The Benefits of Owning a Second Home

As the world emerges from the pandemic era and begins to look for a new normal, we’ve all changed the way we look at homeownership and lifestyle. More and more, families are forgoing exotic vacations and using the savings to enhance their home for staycations. In addition to the home improvement boom, the second home market has also exploded. Owning a second home was once a privilege for the rich and famous, but now even those with a modest income can purchase a second home.

There are some great benefits to owning a second home. The first is enjoyment. Many people buy a second home to get a change of scenery. With more companies offering a work-from-home option, spending winter in a warmer climate has become feasible for the average person.

There are financial advantages to buying a vacation home. A second home can help you save money on your taxes. The mortgage and property taxes of a second home can be deducted from your income in the same way a primary home is. The property can also be rented out while not in use to provide extra income or pay for the costs of the home.

Owning a second home can enhance the lifestyle of the family. Building equity in two properties will build wealth more quickly while providing an alternate location for work or fun.

Two Ways Homebuyers Can Win in Today’s Market

It’s no secret that many prospective homebuyers are finding the current real estate market challenging. One of the more unexpected consequences of the Covid pandemic was the hyper-focus on one’s home. This has resulted in a robust market where sellers are seeing advancing home sales prices and multiple offers.

While competition is fierce, clearly for sellers to sell, they need buyers. If your goal is to find a new home this year, there are a couple ways you can maximize your ability to have your offer accepted.

Two Ways Homebuyers Can Win in Today’s Market

1. Act Early - There are a couple reasons why home buyers should start early this year. With rising inflation, interest rates are likely to rise this year. While conventional wisdom may suggest lower real estate prices with an increase in mortgage rates, this is a gamble. Lower interest rates can not only save homeowners thousands of dollars over a 30-year term, but also provides better buying power with lenders, providing more choices.

2. Buy Now and Move Later - The rapid pace of the current market affects not only buyers but sellers as well. In a typical market, sellers often have weeks or months to find their replacement property. Buyers can sweeten their offer by asking about the sellers needs and allowing them extra time to move, offering to close quickly but renting to the sellers for 2-3 months to allow them time to find their new home.

The bottom line is that home loan rates and home prices will likely continue to advance throughout 2022. Potential homebuyers who move quickly can maximize their buying power and ability to win the home.

How to Survive Your Neighbor’s Construction Project

Any kind of construction project is loud and dirty. For homeowners starting their project, they have the anticipation of the finished product to look forward to. But what if the project isn’t your own but your neighbor’s? You have all the hassle with none of the excitement of the result. Having construction going on next door is never fun, but you can mitigate the negative aspects by following a few tips.

Talk to Your Neighbor, Then Talk to the Contractor

In a perfect world, your neighbor will come to you first, but this isn’t always the case. At the first sign of construction, get in touch with the owners and discuss the scope and timeframe of the project. Discuss any specific issues or occasions you have planned that the project could impact, such as family illness, new baby, or backyard celebration.

Noise and Dust

Plan to be away as much as possible during the project. Keep doors and windows closed to prevent particles from entering your home, that can cause health issues. Check with your local building department to understand the hours that a construction company can work and work with your neighbor to hold them accountable. Finally, remember that this will end. You may need to live next door to the owner for years to come and maintaining a good relationship with your neighbors is more important than a few weeks of hassle.

How to Buy from the Best Home Builder

Whether you plan to buy a single-family home, condo, or townhouse, buying in a new development can cause years of issues if you don’t choose a property with a solid, reputable home builder.

It’s exciting to consider buying new construction, a brand-new home suited to your specific needs and taste. Yet unlike the resale homes, there are no previous owners to provide disclosures detailing issues with construction, lot, or property. In this case, one is relying on the builder to provide a high-quality home in both construction and materials.

As with any home purchase, doing your homework ahead of time can save you thousands of dollars over the long run. Start by researching the builder of the subdivision. Check for other projects, both current and past. Visit any projects still available and drive by the other properties to see how the homes have weathered. Watch for signs of repairs, such as new roofs or paint.

When visiting the model homes, watch for the qualify of construction. Do the doors and drawers open and close smoothly? Are the floors finished at the baseboards neatly? Ask for a tour of unfinished homes as well. Check to see if the workmanship is uniform and careful.

Finally, have a home inspection before closing on the property. A staple of the resales housing market, few homebuyers of new construction consider it. By taking the time to do your research ahead of time, you can make the right choice in a new home.

Selling a Property with Tenants in Place

The strong seller’s market has prompted homeowners across the country to consider selling their homes. What if your property is a rental unit with tenants in place? Can you still sell and take advantage of the rising home values? Yes, by understanding the steps and following a few tips, you maximize your profit in this strong market.

The first step in selling your home with tenants in place is to understand your rights and responsibilities. The kind of lease you hold will determine if you can simply give notice to the tenants or if the new owners will buy the home with a lease in place. Only month-to-month leases can be terminated unilaterally with proper notice.

Next, meet with the tenants and discuss the situation. Explain your reasons for selling and assure them that you wish to make it as easy as possible. Offer to sell the home to the renters first, and then discuss any future plans they may have. If they can’t or don’t want to buy the property, you may be able to offer them money to move. Your goal must be to have the cooperation of your tenants so they will help facilitate showings and maintain the home.

When you have tenants, who will remain in the home after the close due to their lease, then you must disclose the lease terms to the buyer. The new owner will be legally obligated by the lease. In a strong market, you may find a buyer willing to wait for the expiration of the lease, even if they intend to occupy the home.

Selling with tenants in place doesn’t have to be difficult. Do your homework, understand your obligations and be transparent with the renters and potential buyers. This way, you make it easy on all parties and can reap the reward of high home values.

Sellers: Expect Multiple Strong Offers this Season

The winter season has traditionally been a slower time for home sales. The guidance in the past has been to wait for the warmer months of spring before listing. However, the current real estate market has created a strong seller’s market and if you’re considering a move, it may be better to sell now rather than risk a slowdown if interest rates rise in the coming months.

Well-priced homes have always attracted multiple offers. Often these proposals varied in strength, allowing the seller to easily make the best decision based on price and terms. In this current climate, with inventory so low, well-qualified buyers are searching for homes and making swift decisions. As a result, sellers are receiving multiple, strong offers.

According to recent data by the National Association of Realtors®, the average seller receives 3.7 offers on their home. These are typically well-qualified, serious home buyers and many are all-cash. While this is a good “problem” to have, it can also lead to confusion as sellers struggle to choose the right offer.

Working with your agent, consider each offer carefully and review both price and terms, such as contingencies and close date. Remember that the value for any buyer financing the purchase will be subject to an appraisal; this will prevent you from accepting an unrealistic offer that may cost you time and money if the appraisal doesn’t support the value and you need to start over.

The bottom line is that this is a great time to sell your home. If you’ve been considering a move, no need to wait for spring.

Home Decor Goes Back to the Future

It was only a matter of time until home designers looked to the 1980s for inspiration. Showrooms are looking more like a TV set of the Golden Girls rather than the bland, gray-toned backdrops of the past few years. Color, shapes, and playfulness are making a comeback.

Bringing rooms back to life is the theme for this design trend. What’s New?

• Round Shapes – Gone are the sharp edges and squared-off furniture. Round tables, sofas, and chairs are making an entrance this year.

• Lower Furniture – Just like its mid-Century modern cousins, 80’s furniture was lower to the ground than contemporary styles.

• Color – 1980s seafoam green and peach have morphed into teal and mauve this season and taking center stage in home décor.

• Rattan – Rattan furniture is no longer for retirees in Florida or vacation condos in Hawaii. This versatile material is now a mainstay in homes. Consider a piece or entire room of rattan furniture to brighten your space.

• Lucite – Clear furniture offers an illusion of floating in the room. Small spaces become larger by adding clear chairs or accent tables.

• Ceramics – Shell-shaped lamps and art deco styles vases are an essential decorating element for the 1980’s style.

• Kitsch – Pop Art pieces are back.

Think Andy Warhol prints and oversized novelty decorations like oversized pencils or giant teacups. Fun is the essential theme of the 1980’s style. As designers put a modern twist on an old décor, more homeowners are dusting off their 80’s décor and adding a bit of whimsy to their home.

What Does Pending Sale Mean?

Buying a home is a process. Once a buyer writes an offer, with the assistance of a Live Oak Realtor, and has it accepted, the listing is placed in a state called “pending sale.” During this stage, the principals involved perform all the elements of the contract, and once complete, the title is transferred to the new owner.

Sounds simple, but this stage can become incredibly stressful if the contract milestones are not met on time, or if problems are uncovered. Typically, a home sale outlines the term for escrow of 30-60 days. During this time, inspections are completed and reviewed, the appraisal is ordered, and final loan approval is obtained. If there are no delays, the escrow will close on time and the buyer gets the keys to their new home.

Unfortunately, there are often delays in this process, which can cause the sale to drag on. Some common hiccups include negotiated repairs, financing or credit issues, appraisal problems, missing paperwork, and title issues. However, our Live Oak agents are trained to help buyers and sellers navigate these issues.

At times, delays become excessive and either buyer or seller may be ready to move on. All contracts have milestones and benchmarks which outline by what date each step in the process must be completed. When these dates are passed, then the other party can make a demand to perform or close escrow. Working with an experienced real estate agent can help ensure you are protected from unnecessary delays during the pending sale.

The LO Down

Live Oak Real Estate is founded on the concept of growth and change. Our owners knew going into this business that their goal was to create a brokerage with agents who are ready and equipped to revolutionize their market. How do we, at Live Oak, equip ourselves? Through continual education, discussions, and constant motivation! With this concept in mind, our owners built The LO Down Podcast. 

The LO Down Podcast revolves around the importance of mindset in business and life. You will notice that Dustin Thomas and Andrew Fleeman bring fun and light to real life situations in the Real Estate world. Both of our hosts have experience in buying, selling, building, flipping and investing in real estate. Where their expertise caps, they are eager to bring business owners and entrepreneurs with drive and experience to guide us through their unique success story. 

Dustin and Andrews main goal for The LO Down Podcast is to give faith to anyone hovering over that line, wondering if they should take that leap of faith. Our host will not only give you the push, but are here to educate and encourage you through your journey. 

Check out their newest episode releasing tomorrow titled The Importance of Mindset in Business and Life. You can find this episode, along with the previous post, on all podcast platforms. 

Written by Brooke Harrell

Live Oak Volunteers

Live Oak Real Estate stands on the Moto: Rooted in Community, Grounded in Relationships, and Always Growing. We consistently live up to the last two, but have been searching for ways to be effective within our community. When the opportunity presented itself to help in the local food bank, our team was eager to help.

Today, a group of eight Live Oak agents helped box up food and get them loaded up for delivery. They quickly got to work making, packing, closing, and stacking boxes up high! In just 2 hours our team packed 3,926 meals!

Our Live Oak group would like to thank the Food Bank of NEA for allowing us to volunteer. We hope to encourage others to get out in your community to help make a difference.

Buyers and Sellers – Stay Focused on Your Goal

Buying or selling a home can be stressful, even in normal times. Right now, when the housing market is moving at a frenetic pace, both buyers and sellers are making quick decisions and are feeling extreme pressure. As the tension rises, it can be easy to overlook the end goal; right-sized home, relocation, dream home, etc. Try not to lose focus!

Buyer Challenges: Facing a very tight inventory of available properties, buyers have limited time to arrange to tour homes and knowing they must make a quick decision once they have. Buyers do not have the luxury of a second look or hesitation and often are competing against multiple offers, adding to the pressure.

Seller Challenges: Sellers are also feeling the challenge of the frantic pace. While it is nice to have multiple offers from which to choose, the fact that the offers are at times being made sight-unseen means that some of the offers may not be the buyer’s first choice and they could lose a “real” offer by choosing to work with the wrong one. In addition, if the seller intends to buy another home, then they will be in the same position as the buyers once they enter that side of the competitive market.

The bottom line in each case, however, is to stay focused on the end goal. Why are you looking to buy or sell? Working with your agent, and relying on their experience, keep your eye on the prize and recognize that the goal will be worth the effort.

Live Oak Goes To The Fair

Growing up, going to the town fair was a magical experience. I can see the colorful lights flashing, smell the yummy fried food, and hear the screams of kids being tossed around in the spinning rides. I think we can all agree that the fair brings our community together, in one place, for lots of memories made. 

Live Oak prides ourselves on being community focused. We love to be a part of community events where we can meet new people and begin building those strong connections! What better place to do that than the fair?

September has been full of opportunities to immerse ourselves in the community. You may have seen our green tent at the Paragould Fair, Jonesboro Business Expo, or the Jonesboro Fair. We’ve had the chance to talk with people, make great connections, and even raffle off a TV!

If you haven’t had a chance to stop by, we will be at the Jonesboro Fair through the end of this week. Come see us at the big green tent!

What Are Your Real Estate Goals?

Invariably, the first time you meet or speak to your Live Oak Real Estate agent, the same prompt starts the conversation: “tell me about yourself and your real estate goals.” Seems simple enough to answer. “I need more space” or “I’m ready to downsize” are common answers.

While these answers may be at the heart of the decision for change, they neglect to provide the concrete data your agent needs to identify the right prospective homes. This in turn leads to frustration and wasted time and energy—on both sides—and ultimately will not help find the best housing option for you.

Before meeting with your Live Oak Agent, consider the specifics of what you need. For example, when explaining that you need more space, be specific about what that means. Do you need more bedrooms for a home office or a new baby? Would you like to have a larger kitchen or a bigger yard? In other words, what does “space” mean to you?

Discuss specifics about your lifestyle as well. Would one “great room” be a better configuration than separate living and dining areas? Would you like to live close to a park or school? Would you value a private, gated community? These are just a few of the specifics your agent needs to know.

Our agents want to provide you the best options to tour; not only is that a good use of your time, but theirs as well. There is no reason to see 25 homes each weekend if only 4 of them suit your needs. By having clearer conversations upfront, you can save valuable time and find the right home faster.

Can an Expensive Home Still be Affordable?

Real estate prices across the country have increased dramatically in the past year. With increases in the 10-12% range, many potential homebuyers have given up and decided that homes are just too expensive to consider. While homes have become more expensive, it does not mean they are unaffordable.

Would you believe that we are experiencing a historically favorable market for buyers when it comes to affordability? Why? This is because affordability involves more than just the purchase price of the home. When considering whether you can afford a home, you must include wage growth and interest rates.

Interest rates are among the lowest we’ve seen in decades. In addition, wages are increasing at a staggering 7% rate year-over-year. For example, a median household income of $68,000/year with a 7% wage growth, will see an extra $400/month.

The median home price is about $325,000. If we add a 10% growth factor to this, that same home would sell for $357,500. At a 3.5% interest rate, the monthly payment would increase from $1313/month to $1444/month, an increase of only $131/month. In terms of affordability, today’s market offers homebuyers more for their money.

Many homebuyers indeed have sticker shock; homes are getting more expensive. But for many homebuyers, other economic factors combine to make homes more affordable than ever before.

Interested in selling your home or buying a new home? Call 870.520.2522 today to speak with an agent at Live Oak Real Estate!

6 Upgrades Millennial Buyers Pay More For – and 1 Exception

6 Upgrades Millennial Buyers Pay More For – and 1 Exception

Home sellers assume they must make some upgrades before putting their home on the market. While any deferred maintenance or extreme wear-and-tear issues should be addressed, major upgrades or updates may not net more money when you sell; especially with millennial buyers, who are looking for their first home in droves.

6 Common Upgrades Millennial Buyers Won’t Pay Extra For – and 1 They Will

1. Professional Landscaping–Although a nicely maintained yard is attractive to all buyers, over-the-top landscaping with special hardscapes or fountains will not appeal to millennials.

2. Upgraded Utilities–You may appreciate the new plumbing, but buyers will not pay more for copper or PEX pipes or the brand-new junction box.

3. HVAC – Again, news ystems are appreciated, but buyers won’t offer more for the latest systems.

4. New Roof – A leaking roof will certainly lower the sales price but replacing one will not have the opposite effect.

5. Swimming Pool –Not only will millennial buyers not pay more for a pool, but they may shy away entirely, considering the cost of upkeep and safety for young children.

6. Trendy Home Décor – This may seem counter-intuitive but adding the latest design features that will quickly go out-of-style can be a turnoff.

And finally, the one they will pay extra for? Solar panels. Younger buyers are conscious of their carbon footprint and are looking for environmentally-friendly options in their homes and lives. The millennial buyers are here, and understanding what they want in a new home will help sellers capitalize on this fresh market of home buyers.

Top Trends for Your Outdoor Living Space

Top Trends for Your Outdoor Living Space

Summer is here and you’re spending more time outdoors. For most of us, this still means primarily in our own backyards. Personal outdoor space has never been more popular and if yours could use a little sprucing up, here are the hottest trends for 2021.

• Outdoor Kitchens – This trend is going nowhere. Ever since the first built-in BBQ showed up, homeowners have loved cooking outdoors. Choose from a simple pizza oven to a full chef’s set-up with multiple ovens, refrigerators, cooking spaces, and bar.

• Edible Gardens – While home gardeners have enjoyed seasonal tomatoes and herb pots for decades, the rise of sustainability trends have increased the attention on home-grown, organic fruits and vegetables. Any small space can be transformed to grow your favorites.

• Privacy Structures – Creating some private outdoor space is relatively easy. Simple strategies, such as a large, well-placed umbrella or planter containing tall grasses, can carve out some private outdoor space. Another trend is using larger furniture, such as covered daybeds or gazebos have made a strong return to the pages of design magazines.

• Front Yards – With the lockdowns and restrictions of the past year, front yards have made a comeback. As people have enjoyed the ability to socialize with neighbors and friends as they pass by, not only have front porches become more popular but adding a patio or sitting area in the front yard has topped the garden trends this year.

  The warm weather is back. This is a great time to explore the many ways to enjoy your outdoor space. From simple weekend projects to large-scale remodels, the trend toward using the outdoors to supplement indoor living space is here to stay.

Room Update – Try Color-Blocking

Repainting a room is one of the easiest ways to freshen the décor while changing the feel of the room. The hottest design trend this year takes this to a whole new level. Color-blocking techniques are dominating magazines and social media with vivid color palettes and bold geometric patterns, turning the traditional painting project into something special.

Color-blocking takes many forms—everything from a simple way to differentiate one space from another by changing the wall shade, to artistic pairings that would feel at home in a modern art gallery. Your style most likely falls somewhere in between. The common theme is to try something new while changing the feel of the room.

Before you start your project, take time to consider the desired final look. Consider the relationship of your chosen colors and how each plays a part in the design. Bright shades create a sense of energy while softer tones are calming. Use blocked color to trick the eye into adding or subtracting space using light or dark colors. Color-blocking can also be used to draw attention to architecturally interesting elements, such as a curved entrance or crown molding.

This weekend is a great time to update your space by trying something new and modern. Choose traditional color palettes and subtle shapes to compliment your current design or go bold and completely change the room. Any home décor style can benefit from the techniques of color-blocking with a little imagination, masking tape, and a paintbrush.

Tips to Make Your Home both Beautiful and Kid-Friendly

Have you ever been to a home where it’s clear that the kids have taken over the space? It’s obvious that the home has become more of a playground, filled with toys and bright-colored plastic everywhere. Homes like this often sacrifice style for durability or stain-resistance. Maybe this is your home? The good news is that it’s possible to create a home that incorporates the beauty of a stylish home with the practicality of living with children. Here are a few design tips to help.

• Be Realistic – You may love the look of crisp white sofas and delicate glass vases, but if you live with kids, opt for more durable choices. Natural fiber furniture in neutrals hide stains while looking stylish; choose a sofa with removable cushion covers you can pop in the wash as needed. Display beautiful wood or stone accent pieces instead of glass, to cut down on accidental breakage.

• Less is More – Uncrowded rooms allow for the excess energy of fast- moving children. Give them room to play. Less toys also means less mess when they’re all inevitably spread over the house!

• Double Duty Furniture – Look for stylish bins or hidden storage units such as ottomans where you can quickly dump excess toys when guests pop by.

• Create a Play Station – Carve out a special place for the kids to play, such as a basement family room or a cozy attic. Keep larger playsets and toys there and help the kids make it a special place just for them. This may keep some of the ‘kid clutter’ contained to one area of the home.

• House Rules – Develop some simple rules and then be disciplined about it. For example, a good house rule is that toys are gathered into storage units each evening before dinner. Cleaning things up a bit at a time makes it less overwhelming.

Most of all, strive for a livable home. It’s almost impossible to have a picture- perfect home with kids, but by taking a few simple steps, you can merge a kid- friendly environment with a beautiful adult home.

2 Surprising Things Homebuyers Really Want

2 Surprising Things Homebuyers Really Want

Most homebuyers have to sacrifice some of their wants to find a new home. Unless they have unlimited funds and time, chances are there are “must-haves” which outweigh the “like-to-have” items on the list. Yet, there are always features that these buyers refuse to part with, and they might surprise you.

1. Outdoor Space – Over the past decade or so, outdoor spaces have become extensions of the home. From outdoor kitchens to outdoor living rooms, the line between interior and exterior has blurred. Homebuyers have embraced this way of living and are insisting on some kind of outdoor patio or space when looking for a new home.

2. Garages – Today’s homebuyer wants a garage. True, some of them plan to use it for non-traditional purposes, such as for storage or home gyms, but they still insist on a garage. Even with the rise of rideshare services and public transportation options, statistics show that the average household owns 1.95 cars and studies demonstrate they are looking for a home with at least a single-car garage.

Homebuyers realize they might have to make sacrifices when searching for a new home. Surprisingly, while these buyers might be willing to compromise on other aspects of the home, outdoor space and garages are among the “must-have” items in 2020.