Tips to Beat the Heat While You DIY

When you’re a DIYer, it’s not unusual to have a variety of projects to work on over the summer. Some projects require warm temperatures and long days to get everything done, while others just happen to pop up during the summer months. Regardless of the reason you’re working on things during the summer, there’s one inevitable truth that you’ll have to face: It can get really hot when you’re working on things around the house during the summer months and into early fall.
Obviously, every summer sees higher temperatures than other seasons. In recent years, though, we’ve experienced some of the hottest summers on record. Too much heat and sun exposure can cause a variety of serious health issues including heat stroke and heat exhaustion, so it’s important to play it safe when you’re working out in the sun. Here are just a few things that you can do to avoid heat-related problems.

Stay Hydrated

This one should be obvious, but you’d be surprised at how many people don’t drink enough during the hot summer months. Increase your water intake before, during and after any periods where you’ll be out in the heat and sun. As hard as it is to hear, you should also try and avoid coffee, tea and other drinks with caffeine before going out in the sun as well, because the caffeine content can actually make you lose more water. Avoid sugary carbonated drinks and alcohol, though the occasional sports drink or other beverage with electrolytes won’t hurt, since your body needs electrolytes for proper functioning, as well.

Take Your Time

Depending on the conditions you’re used to, it can take anywhere from 7 to 14 days for your body to get used to high temperatures. If you’re going to be working outside a lot in the heat, then you should increase your heat exposure gradually. If you’re used to air conditioning, trying to take on a full workload outdoors can significantly increase your risk of heat-related health problems. Instead, try tackling smaller tasks with big breaks between until your body gets accustomed to being out in the sun.

Dress for the Weather

When it’s hot, it’s tempting to wear as little as possible. This can be a bad idea when you’re working outdoors, though. Not only does less fabric increase your risk of sunburn but it can also make you more likely to experience some sort of injury when you’re working. Contrary to what might seem logical, you should cover up more when working out in the heat. Cover as much of your skin as possible with light-colored, lightweight material that’s loose enough that it doesn’t cling to your body. Choose a fabric that breathes, or clothes made of wicking material designed to help keep you cool. Don’t forget a hat and sunglasses or other eye protection, either. Not only will this keep you from getting burned, but it will also slow down the rate at which your sweat evaporates (which is a good thing, as it will keep your body cooler than sweat that evaporates quickly.)

Build Some Shade

One thing that can make a big difference when working outside is having a little bit of shade to take a break in. In some cases, you’ll have plenty of trees or other overhangs to create shade for you. If you’re not that lucky, build a small shelter from the sun using some posts and a tarp or other material that can block the sun (making sure that you only cover the top and not the sides to allow for airflow.) If you really want to maximize the value of this cool-down spot, set up a fan that you can turn on to create a little bit of artificial airflow, if there isn’t any breeze when you stop for a break.

Watch for Warning Signs

Common signs of heat-related illness include greater-than-expected amounts of sweat, confusion, lightheadedness, slurred speech, dry skin, increased body temperature and loss of consciousness. If you start to notice any of these issues, get out of the heat immediately and seek medical assistance, if necessary. Since some of these symptoms can be hard to identify in yourself, it’s also not a bad idea to have a friend or family member come check on you at least once an hour to make sure that you aren’t starting to show signs of overexposure.

iBuyers: What Is the “Cost of Convenience” When Selling Your Home?

When thinking about selling their house, homeowners have many options. A relatively new option is using an “iBuyer.” What is an iBuyer?

According to Jovio, the definition is:

“A company or investor that uses Automated Valuation Models (AVMs) to make instant offers on homes. It allows sellers to close on a property quickly. Once sold, the company then turns around and resells the home for a profit.”

Today, there are many iBuyer companies such as OfferPad, Zillow Offers, Knock, Opendoor, and Perch. Even some more traditional companies offer the same or similar services (ex. Keller Williams, Redfin, Realogy). Ivy Zelman reported in her ‘Z’ Report that some traditional brokers are partnering with some of the larger iBuyers too:

“Keller Williams announced a partnership with Offerpad, aligning the largest franchise-based brokerage brand in the U.S. with the five-year-old iBuyer. The move follows Realogy’s partnership with Home Partners of America last year as an established brokerage player more directly providing an iBuyer alternative…
Likewise, in early July, Redfin and Opendoor announced a partnership, starting in Phoenix and Atlanta – aligning interests of the 13-year old, tech-enabled and value-focused brokerage with the largest and longest-standing iBuyer. Outside of these larger scale alliances, Zillow’s strategy has been to work with local brokerages as partners on a market-by-market basis.”

Does it make sense to sell your home to an iBuyer?

It depends. Collateral Analytics recently released a study which revealed the advantages and disadvantages of using an iBuyer. According to the study, if the homeowner is looking for the convenience of a quick sale with less uncertainty, using an iBuyer may make sense.

“iBuyers offer quicker closings for sellers who would like to avoid the uncertainty of knowing when and if their home will sell. For motivated sellers who want a predictable sale date and need to move, perhaps a long distance from the current location, there is no question that iBuyers have provided a welcome alternative to traditional brokerage.”

The study, however, also showed there is a cost for that convenience. Collateral Analytics explained:

“Traditional brokers fees generally range from 5% to 7% of the sales price…In addition to this cost, buyers typically pay some closing costs including lender related charges in the range of 1% to 3%.”

In contrast:

“iBuyers charge sellers a ‘convenience fee’ of 6% to 9.5%, some also charge the seller for fees typically paid by buyers at closing adding another 1% or more. Most iBuyers will inspect the home, assess a generous home repair allowance and negotiate a (an additional) credit to handle such repairs…Overall the total direct costs, ignoring repair credits, will run 7% to 10% for an iBuyer, versus the typical 5% to 9% combined seller and buyer costs with a traditional broker. Yet, that is not the end of the story or comparison.”

The study went on to explain how iBuyers need to charge even more because they have additional expenses beyond that of the traditional broker. They include:

1. Carrying costs involving significant amounts of capital – The iBuyer must pay the expenses of the house between the time they purchase it and the time they sell it to a new buyer.
2. Safeguarding the home risks – A home with an iBuyer ‘For Sale Sign’ alerts anyone passing that the house is vacant. The study suggests that these homes could become targets for vagrants and criminals.
3. Adverse selection risks – The study explains that since iBuyers use computer models to determine their offer, they may be unaware of certain challenges in the neighborhood that could adversely impact the value.
4. Potential home price declines – As the survey states:

“A downturn in home prices, not forecast by the iBuyer market analysts could be devastating as they ramp up their business platforms, particularly if the cost of capital increases. At the same time, downturns are precisely when the most sellers would want this option.”

Bottom Line

After taking a thorough look at the iBuyer platform, the study concludes that using an iBuyer is more expensive for the homeowner than the traditional brokerage model, but for some sellers, it may still make sense:

“These preliminary empirical results suggest that sellers are paying not just the difference in fees of 2% to 5% more than with traditional agencies, and a generous repair allowance, but another 3% to 5% or more to compensate the iBuyer for liquidity risks and carrying costs. In all, the typical cost to a seller appears to be in the range of 13% to 15% depending on the iBuyer vendor. For some sellers, needing to move or requiring quick extraction of equity, this is certainly worthwhile, but what percentage of the market will want this service remains to be seen.”

Top Priorities When Moving with Kids

According to the Pew Research Center, around 37% of U.S students will be going back to school soon and the rest have already started the new academic year. With school-aged children in your home, buying or selling a house can take on a whole different approach when it comes to finding the right size, location, school district, and more.

Recently, the 2019 Moving with Kids Report from the National Association of Realtors®(NAR) studied “the different purchasing habits as well as seller preferences during the home buying and selling process.” This is what they found:

When Purchasing a Home

The major difference between the homebuyers who have children and those who do not is the importance of the neighborhood. In fact, 53% said the quality of the school district is an important factor when purchasing a home, and 50% select neighborhoods by the convenience to the schools.
Buyers with children also purchase larger, detached single-family homes with 4 bedrooms and 2 full bathrooms at approximately 2,110 square feet.

Furthermore, 26% noted how childcare expenses delayed the home-buying process and forced additional compromises: 31% in the size of the home, 24% in the price, and 18% in the distance from work.

When Selling a Home

Of those polled, 23% of buyers with children sold their home “very urgently,” and 46% indicated “somewhat urgently, within a reasonable time frame.” Selling with urgency can pressure sellers to accept offers that are not in their favor. Lawrence Yun, Chief Economist at NAR explains,

“When buying or selling a home, exercising patience is beneficial, but in some cases – such as facing an upcoming school year or the outgrowing of a home – sellers find themselves rushed and forced to accept a less than ideal offer.”

For sellers with children, 21% want a real estate professional to help them sell the home within a specific time frame, 20% at a competitive price, and 19% to market their home to potential buyers.

Bottom Line

Buying or selling a home can be driven by different priorities when you are also raising a family. If you’re a seller with children and looking to relocate, contact a local real estate professional to help you navigate the process in the most reasonable time frame for you and your family.

Is It Time to Put Your Home on the Market?

Moving is never easy, but sometimes it is necessary. If you think you may be on the cusp of a move, take a look at these telltale signs it's time to put your home on the market and move to a new home!

#1: Lack of Space

Have you outgrown your home? Are you tired of constantly bumping into family members trying to make it to the bathroom or sharing an office with a newborn? One of the top reasons people sell their homes is because of lack of space to accommodate a growing family. As your children grow up, they will want more space of their own and sometimes this requires making a move into a larger and more spacious home. If your mother-in-law is moving in, you may want to start searching for a home with a guest house or mother-in-law suite! 

#2: Too Much Space

Do you have rooms that are empty in your home? If your children have left you an empty nest, then it may be time to downsize and move into a home that is more appropriate for your smaller family.

#3: Location

Last summer you may have taken a vow to never endure the hot Texas heat again. You may have even been searching online for homes in a cooler location. After weathering the dry heat for years, you may decide to sell your home and move to a colder climate. Moving to a better location is another top reason why many people sell their homes.

#4: Financial Reasons

Do you have high utility bills or a hefty mortgage? It may be time to move from that expensive area to a more affordable community to bring you peace of mind and less financial stress.

#5: Relationship Status Change
If you have gotten married, it may be time to find your first house together to begin your marriage. That small apartment or bungalow may have worked for just you, but when your significant other moves in, having only one sink or bathroom may not be ideal to start your marriage.

#6: Retirement

If you have retired, you now have time to golf, play tennis, go on vacations and hang out with grandchildren. If your current home is too much maintenance for you to handle after retirement, it may be time to move on to a home that better suits your needs.

#7: Wanting a Shorter Commute

Driving to and from work in traffic isn't anyone's idea of a good time. Moving closer to your office is a big factor when it comes to selling a home. If the longevity of your career looks promising, living closer to work is a great reason to put your home on the market.

Thinking about making a change? I'd love to help. Contact me today to learn more about your options.

Experts Predict a Strong Housing Market for the Rest of 2019

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019.

Here’s what some of the experts have to say:

Ralph McLaughlin, Deputy Chief Economist for CoreLogic

“We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.”

Lawrence Yun, Chief Economist at NAR

“We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.”

Freddie Mac

“The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months…The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”

Bottom Line

The housing market will be strong for the rest of 2019. If you’d like to know more about your specific market, contact a local real estate professional to find out what’s happening in your area.

10 Easy Ways to Live Green

Living a more eco-friendly lifestyle is top of mind for more people every day. Happily, it doesn’t take a superhuman effort to do so, and it may even save you a few bucks.

Ecologists suggest simple tips for creating a lifestyle that should help make you – and the planet we live on – proud:

Be coffee savvy – If you brew your own, use a USDA Certified Organic brand, meaning it was grown using sustainable standards. If you stop for coffee every morning, take a reusable cup with you.

Save on printer/copier paper – Whenever possible, print double-sided pages, or re-use sheets of paper for notes, using the blank side before disposing of it.

Start kids young – Train them early to turn off the water while they brush their teeth. Encourage older kids to recycle aluminum cans and plastic bottles, redeeming them for cash they may keep.

Slow down and get pumped – Driving 10 mph above 60 is like adding nearly 50 cents to the price of a gallon of gas, since higher speed equals more guzzling – and check your tire pressure monthly. Adding air as needed can improve mileage by about three percent.

Install dimmer switches – Using them judiciously in the living room, dining room and bedrooms can save you up to $35 annually in electricity costs.

Coddle your water heater – Wrapping an insulation blanket around it can lower its running cost by about nine percent a year.

Buy a water filter – Use a faucet-mounted water filter and refillable bottles. By giving up bottled water, a family of four can not only conserve resources, but also save about $1,250 a year.

Recycle jars and plastics – Empty baby food jars are great for storing screws, nails, and craft supplies, larger jars for storing leftover soups and more – and reuse plastic sour cream, cottage cheese and whipped topping containers to send home ‘care packages’ for your guests and/or for all sorts of leftovers.

Get off junk mail lists – Unwanted catalogs are destroying trees for no good reason. Make the calls and get yourself off their mailing lists.

Grab microfiber – Buy a stack of inexpensive microfiber kitchen towels. One microfiber cloth can take the place of 60 rolls of paper towels before it needs replacing.

Invest in Equity Build-up

Equity build-up could be one of the biggest advantages to buying a home.  There are two distinct dynamics that take place to make this happen: each house payment applies an amount to reduce the mortgage owed and appreciation causes the value of the home to go up.

It is easy to make a projection based on the type of mortgage you get and your estimation of appreciation over the time you expect to own the home.  Even conservative estimates can produce impressive results.

Let's look at an example of a home with a $270,000 mortgage at 4.5% for 30 years and a total payment of $2,047.55 payment including principal, interest, taxes and insurance.  The average monthly principal reduction for the first year is $362.98. If you assume a 3% appreciation on the $300,000 home, the average monthly appreciation is $750 a month.

The total payment of $2,047.55 less $1,112.98 for principal reduction and appreciation makes the net monthly cost of housing, excluding tax benefits, $934.57.  If this hypothetical person was paying $2,500 in rent, it would cost them $1,565.43 more to rent than to own.  In the first year, it would cost them over $18,000 more to rent.

Together, the items in this example contribute over $1,100 to the equity in the home .  This is one of the reasons a home is considered forced savings.  By making your house payments and enjoying increases in value, the equity grows and the net cost of housing decreases by the same amount.  

In this same example, the $30,000 down payment grows to $133,991 in equity in seven years.  While this is equity build-up, the extraordinary growth is attributed to leverage.  Leverage is an investment principle involving the use of borrowed funds to control an asset.

Seniors Are on the Move in the Real Estate Market

Did you know August 21^st is National Senior Citizens Day? According to the United States Census, we honor senior citizens today because,

 “Throughout our history, older people have achieved much for our families, our communities, and our country. That remains true today and gives us ample reason…to reserve a special day in honor of the senior citizens who mean so much to our land.”

To give proper recognition, we’re going to look at some senior-related data in the housing industry.
According to the Population Reference Bureau,

“The number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, and the 65-and-older age group’s share of the total population will rise from 16 percent to 23 percent.”

Seniors Believe in Homeownership

In a recent report, Freddie Mac compared the homeownership rates of two groups of seniors: the Good Times Cohort (born from 1931-1941) and the Previous Generations (born in the 1930s). The data shows an increase in the homeownership rate for the Good Times Cohort because seniors are now aging in place, living longer, and maintaining a high quality of life into their later years.This, however, does not mean all seniors are staying in place. Some are actively buying and selling homes. In the 2019 Home Buyers and Sellers Generational Trends Report, the National Association of Realtors® (NAR) showed the percentage of seniors buying and selling:

Here are some highlights from NAR’s report:

• Buyers ages 54 to 63 had higher median household incomes and were more likely to be married couples.
• 12% of buyers ages 54 to 63 are first-time homebuyers, 5% (64 to 72), and 4% (73 to 93).
• Buyers ages 54 to 63 purchased because of an interest in being closer to friends and families, job relocation, and the desire to own a home of their own.
• Sellers 54 years and older often downsized and purchased a smaller, less expensive home than the one they sold.
• Sellers ages 64 to 72 lived in their homes for 21 years or more.

Bottom Line

According to NAR’s report, 58% of buyers ages 64 to 72 said they need help from an agent to find the right home. The transition from a current home to a new one is significant to undertake, especially for anyone who has lived in the same house for many years. If you’re a senior thinking about the process, work with a local real estate professional who can help you make the move as smoothly as possible.

This Week in Atlanta: Summer Shade Festival; Bar Crawl & More!

Experience what Atlanta is known for by stopping by these upcoming events.

Munch on specially made chicken wings at the yearly local showdown or stroll through the city’s oldest surviving city park at the Grant Park Summer Shade Festival.

Summer Halloween Carnivale 

When: Aug. 23, 6 p.m. to 12 a.m.

Where: The Bakery Atlanta, 825 Warner St, Atlanta

Cost: Free

It’s going to be Halloween in August at The Bakery Atlanta’s upcoming carnival. From tarot readings to costume contests, there will be an array of ways this event will be bringing the holiday to the summertime.

The Africa Expo-ATL 2019

When: Aug. 24, 10:30 a.m. to 8 p.m.

Where: Global Ministries, 458 Ponce De Leon Ave. Northeast, Atlanta

Cost: $20 for General Admission

The second annual Africa Expo will be featuring dance lessons, entrepreneurship panels, family yoga, a fashion show and more.

Atlanta Tacos & Margs Crawl

When: Aug. 24, 12 p.m.

Where: City Tap House Atlanta, 848 Peachtree St. Northeast, Atlanta

Cost: $24.99 for General Admission, $49.99 for VIP

The crawl will be including bars in Midtown such as Takorea, Taco Mac and City Tap House. General Admission includes access into the bars and specials at the establishments. VIP tickets will also buy patrons access to one hour of unlimited tacos and margarita tastings.

Grant Park Summer Shade Festival

When: Aug. 24, 10 a.m. to 10 p.m., and Aug. 25, 11 a.m. to 7:30 p.m.

Where: Grant Park, 840 Cherokee Ave SE, Atlanta

Cost: Free

See what Grant Park is all about at this annual festival from the food trucks to live music. Some musicians coming out include Cicada Rhythm and Jimmy Galloway Guitar.

Springer Mountain Farms’ Southern Wing Showdown 

When: Aug. 25, 1 to 5 p.m.

Where: The Fairmont, 1429 Fairmont Ave. NW, Atlanta

Cost: $55 for General Admission, $65 for VIP First Taster Ticket

Get your fill of mouth-watering chicken wings at this annual showdown from the 25 local restaurants that will be in attendance, such as Seven Lamps, Twisted Soul Cookhouse and Pours and Canoe. General admission will get an all-inclusive tasting of wings and VIP attendees will get in an hour early.

A Great Way to Increase Your Family’s Net Worth

Every three years, the Federal Reserve conducts its Survey of Consumer Finances. Data is collected across all economic and social groups. The latest survey data covers 2013-2016.

The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

Owning a home is a great way to build family wealth.

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
That is why Gallup reported Americans picked real estate as the best long-term investment for the sixth year in a row. According to this year’s results, 35% of Americans chose real estate. Stocks followed at 27%, then savings accounts and gold.

Bottom Line

If you want to find out how you can use your monthly housing cost to increase your family’s wealth, meet with a real estate professional in your area who can guide you through the process.

Worried About Overpaying on Your Next Home?

When buying a home, one of the most important considerations in our choice of property and a critical component of the purchase process is the price. With home prices continuing to rise as the market regains traction, it is more important than ever to be informed regarding the financial considerations to avoid paying too much for your next home.
Follow these six important strategies to help keep from overpaying on your next home. 
1. Research the comps. To know what the right price should be for a home, you first need to know what similar properties are selling for in that area. You will want to look at homes that are similar in size and condition. The comparable sales data or comps will give you recent sales information. Make sure to find at least three relatively similar properties in the neighborhood that you are interested in - your Realtor will be able to assist you in finding the correct data.
2. What is the right price for you? The right price for each buyer is going to vary. We all have different thresholds for which we are willing to pay and different amenities that are important to us. Sometimes paying a little more will make sure that you don't lose out on your dream home. However, always keep your bottom line in mind.
3. Shop around for your mortgage. Fees and interest rates vary from lender to lender. Take the time to compare before you decide on the lending institution. This could save you considerably each month on your mortgage payments.
3. Research current events. Find out as much as you can about the neighborhood, the town and the city. It will make a significant difference in the price of a home if there are plans for new schools or if there are negotiations in the works to put a highway overpass close by. You will want to make sure that you don't have any surprises. Also, if applicable, look into the Homeowner's Association, its rules and fees.
4. Have an appraisal. If your appraisal comes in lower than the negotiated price, an appraisal contingency will ensure that you aren't overpaying. You may need to renegotiate the price with the seller or you will have to come up with the difference.
5. Always have a Realtor. A professional real estate agent who is representing you as a buyer will have first-hand, expert knowledge of the local housing market. Realtors' expertise in market conditions and knowing what constitutes a fair price and their ability to represent you in a bidding war could be invaluable.
6. Avoid a bidding war! Don't get trapped into a price guessing game with other buyers for the same property. Don't change your bid. Instead, be preapproved for your mortgage and make a strong initial offer.
While buying a home can be an exciting challenge, you don't have to overpay. Contact me today for more information about the home buying search and what your local market is saying.

Summer Organization to Keep You Sane

Spring cleaning is the buzzword every March, but what about summer cleaning? By now the kids are out of school and there are probably winter coats and extra clutter lying around. The days are longer and the sun is brighter, so why not get organized this summer?

Purge Paper Clutter

Are there kids’ drawings, unopened mail and receipts lying around? Stacks of paper are overwhelming to the eye, but there is light at the end of the tunnel! Get it all under control by creating a mail center in a central area of the home, making it a habit to sort and file your mail daily.

• Stacked letter trays can move out of the office; they’re perfect for creating a functional spot to sort mail! Label the trays: To Do (bills to pay or RSVP’s to respond to) and File (things to put in your personal files).
• Invest in a paper shredder for documents you don’t want prying eyes to see.

Store Seasonal Clothes

The blazing summer sun makes woolen socks and turtleneck sweaters moot for the next three months. Why not develop a system for storing out-of-season clothes?

• Large plastic bins and canvas garment racks are the perfect solutions for storing bulky items. They keep pests away and protect your clothes from the elements.
• Launder all your winter clothes and be sure they are thoroughly dried before packing them away. A dryer sheet or two will keep them smelling fresh.

Get Rid of Cluttered Surfaces

Tabletops and counters are clutter’s BFF, so separate the two by clearing all surfaces. This can seem daunting, especially if there is a lot, but going room-by-room can make it easier.

• You might be amazed at what you can get rid of. Purge all your clutter and ask yourself: Is this worth keeping?
• This includes toys. Your kids will probably never miss half of their toys if you get rid of them, so be sneaky and donate some of their extras.

Decluttering is a job, but it’s such a satisfying one. Get your home organized for a relaxing, stress-free summer.

The Benefits of Growing Equity in Your Home

Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners.

1. Move-Up Opportunity

With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic,

“In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.”

This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home.

2. Gain in Seller’s Profit

ATTOM Data Solutions recently released their Q2 2019 Home Sales Report, indicating the seller’s profit jumped at one of the fastest rates since 2015. They said:

“A look at the national numbers showed that U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since the original purchase of $67,500…the average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of the original purchase price.”

Looking at the amount paid when they bought their homes, and then the amount they received after selling, we can see that some homeowners were able to walk away with a significant gain.

3. Out of a Negative Equity Situation

Negative equity occurs when there is a decline in home value, an increase in mortgage debt, or both. Many families experienced these challenges over the last decade. According to the same report from CoreLogic,

“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $485.7 billion since the first quarter 2018, an increase of 5.6%, year over year.
In the first quarter of 2019, the total number of mortgaged residential properties with negative equity decreased…to 2.2 million homes, or 4.1% of all mortgaged properties.”

The good news is, many families have moved beyond a negative equity situation, and no longer owe more on their mortgage than the value of their home.

Bottom Line

If you’re a current homeowner, you may have more equity than you realize. Your equity can open the door to future opportunities, such as moving up to your dream home. Contact a real estate professional in your area to discuss your options and start to put your equity to work for you.

5 Real Estate Reality TV Myths Explained

Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of shows like “Property Brothers,” “Fixer Upper,” and “Love It or List It,” all in one sitting.

When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, you may need a reality check.

Reality TV Show Myths vs. Real Life:

Myth #1: Buyers look at 3 homes and decide to purchase one of them.
Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors, the average homebuyer tours 10 homes as a part of their search.  
Myth #2: The houses the buyers are touring are still for sale.
Truth: Everything is staged for TV. Many of the homes shown are already sold and are off the market. 
Myth #3: The buyers haven’t made a purchase decision yet.
Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy. 
Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.
Truth: Of course, this would be great! Open houses are important to guarantee the most exposure to buyers in your area, but they are only one piece of the overall marketing of your home. Keep in mind, many homes are sold during regular showing appointments as well. 
Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.
Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives and goals.

Bottom Line

Having an experienced professional on your side while navigating the real estate market is the best way to guarantee you can make the home of your dreams a true reality.

Looking to Buy Your First Home? Settle These Things First

Very few events in your life are going to be as exciting as purchasing a home, but first-time buyers need to remember that this process can be very complicated. Well before you make an offer on a home, you will need to carry out a few important tasks:

Narrow Down the Location

Finding a great neighborhood can be quite challenging, and you don't want to bid on a beautiful home in the wrong location. After you've narrowed your search to a few specific neighborhoods, you should try to visit those areas during different times of the day. You also need to speak with some of the homeowners and neighbors about the pros and cons of those areas.

Get Pre-Approved

Just about any lender that offers conventional mortgage services can pre-approve you for a mortgage loan. Once you've been approved, you will know exactly how much money you can offer and which price range you should be looking at. Many sellers are also very eager to work with buyers who have been pre-approved because closing will take just a fraction of the time. This also can help you avoid looking at homes that you know you won't be able to afford.

Write Out a List of Necessities

It might be tempting to look at luxurious homes with incredible upgrades, but the necessities should always come first. Some of the variables that you'll need to consider include the location of the home and the total number of bedrooms. You might also be interested in the age of the appliances. Buying a home with older appliances might be cheaper initially, but you could end up spending thousands to replace those gadgets in the coming years.

Establish a Moving Plan

Every step of your move doesn't need to be planned out before you make an offer, but there are a few considerations that you and your family will need to discuss. Some buyers decide to take one or more weeks off work, while others prefer to hire professionals who can do most of the hard labor. You must contact all of the utility companies, as well, to see if they offer any moving packages that allow you to quickly switch from one address to another.
Another vital step in this process is having the home inspected before you sign any paperwork. An experienced inspector will carefully look over every inch of the property and make sure that there are no dangerous issues that need to be addressed.

Tips for Maintaining Your Sanity While Selling

When selling a home, sometimes it’s a good idea to just clear your head. Do something fun and don’t think about showings or bids or worry about what an inspection will reveal. Here are some great activities that you can do to take your mind off your real estate needs for a while.

Hit the road. Pack an overnight bag and go on a little adventure. There are probably plenty of places within a few hours’ drive that will offer fun and excitement—a winery, a casino resort, a great hiking area, etc. For those moving to a new state, this could be your last chance to visit these areas, so make a day or two of it.

Binge a TV show. It’s easy to forget the stresses of life when binge-watching a show, so choose the latest buzz-worthy offering and spend a weekend watching one episode after another. Be sure to keep your cell phone out of sight so you can get lost in the show and not have real life interrupt.

Take in a sporting event. Visit the local ballpark, stadium or arena during their respective seasons. If you don’t have a major league team you follow, check out the nearest minor league facility, or, better yet, go support your local high school’s sports team. Consider other sporting events as well, like lacrosse, tennis or soccer. It’s always fun to cheer for the home team and enjoy some snacks at the game.

See an old friend. Sure, you keep up with your old classmates and workmates on Facebook…but when was the last time you actually saw any of them in person? Get together for that lunch you’re always talking about or arrange a night out with a bunch of friends and hold a little reunion. Let the memories flow and talk about the good ole’ days.

Try something new. Have you been to an escape room? Ever done laser tag? Have you always wanted to try one of those art classes where you paint along with an instructor? Take the family to one of these fun activities and just enjoy a couple of hours away from cleaning and worrying about the house.


Selling a house might seem like a 24/7 proposition but make sure to take a deep breath and not let it be all consuming.

The VA Loan at A Glance!

If you're a #Veteran, now is a great time to use your #VA home loan benefits. One of the most unique benefits of the VA loan is that no down payment is required. That's great for military families under a budget crunch! Veterans can roll the VA funding fee into their home loan.

 

 

Determining Property Type

The Internal Revenue Service considers four different types of real estate.  Specific types of properties have benefits based on their classification.  The determination does not depend on the property itself as much as it depends on how the property is used and what the owner's intentions are.

Principal Residence ... a principal residence is the place a person lives or expects to return if they are temporarily away from it.  It could be a single family, detached home or condominium or a duplex, tri-plex or four-unit.  The owner(s) can deduct the qualified mortgage interest and property taxes on the schedule A of their tax return.  There is a capital gains exclusion on profit of up to $250,000 for a single taxpayer and up to $500,000 for a married taxpayer. 

Income Property - is improved property that is rented or leased to tenants as opposed to using it personally.  It can include houses and condos, apartment buildings, office complexes, shopping centers, warehouses and other commercial buildings.  Depreciation is allowed on the improvements.  For property held more than one year, the profits are taxed at long-term capital gains rates.  This type of property is eligible for a tax deferred exchange.

Investment Property ... can be raw land or improved property that is not rented or leased.  This property is not subject to depreciation.  If the property is held for more than one year, the profits are taxed at long-term capital gains rates.  It is also eligible for a tax deferred exchange. 

Dealer Property ... this type of property is primarily considered inventory because the intention is to sell it without intentionally holding it for more than a year.  It could be new construction such as a home builder.  It could be an investor who buys a property and expects to sell it for more.  There is not a requirement to make improvements.  The profits on dealer property are taxed as ordinary, "sweat of the brow" income.  Dealer properties cannot be exchanged.

A second home is like a principal residence in that you can deduct the interest and property taxes on your Schedule A, up to the limits.  A second home, as well as a principal residence, can be rented out up to 14-days a year without threatening the status of the property.  Seconds homes are not eligible for exchange because personal use properties are not allowed.  A second home is not a principal residence and profits are taxed like an investment property.  If you own it for more than a year, it is taxed at long-term capital gains rates.

Vacation homes are rented for more than 14 days a year and are like income property but with some additional rules that apply.  If your personal use is 14 days or less or 10% of the time it is rented, your expenses can be deducted in excess of income.  If you use it for more than 14 days or more than 10% of the number of days it is rented, it is considered personal use and your expenses are limited to the amount of income collected with no losses being deductible.

Taxpayers can strategically change the property type based on their intentions.  A principal residence can be converted to income property.  Dealer property could become a principal residence.  A rental property could become a principal residence.

How Much Do You Know About Down Payments?

Whether you’ve owned a home before, or you’re ready to jump into homeownership for the first time, there are always a lot of questions swirling around about what is truly required for a down payment, and how to best source down payment assistance. Let’s tackle these two today.

1. How much do you really need for a down payment?

There is a long-standing misconception about down payment requirements. A survey from Fannie Mae shows only 17% of consumers know the minimum options are actually between 1 – 5% of the purchase price and 40% don’t know how much they need at all.There are many mortgage loans available that require as little as 3% down for first-time buyers, and some ask for only 3.5% down from repeat buyers. There are even loans available for Veterans that provide 0% down payment options too.


We’ve mentioned recently that you don’t need to come up with a 20% down payment to buy, and we’ve also shared how quickly you can save for a 3% or 10% down payment, depending on where you live. If you’re planning to put down just 3%, the research shows it may be possible in most states to have enough saved for a down payment in less than a year. That puts homeownership in a much closer reach for many potential buyers, maybe even you!

2. How can I get help with my down payment?

Regardless of the loans available, many buyers still need assistance with a down payment. The great news is, there are a lot of ways to tap into down payment assistance options. Here are just a couple of them:

Assistance from Family Members

The National Association of Realtors (NAR) said, “a third of recent first-time buyers received down payment assistance from family members.” They also mentioned, “the average net worth of those aged 75 and over stands at $264,800…They just might offer the boost the next generation needs to become homeowners.”

That means one of the ways to find help with a down payment is to accept a gift from a family member. If this is an option for you, make sure you talk to your loan officer before you accept the money, to ensure you document the process the way it is required by your loan. This way, it will be received properly and you can still potentially qualify.

Down Payment Assistance Programs

The reality is, not everyone has a loved one or a family member who can provide help with a down payment. There are, however, more than 2,500 down payment assistance programs available (by local areas like city, county, or neighborhood), and some of them are even specifically for first-time buyers.
The gap, as mentioned in the same survey, is “only 23% of consumers are familiar with low down payment programs.”

That’s why it is so important to get familiar with these options by doing your homework before you plan to buy a home. Determine what is available in the area where you ultimately want to live, so you have all the details you need to take advantage of the down payment assistance option that is best for your family.

Bottom Line

If buying a home is one of your long-term goals, you may be able to get there sooner than you think by tapping into one of the many down payment assistance programs available.

Weeds, Wildflowers or Invasive Plants?

If you have plants popping up in your yard that you didn’t plant, your first instinct may be that it’s a weed. You very well might be right; after all, what are weeds except for unwanted plants? At the same time, it’s possible that you’ve got wildflowers growing on your property. Depending on your view of wildflowers, that could change things significantly.

Wildflowers can do a lot of good for bees and other local pollinators, giving a boost to your local ecosystem and adding some beauty to boot. If the flower is from an invasive species, though, even something useful can cause a lot of harm over time. How are you supposed to keep all of this straight, so you’ll know what to pull and what to leave alone?

All About Weeds

So what is a weed? It’s an unwanted plant, sure, but it is also a plant that will compete with your existing flowers and other plant life for resources. A good example of this is clover in your lawn. As time goes by, the clover out-competes the grass and largely takes over your yard. You’ll face similar problems with any weed if it manages to become established.

One of the things that makes weeds so competitive is that most of the time you can’t just pull them up and be done with them. Dandelions are typically considered a weed, and even if you pull up a dandelion early you’ll still see more in your yard. This is because they have deep root systems that continue growing even if the flower is pulled free. Really getting rid of weeds means figuring out what the weeds are and what the proper way to eliminate them is.

Weeds vs. Wildflowers

Some weeds (including the dandelions and clovers mentioned above) produce flowers and are usually frequented by bees and other pollinators. Despite this, they’re still considered weeds instead of wildflowers. So what’s the difference between the two?

The primary difference between weeds and wildflowers is how they grow. Weeds tend to spread once established, growing to consume as many additional resources as they can and spreading their seeds as far as possible. Wildflowers are not as aggressive with their growth, instead growing densely in an area and spreading out from that area at a slower pace. This is why wildflowers are not generally considered competitive with existing plants; they aren’t likely to overrun an area in a short period of time and are much easier to contain to a single area.

Invasive Plant Species

One thing to keep in mind is that both weeds and wildflowers can be considered invasive. For that matter, even some of the plants you buy at nurseries are considered invasive in some regions! An invasive plant species is one that is not native to the area, so other species aren’t able to compete with it as effectively as they would with plants that are native to the area.

This can be very problematic. Invasive species typically have different resource requirements than native species, so as they grow and spread, they may use resources in a way that shifts the balance of the local ecosystem. This shift can be very bad for local species, giving the invader a much stronger competitive advantage for those resources. In some cases, invasive species can actually eradicate native strains from the local area!

Identifying Unexpected Plants

If you want to promote the growth of wildflowers while getting rid of weeds and invasive plants, you need to learn to identify them. Search online to find out which weeds and invasive plants are common in your area, taking the time to search for images online so you can identify them even with slight variations in their appearances. There are also smartphone apps available that identify plants with a high degree of accuracy which you can use to identify weeds and invasive plants.

Another option is to take photos or clippings of the plants in question to your local agricultural extension office. They should be able to identify the plant for you and can also tell you whether it’s a weed or an invasive plant. If it needs to be removed, they can also provide suggestions for the most effective removal techniques.

Existing Home Sales Point Toward a Good Time to Sell [INFOGRAPHIC]

Some Highlights:

• Existing Home Sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June.
• Low inventory levels are still a factor in the market. The current supply of homes for sale is at 4.4 months, which is less than the optimal 6-month supply.
• Median home prices were up 4.3% from June 2018, hitting $285,700. This marked the 88^th consecutive month with year-over-year price gains.

How to Judge the Impact of the Next Economic Slowdown on Housing

We’ve experienced economic growth for almost a decade, which is the longest recovery in the nation’s history. Experts know a recession can’t be too far off, but when will this economic slowdown actually occur?

Pulsenomics just released a special report revealing that nearly 6 out of 10 of the 90 economists, investment strategists, and market analysts surveyed believe the next recession will occur by the end of next year. Here’s the breakdown:

• 9% believe a recession will occur this year
• 50% believe it will occur in 2020
• 35% believe it will occur in 2021
• 6% believe it will occur after 2021

When asked what would trigger the next recession, the three most common responses by those surveyed were:

1. Trade Policy
2. Stock Market Correction
3. Geopolitical Crisis

How might the recession impact real estate?

Challenges in the housing and mortgage markets were major triggers of the last recession. However, a housing slowdown ranked #9 on the list of potential triggers for the next recession, behind such possibilities as fiscal policy and political gridlock.

As far as the impact the recession may have on home values, the experts surveyed indicated home prices would continue to appreciate over the next few years. They called for a 4.1% appreciation rate this year, 2.8% in 2020, and 2.5% in 2021.

Bottom Line

On the same day, in the same survey, the same experts who forecasted a recession happening within the next 18 months also claimed housing will not be the trigger, and home values will still continue to appreciate.