Fortune Tells

For many young or first-time homebuyers, purchasing a home can feel intimidating. A recent survey shows some homebuyers ages 25 to 40 may be unsure about the home buying process and what they can afford. It found:

• “1 in 4 underestimated their buying potential by $150k or more”
• “1 in 4 underestimated the increase in value by $100k or more”
• “47% don’t know what a good interest rate is”

Because they feel uncertain, many young homebuyers have given up on their search, or worse, they’ve decided homebuying isn’t for them and never started on their journey to begin with.

If you’re interested in buying but aren’t sure where to begin, here are three key concepts about homeownership you should understand before you get started.

1. What You Need To Know About Down Payments

Saving for a down payment is sometimes viewed as one of the biggest obstacles for homebuyers, but that doesn’t have to be the case. As Freddie Mac says:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

According to the most recent Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), the median down payment for homes purchased between July 2019 and June 2020 was only 12%. That number is even lower when we control for age – for buyers in the 22 to 30 age range, the median down payment was only 6%.

2. You May Be Able To Afford More Home Than You Think

Working remotely, exercising, and generally spending more time than ever in our homes has changed what many people are looking for in their living space. However, some young homebuyers don’t feel they can afford a home that suits their growing needs and have decided to continue renting instead. That means they’ll miss out on some of the long-term benefits of owning a home. As an article recently published by NAR points out:

“Many young adults are underestimating how much they need for homeownership, the survey finds. Millennials underestimated how much home they can afford right now, how much interest they would pay over a 30-year mortgage, and how much home values appreciate, on average, over 10 years…”

Knowing how much home you can afford when starting the buying process is critical and could be the game-changer that gets you from renting to buying.

3. Homeownership Will Become Less Affordable the Longer You Wait

Finally, with mortgage rates starting to rise along with home prices appreciating, putting off buying a home now could cost you much more later. Sam Khater, Chief Economist at Freddie Mac, notes:

“As the economy progresses and inflation remains elevated, we expect that rates will continually rise in the second half of the year.”

Most experts forecast interest rates will rise in the months ahead, and even the smallest increase can influence your buying power. If you’ve been on the fence about buying a home, there’s no time like the present.

If you feel overwhelmed by the prospect of starting your home search, you’re not alone. Connect with a real estate professional to learn more about the process, what you’ll need to start your search, and what to expect.

Getting ready to sell your house? Then it’s time to roll up your sleeves and get to work! Here's a checklist before selling your house. 

1. Find a great real estate agent

Your real estate agent should be someone you feel comfortable working with, whom you trust to sell your house for top dollar. Don’t be afraid to talk to a few real estate agents before picking one. 

2. Consider your curb appeal

By investing some effort in relatively easy fixes, like planting colorful flowers and repainting your front door, the outside of your house can beckon prospective buyers to come on in. If you’re not sure how to improve your home’s curb appeal, ask your real estate agent for advice on how others in your area have improved the exterior before selling their houses.

3. Declutter living areas

Less is more when it comes to getting your house ready to show. Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards—since virtually nothing is off-limits for curious buyers. If the house is overflowing with stuff, buyers might worry that the house won’t have ample space for their belongings. They won’t sign up to pay a mortgage if they think they’ll also have to rent a storage space.

4. Depersonalize your space

Sellers should remove personal items and family photos, as well as bold artwork and furniture. It might make the home less appealing to the general public. The goal is to create a blank canvas on which buyers can project their visions of living there and loving it.

5. Repaint walls to neutral tones

You might love that orange accent wall, but if it’s your potential buyer’s least favorite color, that could be a turnoff. It’s the seller’s job to help buyers picture themselves in the house. If they don’t feel at home, they’ll probably look at other real estate options.

7. Fix any loose handles

It’s a small thing, sure, but you’d be surprised by the negative effect a loose handle or missing lightbulb can have on a buyer.

8. Add some plants

When staging your house, remember that green is good: Plants create a bright and more welcoming environment. You might also want to consider a bouquet or bowl of fruit on the kitchen counter or dining table. Some plants and natural elements will impress buyers by bringing some extra color and life to your decor.

9. Conduct a smell test

Foul odors, even slight ones, can be a deal-breaker, and the problem is that you might not even notice them. Invite an unbiased third party to try to detect any pet smells or lingering odors from your kitchen. If the smells are pervasive, prepare to do some deep cleaning.

10. Clean, clean, clean

When selling your home, it’s important to keep everything tidy for buyers, and you never know when a buyer is going to want to schedule a last-minute tour. Remember to take special care with the bathroom, making sure the tile, counters, shower, and floors shine.

11. Hide valuables

You can’t trust everyone who comes into your house, even when you’re trying to sell it. Sometimes things disappear during an open house, and there’s little the seller can do to get those things back. Take care to hide your valuables or move them to a safe space away from your home.

12. Consider staging

Home stagers will evaluate the current condition and belongings in your house. They might recommend you buy or rent some items, or they might just reorganize your house.

Got more questions about these tips or any real estate-related topics? Send me a message and we'll be glad to assist you.

Extra storage, seating, and workstation are just a few of the benefits of having a kitchen island. There are a lot of styles you can choose from. L-shaped, galley, curved, or furniture-style? Find out which type of kitchen island is right for you

1. Rolling

If you don't have room for a built-in island, rolling islands are a convenient alternative. It's versatile and you can whisk them around your kitchen. Depending on its size, it may or may not have the storage you needed.

2. U-Shaped

U-shaped islands may be a chef’s dream. Three walls of cabinetry and appliances are enough to increase the efficiency of any kitchen. It's functional and spacious. However, these islands are bulky and can close off your kitchen from the rest of your home.

3. Furniture-Style

An unconventional choice, furniture islands can make your kitchen feel like your home’s premier hangout spot. Wide-ranging options can include a custom piece designed by a local carpenter and an antique table or chest of drawers.

4. Circular or Curved

A circular island may be the answer if you want to add uniqueness to your kitchen design. A full circle or a half-moon might be used in the design. It adds an interesting visual dynamic to kitchens but the storage can be harder to access because your counter is spread out and curved.

5. Galley

With fewer frills and a straightforward design, galley islands are built to be workhorses. They can be a good fit for any type of kitchen layout, assuming that there’s enough space for one. Yes, galley islands are simple and efficient, but some homeowners may think they’re boring.

6. L-Shaped

This type of island can ebb and flow with the shape of your kitchen or fill in the blank space with more storage and prep space. The L-shaped island is large with correspondingly generous storage. However, this style may be too spread out for some homeowners, and it doesn’t always maximize storage space since corners tend to decrease accessibility.

Which is your favorite style? Share your thoughts and let us know in the comments section. 

In a typical market, having an expert adviser lead you through the process of purchasing or selling a home is beneficial. That person can help you with crucial matters such as effectively pricing your house or the initial actions to take when you're ready to buy. The current market, on the other hand, is far from typical. As a result, having an expert on your side isn't just beneficial; it's necessary.

There are several extremes in today's property market. High buyer demand is being fueled by mortgage rates near record lows. On the other hand, a lack of sellers has resulted in historically low housing inventory levels. Bidding wars are escalating as a result of the supply and demand imbalance, with more homes selling for more than the asking price. As a result, property prices are rising and home equity is increasing.

These market conditions aren’t just extreme – they can be overwhelming. Having a trusted specialist guide you through the process of buying and selling a house ensures that you have clarity, confidence, and success at every turn.

Here are just a few of the ways a real estate expert is invaluable:

• Contracts – We help with the disclosures and contracts necessary in today’s heavily regulated environment.
• Experience – We’re well-versed in real estate and experienced with the entire sales process, including how it’s changed over the past year.
• Negotiations – We act as a buffer in negotiations with all parties throughout the entire transaction while advocating for your best interests.
• Education – We simply and effectively explain today’s market conditions and decipher what they mean for your individual goals.
• Pricing – We help you understand today’s real estate values when setting the price of your home or making an offer to purchase one.

A real estate expert can be your essential guide through this unprecedented market, but truth be told, not all agents are created equal. A true expert can carefully walk you through the whole real estate process, look out for your unique needs, and advise you on the best ways to achieve success. Finding the right agent should be your top priority when you’re ready to buy or sell a home.

So, how do you choose the right expert?

It starts with trust. You’ll have to be able to trust the advice your agent is going to give you, so make sure you’re connected to a true professional. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in this unique market. A true professional expert can, however, give you the best possible advice based on the information and situation at hand, helping you make the necessary adjustments and best decisions along the way. The right agent – the professional – will help you plan the steps to take for success, advocate for you throughout the process, and coach you on the essential knowledge you need to make confident decisions toward your goals. That’s exactly what you want and deserve.

It’s crucial right now to work with a real estate expert who understands how the market is changing and what that means for home buyers and sellers. If you’re planning to make a move this year, send me a message here and I will be happy to guide you. 

There are some important repairs to make before selling a house. Don’t be in too much of a hurry to get your home listed. If you move too fast, buyers see right through the fact that you skipped important home renovations. And this might end up costing you time and money. 

Check out these six important repairs to make before selling a house: 

1. Spruce up the grounds.

Good landscaping can add up to 28% to overall home value. This is one of the easiest and cheapest tricks. If you don’t have time for a full overhaul of your front yard, small changes can still have a big impact.

2. Love the hardwood.

One of the biggest turnoffs for buyers is dirty old carpets. It is worthwhile to invest in wood floors. Right now, carpeting isn’t just an aesthetic choice—it’s a choice that can actively turn away buyers who can’t see beyond it. Instead of noticing what a wonderful, light-filled living room you have, they can think only about just how much money it will cost to get rid of that nasty old carpet.

3. Fixing windows and doors are one of the most important repairs to make before selling a house.

You’re not just irritating buyers by refusing to fix broken windows and doors. Ignoring basic repair work might actually cast a pall on your entire home. 

4. Paint and/or wash the walls.

If any of your rooms are doused in a dark shade, cover it up with a coat of light or neutral paint. Buyers find it easier to picture themselves living in a home with neutral walls—plus, they’ll make your home seem larger, cleaner, and far more appealing.

5. Clean the cabinets.

Check for any loose drawers, hardware, or shelving so buyers don’t wonder what else might be amiss. And hide those strange or semi-incriminating items that aren’t at all meant for public display.

6. Update the lighting.

Modern lighting can make your home go from old to new and stylish in no time. The ROI can be pretty impressive.

If you have more real estate-related questions, don't hesitate to send me a message here.

One of the biggest hurdles in buying a home is coming up with a down payment—the large chunk of cash that’s typically required to secure a mortgage for a house.

Fortunately, most lenders today offer a wide range of down payment options for 5%, 10%, 15%, or 20% of the price of the house. For many first-time homebuyers, a government FHA loan can be obtained, for as little as 3.5% down. If you are a military member or veteran, there are even more budget-friendly options available to you.

Many home buyers tap their savings to procure the funds for a down payment, and often postpone large outlays to save money. But here are some other ways to come up with a chunk of money.

1. Gifts from family or friends

Some types of loans allow “gift” funds—money that is given to you—for a down payment. The person who gives the money must have no financial interest in the property and the funds must be a true gift, backed up by a letter. Banks won’t allow “gift” funds if the gift is a loan that has to be repaid.

2. Down payment assistance

Many local and state government programs offer down payment assistance for borrowers in need, so check with your lender or state housing commission for more information.

3. No-PMI home loans

There are a few loan options that allow you to put down less than 20% without the added PMI cost. Check with your lender to see if it offers a low-down-payment, no-PMI product if a 20% down payment seems too challenging

4. Make saving a habit

The surefire way to make your down payment is to start a fund for it now.

Looking for other ways to make your mortgage process easier? Or do you have any other real estate-related questions? Click here and I will be happy to help you. 

Buying a condominium is quite different from buying a single-family home.  Apart from sharing walls and perhaps lowering maintenance expenses, acquiring a condominium (or condo) differs greatly from financing a traditional single-family home. In truth, the wide range of logistics, financing possibilities, and extra fees may astound you. If you're looking for a condo soon, these four things are essential to consider before signing on the dotted line.

Condos are not for everyone

Some buyers will prefer to live in a single-family house, while others will prefer to live in a condominium. Before you buy anything, you should figure out what your needs and preferences are.

Your preferred neighborhood is a big decision. The majority of flats, particularly the more extensive ones, are found in urban or suburban areas. So, if you're looking for rustic charm, an apartment complex might not be the place for you.

You should also think about the type of community you want to join. Traditional homeowners have more privacy than apartment inhabitants, who share walls, shared areas, and amenities. There is no one-size-fits-all solution to your living condition. Every homebuyer will have a unique experience.

Finally, when it comes to home maintenance, think about your preferences. From sweeping driveways to clearing gutters, condos frequently require less care. As a result, they may appeal to senior shoppers or those who prefer not to get their hands dirty.

The mortgage process is different

Financing a condo also looks a bit different (Money Under 30, 2019). Lenders tend to employ stricter standards, including the number of units, the number of investors after ownership, and the occupancy rate. You can opt for a conventional, FHA, or VA loan, but be prepared to jump through additional hoops, including FHA approval, Department of Veteran Affairs approval, or outsized down payment amounts. The requirements will depend on your loan type, property of choice, and personal financial situation, so be sure you understand the specifics.

While you may face stricter standards in obtaining a condo, keep in mind that lending discrimination is illegal. If you suspect you are a victim of lending discrimination, start by reporting the issue to your mortgage professional. If needed, you can also hire an attorney, take legal action or report the incident to the Federal Housing Administration (FHA).

There may be additional costs

In 2018, the average home price was $241,700 while the average condo cost $231,600 (Money Under 30, 2020). Lesser down payment will, in most situations, result in a lower monthly payment and more potential savings. While a condo may be less expensive, there are often hidden charges to consider. You may still need to join a homeowners association (HOA), buy homeowners insurance, pay monthly fees, or manage parking or pet costs, for example. Get a good sense of the overall cost, including any fees, before you make a purchase.

All condos aren’t created equal

Of course, just like when buying a house, you'll want to discover the appropriate condo for you, not just any condo. Get a good understanding of the rules, HOA, neighborhood, and building. You should also ask about the noise level, measure the amount of natural light in the apartment during the day, and evaluate all amenities and common areas extensively. If you have a car, you may also want to consider safe and secure parking. After all, a standard driveway and garage are unlikely to be available to you.

There are numerous advantages to condo living, but you should gain a thorough understanding of the process before making a decision. These places differ significantly from regular single-family homes in terms of finance and costs. If you can't decide, send me a message and let's talk more about it. 

Mortgage sounds like a lot of processes, and a ton of paperwork. But mortgages don’t have to be scary. It's just the same as other business transactions. 

To avoid mortgage mistakes, here are some of the things you can do:

1. Communicate with All Parties

This deal involves several people: the buyer, the seller, the realtors, and the lender. Keep everyone in the loop on every bit of information, or your closing could get delayed. Be transparent about everything.

2. Have Enough Money to Pay Closing Costs

Closing costs are usually 2-5% of the amount you’re borrowing. If you don’t have enough money, there are a few ways to work around the problem.

• Look for assistance programs that cover some of the closing costs.
• Call a relative and ask for a gift.
• Negotiate with the seller to pay the closing costs.

3. Unfreeze Your Credit

Buyers may have placed a security freeze on their credit, which restricts access to their reports. This can prevent identity thieves from opening new accounts in their name but can cause trouble when they’re applying for a mortgage. Head off problems as soon as you begin mortgage shopping. 

4. Steer Clear of Big Purchases After Mortgage Pre-approval

Your lender will check your credit twice. First, when you apply for the mortgage and next, days before you close on the house and get the keys. Even applying for a credit card or car loan can affect your mortgage rate. To get the information it needs, the lender will request your credit file from the credit bureaus. 

5. Expand Your Employer's Contact Information

The COVID pandemic has millions of people working from home, making it tougher for lenders to do routine employment verification. To prevent loan approval delays, get the emails and phone numbers for your employer.

6. Ask Questions So Your Lender and Agent Can Help

There are no dumb questions. Lenders and agents are there to help you, so pick their brains. For example, ask if there are home loan programs to help you get into a home and how to access them. See about getting the seller to pay closing costs. Check on anything you don't understand.

Taking these simple actions can keep your home loan application on track. And that means fewer hassles and less stress for you.

Click here if you have more real estate-related questions and I will be happy to assist you.

When you're buying a house, your offer marks the beginning of a back-and-forth between you and the seller, typically with a real estate professional advising you both.

The more intentional you are about your offer, the better your chances of making a successful bid. Here are the 10 tips you can follow to save time and money.

1. Know Your Limits

Your agent will assist you in putting together a strong offer. It's a mutually beneficial relationship, so you can trust your agent's advice on price, contingencies, and other contact details. You'll be able to move more swiftly if you work together with your agent.

2. Learn to Speak "Contract"

An offer is essentially a contract. The paperwork and phrasing differ from state to state.

Before you go house hunting, go through some sample offer forms. If you need more information, a real estate attorney may walk you through the documentation so you're familiar with the terminology when you're ready to make an offer with your agent. Offer forms for your state will be available from your agent.

3. Set Your Price

There is always a listing price for a home. Consider it the seller's initial bid in your home purchase negotiations. As the buyer, you will include an offer price in your offer. When a home seller receives a bid, this is the first thing they look at. By using comps (or comparables), your agent can assist you to assess whether the seller's listing price is reasonable. 

4. Figure Out Your Down Payment

You must make a down payment on your loan in order to obtain a mortgage. Making a 20% down payment on a conventional loan (as opposed to a government loan) allows borrowers to avoid paying private mortgage insurance (PMI). PMI is a monthly fee that protects the lender in the event of a default by the borrower.

5. Show the Seller You’re Serious: Make a Deposit

The amount you put down as proof to the seller that you're serious about buying the house is known as an EMD (earnest money deposit). The earnest money will be applied to your down payment at closing if the seller accepts your offer. If you try to back out of the arrangement, you may be forced to pay the seller.

6. Review the Contingency Plans

Most real estate contracts include contingencies, which are requirements that must be completed before the transaction can proceed, otherwise, the buyer will be able to withdraw their EMD.

7. Read the Fine Print About the Property

The sales contract contains important details regarding the property, such as the address, tax ID, and utility kinds (public water or private well, gas or electric heating, etc.).

8. Make a Date to Settle

A proposed settlement date must be included in the sales contract you send to the seller, which verifies when the transaction will be completed. When the purchase agreement is signed, the clock starts ticking. If you don't close on time, the party who caused the delay may be required to compensate the other party by paying "penalty interest" at a specified rate.

9. Write a Fan Letter to the Seller

Do you want to make a truly irresistible offer? Attach a personal note to the bid documents to tug at the seller's heartstrings. Tell a captivating story about your ancestors and your ties to the community. Consider your ancestors.

10. Brace Yourself for a Counteroffer

If you’re making a lowball bid or going up against multiple offers, the seller may decide to make you a counteroffer — a purchase agreement with new terms, such as a higher sales price or fewer contingencies.

If you're planning to buy a house these tips will certainly help you. 

For more real estate-related tips and questions, just click here and I will be happy to guide you. 

When it comes to one of the biggest financial decisions of your life, you’ll want to ensure you have all the right people on your side. After all, purchasing a home truly takes a village. Here are some of the tips to choose your ideal home buying team. 

1. They have the right experience

Depending on your situation, you may decide to seek out someone with specific expertise. For example, if you’re buying with a low credit score or when self-employed (Investopedia, 2021), professionals who have worked with clients in similar situations in the past might be more of a fit. Or, maybe you just want someone who knows your loan type or neighborhood of choice like the back of their hand. Either way, assess your unique needs and ensure this professional can address them.

2. They’re helpful in stressful situations

The home buying process can get intense, and you’ll want to have someone supportive on your side. ‘Supportive’ looks a little different for everyone, though. Do you want someone to push or challenge you when the going gets tough? Or, would you prefer someone console you and pitch alternatives in times of frustration? They call it a home buying team for nothing, so be sure to select the right teammates.

3. Their communication style compliments yours

Communication is key when it comes to navigating the home buying process. Whether all-day text conversations or weekly phone calls, most of us have a preferred method and frequency of communication. A good fit means your agent or loan originator won’t be messaging you at all hours of the day. Unless, of course, that’s what you’d prefer!

4. They provide the level of support you need

From confidence to decisiveness, each and every buyer is vastly different. Do you want to call the shots or are you more along for the ride? Certain buyers know exactly what they want from their home and home loan, so the right home buying team can focus more on support. Others want to be guided through the process. They’ll benefit from someone who takes the reins and facilitates the entire experience. Decide how involved you’d like to be and ensure each professional can accommodate.

Purchasing a home is a big decision and can be an intense process. You want the right people working behind the scenes to help make your dream a reality. By considering your unique needs, and ensuring each team member can meet them, you’re one step closer to homeownership. 

Just click here if you need a home buying team.