Facts All Agents Should Know When It Comes to the Green House Market

 What are simple ways to make sure my new home is cared for?

-Focus on home decor that pulls double-duty
-Make sure your insurance protects your needs
-While you have a blank slate, create an organized foundation
-Learn climate-specific maintenance tips
-Add or update safety monitors
-Assess landscaping and head-off concerns
-Get to know your neighbors
-Put household check-ups on the schedule

Buying a new home is a big step in life and is both an exciting and nerve-wracking time. Many new homeowners feel very overwhelmed not with just the buying process but owning their own home and caring for it. In order to feel peace of mind, there are several things you can do to maintain your new home from the start.

1. Focus on home decor that pulls double-duty

When you start to move your belongings into your new house becomes your home. Remember to prioritize multi-functional products. For example, a nice ottoman can also act as a storage space. You want to limit the clutter from the beginning. Studies show that limiting excess items can boost your mental health. Not only can some things boost your mental health but your physical health as well. House plants are natural air purifiers. The snake plant takes indoor air and filters it by taking up to four toxins out of the air plus it changes carbon dioxide into oxygen.

2. Make sure your insurance protects your needs

When you are shopping around for home insurance, make sure that you choose a plan that fits your unique home's needs. If you have an expensive piano, you will want to make sure this is covered. There are many insurance companies where you can get a quote and a new policy online. You can also save if you bundle things such as your car and home insurance.

3. While you have a blank slate, create an organized foundation

Remember to make a plan for each item when moving all your stuff into your new home. If you are moving from another home you will be tempted to put everything in the same room it went in in the new home. Add things such as closet organizers before moving all your items into the closet, and racks in the garage.

4. Learn climate-specific maintenance tips

If you are moving from New York to Miami, it might be a good idea to study the average tips and weather for each season. In New York, you have to winterize your home, whereas in Miami you do not. You will need to look into different pest maintenance in the South.

5. Add or update safety monitors

A fire can happen anytime day or night so having a smoke and carbon monoxide detector can save a homeowner's life. These should be in every home. When installing, be sure to follow the installation guidelines. You want to make sure they are strategically placed throughout your house and always make sure to test them monthly. Another safety measure is to install a home-monitoring system or a burglar alarm.

6. Assess landscaping and head-off concerns

Tree branches hanging over your roof can be a hazard. A heavy tree branch can fall on a roof during bad weather or make a great extension for pests to enter a home. Look around your home and assess what would cause a threat to the exterior of the house or your property if a storm were to occur. The leading cause of homeowners' insurance claims is weather-related incidents.

7. Get to know your neighbors

It is always nice to know your neighbors but it can also have an advantage when it comes to safety. When you are away it is nice to have your neighbors that will keep an eye out on your place. Neighbors can also help with taking out your trash or bringing in the mail when you are out of town.

8. Put household check-ups on the schedule

Just like we need an annual check-up with the doctor, your home needs one as well. Put a household check-up on your calendar. Go around and look at what needs to be done every season. Check the landscaping, test the smoke detectors, make sure your HVAC filters are good and even take a minute to declutter.

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 A drop in growth pushed the housing share of the economy up at the beginning of 2022. The overall GDP dropped at a 1.4% annual rate. This was due to the increased inventories and a jump in imports. The housing's share of GDP rose to 16.7%.

The beginning of the year also saw a 4.8% increase in GDP in terms of residential fixed investment. There will be challenges this year for home construction. There will be a higher interest rate due to tightening monetary policy. RFI added 10 basis points to the headline GDP growth rate at the start of 2022.

Housing activities add to the GDP in two ways. First through RFI which stands for residential fixed investment. This measures how home building, multifamily development, and remodeling contribute to GDP. It can do this through the construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes, and brokers’ fees.

Second is the measure of house services and how it affects GDP. This includes gross rents (including utilities) paid by renters, owners’ imputed rent (an estimate of how much it would cost to rent owner-occupied units), and utility payments. In the first quarter of 2022 housing services made up 11.9% of the economy, totaling $2.9 trillion on a seasonally adjusted annual basis.

This year the recent interest in housing has definitely affected the economy in a positive way. The shares are near historic norms.

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August Sees A Rise In New Home Sales

 Inventory has been extremely low and buyers are in high demand and some prospective home buyers have been frustrated with the current market. This is not the case with the new home sales statistics. According to the Census Bureau, new home sales rose 1.5% in August 2021.

August saw a solid improvement in new home sales. The median home price was up 20.1% from August 2020 and is now $390,900. In fact, new home sales rose for the second consecutive month in August, the latest sign that homebuilders are recovering from problems that plagued them earlier in the year. The increase also reflects homebuilder sentiment that is on the rise as housing demand remains robust and the cost of lumber continues to ease.

New home builders still have the problem with building materials, the supply chain and labor shortages. These factors are also causing home prices to soar across the United States. This coupled with low inventory is not a good issue for both the builders and home buyers. It is reported that total for-sale inventory which includes new and existing homes has dropped over 20% from August 2020.

If you are in the market for a new home or want to sell your current home now is a great time. Even with the shortage of inventory, a professional sales agent can help you find the right home for the right price.

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If Your Considering Refinancing Your Home Here Are Six Important Things You Need To Know

  

There are several reasons a home may want to refinance. Homeowners can use the new loans to lower their interest rates, pay off mortgages at a faster pace or turn their home equity into cash. Before choosing this path, you need to makes sure that refinancing is right for you. Here are six things to consider to help you with the answer.

1. Refinancing is a process

Refinancing typically takes 30 to 45 days from start to finish. Once you choose a lender they will need to assess your income, assets and credit history. You will need to gather all your documents such as pay stubs and bank statements. An appraisal will also be done for the new mortgage. Make sure to clean your home and make sure your landscaping is in top shape.

2. Time is of the essence

Currently, we are at historic lows and this is a perfect time to refinance. This may not always be the case. It is smart to lock in a low monthly payment as well as a low rate. Once rates go up, the savings might not be there.

3. There are many reasons to refinance

A low interest rate is a big reason to refinance, however, it is not the only reason. The term of the loan is another factor, if you’re looking for a lower monthly outlay, a long-term loan will likely work best. This is not the case if you want to repay as soon as possible because you might get locked into a higher rate. Terms are important but other reasons also include changing your loan type, cashing out your equity or removing a name (in cases such as divorce).

4. You're not tied to your existing lender

You can always go with a new lender when refinancing. Once you have paid your original mortgage off with your lender you are free from obligation to them. This gives you an opportunity to shop around for the best terms and rates.

5. You can reinvest in your existing property

Many homeowners take the cash out equity and turn around and make improvements, renovations or additions to their home. These changes not only benefit your living situation but also can add more value to your home.

6. The decision is yours alone - so make it an educated one

Everyone has different goals and personal interests in life. This is also true with home purchases and refinancing. Refinancing is a personal decision and all options should be explored. If you are thinking of refinancing, contacting a lender who can help you with all aspects of home refinancing is the first smart choice of the process.

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Tips On How To Budget For Home Renovations

 

Whether it is a full renovation or just some minor updates, it is always important that you budget for your home remodel. The rule of thumb is that most upgrades or renovations increase your home’s value but this is not always the case if you do not stick to your budget and renovation plan. Here are five things to do when determining your budget for the project.

 

Estimate home renovation costs

Just like any other investment you do not want to put more money into the project than you can get in return. First, determine the value of your home.  If you are updating specific rooms, you will want to determine the percentage of worth of the room.

A kitchen accounts for 10 to 15 percent of the home’s total value. For example, if your home is worth $200,000 you will want to spend no more than $30,000 on the total kitchen project. If you are looking for the biggest bang for your buck, then a mid-range bathroom remodel will get you the best return on your investment.

Consider home remodeling loan options

It can take a lot of cash to do a big renovation and this can sometimes detour homeowners. There are many loans that are available for this specific purpose.

One option is to refinance your home. Right now mortgage rates are at an all-time low, so you have the option of refinancing for an amount higher than you currently owe. You will be able to pay off your current loan and have cash left over for your home improvements.

Another option is to Cash-out refinance by taking your existing loan and refinancing it for more than you currently owe. You will then have enough money to pay off your original mortgage and make your renovations.

Many homeowners do not want to take the refinancing option, but they still have options. A home equity line of credit (HELOC) that works like a credit card is a way to go. You are given a set limit that you can borrow against.

A home equity loan can also get you the money you need for your projects. With this option, you take out all of the cash at one time. This will be in addition to your original mortgage.

Get home renovation quotes from contractors

It is always a wise decision to go into a project with some sort of estimate on how much the project will cost. A contractor will be able to give you an estimate based on your project. You will want to allow for more cost because a project usually costs more than what the estimate states. The more information you are able to give a contractor the closer the estimate can be to the true cost.

Just like shopping around for the best price or best product, it is always wise to get several quotes from several different contractors. Never just take the lowest bid, make sure you know what materials are being used and the process the contract will take to complete your project. Lower bids tend to be a sign that the contractor cuts corners.

Stick to the home remodeling plan

Just like a trip to the grocery store, to stay on budget you have to stick to your grocery list. It is always a temptation to add little projects here and there to your current remodeling project. These last-minute additions can add up. Remember that every time you change your mind even little changes can be costly to your budget.

Account for hidden home renovation costs

As mentioned before an estimate is only an estimate. The project might look like an easy fix, but there might be other issues lurking beneath the surface. Always give yourself a cushion upfront. Every contractor can agree that most renovation projects usually cost more due to hidden imperfections. Add 10 to 20 percent to your estimated project cost.

Home improvements are in most homeowners’ reach, the trick is figuring out how to plan a home renovation that doesn’t break the bank. It is best to consult with professionals such as a mortgage lender and contractor to help with estimated cost and obtaining the money to give the go-ahead.

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The Before, During and After Questions To Ask a Home Inspector About a Home Inspection

A home inspection is an important step in the process when purchasing a home.  Whether it is new construction or resale, you want to make sure the home is in tip-top shape.  Here is a list of questions to ask before, during and after the home inspection.

Questions To ask before the inspection

1. What do you check?

“A lot of people don’t know exactly what a home inspector is going to do,” says Frank Lesh, executive director of the American Society of Home Inspectors.

According to Lesh a home inspector checks 1,600 features on a home!  This includes most everything from the roof to the foundation.  It is a bonus to know what an inspector can and can’t do.

2. What don’t you check?

Even though it seems like an inspector inspects most everything, this is not the case. There are limits to the job. For example, a wall can only be visually inspected and not cut into. If an inspector thinks there is an underlying problem, they can flag the potential problem so you can hire an expert to look into it.

3. What do you charge for a home inspection?

There is a range of pricing when it comes to a home inspection.  They usually cost between $300 to $600 depending on the location of the house, the size of the house and the inspector. Remember ask what forms of payments are accepted as you will have to pay the inspector the day of the inspection.

4. How long have you been doing this?

The more experience the inspector has, the more likely he will have seen many different scenarios.  A newer inspector doesn’t mean a less qualified inspector, they just might not have as much experience especially with an older home that might have some unusual features.

5. Can I come along during the inspection?

An inspector should expect you to be there. A good inspector will explain some of the home’s systems and how they work when inspecting your home. Sometimes explaining things in person might help with understanding the report. It is a bad sign when an inspector does not want you present at the inspection.

6. How long will the inspection take?

If you work, then you will need to know how long it will take for the inspection because they usually take place during the workweek. It might only be a ballpark figure because it will depend on the condition of the home.

7. Can I see a sample report?

Sometimes a report can be overwhelming especially for a first-time homebuyer. A sample report can be beneficial because it can get you familiarized with what you can expect to see on your home’s inspection report.

Questions to ask during a home inspection

1. What does that mean?

When an inspector is going through your home they will go slowly to make sure they double-check that everything is in working order.  If there is a problem, the inspector will point it out and explain what is wrong and needs to be fixed.

An inspector does this every day so they are very familiar with the lingo.  If you do not understand something they are explaining ask questions. If the inspector points out a problem, ask how difficult it is to repair and how much it will cost. Sometimes the buyer can go back to the seller and ask for things the inspector finds to be fixed.

2. Is this a big deal or a minor issue?

Purchasing a home is a big investment and commitment.  When an inspection report points out problems whether big or small it can make you second guess your decision. An HVAC system that is not up to code can sounds awful to you but it might not be as bad as you think.  Before panicking, ask the inspector if they believe the problem is a big deal. If they do, you can walk away or negotiate repairs with the seller.

3. What’s that water spot on the ceiling, and does it need a repair?

Anything you see that you think might be off, ask the inspector about it. This is a big purchase and you should not shy away from asking an inspector for explanations. A good inspector will ask you if there are any concerns you have with the home before they start their inspection.

4. I’ve never owned a house with an HVAC/boiler/basement. How do I maintain them?

“Inspectors are used to explaining basic things to people. If you have an inspection question, ask it,” Lesh says. “Don’t expect your inspector to teach you how to build a clock, but we are happy to answer and explain how things work.”As mentioned before, this is a perfect time for a professional to explain how things work.

5. What are your biggest concerns about the property?

When the inspector has finished, they should give you a general summary of their findings. The written report which will come later will be more thorough.  This is a great time to ask the inspector their thoughts and concerns on the problems found. If an electrical issue is found, it might be a good idea to have an electrician come and inspect the problem.

Questions to ask after the inspection is completed

1. I don’t understand…can you clarify?

You will receive the report a day or two after the inspection. The report will be a detailed list of problems that are found along with photos of the problem areas. If you do not understand any of the photos or explanations ask the inspector to explain.

2. Is there any problem in this house that concerns you, and about how much would it cost to fix?

Most problems found in an inspection should not be a deal-breaker.  An inspector can help you determine if it is a minor problem with any easy fix or if it is something drastic that would make a buyer walk away.

“The inspector can’t tell you, ‘Make sure the seller pays for this,’ so be sure you understand what needs to be done,” says Lesh.

3. Should I call in another expert for a follow-up inspection?

If there is a major issue, a second opinion from an expert in the field would be a good idea. If an electrical issue has been flagged, an electrician can come in and see exactly what the problem might be and how much it will cost to fix it. A Realtor can then negotiate with the seller to see if the seller would be willing to fix it.

4. Is there anything I’ll need to do once I move in?

An inspection report not only tells you the problem areas but also gives you suggestions on things you should fix in the first couple of months of living in your home.

“I had a couple call and tell me they had seepage in the basement,” Lesh says. “I pulled up their report and asked if they’d reconnected the downspout extension like I recommended. Nope. Well, there’s your problem!”

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Several Tips To Follow When Selling a House in 2021

 Photo by Anete Lusina from Pexels

Both selling and buying a home can be very exciting. When it comes to the sale of your home, it can be bitter-sweet. Leaving a home behind where there are sentimental attachments can be difficult. An emotional mindset might hinder the sale of your home. Here are some tips to follow that will help navigate you through the process and hinder costly mistakes.

1. Price Your Home Right

Low inventory usually means higher pricing, but that is not always the case when it comes to a listing price. A buyer can only purchase a home based on the fair market value when it comes to obtaining a mortgage. In a nutshell, the bank will only lend what the home is worth. During the mortgage process, the lender will require an appraisal from a professional appraiser who will determine the fair market value. It is always best to stick with a Realtor who can help you price your home right.

2. Keep Your Emotions in Check

Most homeowners live in the house for quite a long period of time. During this time, they will create a lot of memories and these memories will be attached to their house.  According to the National Association of Realtors, current homeowners lives in their home for an average of ten years. It can be hard for a homeowner to separate the sentimental value of a home from fair market value. Using a Realtor can help you with the process and can negotiate without emotional attachment.

3. Stage Your Home Properly

The first impression goes a long way when a potential buyer enters a home.  A buyer will not be impressed with all of your sentimental nick-nacks or special wallpaper hung in the dining room.  A home needs to be staged with a buyer in mind.  The buyer needs to be able to come into the space and envision it as their own. A Realtor can help you stage your home before it is listed.

If you are considering selling your current home, now is a great time.  Even though it is a seller's market, it is a good idea to use a real estate professional.  A local Realtor can help you sell your home for the right price.

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