Like all things in life, setting up your new home is more manageable if you break it down into steps and prioritize what needs to get done right away, and what can (or even should) wait.
Do: Start with a deep clean.
Before unpacking, before painting, before anything really, the first thing you should do is clean your home. After all, putting clean clothes in a dirty closet doesn’t make any sense.Do: Unpack everything (but not everywhere or all at once).
To tame the chaos as you unpack, put boxes in the room where they belong, then go through five to 10 boxes a day. Once you open a box, empty it completely.Do: Declutter (again).
Even if you thought you were ruthless with your decluttering at your old place, you may find you still have too much stuff. Honor the boundaries of the space you have, not the space you want. For example: How many pairs of shoes will actually fit in the entry closet? That’s the number that should be there. Everything else should be donated or put in the trash.Do: Reimagine the “junk drawer.”
Be intentional about the space that holds all those essential things one inevitably needs in life: scissors, tape, highlighters, Sharpies. Designate a “general store” spot in your home—this might be a drawer, a closet shelf, or something else—so that you (and everyone else you live with) knows where to find them when needed.Do: Draft a design budget and a timeline.
Now that you’ve got your space neat and tidy, you’re ready to think about decorating your new space. Even if your home is a 10, chances are you’ll want to invest some time and money into making it even more perfect. Maybe there’s a room you want to paint or a sofa that is made for your new den. Whatever the case, establish some financial guardrails and a timeline.Don’t: Install window treatments.
You may think of window treatments as one of the first decorating tasks to tick off your to-do list, but it is actually recommended to avoid rushing for a number of reasons. A big one is the cost. It’s an expensive investment, so it’s a good idea to make sure it’s a valuable investment.You’ll also get a better sense of what you need from your window treatments after living in your home for a while. Living in the house and seeing how the light is coming in during the day; see if there is an issue with privacy. Is there a nice view that you want to be able to see? You might find out that you have a heat problem or there’s a bedroom you want a little darker.
For a temporary solution while you’re figuring out what you need, we recommend using paper blinds.
Don’t: Buy new appliances.
This is especially true if you think there might be a kitchen renovation of any kind in your future. If you want to remodel and hire a designer and you’ve already pre-designed the space, they’re stuck designing around your new appliance.Don’t: Make cosmetic exterior improvements.
Wait on exterior projects such as landscaping or painting until after you’ve settled in. It’s more important to make the inside feel like home than out.
There are many flavors of compromise you can strike with your lender if you are facing foreclosure. One of the toughest to execute is the short sale.
What Is a “Short Sale”?
The title “short sale” is somewhat misleading; many assume that “short” means quick, implying a transaction that has a short escrow period. Au contraire. A short sale refers to a homeowner’s sale of their home for a net sales price (after commissions, closing costs, etc.) that is less than what the homeowner owes their mortgage lender(s).
Why Is a Short Sale Desirable?
A short sale is an alternative to foreclosure. A short sale prevents you from having to go through foreclosure and eviction. A short sale does make a smudge on your credit report but is much less traumatic to your credit than a foreclosure.
What Makes a Short Sale Hard to Complete?
Because a short sale results in the lender losing (a) funds they are owed and (b) the property which secured the mortgage loan, these transactions must be done with the full participation and agreement of the homeowner’s lender(s).
Lenders are institutions, not people. They often move at a snail’s pace when evaluating a request for a short sale. Short sales are more frequent in a declining market — many lenders are simply not equipped to handle the deluge of short sale requests they receive.
Realtors who work on short sale transactions all have stories of trying for weeks to get the short sale “package” to the correct person in the loss mitigation department! Once the package is in the hands of the right person, the bank may have some reason they disagree with the deal between the buyer and seller and may insist on inserting the bank’s price increase, reduction in closing cost credits, or other major alteration of the terms of the deal.
During a short sale, the buyer, seller and even the real estate agents are somewhat subject to the whims of the bank — the deal cannot be done without the bank’s agreement.
How to Get Your Lender to Agree to a Short Sale
With all that said, short sale transactions are completed every day! Because the lender is likely to take so much time processing your short sale request — and because time is of the essence — you must ensure that your short sale request itself is as articulate, thorough, and persuasive as possible. Here are some concrete actions you can take to maximize your chances for success.
- Approach your lender as soon as you think you might need to request a short sale. If you are struggling to make your mortgage payments, list your home with a reputable real estate agent as soon as possible. If they advise you that your home is likely to sell for less than you owe on it, immediately contact your lender’s “workout” department to request a short sale package. If you can get your lender to indicate how much of your mortgage, they are willing to forgive upfront, you boost your chances of working with a buyer to create a deal that is a bargain for them, but likely to be accepted by the bank, too.
- Authorize your real estate agent — in writing — to work and to negotiate directly with the lender. But make sure to stay on top of the communications between your agent and your lender. Delegate; don’t abdicate!
- Make sure an offer is presented in its best light. Make sure your real estate agent includes a cover letter that explains the buyer’s qualifications to buy your home, how much down payment money they propose to put in— anything that might boost the lender’s confidence. If the buyer is requesting any closing cost credits, be sure to tell the lender if the buyer is a first-time homebuyer; lenders are more likely to agree to concessions for first-time buyers than for investors.
- Your lender will request a hardship letter from you. Make sure you handwrite it and present your finances in the worst light. If you lost a job, had an illness or death in the family, are a senior citizen or have any other circumstances then let the lender know! Let them know that you are considering filing bankruptcy and that this short sale would prevent you from doing that; because bankruptcy stops the foreclosure process cold, the lender would much rather approve your short sale than have you file bankruptcy. Also, explain any facts that might make it harder for the bank to resell your house — anything that makes the bank grateful that someone has made an offer.
- Make sure your short sale package is impeccably thorough. At a minimum, the lender will want to see:
- *The offer to purchase your home, including the buyer’s preapproval letter.
- *Your hardship letter.
- *A balance sheet listing your monthly income and expenses.
- *Statements from your checking, savings, and other asset accounts.
- *A net sheet from your real estate agent listing all the closing costs that must be paid for your short sale to close.
- *Supporting documentation, including two months’ worth of paycheck stubs and all your bills.
- *Your last two federal income tax returns.
Don’t make them have to come back and ask you for any of these items. Make sure the package is complete the first time your real estate agent sends it.
Now that Spring is quickly approaching, you might be considering taking the leap from renting to buying your first home! This is a very exciting step to take, but it also comes with a lot of questions. Before you decide on whether or not you want to purchase a home, take a look at these frequently asked questions by first-time buyers!
Why should I buy instead of rent?
A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year because the interest you pay will make up most of your monthly payments for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner.
How much of my income should go towards a mortgage?
When you own a home, the ideal percentage of your gross monthly income that should go toward your mortgage is 20 percent. That means if you make $1,000 per month, no more than $200 should go toward your monthly mortgage payment and related expenses, such as taxes and homeowners’ insurance.
How much money should I save before purchasing a house?
Saving for a down payment is a big part of purchasing your first home. Although it is common to put 20% down on a house, if you are a first-time homebuyer, you may qualify to put down as little as 3%. But putting down less than 20% may mean higher costs and paying for mortgage insurance (PMI), and even a small down payment can still be hefty.
For example, a 5% down payment on a $200,000 home is $10,000. The good news is once you hit your 20% down payment, you no longer have to pay the PMI. There are programs and first-time homeowner loans you can look into that will allow you to put a smaller down payment and have the same monthly payments.
You will also want to make sure that you account for any closing costs and moving expenses when you are budgeting for your next move!
While it might be tempting to put all of your savings into a down payment, don’t forget that you may want to keep some to purchase items you’ll need to help maintain your new home.
What other costs will I need to account for when buying a home?
In addition to your mortgage, you will have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate agent will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment.
Another cost to consider is if you might need to be paying Homeowners Association fees. Your real estate agent can help you determine what these costs will be and help you determine your home’s price range accordingly.
While buying your first home can seem like a stressful and complicated process, we are here to make sure that every step runs smoothly. Once you have made a decision to purchase your first home, it’s time to find a realtor.
What will the new year bring for homebuyers, homeowners, and home sellers? Lower or higher home prices? Higher or lower mortgage interest rates? Or a continuation of the overheated pandemic-inspired housing market?
There’s no question that the blistering housing market of the past three years was hard on homebuyers. By October 2022, the average mortgage interest rate for a 30-year fixed is 7.24%, more than double the 3.22% level in January 2022.
According to Fannie Mae, the combination of high inflation, monetary policy tightening, and a slowing housing market is “likely to tip the economy into a modest recession in the first quarter of 2023.”
Many economic forecasters believe housing prices will decline, but that homebuyers shouldn’t fear buying during a declining market. Morgan Stanley predicts a 7% dip in home prices for 2023 that would return housing prices to where they were in January 2022 – 32% higher than prices were in March 2020 when the pandemic began. Economists with Goldman Sachs and Moody Analytics are predicting 5% to 10% declines in home prices, based on a lack of homebuyer affordability, slowing housing sales, fewer mortgage applications and a looming recession, however mild.
BusinessInsider.com reports that the Federal Reserve’s overnight rate hikes have raised mortgage interest rates, pushing affordability to new lows, but that a recession could bring interest rates down again. That combined with softer homebuying demand due to inflation and sellers lowering their prices would make spring and summer 2023 great times to buy a home.
With higher mortgage rates and moderating buyer demand, conditions in the housing market are different today. And if you’re thinking of selling your house, it’s important to understand how the market has changed and what that means for you. The best way to make sure you’re in the know is to work with a trusted housing market expert.
Here are five reasons working with a professional can ensure you’ll get the most out of your sale.
1. A Real Estate Advisor Is an Expert on Market Trends
Leslie Rouda Smith, 2022 President of the National Association of Realtors (NAR), explains:
“During challenging and changing market conditions, one thing that’s calming and constant is the assurance that comes from a Realtor® being in your corner through every step of the home transaction. Consumers can rely on Realtors®’ unmatched work ethic, trusted guidance and objectivity to help manage the complexities associated with the home buying and selling process.”
An expert real estate advisor has the latest information about national trends and your local area too. More importantly, they’ll know what all of this means for you, so they’ll be able to help you make a decision based on trustworthy, data-bound information.
2. A Local Professional Knows How To Set the Right Price for Your House
Home price appreciation has moderated this year. If you sell your house on your own, you may be more likely to overshoot your asking price because you’re not as aware of where prices are today. If you do, you run the risk of deterring buyers or seeing your house sit on the market for longer.
Real estate professionals provide an unbiased eye when they help you determine a price for your house. They’ll use a variety of factors, like the condition of your home and any upgrades you’ve made and compare your house to recently sold homes in your area to find the best price for today’s market. These steps are key to making sure it’s set to move as quickly as possible.
3. A Real Estate Advisor Helps Maximize Your Pool of Buyers
Since buyer demand has cooled this year, you’ll want to do what you can to help bring in more buyers. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house gets in front of people looking to make a purchase. Investopedia explains why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.”
Without access to the tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.
4. A Real Estate Expert Will Read – and Understand – the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. NAR explains it like this:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents… Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what all the fine print means and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
5. A Trusted Advisor Is a Skilled Negotiator
In today’s market, buyers are also regaining some negotiation power as bidding wars ease. If you sell without a professional, you’ll also be responsible for any back-and-forth. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all the above parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
Don’t go at it alone. If you’re planning to sell your house this winter, let’s connect so you have an expert by your side to guide you in today’s market.
Did you know that April is National Lawn and Garden Month? Well now that you do, it’s time to celebrate! Many people use this as a month to focus on their own garden or lawn and others use it as an opportunity to beautify their community. However, you want to celebrate, we got you covered!
Organize a Neighborhood Clean Up
Gardening extends beyond your backyard. It’s important to take proper care of your neighborhood and community too! Rally up all your neighbors and friends and get to work. You can walk the streets and collect trash, plant flowers in heavily populated areas, connect with local charities and create a community garden. The opportunities are endless, but the more projects you complete together the better your community will look.
Start a New Gardening Project
Now is the perfect time to start a new project in your garden! Get lost on Pinterest till you find a project that stands out to you. If you aren’t much of a DIY pro, you can start with something as easy as scrubbing down your lawn furniture. More advanced projects can include building your own flower beds, trimming overgrown shrubs and even planting your own vegetable garden.
Take Time to Enjoy your Garden
Now that the weather has changed for the better, it’s important to take advantage of that beautiful garden in your backyard. Have some friends over for a picnic and put those homegrown veggies to use. Gardens are also a great place to relax and catch some vitamin D.
Start an Indoor Herb Garden
Don’t have a yard, but still want in on the action? Indoor herb gardens not only provide fresh herbs at your fingertips, but also fill your home with fragrance and greenery. Most herbs can be grown indoors like basil, chives, mint, oregano and parsley. Growing your own herbs makes cooking at home easy and healthy. Be sure to do some research on the best type of herb garden for your space.
Enjoy a Local Farmer’s Market
Farmer’s markets are a great way to eat organic fruits and veggies without the hassle of going to a grocery store. By shopping at your local farmers market, you will eat fresh, nutrient-rich foods for an affordable price. Farmers markets are a great way to bring communities together and support local small businesses and farms. Check out your local market today to see what you’ve been missing.
Start Composting
One person’s trash is another person’s treasure. Fruit and vegetable peels, coffee grounds, and yard waste such as grass clippings can be used in a compost pile. Compost improves soil structure and provides nutrients for plants, all from waste you typically throw out.
The possibilities are endless when it comes to celebrating National Lawn and Garden Month. Regardless of if you choose a small task or a big task, you are making a positive impact on the environment and your community.
Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.
Today, 93% of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of reasons you may still need or want to move.
RealTrends explains:
“Sellers who don’t have to move won’t be moving. The most common sellers will be: Homeowners downsizing . . . people moving to get more space, [households] looking for better schools…etc.”
So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) breaks down why homeowners have decided to sell over the past year:
- 21% Want to move closer to loved ones
- 11% Moving due to retirement
- 11% Neighborhood has become less desirable
- 10% Home is too small
- 9% Change in structure of household
The most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure.
If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell.
What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer advice and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.
Bottom Line
When deciding whether or not to move, you have a lot to consider. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.
It’s an exciting time for gardeners. We’ve reached mid-spring and now is the time to start making our summer-garden plans. While it’s always important to touch up your garden this time of year, why not go a little bigger this time and give your landscape a complete renovation with these hot summer trends?
1. Go Bold
Plant dahlias such as the Coral Gypsy, Tempest, and Beach Bum varieties to bring bright color to your yard. Planting summer-cypress adds serious pops of color, and by adding some of your standard favorites, you can perfectly complement the bright reds. For year-round boldness, plant some hardy succulents or evergreens in large, brightly colored planters that make a statement.
Wildflower and perennial meadows also create a casual style of planting. Gardens are getting more natural and less manicured, so you should think about how you can keep your arrangements loose and less structured, which will make your garden standout. Think like the Japanese, who are known to embrace garden imperfections, asymmetry, and incompleteness.
2. Try Textures
Silvery dusty miller and ruffled ferns are in style this season. Bounce colors off one another with orange lilies and purple verbena. Contrast shapes by planting things like yucca and lantana. Don’t forget those hanging baskets, either. Start your hanging basket with a tall statement piece, surround it with something that fills the gaps well, and finish with some color to spill over the edges.
3. Get Cooking
Spending more and more time outside, including time to make a nice meal, is nothing new. Outdoor kitchens are rising in popularity, especially for homeowners who entertain a lot. When designing your outdoor cooking space, try to take your design choices in a different direction than your indoor kitchen to keep the space feeling unique. Contrasting the indoors with the outdoors is what will make your space feel truly refreshing.
4. Get Out
A place to relax within your garden can feel like a vacation, especially for those who don’t have the time for an official trip. Creating a lovely area to relax, read, or meditate is gaining in popularity as people become more aware of the need to decompress. Find a secluded space in your garden and set up some of your favorite chairs and a table. Or if you want to go big, build a little open-air art studio situated around or within your favorite plantings. A garden is a great place to refresh after a long day.
5. Give Back
You can get much more enjoyment out of something when you share it. Give to your neighbors and give back to the planet. Look into how you can make your garden a Certified Wildlife Habitat to benefit wildlife. Donate some of your fresh produce to your local food bank or share with your neighbors to really build a feeling of homeliness. Find natural solutions for weeds, slugs, and snails. Include plants that attract pollinators. Enhance your soil with organic compost by creating your own composter. It’s simple and keeps a lot of waste out of the garbage piles and puts it to work in your garden. You can also buy packaged or bulk compost at most home and garden stores.