So, when it comes to a home loan, borrowers may need to adjust their expectations.

What does it mean for you? If you're a prospective home buyer, declining mortgage rates could give you the opportunity to lock in a more affordable monthly payment. And if you purchase before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask us to refer you to a mortgage broker who can help you shop around for the best option.

Sellers also have reason to celebrate buyers' lower interest rates: As the barriers to entry to the housing market decline, they could enjoy more or better offers. Reach out to discuss how we can help you maximize your home’s sales potential.

LOWER RATES WILL BRING SOME BUYERS AND SELLERS BACK TO THE MARKET

Over the past couple of years, higher mortgage rates have cooled home buyer demand. They’ve also delayed the plans of many home sellers, who have been reluctant to trade in their current mortgages for loans that are several points higher.

With so many market participants playing the waiting game, the real estate sector has slowed significantly. National Association of Realtors (NAR) Chief Economist Lawrence Yun estimates that the number of existing home sales fell by 18% last year following a 17% decline in 2022. ¹⁰

However, as financing costs tick down, sales volume is expected to rise. “Lower mortgage rates would help spur home sales activity, which [is] expected to increase in 2024 compared to 2023,” explains Selma Hepp, chief economist at CoreLogic. “Declines in mortgage rates will drive more sellers to trade their existing home and help add much-needed inventory to the market, leading to more transactions.” ⁴

There’s also evidence that the patience of holdout home buyers may be waning, despite higher borrowing costs. A recent survey by Bank of America found that the number who are willing to wait for prices or mortgage rates to decline before making a purchase fell from 85% to 62% in just six months. ¹¹

“When it comes down to it, if buying a home is your goal and within your budget, the best time to buy is when you're ready financially and you can find a home that fits your needs,” Matt Vernon, head of consumer lending at Bank of America, advised in a recent release. “Even in the current interest rate environment, there are clear benefits to purchasing a home and beginning to build equity.” ¹¹

What does it mean for you? If you’ve been waiting to buy a home, you might want to consider purchasing before the competition picks up. Pent-up demand could bring a flood of buyers back into the market as mortgage rates decline. Contact us if you’re ready to begin your home search.

If you’re hoping to sell this year, you may also want to act fast. An increase in listings will make it harder for your home to stand out. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.

THE HOUSING SUPPLY SHORTAGE WILL PERSIST

Will home buyers who are eager for options have more homes to choose from this year?

Yun thinks so. He believes sellers will soon grow weary of waiting to list. “Pent-up sellers cannot wait any longer. People will begin to say, ‘life goes on,’” the NAR economist speculated at a November conference. “Listings will steadily show up, and new home sales will continue to do well.” ¹⁰

But not everyone agrees. Economists at Realtor.com forecast that inventory could drop by as much as 14% this year. The decline in existing homes for sale has been compounded by a persistent shortage of new construction, with single-family housing starts falling 10.3% in 2023 and 11.2% in 2022. ⁶

Even so, newly-built homes are playing an increased role in easing the supply crunch, accounting for around one-third of all homes for sale in 2023—which was twice the historical average. ¹² But new construction alone isn’t expected to fill the inventory gap.

According to First American Financial Corporation’s Chief Economist Mark Fleming, the U.S. currently has a shortfall of around one million homes, and conditions won’t ease until individual owners re-enter the market. “Only when more homeowners decide to sell, and then buy again, will housing supply and the pace of sales return to anything resembling normal.” ¹³

What does it mean for you? Inventory remains tight, but buyers can benefit from the search expertise of a real estate professional. We can tap our extensive network to access off-market and pre-market listings while helping you explore both new construction and existing homes in our area.

While sellers will continue to benefit from the low-inventory environment, they should be prepared to compete against brand-new homes. We can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers.

WE'RE HERE TO GUIDE YOU

While national real estate forecasts can give you a “big picture” outlook, real estate is local. And as local market experts, we know what's most likely to impact sales and drive home values in your neighborhood. As a trusted partner in your real estate journey, we'll keep our ears to the ground so that we can guide you through the market's twists and turns.

If you’re considering buying or selling a home in 2024, contact us now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals.

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice.Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. CNN -
https://www.cnn.com/2023/10/19/homes/existing-home-sales-september/index.html

2. Goldman Sachs -
https://www.gspublishing.com/content/research/en/reports/2023/10/23/2d814362-a656-4cb3-8586-bea8591188e3.html

3. ABC News -
https://abcnews.go.com/US/millennials-priced-homeownership-feeling-pressure/story?id=105032436

4. Bankrate -
https://www.bankrate.com/real-estate/housing-market-2024/

5. CBS News -
https://www.cbsnews.com/news/interest-rates-are-paused-heres-why-thats-good-news-for-homebuyers/

6. Realtor.com -
https://www.realtor.com/research/2024-national-housing-forecast

7. NerdWallet -
https://www.nerdwallet.com/article/mortgages/2024-homebuying-trends-property-line-november-2023

8. Fast Company -
https://www.fastcompany.com/90991612/home-price-2024-outlook-fannie-mae

9. Freddie Mac -
https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-below-seven-percent

10. National Association of Realtors -
https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-forecasts-existing-home-sales-will-rise-by-15-percent-next-year

11. Bank of America -
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/12/bofa-report-shows-fewer-prospective-homebuyers-willing-to-wait-f.html

12. Marketplace -
https://www.marketplace.org/2023/11/27/mortgage-rates-new-home-sales/

13. First American -
https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024

Vickie Landis Rentsel is to be honored at an upcoming Phantoms Hockey Game

Mon, 11 Dec 2023 19:39:55 GMT

Vickie will be honored on December 27, 2023. This recognition is part of the Phantoms’ ongoing Hometown Heroes initiative, which singles out local military heroes during games at the PPL Center.

Vickie Landis-Rentsel joined the Air Force in 1986. She served for the 33rd Medical Service Squadron at McGuire Airforce Base and later the 21st at Patrick Airforce Base. Even after an honorable discharge in 1994, the training and knowledge she gained as a Mental Health Specialist remained foundational to her work.

For over 33 years, Vickie has grown a real estate business that caters to Eastern Pennsylvania, covering Philadelphia to the Lehigh Valley. Because of her real estate profession, Vickie has been privileged to be able to remain committed to serving her community by providing free mentorship, financial aid, and housing assistance to individuals who have been affected by trauma.

In 2021, Vickie established REST Connection, a non-profit organization that offers services to at-risk women, enabling them to achieve social and economic independence. To learn more about REST Connection and join Vickie on her mission to help women at risk, visit restconnection.org.

To purchase tickets, please visit our fundraising link: https://fevo-enterprise.com/event/Restconnection . $5 from each ticket sale will go back to REST Connection!

The mission of REST Connection is to provide direct services to vulnerable and at-risk women to empower them to achieve social and economic independence by connecting them with the tools, services, and support needed to equip them to give back to their community. They embrace any woman at risk who is committed to discovering and embracing her full potential by embarking on a guided journey to break destructive cycles and develop the skills and mindset needed to thrive in life, relationships, and her community. While they are not equipped to support women who are in active addiction or have untreated mental health disorders, we do partner with organizations that provide those front-line services to prepare the woman to graduate into our program.

The mission of the Vickie Landis Rentsel Team at Keller Williams Realty Group is to provide each client with the information, resources and support services needed to make wise, informed decisions regarding all types of real estate transactions. With more than 33 years of real estate experience, Vickie has developed proven systems and strategies that simplify the complicated maze of buying and selling real estate. When working with them, you get the combined expertise, energy, and ingenuity of a team of the area's premier Realtors.

Celebrate Sustainably: 5 Ideas for an Eco-Friendly Holiday at Home

Fri, 01 Dec 2023 19:33:25 GMT

It’s the most wonderful time of the year. But for many families with festive plans and hectic schedules, it’s also the most wasteful.

According to one survey, for example, 60% of respondents admitted to throwing away more than usual during the holiday months as they filled up their trash bins with uneaten food, wrapping paper, gift bags, and commercial packaging.1

The reality is, Americans routinely toss about 25% more trash between Thanksgiving and New Year’s than at any other time of year, according to the U.S. Environmental Protection Agency.2 In fact, we throw away so much ribbon during the holidays—around 38,000 miles’ worth—that the discarded material could easily run more than one and a half times around the Earth.3

As our holiday schedules grow busier, many of us also forget to take simple steps at home to shrink our carbon footprints or prepare for a more energy-efficient winter.

Luckily, it’s not that hard to shift our habits and plan for a more sustainable and environmentally-friendly celebration. Here are five ideas for ringing in the holidays this year without overstressing Mother Nature.

1. PREP YOUR HOME FOR WINTER

Depending on the amount of time and resources you have available, you could cut your carbon emissions significantly this season just by winterizing your home.

Investing in a more sustainable way to warm up your surroundings—such as a geothermal heat pump or solar heating—could be especially impactful if your current HVAC is underperforming and you can afford a more expensive system.4 Replacing old appliances or things like chronically leaking windows with newer, more energy-efficient solutions can also save you money over the long term.5 Plus, you may be able to claim a federal energy-efficient tax credit for up to 30% of your investment.6

You don’t necessarily have to spend a lot upfront, though, to prep your home for winter. Even simple tweaks—such as sealing windows and doors or upgrading to more energy-efficient window coverings—can lower your energy consumption and reduce your carbon footprint.7

Incorporating environmentally healthier habits into your routine can also make a meaningful difference. According to the U.S. Department of Energy, for example, dialing back your thermostat by as little as seven to 10 degrees for eight hours a day can trim up to 10% from your bills.8

Consider a home energy assessment to help you pinpoint what needs fixing. Depending on your comfort level, you can audit your home’s energy efficiency yourself with the help of the Department of Energy’s DIY Guide.9 Or you can hire a professional, such as a home energy auditor or weatherization contractor.10 Call us for a recommendation or personal referral.

2. DECORATE SUSTAINABLY

Decking your home’s halls is one of the most jolly seasonal activities of all. There’s something special about gathering ’round with friends and family and relaxing in the comforting glow of a festively decorated space.

But since so much of the holiday-themed decor that’s sold in stores is notoriously disposable, it can be a challenge to spruce up your home sustainably. Cheaply produced and rarely recyclable, store-bought decorations are often made with plastic, styrofoam, and other environmentally unfriendly materials that can crowd landfills for generations.2

Luckily, you don’t have to trade style for sustainability when making your holiday decor. Thrifting is still in vogue, so consider crafting new and on-trend decorations out of secondhand finds or upcycling items already in your closet.

For example, you could transform an ill-fitting sweater into a holiday-themed pillow, turn teacups into candles, or turn leftover shipping boxes into creative decorations. Alternatively, natural decor foraged from your yard—such as dried leaves, flowers, pine cones, and branches—can make for especially beautiful wreaths and centerpieces.

If you do purchase store-bought decor, proactively look for the most environmentally friendly options. LED lights are now ubiquitous in stores and use far less energy than incandescent versions.11 Similarly, if you celebrate with a Christmas tree, think twice about choosing an artificial option. Plastic trees may be reusable, but natural trees are generally thought to have a smaller carbon footprint.1

3. CUT BACK ON HOLIDAY SHOPPING

Shopping online or at the mall may be convenient, but it can be costly for the environment. The greenhouse emissions from shipping and transportation alone add up fast, as do the emissions that are produced when an item is first made. According to the online consignment and thrift store, thredUp, 4.5 billion pounds of carbon emissions could be saved if every American bought just one used item instead of new this year.12

Splurging on brand-new products also makes it more likely that the gently used but still functional items that you’ve got at home will wind up in the trash.

Rather than buy new, check vintage stores and consignment shops for unique gifts that you and your recipient can both feel good about. According to research by thredUp, most people are open to receiving gently-used presents, especially if they’re socially-conscious members of Gen Z.12 Alternatively, consider regifting items that you haven’t used, upcycling something you own, or try crafting gifts by hand.

Giving away special experiences, such as concert tickets or community memberships, may also be a more eco-friendly option. So is donating to a favorite charity in a gift recipient’s name or offering gifts of time, such as promising to help a loved one clean out their garage or fill their freezer with home-cooked meals.

Research shows that gift recipients often value thoughtful gifts with sentimental value, especially if they’re homemade or nostalgic or will provide them with a unique experience.13

And if you prefer to buy something tangible, look to local businesses that source or manufacture their goods nearby. Craft fairs and community markets are a great place to start. Or, give us a call and we’d be happy to share a list of our favorite local stores, depending on the type of gift and your budget. We make an effort to patronize the independently-owned shops and restaurants around town and would love to share our recommendations.

4. GREEN YOUR HOLIDAY DINNER

Do you hail from a family of passionate carnivores? If so, trading your meat for a vegetarian option may seem like a step too far—especially for a holiday dinner.

But swapping your meat for beans isn’t the only way to “’green” your holiday meal. For example, you can consciously source your meat from ethical sellers, prioritize local producers for seasonal sides, and serve enough filling vegetables to satisfy a large portion of your appetite.14

You can also minimize food waste by planning ahead so that you don’t cook more than necessary. Check out the Natural Resources Defense Council’s dinner party “Guest-Imator” to help you narrow down how much food you and your guests will actually need.15 In addition, consider using the USDA’s FoodKeeper App to help track safety recalls and set up calendar reminders for expired food.16

Once you’re finished eating, clear the table immediately and either freeze the leftovers you’d like to keep or send guests home with reusable containers. Or, if you have untouched food that’s still whole or in unopened packaging, take it to a local food bank or homeless shelter. We’d be happy to share a list of options in our area.

5. DONATE OR RECYCLE WHAT YOU CAN

Once the festivities are over, the real work on behalf of Mother Nature begins. This is the time when taking a few minutes at the end of your holiday celebration to swiftly collect wrapping paper and ribbons, unwanted packaging, and other discarded items can make a real environmental difference by reducing what you send to landfills. Your goal should be to reuse what you can and compost or recycle what’s left over.

For example, if you upgrade any electronic gadgets over the holidays, you can conserve resources and limit pollution by donating or properly recycling your old versions. The U.S. Geological Survey estimated that recycling a million laptop computers could help save the energy equivalent of 3,500 homes’ annual usage of electricity.16 Similarly, the EPA says that recycling one million phones can help salvage 35,000 pounds of copper, 772 pounds of silver, 75 pounds of gold, and 33 pounds of palladium.17

It can also help to reimagine new ways to make old traditions more eco-friendly. For instance, if lighting candles is part of your holiday celebration, consider choosing beeswax candles this year instead of the typical paraffin wax, which is a petroleum derivative. Not only are they cleaner burning and less toxic, but the leftover wax is biodegradable and can be composted, unlike traditional candle wax.18

There are also plenty of earth-friendly ways to dispose of a natural Christmas tree without kicking it to the curb. Trees that are sent to landfills release a potent greenhouse gas called methane.19 So, it’s important to properly dispose of a live tree, if you have one, so it can be recycled or composted. If you’re not sure how, reach out for a list of local options.

BOTTOMLINE

We can still celebrate a fun and festive season without draining our community’s resources or sending leftovers to the landfill. And remember, we’re here to lend a helping hand, now or in the new year. This is the perfect time to strategize your next move or set some real estate resolutions with personalized guidance from an expert. Reach out today to schedule a free consultation.

Sources:

35 Tips to Furnish Your New Home for Less

Thu, 09 Nov 2023 18:15:40 GMT

35 Tips to Furnish Your New Home for Less

Buying a new home is one of the most exciting experiences in life. And if you’re like most homebuyers, you’ll be planning your furniture placement and decor before the ink dries on your offer letter.

But before you run to the nearest home goods store, take a deep breath. First, you’ll need to delay any major purchases before you close on your new home. A large outlay or additional line of credit could lower your credit score and, thus, impact your mortgage terms.1 Second, moving and closing costs can add up quickly, so it’s important to be strategic with your remaining budget.

But don’t worry! There are plenty of ways to save on home essentials, and we’ve rounded up some of our favorites to share with you.

Prioritize What You Really Need Before You Start Shopping

According to Home Advisor, the national average cost to furnish a new house is $16,000, but it can easily soar higher. ² That’s why we recommend starting with a thorough assessment of what you already have and what you actually need to start life in your new place. Here are some steps to help you prioritize your purchases and keep spending in check.

● Make a list of everything you need. Going room by room could help you brainstorm—for example, you might list items ranging from a mattress to blackout curtains for your new primary bedroom.

● Inventory what you already have. Cross the big (dining table) to the small (kitchen knives) off your list as you go.

● Divide the remaining items into three groups: things you need right away (a mattress), items you’d like to have in the near future (a coffee table for your living room), and pieces that can wait (an area rug).

● Calculate your budget. Figure out how much money you’ll have available for immediate purchases after the sale has closed, and start researching the items on your priority list to understand how they’ll fit into your budget.

● Don’t rush the process. Bringing older items to your new space doesn’t mean you need to keep them forever. Consider hanging onto pieces that can tide you over for a year or two until your bank account has recovered from the costs of a home purchase.

Before you start shopping, make sure you know which appliances and fixtures are included with your home purchase. We can inform you of the standard contract terms when you’re making an initial offer and note any additional items that you would like to request.

Time Your Purchases To Make The Most Of Seasonal Sales

Did you know that some home items predictably go on sale at certain times of the year? If you can wait to buy these pieces when prices are lower, you could save significantly. Here are some of the best times to buy household essentials: ^3,4

● Bedding and linens: January

● TVs: Black Friday/Cyber Monday and late January (before the Super Bowl)

● Furniture: February and August, as well as Black Friday, Memorial Day, and Labor Day

● Large appliances: Labor Day through October

● Small kitchen appliances: May

● Mattresses: Holiday weekends, especially Memorial Day, Labor Day, and 4th of July

● Vacuum cleaners: April

● Tools: June

● Outdoor furniture: August through October

Generally speaking, holiday weekends (as well as Black Friday and Cyber Monday) tend to be great times to find deals. If the item you’re looking for is seasonal—like patio furniture or holiday decorations—waiting until the end of that season usually pays off.

Find Alternative Shopping Sources

Can’t wait for a sale? It’s time to think outside of the box (the big-box stores, that is). There are plenty of surprising places to find great furniture and houseware deals.

● Check out overstock and liquidation stores. These stores purchase items other retailers haven’t sold and offer them at a steep discount. The inventory can be hit or miss, but you can often get a great deal if you find what you’re looking for. ⁵

● Try private membership/warehouse stores. Retailers like Costco and Sam’s Club often have great deals on home goods. If you’re not already a member, ask family or friends if they are willing to take you to look around before you commit.

● Consider open-box items. When buyers return items like furniture or electronics, retailers can’t always sell them as new, even if they haven’t truly been used. Look online for open-box deals from retailers like Wayfair and Amazon Warehouse or visit local retailers to see what they have in stock.

● Give scratch-and-dent appliances a chance. These appliances are brand new but sold at deep discounts because their external packaging was damaged. Typically, this means that flaws are purely cosmetic—but it’s always possible that the merchandise has suffered more serious damage. So, be sure to check out the appliances carefully and ask about included warranties. ⁶

● Expand your window treatment search. Window treatments can be surprisingly expensive, but it’s often possible to save by buying off-the-shelf offerings in standard sizes. If you need a custom size or material, consider ordering online from a discount supplier and installing them yourself.

● Shop secondhand. In addition to thrift stores and garage sales, Facebook Marketplace, NextDoor, and Craigslist are all great places to find deals in your area.

Are alternative shopping sources still a stretch for your budget? Check out local Freecycle or “Buy Nothing” groups, which are often hosted on Facebook. Participants offer big and small items they no longer need—everything from furniture to clothing hangers—for free to other members. ^7,8

Don’t Be Afraid To Negotiate For A Better Deal

Many people don’t realize that prices for home goods, from furniture to appliances, are often negotiable. While asking for a discount can be intimidating, it’s common practice in many industries, although more so at independently-owned stores than chains. Here are a few tips:9,10

● Comparison shop before you walk into a store. If you can find a lower price for the same item elsewhere, many retailers will match it.

● Ask the store associate or manager for the best price available. They may be able to offer additional discounts or coupons.

● If you can pay in cash, ask if you can get a discount for doing so. The seller may be happy to offer a small price reduction to avoid paying processor fees.

● Call ahead to ask about applicable discounts. Some retailers offer price reductions for active military, veterans, teachers, first responders, or senior citizens on certain days or times of the year.

● Point out scratches or dings to the sales associate. They may be willing to offer a discount to compensate for the imperfection.

● Ask about floor models. Many stores offer these pieces at a lower price, even if they’re in like-new condition.

After you’ve negotiated a killer deal, don’t forget to ask for free or discounted delivery! Sometimes furniture and appliance stores will offer complimentary delivery or installation if you spend a certain amount or purchase multiple items.

Make The Most Of Reward Programs And Coupons

Every penny counts when you’re on a budget—and spending a little extra time maximizing reward programs and discounts is usually worthwhile.

● Sign up for a change of address kit with the United States Postal Service. You’ll need to do anyways to forward mail to your new address, and it comes packed with valuable coupons.11

● Make sure you never miss a sale. Sign up for your favorite retailers’ email lists and follow them on social media for discounts and sale alerts.

● Take advantage of loyalty programs. If you’re making a big purchase or getting multiple items from one store, ask about free loyalty programs. Signing up often comes with an introductory coupon.

● Consider store credit cards (carefully). Store credit cards can offer significant discounts—but only charge items you can pay off right away to avoid interest, and never open new lines of credit until your home purchase is complete, since it can affect your credit score.

● Enroll in coupon and cashback programs. When you’re shopping online, programs like Rakuten and Honey can help you find coupon codes and give you cash back on purchases.

While you’re at it, why not set up a housewarming registry?12 You can share the link with family and friends if they ask what you need—and you can also use it to score discounts. Many stores offer a percentage off to help you buy unpurchased items on your registry.

Get Creative

If you want to avoid a cookie-cutter home aesthetic—and save a few bucks—try reimagining your existing furniture and how it could fit into your new space. Here are a few of our favorite strategies.

● Repurpose what you have. Instead of buying a new item to fit a specific purpose, ask yourself if you can use what you have in a different way. For example, repurpose an old dresser as a television stand or use a mismatched dining chair in your home office.

● Upgrade existing items. Sometimes, a new coat of paint or varnish, or simply swapping out drawer pulls and handles, can lend a new lease on life to an old piece of furniture. You can also keep this strategy in mind if you see second-hand items that would be just right if they were a different color or had nicer fixtures.

● Reupholster instead of buying new. If you have a tired-looking sofa or chair that’s still comfortable and stable, think about getting it reupholstered in new fabric instead of replacing it.

● Get handy. Building furniture is certainly not for everyone, but with some basic tools and help from the internet, you may find that simple items like headboards are well within your grasp. You might also be able to repair pieces you already have and avoid shopping altogether.

Do-it-yourself projects can be fun, but they aren’t for everyone. If you’d like some professional help, reach out for a list of our recommended service providers.

Income Properties Are Trending, But Is Landlord Life for You?

Fri, 13 Oct 2023 00:25:50 GMT

Income Properties Are Trending, But Is Landlord Life for You?

If the thought of investing your money into brick and mortar—or perhaps some stylishly-painted siding—excites you, join the club.

Investing in real estate has long been one of Americans' favorite ways to grow their wealth. In fact, over 70% of single-family rental properties are currently owned by individual investors rather than corporations, according to Census data.1

Moreover, a decade's worth of Bankrate surveys has found that Americans often prefer real estate for long-term wealth building over other investments. According to Bankrate's latest survey, for example, Americans have historically embraced real estate, in part, because of the strong return on investment it can offer—especially to investors willing to stick with a property over time.2 It’s also a popular way to hedge against inflation since both rental income and property values tend to rise in tandem with overall prices.3

Now, as higher interest rates continue to push priced-out homebuyers to the sidelines, a new crop of “mom and pop” investors are eyeing the mushrooming rental market as a potential goldmine.4 Interest in buying a home to both live in and rent is also on the rise, especially amongst cash-strapped buyers looking to supplement their mortgage payments.5

But how do you know if you’re well-suited to take advantage of these real estate investment opportunities? Here are three signs that owning a rental property could be right for you.

YOU'RE A HOMEBUYER WHO WANTS HELP COVERING THE MORTGAGE

If you're looking for a creative way to buy a home without overspending, “house hacking” could be the answer. Increasingly popular with first-time homebuyers and budget-conscious investors, house hacking simply means buying a home that you intend to live in while renting out a portion of it to one or more tenants.5

House hacking also tends to be easier to break into than traditional real estate investing since you don't need as high a credit score or as large a down payment to qualify for a mortgage. In fact, some government-backed mortgage programs will let you buy a primary residence with little to no money down.6 Buying a home you don't plan to live in, by contrast, may require you to put down as much as 15% to 25% to qualify for a loan.7

If you house hack, the money you collect for rent each month can help cover your mortgage and other homeownership expenses. Depending on your setup, you may also be able to save on utility bills by splitting them with your tenant or tacking a portion onto their monthly rent. Another major advantage of house hacking is that it entitles you to certain tax benefits and deductions available only to landlords.8

When it's time to start your search, we can help you find a property that's ideal for house hacking, such as a house with a walkout basement, a multifamily unit, or a home with enough outdoor space to build an accessory dwelling unit or garage apartment.

YOU'RE AN INVESTOR LOOKING FOR STEADY AND RELIABLE INCOME

If you’re not crazy about the idea of a live-in tenant but still desire an additional stream of income, a dedicated long-term rental property could be a better option for you. Besides the monthly proceeds, purchasing a rental home can also add diversity and long-term stability to your investment portfolio and help you build wealth over time.9

According to data from the Federal Reserve, real estate owners have historically prospered. In early 2020, for example, the median home was worth almost triple what it was 30 years prior. Then, during the pandemic-era real estate boom, average home prices grew at an especially frenzied clip, climbing by nearly 50%, on average, in just two and a half years.10

However, the rate of appreciation can be hard to predict, so it’s prudent to invest in a property that also offers positive cash flow, which means the rent you take in exceeds your expenses. This strategy helps to ensure that you’ll put money in your pocket each month, even if the property’s value takes time to grow.

While today’s higher mortgage rates can make it more challenging for landlords to turn a profit, investment opportunities aren’t reserved for cash buyers. In fact, currently, almost 60% of real estate investors take out a loan to finance their purchase, according to Thomas Malone, an economist at the real estate data firm CoreLogic.4 He also notes that more small investors are stepping in to meet demand for rental housing, which has grown since many would-be buyers remain priced out of the purchase market.4

If you want to explore opportunities for a residential rental property that's good for your wallet and attractive to renters, we can help. Reach out with questions or to schedule a free consultation.

YOU'RE AN EXPERIENCED INVESTOR LOOKING TO MAXIMIZE YOUR POTENTIAL RETURNS

Another increasingly popular way to draw income from an investment property is to convert it to a short-term vacation rental. But beware: This strategy can be riskier as some municipalities have tightened rental restrictions and others are suffering from market oversaturation.11,12

With that said, if you're an experienced investor who can afford to take on some uncertainty, then investing in a short-term rental could make sense for you.

If you find the right property, for example, you could earn significantly more renting it short-term on a platform like Airbnb than if you rented the home to a long-term tenant.11

The key is to keep it occupied as much as possible at a premium nightly rate. To do that, you’ll need some marketing savvy, hospitality skills, and business acumen. Of course, you can always hire a professional property manager, but you’ll need to factor the cost into your budget.

The vacation rental market enjoyed a boom during the pandemic, and some inexperienced investors are finding they bit off more than they can chew. As a result, there's an opportunity to snap up some of these properties, but you'll need some cash on hand and a willingness to learn the business.12

We can help you scout opportunities in our local market or, if you’re interested in investing in another area, we can refer you to an agent there for assistance.

BOTTOMLINE

Investing in real estate can be a great way to build your wealth long-term and earn some extra income. But to make the most of your investment, it pays to be strategic.

Call us for a consultation so we can discuss your goals and budget. We'll help you discover neighborhoods with the best income potential, point out the homes most suited to renting, and help you brainstorm the best investment strategy for you.

Before you take the plunge, make sure you can answer “YES”

to these three questions:

Are you ready to be a landlord?

Owning a rental property can take a lot of time and energy. You're not just buying passive income, you're also building sweat equity since the time you spend maintaining, marketing, and managing your rental can add up quickly. So be prepared to do some soul-searching to ensure you’ll not only flourish as a landlord, but actually enjoy it.

If you want to invest in real estate but aren’t prepared to put in the day-to-day effort required, we can refer you to a property management service for help.

Can you afford to invest in real estate?

The last thing you want is to get over-extended with your new real estate venture. Besides the cost of purchasing the property, you’ll need to consider additional expenses, like property taxes, insurance, administrative costs, and maintenance and repairs. You will also need a cash reserve for unexpected issues or potential vacancies.

We can help you run the numbers to determine whether you can charge enough rent to offset your expenditures.

Have you found the right income property?

Even if you’ve got your finances in order and are emotionally ready to invest, your success as a landlord will also depend on the property you buy. The criteria for a good rental home and a good family home are often different, so it’s important to lean on professionals for advice.

We can help you find an ideal rental property, taking into account your budget, risk appetite, and investment goals. If you decide to invest in a different area, we'll connect you with an agent who's more plugged into that community. Reach out today to schedule a free consultation.

Sources:

PR Newswire -

https://www.prnewswire.com/news-releases/census-data-show-individuals-continue-to-own-largest-share-of-single-family-rental-homes-301725024.html

Bankrate -

https://www.bankrate.com/investing/survey-favorite-long-term-investment-2022/

Forbes -

https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/14/why-income-generating-real-estate-is-the-best-hedge-against-inflation/?sh=1081ce921746

MarketWatch -

https://www.msn.com/en-us/money/realestate/another-challenge-for-homebuyers-more-investors-are-snapping-up-homes-and-40-of-them-are-using-cash/ar-AA1foWSB

Realtor.com -

https://www.realtor.com/advice/buy/on-the-house-house-hacking-your-way-into-your-first-home/

NerdWallet -

https://www.nerdwallet.com/article/mortgages/government-home-loans

LendingTree -

https://www.lendingtree.com/home/mortgage/down-payment-for-rental-property/

Quicken Loans -

https://www.quickenloans.com/learn/house-hacking

Investors Business Daily -

https://www.investors.com/etfs-and-funds/personal-finance/rental-properties-investing-experts/

St. Louis Fed FRED Economic Data -

https://fred.stlouisfed.org/series/MSPUS

Story by J.P. Morgan -

https://story.jpmorgan.com/real-estate-news/thinking-about-investing-in-short-term-rentals-heres-what-to-know

Skift -

https://skift.com/2023/07/21/short-term-rental-saturation-leads-to-a-correction-and-lots-of-home-sales/

Top 7 Tips To Attract the Best Offers for Your Home

Thu, 07 Sep 2023 01:31:50 GMT

Top 7 Tips To Attract the Best Offers for Your Home

Not long ago, home sellers were in their heyday, as historically-low mortgage rates triggered a real estate buying frenzy. However, the Federal Reserve shut down the party when it began raising interest rates last year. ¹

Now, it’s not as simple to sell a home. While pandemic-era homebuyers were racing the clock—trying to lock in a low mortgage rate and gain a foothold in the market—current buyers are more discerning. Higher prices and mortgage rates have pushed their limits of affordability, leading them to prioritize cost, condition, and overall value. ²

The reality is, home inventory remains low, so most properties will still sell with some basic prep, the right price, and a good real estate agent. But owners who go the extra mile are more likely to sell faster and for a higher amount.

If you have plans to sell your home and want to net the most money possible, this list is for you. Here are our top seven strategies to attract the best offers and maximize your real estate returns.

UNDERGO A PRE-LISTING INSPECTION

Many homebuyers hire a professional to complete a home inspection before they close. But did you know that a seller can order their own inspection, known as a pre-listing inspection, before they put their home on the market?

Having a pre-listing inspection on hand and ready to share shows interested buyers that you’re committed to a transparent transaction. This can help you market your home, strengthen your negotiating position, and minimize roadblocks to closing. ³

Of course, it’s always possible that a pre-listing inspection—which looks at the home’s major systems and structures, among other things—could turn up a significant problem. This does carry some risk, as you’ll be required to either fix or disclose any issues to potential buyers. However, in most cases, it’s better to know about and address deficiencies upfront than to find out mid-transaction, when it could cost you more in the form of concessions, a delayed closing, or a canceled sale.

We can help you decide if a pre-listing inspection is right for you. And if it identifies any concerns, we can advise on which items need attention before you list your home.

CONSIDER STRATEGIC UPGRADES

Embarking on major renovations before putting your home on the market doesn’t always make financial (or logistical) sense. However, certain upgrades are more likely to pay off and can help elevate your home in the eyes of buyers.

For example, refinishing hardwood floors results in an average 147% return on investment at resale and new garage doors typically pay for themselves. ⁴ Similarly, research shows that professional landscaping can boost a home’s value by as much as 20%.5

Often, even simpler and less expensive fixes can make a big difference in how your home comes across to buyers. A fresh coat of paint in a neutral color, modern light fixtures and hardware, and new caulk around the tub or shower can help your property look its best. ⁵

But before you make any changes to your home, reach out. We know what buyers in your neighborhood are looking for and can help you decide if a particular investment is worthwhile.

HIRE A HOME STAGER

To get standout offers, you need potential buyers to fall in love with your home—and they’re much more likely to do so if they can envision themselves in the space.

That’s where home staging comes in. Staging can include everything from decluttering and packing away personal items to bringing in neutral furniture and accessories for showings and open houses.

According to the National Association of Realtors, home staging can both increase the dollar value of home offers and help a property sell faster. In fact, 53% of seller’s agents agree that staging decreases the amount of time a home spends on the market, and 44% of buyer’s agents see higher offers for staged homes. ⁶

There’s plenty of strategy and research behind the process, so it’s smart to consider a professional. Reach out for a connection to one of our recommended home stagers who can help your property show its full potential.

EMPLOY A COMPETITIVE PRICING STRATEGY

While it’s tempting to list your property at the highest possible price, that approach can backfire. Homes that are overpriced tend to sit on the market, which can drive away potential buyers—and drive down offers. ⁷

Alternatively, if you price your home competitively, which is either at or slightly below market value, it can be among the nicest that buyers see within their budgets. This can ultimately lead to a higher sales price and fewer concessions.

To help you list at the right price, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that comparable properties have recently sold for in your neighborhood.

Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). Combined with our local market insights, we’ll help you find that sweet spot that will attract the best offers while maximizing your profit margin.

OFFER BUYER INCENTIVES

Sometimes, sweetening the deal with buyer incentives can help you get the best possible offer. Incentives are especially helpful in the current market, when many buyers are struggling with affordability and concerned about their monthly payments.

Options that can pay off include:

Buying down their interest rate – You can pay an upfront sum to reduce the buyer’s mortgage rate. This approach can save far more than that cost over the life of the loan, meaning it’s worth more to the buyer than a simple price reduction. ⁸

Offering closing cost credits – You might pay a set amount or a certain percentage of the buyer’s closing costs.

Paying HOA costs – You could cover homeowner association or condominium fees for a set period of time.

Including furniture or appliances in the sale – If your buyer is interested, throwing in the furniture or appliances that they want and need can make your property more appealing.

Buyer incentives vary and valuing them can get complicated. We’re happy to talk through the options that might make sense for you.

USE A PROVEN PROPERTY MARKETING PLAN

Gone are the days when it was enough to put a “for sale” sign in your yard and place a listing on the MLS. A strategic marketing plan is now essential to get your home in front of as many interested and qualified buyers as possible.

The truth is, buyers who don’t know about your house can’t make an offer. That’s why we utilize a multi-step approach to marketing that starts with identifying your target audience, effectively positioning your home in the market, and communicating its unique value. We then use a variety of distribution channels to connect with potential buyers and performance-based metrics to monitor and improve our campaign results.

Our proven approach can have a big impact on the success of your sale. Reach out to learn more about our multi-step marketing plan and discuss how we can use it to generate interest and offers for your home.

WORK WITH AN AGENT WHO UNDERSTANDS YOUR AREA

To get the best offers possible, you need a real estate agent who knows your area inside and out.

Any agent can pull comparable sales data, but in a quickly-evolving market, even the latest comps can lag the current market reality. We have our fingers on the pulse of the local market because we’re working directly with sellers like you. We also represent local buyers who are active in the market, searching for homes like yours.

That puts us in an ideal position to help you price your home for a quick sale and maximum profit. And since we hear first-hand what local buyers want, we can help you prep your home to broaden its appeal and highlight its most-coveted features. Additionally, we can use our extensive network of local agents to solicit feedback and get your home in front of more potential buyers.

All of these factors can add up to a significant difference in your profit: In 2021, the typical home sold by owner went for $225,000 compared to a median price of $330,000 for agent-assisted home sales. ⁹

LET’S GET MOVING

Are you ready to get a great offer for your home? Our multifaceted approach can help you maximize your real estate returns. Reach out for a free home value assessment and customized sales plan to get started!

Sources:

U.S. Bank -

https://www.usbank.com/investing/financial-perspectives/investing-insights/interest-rates-impact-on-housing-market.html

National Association of Realtors -

https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf

Bankrate -

https://www.bankrate.com/real-estate/prelisting-inspection/

National Association of Realtors -

https://www.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf

Bankrate -

https://www.bankrate.com/homeownership/landscaping-increase-home-value/

National Association of Realtors -

https://www.nar.realtor/infographics/staged-for-success

The Balance -

https://www.thebalancemoney.com/looking-twice-at-overpriced-homes-1798671

U.S. News & World Report -

https://money.usnews.com/loans/mortgages/articles/a-guide-to-seller-paid-mortgage-rate-buydowns

National Association of Realtors -

https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

7 Common Homebuyer Regrets (And How To Avoid Them)

Tue, 01 Aug 2023 23:45:41 GMT

7 Common Homebuyer Regrets (And How To Avoid Them)

To avoid buyer's remorse, be sure to consider your future self when shopping for a home.

Most new homebuyers don't regret becoming homeowners. In fact, according to a survey by LendingTree, 80% of recent buyers who successfully overcame a challenging housing market say they're glad they found their current homes.1 But that doesn't mean newly-minted homeowners don't have any regrets about their buying choices.

On the contrary, research shows that even the most-satisfied homeowners would change some aspects of their home purchase if given the opportunity. According to a recent survey by Anytime Estimate, nearly 3 out of 4 buyers who purchased a home in 2021 or 2022 still have a few regrets.2

Some question their decision to move to a neighborhood they still don't love. Others wish they had been less picky about where they lived so they could have paid less. Many are afraid they overspent or think they sacrificed too much in their rush to buy a home.

Here are some of the most common homebuyer regrets we see, along with our professional advice on how to avoid them.

REGRET #1: Spending More Than Necessary

No one wants to overpay for their new home purchase (and, luckily, with the right guidance, doing so is avoidable). But even if you've secured a winning purchase price, there are still plenty of ways to accidentally overspend.

One of the most common ways to overpay? Choose the wrong mortgage. In fact, in today's higher-rate environment, this can be one of the riskiest mistakes a new buyer can make.

According to a recent survey, for example, nearly three-quarters of homebuyers leave money on the table by not bothering to shop around for the best rate.3 And research by LendingTree suggests that buyers in major metro areas lose an average of $63,151 over the life of their loan just by picking the first mortgage they're offered.4

Lesson Learned: As long as you stick to what you can afford, buying a home can be a boon for your financial health. The longer you live in it, for example, the more your home is likely to appreciate in value and boost your long-term savings.

But to get the most value from your purchase, it's worth your time to compare financing options and shop around for the best deal. We also recommend getting a mortgage pre-approval before you start your home search so you know what's within reach. We can refer you to one of our trusted lending partners for help.

REGRET #2: Rushing Into a Home Purchase

In a competitive housing market, it's often necessary to act fast to secure a home. But don't let a need for speed tempt you into making an offer before you've thought through or fully vetted a new property.

Rushing into a home purchase isn’t just risky, it's also one of the most commonly cited sources of homebuyer regret. According to Anytime Estimate, for example, more than 1 in 4 homebuyers felt remorse over how quickly they sped through the home buying process.2

Getting swept away by your emotions can also lead to buyer's remorse. If you've found a home you love and are competing with other buyers, it can be tempting to overlook key details or bid more than you can afford. That's one reason it helps to have a skilled professional by your side to calmly guide you through the process and ensure you act with reason, rather than emotion.

Lesson Learned: Buying a home is exciting. But if you don't keep your emotions in check or act too impulsively, you could make poor choices in the moment that are hard to undo later.

To avoid making last-minute decisions that could backfire, know what you want, what you need, and what you can afford before you start your home search. We can help you set priorities so you’ll be able to move forward with confidence when the time is right.

REGRET #3: Miscalculating the Costs of Homeownership

Though real estate is a great long-term investment, it can be pricey in the short-term, often surprising homeowners who aren't prepared for it. According to some estimates, for example, annual maintenance could cost as much as 1% or more of your home's purchase price.5 Some buyers also forget to factor in additional ownership expenses, such as property taxes, insurance, and repairs.

Failing to think through the costs of homeownership is one of the most common sources of homebuyer regret. According to Anytime Estimate, for example, nearly half of the homebuyers who regret their purchase said they underestimated how much they would spend to live in it.2

However, some homes cost more to live in and maintain than others. So even if you're certain that you can afford the average cost of homeownership, that doesn't necessarily mean that every home in your price range will fit neatly into your budget. For example, very old homes with unique maintenance requirements could be extra pricey to keep up. Similarly, homes with high HOA or condo fees could also eat into your monthly budget.

Lesson Learned: A home should help you build your wealth, not drain it. So it's important to factor in all the potential costs of living in a home—not just obvious ones like your mortgage payment and taxes. To ensure you don't get overextended, add up your estimated maintenance and repair costs, as well as any miscellaneous expenses that are unique to a particular home.

We can help you with these estimates—and, if needed, present you with some less-costly alternatives.

REGRET #4: Underestimating the Time Required To Maintain or Renovate a Home

One of the most joyful aspects of homeownership is getting to relax in a home that's all your own. But if a home is too high maintenance, then you may not have time to savor it.

Many homeowners love to spend their weekends puttering in their gardens or undertaking home improvement projects. But if that's not you, then you may not like living in a home with a big yard or with high-maintenance features, like a pool.

According to a survey by Hippo, for example, 47% of homeowners who feel some regret about their home purchase complain that too much maintenance and upkeep is required.6

Similarly, buyers who purchase fixer-uppers are often surprised by how much time it takes to rehab their new homes. Although buying a fixer-upper is a great way to save on the purchase price, you could come to resent it if it eats up all your free time.

Lesson Learned: Renovation and maintenance projects are often time-consuming and stressful. So beware of committing to a property that requires too much of your attention if you don't have the time or patience for it. With that said, home improvement projects can also bring a lot of joy and satisfaction to owners who like rolling up their sleeves.

We can talk through the realities of homeownership with you and help you choose a property that will fit your personality and schedule.

REGRET #5: Ignoring or Skipping a Home Inspection

It’s easy to get swept up in the excitement of buying a home. Sometimes, buyers will agree to skip a home inspection to sweeten their offer in a competitive market. They may also be tempted to pinch pennies since they’re already facing a large outlay. However, if you skip out on a home inspection, you could come to regret it.

When you hire a home inspector, you get a professional, in-depth examination of the property’s structures and systems before you buy it. It’s a worthwhile investment that can save you money in the long run, either by warning you away from a bad purchase or by providing a list of deficiencies you can use to negotiate with the sellers.

But even the most thorough home inspection isn't going to be worth much if you don't take the time to carefully consider it. If at all possible, make sure you’re on-site during the inspection so you can observe and ask questions. And don’t forget to re-evaluate any repairs that the seller agrees to make to ensure they’ve been properly completed prior to closing.

Lesson Learned: A home inspection can reduce your risk and save you money in the long run. But to maximize its effectiveness, you will need to be an active participant in the process.

We’d be happy to share a list of experienced and trustworthy home inspectors in our area. And when the inspection report is complete, we can help you decide if the purchase is worthwhile and negotiate any relevant seller concessions and repairs.

REGRET #6: Choosing a Home That Doesn't Fit

Homeownership is often a better investment if you’re willing to stay put for at least five years.7 But if your newly purchased home isn’t a good fit, then you may not want to stick around that long.

Many homeowner complaints come down to simple lifestyle issues: Although a mismatch may seem small at first, the problems can magnify if you make so many compromises that they interfere with your quality of life.

Or, sometimes homebuyers can fall in love with a beautiful home and forget about practicalities. For example, a stunning kitchen can’t replace a needed bedroom or bathroom. And a sparkling pool may sit empty if the home requires a lengthy commute to your office.

Make sure you set some guardrails during your home purchase so you don’t over-compromise or accidentally prioritize your wants over your needs.

Lesson Learned: When you’re dealing with limited inventory or a fixed budget, it may be necessary to sacrifice some items on your home wish list. But if you fail to secure your must-haves, you could come to regret your home choice.

We can help you avoid an ill-fitting home purchase by working with you to set (and stick to) priorities and parameters before you begin your search.

REGRET #7: Purchasing Without Professional Help

Another path to homebuyer regret? Foregoing the expert guidance and market insight that you can only get from a licensed real estate agent.

Buying a home without professional representation can be extremely risky. Therefore, it’s no surprise that 86% of buyers enlist the help of an agent when purchasing a home. And the vast majority find their assistance to be invaluable: 89% say they would use their agent again or recommend them to others.8

Real estate is hyperlocal and extremely fluid—especially these days when the market is in constant flux. So it pays to have a knowledgeable expert by your side who can guide you through an often-complicated process.

We can help you avoid expensive mistakes that could lead to buyer’s remorse, all while making your home purchase as seamless and stress-free as possible. And since the home seller typically pays our commission, there’s no added expense for you!

Lesson Learned: When you work with a real estate agent, you benefit from a wealth of expertise and on-the-ground insight that you can't get anywhere else. We’ll help you steer clear of the missteps that so many homebuyers make, so you can focus on enjoying your new home instead of questioning your choices down the road.

The best part? Since the majority of home sellers pay us a commission at closing, in most cases, we offer our invaluable guidance and assistance at no additional cost to you!

BOTTOMLINE

No one wants to look back on their home purchase and realize they made a big mistake. We can help you avoid the pitfalls so you can buy with confidence. To learn more about how we work to ensure our clients’ satisfaction, reach out today to schedule a free consultation.

Sources:

LendingTree -

https://www.lendingtree.com/home/mortgage/homebuying-process-survey/

Anytime Estimate -

https://anytimeestimate.com/research/american-home-buyers-2022/

Zillow Home Loans - https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders

LendingTree -

https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/

CNBC -

https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html

Hippo - https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during

Realtor.com -

https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/

National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers

KW Annual Food Drive Sept. 2023

Thu, 27 Jul 2023 23:34:41 GMT

Help us fill the shelves in our local pantries before the Holiday season!

Drop off donations at our office Mon-Fri 10am-3pm between Sept 1-30 or contact us and we will pick them up from you!

Office Location: 431 S. West End Blvd., Quakertown

Office Phone: 267-733-0777

ADDITIONAL DROP OFF LOCATIONS:

Celerity Integrated Services

3500 AM Drive

Quakertown PA 18951

Complete Wellness

127 S 5thSt , Suite 185

Toy Handyman Services

Thank you to these local businesses for supporting our food drive!

Suggested Donation Items:

Water
Juice
Pasta
Pasta Sauce
Cereal
Oatmeal
Beans
Canned Vegetables
Canned Fruit
Snacks
Hygiene Products

Benefiting:

Quakertown Food Pantry

101 N. 3rd St, Quakertown PA 18951

https://www.quakertownfoodpantry.org/

St. Isidore’s Roman Catholic Church Food Pantry

603 W. Broad St, Quakertown PA 18951

https://stisidores.org/portfolio-view/food-pantry/

Pennridge FISH

800 W. Chestnut St, Perkasie PA 18944

https://pennridgefish.org/

Garden of Hope Food Bank

201 Church Rd, Suite A, North Wales PA 19454

Other Local Pantries you can support with your direct donation:

FEAST Pantry
Christ's Cupboard Food Pantry
Fresh For All
Heaven’s BountY
Keystone Opportunity Center
The Lord’s Pantry
Doylestown Food Pantry
Bucks County Housing Group
Living Hope Community Church
New Britain Baptist Church
Warminster Food Bank
Warrington Fellowship Church Food Pantry

Renovate or Relocate? 3 Questions To Help You Decide

Thu, 06 Jul 2023 18:16:52 GMT

Renovate or Relocate? 3 Questions To Help You Decide

Does your current home no longer serve your needs?

If so, you may be torn between relocating to a new home or renovating your existing one. This can be a difficult choice, and there’s a lot to consider—including potential costs, long-term financial implications, and quality of life.

A major remodel can be a major commitment. From hiring contractors to selecting materials to managing a budget, it can take a tremendous amount of time and energy—not to mention the ordeal of living through construction or relocating to a temporary residence.

On the other hand, moving is notoriously taxing. In fact, in one survey, 40% of respondents viewed buying a new home as ”the most stressful event in modern life.”1

So which is the better option for you? Let’s take a closer look at some of the factors you should consider before you decide.

What Are Your Motivations for Making a Change?

It’s possible that some of the limitations of your current home can be addressed with a renovation, but others may require a move.

Renovate

Certain issues, like dated kitchens and bathrooms, are fairly easy to remedy with a remodel—and the results can be dramatic. In many cases, a relatively minor renovation can significantly increase your enjoyment of your home.

Other shortcomings can be more challenging to fix but are worth exploring so that you know your options. For example, if your home feels cramped or it lacks certain rooms, you might be able to make changes like installing an extra bathroom, adding a dedicated office, or finishing an attic or basement. You may even be able to build an accessory dwelling unit or extension to accommodate a multi-generational family.

In fact, many Americans have remodeled their homes to meet changing needs since the start of the pandemic. According to the National Association of the Remodeling Industry, 90% of their members reported increased demand for renovations starting in 2020, and 60% reported that the scale of remodeling projects has grown.2

However, the feasibility and cost of these larger changes will depend on factors ranging from zoning and permitting to your home’s current layout. Speaking with an architect or a contractor can help you make an informed decision. Let us refer you to one of our trusted partners to ensure you receive the best possible service.

Relocate

Of course, sometimes, even rebuilding your home from the ground up wouldn’t solve the problem. For example, moving may be the only solution if you’ve switched jobs and now face a lengthy commute or if you need to live closer to an aging family member.

Conversely, if the shift to remote work has opened up your location options, you may wish to seize the opportunity to relocate to a new locale. A 2022 study found that nearly five million Americans had already moved since the start of the COVID-19 pandemic due to increased flexibility from remote work, and nearly 19 million more were planning to move in the near future for the same reasons.3

Moving may also be the best option, even when you’re happy with your geographic location. A local move may make sense if you’re looking for a larger backyard or significantly more space. Similarly, some frustrations—like living on a busy street or a long way from a grocery store—can’t be addressed with a renovation. We are well-versed in this area and can help you determine whether another neighborhood might suit you and your family better.

Which Option Makes the Most Financial Sense?

Renovating and relocating both come with costs, and it’s wise to explore the financial implications of each choice before you move forward.

Renovate

The costs of a renovation can vary widely, so it’s vital to get several estimates from contractors upfront to understand what it might take to achieve your dream home.

Be sure to consider all of the potential expenditures, from materials and permits to updates to your electrical and plumbing systems. It’s also prudent to add 10-20% to your total budget to account for unexpected issues.4 If you plan to DIY all or part of your renovation, don’t forget to factor in the value of your time.

Renovations can also come with hidden expenses. These might include:

Additional home insurance

Short-term rental or hotel if you need to move out during the renovation

Storage unit for possessions that need to be out of the way

Dining out, laundry service, and other essentials if you can’t access appliances at home

Remodeling choices can also impact the long-term value of your home. Some projects may increase your home’s value enough to outweigh your investment, while others could actually hurt your home’s resale potential.

For example, although you may enjoy the additional living space, garage conversions aren’t typically popular with buyers.5 Refinishing hardwood floors, on the other hand, brings an average return of 147% at resale.2 The specific impact of a renovation will depend on a number of factors, including the quality of work, choice of materials, and buyer preferences in your area. We can help you assess how a planned project is likely to affect the value of your home.

Relocate

The cost of a new home, of course, will vary significantly depending on the features you’re seeking. However, you may find that it’s cheaper to move to a home that has everything you want than it is to make major changes to your existing one.

For example, adding a downstairs bedroom suite or opening up a closed floor plan could cost you more than it would to buy a home that already has those features. On the other hand, simpler changes and updates probably won’t outweigh the expense of a relocation.

If you’re considering a move, speak with a real estate agent early in the process. We can assess your current home’s value and estimate the price of a new home that meets your needs. This will help you set an appropriate budget and expectations.

It’s important to remember that the cost of buying a new home doesn't end with the purchase price. You’ll also need to account for additional expenditures, including closing and moving costs and the fees involved with selling your current home. And don’t forget to compare current mortgage rates to your existing one to understand how a different rate could impact your monthly payment.

However, keep in mind that the interest rate on a mortgage is typically lower than the rate on other loan types—so you could pay less interest on a new home purchase than you would on remodel.6 We’re happy to refer you to a lending professional who can help you explore your financing options.

Which Option Will Be the Least Disruptive to Your Life?

A final—but critical—consideration is the time and hassle involved with each option since both renovating and relocating involve a significant amount of each.

Renovate

Don’t underestimate the time and effort involved in a large-scale renovation, even if you choose to hire a general contractor. You will still need to consider and make a number of decisions. For example, even a fairly basic kitchen remodel can involve a seemingly-endless selection of cabinets, tile, countertops, paint colors, fixtures, hardware, and appliances.

And don’t assume that you will get out of packing and unpacking if you stay in your current home. Most renovations—from kitchens to bathrooms to flooring replacement—require you to remove your belongings during the construction process.

The time frame for a remodel is another consideration. High demand for contractors and ongoing material shortages can mean a long wait to get started. And once the project is in progress, you can expect that it will take a couple of weeks to several months to complete.7

Contemplate whether you will be able to live in your home while it’s being renovated and how that would impact your routine. For example, being without a functional kitchen for months can be frustrating, inconvenient, and expensive (since you’ll need to purchase prepared food). Remember that delays are inevitable with construction, and consider what additional challenges they could present.

Relocate

Of course, finding a new home and selling your current one also takes a significant amount of time and energy. According to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers, the average buyer searched for 10 weeks and toured a median of five homes.8

However, in many cases, the timeline can still be shorter than a major renovation. Once you find a home that works for you, it typically takes between 30 and 60 days to close if you’re taking on a mortgage—and the process is even faster if you’re paying with cash.9 Plus, you can look for your dream home without the inconvenience of living in a construction zone.

However, a move comes with its own stress and disruptions. If you’re selling your current home, you’ll need to prep it for the market and keep it ready and available for showings. Once you’ve found a place, the packing and moving process takes time and work, as does settling into a new home—especially if it’s in a different neighborhood.

Fortunately, we are here to help make the moving process as easy as possible, if you choose to pursue that route. We can help you find a property that meets all your needs, sell your current one for top dollar, and refer you to some excellent moving companies that can help pack and transport your belongings.

WHATEVER YOU DECIDE, WE CAN HELP

The decision to renovate or relocate can be overwhelming—but this choice also presents a powerful opportunity to improve your quality of life.

There’s a lot to consider, from how renovations could impact your home’s resale value down the road to your neighborhood’s current market dynamics. We’re happy to help you think through your options. Get in touch for a free consultation!

Sources:

HousingWire -

https://www.housingwire.com/articles/46384-americans-say-buying-a-home-is-most-stressful-event-in-modern-life/

National Association of the Remodeling Industry -

https://cdn.nar.realtor//sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf?_gl=1*3pfs0m*_gcl_au*NTU2MDQ0MzAyLjE2ODMyMzgzMTY

Business Insider -

https://www.businessinsider.com/5-million-people-moved-because-of-remote-work-since-2020-2022-3

Forbes -

https://www.forbes.com/home-improvement/contractor/home-renovation-costs/

U.S. News & World Report -

https://realestate.usnews.com/real-estate/articles/10-home-renovations-that-can-decrease-the-value-of-your-home

Bankrate -

https://www.bankrate.com/mortgages/mortgage-vs-home-equity-loan/#differences

House Beautiful -

https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/

National Association of Realtors -

https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers

Forbes -

https://www.forbes.com/advisor/mortgages/how-long-does-it-take-to-close-on-a-house/

National Real Estate Market Update

Thu, 01 Jun 2023 17:44:35 GMT

National Real Estate Market Update for 2023

There’s an old adage in real estate: location, location, location. But ever since the Federal Reserve began its series of inflation-fighting interest rate hikes last year, a new mantra has emerged: mortgage rates, mortgage rates, mortgage rates.

Higher rates had the immediate impact of dampening homebuyer affordability and demand. But this year, we’re seeing further repercussions. While analysts expected listing inventory to swell as sales declined, instead, homeowners have been pushing off plans to sell because they feel beholden to their existing, lower mortgage rates.

So what impact is this reduced demand and low supply environment having on home values? And what can we expect from the real estate market in the coming months and years? Here are several key indicators that help to paint a picture of the current market and where it’s likely headed.

HOME SALES ARE EXPECTED TO PICK UP BY EARLY NEXT YEAR

The weather isn’t the only thing that heats up in the spring and summer. Nationally, it tends to be the busiest time in real estate. But this year, the peak season got off to a slow start, with sales declines in both March and April.1,2 Existing home sales in April were down 3.4% from the previous month—and 23.2% from a year earlier.2

What’s causing this market slowdown? Industry experts attribute it to several factors, including near-record home prices, high mortgage rates, and low inventory.

According to National Association of Realtors (NAR) Chief Economist Lawrence Yun, “Home sales are trying to recover and are highly sensitive to changes in mortgage rates. Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It's a unique housing market.”1

However, some industry experts believe the market is poised for a comeback. Forecasters at the Mortgage Bankers Association (MBA) predict that home sales will continue to fall through Q3 before rising in Q4 and throughout next year.3 Analysts at Fannie Mae expect the recovery to take a bit longer, picking up in early 2024.

Meanwhile, home builder confidence is already up, as purchases of new single-family homes surged in March and April to a 13-month high.5 Builder incentives are helping to boost sales: According to the National Association of Home Builders, in May, 54% reported using them to win over budget-conscious buyers.6

What does it mean for you? A slower pace of sales has given buyers some breathing room. If you hated the frenzy of the pandemic-era real estate market, now might be a better time for you to shop for a home. We can help you evaluate your options and make an informed purchase.

If you plan to sell your home, prepare yourself for less foot traffic and a longer sales timeline than you may have found a year ago. It will also be crucial to enlist the help of a skilled agent who knows how to draw in buyers. Reach out for a copy of our multi-step Property Marketing Plan.

PROPERTY VALUES REMAIN RELATIVELY STABLE

Some good news for buyers: While home builder sales climbed in April, the median new-house price fell to $420,800, an 8.2% decrease from a year ago.5 Meanwhile, the median existing-home price dropped to $388,800, down 1.7% year-over-year. Notably, existing-home prices rose in parts of the country but fell in the South and West.2

“Roughly half of the country is experiencing price gains,” explains Yun. “Multiple-offer situations have returned in the spring buying season following the calmer winter market. Distressed and forced property sales are virtually nonexistent.”2

The average national home price remains about 40% higher than it was in early 2020, according to the S&P CoreLogic Case-Shiller index.7 A tight housing supply has helped to buoy prices amidst a slowdown in sales.

“While it varies from region to region, home prices at the national level may fall 1% or 1.5% by the end of the year, so not much,” Doug Duncan, senior vice president and chief economist at Fannie Mae, told Yahoo Finance in April.8

Record levels of home equity will help to stabilize the sector and prevent a wave of foreclosures, even as prices moderate, according to Mark Zandi, chief economist at Moody’s Analytics.9

“But for those who have owned a home for more than a year or two, their home will remain a rock-solid investment. And once affordability is restored, the next generation of households can become homeowners. Getting there is critical to the financial well-being of those households, their communities, and the broader economy,” writes Zandi in The Washington Post.9

What does it mean for you? Prices have softened in certain market segments—and motivated sellers are out there and willing to make deals. We can help you find your next home and negotiate a great price.

If you’re a homeowner, the surge in home values has slowed, but you’re likely still sitting on a nice pile of equity. Reach out for a free assessment to find out how much your home is currently worth.

LISTING INVENTORY IS LOW, BUT NEW CONSTRUCTION IS ON THE RISE

Unsold existing home inventory rose 7.2% from March to April, according to NAR. At the current level of demand, this equates to 2.9 months of supply, which is still well below the 5 to 6 months of inventory required for a “balanced” market.2

Inventory remains tight despite the market slowdown because many would-be sellers are reluctant to give up their lower mortgage rates. “Affordability is not only an issue for first-time homebuyers, but also for many repeat buyers who still need to take on a mortgage,” explains Danielle Hale, chief economist for Realtor.com.10

In a recent survey by the home listing site, 82% of respondents who are planning to both buy and sell a home said they feel “locked in” by their low rate.11

In some areas, new home construction is helping to fill the supply gap. “Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10%,” according to National Association of Home Builders Chief Economist Robert Dietz.12

And more new homes are in the pipeline, after a builder slowdown last year. Single-family housing starts rose 1.6% from March to April (seasonally adjusted) and new construction permits hit a seven-month high.13

What does it mean for you? Inventory remains tight, but less competition means more choice and negotiating power for buyers. If you’ve had trouble finding a home in the past, it may be time to take another look. We can help you explore both new and existing homes in our area.

Sellers are enjoying reduced competition right now, as well. However, the longer you wait to list, the more competition you’re likely to face. And if you feel locked in by your current, lower mortgage rate, consider this: If you roll your equity gains into a down payment on your next home, you could possibly lower your monthly payment. Reach out to discuss your options.

MORTGAGE RATES MAY FINALLY COME DOWN

According to Freddie Mac, the average 30-year fixed-rate mortgage hit a peak of 7.08% in the fourth quarter of 2022, and since then it’s primarily floated between 6 and 7%.14 However, there are signs that rates could trend lower later this year.

“Calmer inflation means lower mortgage rates, eventually,” Yun predicted in a recent statement. “Mortgage rates slipping down to under 6% looks very likely toward the year’s end.”15

Other leading economists agree. In its May forecast, Fannie Mae speculates that 30-year fixed mortgage rates will continue to decline, averaging 6.0% in Q4 2023 and 5.4% by Q4 2024.4 Meanwhile, the MBA predicts rates will fall even faster, averaging 5.6% by Q4 2023 and 4.8% by Q4 2024.3

On May 3, the Federal Reserve raised its benchmark borrowing rate by another quarter point—its 10th consecutive increase since March 2022. However, in its corresponding statement, the Fed omitted language from its previous release about “additional policy firming,” leaving some analysts to speculate that the rate hikes may be over.16

Although mortgage rates aren’t directly tied to the federal funds rate, a decision by the Fed to pause rate increases could have a positive effect. In the meantime, buyers should shop around multiple lenders to find the best rate—and buckle up for what could be an exciting ride.

What does it mean for you? Mortgage rates may finally trend down, which would be great news for buyers. But, a decrease in rates could correspond with an increase in competition and prices. If you start searching now, you’ll be prepared to make an offer when the time is right. We can help you negotiate a great deal and potential seller incentives.

If you’re planning to sell, this is good news for you, too. But, there are several factors to consider when determining the right time to list your home. Reach out for a consultation so we can help you chart the best course.

WE’RE HERE TO GUIDE YOU

While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood.

If you’re considering buying or selling a home, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals.

Sources:

National Association of Realtors -

https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march

National Association of Realtors -

https://www.nar.realtor/newsroom/existing-home-sales-faded-3-4-in-april

Mortgage Bankers Association -

https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-may-2023.pdf?sfvrsn=4bf1d1a7_1

Fannie Mae -

https://www.fanniemae.com/media/47006/display

U.S. Census Bureau -

https://www.census.gov/construction/nrs/current/index.html

National Association of Home Builders -

https://www.nahb.org/news-and-economics/press-releases/2023/05/lack-of-existing-inventory--boosts-builder-confidence-to-key-marker

New York Times -

https://www.nytimes.com/2023/04/29/business/spring-housing-market.html?

Yahoo Finance -

https://finance.yahoo.com/news/mortgage-rates-increase-after-weeks-of-declines-160015631.html

The Washington Post -

https://www.washingtonpost.com/business/2023/04/22/housing-prices-put-some-out-of-the-market/

CNBC -

https://www.cnbc.com/2023/04/20/home-sales-fell-in-march-amid-volatility-in-mortgage-rates.html

Realtor.com -

https://www.realtor.com/research/2023-q1-sellers-survey-btts/

National Association of Home Builders -

https://www.nahb.org/news-and-economics/press-releases/2023/04/lack-of-existing-inventory-continues-to-support-builder-sentiment

United State Census Bureau -

https://www.census.gov/construction/nrc/pdf/newresconst.pdf

Freddie Mac -

https://www.freddiemac.com/pmms

National Association of Realtors -

https://www.nar.realtor/blogs/economists-outlook/instant-reaction-inflation-april-12-2023

CNBC -

https://www.cnbc.com/2023/05/03/fed-rate-decision-may-2023-.html

How to Become a Homeowner on a First-Time Buyer's Budget

Thu, 04 May 2023 00:01:15 GMT

How to Publish an Article On LinkedIn

Download the LinkedIn image and save it to your computer.

Sign into your LinkedIn profile.

Select “Write an Article.”

Click the large header image (looks like two pictures connected by a plus sign) and select the LinkedIn image file.

Click “Open.”

Copy and paste the Headline of the article below into the space that says “Headline.”

Copy and paste the body of the article below into the space that says “Write here…”

Review the article and tweak as necessary. You may need to delete excess line spaces, fix formatting, add image links, etc.

Hit “Publish” at the top right corner of your screen. When prompted, type a description of the article and include relevant hashtags.

(Use with “LinkedIn Image,” “LinkedIn Post,” and “Social Media Posts” from the zip file)

How to Become a Homeowner on a First-Time Buyer’s Budget

It's not easy being a first-time homebuyer right now. At the end of last year, housing affordability hit an all-time low.[1] Additionally, mortgage rates have risen significantly since 2021, while inventory remains tight for many property categories, but especially for starter homes.[2]

As a result, many first-time homebuyers are finding that they need to get creative or risk renting for longer than they planned. If you, too, are struggling to afford homeownership, here are some workarounds to consider as you plot your first home purchase.

1. Try House Hacking

“House hacking” is a real estate investment strategy in which participants use their homes to generate income in order to offset their expenditures. For example, renting out a basement apartment or taking on a roommate.

In some cases, house hacking may make it possible for you to qualify for and afford your first home. A lender, for example, may approve you for a larger mortgage if you purchase a property with immediate income potential.[3] It could also help you pay your mortgage once you move in. For example, you could rent out your swimming pool for a few hours or lease out your garage for paid parking.

But before you make plans to house hack, make sure you fully understand an area's laws and HOA rules. We can help you find a home with income potential in a neighborhood with less restrictive zoning and regulations.

2. Team Up With Friends or Family

If you aren't wild about the idea of welcoming strangers to your home, you may want to consider co-purchasing with a friend or family member instead. This unconventional housing arrangement is growing in popularity as a way to cope with higher costs.[4]

By pooling resources, you may be able to buy a home that's larger or has more investment potential. On the other hand, sharing a big financial responsibility, like a mortgage, with friends or family could get messy—especially if you don't create a clear-cut co-ownership agreement beforehand that outlines mutual expectations. We can help you set priorities and search for a suitable property that works for all parties.

3. Tap Your Network for Help With Funding

Another established method for affording a first home is to lean on family or friends for financial help. According to a recent YouGov poll, more than a third of homeowners (and a whopping 79% of those under 30) received financial help from their parents when buying their first home.[5] So you wouldn't be the only one leaning on loved ones to afford a home at today's prices.

Just be sure your benefactors are giving a gift, not a loan, and are willing to put that in writing. A lender will want proof that the money isn't adding to your debt burden. Another way to tap your network is to crowdfund part of your down payment. For example, if you're getting married soon, you could skip the wedding gift registry and ask guests to contribute funds to your hoped-for home purchase instead.

4. Look to Other Unconventional Money Sources

You could also cut some of your costs by applying for grants and assistance. There are public and private grants and down payment assistance programs that are expressly intended to help first-time buyers, although most have income limitations.[6] Or, if you have enough income to support a house payment but can't spare much cash for your down payment, you may qualify for a government-sponsored loan, such as an FHA loan that allows you to put down as little as 3.5% to 10%.[7]

We can connect you with a lender or mortgage broker who can educate you about your options and help shepherd you through the process. And, in some cases, we can help you negotiate seller concessions—like money toward closing costs or mortgage points—that will make your home purchase more affordable.

5. Expand Your Home Search

If you’re having trouble finding a home within your budget, consider broadening your search criteria. You may be surprised by the kinds of deals that are available when you're willing to compromise on things like neighborhood, square footage, and cosmetic features.

Keep in mind, starter homes are rarely forever homes, but merely a first step onto the property ladder. By gaining a foothold in the real estate market now, you can set yourself up to afford a more expensive property in the future. According to the National Association of Realtors, in 2021, the net worth of a typical homeowner was $300,000, while that of a renter was only $8,000.[8] We can help you find an affordable first home so you can start building equity to reach your long-term financial and real estate goals.

YOU CAN DO IT—AND WE CAN HELP

Buying a first home is challenging, but it's not impossible—especially when you have a savvy real estate professional in your corner. We will work with you to devise a plan to overcome your financial constraints. Then, we’ll help you find a home that not only excites you but also fits your budget and lifestyle. Give us a call to get started with a free exploratory consultation.

Sources:

Housing Wire - https://www.housingwire.com/articles/housing-affordability-ends-2022-at-record-low/

Realtor.com - https://www.realtor.com/news/trends/death-of-the-starter-home-where-have-all-the-small-houses-gone/

ValuePenguin - https://www.valuepenguin.com/mortgages/claiming-rental-income-for-mortgage

National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers

YouGov - https://today.yougov.com/topics/economy/articles-reports/2022/05/25/american-homebuyers-finanancial-help-parents

Bankrate - https://www.bankrate.com/mortgages/first-time-homebuyer-grants/#types

Investopedia - https://www.investopedia.com/terms/f/fhaloan.asp

National Association of Realtors - https://www.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-04-26-2022.pdf

Stress-Free Home Cleaning: 27 Practical Tactics for Busy Households

Tue, 04 Apr 2023 23:08:24 GMT

Keeping a clean and orderly home is a challenge for many of us. Between busy work schedules, social obligations, and family commitments, it’s tough to keep up with daily chores—let alone larger seasonal tasks.

The effort is worthwhile, however. A sanitary environment can keep you and your family healthier by minimizing your exposure to germs and allergens.1 Plus, researchers have found that organized, uncluttered homes have quantifiable mental health benefits, too, including reduced stress, improved emotional regulation, and increased productivity.2

The reality is, we enjoy our homes more when they are in good order. It’s much easier to relax without piles of unopened mail or a messy kitchen reminding us of work to be done. And don’t we all feel more inclined to entertain family and friends when our homes are well-kept?

That’s why we’ve rounded up our favorite tactics—from overall strategies to little tips and tricks—for keeping things tidy without spending all our spare time cleaning.

SET A SCHEDULE FOR DAILY AND WEEKLY CLEANING

We’ve all been there—you put off vacuuming or mopping your floor for a few days, only to realize that weeks have passed. Creating a cleaning schedule that works for you is the best way to stay on top of things and avoid overwhelm. Here are a few of our favorite strategies:

Designate a day of the week for each task—then, add them to your calendar so you can’t forget.
Create a shared schedule that assigns specific responsibilities to each member of the household. Post it in a prominent place, like on the refrigerator, or create a shared digital calendar.
Carve out 15 minutes a day for cleaning and decluttering. Set a timer on your phone and get as much done as you can before it goes off.

It may take some trial and error to find the tactics that work best for you. The most important thing is to make a habit of cleaning so that clutter and grime don’t have a chance to build. And if you’d like some professional help, reach out for a referral to one of our favorite cleaning services!

TACKLE BIGGER CHORES SEASONALLY

Many home care tasks are seasonal by nature and only need to be completed once or twice a year. But when we don’t have a plan to tackle them, it’s all too easy to put them off. Here are a few tips to stay on top of these chores:

Mark days on your calendar in advance to attend to annual or semi-annual chores, like cleaning gutters, washing windows, turning mattresses, and shampooing carpets.
Schedule just one primary task each weekend instead of blocking out a full two days. This will help ensure a good balance between chores and relaxation.
Designate a date two to four times a year, depending on your lifestyle, to put away out-of-season items like clothes, holiday decorations, and sporting goods.
Take some time to sort through your seasonal items when you pack them away. Then you can toss, sell, or donate items that you no longer need or enjoy.

Remember—breaking down these larger tasks can make them less overwhelming. If you space them out so that you can handle them one by one, even the most time-consuming chores become a lot more manageable.

And since all your time is valuable, don't hesitate to delegate these larger home care tasks to professionals. Give us a call for a list of our recommended service providers.

REDUCE THE BARRIERS TO CLEANING

Set yourself up for success by ensuring you have the tools on hand to tackle small tasks with ease. Here are a few ways to make your cleaning supplies more accessible:

Store a broom, dustpan, and vacuum on each floor of your home so they’re easy to reach.
Stash containers of disinfecting and glass wipes under every sink for a mid-week wipe-down.
Place extra bags beneath the liner of your garbage pails, so you’ll have a replacement ready when you take out the trash.
Keep a paper shredder and recycling bin handy so you can dispose of unwanted mail as it’s opened.

By strategically placing your tools and supplies in the locations where you’re most likely to need them, you’ll make cleaning less of a chore and more of a habit.

STOP THE CLUTTER BEFORE IT STARTS

From coats to shoes to mail, it’s all too easy to find clutter taking over your home. Once these piles start to form, they can feel overwhelming—which only makes it harder to address them.

To avoid this problem, stop the clutter before it starts. Assign every item a home and create storage spaces and “drop zones” in key locations. ³ Here are a few ideas to get you started:

Install coat hooks and shoe racks in the entryway for easy access.
Add a key caddy or shelf for essential items to get you out the door.
Hang a letter bin to capture mail and newspapers as soon as you walk into the house.
Place a donation box in each closet for items you no longer want or need.

It can take a little time to get in the habit of returning items to their assigned space. But once you do, staying on top of clutter will become far more manageable.

Are you considering a larger organizational upgrade, like a custom closet or pantry system? Reach out for a free consultation to find out how the investment could impact the value of your home!

TACKLE SMALL TASKS RIGHT AWAY

Sometimes, the mental load of thinking about a chore you need to do is worse than the chore itself. Plus, handling small tasks right away can reduce the need for lengthy cleaning sessions. ³

Try working these changes into your routine:

Learn to clean as you cook, rather than piling it all up for later. As you wait for water to boil or food to cook through, wash the bowls and utensils you used for prep.
Hang bath towels on a bar immediately after use. By allowing them to properly air dry, you can cut down on the frequency of laundering.
Bring items with you when you leave a room. For example, return plates and cups to the kitchen right away rather than letting them stack up in your home office.
Take out the trash when you leave for work, school drop-off, or errands. This will save you the time and hassle of a second trip.

If you implement these small changes, your home will stay neater—and you’ll minimize the number of dedicated cleaning sessions you need to take on each week.

EMBRACE AN EVENING “SHUTDOWN” ROUTINE

Kitchens can get dirty and cluttered fast. But a few minutes spent cleaning up each evening can prevent the mess from getting out of control. ⁴

Imagine your kitchen is a restaurant and you’re tidying it up before closing down for the night. These simple steps will prepare you for the morning rush:

Wipe down all surfaces, including countertops, stove, microwave, and sink. Then toss your soiled washcloth in the hamper and lay out a fresh one for tomorrow.
Load and run the dishwasher every night so you can empty it the next morning.
Prepare for breakfast by programming your coffee pot and setting out some grab-and-go options.

We all know it can be hard to find the energy for chores in the evening. But if you complete these small tasks each night, you’ll start the next day off right in a tidy, clean kitchen.

THINK OUTSIDE OF THE BOX WHEN IT COMES TO STORAGE

Most of us have limited storage space. Unfortunately, without the right spots to stash our items, it’s easy to become disorganized.

But we’ve found that using household items in innovative ways can help keep mess and clutter under control. ⁵ Here are a few of our favorite swaps:

Place a magazine file in your kitchen for cookbooks, takeout menus, and meal kit cards.
Hang a pocket-style shoe organizer inside your pantry door to store granola bars, spice jars, and other small items.
Separate dress and athletic socks by turning an old shoe box into a drawer divider.
Repurpose jam jars by using them to store office supplies or bathroom essentials.
Store out-of-season clothes inside rarely-used suitcases, so all that space doesn’t go to waste.

A little creativity goes a long way when it comes to making the most of your space. Just be sure that you’re creating systems you can stick with and not putting things where you might forget about them later!

WE’RE HERE TO HELP YOU MAKE THE MOST OF YOUR HOME

Keeping your home clean and organized can be a continuous struggle—there’s no need to feel ashamed of that. But taking the time to implement systems that work for you can make life more pleasant and less stressful in the long run.

Remember, we’re not just here to help you buy or sell a home. We want you to love living in it, too. Reach out if you need referrals for house cleaners, window washers, or other service providers that can help you make the most of your space.

Sources:

1. Healthline - https://www.healthline.com/health-news/5-health-benefits-of-spring-cleaning

2. Forbes - https://www.forbes.com/health/mind/mental-health-clean-home/

3. My Domaine - https://www.mydomaine.com/house-cleaning-schedule

4. Housewife How-Tos - https://housewifehowtos.com/clean/10-tips-to-keeping-a-clean-house/

5. Better Homes and Gardens - https://www.bhg.com/decorating/storage/projects/simple-solutions/

My Home Didn’t Sell! Now What?

Thu, 02 Mar 2023 01:47:26 GMT

When it comes to listing their home, most home sellers want three things:

to make a lot of money,
to put in minimal time and effort, and
to sell quickly.

But the reality is, selling a home is rarely that simple. And homeowners who try to do it themselves—or receive bad advice—can end up stuck (months later) with a property that hasn’t sold.

If that’s you, don’t panic! We’ve outlined the top five reasons a home doesn’t sell—and action steps you can take to overcome each of these issues.

Not sure why your property didn’t sell? If you’re not already working with an agent or your listing has expired or been withdrawn, give us a call! We’d be happy to offer a free, no-obligation assessment and create an action plan to get your home SOLD.

This marketing piece is not intended as a solicitation for properties currently in an exclusive agreement with another Broker.

1. BAD TIMING

If your home didn’t sell after several months on the market, timing could’ve been a factor. Markets are driven by the law of supply and demand, and real estate is no exception.

When there are a lot of people who want to buy homes (demand) and a shortage of inventory (supply), it’s considered a seller’s market. During a seller’s market, listings tend to get snapped up quickly. In a buyer’s market, however, there are more homes for sale than active buyers. This can cause homes to sell for less money and to sit on the market for a longer period of time before receiving an offer.

What causes the shift between a seller’s market and a buyer’s market? Economic factors like interest rates, affordability, domestic growth, and the unemployment rate can all impact buyer demand. Over the past year, for example, higher mortgage rates have not only made it harder for some borrowers to qualify for a home loan, they have also sharply pushed up homebuyers' anticipated monthly payments. ¹ So even if a buyer was interested in your home, they may have passed on it if they couldn’t qualify for a mortgage at your asking price.

Seasonal factors like weather, holidays, and school schedules can also increase or dampen the activity and motivation of buyers. Additionally, unexpected events, such as a natural disaster or a stock market crash, can cause some buyers to put their purchasing plans on hold until conditions normalize.

Now What?

If timing does appear to be a factor, it may be advisable to delay relisting your property. Of course, that’s not feasible (or desirable) for every seller.

In most cases, buyers can be motivated to act with a combination of improvements, incentives, and pricing. Where there’s a will to sell, there’s usually a way. Fortunately for sellers, people will always need a place to live, and there will be a percentage of the population that is motivated to buy quickly.

If you suspect timing played a role in your inability to sell, consult with a knowledgeable real estate agent. We’re in the field every day and have access to the latest market data. We can estimate how long a home like yours should take to sell given current market conditions and help ensure that your asking price is competitive.

2. INEFFECTIVE MARKETING

Did your home get a steady stream of showings when it was on the market? If not, you may need to try a new promotional strategy.

Take a look at the listing description. Did it entice buyers to visit your property? A well-written description should be clear and compelling while highlighting your home’s most desirable features. Additionally, it should have utilized best practices for search engine optimization (SEO) to ensure that it was found by buyers who were looking for homes online.

And how well did the listing photos showcase your property? Many buyers use photos of a home to decide whether or not to visit it in person. In fact, 85% of buyers who browse online find photos “very useful” in their home search. ² Poor quality or a low quantity of listing photos could have kept potential buyers from stepping through your door.

Another factor to consider is whether your listing reached the right audience. This can be especially important if you have a unique or highly-customized home. The Multiple Listing Service is a great place to start, but some properties require a more robust marketing approach.

Now What?

If you suspect ineffective marketing, consider turning to a skilled professional with a proven approach. We employ a strategic Property Marketing Plan that uses the latest technologies to seed the marketplace, optimize for search engine placement, and position your home for the best possible impression right out of the gate.

For example, we know what buyers in this market want and can craft a persuasive description to pique their interest. And since good listing photos are so crucial, we work with the top local photographers to ensure each shot is staged to your home’s advantage.

We also know how to get your listing in front of the right audience—one that will appreciate its unique features. By utilizing online and social marketing platforms to connect with consumers and offline channels to connect with local real estate agents, your property gets maximum exposure to your target market.

Want to learn more about our multi-step marketing strategy? Reach out for a copy of our complete Property Marketing Plan.

3. POOR IMPRESSION

If your property received a lot of foot traffic but no offers, you may need to examine the impression you made on buyers who visited your property.

Start with your home’s structure and systems. Are there large cracks in the foundation? How about doors and windows that don’t properly close? Are there water stains on the walls or ceiling that could signal a leak? These can be major “red flags” that scare away buyers.

Next, examine your curb appeal. Does the yard need mowing or do the hedges need trimming? Are there oil stains on the driveway? Any peeling paint or rotted siding? If your home’s exterior looks neglected, buyers may assume the entire house has been poorly maintained.

Now move on to the interior of your home. Is it clean? Is there a noticeable odor? Have you taken the time to depersonalize and declutter each room? Buyers need to be able to picture their items in your home, but that’s difficult to do amongst your family photos and personal collections. And oversized furniture and packed closets can make a space seem small and cramped.

Now What?

When we take on a new listing, we always walk through it with the homeowner and point out any repairs, updates, or decluttering that should be done to maximize its sales potential. We also share tips on how to prep the property before each showing.

In some cases, we will recommend that you utilize staging techniques to highlight your home’s best features and help buyers envision themselves living in the space. Home staging is one of the hottest trends in real estate—because it works! According to the Real Estate Staging Association, professionally-staged homes sell, on average, 9 days faster and for $40,000 over list price. ³ In addition, the National Association of Realtors suggests that staging can help push up your final sale price by as much as 20%. ⁴

Some sellers choose to hire a professional home stager, while others opt to do it themselves, using guidance from their agent. We can help you determine the appropriate budget and effort required to get your home sold.

4. PRICE IS TOO HIGH

Many homeowners are reluctant to drop their listing price. But the reality is, buyers may not seriously consider your property if they think your home is overpriced.

Attitudes have changed since the Federal Reserve started hiking interest rates. Many of today's homebuyers are no longer willing or able to pay as high a price on a new home as they might have when borrowing costs were lower. ⁵ If your home’s original asking price was set using sales data from the market's peak, then you may need to rethink your pricing strategy.

Economic factors aren't the only reasons, though, why a home's asking price might not match its market value. Pricing a home can be tricky, regardless of the economic climate, because so many factors can impact how much buyers are willing to pay. For example, unique, highly customized, and luxury properties are particularly difficult to price because there aren’t a lot of comparable homes with which to compare them.

Regardless, if your home sat on the market for months without an offer, then chances are good that your asking price needs to be reevaluated.

Now What?

If you aren’t in a rush to sell your home, adjustments to timing or marketing may bring in a new pool of potential buyers. And repairs, upgrades, and staging can increase the perceived value of your home, which may be enough to bring a buyer to the table at your original list price.

However, if you need to sell quickly, or you’ve already exhausted those options, a price reduction may be necessary to get your home the attention it needs to sell.

We are local market experts and have access to the latest market data and comparable sales in your neighborhood. We can help you determine a realistic asking price for your home given today’s market conditions. Just reach out for a free home value assessment!

5. YOU HIRED THE WRONG AGENT (OR WORSE, NO AGENT AT ALL)

If you suspect that your previous real estate agent didn’t do enough—or used the wrong approach—to sell your home, you’re not alone. Many sellers whose listings languish until they expire or are withdrawn feel this way.

While most agents have the best of intentions, not all of them have the skills, experience, instincts, or local market expertise to devise a winning sales strategy in this challenging market.

Or, perhaps you chose not to hire a listing agent at all and have been trying to sell your home yourself. This can be an equally frustrating endeavor.

Although selling your home independently can help cut some costs, it can also be extremely risky and may even lose you money in the long run. For example, research by the National Association of Realtors suggests that For Sale By Owner (or FSBO) homes tend to sell for less than homes represented by a professional. In 2021, for example, the average FSBO home sold for $105,000 less than the average home sold with the assistance of an agent.

Now What?

If either of those scenarios sounds familiar, you need to ask yourself: “Would I still be interested in selling my home if I could get the right offer?”

If so, we should talk. We understand how frustrating it can be when you’ve put a lot of time, money, and effort into prepping your property for the market and it doesn’t sell. We also empathize with how disruptive a delayed home sale can be to your life.

By now, don’t you owe yourself more than the status quo when it comes to your real estate representation? Our multi-step Property Marketing Plan can help you sell your home for the most money possible, and in the process reconnect you with the excitement you originally felt upon first listing. It’s time for a new agent, new marketing, new buyers, and most of all… new possibilities.

READY TO MAKE A MOVE?

Let's talk. We can help you figure out why your home didn’t sell and how to revise your sales strategy and set your home up for success.

The housing market has experienced a shift and the waters may be choppier than usual for a while. But there's still plenty of opportunity in the current market: You just need a guide who knows where to look and how to find it.

This marketing piece is not intended as a solicitation for properties currently in an exclusive agreement with another Broker. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. New York Times - https://www.nytimes.com/2022/12/30/realestate/housing-market-prices-interest-rates.html

2. National Association of Realtors - https://store.realtor/2022-nar-profile-of-home-buyers-and-sellers-download/

3. Real Estate Staging Association - https://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548

4. National Association of Realtors - https://www.nar.realtor/blogs/styled-staged-sold/why-staging-matters-even-in-a-sellers-market

5. Marketplace - https://www.marketplace.org/2023/01/26/housing-slump-may-have-bottomed-out/

National Association of Realtors - https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

Top 6 Home Design Trends To Watch in 2023

Thu, 02 Feb 2023 02:17:07 GMT

Over the past few years, many of us have spent extra time at home—and that means we appreciate the personal design touches that make a house cozy and comfortable more than ever. Some of us have adapted our dwellings in new ways, from creating functional home offices to upgrading the appliances we use most.

But while it’s important to make your home your own, it’s also smart to think about the long-term impact your renovations could have on its value. Choosing highly-personalized fixtures and finishes can make it harder for future homebuyers to envision themselves in the space. Even if you don’t plan to sell your home soon, investing in popular design choices that are likely to stand the test of time will make things easier down the road.

And if you’re in the market for a new home, it’s wise to keep an eye out for features that might need to be updated soon so you can factor renovation costs into your budget.

We’ve rounded up six trends that we think will influence interior design in 2023, as well as ideas for how you might incorporate them in your own home. Remember, before taking action, it’s always wise to consult with a real estate professional to understand how specific updates and upgrades will affect your property’s value in your local market.

1. Separate Kitchen, Dining and Living Areas

For years, home design has been dominated by open-concept floor plans, particularly for kitchen, dining, and living areas. However, as the pandemic forced families to work and study from home, many struggled to find the privacy and separation they needed. As a result, designers report that more families are choosing to bring back kitchen and dining room walls to break up the space and create quieter areas. ¹

That doesn’t mean that we’re returning to an era of dark and cramped spaces, however. Even as walls make a return, it’s important to take care to retain a sense of flow and openness within the home and to prioritize natural light.

If you’re buying or building a new home, consider how you will use the space and whether or not an open floor plan will suit your needs. If you already live in a home with an open floor plan and it isn’t working for you, try rearranging furniture and strategically placing pieces like bookshelves, room dividers, or rugs to create distinct areas within the home and reduce noise.

2. Nature-Inspired Design

In the past few years, we’ve seen the “biophilia” trend explode, and there are no signs that it will be any less popular in 2023.2 This trend is all about bringing the outside in by adding natural touches throughout your home.

This year, design experts predict that natural, sustainable materials like bamboo, cork, and live-edge wood will lend character without being overwhelming. Wooden kitchen cabinets and islands will become more common in 2023, with white oak and walnut among the most popular choices.3,4 Wood will also appear in bathroom vanities and shelving and furniture throughout the home.

Colors inspired by nature (think mossy greens and desert tones) will also play into this trend and will blend seamlessly with wood tones. We’re also seeing a return to natural stone countertop materials like quartzite, marble, dark leathered granite, and soapstone.4,5

If you’re planning to add new shelving or redo your kitchen, consider turning to these materials to embrace the biophilic look. Or, incorporate elements of the trend by choosing nature-inspired paint colors and adding to your houseplant collection.

3. Lighting as a Design Feature

Spending more time at home has shown us the importance of having the right lighting for specific tasks and times of the day. As a result, many homeowners are reconsidering the ways they light their homes and using light fixtures to change the usability and mood of their spaces.5

In particular, homeowners are rejecting bright, flat overhead lighting and replacing it with lamps and task-specific options. A layered approach to lighting—such as using a combination of under-cabinet, task, and ambient lighting in a kitchen—enables homeowners to tweak the level of light they’re using based on the time of day and what they are doing.

In 2023, we expect to see more statement chandeliers, pendants, and wall sconces in a variety of shapes and materials.6 Thinking about switching up the lighting in your home? Start by adding floor or table lamps and swapping out fixtures before you invest in rewiring your space. Take note of what works and what doesn’t and watch how the light in your home changes throughout the day. You can then use that information to make lighting decisions that require a bigger investment.

4. More Vibrant Color Palettes

After the long dominance of whites and grays, more vibrant colors are coming back as a way to add character and dimension to homes.

This year, warm and earthy neutrals, jewel tones, and shades of red and pink are particularly popular.7,8 If your style tends toward the subtle, consider options like light, calming greens, blues, and pastels.

Major paint brands have responded to these homeowner preferences with their newest releases. Benjamin Moore’s 2023 color of the year, Raspberry Blush, is a lively shade of pinkish coral, while Sherwin William is embracing warm neutrals with Redend Point, a blushing beige.9,10 Behr’s choice of the year, Blank Canvas, is a creamy off-white that's a warmer version of the stark whites that have been trending over the past few years.11

If you’re planning to put your home on the market soon, it’s better to play on the safer side and avoid extremely bold or bright color choices when it comes to paint or fixed finishes like tile and countertops. Instead, try incorporating pops of color through throw pillows, art, and accessories.

5. Curved Furniture and Architectural Accents

Goodbye, sharp corners. In 2023, arches and curves lend a sleek feel that draws on classical design and retro trends while remaining modern.5,8 Rounded corners feel more relaxed and natural than sharp edges, lending more of a sense of flow and comfort to a home.

If you want to incorporate the trend into your new build or remodeling plans, curved kitchen islands and bars and arched alcoves are all good options—or you can take it a step further with arched windows and doorways. You can also carry this trend through to your light fixtures by incorporating a bubble chandelier or globe pendants.

It’s easy to embrace this look without renovations, too. Look for a softer feel in furniture, with sofas, chairs, and tables that showcase curved edges. Or, break up your space with an arched folding screen and a circular rug.

6. Art Deco Revival

Art Deco, the architecture and design style that took hold in the 1920s and ’30s, is enjoying a resurgence.12

As a style, Art Deco is marked by bold geometry, textures, and colors, as well as an emphasis on art. But the 2023 interpretation of this style is likely to be a bit less splashy than its historical roots. Designers predict that instead of incorporating all of the elements of the style, which could feel overwhelming, homeowners will pick bursts of color or bold accessories to bring some whimsy to their space.

Keep an eye out for vintage mirrors, lamps, or vases that bring a touch of Art Deco glam to your home, or embrace bold colors and fabrics like velvet. Choose pillows and throw blankets in bright colors and geometric patterns to nod to the look without diving in all the way.

DESIGNED TO SELL

Are you thinking about remodeling or making significant design changes to your home? Wondering how those changes might impact your future resale value?

Buyer preferences vary significantly based on your home’s neighborhood and price range. We’re happy to share our insights on the upgrades that will make it easier (or more difficult!) to sell your home. Give us a call for a free consultation!

Sources:

2023 Real Estate Market Outlook (And What It Means for You)

Wed, 04 Jan 2023 19:48:27 GMT

Last year, one factor drove the real estate market more than any other: rising mortgage rates.

In March 2022, the Federal Reserve began a series of interest rate hikes in an effort to pump the brakes on inflation. ¹ And while some market sectors have been slow to respond, the housing market has reacted accordingly.

Both demand and price appreciation have tapered, as the primary challenge for homebuyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many buyers and sellers, it should ultimately lead to a more stable and balanced real estate market.

So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While this is one of the more challenging real estate periods to forecast, here’s what several industry experts predict will happen to the U.S. housing market in the coming year.

MORTGAGE RATES WILL FLUCTUATE LESS

In 2022, 30-year fixed mortgage rates surged from roughly 3% in January to around 7%. According to Rick Sharga of real estate data company ATTOM, “We’ve never seen rates double in so short a period.” ²

This year, economists forecast a less dramatic shift.

In an interview with Bankrate, Nadia Evangelou, senior economist for the National Association of Realtors, shares her vision of three possible mortgage rate scenarios: ³

Inflation continues to surge, forcing the Fed to repeatedly raise interest rates. In that scenario, she predicts that rates could reach as high as 8.5%.
Inflation decelerates and mortgage rates follow suit, averaging 7 to 7.5% for the year.
Rising interest rates trigger a recession, which could ultimately lead mortgage rates to drop closer to 5% by the end of the year.

Realtor.com forecasts something similar to scenario #2 above: “Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year’s end.” ⁴ The Mortgage Bankers Association, however, projects something closer to Evangelou’s scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5.2% by Q4. ⁵

Economists at Fannie Mae fall somewhere in the middle. In a recent press release, they predicted that the U.S. economy will experience a “modest recession” this year. ⁶ But in their December Housing Forecast, they project that 30-year fixed mortgage rates will only fall by half a point from an average of 6.5% in Q1 to 6.0% in Q4. ⁷

“From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession,” said Fannie Mae Chief Economist Doug Duncan. ⁶

What does it mean for you? Even the experts can’t say for certain where mortgage rates are headed. Instead of trying to ”time the market,” focus instead on buying or selling a home when the time is right for you. There are a variety of mortgage options available that can make a home purchase more affordable, including adjustable rates, points, and buydowns—and keep in mind you can always refinance down the road. We’d be happy to refer you to a trusted mortgage professional who can outline your best options.

SALES VOLUME WILL FALL AND INVENTORY WILL RISE

It looks like the home-buying frenzy we experienced in recent years is behind us. While the desire to own a home remains strong, higher mortgage rates have made it unaffordable for a large segment of would-be buyers.

Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and days-on-market, or the time it takes to sell a home. But, there is a wide range when it comes to specifics.

Economists at Fannie Mae forecast that total home sales will fall by around 20% this year before rising again by nearly 15% in 2024. ⁷ National Association of Realtors Chief Economist Lawrence Yun projects a less extreme dip of 7% in 2023 with a rebound of 10% next year. ⁸

Realtor.com Chief Economist Danielle Hale foresees something in between. “The deceleration in home sales is likely to continue as high home prices and mortgage rates limit the pool of eligible home buyers. We anticipate that existing home sales will decline another 14.1% in 2023.” She expects this drop in sales to lead to a nearly 23% increase in inventory levels this year, offering more choices for buyers who have struggled to find a home in the past. ⁹

However, given the severe lack of housing supply, even with a double-digit increase, the market is expected to remain relatively tight and below pre-pandemic levels. Hale points out: “It’s important to keep historical context in mind. The level of inventory in 2023 is expected to fall roughly 15% short of the 2019 average.” ⁹

What does it mean for you? If you’ve been frustrated by a lack of inventory in the past, 2023 may bring new opportunities for you to find the perfect home. And today’s buyers have more negotiating power than they’ve had in years. Contact us to find out about current and future listings that meet your criteria.

If you’re hoping to sell, you may want to act fast; rising inventory levels will mean increased competition. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.

HOME PRICES WILL REMAIN RELATIVELY STABLE

While some economists expect home prices to fall this year, many expect them to remain fairly stable. “For most parts of the country, home prices are holding steady since available inventory is extremely low,” said Yun at a November conference. ⁸

Nationally, Yun expects the average median home price to tick up by 1% in 2023, with some markets experiencing greater appreciation and others experiencing declines. ⁸ Economists at Fannie Mae offer a similar projection, forecasting a slight decrease in their Home Price Index of about 1.5%, year-over-year. ⁷

Other experts foresee a larger fluctuation. Hale expects U.S. home prices to rise by 5.4% this year, while Morgan Stanley is forecasting a 7% drop from the peak in June 2022. ^9,10

Still, many economists agree that a housing market crash like the one we experienced in 2008 is highly unlikely. The factors that caused home prices to plunge during the Great Recession—specifically lax lending standards and a surplus of inventory—aren’t prevalent in our current market. ¹⁰ Therefore, home values are expected to remain comparatively stable.

What does it mean for you? It can feel scary to buy a home when there’s uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.

And if you’re planning to sell this year, you’ll want to chart your path carefully to maximize your profits. Contact us for recommendations and to find out what your home could sell for in today’s market.

RENT PRICES WILL CONTINUE TO CLIMB

Affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing could continue to drive “above-average” rent price increases in much of the country. ¹¹ The Federal Reserve Bank of Dallas expects year-over-year rental price growth to tick up to 8.4% in May before moderating later in the year. ¹²

According to Hale, “U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends.” ⁹

However, there are signs that the surge in rent prices could be tapering. According to Jay Parsons, head of economics for rental housing software company RealPage, there’s some evidence of a slowdown in demand. He predicts that market-rate rents will rise just 3.3% this year. Still, analysts agree that a return to lower pre-pandemic rental prices is unlikely. ¹⁰

What does it mean for you? Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a free consultation to discuss your options.

And if you’ve ever thought about purchasing a rental property, now may be a perfect time. Call today to get your investment property search started.

WE’RE HERE TO GUIDE YOU

If you’re considering buying or selling a home in 2023, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.

Sources:

Forbes -
https://www.forbes.com/advisor/investing/fed-funds-rate-history/
Bankrate -
https://www.bankrate.com/mortgages/will-mortgage-rates-go-up-in-december-2022/
Bankrate -
https://www.bankrate.com/real-estate/housing-market-predictions-2023/
Realtor.com -
https://www.realtor.com/news/trends/2023-the-year-of-the-homebuyer-our-bold-predictions-on-home-prices-mortgage-rates-and-more/
Mortgage Bankers Association -
https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-dec-2022.pdf?sfvrsn=b584bf7_1
Fannie Mae -
https://www.fanniemae.com/newsroom/fannie-mae-news/economy-still-expected-enter-and-exit-modest-recession-2023
Fannie Mae -
https://www.fanniemae.com/media/45801/display
National Association of Realtors -
https://www.nar.realtor/newsroom/nars-lawrence-yun-predicts-us-home-prices-wont-experience-major-decline-could-possibly-rise-slightly
Realtor.com -
https://www.realtor.com/research/2023-national-housing-forecast/
The New York Times -
https://www.nytimes.com/2022/11/04/realestate/housing-market-interest-rates.html
CNBC -
https://www.cnbc.com/2022/09/28/how-much-higher-rent-will-go-in-2023-according-to-experts.html
Federal Reserve Bank of Dallas -
https://www.dallasfed.org/research/economics/2022/0816

Home for the Holidays: How To Stretch Your Budget in a Season of Inflation

Sat, 03 Dec 2022 00:38:45 GMT

Home for the Holidays: How To Stretch Your Budget in a Season of Inflation

You don't have to break the bank to celebrate the holidays in style—even in this season of inflation. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out extra savings.

For example, according to the U.S. Environmental Protection Agency (EPA), you can save a couple of hundred dollars a year just by sealing your home and boosting its insulation.1 Other small fixes—such as swapping old light bulbs for LEDs and plugging electronics into a powerstrip—can boost your yearly savings enough to pay off some of your holiday budget.

And thanks to a pandemic-era boom in online shopping, it is easier than ever to find deals on new and pre-owned furniture, thrifted gifts, DIY decor, and more. Even secondhand stalwarts like Goodwill have joined the digital fray, making it a cinch to score gently-used treasures at extra-low prices.2

You won't be the only one bargain-hunting your way to a more financially-stable New Year. Multiple surveys have found that inflation is not only chilling people's spending, it's also prompting shoppers to search for better deals and creative ways to reduce their bills.3

Here are some strategies you can use to boost your holiday budget by trimming household expenses:

Hunt for Deals on Groceries

If you're finding it harder than it used to be to serve your family dinner on a budget, you're not alone. With the U.S. food-at-home index (a measure of grocery price inflation) at a 43-year high, many families are struggling to control costs on food staples, such as meat, dairy, produce, and grains.4

That's made pulling off holiday gatherings especially stressful lately. But don't despair: Even with inflation, retailers are still giving motivated shoppers plenty of opportunities to whittle down their bills.

The key is to pay attention to the cost of each item on your shopping list—not just the most expensive—and look for easy swaps and discounts. For example, try buying non-perishable items in bulk, especially when they’re on sale, and only in-season produce. Or trade name-brand goods for less expensive options from a store's private label. As you tap into your inner bargain hunter, you could be surprised by what you save when you’re more mindful of your selections.

And unlike in the old days, you no longer have to clip your way through paper flyers to snag a bargain. Instead, you can save both time and money by scouting for deals online, digitally clipping coupons, and earning cash back through special apps and browsers. For example, coupon aggregation sites, like Coupons.com, and shopping apps—such as Checkout 51 and Ibotta—make it easy to score discounts and cash back on a variety of purchases, including groceries.

Also, check to see if your neighborhood grocer posts their weekly flyers online. If you're hosting a holiday party, the markdowns you find can help you narrow your food and recipe choices, based on what's currently on sale.

2. Prep Your Home for Holiday Guests With Pre-Owned Finds

You don't have to sacrifice style for the sake of preserving your holiday budget either. If you're expecting company this year and would like to add some festive flair to your home, you can do so inexpensively—especially if you're willing to decorate with items that are secondhand.

Thrifting is back in vogue, with an increasing number of shoppers preferring pre-owned furniture and home goods. A recent study found that the “recommerce” market grew almost 15% last year, which was twice the pace of general retail.5 Plus, buying used isn’t just a great way to save money, it also helps the environment by keeping reusable items out of landfills.

Fortunately, it’s become easier to score secondhand deals online. For example, you can scout consumer marketplaces on Facebook, Craigslist, and OfferUp. Or you can take advantage of neighborhood freecycles and “Buy Nothing” groups. And a number of thrift shops now have e-commerce sites, including major chains, like Goodwill.

If you're handy with a paintbrush or have some basic carpentry skills, you can also modernize some of your existing furniture by upcycling it yourself. Or, if you enjoy crafting, search through your own recycling or sewing bin for raw material to make one-of-a-kind decorations.

Don't stress yourself out, though, if you don't have the time or money to dress your home the way you hoped. “A house doesn’t have to be perfect or completely done for it to feel festive or inviting,” designer Justina Blakeney noted in an interview with the Washington Post. “These are family and friends, and they are not judging you.”6

3. Forgo Major Renovations in Favor of DIY Home Improvements

Holidays are always a tricky time to undergo big renovations. But with ongoing worker and material shortages, now is an especially bad time to commit. Inflated costs can add thousands to your reno budget –—and unnecessary stress to your holiday.

Instead of suffering through an ill-timed remodel, you're better off saving this time of year for simpler, less expensive projects you can do yourself.

One winter-perfect upgrade to consider: Build a DIY fire pit so that you and your guests can roast marshmallows and relax in the cozy comfort of your backyard. You can also add some extra ambiance by hanging energy-efficient LED outdoor string lights that change from white to colorful. These are festive enough for the holidays, but also versatile enough to use year-round.

Or, if you'd rather curl up by an indoor fire, channel your DIY energy into a fireplace upgrade. Adding a wooden beam to the top of your mantel can add an extra layer of coziness. Alternatively, re-tiling or painting your fireplace surround can lend contemporary flair.

Just be sure to stick to DIY projects that you know you can do a quality job on—especially if your changes will be difficult to reverse. Feel free to reach out for a free assessment to find out how your planned renovations could impact your home’s resale value.

4. Invest in Home Maintenance Projects That Cut Your Utility Bills

You can save money by completing basic home maintenance tasks[1] , such as swapping your furnace filter and updating your lightbulbs. But if you really want to lower your bills this winter, consider projects that make your home more energy efficient.

According to the EPA, 9 out of 10 homes in the U.S. are under-insulated, which wastes energy and money. ⁷ Luckily, there are plenty of DIY insulation projects that you can complete in just a few days. For example, the EPA offers guides on how to:

● Insulate your attic or basement crawl space

● Weatherstrip doors and windows

● Seal areas around the house that may be leaking air, including electrical outlets and fireplaces

The savings you get from these projects can really add up. The EPA estimates that sealing and insulating your ducts can make your HVAC system up to 20% more efficient. ⁸ And thanks to new provisions from the Inflation Reduction Act, you can also save a bundle this year by investing in certain energy-efficient upgrades and claiming a tax credit. ⁹ Be sure to check with us about any local rebates and incentives that may be available, too, before getting started on a project.

5. Use Expense Tracking to Boost Your Holiday Budget

To avoid overextending yourself during the holidays, one of the best things you can do is track your income and expenses. If your monthly budget is usually tight, you may need to make some adjustments to free up cash for holiday expenditures.

For example, here's a sample budget worksheet that we created. Start by adding in your expenses: Under the “Typical” column, you can list your standard expenses, and under the “Adjusted” column, list any areas where you could cut back on spending.

Then consider how your standard wages may be adjusted this month by extra shifts, additional tips, or an end-of-year bonus. By decreasing your spending and/or increasing your income, you can build room in your budget for holiday gifts and gatherings.

Household Budget Worksheet

Feel free to utilize this worksheet as a template that you can personalize to your needs, or ask us for a PDF copy that you can print out and use right away.

7 Tips to Maximize Your Home’s Sale Price

Wed, 02 Nov 2022 16:44:05 GMT

7 Tips to Maximize Your Home’s Sale Price

Over the past few years, a real estate buying frenzy bid up home prices to eye-popping amounts. However, as mortgage rates have risen, buyer demand has cooled. ¹ Consequently, home sellers who enter the market today may need to reset their expectations.

The reality is, it’s no longer enough to stick a “for sale” sign in the yard and wait for buyers to bang down the door. If you want to net the most money possible for your property in today’s market, you’ll need an effective game plan and a skilled team of professionals to implement it.

Fortunately, we’ve developed a listing strategy that combines our proven approach to preparation, pricing, and promotion—all designed to help you get top dollar for your home. But you will play an important role in the selling process, as well.

Here are some crucial steps you can take to set yourself up for success as a home seller in this market:

Make Strategic Repairs and Improvements

When you sell something, it’s important to consider what your customer wants to buy. And according to the National Association of Realtors, only 6% of today’s buyers report that they are looking for a DIY fixer-upper. ² The vast majority want a move-in-ready home, which means that any outstanding repairs or dated features can be a major turn-off.

Before your home goes on the market, we’ll conduct a thorough walk-through to identify any problems that could prevent it from selling. In some cases, we may recommend a professional pre-listing inspection. Finding and addressing issues like leaks, rot, and foundation problems up front can pay off in the final sale price. Plus, it prevents sales from falling through because of a red flag on the home inspection, a scenario no seller wants to face.

Beyond repairs, we’ll also help you identify the simple upgrades that offer the highest return on your investment. For example, new paint can give your home a fresh look at a reasonable cost. However, it’s important to choose the right colors. One study found that painting your bathroom light blue could lead to a 1.6% increase in the offer price! ³ Similarly, minor landscaping improvements can pay off in a major way. A healthy lawn offers an estimated 256% return on investment.

2. Declutter and Depersonalize

When buyers look at a home for sale, they’re trying to envision themselves living there. That’s hard to do if it’s chock-full of the current owner’s family photos, children’s artwork, and souvenir collections. Plus, cluttered homes look smaller, and older items can make them feel dated.

Decluttering before you put your home up for sale will help you in the long run—after all, you’ll need to move all your things to your new home eventually. Now is the time to shred, digitize, or organize old documents, donate old clothes, or move bulky furniture into storage. At a minimum, you’ll want to pack away excess items neatly before potential buyers view the home. Remove personal photos and other trinkets to create a blank slate that viewers can imagine decorating with their own prized possessions.

If you feel overwhelmed by this process, we’d be happy to make recommendations or refer you to a local service provider who can help.

3. Stage Your Home for Success

Just as you take care to dress professionally for a job interview, you should always ensure your home looks its best for potential buyers. Home shoppers today are used to scrolling through Instagram and Pinterest, and they want to see the same wow factor when touring a home.

The process of making your home look its best and appeal to potential buyers is called staging, and it can be a game changer. According to the International Association of Home Staging Professionals, an average priced staged home sells 5 to 11 times faster than its unstaged counterpart. Even better, the majority of staged homes sell for 4% to 20% over list price!

Some sellers hire a professional stager, who may bring in furniture and decor to increase the home’s appeal. Others choose to stage their homes themselves. We can help advise you on which route to choose and how much to invest in the process.

It’s also important to consider what buyers in your neighborhood are likely to be looking for in a home. We can help guide your staging choices with our local market insights. For example, in neighborhoods where a large share of residents work from home, it may be effective to stage one room as an office space so potential buyers can envision their day-to-day routine.

4. Prep for Each Showing

Most of us don’t live picture-perfect lives, and our homes reflect that (sometimes messy) reality. But when your home is on the market, it’s important to ensure that it is always ready for viewers, even on short notice. A missed showing is a missed opportunity to sell your home!

Before your home hits the market, it may be worth hiring professional cleaners to get in all the nooks and crannies. After, try your best to keep things spic and span. Just a few minutes a day wiping down counters, sweeping the floors, and vacuuming can make a big difference.

It’s also worth noting that most buyers will open cabinets, drawers, and closets—so try to make sure everything is as neat and organized as possible. Keep toiletries and small appliances off countertops, and secure valuables and sensitive documents in a safe or off-site.

Want help finding a cleaning service to make your home shine for buyers? Reach out for a referral!

5. Price Your Home Correctly From the Start

In the past few years, you may have seen homes in your neighborhood sell for shocking amounts and wondered if you could get a similar price for your property. The temptation to list your home on the high side can be strong, but it’s best to be realistic from the start. Even in a hot market, some homes will sit for months. And the longer a property is listed, the more buyers worry that something is wrong with it.

Of course, you also don’t want to set your price too low and lose out on potential profit. That’s why it’s essential to work with real estate agents (like us!) who know the ins and outs of our local market and what buyers are willing to pay today. In a quickly-evolving market, comparable sales from a few months ago can lag the current market reality.

Fortunately, if you’ve owned your home for several years, chances are good that it’s worth much more today than you paid for it. That means you stand to walk away with a handsome profit. In fact, recent reports show that homeowner equity is at an all-time high.

6. Avoid Acting on Emotion

The past few years of over-asking-price offers with few contingencies have set certain expectations for many sellers. It’s only natural to feel hurt or even offended if an offer comes in lower than what you think your home is worth.

However, it’s important to keep in mind that those market conditions were unprecedented, and we are now returning to a more typical market. Home sellers who act rationally, rather than emotionally, are going to get the best results.

Remember: You can always counter a low offer. The same goes for repair requests and contingencies—everything is negotiable. However, it’s important to accept that the market is adjusting and flexibility is key. Keep your expectations reasonable, and remain open-minded. And you can rest assured knowing that we’ll be by your side every step of the way to help you navigate the process and negotiate a great deal.

7. Work With a Local Market Expert

The economics impacting mortgage rates may be national, but real estate markets are hyperlocal. That’s why working with a professional agent who understands your neighborhood’s dynamics is essential. Through our experience, we’ve gathered insights that can help us position your home for success in this market. Plus, we have the resources to connect with qualified buyers searching for a home like yours.

Working with a knowledgeable agent is also the secret to getting as much money as possible for your home. We have access to extensive data on recent sales in your neighborhood, which we will use to price and promote your property. That’s one reason why homes sold by agents draw much higher prices than those sold by their owners alone. While for-sale-by-owner homes went for a median price of $260,000 in 2020, the median for homes sold by agents was $318,000. That’s a difference of $58,000—and money you don’t want to leave on the table.

YOUR AGENT AND ADVOCATE

Selling a home in a fast-changing market can be stressful. You’re likely to hear conflicting advice and opinions from people in your life, and decisions like what color to paint your front door or how much to list your home for can be overwhelming.

That’s where we come in. The market may be adjusting, but it’s still highly advantageous for sellers—and we’re here to help you make the most of it. We’re listing experts in our area, and we know what steps you need to take for a smooth, profitable transaction.

If you’re considering buying or selling a home, we invite you to reach out to schedule a free consultation. We’re happy to talk through your specific situation and goals and help you identify your next steps.

Sources:

1. Yahoo! Finance - https://finance.yahoo.com/news/bidding-war-rate-drops-lowest-120000537.html

2. National Association of Realtors - https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf

3. Zillow - https://www.zillowgroup.com/news/paint-colors-that-could-lead-to-higher-offers/

4. Angi - https://www.angi.com/articles/smart-landscaping-tips-can-increase-home-value.htm

5. International Association of Home Staging Professionals - https://pages.iahsp.com/home-staging-statistics/

6. Washington Post - https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/

7. Realtor.com - https://www.realtor.com/research/changes-in-value-of-household-real-estate-q2-2022/

8. National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#purchased

Buy Now or Rent Longer?

Wed, 05 Oct 2022 12:42:05 GMT

5 Questions to Answer Before Purchasing Your First Home

Deciding whether to jump into the housing market or rent instead is rarely an easy decision – especially if you’re a first-time homebuyer. But in today’s whirlwind market, you may find it particularly challenging to pinpoint the best time to start exploring homeownership.

A real estate boom during the pandemic pushed home prices to an all-time high. ¹ Add higher mortgage rates to the mix, and some would-be buyers are wondering if they should wait to see if prices or rates come down.

But is renting a better alternative? Rents have also soared along with inflation – and are likely to continue climbing due to a persistent housing shortage. ² And while homebuyers can lock in a set mortgage payment, renters are at the mercy of these rising costs for the foreseeable future.

So, what's the better choice for you? There’s a lot to consider when it comes to buying versus renting. Luckily, you don’t have to do it alone. Reach out to schedule a free consultation and we'll help walk you through your options. You may also find it helpful to ask yourself the following questions:

How long do I plan to stay in the home?

You'll get the most financial benefit from a home purchase if you own the property for at least five years. ³ If you plan to sell in a shorter period of time, a home purchase may not be the best choice for you.

There are costs associated with buying and selling a home, and it may take time for the property’s value to rise enough to offset those expenditures.

Even though housing markets can shift from one year to the next, you’ll typically find that a home’s value will ride out a market’s ups and downs and appreciate with time. ⁴ The longer you own a property, the more you are likely to benefit from its appreciation.

Once you’ve found a community that you’d like to stay in for several years, then buying over renting can really pay off. You’ll not only benefit from appreciation, but you’ll also build equity as you pay down your mortgage – and you’ll have more security and stability overall.

Also important: If you plan to stay in the home for the life of the mortgage, there will come a time when you no longer have to make those payments. As a result, your housing costs will drop dramatically, while your equity (and net worth) continue to grow.

Is it a better value to buy or rent in my area?

If you know you plan to stay put for at least five years, you should consider whether buying or renting is the better bargain in your area.

One helpful tool for evaluating your options is a neighborhood’s price-to-rent ratio: just divide the median home price by the median yearly rent price. The higher the price-to-rent ratio is, the more expensive it is to buy compared to rent. ⁵ Keep in mind, though, that this equation provides only a snapshot of where the market stands today. As such, it may not accurately account for the full impact of rising home values and rent increases over the long term.

According to the National Association of Realtors, a typical U.S. homeowner who purchased a single-family existing home 10 years ago would have gained roughly $225,000 in equity — all while maintaining a steady mortgage payment. ⁶

In contrast, someone who chose to rent for the past 10 years would have not only missed out on those equity gains, but they would have also seen U.S. rental prices increase by around 66%. ⁷

So even if renting seems like a better bargain today, buying could be the better long-term financial play.

Ready to compare your options? Then reach out to schedule a free consultation. As local market experts, we can help you interpret the numbers to determine if buying or renting is the better value in your particular neighborhood.

Can I afford to be a homeowner?

If you determine that buying a home is the better value, you’ll want to evaluate your financial readiness.

Start by examining how much you have in savings. After committing a down payment and closing costs, will you still have enough money left over for ancillary expenses and emergencies? If not, that’s a sign you may be better off waiting until you’ve built a larger rainy-day fund.

Then consider how your monthly budget will be impacted. Remember, your monthly mortgage payment won’t be your only expense going forward. You may also need to factor in property taxes, insurance, association fees, maintenance, and repairs.

Still, you could find that the monthly cost of homeownership is comparable to renting, especially if you make a sizable down payment. Landlords often pass the extra costs of homeowning onto tenants, so it’s not always the cheaper option.

Plus, even though you’ll be in charge of financing your home’s upkeep if you buy, you’ll also be the one who stands to benefit from the fruits of your investment. Every major upgrade, for example, not only makes your home a nicer place to live; it also helps boost your home's market value.

If you want to buy a home but aren’t sure you can afford it, give us a call to discuss your goals and budget. We can give you a realistic assessment of your options and help you determine if your homeownership dreams are within reach.

Can I qualify for a mortgage?

If you’re prepared to handle the costs of homeownership, you’ll next want to look into how likely you are to get approved for a mortgage.

Every lender will have its own criteria. But, in general, you can expect a creditor to scrutinize your job stability, credit history, and savings to make sure you can handle a monthly mortgage payment.

For example, lenders like to see evidence that your income is stable and predictable. So if you’re self-employed, you may need to provide additional documentation proving that your earnings are dependable. A lender will also compare your monthly debt payments to your income to make sure you aren’t at risk of becoming financially overextended.

In addition, a lender will check your credit report to verify that you have a history of on-time payments and can be trusted to pay your bills. Generally, the higher your credit score, the better your odds of securing a competitive rate.

Whatever your circumstances, it’s always a good idea to get preapproved for a mortgage before you start house hunting. Let us know if you’re interested, and we’ll give you a referral to a loan officer or mortgage broker who can help.

Want to learn more about applying for a mortgage? Reach out to request a copy of our report: “8 Strategies to Secure a Lower Mortgage Rate”

How would owning a home change my life?

Before you begin the preapproval process, however, it’s important to consider how homeownership would affect your life, aside from the long-term financial gains.

In general, you should be prepared to invest more time and energy in owning a home than you do renting one. There can be a fair amount of upkeep involved, especially if you buy a fixer-upper or overcommit yourself to a lot of DIY projects. If you’ve only lived in an apartment, for example, you could be surprised by the amount of time you spend maintaining a lawn.

On the other hand, you might relish the chance to tinker in your very own garden, make HGTV-inspired improvements, or play with your dog in a big backyard. Or, if you’re more social, you might enjoy hosting family gatherings or attending block parties with other committed homeowners.

The great thing about owning a home is that you can generally do what you want with it – even if that means painting your walls fiesta red one month and eggplant purple the next.

The choice – like the home – is all yours.

HAVE MORE QUESTIONS? WE’VE GOT ANSWERS

The decision to buy or rent a home is among the most consequential you will make in your lifetime. We can make the process easier by helping you compare your options using real-time local market data. So don't hesitate to reach out for a personalized consultation, regardless of where you are in your deliberations. We'd be happy to answer your questions and identify actionable steps you can take now to reach your long-term goals.

Sources:

1. CNN -
https://www.cnn.com/2022/08/11/homes/home-prices-second-quarter/index.html

2. NPR - https://www.npr.org/2022/07/14/1109345201/theres-a-massive-housing-shortage-across-the-u-s-heres-how-bad-it-is-where-you-l

3. Bankrate -
https://www.bankrate.com/mortgages/5-year-real-estate-rule/

4. Federal Reserve Bank of St. Louis -
https://fred.stlouisfed.org/series/MSPUS

5. National Association of REALTORS - https://www.nar.realtor/blogs/economists-outlook/price-to-rent-ratios-by-state-from-2014-2019

6. National Association of REALTORS -
https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years

7. Statista -
https://www.statista.com/statistics/200223/median-apartment-rent-in-the-us-since-1980/

KW Landis Rentsel Team Annual Food Drive

Mon, 12 Sep 2022 15:24:06 GMT

Help us fill the shelves in our local pantries!

Drop off donations at our office Mon-Fri 9am-3pm between Sept 1-30

Drop off donations at one of these other participating locations:

Applebees Quakertown
Ulta Quakertown
Trolley Barn Quakertown
Harleysville Senior Center
Franconia Cafe & Market Souderton
Windsor Hills Chiropractic Hatfield
Celerity Quakertown
Family Caregivers Network Inc. Pennsburg
Title Boxing Club Trexlertown
Upper Perk Community Day - Saturday, Sept 10, 2022

OR
bring them to our drop-off party on October 1st from 10am-1pm!
Location: 431 S. West End Blvd., Quakertown PA 18951

What we need:
HYGIENE PRODUCTS, WATER, JUICE, PASTA, PASTA SAUCE, HOT/COLD CEREAL, OATMEAL, BEANS, CEREAL, CANNED VEGETABLES/FRUITS, & SNACKS

Food Drive Events:

Wednesday, September 7th

carry-out for a cause

Applebees Quakertown

Friday, September 9th

dine out fundraiser

TGI Fridays Quakertown

Tuesday, September 13th

dine out fundraiser

Lee's Hoagies Quakertown

Friday, September 23rd

dine out fundraiser

TGI Fridays Quakertown

Wednesday, September 28th

dine out fundraiser

Dominick's Pizza Quakertown

Saturday, October 1st

drive thru drop off party

Keller Williams Realty Group

431 W. End Blvd., Quakertown PA 18951
All proceeds from our dine-out events will benefit bucks county opportunity council which handles distribution to our local food pantries in order of need.

Supporting these local food pantries:

Christ’s Cupboard Food Pantry
FEAST Pantry
Fresh For All
Heaven’s Bounty
Keystone Opportunity Center
The Lord’s Pantry
Pennridge FISH
St. Isidore’s Roman Catholic Church Food Pantry
Between Friends Outreach
Doylestown Food Pantry
Bucks County Housing Group
Living Hope Community Church
New Britain Baptist Church
Warminster Food Bank
Warrington Fellowship Church Food Pantry

8 Strategies to Secure a Lower Mortgage Rate

Wed, 07 Sep 2022 19:41:30 GMT

Mortgage rates have been on a roller coaster ride this year, rising and falling amid inflationary pressures and economic uncertainty. And even the experts are divided when it comes to predicting where rates are headed next.1

This climate has been unsettling for some homebuyers and sellers. However, with proper planning, you can work toward qualifying for the best mortgage rates available today – and open up the possibility of refinancing at a lower rate in the future.

How does a lower mortgage rate save you money? According to Trading Economics, the average new mortgage size in the United States is currently around $410,000.2 Let’s compare a 5.0% versus a 6.0% fixed-interest rate on that amount over a 30-year term.

With a 5% rate, your monthly payments would be about $2,201. At 6%, those payments would jump to $2,458, or around $257 more. That adds up to a difference of almost $92,600 over the lifetime of the loan. In other words, shaving off just one percentage point on your mortgage could put nearly $100K in your pocket over time.

So, how can you improve your chances of securing a low mortgage rate? Try these eight strategies:

Raise your credit score.

Borrowers with higher credit scores are viewed as “less risky” to lenders, so they are offered lower interest rates. A good credit score typically starts at 690 and can move up into the 800s.3 If you don’t know your score, check with your bank or credit card company to see if they offer free access. If not, there are a plethora of both free and paid credit monitoring services you can utilize.

If your credit score is low, you can take steps to improve it, including:4

Correct any errors on your credit reports, which can bring down your score. You can access reports for free by visiting AnnualCreditReport.com.
Pay down revolving debt. This includes credit card balances and home equity lines of credit.
Avoid closing old credit card accounts in good standing. It could lower your score by shortening your credit history and shrinking your total available credit.
Make all future payments on time. Payment history is a primary factor in determining your credit score, so make it a priority.
Limit your credit applications to avoid having your score dinged by too many inquiries. If you’re shopping around for a car loan or mortgage, minimize the impact by limiting your applications to a short period, usually 14 to 45 days.5

Over time, you should start to see your credit score climb — which will help you qualify for a lower mortgage rate.

Keep steady employment.

If you are preparing to purchase a home, it might not be the best time to make a major career change. Unfortunately, frequent job moves or gaps in your résumé could hurt your borrower eligibility.

When you apply for a mortgage, lenders will typically review your employment and income over the past 24 months.5 If you’ve earned a steady paycheck, you could qualify for a better interest rate. A stable employment history gives lenders more confidence in your ability to repay the loan.

That doesn’t mean a job change will automatically disqualify you from purchasing a home. But certain moves, like switching from W-2 to 1099 (independent contractor) income, could throw a wrench in your home buying plans.6

Lower your debt-to-income ratios.

Even with a high credit score and a great job, lenders will be concerned if your debt payments are consuming too much of your income. That’s where your debt-to-income (DTI) ratios will come into play.

There are two types of DTI ratios:7

Front-end ratio — What percentage of your gross monthly income will go towards covering housing expenses (mortgage, taxes, insurance, and dues or association fees)?
Back-end ratio — What percentage of your gross monthly income will go towards covering ALL debt obligations (housing expenses, credit cards, student loans, and other debt)?

What’s considered a good DTI ratio? For better rates, lenders typically want to see a front-end DTI ratio that’s no higher than 28% and a back-end ratio that’s 36% or less.7

If your DTI ratios are higher, you can take steps to lower them, like purchasing a less expensive home or increasing your down payment. Your back-end ratio can also be decreased by paying down your existing debt. A bump in your monthly income will also bring down your DTI ratios.

Increase your down payment.

Minimum down payment requirements vary by loan type. But, in some cases, you can qualify for a lower mortgage rate if you make a larger down payment.8

Why do lenders care about your down payment size? Because borrowers with significant equity in their homes are less likely to default on their mortgages. That’s why conventional lenders often require borrowers to purchase private mortgage insurance (PMI) if they put down less than 20%.

A larger down payment will also lower your overall borrowing costs and decrease your monthly mortgage payment since you’ll be taking out a smaller loan. Just be sure to keep enough cash on hand to cover closing costs, moving expenses, and any furniture or other items you’ll need to get settled into your new space.

Compare loan types.

All mortgages are not created equal. The loan type you choose could save (or cost) you money depending on your qualifications and circumstances.

For example, here are several common loan types available in the U.S. today:9

Conventional — These offer lower mortgage rates but have more stringent credit and down payment requirements than some other types.
FHA — Backed by the government, these loans are easier to qualify for but often charge a higher interest rate.
Specialty — Certain specialty loans, like VA or USDA loans, might be available if you meet specific criteria.
Jumbo — Mortgages that exceed the local conforming loan limit are subject to stricter requirements and may have higher interest rates and fees.10

When considering loan type, you’ll also want to weigh the pros and cons of a fixed-rate versus variable-rate mortgage:11

Fixed rate — With a fixed-rate mortgage, you’re guaranteed to keep the same interest rate for the entire life of the loan. Traditionally, these have been the most popular type of mortgage in the U.S. because they offer stability and predictability.
Adjustable rate — Adjustable-rate mortgages, or ARMs, have a lower introductory interest rate than fixed-rate mortgages, but the rate can rise after a set period of time — typically 3 to 10 years.

According to the Mortgage Bankers Association, 10% of American homebuyers are now selecting ARMs, up from just 4% at the start of this year.12 An ARM might be a good option if you plan to sell your home before the rate resets. However, life is unpredictable, so it’s important to weigh the benefits and risks involved.

Shorten your mortgage term.

A mortgage term is the length of time your mortgage agreement is in effect. The terms are typically 15, 20, or 30 years.13 Although the majority of homebuyers choose 30-year terms, if your goal is to minimize the amount you pay in interest, you should crunch the numbers on a 15-year or 20-year mortgage.

With shorter loan terms, the risk of default is less, so lenders typically offer lower interest rates.13 However, it’s important to note that even though you’ll pay less interest, your mortgage payment will be higher each month, since you’ll be making fewer total payments. So before you agree to a shorter term, make sure you have enough room in your budget to comfortably afford the larger payment.

Get quotes from multiple lenders.

When shopping for a mortgage, be sure to solicit quotes from several different lenders and lender types to compare the interest rates and fees. Depending upon your situation, you could find that one institution offers a better deal for the type of loan and term length you want.

Some borrowers choose to work with a mortgage broker. Like an insurance broker, they can help you gather quotes and find the best rate. However, if you use a broker, make sure you understand how they are compensated and contact more than one so you can compare their recommendations and fees.14

Don’t forget that we can be a valuable resource in finding a lender, especially if you are new to the home buying process. After a consultation, we can discuss your financing needs and connect you with loan officers or brokers best suited for your situation.

Consider mortgage points.

Even if you score a great interest rate on your mortgage, you can lower it even further by paying for points. When you buy mortgage points — also known as discount points — you essentially pay your lender an upfront fee in exchange for a lower interest rate. The cost to purchase a point is 1% of your mortgage amount. For each point you buy, your mortgage rate will decrease by a set amount, typically 0.25%.15 You’ll need upfront cash to pay for the points, but you can more than makeup for the cost in interest savings over time.

However, it only makes sense to buy mortgage points if you plan to stay in the home long enough to recoup the cost. You can determine the breakeven point or the period of time you’d need to keep the mortgage to make up for the fee, by dividing the cost by the amount saved each month.15 This can help you determine whether or not mortgage points would be a good investment for you.

Getting Started

Unfortunately, the rock-bottom mortgage rates we saw during the height of the pandemic are behind us. However, today’s 30-year fixed rates still fall beneath the historical average of around 8% — and are well below the all-time peak of 18.45% in 1981.16, 17

And although higher mortgage rates have made it more expensive to finance a home purchase, they have also eliminated some of the competition from the market. Consequently, today’s buyers are finding more homes to choose from, fewer bidding wars, and more sellers willing to negotiate or offer incentives such as cash toward closing costs or mortgage points.

If you’re ready and able to buy a home, there’s no reason that concerns about mortgage rates should sideline your plans. The reality is that many economists predict home prices to continue climbing.18 So you may be better off buying today at a slightly higher rate than waiting and paying more for a home a few years from now. You can always refinance if mortgage rates go down, but you can’t make up for the lost years of equity growth and appreciation.

If you have questions or would like more information about buying or selling a home, reach out to schedule a free consultation. We’d love to help you weigh your options, navigate this shifting market, and reach your real estate goals!

Sources:

Washington Post –
https://www.washingtonpost.com/business/2022/08/04/mortgage-rates-sink-below-5-percent-first-time-four-months/
Trading Economics –
https://tradingeconomics.com/united-states/average-mortgage-size
NerdWallet –
https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score
Debt.org –
https://www.debt.org/credit/improving-your-score/
The Balance –
https://www.thebalance.com/will-multiple-loan-applications-hurt-my-credit-score-960544
Time –
https://time.com/nextadvisor/mortgages/how-lenders-evaluate-your-employment/
Bankrate –
https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/
NerdWallet –
https://www.nerdwallet.com/article/mortgages/payment-buy-home
Consumer Financial Protection Bureau –
https://www.consumerfinance.gov/owning-a-home/loan-options/
NerdWallet –
https://www.nerdwallet.com/article/mortgages/jumbo-loans-what-you-need-to-know
Bankrate –
https://www.bankrate.com/mortgages/arm-vs-fixed-rate/
MarketWatch –
https://www.marketwatch.com/picks/as-mortgage-rates-rise-heres-exactly-how-more-homebuyers-are-snagging-mortgage-rates-around-4-01656513665
Consumer Financial Protection Bureau –
https://www.consumerfinance.gov/owning-a-home/loan-options/#anchor_loan-term_361c08846349fe
Federal Trade Commission –
https://consumer.ftc.gov/articles/shopping-mortgage-faqs
Bankrate –
https://www.bankrate.com/mortgages/mortgage-points/
CNBC –
https://www.cnbc.com/select/mortgage-rates-today-still-relatively-low/
Rocket Mortgage –
https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed
MarketWatch –
https://www.marketwatch.com/picks/continuing-home-price-deceleration-heres-what-5-economists-and-real-estate-pros-predict-will-happen-to-the-housing-market-this-year-01659347993

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