Central Alabama Real Estate BlogRecently posted or modified blog postshttps://www.jacobsandershomes.com/blog/Copyright JacobSandersHomes.com2024-03-18T13:18:14-07:00tag:jacobsandershomes.com,2012-09-20:8865 The Top 5 Desires of Smith Lake Home Buyers in 2024: Navigating the Waters of Real EstateNestled in the heart of breathtaking natural landscapes, Smith Lake remains a prime destination for those seeking refuge in its serene crystal clear waters and lush surroundings. As we delve into 2024, the real estate market around this exquisite lake continues to flourish, propelled by the evolving desires of home buyers. In this blog post, we'll explore the top five features that Smith Lake home buyers are prioritizing this year, with a special focus on the allure of a newer or well-maintained boat dock.
1. A Modern or Well-Maintained Boat Dock
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Waterfront access is undeniably the jewel in the crown of Smith Lake properties. This year, a significant emphasis is being placed on the existence of a modern or meticulously maintained boat dock. Such a feature not only enhances the aesthetic appeal of a property but also promises an immediate connection to the lake's recreational opportunities. Home buyers envision themselves embarking on tranquil boat rides at sunset or enjoying leisurely afternoons fishing and swimming off their private docks. A large majority of prospective Smith Lake home buyers vision themselves spending their days outside on or close to the lake, and a state-of-the-art dock, equipped with the latest amenities and safety features, can substantially increase a property's value and appeal.
2. Sustainable and Eco-Friendly Living Options
As environmental awareness grows, so does the demand for homes that reflect a commitment to sustainability. Smith Lake buyers are increasingly looking for properties that incorporate green technologies, such as solar panels, energy-efficient appliances, and water conservation systems. Homes that harmonize with their natural surroundings are not only considered a responsible choice but are also seen as more cost-effective in the long run.
3. Open Concept Living Spaces
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The trend towards open, airy living spaces continues to dominate the preferences of home buyers around Smith Lake. An open floor plan encourages a seamless flow between the kitchen, dining, and living areas, fostering a more connected living environment. These spaces are ideal for entertaining, offering expansive views of the lake and surrounding nature, thereby enhancing the overall living experience.
4. High-Speed Internet and Modern Amenities
With the rise of remote work and digital lifestyles, high-speed internet has become a non-negotiable feature for most home buyers. Thankfully we're seeing the expansion of fiber and high speed internet throughout the lake, and it continues to grow into new areas of the lake weekly. In addition to connectivity, there's a growing demand for properties that offer modern conveniences such as smart home technologies, state-of-the-art security systems, and luxurious wellness amenities like home gyms and spas. Such features not only provide comfort and convenience but also cater to the health and well-being of the residents.
5. Privacy and Seclusion
Despite the desire for modern amenities and connectivity, there's also a significant push towards finding retreats that offer privacy and seclusion. Buyers are seeking properties that serve as sanctuaries, away from the hustle and bustle of daily life. Homes nestled amidst the trees, with ample yard space and strategic landscaping to ensure privacy, are highly sought after. This desire for a peaceful, secluded setting goes hand in hand with the tranquil essence of Smith Lake living.
Conclusion
As the Smith Lake real estate market continues to grow and evolve, understanding the desires of home buyers is crucial for anyone looking to sell or invest in the area. A modern or well-maintained boat dock stands out as a key feature, alongside sustainability, open living spaces, high-speed internet with modern amenities, and the allure of privacy and seclusion. Catering to these preferences can not only enhance the appeal of a property but also ensure a successful and satisfying real estate transaction in the beautiful surroundings of Smith Lake.
In navigating the 2024 real estate waters of Smith Lake, it's clear that buyers are not just looking for a house; they're in search of a lifestyle. Whether it's the tranquility of a waterfront view or the convenience of modern living, each element plays a crucial role in shaping the ideal lakefront living experience. If we can be of assistance to you on your Smith Lake buying or selling journey, please don't hesitate to reach out. 2024-03-17T09:00:00-07:002024-03-18T13:18:14-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:8795Spruce Up Your Smith Lake Home for Spring: Top Tips for Inside and OutAs winter loosens and the first signs of spring begin to emerge, Smith Lake homeowners are presented with the perfect opportunity to breathe new life into their homes. Preparing your home for spring not only enhances its aesthetic appeal but can also boost its value and appeal in the competitive real estate market. Whether you're considering selling your lakeside retreat or simply want to rejuvenate your space, these top tips will ensure your Smith Lake home is looking its absolute best as we head into the warmer months.
1. Deep Clean for a Fresh Start
Inside:
Declutter Every Room: Start your spring refresh with a thorough decluttering. Go room by room, sorting through items and deciding what to keep, donate, or discard. A clutter-free home feels more spacious and inviting.
Deep Clean Windows and Floors: Winter can leave windows grimy and floors dull. Clean windows inside and out to let in more natural light, and give your floors a deep clean or polish to make them shine.
Outside:
Gutter Maintenance: Clear out leaves and debris from your gutters to prevent water damage and ensure proper drainage during spring showers.
Pressure Wash: Revitalize your home’s exterior, driveway, and walkways with a pressure wash to remove dirt, grime, and mildew accumulated over the winter months.
2. Landscaping and Outdoor Spaces
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Gardens and Lawns:
Prep Your Garden Beds: Remove any dead plants and weeds, and enrich your soil with compost to give your plants a healthy start. Consider planting native flowers and plants for a low-maintenance, environmentally friendly garden.
Lawn Care: Early spring is the perfect time to aerate, fertilize, and reseed your lawn to ensure a lush, green carpet come summer.
Outdoor Living:
Refresh Your Outdoor Furniture: Clean your outdoor furniture and replace any worn or faded cushions. Adding new outdoor rugs or throw pillows can also invigorate your space.
Create Cozy Nooks: Consider setting up a hammock, swing, or fire pit area where you can relax and enjoy the serene lake views.
3. Update Interior Decor
Lighten Up Your Linens: Swap out heavy, dark winter fabrics for lighter, brighter linens. Think sheer curtains, light throw blankets, and crisp bed linens to reflect the spring season.
Introduce Spring Colors and Patterns: Incorporate vases of fresh flowers, pastel throw pillows, or vibrant wall art to bring the freshness of spring indoors.
4. Perform Routine Maintenance
Inside:
Check Your HVAC: Before the heat of summer arrives, ensure your air conditioning unit is serviced and ready to go. Changing your filters can also improve air quality and efficiency.
Safety Checks: Test smoke detectors, carbon monoxide detectors, and fire extinguishers to ensure they are in working order.
Outside:
Inspect the Roof and Chimney: Winter weather can sometimes be harsh on your home’s exterior. Inspect your roof for damaged shingles and your chimney for any signs of wear or damage.
5. Embrace Eco-Friendly Practices
Install Rain Barrels: Collect rainwater to use for watering your garden, reducing your water bill and conserving resources.
Switch to LED Lighting: Both indoors and out, LED lights use less energy and last longer than traditional bulbs, making them a smart, eco-friendly choice.
Preparing your Smith Lake home for spring is about more than just aesthetics; it's about creating a welcoming, comfortable space that reflects the beauty of its natural surroundings. By following these tips, you can ensure your home is not only looking its best but is also ready to enjoy all the joys that the spring season brings to this idyllic lakeside community. Whether you're planning to sell or simply want to enhance your living space, these updates can make a significant impact. Welcome the spring with open arms and a home that's refreshed and ready for the season ahead.2024-03-09T11:19:13-07:002024-03-09T11:42:21-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:7602Enjoy The Best of Fall Season at Smith LakeFall is here, and it's time to make the most of the changing leaves, cooler temperatures, and the beauty of nature. Smith Lake, Alabama, nestled in the heart of the state, offers several activities and events to enjoy the season. We've compiled a list of the best activities to enjoy this fall in and around Smith Lake.
Hiking: The fall season makes hiking an incredible experience, and Smith Lake has no shortage of hiking opportunities. The Bankhead National Forest offers over 90 miles of trails for all skill levels. The trails offer a range of beautiful spots, from waterfalls and gorges to rock formations and scenic overlooks. You can also try the Lakeshore Trail that runs along the lake's shoreline, perfect for a leisurely stroll or an intense hike.
Fishing: Smith Lake is renowned for offering some of the best freshwater fishing in the country. You can catch catfish, bluegills, crappies, and bass throughout the fall. The cooler weather means you can also fish comfortably during the day without worrying about the hot sun. Hire a fishing guide or launch your boat into the water to explore the lake.
Fall Festivals and Events: Several fall festivals and events happen around Smith Lake, making it an ideal destination for a fall vacation. The Fall Festival at Lewis Smith Lake Dam, held annually in October, offers fun activities like carnival games, live music, and good food. You can also visit the Pumpkin Patch at the nearby J. R. Pollard's Farm, take a hayride, and try fresh cider and donuts.
Exploring Nearby State Parks: Smith Lake's location allows visitors to check out nearby State Parks. The Rickwood Caverns State Park includes a stunning cave tour, campsite, and hiking trails. Meanwhile, William B. Bankhead National Forest encompasses hiking, fishing, and camping and is located less than an hour's drive from Smith Lake.
Water Sports: Although fall means cooler weather, Smith Lake still offers several water sports activities. You can try jet-skiing, kayaking, canoeing, or paddleboarding and explore the lake's beauty. The fewer crowds during the fall season mean you can enjoy the lake at your leisure.
Conclusion: Make the most of the fall season by visiting Smith Lake, Alabama. Whether you're looking for an outdoor adventure, a relaxing getaway with stunning scenery, or fun Fall event, Smith Lake has got you covered. From hiking and fishing to water sports and fall festivals, Smith Lake has something for everyone. Plan a trip, pack your bags, and explore the beauty of Smith Lake this fall season. As always, if we can be of any assistance, please don't hesitate to give us a call. 2023-10-27T08:35:01-07:002023-10-27T09:12:19-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6196The Power of Pre-Approval
If you’re buying a home this spring, today’s housing market can feel like a <a href="https://www.simplifyingthemarket.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank">challenge</a>. With so few homes on the market right now, plus higher <a href="https://www.simplifyingthemarket.com/2023/04/03/how-changing-mortgage-rates-can-affect-you/" rel="noopener noreferrer" target="_blank">mortgage rates</a>, 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.
Freddie Mac <a target="_blank" href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer">explains</a> it like this:
“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 <a href="https://www.simplifyingthemarket.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank">number of offers</a> 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) <a target="_blank" href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval 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.”
Bottom Line
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.
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2023-04-25T05:04:15-07:002023-04-25T05:14:15-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6195How To Get Pre-Approved For A Home Mortgage Loan (It's Easier Than You Think!)
Getting pre-approved for a home mortgage loan may seem like a daunting task until you read on and find out that it doesn’t take much work!
If you’re eyeing a home that is the stuff of your dreams – good location, best imaginable layout and finishes, and reasonably priced -- the odds would be in your favor if you get a pre-approved mortgage loan. The process doesn’t happen overnight of course, but with enough patience and cooperation, it won’t be a hassle to jump through the hoops.
<img src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1540343398565-DOSF169EV1OZRU5A6BSW/image-asset.jpeg?format=1000w" />Be sure to know what a <a target="_blank" href="http://www.fiscalgeek.com/2010/02/what-is-a-good-credit-score-should-you-care/" aria-label=" (opens in new tab)" alt=" (opens in new tab)" title=" (opens in new tab)">good credit score</a> looks like, as well as how to prepare a <a target="_blank" href="http://www.investopedia.com/terms/g/giftletter.asp" aria-label=" (opens in new tab)" alt=" (opens in new tab)" title=" (opens in new tab)">gift </a>letter. Transactions between you and the lender will run smooth if you are attentive and cooperative. After all of the necessary documents are given, the automated underwriting system will give a pre-approval letter and will enumerate any conditions that need to be fulfilled for full approval.
2023-04-25T04:21:44-07:002023-04-25T04:51:41-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6149Want To Sell Your House This Spring? Price It Right.
Over the last year, the housing market’s gone through significant change. While it’s still a <a href="https://www.simplifyingthemarket.com/2023/03/30/were-in-a-sellers-market-what-does-that-mean/" rel="noopener noreferrer" target="_blank">sellers’ market</a>, homes that are priced right are selling, and they get the most attention from buyers right now. If you’re thinking of selling your house this spring, it’s important to lean on your expert real estate advisor when it comes to setting a list price. As Realtor.com <a target="_blank" href="https://www.realtor.com/advice/sell/what-first-time-home-sellers-need-to-know-to-be-successful-this-spring/" rel="noopener noreferrer">explains</a>:
“Move-in-ready homes with curb appeal and in desirable areas—and that are priced to sell—are especially likely to move quickly this spring.”
In today’s market, how you price your house will not only make a big difference to your bottom line, but to how quickly your house will sell.
Why Pricing Your House Right Matters
Your asking price sends a message to potential buyers, especially today.
If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.
If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to drive interest when your house sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what it means about the home.
To avoid either headache, price it right from the start. A <a href="https://www.simplifyingthemarket.com/2022/12/29/planning-to-sell-your-house-its-critical-to-hire-a-pro/" rel="noopener noreferrer" target="_blank">real estate professional</a> knows how to determine the ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly.
The visual below helps summarize the impact your asking price can have:
<a target="_blank" href="https://files.keepingcurrentmatters.com/content/images/20230412/20230412-price-it-right-MEM.png" rel="noopener noreferrer"><img src="https://files.keepingcurrentmatters.com/content/images/20230412/20230412-price-it-right-MEM.png" /></a>
Bottom Line
Homes priced at the current market value are selling faster and at a better price right now. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassles, let’s connect today.
2023-04-14T03:22:48-07:002023-04-14T03:30:44-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6148How To Properly Deal With The Threat Of Foreclosure
The prospect of losing your home to foreclosure can be heartbreaking, and dealing with it can be equally devastating for you and your family. After all, when the bank decides to foreclose on your home, your credit report may be permanently stained -- leaving your financial future scarily uncertain. On top of this, you will be challenged to find a new home and make necessary lifestyle adjustments.
Given the overwhelming amount of work it entails, dealing with a foreclosure can be a grueling endeavor for a lot of homeowners. However, rising above this situation is perfectly possible if you have the right information.
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Most people fall into the trap of believing that nothing can be done after your mortgage goes into default. But is important to note that a default status is not a death sentence. Reports show that a large number of homes are saved even after the dreaded default status, with very minimal damage done to the homeowners’ credit.
In short, THERE IS HOPE!
Here are few things you have to know before blindly surrendering to the proceedings:
1) Know your rights.
When your home is a candidate for foreclosure, a sufficient understanding of your rights will be a crucial tool in keeping your home, or at the very least limiting the damage done to your credit and overall financial health.
More often than not, you can negotiate with the bank for a modification in your loan. Assuming that your main goal is to keep your house, a small hit on your credit file should be acceptable.
Lenders are also required to follow state laws, and most states require a written notice of default given to the homeowner. The notice should stipulate a certain amount of time for the homeowner to make good on his or her late payments. This means coming up with a plan to gradually settle all amounts due, including interest, penalties, and any other charges allowed by the law or the mortgage.
2) Understand that the banks are not after your home.
It may appear that the banks are working against you in order to get a hold of your home, but this is definitely not the case. The opposite actually holds true, as most banks do not like dealing with such situations. Lenders are in the business of making money through lending--not by reselling foreclosures.
It is in their best interests to keep you in your house, as long as you are willing to remedy the situation within a certain amount of time. Foreclosure is their last resort as much as it is yours.
3) You have to pay for your entire mortgage in order to keep your home.
The default status notification is a tool to communicate urgency--and will most likely include a requirement along the lines of you having to pay your mortgage in full. It is important to be aware, though, that this “acceleration clause” does not imply that you are not allowed to negotiate. Again, when you are willing to cooperate as a homeowner to get your mortgage back in good standing, the lender is most likely to take you up on your offer as long as it is law-abiding and reasonable.
Important note:
If you firmly believe that there has been a mistake (i.e. the amount that the bank/lender is claiming is inaccurate), and that you shouldn’t be receiving a default notice, you are allowed to clearly explain in writing why you think the lender is mistaken. Back your claim with the necessary documents that can prove your stand. Even if the explanation is not accepted, you still have the right to go to court along with your evidence. When it comes to this, the documentation you sent to the lender will be a very useful tool.
2023-04-14T03:13:23-07:002023-04-14T03:18:43-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6129What You Need To Know About Real Estate Purchase Contracts
One of the most important documents in purchasing property is the purchase contract, also known as a purchase and sale agreement. It stipulates the agreement between the parties, and prepares the transaction for closing.
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What is a real estate purchase contract?
A real estate purchase contract enumerates the participating parties’ -- could be two or more -- responsibilities during the period the property is taken off the market. It must be signed by both parties (buyer and seller), and it’s required by the United States Statute of Frauds to be enforceable. In essence, a real estate purchase contract is a binding, bilateral agreement with legal capacity to buy, exchange or transfer real property. Take note that the contract is based on a legal consideration, meaning that consideration is a medium of exchange for the property being purchased, which in most cases is money. There are other forms of consideration such as a promise to pay, or a property in exchange.
What does a real estate purchase contract contain?
Identification of the parties and details of the real estate property (the exact address of the property and a clear legal description)
The agreed upon purchase price and corresponding terms
The amount of the deposit
The essential details, rights, and obligations of the contract
Real estate taxes and special assessments
The condition of the property, what is included, and what is not included
Closing date and costs (and who shoulders them)
Terms of possession and contingencies that must be met
What is a contingency and what should be listed in this clause?
Contingencies serve as a preparation for the possibility of operational problems. The more thorough and defined a contingency clause is, the more it minimizes the potential loss for both parties. In the case when a contract is already in the works, a settlement contingency is used. This protects the buyer if the sale fails since the property is not really sold until the settlement or closing is finalized. In most cases, this type of contingency forbids the seller from accepting other offers on the property for a specific period. If the buyer’s home closes by the specified date, the contract remains valid. If the home does not close, the contract can be terminated.
Here are the common items listed in the contingency clause:
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Mortgage - A contract will usually require that the transaction will only be finalized if the buyer’s mortgage is approved on the same terms and numbers as are identified in the contract.
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Appraisal - This may be required by the mortgage company and the deal should be contingent upon an appraisal for at least the amount of the selling price.
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Professional Inspection - There are instances when upon initial negotiation prior to the handing out of contracts, the buyer agrees to taking the property “as is,” which is common in foreclosure deals when the property has been subject to neglect, and would most likely be torn down and rebuilt after purchase. But there are also contingencies in which a professional inspection is needed to negotiate repairs with the seller. But if the damages are so bad and/or the seller refuses to shoulder repairs, the sale can fall through.
2 important tips for getting the purchase contract right:
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1. Know your terms and adapt language and terms as needed. Take note that the standard language of a contract may vary in different situations, and real estate laws vary between states--which means standard forms are not the same in every location. Given that condition, you can go over the agreement, check for changes, and adjust accordingly.
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2. Consider getting professional assistance from a real estate attorney or real estate agent. If it’s your first time to engage in this kind of transaction (or even if it isn’t), it’s advisable to get help from the professionals. They can guide you through the whole process of either making or doing the contract, and will point out important things to consider that you might miss.
2023-04-11T05:22:12-07:002023-04-11T05:41:34-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:60765 Things to Remember When Selling Your Home in SpringWith spring right around the corner, many home buyers are coming out of hibernation and are getting ready to step into the market to find their perfect home. So if you've considered selling this spring, know that it’s a great time to move forward with those plans.
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Here are some things to keep in mind if you want to successfully sell your home while flowers are in full bloom:
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The spring and summer months tend to be the most active when it comes to home sales. The change of seasons naturally sets up the mood for people to start thinking about finally moving into a new home. For families with school-age kids, it also makes sense to find a new place to live before summer ends so that moving will be less stressful and will suit everyone's schedule.
As you prepare to list your home, keep the extra competition in mind. The best approach is to price your home right, from the start. With the influx of buyers and a competitive market, you won’t have to worry about not making a profit because you’ll often get offers above the listing price. Consider checking out open houses in your neighborhood before finally putting up your own for-sale sign so you can see what nearby homes look like, their common features or amenities, and what price they’re listed for.
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Boosting your home's curb appeal can do wonders to its ability to attract potential buyers. When the flowers come in full bloom and the grass becomes greener, it will be easier to sell not just a house but a total package. So spruce up the exterior of your home by cleaning up your yard, keeping the grass well-trimmed, and freshening up the fence, mailbox, and other outdoor decor.
Likewise, you’ll want potential buyers to picture themselves enjoying their time and making memories in the property. Entice them by bringing the outside in! Add or highlight the outdoor living area where people can see themselves having a sip of their chosen beverage while the kids are playing in the pool and they’re entertaining guests with barbeque parties. If you have the time and the budget, re-assess the space where you can add some profit potential into your property, such as adding a fire pit or revamping your deck.
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There are many benefits to having more natural light in your home. It has been proven to boost vitamin D levels and improve your mood and mental health. Also, it can help reduce your electricity consumption since you don't need to flick on your light fixtures as often. And since there’ll be plenty of natural light during the spring, take advantage of it when you sell your home.
Natural light is also helpful in staging since it can make smaller rooms feel more spacious and pleasant. So open your windows early in the morning and let the fresh air in. If your home isn’t located on the “brighter” side where light is abundant, you can opt for projects such as painting your eaves white or installing skylights.
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Depending on where you live, there'll be a fair amount of heat and humidity once the drier weather comes. So there’s nothing more important than keeping your home comfortable and inviting for would-be home buyers that will come over for viewings.
You want to ensure that your home is cool and comfortable by keeping the A/C running and the thermostat set at a comfortable temperature. Buyers will also be able to ensure that the home’s HVAC systems are working efficiently. Having refreshments and snacks ready will also make a great impression on buyers who have been traipsing around town looking at properties in the sweltering heat.
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Putting your home on the market this season is the perfect excuse for you to get a head start on spring cleaning. Remember that the first thing you'll want to do is to make your home look fresh and inviting to potential buyers. Spend time decluttering the living areas and depersonalize the space to allow buyers to envision themselves settling in the home. Try taking a minimalist approach with less furniture and decor. Aside from highlighting its best features, the environment and overall vibe of your home will be extremely important this season to get multiple offers and make the most profit out of your biggest investment.
2023-03-28T19:44:08-07:002023-03-28T19:56:10-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:60757 Reasons You'll Love Selling Your Home in the SpringAh, spring! When the trees blossom, the lovely tulips and daffodils bloom, and everyone's mood brightens. But aside from our daily dose of sunshine during spring, we also see the high season for real estate. As the temperature rises, the housing market starts to heat up. Even in areas where the weather is great all year long, spring remains the most active time for house buyers and sellers alike.
While there are plenty of reasons to consider selling in the spring, here’s a few examples as to why it’s so worthwhile:
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1. You can show a better-looking home.
Unlike selling in the colder months, which can be stressful because of the snow and harsh weather, you can go to greater lengths in spring to prepare your home for sale. If you list your home in the spring, you can take advantage of the warmer weather and elevate your home's curb appeal.
Show your home at its best to draw the attention of potential buyers. Maximize your curb appeal by cleaning the walkways, strategically placing colorful plants and flower boxes, maintaining the lawn, and making it as green and lush as possible. Allowing the natural sunshine to stream through the windows of your home helps showcase it in its best light. Additionally, don’t forget to address parts of your home that are in need of repair or upkeep, especially if you haven’t done annual maintenance yet.
2. The longer days and better weather make it easier for buyers to go looking for homes.
When the clocks sprang forward in March, the days became longer. More daylight hours means more potential buyers can view your home. Likewise, the good weather gives people a boost to go outside and search for the picture-perfect home just like yours. Unlike home shopping in winter, where buyers need to drive through crappy weather in their soggy boots just to visit an open house, springtime brings in a fresh pool of potential buyers who've done their homework and want to use the longer days wisely. This improves your odds of landing a desirable offer for your home.
3. It's a perfect time for families who want to move before the new school year.
Many home buyers with families are looking to move before the summer and the start of a new school year. This way, their children will still have a couple of months to get settled in their new neighborhood. If you put your home on the market early enough in the spring, your pool of buyers won’t have the same sense of urgency seen in summer or winter sales. Parents who buy in the spring can move during the summer, avoiding juggling their time between school pickup and packing up their stuff to get ready for their new home.
4. The buyer's demand is higher and could spark bidding wars.
It’s no surprise that the months of March, April, and May are the best months for sellers to list their homes as many people are ready to enter the housing market to purchase. More buyers means more potential offers. Sellers can even expect to receive multiple offers, often sparking bidding wars. Buyers will always be competing for homes, especially if the home is in a good location and is listed at a reasonable price. If a bidding war occurs, the cost of the house is most likely to increase, putting the seller in a stronger position to receive more money for the home.
In those months, there’s also a greater chance that you’ll encounter an all-cash offer. This could speed up the entire home selling process. A cash buyer won’t have to rely on mortgage financing or on the sale of their current home, the so-called contingencies, in order to close the deal.
5. Higher home valuation
Since prices tend to be higher and more homes are being sold this season, the data for comparable homes that were recently sold in your neighborhood can also work in your favor. Your agent will have access to more of these comps when setting a price for your home. Likewise, when your home's value is assessed by an appraiser, he or she will look at these comps, so your house is more likely to pass the appraisal if you’re selling it at fair market value.
6. You can be a bit more selective about who you sell your home to.
With more people getting into the market, you can afford to choose who you sell your home to. You don't have to sell your house to the first buyer that gives you an offer, and you can stay firm on your price. The increase in demand affords you the opportunity to receive your asking price and close on the offer with which you are most comfortable. You can also decide whether to sell to an individual owner, joint owners, or even corporate buyers.
7. It's also easier for you to move.
Even though your primary goal is to sell your home, chances are you are also planning to buy and move to a new home yourself. Since entering a real estate transaction can be stressful (not to mention chaotic), it’s another good reason why spring is the best time for you to sell. The weather is more convenient, you can take advantage of the longer days to accommodate home showings and also do your own house-hunting. There’s a greater chance you can sell your home quickly and for a higher price due to the higher demand in the spring.
2023-03-28T19:22:52-07:002023-03-28T19:33:24-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6053Why Do Home Sales Fall Through? 5 Common Reasons Why The Seller or Buyer Walk Away
Why do home sales fall through? Why is it that sometimes, the buyer or the seller walk away from a home sale, causing it to fall apart and for the home to return to the market?
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Let's rewind: You’ve put your home on the market and have been doing everything to prepare your home for upcoming showings. An offer (or even multiple offers) comes in and you accept it. Both parties sign a real estate purchase contract and hope everything goes as planned. You’re definitely a step closer to a closed sale.
But then, life throws a curveball — an issue comes up that turns out to be a major deal-breaker, causing the sale to fall through. Here are some examples:
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An inspection could reveal serious flaws affecting the home sale. If major defects, like structural issues, wet basements, leaky roofs, high radon levels, or mold were discovered in the home, it could be a major deal-breaker for the buyer.
These issues could cause the buyer to panic and open further negotiation on the price, or they could ask for a credit or relief from the seller as compensation. If the buyer included a home inspection contingency in their offer, it also allows them to renegotiate the price or walk away due to those issues.
The seller, in return, has three options: 1.) They can fix the problems by hiring contractors; 2.) They can credit the buyer so they can make the fixes themselves; or, 3.) They can reduce the selling price of the property.
The problem comes if the seller refuses to do any of these. The buyer can then cancel the home sale and simply walk away, although they may lose the earnest deposit they made when signing the contract.
How to prevent this:
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Sellers should never underestimate the power of a home inspection. Especially for older homes, they should hire a home inspector prior to placing their house on the market. The “pre-listing inspection” will help them address any issues the house may have and give them time to fix them. Once you put your property on the market, and potential buyers order an inspection, you will know what to expect and be able to negotiate more easily.
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There are cases where a buyer puts in an offer with the condition that they need to sell their current home before they can purchase a new one. They may include it as a home sale contingency, which makes the contract contingent upon the success of selling their own home within a specific time frame. Not all people can afford to handle two mortgage payments at once. The contingent offer will give them a set number of days to sell their current home.
However, if for any reason, their home doesn't sell within the timeframe, it could cause delays with your home sale or cause it to fall apart. You may be left searching for another buyer or having to proceed with a backup offer and begin a new transaction all over again.
How to prevent this:
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Home sale contingencies can be very risky for you as a seller as it can cause the home sale to fall apart. You can avoid this by prioritizing buyers who don't need to rely on the sale of their current home to proceed with the transaction. If possible, reject an offer with a home sale contingency and choose another buyer who loves your home and doesn’t need a contingency in order to make the purchase.
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Your buyer has been pre-approved; you've agreed on a final purchase price; you’ve both signed the contract. So far, everything is going great—until the buyer just gets rejected for a mortgage.
Keep in mind that a mortgage is not guaranteed until the buyer has signed a final agreement with the lender. While waiting for the mortgage to close, buyers should avoid making significant financial changes, such as taking out a new loan for a car, changing or losing a job, etc. These changes could affect their debt-to-income ratio, which may make them ineligible for the mortgage loan for which they originally applied. Once the buyer’s financing falls through, the pending home sale will go back to active and the transaction falls out of escrow.
How to prevent this:
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To ensure that the sale won't experience any hurdles related to the buyer’s financing, it’s best to accept offers from buyers who already have a mortgage pre-approval. If they are pre-approved, they are less likely to be rejected for a mortgage loan. This means they can get the financing they need to close on the home.
With the help of your listing agent, you can request that buyers be pre-approved and only enter into a contract with a serious and qualified buyer. The only exception is when the buyer wants to make a cash purchase. In this case, there won’t be any financing contingency to deal with.
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Buyers who apply for a mortgage will be asked by their lender to pay for an appraisal of the property. Unfortunately, sometimes the home appraisal comes in at less than the asking price. This can be a huge deal breaker to buyers because banks will only lend them the appraised value of the home, and not all buyers can afford to pay the difference. This situation is common in a seller's market where there’s limited housing inventory and the rampant bidding wars cause prices to go beyond the normal home value.
If this situation occurs, the buyer and seller have a few options. The buyer can order another appraisal from a new professional. If not, they will have to pay the difference in cash. However, not all buyers have the extra amount to bring to the table. They may also ask the seller to reduce the sale price so it’s more in line with the appraisal. Sellers need to be prepared for this negotiation. The seller can attempt to justify their own appraisal, with comparables in the area, to prove their higher asking price.
However, if both parties cannot reach an agreeable solution, the buyer can walk away, and the pending sale will most likely fall through.
How to prevent this:
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To avoid this situation, it's best to list your home with a fair and accurate asking price. Consult with your real estate agent so you can come up with an asking price based on comparable home sales in your neighborhood.
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Buyer's remorse or “cold feet” is real. It’s when the buyer backs out of a deal at the last minute after they realize that they don’t want to buy the home. It happens to both first-time and repeat buyers. After all, buying a home is a huge financial decision and is far from simple.
Once a buyer places an offer, he or she is legally bound. However, buyers can get scared or overwhelmed with the difficulties of the process. Once they realize they don’t want to continue with their purchase, they will do anything they can to get out of it, whether it be contingencies stated in their offer or loopholes in the contract.
When this happens, the seller is left in a bad position. This is why the earnest deposit is important. This deposit, which is typically 1 percent of the home’s final sale price, is made when the buyer signs the purchase contract. It serves as protection for the seller in case the buyer changes their mind. If the buyer chooses to walk away from the deal due to a change of heart, they will lose their deposit money to the seller.
However, it’s still a heart-breaking situation for the seller because they now need to put their home back on the market and start from scratch.
How to prevent this:
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While this issue depends entirely on the buyer and there isn't much you can do as the seller, there are ways you can avoid it. With the help of your agent, make sure that there are no undisclosed points in the contract that a buyer can use to make their offer null and void. Also, in the case of multiple offers, favor a buyer whose offer has fewer contingencies and is confident enough to proceed with the purchase.
For buyers, especially first-time home buyers, get the help of an experienced real estate agent who can walk you through the real estate process and eliminate any misconceptions you have about buying a home. Realtors can also provide counseling if they notice any signs of cold feet from their client.
Of course, there are other reasons a home sale could fall through that are out of the seller's control. Regardless, it can be very frustrating and time-consuming when you have to start from square one and put your house back on the market. Whether you are the seller or the buyer, it’s important to know and understand these deal-breakers so you can actively prepare and attempt to avoid them as much as possible.
2023-03-25T18:56:51-07:002023-03-25T19:04:31-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:6028The Role of Access in Selling Your House
Once you’ve made the decision to <a href="https://www.simplifyingthemarket.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">sell</a> your house and have <a href="https://www.simplifyingthemarket.com/2023/03/01/an-expert-makes-all-the-difference-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">hired</a> a real estate agent to help, they’ll ask how much access to your home you want to give potential buyers. Your answer matters more now than it did in recent years. Here’s why.
At the height of the buying <a href="https://www.simplifyingthemarket.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/" rel="noopener noreferrer" target="_blank">frenzy</a> seen during the pandemic, there was a rise in the number of homebuyers who put offers on houses sight unseen. That happened for three reasons:
Extremely low housing inventory
A lot of competition from other buyers wanting to take advantage of historically low mortgage rates
And general wariness of in-person home tours during a pandemic
Today, the market’s changing, and buyers can usually be more selective and take more time to explore their <a href="https://www.simplifyingthemarket.com/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/" rel="noopener noreferrer" target="_blank">options</a>.
So, in order to show your house and <a href="https://www.simplifyingthemarket.com/2023/02/24/checklist-for-selling-your-house-this-spring-infographic/" rel="noopener noreferrer" target="_blank">sell</a> it efficiently, you’ll want to provide buyers with as much access as you can. Before letting your agent know what works for you, consider these five levels of access you can provide. They’re ordered from most convenient for a buyer to least convenient. Remember, your agent will be better able to sell your house if you provide as much access to buyers as possible.
Lockbox on the Door – This allows buyers the ability to see the home as soon as they are aware of the listing or at their convenience.
Providing a Key to the Home – This would require an agent to stop by an office to pick up the key, which is still pretty convenient for a buyer.
Open Access with a Phone Call – This means you allow a showing with just a phone call’s notice.
By Appointment Only – For example, you might want your agent to set up a showing at a particular time and give you advance notice. That way you can prepare the house and be sure you have somewhere else you can go in the meantime.
Limited Access – This might mean you’re only willing to have your house available on certain days or at certain times of day. In general, this is the most difficult and least flexible way to show your house to potential buyers.
As today’s housing market <a href="https://www.simplifyingthemarket.com/2023/02/28/what-you-should-know-about-rising-mortgage-rates/" rel="noopener noreferrer" target="_blank">changes</a>, be sure to work with your local agent to give buyers as much access as you can to your house when you sell.
Bottom Line
Access can have a big impact on the sale of your house. Let’s <a href="https://www.simplifyingthemarket.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">connect</a> today if you’re ready to <a href="https://www.simplifyingthemarket.com/2023/03/03/where-will-you-go-after-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">make</a> a <a href="https://www.simplifyingthemarket.com/2023/03/08/2-things-sellers-need-to-know-this-spring/" rel="noopener noreferrer" target="_blank">move</a> this spring.
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2023-03-22T06:07:01-07:002023-03-22T06:17:15-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5951An Expert Gives You Clarity in Today’s Housing Market
The <a href="https://www.simplifyingthemarket.com/2023/02/21/the-two-big-issues-the-housing-markets-facing-right-now/" rel="noopener noreferrer" target="_blank">housing market</a> has been going through shifts lately. That’s why it’s so important to work with an industry professional who can be your <a href="https://www.simplifyingthemarket.com/2023/03/09/4-tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">guide</a> throughout the process.
A real estate expert uses their knowledge of what’s really happening with home prices, housing supply, expert projections, and more to give you the best advice. Someone who can provide clarity like that is critical right now. Jay Thompson, Real Estate Industry Consultant, <a target="_blank" href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" rel="noopener noreferrer">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, <a target="_blank" href="https://www.parcllabs.com/articles/q3-real-estate" rel="noopener noreferrer">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. <a href="https://www.simplifyingthemarket.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/" rel="noopener noreferrer" target="_blank">Buying a home</a> is a big decision, and it should be one you feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need.
The right agent can help you understand what’s happening at the national and local levels, and they can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current trends compare to the normal ebbs and flows in the industry, historical data, and more.
Then, to make sure you have the full picture, an agent can tell you if your local area is following the <a href="https://www.simplifyingthemarket.com/2023/02/16/wondering-whats-going-on-with-home-prices/" rel="noopener noreferrer" target="_blank">national trend</a> or if they’re seeing something different in your market. Together, you can use all that information to make the best possible decision.
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where a trusted expert comes in.
Bottom Line
For expert advice and the latest housing market insights, let’s connect.
2023-03-14T21:36:13-07:002023-03-14T21:38:41-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5950Leverage Your Equity When You Sell Your House
One of the benefits of being a homeowner is that you build equity over time. By <a href="https://www.simplifyingthemarket.com/2023/02/06/the-top-reasons-for-selling-your-house/" rel="noopener noreferrer" target="_blank">selling</a> your house, that equity can be used toward purchasing your next home. But before you can put it to use, you should understand exactly what equity is and how it grows. Bankrate <a target="_blank" href="https://www.bankrate.com/home-equity/what-is-home-equity/" rel="noopener noreferrer">explains</a> it like this:
“Home equity is the portion of your home you’ve paid off – in other words, your stake in the property as opposed to the lender’s. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances.”
Majority of Americans Have a Large Amount of Equity
If you’ve owned your home for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the <a target="_blank" href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer">U.S. Census Bureau</a> and <a target="_blank" href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2022-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer">ATTOM</a>, the majority of Americans have a substantial amount of equity right now (see graph below):
<a target="_blank" href="https://files.keepingcurrentmatters.com/content/images/20230310/americans-sitting-on-tremendous-equity-MEM.png" rel="noopener noreferrer"><img src="https://files.keepingcurrentmatters.com/content/images/20230310/americans-sitting-on-tremendous-equity-MEM.png" /></a>
And having such large amounts of equity is a benefit to homeowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, <a target="_blank" href="https://www.housingwire.com/articles/almost-45-of-homeowners-are-now-equity-rich/" rel="noopener noreferrer">explains</a>:
“Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”
Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell it, that money could go a long way toward <a href="https://www.simplifyingthemarket.com/2023/02/13/what-you-should-know-about-closing-costs/" rel="noopener noreferrer" target="_blank">paying</a> for your next home.
Bottom Line
By <a href="https://www.simplifyingthemarket.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/" rel="noopener noreferrer" target="_blank">selling</a> your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect today so you can find out how much home equity you have and start <a href="https://www.simplifyingthemarket.com/2023/02/15/should-you-consider-buying-a-newly-built-home/" rel="noopener noreferrer" target="_blank">planning</a> your next move.
2023-03-14T21:31:19-07:002023-03-14T21:35:18-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5911Planning To Sell Your Home This Year? Here's Why You Should Work With A Real Estate Agent
<article class="blog-list-article" id="article-63d028b62c56ed635e8fed85" data-item-id="63d028b62c56ed635e8fed85">
If you're thinking of selling your home this year, one of the many things you might be considering is whether or not you should hire a real estate agent. You think you know a few potential buyers, so you’re being tempted to try to sell your home yourself and just pocket the cash you would otherwise pay an agent. But at the end of the day, will it be worth it?
Knowing a few buyers isn’t the end of a real estate transaction. There are other rigorous steps and processes involved, many of which can be stressful and costly especially when not handled properly. A good real estate professional does much more than just show your home to people. They’ll do everything from paperwork to networking, and make sure they are looking out for your best interests.
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In order for you to save time and effort, we've listed down five major reasons why you should hire a local and trusted real estate agent to guide you in your home selling journey.
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Part of your due diligence before putting your home for sale is to at least have a good understanding of your local housing market. Such insight will help you in many ways, including knowing what buyers are looking for in a home, whether your area is a buyer's market or a seller’s market, recent sale prices in your neighborhood, listing prices vs selling prices, and so on.
Since the housing market conditions are constantly changing, you need all the help you can get. This is where you can tap into the knowledge of a local real estate agent. Aside from having the latest information about national housing trends and your local market conditions, they can explain what all of this means for you as a seller, so you can make better decisions that maximize your profits through the sale.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1674586329860-KDGVSL12V4LB525LMRVK/unknown.jpg" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1674586329860-KDGVSL12V4LB525LMRVK/unknown.jpg" data-image-dimensions="1000x333" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="63d028d9612600116211f604" data-type="image" data-image-resolution="1000w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1674586329860-KDGVSL12V4LB525LMRVK/unknown.jpg?format=1000w" />
You know your primary goal is to sell your home for the best price, in the shortest time possible. But the question is, do you have any idea how you are going to price your property? Since it's one of your biggest investments, you’re more likely to think that your home is worth more and thus, overprice. Such a move is risky because it can deter buyers from checking your property seeing that it is out of their price range. This could lead to your house sitting on the market for longer, losing you precious time and money.
An experienced real estate agent can provide an unbiased eye when they help you determine the right listing price for your house. They conduct a so-called comparative market analysis to study what similar homes in the area sold for. This also includes checking the condition of your home and any upgrades you’ve made, and comparing it to recently sold homes in your area to find the best price. Since pricing can make or break the sale of your home, your agent can help you come up with a number that’s fair but also appealing to prospective buyers.
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A good real estate agent has a large variety of tools at their disposal, including but not limited to their social media followers, agency connections and resources, and best of all, access to the Multiple Listing Service (MLS). The MLS is a database used by real estate agents and brokers where they can share information about properties for sale. This ensures that your property gets in front of people looking to make a purchase. Without access to these tools, your buyer pool and your home's selling potential will be limited.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1674586317430-9IL93KBP5T7IQ7LUMAL1/unknown.jpg" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1674586317430-9IL93KBP5T7IQ7LUMAL1/unknown.jpg" data-image-dimensions="1000x333" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="63d028cd2e1356247bff170e" data-type="image" data-image-resolution="1000w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1674586317430-9IL93KBP5T7IQ7LUMAL1/unknown.jpg?format=1000w" />
Before putting your house on the market, there are things you need to do to get it ready for sale. Among those include decluttering, deep cleaning, and even making necessary updates, to make it more appealing to prospective buyers, especially for listing photos and during showings.
If you are overwhelmed or wondering what home improvements you're supposed to make, you can count on your real estate agent to give you insightful suggestions. They can point out which parts of your house need sprucing, and which ones are fine just the way they are. You’ll be more informed about which home improvement projects don’t cost much, but will deliver the best return on your investment. Moreover, a reliable agent will also highlight any upgrades on your listing to make it stand out in your market.
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Selling a home means you will have to deal with a ton of paperwork, including real estate documents, reports, and contracts laden with industry jargon that can be overwhelming. Not to mention that each state has its own requirements when it comes to things like seller forms, disclosures, appraisals, among others.
A reliable real estate agent will take the time to explain the purpose of each document before you fill them out, clarify the terms before you agree and sign on them, and answer any questions you may have. By reviewing all the necessary documents with the help of your agent, you can avoid any costly missteps that could occur if you try to handle them on your own.
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Aside from thinking about the asking price you want for your house, you also need to address other terms of the sale, such as contingencies, closing costs and other fees, as well as moving date. You'd be going head-to-head with not only the buyer, but also other parties involved, including the buyer’s agent, real estate attorney (if the buyer has any), home inspector, and appraiser. Even if you’re a skilled negotiator yourself, having a real estate agent who will protect your best interests is critical. Since they have studied your property with all its details and features, and know what buyers are looking for in your area, it’ll be a lot easier to sell your house on your terms knowing that you’ve got a trusted real estate agent representing you at the negotiating table.
</article>
2023-03-08T07:23:34-07:002023-03-08T07:38:03-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5888How To Get Over The Heartbreak of Losing Out on Your Dream Home
It's already stolen a piece of your heart. You’ve spent countless hours thinking about it. You know it’s a huge commitment, nothing like you’ve ever had before, but you’re more than ready for it. You had such big dreams and imagined the two of you growing old together.
But then you lose out. Maybe your offer got outbid. Or maybe the seller chose a cash buyer. Maybe the deal fell through because of an inspection fiasco. There could be a number of reasons why your dream home got away, but one thing’s for sure: the heartbreak is real. It’s painful, and now you’re no better off than when you started.
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This situation—”the house that got away syndrome”—isn't uncommon, especially to first-time home buyers who could fall in love with any home easily or swoon over cosmetics alone, such as an updated kitchen or a good curb appeal.
So how to cope when your supposed “The One” turned out to be just another listing and another buyer’s new home? Here are three tips to help you get through it.
1. Don't pretend it’s “no big deal.”
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After all, it is a BIG deal. So don't pretend that it doesn’t hurt. You should allow yourself to go through the grieving process and feel everything because you’re mourning a lost dream. As you start planning on what furniture will go on the patio, or what lovely color to paint the walls with, you got the house of your dreams snatched away by another buyer, which crushed your high hopes. Now, you couldn’t do anything about it except let yourself grieve.
It’s okay to feel bummed for a bit. Just remember that the idea of your dream home might have been shattered, but you could pick up the pieces and treat them as lessons to be learned as you move forward.
2. Change your perspective and set new goals.
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It's truly devastating to lose out on a home you fell in love with, but remember that there are lessons to be picked up after every heartbreak. And they will help you remain hopeful and move through grief of the house you just lost.
Try to widen your perspective so you’ll understand what worked and what can be improved, then set new goals with those lessons in mind. Was your dream home too far out of your budget? Did you go too low? Did you move on it too slowly? Is it possible to live with two bedrooms instead of three? Do you really want to live in that hot neighborhood, or perhaps you’re willing to move further away from the city? Would you be willing to take a second look at your list of wants vs must-haves? What can you do differently this time?
Assess yourself with these questions when setting your new goals so they’ll be more specific and attainable. Because no matter what went wrong in that previous chapter of your home-buying journey, believe that things happen for a reason and that the house that’s meant for you is just somewhere out there.
3. Prepare to get back in the house-hunting game.
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You've mourned and you’ve learned. Sooner or later, you will be okay to test the waters again. While it can be difficult to forget about the “house that got away”, remember that there are still plenty of houses out there. You need to completely get it out of your head so you can start looking at other properties again.
Get back in the game like you never left. Just don’t forget that you’re better and wiser this time around. You must know exactly what you want in your “The One,” while also being mindful that not every listing is perfect. Maintain your level of diligence as if it’s your first time house-hunting. Understand your budget so you won’t experience another heartbreak on a house that will turn out to be just a money pit. Lastly, try to gradually learn to detach yourself from the emotion. Because at the end of the day, buying a home should be less of an emotional affair and more of a business transaction where you have to avoid making bad decisions.
Even if you’re in a competitive real estate market that has low inventory, believe that you can still find the house you want. You just need to be prepared to claim it when it comes. Hopefully, you will be happier with the home you end up with so you can completely forget about the one that got away.
2023-03-05T06:59:06-07:002023-03-05T07:33:14-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5874When A House Becomes A Home You Love: The Emotional and Non-Financial Benefits of Homeownership [INFOGRAPHIC]
When you started your home buying journey, you might have only considered the financial perks that homeownership could give, including a more stable monthly housing costs and building equity.
But when you think about it, it's love that drives you to provide a safe and comfortable environment for yourself and your loved ones. To have a place designed for your needs and desires is enough to fuel you when searching for a home you can call your own.
This love month, let’s highlight the equally powerful emotional and non-financial benefits of owning a home.
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Bottom line
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Make sure you consider not only the financial perks of homeownership but the many amazing emotional and psychological benefits it has to offer. And when you're ready to find your forever home, find and connect with the right matchmaker—a trusted real estate agent who will guide you to the home of your dreams.
2023-03-01T05:37:42-07:002023-03-01T05:43:21-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5873What is the Multiple Listing Service? A Basic Guide For Buyers and Sellers
Whether you're embarking on your first house-hunting journey or it’s time to sell your beloved home, one thing is certain: you’re likely to encounter the term MLS, which stands for Multiple Listing Service. But exactly is it?
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Even though the real estate industry is highly competitive, the business is unique in such a way that competitors need to cooperate with each other to ensure a successful transaction. And MLS is just the tool to facilitate that cooperation.
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A multiple listing service or MLS is a database of all properties currently for sale in a particular geographic region. While it's usually being referred to as “the MLS,” making it look like one large national database, the MLS is actually a network of local databases for areas around the country. Meaning, there isn’t one single, overarching MLS.
Each MLS is created, maintained and paid for by participating real estate professionals in that local area. It’s where brokers and agents share their listings, upload pictures and detailed information of each property, and update them on a regular basis with the goal of connecting home buyers to sellers.
Brokers and real estate agents pay dues or a membership fee for access to each MLS. If a broker wants to list or view homes in an area that isn’t covered by the MLS they’re currently part of, they’ll need to join the MLS for that area as well. So, it’s possible and sometimes necessary for brokers to participate in multiple MLS databases. Each database has its own prices, fee schedules and rules.
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According to the National Association of Realtors®, the concept of a multiple listing service dates back to the late 1800s. In those times, real estate agents regularly met at their offices to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties. The first MLS was born based on this fundamental concept: Help me sell my inventory and I'll help you sell yours.
Essentially, the multiple listing service was created to foster better cooperation among real estate agents when they realized each brokerage could sell their houses more effectively and serve their clients better by going outside their own brokerages' listings. In 1908, the National Association of Real Estate Exchanges (now the NAR®) endorsed the use of this system by all agents. This information sharing first took place via books, index cards, and catalogs, but has quickly evolved into the modern system in use today—online and fully searchable by price, neighborhood, and home features.
How many MLSs are there?
As of 2020, there are about 600 MLSs throughout the United States, according to the <a href="https://www.reso.org/blog/mls-faq/">Real Estate Standards Organization</a> (RESO). However, the number rises and falls year-to-year “due to regional consolidation,” or when neighboring databases come together to form larger, regional ones. There are also rare markets that do not have an MLS, such as New York City.
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When a homeowner decides to sell their home, they'll typically enlist the help of a local and experienced real estate agent. The agent will gather some information about the property. They’ll use real estate comps to compare the home to other similar properties that have recently sold to come up with a list price. Once they have all this information, they’ll upload it into the MLS as a listing. MLS listings include photos of the home, information such as square footage, number of bedrooms and bathrooms, as well as additional home features (garage, community features, etc.)
But aside from this basic information, MLS listings will also typically include private remarks meant only for other agents. This is to protect the privacy and safety of the seller. These notes can include things like seller contact information, showing instructions (such as the best time for showings, information about pets in the home, gate codes, etc.), and even seller disclosures and homeowners association (HOA) regulations.
Each property is assigned an MLS number, a serial number created to make it easier to differentiate properties and find properties quickly.
For sellers
Once a seller has their home listed on the MLS, it will be visible to all other agents and brokers who use that MLS, significantly increasing their chances of finding a buyer. In fact, access to the MLS is one of the main benefits for homeowners who hire an agent to help sell their home, compared to going the For-Sale-By-Owner (FSBO) route.
For buyers
Similarly, prospective home buyers gain access to numerous listings through the MLS. When a buyer works with an agent to purchase a home, an agent will ask where they'd like to live and what type of home they’re looking for. They’ll also discuss with the buyer their ideal price range, what size home they need, their needs vs wants, which features are important to them, and so on. The agent will then use these criteria to search for homes in the MLS that suit the buyer’s preference. When the buyer eventually finds homes they are interested in, they can use the information in the MLS to schedule showings or inform the buyer of upcoming open houses.
For agents and brokers
Multiple listing services provide increased exposure to the selling broker and numerous options to the broker representing the buyer.
In most cases, the MLS listing also contains private contact information and details about showing times.
MLSs level the playing field by allowing small and large brokerages to compete with one another. With the help of these services, property information is consolidated rather than fragmented, and there's no need for brokers to create their own separate systems of cooperation.
An MLS allows competing brokers to work together toward a common goal of helping buyers find their desired properties and helping sellers sell their homes. In return, both brokers receive a commission on the sale.
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Only brokers can be a part of the MLS, while agents cannot unless their broker does so first. Homeowners who are selling their property can work with agents or brokers to have their home added to the MLS, but cannot add homes to the MLS on their own. Only a licensed real estate professional can list and view homes directly on the MLS.
Some regional MLS databases may have a ‘public-facing side', which means anyone can view MLS listings without professional assistance. However, the agent side contains a little more information about showings, property access, how to submit offers, agency and commission cooperation and the ability to run a market analysis, among others. Many real estate firms also feature MLS feeds on their websites to advertise the homes they’re selling.
Exceptions
While the vast majority of homes available for sale are included on the MLS, there are definitely exceptions. Firstly, strictly FSBO homes won't be found on the MLS database. Likewise, off-market listings, also known as quiet or pocket listings, which are homes that are not marketed in the typical ways, will not be included on the MLS since the seller keeps the property quietly “in their pocket”, hence the name. It’s when sellers desire to test the waters, maintain privacy, or create a sense of exclusivity that could drive up a home's selling price.
2023-03-01T05:27:18-07:002023-03-01T05:37:00-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5856Wondering What’s Going on with Home Prices?<a>Wondering What’s Going on with Home Prices?</a>
The recent changes in home prices are top of mind for many as the <a href="https://www.simplifyingthemarket.com/2023/02/02/experts-forecast-a-turnaround-in-the-housing-market-in-2023/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">housing market</a> begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices.
Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), <a target="_blank" href="https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-HPI-Monthly-1312023.pdf">explains</a>:
“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”
Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.
<a target="_blank" href="https://api.simplifyingthemarket.com/wp-content/uploads/2023/02/us-house-prices-largely-unchanged-MEM.png"><img class="aligncenter wp-image-48821" src="https://api.simplifyingthemarket.com/wp-content/uploads/2023/02/us-house-prices-largely-unchanged-MEM.png" alt="Wondering What’s Going on with Home Prices? | Simplifying The Market" width="650" height="488" /></a>
What Does This Mean for You?
If you currently own your house, you may be concerned about even the <a href="https://www.simplifyingthemarket.com/2023/02/09/why-todays-housing-market-isnt-headed-for-a-crash/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">smallest decline</a> in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, <a target="_blank" href="https://www.cnbc.com/2023/02/10/home-prices-mortgage-rates-fall.html">shares</a>:
“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”
It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring.
Bottom Line
To understand what’s going on with home prices in our market and how they could impact your goals, let’s connect today.
2023-02-23T02:13:49-07:002023-02-23T07:12:04-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5851The Spring Housing Market Could Be a Sweet Spot for Sellers [INFOGRAPHIC]<img src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16105224/The-Spring-Housing-Market-Could-Be-A-Sweet-Spot-For-Sellers-MEM.png" alt="The-Spring-Housing-Market-Could-Be-A-Sweet-Spot-For-Sellers-MEM.png (1300×3025)" />
Some Highlights
The <a href="https://www.simplifyingthemarket.com/2023/02/08/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years/">biggest challenge</a> in the housing market is how few houses there are for sale compared to the number of people who want to buy.
The number of <a href="https://www.realtor.com/research/january-2023-data/">homes for sale</a> is up from last year but below pre-pandemic numbers, and that means we’re still in a sellers’ market.
The housing market needs more homes for sale to meet the demand of today’s buyers. If you’ve thought about <a href="https://www.simplifyingthemarket.com/2023/02/06/the-top-reasons-for-selling-your-house/">selling</a>, let’s connect today.
Won2023-02-21T06:51:29-07:002023-02-22T01:58:12-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5814How To Win as a Buyer in Today’s Housing Market [INFOGRAPHIC]
<img src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/10132046/Resize-UPDATED-MEM_Homeownership-Builds-Your-Wealth-In-The-Over-Time-MEM.png" alt="How To Win as a Buyer in Today’s Housing Market [INFOGRAPHIC] | Simplifying The Market" />
Some Highlights
In today’s housing market, you can still be the champion if you have the right team and strategy.
To win as a buyer, you need to build your team, <a href="https://www.simplifyingthemarket.com/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/">make strategic plays</a>, consider what’s in and out of bounds, and <a href="https://www.simplifyingthemarket.com/2023/01/19/pre-approval-in-2023-what-you-need-to-know/">stand out</a> from the crowd.
Let’s connect today to make your game-winning play.
2023-02-15T02:14:07-07:002023-02-15T02:59:35-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5791Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years
The biggest challenge in the housing market right now, and likely for years to come, is how few homes there are for sale compared to the number of people who want to buy. That’s why, if you’re thinking about selling your house, this is a great time to do so. Your house would be welcome in a market that has fewer homes for sale than it did in the years leading up to the pandemic.
<a target="_blank" href="https://www.realtor.com/research/january-2023-data/">According</a> to the latest Monthly Housing Market Trends Report from realtor.com:
“There were 65.5% more homes for sale in January compared to the same time in 2022. This means that there were 248,000 more homes available to buy this past month compared to one year ago. While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.”
The graph below shows how today’s inventory of homes for sale compares to recent years:
<a target="_blank" href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/07123821/active-monthly-listing-counts-MEM.png"><img class="aligncenter wp-image-48771" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/07123821/active-monthly-listing-counts-MEM.png" alt="Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years | Simplifying The Market" width="650" height="488" /></a>
What Does This Mean for You?
Fewer homes for sale means buyers have fewer choices than they did prior to the pandemic—and that frustration is leading some to give up on the homebuying process altogether. But with mortgage rates sitting <a href="https://www.simplifyingthemarket.com/2023/01/31/lower-mortgage-rates-are-bringing-buyers-back-to-the-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">lower</a> than they were at the peak last fall, more buyers are willing to come back into the process—they just need to find homes to buy. This is welcome activity for the spring market, especially if you’re thinking of selling your house.
With a renewed interest in buying a home for many, the New York Times (NYT) <a target="_blank" href="https://www.nytimes.com/2023/02/02/business/mortgage-rates-housing-market.html">reports</a>:
“Home buyers are edging back into the market after being sidelined last year . . .”
So, if you want to take advantage of a sweet spot in the market, this spring could be your shot.
Bottom Line
The housing market needs more homes for sale to meet the demand of today’s buyers. If you’ve thought about selling, now’s the time for us to connect and get ready for you to make a move this spring.
2023-02-09T07:26:42-07:002023-02-09T07:32:23-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5790How Experts Can Help Close the Gap in Today’s Homeownership Rate
As we celebrate Black History Month, we reflect on the past and present experiences of Black Americans. This includes the path toward investing in a home of their own. And while equitable access to housing has come a long way, homeownership can be a steeper climb for households of color. It’s an important experience to talk about, along with how it can make all the difference for diverse homebuyers to work with the right real estate experts.
We know it’s more challenging for some to <a href="https://www.simplifyingthemarket.com/2023/01/24/the-3-factors-that-affect-home-affordability/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buy a home</a> because there’s still a measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, the lowest homeownership rate persists in the Black community (see graph below):
<a target="_blank" href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/06142054/20230207-Homeownership-Rate-MEM.png"><img class="aligncenter wp-image-48765" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/06142054/20230207-Homeownership-Rate-MEM.png" alt="How Experts Can Help Close the Gap in Today’s Homeownership Rate | Simplifying The Market" width="650" height="488" /></a>
Homeownership is an essential piece for building household wealth that can be passed down to future generations. However, there are obstacles in the <a href="https://www.simplifyingthemarket.com/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">homebuying</a> process that can negatively impact certain groups. This can delay or prevent many from achieving homeownership, challenging their ability to benefit from everything owning a home offers. A <a target="_blank" href="https://www.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-04-26-2022.pdf">recent report</a> from the National Association of Realtors (NAR) explains:
“. . . not all [households] have the same opportunities to homeownership, with many of them facing more constraints in their effort to achieve the American Dream. . . . Given that homeownership contributes to wealth accumulation and the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower.”
However, with the right support and resources, there are solutions if you’re part of this community and planning to <a href="https://www.simplifyingthemarket.com/2023/01/19/pre-approval-in-2023-what-you-need-to-know/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buy a home</a>. Jacob Channel, Senior Economist at LendingTree, <a target="_blank" href="https://www.cnbc.com/2022/08/27/black-borrowers-mortgage-denial-rate-twice-that-of-overall-population.html">shares</a>:
“The problem does exist. We have data that back that up. But there are solutions, and Black homebuyers shouldn’t lose faith that they’ll never be able to become homeowners.”
That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process. These professionals aren’t only experienced advisors who understand the local <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">market</a> and give the best advice. They’re also compassionate allies who will advocate for your best interests every step of the way.
Bottom Line
Access to housing improves every day, but there are still equity challenges that some buyers face. Let’s connect to make sure you have an advocate on your side as you walk the path to homeownership.
2023-02-09T07:22:18-07:002023-02-09T07:25:48-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:57424 Ways to Avoid Going Over Budget on A Home Renovation
Whether you are renovating to make your space more comfortable, to increase your home's value, or just trying the style you always wanted from Pinterest, one of the biggest obstacles you can face when updating your home is staying within your budget.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1669082315121-NGBWFFN651G1NBIDFINQ/unknown.jpg" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1669082315121-NGBWFFN651G1NBIDFINQ/unknown.jpg" data-image-dimensions="1000x1441" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="637c2cca6435fd268ad7afb3" data-type="image" data-image-resolution="1000w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1669082315121-NGBWFFN651G1NBIDFINQ/unknown.jpg?format=1000w" id="yui_3_17_2_1_1675041013917_290" />
Budgeting for any remodeling project can be challenging. In fact, in the 2021-2022 study by Houzz, 34 percent of homeowners exceeded their budget, and they did so for a variety of reasons. The top two reasons they cited include finding that the products or services were more costly than expected and that the project was more complex.
Want to avoid these mistakes made by homeowners? We have listed these four expert tips to help keep your project as close to budget as possible.
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It can be tempting to do the legwork yourself, so you can save money, especially if you know you have got enough time on your hands. However, the DIY route may not be cheaper than you thought it would be. Your lack of know-how can be costly, and you could spend more on a botched job.
Especially for plumbing, electrical, or structural work, it will be safer and cheaper to pay a licensed and experienced professional to do the job right. Also, trust that professionals know the best brands to work with and can achieve the look you are aiming for while still getting the most bang for your buck.
But while it is better to leave the job to the pros, there are some things you can do to prepare your space before a crew comes, especially if you are paying them per hour. Depending on the remodel, you can tidy up the area and clean surfaces, pack up and move furniture and other decors out of the construction zone to make their job go more smoothly.
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Experts recommend hiring a general contractor for medium- to large-scale remodeling projects. A general contractor knows who will do the best work for the best price, and they will know when to schedule them to avoid wasting dollars on inefficient use of time. Plus, sticking to a single contractor ensures the quality of work and materials will be consistent.
To get the best deal, obtain bids from at least three different traders. While it is not unusual for their quotes to differ in certain areas, this is an excellent opportunity to learn about their good and bad points and different approaches to the same work. Moreso, you can be wary if a bid is too good to be true, which could be a red flag that the contractor is either lying to you or is inexperienced.
If you decide not to choose a general contractor and hire individual workers yourself, get at least three quotes for each service performed so you can better compare their prices and scope of work.
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No matter how big or small the remodeling project is, careful and detailed planning is the best way to avoid expensive problems down the road. Remember that the cost of renovations does not only include the materials and contractor/labor fees. Further, consider the little things, such as the costs for any necessary permits, sales tax, delivery charges, shipping charges, and even cleaning materials. Getting a detailed breakdown of the costs upfront means you can see how the different elements of your project add up to the total price.
If you are working with a good contractor, expect that you will get a detailed quote. They will also take the time to sit down with you and discuss the entire project, creating a step-by-step plan. This is also the best time to make all the decisions, especially regarding the materials and finishes you want.
And once the plan is complete, stick to it so you will not make last-minute changes when you are stressed, which is a surefire way to get your budget out of control.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1669082320116-0TRLCJSR0FURSS68S8O7/unknown.jpg" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1669082320116-0TRLCJSR0FURSS68S8O7/unknown.jpg" data-image-dimensions="1000x421" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="637c2cd01e1a6e5598be1dec" data-type="image" data-image-resolution="1000w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1669082320116-0TRLCJSR0FURSS68S8O7/unknown.jpg?format=1000w" />
Even if you are an optimistic homeowner, part of the planning stage is to have a plan for the unexpected. According to the Houzz study, one of the biggest reasons homeowners went over budget was because the project turned out to be more complex than expected. When your contractor opens a wall, they could find some necessary electrical work. If you have an older home, there is a critical risk of getting things that need updating, including plumbing, electrical, and wall material issues or even discovering mold and asbestos, that could jeopardize your family's health and safety.
Hence, regardless of the budget you arrive at, it is safer to have an additional 10-25 percent buffer to cover any surprise expenses and delays. You will get peace of mind knowing that you have the funds just in case you need money to fix whatever is discovered wrong at short notice. Besides, experts say this cash cushion, more often than not, comes in handy.
2023-01-29T18:12:44-07:002023-01-30T05:23:17-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5741Homeownership Builds Your Wealth over Time [INFOGRAPHIC]<img src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/01/26130049/Homeownership-Builds-Your-Wealth-In-The-Over-Time-MEM.png" alt="Homeownership Builds Your Wealth over Time [INFOGRAPHIC] | Simplifying The Market" />
Some Highlights
If you’re <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/">thinking</a> of buying a home this year, be sure to factor in the long-term <a href="https://www.simplifyingthemarket.com/2023/01/10/the-truth-about-negative-home-equity-headlines/">benefits of homeownership</a>.
On average, nationwide, <a href="https://www.simplifyingthemarket.com/2023/01/18/have-home-values-hit-bottom/">home prices</a> appreciated by <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx">288.7%</a> over the last 32 years. That means homeowners grow their <a href="https://www.simplifyingthemarket.com/2023/01/20/whats-really-happening-with-home-prices-infographic/">net worth</a> significantly in the long term.
Homeownership <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/">wins</a> over time. Let’s connect so you can start your homebuying journey today.
2023-01-29T16:42:47-07:002023-01-29T16:48:53-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5740Why It Makes Sense To Move Before Spring
Spring is usually the busiest season in the housing market. Many buyers wait until then to make their move, believing it’s the best time to find a home. However, that isn’t always the case when you factor in the competition you could face with other buyers at that time of year. If you’re ready to buy a home, here’s why it makes sense to move before the spring market picks up.
Spring Should Bring a Wave of Buyers to the Market
In most years, the housing market goes through predictable seasonal trends in activity. Winter is typically a quiet point in the year, while spring sees a surge of buyers begin their search. And experts project that this year will be no exception.
Right now, buyer demand is low due to a combination of normal seasonal trends and a reaction to last year’s rise in mortgage rates. But rates have started to come down since last November, which has more and more potential buyers planning to jump into the market. That means right now is a sweet spot if you’re in a good position to buy, before more buyers reappear. Affordability is beginning to improve, but demand is still low — for now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a target="_blank" href="https://www.housingwire.com/articles/existing-home-sales-ended-the-year-with-a-whimper-in-2022/">shares</a>:
“. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”
If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market.
Today’s Sellers Are Motivated
Low demand from buyers often means sellers are more motivated to work with you, and that can set you up to buy a home on your terms. In fact, sellers have been more willing to <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">negotiate</a> this winter because there are fewer buyers in the market. According to a recent article from <a target="_blank" href="https://www.forbes.com/sites/brendarichardson/2023/01/05/a-record-share-of-home-sellers-gave-concessions-to-buyers-in-the-4th-quarter/?sh=58dc6ba3fbee">Forbes</a>:
“. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.”
But keep in mind, the advantages buyers have this winter won’t last forever. The competition you face could be greater if you wait until spring to make a move, and increased buyer demand means sellers will have less motivation to negotiate with you. Be sure to work with a trusted real estate professional to learn what you can expect in your local market right now.
Bottom Line
If you’re in a good position to make a move, it may make sense to move before spring. Working with your team of expert real estate advisors is the best way to learn about the current market and what it means for you. Let’s connect today to determine the best plan to achieve your homebuying goals.
2023-01-29T16:34:11-07:002023-01-29T16:40:48-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5730Stop Stressing: You Don’t Need a 20% Down Payment to Buy a HomeMany Americans may be unnecessarily talking themselves out of homeownership. Thirty-seven percent of non-homeowners say not having enough saved for a down payment is holding them back from homeownership, but 62% of Americans incorrectly believe you have to have at least 20% of a home’s purchase price to buy, according to NerdWallet’s <a href="https://www.nerdwallet.com/blog/2020-home-buyer-report/?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=755760" rel="nofollow">2020 Home Buyer Report.</a>
“These days, you don’t need to put a full 20% down on a home,” says NerdWallet home and mortgage expert Holden Lewis. “Lenders offer mortgages with far less — as little as 3% down — which allows far more people to get into homeownership sooner.”
So, how do you know just how much you need to save up based on your specific goals? It requires a little strategizing.
Before you can zero in on a down payment target, you have to determine how much home you can afford and when you’d like to start home shopping. First, set your homebuying budget with a <a href="https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford/calculate-affordability?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=755760" rel="nofollow">home affordability calculator</a> to get estimated monthly payments based on various home prices, down payment amounts and locations.
Then, set an approximate timeline. Maybe you’re planning a wedding and know you won’t be ready to purchase for at least two years, or you’re just starting a graduate program and want to give yourself five years to find employment and settle down after graduation. Be realistic and account for your life circumstances.
With a homebuying budget and estimated timeline, you can start running numbers to set a down payment savings goal.
1. Is saving 20% by your goal date realistic?
Calculate 20% of that homebuying budget and determine if it’s feasible to stash that amount away in the time you’ve allotted.
If the answer is yes, great! A big down payment doesn’t only lower monthly payments, it can save you thousands of dollars in interest over the life of the loan and eliminate the need to pay private mortgage insurance.
If it’s no, you have two options: Revisit your goal parameters — opting for a less expensive home or pushing out your target date — or consider a smaller down payment.
Example: For a $250,000 home, someone starting with $0 saved would need to save about $1,400 each month to reach a 20% down payment in three years. For most folks, that’s a stretch. Adjusting the timeline to five years would require monthly savings of about $800. While that may be more realistic, a smaller down payment could get you in a home sooner and with less stress to your monthly household budget.
2. How much can you save by your deadline?
What’s the most you can save monthly for your down payment goal? If you don’t already know the answer, <a href="https://www.nerdwallet.com/blog/finance/how-to-build-a-budget/?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=755760" rel="nofollow">create a monthly household budget</a> to help figure out where your money is going and how much you can set aside.
At a high level, allocating 50% of your post-tax income toward your needs, 30% toward your wants, and 20% toward savings (including your down payment) and debt repayment is a sustainable approach. But by accounting for all of your income and spending, you may realize you can sacrifice a little of your dining out and entertainment money (wants) temporarily to make homeownership a reality sooner.
Example: You decide you can set aside $350 each month. If you’re still hoping to start home shopping in three years, this would leave you with $12,600, or a 5% down payment. Because many lenders accept down payments of 5%, and even lower, you’ll be in a good place to buy around your three-year target date.
3. Do you qualify for down payment assistance?
Even setting aside $12,000 in three years can seem out of reach for some people, but all hope is not lost. First-time home buyers, or those who haven’t owned a home for the past three years, may qualify for down payment assistance, a grant or loan to cover some or all down payment costs. And in some cases, repeat buyers may qualify.
Such programs can both shorten the path to homeownership and free existing savings for closing costs, moving or other homebuying expenses.
Weighing the trade-offs of a high vs. low down payment
A down payment doesn’t have to stand in the way of homeownership. Smaller down payments and down payment assistance programs can help you achieve your homebuying dreams more quickly and leave you some savings for an emergency fund or unexpected repairs.
It’s worth considering, too, since there’s no guarantee your $250,000 homebuying budget will get you the same type of property in three years as it would if you bought sooner. Home prices have been rising, but what will happen in the future and what it could mean for your down payment target is hard to know.
On the other hand, a bigger down payment can equate to a better interest rate on your loan, lower monthly payment, more equity in your home right away, and not paying monthly for mortgage insurance. Because you’re borrowing less money, you’ll pay less in interest over the life of your loan and have lower monthly payments.
<a href="https://infogram.com/hbr-down-payment-1h7z2l905e5y2ow?live" target="_blank"><img class="aligncenter" src="https://www.nerdwallet.com/assets/blog/wp-content/uploads/2020/02/hbr-down-payment-1-480x387.png" width="480" height="387" /></a>
How much of a down payment you need is ultimately a personal decision, a balancing act between financial factors and how quickly you want to achieve your dream of homeownership.2023-01-26T05:55:10-07:002023-01-26T05:58:55-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5729The 3 Factors That Affect Home Affordability
If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">experts</a>, the key factors that determine housing affordability are projected to improve this year. Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, <a target="_blank" href="https://www.corelogic.com/intelligence/u-s-home-price-insights-january-2023/">shares</a>:
“. . . with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”
The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.
1. Mortgage Rates
<a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">Mortgage rates</a> shot up to over 7% last year, causing many <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buyers</a> to put their plans on hold. But things are looking different today as rates are starting to come down. George Ratiu, Senior Economist at realtor.com, <a target="_blank" href="https://www.realtor.com/news/trends/mortgage-rates-are-sliding-could-they-fall-below-6-soon/">explains</a>:
“Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”
Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this <a target="_blank" href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-12-2023">context</a>:
“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”
If 7% rates paused your homebuying plans last year, this could be the <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">opportunity</a> you need to get back in the game. Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market.
2. Home Prices
The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, <a target="_blank" href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy">says</a>:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to a trusted real estate professional.
3. Wages
The final component in the affordability equation is wages. The graph below uses <a target="_blank" href="https://www.bls.gov/charts/usual-weekly-earnings/usual-weekly-earnings-over-time-total-men-women.htm#%E2%80%8B">data</a> from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:
<a target="_blank" href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/01/23134726/american-wage-growth-since-2000-MEM-1.png"><img class="aligncenter wp-image-48701" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/01/23134726/american-wage-growth-since-2000-MEM-1.png" alt="The 3 Factors That Affect Home Affordability | Simplifying The Market" width="650" height="488" /></a>
When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buyers</a> have renewed opportunity in the market.
While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), <a target="_blank" href="https://finance.yahoo.com/news/real-estate-ceos-economists-other-113600300.html">says</a>:
“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges.”
Bottom Line
If you have questions, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your financing options. You may be closer to <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/">owning a home</a> than you think.
2023-01-26T05:48:26-07:002023-01-26T05:54:12-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5703Think Twice Before Waiting for 3% Mortgage Rates
Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">mortgage rates</a> jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% <a target="_blank" href="https://www.freddiemac.com/pmms/archive">last October</a>. Hopeful <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buyers</a> experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.
Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, <a target="_blank" href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-inch-3">shares</a>:
“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
That’s potentially great news if you’re a <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buyer</a> aiming to jump back into the housing market. Any drop in mortgage rates helps boost your <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">purchasing power</a> by bringing down your expected monthly mortgage payment. This means the lower mortgage rates <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">experts</a> forecast <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">this year</a> could be just what you need to reignite your homebuying goals.
While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, <a target="_blank" href="https://www.bankrate.com/mortgages/mortgage-rate-forecast/#forecast">explains</a>:
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”
It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">real estate </a>advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to <a href="https://www.simplifyingthemarket.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buy a home</a> now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">less competition</a> from other buyers.
Bottom Line
The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.
2023-01-20T04:24:39-07:002023-01-20T04:28:15-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5687What Does ‘Days on Market' Mean and Why Does It Matter to Home Buyers?
Here's a sweet analogy- think of a home for sale like your favorite bread or pastry. Most, if not all, are best consumed when they’re freshly baked, much like a home that has been fresh on the market. But bread gets stale as days pass by, which makes it less and less appealing. The same can be applied to a listing. As a home’s days on the market creep higher, it gets “stale” and prospective buyers start to be curious. This can be a huge factor in real estate transactions.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1639447009799-GXX6OAQHN299CS7VTODG/unknown.jpg" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1639447009799-GXX6OAQHN299CS7VTODG/unknown.jpg" data-image-dimensions="1000x1285" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="61b7f9e10c227031018db49c" data-type="image" data-image-resolution="1000w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1639447009799-GXX6OAQHN299CS7VTODG/unknown.jpg?format=1000w" id="yui_3_17_2_1_1674049247535_273" />
Knowing a home's days on market is critical in many ways. Read to know more
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Days on market, often abbreviated DOM, is defined by the National Association of Realtors as the number of days from the date on which the property is listed for sale on the local brokers' multiple listing services (MLS) to the date when the seller has signed a contract for the sale of the property.
DOM can also be referred to as “time on market”, and is basically a measure of how long a house takes to sell. It is also used as a key metric by buyers and real estate agents to see which homes are fresh to the real estate market.
<img src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1639447019821-COPC88C67WCHRFN5QZKO/unknown.jpg?format=1000w" />
DOM as a search filter
Buyers and their real estate agents can use DOM as a search filter to identify homes that have been listed for a long time.
The DOM is an indication of how hot the market is.
The average number of days on the market is often used to describe how hot the market is in a particular area. For instance, in a seller's market where there are more buyers than the number of homes listed for sale, the days on market are fewer because of the high demand.
Higher DOM = “Is there something wrong with the house?”
When a home is listed for sale on the market, the usual expectation is that the property will sell quickly. This is because homes generate the most interest when they’re new. If the number of days between the listing and sale is few, it might indicate two things: either there is a high demand or the property was underpriced but of good value.
The more days on the market there are, the more likely it is for everyone to wonder if there’s something wrong with the house. It might be a beautiful home, but could be overpriced, need help with staging, or isn’t desirable to most buyers. It can also lead buyers to think that the seller is unmotivated, stubborn, or always unavailable to show the home.
Higher DOM = a potential bargain
The good news on a house with a high DOM? It can also indicate a potential bargain, especially from sellers who haven’t received offers and who may be open to a lower offer. In an area that has a large number of houses listed for sale, and the home has been on the market longer than the other properties, the days on market can become a negotiating tool for the buyer. Work with your agent to learn more about why the property has sat so long on the market, and about the seller’s urgency to sell.
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Yes, especially in certain markets. If a listing is taken down off the market for a few weeks or months, and then gets relisted with a new, possibly lower price, the DOM counter might restart. This gives buyers the impression that the home just came on the market. The same generally happens if a new agent takes over the listing.
However, most local MLS associations keep track of the Cumulative Days on Market (or CDOM), which is the total market time accumulated on a property, as well as the DOM. In such cases, you need to work closely with your agent to do a deep dive on a listing's full history so you will know exactly how long the home has been for sale.
2023-01-18T06:40:14-07:002023-01-18T06:53:29-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5677First-Time Homebuyer? Here's A 5-Step Checklist Before Starting Your SearchAnything you're doing for the first time can often be frustrating and intimidating. More so when it comes to buying your first home! The stakes are high, and there’s no way you can make an impulse purchase. You can’t just contact the agent of a listing you’ve seen online and say “This is mine!”—no questions asked. Or give an offer on the first virtual open house you’ve attended. There are a ton of things to do and prepare even before finally scheduling a showing and making an offer on your potential home.
<img src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794394934-L4MJOGVD11DEBFHJUDGJ/image-asset.jpeg?format=1000w" />
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Even so, searching for your first home is an exciting journey. To further help you, here are five tips to remember before starting your search:
1. Get your paperwork in order.
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You may want to do this even before starting to look at properties online, especially if you're applying for a mortgage. Some of the documents you’ll need to prepare include your last two years’ worth of tax returns, bank statements for the last three months, canceled rent checks, and current pay stubs and copies of your lease if you’re currently renting. These documents will be needed by the mortgage officer later on when he’s assessing your capability as a borrower. While assembling all that paperwork early on can be quite a pain, be assured that you’re getting a headstart on the competition.
2. Check your credit score.
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Your credit score is one of the biggest factors in your ability to secure a loan. Lenders will look at this number to determine whether you are creditworthy, and it will influence your interest rate, down payment, and other terms of your mortgage. It will also help you know which type of loan you can consider getting as different loan types have different credit score requirements.
Check your credit score and obtain a copy of your credit report before you look at real estate online. If you think there are errors on your report, contact the credit bureau to dispute inaccurate or incomplete information. For less-than-stellar credit, take the necessary steps to boost your score so you'll be more confident in getting a better loan term as you look for your ideal home.
3. Get pre-approved.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794393945-0W37DVTYMZHISF5MJ2SP/image-asset.png" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794393945-0W37DVTYMZHISF5MJ2SP/image-asset.png" data-image-dimensions="547x530" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="5eff5f59648e2f5a443bcb64" data-type="image" data-image-resolution="300w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794393945-0W37DVTYMZHISF5MJ2SP/image-asset.png?format=300w" />
Resist the urge to start your home search without a mortgage pre-approval. This letter lets you know how much home you can afford and will show sellers that you are serious and have what it takes to buy. Lenders will do a full review of your employment or income, credit, and assets before they issue a pre-approval, so assembling your paperwork beforehand will save you the hassle.
Getting pre-approved for a mortgage will help you gain a competitive advantage and speed up the homebuying process. And with today's historically low mortgage rates and even low housing inventory, it has never been more crucial. Having a pre-approval before making an offer can help you stand out among sellers because it gives them extra security and confidence that the deal will push through.
4. Make a list of your “must-haves” vs “would-like-to-haves”.
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Next step is to consider your lifestyle and values before seriously shopping for real estate. Then, create a list of all the features of a home that you would like and categorize them as ‘must-haves,' ‘would-like-to-haves,’ and your ‘dream features.’
Ask yourself questions like: ‘Do I really need four or more bedrooms?’ ‘Is a two-car garage necessary?’ ‘Are granite countertops a must in my future kitchen?’ Your preferred number of bedrooms and bathrooms, square footage, and neighborhood features should be included in your non-negotiable elements. These crucial items should be followed by the ones that would be nice to have, such as an outdoor space, a home office, plenty of storage, and other features that are important for you and your family.
5. Find a trusted real estate agent.
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794396247-MSS1LJCMB783R4FOC4HU/image-asset.png" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794396247-MSS1LJCMB783R4FOC4HU/image-asset.png" data-image-dimensions="547x530" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="5eff5f5b6ad93e46b163899a" data-type="image" data-image-resolution="300w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1593794396247-MSS1LJCMB783R4FOC4HU/image-asset.png?format=300w" />
Lastly, there's no reason for you to go through this complicated process of home buying alone. Especially during this age of new normal, working efficiently with a trusted realtor will help put you in a position to act fast when you’re ready to move. Find a good realtor who has extensive knowledge of the area or neighborhood, especially if trips outside are still limited.
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2023-01-13T05:08:28-07:002023-01-13T05:13:44-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5659Avoid the Rental Trap in 2023
If you’re a renter, you likely face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different. But before you dive too deeply into your options, it helps to understand the true costs of renting moving forward.
In the past year, both current renters and new renters have seen their rent go up based on information from <a target="_blank" href="https://www.realtor.com/research/october-2022-rent/">realtor.com</a>:
“Three out of four renters (74.2%) who have moved in the past 12 months reported seeing their rent increase. The strain from recent rent hikes isn’t exclusive to renters who have recently moved. Nearly two-thirds of renters (63.2%) who have lived in their current rental between 12 and 24 months, and likely renewed their lease, have also reported increases in their rent.”
And if you look back at historical data, that shouldn’t come as surprise. That’s because, according to the <a target="_blank" href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf">Census</a>, rents have been rising fairly consistently since 1988 (see graph below):
<a target="_blank" href="https://api.simplifyingthemarket.com/wp-content/uploads/2022/12/median-asking-rent-since-1988-MEM.png"><img class="aligncenter wp-image-47714" src="https://api.simplifyingthemarket.com/wp-content/uploads/2022/12/median-asking-rent-since-1988-MEM.png" alt="Avoid the Rental Trap in 2023 | Simplifying The Market" width="650" height="488" /></a>
So, if you’re considering renting as an option in 2023, it’s worth weighing whether this trend is likely to continue. The 2023 <a target="_blank" href="https://www.realtor.com/research/2023-national-housing-forecast/">Housing Forecast</a> from realtor.com expects rents will keep climbing (see graph below):
<a target="_blank" href="https://api.simplifyingthemarket.com/wp-content/uploads/2022/12/rent-growth-is-expected-to-continue-MEM.png"><img class="aligncenter wp-image-47715" src="https://api.simplifyingthemarket.com/wp-content/uploads/2022/12/rent-growth-is-expected-to-continue-MEM.png" alt="Avoid the Rental Trap in 2023 | Simplifying The Market" width="650" height="488" /></a>
That forecast projects rents will increase by 6.3% in the year ahead (shown in green). When compared to the blue bars in the graph, it’s clear that the 2023 projection doesn’t call for an increase as drastic as the ones renters have seen over the past two years, but it’s still above the historical average for rent hikes between 2013-2019.
That means, if you’re planning to rent again this year and you’ve not yet renewed your lease, you may pay more when you do.
Homeownership Provides an Alternative to Rising Rents
These rising costs may make you reconsider what other alternatives you have. If you're looking for more stability, it could be time to prioritize homeownership. One of the many benefits of owning your own home is it provides a stable monthly cost that you can lock in for the duration of your loan. As Freddie Mac <a target="_blank" href="https://myhome.freddiemac.com/blog/homeownership/4-benefits-owning-home">says</a>:
“Monthly rent payments may increase over time, but a fixed-rate mortgage will ensure that you're paying the same amount each month. With a fixed-rate mortgage, your interest rate is locked in for the life of loan. Steady payments allow you to budget wisely and make plans for the future.”
If you’re planning to make a move this year, locking in your monthly housing costs for the duration of your loan can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases like you would if you left your housing payment up to your landlord and their renewal cycle.
Homeowners also enjoy the added benefit of <a href="https://www.simplifyingthemarket.com/2022/12/20/homeowners-still-have-positive-equity-gains-over-the-past-12-months/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">home equity</a>, which has grown substantially. In fact, the latest <a target="_blank" href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2022/">Homeowner Equity Insight</a> report from CoreLogic shows the average homeowner gained $34,300 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage on a house, you grow your <a href="https://www.simplifyingthemarket.com/2022/12/08/homeownership-is-an-investment-in-your-future/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">wealth</a> through the forced savings that is your home equity.
Bottom Line
If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face. Let’s chat to see how you can begin your journey to homeownership today.
2023-01-07T03:53:55-07:002023-01-07T04:01:57-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5658Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC]
<img src="https://files.keepingcurrentmatters.com/wp-content/uploads/2023/01/05125949/Tips-To-Reach-Your-Homebuying-Goals-in-2023-NM.jpg" alt="Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC] | Keeping Current Matters" style="font-size: 24px;" />
Some Highlights
If you’re planning to <a target="_blank" href="https://www.keepingcurrentmatters.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/">buy a home</a> in 2023, here are a few things to focus on.
Work on <a target="_blank" href="https://www.nerdwallet.com/article/mortgages/home-buying-checklist-steps-to-buying-house">your credit</a> and save for a <a target="_blank" href="https://www.keepingcurrentmatters.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/">down payment</a>. If saving feels like a challenge, there’s <a target="_blank" href="https://downpaymentresource.com/">help available</a>. Then, get <a target="_blank" href="https://www.keepingcurrentmatters.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/">pre-approved</a>, create a list of desired features, and <a target="_blank" href="https://www.keepingcurrentmatters.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/">prioritize</a> them.
Reach out to a real estate professional so you have expert advice on how to reach your <a target="_blank" href="https://www.keepingcurrentmatters.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/">homebuying goals</a> this year.
2023-01-07T03:44:35-07:002023-01-07T03:52:48-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5611Confused About What’s Going on in the Housing Market? Lean on a Professional.If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">selling</a> a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" target="_blank">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" target="_blank">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">real estate advisor</a>.
A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.
Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.
Bottom Line
If you have questions about the headlines or what’s happening in the housing market today, let’s connect so you have expert insights and advice on your side.2023-01-02T01:25:13-07:002023-01-02T01:29:02-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5610Planning To Sell Your House? It’s Critical To Hire a Pro.With higher mortgage rates and moderating buyer demand, conditions in the housing market are different <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">today</a>. And if you’re thinking of <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">selling your house</a>, 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), <a href="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" target="_blank">explains</a>:
“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
<a href="https://www.simplifyingthemarket.com/2022/12/06/whats-going-on-with-home-prices-ask-a-professional/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">Home price appreciation</a> 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 <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp#toc-4-agents-access-large-networks">explains</a> 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 <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-sellers/8-reasons-to-work-with-a-realtor" target="_blank">explains</a> 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.
Bottom Line
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.2023-01-02T01:07:48-07:002023-01-02T01:13:14-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5605Applying For a Mortgage? Here’s What You Should Avoid Once You Do.While it’s exciting to start thinking about <a href="https://www.simplifyingthemarket.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">moving in</a> and <a href="https://www.simplifyingthemarket.com/2022/11/25/home-sweet-home-the-emotional-benefits-of-homeownership-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">decorating</a> after you’ve <a href="https://www.simplifyingthemarket.com/2022/10/28/applying-for-a-mortgage-doesnt-have-to-be-scary-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">applied for your mortgage</a>, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Cosign Loans for Anyone
When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.
Do Discuss Changes with Your Lender
Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
<br /><br />
2022-12-29T04:43:54-07:002022-12-29T12:16:47-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5601Buy, Build or Fix: What’s Best for First-Time Home Buyers?With a limited supply of entry-level housing for sale, getting your foot in the door you want could be a challenge if you’re looking to buy your first home soon.
Nearly a third of Americans who’ve never previously bought a home say they plan to in the next five years, according to a <a href="https://www.nerdwallet.com/blog/2020-home-buyer-report/?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=757836" rel="nofollow">survey commissioned by NerdWallet</a> and conducted online by The Harris Poll among 2,007 U.S. adults in January 2020.
Before you join the house hunt, decide which type of property best fits your goals. Here are the pros and cons of buying a turnkey home, building a new house or renovating a fixer-upper.
Buy if you can roll with the punches
What could be the downside to a move-in-ready house? All you need to do is move. But in today’s market, competition is fierce. According to data from the National Association of Realtors, in December 2019 the inventory of homes for sale in the U.S. reached its lowest level in over 20 years.
“You have to be ready to go yesterday,” says Simone Plush, a real estate agent with Washington, D.C.-area Century 21 New Millennium. Especially for <a href="https://www.nerdwallet.com/article/mortgages/tips-for-first-time-home-buyers?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=757836" rel="nofollow">first-time home buyers</a>, the process can be “an emotional roller coaster,” Plush says. She encourages buyers to be strategic and swift when making an offer on a turnkey home. For example, looking at homes priced slightly below your budget lets you afford a competitive bid that’s over the asking price.
When you’re feeling frustrated, Plush says, remember your “why” — the reason you’re house hunting in the first place. Reconnecting to your desire to have a backyard for your kids, for example, can help you maintain momentum.
Build if you want to call the shots
New <a href="https://www.nerdwallet.com/blog/mortgages/construction-loans/?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=757836" rel="nofollow">construction</a> might sound intimidating and time-consuming, but unless you’re starting from scratch with an architect and a piece of land, it can be surprisingly straightforward and speedy.
“In many of our communities, home buyers have the option to purchase a quick move-in home,” one that will be ready within 30 to 90 days, commented Jessica Hansen, vice president of communications for Arlington, Texas-based homebuilders D.R. Horton, via email.
Time frames can vary by builder and demand. Jeff Mezger, president and CEO of Los Angeles-based builder KB Home, says his company averages three to four months from breaking ground to move-in day. The average home search takes about 10 weeks, according to a 2019 NAR survey, followed by several more weeks to close and get the keys.
In the same survey, the most-cited reason home buyers gave for purchasing new construction was to avoid renovations or problems with mechanical systems. Both these builders, like many others, offer home warranties, protection that buyers of existing homes may have to purchase for themselves.
“When you close on a used home, you’re on your own if something goes wrong,” Mezger says. “With a new home, you still have that relationship with us.”
But these conveniences come at a cost: In the NAR survey, those who bought new construction paid a median price $85,000 more than those who purchased a previously owned property. Feasibility may also depend on where you live. In an urban area or well-established suburb, building new may be difficult without paying to tear down an existing structure. In rural areas, there’s plenty of land, but starting from the ground up outside a development may mean extra costs for securing access to water, electricity and more.
Fix if location’s a must
Renovating a <a href="https://www.nerdwallet.com/blog/mortgages/buying-a-fixer-upper/?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=757836" rel="nofollow">fixer-upper</a> is tougher than it looks on TV, but if the house has good bones, you could snag an affordable home in your ideal neighborhood. The NAR survey shows 26% of first-time home buyers said they compromised on condition in order to buy a home. Condition issues are unsurprising as the nation’s housing stock ages. According to Harvard University’s Joint Center for Housing Studies, as of 2019 nearly 80% of American homes were at least 20 years old, and 40% were at least 50.
“First-time home buyers should not be shy about houses that have good mechanical and structural components that are just ugly,” says David Pekel, a former contractor who’s now CEO of the National Association of the Remodeling Industry. “You can fix ugly.”
Pekel recommends working with an experienced home inspector to determine what needs to be addressed. A contractor can delineate the scope of work and potential cost. Pekel says most will charge a consultation fee that’s refunded if they’re hired.
Finding your financing
Whether you choose to buy, build or fix, there are various financing options. In addition to conventional mortgages and standard government-backed loans, there are construction loans and renovation loans suited for borrowers financing new construction or remodeling. A lender that offers loan products for the kind of property you want can guide you through your choices.2022-12-29T04:27:56-07:002022-12-29T04:37:30-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5589What Makes a House a Home?2022-12-23T05:09:05-07:002022-12-23T06:19:41-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5495Planning to Retire? It Could Be Time To Make a Move.If you’re thinking about retirement or have already retired this year, you may be planning your next steps. One of your goals could be <a href="https://www.simplifyingthemarket.com/2022/12/02/winter-home-selling-checklist-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">selling your house</a> and finding a home that more closely <a href="https://www.simplifyingthemarket.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">fits your needs</a>.
Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about when making that decision.
Consider How Long You’ve Been in Your Home
From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" target="_blank">rising today</a>, meaning many homeowners are living in their houses even longer (see graph below):
<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14115511/homeowners-are-living-in-their-homes-longer-in-recent-years-MEM.png?a=15254-9542e274d2d9fa8a80c682c004b9b73f"><img loading="lazy" class="aligncenter wp-image-47616" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14115511/homeowners-are-living-in-their-homes-longer-in-recent-years-MEM.png" alt="Planning to Retire? It Could Be Time To Make a Move. | Simplifying The Market" width="650" height="488" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14115511/homeowners-are-living-in-their-homes-longer-in-recent-years-MEM.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14115511/homeowners-are-living-in-their-homes-longer-in-recent-years-MEM-400x300.png 400w" sizes="(max-width: 650px) 100vw, 650px" /></a>
When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
Consider the Equity You’ve Gained
Additionally, if you’ve been in your home for more than a few years, you’ve likely built up <a href="https://www.simplifyingthemarket.com/2022/11/29/3-ways-you-can-use-your-home-equity/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">significant equity</a> that can fuel your next move. That’s because the longer you’ve been in your home, the more likely it’s <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">grown in value</a> due to home price appreciation. <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" target="_blank">Data</a> from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):
<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14121707/how-home-prices-have-grown-over-time-1-MEM.png?a=15254-9542e274d2d9fa8a80c682c004b9b73f"><img loading="lazy" class="aligncenter wp-image-47620" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14121707/how-home-prices-have-grown-over-time-1-MEM.png" alt="Planning to Retire? It Could Be Time To Make a Move. | Simplifying The Market" width="650" height="488" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14121707/how-home-prices-have-grown-over-time-1-MEM.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/14121707/how-home-prices-have-grown-over-time-1-MEM-400x300.png 400w" sizes="(max-width: 650px) 100vw, 650px" /></a>
While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by over 50%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.
Consider Your Retirement Goals
Whether you’re looking to downsize, relocate to a dream destination, or move so you live closer to loved ones, that equity can help you achieve your homeownership goals. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" target="_blank">shares</a> that for recent home sellers, the primary reason to move was to be closer to loved ones. Plus, retirement played a large role for those moving greater distances.
Whatever your home goals are, a trusted real estate advisor can work with you to find the best option. They’ll help you <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">sell</a> your current house and guide you as you <a href="https://www.simplifyingthemarket.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buy</a> the home that’s right for you and your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore your opportunities in our local market.2022-12-16T04:19:31-07:002022-12-16T04:31:00-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5494Expand Your Homebuying Options With a Fixer-Upper MortgageExpand Your Homebuying Options With a Fixer-Upper Mortgage
It’s the lament of first-time homebuyers in just about every housing market: There aren’t enough entry-level homes available that are move-in ready.
One solution is to broaden the search to fixer-uppers. With a renovation mortgage, you can get one home loan that combines the purchase price with the cost of improvements.
Not enough affordable homes
Entry-level homes are scarce, whether new or used. Most gains in housing inventory have been in upscale homes, according to Realtor.com.
The decline in entry-level new construction is stark: 36 percent of homes built in 2000 had under 1,800 square feet; in 2017, 22 percent did, according to the Harvard Joint Center for Housing Studies.
As for existing homes, resales of homes costing $100,000 to $250,000 were down 1.9 percent in October, compared with a year earlier, according to the National Association of Realtors®. The demand is there: Even with the decline, homes in that price range accounted for 40.2 percent of sales.
Faced with a shortage of affordable homes, it makes sense to consider buying and fixing up dwellings that are outdated or in need of repair.
The two major types of renovation loans are the <a href="https://www.nerdwallet.com/article/fha-loan?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=588961" rel="nofollow">FHA 203(k) loan</a>, insured by the Federal Housing Administration, and the HomeStyle loan, guaranteed by Fannie Mae. Both cover most home improvements, whether major or minor.
“Basically, every kind of repair that can be done to a property, we do it,” says Brad McMullen, vice president of renovation lending for PrimeLending, a national mortgage lender that emphasizes renovation loans.
» MORE: <a href="https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford/calculate-affordability?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=588961" rel="nofollow">Find out how much house you can afford</a>
Renovation loans open more doors
Both FHA 203(k) and HomeStyle can be used for structural and cosmetic renovations. With both loan types, renovation work may begin immediately after closing.
FHA’s 203(k) loan is for primary residences only. It requires a minimum credit score of 500 with a down payment of at least 10 percent; a credit score of 580 or higher allows a down payment of 3.5 percent. These loans can’t be used for work that the FHA deems a luxury, such as installing a swimming pool.
There are two types of 203(k) loans: limited and standard. The limited is for renovations costing $35,000 or less that don’t require major structural work. The standard is for projects upwards of $35,000 or involving major structural work.
A 203(k) standard loan requires a HUD consultant, who helps the homeowner solicit and analyze bids and oversees inspections of the work. Consultants are often contractors, architects or inspectors, McMullen says. HUD has a tool to <a href="https://entp.hud.gov/idapp/html/f17cnsltdata.cfm">search for consultants</a>.
Fannie Mae’s HomeStyle loan may be used to buy and fix up a primary residence, second home or investment property. It requires a minimum credit score of 620. Minimum down payment is 3 percent or 5 percent, depending on whether the home is owner-occupied and the borrower is a first-time homebuyer or has a low to moderate income.
HomeStyle loans have few restrictions on improvements, other than that they “should be permanently affixed to the real property (either dwelling or land),” according to Fannie Mae guidelines. That means HomeStyle may pay for adding a swimming pool.
» MORE: <a href="http://www.nerdwallet.com/blog/mortgages/203k-and-homestyle-mortgage-loans-for-home-renovation?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=grantpearce&utm_content=588961" rel="nofollow">Ins and outs of 203(k) and HomeStyle loans</a>
Pitfalls to watch for
The most common problem is failing to get detailed cost estimates, McMullen says. To prevent cost overruns, make sure estimates are specific about materials, and include costs for inspections, permits and consultant fees (if applicable).
Another pitfall: over-improving the home. If every house on the block has one story and three bedrooms, it might be a bad idea to add a second story with two bedrooms. The home will no longer fit in with the neighborhood, and it will be difficult to get an accurate estimate of the home’s post-renovation value because of a lack of nearby comparable houses.
Getting started
After finding the house you want, choose a lender, decide on a loan type and hire a HUD consultant. Then, with the consultant’s guidance, get estimates from contractors. Your lender will need copies of the estimates.
The renovation work may begin immediately after you close the loan. When the improvements are complete, you’ll have your home the way you want it — sooner than you might have thought possible.
2022-12-16T03:54:42-07:002022-12-16T04:15:26-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5479Reasons To Sell Your House This Season [INFOGRAPHIC]<img src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/08122201/Reasons-To-Sell-Your-House-This-Season-NM.jpg" alt="Reasons To Sell Your House This Season [INFOGRAPHIC] | Keeping Current Matters" />2022-12-12T04:22:09-07:002022-12-12T04:30:23-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5477Mortgage Denied? Here’s How to RecoverMortgage Denied? Here’s How to Recover
When Philip Weiss, a systems engineer in New Jersey, saw the rustic house on a four-acre lot in the Poconos, it was love at first sight. He was preapproved for a mortgage, placed an offer on the home and the seller accepted.
Nearly one month later, the unexpected happened. Weiss says despite having a 700+ <a href="https://www.nerdwallet.com/article/mortgages/whats-exact-credit-score-need-buy-home?utm_campaign=ct_prod&utm_content=902485&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">credit score</a>, a low debt-to-income ratio and stable income, two past delinquencies on his credit report came back to haunt him, even though the accounts were paid in full. He was denied the mortgage loan.
Getting approved for a mortgage isn’t easy. About 460,000 home purchase mortgage applications for single-family homes — 8% of them — were denied in 2019, according to data submitted under the Home Mortgage Disclosure Act (HMDA).
If you’ve been denied, don’t despair: Getting turned down for a mortgage doesn’t have to be the end of your homeownership dreams. It’s possible to recover from a mortgage denial by taking these steps.
Find out why you were denied
The Equal Credit Opportunity Act says your lender has 60 days to give you a specific reason why your loan application was not accepted. Some of the most common reasons a mortgage application is denied, according to HMDA data, are:
Credit history.
High debt-to-income ratio.
Insufficient down payment.
As Weiss learned, a preapproval doesn’t guarantee your mortgage will close. In some cases, you might be denied when the loan enters underwriting and the lender examines every aspect of your financial profile.
Understanding the reason or reasons behind the rejection can help you figure out what to do next, says Bruce McClary, senior vice president of communications at the National Foundation for Credit Counseling.
Reason for denial: Credit history<br />Next step: Scour your reports
If you were denied a mortgage because of information in your credit report, you are entitled to a free copy so you can verify the report is correct. Until April 2021, consumers can get a free copy of their credit report every week from the three major credit bureaus at AnnualCreditReport.com.
Dispute any errors or outdated information by contacting the credit reporting agency online, or by writing a letter and sending it via certified mail. Submit copies of any supporting documentation to strengthen your case.
If the negative information on your report is correct, only time will get rid of it. Most negative items will stay on a credit report for up to seven years, including late payments, repossessions or a Chapter 13 bankruptcy.
If you were denied a mortgage because you lack a <a href="https://www.nerdwallet.com/article/mortgages/mortgage-no-credit-history?utm_campaign=ct_prod&utm_content=902485&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">sufficient credit history</a>, take steps to build your credit profile. Getting a secured credit card or having your on-time rent and utility bill payments reported to the credit bureaus are two options.
Reason for denial: Low credit score<br />Next step: Build it up
Some lenders have adopted stricter credit score requirements during the coronavirus pandemic, making it tougher to get a mortgage. But with some time and patience, there are ways to help your credit score.
Manage your credit responsibly by paying all of your bills on time, making more than the minimum payment or several small payments throughout the month.
Keep your existing credit card balances low, as well as the percentage of available credit you use.
Avoid applying for any new lines of credit, applying for multiple credit accounts at the same time or closing any unused cards.
Reason for denial: High debt-to-income ratio<br />Next step: Make a plan to reduce it
Lenders use your <a href="https://www.nerdwallet.com/article/mortgages/debt-income-ratio-mortgage?utm_campaign=ct_prod&utm_content=902485&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">debt-to-income ratio</a>, or DTI, to evaluate your ability to repay the loan. Your DTI is all of your monthly debt payments divided by your gross monthly income. The lower the DTI, the better. A good DTI to get approved for a mortgage is 36% or less.
If your DTI is high, lowering it before reapplying for a mortgage will raise your chances of getting approved. You can reduce your DTI by increasing your income, avoiding new debt or paying down your credit cards and loans.
Reason for denial: Insufficient down payment<br />Next step: Save more or seek assistance
Saving for a down payment can be tough, even if you’re only putting down 3%, the minimum requirement for a conventional loan.
Before reapplying for a mortgage, make saving a priority: You could automate transfers to your savings account every time you get paid, or sock away a windfall like a tax return to make progress toward your goal even faster.
First-time home buyers may also be able to take advantage of state and local <a href="https://www.nerdwallet.com/blog/mortgages/first-time-home-buyer-programs-by-state/?utm_campaign=ct_prod&utm_content=902485&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">down payment assistance programs</a> that provide funds as a grant or loan. Some programs may have income or credit score requirements to qualify.
Consider reapplying with another lender
Underwriting standards and guidelines vary by lender. McClary says it makes sense to shop multiple lenders to increase your chances of getting approved. He says you can limit the impact to your credit score by applying with several lenders within a 30- to 45-day period.
Weiss was discouraged when his application for a conventional mortgage was denied, but he was not deterred. He applied with another lender and discovered he could qualify for a loan backed by the Federal Housing Administration. Going through another mortgage application process was cumbersome, but Weiss says it was worth it.
He closed on his dream home in early November 2020 and is thrilled to finally be a homeowner.
“It’s a little daunting having a mortgage, but I’m truly excited,” Weiss says.2022-12-11T17:26:17-07:002022-12-11T17:31:33-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5462What’s Going on with Home Prices? Ask a Professional.If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">selling</a> a home this year, you may have questions about what’s happening with home prices today as the market cools. In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">home price moderation</a> will depend on factors like supply and demand in each local market.
That means, moving forward, home price appreciation will continue to vary by location, with more significant changes happening in overheated areas. Here’s a quick snapshot of what the experts are saying:
Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/2023-national-housing-forecast/" target="_blank">says</a>:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/pandemic-boom-markets-cooling-the-fastest" target="_blank">says</a>:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Taylor Marr, Deputy Chief Economist at Redfin, <a href="https://twitter.com/tayloramarr/status/1578082283281596418" target="_blank">says</a>:
“For those bearish folks eagerly awaiting the home price crash, you’ll have to keep waiting. As much as demand is pulling back supply is as well reducing downward pressure on prices in the short run.”
John Paulson, Founder of Paulson & Co., <a href="https://twitter.com/NickTimiraos/status/1574458786214948865" target="_blank">says</a>:
“It’s true – housing may be a little frothy. So housing prices may come down or they may plateau . . .”
What Does This Mean for You?
The best way to get the answers you need is to lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">real estate advisor</a>. They’ll be able to explain the latest trends in your specific market so you can make a confident and informed decision on your next step toward buying or selling a home.
Bottom Line
If you have questions about what’s happening with home prices today, let’s connect so you have the latest on our local market.2022-12-08T05:36:08-07:002022-12-08T05:45:23-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5458What You Want To Know If You’re Pursuing Your Dream of HomeownershipIf you’re a young adult, you may be thinking about your goals and priorities for the months and years ahead. And if <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">homeownership</a> ranks high on your goal sheet, you’re in good company. Many of your peers are also pursuing their dream of owning a home. The <a href="https://himaxwell.com/resources/ebooks-white-papers/1h-2022-millennial-genz-borrower-sentiment-report/#downloadnow">2022 Millennial & Gen Z Borrower Sentiment Report</a> from Maxwell says:
“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”
Let’s take a look at why homeownership makes the top of so many young buyers’ to-do list and what you need to consider to achieve your goals if you’re one of them.
Top Motivators To Buy a Home
Before you start the homebuying process, it’s helpful to know why homeownership is so important to you. The survey mentioned above sheds light on some of the top reasons why younger generations are looking to buy a home. It finds:
95% believe the <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">cost of renting</a> is too high
35% think owing a home is an important <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">wealth building tool</a>
16% seek the sense of security owning a home provides
37% plan to use it as an <a href="https://www.simplifyingthemarket.com/2022/11/03/do-you-believe-homeownership-is-out-of-reach-maybe-it-doesnt-have-to-be/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">investment property</a>
No matter which of these resonates the most with you, know there are many financial and non-financial reasons why you may want to buy a home. While your top motivator may be different than that of your friends, they’re all equally valid and worthwhile.
Key Obstacles and How To Overcome Them
Whether your <a href="https://www.simplifyingthemarket.com/2022/10/07/the-journey-to-buy-a-home-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">homeownership</a> goals come from the heart or are driven by financial aspirations (or both), it can still be hard to know where to start when you’re looking to buy a home. From understanding the homebuying process, to getting <a href="https://www.simplifyingthemarket.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">pre-approved</a>, and exploring <a href="https://www.simplifyingthemarket.com/2022/10/31/taking-the-fear-out-of-saving-for-a-home/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">down payment options</a>, it’s a lot to wrap your head around.
The same Maxwell survey also reveals key challenges for potential buyers. Thankfully, the knowledge and guidance of a trusted real estate professional can help you overcome both. Here’s a look at two of the hurdles potential homebuyers say they face:
1. The Mortgage Process Can Be Intimidating
In the Maxwell study, 33.37% said one of their obstacles was that the mortgage process is confusing or difficult to understand.
An <a href="https://resources.ownup.com/home-buyer-mortgage-shopping-study-overview-2022?utm_content=normal" target="_blank">article</a> by OwnUp helps explain why the <a href="https://www.simplifyingthemarket.com/2022/10/28/applying-for-a-mortgage-doesnt-have-to-be-scary-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">mortgage process</a> is so challenging for buyers:
“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.”
While you may be tempted to do a quick search online to find instant answers to your questions, it may not get you the information you need to understand the full picture. Especially when it comes to financial advice, you want to lean on a true expert. Having trusted professionals on your side can help you to learn what it takes to achieve your dream of homeownership. Not to mention, an expert can give you advice specific to your situation, not generic advice like you’ll find online.
2. It’s Hard To Know How Much You Need To Save
In the Maxwell study, 45.75% believe they don’t have enough saved to cover their down payment or closing cost expenses.
What you may not realize is that, today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure. A report from Down Payment Resource <a href="https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/" target="_blank">says</a>:
“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”
Additionally, as the housing market cools, buyers are regaining some <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">negotiation power</a> and more sellers are willing to work with buyers to help with closing costs. Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.
Bottom Line
If you’re serious about becoming a homeowner, know it may be more in reach than you think. Lean on trusted professionals to help you overcome challenges and prioritize your next steps.2022-12-07T08:09:51-07:002022-12-07T08:16:27-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5424Your House Could Be the #1 Item on a Homebuyer’s Wish List During the HolidaysEach year, homeowners planning to make a move are faced with a decision: sell their house <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">during the holidays</a> or wait. And others who have already listed their homes may think about removing their listings and waiting until the new year to go back on the market.
The truth is many buyers want to purchase a home for the holidays, and your house might be just what they’re looking for. Here are five great reasons you shouldn’t wait to sell your house.
1. While the <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">supply of homes</a> for sale has increased this year, there still aren’t enough homes on the market to keep up with buyer demand. As Nadia Evangelou, Senior Economist & Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.msn.com/en-us/money/realestate/soaring-mortgage-rates-get-all-the-attention-but-a-decade-of-underinvestment-in-housing-is-the-big-culprit-behind-the-country-s-affordability-crisis/ar-AA13H2ze" target="_blank">explains</a>:
“There’s still this gap between demand and supply because we were underbuilding for many years. . . . So now we see demand is slowing, but it still outpaces supply.”
2. Serious homebuyers are out looking right now. Millennials are driving homebuying demand today, and many are eager to make a purchase. Mark Fleming, Chief Economist at First American, <a href="https://www.thestreet.com/investing/housing-market-slump-forecast-continues-into-late-2023" target="_blank">explains</a>:
“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
3. The desire to <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">own a home</a> doesn’t stop during the holidays. In fact, homes decorated for the holidays appeal to many buyers. Plus, purchasers who look for homes during the holidays are ready to buy.
4. You can restrict the showings in your house to days and times that are most convenient for you. That can help you minimize disruptions, which is especially important this time of year.
5. Rents have <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" target="_blank">skyrocketed</a> in recent years. And, many buyers are looking to escape <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">rising rents</a> and avoid falling into the rental trap for another year. As an article from <a href="https://zillow.mediaroom.com/2022-09-29-Expert-panel-Expect-a-buyers-market-before-the-end-of-2023" target="_blank">Zillow</a> says:
“Over the next 12 months, rents are expected to grow more than inflation, the stock market and home values.”
Your home could be their ticket to leaving renting behind for good.
Bottom Line
There are still many reasons it makes sense to list your house during the holiday season. Let’s connect to determine if selling now is your best move.2022-11-29T02:50:30-07:002022-11-29T02:54:55-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:54236 Ways to Avoid Delays on Your Remodel6 Ways to Avoid Delays on Your Remodel
Unexpected delays can quickly turn a fun <a href="https://www.nerdwallet.com/article/mortgages/estimate-the-cost-of-your-home-renovation?utm_campaign=ct_prod&utm_content=902489&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">home remodeling project</a> into stressful misery. But you’ve got more power than you think to keep your project on schedule — and it all comes down to what you do before a single nail is hammered. These six proactive tips will help you avoid remodel problems so your project runs smoothly.
1. Choose your team carefully
When you <a href="https://www.nerdwallet.com/article/mortgages/home-improvement-diy-or-hire-a-pro?utm_campaign=ct_prod&utm_content=902489&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">hire a contractor</a>, the burden of verifying their credentials falls squarely on your shoulders. Start by checking the Better Business Bureau’s website for red flags, as well as visiting LexisNexis online (which requires a subscription) to see if any lawsuits have been filed against potential contractors.
It’s also important to get valid references, stresses David Merrick, president of Merrick Design and Build in Kensington, Maryland. Rather than simply trusting online reviews, Merrick suggests doing some legwork.
“Visiting a project that is actually in progress is the best way to get a reference,” says Merrick, who also serves as the chairman of the Government Affairs Committee for the National Association of the Remodeling Industry’s Metro D.C. chapter. “So if you’re serious about hiring a contractor, and you want to take the time to check their references, ask to talk to [a current client] or visit a job they have in production.”
Merrick goes on to explain that homeowners should also check contractors’ license statuses online and “request a certificate of insurance. This comes directly from the insurance agent without going through the contractor’s hands, so you know it’s not forged.” This official document also lets you know whether the contractor’s policy is sufficient for your project’s size, and if workers’ compensation coverage is included.
2. Build in a budget cushion
Setting aside money for unexpected costs could help prevent your project from being delayed indefinitely.
Although good contractors usually spot evidence of <a href="https://www.nerdwallet.com/article/mortgages/save-on-home-improvements?utm_campaign=ct_prod&utm_content=902489&utm_medium=wire&utm_source=syndication&utm_term=grantpearce" target="_self" rel="nofollow">costly problems</a> during the initial estimate, some issues don’t reveal themselves until the walls are opened up, explains Rebecca Davila, owner of Building Dreams, a construction and renovation company in Hawthorne, California. For this reason, she suggests homeowners protect themselves by factoring in a substantial budget cushion.
“You have to look at having at least 20% to 25% [more] money on the side of your project,” she advises, “just in case of unforeseen conditions.”
3. Order materials early
Backorders and slow order fulfillment can stop renovations in their tracks. That’s why it’s essential to select and order tiles, fixtures and other materials your contractor requests as early as possible. It’s also crucial to choose products that are in stock and can be delivered quickly.
“Make sure you have everything ready and available,” Davila says. “You don’t want to order something and find out you’re on hold for six weeks, and your whole project stops for that item.”
4. Pay attention to permits
To maintain building codes and regulations, renovations often require permits. Be aware that the larger your project is, the longer it may take for permit approval — and for very large jobs, it could take months.
Professional contractors generally have a good feel for permit requirements and lead times and should know when to file to keep your project on schedule. Merrick warns that if a contractor asks you to get a permit yourself, that’s a major red flag.
“Any time a contractor asks a homeowner to pull a permit, there’s a reason,” he cautions. “They’re either lazy or they’re not properly licensed. They’re usually doing it because they’re not licensed.”
Having your contractor pull permits is also preferable for liability reasons. “The contractor’s name should be on it because they should be liable for it,” Davila says.
5. Get everything in writing
Before any work begins or money changes hands, you’ll need to sign a detailed contract. This ensures that everyone is on the same page and protects against being left high and dry with your project unfinished.
Renovation contracts should cover all the work being done and materials used, along with a clear payment schedule based on either time intervals or project completion levels. Know that a reputable contractor will never ask for full payment upfront or expect your final payment before the entire project is completed to your satisfaction. If you don’t understand the details of your contract, consider having a lawyer look it over.
6. Avoid change orders
One of the simplest ways to prevent remodeling delays (and budget disasters) is to be sure of what you want and stick with it. Changing your mind midstream results in change orders, which are contract amendments that occur when a customer decides to change project details like the location of a wall or the type of flooring.
Change orders not only create delays when new materials don’t arrive on time; they also can easily derail your well-planned budget. As Davila explains, “When a contractor gets a job, that’s when their prices are the lowest. When a change order comes in, they know that you have to do it so they can charge you anything.”2022-11-29T02:42:32-07:002022-11-29T02:49:54-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5294What Homeowners Want To Know About Selling in Today’s MarketIf you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">selling your house</a>, you’re likely hearing about the cooling housing market and wondering what that means for you. While it’s not the peak intensity we saw during the pandemic, we’re still in a sellers’ market. That means you haven’t missed your window. Realtor.com <a href="https://www.realtor.com/advice/sell/home-selling-rules-youve-heard-lately-that-you-might-want-to-break/" target="_blank">explains</a>:
“. . . while prospective home sellers may lament that they missed their prime window, in reality, this is still a terrific time to sell. In fact, according to a recent Realtor.com® home seller survey, 95% of sellers who sold their home in the past year got more than they paid for it.
Nonetheless, some of the more prominent pandemic trends have changed, so sellers might wish to adjust accordingly to get the best deal possible.”
The key to success today is being realistic and working with a trusted real estate advisor who can help you set your expectations based on where the market is now, not where it was over the past few years.
Here are a few things experts say today’s sellers need to consider.
Be Willing To Negotiate
At the peak of the pandemic frenzy, sellers held all the leverage because inventory was at record lows and buyers were willing to enter bidding wars over homes that were available. This year, the <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">supply of homes</a> for sale has increased as the market cooled. Even though inventory is still low overall, buyers today have more options, and with that comes more <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">negotiation power</a>.
As a seller, that means you may see more buyers getting an inspection, requesting repairs, or asking for help with closing costs today. You need to be prepared to have those conversations. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.realtor.com/advice/sell/reasons-home-sales-fall-through/" target="_blank">says</a>:
“Today’s market is different than it was just six months ago. . . Sellers that want the contract to move forward should be willing to work with the buyer. . . Consider helping with the closing costs or addressing many of the items on the home inspection list.”
Price Your Home at Market Value
It’s not just that the number of homes for sale has grown this year. <a href="https://www.simplifyingthemarket.com/2022/10/27/millennials-are-still-a-driving-force-of-todays-buyer-demand/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">Buyer demand</a> has also pulled back in light of higher <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">mortgage rates</a>. As a result, pricing your house appropriately so you can catch the eyes of serious buyers is important. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-trends/" target="_blank">explains</a>:
“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
You don’t want to overreach with your price and deter buyers. At the same time, you don’t want to undervalue your home and leave money on the table. This is another area where an <a href="https://www.simplifyingthemarket.com/2022/06/24/why-an-agent-is-essential-when-pricing-your-house-infographic/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">agent’s expertise</a> comes in handy.
Think About Your First Impression on Buyers
Buyers have more options and are more particular about their investment since it costs more to buy a home given today’s mortgage rates. As a result, you need to make sure your house shows well. As an article from realtor.com <a href="https://www.realtor.com/advice/sell/how-home-sellers-can-prepare-for-a-recession-and-still-sell-their-home/" target="_blank">says</a>:
“To stand out in the market, sellers should make their home attractive to buyers, which usually means some selective updates.”
This could include everything from staging the home, to making small <a href="https://www.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">cosmetic updates</a>, tackling repairs, or undergoing renovations. A trusted real estate professional will help you assess what may be worthwhile to do compared to other recently sold homes in your area.
Bottom Line
To sum it all up, your house should still sell today and move quickly if you’re realistic about today’s market. As a <a href="https://zillow.mediaroom.com/2022-10-31-Pressure-is-back-on-sellers-to-attract-buyers-as-demand-softens" target="_blank">press release</a> from Zillow puts it:
“. . . sellers need to do things right to attract the attention of these buyers — pricing their home competitively and making their listing attractive to online home shoppers.”
For expert advice on how to quickly sell your house in a shifting market, let’s connect.2022-11-22T15:17:48-07:002022-11-22T15:29:14-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5287Mortgage Rates Will Come Down, It’s Just a Matter of TimeThis past year, rising mortgage rates have slowed the red-hot housing market. Over the past <a href="https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october" target="_blank">nine months</a>, we’ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power for consumers. And, this month, the <a href="https://www.freddiemac.com/pmms/archive" target="_blank">average rate</a> for financing a home briefly rose <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-rise-above-seven-percent" target="_blank">over 7%</a> before coming back down into the high 6% range. But we’re starting to see a hint of what mortgage interest rates could look like next year
Inflation Is the Enemy of Long-Term Interest Rates
As long as inflation is high, we’ll see higher mortgage rates. Over the past couple of weeks, we’ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.builderonline.com/data-analysis/a-look-at-the-relationship-between-the-10-year-treasury-and-30-year-mortgage-rate_o" target="_blank">says</a>:
“The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”
What Does This Mean for the Future of Mortgage Rates?
As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We’ve seen nods of this over the past couple of weeks. As the Federal Reserve works to bring inflation down, mortgage rates will come down as well. Bill McBride from Calculated Risk <a href="https://calculatedrisk.substack.com/p/housing-and-inflation" target="_blank">says</a>:
“My current view is inflation will ease quicker than the Fed currently expects.”
As we look toward next year, we certainly hope he’s right.
Bottom Line
Mortgage rates will come down – it’s just a matter of time. The hope is we continue to see more positive news on inflation, and that’ll bring mortgage rates down. This will give prospective homebuyers more buying power and lead to more homeowners throughout the country.2022-11-22T05:50:07-07:002022-11-22T05:57:27-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5244VA Loans: Making Homes for the Brave Achievable [INFOGRAPHIC]<img src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/11/09154358/VA-Loans-Making-Homes-For-The-Brave-Achievable-MEM.png" alt="VA Loans: Making Homes for the Brave Achievable [INFOGRAPHIC] | Simplifying The Market" />
Some Highlights
<a href="https://www.benefits.va.gov/HOMELOANS/documents/docs/VA_Buyers_Guide.pdf" target="_blank">VA Loans</a> can help make <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">homeownership</a> possible for those who have served our country.
These loans offer <a href="https://www.benefits.va.gov/REPORTS/abr/docs/2021_loan_guaranty.pdf" target="_blank">great benefits</a> for eligible individuals and can help them buy a VA-approved house or condo, build a new home, or make improvements to their house.
Homeownership is the American Dream. One way we can honor and thank our <a href="https://www.simplifyingthemarket.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=15254-9542e274d2d9fa8a80c682c004b9b73f">veterans</a> is to ensure they have the best information about the benefits of VA home loans.
2022-11-13T07:58:13-07:002022-11-13T08:07:23-07:00Jacob Sanderstag:jacobsandershomes.com,2012-09-20:5242The 3 Things You Must Do Before Listing Your Home For SalePlanning to sell your home this year? You're probably feeling both anxious and excited about it. After all, it is where you’ve spent wonderful years building your family and your dreams, all of which bear unforgettable memories. But if you’ve already come up with the painful decision to list your house in the market, you need to set aside a couple of weekends to prepare it. Your main goal now is to make a good impression on potential buyers to increase your chances of receiving a solid offer and sell your home fast.
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MUST-DO #1. Declutter, de-personalize, and clean the house.
“Because first impressions mean a lot…”
Cleaning and sprucing up your home shouldn't be underestimated if you want to sell your home quick and for top dollar. You’d want buyers to turn up and see the home, not just to drive past it. You can ensure they’ll do by accomplishing these tasks:
Eliminate clutter
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If you're still having a hard time starting on the task, just think of it as a head start on the packing you'll eventually have to do when you move. Purge your belongings and storage spaces of unwanted and unnecessary items. If you don’t want certain things to be thrown away, consider donating them to charity or community groups so they can be of use to others. A garage sale is also a good idea if you need some cash.
Decluttering will make sure that when buyers visit your home, they will be able to focus on its features instead of seeing all the junk and knickknacks. Clean and organized closets, cabinets, and drawers are good signals for buyers who will be checking every storage space available.
De-personalize the space
<img class="thumb-image loaded" data-src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1576009619934-JQ776Q3JZK5EP3GUU4ZU/image-asset.png" data-image="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1576009619934-JQ776Q3JZK5EP3GUU4ZU/image-asset.png" data-image-dimensions="128x128" data-image-focal-point="0.5,0.5" alt="" data-load="false" data-image-id="5defff93c4069972e974dad0" data-type="image" data-image-resolution="300w" src="https://images.squarespace-cdn.com/content/v1/5b9ad876b105988967b0d652/1576009619934-JQ776Q3JZK5EP3GUU4ZU/image-asset.png?format=300w" />
Indeed, letting go can be very difficult. You've spent years living in your home, only to have your belongings packed away in a day. But once you decide to sell your home, you have to make that emotional break. You need to disassociate yourself with the home and think of it as a product that you need to sell, no matter how difficult it is. Remove family photos, photo albums, personal belongings, and any distractions. Your goal is to create a blank canvas on which buyers can visualize themselves and their family living in it and make them feel like they belong to the house. Let them imagine hanging their own photos on the walls and decorating it however they want. Just leave a few nice, framed photos around the home that will make it appear inviting.
Likewise, if you want to take certain fixtures and built-in appliances with you, now’s the time to remove them. If that stunning chandelier is a family heirloom, simply take it down and replace it with an understated piece.
Deep clean
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This step might be the most awful and time-consuming, but it will provide striking results in the overall appearance of your house. If it's been years since you’ve done some spring-cleaning, expect the process to be tedious. Here are some things you need to do:
* Wash the windows inside and out.
* Pressure-wash the home’s exterior and the sidewalk.
* Polish the counters, faucets, mirrors, and other surfaces.
* Clean and scrub the bathroom, mop the floors, and clean the rugs and carpets.
Also, make sure to tackle all nooks and crannies, even the hard-to-reach surfaces behind closets and cupboards. Ensuring that your home is as clean as possible might not be fun, but it will make things a lot easier for you when showings start.
MUST-DO #2. Take care of minor repairs.
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Once you've successfully cleaned up the home, it’s time to take care of the minor problems. Fixing up these small things can go a long way to ensuring your house looks at its best. If you can’t DIY, make a list of the necessary repairs and call a handyman to do the job. Otherwise, even a missing doorknob or a lightbulb can have set a negative mindset on buyers, prompting them to think “What else is missing here?” and cause them to look for other defective areas throughout the home. They might conclude your home hasn’t been well taken care of, which can turn into a huge deal-breaker.
These are all the basic updates you might be able to handle yourself:
* Replace burned-out lightbulbs.
* Fix broken windows and damaged window screens.
* Repair loose cabinets, locks, handles, and doors that don’t close properly.
* Fix any leaky faucets.
* Replace cracked floor or counter tiles.
* Patch any holes in the wall.
* Fix chips or cracks in paint.
* Consider painting your walls in neutral colors, especially if they’re currently in a screaming red or purple.
* Give your front door a fresh lick of paint.
* Fix and straighten up broken fences and the mailbox.
Further, this is also the time to note any major repairs and start looking into your options. Major home improvement projects such as re-doing an entire roof, remodeling a kitchen or bathroom, and updating insulation definitely won’t come cheap, but they can significantly add value to your home.
MUST-DO #3. Find a great real estate agent.
“When you hire people who are smarter than you are, it proves you are smarter than they are.” - Henry Ford
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Resist the urge to sell your home by yourself or what they call “For Sale By Owner” and pocket the cash that would otherwise go to the seller's agent. No matter how tempting it is, enlist the help of a professional real estate agent to list your home. In the 2018 NAR Profile of Home Buyers and Sellers, FSBOs typically sell for less than the selling price of other homes, which means you could be sacrificing precious time and money.
Do some research on who has some good track record and is highly knowledgeable about your specific market. Moreso, choose an agent who could be a friend in this stressful situation but also has a concrete plan on how he or she will sell your home. Set clear expectations with your agent about your goals so that you know exactly what to anticipate, especially when showing requests start.
2022-11-13T07:11:48-07:002022-11-13T07:27:38-07:00Jacob Sanders