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.

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.

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.

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

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.