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  • Why is the Housing Market So Crazy Right Now?

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    68 Showings. 32 Offers. $100,000 Over Asking. All Within 24 Hours! That pretty much sums up what we are seeing in many markets across the country right now. But why is it so crazy?

    There are a few reasons that the market right now seems like something out of apocalyptic times, so let’s break down what’s happening…

    #1. Inventory is Low.

    Right now, inventory across the country is extremely low. But just how low are we talking? Well, according to the National Association of Realtors, a balanced market producing median home prices has about six months worth of inventory. Most markets right now are sitting below the two month market. Now that is low! With demand for homes at an all time high and little supply for the buyers, it is no wonder we are seeing lines of buyers sitting outside those just listed, move in ready homes.

    With multiple buyers interested in the home comes multiple offers. Multiple offers drive the bidding wars. Bidding wars raise the purchase price of the home even higher.

    #2 Interest Rates are Low.

    So we know the situation with the supply, but what about the demand? One of the driving forces behind the demand right now is the low interest rates. With interest rates being at historical lows, buyers are able to afford more home than they would have been able to in the past. For example, if you purchased a home for $300,000 with 20% down and a 3% interest rate, your principal and interest payment would equal $1011.85/month. That monthly payment jumps to $1145.80 with a 4% interest rate. These interest rates are making homeownership more feasible for many renters or even those just looking to upgrade their current home.

    #3 Desire for More Space.

    Along with the low interest rates, a desire for more space is a huge reason demand is high. With many families now homeschooling and working from home becoming more of a norm, buyers are looking for homes with more space. This desire for more space has increased the amount of buyers are the market, again driving demand.

    So What Next?

    So what does that mean for the future of the housing marketing? Are we headed towards a bubble? Experts expect the housing market boom to continue for the foreseeable future but aren’t worried about a crash like that of 2008. Many say the protections that would put into place for the lending industry post the 2008 housing collapse with keep this from happening.

  • What Should You Do Prior to Listing?

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    You’ve heard the market is great for selling right now, so you are thinking maybe now is the time. So, what do you need to do to prepare before your home actually hits the market?

    Meet with Your Agent.

    It should come as no surprise that this is the first thing recommended if you are thinking of selling. Sit down with your agent and discuss what they believe your home can sell for, repairs that may need to be taken care of before listing, and the timeline for getting your home sold.

    Know Your Bottom Line.

    While you are sitting down with your agent, ask them to prepare a net sheet for you. This will give you an idea of what you will be walking away with after selling your home. It is important to know these numbers and your bottom line upfront so that you can make more confident and educated decisions throughout the process.

    Tackle Maintenance.

    Home maintenance, such as changing out the air filters, recaulking the windows, and fixing that slow draining tub, are things that tend to go to the wayside when you are living in your home. However, you want to tackle these before you list your home otherwise you will probably be seeing them in the inspection report.

    De-Clutter Your Home.

    Once those maintenance projects are handle, now it is time to declutter. Begin by removing about 50% of the clothes and other items from your closets. You’ll have to pack them sooner or later! Next pack up anything laying around the house that isn’t decor, such as larger toys, excessive dog toys, the beanbag chairs the kids love to drag out, etc. Finally, clear off those countertops. If it isn’t for decoration, hide it under the sink or in the pantry.

    Deep Clean.

    Before the photographer and showings start coming through, give your house a good deep clean. I’m talking dust those hidden shelves you never get, mop behind the toilet, and get those floors shining. A clean house will instantly elevate you above the crowd.

    Make Your Schedule as Flexible as Possible.

    Before that sign goes in the yard and showings start, try to clear your schedule or make it as flexible as possible. You never know when someone will want to see your home.

  • How To Prepare to Buy in This Current Market

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    You have heard it is a seller’s market out there. So what does that mean for you as a buyer? Are you out of luck? No, not at all! However, if you are thinking of buying in the near future, there are handful of things you want to prepare for when it comes to buying in this market…

    Meet with a Lender Early.

    Before you set foot in your agent’s car, make sure you have met with your lender, have a preapproval in hand, and are ready to make an offer if you find the right house.

    Make your List of Must-Haves and Nice-to-Haves.

    Before you begin looking, make a list of must haves and nice to haves. You don’t want to forget about something that is a must for you when you see a gorgeous home.

    Prepare for a Bidding War.

    With multiple offers on so many homes, you have to be prepared to compete. Make sure you are clear on what you can afford and make your first offer your best offer.

    Don’t Let your Emotions Get the Best of You.

    Buying your new home can get emotional, but try to step back in the process and think clearly. This is a HUGE purchase you are making after all.

    Get Yourself an Amazing Realtor.

    Now is not the time to use your 2nd cousin who does real estate on the side. Make sure you choose an agent who is fluent in the current market and knows how to negotiate.

  • Pros and Cons of Selling your Home Yourself

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    In a market where homes may be flying off the shelves so to speak, you may be thinking, “Why in the world do I need a real estate agent? Can’t I just do it myself?” While the appeal of not having to pay a commission to an agent to sell your home may be incredibly attractive, there are pros and cons to think about if you are considering selling your home yourself. 

    PRO. You are in control. Everything from how your home is marketed to how the contract is written, you have full control in the matter.  

    CON. You won’t have professional guidance. There is much to be said about the best way to price, market, and negotiate a sale, and unless you were a real estate agent in the past, you probably do not have this knowledge. 

    PRO. You know your home well. No one can sell the home like you do because no one knows the home quite like you. 

    CON. You won’t have professional marketing. From professional photography and marketing campaigns, to the MLS and Association Networks, real estate agents without a doubt can have a more aggressive marketing strategy than the layman.

    PRO. Low inventory means buyers may be looking at FSBOs. When inventory is low, buyers begin to look at For Sale By Owners. This could mean more attention to your home and a quicker sale.

    CON. FSBOs typically have a slower sale. Real estate agents have one job – to sell your home. So likely they are going to speed along the process of getting your home sold.

    PRO. You don’t have to pay a listing agent commission. While a buyer’s agent who bring you a sold buyer may ask that you pay them a commission, you would not have to pay a listing agent saving you thousands of dollars. 

    CON. FSBOs usually have a lower sales price. Many times, real estate agents are worth their commission. Studies have shown that listing with an agent can bring a higher purchase price, usually enough to cover the commission and then some.

  • Staging Tips from a Professional

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    As you are getting ready to sell your home, you may hear your agent talk to you about staging your home. This doesn’t always mean bringing in an outside interior designer to make your home look like a show home, but it does mean putting your best foot forward when it comes to your homes appearance. After all, you only get one first impression on potential buyers. So here are some to tips from a professional on how to stage your home for photos and showings. 

    • Be Specific about Staging. Not every room needs the same amount of attention when it comes to staging. The Living Room, Master Bedroom, and Kitchen are the top places your attention should be on.
    • Rearrange the Furniture. You certainly don’t need to restage your entire home just be mindful to create good walking space throughout the home. Narrow walkways and tight rooms can make your home feel smaller than it really is. 
    • De-personalize. The goal is to help potential buyers see themselves in your home. While you don’t want a barren house, you do want to create as much of a blank, neutral canvas for buyers. You can accomplish this by removing family photos as well as religious or political items. 
    • De-Clutter. Whether it is toys in the playroom, all your kitchen appliances on the counter, or a cluttered nightstand, try to remove as many unnecessary things from sight. Try to keep only decorative items on surfaces. 
    • Patch and Repair. If there is anything that will stand out to buyers, such as a hole in the wall or a crooked cabinet door, patch it or repair it before photos or showings. Small things like those can cause buyers to wonder what bigger things are wrong with the home. 
    • Create a Neutral Palette. While paint can be corrected quite easily for a buyer, it is sometimes hard for them to see past that when viewing a home. Painting over bright colored walls with a more neutral tone like gray or taupe may help you appeal to a larger group of buyers. 
    • Elevate the Curb Appeal. The exterior of your home is the first thing people will see when they visit, so make sure it is appealing. Power wash your entrance way. Remove seasonal décor. Add some flowers to the stoop. Make people excited to enter. 
    • Brighten Your Home. No one wants to live in a cave, so open the windows turn on the light and showcase your beautiful home!
    • And Finally,… Clean, clean, clean. Clean those windows, deep clean those toilets, wipe down those kitchen cabinets, and make sure those floors shine. A clean home will instantly elevate your listing because no one likes someone else’s filth.

  • DIY Ideas to Accent a Wall

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    One of the easiest ways to add character to your room or spice up a large blank space is to add an accent wall. While it might seem a little overwhelming to a beginner, there are plenty of ideas that you can easily replicate yourself. Here are just a few ideas to get those creative juices flowing…

    1. Shiplap. While some may think the shiplap trend is on its way out the door, we are still seeing this in interior design. It is appealing to the eye due to the clean lines but intrigue that it adds. DIY this with primed shiplap boards from your local hardware store, a nail gun, and some paint. 
    2. Plank Wall. Gone are the days of repurposing old pallets into a reclaimed pallet wall. Now all you need to do is purchases a few boxes of faux wood plank at the hardware store and some glue. No splinters needed.
    3. Faux Brick Wall. Whether you are opting for the industrial look or a nod to the farmhouse trend, you can create a brick wall in your home yourself for less that $100 depending on the size of the way. You can purchase faux brick panels that attach to the wall with a nail gun. Add that German schmear look with some cheap spackling or drywall patch.
    4. Wallpaper. Surprisingly this is making a comeback in interior design! You can find peel and stick wallpaper at places like Target and Amazon to quickly add your style to any wall. Make sure you sand down any texture first for better adherence. 
    5. Modern Wood Design. One of my favorite trends is the modern wood wall designs. Using thin pieces of wood, you can create a herringbone design, crisp lines, or a unique design all your own. Attach the word with a nail gun and be sure to caulk the seams before painting. 

  • 9 Ways to Save for your Down Payment or Remodel

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    Saving for the down payment on a home is probably the most overwhelming thing first time homebuyers have to worry about. Sometimes, it can even seem impossible. Here are a few ideas to help build that new home account and get you closer to your goal.

    1. Get a Better Savings Account.

    Most savings account these days are very low yield. However, you can find some account with a better interest rate at credit unions or perhaps a CD.

    2. Get a Side Hustle.

    Whether it is writing a blog, starting an Etsy business, or joining a network marketing company, there are plenty of ways to make extra money outside of your day job. Save every penny you earn from your side hustle in a separate account specifically for your new home. 

    3. Sell Stuff You Don’t Use.

    If you aren’t using it, why not make some extra money from it. Hold a garage sale, sell on Facebook Marketplace, or use one of the countless apps. 

    4. Stop Impulse Buying.

    Don’t let those checkout line items or the ads on Social Media sway you into those impulse buys. 

    5. Keep Eating Out to Once a Week or Less.

    A $10 – $20 meal may not seem that bad, but it can add up especially with delivery fees and tips. Buy in bulk, eat at home, and save up those fees.

    6. Pay Off High Interest Debt First.

    Those high interest credit cards are costing you more monthly than your other loans, and simply paying the minimum will not get you very far. Focus on paying off cards with higher interest rates first, then put that payment towards your other cards. You will be surprised the amount of money you can save when you aren’t paying 25% interest on credit cards. 

    7. Get a Roommate to Split Rent.

    It may not seem ideal, but if you have the ability to share rent for a while, the sacrifice may pay off immensely.

    8. Unsubscribe to Anything Costing You Unnecessary Money.

    Many of us probably have subscriptions out there that we will never use. However, since they are on autopay, we probably haven’t thought twice about them. Conduct an audit of your subscriptions and cancel any that you are not currently using or are not necessary.

    9. Look at First Time Homebuyer Grants. 

    There are countless programs out there offering assistance to first time homebuyers. Do some research into what programs are available to you or reach out to a home lender who is fluent in these types of grant and loan programs. 

  • A Quick Guide to Tiling

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    Installing Tile may seem like an overwhelming project for a new homeowner and DIYer, but it isn’t as complicated as it may seem. Whether you are looking to add a backsplash, redo a shower, or replace linoleum flooring with large floor tiles, this quick how to guide can help you make that dream a reality without hiring it out.

    1. Prep the surface. If you currently have tile, linoleum, carpet, or some other material on the surface, remove it. If it is tile you are removing, you may need to replace the drywall or backer board below the tile as mortar is not easy to remove. You can find simple how to videos on how to do this. For floor and shower tile, add backer board to the surface. For back splash, just make sure the wall is clean from any oils and lightly sand the texture and paint for good adhesion.
    2. Prepare your Mortar and Materials. When buying your supplies, make sure you are using mortar and spreader for the size of tile you are using. For instance, you can you thinset mortar and a small notch spreader for subway tile, but a non-slip mortar and a spreader with larger notches are ideal for large format tiles. For larger projects, I suggest mixing your own mortar as it is easier to work with, but for a simple backsplash, you can buy premixed mortar that is ready to use. 
    3. Set your tile. Begin by mapping out the pattern you would like to use. Mortar dries quickly, so spread your mortar and set your tiles in small sections. Use a wet tile saw to cut the tile. For larger straight cuts, you may be able to use a tile cutter, and for small mosaic cuts, you may be able to use snippers. Ask someone at your local hardware store which will be best for your project.
    4. Grout. Once your mortar is dry, it is time to grout. You can mix your own grout, but it also comes premixed in multiple colors. Using a grout float, spread the mixture at a 45 degree angle ensuring all the lines are filled in completely. Use a sponge a clean water to wipe away the excess. Again, work in small sections and try to clean as much grout off the surface of the tiles as possible. Change your water frequently for easier clean up.
    5. Clean and Seal. Once your grout has dried, make sure you clean it and use a grout sealer. 

  • 5 Questions to Ask your Builder

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    Building a home can be an exciting adventure. Not only is everything brand new, but you get to pick the layout, the design elements, and the location. However, if you are thnking about building a home in the future, there are many questions you need to consider asking your builder. 

    1. How Long Will It Take to Build? 

    Unlike a traditional purchase, the building of a home will take months, sometimes over a year to be completed. Most builders will require a deposit upfront to hold the property for you, and many ask that your home be on the market for sale before the home is even complete. Make sure you know what their expectations of the timeframe are and if it is doable for you.

    2. How Long Will Construction Be on the Community? 

    Many new construction homeowners complain about the constant construction around them when they move into their new home. With a brand new home comes this trade off sometimes. If you are in the beginning phases of a development, the build out time could be months or years. Ask how long you will be living amongst construction.

    3. What Kind of Warranties Does the Builder Offer? 

    Builders typically offer a few different warranties with different timeframes. For example, they may cover the whole home including fixtures, appliances, electrical for one year, and the structure of the home for 10 years. Get clarification on what warranties they offer with your build.

    4. What is Included? What is Considered an Upgrade? 

    Before you go picking out top of the line quartz and the plushest carpet, make sure you know what is included in the base price of the home and what is considered an upgrade. The base price may be reasonable, but the design room is where that price can skyrocket.

    5. Is the Cost of the Lot Included? 

    Some builders include the lot in the purchase, some offer lots at a premium, and some require you to purchase your own lot. 

  • Top 5 Reasons to Work with a REALTOR as a Seller

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    Why should sellers have a REALTOR®? I have heard the story…”I can do it on my own.” Especially in this market where houses are flying off the shelves, can’t anyone stick a sign in a yard and get it sold? Maybe, but there is so much more to it then that. If you didn’t read my last post about why buyers should use a REALTOR®, click over real quick and read point #5. IT IS THEIR JOB! THEY ARE THE PROFESSIONAL! But if you need a few more bullet points on it, here you go…

    • Pricing it Right. You can’t just stick a sign in the yard and have your house sold in a day if it isn’t priced right. Regardless of what you hear about the market, there are still homes sitting for a month or more because they are priced ridiculously high. Eventually, someone buys them and then they sit with fingers crossed that it will appraise because there are no comparables to back up the price. Realtors know the market, they have access to comparables, and they know how to interpret the comparables. Pricing your home right is the first step to a successful sale, so trust an expert!
    • Legwork. There is so much to do before a house goes under contract. Staging, photos, flyers, a comprehensive MLS listing, showings, multiple offers, negotiating, choosing an offer. Do you really want to do all that? If sellers really realized all the effort before the house even goes under contract, I don’t think they would ever question hiring a REALTOR® again.
    • Marketing to the Masses. Yes, people will see a sign driving by. And yes, people will see the post on Zillow. But think of all the other places your REALTOR® can advertise to. For example, the MLS is probably the most effective place to put a listing, and they have access to it. Realtor.com is said to be a huge resource for those looking for a new home, and it pulls straight from your agent’s MLS. And I am going to bet your agent knows more people in the real estate industry than you do. They may know someone who has a buyer for your very property.
    • Negotiations – Selling your home doesn’t just stop once you find a buyer. You still have to work through title, inspection, appraisal, etc, which begin another slew of negotiation opportunities. An agent is clever about how to make these work for you.
    • Higher Price – Speaking of negotiation skills…I have no doubt a REALTOR® is going to work to get you a higher price for your home. It starts with pricing it right and making the advertising attractive. This will bring in more willing and able buyers from all those sources your agent is advertising with. More buyers means more potential offers which means more potential profit for you. Isn’t that incentive enough?!

  • Start Prepping for Buying NOW

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    If you are planning to buy in 2021, now is the time to start preparing. Whether you are 3 months out or a year out, you can begin getting things in place for purchasing your new home. Here are some things to think about: 

    1. Your Credit Score. Your credit score will play a huge role in how much you can afford when it comes to purchasing a home. While you can’t improve your credit score overnight, there are somethings that you can do to increase it (or at least make sure it does not decrease) in the coming months. Make sure that all your current credit bills are paid on time. Refrain from any large purchase on credit. Keep your current credit card balances as low as possible. 
    2. When saving to purchase your new home, there are a few things to consider outside of just the down payment. Usually, you will have the cost of the inspection, the appraisal, closing costs, and repair and maintenance costs. I suggest saving for the following: 5% – 20% of the purchase price for your down payment, 2% of the purchase price for closing costs, at least $1,000 for the inspection and the appraisal, and at least $2,500 in savings for potential repair and maintenance costs.
    3. Get your Financial Documents in Order. Lenders require more documentation than they used to, so it is something I always suggest getting in order before applying. The documents a lender will require vary depending on the situation, but the following are a good rule of thumb.
      • Tax returns
      • Pay stubs, W-2s, or other proof of income
      • Bank statements and other assets
      • Credit history
      • Gift letters, if using funds that were gifted
      • Photo ID
      • Rental history, if you don’t already own a home
    4. No Big Purchases.  During the loan process, your lender is going to be looking at your Debit to Income as well as funds that you have on hand to pay for the down payment, closing costs, and future payments. Big purchases can affect these numbers because 1) if they are bought using credit, your Debit to Income with change and 2) if they are bought with cash, your fund on hand will be affect. It is wise when purchasing a home to hold off on large purchases like new furniture, a new tv, or a car until after you have bought your new home. 
    5. Your Job.  In regards to your loan, your lender is going to look at your ability to pay back the loan. They want to see stability in your job, usually requiring tax returns for two years. If you are looking to buy in the near future, you don’t want to be looking for and starting a new job at the same time. However, an exception is usually if it is a job in the same field or a promotion.