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Category: Useful articles

  • The Power of Pre-Approval

    If you’re buying a home this spring, today’s housing market can feel like a challenge. With so few homes on the market right now, plus higher mortgage rates, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.

    To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow.

    A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.

    Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow so you have a stronger grasp of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

    Pre-Approval Helps Show You’re a Serious Buyer
    That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the number of offers again this spring, making a strong offer when you find the perfect house is key.

    As a recent article from the Wall Street Journal (WSJ) says:
    “If you plan to use a mortgage for your home purchase, pre-approval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”

    Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.

  • Home Ownership

    Owning a home means having a place that’s solely your own and provides the space, features, and location you and your loved ones need. But what happens when your needs change? If this hits home for you, it may be time to make a move.

    According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), the average person has lived in their current house for ten years. If you’ve been in your home for a while, think about how much in your life has changed since you moved in. Even if you thought it would be your forever home when you bought it, it doesn’t have to be. Work with a local real estate agent to explore all your options in today’s market before settling for your current home.

    That’s actually what a lot of homeowners are doing right now. A recent survey from Realtor.com finds that, of people who are considering selling in 2023, one in three are thinking about moving because their home no longer meets their needs. And according to the same report from NAR, that’s consistent with this year’s top reasons for selling, which include:

    • Want to move closer to friends or family
    • Moving due to retirement
    • Home is too small or too large
    • Change in family situation
    • Job relocation

    If things in your life have changed, it may be time to make a move. And there’s good news: it’s still a great time to sell. Here’s why.

    We’re in a strong sellers’ market. That means homes listed at market value and in good condition are getting attention from buyers and selling quickly. Lean on your expert real estate advisor for the best advice on getting your house ready to sell.

    Your equity can power your next move. There’s a good chance you have a significant amount of equity right now thanks to record levels of price appreciation in recent years. When you sell, you can use that equity to help afford your next home. In fact, NAR’s report from above shows 38% of recent buyers used the money from the sale of their previous home to cover the down payment on their next one. Work with a local real estate agent to learn how much equity you have and what you can do with it in today’s housing market.

    If your home no longer meets your needs, consider selling it so you can find your dream home. Let’s connect so you can learn about your options.

  • Home Inspections for Sellers: What You Need to Know

    What is a home inspection?
    A home inspection is an examination of the condition and safety of a piece of real estate, often conducted when the home is being sold. A qualified home inspector will assess the heating and cooling system, water and sewage systems, other plumbing, and electrical work, and look for any potential fire or safety hazards.

    Inspections and Repairs are Popular Again
    During the housing market frenzy of the pandemic, many buyers waived inspections to be more competitive with their offer. However, a recent Realtor.com survey found that inspections and repairs are becoming popular again:

    • 95% of buyers are requesting home inspections.
    • 95% of sellers are making some updates or repairs prior to listing.
    • 67% of buyers are asking for repairs as a result of the home inspection.
    • $14,163 is the average amount sellers spend on updates/repairs prior to listing.

    The inspection of a major part of the home selling process. Let’s connect so you have an expert on your side who can help you determine the repairs and updates your house needs before you sell.

  • 5 Reasons Millennials Are Buying Homes

    In the United States, there are over 72 million millennials. If you’re part of that generation and have thought about buying a home, you aren’t alone. According to Zonda, 98% of millennials want to become a homeowner at some point if they aren’t already. But why? There are plenty of reasons you may choose to become a homeowner. Here’s why other millennials have made that decision (see graph below):

     This graph shows why millennials are buying homes according to Zonda’s 6th annual millennial survey. The top reasons include building equity, a change in life stage, wanting stability, rising home values, and wanting to make somewhere truly their own. Here’s a look at each in more detail.

    Building equity – Homeownership is a long-term investment that allows you to build wealth, increase your net worth, and become more financially stable. Beyond that, the alternative to owning a home is typically renting. With the way rents have risen so dramatically over time, it may make sense to build your own equity instead of the equity of the person you’re renting from.

    A change in life stage – As a millennial, you’re reaching your prime homebuying years. That means you may be at the point where you need more space or a different location.

    Stability or settling down – This could mean establishing your career or just generally deciding more concretely what you want your life to look and feel like. As that idea becomes clearer, you may want to establish that lifestyle in a particular place and put down roots.

    Rising home values – By purchasing a home, you own an asset that traditionally increases in value over time. That can mean your home will have a higher resale value if you decide to move again.

    Wanting to make somewhere “mine” – Owning a home gives a sense of freedom because you can customize it however you want, make updates as you see fit, and be yourself in a place that’s solely your own.

    There are plenty of great reasons why millennials are buying homes today. If you’ve thought about becoming a homeowner and any of these reasons resonate with you too, let’s connect to explore your options.

  • 10 Ways to Make Sure You Get Your Security Deposit Back

    Nothing eases the pains of moving like a fully refunded security deposit. Make sure you get your cash back with these expert tips.

    Getting your security deposit back after you move may feel like an impossible feat, but it isn’t. Remember that your security deposit is essentially your money, so not all hope is lost when it’s time to move out. It’s the landlord’s obligation to return the deposit at the end of the lease.

    Here’s some expert advice for making sure your security deposit money goes back into your wallet — where it belongs.

    Start Planning When You Move In
    Take precautions when you move in to save time (and money) when you move out. To avoid getting charged for damage, use removable poster putty or removable hooks to hang things, and use felt pads to protect wood floors from scratches.

    Stay Organized
    You know all of those rental-related documents you received when you moved in? Make sure they get read thoroughly and keep all of them in one place. Research the proper procedures for ending your rental agreement and comply with them.

    Document Everything
    Unfortunately, “fair wear and tear” is subjective. Some landlords stretch this phrase to the limit. Photograph everything in the rental property to serve as proof of the property’s condition.

    While photo documentation is great, sometimes it’s not enough. Take a video walkthrough of the unit when you first move in and again when you move out.

    If the property manager tries to keep your deposit, your video will serve as proof that you kept the rental in quality condition. It makes it very hard for them to argue with you. It can help save a few hundred dollars, and it only takes a few minutes.

    Further, keep a record of each time you contacted your property manager to report maintenance issues. And whenever reporting maintenance requests, do so via email or through a reporting system that sends you a confirmation. This serves as proof for your record keeping.

    Contact Your Landlord
    Confirm how far in advance you need to alert your landlord about your move-out date. While your rental agreement may already note this, a quick conversation serves as both a helpful confirmation and a courtesy to your landlord.

    Clean Thoroughly
    In addition to the standard vacuuming and dusting, plan to do a serious deep clean if you want all of your deposit money back. This means behind and beneath appliances, plus details like light switches, door frames and more.  And don’t forget to confirm whether your rental property is required to be professionally cleaned. If so, keep your service receipt as proof for your landlord.

    Move Out on the Same Day as Your Roommates
    If possible, coordinate a move-out day with your roommates. You don’t want to leave it up to your roommate to make sure the apartment is perfectly cleaned and ready for the next tenant. You also don’t want your roommates to move out before you, leaving any junk for you to clean up. Make it a team effort!

    Do a Mock Inspection with Friends
    Invite some trusted friends over and go through your move-out checklist together. You may be surprised by how many things you would have missed if you went through your checklist solo. It is suggested to mark every damage or deterioration, because some of them are the landlord’s responsibility, while others should be deducted from your deposit.

    Once you know who’s responsible for what, you can fix any issue that occurred during your occupancy.

    Have Your Landlord Do a Mock Inspection
    Ask your landlord to do an unofficial inspection before your move-out date. This not only helps you assess what needs fixing but also allows both of you to get on the same page about what needs additional cleaning or repairs.

    Give yourself a few days between this inspection and your move-out day so you have time to correct anything your landlord may be unhappy with.

    Do Necessary Repairs
    Small repairs like replacing light bulbs, filling nail holes and unclogging drains are small things that make a big difference. They’ll take you no more than an hour to complete, but they’ll raise the general condition of the property. The landlord will definitely appreciate the work done and will be less likely to claim deductions from the deposit. Additionally, painting a coat of the original paint color on any walls with scuffs or holes. Either going a DIY route for around $50 or hiring a service and asking for cheaper “white boxing” rates.

    Depending on the condition of your walls, this could be more cost-effective than losing that money out of your deposit, especially if your rental is small. And if you don’t have the funds for either option? The next best thing I’ve seen is the Magic Eraser. It will be your BFF when it comes to getting rid of scuffs and marks.

    Research Local Laws
    It’s illegal in most states for a landlord to keep your security deposit without explanation, so research renter’s rights related to security deposits at the city, county, and state level. Good starting points for this information are the websites of your state’s attorney general and the U.S. Department of Housing and Urban Development. While your property manager should already be aware of these regulations, you should be too. Landlord-tenant laws exist to help you but be your own advocate.

    Finally, while following these 10 suggestions will certainly go a long way, so does being nice. Patience and politeness are memorable qualities, especially if you live in a large apartment complex where plenty of other residents are moving out around the same time as you.

    If thinking about the process of getting your security deposit back is daunting, rest assured that it doesn’t have to be. With some planning and clear, considerate communication, you’re well on your way to getting your hard-earned deposit money back into your hands.

  • 5 Expenses Homeowners Pay That Renters Don’t

    Thinking about buying? Be sure to include these five items in your calculations. Homeownership may be a goal for some, but it’s not the right fit for many.

    Renters account for 37 percent of all households in America — or just over 43.7 million homes, up more than 6.9 million since 2005. Even still, more than half of millennial and Gen Z renters consider buying, with 18 percent seriously considering it.

    Both lifestyles afford their fair share of pros and cons. So, before you meet with a real estate agent, consider these five costs homeowners pay that renters don’t — they could make you reconsider buying altogether.

    1. Property taxes
    As long as you own a home, you’ll pay property taxes. The typical U.S. homeowner pays $2,110 per year in property taxes, meaning they’re a significant — and ongoing — chunk of your budget. Factor this expense into the equation from the get-go to avoid surprises down the road. The property tax rates vary among states, so try a mortgage calculator to estimate costs in your area.

    2. Homeowners insurance
    Homeowners insurance protects you against losses and damage to your home caused by perils such as fires, storms, or burglary. It also covers legal costs if someone is injured in your home or on your property. Homeowners insurance is almost always required in order to get a home loan. It costs an average of $35 per month for every $100,000 of your home’s value. If you intend to purchase a condo, you’ll need a condo insurance policy — separate from traditional homeowner’s insurance — which costs an average of $100 to $400 a year.

    3. Maintenance and repairs
    Don’t forget about those small repairs that you won’t be calling your landlord about anymore. Notice a tear in your window screen? Can’t get your toilet to stop running? What about those burned-out light bulbs in your hallway? You get the idea. Maintenance costs can add an additional $3,021 to the typical U.S. homeowner’s annual bill. Of course, this amount increases as your home ages. And don’t forget about repairs. Conventional water heaters last about a decade, with a new one costing you between $500 to $1,500 on average. Air conditioning units don’t typically last much longer than 15 years, and an asphalt shingle roof won’t serve you too well after 20 years.

    4. HOA fees
    Sure, that monthly mortgage payment seems affordable, but don’t forget to take homeowners association (HOA) fees into account. On average, HOA fees cost anywhere from $200 to $400 per month. They usually fund perks like your fitness center, neighborhood landscaping, community pool and other common areas. Such amenities are usually covered as a renter, but when you own your home, you’re paying for these luxuries on top of your mortgage payment.

    5. Utilities
    When you’re renting, it’s common for your apartment or landlord to cover some costs. When you own your home, you’re in charge of covering it all — water, electric, gas, internet, and cable. While many factors determine how much you’ll pay for utilities — like the size of your home and the climate you live in — the typical U.S. homeowner pays $2,953 in utility costs every year.

    Ultimately, renting might be more cost-effective in the end, depending on your lifestyle, location, and financial situation. As long as you crunch the numbers and factor in these costs, you’ll make the right choice for your needs.

  • Upgrade Your Dining Room Decor with Simple Elegance

    For many of us, the hustle and bustle of day-to-day life means our houses see more chaos and traffic than a rush-hour train station. The idea of an oft-used space like the dining room looking buttoned-up with sophisticated decor is almost laughable.

    But lately we’ve noticed a return to formality: More homebuyers are seeking out properties with a formal dining room, and current homeowners are warming to the idea of bringing more refined furnishings into their dining area. Some experts chalk it up to a stark reaction to the years we spent being casual and cozy indoors during the COVID-19 pandemic.

    So with the spring season right around the corner, now is a great time to focus on adding a bit of elegance to your dining room decor. To inspire your aesthetic overhaul, here are five trending looks:

    1. Mauve velvet chairs
    J    ewel-tone velvet dining chairs have had a hold on the design world for a while now. The trend toward using velvet dining chairs in shades like mauve is driven by a desire for warmth, coziness, and a touch of glamor. These chairs pair well with a variety of dining tables, from traditional to modern, and work particularly well with brass or gold accents. They also bring sophistication, elegance, and depth to the overall design of the room.
    Get the look: Smarten up your dining room with a few mauve side chairs.

    2. Chinoiserie wall art
    Create an elegant focal point in your dining room by adding some Chinoiserie-style wall art. The trend toward using Chinoiserie wall art is driven by a desire to bring a touch of Eastern-inspired beauty and elegance to the home. These pieces pair well with a variety of decor styles, from classic to contemporary, and work particularly well with light-colored walls. The intricate and colorful designs are inspired by traditional Chinese motifs and provide a timeless and classic style.
    Get the look: Create a classic vibe in your space with framed prints.

    3. Grass-cloth wallpaper
    The dining room is a popular place for homeowners to experiment with wallpaper. And the grass-cloth wallpaper adds visual interest and sophistication to an otherwise dull space. Made from plants dried in the sun, grass-cloth wallpaper surrounds your room in warmth and texture. Its popularity is easy to trace since the biophilic design trend has been going strong for a few years with homeowners seeking out additional ways to bring the outside in. You can achieve the same look for less with a printed wallpaper in a grass-cloth pattern.
    Get the look: Embrace the great outdoors this spring with faux grass-cloth wallpaper.

    4. Large stone vase
    If your dining room is lacking a central statement piece, seek out a stone vase. An oversized textured stone vase works well to create balance with another textured object in the room like a light fixture, furniture, or big spring flowers. It’s a natural look that feels right in a room with other earthy materials like linen, rattan, or even a beige area rug.
    Get the look: Balance out your springtime bouquet with a handcrafted terra-cotta vase.

    5. Blown-glass pendants
    An elegant dining room doesn’t have to be stuffy! Get creative and add an artistic oomph above your dining table with blown-glass pendants. Blown-glass pendant lights are a functional way to bring an artistic element into your home. A homeowner with an eclectic style will be drawn to the opportunity to hang vivid colors and shapes over their dining room table.

    Get the look: Find the perfect expression of your artistic vision by shopping collections of blown-glass pendants on Etsy.

  • Get Ready: The Best Time To List Your House Is Almost Here

    If you’re thinking about selling this spring, it’s time to get moving – the best week to list your house is fast approaching.

    Real estate experts have looked at seasonal trends from recent years (excluding 2020 as an uncharacteristic year due to the onset of the pandemic) and determined the ideal week to list a house this year:

    Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is approaching quickly. The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.

    If you’ve been waiting for the best time to sell, this is your chance. But remember, before you put your house on the market, you’ve got to get it ready. And if you haven’t started that process yet, you’ll need to move quickly. Here’s what you should keep in mind.

    Work with an Agent To Determine Which Updates To Make
    Start by prioritizing which updates you’ll make. In February, experts asked more than 1,200 recent or potential home sellers what updates they ended up making to their house before listing it (see graph below):

     As you can see, the most common answers included landscaping and painting. Work with a trusted real estate agent to determine what projects make the most sense for your goals and local market.

    If Possible, Plan To Have Your House Staged
    Once you’ve made any necessary repairs and updates to your house, consider having it staged. According to the National Association of Realtors (NAR), 82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home. Additionally, almost half of buyers’ agents said home staging had an effect on most buyers’ view of the home in general. Homes that are staged typically sell faster and for a higher price because they help potential buyers more easily picture their new life in the house.

    Bottom Line
    Are you ready to sell this spring? Let’s connect to plan your next steps. You can start by making a checklist of what you think your house needs to get ready. Then, we can work together to prioritize your list and move forward together.

  • How Changing Mortgage Rates Can Affect You

    The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

    The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:

    Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.

    What This Means for You
    You may be tempted to put your home buying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. A good explanation is: It is typically a fool’s errand for a homebuyer to try to time rates in this market . . . But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.

    That’s why it’s critical to lean on your expert real estate advisors to explore your mortgage options, understand what impacts mortgage rates, and plan your home buying budget around today’s volatility. They’ll also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision.

    Bottom Line
    Your ability to buy a home could be impacted by changing mortgage rates. If you’re thinking about making a move, let’s connect so you have a strong plan in place.

  • What to Know as a Home Seller

    The first thing you should know as a prospective home seller is, it’s still a great market! That’s right, for over 2 years now, sellers have been uniquely positioned to get the best possible value for the sale of their homes. We even saw sellers receive offers well above asking price on occasion. It’s Economics 101: when you have more buyers than product, the price will often rise.

    There are a number of reasons why sellers are still enjoying a great market. First, let’s talk a little more about that concept of inventory. During the pandemic, people everywhere began reassessing their priorities. Many decided to downsize, move out of town or even across the country for a variety of reasons. In essence, everyone was in the market for a home at the same time. Mid-priced homes, particularly, entered and left the market in record time. Current inventory is actually up from last year but it’s still less inventory than the industry was accustomed to pre-2020.

    Next, there’s this business with interest rates. Interest rates are certainly up by contemporary standards. However, let’s put things in perspective. At the turn of the century, the average interest rate was over 8%. Twenty years before that, it was closer to 18%. So, while rates are higher than say 5 years ago, they’re still pretty low from a historical standpoint.

    Right now, as a seller you’re holding the key to the most important tangible asset out there. No, not your vintage Beanie Baby collection, your home! For the time being, multiple offer situations look to be the norm. Lots of buyers want what you have and they’re willing to offer a fair price to get it. If only that were the case with Beanie Babies. What am I supposed to do with all these things?

    Don’t think it’s all a done deal though. As a seller, focus on maximizing the curb appeal of your home to increase interest and value, especially considering a more “normal” looking housing market could be on the way sooner than later. Or, if there’s one thing we’ve learned over the last few years, a new version of normal. So, make those repairs, add that new coat of paint, and keep standing out from the competition!