Top housing experts and economists give a glimpse of what mortgage rates, home values and the national real estate market will do in 2025.

Key Takeaways

• Mortgages are forecasted to remain higher for longer; but there are things you can do to lower your rate.
• Home values are predicted to increase incrementally on a national level; and there are projects you can do to increase your home's value.
• The national market will slightly favor sellers in negotiations; however, real estate is driven by local dynamics and may favor either buyers or sellers.

Note: real estate is a dynamic market and forecasts made in this article will change as the year unfolds.

Mortgage Rates Will Average 6.4% in 2025

In 2023, the average 30-year mortgage peaked at 7.79% following the pandemic. Rates came down from that peak in 2024. What will mortgage rates do in the next year?

The Federal Reserve is predicted to lower the federal funds rate 6 to 8 times in 2025; but mortgage rates are not set by the Federal Reserve and may not drop significantly (National Association of REALTORS®).

Fannie Mae predicts mortgage rates to average 6.4% in 2025. Mortgage Bankers Association also predicts mortgage rates to average 6.4%, but with slightly higher rates compared to Fannie's forecast.

Sources: Fannie Mae Housing Forecast: November 2024 andMortgage Bankers Association Mortgage Finance Forecast: November 2024

When Will Mortgage Rates Drop Back to 3%?

Historically, rates have never been as low as the pandemic era interest rates. 30-Year mortgage rates averaged between 4% and 6% during & after the housing crisis and Great Recession. A return to a 3% range is very unlikely.

Source: Federal Reserve of St. Louis

Tips to get a better mortgage rate…

While we can't affect the average 30 year mortgage rate, you can improve your credit and get the best possible rate. Here's an example of recent mortgage rates by credit score:

Source: myFICO.com

If you're thinking of making a move, the earlier you talk to a mortgage finance professional, the more time you have to work on improving your credit to get a better rate.

Need a recommendation to a trusted lender? Send me a message.

Home Values Will Increase by 1.5% to 3.6%

Since 2020, the average sales price of a home has gone up by $97,000 or 29.7% (Federal Reserve of St. Louis). Which indicates homeownership to be a great investment. But, what will home values do in the next year?

On a national level, home price growth is predicted to slow down from 2024. However, home prices are predicted to increase in 2025. Fannie Mae predicts home prices to increase on average by 3.6%. MBA is predicting an average increase of 1.5%.

Sources: Fannie Mae Housing Forecast: November 2024 and Mortgage Bankers Association Mortgage Finance Forecast: November 2024

Home values are influenced by local market dynamics. If you want to understand what home values are forecasted to do locally, consider talking to a real estate professional.

Want to increase your home's value? Consider these remodeling projects for the highest return on investment.

Will Home Values Crash in 2025?

For home values to drop significantly, a major influx of homes for sale would have to hit the market. Freddie Mac estimates the U.S. housing stock is 3.7 million units below what's needed to meet demand. It will take time to build up inventory to meet demand. Which is why a major drop in home values and prices is unlikely.

Will 2025 Be a Home Buyers or Sellers Market?

Who will have the advantage in the 2025 housing market, buyers or sellers? One measure of the market is Months Supply and it shows who has the advantage.

Months Supply is calculated by dividing the total number of homes for sale by the average number of homes sold each month. For example if there are 500 homes for sale in a particular area and an average of 100 homes are selling each month, the Months Supply is 5 months.

Here's a chart of month's supply going back to November of 2023:

Source: Federal Reserve of St. Louis

6 Months Supply is considered a balanced market. Over 6 months supply is considered a buyers' market. Below 6 months supply is a sellers' market. At 4 months supply on a national level, the market slightly favors sellers.

Inventory is rising nationally, however, which could shift the market to favor buyers in the next year. With that said, all real estate is local and local markets will differ in favoring buyers versus sellers.

If you want to know if your area favors buyers or sellers, send me a message.

What This Means for Homeowners

If you own a home, you will likely see a slight increase in your home's value. If you want to increase your home's value and enjoy the upgrades, consider making some home improvements. If you want advice on which features or projects are best suited for increasing your home's value, consult with a professional.

Tips for Potential Home Buyers

If you're thinking of purchasing a home, the sooner you start planning the better. Knowing your price range, optimizing your credit, and working towards your downpayment are steps you can take now. Even if you're in the market to buy in the next 12 to 24 months, talking with a real estate professional early in the process will set you up for success.

Tips for Potential Home Sellers

Sellers need to prioritize their objectives. Is getting top dollar for your home the highest priority, is it moving within a specific timeframe? Do you have to sell a home prior to purchasing your next one? These objectives must be prioritized so that an effective plan and marketing strategy can be put into place. Thinking of making a move? Talk to a real estate professional!

The winter season brings shorter days, longer nights, and chilly temperatures that require extra effort to stay warm indoors and save on energy bills. With cold weather just around the corner, our real estate agents have five great tips that will make it easier for you to stay warm and cozy at home this winter.

1. Light Up the Fireplace
   Ohio winters can be harsh, with temperatures that drop well below freezing. If your home has a fireplace, take advantage of the extra warmth and cozy atmosphere you get by building a fire. While most newer homes have built-in fireplaces, some older Akron homes for sale have wood stoves that still put out a lot of heat. Either way, throwing on some logs and starting a fire is a great way to get rid of that winter chill. If you have an outdoor fireplace or a fire pit, you can even enjoy roasting marshmallows on a cold night.

2. Throw Down Some Rugs
   You may have beautiful hardwood, stone, or ceramic tile floors, but they won't keep your feet and tootsies warm during cold winters. Nothing is worse than stepping onto a freezing hard floor first thing in the morning or late at night. Fuzzy slippers and socks will help keep your feet warm, but throwing down some area rugs will create insulation and warmer rooms in your home. Investing in a few wool rugs or runners, shaggy, thick rugs, and fuzzy bathroom mats will keep you from jumping back into bed on a chilly morning.

3. Close the Curtains
   If your home has shutters, shades, or blinds, you're likely feeling a little colder during winter weather. These sleek window treatments are popular in many North Canton homes for sale, but they don't provide much insulation against the cold air that sneaks through your windows. To warm up your room, consider adding floor-to-ceiling curtains that you can close over your shutters, shades, and blinds. Choose a heavier fabric and an insulated lining that will keep the cold air outside and the warm air inside during freezing winter temperatures.

4. Pile on the Throw Blankets
   When planning and decorating for winter, throw blankets and quilts for your home are a must. Whether your design style reflects a traditional, farmhouse, mid-century modern, or contemporary interior, you can find beautiful and affordable throw blankets and quilts that will keep your thermostat lower and keep you warmer on chilly days and nights.

• • Sofas and Chairs – Draping warm blankets or throws over your sofas and chairs will create cozy, inviting spaces for guests, family conversations, watching movies and TV, reading books, and enjoying a cup of coffee or hot chocolate.

  • Bedding – When winter arrives, swap out your bedding with warmer sheets, throws, blankets or quilts, and duvet covers. Changing to fleece or cotton flannel sheets, heavier woven throws and blankets, and a soft wool or velvet duvet cover will keep you much warmer while you sleep. If your bedroom stays on the chilly side, invest in an electric blanket with automatic controls and safety features.

5. Soften Your Lighting
   During winter months, you can create a warm, relaxing atmosphere at home by simply softening your lighting. You don't need an electrician—just replace your light bulbs with soft white or warm white LED bulbs, add new linen or paper lampshades with metallic linings, hang sconces that direct light against the wall, and light some candles. All of these lighting tips create a softer, diffused light with a cozy glow.

Are you thinking about moving to Stark or Summit County? Contact us about available homes that may be the perfect fit for your lifestyle.

The first utility bill in a new home can mean an unpleasant surprise for the unsuspecting homeowner. Not only is the cost higher in a house than in an apartment, but energy costs are soaring across the globe. Fortunately, you can take measures to lower your utility bills, and our real estate agents would like to share them with you.

1. Seal it up!
   You would be amazed at how much cold air seeps in through tiny openings around the house. Start first with weather stripping around doors and windows. This low-cost process will save you a lot of money over time. But don't stop there. Check for gaps anywhere two materials meet, such as where siding meets the foundation, a chimney, or the roof. Pick up exterior-grade caulking from your favorite home improvement store and apply it wherever such gaps appear. Install foam gaskets behind light switches. 
   
   
2. Install a smart thermostat
   You may find that many of our North Canton homes for sale are already equipped with this modern convenience, but if not, you would be doing yourself a big favor by installing one. You can pre-program your energy consumption based on your schedule. That can save you as much as 35% on your bill. But you can do far more than that. You can communicate with your thermostat via an app on your phone to keep utility use to a minimum when you are out of town, adjusting the house to an appropriate temperature just before you return. 
   
   
3. Lower the temperature on your water heater
   Most manufacturers set the thermostat to about 160 degrees, but you don't need it to be more than 120. If your water heater is an older model, you may need to flush the mineral buildup from the tank. It's a simple process that can save you a lot. Turn off the water and power. Let the unit cool. Attach a hose to the bottom of the unit leading water to the outside. Open the drain valve and turn the water back on to flush. When the water runs clear, reverse the process. Be sure to close the drain valve securely before removing the hose and turning the water back on. 
   
   
4. Maintain your HVAC unit
   Make sure the area surrounding your unit is clean and free from debris. Cut any branches or plant growth that could encroach upon the unit. Change your air filters every three months. After turning off the power, remove the unit's cover and vacuum out dust, cleaning coils and fins thoroughly. Schedule professional maintenance annually, and if you experience a particularly difficult season weather-wise, consider a check-up between seasons. Replacing an aging HVAC unit is expensive, but this may be an important issue to address if your utility bills are excessive. 
   
   
5. Choose the best energy plan for you
   Akron homes for sale offer the buyer a choice between energy suppliers. Talk to your agent to get a list of options. Then call each to discuss their energy plans before you make a selection. Each supplier may offer multiple plans. Pick the one best suited to your lifestyle to obtain the lowest price available.
   
   
6. Don't forget the tips your parents taught you
   Dress appropriately for the temperature and keep doors and windows closed. Turn off the light when you leave the room and unplug energy thieves when you turn them off. Some electronics are actually on stand-by for quick start-up. 

When you're ready to tour some of the most beautiful houses in Ohio, contact us. We will be happy to help you find the perfect new home for you. 

The holiday season is just around the corner, which means our real estate agents are already dreaming of delicious holiday pies. Whether it's a pumpkin and pecan pie for Thanksgiving or fruit and custard pies for Christmas, a good pie is a staple of any great holiday meal.

We take pies very seriously around Canton and North Canton, which is why you can find amazing pies at most area bakeries and diners. If you're looking for a place to grab a holiday pie this year, don't wait until it's too late. Check out one of these fantastic local shops:

• Johnnie's Bakery Of Canton - 6652 Wise Ave. NW, North Canton, OH 44720
  This North Canton staple is always a go-to destination for holiday pies. Johnnie's Bakery Of Canton serves some of the best local baked goods (including amazing donuts), so it's no surprise that many residents turn to this shop for pumpkin pies, pecan pies, cherry pies, and more. The shop is open 6 am to 2 pm Tuesday through Saturday Best of all, it's conveniently located just down the road from these North Canton homes for sale. 
  
  
• Ferraro's Family Restaurant - 3822 Navarre Rd. SW, Canton, OH 44706
  You'll notice some tasty pies on display as soon as you walk into Ferraro's Family Restaurant. This old-school restaurant serves home-cooked meals and a wide variety of pies, including pumpkin, coconut cream, cherry, and more. The restaurant receives many holiday orders, so get yours in early. After picking up your pie, swing by one of these nearby Canton homes for sale.
  
  
• Variety's Restaurant - 1286 S. Main St. #4271, North Canton, OH 44720
  Another great North Canton restaurant that serves freshly baked pies for dessert is Variety's Restaurant. If you're looking for great food, great service, and delicious pies, this is your place. Their pies are available for holiday orders, and the Lemon Meringue Pie is one of the best sellers! The restaurant is open daily from 7 am to 9 pm.
  
  
• Norcia Bakery - Belden Ave. NE, Canton, OH 44704
  Norcia Bakery is a great place for pies. This bake shop serves cookies, cakes, pastries, and pies, all made fresh daily, and everything is delicious. If you're out of town, they offer nationwide ordering online. Live in Stark County? They offer holiday pie home delivery, so you don't even have to leave the house. 
  
  
• Studio Bakery - 4339 Dressler Rd. NW, Canton, OH 44718
  This awesome local bake shop makes one of the best cherry pies in town, so you'll definitely want it on your table this holiday season. Additionally, Studio Bakery bakes (and designs) some of the tastiest cakes, cupcakes, cookies, and more. Is there a certain pie you're craving? Call in and place your order over the phone. The staff is always friendly and helpful!
  
  
• Baker's Cafe - 1927 Stark Ave. SW, Canton, OH 44706
  One of the best things about having dinner at Baker's Cafe is finishing your meal with a delicious slice of freshly-baked homemade pie. These pies are made fresh every morning, and there are always different flavors to choose from (though the Pecan is one of the best). Stop in or call to place your holiday pie order.

Pies are an important part of every holiday meal, so head to your favorite area bakery or diner to place your order. For more information on local businesses, contact us today.

While it's true that the housing market has cooled somewhat, there is still time to take advantage of the increased value of your home if you plan to sell. But before you set an asking price, our real estate agents want to help you maximize your profits by considering the hidden costs associated with the sale. Here are a few expenses they consider to be some of the most critical:

• Identify problems that could derail the sale.
  A pre-inspection will help you make any necessary repairs before the house is on the market. You can expect to spend a few hundred dollars for a professional inspection, but you won't need to worry about surprises that could delay or prevent closing the sale.
  
  
• Make necessary repairs.
  Lenders will only approve a loan if the property is a sound investment, which means they expect it to be in good repair. You should make most repairs before you attempt to sell the home. Sometimes the cost can be split between the buyer and seller. They will negotiate a pre-determined amount, and either can back out of the deal if cost estimates exceed that amount. 
  
  
• Verify property lines.
  Newer residential developments generally have definitive property lines, but many North Canton homes for sale are more than 40 years old, and boundaries may be questionable. You may need to pay for the property to be surveyed to assure the lender and buyer that the property lines are accurate. This service can cost anywhere from about $250 to $1,000, depending upon the size and shape of the parcel. 
  
  
• Consider possible concessions.
  Potential buyers frequently request that certain items be included in the sales price. Besides appliances, some Akron homes for sale have furnishings or unique items that the buyer feels add to their love of the house. The buyer may ask that the seller pay a portion of the closing costs. These are all open to negotiation, and it will be your option to agree or not. 
  
  
• Estimate closing costs.
  Several fees will be split between the buyer and seller at closing. These include loan processing fees, title insurance costs, property tax, and recording fees. The seller's portion will be deducted from the proceeds when the sale closes. 
  
  
• Cost of vacancy
  If the house is unoccupied while on the market, you must maintain the property in good order, from mowing the lawn to post-weather cleanup. You may also benefit by purchasing a special insurance policy for a vacant house that will protect you from the cost of any vandalism while the house is empty. 
  
  
• Pay off the existing mortgage.
  Your lender will work with your real estate agent and the closing company to provide an accurate pay-off amount so that when you receive the sale's proceeds, your mortgage balance will already be deducted. Your agent will provide you with an estimate of the total amount you will receive. 

As you can see, your real estate agent will play an important role in helping you manage the sale and guiding you through the process. Contact us today to find an experienced professional that you can trust.

Walking your dog yields some great benefits for you as well as your pooch, and the activity has its own week October 1-7 to call attention to its advantages. In addition to being good exercise that helps you both keep your weight in check, walking your pup lets you both socialize. It also helps keep Fido from getting bored and engaging in destructive behaviors.

Dog parks are the perfect spot to walk your dog for a bit and then take him off-leash to romp in a safe area. Our real estate agents suggest visiting the following dog parks in Stark and Summit counties during Walk Your Dog Week and beyond.

• Dick Goddard Dog Park at Ariss Park - 2520 Wise Rd., North Canton, OH 44720
  Located within 80-acre Ariss Park near North Canton homes for sale, Dick Goddard Dog Park has separate areas for large and small dogs. Those over 25 pounds have a 1.3-acre area, and small dogs weighing 25 pounds or less have a half acre of space. You'll also find a nearly two-acre off-leash dog run and water fountains for both of you.
  
  
• Veterans Park Dog Park - 1714 Schneider St. NE, Canton, OH 44721
  Veterans Park Dog Park, located just around the corner from Canton homes for sale, has plenty of shade and lush green grass for both you and your dog, making your visit more comfortable. And if Fido gets overheated or dirty, you can even cool him off or clean him up at one of the park's six dog showers open in spring, summer, and fall. Small dogs under 30 pounds have 1.5 acres to play in, and dogs over 30 have 2.5 acres of their own.
  
  
• Akron Dog Park 499 Memorial Parkway, Akron, OH 44310
  Operated by the non-profit group Better Akron Recreation for Canines, Akron Dog Park was founded in 2004. Located near Akron homes for sale, the park has a separate small dog park for pets who weigh 30 pounds or less. It features fenced-in grass/gravel terrain where dogs can run and play, as well as agility obstacles and play equipment so they can have even more fun. Sit on a bench in the shade and watch your dog romp, and take him to cool off at the seasonal doggie drink station as needed.
  
  
• Portage Lakes State Park - 5031 Manchester Rd., Akron, OH 44319 
  Portage Lakes State Park is a popular destination for sailing, jet skiing, water skiing, and wildlife watching. These activities make the 411-acre park well worth a trip, and if you're a dog owner, it will probably become one of your favorites to visit. It has a dog park that's partially fenced with room for your pooch to frolic, and there's even an unfenced dog swim area to help him cool off or to get more exercise.
  
  
• Keyser Dog Park  - 550 Keyser Pkwy., Cuyahoga Falls, OH 44221
  Earning positive comments on several sites dedicated to helping dog owners find the best parks, Keyser Dog Park gives your pooch plenty of room to romp and play off-leash. The fenced-in park consists of two acres of gentle, rolling space and is conveniently located near Cuyahoga Falls homes for sale. Cool off in the park's shade, and let your dog do the same. A water hydrant is also available.

Contact us if you're in the market for a new home. Our experienced agents can help you find just the right one and will make the transaction as smooth and easy as possible. 

As the leaves begin to turn and the days get colder, it's time to get your home ready for the harsh winter months. If you've recently bought a house, you may be surprised by the amount and intensity of home maintenance activities. Homeownership is a huge investment that requires regular maintenance and care. That said, it can feel like a daunting chore, especially if you're a first-time homebuyer.

As summer draws to a close, here's an end-of-summer homeowner maintenance checklist from our real estate agents that can help you better protect your investment.

Inside Your Home

• Inspect the Air Conditioning
  Check and replace air filters as necessary. Inspect your vents, dryer vents, and baseboard heaters for any built-up dust and clean them. Make sure your thermostat is in tip-top shape. Turn up the heat to ensure your furnace is working properly.
  
  If you have central air, the beginning of autumn is a great time to get your HVAC system serviced. A clean system will be more energy efficient. Moreover, a professional can catch and fix problems when they're still minor, helping you avoid a costly emergency repair down the road.
  
  
• Check Windows and Doors
  Check any openings for drafts and caulk where necessary, as drafts can increase your heating bill by increasing your HVAC system's workload. It may also be a good idea to install storm windows and doors to keep the heat in and the cold out.
  
  
• Home Upgrades and Renovation Projects
  Thinking of adding your home to the North Canton homes for sale listing? The beginning of fall is a great time to get started on home upgrades. The temperature is usually moderate, giving you the freedom to update the bathroom or knock down a wall or two.
  
  
• Touch Up the Paint
  Speaking of home upgrades, there's no better time to give your walls a fresh coat of paint than at the beginning of fall. Temperatures are cooler, which means the paint won't dry too fast like it would during the height of summer. Moreover, fall is warm enough that you can open your windows for longer to bring in fresh air.

Outside the House

• Clean Your Gutters
  Here's a task you should perform ever so often. Removing leaves, twigs, and brambles from your spouting means you won't have to deal with falling icicles come winter.
  
  
• Repair Driveways and Walkways
  Winter rain and snow can cause the cracks in your driveway to widen and deepen. That's why filling any cracks during fall is important to prevent them from eroding any further.
  
  
• Inspect Your Roof and Soffits
  You can probably get away with a visual inspection of your roof if it's just a few years old. However, it's crucial to perform an integrity test once a year. Check your roof for soft spots, replace loose shingles, and maybe get a professional installer to take a look. Any discoloration in your soffits or stains on your ceiling could indicate a leak.

Are You Ready to Buy a House?

It's true that anyone can shop for a house. But it can be an incredibly stressful experience. Experienced real estate agents can match you with the perfect property much faster, taking some of the hassle and stress off your shoulders. Contact us to get a look at our Akron homes for sale.

Fall brings cooler temperatures with a crisp feel to the air, and with the hustle and bustle of school starting back, it's the perfect time to have some family fun on the weekends. Several farms and orchards around Stark county offer loads of activities for the whole family, making them a great place to visit for the day or afternoon.

Our real estate agents recommend checking out the following popular destinations for fall family fun in the area.

1. Maize Valley - 6193 Edison St. NE, Hartville, OH 44632
   Maize Valley is a popular destination for Ohio families seeking fall fun since it offers so much to do. In addition to navigating through an 8-acre corn maze, your family can play trivia with questions hidden throughout the maze. The younger kids can also take an animal train ride, and you can gather the whole family for an old-fashioned wagon ride. Other fun activities include pumpkin cannon demonstrations, a pumpkin jump pad, goat-a-palooza animal area, straw bale mountain, push carts, pedal trikes, Farmagination village, and more. And for a few extra dollars, you can try your luck at finding a sparkling treasure at the gem mine. Maize Valley is just around the corner from Hartville homes for sale.
   
   
2. Kingsway Pumpkin Farm - 1555 Andrews St. NE, Hartville, OH 44632
   If you're looking for a day or afternoon of family-friendly fall fun, head to Kingsway Pumpkin Farm. A general admission ticket gives you access to activities, including the 8-acre corn maze with a butterfly design. You'll also be able to meet farm animals, play in a corn box and straw tunnel, and more. If you're looking for pumpkins to add to your fall decor, take a wagon ride to the patch and pick your pumpkins, which are sold by weight. Make sure to bring your phone or camera along to take photos since you'll find plenty of displays and photo props hand-painted by the owner to create great backdrops.
   
   
3. Nickajack Farms - 2955 Manchester Ave. NW, North Lawrence, OH 44666
   Nickajack Farms has been holding its Pumpkin Days festival for nearly 20 years, adding more activities and games each year. In addition to a corn maze, other activities include taking wagon rides, interacting with barnyard animals, zooming down a 30-foot slide, shooting paintballs at targets, blasting corn from cannons, bowling with pumpkins, and digging in a corn crib filled with 10,000 pounds of corn. You can also take a wagon ride to the pick-your-own pumpkin patch or choose some gourds and squash. Grab some bundled Indian corn and corn stalks to complete your fall look.
   
   
4. Arrowhead Orchard - 11724 Lisbon St. SE, Paris, OH 44669
   Established in 1932, Arrowhead Orchard has grown from a hand-planted orchard to include plenty of fall activities along with crops. Take the kids to tackle the corn maze or take a walk through beautiful sunflowers. You'll all enjoy unlimited hayrides, which could make for a welcome respite after more active pursuits like slides, a zip line, hay mountain, an apple cannon, an obstacle course, tree climb, and more. You can also pick your own pumpkin or cut your own beautiful sunflower bouquet to take home.

Contact us if you love Stark County as much as we do. For nearly 50 years, we've helped customers find homes in the area and would love to help you find one as well! 

How big should your down payment be?

When home prices rise, so do the down payments required to purchase those homes. This has long posed a roadblock for many would-be first-time homebuyers. But it doesn't have to be the case.

Our real estate agents share everything you need to know about making a down payment on a home.

Down Payments: How They Work, How Much to Pay

A down payment is simply the part of the home's purchase price you pay upfront. It might be the biggest check you ever write in your life, and the amount you pay could impact your finances for years, if not decades.

Contrary to conventional wisdom, you don't have to put 20 percent down on a house. There's no law or rule for a universal minimum down payment. The amount you should put down is a personal decision that depends on what's best for your finances. Lenders require homebuyers to make a down payment for most mortgages. For instance, the amount is usually 3% of the home's price for conventional mortgages.

On that note, most lenders will require a down payment of 20 percent to avoid paying private mortgage insurance (PMI)—in case you're wondering where the 20 percent number comes from. Far from most types of insurance, this legally binding document protects the lender's vested interest in the home, not the homeowner.

When you make a down payment of less than 20 percent, your mortgage loan-to-value (LTV) ratio is over 80 percent. As such, you present a higher risk profile to the lender, which necessitates purchasing private mortgage insurance to offset this risk. PMI will increase your monthly mortgage costs until you have accumulated enough equity in the home that the lender no longer considers you high risk. So, there are advantages to making a larger down payment.

Another advantage is lower interest rates. A solid down payment may signify that you're less likely to default on your loan, which may prompt lenders to reduce your mortgage interest rate. Even saving a fraction of a percent on your interest rate could save you thousands of dollars over the life of your loan. Still, your overall interest will depend on factors other than your down payment, such as credit scores, home price, and loan term.

Down Payment Requirements by Loan Type

As mentioned, down payment requirements vary depending on the type of mortgage you qualify for. For instance, if you qualify for government loans, your down payment may be as low as zero.

There are several options for a mortgage with no or low down payment:

1. Veterans Affairs (VA) Loans
   The Department of Veterans Affairs partially guarantees these loans. VA loans typically have low down payment requirements, are more flexible in terms of credit score, and carry lower interest rates than conventional mortgage products. However, you must be a veteran, active-duty service member, member of the National Guard, reserve, or an eligible surviving spouse of a veteran to qualify.
   
   
2. FHA Loans
   Insured by the Federal Housing Association, these loans require a lower minimum down payment than many conventional loans. Many first-time buyers may find FHA loans the more affordable mortgage option.
   
   
3. USDA Loans
   The U.S. Department of Agriculture (USDA) provides zero-down homeownership opportunities to low- and moderate-income Americans. However, you must live or plan to live in an eligible rural area to qualify.

It's important to weigh your mortgage options before committing to a down payment amount. Even though a 20 percent down payment is ideal, you shouldn't fixate on it. The right amount depends on numerous factors, including how much you can comfortably afford. You don't want your down payment to be so large that it leaves you with too little savings.

Ready to Purchase Your First Home?

Our agents have the expertise and years of experience to guide you through the process. Contact us today to view North Canton homes for sale.

While the hot seller's market of the last few months has begun to cool down, there are still many people out there looking for North Canton homes for sale or Akron homes for sale. Today's Ohio homeowners easily benefit from the great interest in the local area and meet qualified buyers.

Our real estate agents know you want to get the most value for your home and finish the sales process as quickly as possible. In fact, it's usually for the best when the sale is complete within 30 days. After the 60-day mark, buyers may wonder if something is wrong with the home.

At 90 days, most homes need to be re-listed, which can add months to your timeline.

How can you avoid these issues? To get the results you want, it's crucial not to go it alone.

Many homeowners have been exploring "FSBO" – for sale by owner, the name given to selling without a real estate agent. They may feel that they'll make more money without paying a commission, but the situation is a little more complex than it looks at first.

Selling without an agent can cost you both time and money. On the other hand, the insights of an experienced agent help you maximize your returns, no matter what the housing market looks like.

Let's dive deeper and see how sellers like you benefit from working with an agent:

• An Agent Attracts More Offers for Your Home
  One of your agent's biggest roles is managing your home's marketing. Agents work hard to publicize your home and keep you in the loop about what's been done on your behalf. They'll lead in developing your listing, open house events, virtual tours, staging, and much more.
  
  
• An Agent Is Your Interface to Buyers
  Any time a home goes on sale, some people will only show up out of curiosity. Your agent helps separate serious and qualified buyers from the rest,  saving dozens of hours you would otherwise spend having conversations that might not go anywhere.
  
  
• An Agent Helps You Price Your Home to Sell
  For the best results, pricing any home needs to be done scientifically. A "priced-to-sell" home is aligned with recent sales of similar homes in the same area. Your agent will do all the research to find a price point that meets your needs while still being enticing enough to draw people to the property.
  
  
• An Agent Helps You Avoid Legal Liabilities
  One detail many buyers and sellers alike aren't aware of is the way an agent protects you from serious paperwork errors. A small oversight in how you describe your home or the forms required for closing can leave you vulnerable to fines, legal problems, and much more.
  
  
• An Agent Helps You Negotiate
  A "bidding war" is the dream scenario for many sellers—it means you have plenty of buyers engaged and interested. But that doesn't mean you simply sit back and watch the sparks fly. Whether you need to consider multiple bids or make a counter-offer, an agent's expertise is invaluable.
  
  
• An Agent Supports You in Informed Decision-Making
  During the selling process, emotions can run high for parties on both sides of the transaction. Your real estate agent is an ally who brings a useful outside perspective to every major question. This has helped countless sellers throughout Ohio make decisions they feel truly confident about.

Contact us at DeHoff Realtors to learn more about your selling opportunities.

Has there ever been a more perfect pair than wine and cheese? Our real estate agents don't think so. North Canton's lush fields and semi-rural layout make it one of the best areas for growing grapes in Ohio, and many top-tier wineries have sprung up in response to these conditions. Get your wine and cheese fix at any of these five spots around North Canton and experience a treat you'll never forget. 

• Maize Valley Winery – 6193 Edison Street NE (St. Rt. 619), Hartville, OH 44632
  Maize Valley Winery is located near our Hartville homes for sale and has been owned and operated by the same family since the 1960s. The establishment produces a wide variety of delectable red and white wines and a few fruit wines made from apples, berries, and other less conventional ingredients. These wines pair perfectly with the Amish meats and cheeses available at their on-site deli.
  
  If you'd prefer to sample your cheese at their full-service restaurant, you can order their Artichoke Asiago Dip alongside a glass of wine. You can also get your cheese fix from cheese-heavy sandwiches like the Maize Valley Melt, a mouthwatering sandwich made from grilled sourdough bread piled high with ham and provolone.
  
  
• 1875 Winery & Restaurant – 109 State Route 44 Hartville, OH 44632
  Named for the year in which the barn that houses the business was built, the 1875 Winery & Restaurant prides itself on handcrafted, small-batch wines. From the High and Tight dry rose to the Down N Dirty sweet red, there's a wine here to suit everyone's tastes. 
  
  Sip your wine in their restaurant alongside one of their charcuterie boards, delightful creations made from an assortment of cheese, sausage, crackers, and bruschetta. Boards can be made gluten-free upon request. More adventurous diners can also try the Fried Cheese Skewers, deliciously savory nuggets served with spicy aioli sauce for dipping. 
  
  
• Forever Craft Urban Winery – 2640 Easton Street NE, Canton, OH 44721
  The Forever Craft Urban Winery is proof that you don't need acres of land to make excellent wine. This small establishment offers everything from a classic dry red merlot to Summer Picnic, a sweet strawberry watermelon white shiraz, all made in-house in small batches. Take a seat at the bar and try one or two of their lovingly crafted creations.
  
  When you're ready to eat, you can order a mouthwatering charcuterie board to nibble on. These boards come in different sizes to serve anywhere from two to 10 people, so you can enjoy yours with a group if you like. Each board comes brimming with an assortment of meats, cheese, fruits, crackers, nuts, and even chocolates for your snacking pleasure.
  
  
• The Crush House at Gervasi Vineyard – 1700 55th Street NE, Canton, OH 44721
  The Gervasi Vineyard is a 55-acre estate near our Canton homes for sale serving red and white wines made from grapes harvested right there in the fields. Each of their fresh, crisp wines is carefully crafted to bring out the rich flavors of these delicate fruits.
  
  At the vineyard's restaurant, The Crush House, you can sample some of these wines while enjoying a premium Italian Meat and Cheese Plate. Those in the mood for something lighter might enjoy their Whipped Lemon Feta Spread on gourmet crackers. For a special treat, try their Provolone Carrozza, an indulgent fried cheese sandwich considered one of the restaurant's specialties. 
  
  
• Dragonfly Winery – 215 Market Street W, Canal Fulton, OH 44614
  The Dragonfly Winery is a quaint establishment near our Canal Fulton homes for sale, serving various handcrafted drinks and aperitifs. Their selection of artisan wines includes boldly named options like Rivers' Edge, Sunflower Sunset Peach Apricot, and Twisted Teacup. 
  
  You can choose from several cheese-based dishes for the cheese part of your wine-and-cheese treat. In addition to their Cheese and Cracker Plates and Meat and Cheese Plates, the restaurant also serves delectable cheese dips that are perfect for savoring. Choose from the Blueberry and Goat Cheese Dip, the Honey Apricot Goat Cheese Spread, or the Caramel Apple Cream Cheese Spread, and enjoy every bite. 

North Canton's delicious wine and cheese options aren't the only thing to love about this place. Contact us today for more information on our North Canton homes for sale and learn how easy it is to settle down in this scenic Ohio area.

The Akron Zoo has been a staple of family fun near Akron homes for sale for decades, with significant expansion since the early 2000s leading to new exhibits, rides for kids, special events, and amenities for visitors to enjoy. Summer is the perfect time to experience a fun, educational family outing to the Akron Zoo, with a busy schedule of special events, summer camps for kids, and many animals to see. Our real estate agents have the key information to help you plan your next family day at the Akron Zoo.

• Get to Know the Animals
  Did you know that the number of animals under the care of the Akron Zoo has increased by 200 percent over the last 15 years? Today, the zoo is home to a diverse collection of animals from both land and sea. The seven categories of animals living at the zoo include mammals, birds, reptiles, amphibians, fish, invertebrates, and even carnivorous plants. There are many rare species to see here, like the Red Panda, Bald Eagle, Sumatran Tiger, Galapagos Tortoise, Giant Pacific Octopus, and South American Sea Nettle, to name just a few.
  
  
• Animal Habitats and Exhibits
  All of the animals at the Akron Zoo are cared for in habitats that mimic what they experience in nature. There are 10 distinct habitats to explore, including the Pride of Africa, Wild Asia, Curious Creatures, Legends of the Wild, Penguin Point, Grizzly Ridge, Komodo Kingdom, and Wild Prairie. Many of the zoo's birds are housed within the large Aviary, while plants and animals can be found within the Lehner Family Zoo Gardens.
  
  
• Unique Experiences at the Akron Zoo
  For families who want a behind-the-scenes look at the Akron Zoo, some great unique experiences are available this summer. The Rise and Shine Safari, offered on mornings from Friday through Monday, is a tour with experienced staff members that allows you to explore the zoo before it opens to the public. You'll learn all about the habitats, discover how the animals are cared for, and participate in unique, interactive experiences with the animals.
  
  The Get Closer Experience is another great option for an up-close experience with creatures like the Galapagos Turtle, goats, and Animal Ambassadors. Get Closer Experiences also include one-on-one time with a zookeeper. All experiences must be scheduled at least two weeks in advance, so plan ahead.
  
  
• Special Events and Camps for Summer Fun
  Summer is a busy time for special events at the zoo, with events for families and some events for adults 21 and older. Popular events include Princess & Pirate Day, Members' Nights, Summer Safari, and Paws & Reflect: Yoga for Conservation. Kids aged 6 through 16 can also be enrolled in the summer ZooCamp, where they'll learn about the zoo, the habitats, and the animals living there through fun, hands-on experiences.
  
  
• Tickets, Parking, and What to Know Before You Visit
  The Akron Zoo is open daily April 1 through October 31 from 10:00 am through 5:00 pm, with limited hours in the winter. Admission is $14 for adults, $12 for seniors, and $11 for kids, with online purchasing available. Parking costs $5 per vehicle when purchased on-site or $3 if you purchase parking online before visiting.

When you're ready to buy or sell your next home near the great family attractions of Akron, our team is here to help. Contact us for assistance with all of your real estate needs in the Akron area.

Can you believe that the Fourth of July is already around the corner? As always, Ohio communities will be pulling out all the stops to celebrate this special day with community events that the whole family can enjoy. Both Akron and North Canton have some holiday events that you won't want to miss. Our real estate agents have all of the details on where to celebrate the Fourth of July in your favorite Ohio communities.

• North Canton Jaycees July Fourth Parade – 605 Fair Oaks Ave. SW., North Canton, OH 44720
  The North Canton Jaycees July Fourth Parade is always a local favorite near North Canton homes for sale, providing the perfect event to kick off your celebration of the big day. You can see the parade on 7th Street, Main, and Harmon starting at 10:30 AM, or catch the end of the parade at North Canton Middle School at the address listed above. The parade features a wide variety of entertainment, from classic cars to dance teams, with an easy sign-up process if you'd like to join the parade with your own local group.
  
  
• North Canton YMCA July 4th Race – 200 S. Main St., North Canton, OH 44720
  Perhaps you'd like to fit in a great workout before digging into all of the goodies at a Fourth of July barbecue and have a great time in the process. This year marks the 44th annual edition of the North Canton YMCA July 4th Race, featuring four great races packed into one morning. The fun starts with the 100-yard Firecracker Dash for young children, followed by the 2-mile run for all ages. The 5-mile wheelchair and 5-mile races kick start shortly after, with routes that wind through North Canton.
  
  
• Akron RubberDucks – 300 S. Main St., Akron, OH 44308
  Summer and baseball go hand-in-hand, so why not celebrate the Fourth of July with a trip to the ballpark? The Akron RubberDucks provide affordable family entertainment near Akron homes for sale all summer long, and the Fourth of July is always one of the biggest nights of the season. Start things off by watching the RubberDucks go toe to toe with the Altoona Curve, and be sure to stick around after the game. Once the final pitch has been thrown, the biggest fireworks show of the year will light up the sky above Canal Park.
  
  
• Rib, White and Blue Festival – 200 S. Main St., Akron, OH 44308
  Start your celebration early with a trip to the Rib, White and Blue Festival in downtown Akron, which kicks off on Friday, July 1 and runs straight through the Fourth of July. Each day of the festival runs from morning through late evening, with great food, live entertainment, and free admission. Each night is highlighted by a free, live concert with tribute bands playing the hits from some of your favorite classic rock artists, including Bruce Springsteen, Queen, and Journey.
  
  
• Akron Fireworks – 200 S. Main St., Akron, OH 44308
  Want to see fireworks but can't make it out to the RubberDucks game? The Akron Fireworks show will be held at the same location as the Rib, White and Blue Festival, starting at 9:45 PM on the Fourth of July. Stake out your spot early for the best views, and get ready for a spectacular show.

When you're ready to buy or sell your next home in these great communities, our team is here to help. Contact us to buy and sell homes throughout the North Canton and Akron areas.

National Chocolate Ice Cream Day is June 7th, and for those of us with a sweet tooth, we can't wait! There are so many wonderful places to grab a delicious cone, sundae, or milkshake in Stark and Summit counties that it's impossible to choose just one. Instead, our real estate agents have put together a list of six favorites.

1. Almost Heaven Ice Cream — 6590 Middlebranch Ave. NE, Canton, OH 44721
   With award-winning chocolate, butter pecan, strawberry, and vanilla ice cream, this lovely little shop near Canton homes for sale is a must-visit. Almost Heaven Ice Cream features more than two dozen ice cream flavors along with sundaes, banana splits, milkshakes, ice cream sandwiches, and so much more. If you want something extra special, order one of their dippy twisters, made with either dairy-free vanilla ice cream or frozen yogurt vanilla mixed with your choice of delicious fruit.
   
   
2. Handel's Homemade Ice Cream — 2191 E. Maple St., North Canton, OH 44720 / 7212 Fulton Dr. NW, Canton, OH 44718
   Baskin Robbins stands aside because your 32 flavors are nothing compared to Handel's Homemade Ice Cream. This popular shop near North Canton homes for sale has been around since 1945 and features more than 100 ice cream flavors, which means there's always something for every person to enjoy. Their high level of quality began with Alice Handel's homemade ice cream that she made using fresh fruit from her backyard garden, and that commitment continues to this day.
   
   
3. Cherry Street Creamery — 136 Cherry St. W, Canal Fulton, OH 44614
   The family-owned Cherry Street Creamery has tons of ice cream flavors, milkshakes, sweet treats, and various food items. Every Monday, they kick off the week by posting a special, freshly made "mustard" flavor on their Facebook page. This wonderful shop near many Canal Fulton homes for sale is open from mid-March to October each year, so be sure to get down there when you get a chance and enjoy one of their tasty offerings while you can.
   
   
4. Mak's Munchies N More — 7232 Portage St. NW, Massillon, OH 44646
   This deli and ice cream shop close to Massillon homes for sale is the perfect place for family and friends to find everything they need for a wonderful lunch or quick snack. In addition to several different flavors of ice cream - including chocolate, of course - you'll find grilled cheese sandwiches, burgers, hot dogs, salads, and many other wonderful treats. Stop by Mak's Munchies N More for a quick bite, and you'll want to return time and time again.
   
   
5. Papa Roni's Pizza & Ice Cream — 68 W. State St., Barberton, OH 44203
   Although it's only been around for a little over 10 years, Papa Roni's Pizza & Ice Cream has made a huge impact in the area. In addition to chocolate, chewy chocolate, chocolate chip cookie dough, and mint chocolate chip, you'll find a variety of ice cream flavors, including their Superman special, a blend of lemon, cherry, and blue raspberry. Pick up a pizza and ice cream for a perfect lunch or dinner.
   
   
6. Taggart's Ice Cream — 1401 Fulton Rd. NW, Canton, OH 44703
   It's hard to believe that this Canton landmark has been around since 1926, but ask any resident and they probably have a story about visiting there as a youngster. Taggart's Ice Cream features wrought-iron ice cream parlor chairs, high-backed booths, and wood/tile floors that harken back to the classic soda fountain days. Not only will you get a taste of nostalgia, but you can dig into burgers, hot dogs, soups, chicken strips, and several other food favorites.

Contact us to view homes for sale in Stark and Summit counties. We can help you find your new dream home!

Color is the easiest way to inject your personality into any North Canton home for sale. Interior painting can be a messy project, but there are some tricks get the job done quicker and cleaner. Explore the top interior painting tips from our real estate agents below.

• Take Time to Pick Your Colors
  You have limitless color choices to choose from for your project. Lighter options make rooms feel spacious and airy, while bolder hues re-energize the décor. You can mix bold and lighter colors to create contrast and highlight accent pieces, art, and other accessories.
  
  Keep in mind that interior colors look different at various times of the day as natural and artificial lighting changes. So, prop poster boards with different colors choices against your walls to pick the right hues.
  
  
• Buy High-Quality Painting Supplies
  High-quality roller covers and brushes offer excellent coverage, while good painter's tape is your best bet in sealing out drips and blurs. If you use cheap brushes, you will likely see bristles falling into the paint, and the result will look shoddy. High-quality paint is also vital for a smooth finish.
  
  
• Prep Work Is Essential
  Before you paint a room, remove any obstructions that prevent you from moving around freely. For example, move large living room furniture to the center and protect them with drop cloths. Empty each room you will be painting as much as possible for an easier process.
  
  The next step is removing any hardware from the walls, such as curtain rods, switch plates, outlet covers, pictures, and hooks for towels. Then, thoroughly clean the walls as paint easily peels off dirty and oily surfaces. Fill in cracks and holes and sand the surface to create a smooth working area.
  
  
• Apply Primer
  You get a blotchy finish if you paint directly over the patched sections. This occurs because the joint compound used to fill in holes on the walls absorbs the paint's moisture, resulting in a dull and flat look. Also, these spots appear significantly different from the rest of the wall.
  
  So, prime the wall to get a smooth finish. Most professionals tint white primer with a little gray hue or the finish paint color. Using tinted primer results in a more vibrant finish, and you will likely need fewer coats to get the desired look.
  
  
• Combine Paint Gallons
  Disparities in color occur from one can to the next, and the difference may be apparent if you open a new container as you paint a wall. So, estimate the quantity of paint you require and pour it into a 5-gallon bucket. Then, stir the entire batch to ensure uniformity.
  
  
• Paint the Trim, Ceiling, and Walls in Order
  Taping off the trim is easier than taping off the wall, so professionals start painting the trim and then the ceiling. Don't worry about perfection as you paint the trim, as you can cover spilled paint when you paint the walls. Also, sand the trim between coats to get a smooth texture.
  
  You may be tempted to cut in all the room corners before going back to roll the paint for an easier time. However, this method leads to a blotchy finish. Professionals achieve a seamless finish in Akron homes for sale by cutting in one wall and quickly rolling on the paint to prevent the cut-in sections from drying out.
  
  
• Protect the Floor With Canvas Drop Cloths
  Old bed sheets and plastic drop cloths do little to prevent paint splatters from seeping into the floor. Instead, use thick canvas drop cloths as they stay in place and are sufficiently durable to last a lifetime. Clean spills with cloth rags and paper towels as soon as they occur.

Your new home is a color away from being the perfect haven. Contact us today to explore our real estate services.

As the weather warms up, it's the perfect time to head out on a family bike ride. Stark County has plenty of excellent parks with trails that cover forested areas, urban locations, and suburban sites.

Our real estate agents recommend the following trails in Stark County when you're ready to spend part of your day taking a family bike ride in area parks.

• Quail Hollow Park - 13480 Congress Lake Ave., Hartville, OH 44632
  Quail Hollow Park has over 700 acres of rolling meadows, marshes, and wooded areas, plus a 40-room house that's available for tours when you're ready to take a break from biking. Located near Hartville homes for sale, it's a popular destination for mountain bikers since it has a 3.3-mile mountain bike loop trail that's suitable for beginning or intermediate riders. It's a nicely wooded trail with very little slope or rocks and is marked with arrows to show you which direction to go.
  
  
• Stark Electric Railway Trail - Mahoning Road NE, Canton, OH 44705
  If you'd like a ride on an urban trail, head to the Stark Electric Railway Trail, which follows the route of the former rail line of the same name. The line ran from 1902 to 1939, linking Canton and Salem via Louisville, Alliance, and Sebring before closing due to the growing popularity of buses, which were cheaper to operate. The trail, which is located near Canton homes for sale, is a little over one mile in length and is lined with ginkgo, honey locust, and other varieties of trees.
  
  
• Congressman Ralph Regula Towpath Trail Park - 7975 Erie Ave. NW, Canal Fulton 44614
  With 14 trailheads, the Congressman Ralph Regula Towpath Trail Park, located just around the corner from Canal Fulton homes for sale, has plenty of spots where you can start a family bike ride. The entire trail is 26 miles long and is on flat terrain, with trees providing plenty of shade. The trail follows the historic route of the Ohio & Erie Canal, and you'll be able to still see the canal bed visible in many areas. If you bike in the Canal Fulton area, you'll find that the canal has been preserved, and you can ride a replica canal boat during the spring and summer.
  
  
• Pioneer Trail - 2600 Harvard Ave. NW, Canton, OH 44709 
  Pioneer Trail is a short 1.34-mile route that connects Market Avenue to Cleveland Avenue near Canton homes for sale. It has several inclines and declines, as well as a surface of crushed limestone. Part of the trail takes you through Harvard Park and its grassy fields and then Weis Park, which has volleyball and shuffleboard courts if you'd like to take time out to play.
  
  
• Hoover Trail - Hoover Community Recreational Complex, 1325 E. Maple St., North Canton, OH 44720
  A suburban trail that's almost 5.5 miles long and situated near North Canton homes for sale, Hoover Trail connects Washington Square, Walsh University's Hoover Park, North Canton's baseball fields, Hoover High School, and the Hoover District. It's part of the planned Ohio to Erie Trail, a route intended to span from Cleveland to Cincinnati. You may be able to spot wildlife such as hawks and other types of birds, foxes, groundhogs, and more. You'll also see wildflower and berry bushes along the way. One of the trail's interesting features is a bridge for biking and walking that spans over the Old 3C Highway.

Contact us if you'd like to see homes for sale in Stark County. Many are close to beautiful parks and trails, and we'd love to help you find the best one for you. 

Spring is here and spending time outdoors tops the list of things to do. Some people look forward to hiking their favorite trails or picnics in the park, while others enjoy relaxing in their backyard. If you prefer the comforts of home, our real estate agents recommend sprucing up your backyard with some beautiful patio plants.

Backyard patios and decks are ideal for potted plants. In Akron homes for sale, you can change out flowering plants to extend spring blooms well into the fall season. When temperatures start to drop, replace blooms with hardy greenery that will survive winter weather. To create a beautiful patio year-round, all you need is the right plants and decorative containers.

Choosing the Right Patio Plants

When choosing patio plants, consider how much maintenance they require. Some plants require daily watering, regular trimming, and deadheading of spent flowers to encourage more blooms. Before investing in plants, make sure they are suited to your gardening needs. Some easy-care patio plants to consider include:

• Geraniums – These cheerful annuals come in a variety of vibrant colors that will add beauty to your patio. Geraniums last all summer and into early fall, even if you forget to water them for several days.

• Lantana – This flower can be invasive in the garden, but it's easy to contain in pots. Lantana is a hardy plant that's hard to kill. It grows well in the sun and produces blooms with pretty multicolored flowers.

• Marigolds – A big pot of marigolds will add color to your patio. Marigolds are easy to maintain and repel insects that may get on other plants, but they require deadheading to produce new blooms.

• Ferns – In North Canton homes for sale with shady backyards, ferns are a great choice since they thrive in the shade. You'll find a variety of ferns that range in size, texture, and color for stunning visual interest.

• Caladiums – Another shade lover, these plants produce colorful heart-shaped leaves. As tubers, they spread nicely and are mostly carefree. They don't have showy flowers but definitely brighten up shady spots.

• Herbs – If you have a sunny patio, herbs planted in pots will thrive. Basil, lavender, mint, oregano, rosemary, sage, and thyme grow well with sun and regular watering. Enjoy wonderful smells and use the herbs in your kitchen.

• Vines – Potato vine (jasmine nightshade) is an easy vine to grow without much maintenance. It's often used as a patio plant because it produces pretty little white or purple flowers that add soft, relaxing color to an outdoor setting.

Choosing Containers

For healthy patio plants, it's important to choose the right size containers with adequate drainage. According to garden experts, plants in pots dry out more quickly, so they need adequate water and good potting soil. Water should be checked daily, and potting soil should be good quality organic potting soil with an organic compost mixed into the soil.

When purchasing containers, make sure pots have ample room for plant growth. Consider the container's size and height on your patio so you don't block views of the backyard. Large pots are good for marking patio boundaries, delineating different patio areas, and providing privacy, but they are hard to move around. Small decorative pots with bright colors and interesting textures make good accents on patios that need a boost in design appeal, and they're very easy to move around.

If you're thinking about buying or selling a home in Stark and Summit counties, contact us for information on available properties and prices in areas of interest.

If you're treating yourself to lunch out, don't just grab something unhealthy from the drive-thru at a chain restaurant. Take time to refuel at one of North Canton's many eateries that put their own delicious spin on healthy lunches. You'll have plenty of menu options to choose from and will be able to have a healthy, relaxing break before moving on to the rest of your day.

Our real estate agents suggest eating at the following healthy lunch stops around North Canton.

• BAM! Healthy Cuisine - 2185 E. Maple St., North Canton, OH 44718 and 7160 Fulton Dr. NW, Canton, OH 44718
  BAM! Healthy Cuisine aims to combine nutritious with delicious by making everything served as fresh as possible. The lettuce, for example, is grown in Ohio and cut by hand. Nothing is from a bag, and tortillas are made in-house. The restaurant has the salads and power bowls that you might expect to see on a healthy menu, but you'll also find pizza, wraps, and sandwiches that taste great while being made with healthy ingredients. And if you're in the mood for something sweet, grab a guilt-free treat from the cooler.
  
  
• Thatsa Wrapp Shack - 7944 Cleveland Ave. NW, North Canton, OH 44720
  Thatsa Wrapp Shack specializes in inventive wraps and salads prepared fresh in-house daily. They're also known for their specialty housemade chips and desserts. Try the Cherry Almond Wrapp, loaded with grilled chicken, mozzarella, lettuce, red onion, dried cherries, almonds, and balsamic vinaigrette. Or, if you're in the mood for a salad, go for the To The Chopper, which has garbanzo beans, cucumber, red onion, feta, tomato, red pepper, and lemon caper dressing. And if you're a vegetarian, you'll also find several meatless options on the menu.
  
  
• Aladdin's Eatery - 6698 Strip Ave. NW, North Canton, OH 44720
  At Aladdin's Eatery, Lebanese-American foods take center stage. This cuisine, in addition to being flavorful, is quite healthy. Staples of Lebanese food include olive oil, nuts, vegetables, and lean meats, and instead of heavy, unhealthy sauces, herbs and spices are used to enhance the flavor of food. Dishes are free from sulfites and preservatives and fit in well with several different eating plans. Over 40 dishes are vegetarian, 30 are vegan, and 40 are gluten-free, so if you have specific dietary needs, you'll have plenty of dishes to choose from. Start with a delicious appetizer like falafel or hummus before selecting an entree like pita pizzas. And don't forget to treat yourself to a refreshing option from a variety of healthy smoothies, raw juices, and natural herbal teas.
  
  
• Twisted Citrus - 1649 N. Main St., North Canton, OH 44720
  You'll be able to enjoy breakfast and lunch dishes on the menu at Twisted Citrus, a colorfully decorated daytime eatery that, true to its name, serves dishes with a twist. Try a Southwest BBQ Salad for lunch, with your choice of grilled chicken or fried veggie nuggets diced and tossed in BBQ sauce. It's served over a tasty bed of iceberg mix, red peppers, tomatoes, fire-roasted corn, black beans, and diced avocado and topped with the restaurant's housemade jalapeno vinaigrette. You can also build your own chicken sandwich or burger, including a Beyond Burger that's vegan and plant-based.

If you're ready to start looking at North Canton homes for sale, contact us today. Our agents have years of experience and are dedicated to making your real estate transaction a smooth one. 

It's always lovely when schedules line up perfectly. But, the reality is that when it comes to real estate transactions, there's likely to be a slight lag between the day you buy the home and the day you can move in. You may sell your home before you find a new home, may need to wait until the seller can move into their new home, or wait while the renovation company completes any necessary repairs or upgrades. Or, you may want to wait until you find the best deal on a house that fits within your budget. Our real estate agents know there are plenty of reasons you may need to rent a home, and we advise all clients to carefully think over the possibility of living in a short-term rental before moving into their new home.

• Hot Markets May Cool Off
  One of the biggest reasons homeowners sell their homes and rent is that the real estate market is still red hot. While prices for North Canton homes for sale are cooling down and stabilizing, they aren't dropping. Many homeowners who sold their homes made tidy profits and have chosen to invest those profits and rent until housing cools down. The market may cool, and prices could fall in the next couple of years. But rent could go up as rental properties become scarce. This means that any savings gained could easily be lost in the form of increased rental costs.
  
  
• Watch Out for Mortgage Rates
  Inflation is going up, far above anything the country has seen since the early 1980s. This means that the Fed is strongly considering raising interest rates to throw some water on the fire before it burns through everyone's savings. Interest rates will likely rise this year, which means that waiting to buy a home could end up costing you more in the long run.
  
  
• Sellers and Landlords Have the Upper Hand
  It's a seller's market right now, and many homes continue to sell well above the listing price. At the same time, rental inventories are down, and eviction moratoriums have come to an end across most of the country. This means that landlords can command premium prices for rental property. They can also require tenants to sign long-term leases and easily walk away from short-term options. As a result, if you plan to rent, you may end up renting for longer than you want. Thus, if you do intend to keep your eye on Akron homes for sale, we recommend signing a lease that gives you the option of subletting the property so that you can move out and minimize your losses when you find the home you want.

We invite you to contact us to learn more about the best strategy for your specific situation. We're happy to answer your questions and help guide you in the right direction to move into your new home at a time and price that's most convenient for you.

You've just purchased a new home from among North Canton homes for sale, and you're undoubtedly eager to pick out curtains, paint colors, and new furniture. But first, you should be aware of potential problems and how to avoid or at least prepare for them. Our real estate agents share how you can be ready for the following issues.

• Plumbing Problems
  Clogged pipes, burst pipes, and leaky pipes can cause significant damage to your home and property. This is why we strongly recommend a comprehensive plumbing inspection and maintenance visit with a certified plumber before you move in. This creates a thorough assessment of the plumbing and establishes a relationship with a plumber you can call should a plumbing problem emerge down the road.

• Electrical Problems
  If you purchase any of the many older Akron homes for sale, be sure to complete a comprehensive electrical inspection. Wiring and fixtures wear out over time, and you'll want to confirm the systems in your home are in good repair. You will also want to make sure that you have good candles, flashlights, batteries, and better still, a backup power generator for an electrical outage. Generators are ideal because they can ensure your lights, security systems, refrigerator, freezer, etc., continue to operate until the power is restored.

• Fire Hazards
  Fire safety is always a top priority. Ensure that your home has fire alarms in the bedrooms, kitchen, garage, laundry room, and hallways. Additionally, it's a good idea to position an ABC fire extinguisher in each of these areas. Finally, be sure to change your batteries at regular intervals, conduct fire drills with your family, and recharge your fire extinguishers when they expire.

• Roof Problems
  Make sure that you have extra roofing materials, tarps, nails, and a few pieces of plywood handy. Should a storm blow shingles off or a windstorm knock a tree branch through the roof, this will help you temporarily repair the damage until a professional roofing contractor can perform a permanent repair. 

• Furnace Failure/Water Heater Failure
  Your furnace and water heater are the hardest-working appliances in your home. Most furnaces last 12-15 years, while most water heaters last between 10-12 years. Make sure to keep (and change) air filters regularly, stay on top of the manufacturer's maintenance requirements, and it won't hurt to enroll in a maintenance plan provided by a local, trusted HVAC service provider. 

• Security Problems
  Security is a priority you can't ignore. Installing a home security system with remote monitoring capabilities will help you keep an eye on the home while you're away. It's also a good idea to install at least one smart lock on the home so that you can access it via a code or through your smartphone to get inside even if a member of your family loses their key.

• Cold Weather and Pests
  Freezing weather, raccoons, birds, insects, and other pests can infiltrate your home via cracks in masonry, gaps in insulation, or open crawl spaces. Sealing these gaps with caulk, weather stripping, insulation, etc., will protect your home from the weather and from pests eager to enjoy a free meal and a new nest. 

We encourage you to contact us to learn more about the steps we recommend new homeowners take to protect their homes from the most common threats and hazards.  

Planning a wedding is both exciting and a big undertaking. If you're waiting for the perfect time to get started, then we have some good news. March 1 is National Wedding Planning Day! This is a great opportunity to start wedding dress shopping if you're newly engaged. Our real estate agents have some awesome bridal shops to recommend around Stark and Summit counties. 

• Abbot's Bridal: 1280 S. Main St., North Canton, OH 44720
  If you're looking at North Canton homes for sale, then Abbot's Bridal is a convenient place to stop while you're in the area. They are a full-service bridal boutique, offering dresses from several designers, along with alteration services. Shoppers can find dresses in a wide range of prices as well as sizes. Abbot's Bridal requires appointments on Saturdays. They're open for walk-ins on Monday - Friday, although appointments are still recommended for the best service.
  
  
• Elyse's Boutique Bridal & Prom: 767 E. Turkeyfoot Lake Rd., Akron, OH 44319
  Elyse's Boutique Bridal & Prom is a good place to start your dress search if you're looking at Akron homes for sale. They offer a wide range of gowns for immediate purchase, so you don't need to wait months for a dress to be custom-made. They carry sizes 0-18 in-store. Designers include DaVinci Bridal, Mary's Bridal, and Richard Designs. Elyse's Boutique often has discounted sample dresses available, too. They're open Monday - Saturday, and you must schedule an appointment beforehand. 
  
  
• The Flawless Bride: 90 Shiawassee Ave., Fairlawn, OH 44333
  The Flawless Bride is a plus-size bridal boutique offering sizes 16-32+. Many Fairlawn homes for sale are just minutes away, making this a convenient place to stop. Their consultants will help you find a dress that helps you feel beautiful, confident, and 100% yourself. Consultations last about an hour and are available by appointment only. At The Flawless Bride, consultants can also help you find the perfect shoes and accessories. All dresses are made to order and can take 4-6 months to ship from the designer, so plan ahead. 
  
  
• KR Bridal and Tailoring: 2044 Front St., Cuyahoga Falls, OH 44221
  KR Bridal and Tailoring is a modern bridal boutique that also carries mother of the bride dresses, bridesmaid dresses, and less-traditional wedding dresses. If you're looking for something edgy, Bohemian, or truly contemporary, this is the place to go. You can book a Bridal Consultation Appointment online at KR Bridal's website. They offer gowns at a wide range of price points and also in-house alterations. Make sure you stop to look at some Cuyahoga Falls homes for sale when you're in the area, too.
  
  
• David's Bridal: 3265 W. Market St., Suite 296B, Fairlawn, OH 44333
  David's Bridal is a bridal store located on the first floor of the Summit Mall. With various locations across the country, they can offer a wide selection of bridal and bridesmaid dresses at affordable prices. They do alterations in-house, and they have a good selection of cocktail-style and shorter wedding dresses. David's Bridal does allow walk-ins to browse the dress and accessory options, but if you want to try on dresses, you'll need to book an appointment ahead of time. 

You may not get all of your wedding dress shopping done on National Wedding Planning Day, but you can still get out there and get started. Visit some of the shops above, and get a better idea of what you're looking for in a dress. Should you happen to be looking for a home in the area, too, contact us to learn more about our services.

Since ancient times, wine has been a significant element in religious and social traditions for cultures around the world. Join our real estate agents in celebrating National Drink Wine Day on Friday, February 18 with a toast at one of these popular wine bars near North Canton homes for sale. 

• Vinoteca Wine Bar - 4921 Hills and Dales Rd., Canton, OH 44708
  Vinoteca Wine Bar is just down the street from Canton homes for sale, but the sophisticated yet comfortable ambiance is truly a result of global influence. Husband-and-wife owners Sash and Rekha Parbhoo are from Johannesburg, South Africa, and Birmingham, England, respectively. On most nights, Sash and Rekha themselves will make recommendations and pour samples for you. Vinoteca has no on-site kitchen, but deliveries from neighboring restaurants are welcome. Hours are noon - 6 p.m. Tuesday and Wednesday, noon - 9:30 p.m. Thursday, and 11:30 a.m. - 11:30 p.m. Friday and Saturday.
  
  
• The Crush House - 1700 55th St. NE, Canton, OH 44721
  No need to trek out to the countryside to visit a first-rate winery. The Crush House is part of Gervasi Vineyard, a stunning 55-acre winery resort only 10 minutes from downtown Canton. Located in a contemporary industrial-chic building, The Crush House is an award-winning wine bar where you can sample, drink, and take home Gervasi products. As if that wasn't enough, The Crush House serves a full menu of Italian-influenced cuisine such as crostatas, goat cheese ravioli, and grilled chicken piadas. The Crush House is open Monday through Thursday from 11:30 a.m. - 9 p.m. and Friday and Saturday from 11:30 a.m. - 10 p.m.
  
  
• Grapes in a Glass - 575 Market Ave. N., Canton, OH 44702
  With a name like Grapes in a Glass, you know exactly what to expect at this upscale wine bar. Sommeliers hand-select the more than 70 wines offered by the glass or in wine flights, so you can indulge in your favorite or try a new variety. The menu of small plates, such as charcuterie boards and shrimp tacos, makes the perfect accompaniment. Test your performing chops on Thursday open mic nights, or sit back and enjoy the live music on weekends. Bring Fido along for a visit on the outdoor patio. Hours are 4 - 10 p.m. Thursday and 4 p.m. - midnight Friday and Saturday. 
  
  
• Huth & Harris Wine Merchants - 427 Tuscarawas St. E., Canton, OH 44702
  Planning a date night or celebration? The elegance and first-class service at Huth & Harris Wine Merchants make every event a special one. H2 provides a fine dining menu to go with their outstanding selection of wine. Make the night complete by purchasing a bottle of your favorite to take home. Doors open at 5 p.m. Thursday through Saturday, and reservations are required.
   
• The Barrel Room - 7901 Cleveland Ave. NW, North Canton, OH 44720
  In 2012, Keri Sullivan made some extra money picking up one shift a week as a server at The Barrel Room. By 2014, Keri had grown to love the place so much that she joined a partnership to buy it, becoming sole owner the following year. While wine is still the main focus, Keri has expanded the offerings to include craft beer and high-end spirits. Food includes a menu of light snacks along with a rotating line-up of food trucks. Hours are 4 - 11 p.m. Tuesday, 4 p.m. - midnight Wednesday and Thursday, 3 p.m. - 1 a.m. Friday, and 4 p.m. - 1 a.m. Saturday.

Ready to celebrate buying or selling a home in North Canton? Contact us at DeHOFF REALTORS® to learn more.

Are you into music? Whether your child is learning to play a musical instrument, you're a dedicated musician yourself, or you simply love to listen, North Canton has a nice variety of music shops you'll want to visit.

Our real estate agents recommend the following music shops around North Canton.

Stark County

• Pellegrino Music & Lesson Center - 5040 Everhard Rd. NW, Canton, OH 44718
  Located in the Belden Village area near North Canton homes for sale, Pellegrino Music & Lesson Center has served the area's music needs for 51 years. The family-owned and operated business offers nearly everything related to music, including the sale and rental of music instruments, music lessons, sheet music, and sound system design and installation. The shop also repairs musical instruments and prides itself on top-level quality and service.
  
  
• Gattuso's Music & More - 1300 Market Ave. N., Canton, OH 44714
  Gattuso's Music & More has earned a loyal following after 80 years in business, providing high-quality new, used, and vintage musical gear as well as rentals. They'll meet or beat any price, and since the store is staffed by knowledgeable musicians, you'll get the help and advice you need. And if your band needs some online exposure, the store has a stage available for live streaming. They'll handle the tech, so you need only provide the show.
  
  
• The Music Farm - 4900 Whipple Ave. NW, Canton, OH 44718  
  The Music Farm is an interesting name for a store, and it's meant to reflect the shop's mission of helping customers grow their passion for music. Order online if you'd like, or come into the store, located just around the corner from Canton homes for sale, and choose from a wide variety of products ranging from vintage folk instruments to new professional audio equipment. With over 80 years of combined experience, their helpful staff will ensure you get the right instrument.

Summit County

• Time Traveler Records - 118 W. Market St., Akron, OH 44303
  Despite competition from internet stores, online auction sites, and streaming services, Time Traveler Records in downtown Akron has continued to survive and even thrive. In fact, it's one of the oldest original record stores in the country and has grown to attract customers from throughout the U.S. If vinyl's your thing, you'll find a massive amount of used as well as new. If you love CDs, you'll be able to choose from thousands of new, used, vintage, rare, and out-of-print discs.
  
  
• Replay Music - 636 Canton Rd., Akron, OH 44312
  Replay Music is a popular destination if you're looking to find musical instruments and accessories as well as lighting and PA systems. You can also take vocal and instrumental lessons through the shop and even start training to become a recording engineer. Primetime Studio, Replay Music's recording studio, is professionally designed and acoustically tuned and is conveniently located next door to the store and just around the corner from Akron homes for sale. 
  
  
• A Max Music - 1084 E. Tallmadge Ave., Akron, OH 44310  
  A fixture in the Akron business and music community for 75 years, A Max Music has musical instruments and equipment of all kinds. New and used products are available, and they're backed by a free warranty. If you need help, many staff members have degrees in music and/or professional music and sound experience. In addition to more commonly found instruments, the shop also has ukuleles, banjos, mandolins, and harps for sale. 

Contact us if you're ready to buy or sell real estate. Our experienced and knowledgeable agents are happy to help you have a smooth transaction. 

Our real estate agents know it's never too early to get your home ready for market. If your plans for 2022 include moving to a new home in the spring, now is the right time to put a plan together so that your home is ready to go when you're ready to make your move. You can take the following steps now to ensure the process isn't overwhelming later.

• Go Easy On the Cosmetic Upgrades
  It's a seller's market, so you don't have to spend a lot of money to attract an offer. While you can still paint the walls of the main living areas and bedrooms a neutral color, you can skip the installation of pricey appliances, new windows, etc.

• ...But Clean Thoroughly
  While you don't have to undertake any major renovations, you will want to give the home a professional cleaning. Have the carpets steam cleaned, scrub bathrooms and kitchens, clean out the garage, and make sure the windows are crystal clear. It's also a good idea to make sure the air within the home is regularly refreshed.

• Start Packing Up Personal Items
  Before you paint, pack up any family pictures and bric-a-brac cluttering your home. This will declutter the home and help personalize it, making it easier for prospective buyers to imagine their photos and artwork on the walls. Further, declutter the closets, basement, garage, etc., by removing their contents and placing them in your new home or a self-storage facility. This has the added benefit of helping buyers get a true feel for how much storage space is in the home.

• Keep An Active Eye On Property You Want to Purchase
  Start looking at new homes well before you are ready to list your home. If you are financially able to purchase a home you are interested in before your current home sells, do so. This will help ease some pressure and give you the flexibility to wait for the best offer.

• Price Your Home Strategically
  The more time you spend looking at listings in the area, the better feel you will have for what your home is worth. Keep a close eye on similar North Canton homes for sale and Akron homes for sale. This will help you price your home to align with buyer expectations and current market conditions. Your real estate agent will also be invaluable in helping to set the right price for your home.

• Limit Access
  Supply is low, and demand is high. By limiting showings and availability to view the home, you will create a sense of exclusivity to your home. Like fine wines and fancy purses, the more exclusive the home feels, the more interested buyers will be to own it.

• Prepare For a Bidding War
  Current market activity means that you will likely receive multiple offers shortly after listing your home. Work closely with your real estate agent to map out a strategy for navigating a bidding war. Be sure to factor in price, prequalification, down payment, contingencies, concessions, etc. The more planning you put into this, the more likely you will secure the most advantageous offer.

Contact us when you are ready to prepare your home for the market. We will help guide you through the process and help you secure the best offer for your home.

Is Now a Good Time to Buy or Sell Real Estate?

Traditionally, spring is one of the busiest times of the year for real estate. However, the coronavirus outbreak—and subsequent stay-at-home orders—led many buyers and sellers to put their moving plans on hold. In April, new listings fell nearly 45%, and sales volume fell 15% compared to last year.¹

Fortunately, as restrictions have eased, we've seen an uptick in market activity. And economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.²

But given safety concerns and the current economic climate, is it prudent to jump back into the real estate market?

Before you decide, it's important to consider where the housing market is headed, how it could impact your timeline and ability to buy a home, and your own individual needs and circumstances.

WHAT'S AHEAD FOR THE HOUSING MARKET?

The economic aftermath of the coronavirus outbreak has been severe. We've seen record  unemployment numbers, and economists believe the country is headed toward a recession. But people still need a place to live. So what effect will these factors have on the housing market?

Home Values Projected to Remain Stable

Many Americans recall our last recession and assume we will see another drop in home values. But the 2008 real estate market crash was the cause—not the result—of that downturn. In fact, ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that home prices actually went up in most cases. Only twice (in 1990 and 2008) did prices fall, and in 1990 it was by less than one percent.³

Many economists expect home values to remain relatively steady this time around. And so far, that's been the case. As of mid-May, the median listing price in the U.S. was up 1.4% from the same period last year.⁴

Demand for Homes Will Exceed Available Supply

There's been a shortage of affordable homes on the market for years, and the pandemic has further hindered supply. In addition to sellers pulling back, new home starts fell 22% in March.⁵ In fact, Fannie Mae doesn't foresee a return to pre-pandemic construction levels before the end of 2021.⁶

This supply shortage is expected to prop up home prices, despite recessionary pressures. Fannie Mae and the National Association of Realtors predict housing prices will rise slightly this year⁷, while Zillow expects them to fall between 2-3%.⁸ Still, that would be a far cry from the double-digit declines that occurred during the last recession.⁹

Government Intervention Will Help Stabilize the Market

Policymakers have been quick to pass legislation aimed at preventing a surge in foreclosures like we saw in 2008. The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress gives government-backed mortgage holders who were impacted by the pandemic up to a year of reduced or delayed payments.¹⁰

The Federal Reserve has also taken measures to help stabilize the housing market, lower borrowing costs, and inject liquidity into the mortgage industry. These steps have led to record-low mortgage rates that should help drive buyer demand and make homeownership more affordable for millions of Americans.¹¹

HOW HAS THE REAL ESTATE PROCESS CHANGED?

As the pandemic hit, real estate and mortgage professionals across the country revised their processes to adapt to shifting safety standards and economic realities. While these new ways of conducting business may seem strange at first, keep in mind, military clients, international buyers, and others have utilized many of these methods to buy and sell homes for years.

New Safety Procedures

The safety of our clients and our team members is our top priority. That's why we've developed a process for buyers and sellers that utilizes technology to minimize personal contact.

For our listings, we're holding online open houses, offering virtual viewings, and conducting walk-through video tours. We're also using video chat to qualify interested buyers before we book in-person showings. This enables us to promote your property to a broad audience while limiting physical foot traffic to only serious buyers.

Likewise, our buyer clients can view properties online and take virtual video tours to minimize the number of homes they step inside. Ready to visit a property in person? We can decrease surface contact by asking the seller to turn on all the lights and open doors and cabinets before your scheduled showing.

The majority of our "paperwork" is also digital. In fact, many of the legal and financial documents involved in buying and selling a home went online years ago. You can safely view and eSign contracts from your smartphone or computer.

Longer Timelines and Higher Mortgage Standards

The real estate process is taking a little longer these days. Both buyers and sellers are more cautious when it comes to viewing and showing homes. And with fewer house hunters and less available inventory, it can take more time to match a buyer with the right property.

In a recent survey, 67% of Realtors also reported delays in the closing process. The top reasons were financing and buyer job loss, but appraisals and home inspections are also taking more time due to shifting safety protocol.¹²

Securing a mortgage may take longer, too. With forbearance requests rising, lenders are getting increasingly conservative when it comes to issuing new loans. Many are raising their standards—requiring higher credit scores and larger down payments. Prepare for greater scrutiny, and build in some extra time to shop around.¹³

IS IT THE RIGHT TIME FOR ME TO MAKE A MOVE?

The reality is, there's no "one size fits all" answer as to whether it's a good time to buy or sell a home because everyone's circumstances are unique. But now that you know the state of the market and what you can expect as you shop for real estate, consider the following questions:

Why do you want or need to move?

It's important to consider why you want to move and if your needs may shift over the next year. For example, if you need a larger home for your growing family, your space constraints aren't likely to go away. In fact, they could be amplified as you spend more time at home.

However, if you're planning a move to be closer to your office, consider whether your commute could change. Some companies are rethinking their office dynamics and may encourage their employees to work remotely on a permanent basis.

How urgently do you need to complete your move?

If you have a new baby on the way or want to be settled before schools open in the fall, we recommend that you begin aggressively searching as soon as possible. With fewer homes on the market and a lengthier closing process, it's taking longer than usual for clients to find and purchase a home.

However, if your timeline is flexible, you may be well-positioned to score a deal. We're seeing more highly-incentivized sellers who are willing to negotiate on terms and price. Talk to us about setting up a search so we can keep an eye out for any bargains that pop up. And get pre-qualified for a mortgage now so you'll be ready to act quickly.

If you're eager to sell this year, now is the time to begin prepping your home for the market. A second wave of infections is predicted for the winter, which could mean another lockdown.¹⁴ If you wait, you might miss your window of opportunity.

How long do you plan to stay in your new home?

The U.S. real estate market has enjoyed steady appreciation since 2012, which made it fairly easy for owners and investors to buy and sell properties for a profit in a short period of time. However, with home values expected to remain relatively flat over the next year, your best bet is to buy a home you can envision yourself keeping for several years. Fortunately, at today's rock-bottom mortgage rates, you can lock in a low interest rate and start building equity right away.

Can you meet today's higher standards for securing a mortgage?

Mortgage lenders are tightening their standards in response to the growing number of mortgage forbearance requests. Many have raised their minimum credit score and downpayment requirements for applicants. Even if you've been pre-qualified in the past, you should contact your lender to find out if you meet their new, more stringent standards.

Is your income stable?

If there's a good chance you could lose your job, you may be better off waiting to buy a home. The exception would be if you're planning to downsize. Moving to a less expensive home could allow you to tap into your home equity or cut down on your monthly expenses.

WHEN YOU'RE READY TO MOVE—WE'RE READY TO HELP

While uncertain market conditions may give pause to some buyers and sellers, they can actually present an opportunity for those who are willing, able, and motivated to make a move.

Your average spring season would be flooded with real estate activity. But right now, only motivated players are out in the market. That means that if you're looking to buy, you're in a better position to negotiate a great price. And today's record-low mortgage rates could give a big boost to your purchasing power. In fact, if you've been priced out of the market before, this may be the perfect time to look.

If you're hoping to sell this year, you'll have fewer listings to compete against in your neighborhood and price range. But you'll want to act quickly. Economists expect a surge of eager buyers to enter the market in July—so you should start prepping your home now. And keep in mind, a second wave of coronavirus cases could be coming in this winter. Ask yourself how you will feel if you have to face another lockdown in your current home.

Let's schedule a free virtual consultation to discuss your individual needs and circumstances. We can help you assess your options and create a plan that makes you feel both comfortable and confident during these unprecedented times.

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

Sources:

1. Forbes - https://www.forbes.com/sites/ellenparis/2020/05/08/latest-housing-market-update-from-realtorcom/#20bf7829113e
2. HousingWire -
   https://www.housingwire.com/articles/realtor-com-housing-market-will-bounce-back-this-year-but-the-rebound-will-be-short-lived/
3. Curbed -
   https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
4. com -
   https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-9-2020/
5. com -
   https://money.com/coronavirus-real-estate-home-prices/
6. Fannie Mae -
   https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_051320.pdf
7. HousingWire -
   https://www.housingwire.com/articles/pending-home-sales-tumble-on-covid-19-shock/
8. HousingWire -
   https://www.housingwire.com/articles/zillow-predicts-small-home-price-drop-through-rest-of-2020/
9. Federal Reserve Bank of St. Louis -
   https://fred.stlouisfed.org/series/CSUSHPINSA
10. Consumer Financial Protection Bureau -
    https://www.consumerfinance.gov/coronavirus/cares-act-mortgage-forbearance-what-you-need-know/
11. Bankrate -
    https://www.bankrate.com/mortgages/federal-reserve-and-mortgage-rates
12. National Association of Realtors -
    https://www.nar.realtor/sites/default/files/documents/2020-05-11-nar-flash-survey-economic-pulse-05-14-2020.pdf
13. Forbes -
    https://www.forbes.com/sites/alyyale/2020/04/17/buying-a-home-during-the-pandemic-dont-expect-your-everyday-home-purchase/#fadad3d33b0c
14. Washington Post -
    https://www.washingtonpost.com/health/2020/04/21/coronavirus-secondwave-cdcdirector/

Since the outbreak of the novel coronavirus (COVID-19), many of us are spending a lot more time at home. We're all being called upon to avoid public spaces and practice social distancing to help slow the spread of this infectious disease. While it can be understandably challenging, there are ways you can modify your home and your lifestyle to make the best of this difficult situation.

Here are a few tips for creating comfortable and functional spaces within your home for work, school, and fitness. We also share some of our favorite ways to stay connected as a community, because we're all in this together … and no one should face these trying times alone.

Begin with the Basics

A basic home emergency preparedness kit is a great addition to any home, even under normal circumstances. It should include items like water, non-perishable food, a flashlight, first aid kit, and other essentials you would need should you temporarily lose access to food, water, or electricity.

Fortunately, authorities don't anticipate any serious interruptions to utilities or the food supply during this outbreak. However, it may be a good time to start gathering your emergency basics in a designated location, so you'll be prepared now-—and in the future—should your family ever need them.

Working From Home

Many employees are being asked to work remotely. If you're transitioning to a home office for the first time, it's important to create a designated space for work … so it doesn't creep into your home life, and vice versa. If you live in a small condominium or apartment, this may feel impossible. But try to find a quiet corner where you can set up a desk and comfortable chair. The simple act of separating your home and work spaces can help you focus during work hours and "turn off" at the end of the day.

Of course, if you have children who are home with you all day (given many schools and daycares are now closed), separating your home and work life will be more difficult. Unless you have a partner who can serve as the primary caregiver, you will need to help manage the needs of your children while juggling work and virtual meetings.

If both parents are working from home, try alternating shifts, so you each have a designated time to work and to parent. If that's not an option, experts recommend creating a schedule for your children, so they know when you're available to play, and when you need to work.¹ A red stop sign on the door can help remind them when you shouldn't be disturbed. And for young children, blocking off a specific time each day for them to nap or have independent screen time can give you a window to schedule conference calls or work uninterrupted.

Homeschooling Your Children

Many parents with school-aged children will be taking on a new challenge: homeschooling. Similar to a home office, designating a space for learning activities can help your child transition between play and school. If you're working from home, the homeschooling area would ideally be located near your workspace, so you can offer assistance and answer questions, as needed.

If possible, dedicate a desk or table where your child's work can be spread out—and left out when they break for meals and snacks. Position supplies and materials nearby so they are independently accessible, and place a trash can and recycling bin within reach for easy cleanup. A washable, plastic tablecloth can help transition an academic space into an arts and crafts area.

 If the weather is nice, try studying outside! A porch swing is a perfect spot for reading, and gardening in the backyard is a great addition to any science curriculum.

In addition to creating an academic learning environment, find age-appropriate opportunities for your children to help with household chores and meal preparation. Homeschooling advocates emphasize the importance of developing life skills alongside academic ones.² And with more meals and activities taking place at home, there will be ample opportunity for every family member to pitch in and help.

Staying Fit

With gyms closed and team sports canceled, it can be tempting to sit on the sofa and binge Netflix. However, maintaining the physical health and mental wellness of you and your family is crucial right now. Implementing a regular exercise routine at home can help with both.

If you live in a community where you can safely exercise outdoors while maintaining the recommended distance between you and other residents, try to get out as much as possible. If the weather is nice, go for family walks, jogs, or bike rides.

Can't get outside? Fortunately, you don't need a home gym or fancy exercise equipment to stay fit. Look for a suitable space in your home, garage, or basement where you can comfortably move—you'll probably need at least a 6' x 6' area for each person. Many cardio and strength training exercises require little (or no) equipment, including jumping jacks, lunges, and pushups.

And if you prefer a guided workout, search for free exercise videos on YouTube—there are even options specifically geared towards kids—or try one of the many fitness apps available.

Socializing From a Distance

Even though we're all being called upon to practice "social distancing" right now, there are still ways to stay safely connected to our communities and our extended families. Picking up the phone is a great place to start. Make an effort to reach out to neighbors and loved ones who live alone and may be feeling particularly isolated right now.

And while parties and playdates may be prohibited, modern technology offers countless ways to organize networked gatherings with family and friends. Try using group video conferencing tools like Google Hangouts and Zoom to facilitate a virtual happy hour or book club. Host a Netflix Party to watch (and chat about) movies with friends. Or plan a virtual game night and challenge your pals to a round of Psych or Yahtzee.

There are safe ways to connect offline, too. Rediscover the lost art of letter writing. Drop off groceries on an elderly neighbor's porch. Or organize a neighborhood "chalk walk," where children use sidewalk chalk to decorate their driveways and then head out for a stroll to view their friends' artwork.

Of course, there's one group of people who you can still socialize with freely—those who reside in your home. Family dinners are back, siblings are reconnecting, and many of us have been given the gift of time, with commutes, activities, and obligations eliminated. In fact, some families are finding that this crisis has brought them closer than ever.

YOU ARE NOT ALONE

Even with all of the tools and technology available to keep us connected, many of us are still feeling stressed, scared, and isolated. However, you can rest assured that you are not alone. We're not only here to help you buy and sell real estate. We want to be a resource to our clients and community through good times and bad. If you and your family are in need of assistance, please reach out and let us know how we can help.

Sources:

1. CNBC -
   https://www.cnbc.com/2020/03/16/how-to-work-from-home-with-your-kids-during-the-coronavirus-outbreak.html

TheHomeSchoolMom.com -
https://www.thehomeschoolmom.com/benefits-of-homeschooling-2/

We're in the midst of the longest economic expansion in U.S. history, and economists think there's still room to grow. A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020.¹

Still, given that recessions are a natural (and necessary) part of a business cycle, we know this period of growth will inevitably end. So you may be wondering … how will an eventual recession impact the real estate market?

Many Americans assume a recession would lead to a decline in housing prices like we saw during the Great Recession of 2008. But the real estate market crash we experienced wasn't typical. In fact, the last recession wasn't typical at all. It was the worst economic downturn since the Great Depression of the 1930s.

ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that, in the majority of cases, home prices actually went up. Only twice (in 1990 and 2008) did prices decline, and in 1990 it was by less than one percent.²

So what can historical precedent—combined with today's data—tell us about the future of real estate? Here's where experts predict the housing market is headed in 2020 and beyond.

HOME PRICES WILL KEEP RISING

Economists predict U.S. housing prices will continue to rise, regardless of a recession. In fact, property data firm CoreLogic forecasts a faster rate of growth for home prices in 2020 than we saw in 2019, with the biggest gains at the lower end of the market.³

Arch MI Chief Economist Ralph DeFranco expects entry-level home prices to increase faster than incomes this year, making it even more difficult for many first-time buyers to afford to enter the market.⁴

"Low interest rates and a shortage of starter homes will continue to push up prices," predicts DeFranco. "This is especially the case for lower price points, since builders have tended to focus on more expensive, higher-profit houses and less on replenishing low inventories of entry-level homes."⁴

"Real estate is on firm ground with little chance of price declines," said National Association of Realtors Chief Economist Lawrence Yun. "However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains."⁵

What does it mean for you? If you have the ability and desire to buy a home now, don't let a fear of recession or falling prices hold you in limbo. Economists expect home values, as well as rent prices, to continue rising. So you'll likely pay more the longer you wait.

INVENTORY CONSTRAINTS WILL CONTINUE

According to Redfin, Americans are staying in their homes longer. In 2019, the average homeowner had resided in their home for 13 years, up from just eight years in 2010. That means there are fewer homes available today for those who want to buy.⁶

It's possible that an increase in new construction could offer some relief. The National Association of Realtors (NAR) expects single-family housing starts to total one million this year, the highest level since 2007. And NAR Chief Economist Lawrence Yun predicts the average price of new construction will decline slightly as builders shift to building smaller, more affordable homes.⁷

However, these efforts may not be enough to meet current demand. "Despite improvements to new construction and short waves of sellers, next year will once again fail to bring a solution to the inventory shortage," predicts Realtor.com Senior Economist George Ratiu. "In 2020, we expect inventory to struggle to grow and could instead reach a historic low level."⁸

What does it mean for you? If you're looking to buy a starter home, be prepared to compete for the best listings. Start your search early, and if you're up against a deadline (like a new baby), build in plenty of time to find the right home. We can help you assess your options, including new construction and up-and-coming developments.

MORTGAGE RATES WILL REMAIN LOW

Mortgage rates have declined more than a full percentage point since November 2018, when they hit a recent peak of 4.94%.⁹ The Mortgage Bankers Association predicts rates will remain low, at around 3.7%, through mid-2021.¹⁰

While it may not seem significant, on a $200,000 30-year fixed-rate mortgage, that lower rate means buyers could save around $145 on their monthly payment and more than $52,000 over the life of their mortgage. Lower mortgage rates make homeownership more accessible and affordable for buyers.

Although economists expect mortgage rates to stay low, they caution against waiting to act. Economic factors, shifts in supply and demand, or unforeseen impacts of the November election could cause rates to rise unexpectedly. "We recommend borrowers with long-term plans of staying in their homes to lock in a low rate now because there's no telling how long these low rates will last," warns Preetam Purohit, a capital markets trader at Embrace Home Loans.¹¹

What does it mean for you? If you're looking to buy a home, act soon to lock in a historically low mortgage rate. It will minimize your monthly payment and could save you a bundle over the long term. And if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today's lower rates.

MILLENNIALS WILL DRIVE THE MARKET

Millennials are expected to account for more than half of all mortgages this year, outnumbering Generation X and Baby Boomers combined. It's not surprising, considering their age and stage of life. In 2020, the largest cohort of millennials will turn 30, and the oldest millennials will turn 39.⁸

"Family changes tend to drive home-buying decisions," explains Realtor.com Chief Economist Danielle Hale. "Millennials are going to be active in the housing market not just because they're just at the age when they're thinking about becoming first-time home buyers, but they're also in the age range when they're having kids."¹²

Younger millennials flocked to urban centers that offered easy access to work, shopping, and restaurants. But high prices, lack of square footage, and subpar schools are driving millennials out to the suburbs as they begin to marry and expand their families.

In response, a new model for suburban living has emerged. "Hipsturbias," or mixed-use communities that bring the live/work/play concept to the suburbs, were recently named one of the top real estate trends for 2020 by the Urban Land Institute.⁴

What does it mean for you? If you're a millennial who has been priced out of urban living or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs. And if you're a homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this leading market segment!

WE'RE HERE TO GUIDE YOU

While national real estate numbers can provide a "big picture" outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.

If you're considering buying or selling a home in 2020, contact us now to schedule a free consultation. We'll work with you to develop an action plan to meet your real estate goals this year.

Sources:

1. NBC News -
   https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511
2. Curbed -
   https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
3. HousingWire -
   https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/
4. Forbes -
   https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935
5. National Association of Realtors -
   https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in
6. Redfin -
   https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/
7. HousingWire -
   https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/
8. com -
   https://www.realtor.com/research/2020-national-housing-forecast/
9. YCharts -
   https://ycharts.com/indicators/30_year_mortgage_rate
10. MBA Mortgage Market Forecast November 2019 -
    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
11. Dallas Morning News -
    https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/

Realtor.com -
https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/

Are you searching for new and innovative gift ideas this holiday season? If so, check out our list of the hottest home technology offerings. We've selected a few of our favorites for every room in the house.

These smart systems and devices add comfort, convenience, and a "cool factor" that will delight your friends and family.  So think about who you know that loves the latest gadgets … or add a few of these to your own wish list!

ENTRYWAY

Ensure the safety of your loved ones with these smart security upgrades.

Smart Lighting

Ring, a company best known for its video doorbells, has added smart lights to its series of integrated devices. The Ring Smart Light System includes motion sensors, pathlights, spotlights, and even step lights, which can be turned on and off using voice commands when paired with an Amazon Alexa device. Users may opt to receive a notification when motion is detected on the premises, and—if integrated with Ring security cameras—access a live video stream for an added layer of security. Systems start at $69.99.

Video Doorbell

Video doorbells have become an increasingly popular security enhancement for homes, and for a good reason. Homeowners can detect activity at their front door while away, view visitors via video stream, and communicate without opening the door. Since Ring released its first smart doorbell in 2013, a number of competitors have entered the market. The Nest Hello Video Doorbell has some unique features—like facial recognition, package detection, and pre-recorded quick responses—that place it near the top of the pack. Retails for $229.

Smart Lock

Smart locks are a great way to ensure your friends and family are never left out in the cold, and the August Smart Lock Pro+ Connect is among the most highly rated. It's one of the easiest models to install because it pairs with an existing deadbolt. The Smart Lock Pro enables a user to lock and unlock their door remotely with an app on their phone. And with the auto-lock/unlock feature, it can be set to open automatically upon approach and relock after entry. Retails for $279.

LIVING ROOM

These fun and functional gifts are perfect for anyone who is big on style—but short on time.

Automated Planter

Caring for household plants is easier than ever with the latest advancements in technology. Perfect for frequent travelers or forgetful friends, the Dewplanter uses moisture in the air to water plants without manual intervention. Now nature lovers can enjoy the beauty and health benefits of houseplants without the hassle. Plus, for each unit sold, the company pledges to plant a tree somewhere it's needed. Retails for $69.50.

Smart Art

Instead of buying your favorite art lover a single painting, why not give him or her 30,000? With the Meural Canvas, you can access an extensive collection of artwork from around the world to display digitally in your own home. Meural utilizes proprietary technology to deliver an anti-glare matte display that automatically adjusts to the lighting in the room. Personal artwork and photographs can be showcased, as well. Retails for $445 with annual membership.

Motorized Shades

Motorized window coverings aren't new, but a lower price point and enhanced features have helped to boost their popularity. The latest Motorized Shades from Somfy can be preprogrammed to raise or lower at certain times of day or controlled on-demand via a remote, smartphone app, or voice command when paired with Amazon Alexa or Google Home. They can also be set to operate automatically in response to the amount of sunlight or temperature of the room. Contact a dealer for pricing.

KITCHEN

These kitchen gadgets make life a little easier and a lot more enjoyable. They're perfect for your busiest friends and family members!

Pressure Cooker

Have you jumped on the multi-cooker bandwagon yet? If so, you know how fast and simple these multifunctional appliances make meal preparation. The InstantPot Duo is a pressure cooker, sauté pan, steamer, slow cooker, rice cooker, food warmer, and yogurt maker all-in-one. It reduces cooking time and lowers energy consumption. Who wouldn't love one of these versatile tools? With numerous cookbooks and blogs devoted to InstantPot recipes, the meal options are virtually endless. Retails for $99.95.

Cocktail Machine

Cocktail connoisseurs will appreciate the ease and convenience of the Bartesian Premium Cocktail Machine. Listed among "Oprah's Favorite Things" for 2019, the Bartesian mixes drinks with the touch of a button. Simply fill the canisters with base spirits, choose a cocktail capsule, and the machine does the rest. Now you can mix a margarita, whiskey sour, cosmopolitan, and other favorites as easily as you brew a cup of coffee. Retails for $349.

Smart Refrigerator

Kitchens are often called the "heart of the home," and a new refrigerator from Samsung aims to be the hub. The Samsung Family Hub Refrigerator helps busy families stay organized. Grocery shopping becomes a breeze with built-in cameras that allow owners to peek inside their fridge from anywhere. The interactive touchscreen displays pictures, notes, and reminders for family members. And the integrated SmartThings app enables users to control smart devices and appliances from a central point. Base model starts at $3,099.

BEDROOM

Almost nothing beats a good night's sleep. Help your loved ones wake up refreshed with these smart devices for the bedroom.

Baby Sleep Soother

As any parent knows, when your baby isn't getting sleep, neither are you. Help everyone in the family catch some z's with a Bubzi Co Soothing Owl. This cuddly creature plays lullabies while projecting a starry scene on the bedroom wall to calm young children and help them drift off to sleep. And for every purchase, Bubzi Co makes a donation to Postpartum Support International. Retails for $30.95.

Sunrise Alarm Clock

Know someone who hates getting up in the morning? Alarm clocks that utilize light instead of a noisy alarm can provide a more peaceful transition in and out of sleep. The Philips SmartSleep Connected Sleep and Wake-Up Light includes customizable sunrise and sunset simulation, guided breathing exercises, and sensors that track room conditions, like temperature, humidity, noise, and light. Retails for $199.95.

Smart Thermostat

Temperature fluctuations during the night can disrupt sleep. The Nest Learning Thermostat uses smart technology to track a user's preferences and build a schedule around them. Homeowners can place one of its integrated sensors in their bedroom to maintain a consistent temperature throughout the night. And Nest thermostats cut energy consumption, so they'll rest easier knowing they're saving the planet and money on utility bills . Retails for $249.

BATHROOM

Bathrooms don't have to be boring. Technology can add flair to the daily routine.

Waterproof Speaker

Music enthusiasts and podcast fans will enjoy streaming their favorites in the shower with a wireless waterproof speaker. The Ultimate Ears Wonderboom 2 is a mid-priced and versatile option that can go from the bath to the beach. It packs an impressive 13-hour battery life in a small, portable case that's waterproof, dust-proof, and floatable. Retails for $99.99.

Digital Smart Scale

A scale isn't an appropriate gift for everyone, but diet and fitness enthusiasts may appreciate the high-tech features available with the Withings Body+. It tracks weight, body water, and fat, muscle, and bone mass for up to eight users. It can also be set to display local weather and the previous day's step count. Customized pregnancy and baby modes make this a suitable choice for a growing family, as well. Retails for $99.95.

Vanity TV Mirror

For a truly luxe bathroom addition, consider an integrated vanity television mirror. The Seura TV Mirror seamlessly incorporates video into a bathroom vanity. It's vanishing glass technology makes it possible to view the television through a mirror. When turned off, the screen completely disappears. Add lighting or a custom frame to complete the look. Starts at $3,099 for a 19" display.

OUR GIFT TO YOU

Are you considering a permanent technology upgrade for your own home? Give us a call first! Buyer expectations and preferences vary depending on price point, architectural style, and neighborhood. We can help you determine how the enhancement will impact the value of your home before you make the investment.

5 Steps to Finding Your Next Home

Whether you're a first-time buyer or a seasoned homeowner, shopping for a new home can feel daunting. In fact, 56% of buyers said that "finding the right property" was the most difficult step in the home buying process.¹

Buying a home is a significant commitment of both time and money. And a home purchase has the power to improve both your current quality of life and your future financial security, so the stakes are high.

Follow these five steps—and complete the corresponding worksheet offered below—to assess your priorities, streamline your search, and choose your next home with confidence.

STEP 1: Set Your Goals and Priorities

The first step to finding your ideal home is determining WHY you want to move. Do you need more space? Access to better schools? Less maintenance? Or are you tired of throwing money away on rent when you could be building equity? Pinpointing the reasons why you want to move can help you assess your priorities for your home search. 

Don't forget to think about how your circumstances might change over the next few years. Do you expect to switch jobs? Have more children? Get a pet? A good rule of thumb is to choose a house that will meet your family's needs for at least the next five to seven years.² Be sure to set your goals accordingly.

STEP 2: Determine Your Budget

Many financial professionals recommend following the "28/36 Rule" to determine how much you can afford to spend on a home. The rule states that you should spend no more than 28% of your gross monthly income on housing expenses (e.g., mortgage, taxes, insurance) and a maximum of 36% of your gross monthly income on your total debt obligations (i.e., housing expenses PLUS any other debt obligations, like car loans, student loans, credit card debt, etc.).³

Of course, the 28/36 rule only provides a rough guideline. Getting pre-qualified or pre-approved for a mortgage BEFORE you begin shopping for homes will give you a much more accurate idea of how much you can borrow. Add your pre-approved mortgage amount to your downpayment to find out your maximum purchasing potential.

STEP 3: Choose a Location

When it comes to real estate, WHERE you choose to buy is just as important as WHAT you choose to buy.

Do you prefer a rural, urban, or suburban setting? How long of a commute are you willing to make? Which neighborhoods feed into your favorite schools? These decisions will impact your day-to-day life while you live in the home.

Another important factor to consider is how the area is likely to appreciate over time. Choosing the right neighborhood can raise the profit potential of your home when it comes time to sell. Look for communities that are well maintained with high home-ownership rates, low crime rates, and access to good schools, desired retail establishments, and top employers.⁴

STEP 4: Decide Which Features You Need (and Want) in a Home

Start with the basics, like your ideal number of bedrooms, bathrooms, and square footage. Do you prefer a one-story or two-story layout? Do you want a swimming pool?

Keep in mind, you may not find a home with all of your "wants," or even all of your "needs" … at least not at a price you can afford. The reality is, most of us have to make a few compromises when it comes to buying a home.

Some buyers will opt for a longer commute to get a larger, newer home in the suburbs. Others will sacrifice hardwood floors or an updated kitchen so that their kids can attend their desired school. 

If you're faced with a tough choice about how or what to compromise in your home search, return to STEP 1. What were your original goals and motivations for moving? Reminding yourself of your true priorities can often provide the clarity that you need.

STEP 5: Meet with a Real Estate Agent

A good real estate agent can remove much of the stress and uncertainty from the home search process. From setting goals to securing a loan to selecting the best neighborhood to meet your needs, we will be there to assist you every step of the way.

And no one has more access to home listings, past sales data, or market statistics than a professional agent. We can set up a customized search that alerts you as soon as a new listing you might like goes live. Better yet, we get notified about many of the hottest homes even BEFORE they hit the market.

You might guess that the VIP service we provide is very expensive. Well, the good news is, we can represent you throughout the entire home buying process at NO COST to you. It's true; the home seller pays a buyer agent's fee at closing. So you can benefit from our time, experience, and expertise without paying a dime. It's no wonder 87% of buyers choose to purchase their home with the help of an agent.¹

And although we've listed it here as STEP 5, the reality is, it's never too early (or too late) to contact an agent about buying a home. Whether you plan to buy today, next month, or next year, there are steps you can (and should) be taking to prepare for your purchase.

Call us today to schedule a free consultation!

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

Sources:

1. NAR 2019 Home Buyers & Sellers Generational Trends Report – https://www.nar.realtor/sites/default/files/documents/2019-home-buyers-and-sellers-generational-trends-report-08-16-2019.pdf
2. Architectural Digest – https://www.architecturaldigest.com/story/this-is-how-long-you-should-live-in-your-house-before-selling-it
3. Investopedia – https://www.investopedia.com/terms/t/twenty-eight-thirty-six-rule.asp
4. Money Talks News – https://www.moneytalksnews.com/20-clues-youre-buying-home-the-right-neighborhood/

Everything You Need to Know About iBuyers
and the "Instant Cash Offer"

Technology is changing the way we do almost everything, and real estate transactions are no exception. In fact, a new crop of tech companies wants to revolutionize the way we buy and sell homes.

iBuyer startups like Opendoor, Offerpad, and Properly are rapidly expanding into new territories, and now established players, like Zillow, are starting to get in on the action. Also known as Direct Buyers, these companies use computer algorithms to provide sellers with a quick cash offer to buy their home.

While the actual market share of iBuyers remains small, their big advertising budgets have helped create a noticeable buzz in the industry. This has left many of our clients curious about them and how they work.

In this article, we explain their business model, weigh the pros and cons of working with an iBuyer, and share strategies you can use to protect yourself if you choose to explore this new option to buy or sell your home.

FIRST, HOW DOES THE iBUYER PROCESS WORK?

While each company operates a little differently, the basic premise is the same. A seller (or seller's agent) completes a brief online form that asks questions about the size, features, and condition of the property. Some also request digital photos of the home.

The iBuyer will use this information to determine whether or not the home fits within their "buy box," or set of criteria that matches their investment model. They are generally looking for houses they can easily value and "flip." In most cases, their ideal property is a moderately priced, single-family home located in a neighborhood with many similar houses. The property shouldn't require any major renovations before listing.¹ These qualities make it easier to assess value (lots of comparable sales data) and help to reduce risk and minimize carrying costs.

Once the iBuyer has used their algorithm to determine the amount they are willing to pay, they will email an offer to the seller, usually within a few days. The offer should also disclose the company's service fee, which is typically between 7% and 12% of the purchase price.²

If the seller accepts, an in-person visit and inspection are scheduled. The iBuyer will ask for a reduction in price to cover any defects they find during the process. Once the sale closes, they will make the necessary updates and repairs and then resell the home on the open market.

WHAT ARE THE PROS AND CONS OF SELLING TO AN iBUYER?

Of course, the biggest benefit of selling your home to an iBuyer is convenience. For some homeowners, the stress and disruption of preparing and listing their home can feel overwhelming. And what busy family with kids and pets wouldn't want to skip the hassle of keeping their house "show ready" for potential buyers? Additionally, many sellers like the predictability of a cash buyer and the flexibility to choose their closing date.

However, this added convenience does come at a cost. An iBuyer is an investor looking to make a profit. So their purchase offer is usually below true market value. When you tack on service fees of up to 12% and deductions for updates and repairs, studies show that sellers who work with iBuyers net a lower amount than those that list the traditional way.³

In fact, a MarketWatch investigation found that transactions involving iBuyers net the seller 11% less than if they would have sold their home with an agent on the open market.²

WHAT ARE THE PROS AND CONS OF BUYING FROM AN iBUYER?

Buying a home from an iBuyer is a lot like buying a home from any investor. The pros are that it's usually clean, neutral, and moderately updated. You'll often find fresh paint and modern finishes. And because it's uninhabited (no one is living there), you don't have to work around a seller's schedule to see the home.

However, there are some pitfalls to avoid when working with iBuyers. Speed is of the essence, so sometimes the renovations are rushed and the quality can suffer. Also, their investment margins don't leave much room for negotiating a price reduction or additional repairs. That leaves buyers —who have already invested hundreds of dollars in an inspection—little recourse if any issues are uncovered.⁴

That's one of the reasons we always recommend viewing properties with an agent. During your visit, a real estate professional can point out any "red flags" at the home, provide background information about the neighborhood, and help you assess its true market value. That way, you don't invest time and money in a high-risk or overpriced property. Safety is also a concern. Some companies allow buyers to access their homes via a smartphone app. While it may seem convenient, it provides an easy way for squatters and others to enter the home illegally.⁵

Luckily, since most iBuyers (and traditional sellers) pay a buyer agent's commission, you can benefit from the guidance and expertise of a real estate professional … at no cost to you!

HOW CAN I PROTECT MYSELF IF I CHOOSE TO WORK WITH AN iBUYER?

While it may seem like the "quick and easy" way to go, working with an iBuyer can present some unique challenges. For example, they are notorious for presenting a strong initial purchase offer and then whittling it down with a long list of costly updates and repairs once they complete their inspection.² And unlike a traditional buyer who is incentivized to make a deal work, iBuyers can easily walk away if you don't meet their demands.

Just like you wouldn't go to court without a lawyer, you shouldn't enter into a real estate transaction without an advocate to represent you. Having a professional agent on your side can be especially important when negotiating with an iBuyer. Remember, they employ sophisticated representatives and a team of lawyers who are focused on maximizing their profits, not yours. You need someone in your corner who has the skills and knowledge to ensure you get a fair deal and who understands the terms of their contracts, so you don't encounter any unpleasant surprises along the way.

Overall, we think the emergence of new technology that helps to streamline the real estate process is exciting. And if we believe a client can benefit from working with an iBuyer, we present it as an option. But there is—inevitably—a cost to the convenience. After all, most iBuyers eventually list the properties they acquire on the open market, which is still the best place to find a buyer if you want to maximize the sales price of your home.

Sources:

1. The Dallas Morning News -
   https://www.dallasnews.com/business/real-estate/2019/07/11/so-called-ibuyer-real-estate-firms-pitch-programs-to-buy-your-house-help-you-hunt-for-another/
2. MarketWatch -
   https://www.marketwatch.com/story/selling-your-home-to-an-ibuyer-could-cost-you-thousands-heres-why-2019-06-11
3. Forbes -
   https://www.forbes.com/sites/alyyale/2019/08/16/study-shows-ibuyers-cost-home-sellers-thousands-is-convenience-worth-the-price/#697ac0c42269
4. US News & World Report -
   https://realestate.usnews.com/real-estate/articles/what-to-expect-when-buying-a-home-from-an-ibuyer

Inman -
https://www.inman.com/2019/09/11/police-arrest-couple-found-squatting-in-opendoor-home-with-their-kids/

The U.S. unemployment rate is at a 50-year low, and consumer confidence remains high. In fact, the University of Michigan's latest Surveys of Consumers found that Americans have their most positive personal finance outlook since 2003.¹

However, if you follow national news, you've probably heard speculation that we could be headed toward a recession. Global trade tensions and a slow down in the GDP growth rate have sparked volatility in the stock market, leading to economic uncertainty.

Given these differing signals, you may be wondering: How has the U.S. housing market been impacted? Where is it headed? And more importantly … what does it mean for me?

MORTGAGE RATES ARE NEAR HISTORIC LOWS

In August, Freddie Mac reported that the average 30-year fixed mortgage rate hit its lowest level since November 2016, falling to 3.6%, down a full percentage point from a year earlier.² Variable mortgage rates also fell when the Federal Reserve cut interest rates at the end of July for the first time since 2008.³

This was welcome news for many in the real estate industry. Freddie Mac predicts that low interest rates and a robust job market will help the housing market remain strong despite the threat of recession.

"There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment," said Sam Khater, Freddie Mac's chief economist. "Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall."²

What does it mean for you? If you're looking to buy a home, now is a great time to lock in a low mortgage rate. It will shrink your monthly payment and could save you a bundle over the long term. Or if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today's lower rates.

PRICES CONTINUE TO RISE AT A MODEST PACE

According to the S&P CoreLogic Case-Shiller Indices, housing prices continue to rise. But the rate at which prices are rising is slowing down. For May 2019, the National Home Price Index rose by 3.4%, down from 3.5% the previous month.⁴

Of course, national averages often don't present the whole picture. Some markets have seen modest declines, while other areas are witnessing double-digit increases. The key differentiating factor in most cases? Housing affordability.⁵

Since 2012, home prices have increased at about three times the pace of wages, according to National Association of Realtors chief economist Lawrence Yun.⁶ 

"Housing unaffordability will hinder sales irrespective of the local job market conditions," said Yun. "This is evident in the very expensive markets as home prices are either topping off or slightly falling."⁵

But what about all this talk of a recession? Will we see housing values plummet like they did in 2008? Economists say no.

If we look at history, the real estate crash experienced during the Great Recession isn't typical.

The recent Housing and Mortgage Market Review report from Arch Mortgage Insurance provides data to support this. "What we found is that the next recession is likely to be far less severe on the housing market than the last one. It's not that this time is different; it's that last time was really different from historic norms."⁶

"A large decline in national home prices is unlikely in the next recession," Arch economists write. "A persistent housing shortage should help cushion home price declines."⁶

What does it mean for you? If you have the ability and desire to buy a home now, don't let the threat of a recession hold you in limbo. The market is cyclical, and it will experience ups and downs. But over the long term, real estate has consistently proven to be a good investment.

STARTER INVENTORY REMAINS TIGHT WHILE LUXURY MARKET SOFTENS

As we've seen in the past, it's become a tale of two sectors.

The low-end of the market remains highly competitive as buyers compete for affordable housing. A lack of new construction during the last recession led to an undersupply of starter homes. This trend continues—despite growing demand—due to a lack of skilled workers, rising land and material costs, and a slow permitting process in many areas.⁷

The result? There's a shortage of homes for sale that Americans can actually afford to buy.

The luxury market, on the other hand, has softened. Economic uncertainty, changes to tax laws, and rising prices have slowed demand. Plus, to recoup their higher costs, builders flocked to this segment—causing an overabundance of supply in some areas.

"If you're selling an entry level home, you're probably still looking at a pretty competitive market in most places," according to Danielle Hale, chief economist at Realtor.com. "But if you're selling a more expensive home you probably have to adjust your expectations."⁸

What does it mean for you? Move-up buyers, you're in luck! If you're ready to trade in your starter home for something more luxurious, you may get the best of both sectors. We're still witnessing strong demand for entry-level homes, giving sellers the upper hand. At the same time, buyers of high-end homes are finding a greater selection (and more negotiating power) than they've had in years.

INVESTORS ARE BUYING HOMES AT RECORD LEVELS

There's one group that hasn't been slowed down by lack of affordability or economic uncertainty: investors.

According to CoreLogic, investors are purchasing homes at a record pace. In 2018, the share of U.S. homes bought by investors reached 11.3%—the highest level since the company began tracking nearly 20 years ago.⁹

Notably, this increased activity wasn't led by institutional investors, but instead by small and individual investors focused on the starter-home segment.⁷ Declining interest rates and an uncertain stock market have led investors to flock to real estate as they seek out greater stability and higher returns.

"With declining mortgage rates … they're searching for a better return for their money," said NAR chief economist Lawrence Yun.¹⁰

What does it mean for you? If you're looking for a way to "recession proof" your money, you might want to consider investing in real estate. People will always need a place to live, and (unlike the stock market) a rental property can provide a steady source of cash flow during uncertain economic times.

WE'RE HERE TO GUIDE YOU

While national real estate numbers can provide a "big picture" outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.

If you have specific questions or would like more information about how market changes could affect you, contact us to schedule a free consultation. We're here to help you navigate this shifting real estate landscape.

Sources:

1. University of Michigan Surveys of Consumers -
   http://www.sca.isr.umich.edu/
2. Freddie Mac -
   https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-significantly?_ga=2.29332539.689041222.1565464527-928629548.1565464527
3. CNN -
   https://www.cnn.com/2019/07/31/business/fed-rate-cut-july-meeting/index.html
4. S&P Dow Jones Indices -
   https://us.spindices.com/documents/indexnews/announcements/20190730-965771/965771_cshomeprice-release-0730.pdf?force_download=true
5. National Association of Realtors -
   https://www.nar.realtor/newsroom/metro-home-prices-increase-in-91-of-metro-areas-in-second-quarter-of-2019
6. Forbes -
   https://www.forbes.com/sites/alyyale/2019/04/18/with-a-recession-looming-is-now-the-time-to-sell-your-home/#7d3a21665bce
7. CNN -
   https://www.cnn.com/2019/08/09/economy/mortgages-home-buyers/index.html
8. Forbes -
   https://www.forbes.com/sites/carolinefeeney/2019/07/01/halfway-into-2019-how-is-the-housing-market-holding-up/#7e656e3ec5d8
9. CoreLogic -
   https://www.corelogic.com/blog/2019/06/special-report-investor-home-buying.aspx

Fox Business -
https://www.foxbusiness.com/economy/investors-snapping-up-homes-at-record-levels

In our "bigger is better" culture, there's an expectation that each home should be larger and grander than the last. But life changes like divorce, kids leaving for college, or even the simple act of growing older can prompt us to find a smaller home that better suits our shifting needs and lifestyle.

In fact, the advantages of downsizing are being increasingly recognized. A "tiny house movement" has gained passionate advocates who appreciate the benefits of living simply at any age and stage of life. Not only does a smaller home typically cost less, it also takes less time and effort to maintain.¹

Whatever your reasons are for downsizing, the process can seem overwhelming. That's why we've outlined five steps to guide you on your journey. And in the end, we hope you'll find that less is more … more comfort, more security, and more time and energy to spend on the activities and the people that you love.  

5 STEPS TO DOWNSIZING SUCCESS

1. Determine Your Goals and Limitations

The first step is to figure out your goals for your new living environment. Do you want to live closer to family? Are you hoping to cut down on home maintenance? Are you looking for a community with certain amenities?

You should also consider any limitations that will impact the home you choose. For example, are stairs an issue? Do you need access to medical care? In the case of divorce, are there child-custody issues you need to take into account?

Estimate how long you plan to stay in your new home. Do you expect your needs to change during that time?

Make a "wish list" of features and prioritize them from most to least important. If you'd like any assistance with this process, give us a call! We'd be happy to sit down with you for a free consultation. We can also help you assess the value of your current home so you can set a realistic budget for your new one.

2. Find the Perfect New Home

Once you've established your "wish list," we can begin the search for your new home. As local market experts, we know the ins and outs of all the top communities in our area. We can help you determine the neighborhood and type of home that will best fit your wants and needs.

From family neighborhoods to retirement communities, we serve clients in all stages of life. If you or a loved one are in need of extended support, we can also share our knowledge of the assisted living facilities in town and help you identify those that offer the optimal level of care.

Are you planning to relocate out of town? We can refer you to a trusted real estate professional in your target area who can help you with your search.

3. Sell Your Current Home

If you're ready to sell your current home, we'll begin the process of preparing to list it as we search for your new one.

We have a special interest in helping homeowners who are facing major life transitions, and we offer a full-service real estate experience that aims to remove as much of the stress and hassle of selling your home as possible. We also understand that many of our clients choose to downsize for financial reasons, so we employ tactics and strategies to maximize the potential sales revenue of your home.

We do this by employing our proven three-part approach, which focuses on optimum preparation, pricing, and promotion. As part of that plan, we invest in an aggressive marketing strategy that utilizes online and social media platforms to connect with consumers and offline channels to connect with local real estate agents. This ensures your property gets maximum exposure to prospective buyers.

4. Sort and Pack Your Belongings

Even before you find your new home, you can begin preparing for your move. A smaller home means less space for your furniture and other possessions, so you will need to decide what to keep and what to sell or donate. Sorting through an entire house full of belongings will take time, so begin as early as possible.

Parting with personal possessions can be an extremely emotional process. Start with a small, unemotional space like a laundry or powder room and work your way up to larger rooms. Focus on eliminating duplicates and anything you don't regularly use. If you have sentimental pieces, family heirlooms, or just useful items you no longer need, think about who in your life would benefit from having them. For large collections, consider keeping one or two favorite pieces and photographing the rest to put in an album.²

Make sure the items you keep help you achieve the goals you outlined in Step 1. For example, if you want a home that's easier to clean, cut down on knickknacks that require frequent dusting. If you're moving to be closer to your grandchildren, choose the shatterproof plates over the antique china.

Allow yourself time to take breaks if you start to feel overwhelmed. If you're helping a loved one with a move, try to be a patient listener if they want to stop and share stories about particular items or memories throughout the process.³ This can be therapeutic for them and an opportunity for you to learn family history that may otherwise have been forgotten.

5. Get Help When You Need It

Moving is stressful in any situation. But if you're downsizing due to health issues or a major life change, it can be an especially tough transition. Don't be afraid to ask for help.

Seek out friends and family members who can assist with packing and decluttering. If that's not an option, or if you need additional help, consider hiring a home organizer, full-service moving company, or even a senior move manager, which is a professional who assists older adults and their families with the physical and emotional aspects of relocation.⁴ You can find one accredited by the National Association of Senior Move Managers at https://www.nasmm.org/find/index.cfm.

If financial constraints are holding back, let us know. We can help you explore the possibility of tapping into the equity in your current home now. That way you can afford to get the assistance you need to make your transition as smooth as possible.

ARE YOU LIVING YOUR BEST LIFE?

If your current home no longer suits your needs, maybe it's time to consider a change. We would love to help you explore your options. Contact us today to schedule a free, no-obligation consultation.

Sources:

1. The Tiny Life -
   https://thetinylife.com/what-is-the-tiny-house-movement/
2. My Move -
   https://www.mymove.com/moving/senior-guide-downsizing/
3. Daily Caring -
   https://dailycaring.com/5-tips-to-downsizing-for-seniors-keepsakes-mementos/
4. National Association of Senior Move Managers -
   https://www.nasmm.org

Most new homeowners have something about their property that they want to change. And as family needs and design trends shift over time, many will eventually choose to remodel. Some homeowners make updates to their property before listing it to maximize their potential sales revenue.

Whatever your reasons are for taking on a home improvement project, it's wise to consider how the money you invest will impact your home's value.

We've taken a look at six popular home renovations and identified those that—on average—have the best and worst returns on investment. So before you lift a hammer or hire a contractor, take a look at this list and see if your remodeling efforts will reward you when it comes time to sell.

RENOVATIONS THAT PAY OFF

These three common home improvement projects not only add function and style to your home, but they also offer a strong return on investment. Making strategic upgrades to your property will help you increase its value over time.

Minor Kitchen Remodel

The kitchen is often referred to as the "heart of the home," and for good reason. Traditionally used for preparing food, it has morphed into so much more. Many of us now eat our family meals in the kitchen, it serves as a favorite spot for homework and kids' art projects, and it's the place guests tend to gather when we host events.

Because we spend so much time in our kitchens, it's natural that we will eventually want to make updates and upgrades to better suit our needs and changing style preferences.

Luckily, a minor kitchen remodel is one of the best investments you can make in your home. According to Remodeling Magazine's annual Cost vs. Value Report, it has an average 80.5% return on investment.¹

The key to making a kitchen remodel pay off is to keep it modest in scale. Spend too much on custom or high-end selections, and you are less likely to recoup your investment. Instead, make an effort to keep your existing layout if it works for you and your family. Paint or reface cabinets instead of replacing them. Update countertops with low-maintenance quartz and swap out old light fixtures with modern alternatives. Replace outdated appliances with energy-efficient models. The average cost for a minor kitchen remodel is $22,500, and it's likely to recoup more than $18,000 at resale.¹

Wood Deck Addition

A deck addition is a popular way to extend and enhance the use of your outdoor space. It's the perfect spot for grilling, dining alfresco, and entertaining. In fact, 81% of surveyed homeowners said they have a greater desire to be home since completing a deck addition.²

For a 16 x 20-foot wood deck, you can expect to spend around $13,000. Fortunately, the money you invest offers an average return of 76%.¹

Decks made of composite material are a popular alternative these days, as they don't require the regular sanding and staining that wood decks need. However, at an average cost of $19,000 for a 16 x 20-foot composite deck, they are significantly more expensive. Plus, the expected return on investment is only 69%.¹ Still, if you plan to hire someone to provide regular maintenance to a wood deck, then a composite deck may offer cost savings over time.

Siding Replacement

Everyone knows good curb appeal is important when selling your home. And while it may not be the most exciting way to spend your remodeling budget, new siding can make a big impression on buyers … and your selling price.

Your home's exterior is one of the first things buyers see when they view your home. It sets the tone for what they are going to see inside. It also gives an impression of how well the property has been maintained. Worn, peeling, or rotted siding can be a major red flag for buyers.

Replacing 1,250 square feet of siding costs around $16,000 and will net you an average of 76% at resale.¹

For an even greater impact, consider replacing a portion of your siding with manufactured stone veneer. It can have a dramatic effect on the visual appeal of your home. A 300 square foot area will run you around $8,900, but you can expect to see a nearly 95% return when it comes time to sell.¹

RENOVATIONS WITH WEAK RETURNS

These three popular remodeling projects are homeowner favorites. However, don't expect to see a high rate of return at resale. Instead, consider them an investment in your current quality of life. Just make sure you'll be living in the home long enough to make them worthwhile.

Major Kitchen Remodel

If there's one room the majority of homeowners dream about making over, it's their kitchen. From custom cabinetry to high-end appliances, the possibilities are endless. But those dreams can come at a cost.

An upscale kitchen remodel with high-end cabinetry and countertops, commercial-grade appliances, and designer features can cost upwards of $130,000. And unfortunately, you'll only get back around 60% at resale. Even a mid-range kitchen remodel that includes new semi-custom wood cabinets, laminate countertops, and energy-efficient appliances could run you around $66,000 and net you a mere 62% at resale.¹

Of course, an outdated or non-functional kitchen could turn buyers off from your home completely …  and keep you from enjoying it yourself! So if your kitchen needs a major remodel, you shouldn't necessarily scrap your plans. Just go in with the realization that you may only get back a fraction of what you invest. Then you can decide which upgrades are worth the splurge.

In-ground Pool         

Few additions deliver more entertainment or enjoyment than an in-ground pool. It brings families and friends together, provides a break from the summer heat, and offers a fun and convenient way to stay fit. Plus, you'll be the envy of your neighbors! But before you dive into a pool addition, consider whether the benefits outweigh the (substantial) costs.

The average expense to install a standard 18 x 36-foot in-ground pool is $57,500. And the estimated return at resale is only or 43%.² In addition to the installation cost, plan to spend money each year on maintenance, repairs, and additional insurance.

However, 92% of surveyed homeowners said they "have a greater desire to be home" since installing a pool, and 83% have "an increased sense of enjoyment when they are at home." For you and your family, the perks of a pool may be priceless.²

Master Suite Addition

If you own a house built before the 1980s, there's a good chance it lacks a master suite, which is a feature that has become commonplace in most newly constructed homes.³

Master bedrooms have evolved from a simple place to sleep into a homeowner's retreat—often featuring a sitting area, his-and-hers walk-in closets, and an attached bathroom with double vanities, a soaking tub, and a walk-in shower.

And master suite additions have become increasingly popular—both in homes that lack one as well as those with aging owners who can no longer accommodate stairs to an upper-level bedroom.

But what's the typical return at resale? Unfortunately, a master suite addition offers one of the lowest returns of any remodeling project. With a median cost of $125,000, most sellers will only recoup around 52% of their investment. Nevertheless, in a survey of homeowners, the majority were satisfied with their decision to add a master suite, giving it a "Joy Score" of 10 out of 10.⁴

WEIGHING COST VS. BENEFIT

It's always wise to enter into a remodeling project with knowledge of how it will impact your home's value. In most cases, upscale or highly-customized upgrades are less likely to offer a high rate of return. That said, home renovations that improve your quality of life and enhance your enjoyment may be worthwhile no matter the cost.

Sources:

1. 2019 Cost vs. Value Report -https://www.remodeling.hw.net/cost-vs-value/2019/
2. NAR' Remodeling Impact Report - https://www.nar.realtor/sites/default/files/documents/2018-05-remodeling-impact-outdoor-features-05-23-2018.pdf
3. Zillow -https://www.zillow.com/blog/evolution-of-the-master-bedroom-48286/
4. House Logic -https://www.houselogic.com/by-room/bedroom-closet/master-suite-addition-return-investment/

Thanks to Marie Kondo and her hit Netflix series "Tidying Up," home organization is a hot topic right now. Marie encourages her viewers to minimize their possessions and keep only those items that "spark joy."

With spring in full bloom, now is the perfect time to do some spring cleaning and add organizational systems to your own home. Not only will you clear out clutter, your efforts can actually increase the value of your home.

Ready to give it a try? Here are six home organization ideas that will "spark joy" for you and your property value.
 

Boost Bathroom Storage Capacity

When was the last time you cleaned out your bathroom cupboards? If it's been awhile, remove everything and take a look at each item. Toss any old or expired products—keep only what you actually use.

If your vanity has drawers, add drawer organizers, so you have a dedicated space for smaller items, like makeup and jewelry. For deep cabinets, install roll-out shelves or baskets to maximize the use of space.

And don't forget about the walls! Mount open shelves to store towels. If you're short on storage space, a cabinet over the toilet can offer additional room for supplies. These inexpensive additions can make your morning routine a little easier while giving your bathroom a more custom feel. And on average, minor bathroom remodeling projects like these see a 102% return at resale.¹

Upgrade Your Laundry Room

Sort through the items in your laundry room and throw away or donate anything you no longer need or use. If you've been holding onto a collection of old washcloths and single socks, it's time to say goodbye. Then give your laundry room an upgrade with some customized organizational features.

A mix of open cubbies and cabinets with doors will give you plenty of options for storing detergents and supplies. If you have space, a divided hamper or set of laundry baskets can provide a place to sort your clothes before washing. Install a hanging rod or drying rack for delicates and a flat work surface for ironing and folding clothes. With a few simple tweaks, you can turn this chore into a score!

Fully Utilize Your Basement or Attic

Basements and attics can easily become a dumping ground for clutter. If that's the case in your home, you know what to do!

Once you've conducted a thorough clean out, think about how you can better utilize the space to meet your family's needs. Install cabinets and a table so you can use the area as a craft room. Or you could turn it into a game room with a media center and ping-pong table. Investing in your basement will not only add function for your family, but also the average basement remodel can see up to a 70% return on investment when it's time to sell.²

If you have an attic, consider adding a cedar closet to store your off-season clothing. The cedar lining will keep your clothes free from moths and smelling fresh year round.³ Turning your attic into a more usable space will pay off down the road, too. A finished attic sees an estimated 60% return on investment.²
 

Customize Your Closets

Cleaning out the closet is a chore most of us dread, but by now, you're a pro! Get rid the clothes and shoes that don't fit you, are uncomfortable to wear, or that no longer "spark joy."

Then it's organizing time. So where do you start? You'll want to create a designated space for each type of clothing: high hanging rods for dresses and long jackets, lower rods for skirts and shirts, and shelves for folded items like jeans. And accessories need a place to go, too. Add racks for your shoes, drawers for jewelry, hooks for hats, and shelves or racks for handbags.

A well-equipped closet can be a major draw for buyers—the average return on a closet remodel is 57%.⁴ But more importantly, it'll improve your day-to-day life. Surveyed homeowners gave their closet remodel a "Joy Score" of 10 out of 10, higher than kitchen or bath upgrades.⁵

Install Built-in Bookcases and Cabinets

Built-in furniture adds functionality and storage to a room while giving your home a high-end look. Built-in bookcases can turn an empty room into an office. Custom cabinets can be used in a living room to display media equipment while providing hidden storage for DVDs, board games, and family albums.

When designing any built-in feature, remember not to go too custom. A design that only fits your tastes or belongings could turn off future buyers. Instead, select standard sizes and classic finishes to appeal to a broad range of buyers when it comes time to sell.

Equip Your Garage

If you can no longer fit your car in your garage, it may be time for a clean out. Similar to an attic or basement, the garage can quickly become overrun with clutter. A thorough cleaning will help you assess which items are worth keeping.

When adding organizational systems your garage, start with a small rack to store yard tools and larger racks for bikes and sports equipment. Overhead racks are a great place to put seasonal items and bulky luggage. A workbench against a wall lined with pegboard and hooks creates a dedicated space to use and store tools. If you have children or pets, add a cabinet with a lock. This will give you a place to securely store harsh chemicals and sharp tools. With a little effort, you'll be pulling in your car (and buyers) in no time!

SPRING INTO ACTION

If you're searching for service providers to help with your spring cleaning or home organization efforts, let us know! We can connect you with our trusted network of local home improvement professionals. We can also help you determine which organizational upgrades will add the most value to your home. Call us today, and let us know how we can help!

Sources:

1. HGTV -
   https://www.hgtv.com/design/real-estate/top-home-updates-that-pay-off-pictures
2. Nationwide -
   https://blog.nationwide.com/valuable-home-improvements/
3. HGTV -
   https://www.hgtv.com/remodel/interior-remodel/maximum-home-value-storage-projects--attic
4. The Closet Doctor - https://www.closet-doctor.com/news/what-is-the-return-on-investment-on-closet-organizers
5. NAR Remodeling Impact Survey -
   https://www.nar.realtor/sites/default/files/documents/2017-remodeling-impact-09-28-2017.pdf

If you're thinking about buying a home, you've probably received your share of advice from family and friends. Add to that the constant stream of TV shows, news segments, and social media posts that over-simplify the home buying process for easy entertainment.

With so much information to sift through, it can be tough to distinguish fact from fiction. That's why we're revealing the truth behind some of the most common home buyer myths and misconceptions.

Buying a home is a big decision, but it doesn't have to be a scary one. If you arm yourself with knowledge and a qualified team of support professionals, you'll be well equipped to make the right choices for your family and financial future.

DON'T FALL FOR THESE COMMON HOME BUYER MYTHS

Myth #1: You need a 20% down payment.

Plenty of buyers are purchasing homes with down payments that are much less than 20% of the total cost of the property. Today, you can buy a home with as little as 3-5% down.

There are multiple programs out there that allow you to have a lower down payment, and a lender or mortgage broker can talk you through which option is the best for you. Since you're putting less money down, you're a riskier borrower to your lender than people who put down a full 20%. Because of this, you will most likely need to pay mortgage insurance as part of your monthly payment.

Myth #2: Real estate agents are expensive.

Your agent is with you every step of the way throughout your home buying journey, and he or she spends countless hours working on your behalf. It sounds like having an agent is expensive, right? Well, not for you. Buyers usually don't pay a real estate agent's commission. Your agent's fee is paid for at closing by the seller of the home you're buying.¹ The seller knows to factor this cost into the property's total purchase price.

Myth #3: Don't call a real estate agent until you're ready to buy.

The earlier you bring in an agent to help with the purchasing process, the better. Even if you're in the very early stages of casually browsing Zillow, a real estate professional can be a huge help.

They can create a search for you in the Multiple Listing Service (MLS), so you get notifications for every house that meets your criteria as soon as it hits the market. The MLS is typically more up-to-date than popular home search sites like Zillow and Trulia. Setting up a search a few months before you're considering buying gives you a good idea of what's out there in your town that's in your budget. Reviewing the MLS and speaking with an agent as soon as possible can help you set realistic expectations for when you actually start the house hunting process.

Myth #4: Fixer-uppers are more budget friendly.

We've all watched the shows on HGTV that encourage people to go after fixer-uppers because they're more affordable and allow buyers to eventually renovate the home to include everything on their wishlist. But, this isn't always the case.

Sometimes, homes that need a lot of work also require a lot of money. Big renovations, like add-ons, a total kitchen remodel, or installing a pool, take a lot longer than it looks on TV. If you're really interested in a fixer-upper, ask your agent to show you a mix of newer homes and older homes. If you fall in love with an older home that needs a lot of work, get some quotes from contractors before you buy so you know the real cost of the renovations and see if you can work them into your budget.

Myth #5: Your only upfront cost is your down payment.

Your down payment is big, but it isn't the only money you'll spend during the home buying process. At closing, you'll pay your down payment, but you'll also bring closing costs to the table. Closing costs are typically anywhere from 2-4% of the total purchase price of the home.² This amount includes the cost for items like homeowners insurance, title fees, and more.

You'll also need to pay for an inspection before closing, which usually costs a few hundred dollars. This price will be higher or lower based on the size of your new property. Your lender will also require an appraisal. An appraiser will come in and inspect the home to determine how much it's worth. Depending on your lender, you may have to pay this when the appraisal is conducted or it might be rolled into your closing costs.

Myth #6: You need a high credit score to buy a house.

You don't need perfect credit to buy the perfect home. There are loans out there that buyers with lower credit scores can qualify for. These are good options for people who have had credit issues in the past, but some of them come with additional fees you will need to pay. Speak to a few local lenders or mortgage brokers to talk through which options might be best for you.

Myth #7: You can't qualify for a mortgage if you're still paying off student loans.

While some buyers may feel more comfortable paying off their existing debts before taking the leap into homeownership, it's not a requirement. When you're applying for a mortgage, the lender takes a close look at your debt-to-income ratio.³ If you want to calculate this on your own, add up all of your monthly debt payments and divide those by your monthly income. When you're lender does this, they're trying to make sure that you will be able to afford your monthly mortgage payments along with your other existing payments. If your income is high enough to allow you to make all of these payments each month, having a student loan will most likely not stop you from getting a mortgage.

Myth #8: You should base your budget on what your lender approves.

How much house you qualify for and how much you can afford are two totally different numbers. When you prequalify for a mortgage, your lender will look at your income, debt, assets, credit score, and financial history to determine how much money you might qualify for.⁴ For some people, this number might be much higher than you thought because lenders tend to approve for the highest amount they think you can afford. But that doesn't mean that's how much you should borrow.

Instead, figure out how much house you can actually afford. An online mortgage calculator can be a good first step in determining this number. We recommend thinking about what you want your monthly payment to be as a starting point. And remember to include your principal, interest, taxes, and, insurance. You should also think about ownership expenses that aren't part of your monthly payment, like HOA dues and maintenance.

Myth #9: It's all about location.

You've heard the phrase. Location, location, location is basically the real estate industry's motto, but we'll let you in on a little known secret: It's not always true. Yes, location is great to consider when it comes to school districts and commute times, but you also need to think about how the home will function for you and/or your family's lifestyle. If a family of five is choosing between a one bedroom condo in the bustling city center and a 4-bedroom home out in the suburbs, the latter is probably the best, most functional choice for them. Also, by buying in a less sought after neighborhood, your property taxes will most likely be much lower!

Obviously, you might still want to choose an area with great resale potential, and this is something that your agent can speak to you about. They're an expert in your city and are constantly monitoring buying and selling trends.

Myth #10: If you look hard enough, you'll find a home that checks every box on your wishlist.

You've seen that famous house hunting show. And while we have our suspicions about how real it is, the one thing they get right is that almost every buyer needs to compromise on something. Yes, the perfect house that meets every item on your wishlist is probably out there, but it's also probably double or triple your budget.

A long wishlist can be a great starting point for figuring out what you want and don't want, but we recommend narrowing that wishlist down to the top five things that are important to you in order of priority. We also recommend noting on your wishlist what your absolute deal breakers are, like "must have a yard for our dog," and noting what you can live without, like "heated bathroom floors."

This is a great list to discuss when you first start talking to an agent. A good real estate agent will be able to look at your list and find properties that might work for you. By coming to that first meeting with realistic expectations and knowledge about home buying rather than a bunch of myths heard here and there, you'll be able to start the process off on the right foot and be in your new house in no time.

WE'RE HERE TO HELP

Whether you're a first-time buyer or a seasoned homeowner, there's no reason to go through the home buying process without an advocate on your side. We're here to answer your questions and do the hard work for you, so you can spend your time dreaming about your new home. Call us today to schedule a free, no-obligation consultation.

Sources:

1. Realtor.com -

https://www.realtor.com/advice/finance/realtor-fees-closing-costs/

2. The Balance -
   https://www.thebalance.com/buyer-s-closing-costs-1798422
3. StudentLoanHero -

https://studentloanhero.com/featured/student-loans-buying-house/

4. Zillow -

https://www.zillow.com/mortgage-learning/pre-qualification-vs-pre-approval/

It's easy to look up how much money you have in your savings account or the real-time value of your stock investments. But determining the dollar value of a home is trickier.

As a seller, knowing your home's worth helps you price it correctly when you put it up for sale. If you price it too high, it may sit on the market. But price it too low and you may be losing out on a good chunk of money (nobody wants that!). For buyers, it's important to know a home's worth before you make an offer. You want your offer to be competitive, but you don't want to overpay for the property.

Even if you're not a buyer or seller right now, as a current homeowner you might just be curious about the value of your home. Keeping track of your home's worth year over year helps you understand the trends in your market. So when you are ready to sell, you can take advantage of a good window of opportunity.

The good news is, a trained real estate agent—who understands the nuances of your particular neighborhood—can determine the true market value of your property … and at no cost to you!

THE THREE TYPES OF HOME VALUES

When you start the process of buying or selling a home, you'll frequently hear the words appraised value, assessed value, and true market value. It's important to know the difference between each one so you can make better, informed decisions.

Appraised Value

A professional appraiser is in charge of determining the appraised value of a home. These appraisals are typically required by a lender when a buyer is financing the property. And while the lender is the one requiring this information, the appraiser does not work for the lender.¹ Your appraiser should be an objective, licensed professional who doesn't have allegiance to the buyer, seller, or lender—no matter who is paying their fee.

The number the appraiser comes up with (the appraised value) assures the lender that the buyer is not overpaying for the property. For example, imagine a seller lists a home for $400,000. They reach a deal with the buyer to sell the home for $375,000. However, if an appraiser evaluates the property and determines that the appraised value is actually $325,000, then the lender will not lend for an amount higher than that appraised value of $325,000.²

When figuring out this number, an appraiser will compare the property to similar homes in your neighborhood, and they'll evaluate factors such as location, square footage, appliances, upgrades, improvements, and the interior and exterior of the home. 

Assessed Value

The assessed value of a home is determined by your local municipal property assessor. This value matters when your county calculates property taxes each year. The lower your assessed value, the less property tax you'll pay.³

To come up with this value, your assessor will evaluate what comparable homes in the neighborhood have sold for, the size of your home, age, overall condition, and any improvements or upgrades that have been made. However, most assessors don't have full access to your home, so their information is limited.

Assessments are done annually to determine how much property tax you owe. Many counties use a multiplier (typically between 60%-80%) to calculate the final assessed value. So, if the assessor determines that the value of the home is $300,000, but the county uses a 70% multiplier, the assessed value of the home would be $210,000 for tax purposes.⁴

If your assessed value isn't as high as you envisioned, don't sweat it. Many homeowners appeal their assessment in favor of a lower valuation so that they can save money on property taxes. If you're interested in appealing your property tax assessment, let us know. We offer complimentary assistance and would be happy to help you build your case.

True Market Value

True market value is established by your real estate agent. It basically refers to the value that a buyer is willing to pay for the property. A good real estate agent is an expert in determining true market value because they have hands-on experience buying and selling properties. They understand the mindsets of buyers in your market and know what they'll pay for a desirable house, townhouse, or condo.

As a seller, knowing your true market value is important because it helps you choose how much to list your property for. It can also help you decide if you want to make any improvements to your home before putting it on the market. Your agent can help you figure out which updates and upgrades will have the biggest impact on your true market value.

WHAT'S THE DEAL WITH ONLINE CALCULATORS?

When figuring out your home's value, you might be tempted to see what popular real estate sites like Zillow, Redfin, and Trulia have to say. When you use an online calculator to determine your home's value on these sites, it is just an estimate. It's not an actual appraisal or the "true market value." These sites all have their own algorithms for coming up with their estimates. For example, Zillow comes up with their "Zestimates" by calculating "public and user-submitted data, taking into account special features, location, and market conditions." ⁵

These online estimates can be a great starting point for opening up the conversation with your real estate agent about your home's worth. But even Zillow recommends that you use a real estate agent for coming up with the actual market value of your home. The site says that once you get your "Zestimate," you should still get "a comparative market analysis from a real estate agent."

Having an agent involved in this process is essential because they understand the market better than a computer ever could. They're showing property in your city every single day, and they know the particular preferences of buyers and sellers in the area. Young professionals, large families, empty nesters, and other groups are all looking for different things in a home. A local agent has most likely worked with all of them, so they understand what every segment in your market is specifically looking for.

HOW AN AGENT FINDS YOUR HOME'S TRUE MARKET VALUE

So, how does an actual real estate agent determine true market value? They'll start by doing a comparative market analysis (CMA). This means they'll compare your home's features to similar properties in your area. For the CMA, the agent looks at the below factors to influence their assessment of your home's worth:⁶

• Neighborhood sales - Your agent will look at similar, recently sold homes in your neighborhood to see what they sold for and what they have in common with your house.
• The exterior - What does your home look like from the outside? Your agent will factor in curb appeal, the style of the house, the front and backyard, and anything else that impacts how the house looks to everyone walking and driving by.
• The interior - This is everything inside the walls of the house. Square footage, number of bedrooms and bathrooms, appliances, and more all influence the overall market value.
• Age of the home - Whether you have a newer or older home affects the number your agent comes up with as part of their assessment.
• Style of the home - The style of your home is important because buyers in different markets have different tastes. If buyers prefer ranch-style homes and you have one, then your home may sell for a premium (aka more money!).
• Market trends - Because a local agent has so much experience in your market, they have their finger on the pulse of your area's trends and know what buyers are willing to pay for a property like yours.
• Location, location, location - This one's probably the most obvious. Your agent will think about how popular the area is, how safe it is, and what schools are like.

A computer algorithm simply can't take all of these factors into account when calculating the value of your home. The reality is, nothing beats the accuracy of a real estate agent or professional appraiser when it comes to determining a home's true market value.

YOUR AGENT IS THERE EVERY STEP OF THE WAY

Determining a home's true market value is a real estate agent's forte. If you're a seller, your agent will help you find your home's market value so you can list it at the right price.

For buyers, your agent will help you determine the value so you can come up with a fair offer. Your agent can also set up a personalized home search on the Multiple Listing Service (MLS) for you so you'll receive emails of listings that meet your criteria. This will help you see what's out there in your city and how properties are being priced.

Get a Complimentary Report With Your Home's True Market Value

Curious about your home's true market value? Call us to request a free, no-obligation Comparative Market Analysis to find out exactly how much your home is worth!

Sources:

1. Chicago Tribune -

https://www.chicagotribune.com/suburbs/chi-ugc-article-what-is-the-difference-between-market-value-a-2013-09-30-story.html

2. SFGATE -

https://homeguides.sfgate.com/market-value-vs-appraised-value-1206.html

3. ValuePenguin -

https://www.valuepenguin.com/mortgages/what-is-the-assessed-value-of-a-house

4. Movoto -

https://www.movoto.com/blog/homeownership/assessed-value-vs-market-value/

5. Zillow -

https://www.zillow.com/how-much-is-my-home-worth/

6. com -

https://www.realtor.com/advice/sell/assessed-value-vs-market-value-difference/

Top 8 Home Design and Remodeling Trends for 2019

If you're a current homeowner, or in the market to buy, you're probably curious about the latest trends in home design.

Sellers who make strategic updates before listing a property can generate increased interest from buyers and, in some cases, a premium selling price. And buyers should consider which features of a home will need updating immediately (or in the near future) so they can factor renovation costs into their overall budget.

Even if you have no immediate plans to buy or sell, we advise our clients to be thoughtful about the colors, materials, and finishes they select when planning a remodel. Making over-personalized or unpopular design choices could hurt a home's value when it does come time to sell. And selecting out-of-style or overly-trendy elements could cause your renovation to feel dated quickly.

To help, we've rounded up eight of the hottest home design trends for 2019. Keep in mind, not all trends will work well in every house. If you plan to buy, list, or renovate a property, consult a professional who can help you realize your vision and maximize the impact of your investment.

1. WARMER PAINT COLORS

White and grey aren't going anywhere, but expect to see warmer tones and more earthy neutrals popping up in 2019. Cold whites are being replaced by warmer, softer whites. And warmer tones of grey have become a popular alternative to the cooler grays we were seeing earlier in the decade. Dove grey—with a lilac undertone—is a particular favorite with designers this year.

Sherwin Williams chose Cavern Clay, a warm terracotta, as its 2019 color of the year, while Behr selected Blueprint, a mid-tone blue. Benjamin Moore's selection is Metropolitan, a sophisticated grey.

If you're preparing to sell your home, consider a light, neutral paint color. Neutral colors provide a blank canvas upon which a buyer can envision placing their belongings, and lighter colors make a room appear larger and brighter.

"How's the Market?"
What's Ahead for Real Estate

While no one can predict the future with certainty, most experts expect to see modest growth in the U.S. housing market for the remainder of this year and next. Inventory will remain tight, mortgage rates will continue to creep up, and affordability will remain a major issue in many parts of the country.

So what does that mean for home buyers and sellers? To answer that question, we take a closer look at some of the top indicators.

CONTINUED GROWTH IN HOUSING MARKET

There's good news for homebuyers! In many markets across the country, prices have begun to stabilize after a period of rapid appreciation. Nationwide, home sales experienced a slight decline of 1.6 percent in the second quarter, primarily due to higher mortgage rates and housing prices combined with limited inventory.

However, buyers who have been waiting on the sidelines in anticipation of a big price drop may be disappointed. Demand remains strong across the sector and prices continue to rise. The Case-Shiller U.S. National Home Price Index reported a 6.2 percent annual gain in June, a healthy but sustainable rate of appreciation.¹

In its latest Outlook Report, Freddie Mac forecasts continued growth in the housing market due to a strong economy and low unemployment rate, which dropped to 3.9 percent in July.² 

"The housing market hit some speed bumps this summer, with many prospective homebuyers slowed by not enough moderately-priced homes for sale and higher home prices and mortgage rates," according to Sam Khater, Chief Economist at Freddie Mac. "The good news is, the economy and labor market are very healthy right now, and mortgage rates, after surging earlier this year, have stabilized in recent months. These factors should continue to create solid buyer demand, and ultimately an uptick in sales, in most parts of the country in the months ahead."³

INVENTORY TO REMAIN TIGHT, NEW CONSTRUCTION MAY HELP

Experts predict that demand for housing will continue to outpace available supply, especially in the entry-level price range.

"Today, even as mortgage rates begin to increase and home sales decline in some markets, the most significant challenges facing the housing market stem from insufficient inventory accompanying unsustainable home-price increase," said National Association of Realtors (NAR) Chief Economist Lawrence Yun in a recent release.

"The answer is to encourage builders to increase supply, and there is a good probability for solid home sales growth once the supply issue is addressed," said Yun. Additional inventory will also help contain rapid home price growth and open up the market to prospective homebuyers who are consequently—and increasingly—being priced out. In the end, slower price growth is healthier price growth."⁴

With so much demand, why aren't more builders bringing inventory to the market? According to the National Association of Home Builders, a crackdown on immigration and tariffs on imported lumber have made home construction more difficult and expensive. Those factors—combined with the rising cost of land and increased zoning requirements—have put a damper on the industry overall.⁵

Still, there's evidence that a modest rise in the rate of new building projects may be on the way. Freddie Mac predicts new housing construction will increase slightly after a stall last quarter.² And a recent report by Freedonia Focus Reports forecasts an annual increase in housing starts of 2.4 percent through 2022, led by an uptick in single-family homes.⁶ The boost in inventory should help drive sales growth and relieve some of the pent-up demand in tight markets.

While the current lack of inventory is generally preferred by sellers because it means less competition, a combination of high prices and rising interest rates has narrowed the pool of potential buyers who can afford to enter the market. Sellers should seek out real estate agents who utilize technologically-advanced marketing tactics to reach qualified buyers in their area.

AFFORDABILITY REACHES LOWEST LEVEL IN A DECADE

According to a recent report by Morgan Stanley, Americans are paying the most in monthly mortgage payments relative to their incomes since 2008.⁷ And prices aren't expected to come down any time soon.

"We believe that the current supply and demand environment will continue to push home prices higher, just at a decelerating pace," said John Egan, Morgan Stanley's Co-Head of U.S. Housing Strategy.

Fortunately, economists aren't concerned about affordability levels triggering another housing crisis, as lending standards are much higher today than they were during the run-up before the recession. According to credit reporting agency TransUnion, the share of homeowners who made mortgage payments more than 60-days past due fell in the second quarter to 1.7 percent, the lowest level since the market crash.⁷

NAR Chief Economist Lawrence Yun agreed with this assessment in a recent statement. "Over the past 10 years, prudent policy reforms and consumer protections have strengthened lending standards and eliminated loose credit, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage and near record-low defaults and foreclosures, which contributed to the last recession."⁴

MORTGAGE RATES EXPECTED TO CONTINUE RISING

The Federal Reserve has taken measures to help keep the housing market—and the overall economy—from overheating. It has raised interest rates twice this year so far, causing mortgage rates to surge in the first half of the year.

Economists predict that the rise in mortgage rates will continue at a more gradual rate through this year and next. The U.S. weekly average mortgage rate rose from 3.99 percent in the first week of January to as high as 4.66 percent in May. Freddy Mac forecasts an average rate of 4.6 percent for 2018 and 5.1 percent in 2019.²

The good news is, mortgage rates still remain near historic lows and a whopping 14 points below the recorded high of 18.63 percent in the early 1980s.⁸ Buyers who have been on the fence may want to act soon to lock in an affordable interest rate ... before rates climb higher.

"Some consumers may be thinking that because mortgage rates are higher than they were a year ago, maybe I should just wait until rates fall down again," said NAR's Chief Economist Lawrence Yun in a recent speech. "Well, they will be waiting forever."⁹

WHAT DOES IT ALL MEAN FOR ME?

If you've been waiting to buy a home, you may want to act now. A shortage of available homes on the market means prices are likely to keep going up. And a lack of affordable rental inventory means rents are expected to rise, as well.

If you buy now, you will benefit from appreciating property values while locking in an historically-low interest rate on your mortgage. Waiting to buy could mean paying more for your home as prices increase and paying higher interest on your mortgage as rates continue to rise.

And if you're in the market to sell your home, there's no need to wait any longer. Prices have begun to stabilize, and rising interest rates could decrease the number of available buyers for your home. Act now to take advantage of this strong seller's market.

LET'S GET MOVING

While national real estate numbers and predictions can provide a "big picture" outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.

If you have specific questions or would like more information about where we see real estate headed in our area, let us know! We're here to help you navigate this changing real estate landscape.

Sources:

1. S&P Dow Jones Indices Press Release -
   https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/766551_cshomeprice-release-0828.pdf?force_download=true
2. Freddie Mac Outlook Report -
   http://www.freddiemac.com/research/forecast/20180827_strong_economic_growth.html
3. DSNews -
   https://dsnews.com/daily-dose/08-28-2018/freddie-weighs-in-on-housing-market
4. PR Newswire -
   https://www.prnewswire.com/news-releases/realtors-chief-economist-reflects-on-past-recession-whats-ahead-for-housing-300702632.html
5. CNN Money -
   https://www.keyt.com/lifestyle/where-is-the-us-housing-market-headed-4-things-you-need-to-know/787471572
6. PR Newswire -
   https://www.prnewswire.com/news-releases/us-housing-starts-to-rise-2-4-yearly-to-2022--300711989.html
7. Business Insider -
   https://www.businessinsider.com/housing-affordability-slowing-market-sales-2018-8
8. Value Penguin -
   https://www.valuepenguin.com/mortgages/historical-mortgage-rates

Times Free Press -
https://www.timesfreepress.com/news/business/aroundregion/story/2018/aug/14/despite-prospects-higher-mortgage-rateshousin/476979/

Whatever your reasons are for relocating to a new area, the process can feel overwhelming.

Whether you're moving across across town or across the country, you'll be changing more than your address. Besides a new house, you may also be searching for new jobs, schools, doctors, restaurants, stores, service providers and more.

Of course you'll need to pack, make moving arrangements, and possibly sell your old home. With so much to do, you may be wondering: Where do I start?

In this guide, we outline seven steps to help you get prepared, get organized, and get settled in your new community. Our hope is to alleviate the hassle of relocating—so you can focus on the exciting adventure ahead!

1. Gather Information

If you're unfamiliar with your new area, start by doing some research.¹ Look for data on average housing prices, demographics, school rankings and crime statistics. Search for maps that illustrate local geography, landmarks, public transportation routes and major interstates. If you're moving across the country, research climate and seasonal weather patterns.

Check out local newspapers and blogs for information on political issues and developments that could impact your new community. You may also want to search for online forums and Facebook Groups relevant to your new area. These can be a great place to find information, ask questions and just observe local attitudes and outlooks.

If you're relocating for a job, find out if your new employer offers any relocation assistance. Many large corporations have a designated human resources professional to assist employees with relocation efforts, while others may contract this service out to a third party. Some employers will also cover all or a portion of your relocation and moving costs.

By gathering this information up front, you'll be better prepared to make informed decisions down the road.

2. Identify Your Ideal Neighborhoods

Once you've sufficiently researched your new area, you can start to identify your ideal neighborhoods.

The first step is to prioritize your "needs" and "wants." Consider factors such as budget; commute time; quality of schools; crime rate; walkability; access to public transportation; proximity to restaurants, shopping, and place of worship; and neighborhood vibe.

If possible, visit the area in person to get a feel for the community. If you're comfortable, strike up conversations with local residents and ask about their experiences living in the area.

Still not sure which neighborhood is the best fit for you and your family? Contact a local real estate agent for expert assistance. It's usually the most efficient and effective way to narrow down your options.

3. Find Your New Home (and Sell Your Old One)

Once you've narrowed down your list of preferred neighborhoods, it's time to start looking for a home. If you haven't already contacted a real estate agent, now is the time. They can search for current property listings that meet your needs, typically at no cost to you.

Create another list of "needs" and "wants," but this time for your new home. Include your basic requirements for square footage, bedrooms and bathrooms, but also think about what other factors are important to you and your family. An updated kitchen? A large backyard? Double sinks in the master bathroom?

Narrow your list down to your top 10 and prioritize them in order of importance.² This will give you a good starting point to begin your home search. Unless you have an unlimited budget, don't expect to find a home with everything on your list. But having a prioritized list can help you (and your agent) understand which home features are the most important, and which ones you may be willing to sacrifice.

If you already own a home, you'll also need to start the process of selling it or renting it out. A real estate agent can help you evaluate your options based on current market conditions. He or she can also give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one.

Your agent can also advise you on how to time your sale and purchase. While some buyers are able to qualify for and cover the costs of two concurrent mortgages, many are not. There are a number of options available, and a skilled agent can help you determine the best course given your circumstances.

4. Prepare for Your Departure

While everyone considers packing a fundamental part of moving, we often overlook the emotional preparation that needs to take place. If you have children, this can be especially important. Communicate the move in an age-appropriate way, and if possible take them on a tour of your new home and neighborhood. This can alleviate some of the mystery and apprehension around the move.⁴

Allow yourself plenty of time to pack up your belongings. Before you start, gather supplies, including boxes, tape, tissue paper and bubble wrap. Begin with non-essentials—such as off-season clothes or holiday decorations—and sort items into four categories: take, trash, sell and donate/give away.⁵

To make the unpacking process easier, be sure to label the top and sides of boxes with helpful information, including contents, room, and any special instructions. Keep a master inventory list so you can refer back to it if something goes missing.

If you will be using a moving company, start researching and pricing your options. To ensure an accurate estimate of your final cost, it's best to have them conduct an in-person walkthrough. Make sure you're working with a reputable company, and avoid paying a large deposit before your belongings are delivered.⁶

If you plan to drive to your new home, map out the route. And, if necessary, make arrangements for overnight accommodations along the way. If driving is not a good option, you may need to have your vehicles transported and make travel arrangements for you, your family and your pets.

Lastly, if you will be leaving friends or family behind, schedule final get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.

5. Prepare for Your Arrival

To make your transition go smoothly, prepare for your arrival well before moving day. Depending on how long your belongings will take to arrive, you may need to arrange for temporary hotel accommodations. If you plan to move in directly, pack an "essentials box" with everything you'll need for the first couple of nights in your new home, such as toiletries, toilet paper, towels, linens, pajamas, cell phone chargers, snacks, pet food and a change of clothes.⁷ This will keep you from searching through boxes after an exhausting day of moving.

Arrange in advance for your utilities to be turned on, especially essentials like water, electricity and gas. (And while you're at it, schedule a shut-off date for your current utilities.) Update your address on all accounts and subscriptions and arrange to have your mail forwarded through the postal service. If you have children, register them for their new school or daycare and arrange for the transfer of any necessary records.

You may want to have the house professionally cleaned before moving in. And if you plan to remodel, paint or install new flooring, it's easier to have it done before you bring in all of your belongings.⁸ However, it's not always feasible without someone you trust locally who can supervise. Another option is to keep a portion of your things in storage while you complete some of these projects. 

If there are no window treatments, you may need to install some (or at least put up temporary privacy film), especially in bedrooms and bathrooms. And if appliances are missing, consider purchasing them ahead of time and arranging for delivery and installation shortly after you arrive. Just be sure to check measurements and installation instructions carefully so you aren't stuck with an appliance that doesn't fit or that requires costly modifications to your new home.

If you own a car, check the requirements for a driver's license and vehicle registration in your new area and contact your insurance company to update your policy.⁸ If you will rely on public transportation, research options and schedules.

6. Get Settled In Your New Home

While staring at an endless pile of boxes can feel daunting, you should take advantage of this opportunity to make a fresh start. By creating a plan ahead of time, you can ensure your new house is thoughtfully laid out and well organized.

If you followed our suggestion to pack an "essentials box" (see Step 5), you should have easy access to everything you'll need to get you through the first couple of nights in your new home. This will allow you some breathing room to unpack your remaining items in a deliberate manner, instead of rushing through the process.⁷

If you have young children, consider unpacking their rooms first. Seeing their familiar items can help them establish a sense of comfort and normalcy during a confusing time. Then move on to any items you use on a daily basis.¹⁰

Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favorite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.¹¹

As you unpack, make a list of items that need to be purchased so you're not making multiple trips to the store. Also, start a list of needed repairs and installations. If you have a home warranty, find out what's covered and the process for filing a service order.

Although you may be eager to get everything unpacked, it's important to take occasional breaks. Have some fun, relax and explore your new hometown!

7. Get Involved In Your New Community

Studies show that moving can lead to feelings of loneliness and depression. People who have recently moved tend to be isolated socially, more stressed, and less likely to participate in exercise and hobbies. However, there are ways to combat these negative effects.¹²

First, get out and explore. In a 2016 study, recent movers were shown to spend less time on physical activities and more time on their computers, which has been proven to lead to feelings of depression and loneliness. Instead, get out of your house and investigate your new area. And if you travel by foot, you'll gain the advantages of fresh air and exercise.¹²

Combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship or volunteer for a cause. Don't wait for friends to come knocking on your door. Instead, go out and find them.

Finally, be a good neighbor. Make an effort to introduce yourself to your new neighbors, invite them over for coffee or dinner, and offer assistance when they need it. Once you've developed friendships and a support system within your new neighborhood, it will truly start to feel like home.

LET'S GET MOVING

While moving is never easy, these seven steps offer an action plan to get you started on your new adventure. To avoid getting overwhelmed, focus on one step at a time. And don't hesitate to ask for help!

In a 2015 study, 61 percent of participants ranked moving at the top of their stress list, above divorce and starting a new job.¹³ But with a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.

We specialize in assisting home buyers and sellers with a seamless and "less-stress" relocation. Along with our referral network of movers, handymen, housekeepers, decorators, contractors and other service providers, we can help take the hassle and headache out of your upcoming move. Give us a call or message us to schedule a free, no-obligation consultation!

Sources:

1. You Move Me -
   https://www.youmoveme.com/us/blog/105-tips-for-a-successful-relocation
2. com -
   https://www.houselogic.com/buy/house-hunting/must-have-items/
3. Livestrong -
   https://www.livestrong.com/article/436651-the-effects-of-sunlight-fresh-air-on-the-body/
4. Parents Magazine -
   https://www.parents.com/parenting/money/buy-a-house/make-moving-easier-on-you-and-your-kids/
5. The Spruce -
   https://www.thespruce.com/starting-to-pack-for-your-move-2436470
6. com -
   https://www.moving.com/tips/hiring-quality-movers/
7. The Spruce -
   https://www.thespruce.com/unpack-your-entire-home-2435815
8. com -
   https://www.houselogic.com/buy/moving-in/before-you-move/
9. HGTV -
   https://www.hgtv.com/design/real-estate/moving-checklist
10. com -
    https://www.moving.com/tips/how-to-unpack-and-organize-your-house/
11. ASPCA -
    https://www.aspca.org/pet-care/general-pet-care/moving-your-pet

A Seasonal Guide to Maintaining Your Home

From summer vacations to winter holidays, it seems each season offers the perfect excuse to put off our to-do list. But be careful, homeowners: neglecting your home's maintenance could put your personal safety—and one of your largest financial investments—at serious risk.

In no time at all, small problems can lead to extensive and expensive repairs. And even if you avoid a catastrophe, those minor issues can still have a big impact. Properties that are not well maintained can lose 10 percent (or more) of their appraised value.¹

The good news is, by dedicating a few hours each season to properly maintaining your home, you can ensure a safe living environment for you and your family ... and actually increase the value of your home by one percent annually!¹ You just need to know where and how to spend your time.

Use the following checklist as a guide to maintaining your home and lawn throughout the year. It's applicable for all climates, so please share it with friends and family members who you think could benefit, no matter where their home is located.

 Spring

After a long, cold winter, many of us look forward to a fresh start in the spring. Wash away the winter grime, open the windows, and prepare your home for warmer weather and backyard barbecues.

Inside

• Conduct Annual Spring Cleaning
  Be sure to tackle those areas that may have gone neglected—such as your blinds, baseboards and fan blades—as well as appliances, including your refrigerator, dishwasher, oven and range hood. Clear out clutter and clothes you no longer wear, and toss old and expired food and medications.

• Shut Down Heating System
  Depending on the type of heating system you have, you may need to shut your system down when not in use. Check the manufacturer's instructions for proper procedures.

• Tune Up A/C
  If your home has central air conditioning, schedule an annual tune-up with your HVAC technician. If you have a portable or window unit, be sure to follow the manufacturer's instructions for proper maintenance.²

• Check Plumbing
  It's a good idea to periodically check your plumbing to spot any leaks or maintenance issues. Look for evidence of leaks—such as water stains on the ceiling—and check for dripping faucets or running toilets that need to be addressed. Inspect your hot water heater for sediment build up. Check your sump pump (if you have one) to ensure it's working properly.³

• Inspect Smoke Alarm and Carbon Monoxide Detectors
  Check that your smoke and carbon monoxide detectors are functioning properly. Batteries should be replaced every six months, so change them now and again in the fall. Follow the manufacturer's instructions to test your individual devices. And even properly functioning devices should be replaced at least every 10 years, or per the manufacturer's recommendation.⁴

Outside

• Inspect Perimeter of Home
  Walk around your house and look for any signs of damage or wear and tear that should be addressed. Are there cracks in the foundation? Peeling paint? Loose or missing roof shingles? Make a plan to make needed repairs yourself or hire a contractor.

• Clean Home's Exterior
  Wash windows and clean and replace screens if they were removed during the winter months. For the home's facade, it's generally advisable to use the gentlest method that is effective. A simple garden hose will work in most cases.⁵

• Clean Gutters and Downspouts
  Gutters and downspouts should be cleaned at least twice a year. Neglected gutters can cause water damage to a home, so make sure yours are clean and free of debris. If your gutters have screens, you may be able to decrease the frequency of cleanings, but they should still be checked periodically.⁶

• Rake Leaves
  Gently rake your lawn to remove leaves and debris. Too many leaves can cause an excessive layer of thatch, which can damage the roots of your lawn. They can also harbor disease-causing organisms and insects.⁷ However, take care because overly vigorous raking can damage new grass shoots.
  
• Seed or Sod Lawn
  If you have bare spots, spring is a good time to seed or lay new sod so you can enjoy a beautiful lawn throughout the remainder of the year. The peak summer heat can be too harsh for a new lawn. If you miss this window, early fall is another good time to plant.⁸

• Apply a Pre-Emergent Herbicide
  While a healthy lawn is the best deterrent for weeds, some homeowners choose to use a pre-emergent herbicide in the spring to minimize weeds. When applied at the right time, it can be effective in preventing weeds from germinating. However, a pre-emergent herbicide will also prevent grass seeds from germinating, so only use it if you don't plan to seed or sod in the spring.

• Plant Flowers
  After a long winter, planting annuals and spring perennials is a great way to brighten up your garden. It's also a good time to prune existing flowers and shrubs and remove and compost any dead plants.
  
• Mulch Beds
  A layer of fresh mulch helps to suppress weeds, retain moisture and moderate soil temperature. However, be sure to strip away old mulch at least every three years to prevent excessive buildup.⁹
  
• Fertilize Lawn
  Depending on your grass type, an application of fertilizer in the spring may help promote new leaf and root growth, keep your lawn healthy, and reduce weeds.¹⁰

• Tune Up Lawn Mower
  Send your lawn mower out for a professional tune-up and to have the blades sharpened before the mowing season starts.¹¹
  
• Inspect Sprinkler System
  If you have a sprinkler system, check that it's working properly and make repairs as needed.

• Check the Deck
  If you have a deck or patio, inspect it for signs of damage or deterioration that may have occurred over the winter. Then clean it thoroughly and apply a fresh coat of stain if needed.

• Prepare Pool
  If you own a pool, warmer weather signals the start of pool season. Be sure to follow best practices for your particular pool to ensure proper maintenance and safety.

Summer

Summer is generally the time to relax and enjoy your home, but a little time devoted to maintenance will help ensure it looks great and runs efficiently throughout the season.

Inside

• Adjust Ceiling Fans
  Make sure they are set to run counter-clockwise in the summer to push air down and create a cooling breeze. Utilizing fans instead of your air conditioner, when possible, will help minimize your utility bills.

• Clean A/C Filters
  Be sure to clean or replace your filters monthly, particularly if you're running your air conditioner often.

• Clear Dryer Vent
  Help cut down on summer utility bills by cleaning your laundry dryer vent at least once a year. Not only will it help cut down on drying times, a neglected dryer poses a serious fire hazard.

• Check Weather Stripping
  If you're running your air conditioner in the summer, you'll want to keep the cold air inside and hot air outside. Check weather stripping around doors and windows to ensure a good seal.

Outside

• Mow Lawn Regularly
  Your lawn will probably need regular mowing in the summer. Adjust your mower height to the highest setting, as taller grass helps shade the soil to prevent drought and weeds.

• Water Early in the Morning
  Ensure your lawn and garden get plenty of water during the hot summer months. Experts generally recommend watering in the early morning to minimize evaporation, but be mindful of any watering restrictions in your area, which may limit the time and/or days you are allowed to water.

• Weed Weekly
  To prevent weeds from taking over your garden and ruining your home's valuable curb appeal, make a habit of pulling weeds at least once per week.

• Exterminate Pests
  Remove any standing water and piles of leaves and debris. Inspect your lawn and perimeter of your home for signs of an invasion. If necessary, call a professional exterminator for assistance.

Fall

Fall ushers in another busy season of home maintenance as you prepare your home for the winter weather ahead.

Inside

• Have Heater Serviced
  To ensure safety and efficiency, it's a good idea to have your heating system serviced and inspected before you run it for the first time.

• Shut Down A/C for the Winter
  If you have central air conditioning, you can have it serviced at the same time as your furnace. If you have a portable or window unit, ensure it's properly sealed or remove it and store it for the winter.

• Inspect Chimney
  Fire safety experts recommend that you have your chimney inspected annually and cleaned periodically. Complete this task before you start using your fireplace or furnace.

• Seal Windows and Doors
  Check windows and doors for drafts and caulk or add weatherstripping where necessary.

• Check Smoke Alarm and Carbon Monoxide Detectors
  If you checked your smoke and carbon monoxide detectors in the spring, they are due for another inspection. Batteries should be replaced every six months, so it's time to replace them again. Follow the manufacturer's instructions to test your individual devices. And even properly functioning devices should be replaced at least every 10 years, or per the manufacturer's recommendation.³

Outside

• Plant Fall Flowers, Grass and Shrubs
  Fall is a great time to plant perennials, trees, shrubs, cool-season vegetables and bulbs that will bloom in the spring.¹² It's also a good time to reseed or sod your lawn.

• Rake or Mow Leaves
  Once the leaves start falling, it's time to pull out your rake. A thick layer of leaves left on your grass can lead to an unhealthy lawn. Or, rather than raking, use a mulching mower to create a natural fertilizer for your lawn.

• Apply Fall Fertilizer
  If you choose not to use a mulching mower, a fall fertilizer is usually recommended. For best results, aerate your lawn before applying the fertilizer.¹³

• Inspect Gutters and Roof
  Inspect your gutters and downspouts and make needed repairs. Check the roof for any broken or loose tiles. Remove fallen leaves and debris.

• Shut Down Sprinkler System
  If you have a sprinkler system, drain any remaining water and shut it down to prevent damage from freezing temperatures over the winter.

• Close Pool
  If you have a pool, it's time to clean and close it up before the winter.

Winter

While it can be tempting to ignore home maintenance issues in the winter, snow and freezing temperatures can do major damage if left untreated. Follow these steps to ensure your house survives the winter months.

Inside

• Maintain Heating System
  Check and change filters on your heating system, per the manufacturer's instructions. If you have a boiler, monitor the water level.

• Tune Up Generator
  If you own a portable generator, follow the manufacturer's instructions for proper maintenance. Make sure it's working before you need it, and stock up on supplies like fuel, oil and filters.

• Prevent Frozen Pipes
  Make sure pipes are well insulated, and keep your heat set to a minimum of 55 degrees when you're away. If pipes are prone to freezing, leave faucets dripping slightly overnight or when away from home. You may also want to open cabinet doors beneath sinks to let in heat.

Outside

• Drain and Shut Off Outdoor Faucets
  Before the first freeze, drain and shut off outdoor faucets. Place an insulated cover over exposed faucets, and store hoses for the winter.

• Remove Window Screens
  Removing screens from your windows allows more light in to brighten and warm your home during the dark, cold winter months. Snow can also get trapped between screens and windows, causing damage to window frames and sills.

• Service Snowblower
  Don't wait until the first snowstorm of the season to make sure your snowblower is in good working order. Check the manufacturer's instructions for maintenance or have it serviced by a professional.

• Stock Up on Ice Melt
  Keep plenty of ice melt, or rock salt, on hand in preparation for winter weather. Look for brands that will keep kids and pets safe without doing damage to your walkway or yard.

• Watch Out for Ice Dams
  Ice dams are thick ridges of solid ice that can build up along the eaves of your house. They can do major damage to gutters, shingles and siding. Heated cables installed prior to the first winter storm can help.¹⁴

• Check for Snow Buildup on Trees
  Snow can cause tree limbs to break, which can be especially dangerous if they are near your home. Use a broom to periodically remove excess snow.¹⁵

While this checklist should not be considered a complete list of your home's maintenance needs, it can serve as a general seasonal guide. Systems, structures and fixtures will need to be repaired and replaced from time-to-time, as well. The good news is, the investment you make in maintaining your home now will pay off dividends over time.

Keep a record of all your maintenance, repairs and upgrades for future reference, along with receipts. Not only will it help jog your memory, it can make a big impact on buyers when it comes time to sell your home … and potentially result in a higher selling price.

Are you looking for help with home maintenance or repairs? We have an extensive network of trusted contractors and service providers and are happy to provide referrals! Call or email us, and we can connect you with one of our preferred vendors.

Sources:

1. com –
   https://www.houselogic.com/organize-maintain/home-maintenance-tips/value-home-maintenance/
2. Home Advisor –
   https://www.homeadvisor.com/r/servicing-your-air-conditioner/
3. Keyes & Sons Plumbing and Heating –
   http://keyes-plumbing.com/things-to-check-in-spring/
4. Allstate Insurance Blog –
   https://blog.allstate.com/test-smoke-detectors/
5. Houzz –
   https://www.houzz.com/ideabooks/17268616/list/how-to-wash-your-house
6. Angie's List –
   https://www.angieslist.com/articles/why-gutter-cleaning-so-important.htm
7. Angie's List –
   https://www.angieslist.com/articles/what-thatch-and-how-does-it-impact-my-lawn.htm
8. HGTV –
   http://www.hgtv.com/design/outdoor-design/landscaping-and-hardscaping/lawns/top-spring-lawn-care-tips-pictures
9. This Old House –
   https://www.thisoldhouse.com/more/may-mulching
10. Lowes –
    https://www.lowes.com/projects/lawn-and-garden/fertilize-your-lawn/project
11. The New York Times –
    https://www.nytimes.com/guides/realestate/home-maintenance-checklist
12. Better Homes and Gardens Magazine –
    https://www.bhg.com/gardening/yard/garden-care/what-to-plant-in-the-fall/
13. The Spruce –
    https://www.thespruce.com/late-fall-fertilizing-2152976
14. This Old House –
    https://www.thisoldhouse.com/how-to/how-to-get-rid-ice-dams
15. Houzz –
    https://www.houzz.com/ideabooks/55572864/list/your-winter-home-maintenance-checklist

Don't wait until you're ready to move to start preparing financially to buy a home.

If you're like the vast majority of home buyers, you will choose to finance your purchase with a mortgage loan. By preparing in advance, you can avoid the common delays and roadblocks many buyers face when applying for a mortgage.

The requirements to secure a mortgage may seem overwhelming, especially if you're a first-time buyer. But we've outlined three simple steps to get you started on your path to homeownership.

Even if you're a current homeowner, it's a good idea to prepare in advance so you don't encounter any surprises along the way. Lending requirements have become more rigorous in recent years, and changes to your credit history, debt levels, job type and other factors could impact your chances of approval.

It's never too early to start preparing to buy a home. Follow these three steps to begin laying the foundation for your future home purchase today!

STEP 1: CHECK YOUR CREDIT SCORE

Your credit score is one of the first things a lender will check to see if you qualify for a loan. It's a good idea to review your credit report and score yourself before you're ready to apply for a mortgage. If you have a low score, you will need time to raise it. And sometimes fraudulent activity or erroneous information will appear on your report, which can take months to correct.

The credit score most lenders use is your FICO score, a weighted score developed by the Fair Isaac Corporation that takes into account your payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).¹

Source: myFico.com

Base FICO scores range from 300 to 850. A higher FICO score will help you qualify for a lower mortgage interest rate, which will save you money.²

By federal law, you are entitled to one free copy of your credit report every 12 months from each of the three major credit bureaus (Equifax, Experian and Transunion). Request your free credit report at https://www.annualcreditreport.com.

Minimum Score Requirements

To qualify for the lowest interest rates available, you will usually need a FICO score of 760 or higher. Most lenders require a score of at least 620 to qualify for a conventional mortgage.³

If your FICO score is less than 620, you may be able to qualify for a non-conventional mortgage. However, you should expect to pay higher interest rates and fees. For example, you may be able to secure an FHA loan (one issued by a private lender but insured by the Federal Housing Administration) with a credit score as low as 580 if you can make a 3.5 percent down payment. And FHA loans are available to applicants with credit scores as low as 500 with a 10 percent down payment.⁴

Increase Your Credit Score

There's no quick fix for a low credit score, but the following steps will help you increase it over time.⁵

1. Make Payments on Time

At 35 percent, your payment history accounts for the largest portion of your credit score. Therefore, it's crucial to get caught up on any late payments and make all of your future payments on time.

If you have trouble remembering to pay your bills on time, set up payment reminders through your online banking platform, a free money management tool like Mint, or an app like BillMinder.

2. Avoid Applying for New Credit You Don't Need

New accounts will lower your average account age, which could negatively impact your length of credit history. Also, each time you apply for credit, it can result in a small decrease in your credit score.

The exception to this rule? If you don't have any credit cards—or any credit accounts at all—you should open an account to establish a credit history. Just be sure to use it responsibly and pay it off in full each month.

If you need to shop for a new credit account, for example, a car loan, be sure to complete your loan applications within a short period of time. FICO attempts to distinguish between a search for a single loan and applications to open several new lines of credit by the window of time during which inquiries occur.

3. Pay Down Credit Cards

When you pay off your credit cards and other revolving credit, you lower your amounts owed, or credit utilization ratio (ratio of account balances to credit limits). Some experts recommend starting with your highest-interest debt and paying it off first. Others suggest paying off your lowest balance first and then rolling that payment into your next-lowest balance to create momentum.

Whichever method you choose, the first step is to make a list of all of your credit card balances and then start tackling them one by one. Make the minimum payments on all of your cards except one. Pay as much as possible on that card until it's paid in full, then cross it off your list and move on to the next card.

4. Avoid Closing Old Accounts

Closing an old account will not remove it from your credit report. In fact, it can hurt your score, as it can raise your credit utilization ratio—since you'll have less available credit—and decrease your average length of credit history.

Similarly, paying off a collection account will not remove it from your report. It remains on your credit report for seven years, however, the negative impact on your score will decrease over time.

5. Correct Errors on Your Report

Mistakes or fraudulent activity can negatively impact your credit score. That's why it's a good idea to check your credit report at least once per year. The Federal Trade Commission has instructions on their website for disputing errors on your report.

While it may seem like a lot of effort to raise your credit score, your hard work will pay off in the long run. Not only will it help you qualify for a mortgage, a high credit score can help you secure a lower interest rate on car loans and credit cards, as well. You may even qualify for lower rates on insurance premiums.⁶

STEP 2: SAVE UP FOR A DOWN PAYMENT AND CLOSING COSTS

The next step in preparing for your home purchase is to save up for a down payment and closing costs.

Down Payment

When you purchase a home, you typically pay for a portion of it in cash (down payment) and take out a loan to cover the remaining balance (mortgage). 

Many first-time buyers wonder: How much do I need to save for a down payment? The answer is … it depends.

Generally speaking, the higher your down payment, the more money you will save on interest and fees. For example, you will qualify for a lower interest rate and avoid paying for mortgage insurance if your down payment is at least 20 percent of the property's purchase price. But what if you can't afford to put down 20 percent?

On a conventional loan, you will be required to purchase private mortgage insurance (PMI) if your down payment is less than 20 percent. PMI is insurance that compensates your lender if you default on your loan.⁷

PMI will cost you between 0.3 to 1.5 percent of the overall mortgage amount each year.⁸ So, on a $100,000 loan, you can expect to pay between $300 and $1500 per year for PMI until your mortgage balance falls below 80 percent of the appraised value.⁹ For a conventional mortgage with PMI, most lenders will accept a minimum down payment of five percent of the purchase price.⁷

If a five-percent down payment is still too high, an FHA-insured loan may be an option for you. Because they are guaranteed by the Federal Housing Administration, FHA loans only require a 3.5 percent down payment if your credit score is 580 or higher.⁷

The downside of getting an FHA loan? You'll be required to pay an upfront mortgage insurance premium (MIP) of 1.75 percent of the total loan amount, as well as an annual MIP of between 0.80 and 1.05 percent of your loan balance on a 30-year note. There are also certain limitations on the types of loans and properties that qualify.¹⁰

There are a variety of other government-sponsored programs created to assist home buyers, as well. For example, veterans and current members of the Armed Forces may qualify for a VA-backed loan requiring a $0 down payment.⁷ Consult a mortgage lender about what options are available to you.

Current Homeowners

If you're a current homeowner, you may have equity in your home that you can use toward your down payment on a new home. We can help you estimate your expected return after you sell your current home and pay back your existing mortgage. Contact us for a free evaluation!

Closing Costs

Closing costs should also be factored into your savings plan. These may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys and other fees associated with the purchase of your home. Closing costs vary but typically range between two to five percent of the purchase price.¹¹

If you don't have the funds to pay these outright at closing, you can often add them to your mortgage balance and pay them over time. However, this means you'll have a higher monthly payment and pay more over the long term because you'll pay interest on the fees.

STEP 3: ESTIMATE YOUR HOME PURCHASING POWER

Once you have the required credit score, savings for a down payment and a list of all your outstanding debt obligations via your credit report, you can assess whether you are ready and able to purchase a home.

It's important to have a sense of how much you can reasonably afford—and how much you'll be able to borrow—to see if homeownership is within reach.

Your debt-to-income (DTI) ratio is one of the main factors mortgage companies use to determine how much they are willing to lend you, and it can help you gauge whether or not your home purchasing goals are realistic given your current financial situation.

Your DTI ratio is essentially a comparison of your housing expenses and other debt versus your income. There are two different DTI ratios that lenders consider:

Front-End Ratio

Also called the housing ratio, this is the percentage of your income that would go toward housing expenses each month, including your mortgage payment, private mortgage insurance, property taxes, homeowner's insurance and association dues.¹²

To calculate your front-end DTI ratio, a lender will add up your expected housing expenses and divide it by your gross monthly income (income before taxes). The maximum front-end DTI ratio for most mortgages is 28 percent. For an FHA-backed loan, this ratio must not exceed 31 percent.¹³

Back-End Ratio

The back-end ratio takes into account all of your monthly debt obligations: your expected housing expenses PLUS credit card bills, car payments, child support or alimony, student loans and any other debt that shows up on your credit report.¹²

To calculate your back-end ratio, a lender will tabulate your expected housing expenses and other monthly debt payments and divide it by your gross monthly income (income before taxes). The maximum back-end DTI ratio for most mortgages is 36 percent. For an FHA-backed loan, this ratio must not exceed 41 percent.¹³

Home Affordability Calculator

To get a sense of how much home you can afford, visit the National Association of Realtors' free Home Affordability Calculator at https://www.realtor.com/mortgage/tools/affordability-calculator.

This handy tool will help you determine your home purchasing power depending on your location, annual income, monthly debt and down payment. It also offers a monthly mortgage breakdown that projects what you would pay each month in principal and interest, property taxes, and home insurance.

The Home Affordability Calculator defaults to a back-end DTI ratio of 36 percent. If the monthly cost estimate at that ratio is significantly higher than what you're currently paying for housing, you need to consider whether or not you can make up the difference each month in your budget.

If not, you may want to lower your target purchase price to a more conservative DTI ratio. The tool enables you to scroll through higher and lower price points to see the impact on your monthly payments so you can identify your ideal price point.

(Note: This tool only provides an estimate of your purchasing power. You will need to secure pre-approval from a mortgage lender to know your true mortgage approval amount and monthly payment projections.)

Can I Afford to Buy My Dream Home?

Once you have a sense of your purchasing power, it's time to find out which neighborhoods and types of homes you can afford. The best way to determine this is to contact a licensed real estate agent. We help homeowners like you every day and can send you a comprehensive list of homes within your budget that meet your specific needs.

If there are homes within your price range and target neighborhoods that meet your criteria—congratulations! It's time to begin your home search.

If not, you may need to continue saving up for a larger down payment … or adjust your search parameters to find homes that do fit within your budget. We can help you determine the right course for you.

START LAYING YOUR FOUNDATION TODAY

It's never too early to start preparing financially for a home purchase. These three steps will set you on the path toward homeownership … and a secure financial future!

And if you are ready to buy now but don't have a perfect credit score or a big down payment, don't get discouraged. There are resources and options available that might make it possible for you to buy a home sooner than you think. We can help.

Want to find out if you're ready to buy a house? Give us a call! We'll help you review your options, connect you with one of our trusted mortgage lenders, and help you determine the ideal time to begin your new home search.

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

Sources:

1. Quicken Loans Blog –
   https://www.quickenloans.com/blog/how-does-your-credit-score-affect-your-mortgage-eligibility
2. myFICO –
   https://www.myfico.com/credit-education/credit-report-credit-score-articles/
3. Bankrate –
   https://www.bankrate.com/mortgages/what-is-a-good-credit-score-to-buy-a-house/
4. Bankrate –
   https://www.bankrate.com/finance/mortgages/7-crucial-facts-about-fha-loans-1.aspx
5. myFICO –
   https://www.myfico.com/credit-education/improve-your-credit-score/
6. The Balance –
   https://www.thebalance.com/having-good-credit-score-960528
7. Bankrate –
   https://www.bankrate.com/mortgages/how-much-is-a-down-payment-on-a-house/
8. Bankrate –
   https://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx
9. Bankrate –
   https://www.bankrate.com/finance/mortgages/removing-private-mortgage-insurance.aspx
10. The Balance –
    https://www.thebalance.com/fha-home-loan-pitfalls-315673
11. Investopedia –
    https://www.investopedia.com/terms/c/closingcosts.asp
12. Bankrate –
    https://www.bankrate.com/finance/mortgages/why-debt-to-income-matters-in-mortgages-1.aspx
13. The Lenders Network –
    https://thelendersnetwork.com/fha-debt-to-income-ratio/

We frequently get questions from clients who are taking on decorating and remodeling projects and want to ensure their dollars are invested wisely.

Which looks will last for years to come, and which ones will feel dated quickly? What colors and styles are most popular among buyers in our area? How can I add the most value to my home?

So we've rounded up some of the hottest trends in home design to help guide you through the process. Whether you've planned a simple refresh or a full-scale renovation, making smart and informed design choices will help you maximize your return on investment … and minimize the chance of "remodeler's remorse" down the road.

WHAT'S HOT NOW

While 2017 was all about millennial pink, brass fixtures and bright white kitchens, this year we expect to see a move toward warmer, cozier elements throughout the home.

1. Warm Colors

A cool color scheme has dominated home design in recent years, but this year warm neutrals like brown and tan are back, along with rich jewel tones. While the pastel craze of last year is still hanging on, expect to see alternative color palettes featuring deep, saturated shades of red, yellow, green and navy. Grey will remain popular, but in warmer tones, often referred to as "greige."

2. Cozy Elements

Along with warmer colors, we can expect to see a shift from stark, modern design to cozier looks. Velvet upholstery, woven textures and natural elements, like wood and stone, will heat things up this year.

3. Mixed Metals

It used to be considered gauche to mix finishes, however the look of mixed metals will be very big in 2018. Brass will continue to trend, along with matte black and classics like polished chrome and brushed nickel.

4. Bold Patterns

Expect to see a lot of bright, bold patterns in the form of geometric shapes and graphic floral prints. These will be featured on everything from furniture to throw pillows to tile.

5. Natural Elements

Look for the use of natural elements throughout the home, including wood, stone, plants, flowers and grass. Botanical patterns will also be seen in prints, wallpaper and upholstery. Concrete accents will complement these additions in an effort to bring the essence of the outdoors inside the home.

6. Feature Walls

Also called an accent wall, a feature wall is one that exhibits a different color or design than the other walls in the room. Expect to see an increased use of feature walls showcasing rich paint colors, bold patterned wallpaper, and textures brought in through millwork and shiplap.

7. Statement Lighting

Lighting will take center stage with distinctive fixtures, including local artisan and vintage pendants and chandeliers. And smart lighting technology will enable homeowners to customize their lighting experience based on time of day, activity and mood.

8. Hardwood Floors

Hardwood floors will continue to dominate the market. The trend is toward either very dark stains paired with light-colored walls or light stains with darker walls. Greyish tones will remain popular, as will matte finishes, which are easier to maintain than high gloss. Expect to see frequent use of wider and longer wood planks, as well as distressed and wire-brushed finishes, which add texture and dimension.

9. Smart Homes

Everything is getting "smarter" in homes, from locks and lights to thermostats and appliances. And with devices like Google Home and Amazon Alexa, you can control many of these with voice activation from a central hub. We will see continued integration of and advancements in smart-home technology in 2018.

KITCHEN TRENDS

While white kitchens will remain popular in 2018, expect to see more color this year in everything from cabinets to tile to appliances.

1. Two-toned Cabinets

Two-toned cabinets are quickly overtaking the white-on-white look that has dominated kitchen design for the past few years. While white remains a classic, grey and bleached-wood cabinet variations are surging in popularity, along with darker neutrals like navy and green.

2. Quartz Countertops

Granite reigned as the top countertop choice for many years, but quartz is now king. It's highly durable, low-maintenance and comes in a wide variety of styles and colors. It's also heat resistant, scratch resistant and non-porous (unlike granite and marble) so it doesn't need to be sealed.

3. Bold Backsplashes

After years of dominating backsplash design, the white subway tile is officially on its way out. Expect to see it replaced with more elaborate shapes, patterns, colors and textures. Tile that mimics the appearance of wood, concrete and wallpaper is also gaining in popularity.

4. Statement Sinks

While stainless steel and white porcelain are always safe bets, the trend is moving toward sinks that make more of a statement. Look for unexpected pops of color and materials like natural stone and copper. Touch-free faucets are expected to gain favor with homeowners this year, too.

5. Brass is (Still) Back

Brass fixtures came back in a big way over the past couple of years and will continue to be a popular choice in 2018 along with matte black, black nickel, polished chrome and brushed nickel. Missing from the list? Rose gold, which is decidedly "out" this year.

6. Multi-purpose Islands

Kitchen islands have evolved from simple prep-stations into the "workhorse" of the kitchen. Many feature sinks, built-in appliances and under-counter storage while also serving as a casual dining area. They have become the focal point of the kitchen, and we expect to see more of them in 2018 and beyond.

7. Black Stainless Steel

Black stainless steel is the hot new finish option for appliances, and it's hitting the market in a big way. It offers a cutting-edge look and is easier to keep clean than traditional stainless steel. However, it's harder to match finishes amongst different brands, so it's probably only feasible as part of a complete appliance package.

8. Appliance Garages

Appliance garages are counter-level compartments designed to house small appliances like blenders, toasters and stand mixers. They make it convenient to have these items readily accessible, without the look of a cluttered counter.

BATH TRENDS

Expect to see many of the same kitchen design preferences carry over into bathrooms this year, including two-tone cabinets, quartz countertops and brass fixtures.

1. Neutral Tones

Neutral shades will continue to dominate in the master bathroom as homeowners seek a soothing and relaxing retreat atmosphere. But expect to see more options than just white. Shades of brown, grey, blue, green and tan will help to warm things up.

2. Natural Elements

Natural materials are particularly hot right now in bathroom design. This includes the use of wood and stone on walls, cabinets, counters and backsplashes, as well as the incorporation of botanical design elements.

3. Large Tiles

We expect to see a lot more large and slab-sized tiles in bathrooms, which have less grout so they are easier to clean and maintain. Wood-look porcelain tiles are also a favorite in wet areas, as they offer the warmth and rustic appeal of wood with the durability of tile.

4. Stone Sinks

Sinks will continue to be an area where homeowners like to exhibit creativity, and hand-carved stone sinks are especially fashionable right now. These may be more suited to powder rooms, where functionality isn't as crucial.

5. Freestanding Tubs

There's been a tub resurgence in bathroom design after years of preference for stand-alone showers. Modern tastes are gravitating toward freestanding tubs that serve as a showpiece for the bathroom.

6. Smart Features

Smart technology has entered the bathroom with the addition of features like wireless shower speakers and high-tech toilets, as well as digital shower controls that automatically adjust to your preferences in temperature and spray intensity.

OUR ADVICE

Style trends come and go, so don't invest in the latest look unless you love it. That said, highly-personalized or outdated style choices can limit the appeal of your property for resale.

For major renovation projects, it's always a good idea to stick to neutral colors and classic styles. It will give your remodel longevity and appeal to the greatest number of buyers when it comes time to sell. It will also give you flexibility to update your look in a few years without a total overhaul. Use non-permanent fixtures – like paint, furniture and accent pieces – to personalize the space and incorporate trendier choices.

If you'd like advice on a specific remodelling or design project, give us a call! We're happy to offer our insights and suggestions on how to maximize your return on investment and recommend local shops and service providers who may be able to assist you.

Sources:

1. Country Living –
   http://www.countryliving.com/home-design/decorating-ideas/g3988/kitchen-trends
2. Elle Decor –
   http://www.elledecor.com/design-decorate/trends/g14486069/kitchen-trends-2018/
3. Gates Interior Design –
   https://gatesinteriordesign.com/hottest-interior-design-trends-for-2018/
   https://gatesinteriordesign.com/biggest-kitchen-bath-trends-for-2018/
4. com –
   http://www.hgtv.com/design/rooms/kitchens/17-top-kitchen-design-trends-pictures
5. House Beautiful –
   http://www.housebeautiful.com/room-decorating/kitchens/g2664/kitchen-trends/
   http://www.housebeautiful.com/design-inspiration/g13938283/2018-decor-trends/
   http://www.housebeautiful.com/design-inspiration/g13820501/best-and-worst-decor-trends-from-2017/
6. Houzz –
   https://www.houzz.com/ideabooks/93399913/list/interior-design-trends-expected-to-take-hold-in-2018
7. Huffington Post – http://www.huffingtonpost.com.au/2017/09/25/the-kitchen-and-dining-trends-to-look-out-for-in-2018_a_23222693/
8. Kitchen and Bath Design News –
   http://www.kitchenbathdesign.com/123995/year-end-look-and-new-trends-for-2018/
9. com –
   https://www.msn.com/en-us/lifestyle/home-and-garden/12-flooring-trends-for-2018/ss-AAtp7QA
10. com –
    https://www.realtor.com/advice/home-improvement/interior-design-trends-to-ditch-2018/
    https://www.realtor.com/advice/home-improvement/hottest-interior-design-decor-trends-2018/?is_wp_site=1
11. Realty Times – http://realtytimes.com/advicefromagents/item/1007993-kitchen-design-trends-in-2018?rtmpage=MattLawler
12. Sebring Design Build –
    https://sebringdesignbuild.com/top-trends-in-bathroom-design/
13. The Flooring Girl –
    http://theflooringgirl.com/hardwood-flooring/hardwood-flooring-trends-2018/

Vogue –
https://www.vogue.com/article/interior-design-trends-according-to-expert-designers-decorators

As we head into a new year, the most common question we receive is, "What's the outlook for real estate in 2018?"

It's not just potential buyers and sellers who are curious; homeowners also want reassurance their home's value is going up. The good news is that a strong U.S. economy, coupled with low unemployment rates, is expected to drive continued real estate growth in 2018. However, changes on the horizon could significantly impact you if you plan to buy, sell or refinance this year.

HOME VALUES WILL CONTINUE TO RISE

Get ready for another strong year! U.S. home values and sales volume will continue to rise in 2018.

Experts agree that home prices will increase in 2018, but predict a slower rate of appreciation than 2017, which clocked in at nearly 7 percent nationwide. National Association of Realtors (NAR) Chief Economist Lawrence Yun predicts a growth rate this year of 5.5 percent,¹ while Freddie Mac's September Outlook Report forecasts a rate of 4.9 percent. Either way, all indicators point towards continued growth in 2018.²

What does it mean for you? If you're a current homeowner, congratulations! Real estate proves once again to be a solid investment over the long term. And if you're considering selling this year, there's never been a better time. Contact us to request a free Comparative Market Analysis to find out how much you can expect your home to sell for under current market conditions.

If you're in the market to buy this year, there's good news for you, too. Although prices continue to rise, the rate of appreciation has slowed. Still, don't wait any longer. Prices will continue to go up, so you'll pay more six months from now than you would today. Call us to setup a free, no-obligation property search and get notified about listings that meet your criteria as soon as (or before) they hit the market.

NEW CONSTRUCTION WILL MAKE REAL ESTATE MORE ACCESSIBLE

Lack of inventory in the housing market has been a primary impediment to homeownership for many Americans. "Ten years ago, the problem in the housing market was lack of buyers," says Yun. "Today, the problem is lack of sellers. Inventory levels are near historic lows."³

Yun also notes, "The lack of inventory has pushed up home prices by 48 percent from the low point in 2011, while wage growth over the same period has been only 15 percent. Despite improving confidence [in 2017] from renters that now is a good time to buy a home, the inability for them to do so is causing them to miss out on the significant wealth gains that homeowners have benefitted from through rising home values."¹

The good news? Yun expects a 9.4 percentage point increase in single-family new home construction starts.⁴

Economists at Freddie Mac make a similar prediction. "Existing home sales are unlikely to increase much going forward. Limited inventory will remain a consistent problem … Growth in home sales will be primarily driven by new home sales, which should continue to grind higher with single-family construction."²

Robert Dietz, chief economist at the National Association of Home Builders, agrees. "The markets that are going to grow are ones where builders can add that entry level product."⁵

What does it mean for you? If you've been frustrated by lack of inventory in the past, 2018 may bring new opportunities for you to find a budget-friendly home that suits your needs. Give us a call to discuss options for new construction in our area.

MILLENNIALS WILL MOVE TO THE SUBURBS

The new entry-level construction will come with a catch though … it will be located in the suburbs, where the availability of land and fewer zoning requirements make it more cost-effective to build. Economists predict that's where millennials and first-time buyers will flock for the greater variety of homes at affordable prices.⁶

Rising home prices, a sluggish job market, and an increase in student loan debt made homeownership largely unattainable for many millennials in past years. However, there's significant evidence that this trend is turning around. For the fourth year a row, the National Association of Realtors' 2017 Home Buyer and Seller Generational Trends survey found that millennials were the largest group of homebuyers.⁷

As millennials age, they are settling down and having families, which has prompted an increasing demand for larger but affordable homes. Thus, many are flocking to the suburbs, with 57 percent of millennial buyers opting for a suburban location.

What does it mean for you? If you're a millennial who has been priced out of urban living, or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs.

And if you're a suburban homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this growing market segment!

BOOMERANG BUYERS WILL RETURN TO THE MARKET

"Boomerang buyers" comprise the nearly 10 million Americans who lost their homes to foreclosure or short sales during the housing recession of 2006 to 2014.

According to MyFico.com, a foreclosure remains on a credit report for seven years. It takes many boomerang buyers at least that long to raise their credit score and save up enough cash to qualify for a new mortgage.⁸

With this "seven-year window" in mind, RealtyTrac predicts that the largest wave of boomerang buyers – more than 1.3 million – will be eligible to re-enter the housing market in 2018.⁹

Markets likely to see the highest influx of boomerang buyers are those that had a high percentage of foreclosures AND have remained affordable. The majority of boomerang buyers are middle-class Gen Xers or Baby Boomers. Expect to see even more competition for entry-level homes in those markets.

What does it mean for you? If you're a boomerang buyer, we understand your unique circumstances. We can help you navigate the real estate process and write competitive offers that will play to your strengths. Contact us to discuss your options.

NEW TAX LEGISLATION WILL IMPACT HOMEOWNER DEDUCTIONS

The "Tax Cuts and Jobs Act" passed at the end of 2017 nearly doubles the standard deduction, so far fewer Americans are expected to itemize this year. For those who do, however, it could mean less homeowner deductions are available than in the past.

Previously, homeowners could deduct interest paid on the first $1 million of mortgage debt, but that threshold has been lowered to $750,000 for new mortgages. (Existing mortgages will not be impacted.)

Additionally, taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes. The new legislation restricts this deduction to $10,000. It also eliminates the deduction for moving expenses (except for members of the Armed Forces) and interest on home equity loans unless the proceeds are used to substantially improve the residence.¹⁰

It's yet to be seen how the tax bill will impact the real estate market overall. While some economists predict a price reduction in certain markets, Republican lawmakers project the bill will increase take-home pay and stimulate the economy overall. According to Realtor.com Senior Economist Joseph Kirchner, "Some house hunters—particularly wealthy buyers—will see an increase in after-tax income, making an already tough housing market even more competitive. This increased demand could drive prices up even higher than they are already."¹¹

What does it mean for you? If you're an existing homeowner, be sure to consult a tax professional if you're concerned about the impact the new tax bill could have on you.

And if you're planning to buy or sell this year, we can help you determine how the tax bill could affect demand in your current or target neighborhood and price range.

INTEREST RATES WILL RISE

No one knows exactly what will happen with mortgage rates this year, but the Mortgage Bankers Association anticipates the Federal Reserve will raise rates three times in 2018, with Freddie Mac's 30-year fixed rate mortgage reaching 4.8 percent by the end of Q4, up from around 4 percent at the end of 2017.¹²

Kiplinger.com Economist David Payne also predicts interests rates will rise this year, with short-term rates outpacing long-term rates as the Fed aims to curb inflation in a tightening job market. He predicts the bank prime rate that home equity loans are based on will increase from 4.25 percent to 5 percent by the end of 2018. ¹³

What does it mean for you? If you're in the market to buy, act now. Rising interest rates will decrease your purchasing power, so act quickly before interest rates go up. Give us a call today to get your home search started.

And if you're a current homeowner who is considering refinancing or a home equity loan, don't wait. We can help you estimate your property's fair market value so you'll be prepared before contacting a lender.

WE'RE HERE TO HELP

While national real estate numbers and predictions can provide a "big-picture" outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market, and the local issues that are likely to drive home values in your particular neighborhood. If you have specific questions, or would like more information about where we see real estate headed in our area, please give us a call! We'd love to discuss how issues here at home are likely to impact your desire to buy or a sell a home this year.

Sources:

1. Inman News –
   https://www.inman.com/2017/11/03/what-to-expect-from-the-2018-housing-market/
2. Freddie Mac September Outlook Report –
   http://www.freddiemac.com/research/outlook/20170921_looking_ahead_to_2018.html
3. org –
   https://www.marketplace.org/2017/07/05/economy/tight-inventory-slows-housing-market-down-0
4. National Association of Realtors Press Release –
   https://www.prnewswire.com/news-releases/existing-home-sales-to-grow-37-percent-in-2018-but-inventory-shortages-and-tax-reform-effects-loom-300549447.html
5. Fox Business News –
   http://www.foxbusiness.com/features/2017/11/27/entry-level-buyers-drive-solid-new-home-sales.html
6. Zillow Research –
   https://www.zillow.com/research/2018-predictions-17217/
7. National Association of Realtors' Home Buyer and Seller Generational Trends Report –
   https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends
8. com -
   https://www.myfico.com/crediteducation/questions/foreclosure-fico-score-affect.aspx
9. RealtyTrac -
   http://www.realtytrac.com/news/foreclosure-trends/boomerang-buyers/
10. National Association of Realtors -
    https://www.nar.realtor/taxes/tax-reform/the-tax-cuts-and-jobs-act-what-it-means-for-homeowners-and-real-estate-professionals
11. com -
    https://www.realtor.com/news/real-estate-news/tax-cuts-survey/
12. Mortgage Bankers Association Economic Forecast –
    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
13. Kiplinger Economic Forecast –
    https://www.kiplinger.com/article/business/T019-C000-S010-interest-rate-forecast.html#iOf4mkSFvvTmi2wr.99

INTRODUCTION

Turn on the television or scroll through Facebook, and chances are you'll see at least one advertisement for a group or "guru" who promises to teach you how to "get rich quick" through real estate investing. The truth is, much of what they're selling are high-risk tactics that aren't a good fit for the average investor. However, there is a way to make steady, predictable, low-risk income through real estate investing. In this blog post, we'll examine the tried-and-true tactics that can be used to increase your income, pay off debt … even fund your retirement!

WHY INVEST IN REAL ESTATE?

One of the basic principles of real estate investment lies in this fact: everyone needs a place to live. And according to the Bureau of Labor Statistics' most recent Consumer Expenditures Survey, housing is typically an American's largest expense.¹

But there are other reasons why real estate is a great investment choice, and we've outlined the top five below:

1. Appreciation

Appreciation is the increase in your property's value over time. History has proven that over an extended period of time, the value of real estate continues to rise. That doesn't mean recessions won't occur. The real estate market is cyclical, and market ups and downs are natural. In fact, the U.S. housing market took a sharp downturn in 2008, and many properties took several years to recover their value. However, in the vast majority of markets, the value of real estate does grow over the long term.

The S&P CoreLogic Case-Shiller National Home Price Index, which tracks U.S. residential real estate prices, released its latest results on August 29 with the headline "National Home Price Index Rises Again to All Time High."²

While no investment is without risk, real estate has proven again and again to be a solid choice to invest your money over the long term.

2. Hedge Against Inflation

Inflation is the rate at which the general cost of goods and services rises. As inflation rises, prices go up. This means the money you have in your bank account is essentially worth less because your purchasing power has decreased.

Luckily, real estate prices also rise when inflation increases. That means any money you have invested in real estate will rise with (or often exceed) the rate of inflation. Therefore, real estate is a smart place to put your money to guard against inflation.

3. Cash Flow

One of the big benefits of investing in real estate over the stock market is its ability to provide a fairly steady and predictable monthly cash flow. That is, if you choose to rent out your investment property to a tenant, you can expect to receive a rent payment each month.

If you've invested wisely, the rent payment should cover the debt obligation you may have on the property (i.e. mortgage), as well as any repairs and maintenance that are needed. Ideally, the monthly rental income would be great enough to leave you a little extra cash each month, as well. You could use that extra money to pay off the mortgage faster, cover your own household expenses, or save for another investment property.

Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase, until you own the property free and clear … leaving you with residual cash flow for years to come.

As the owner, you will also benefit from the property's appreciation when it comes time to sell. This can be a great way to save for retirement or even fund a child's college education. Purchase a property when the child is young, and with a little discipline, it can be paid off by the time they are ready to go to college. You can sell it for a lump sum, or use the monthly income to pay their tuition and expenses.

4. Leverage

One of the unique features that sets real estate apart from other asset classes is the ability to leverage your investment. Leverage is the use of borrowed capital to increase the potential return of an investment.

For example, if you purchase an investment property for $100,000, you might put 10% down ($10,000) and borrow the remaining $90,000 in the form of a mortgage.

Even though you've only invested $10,000 at this point, you have the ability to earn a profit on the entire $100,000 investment. So, if the property appreciates to $120,000 – a 20% increase over the purchase price – you still only have to pay the bank back the original $90,000 (plus interest) … and you get to keep the $20,000 profit.

That means you made $20,000 off of a $10,000 investment, essentially doubling your money, even though the market only went up by 20%! That's the power of leverage.

5. Tax Advantages

One of the top reasons to invest in real estate is the tax benefit. There are numerous ways a real estate investment can save you money each year on taxes:

Depreciation

When you record your income from a rental property on your annual tax return, you get to deduct any expenses associated with the investment. This includes interest paid on the mortgage, maintenance, repairs and improvements, but it also includes something called depreciation.

Depreciation is the theoretical loss your property suffers each year due to aging. While it's true that as a home ages it will structurally need repairs and systems will eventually need to be replaced, we've also learned in this post that the value of real estate appreciates over time. So getting to claim a "loss" on your investment that is actually gaining in value makes real estate an appealing investment choice.

Serial Home Selling

Even if you're not interested in owning a rental property, other types of real estate investments offer tax advantages, as well. Generally, when you own an investment property you pay a capital gains tax on any profits you make when you sell the property.

However, when you sell your principal residence, you are exempt from paying taxes on capital gains (up to $250,000 for singles and $500,000 for couples). The Internal Revenue Service (IRS) only requires that you live in the house for two of the previous five years. That means you can purchase an investment property, live in it while you remodel it, and then sell it for a tax-free profit two years later. This can be a great way to get started in real estate investing.

Section 1031 Exchanges

In addition to profiting off of your personal residence tax free, it is possible to sell an investment property tax free if you do it through a 1031 Exchange. If structured properly, the IRS Tax Code enables an investor to sell a property and reinvest the proceeds in a new property while deferring all capital gains taxes.

Tax-Deferred Retirement Account

It's a common misconception that you can only purchase financial instruments (i.e. stocks, bonds, mutual funds, etc.) through an Individual Retirement Account (IRA) or 401(k). In actuality, the IRS allows individuals to invest retirement funds in real estate and other alternative types of investments, as well. By purchasing your investment property through an IRA, you can take advantage of all of the tax savings these accounts offer.

Be sure to consult a tax professional regarding all tax matters related to your real estate investments. If structured correctly, the profits you earn on your real estate investments can be largely shielded from tax liability. Just another reason to choose real estate as your preferred investment vehicle.

TYPES OF REAL ESTATE INVESTMENTS

While there are numerous ways to invest in real estate, we're going to focus on three primary ways average investors earn money through real estate. We touched on several of these already in the previous section.

1. Remodel and Resell

HGTV has countless "reality" shows featuring property flippers who make this investment strategy look easy. Commonly referred to as a "Fix and Flip," investors purchase a property with the intention of remodeling it in a short period of time, with the hope of selling it quickly for a profit.

This is a higher-risk tactic, and one for which many of the real estate "gurus" we talked about earlier claim to have the magic formula. They promise huge profits in a short amount of time. But investors need to understand the risks involved, and be prepared financially to cover additional expenses that may arise.

Luckily, an experienced real estate agent can help you identify properties that may be good candidates for this type of investment strategy… and help you avoid some of the pitfalls that could derail your plans.

2. Traditional Rental

One of the more conservative choices for investing in real estate is to purchase a rental property. The appeal of a rental property is that you can generate cash flow to cover the expenses, while taking advantage of the property's long-term appreciation in value, and the tax benefits of investing in real estate. It's a win-win, and a great way for first-time investors to get started.

And according to the U.S. Bureau of Labor Statistics, rents for primary residences have increased 21.9 percent between 2007 and 2015 as demand for rental units continues to grow.¹

3. Short-term Rental

With the huge movement toward a "sharing economy," platforms that facilitate short-term rentals, like Airbnb and HomeAway, are booming. Their popularity has spurred a growing trend toward dual-purpose vacation homes, which owners use themselves part of the year, and rent out the remainder of the time. There are also a growing number of investors purchasing single-family homes for the sole purpose of leasing them on these sites.

Short-term rentals offer several benefits over traditional rentals, which many investors find attractive, including flexibility and higher profit margins. However, the most profitable properties are strategically located near popular tourist destinations. You'll need an experienced real estate professional to help you identify the right property if you want to be successful in this highly-competitive market.

DOES REAL ESTATE INVESTING SOUND TOO GOOD TO BE TRUE?

We've all heard stories, or maybe even know someone, who struck it rich with a well-timed real estate purchase. However, just like any investment strategy, a high potential for earnings often goes hand-in-hand with an increase in risk. Still, there's substantial evidence that a well-executed real estate investment can be one of the best choices for your money.

Purchasing a home to remodel and resell can be highly profitable, as long as you have a trusted team in place to complete the remodel quickly and within budget … and the financial means to carry the property for a few extra months if delays occur.

Or, if you buy a house for appreciation and cash flow, you can ride through the market ups and downs without stress because you know your property value is bound to increase over time, and your expenses are covered by your rental income.

In either scenario, make sure you're working with a real estate agent who has knowledge of the investment market and can guide you through the process. While no investment is without risk, a conservative and well-planned investment in real estate can supplement your income and set you up for future financial security.

If you are considering an investment in real estate, please contact us to set up a free consultation. We have experience working with all types of investors and can help you determine the best strategy to meet your investment goals.

Sources:

1. Bureau of Labor Statistics Consumer Expenditure Survey Annual Report – https://www.bls.gov/opub/reports/consumer-expenditures/2015/home.htm
2. S&P Dow Jones Indices Press Release –
   https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/574349_cshomeprice-release-0829.pdf?force_download=true
3. Durden, T. (2016 November 29). US Home Prices Rise Above July 2006 Levels, Hit New Record High [blog post] ZeroHedge –
   http://www.zerohedge.com/news/2016-11-29/us-home-prices-rise-above-july-2006-levels-hit-new-record-high