The Perfect Kid-Friendly Yard

Sending the kids outside to play is a time-honored tradition for American families. Many people were raised with plenty of time in their yards to get dirty before coming indoors for dinner. If you want to give your kids a safe and fun place to play in your own yard, what should you consider? Here are some great ways to improve your yard for fun and safety.


Make a Chalkboard
Writing on the sidewalk in chalk is a rite of passage for a lot of small children. It makes for easy cleanup because the chalk washes off in the rain. You can take this to the next level by building an outdoor chalkboard to encourage art at all times.

Paint a section of wood with chalkboard paint, available at most big-box stores. Hang the wood, along with a simple frame, on a vertical surface such as a fence, or build it into the surface of a table for a horizonal play area. Then all it takes is some inexpensive chalk to give your kids hours of creative fun.

Hang a Swing
You can certainly invest in a swingset, but all you really need is a sturdy tree to make a perfect swing for a child. You can use anything from an old skateboard deck to a small tire as the seat of the swing. Tie it securely to a tree branch with a thick rope, and you have a nearly free way to entertain your kids.
Add a Tetherball
With the same ingenuity, you can make sure your kids stay active outside with a tetherball. There are commercially available tetherball sets, or you can use an old ball and some rope to create the same experience. And with this outdoor play option, you'll never have to chase a ball into the street or apologize because it's in your neighbor's yard again.
Build a Trampoline
Many parents are concerned about the safety of trampolines. One way to have a safer trampoline in your yard is to build it into the ground, much as you would do with an in-ground pool. Depending on the size of your trampoline, you need to sink it deep enough to ensure safe jumping. You can then surround the trampoline with a mesh safety barrier.
Hang a Quiet-Time Hammock
Not all kids are rough and tumble, and they may need some quiet time. A hanging hammock for reading is a great way to encourage your quieter, indoor-oriented kids to go outside for summer sunshine. This reading nook can be anything from a simple hammock to a more elaborate hanging tent space.
Play With Water
Many of us grew up with the ability to run through the sprinkler on a hot summer day. It's a great cooling-off alternative if you don't have the space or budget for a pool. You don't have to invest tons of money to provide your kids with a safe water feature for play. There are plenty of commercially available toys that can be hooked up directly to your garden hose. Or you can take a more homespun approach by filling a small tub with water for splashing.
Are you looking for more kid-friendly yard ideas? Call us to learn more about creating a safe and attractive yard.

How to Increase Your Equity Over the Next 5 Years

Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers.

Here are the results from the Q2 2019 Survey:

• Home values will appreciate by 4.1% in 2019
• The average annual appreciation will be 3.2% over the next 5 years
• The cumulative appreciation will be 16.8% by 2023
• Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% by 2023

What does this mean for you?

A substantial portion of family wealth comes from home equity. As the value of a family’s home (an asset) increases, so does their equity.

Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:Based on gains in home equity, their family wealth could increase by $42,000 over that five-year period.

Bottom Line

If you don’t yet own a home, now may be the time to purchase. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset.

Home Price Expectation survey – Every quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.

3 Things to Know About Negotiating a Closing/Move-in Timeline

In real estate, timing is a critical ingredient that can shape the sale. Relocation logistics, the timeliness of a lender to process a loan and even the availability of local contractors to fix things required by an inspection can drive, or delay, the closing date. Here are a few things to consider as you and your agent work to set closing and move-in dates.

1. Speed can tip the scales
Do you have your loan in hand and the flexibility to move out of your current home? Depending on the seller’s situation, this could be a tasty carrot in the negotiation process. Your agent may be able to feel out the seller’s urgency (or lack thereof) to sell and determine if they might accept a lower offer for a faster settlement.

2. Going long
Asking for a delayed settlement date, longer than 30 or 45 days, is another option, but generally less appealing to sellers. Each day is another opportunity for something to go wrong that could kill the deal. The buyer’s financial situation could change, or they might find a home they like better.
As a seller, if you are considering accepting a long closing date, an agent may suggest increasing the amount of earnest money stipulated in the contract. Also, you’ll want to consider adding the additional months’ mortgage you’ll be paying to the asking price.

3. Considering “rent backs”
Closing quickly and then renting the home back to the seller can make the schedule work for buyers or sellers who might not be able to pack up and move immediately. With this option, the buyer faces the greater risk. What if there’s a fire, a flood or a pack of crazy teenagers that run amuck during the rental period? If you consider the rent-back route as a buyer, work with your agent to develop a solid rental contract that spells out liability.

With years of negotiating experience and an in-depth knowledge of the current local market, a savvy Realtor can build a sales timeline that works to your benefit, both financially and logistically.

Sellers: How to Decide Between Multiple Offers

What a splendid dilemma! You’ve received several offers on your property. Which one should you choose? It’s not always the highest one.

Here are just some of the areas your agent could ask you to pay particularly close attention to as you’re weighing the options.

1. Do the math.
This goes beyond simply calculating the dollar difference between the various offer prices. Before you do that, be sure to do all the math. Subtract things like closing costs, fees and potential repairs to determine the net proceeds of each offer.

2. Consider the financing.
Can the buyer provide proof from the bank that there are funds to back the offer? Your agent can help verify this — and help you understand the terms of the buyer’s financing.

3. Motivation.
Do the buyers have a baby-sitting parent in the neighborhood? A new job just around the corner? Buyers with extra motivation to purchase your home are less likely to press for concessions and more likely to work harder to close the deal. Some buyers even include a personal letter with their offer to explain why they want the home. These letters can be particularly helpful in multiple-offer situations.

4. Timeline.
Note the closing date each offer proposes. You’ll want a closing date that best meets your needs. You can always counter a closing date, too, if the best offer doesn’t quite meet your timeline.

Weighing the pros and cons of each offer can be tricky. An experienced agent can help you clarify, calculate and secure the very best deal for you.

When to Sell: Tips for Watching the Market

As first-time homeowners, you might get to a point where it’s time to sell your house and move on to your next home. However, you don’t want to sell your home at the wrong time—you might have trouble finding buyers or you might miss out on making the most money back.
Therefore, it’s crucial to watch the market in order to gauge whether it’s time to put your house up for sale. There are several things to consider before doing so, especially when it comes to a decision as big as this.
Here are a few tips for watching the market when deciding to sell your house:

• Consider the time of year
• Think about the job market
• Research your local housing market
• Don’t get obsessed with timing

Consider the time of year

As you may recall when you bought your first house, there might have been a time of the year that you favoured when looking for a new home. This undoubtedly influences other homebuyers.
It’s crucial to consider the time of year since there are numerous effects that a season has on a home and the real estate market. Buyers typically stray away from the coldest months of the year, which is why most buyers look to purchase homes between the spring and fall seasons.
Many people would rather buy and move to a new home during the spring and summer months to avoid the worse conditions in winter. Moving homes is very much a hassle, so it’s understandable that new homeowners would want to move during a less busy time of year. Families find it much more convenient for their kids to move to a new home and area when school is out, as this would give them enough time to settle in before they start a new year at a different school.
However, that isn’t to say that you should only sell your house between the spring and fall. While many buyers may be looking for a new home, there may be more competition on the market during these months. Other sellers understand that this is a great time to sell, but many don’t realize the amount of competition they may face.
Despite the time of year and the potential amount of people looking to buy, the number of listings can be abundant. This can impact how long you’ll be listed until you find the right buyer. Some sellers might find it more advantageous to tackle the market when there are less listings and competition. While there may be fewer buyers, there are always people looking to purchase homes year-round. Keep your eye on the market and consider if it’s truly time to sell your house.

Think about the job market

Finding the right time to sell goes beyond than simply the time of year. A good way of determining the best time to sell involves thinking about when people want to buy. The hotter months of the year may be convenient times for families looking to move. However, people also look for homes when new jobs become available.
Consider the job market in your local area. There may be a new manufacturing plant opening nearby. If you currently live in a metropolitan area with nearby public transportation, housing may be incredibly expensive in dense cities like Toronto or Vancouver. Buyers are likely to seek out homes in areas with commuter connections. New jobs mean new residents that need homes. These events are prime opportunities to sell your house potentially quickly and possibly at a higher price.

Research your local housing market

Pricing is critical to figuring out when to sell your home. Home-sellers would much rather sell their house at market price or higher than incur a short sale. Research past housing prices in your area to gauge the current state of your local housing market. Figure out if the market is up or down. It’s important to determine the state of your housing market when deciding to sell your home, as it can loosely predict if housing prices may go up or continue to fall.

Don’t get obsessed with timing

While timing may seem like everything when selling your home, you must make a key decision at some point. Homeowners looking to sell often become obsessed with timing to the point where they pass on key opportunities that they may regret.
When watching the market, one of the most important tips to understand is to determine what you think is best for you and your home. Consider everything from the time of the year to the current job and housing market. Determine when your house is most appealing—whether it be in the literal sense or figurative. For example, your home might literally look best during the spring and summer months, so it may be best to consider selling it then to attract potential buyers. On the other hand, when new jobs open, more people will be looking to buy in your area which can make your home very appealing to these buyers.
At the end of the day, it’s your decision—so it’s crucial to research the market as much as you can to make a well-informed one.

Sources

https://www.moneyandbills.com/timing-real-estate-market-secrets/

Delay Will Usually Cost More

Two things can happen when the mortgage rates go up before you've found a home or locked-in your mortgage.  You'll either pay the current mortgage rate which means a higher payment, or you'll have to increase your down payment to keep the monthly payment at the same level.

If the rate were to go up by ½%, the payment on a $275,000 mortgage would increase by $82.87 per month for the entire 30-year term.  That would increase the cost of the home by $29,835.

Some people are purchasing the maximum home that they can qualify for.  In that case, they cannot qualify for a higher payment and the only way to buy the same price home is to put more money down which may not be a possibility.  The other alternative is to buy a lower price home which may not be in the same area or size which will involve some compromises.

The rate is not the only dynamic that affects buyers waiting to purchase.  The home they want could sell to someone else.  Prices could increase as new homes come on the market.  The question that many buyers ask themselves when they become a victim of the consequences of delay is "What could we have spent the money on if we didn't have to make a higher payment?"

Mortgage rates are very attractive currently and within ½% of the all time low of 3.35% in December 2012.  The highest rate was 18.45% in October 1981.  Whether you're purchasing or refinancing, it may not be this low again.

What Do I Need to Know About Mold?

There are few things that homeowners dread more than mold in the house. You’ve likely heard horror stories about people living with mold infestations that made them seriously ill. Is this just hype, or is there a real danger to having mold in your home? More importantly, what can you do if you find mold growing somewhere in the house?

What Is Mold?

Mold is a broad group of fungi, with thousands of species and subspecies around the world that typically prefer dark and damp habitats. Often fuzzy in appearance (though occasionally slimy or cottony), molds spread across materials and break them down to get the nutrients the mold needs to survive and thrive. Instead of seeds, molds release single-celled spores that in many cases are too small to see with the naked eye; these spores float through the air to land on a variety of surfaces, beginning growth once they find themselves in a suitable habitat. Though molds are made up of a number of individual stalks fibers, a connected clump of mold is considered to be a single living entity.

Types of Mold

There are several common types of mold that you might see around the house. While some of these may not be inherently dangerous, any mold can trigger reactions in anyone with an allergy or sensitivity. The five most common of these molds are:

• Aspergillus: One of the most common indoor molds, it often appears green, blue-green or gray but can also appear white or even yellow.
• Cladosporium: A black or green mold that has an appearance like ground pepper, it commonly grows on smooth surfaces like toilets and painted walls but can also grow in fabrics and rugs.
• Ulocladium: A black mold that grows in wet areas, especially in cracks and corners; it is most common in homes with water damage and active leaks.
• Aureobasidium: Varying in color from pink to brown or black, this mold most commonly grows behind wallpaper, on painted surfaces and on wood.
• Stachybortrys: The infamous “black mold”, it features a slimy dark green or black color and thrives in areas that are damp and maintain high humidity for weeks.

Is Mold Actually Dangerous?

While many molds are allergens, most will not cause severe reactions unless you have a mold sensitivity or have other health problems that make you more prone to infection. However, some molds (such as black mold) actually are toxic and can make you very sick if you’re around them for too long. Symptoms of a mold allergy or toxic mold exposure can include a chronic cough, skin rashes, fatigue, difficulty focusing and even pain or infection in your sinuses, eyes and ears.

Mold Testing and Removal

If you suspect that you have mold problems, there are home tests available to help you identify the type of mold in your home. These should only be a first step, however, as they often aren’t enough to definitively show you the scope of your mold problem. Call in an expert to confirm the results of your test or take a scraping of the mold and have it analyzed. Be sure to wear a dust mask or other breathing protection if you aren’t sure what type of mold you’re dealing with until the problem is taken care of.

For many mold infestations, getting rid of leaks or other sources of humidity is a great way to slow or even stop mold growth. Mold can cause serious damage over time, however, so you may need professional mold removal and repair services if you can’t get the problem under control early.
Is your home in need of some serious mold removal?

Is Renting Right for Me?

If you’re currently renting and have dreams of owning your own home, it may be a good time to think about your next move. With rent costs rising annually and many helpful down payment assistance programs available, homeownership may be closer than you realize.
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years.
When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason, and 42% of renters believe their rent will rise every year. The full results of the survey can be seen below:It’s no wonder rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years, as you can see below.

There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again, it’s never a bad idea to reconsider your family’s plan and ask yourself if renting is your best angle going forward. When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
The reality is, the need to produce a 20% down payment is one of the biggest misconceptions of homeownership, especially for first-time buyers. That means a large number of renters may be able to buy now, and they don’t even know it.

Bottom Line

If you’re one of the many renters who are tired of rising rents but may be confused about what is required to buy in today’s market, contact a local real estate professional who can help you on your path to homeownership.

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC]

Some Highlights:

• Interest rates are projected to increase steadily heading into 2020.
• The higher your interest rate, the more money you will end up paying for your home and the higher your monthly payment will be.
• Rates are still low right now – don’t wait until they hit 5% to start searching for your dream home!

The Surprising Profile of the Real Estate Investor

Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?

Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.

Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:

“Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…
What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”

Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:As the graph shows, the percentage of “Mom & Pop” investors is currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors is falling.

Bottom Line

Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, speak to a local real estate professional. They can help you build or liquidate your current portfolio of properties.

Should I Refinance My Home?

With the recent lower interest rates, many homeowners are wondering if they should refinance.
To decide if refinancing is the best option for your family, start by asking yourself these questions:

Why do you want to refinance?

There are many reasons to refinance, but here are three of the most common ones:

1. Lower your interest rate and payment – This is the most popular reason. If you have a 5% interest rate or higher, it might be worth seeing if you can take advantage of the current lower interest rates, hovering below 4%, to reduce your monthly payment and overall cost of the loan.
2. Shorten the term of your loan – If you have a 30-year loan, it may be advantageous to change it to a 15 or 20-year loan to pay off your mortgage sooner.
3. Cash-out refinance – With home prices increasing, you might have enough equity to cash out and invest in something else, like your children’s education, a vacation home, or a new business.

Once you know why you might want to refinance, ask yourself the next question:

How much is it going to cost?

There are fees and closing costs involved in refinancing, and Lenders Network explains:

“If you were to refinance that loan into a new loan, total closing costs will run between 2%-4% of the loan amount.”

They also explain that there are options for no-cost refinance loans, but be on the lookout:

“A no-cost refinance loan is when the lender pays the closing costs for the borrower. However, you should be aware that the lender makes up this money from other aspects of the mortgage. Usually pay charging a slightly higher interest rate so they can make the money back.”

If you’re comfortable with the costs of refinancing, then ask yourself one more question:

Is it worth it?

To answer this one, we’ll use an example. Let’s assume you have a $200,000 home loan. A 4% refinance cost will be $10,000. If you want to lower your interest rate from 6% to 4%,  then refinancing is going to save you $244 per month. To break even ($10,000/$244), you need to continue owning your home for over 40 months.

Now that you know how the math shakes out, think about how much longer you’d like to own your current home. If you plan to stay for more than 3 years, then maybe it is advantageous for you to refinance.

If, however, your current home does not fulfill your present needs, you might want to consider using your potential refinance costs for a down payment on a new move-up home. You will still get a lower interest rate than the one you have on your current house, and with the equity you’ve already built, you can finally purchase the home of your dreams.

Bottom Line

There are many opportunities for growth in the current real estate market. To find out what’s right for your family, meet with a local real estate professional who can help you understand your options and guide you toward the best decision.

7 Questions to Ask When Attending Open Houses

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If you're a potential homebuyer, there are a number of questions you should ask the listing agent about each home. Open houses help you get a better feel for the space while learning more about it in the process. When you're ready to shop for a new home, here are seven questions to ask when attending open houses.

1. Why is the house for sale? Ask why the sellers are moving to find out the reason why the home is on the market. That may give you some insights into the timing and motivations of the sellers. 
2. How long has the home been on the market? If you ask when the home was listed, you'll gain insight into the house and the real estate market as a whole. The agent can put the number in context for you while disclosing information about the level of interest in the place. 
3. Does the house come with any problems? Inquire about issues to get an idea about the last time the house was updated. Given that home renovations can be costly, learn about problem areas ahead of time, and then check them out while you're at the house. 
4. Has the home's price been stable? By finding out how much the price has fluctuated since the house was put on the market, you'll find out whether the price is flexible when it comes time to make an offer. 
5. How many offers have been made on the house? Ask whether there's an offer on the table when you walk in the door. If you mention the pending offers on the place, the listing agent might be pleased to tell you about them, because your bid could drive up the price. 
6. What's the home's average cost for utilities? When you inquire about the estimated cost of utilities, make sure you have room in your budget. Get the agent to show you the most recent bills to get a better idea of monthly and yearly expenses. 
7. When are the sellers looking to close on this house? Learn the timeline for closing on the home to find out what the sellers want. If you know an offer could be chosen based on its time frame, you could gain an advantage if the owners want to sell quickly. 

With these seven questions in mind, you'll be ready to make a better assessment of each home. An open house is your chance to ask as many questions as you can about the property. When you're ready to make the most of the home-buying process, please don't hesitate to get in touch with us.

Selling your home can be a difficult process. These smart tips will help you close the sale.

Americans’ Powerful Belief in Homeownership as an Investment

The Federal Reserve Bank (The Fed) recently released their 2019  Survey of Consumer Expectations Housing Survey. The survey reported that 65% of Americans believe homeownership is a good financial investment. Since 2014, the percentage has increased by over nine percent.The Fed’s survey also showed that when the results are broken down by age, education, income, or region of the country, more than 55% of Americans in each category see homeownership as a good investment.

This coincides with a recent Gallup survey of Americans which revealed that real estate was their number one choice for the best long-term investment when compared to stocks, savings accounts or gold.

Bottom Line

Americans’ belief in residential real estate as a good financial investment continues to grow as the housing market returns to normalcy.

4 Tips to Sell Your Home Faster

Since June of last year, we have seen an increase in the inventory of homes for sale month per month. Every spring and summer, the inventory increases because people want to sell their home. For those with children, they may want to be in their new home for the beginning of the school year.

If you are one of those sellers, you may find these 4 tips helpful in getting your home sold more quickly.

1. Make buyers feel at home
Declutter your home! Pack away all personal items like pictures, awards, and sentimental belongings. Make them feel like they belong in this house! According to the Profile of Home Staging by the National Association of Realtors,

“83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”

Not only will your house spend less time on the market, but the same report mentioned that,

“One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.”

2. Keep it organized
Since you took the time to declutter, keep it organized! Before the buyers show up, pick up toys, make the bed, and put away clean dishes. It is also a good idea to put out some cookies fresh from the oven or a scented candle. Buyers will remember the smell of your home! According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers.
3. Give buyers full access
One of the top four elements when selling your home is access! If your home is available anytime, that opens up more opportunity to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one.
4. Price it right
As we mentioned at the beginning, more inventory coming into the market guarantees there will be some competition. You want to make sure your home is noticed. The key to selling your house in 2019 is ensuring it is Priced to Sell Immediately (PTSI). That way, your home will be seen by the greatest amount of buyers and will sell at a great price before more competition comes to market!

Bottom Line

If you want to sell your house in the least amount of time at the best price with as little hassle as possible, a local real estate professional is a useful guide. Call them today to find out what you need to do to sell your home more quickly.

5 Powerful Reasons to Own Instead of Rent

Owning a home has great financial benefits.
In a recent research paper, Homeownership and the American Dream, Laurie S. Goodman and Christopher Mayer of the Urban Land Institute explained:

“Homeownership appears to help borrowers accumulate housing and nonhousing wealth in a variety of ways, with tax advantages, greater financial flexibility due to secured borrowing, built-in ‘default’ savings with mortgage amortization and nominally fixed payments, and the potential to lower home maintenance costs through sweat equity.”

Let’s breakdown 5 major financial benefits of homeownership:
1. Housing is typically the one leveraged investment available
Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. A 20% down payment results in a leverage factor of five, meaning every percentage point rise in the value of your home is a 5% return on your equity. If you put down 10%, your leverage factor is 10.
Example: Let’s assume you purchased a $300,000 home and put down $60,000 (20%). If the house appreciates by $30,000, that is only a 10% increase in value but a 50% increase in equity.
2. You’re paying for housing whether you own or rent
Some argue that renting eliminates the cost of property taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs (property taxes, repairs, insurance, etc.) are baked into the rent payment already – along with a profit margin!!
3. Owning is usually a form of “forced savings”
Studies have shown that homeowners have a net worth that is 44X greater than that of a renter. As a matter of fact, it was recently estimated that a family buying an average priced home this past January could build more than $42,000 in family wealth over the next five years.
4. Owning is a hedge against inflation
House values and rents tend to go up at or higher than the rate of inflation. When you own, your home’s value will protect you from that inflation.
5. There are still substantial tax benefits to owning
We know that the new tax reform bill puts limits on some deductions on certain homes. However, in the research paper referenced above, the authors explain:

“…the mortgage interest deduction is not the main source of these gains; even if it were removed, homeowners would continue to benefit from a lack of taxation of imputed rent and capital gains.”

Bottom Line

From a financial standpoint, owning a home has always been and will always be better than renting.

Now’s the Time to Move-Up and Upgrade Your Current Home!

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.

Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.


According to ILHM’s Luxury Report, this mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.

“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”

The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.

“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

Bottom Line

If you are debating upgrading your current house to a premium or luxury home, now is the time!

Is This Your Situation: Curious About the Advantages of Investing in Real Estate?

Many serious investors are looking for ways to diversify their investments. Once you have maxed out your IRA or 401(k), you might look into investment strategies that do not involve more stocks and bonds. One popular way to diversify an investment portfolio is to purchase real estate. Investment properties can help increase your net worth over the long term, but they also have the added benefit of increasing your monthly cash flow.
Parents may also be considering buying a home for their young adult children, who can pay rent to their parents, perhaps splitting it with a roommate. Read on to learn about some of the reasons that investing in real estate is a great idea.
1. Real estate is an appreciating investment
While some markets can become stagnant or temporarily decrease in value, the long-term real estate market trend usually follows an upward trajectory. Over time, your property is likely to increase in value, allowing you to make more money if or when you eventually sell the property. As with most investments, there are no guarantees, but real estate can be an important part of a long-term investing plan.
2. Real estate can boost your monthly cash flow
A real estate investment can increase your monthly cash flow in the form of rent. This is a major selling point for many investors since they may not reap the benefits of traditional investments until much later in life.
That being said, do not underestimate the cost of owning and managing a property. In addition to your mortgage payment, you will be responsible for property taxes as well as ongoing maintenance on the property. Some years, this might be a very small amount, but you should make sure that you are prepared for the inevitable expensive repair from time to time. A good rule of thumb is to save between 10 and 20 percent of your rental income for future maintenance issues. In the long term, you will want to ensure that the rent payments you collect are enough for you to cover all these costs and have a little extra left over as profit.
3. The longer you own an investment property, the more profitable it becomes
Every investor's goal is to increase their monthly cash flow, and in the long term, increase their net worth. Achieving this through investment properties becomes easier the longer you own a property. This is because rent prices and home values typically rise over the long term, but a fixed-rate mortgage remains the same.
4. Investing in real estate can provide immediate gratification
Some people prefer to own something concrete rather than relying on the volatility of the stock market. As long as you have a well-planned strategy for how you will pay the costs associated with your investment property, real estate is a relatively safe and stable investment.
If you're in a good financial place to invest in property, give us a call to discuss how you can improve your long-term investing prospects and immediate cash flow.

Is Mortgage Debt out of Control?

The housing crisis of the last decade was partially caused by unhealthy levels of mortgage debt. Homeowners were using their homes as ATMs by refinancing and swapping their equity for cash.

When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the value of their home). As a result, they walked away. This caused prices to fall even further.


Headlines are again talking about record levels of mortgage debt, making the comparison to the challenges that preceded the housing crash. However, cumulative debt is not an important data point. If we look at the debt as a percentage of disposable personal income, we are at an all-time low.



Here’s a visual representation of mortgage debt as a percent of income:Furthermore, according to a new report from ATTOM Data Solutions, more than 1-in-4 homes with a mortgage have at least 50% equity. The report explains:

“[O]ver 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 834,000 from a year ago to a new high as far back as data is available, Q4 2013.”

Bottom Line

Unlike 2008, homeowners have a comfortable level of mortgage debt and are sitting on massive amounts of home equity. They will not be walking away from their homes if the housing market begins to soften.

5 Actionable Ways to Attract Millennial Home Buyers

Millennials are getting the brunt of the blame for killing many industries that were supported by previous generations but, as it turns out, the real estate industry is alive and well. Understanding what Millennials are looking for in a potential home is imperative if you want to succeed as a real estate professional, as more Millennials are starting to search for their first home. Taking certain actions can give you an edge in attracting the Millennial market.

Highlight the Flexibility of Open Spaces
If Millennials are one thing, it’s indecisive. They’ve grown up with the idea that they can go anywhere and do anything. The trouble is that they want it all and can be fickle about where to settle. They may enter the home buying market several times before they seal the deal. What if there’s a career change? Are kids in the future or not? Maybe the contract job (and the regular income) will dry up. To close the deal with a Millennial buyer you have to show off, for example, how the spare room can be used either as an office or as a nursery. It can even be used to generate income by renting it out on space-sharing apps or to a regular renter.

Sell the Potential of Genuine Fixer-uppers
Saddled with debt and settled in lower-paying jobs, most Millennials can’t afford much more than a small, basic house. They understand that there is a potential value in a bigger home in questionable condition, though. Armed with confidence and education (and home-flipping reruns on TV), they are often open to investing in fixer-uppers. In a market where another agent is a text message away from a skeptical Millennial, don’t lose the trust of a potential buyer by trying to sell a lemon.

Balance Eco-friendly Features With Home Automation
If you want to catch the attention of the growing Millennial market, showcase how eco-friendly and smart the property is (or can be)! Be sure that a high-speed internet connection is available, and if not, research an alternative. Exchange appliances that are not energy efficient for ones with smart features. Being green is just as important, so consider advising the seller to invest in solar panels. Also, be ready to show off the outdoor living and gardening space.

Voice-recognized smart home devices from major tech companies are taking over home features. Demonstrate ways that the home can be fully automated with the right products and efforts. Consider featuring safety devices like security cameras or doorbell cameras that are tied into a smartphone app. Smart thermostats are becoming the norm as well, even in rented spaces.

Focus on the Convenience of the Location
The character of the home and neighborhood matters to Millennials, so point them to quaint communities, local small businesses, and art districts. They tend to work outside of the formerly typical nine-to-five, so routine meals go by the wayside. Proximity to restaurants and delivery options is important. Also, many Millennials enjoy non-motor transportation, as well, so distance from work hubs matters.

Since they also need to be able to afford it, a home in the suburbs may be necessary. If a home is located where a commute would be a necessity, be ready to provide travel times, fastest routes, and multitasking ideas like listening to podcasts or staying current on the latest news on NPR.

Assure the Simplicity of It All
Millennials pride themselves in not wanting to “adult.” Growing up, they weren’t involved in home projects outside of routine chores and many are often not concerned with home skills that were once considered common. Draw Millennials in with properties that come with amenities such as lawn maintenance or consolidated billing, but do avoid demanding Homeowners Associations. Update exterior features that require regular maintenance (a shingle roof to a metal roof, for example).

Prepare your buyers with the knowledge that will give them the confidence to close. Have a website or print-out of information that will let them know what to expect in terms of processes and costs of services related to purchasing a home. Millennials will close much more readily when they understand the system.

What The Seller Should Expect from a Home Inspection

Home inspectors should be a welcome part of the home buying process for the seller the agent and the buyer. Not only will the inspector provide a list of items that need attention, but they also, by the process of elimination, indicate all the areas of the home that are in working order. If you're the seller or agent, the home inspection process can be a seamless one if you follow some basic steps.

Make Repairs

Home inspectors are understandably meticulous when they look over the house. After all, that is what they are being paid for. It is the inspector's job to find any existing issues or potential concerns, but that doesn't mean they are going to tear the house apart and write up everything they see.

One area that they will pay special attention to are leaks. Be sure that anything that could be leaking is in good working order before inviting the inspector and the buyers into your home. Some things to look out for include:

• Basement or crawl space water seepage
• Appliances
• Supply and waste plumbing
• Crawlspaces and attics
• HVAC units

A Clean House is a Happy House

You want to make a good impression on the prospective buyers as well as the inspector. It never hurts to clean the home before anyone arrives. Sweep, mop, vacuum, and dust to leave a fresh scent in your wake. Make sure any clutter or personal effects are put away and out of sight.To Stay or To Go

Whether you decide to stay or go during the home inspection is ultimately your decision. It never hurts to ask the agents involved if the buyers have a preference. They may want you there to show them the trick to getting into the attic or where you've hidden the shed key. This can also be helpful for the inspector.

Knowing that your home is ready for another family’s memories is a little bittersweet, but it’s worth it. The home inspection process will go more smoothly if you prepare for it ahead of time.