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Today’s Housing Inventory Is a Sweet Spot for Sellers

Thu, 06 Jul 2023 10:30:00 GMT

One of the biggest challenges in the housing market right now is how few homes there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s take a look at the latest information on active listings, or homes for sale in a given month, as it compares to more normal levels.

According to a recent report from Realtor.com :

“On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”

The graph below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market ( see graph below ):

It’s worth noting that 2020-2022 are not included in this graph. That’s because they were truly abnormal years for the housing market. To make the comparison fair, those have been omitted so they don’t distort the data.

When you compare the orange bars for 2023 with the last normal years for the housing market (2017-2019), you can see the count of active listings is still far below the norm.

What Does This Mean for You?

If you’re thinking about selling your house , that low inventory is why this is a great time to do so. Buyers have fewer choices now than they did in more normal years, and that’s continuing to impact some key statistics in the housing market. For example, sellers will be happy to see the following data from the latest Confidence Index from the National Association of Realtors (NAR):

The percent of homes that sold in less than a month ticked up slightly to 74%.

The median days on market went down to 18 days, showing homes are still selling fast when priced right.

The average number of offers on recently sold homes went up to 3.3 offers.

Bottom Line

When supply is so low, your house is going to be in the spotlight. That’s why sellers are seeing their homes sell a little faster and get more offers right now. If you’ve thought about selling , now’s the time to make a move . Connect with a trusted real estate professional to get the process started.

Americans Still View Homeownership as the American Dream

Tue, 04 Jul 2023 10:30:00 GMT

Everyone’s interpretation of the American Dream is unique and personal. But, for many people, it’s tied to a sense of success, freedom, and prosperity. These are all things that owning a home can help provide.

A recent survey from Bankrate asked respondents which achievements they feel most embody the American Dream. The responses prove owning a home is still important to so many Americans today (see graph below) :

As the graph shows, homeownership ranks above other significant milestones, including retirement, having a successful career, and earning a college degree.

A recent report from MYND helps shed light on why so many people value homeownership. It finds:

“. . . nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth.”

That’s because, when you own a home, your equity (and net worth ) grows over time as you pay down your home loan and as home prices appreciate. This can be a key factor in building intergenerational wealth and long-term financial stability.

To further drive home the difference homeownership can make in your life, a report from Fannie Mae says :

“Most consumers (87%) believe owning a home is important to ‘live the good life.’ . . . Notably, significantly more see ‘having less stress’ as a benefit achieved by owning than renting.”

Especially today, this could be because, when you own a home with a fixed-rate mortgage, you stabilize what’s likely your largest monthly expense (your housing cost), and that helps combat the impact of rising costs from inflation .

What Does This Mean for You?

While it may feel challenging to buy a home today with higher mortgage rates and home prices , if the time is right for you, know that when you buy a home, incredible benefits are waiting for you at the end of your journey.

Bottom Line

Buying a home is a significant and powerful choice, embodying the foundation of the American Dream. If you plan to make your homeownership dream a reality this year, take the first step by reaching out to a local real estate expert and start the process today.

Evaluating Your Wants and Needs as a Homebuyer Matters More Today

Mon, 03 Jul 2023 10:30:00 GMT

When it comes to buying a home , especially with today’s affordability challenges, you’ll want to be strategic. Mortgage rates impact how much it costs to borrow money for your home loan. And, to help offset the higher borrowing costs today, some homebuyers are taking a close look at their wish list and re-evaluating what features they really need in their next home to avoid overextending. As a recent NerdWallet article says :

“A pool, for example, may be nice to have, but it may not provide as much day-to-day value as a garage or a space for a home office . . .”

While that pool may be appealing, think twice on whether or not it’s really something you must have to be happy in your next home. Is getting that pool the main reason you’re moving? Probably not. It’s more likely a need for more space, a home office, or proximity to loved ones, friends, or work that’s motivating you to make a change.

So, if you’re looking to buy a home , take some time to consider what’s truly essential for you in your next house. Make a list of all the features you’ll want to see, and from there, work to break those features into categories. Here’s a great way to organize your list:

Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).

Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).

Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).

Once you’ve categorized it in a way that works for you, discuss your top priorities with your real estate agent . Remember to think carefully about what’s a non-negotiable for your lifestyle and what’s a nice-to-have that’s more of an added bonus. Be sure to discuss where each feature falls with your agent. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.

Bottom Line

Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial planning step on your homebuying journey today. If you’re ready to find a home that fits your needs, connect with a local real estate advisor.

Key Reasons To Use a Real Estate Agent When You Sell [INFOGRAPHIC]

Fri, 30 Jun 2023 10:30:00 GMT

Some Highlights

An agent is a really important part of selling your home because they bring a lot of skill and expertise to the sales process.

They’ll explain what’s happening today, what that means for you, and how to price and market your house. They’re also skilled negotiators and well versed in the contracts and disclosures involved.

Connect with a local real estate agent to ensure you have an expert helping you sell your house successfully.

Moving Now Can Give Your House Its Day in the Sun [INFOGRAPHIC]

Fri, 26 May 2023 10:30:00 GMT

Some Highlights

If you want to sell your house , consider doing it this summer. The days are longer, the weather is warmer, and it’s a great time for sellers.

If your needs have changed , now’s the time to capitalize on the low inventory and multiple offers in today’s sellers’ market .

Connect with a local real estate agent today if you’re ready to sell your house and move to a home that meets your changing needs .

The Benefits of Selling Now, According to Experts

Thu, 25 May 2023 10:30:00 GMT

If you’re trying to decide if now’s the time to sell your house , here’s what you should know. The limited number of homes available right now gives you a big advantage . That’s because there are more buyers out there than there are homes for sale. And, with so few homes on the market, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house.

Here’s what industry experts are saying about why selling now has its benefits:

Lawrence Yun , Chief Economist at the National Association of Realtors (NAR):

“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”

Selma Hepp , Chief Economist at CoreLogic :

“We have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”

Clare Trapasso , Executive News Editor at Realtor.com :

“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”

Jeff Tucker , Senior Economist at Zillow :

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

Bottom Line

If you’re thinking about selling your house, connect with a real estate advisor who can share the expert insights you need to make the best possible move today.

Owning a Home Helps Protect Against Inflation

Wed, 24 May 2023 10:30:00 GMT

You’re probably feeling the impact of high inflation every day as prices have gone up on groceries, gas, and more. If you’re a renter, you’re likely experiencing it a lot as your rent continues to rise . Between all of those elevated costs and uncertainty about a potential recession , you may be wondering if it still makes sense to buy a home today. The short answer is – it does. Here’s why.

Homeownership actually shields you from the rising costs inflation brings.

Freddie Mac explains how:

“Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.”

Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). And, when the cost of most everything else is rising, keeping your housing payment stable is especially important.

The alternative to homeownership is renting – and rents tend to move alongside inflation . That means as inflation goes up, your monthly rent payments tend to go up, too ( see graph below ):

A fixed-rate mortgage allows you to protect yourself from future rent hikes. With inflation still high, when your rental agreement comes up for renewal, your property manager may decide to increase your payments to offset the impact of inflation. Maybe that’s why, according to a recent survey, 73% of property managers plan to raise rents over the next two years .

Having your largest monthly expense remain stable in a time of economic uncertainty is a major perk of homeownership. If you continue to rent, you don’t have that same benefit and aren’t as protected from rising costs.

Bottom Line

A stable housing payment is especially important in times of high inflation. Connect with a real estate agent so you can learn more and start your journey to homeownership today.

Why Buyers Need an Expert Agent by Their Side

Mon, 22 May 2023 10:30:00 GMT

The process of buying a home can feel a bit intimidating, even under normal circumstances.

But today’s market is still anything but normal. There continues to be a very limited number of homes for sale , and that’s creating bidding wars and driving home prices back up as buyers compete over the available homes.

Navigating all of this can be daunting if you’re trying to do it alone. That’s why having a skilled expert to guide you through the homebuying process is essential, especially today. Bankrate shares this perspective:

“Advice and guidance from a professional real estate agent can be invaluable, particularly amid a hot or unpredictable housing market.”

Here are just a few of the ways a real estate expert makes a big difference:

Experience – Real estate professionals know the ins and outs of what’s happening today, how it impacts buyers, and how to navigate any hurdles that may pop up.
Education – Knowledge is power when it comes to buying a home. Your advisor will simply and effectively explain market conditions and translate what they mean for you so you can feel confident in your decision.
Negotiations – Your real estate advisor advocates for your best interests. Having an expert on your side provides assistance with the purchase agreement. An agent can also help you negotiate potential seller concessions if the inspection reveals issues with the home.
Contracts – Real estate advisors guide you through the disclosures and contracts necessary in today’s heavily regulated environment.
Pricing – Making an offer and negotiating with a seller can be one of the most difficult and stressful parts of the homebuying process. A skilled agent will help you understand what similar homes are selling for so you have the full picture of what you may want to offer.

All of these reasons combined may be why 86% of recent buyers used an agent according to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR). NAR also has this to say about why an agent is so essential today:

“A great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget. Agents are also a great source when you have questions about local amenities, utilities, zoning rules, contractors, and more.”

What’s the Key To Choosing the Right Expert?

It starts with trust. You’ll want to know you can trust the advice they’re giving you, so you need to make sure you’re connected with a true professional. No one can provide perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in today’s market. But a true professional can give you the best possible advice based on the information and situation at hand.

They’ll help advocate for you throughout the process and coach you on the essential knowledge you need to make confident decisions. That’s exactly what you want and deserve.

Bottom Line

It’s critical to have an expert on your side who is skilled in navigating today’s housing market. If you’re planning to buy a home this year, connect with a real estate advisor who will give you the best advice and guide you along the way.

Organize Your Home In A Month In Less Than A Hour A Day

Fri, 19 May 2023 17:00:00 GMT

Organize Your Home in a Month in Less Than an Hour a Day

By: Jamie Wiebe

A super-easy plan for getting organized without adding to your home-is-school, home-is-work, home-is-everything time burden.

Did you ever notice that your self-improvement pacts with yourself are action oriented? Walk 10,000 steps a day. Fix that leaky faucet.

But “get organized”? It’s a goal so broad that just trying to figure out what action to take makes you wonder what you were thinking in the first place. It’s like you need an organizing plan for your organizing.

Ta-da!

Here it is. Follow these steps, spending less than an hour day (sometimes just a few minutes), to a better organized home:

1. Do That Project

“What about your space is making you feel uncomfortable or overwhelmed?” asks Amy Trager, a professional organizer in Chicago. Is it the paperwork disaster in your office? The pile of clothes teetering on your dresser? Or that mess that surrounds your doorway? Start with what’s annoying you, she says. One hour on that task will rev up your organizing engine.

2. Create a Go-Away Box

Put in it anything you’re planning to donate (or give to a friend or take to recycle). And keep it by the door so you can easily grab it when you’re leaving.

3. Deal With the Decorations

Hallelujah — the holidays are over! When you’re putting away your décor, donate anything you didn’t bring out last season and separate decorations by holiday. No need to dig through your St. Paddy’s clovers when you’re searching for a menorah.

4. Create a System for Your Entryway

Set up a “command center” so your front door doesn’t become a lawless accessories arena, especially during winter months. Add hooks for coats, bins for shoes, and a mail sorter if you need it. (Remember to keep a place for your go-away box.)

5. Wrangle Your Pet Supplies

Minimize the time spent scrambling when your pup is desperate for a walk or eager for a meal. Hang hooks and cubbies near the door and keep leashes, kibble, bowls, and toys in one convenient spot.

6. Organize Your Spices

Arrange your herbs and spices alphabetically, by cuisine, or by brand — whatever makes them easier to find when you’re in the middle of your noodle stir fry.

7. Pare Down Your Utensils

You’ve accumulated several dozen kitchen utensils in your culinary career: can openers, microplanes, four wine openers (what?!). Cut back the collection and use drawer dividers to keep the rest in order.

8. Reconfigure Your Pots and Pans

Stop digging around in your shelves for the oversized, cast-iron skillet. Donate the pots and pans you hardly use and install cupboard organizers to help manage the rest.

9. Throw Away Expired Foods

You’ve never used Worcestershire sauce after that one time. Go through your refrigerator and pantry, and ditch or donate anything past its prime or that you won’t use.

10. Stack Your Pantry Staples

Make better use of your pantry by sorting through your staple dry goods — think flour, sugar, pasta, oatmeal, dry beans — and put them in airtight, stackable containers. You’ll free up a ton of space, too.

11. Downsize Your Kitchen Gadgets

You had noble intentions when you purchased that spiralizer. (Zucchini noodles every night, right?) Give those space hogs to someone else with lofty dreams.

12. Say No to Coffee Mug Overload

Every time you lose a sock, a new coffee mug appears. Keep one or two mugs for every coffee or tea drinker, and donate the rest.

13. Sort Your Food Storage Containers

No singles allowed. Toss any tops or bottoms that have no mates.

14. Reassess Your Display Shelves

Shelves crammed with knickknacks, books you’ll never read, and stuff you somehow accumulated are just a waste of space. Donate books to the library, discard the junk, and arrange what’s left in a way that pleases you.

15. Deal With Your Cables

With a Roku, PlayStation, DVD player, and cable box, it’s no surprise your entertainment center is a mess. Use bread tags or cable ties to create ID tags for each plug and bundle the clutter with Velcro strips.

16. Put Clothes on New Hangers

Switch your clothes over to the slimmer, grabbier hangers. They use less space and keep your clothes from sliding down to your closet floor. As you do this, discard the clothes you never wear.

17. Corral Your Accessories

Belts, scarves, purses, hats — all the accessories that don’t have a drawer or spot in the closet can end up everywhere. Buy an accessories hanger or install a simple series of hooks to give your wardrobe’s smallest members a home.

18. Purge Under the Bed

Under-bed storage is ideal for out-of-season clothing. But when out-of-season becomes out-of-sight and out-of-mind, clear out those clothes you’ll never wear again from this precious storage space.

19. Declutter Your Desk

When your workspace is swimming with collectibles, staplers, Post-its, and more, paring down can keep you focused when it’s time to hunker down.

20. Shred Old Paperwork

Not every form, statement, and tax record needs to stay in your filing cabinet forever. Check out this list to make sure you’re not wasting space. Shred the rest to ward off identity thieves.

21. Tidy Your Files

Now that you’ve shredded unnecessary paperwork, tidy up your files by organizing them and labeling them clearly. Colorful folders can help organize by theme (home stuff, tax stuff, work stuff, etc.).

22. Get Rid of Mystery Electronics

Admit it. You’ve got a drawer where black mystery cords, chargers, and oddball electronic bits go to die. Free up that drawer for better uses or at least get rid of the items you know for sure are “dead.”

23. Pare Down Your Personal Care Stuff

Your intentions were honorable when you bought that curl-enhancing shampoo — but it expired two years ago, and you haven’t used it since. Throw away any expired potions, salves, hair products, and medicines.

24. Tackle Under-the-Sink Storage

Clean everything out. You’ll be amazed at what you find (like those Magic Erasers you could never find). Then put everything you’re keeping back into bins you can easily pull out so that nothing gets lost again.

25. Hang a Shelf

Wall storage is so often overlooked. Find a spot in your home where a shelf would solve a problem and hang it. Maybe it’s for some toiletries in the bathroom, laundry supplies, or your kid’s stuffed toys.

26. Reduce Your Towels and Linens

There are the towels you use — and the stack of towels you never use. Donate them to the animal shelter. Those torn pillowcases? Convert to rags or toss. Same for napkins, dishtowels, potholders, etc.

27. Hang a Shoe Organizer

Hanging shoe organizers can solve a ton of storage problems beyond the obvious. They can store scarves, mittens, cleaning supplies, craft supplies. You can even cut them to custom-fit inside a cabinet door.

28. Organize Your Junk Drawer for Good

There’s no shame in a junk drawer, but why not organize it? Dump the whole thing on one surface and sort everything into piles. Use drawer dividers to keep each pile in its own space.

29. Store Your Tools the Right Way

Finding the right Phillips-head screwdriver to put together that cute IKEA bookshelf shouldn’t be so hard. Track down your hammers and screwdrivers, and arrange them in one easy-to-access spot, like a pegboard.

30. Plan for the Future

See how much you’ve accomplished! Take a look around your newly organized home, noting any spaces you missed. Then dream a bit about your next home project. Maybe paint that dining room, finally?

How To Prepare To Buy A House

Mon, 01 May 2023 18:32:31 GMT

Preparing finances for home ownership begins the day someone decides they actually want to buy a home. After all, saving for a down payment doesn’t just happen overnight! So, how do you best prepare your finances in advance to handle the most expensive purchase of your lifetime?

The following are five steps to take for home buying success, and they can be completed months or years before a first home purchase. To help you prepare your finances for home ownership, use this worksheet to track progress and keep all your to do’s straight.

How to Prepare to Buy a House: First Steps

Prepare Your Credit

It’s a given that good credit is needed to qualify for a mortgage, but preparing your credit also includes an important component of financially preparing for home ownership — debt payoff.

Paying off debt, especially student loans and high-interest credit cards, not only frees up money in the budget for down payment savings, but it also raises your credit score by lowering your overall debt. Debt payoff is also important to lenders when they determine your debt-to-income ratio (total monthly debt payments divided by gross monthly income), the primary number lenders use to determine how much home you’ll qualify for.

Lenders can qualify an individual with up to 43% debt-to-income ratio, though lenders are more likely to make a loan if it’s lower. (Aim for 36% or less.) The DTI number is important for first-time buyers to know, as many are struggling with five-figure student loan burdens, which can severely impact their DTI ratio.

The best way to tackle debt is to use the debt snowball method. List all of your debts (credit cards and student loans for now) in order of highest interest rate and throw all extra money at that amount. When this amount is gone, move on to the next debt. Use the accompanying worksheet to list your debt and track your pay-off status.

Save for a Down Payment

If you opt for a conventional mortgage and want to avoid private mortgage insurance, which protects the lender in case you default, you’d typically put down 20% of the purchase price. It could take years to save the proper funds for a home down payment. That’s why many buyers choose to put down less than 20%, apply for first-time home-buyer programs, or pursue an FHA loan, with a possible down payment as low as 3.5% of the purchase price depending on their credit.

You’ll need money in the bank, no matter which type of loan you think you’ll go with, so it’s important to begin saving as early as possible.

Paying off debt will make saving easier over time because you’ll have more money to allocate to your down payment fund.

You might also consider:

An expense audit, where you cut subscription services and negotiate with your utility providers to lower your costs. Then you automatically put the money saved into your down payment savings account. You’ll never miss it.

Halting retirement savings for a period so that you can contribute more to your down payment funds. Do this only if you feel comfortable with it for the short term.

Funneling any “found” money, such as work bonuses or holiday cash, into your down payment fund. The temptation to spend is real, but once you’re in your new home, you’ll be glad you sacrificed.

Getting a side hustle. Putting away even $100 each month can make saving for a home much faster (and easier).

Prepare Your Budget

Have you thought about what your budget will look like post-closing? The expense audit (see above) will help make some room. But to see if you can truly afford a home, try building out a sample budget of what your monthly expenses will look like after you buy a home.

Mortgage calculators can help you get a rough estimate of your monthly mortgage payment. I recommend adding two to three times utility rates if you’re upsizing from an apartment into a home.

How to Prepare to Buy a House: Financing

Shop for a Mortgage

Rate shopping for a mortgage is an important step, so don’t go with the first rate you’re offered (unless it ends up being the most competitive, of course). Shopping for the most competitive terms is one of the few ways to actually save money on a home. The lower the interest rate, the less money you’ll pay over the life of the loan.

Rate shopping is now super quick and doesn’t impact your credit score, so the time you spend rate shopping will pay off for your future self — maybe to the tune of tens of thousands of dollars.

Consider Closing Costs

Don’t get blindsided by closing costs. You’ll need to save for these, too. Typically, you can multiply the purchase price of the home by 3% to 5% to get a rough estimate of how much you’ll need to bring to closing. Even if the seller offers to pay some (or all) of the closing costs as part of the sale, having this money in the bank — just in case — will assure the lender you’re ready to take on the responsibility of a mortgage.

What to Repair Before You List

Fri, 31 Mar 2023 05:41:13 GMT

Let's Start Here...

When you’re getting ready to list your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its strengths and fix up some of its possible weaknesses can make a big difference in how fast it sells. Here are our top four recommended repairs to make before selling your home.

Repaint walls.

Giving your home a fresh coat of paint is one of the most cost-effective ways to spruce it up, and generally, it can be a do-it-yourself project. Make sure to cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat.

Repair floors.

Hardwood floors are a very desirable feature in a home, so you want to ensure they look their best by fixing scratches or dull areas. If your carpet is worn or stained, consider replacing them. And don’t forget the tile in your kitchen or bathrooms. Re-grouting can go a long way in making dingy tile work look brand new!

Refresh the landscaping.

Show buyers your home is the full package by dressing up the outside as well as the inside. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix your fixtures.

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment!

How to Prevent (Home) Buyer’s Remorse

duda@secondgen.com — Tue, 31 May 2022 19:51:39 GMT

By: Lynn Ettinger

You can make a successful offer on a home even in a competitive market — with the right information and help.

When you’re house hunting, the pressure of competition can move you from “Hmm, I like that, but it’s too pricey,” to “I have to have that!” You think, so what if paying for this house will put me way over budget? I can cut back somewhere else, right? But that kind of thinking can get you into trouble. Trouble that’s totally avoidable.

Whether you’re in the middle of a home bidding war or facing down a list of must-haves, don’t lose sight of your budget and the risks. That way, you can own a house without home buyer’s remorse. And you’ll have money left to enjoy things like new furniture, entertainment, and just plain having fun.

Who Has Home Buyer’s Remorse and Why?

A competitive real estate market can set buyers up to purchase a home that’s either beyond their budgets —sometimes hugely beyond — or doesn’t meet their needs, according to a 2021 survey by Bankrate and YouGov. The survey found that recent home buyers, including 64% of millennials, had regrets about their home purchase. The top reason? They were unprepared for maintenance and other home ownership-related costs. On top of that, 13% percent of millennials said they think they paid a higher sales price than they should have.

“Things in homes always break down, so people should put aside a budget for anything that will need fixing,” says Lawrence Yun, chief economist at the National Association of REALTORS®. “A rule of thumb is to anticipate 1% or 2% of the home price for potential maintenance,” he explains. “So, for a $300,000 home, that means setting aside $3,000.”

One reason home buyers may be tempted to go over budget is they’ve been influenced by the beautiful homes on TV, according to an NAR report on home staging. “The shows can create unrealistic expectations for the home buying process and how homes should look,” says Brandi Snowden, NAR director of member and consumer survey research. In time, buyers can view features that used to be luxuries as necessities. They believe everyone has them and they should too. One solution: Work with a REALTOR as early as possible in the process. “Make sure your agent knows your budget, so they can help you set expectations and stick to them,” she advises.

How to Navigate House Hunting in a Competitive Market

In addition to pressure to exceed their budgets, buyers are facing hurdles like these five:

1. Requests to Waive Contingencies

Tamara Suminski, a real estate agent at Beach Real Estate Group in Manhattan Beach, Calif., is seeing not only bidding wars but also sellers wanting buyers to waive contingencies. “With an appraisal contingency, if the appraisal comes in low, the buyer has choices. They can choose to try to renegotiate with the seller, bring in the difference, or cancel. When they remove that contingency and its protection, and if the home doesn’t appraise at the right level, the seller is not very likely to renegotiate with them. And the buyer has waived their right to cancel. If they cancel anyway, they’re risking their deposit.”

Some buyers are also waiving contingencies related to home inspections. These investigations are an opportunity to have a home inspector view the home based on disclosures and for the buyer to use findings as a bargaining tool, Suminski says.

Eliminating these protections can end up costing money for buyers. And the more offers the buyer writes and loses, the more risk they will tolerate. So, they may waive contingencies and regret it later, says Suminski. Talk to a buyer’s agent who will guide you through this and explain the risks of removing protections and unknown variables, she advises.

2. Speed Showings and Decisions

Bryan Yap recently bought a home in an expensive and highly competitive market — Orange County, Calif. He found that with the pandemic, each showing lasted only 15 minutes. That was one of the biggest hurdles. “We’d see three, four, or five homes in one day. It’s hard to keep track of what you like and don’t like with each house. What I would do differently is take notes immediately after viewing a home. If you’re able to prepare beforehand, create a list of wants and requirements in priority order. Immediately after seeing each home, rank it based on the list.”

3. Focusing on the Top of Your Price Range

“If you’re looking in a micromarket where listings are achieving multiple offers and homes are going above asking price, don’t set your on the houses at the top of your price range,” Suminski says. If $300,000 is your upper limit, look at houses priced at $250,000 or $275,000. Otherwise, you’re going to be outbid from the gate every time.”

That was the process Yap used when he was looking. “I would look for homes $25,000 under my max budget. I went on Zillow and looked at homes that were sold recently and tried to calculate the average over-listing price those homes were being sold for and factor that into my offer price.”

4. The Need to Compromise

Yap’s must-haves were three bedrooms, two baths, and being closer to the city center of Anaheim. “I was able to get three beds, two baths, but I did have to compromise on location. I also had to compromise on price, which was doable because I could still afford it. To compete with all the potential buyers, I knew that we had to either offer an over-list price or remove some contingencies.”

Suminski advises adjusting your search outward geographically, even if it means a longer commute. Buyers might also have to compromise on property types and features. In addition, they should consider doing some DIY projects instead of wanting everything to be move-in ready. “They may have to be willing to look at townhouses instead of single-family homes or install carpet and paint on weekends.”

5. Information Overload

In the two years before he started searching for a home, Yap did a lot of reading. “It was a massive plan I had to come up with and stick to so that I’d be able to afford buying a home.”

Because of how hot the Orange County market is, agents scheduled showings as soon as a house was listed or showed “coming soon” status. Yap treated the home search as “almost a second job,” using lunch breaks and evenings to check emails, do online searches, and text his real estate agent about what he wanted to see. “I had to make a lot of sacrifices. People wanted to set plans with me for the weekend, but I said, ‘Sorry, I have to go view homes that day.’”

He primarily credits his real estate agents, including Sumiski, for keeping him informed. “They made all this possible. I learned a lot from them.”

Some agents, like Suminski, hold an accredited buyer’s representative designation but usually work with sellers as well as buyers. “An [agent with an] ABR has taken extensive buyer’s representation training,” Suminski says. “They’ll provide education to buyers so that they’re learning as much as they can about the market, including the risks involved with different negotiations. If buyers are going to shorten terms or remove protections, they need to be well informed about the pitfalls.”

Learn from Experiences

That access to information and guidance will help buyers making an offer on a home especially in a competitive market. “Today’s buyer has seen and written offers on many properties before they get their offer accepted,” Suminski says. “That’s common across the country. Each is a learning opportunity for buyers about what information they might need to be researching so they can move more quickly.”

When you act on advice from recent buyers and agents, you can stay well informed and get good results even in a tough market. And that’s the best way to prevent home buyer’s remorse.

It’s been a rough ride for homebuyers lately, as prices have hit the roof with little respite. All of that looks to change soon.

7 Easy DIY Home Projects That’ll Make You Say, “Yes I Can!”

duda@secondgen.com — Tue, 31 May 2022 18:51:39 GMT

By: Leanne Potts

Beautiful you-can-do-it inspirations for easy DIY projects.

As anybody who’s been inspired by HGTV can tell you, DIY home projects on TV look amaaaazing.

But DIY renovations in real life: kiiiinda the toughest thing ever. And, yet, these rookie craftsmen did beautiful, jaw-dropping work that will totally inspire you. Check out these easy DIY projects for your home:

#1 Pinterest-Worthy DIY Window Seat

An empty recess in a room is a ripe spot for a DIY project, as home improvement blogger Britt Kingery can tell you.

She and her husband, Justin, built a window seat so ridiculously Pinterest-worthy you’ll want to make one for yourself (like, right now).

It’s a roomy 10-foot beauty, so you can seat a houseful of guests without dragging chairs all over the place. And (bonus!) there’s storage underneath for stashing lots of stuff out of sight.

You can custom-create your own for about $250 if you’ve got a few essential DIY tools.

Or you can do an Ikea hack to get the same result. Just attach one of their long, horizontal storage systems to your walls. Then add cushions and preformed molding for the same custom look.

The big reveal doesn’t happen overnight, and a renovation almost always looks worse before it looks better.

Britt Kingery, home improvement blogger

#2 Miracle Makeover With Just Paint, Stain (and Patience)

“The Brady Bunch”-orange wall and abused floors in the before photo are homely enough to strike you blind.

But what a miracle paint, sanding, and stain can do! Lighter shades on the walls, trim, and floor reflect natural light, making the space so much brighter. And for very little money (about $150).

The key to such an amazing transformation, Kingery says, is to be a tortoise, not a hare.

Sanding, taping, patching holes, and waiting on stain, paint or polyurethane to dry takes care and patience if you want professional-looking results.

“The big reveal doesn’t happen overnight, and a renovation almost always looks worse before it looks better.”

#3 Instant Open Floor Plan

Cramped, dark kitchens are so very 1981.

Sarah Lemp of the “All Things With Purpose” blog turned her dated kitchen into an open, light-filled space that feels and functions like a larger room.

The cost? $300. Yep. For less than the cost of a set of countertop canisters at Williams Sonoma, Lemp worked magic.

The biggest fix? She just removed a set of overhead cabinets that blocked light and the view into the dining area, making an instant open floor plan.

Then she turned to paint, the budget remodeler’s friend. She used a soft griege (designer-speak for grayish beige) for the walls of the kitchen and dining area.

She painted the remaining upper cabinets white, and the bottom ones dark gray.

“I love the look of white cabinets, but figured a darker color was more kid-friendly,” she says.

Lemp skipped the requisite subway tile backsplash and went with peel-and-stick shiplap instead. “It was easier and cheaper,” she says.

#4 Brighter Bedroom With Paint and Wood

This may be an ugly room, but we’re not sure because it’s so dark all we can see are cheap blinds and a poofy valance that hasn’t been fashionable since the Olsen twins were toddlers.

It needed major help.

Ashley Rose and Jared Smith of the blog “Sugar and Cloth” pulled off a weekend makeover by painting the walls a lighter color and replacing the window treatments with wispy, white drapes that practically pull sunlight into the room.

A pair of wall-mounted reading lamps added a second layer of light, because a lonely overhead fixture can’t light the whole room all by itself.

And that wall behind the bed? It’s strips of reclaimed wood with an adhesive backing. Peel, stick, and you’re done. No nails. No glue. And just one tool: a level to make sure you stick the wood strips in a straight line. Awesome.

#5 An Easy-Peasy Backyard Patio

Dirt’s ugly. It’s also a pain, turning into mud when it rains, dust when it doesn’t, and sneaking into your house on the feet of dogs and kids.

Covering it with a paver patio is a great fix. Chelsea Foy of the blog “Lovely Indeed” built this one in a neglected flower bed in just 10 hours.

She used patio stones molded to look like several individual bricks, because leveling one large stone is tons easier than leveling a bunch of bricks.

Those arcs of large river rocks just off the patio make a natural-looking transition between the factory-perfect pavers and the rest of the yard. They’ll also give you less lawn to mow or flowers to tend.

#6 Fancy Wall Molding for a Bargain Price

Wall molding makes a room look so custom, so finished, so much better than boring old drywall. But it costs around $25 a square foot just for the materials.

Mysha Barton of the blog “Remington Avenue” pulled it off along her stairs for just $30 — total.

The secret? She used MDF (medium density fiberboard, aka fake wood) to keep it cheap, and didn’t mount it in the traditional way with board panels on the wall.

Instead, she put thinner “chair rail molding” directly on the wall, and painted everything white, including the wall to get that rich look of molding.

The toughest part was cutting all those angles, Barton says.

She got it done with a miter box and a handsaw. “My advice is to use scrap wood to practice your angled cuts before taking on your expensive molding pieces.”

Barton did this project in just eight hours with three small children in the house, so even if 10th-grade geometry made you cry, you can do this.

#7 A Space-Saving Workbench

A DIY workbench is a gateway project, one that can lead you to harder projects and possibly, a home improvement addiction. Make this workbench your very first project and you’ll have room to do scads of projects — money-saving ones.

It’ll fit in a small space because it’s actually a door mounted on door hinges, so you can fold it flat against the wall when you’re not using it. Be sure to buy a solid wood door, not a hollow one, so it’s sturdy enough to stand up to years of projects.

7 Easy DIY Home Projects That’ll Make You Say, “Yes I Can!

8 Simple Rules for Negotiating Your Offer and Getting That House

Thu, 31 Mar 2022 20:13:34 GMT

By: HouseLogic

You and your agent are going to use everything you’ve learned to seal the deal.

Here’s the dream: Your offer is perfect, you don’t need to negotiate, and you can spend the next few weeks addressing more pressing home-ownership questions, like “Why is it called wainscoting?” and “Do I want a new couch in blush or emerald green?”

And it could happen. Many sellers accept the best offer they receive, and for a variety of reasons.

But sellers are also known to reject offers for a variety of reasons. Or make counteroffers. This is especially likely if you bid low, or when you’re up against multiple competing offers.

If you do receive a counteroffer, it’s up to you to decide whether you want to accept the new contract, negotiate the terms, or walk away.

In cases such as these, look to your agent. He or she is your spirit guide. If you decide you want to negotiate — that is, make a counteroffer to the seller’s counteroffer — your agent will use their negotiating skills to help get you the best deal. This is what agents do every day.

But you’re not just going to sit there. If you understand what negotiating tactics your agent may deploy — they depend on the local market and your position — you can back them up. And cheer them on.

Here are eight rules every buyer should know before they — and their agent — start negotiating:

#1 Act Fast — Like, Now

When you receive a counteroffer, you should respond quickly — ideally within 24 hours. The longer you wait, the more space you leave for another buyer to swoop in and nab the property. Also? If a seller senses hesitation, they may decide to withdraw their counteroffer before you even have a chance to respond.

#2 Raise Your Price (Within Reason)

While you obviously don’t want to overpay for a house, you may have to up the ante — especially if you initially made a lowball offer. Lean on your agent’s expertise to determine how much money you should add to the sales price to make it more enticing to the seller.

Then, through their powers of persuasion, your agent can make the counteroffer look even more attractive by pointing out similarly priced “comps” — recently sold homes in your area that are comparable in terms of square footage and features.

As your agent negotiates, it can feel like things are escalating quickly. It’s stressful. You may feel a sudden urge to do whatever it takes to win.

Before you go overboard, there are two things you must keep in mind:

You can’t exceed the monetary confines of the pre-approved mortgage you received from your lender.
You shouldn’t overextend your budget.

Because your counteroffer has to be an amount you’re comfortable spending on a home. You want that new house and to keep living your life. Plus: You’re not out of options yet.

#3 Increase Your Earnest Money Deposit

Increasing your earnest money deposit (EMD) — the sum of money you put down to prove to the seller you’re serious (i.e., “earnest”) about buying the house — is another way to show the seller you have more skin in the game. A standard EMD is typically 1% to 3% of the sales price of the home. Making a counteroffer with a 3% to 4% deposit could be what you need to persuade the seller to side with you.

#4 Demonstrate Patience About Taking Possession

Depending on the seller’s timetable, changing your proposed possession date — the date you take over the property — could butter them up, too. If the seller wants to stay in the home for a few days after closing, try offering a later possession date. You could also draw up a “rent-back” agreement, meaning the seller pays you rent for staying in the home for a set period of time after the closing date.

#5 Let Go of a Few Contingencies — With Care

Want to give your counteroffer an even bigger boost?

Reduce the number of contingencies you’re asking for. It’s your way of saying, “Hey, look, I have fewer ways to back out,” which gives the seller more reassurance that the deal will close.

But be selective: Some contingencies are too important to give up. A home-inspection contingency — the right to have a home inspection and request repairs — gives you an out if you spot major problems with the home (and protects you from buying a total money pit).

You might waive a termite inspection if you’re in a state where the risk is lower.

But ultimately, waiving contingencies depends on your market, your loan program requirements, your risk tolerance, and the circumstances of the house in question. And if you waive contingencies and then you find a problem, the seller isn’t responsible for fixing it.

#6 Ask for Fewer Concessions

At a mortgage settlement, home buyers have to pay closing costs for taxes, lender’s fees, and title company fees. Closing costs vary by location, but you can expect to shell out between 3% and 4% of the home’s sales price. The seller pays an additional 1% to 3%. (Smart Asset and Nerdwallet have simple calculators you can use to get a rough idea of what your closing costs might be.)

When making an initial offer, you have the option to ask the seller for concessions — a settlement paid in cash to help you offset your share of the closing costs. (This move is less feasible if you’re going up against multiple offers.)

Concessions effectively lower the seller’s net proceeds from the sale. Making a counteroffer that removes the concessions you would have otherwise received at settlement puts cash back in the seller’s pocket — and can improve your bid.

#7 Pick Up the Cost of the Home Warranty

Sometimes sellers offer prospective buyers a home warranty. This is a plan that covers the cost of repairing major home appliances and systems, like the air conditioner or hot water heater, if they break down within a certain period (typically a year after closing).

A basic home warranty costs about $300 to $600 a year, according to Angie’s List. If it seems like waiving the home warranty can sweeten negotiations, but you still want the peace of mind of having one, tell the seller they don’t need to cover it — then buy it yourself.

Just keep in mind, whether you or the seller buy the warranty, you’ll need to pay the service fee (typically between $50 and $100) if something does, indeed, need to be repaired while under warranty.

Also, FYI: A home warranty is entirely separate from homeowners insurance. Homeowners insurance — the security blanket that covers your home’s structure and possessions in the event of a fire, storm, flood, or other accident — is required if you take out a mortgage. It can cost anywhere from $300 to $1,000 per year.

#8 Know When to Walk

When negotiating with a seller, trust your gut — and your agent. If he or she says a deal is bad for you: Listen.

And if you don’t want to make any more trade-offs — and the seller won’t budge — it’s smart to walk. That can be a tough decision to make, and rightfully so! Negotiating is tough. It’s draining.

And losing something you’ve worked hard to get can be disappointing. But don’t worry. There’s a better deal for you out there. And after those strong feelings of frustration pass, you’ll realize: Now I know how to do this.

Choosing the proper agent will ensure you make the best decisions in your new home purchase.

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7 Easy DIY Home Projects That’ll Make You Say, “Yes I Can!”

#1 Pinterest-Worthy DIY Window Seat

#2 Miracle Makeover With Just Paint, Stain (and Patience)

#3 Instant Open Floor Plan

#4 Brighter Bedroom With Paint and Wood

#5 An Easy-Peasy Backyard Patio

#6 Fancy Wall Molding for a Bargain Price

#7 A Space-Saving Workbench

7 Easy DIY Home Projects That’ll Make You Say, “Yes I Can!

8 Simple Rules for Negotiating Your Offer and Getting That House