Fortune Tells

First impressions start with curb appeal next to the kitchen, the space that arguably carries the most weight is your living area.

The following things could be the biggest buyer deal breakers. Make sure to avoid them. 

1. Dead bugs

The insect graveyard was an instant turnoff, if not to everyone, but most of us. Make sure every corner of your living room is pest-free before you show your home. 

2. Your collection

Pack your precious collections away, no matter how harmless they may seem to you. It might seem decorative for you but, maybe not for potential buyers. 

3. Surprise smells

Without question, odors are major living room turn off. Not just bad odors but also other types of scents. The best scent in your house? Nothing. 

4. Evidence of your pets

You might accept the fact that your beloved cats and dogs shed their whole coat onto your couch cushions. But potential buyers won’t be as understanding.

5. Darkness

Let there be lights! Let the light in. The dark living room is a big no-no. 

6. Personal photos

A photo on the living room wall of you and your family is essential to you, but can still be a major turnoff to buyers. 

Buyers are going to run full speed and scan whatever they can if they stumble across a living room that freaks them out, chances are they will cross your home out of their list.

If you need more real estate-related tips, just send me an email here.

With forbearance plans about to come to an end, many are concerned the housing market will experience a wave of foreclosures like what happened after the housing bubble 15 years ago. Here are four reasons why that won’t happen.

1. There are fewer homeowners in trouble this time

After the last housing crash, about 9.3 million households lost their home to a foreclosure, short sale, or because they simply gave it back to the bank.

As stay-at-home orders were issued early last year, the overwhelming fear was the pandemic would decimate the housing industry in a similar way. Many experts projected 30% of all mortgage holders would enter the forbearance program. Only 8.5% actually did, and that number is now down to 3.5%.

As of last Friday, the total number of mortgages still in forbearance stood at  1,863,000. That’s definitely a large number, but nowhere near 9.3 million.

2. Most of the 1.86M in forbearance have enough equity to sell their home

Of the 1.86 million homeowners currently in forbearance, 87% have at least 10% equity in their homes. The 10% equity number is important because it enables homeowners to sell their houses and pay the related expenses instead of facing the hit on their credit that a foreclosure or short sale would create.

The remaining 13% might not all have the option to sell, so if the entire 13% of the 1.86M homes went into foreclosure, that would total 241,800 mortgages. To give that number context, here are the annual foreclosure numbers of the three years leading up to the pandemic:

• 2017: 314,220
• 2018: 279,040
• 2019: 277,520

The probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures coming out of the housing crash 15 years ago. The number does, however, draw a similar comparison to the three years prior to the pandemic.

3. The current market can absorb any listings coming to the market

When foreclosures hit the market in 2008, there was an excess supply of homes for sale. The situation is exactly the opposite today. In 2008, there was a 9-month supply of listings for sale. Today, that number stands at less than 3 months of inventory on the market.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains when addressing potential foreclosures emerging from the forbearance program:

“Any foreclosure increases will likely be quickly absorbed by the market. It will not lead to any price declines.”

4. Those in power will do whatever is necessary to prevent a wave of foreclosures

Just last Friday, the White House released a fact sheet explaining how homeowners with government-backed mortgages will be given further options to enable them to keep their homes when exiting forbearance. Here are two examples mentioned in the release:

“For homeowners who can resume their pre-pandemic monthly mortgage payment and where agencies have the authority, agencies will continue requiring mortgage servicers to offer options that allow borrowers to move missed payments to the end of the mortgage at no additional cost to the borrower.”

“The new steps the Department of Housing and Urban Development (HUD), Department of Agriculture (USDA), and Department of Veterans Affairs (VA) are announcing will aim to provide homeowners with a roughly 25% reduction in borrowers’ monthly principal and interest (P&I) payments to ensure they can afford to remain in their homes and build equity long-term. This brings options for homeowners with mortgages backed by HUD, USDA, and VA closer in alignment with options for homeowners with mortgages backed by Fannie Mae and Freddie Mac.”

When evaluating the four reasons above, it’s clear there won’t be a flood of foreclosures coming to the market as the forbearance program winds down.

If you have any questions about this article or any real estate-related questions, just click here.

You may be wondering if there are tax deductions when selling a home. The answer is yes. Check out this list to make sure you don’t miss any of them.

1. Selling costs

These deductions are allowed as long as they are directly tied to the sale of the home, and you lived in the home for at least two of the five years preceding the sale. Another caveat: The home must be a principal residence and not an investment property.

2. Home improvements and repairs

If you renovated a few rooms to make your home more marketable (and so you could fetch a higher sales price), you can deduct those upgrade costs as well. This includes painting the house or repairing the roof or water heater.

3. Property taxes

This deduction is capped at $10,000, Zimmelman says. So if you were dutifully paying your property taxes up to the point when you sold your home, you can deduct the amount you paid in property taxes last year up to $10,000.

4. Mortgage interest

As with property taxes, you can deduct the interest on your mortgage for the portion of the year you owned your home.

5. Capital gains tax for sellers

The capital gains rule isn’t technically a deduction (it’s an exclusion), but you’re still going to like it. As a reminder, capital gains are your profits from selling your home—whatever cash is left after paying off your expenses, plus any outstanding mortgage debt.

If you have questions about what we mentioned above, click here and I'll be glad to assist you.

There’s no denying we’re in a sellers’ market. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR):

• Homes typically sell within 17 days (compared to 26 days one year ago).
• The average home sold has five offers to pick from.
• 54% of offers are over the asking price.

Because so many buyers are competing for so few homes, bidding wars are driving up home prices. According to an average of leading expert projections, existing home prices are expected to increase by 8.9% this year.

Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your house’s potential.

Why Pricing Your House Right Matters

Here’s the thing – a high price tag doesn’t mean you’re going to cash in big on the sale. While you may be trying to maximize your return, the tradeoff may be steep. A high list price is more likely to deter buyers, sit on the market longer, or require a price drop that can raise questions among prospective buyers.

Instead, focus on setting a price that’s fair. Real estate professionals know the value of your home. By pricing your house based on its current condition and similar homes that have recently sold in your area, your agent can help you set a price that’s realistic and obtainable – and that’s good news for you and for buyers.

When you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.

When it comes to pricing your house, working with a local real estate professional is essential. Make sure you have an expert on your side so you can optimize your exposure, your timeline, and the return on your investment, too. Send me a message here if you need help. 

While the housing market forecast for the second half of the year remains positive, there may not be a better time to sell than right now. Here are four things to consider if you’re trying to decide if now’s the right time to make a move.

1. Your House Will Likely Sell Quickly

According to the most recent Realtors Confidence Index released by the National Association of Realtors (NAR), homes continue to sell quickly. The report notes homes are selling in an average of just 17 days.

Average days on market is a strong indicator of buyer competition, and homes selling quickly is a great sign for sellers. It’s one of several factors that indicate buyers are motivated to do what it takes to purchase the home of their dreams.

2. Buyers Are Willing To Compete for Your House

In addition to selling fast, homes are receiving multiple offers. NAR reports sellers are seeing an average of 5 offers, and these offers are competitive ones. Shawn Telford, Chief Appraiser at CoreLogic, said in a recent interview:

“The frequency of buyers being willing to pay more than the market data supports is increasing.”

This confirms buyers are ready and willing to enter bidding wars for your home. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.

3. When Supply Is Low, Your House Is in the Spotlight

One of the most significant challenges for motivated buyers is the current inventory of homes for sale, which while improving, remains at near-record lows. As NAR details:

“Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April’s inventory and down 20.6% from one year ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April’s 2.4-month supply but down from 4.6-months in May 2020.”

There are signs, however, that more homes are coming to market. Odeta Kushi, Deputy Chief Economist at First American, notes:

“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”

If you’re looking to take advantage of buyer demand and get the most attention for your house, selling now before more listings come to the market might be your best option.

4. If You’re Thinking of Moving Up, Now May Be the Time

Over the past 12 months, homeowners have gained a significant amount of wealth through growing equity. In that same period, homeowners have also spent a considerable amount of time in their homes, and many have decided their house doesn’t meet their needs.

If you’re not happy with your current home, you can leverage that equity to power your move now. Your equity, plus current low mortgage rates, can help you maximize your purchasing power.

But these near-historic low rates won’t last forever. Experts forecast interest rates will increase in the coming months. Nadia Evangelou, Senior Economist and Director of Forecasting at NAR, says:

“Nevertheless, as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months.”

As interest rates rise, even modestly, it could influence buyer demand and your purchasing power. If you’ve been waiting for the best time to sell to fuel your move up, you likely won’t find more favorable conditions than those we’re seeing today.

With supply challenges, low mortgage rates, and extremely motivated buyers, sellers are well-positioned to take advantage of current market conditions right now. If you’re thinking about selling, talk to a trusted real estate advisor today about why it makes sense to list your house sooner rather than later.

Plants instantly add color, vibrancy, and a breath of fresh air to your space, no matter the size. Certain greens like ferns, palms, and ivy to name a few, also detoxify the air around you.

Here are some of the air purifying plants to give your house a breath of fresh air.

1. Kimberly Queen Fern

This easy-to-grow fern thrives in bright direct sunlight and mild temperatures. It also loves the humidity, so if the air in your home tends to be dry, you might want to set it up next to a small humidifier.

2. Variegated Snake Plant

This striped green can survive with little water and light. Because it can go weeks without care, it's known as one of the most low-maintenance houseplants for beginner gardeners. Not to mention, it's a beautiful deep green that will make your space feel so lush.

3. Barberton Daisy

This colorful plant can grow indoors or outdoors, and many people love it for its cheery blooms. Barberton daisies can flower at any time of the year, and each flower lasts between four and six weeks.

4. Weeping Fig Tree

This large indoor tree should be in a well-lit room and watered regularly. Keep in mind that you may need to repot this plant annually, as it can grow between 3 and 6 feet in height.

5. Red-Edged Dracaena

With its red, spiky leaves, this evergreen is tropical in appearance and will add a punch of color to any space. It can survive with or without sunlight, and also requires very little water.

6. Peace Lily

A symbol of sympathy, this budded plant works well in partial sunlight and humid climates and blooms for about two months in the spring. If you have pets, keep in mind that peace lilies are poisonous to both cats and dogs.

7. Broadleaf Lady Palm

Perfect for indoors or outdoors, this plant can grow up to 14-feet tall (although it can also be pruned back to a more manageable height). Lady palms prefer indirect light, moist soil, and can thrive at almost any temperature.

8. Spider Plant

Another great option for beginner gardeners, spider plants flourish in bright, indirect sunlight with lots of water. Some mature spider plants produce white flowers, which then mature into baby spiderettes that can be removed and rooted in water or soil.

9. Devil's Ivy

This plant loves indirect sunlight and only needs to be watered when dry. It gets its name because it's nearly impossible to kill and stays green even when kept in near darkness.

10. Flamingo Lily

Naturally found in rainforests, this plant needs indirect sunlight, humid temperatures, and water to grow. It can bloom year-round and produces stunning red flowers that will beautify your space.

11. Chinese Evergreen

With its ability to tolerate low light and drought, the Chinese evergreen is an easy plant for beginner indoor gardeners. If your plant gets enough sunlight, it might even produce a calla lily-like bloom.

12.  Bamboo Palm

If you have space, try a bamboo palm (these trees can grow from 4 to 12 feet tall and 3 to 5 feet wide). Place the palm in a well-soiled planter in indirect sunlight and water it when the surface feels dry.

The more plants, the better. To reap the benefits, have at least two plants per 100 square feet. Keep in mind that plants with larger leaves purify air quicker.

Which plant are you planning to get for your house? Tell us in the comments section. 

You've probably made a list of things to do around the house if you're getting ready to sell your house. Remove any clutter from your rooms, paint the walls, and repair any damaged or worn items.

When preparing a home to sell, it's obvious that enhancing the aesthetic appeal is critical. However, there is one extremely crucial chore to add to your to-do list: ensuring that your home has a pleasing scent.

Follow these guidelines on scents to use and avoid to help sell your home.

1. Start with a deep clean.

Cleaning your home when prepping it for sale means scrubbing the nooks and crannies of all hard surfaces until they shine, as well as washing or vacuuming all fabric items, such as bedding and drapes. This heavy-duty cleaning approach should eliminate minor unwanted odors and introduce a clean, refreshing scent throughout each room.

2. Eliminate food and pet odors.

Whether you’re a cat lover or a gourmand, you may no longer notice the odors from pets or cooked food in your home. But for a potential buyer, these smells are at the very least distracting, and in some cases may even be offensive. Remember, buyers, are there to view your home and — hopefully — to imagine themselves living in it. You don’t want them focusing on any unwanted odors. 

3. Keep it fresh and simple.

Whether you choose to introduce a scent via reed diffuser, candle, or fresh ingredients, make sure no other scent is mixed with it. Lemon should not be mixed with orange, for example. This will allow your potential home buyer to stay focused on the task at hand.

4. Less is more.

Introducing a simple scent to your home-staging efforts doesn’t necessarily mean you can drench the home in that one smell. Remember, less is more: You want potential buyers to appreciate the home, not be bowled over by an overwhelming smell of lemons.

5. Let the scent reflect the space.

Finally, select a scent that is appropriate for the general environment and aesthetic of the home. For example, if you have a lot of wooden beams and walls, cedar might enhance the ambiance. Likewise, if you’re near the beach, go for something fresh.

Looking for more real estate tips? Just leave a comment below or send me a message today.

This summer is going to be difficult for homebuyers. The property market has been on fire for over a year, and house buying obstacles persist even as the coronavirus outbreak fades.

If you're looking to buy a house this summer, these strategies will help you get a better deal.

1. Get pre-approved for a mortgage before you start shopping

To be ready to make an offer on a home in today’s market, you must get pre-approved for a mortgage. Including a pre-approval letter when you submit an offer on a house shows the seller that you’re a serious and qualified buyer.

2. Team up with the right lender and agent

Houses are flying off shelves. Working with a loan officer who is available on nights and weekends is especially important. In addition, finding a real estate agent who has good relationships with other agents in your market is critical.

3. Be prepared to offer asking price — or higher

For the first time, more than half of U.S. homes sold above the asking price in May, according to Redfin. The average home sold for 2.2% above its listing price. Therefore, the best approach for buyers is to shop for properties that are listed at prices below the top of your budget so that you have room to offer above the asking price for the right home.

4. Write a “clean” home offer

In a more balanced market, it is common for real estate contracts to include so-called contingencies, which layout conditions that must be met before a sale can be completed and allow a buyer to walk away if something goes wrong. For example, a home inspection contingency allows buyers to ask sellers to make repairs if they uncover problems during a property inspection. A financing contingency requires that the buyer’s mortgage get approved before they’re obligated to close on the property.

But with many sellers getting flooded with offers right now, buyers have less room to require contingencies. As a result, sellers prefer a so-called “clean” offer that waives contingencies.

5. Don’t get discouraged

With such a limited supply, you may have to bid on a lot of homes before you have an offer accepted. Don’t let a few rejections derail your home search. 

If you're planning to buy a house this summer, let's work together. Send me a message here. 

You don't believe you're ready to buy a house yet? That you're emotionally ready but not financially. Or you're not confident because of the home-buying myths?

Let's debunk the following myth below. 

Myth 1: I Have to Put Down 20%

Saving 20% of the price of a home in many places isn't just a challenge; it's a roadblock. And it's not a must-do. The median down payment for first-time buyers is 7%.

Myth 2: My Low Credit Score Means I Can't Buy a Home

So, your credit could use a tune-up. That doesn't mean you have to forgo your home-buying dreams. Here are some options for those with a less-than-stellar credit score.

• FHA loan
• A higher down payment
• A co-signer
• Check your credit report

Myth 3: I Can't Afford the Agent's Commission

Here's one you can immediately mark off your worry list. Typically, the commission is paid from the proceeds of the sale via the seller.

Myth 4: My Bank Will Give Me the Best Mortgage

There are a lot of positive things to say about working with your local bank, but assuming they'll give you the best mortgage is a mistake.

Banks are only one type of home-loan lender. Others include credit unions and mortgage companies. Mortgage rates aren't the same across the board, so contact several institutions to ensure you're getting the best price.

Myth 5: I Was Pre-Approved. I Got The Loan!

You don't get the loan until:

(a) The seller accepts your offer

(b) Your lender approves the loan (which you'll need those tax docs for)

(c) You sign the loan papers 

Between (a) and (c), the lender will have the home appraised to ensure its value is in line with the purchase price, check your credit again, and ask you for more documents than you ever knew existed.

Myth 6: The Interest Rate Is What Matters Most

A low-interest rate is important, but it's not the only thing to consider. When shopping around for a loan, check the annual percentage rate (APR). It includes all loan costs, such as origination and processing fees that can vary widely from lender to lender, in addition to the interest rate.

Got real estate-related questions? Send me a message here and I will be glad to help you.

The kitchen is the heart of the home and more often, kitchen remodeling is the most expensive home improvement job undertaken by homeowners.

If you're planning to remodel your kitchen, follow these strategies to get the most money out of your kitchen makeover. 

1. Plan

Planning your kitchen remodel should take more time than the actual construction. If you plan well, the amount of time you’re inconvenienced by construction mayhem will be minimized. Plus, you’re more likely to stay on budget.

How much time should you spend planning? The National Kitchen and Bath Association recommends at least six months. That way, you won’t be tempted to change your mind during construction and create change orders, which will inflate construction costs and hurt your return on investment. 

2. Get Real About Appliances

Don't get carried away in buying your kitchen appliances. Appliances are essentially tools used to cook and store food. It's not about the equipment in your kitchen makeover, but about the overall design and functionality.

3. Keep the Same Footprint

If possible, keep appliances, water fixtures, and walls in the same location. Not only will you save on demolition and reconstruction costs, but you'll also cut the amount of dust and debris your project generates.

4. Don’t Underestimate the Power of Lighting

In a kitchen, lighting can make a huge difference. It can make it appear bigger and brighter. It will also assist you in working safely and effectively.

5. Be Quality-Conscious

Functionality and durability should be top priorities during kitchen remodeling. Resist low-quality bargains and choose products that combine low maintenance with long warranty periods.

6. Add Storage, Not Space

Storage will never go out of style.

7. Communicate Clearly With Your Remodelers

Establishing a good rapport with your project manager or construction team is essential for staying on budget. 

Which one is your favorite tip? Comment below and let us know.