9 Inspiring Ways to Make the Most of a Walk-Up Attic

Finding a home with a walk-up attic can feel a little bit like discovering gold. Why? Because it’s a valuable asset that opens up a wealth of opportunities.

Even if you don’t think you need the room in the near future, it’s nice to know that looming, just above your head, is an area beckoning to be transformed.

Don’t be put off by the vaulted ceilings, there are plenty of clever work-arounds.

Wondering how you can make the most of your walk-up attic? Take a look and get inspired.

1. Home office

Whether you work from home or just want a quiet spot to return emails or take a call, your attic can become the private office you need to be productive.

2. Bedroom

A bedroom on a separate floor can feel like a stunning retreat. A sanctuary, if you will. If there’s room for a bathroom, even better.

Adults aren’t the only ones who like an attic retreat! Kids can also love having a room that’s got some quirky angles!

3. Walk-in closet

Attics are known for their storage capabilities, but why not enhance this area so it feels like a boutique? Getting dressed in an elegant space may quickly become your favorite part of the day.

4. Playroom

If stuffed animals and toys have taken over the other rooms of your home, why not relegate them to one out-of-the-way space? Consider putting safety bars on the windows for peace of mind, and a video monitor for those moments when you need to leave the room.

5. Home theater

Grab a bowl of popcorn and queue up your favorite film in your home theater.

6. Music studio

Instead of the traditional garage band, lay down those tracks or create a symphony of sound in your attic music studio.

7. Game room

Pool, ping-pong, pinball? The possibilities for your attic game room are endless.

8. Gym

You can’t beat the convenience of a home gym. From cardio and weight training to your very own yoga studio, find the fitness routine you enjoy and build it out.

9. Workshop

Have a hobby that’s outgrown your lower levels? An attic workshop lets you enjoy your craft with room to spare.

Homeowner Wealth Increases Through Growing Equity This Year

Building financial wealth and stability remains one of the top reasons Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the Urban Institute, Home Ownership is Affordable Housing, author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments:

“The principal portion that reduces the loan balance builds the homeowner’s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.”

But home equity – the difference between the value of your home and what you currently owe – isn’t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth.

As Freddie Mac explains:

“Homeownership has cemented its role as part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This ‘wealth’ is built, in large part, through the creation of equity…Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

Homeowners Continue To See Equity Increase

CoreLogic recently published their latest Homeowner Equity Insights Report, and it shows continued growth in equity amidst record home price appreciation. The report provides several key takeaways, all of which point to rising wealth for homeowners:

1. The average equity gain of mortgaged homes during the past year was $33,400

2. The current average equity of mortgaged homes is greater than $216,000

3. There was a 6% increase in total homeowner equity over the past year

4. Total U.S. homeowner equity has reached nearly $1.9 trillion

Here, you can see the equity gains by state:

Equity Provides Homeowners with Flexibility

In addition to being a critical tool in building wealth, a homeowner’s equity also provides significant flexibility. When you sell your house, the accumulated equity comes back to you in the sale. Recent increases in home equity coupled with record-low mortgage rates mean it could be the perfect time for homeowners looking to make a move.

Mark Fleming, Chief Economist at First American, notes:

“Existing homeowners today are sitting on record amounts of equity. As homeowners gain equity in their homes, the temptation grows to list their current home for sale and use the equity to purchase a larger or more attractive home.”

Increasing equity also helps families facing challenges brought on by the pandemic. Frank Martell, President and CEO of CoreLogic, explains in the recent Homeowner Equity Insights Report:

“Homeowner equity has more than doubled over the past decade and become a crucial buffer for many weathering the challenges of the pandemic. These gains have become an important financial tool and boosted consumer confidence in the U.S. housing market, especially for older homeowners and baby boomers who’ve experienced years of price appreciation.”

Bottom Line

Home equity has always been a powerful wealth-building tool, and homeowners continue to see their financial stability increase. Let’s connect today so you can better understand how much equity you have in your current home or if you’re ready to take the next step in building your savings as a homeowner.

Before Giving Up on Buying a House, Do These 5 Things First

It’s common for people who are dreaming of owning their own home to feel like they couldn’t possibly make it a reality.

Maybe you feel like you can’t qualify for a mortgage, or you’re concerned about having enough of a down payment. Perhaps the market seems too competitive and you won’t stand a chance at getting the house you want. Or, maybe you feel like you can’t even find a house you want in your price range. So, why even try…

Well, the good news is, whatever’s holding you back might not be as much of an issue as you think it is.

So before you give up on buying a home, do these five things first:

1. Look up buying assistance programs

Believe it or not, there are literally thousands of homeownership assistance programs out there — some at the federal level, others at the state level, and some that come from non-profit enterprises. A great place to start is the federal government’s site, but even a simple google search of your state can return some results. So don’t count yourself out just yet, there are programs that might be able to help.

2. Expand your radius

Of course, the most sought-after neighborhoods are likely to be priced in line with the demand. That said, if your goal is to own a home, and you’re not focused on a narrow location, there are likely to be plenty of opportunities, especially if you’re willing to be flexible. Expand your search area to include other towns, and if you’re really open-minded, other states. This will, of course, depend on your job and your family commitments, but don’t pigeonhole yourself into one area, as you’ll limit your opportunities.

3. Review all available down payment options

Down payments often come from personal savings, but that’s not the only place they can come from. The government and lenders want people to own homes, so there’s usually some flexibility on where you can get money to put down on a home. Of course, you should ask your mortgage lender about the acceptable sources, but gift funds, money drawn from your retirement accounts, and even the cash value of an insurance policy are all possible sources that can be utilized to get into your dream home.

4. Review your credit report

If your credit score is preventing you from buying a home, don’t give up hope just yet. You should carefully review the report, look for any potential discrepancies, and dispute anything that you believe might have been reported incorrectly. This process won’t happen overnight, and will take some commitment and legwork on your part, but the time investment is likely to pay dividends if it means that you can get your report corrected and put yourself on the path to homeownership.

5. Get in touch with an agent

Oftentimes, searching for houses online isn’t enough to get a full understanding of what’s possible. Before you assume that there’s nothing out there for you, get in touch with a real estate agent and talk about the possibilities. In many cases, an agent will know exactly what might be a good fit for you. And if not, an agent can at least point you in the right direction, and work with you to get yourself ready to buy. In any case, don’t hesitate to reach out to one, you might just find out you’re in a better position than you expected.

The Bedroom Updates You Need To Make Before Selling Your Home

Before you list your home, you’ll want to tackle any updates, changes, or improvements that will help your home sell faster and for a higher profit—and that includes in the bedroom.

But when it comes to making your bedrooms more appealing to buyers, what updates should you make?

A recent article from realtor.com outlined bedroom improvements that can help your home sell more quickly and profitably, including:

• Clean out your closets. Closet space can be a huge selling point for buyers. But the more clothing, shoes, and other items you have in your bedroom closet, the more cluttered they’ll look—and the less attractive the space will be to prospective buyers. Before you start showing your home, take the time to declutter, clean, and organize your closet.

• Switch bold colors for a more neutral palette. Bold colors can be polarizing; while you may love your fuschia accent wall, it could turn off potential buyers that aren’t big fans of bright pink. If you have any bold walls in your bedroom, take the time to repaint before you sell—and repaint with a more neutral, universally appealing color (for example, off-white or gray).

• Remove personal touches. When you’re living in your bedroom, it makes sense to surround yourself with personal touches, like wedding photos, a banner from your alma mater, or pictures of your kids. But personal effects can make it hard for potential buyers to envision themselves in the space—so before you start showing your home, make sure to remove any personal photos or effects and replace them with more neutral alternatives (for example, a landscape painting).

10 Movie Characters Who Would Make Excellent Real Estate Agents

Real estate agents aren’t known for being boring. While they have all sorts of personalities, most of them are (at a minimum) unique, and are often charming, energetic, and occasionally quirky. To put it another way: they would make perfect movie characters!

But what if the opposite is true? Which movie characters would make excellent real estate agents? If we don’t count the characters who already are agents (like Annette Bening’s materialistic Carolyn Burnham in American Beauty), there’s quite a long list of those who would fight tooth and nail to get their clients the best deals.

Here are ten movie characters who would make fantastic real estate agents:

1. Elle Woods

She can do anything she puts her mind to, whether it’s finishing law school or moving heaven and earth to find her buyers their dream home.

2. Tony Stark

A little on the flashy side, Tony would spend an afternoon developing an algorithm to give his clients a competitive edge.

3. Alfred from Batman

A true servant, Alfred would not only stay attuned to his client’s needs, he’d also do it with class and a touch of humor.

4. Dr. John Hammond from Jurassic Park

Dr. Hammond is a dreamer, and he can inspire you to think big, whether it’s finding the perfect suburban house, or trying to buy a private island in the middle of nowhere for his next “project.”

5. Ellen Ripley from Aliens

Ripley isn’t scared of anything, and that includes xenomorphs with acid in their blood and making a bid on a competitive property. You definitely want her on your side of the transaction though.

6. Erin Brockovich

Erin doesn’t come from money, but she’ll fight for what’s right and to get the best deal, all while maintaining her integrity, her honesty, and an aggressive (but unbelievably charming) attitude.

7. Rocky Balboa

Rocky is the perfect agent to have on your side in a competitive market. No matter how many deals you lose out on, he’ll inspire you to get back out there and try just one more time.

8. Princess Leia

She might be royalty, but Leia is a woman of the people, and as an agent, she’ll not only represent your best interests, she’ll lead an army on your behalf, (if she has to).

9. Clarice Starling

A bit on the serious side, Clarice is a professional through and through. You can expect her to work hard, and to keep an eye out for anyone who might wish to do you harm.

10. Marty McFly

Okay, he might be a bit high-strung at times, but you can’t deny his charisma and charm. Marty will do his best for you, and if you lose the bid, you can always hop in his time machine and try again.

If you’re ready to stop watching movies and start looking for your next home, don’t hesitate to get in touch. Real life might not always be as exciting, but there’s no place like home.

The Right Expert Will Guide You Through This Unprecedented Market

The Right Expert Will Guide You Through This Unprecedented Market

In a normal market, it’s good to have an experienced guide coaching you through the process of buying or selling a home. That person can advise you on important things like pricing your home correctly or the first steps to take when you’re ready to buy. However, the market we’re in today is far from normal. As a result, an expert isn’t just good to have by your side – an expert is essential.

Today’s housing market is full of extremes. Mortgage rates hovering near record-lows are driving high buyer demand. On the other hand, an absence of sellers is creating record-low housing inventory. This imbalance in supply and demand is leading to a skyrocketing rate of bidding wars and more houses selling over their asking price. This is driving home price appreciation and gains in home equity. These market conditions aren’t just extreme – they can be overwhelming. Having a trusted expert to coach you through the process of buying and selling a home gives you clarity, confidence, and success through each step.

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

• Contracts – We help with the disclosures and contracts necessary in today’s heavily regulated environment.

• Experience – We’re well-versed in real estate and experienced with the entire sales process, including how it’s changed over the past year.

• Negotiations – We act as a buffer in negotiations with all parties throughout the entire transaction while advocating for your best interests.

• Education – We simply and effectively explain today’s market conditions and decipher what they mean for your individual goals.

• Pricing – We help you understand today’s real estate values when setting the price of your home or making an offer to purchase one.

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

So, how do you choose the right expert?

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

Bottom Line

It’s crucial right now to work with a real estate expert who understands how the market is changing and what that means for home buyers and sellers. If you’re planning to make a move this year, let’s connect so you have someone who can answer your questions, give you the best advice, and guide you along the way.

8 Bad Reasons for Not Making an Offer on a House You Like

Buying a home can be a nerve-racking experience, no matter what price range you’re in. Spending (or borrowing) hundreds of thousands of dollars, uprooting all of your belongings, and stepping into the semi-unknown can stress even the most level headed people, causing second thoughts and doubts.

There are plenty of legitimate reasons not to make an offer on a house, like: structural issues, it’s over your budget, or the location isn’t ideal, to name a few.

But, not all doubts are created equal. And sometimes we mistake trivial concerns for real ones, creating reasons not to buy a house that shouldn’t be there.

Here are eight bad reasons for not making an offer on a house:

1. Because you want to wait and see if the price goes down

A wait-and-see approach is much more likely to end with someone else buying the house before you get a chance to. If you like it, there’s a high likelihood that someone else likes it too. Even if a house you like is overpriced, you’re better off making an offer and negotiating, than simply waiting for the owner to lower their price.

2. Because one of your friends doesn’t like it

People’s opinions can impact us a lot. But when it comes to homeownership, you shouldn’t necessarily listen to what your friends think. After all, you’re the one who’s going to have to live there… so if you like it, go for it!

3. Because the listing sites have a price estimate that’s different from what the seller is asking

Some listing sites provide an approximate estimate of what a home is worth. But keep in mind that these are based on algorithms and publicly available data, not an in-person inspection and analysis of value. So, take them with a grain of salt, not as gospel.

4. Because you don’t like the light fixtures (or something else that’s easy to fix)

Small cosmetic defects can make a huge visual impact, but always try to focus on the big things, and not on things that are easy to change or fix. Items like light fixtures, paint color, and decor are easy to fix, so try and see past even the worst of taste.

5. Because you think mortgage rates will continue to fall

It can be tempting to try to “wait out” the interest rate market, but it’s a fool’s errand. If you knew where rates were going, you’d be a billionaire sitting on the beach somewhere. If you can afford the payment, don’t try to squeeze out an extra quarter of a percent by waiting — they might just go in the other direction.

6. Because there are already other bids

In a competitive market, or on a nice-enough house, there are likely to be other bids, and sometimes more than just a few. Don’t let this deter you from making an offer though; you have as good a chance as anyone else, so just give it your best shot!

7. Because you’re afraid that the process will be too complicated

Buying a home is a bit complicated. There’s a lot more to it than the average person ever knows. But, as long as you work with a great agent, the process shouldn’t be all that complicated for you. Most of that stuff goes on behind the scenes.

8. Because you want to wait for the “perfect” time to buy

The “perfect” time to buy is when you want to or need to move. Timing the market is almost impossible to pull off. Usually, if the market does go down considerably, there are other factors at play that may get in your way of buying at that time anyway, whether it be interest rates, ease of getting a loan, or the overall economy and employment.

Owning a Home Has Distinct Financial Benefits Over Renting

Some Highlights

• When you rent, you build your landlord’s wealth, your monthly payment depends on ever-rising rents, and you don’t benefit from home price appreciation.

• On the other hand, when you own your home, you build your own wealth, your monthly payment is locked in, and you benefit directly from home price appreciation.

• If you’re feeling the challenges of a competitive market, remember that homeownership is a long-term game. Persevering today will lead to financial rewards in the future.

9 Surefire Signs You’ve Outgrown Your Home

When you first moved into your house, you probably felt like the king or queen of your castle. But over time, as you began to accumulate everything from furnishings and appliances to children and pets, your home may seem to have shrunk.

While the square footage hasn’t changed, your living space has likely undergone a significant downsizing with so many other people and things fighting for house room.

Wondering if there’s a move in your immediate future? Check out these 9 signs you’ve outgrown your home.

1. Your stairs double as shelving.

If you’re lacking counter or drawer space, you may resort to using your staircase as a place to stash everything from toys and shoes to books and junk mail. While it’s tempting to take advantage of this otherwise-wasted area, you’re increasing your chances of falling — especially when you’re in a hurry. Don’t do it!

2. You’re forced to host your Super Bowl party in shifts.

Sure, it’d be nice to have all your friends over for a visit at the same time, but there’s nowhere to sit and soon it’s louder than a Rage Against the Machine concert. In other words, it’s not pleasant for anyone. Don’t lose half your friends just because you can’t fit them in your place.

3. The line for your toilet reminds you of Lollapalooza.

Anyone with a family and one bathroom will tell you the whole situation stinks. (Pun intended.) Especially as kids approach their teen years and showering is no longer considered a punishment, needing another bathroom becomes imperative.

4. You think of your car as a closet on wheels.

Short on closet space? It can force you to get creative. But keeping your toiletries and shoes in your car is no way to live. If you’ve gone out to your mini-van in pajamas in search of more toothpaste, it’s time to start looking for a new home (with plenty of closets!).

5. Sending the kids to a boarding preschool is sounding better and better.

Sure, you’ll miss the little guys, but, hey, you’ll see them at the holidays, right? Just make sure they take all their toys, games, and stuffed animals with them.

6. When you hear friends are visiting from out of town, you feel faint.

Though you may not have considered yourself claustrophobic in the past, if the thought of more people staying under your roof makes you woozy, it’s probably time for a bigger place.

7. You’ve begun to envy your pooch’s luxurious accommodations.

Maybe being “in the doghouse” isn’t that bad after all. If your dog looks more comfortable than you do, you’ve got an issue.

8. Your home’s endearing features are losing their charm.

What you once thought of as clever and quirky, now just seems flat out annoying. Murphy beds, we’re looking at you.

9. You’ll go anywhere… but home.

Lingering longer at the gym? Last one to leave the office? Letting friends and family know you’re available for Thanksgiving when it’s only August? If you’ll do anything to avoid going back to your cramped abode, it’s time to pack up and move along.

5 Things Homebuyers Need To Know When Making an Offer

When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.

1. Know Your Numbers

Having a complete understanding of your budget and how much house you can afford is essential. That’s why you should connect with a lender to get pre-approved for a loan early in the homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war.

2. Brace for a Fast Pace

Today’s market is dynamic and fast-paced. According to the Realtors Confidence Index from the National Association of Realtors (NAR), the average home is on the market for just 17 days – that means from start to finish, a house for sale in today’s climate is active for roughly 2.5 weeks. A skilled agent will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible.

3. Lean on a Real Estate Professional

While homebuying may seem like a whirlwind process to you, local real estate agents do this every day, and we know what works. That expertise can be used to give you a significant leg up on your competition. An agent can help you consider what levers you can pull that might be enticing to a seller, like:

• Offering flexible rent-back options to give the seller more time to move out

• Your ability to do a quick close or make an offer that’s not contingent on the sale of your current home

It may seem simple, but catering to what a seller may need can help your offer stand out.

4. Make a Strong, but Fair Offer

Let’s face it – we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to Lawrence Yun, Chief Economist at NAR:

“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”

In such a competitive market, emotions and prices can run high. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.

5. Be a Flexible Negotiator

If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego. Freddie Mac explains:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Let’s connect so you have expert advice on this step in the homebuying process to put your best offer on the table.

3 Ways You’ll Win When You Buy a Home This Year

There are so many great reasons to purchase a home, and over the past year, we’ve realized more of them than we ever thought possible. If you’re a first-time homebuyer, having a home of your own can give you a greater sense of security and accomplishment in a time that’s largely uncertain. If you’re a repeat buyer looking for your dream home, making a move might give you the space or features you need to find greater success and happiness in a new normal way of life. Whatever your motivations are, here are three reasons why becoming a homeowner now may help you win big in the long run.

1. Buying a Home Is a Great Investment

Several recent reports indicate that real estate is still a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps you build equity, a type of forced savings that grows your net worth. According to the latest Equity Report from ATTOM Data Solutions:

“The count of equity-rich properties in the fourth quarter of 2020 represented 30.2 percent, or about one in three, of the 59 million mortgaged homes in the United States. That was up from 28.3 percent in the third quarter of 2020, 27.5 percent in the second quarter and 26.7 percent in the fourth quarter of 2019, despite the ongoing economic damage caused by the worldwide Coronavirus pandemic.”

2. Mortgage Interest Rates Are Low

The Primary Mortgage Market Survey from Freddie Mac indicates interest rates for a 30-year mortgage have fallen since November 2018 when they hit 4.94%. In their latest forecast, Freddie Mac expects rates to remain low, leveling out to an average of 2.9% in 2021.

When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to likely get more house for your money.

3. Investing in Your Future Pays Off

There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. What many renters don’t realize, though, is the financial power of equity.

As a homeowner, your monthly mortgage payment becomes a form of ‘forced savings’ you can reinvest later in life as you see fit. You can use it in a variety of ways, like to fund a loved one’s education, move up to a bigger home, or start your own business. As a renter, you’re actually growing your landlord’s equity instead of your own.

If you’re ready to put your monthly payments to work for you and take steps toward those dreams and goals, purchasing a home may be the way to go, especially as rental prices continue to rise.

Bottom Line

Buying a home sooner rather than later could lead to substantial savings and long-term financial growth. Let’s connect to determine if homeownership is the right choice for you this year.

Why Owning a Home Is a Powerful Financial Decision

In today’s housing market, there are clear financial benefits to owning a home: increasing equity, the chance to build your net worth, and appreciating home values, just to name a few. If you’re a renter, it’s never too early to think about how homeownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater financial security and savings.

1. You Won’t Always Have a Monthly Housing Payment

Personal finance advisor Dave Ramsey explains:

“Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Bye. Not returning. But when you pay your mortgage, you work toward full ownership.”

As a homeowner, you can eventually eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs begin to work for you as forced savings in the form of equity. When you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.

2. Homeownership Is a Tax Break

One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same article states:

“You have tax advantages. Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”

Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.

3. Monthly Housing Costs Are Predictable

A third benefit is the fact that monthly costs start to become more predictable with homeownership, something that doesn’t happen if you’re renting. Ramsey also notes:

“Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year.”

With a mortgage, you can keep your monthly housing costs relatively steady and predictable. Your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a longer period of time. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.

Bottom Line

If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, let’s connect to determine if buying sooner rather than later is right for you.

Want to Build Wealth? Buy a Home This Year.

Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most of the country.

There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home.

Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:

“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”

What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:

The typical gain in the sale of the home (equity) has increased significantly over the last five years.

CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.

What does the future look like for homeowners when it comes to equity?

Here are the seven major home price appreciation forecasts for 2021:

The National Association of Realtors (NAR) just reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.

Bottom Line

As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting. When you do, you may find this is the perfect time to jump into homeownership.

Why Moving May Be Just the Boost You Need

As we look back over the past year, we’ve certainly lived through one of the most stressful periods in recent history. After spending so much more time at home throughout the health crisis, some are wondering if they should move to improve their mental health and well-being. This is no surprise since the U.S. Census Bureau reported an increase in the percentage of adults with symptoms of anxiety and depression in a recent Household Pulse Survey.

There’s logic behind the idea that making a move could improve someone’s quality of life. When people change their scenery, they often feel happier. Catherine Hartley, an Assistant Professor at New York University’s Department of Psychology and co-author of a study on how new experiences impact happiness, mentioned:

“Our results suggest that people feel happier when they have more variety in their daily routines—when they go to novel places and have a wider array of experiences.”

If you’re looking for a new experience, planning a move into a new home may be something you’ve started to consider more carefully. If so, you’re not alone. The 2020 Annual National Movers Study by United Van Lines shows:

“For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.”

So, if you’re thinking of moving this year to help boost your happiness factor, here are a few questions to ask yourself as you make your decision.

How’s the Weather?

Is the weather something that’s important to you? Does it have a tendency to impact your mood? The World Population Review shares:

“What states have the best weather? When evaluating each state for temperature, rain, and sun, some states stand out. Although climate and weather preferences are personal and subjective, some criteria are considered to make up the best weather, according to Current Results:

Comfortable temperatures from 63°F to 86°F for more than half of the year.Dry weather with no more than 60 inches of rain per year.Mostly clear skies with an average of sunshine for at least 60% of the year.”

“Better weather” can mean different things to different people – some prefer the heat, others cooler temperatures, and some want to experience all four seasons. Think about what makes you feel happiest if you’re looking for a new location.

Should I Choose the City, Suburbs, or Country?

With the COVID-19 pandemic, some people are deciding to move to lower-density areas. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), mentions:

“The third quarter Home Building Geography Index (HBGI) reveals that a suburban shift for consumer home buying preferences in the wake of the COVID-19 pandemic is accelerating as telecommuting is providing consumers more flexibility to live further out within large metros or even to relocate to more affordable, smaller metro areas.”

Can you work from home? Are you open to a longer commute in the future? If so, a move to the suburbs or even a quieter rural area may be a win for you. Or, if you’ve always dreamed of life in the city, now may be your chance to move into town.

Bottom Line

As we look beyond the trials of the pandemic, many are hoping for a new beginning, and that may mean moving. Let’s connect today to talk about your new goals and options in today’s market.

How to Make the Dream of Homeownership a Reality This Year

In 1963, Martin Luther King, Jr. inspired a powerful movement with his famous “I Have a Dream” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where we can grow and flourish.

If you’re dreaming of buying a home this year, start by connecting with a local real estate professional to understand what goes into the process. With a trusted advisor at your side, you can then begin to answer the questions below to set yourself up for homebuying success.

1. How Can I Better Understand the Process, and How Much Can I Afford?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.

Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. If your financial situation has changed recently, be sure to discuss that with your lender as well. Most agents have loan officers they trust and will provide referrals for you.

According to ConsumerReports.org:

“Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.”

2. How Much Do I Need for a Down Payment?

In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down.

If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says:

“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”

Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process.

3. Saving Takes Time: Practice Living on a Budget

As tempting as it is to pass the extra time you may be spending at home these days with a little retail therapy, putting that extra money toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score.

A survey of millennial spending shows, “68% reported that shelter in place orders helped them save for their down payment.” Danielle Hale, Chief Economist at realtor.com, also notes:

“If there is any silver lining to the current economic landscape, it’s that mortgage rates are hanging around record lows…Additionally, shelter-in-place orders helped many who were fortunate enough to keep their jobs save for a down payment — one of the largest hurdles of buying a home. The combination of low rates and the opportunity to save is enabling many millennials to move up their home buying timeline.”

While you don’t need to cut all of the extras out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.

Bottom Line

If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. To determine the steps you should take to start the process, let’s connect today.

4 Reasons People Are Buying Homes in 2021

According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.

Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year. 

1. Record-Low Mortgage Interest Rates

In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, advises:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

This sense of urgency is driving many to buy this year.

2. Working from Home

Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says: 

“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”

The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.

3. More Outdoor Space

Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.

According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.

4. Avoiding Renovations

It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”

Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.

Bottom Line

It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, let’s connect today to discuss your options.

Why Not to Wait Until Spring to Make a Move

The housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.

1. Mortgage Rates Are Historically Low

In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes:

“Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.”

Essentially, it’s less expensive to borrow money for a home loan today than it has been in years past. Although mortgage rates are expected to remain relatively low in 2021, even the slightest increase can make a big difference in your payments over the lifetime of a home loan. So, this is a huge opportunity to capitalize on right now before mortgage rates start to rise.

2. Equity Is Growing

According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear.

In addition, CoreLogic notes the average equity homeowners gained since last year is $17,000. That’s a tremendous amount of forced savings for homeowners, and an opportunity to use this increasing equity to make a move into a home that fits your changing needs this season.

3. Home Prices Are Appreciating

According to leading experts, home prices are forecasted to continue appreciating. Today, many experts are projecting more moderate home price growth than last year, but still moving in an upward direction through 2021.

Knowing home values are increasing while mortgage rates are so low should help you feel confident that buying a home before prices rise even higher is a strong long-term investment.

4. There Are Not Enough Homes for Sale

With today’s low inventory of homes on the market, which is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is high among buyers, so homes are selling quickly.

Making a move while so many buyers are looking for homes to purchase may mean your house rises to the top of the buyer pool. Selling your house before more listings come to the market in the traditionally busy spring market might be your best chance to shine.

Bottom Line

If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect to get you set up for homebuying success in the new year.

Turning a House into a Happy Home

We talk a lot about why it makes financial sense to buy a home, but more often than not, we’re drawn to the emotional reasons for homeownership.

No matter the living space, the feeling of a home means different things to different people. Whether it’s a certain scent or a favorite chair, the feel-good connections to our own homes are typically more important to us than the financial ones. Here are some of the reasons why.

1. Owning your home is an accomplishment worth celebrating

You’ve likely worked very hard to achieve this dream, and whether it’s your first home or your fifth, congratulations are in order for this milestone. You’ve earned it.

2. There’s no place like home

Owning your own home offers not only safety and security but also a comfortable place where you can simply relax and kick-back after a long day. Sometimes, that’s just what we need to feel recharged and truly content.

3. You can find more space to meet your needs

Whether you want more room in your home for your changing lifestyle (think: working from home, virtual school, or a personal gym), or you simply prefer to have a large backyard for socially-distant entertaining, you can invest in a location that truly works for your evolving needs.

4. You have control over renovations, updates, and your style

Looking to try one of those complicated wall treatments you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Maybe you want to finally adopt that fur-baby puppy or kitten you’ve been hoping for. You can do all of these things in your own home.

Bottom Line

Whether you’re a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that turn a house into a happy home.

The Holidays Aren’t Stopping Homebuyers This Year

Black Friday and Cyber Monday are behind us, yet finding the perfect holiday gifts for friends and family is certainly still top of mind for many right now. This year, there’s another type of buyer that’s very active this holiday season – the homebuyer.

Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index notes:

“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”

Here’s the breakdown of the latest activity by region of the country compared to this time last year:

• The Northeast increased by 65.5%

• The West increased by 64.7%

• The Midwest increased by 55.7%

• The South increased by 54.7%

Why is the traffic so active?

The health crisis definitely put homebuying plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.

One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.

Bottom Line

There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you’re thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now.

The Path to Homeownership

Some Highlights

• If you’re thinking of buying a home and not sure where to start, you’re not alone.

• Here’s a map with 10 simple steps to follow in the homebuying process.

• Let’s connect today to discuss the specific steps along the way in our local area.