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  • When Should You Invest In Rental Properties?

    If you are considering becoming a property investor, you may wonder why you should buy a rental and what indicators to look for when trying to find a property. Here are some signs to look for if you are on the fence about investing in a rental that indicate it is a great time to buy!

    Low Interest Rates

    When mortgage rates drop, it is much easier to make a property produce income. The best place to figure out what kind of interest rate you will get for an investment property is with a lender. Check in with them to figure out how to start the process, and contact an agent to help you start viewing potential properties.

    Home Equity

    Check in with a local Realtor to see how much your current home is worth! Some investment properties require a high down payment, but low-interest rates, refinancing and knowing your home value can make a difference. For example, if you need to borrow 10%, many homes in good markets can appreciate 10% of their value in just a year, depending on the condition and the location. Chat with a lender to see if you can qualify, and check in with your current mortgage company to discuss your plan.

    Scarcity of Units

    Do you live in a location where rental units are in high-demand? Maybe your city is growing and the demand for a space to rent is higher than the available properties. If that is the case, now is the best time to find a property to purchase for rental purposes.

    Return Rate

    If the rate of return in your county is growing, it might be a good time to invest in property. If there is a yearly increase, you can make significant gains over time.

    Ultimately, talking to professionals can help you decide if now is the right time to invest in rental properties!

  • 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.

  • Is Your Home Ready To Show? Here’s Some Quick Tips To Get It There!

    While it might be your goal to keep your home show-ready at all times, that isn’t always possible. It is completely normal to have a home that feels lived in – especially if you are living in it! This isn’t a major issue, but something to be aware of if you are getting ready to list your home.

    If your house is already for sale, you may have already experienced the stress of last minute showings. Of course you want your home to appeal to a potential buyer, but you also want to be able to maintain some normalcy while you are still living at home. Here are some tips to help you show your home in a way that potential buyers will love and you can actually manage!

    Create Routine

    Create an easy maintenance cleaning schedule for each member of your household. Rather than having to worry about cleaning the entire house all at once, this allows you to maintain order and cleanliness – making show-ready living easy to achieve!

    Decide On The Necessities

    Once you decide to put your home up for sale, you should do a walk-through of your entire house. Decide what items you’ll need and use while your home is on the market, and start to make a packing plan for the rest. If you have the room, store items in-house, or consider renting a storage unit. Either way, you will have much less to worry about packing when it is time to move!

    Quick Fix Containers

    Thankfully, decorative baskets and bins of all sorts are all the rage right now. If you don’t already use containers to organize and store toys, clothes, shoes, or other items – now is the best time to start! You will then be able to toss those items quickly into their storage space before a showing.

  • 5 Painting Mistakes to Avoid

    DIY interior painting can be a money-saver if you know what you’re doing. While saving a few dollars is definitely worth trying out painting yourself, it is important to avoid mistakes often made in the process. Here is how to avoid them!

    Mistake #1: Not Using The Correct Applicator

    If you are willing to pay for premium paint, you should be willing to invest in a good applicator. Invest in good brushes or rollers up front to avoid hair on the wall or lumps of roller lint under the paint.

    Mistake #2: Not Preparing Correctly

    You always want to do repair work first so that your walls are smooth, clean, dry and free of loose debris before you begin painting. A repair will be much less obvious if it is done before a new coat of paint!

    Mistake #3: Overextending Your Brush Dips

    One of the most frequently made mistakes by DIYers is that they often continue applying a dip of paint until the brush or roller is dry. When you overextend each dip, the paint can dry in the brush bristles, and the fabric on rollers can mat down. You want to maintain a smooth line of paint. Once you can see the paint starting to break up, it’s time to re-dip.

    Mistake #4: Breath Interference

    Your breathe when painting can impact the steadiness of your hand. When cutting in near edges or other times when you need to be precise, you should hold your breath or breathe out to limit your movement as much as possible.

    Mistake #5: Allowing Paint To Dry Out

    Touch-ups are not ideal if your paint has dried out. To extend the life of water-based paint, place a piece of clear plastic wrap directly on the surface of the paint, then reseal the container. For oil-based paint, add about a half-inch of water on the surface before resealing.

  • Potential Neighborhood With An HOA? Here’s What You Should Know

    Let’s say you have your heart set on buying a home in a community with a swimming pool, a clubhouse, and maybe even a playground or trails. Having access to these amenities often means living in a community with a homeowners association, or HOA.

    Generally, an HOA is responsible for keeping the neighborhood looking beautiful — and as a result, keeping property values high. But since no two neighborhoods are the same, no two HOAs will be the same, either.

    What You Should Know About the Homeowners Association
    Doing your research on homes and communities means finding the answers to dozens of questions. As a savvy home buyer, you’ve probably already considered some of the most important topics early on in your home search, such as the local property taxes and whether the neighborhood is appreciating in value.

    But if you’re considering a neighborhood with an HOA, there are a few additional things that you should know about the community and the association before you buy a home. Here are the essential questions you should ask.

    1. What Does the Homeowners Association Do?
    Each community varies, but in general, a homeowners association assists residents with property maintenance (by providing services like lawn care, trash removal, or Internet), regularly beautifies the neighborhood common areas, and upkeeps any shared amenities. In return for these services, residents pay an association fee, which we’ll talk about later.

    Since the HOA is also concerned with keeping property values high, the homeowners association may also dictate what residents can and can’t do with their properties. These rules keep residents from worrying about a neighbor painting their house a funky color or letting their lawn go wild.

    2. Are You Required to Join the HOA?
    Before you decide to buy a home in an HOA neighborhood, first check to see whether the community has a voluntary or mandatory HOA. A voluntary HOA doesn’t require that you join the association or pay dues, but a mandatory HOA does.

    3. How Much Are the HOA Fees?
    As we mentioned before, HOA fees cover the services that the association provides. HOA fee costs (and the frequency with which they’re paid) can vary from community to community, so ask your real estate agent about how much the fees are before you buy a home in the neighborhood.

    4. What Are the HOA’s Expectations for Residents?
    Typically, a homeowners association will have a list of rules and regulations that residents are expected to follow when they live in the community. (These are known as Covenants, Conditions, and Restrictions, or CC&Rs.)

    These regulations can dictate everything from what colors you can use to paint your home to how many vehicles you can park in the driveway. Again, each homeowners association varies, so it’s best to read the Bylaws of communities you’re considering to learn what’s expected of residents.

    5. When (And How Often) Does the HOA Meet?
    If you’re interested in joining your neighborhood’s HOA to get involved in your community, you might also want to consider when the association meets. The HOA may meet annually, bimonthly, or monthly, depending on the association’s size, so check to see if the regular meetings will fit within your schedule.

    6. Does the HOA Host Any Activities?
    Finally, when considering a neighborhood with an HOA, you should learn whether the HOA provides other ways for you to get involved and meet your neighbors. Ask your real estate agent about whether the neighborhood association hosts annual block parties, pool parties, holiday celebrations, Yard of the Month competitions, or any other neighborhood activities.

  • What Is Earnest Money and Why Do I Need It?

    If you’ve never been through the home-buying process, some of the terminology can seem a bit foreign. One of the many phrases you might come across is earnest money.

    When making an offer on a home, it is often encouraged to include earnest money with that offer. Earnest money is a payment of 1-3% of the offer price that is intended to show the seller you are really interested in their property. The amount isn’t set in stone and it usually depends on the market. So how is that money used?

    When you make it to closing, that earnest money will be directed towards any closing costs, down payments, or other items you would typically pay out of pocket. It is treated as a credit toward any expenses that come up in the process, and is in no way a bribe for the seller.

    There are a few situations where your earnest money will be refunded if you don’t make it to close. This usually requires a stipulation or clause to be added to your offer, and those can vary. Financing not going through, the seller not being able to close, and an unacceptable home inspection are all reasons that if you are protected in your contract, you should receive your earnest money back. If you do decide to back out of the contract with no real reason other than changing your mind, the seller may be able to keep it.

  • 7 Questions to Ask at an Open House That Uncover the Truth

    Open houses are undeniably a fun way to fantasize over property that could be yours. Still, once you’re done staring up at those high ceilings and peeking into walk-in closets, you should also try to get beyond the surface appearance of the place and take the golden opportunity to gather some valuable information.

    In case you’re stumped on what to say, here’s a list of smart questions to ask at an open house. Whether you’re querying the listing agent or the home seller who happens to be on site, these topics will help you deduce whether the place is truly right for you.

    Can you tell me more about the house?

    This is a great way to break the ice and get the conversation going with owners or agents on site. This may seem like a vague question, but that is the point. Pay attention to what is mentioned first, and more importantly, what is not said, which could be a weakness.

    What shape is this place in? Have there been any recent improvements?

    It’s good to find out what improvements have been made so that you know they won’t need to be done after you purchase the place. If you find out that something like the boiler or roof was repaired or replaced recently, then the chances of it being required again soon are small.

    While there really isn’t a way of anticipating when something would break or need to be redone, it’s helpful to rule out what won’t need to be fixed immediately based on what’s been done already. More information about the condition of the building or anticipated repairs should be disclosed during the due diligence process.

    Has there been a lot of interest in the property?

    This is a nice way of asking how much competition you could face if you make an offer. Just keep in mind that listing agents will typically try to paint a positive picture, so it’s up to you to read between the lines.

    If the listing agent says things have been slow at the property and the listing has been on the market for an extended time, this may be your opportunity to negotiate a better price. On the other hand, if the agent informs you of high interest, this may be your cue to act more quickly than you might have planned.

    When are the sellers looking to close?

    The two main points that are negotiated during the purchase of a property are the price and the timing of the closing. You can use this information to tailor your offer to the seller’s needs. In other words: Some sellers may need to move out ASAP if they’ve bought a new home. Or if they’re waiting for new construction to be complete, they might need to cool their heels instead. If you’re flexible on your move-in date, you can highlight this in your offer to make it stand out—and maybe even snag a better deal as a result.

    How much do utilities usually run?

    This question can be an important part of monthly budgeting. All buyers are anxious to know what their monthly costs will be with utilities included. Principal, interest, maintenance, and taxes are easily available, but utility estimates may only be available from the owner. This is also a good question if you’re apartment hunting, as utilities could include different things at different places.

    Some buildings include things like electric and gas in the monthly common or maintenance charges, while others require owners to set up accounts with the respective providers to be billed directly through them. Sometimes buyers assume that the monthly charges listed for the unit are all-inclusive and are surprised after living in the unit for a month to receive a $300 electric bill on top of the monthly charges from the building.

    How much traffic can one expect in this area?

    If an open house is on a weekend, which is usually the case, a buyer cannot readily know if there is traffic during the week for commuters going to and from work. Ask if this is a street that people use to avoid traffic lights or to get to school and work. It will give you an idea of the expected noise level and safety.

    What is the neighborhood like?

    Buyers want a neighborhood that fits their current or perceived lifestyle. Buyers almost always ask this question at open houses. However, it’s a tricky one for agents to answer because of the Fair Housing Act, which prohibits housing discrimination based on race, religion, sex, or family/economic status. That being said, this is where it pays to listen to the subtext. If an agent says, “Well, there is a great community playground in this cul-de-sac,” then you can probably deduce that the area is more family-friendly than upscale yuppy. This one will require a little sleuthing, but ultimately, it’s worth doing some digging at an open house to make sure what you see is what you get!

  • Give Your Home a Morale Makeover

    7 easy ways to revitalize your space and boost your mood

    With many Americans spending a lot more time at home, you may find your house taking on the roles of office, classroom, gym and community center — and it’s easy to feel uninspired by your surroundings after occupying the same space day in, day out. But all hope is not lost: There are simple and inexpensive ways to transform your home into a fresh and stimulating environment. Give your home some TLC with these seven tips from interior decorators, feng shui experts and design enthusiasts.

    Break it up

    If you’re working at home, it’s easy to feel overwhelmed by conflicting responsibilities. To help stay on track, designate different areas for specific activities. It’s important to ‘compartmentalize’ your living space. Assign specific areas for fitness, work and leisure: Dig out a yoga mat from under the bed and dedicate an area to working out. Clean and organize the desk in the living room or office to serve as a ‘command station’ for going online and making phone calls. The bedroom doubles as another workspace and is perfect for napping or watching movies in bed. If you live in a studio, you can simulate separate “rooms” by splitting up the space with curtains, bookshelves or other furniture.

    Experiment with color

    Painting the walls is one of the cheapest and easiest ways to immediately invigorate any home. For a classic look that will hold up against almost any decor, opt for cool neutrals; if you prefer something more dramatic, consider adding a pop of color to a feature wall. Feng shui experts and interior designers recommend greens and blues: they are most associated with health, calm and well being. If you’re not ready to commit to painting, it is suggested to use accessories like throw pillows, an area rug, curtains or artwork to bring color into your space.

    Streamline and declutter

    With millions of us now living and working alongside family members, significant others and roommates, our homes may suddenly seem more cramped than ever before. There’s no better way to create spatial harmony than decluttering: it works a powerful magic in that it gets your entire space up to speed with you. Experts recommend starting small with a contained space like a bathroom, which “will give you a quick feeling of accomplishment and encourage you to do the next space.” The benefits of a tidy space extend beyond aesthetics — research has found that clearing clutter can lower stress levels.

    Do a digital detox

    The digital detox movement is not new, but it’s worth revisiting in this climate of constant COVID-19 news and social media chatter. Though it’s important to stay informed about the health crisis, it’s easy to slip from a healthy level of engagement to compulsive checking. To reduce screen dependence, set up manageable boundaries based on time or place. For example, designate dinnertime as phone-free, or remove mobile tech devices from your bedroom for a daily reset.

    Invigorate with scents

    Scent is a powerful vehicle for uplifting your mood. Every room should have a different scent track to score your moment. Use woody scents like cedar, palo santo, oud, copal and frankincense to feel grounded; rosemary for invigoration; and incense to focus and meditate. There are many ways to suffuse a room with scent — candles, oil diffusers, air mists and fresh flowers, to name a few. For a more subtle effect, crack open a window to balance out your chosen fragrance with fresh air.

    Greenify and purify

    While you’re staying put, there’s no better time to bring the outside world in. If there’s one thing that makes a space feel livable, it’s some elements of green. Not only do plants bring light and color, they also add oxygen to your home — something that many of us could use more of as we hunker down indoors. Consider the level of care you want to give: Some folks may find something less fussy to be easier to deal with, whereas others may want a more ‘high-maintenance’ plant that requires attention every day. Whichever plant you choose, she says that the ritual of maintaining it can be deeply healing.

    Lighten up

    Natural light is the top office perk, according to a study of workplace benefits published in the Harvard Business Review. If your home is now your office, you have more control than ever over the light conditions of your workday. To maximize your exposure to natural light, position your desk near a window and keep drapes and shades open during the daytime. If you don’t have much natural light coming in, it is recommended to affix aluminum mini-blinds to your windows. You can direct or cut out light (and inquisitive neighbors across the street) as needed, and when the sun hits them just right, you can use them to throw light into the room without getting blinded. Adding reflective surfaces — like a mirror, lacquered table, or chrome lamp — enhances the light in dark rooms.

  • Is It Time to Update Your Bathroom?

    Just like your bedroom, your bathroom should be a relaxing place. Whether you unwind in the shower or with a hot bath, making sure your bathroom is a place of comfort and not stress is key to making your home a happier place. Because it is a room you will definitely spend time in every single day, these signs might indicate that it is time for some changes and some tips to help you do so.

    1. Poor Lighting
    You can consider investing in brighter bulbs and updating your light fixtures.

    2. No Storage Space
    You may want to install a larger vanity or additional shelving about the toilet

    3. Outdated Paint Color
    Updating your wall color with something more neutral, light, and timeless can help bring your bathroom back to life.

    4. That ‘Bathroom’ Scent
    Checking for mold, fixing any leaks, or adding ventilation can help relieve any scent you can’t seem to get rid of.

    5. Leaks
    Calling a plumber to make repairs is usually necessary if you have brown water stains.

    6. Time to Sell
    If you’re getting ready to sell, updating whatever needs updating will increase your home value.

  • 6 Ways Home Buyers Mess Up Getting a Mortgage

    Getting a mortgage is, by general consensus, the most treacherous part of buying a home. Many homebuyers said they found the mortgage experience stressful and complicated. Even lenders agree that it’s often a struggle. If you’re out to buy a home, you have to be vigilant. To clue you into the pitfalls, here are six of the most common ways people mess up getting a mortgage.

    Waiting until you can make a 20% down payment

    A 20% down payment is the golden number when applying for a conventional home loan, since it enables you to avoid paying private mortgage insurance (PMI), an extra monthly fee of 0.3% to 1.15% of your total loan amount. But with mortgage rates where they are today—in a word, low—waiting for that magic 20% could be a huge mistake, since the more time passes, the higher mortgage rates and home prices may go!

    All of which means it may be worth discussing your home-buying prospects with lenders right now. To get a ballpark figure of what you can afford and how your down payment affects your finances, punch your salary and other numbers into a home affordability calculator.

    Meeting with only one mortgage lender

    According to the Consumer Financial Protection Bureau, about half of U.S. home buyers only meet with one mortgage lender before signing up for a home loan. But these borrowers could be missing out in a big way. Why? Because lenders’ offers and interest rates vary, and even nabbing a slightly lower interest rate can save you big bucks over the long haul.

    In fact, a borrower taking out a 30-year fixed rate conventional loan can get rates that vary by more than half a percent So, getting an interest rate of 4.0% instead of 4.5% on a $200,000, 30-year fixed mortgage translates into savings of approximately $60 per month, or $3,500 over the first five years.

    So, to make sure you’re getting the best deal possible, meet with at least three mortgage lenders. You’ll want to start your search early (ideally, at least 60 days before you start seriously looking at homes). When you meet with each lender, get what’s called a good-faith estimate, which breaks down the terms of the mortgage, including the interest rate and fees, so that you can make an apples-to-apples comparison between offers.

    Getting pre-qualified rather than pre-approved

    Mortgage pre-qualification and mortgage pre-approval may sound alike, but they’re completely different. Pre-qualification entails a basic overview of a borrower’s ability to get a loan. You provide a mortgage lender with information—about your income, assets, debts, and credit—but you don’t need to produce any paperwork to back it up. In return, you’ll get a rough estimate of what size loan you can afford, but it’s by no means a guarantee that you’ll actually get approved for the loan when you go to buy a home.

    Mortgage pre-approval, meanwhile, is an in-depth process that involves a lender running a credit check and verifying your income and assets. Then an underwriter does a preliminary review of your financial portfolio and, if all goes well, issues a letter of pre-approval—a written commitment for financing up to a certain loan amount.

    Bottom line? If you’re serious about buying a house, you need to be pre-approved, since many sellers will accept offers only from pre-approved buyers.

    Moving money around

    To get pre-approved, you must show you have enough cash in reserves to afford the down payment. (Presenting your mortgage lender with bank statements is the easiest way to do this.) Nonetheless, your loan still needs to go through underwriting while you’re under contract for your loan to be approved. Because the underwriter will check to see that your finances have remained the same, the last thing you want to do is move money around while you’re in the process of buying a house. Shifting large amounts of money out or even into your accounts is a huge red flag. So if you’re in contract for a home, your money should stay put.

    Applying for new lines of credit

    If you apply for a new credit card or request a credit limit increase a few months before closing, watch out: Credit inquiries ding your credit score by up to five points. So, don’t let the credit inquiries add up.

    Applying for multiple lines of credit while you’re buying a house can make your mortgage lender think that you’re desperate for money—a signal that could change your mortgage terms or even get you denied altogether, even if you’ve got a closing date on the books.

    Changing jobs

    Mortgage lenders like to see at least two years of consistent income history when pre-approving a loan. Consequently, changing jobs while you’re under contract on a property can create a big issue in the eyes of an underwriter.

    Your best bet? Try to wait until after you’ve closed on your house to change jobs. If you’re forced to switch before closing, you should alert your loan officer immediately. Depending on the lender, you may simply need to provide a written verification of employment from your new employer that states your job status and income.