Jun 5, 2020 | Real Estate
As a homebuyer, your real estate agent will do their best bring you to see homes that meet the criteria you asked for. However, there’s no guarantee that a home will have a history of being properly cared for.
Your real estate agent can choose the homes you see, but they have no control over the property owner’s homeownership habits.
Why Home Maintenance Matters
Home maintenance should matter to you as a homebuyer and later on as a homeowner. A home needs consistent and proper maintenance in order to run efficiently, and that doesn’t only apply to moving parts like the HVAC system. If a home isn’t looked after, it begins to run down and then break down.
Just as a poorly maintained vehicle will eventually strand its owner on the side of the road, a poorly maintained home will eventually fail to properly house its occupants.
How To Tell If A Home Has Been Well-Maintained
A home that hasn’t been cared for will easily give up its secrets to a discerning homebuyer. Conversely, you can tell if a home has been cherished and well-maintained over the years.
- Home maintenance warranties in place would be a selling feature and indicates the owner understands the power of proactive maintenance.
- Solid, quality flooring indicates that the owner has shored up the subfloor beneath tile, removed carpet spills expeditiously and replaced cracked, peeling or missing planks or tiles.
- No signs of basement water damage may signify that owner has installed sufficient sump pump or other drainage solutions, applied basement waterproofing or taken other steps to ensure a dry basement.
- Finished basement shows that owner has taken care to improve the home where possible and that the owner trusts their basement possessions will be safe from water damage.
- Straight roof lines mean that there is likely no sagging roof problem that hasn’t already been addressed.
- Mature, healthy plantings are a sign that the owner has given thought and care to the surrounding landscape over a long period of time.
- Sound gutters in good condition show that the owner has taken steps to ensure proper roof drainage to water damage.
These are all positive signs for a prospective homebuyer. Of course, you must still pay attention to the home inspection report. But odds are if you see all these signs, you’re probably looking at a new home that will serve your needs for many years to come.
Jun 4, 2020 | Real Estate
If you’ve been putting off your house hunting, it’s time to head out. Summer is the best season to go shopping for a new home, for a variety of reasons.
1. More Inventory
Homeowners list their homes for sale in the summer more often than any other season. When you shop for a new home during this time, you’ll have a much wider selection of homes to choose from.
2. Better Prices
More inventory in summer often turns the local real estate scene into a buyer’s market. Home sellers may have to compete with other sellers on the same block or even down the street. This gives buyers a nice position of leverage to possible get a better price on a new home.
3. More Neighborhood Activity
There’s no better time to get a true sense of the neighborhood than summer. In summer, kids are out playing, homeowners are out tending lawns and friends are gathering for backyard BBQs. These are all activities that can give you an accurate portrayal of the neighborhood culture. Take advantage of summer weekends, too; you’ll find even more neighborhood activity then.
4. More Visibility
By summer, all the snow, ice and autumn debris has either melted or been cleaned up by homeowners. You’ll have more visibility to view the condition of the roof, siding, deck, lawn, driveway and walkways. Under the cover of snow and ice, you might miss important issues.
5. Evidence Of Any Flooding Problems
Spring rains produce evidence of any flooding issues with water lines along foundation walls. Summer is the best time to go home shopping because this kind of evidence will be fresh and easily identifiable. Flooding isn’t always a reason not to buy a home, but it helps to know what potential issues you could be facing.
6. More Free Time
Most people have more free time in summer than any other time of year.
It is more relaxing to go home shopping when you know you aren’t taking valuable time away from work. On your summer vacation, you also don’t have to take unpaid days off to view homes with your real estate agent.
7. Easier School Transition
When you do go ahead and buy in summer, your kids will have an easier time of transitioning to a new school. Instead of breaking up the school year, your kids can end one grade in one school and start the new year at the new school.
Buying a home in summer just makes good sense. Contact your local real estate agent today so you can hurry and take advantage of the summer real estate market in your area.
Jun 3, 2020 | Real Estate
It’s an exciting time when you’re buying or selling your home and your real estate agent is your partner in this real estate endeavor. But there are some questions that your agent can’t or won’t be able to answer for you. These are the top three questions not to ask your real estate agent.
1. How High Will The Buyers/Sellers Go?
Knowing that your agent is in touch with their agent, you might think your agent knows the highest amount the prospective buyers or sellers will go. This question is problematic for several reasons.
First, would you want your agent to divulge how low of an offer you would be willing to accept? No. Second, the buyers agent would never share that kind of information with your agent anyway. That would violate the ethics code that all quality real estate agents go by.
2. Can You Please Not Divulge the Mold/Radon/Flooding Issue?
Homeowners and real estate agents are required by law to divulge any known issues such as mold. If you as a homeowner are aware of radon and/or flooding issues and you share it with your real estate agent, they may be required to disclose those issues to prospective buyers.
If you ask your agent to withhold that information or to fib about it, you’re really asking them to risk their license and source of family income. Obviously you wouldn’t want to do that. Instead, abide by the laws and let your real estate agent do the same.
Besides, when your buyer is fully aware there’s a better chance for a successful sale.
3. Can You Promise Me A Sale Within A Certain Timeframe?
Real estate agents can’t promise that your home will sell in a certain amount of time. They can offer you statistics in your area and give you an average amount of time when your home might sell. Other than that, there are no guarantees. If you want your home to sell fast take as much of your agent’s advice as possible.
Your agent will do everything they can to answer all your reasonable questions. Just don’t ask your agent to violate their ethics or make promises they can’t keep.
May 29, 2020 | Real Estate
Owning a home may be the American dream, but for many who are in a lower income bracket, finding a loan can become challenging. Thankfully, there are several loan programs that can work well for lower-income people considering homeownership. Here’s a closer look at some of these home loans designed to help people who have a low-to-moderate income find a way to buy a home.
FHA Home Loans
FHA home loans are loans backed by the Federal Housing Administration. Lenders are more likely to lend to “higher risk” borrowers through the FHA loan program because the loans have the FHA’s backing.
With the FHA loan, a borrower can have a credit rating as low as 500, as long as there is a reasonable explanation for it and a fairly high debt-to-income ratio. According to the U.S. Department of Housing and Urban Development, these loans require only a 3.5% down payment, which can come from gifts, and have less stringent requirements for credit rating or income.
USDA Rural Development Loans
If you are shopping for a home in a small town or suburban area, you may qualify for the USDA rural development loan program. Only those borrowers who make no more than 115% of the average median income in their area qualify for this loan program, according to the United States Department of Agriculture.
USDA loans require no down payment and the loan has no debt-to-income ratio maximum. It has a low PMI fee even for a zero-down loan, and fair interest rates. For those who live in areas that qualify, the USDA rural housing loan simply makes sense.
97% Loan-To-Value Purchase Loans
One of the biggest challenges for lower-income borrowers to overcome is the down payment, but the 97% loan-to-value loan makes that less of a concern. This program, which Fannie Mae and Freddie Mac have offered to help encourage more people to get loans, allows people to buy a home with just 3% as a down payment.
The 97% loan-to-value purchase loan is specifically for first-time buyers. Borrowers must not have owned a home within the last three years to apply.
This loan program offers fair interest rates and does not have stringent credit score requirements. Borrowers can use gift funds to pay for the 3% down payment if necessary.
As you can see, there are many home loans designed for lower-income borrowers. If you are looking to buy a home but worry you can’t afford it, consider one of these options.
May 28, 2020 | Real Estate
Multigenerational housing is a growing trend that is propelled by the “graying of America.” This trend is the mirror image of children who become adults still living with their parents. Instead, with multigenerational housing, the adult children invite their parents to live with them. Many are seeking to buy larger homes to accommodate the needs of their young family, while also being able to live together with their parents.
Older Homeowners And Multigenerational Homes Are Increasing
The numbers are staggering. Realtor.com® reports that for the next 20 years, older adults, over the age of 65, will increase from 26% to 34% of total homeowners. The fastest-growing group of homeowners will be those over 80. These are the many millions of baby boomers who are getting older. By 2038, estimates are that there will over 17 million of these older homeowners, up from around 8 million in 2018.
Multigenerational housing, which is where the older adults live with their grown children or grandchildren, is already 20% of the older adult population in America. This represents about 10 million homes now. This number continues to rise. It will more than double in the next decades.
Benefits Of Multigenerational Housing
The main benefit of multigenerational housing is saving money. Assisted living and long-term care are really expensive. The national median cost for assisted living is $4,000 per month. A person can buy a very large home for that amount used for a mortgage payment.
Longtermcare.gov reports that the average cost in America for long-term care in nursing homes is $6,844 per month (semi-private room) and $7,698 per month (private room). These costs can be reduced substantially by hiring in-home nursing care and having older adults stay at home.
Disadvantages Of Multigenerational Housing
The main complaint is that it is very difficult for some children to have their parents live with them. Personality conflicts and control issues arise to cause challenges.
For those worried about these factors, who want to set up a multigenerational home, think deeply about choosing a livable home design and layout. Consider buying a townhouse duplex that has two separate living spaces and then connect them by installing a door in a shared, interior wall.
Non-Related Multigenerational Sharing
A new business opportunity is the matchmaking of multigenerational housing owners who are not related. This is a new home-buying trend that is similar to living with college roommates to share expenses.
Conclusion
Multigenerational housing is a growing trend in America because of its practicality. It will continue to increase. REALTORS® who specialize in this market niche will likely find it to be very rewarding.
If you are thinking about buying a new home and your parents might be able to live with you, ask them how they feel about the idea and have some fun shopping for houses together.
