Are The Bidding Wars Over?

Let’s face it, it’s fun to have a home listing during a seller’s market. When inventory is tight, even less-than-perfect homes invite the frantic bidding wars seen over the past few years. But as the economy slows down and interest rates increase, sellers are wondering if the bidding wars are over, and what that means for them.

First of all, bidding wars have occurred in every kind of real estate market. Well-positioned homes have always garnered attention and offers. What’s different in a seller’s market is that buyers are so desperate to find a home, that multiple offers seem to be normal on every listing. As the pace slows down, sellers need to adjust their expectations and avoid costly mistakes.

Seller Mistakes to Avoid in a “Normal” Market

· Bad Curb Appeal – Curb Appeal is once again important to making a good impression.

· Delayed Response – Don’t wait to respond to a buyer’s offer because you hope to have a bidding war.

· Unreasonable Demands – Buyers have choices now, be reasonable with the counter and contingencies.

· Highest Offer – Don’t assume that the highest offer is the best offer.

· Priced too Low or too High – Price the home correctly. Don’t play games with the price.

Finally, be patient. In a typical market, an average home is on the market 30-45 days. This is a change from the past few years, but a healthy real estate market benefits all parties.

Barndominiums – The Hottest Trend

For the past few years, people have been ruthlessly shedding the excess in their lives to squeeze into a home smaller than a walk-in closet. Well, move over tiny houses, millennials are trading their minimalist, cramped space for the expansive lifestyle of the barndominium.

A barndominium is a play on words originally used to describe a living space built inside a barn or auxiliary building primarily used to house on-site employees. Over time, it morphed to include guest suites or rental units over garages and now it incorporates a new design style. Barndominiums typically are mixed-use structures, including either a workshop, garage or other utility room.

Modern barndominiums use simple barn or industrial buildings and convert them to spacious homes. Often these can be added to an existing structure, but home builders have latched on to this growing trend with building kits or quick-install prefabricated buildings. All incorporate wide open spaces; a blank canvas for the homeowner to use in creating the perfect home for their needs.

Merging farmhouse rustic with contemporary industrial style, these homes offer big open rooms that often house living, dining, and kitchen areas. Because there is minimal internal construction – few walls, open ceilings – building costs are lower than traditional homes, making this an attractive option for younger home buyers who don’t want to sacrifice style to save money.

Barndominiums bring the simplicity of an urban loft to the softer, rustic design of an upscale farmhouse. After years of craving the simplicity of a tiny house, modern homebuyers are finally taking the concept of an easy lifestyle but enjoying the luxury of expansive living space.

Building Equity With a Home Improvement Plan

Your home is typically the largest financial investment you’ll ever make. Over time, we expect the equity to increase through increasing property values and a decreasing mortgage balance. While homeowners recognize the need to maintain the home in good condition, one of the best ways to maximize your home equity is to create a plan for ongoing improvements and updates.

Often the interest in a remodeling project results from either an unexpected windfall or financing for a specific project but by planning for ongoing improvements, any homeowner can engage in updates to stay current with market trends.

As tastes change, homebuyers are attracted to new features. Outdoor kitchens, great room configurations, and home offices are just a few of the trends from the past few years. More timeless desires include more square feet, chef’s kitchens, and spacious bathrooms. To stay ahead of trends and build equity, smart homeowners should build a plan for continuous improvements.

In addition to developing a fund, build a road map for upgrades and enhancements. Consider the life span of major systems, such as the roof or HVAC systems; is end-of-life a good time to switch to solar energy? Kitchen styles change dramatically every 10 years on average. Start saving for a kitchen style change on the same schedule. Can be a complete remodel or simply a new countertop.

You may not plan to sell your home for years, but things change. No one wants to consider listing a home that is outdated, taking the financial hit that comes with it. Now is the time to plan for regular updates to build equity, and you’ll enjoy the benefits of the changes too.

Considering Solar Panels?

With soaring energy costs, many homeowners are turning to solar for both their homes and their cars to save money. With solar companies touting huge monthly savings for electricity costs, how can you know what makes sense for your needs? Here are the basics of solar panels to help you start the process.

How do solar panels work?

Solar panels are positioned on your roof and absorb energy when the sun shines on them directly. The amount of energy generated will be affected by the amount of square footage of the panels. Therefore, your roof must have enough area with extended direct sunlight each day to be effective.

How to find a solar panel company?

There are a lot of solar panel companies advertising their service right now. Some companies specialize in panels as well as roofing companies adding solar as an option and big-box home improvement stores. It’s important to consider both price and expertise when choosing a contractor to install the panels. You should read reviews and get referrals before making a final decision.

How long will the panels last?

Solar panels are typically guaranteed to last 20-30 years. The amount of energy generated will decrease over time and you should choose a warranty that guarantees the amount of energy over the life of the panels.

Summary

Solar panels can offer significant energy savings and lessen your reliance on shifting prices. A solar system is also a large expense, so before purchasing or leasing a system, do your due diligence and learn your options.

Do You Need a Backup Generator for Your Home?

Many people live where power outages occur quite often. This can be caused by storms or simply an unreliable power grid. If you experience regular power outages, you may be wondering if you need a backup generator. Here are some considerations for you to think about before you buy.

You May Need a Back-up Generator if……

· You store large amounts of frozen/refrigerated food – Do you have a storage freezer or regularly keep large amounts of food on hand?

· You have life-saving medical equipment on-site – Are you or a loved one reliant on medical devices to stay healthy that require power?

· You need electricity to stay warm in winter – Do you live in a location where temperatures drop to dangerous levels in winter and rely on power to generate heat?

· You have essential equipment on site – Do you have systems that must run constantly to prevent damage? A good example is a sump pump that prevents flooding.

If you do need a generator, there are still options you must investigate. How much power do you need and for how long? Generators need fuel and regular maintenance. They also are loud and emit fumes, so placement is very important. You can also choose from a permanent generator or a portable version.

Power outages can cause serious issues and a home backup generator is a great way to safeguard from loss. Do you need a backup generator? Consider why you want one and then do some homework. Generators are an expensive investment but may be important for your family.

Homeownership Is a Great Hedge Against Inflation

Over the past couple of months, the news of rising inflation is fueling concern across the country. Currently, inflation is at a 40-year high. This is impacting household budgets the most as families try to make ends meet with less buying power. For potential home buyers, rising interest rates may cause worry that you will not be able to afford the home you want.

While these are all valid concerns, for those who are still able to finance a home, homeownership is one of the best hedges against inflation and may be worth stretching your budget to do.

The biggest advantage of owning a home in an inflationary period is a fixed-rate mortgage stabilizes your largest household expense. Most people budget 25-45% of their monthly income for housing. As costs continue to rise, rental rates will rise right along with them. These costs can far outpace salaries and increase the burden on families.

The second advantage is that home values historically outperform other assets in appreciation. Owning a home builds equity for the future that is based on a tangible asset. Even if the home loses value short-term, some studies show that over 7-years, homeowners should gain more equity than other investments.

The bottom line is that if you’ve been thinking about buying a home this year, it makes sense to act, even if interest rates are rising. This allows you to stabilize your monthly housing expense while potentially building equity for the future.

10 Most Common Home Buyer Questions

Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.

1. How do I get started? – The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.

2. How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.

3. What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.

4. How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.

5. What credit score do I need to qualify? – A 620 FICO score or higher is required for most home loan programs. Talk to a lender for other options for lower scores.

6. How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 5% down payment.

7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.

8. What if I change my mind? – Your agent will work with you to build in contingencies for condition, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.

9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.

10. What’s the best advice for home buyers? – Trust the experts and ask lots of questions. Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help you make the best choice for your needs.

What Stays with The Home?

More than one seller has been surprised to find that their favorite chandelier is not theirs to take when they move. First-time home sellers might be especially confused when confronted with an exclusion form presented by their agent, but understanding what is, and is not included in the sale by statute is important to avoid disappointment on both sides.

The first rule of thumb is to consider if the item is nailed down, bolted, mounted, or planted. This covers a wide range of items both inside and outside the home. This might seem simple enough, but the debate about what constitutes a “fixture” has caused many post-sales lawsuits. Fixtures will stay with the home unless specifically excluded. This includes light fixtures, shelves, cabinets, built-in shelves, and more.

Consider the mount for the big-screen TV. It might seem logical to assume the mount would go with the TV when the sellers leave, but technically it’s likely considered a fixture as it’s bolted to the wall. What about a window-mounted air conditioner? If it’s sitting in the window, it’s typically personal property, if there is a hole in the wall to accommodate it, then it’s a likely fixture.

Outdoor items are subject to the same rules. Anything planted in the yard goes with the home, as does furniture or other items bolted to the ground. In that scenario, an arbor or patio cover bolted to a concrete slab would stay. Contrary to everything just outlined, however, curtains typically go with the home.

Clearly, it can be confusing.

If you are ready to buy or sell a home, make sure and discuss with your agent what you want to add or exclude to the sale. This is the best way to avoid disappointment at best or a courtroom at worst.

Family Opportunity Mortgages

Baby boomers have reached retirement age. This generation is healthier and more active than their predecessors and many want to age in a home of their own. Many of these potential home buyers have fixed incomes and with soaring home prices, they are unable to qualify for a new home when they are ready to downsize. This is where a Family Opportunity Mortgage can help.

A Family Opportunity Mortgage is backed by Fannie Mae and allows you to purchase a home for your elderly parents if they cannot qualify on their own, at the same favorable down payment and interest rates as a primary residence. This is a significant advantage over loan programs for second home or investment properties.

The terms of the loan program are simple. The borrower needs a 620+ FICO score, steady employment, and enough income to qualify for both their current housing and the new loan. Total debt-to-income ratios cannot exceed 45% and that must include all the new costs. Finally, the parents must demonstrate that they do not have the income to qualify for the loan on their own. It’s important to understand that bad credit is not sufficient to use this loan program, it must be a lack of income that disqualifies them. This program can also be used to help an adult child with disabilities.

As more people choose to live independently in retirement, the need for housing will continue. By taking advantage of a Family Opportunity Mortgage, qualified borrowers can purchase a home for their parents at very favorable owner-occupied rates and terms. Make sure to talk to a licensed mortgage lender to learn more.

Modern Farmhouse Styles – The Trend Gets an Update

Farmhouse décor has been a trend for the last decade. The look combines functionality with a relaxed, lived-in feel. Pieces look slightly worn, rustic, and inviting. The ease of the farmhouse style is one of the reasons for its lingering appeal as designers look to modernize and update the look.

Modern Farmhouse style continues to emphasize a neutral color palette and sustainable materials, such as reclaimed wood and used brick but adds more sophistication to the theme. Capitalizing on the boho trend, the Modern Farmhouse style might include accent pieces in wicker or kilim rugs and pillows, warming the room and merging it with more traditional elements.

Contemporary designs such as Industrial and Scandinavian also get an update when mixed with Modern Farmhouse. The bright, light rooms of a Scandinavian Farmhouse look might include a rustic kitchen table or distressed flooring. While cold, Industrial design adds warmth with a sliding barn door entry or rich leather chairs.

The farmhouse style focuses on comfort, practicality, and an informal lifestyle. Today’s family enjoys this kind of living environment because it offers an easy and flexible design. Inexpensive accent pieces are also readily available which makes the style accessible to everyone. Modern Farmhouse is an updated version of the original, incorporating fresh looks and merging textures and palates to suit the contemporary homeowner.

2022 Real Estate Technology Innovations

Real estate is changing at a rapid pace and each year brings innovations to the industry. Pushed forward by thought leaders, the real estate industry embraces advancement of products and services quickly, all designed to stay ahead of the competition.

Here are a few tech trends for 2022 that are having people talking.

· Immersive AR/VR for Property Touring – The pandemic forced a drastic change in the way agents marketed and showed properties to prospective buyers. New technologies are using Artificial Intelligence and Virtual Reality to allow buyers to “walk through” the properties with an immersive experience.

· Digital Marketplaces for Buyers and Sellers – Nobul is leading the field with its digital marketplace. They offer transparency regarding fees and commissions and use a sophisticated algorithm to match buyers and sellers with agents who align with their criteria and values.

· Blockchain and Tokenization – Blockchain technology is used as a ledger for Bitcoin transactions, but it offers much more. Blockchain is impossible to tamper with, shows instantaneous changes, and is publicly visible. Investors are using this to bring greater accountability to the process.” Blockchain technology is also used in real estate tokenization that allows investors to purchase a small fraction of a property, lowering the entry threshold to a new class of investors.

· IoT in Property Management – Property Management can now offer smart technology systems linked via IoT (Internet of Things) hubs to bring real-time visibility and security to more properties.

The real estate industry has always embraced innovation as a way for agents to differentiate themselves in this highly competitive market and serve their clients better.

5 Tips for Writing a Winning Offer in this Market

Everyone recognizes that this is a difficult housing market for homebuyers. With inventory shortages and low interest rates, buyers have seen a face-paced market with strong growth in home prices. As interest rates begin to rise, the pressure for buyers to settle on a new home and lock in their rate is even stronger. With so many buyers vying for the same property, it’s important to write the best offer right up front.

Here are 5 tips to help you write a strong offer.

1. Show Financial Strength – You already know you need a preapproval letter but ask your lender to include an explanation about how they qualified you, bank statements, tax records, underwriting review.

2. Include a Proof of Funds Letter – Ask your lender to include a letter which indicates they have checked funds needed for the close.

3. Larger Deposit – Earnest money is deposited into escrow and is applied to the buyer’s costs at the close. If you are serious about the home, offer a larger deposit that shows you have “skin in the game.”

4. Limit Contingencies – Real estate contracts have a lot of standard contingencies. Working with your agent, discuss them each in detail and remove any that aren’t necessary or don’t add extra protection.

5. Be Flexible – Make it easy on the seller. Offer a flexible closing date or leaseback option if they need more time. Consider offering a contingency to the seller that allows them to find their new home.

Remember that even in this fast-paced real estate market, buyers are finding new homes. With a little strategy, you can find the right home for you and your needs.

Prepping an Empty House for Sale

You read that right. Should you “prep” an empty house? This is not about adding furniture or plants to a vacant home, but it’s about looking at the empty home and making it more appealing to buyers.

Not all homes need furniture to sell for top dollar, but even a vacant home needs attention before it’s ready for showing. The key is to remove anything that would distract from a buyer seeing the home in its best light and highlight its best features.

What Should You Remove from a Vacant House?

· Anything that isn’t clean – Remove dirt from ceiling fans, baseboards, sink, dishwasher, windows, shelves, etc.

· Leftover Items – Hangers in closets, old batteries from drawers.

· Cable and Cords – Neaten walls and floors by removing or hiding.

· Worn or Stained Carpet – Replace old, damaged, stained, or dated carpet.

· Old Window Treatments – Old dated curtains and tired Venetian blinds are distracting, remove them. · Spider Webs and Dust Balls – Check those corners for dead bugs, cobwebs, and dust.

· Leave Behind Furniture – Don’t be tempted to leave indoor or outdoor furniture you no longer want.

· Dead Leaves – Clean the yard and remove all debris.

Vacant homes offer a blank canvas for buyer’s imaginations. To sell quickly, make sure the home is clean, fresh, and ready for showing by removing distractions and anything which appears old, dirty, or shabby

Criteria When Hiring a Listing Agent

Most sellers spend a long time considering whether they should sell their home. These same people who have considered all the financial and personal pros and cons of moving hire the first real estate agent they like. While certainly it’s important to find an agent you can communicate with, the right agent brings more than a pleasant demeanor to the transaction and it’s critical to choose the right one.

Before signing with the nice agent who stopped by the community garage sale, interview a few local options. Ask friends and neighbors if they have any recommendations and arrange a sit-down visit with the agents. Ask questions, such as:

· How many homes have you listed and sold in the past year?

· How do you handle the marketing of the home?

· Will you hold open houses?

· What kind of offer should I expect? How will you handle multiple offers?

Ask for specific examples of how they have handled difficult situations in the past. What if the appraisal comes in low? How do we negotiate request for repairs? Most importantly, ask what list price they recommend and why. You should expect a full comprehensive analysis and the agent should be able to answer any questions you have.

Finally, ask for references and call them. Ask the references the tough questions – what did they like and dislike about the agent? Buying or selling a home is typically the largest financial decision of someone’s life, hiring the right listing agent is the most important aspect of a successful transaction. Choose the best agent, not just the one that seems nice.

Home Renovations for the Aging Population

Approximately 90 percent of seniors over 65 years old intend to stay in their homes for at least 10 more years, according to AARP. As a result, remodeling companies report an uptick in the number of customers doing upgrades and remodels to allow them to age in place.

Fortunately, there are some simple changes you can make to your home to make your home comfortable and safe as you age.

· Install Grab Bars – Install bars and railings in high-risk locations, such as bathrooms and bedrooms.

· Ramps – Often older people need assistance when walking. Add a discreet ramp to the home to allow those needing wheelchairs, walkers, or canes to enter the home safely.

· Utilize Smart Technology – Smart technology has improved the security of senior homeowners. Medical alerts, remote security, and communication systems allow the homeowner access to immediate help in an emergency.

· Go Hands-Free – Change bulbs and outlets to voice-activated and changing faucets to hands-free will help those with joint or grip pain.

· Update Flooring – Trip and fall injuries are common as we age, low pile carpet or non-slip hardscape is best for older homeowners.

· Improve Lighting – Consider nightlights in hallways and bathrooms and add brighter lighting to living spaces.

Many seniors want to stay in their own homes as they age. Making a few minor adjustments can help them to that by creating a safer environment and offering immediate help if necessary. This offers peace of mind for both the homeowner and those who love them.

Do’s and Don’ts of a Kitchen Remodel

Kitchen remodels are the most popular project among homeowners. Who hasn’t dreamed of the perfect kitchen? Most of us, however, don’t have the budget to hand the entire design off to a professional and choose the fixtures, appliances, and extras ourselves.

As a result, we don’t always end up with the chef’s kitchen we imagine. Here are a few dos and don’ts from the experts.

Do Add Dark Accents - Your kitchen does not need to be monochromatic. Adding dark appliances or doors provides a pop to the space and makes it appear larger.

Don’t Ruin the Island – A kitchen island can add usable workspace and visual appeal. However, an island placed in the wrong spot can ruin the appearance and availability. Designers suggest placing the island 2 ½ - 3 feet from the counters. This allows for easy movement between the two. In a small kitchen, skip the island altogether.

Do Splurge on the Lighting – Proper lighting in the kitchen sets the mood. The kitchen has become a place to entertain, so the space needs to merge brighter light for cooking with softer, ambient light for relaxing.

Don’t Skip Proper Prep Work – It may be tempting to rush or skimp on prep work and materials; Afterall it’s not going to show when completed. The fact is that substandard prep work can cause damage to the final product, causing more money and time in the end.

A beautiful kitchen is the centerpiece of the home. Whether your remodel is a complete do over or weekend DIY project, follow these tips for the perfect result you want.

5 Cool Home Tech Gadgets

There are so many new tech gadgets on the market these days. Technology should make your life easier and more enjoyable. Here are 5 of the hottest tech gadgets to try right now.

5 Cool Home Tech Gadgets You Should Try Now

1. Motion Sensor Night Lights - Hate walking down a dark hallway at night? What about navigating the landmine of kids toys in the living room. These night lights have motion sensors built-in so they turn on as you walk by them.

2. Logitech Harmony Elite - One stop shop for your home smart devices. Harmony Elite is one control that handles all your devices in one place; lowering blinds, dimming lights, Alexa, Apple TV, Sony and much more.

3. Rubold Dog Dematting Tool - Make Rover happy and keep unwanted hair off your furniture and clothes. This device has rounded teeth to avoid scratching and reaches the undercoat without yanking the hair.

4. Ring Beams Home Security Lights - Ring is a household name for home security. Now Ring Beams cameras and doorbells add motion lighting to enhance security when using the system.

5. Smart Thermostats - A smart thermostat can not only put your home on a schedule, saving money and offering comfort, but also allows you to turn on the heat or air conditioning to prepare the home for your arrival.

Home smart devices and technology are improving all the time. With all the exciting products on the market, there’s never been a better time to experiment with smart technology.

Tips for Staging with Plants

Natural design elements have been on trend for the past few years. Sustainable wood, stone, and fabrics add simple beauty to spaces in all parts of the home. The color palette of these materials tends to be soft beiges, creams, and browns; lovely tones but without a pop of color, create cool, drab rooms that lack personality. In keeping with the natural theme, designers and stagers are using plants to add dimension and warmth.

Decorating with plants takes more strategy than adding a pretty pot to a coffee table. Here are a few tips for incorporating plants into the design scheme that home stagers use to make a home more appealing:

• Choose Low-Maintenance Plants – Choose plants that do not require a lot of attention and water. This is especially helpful if the home is for sale.

• No Pollen – Asking ahead of time if a plant can trigger allergies will prevent issues for guests and buyers.

Mix and Match – Choose a variety of colors, heights, and textures.

• Showcase Home Features – Bight plants will attract attention. Consider a tall plant to showcase the ceiling height or a bright bloom to draw the buyer’s attention to a great view.

• Remember Stands and Pots – Make sure to choose pots or stands that complement the design of the room.

Home design has embraced sustainable, green themes. Adding lush greenery to a light-toned room will add warmth and make the home more inviting to potential homebuyers.

Could You Trust Your Partner to Pick the Right House?

Couples dream of buying a home together, leisurely enjoying a latte while dropping by open houses to look at remodeled kitchens and manicured backyards. Today’s market is quite different. Desirable homes are snapped up the moment they hit the market, often with multiple offers. Homebuyers in this climate must move quickly. This may require jumping on an opportunity without both partners adding their input.

Adding more complexity to a heated real estate market is job mobility. The US is experiencing an unprecedented job market. More employees than ever before are offering remote work environments. This business climate not only offers flexibility in living location but also the opportunity to make a career move. Making a change in location, regardless of the reason, often means one partner can travel for house hunting.

So, how can you trust your partner to find the right house?

Before starting the home search, it’s important to work together to identify what features are essential to the new home:

• Size

• Yard

• Bedrooms/bathrooms

• Schools

• Commute

• Community amenities

• Local services; shopping, restaurants, entertainment, gyms, parks, etc.

All these and more should be discussed and expectations set. Fortunately, we also have extensive virtual tools to use in the home search. Not only virtual tours, video, and drones, but a simple cell phone can easily take the absent partner on the house tour in real-time.

Can you trust your partner to choose the right house? With some honest conversation, careful planning, and technology – yes, you can!

Would You Buy Your Home Again?

Buying a home is often an emotional decision; perhaps even more so than a practical, financial decision. Real estate marketing has recognized this for decades which is why agents have emphasized curb appeal and staging to their clients. Open houses have featured the smell of fresh baked cookies and soothing music, all in an effort to appeal to the buyer’s sense of home and comfort.

Many homeowners ponder this question, along with whether they can make adjustments via remodels or additions. The fact is that our tastes, needs, and lifestyles change and evolve over time. The past few years have dramatically changed the way we look at our homes. More people than ever before now work from home. That cute cottage or condo might have been the perfect home base for evening and weekend activities, but fall short of the ideal full-time work space.

On the other hand, some homeowners have realized that they have under utilized their property. During the pandemic, we saw home cooking, gardening, and crafts boom. Yards have been redesigned to include vegetable beds and fruit trees. Kitchen remodels have emphasized cooking space and gathering areas for family.

For anyone who has lived in their home for 7+years, it’s natural to wonder if the property still suits their needs. Families grow and contract, lifestyles and jobs change, and as life moves on, homeowners should periodically ask themselves if they would buy their current home today.