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Downsizing? What to Do with Your Stuff

Whether you call it downsizing or rightsizing, the bottom line is you’re moving
into a smaller space and have no idea what to do with all the stuff you’ve
collected over the years. Many people consider moving from a larger home to a
smaller home at some point in their lives. Often this move is made after the child-rearing years,
when homeowners no longer need the extra bedrooms or living space,
and want less home to worry about (or to clean!). The problem is that they
have accumulated items to fill the space that they aren’t ready to part with, yet all
their stuff won’t fit in a smaller home.

If you’re considering this type of downsizing, begin by sorting your possessions
into three piles: keep, donate, trash. After trashing, donating, and storing what
you can, here are some clever ways to store your stuff in the new, smaller space.

  • Dual-Purpose Furniture – Find furniture that offers hidden storage, such as
    a coffee table or ottoman with storage compartments for extra pillows,
    throw blankets, games, or books.
    Baskets and Cubes – There are a lot of great options for cube storage units
    that incorporate baskets to store extra items for easy access when needed.
    Digitize – This is the perfect time to put your important papers and pictures
    into a digital format. From treasured pictures to tax forms, there are
    companies who specialize in transferring your items for later access.
    Repurpose – Take a careful look at your furniture…and Pinterest. You’ll find
    great ways to use some of your favorite pieces in different and useful ways.
    Closets – Consider a closet consultation to make sure you maximize your
    closet space, not only in the bedrooms but also in your kitchen pantry and
    hall coat closet

Downsizing doesn’t mean you have to throw out everything you love. Take a hard
look at what matters and then use some of these tricks to store the items you
treasure without adding clutter to your new home.

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Consider Upgrading before You List

Most people have wandered through new home developments and wished their own home
looked as modern and chic. Model homes showcase the latest upgrades and decorating
trends; for home sellers these homes are their competition, and it can feel daunting to offer
an older floor plan and design.

While it might seem like a smart idea to simply offer a buyer credit and list, there are
downsides to this plan, and taking the time to update a bit on your own first could mean
thousands of dollars in your pocket.

Here are a few reasons why offering a credit might not be the best strategy:

  •   Buyer Impression – A dated home looks old and not all buyers can see the potential.
    Lower Offers – Offering a credit could be viewed as high seller motivation, resulting in
    lower offers.
    Value Differences – You and your buyer might disagree on the value of needed
    upgrades. For example, you might feel $7,500 is a fair cost for a new countertop
    whereas your buyers might expect considerably more; this can lead to more
    negotiations and lower sales price.
    Home Condition – A property that shows its age can prompt the buyer to worry about
    the overall condition.
    Loan Approval – Lenders are wary of buyer credits; in fact, upgrade credits are no
    longer possible. You might have a buyer unable to take advantage of the credit at all and
    you could lose the buyer.

Home design trends change quickly. If you’re ready to sell, it could be tempting just to list your
home in its current condition. Before you just add a credit to the listing, consider some simple
updating so your buyers can see the value of your home.

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Down Payments Explained

A down payment is the amount of cash a home buyer puts toward the price of a
new home. It accomplishes a few things; first it reduces the amount of money you
need to borrow and it reduces the risk the lender takes in loaning the money. By
reducing the risk, the borrower will typically get a better interest rate on the loan
and increase the amount of home they can buy.

How Large a Down Payment Do You Need?

The amount of down payment needed depends on the type of the loan, the
lender and the property price itself. While most of the 0% down home loans of
the last decade are gone, Veterans can still purchase a home loan with no down
payment. Other programs include FHA loans with as little as 3.5% down.
Conventional loans typically require a 20% down payment, but some allow as
little as 5%.

Is it Better to Make a Larger Down Payment?

In addition to the down payment, buying a home also requires cash for closing
costs and some reserve savings to guard against unexpected financial concerns.
One thing to remember though is that any financing with less than 20% down will
require private mortgage insurance – a monthly payment which protects the
lender in the event of default.

The best amount of down payment should be determined in consultation with
your lender and your tax or financial advisor, but the quick answer is “it depends.”
By working with a trusted lender, explore your options and you will make the best
decision for your needs.

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The Home Selling Process

Are you planning to sell your home? Regardless if this is your first time as a home
seller, or maybe you’ve sold many homes, understanding the selling process can
assure you that things are going smoothly. Successful transactions don’t just
happen; it takes experience and professionals to navigate from staging to closing.

Who Are The Experts?

Real Estate Agent – Before you start, do your homework and find an
experienced listing agent in your area.
Escrow Officer – Your escrow officer is a neutral 3rd party, they take the
terms agreed to by the parties and ensures they are fulfilled properly.

Timeline For Your Home Sale

  • Meeting With Your Agent – Your agent will tour your home and discuss
    your market value (including a comparative market analysis), timing and
    financial goals in order to create a custom plan for selling your home.
    Preparing Your Home For Sale – Typically even a dated home can be
    spruced up with small changes in furniture placement, fresh paint, new
    lighting and/or minor repairs.
    Listing Your House – Once your home is ready for buyers, you will list your
    home, and your agent will implement their marketing plan.
    Offers – Once you receive offers, you will meet with your agent to review
    them together and determine how to respond.
    Escrow Process For Sellers – The buyers will complete funding
    requirements, obtain an appraisal and home inspection. As the seller,
    you will also complete any conditions you’ve agreed to, such as repairs
    or termite work.
    Closing – Once all conditions have been completed, you will close the sale
    and receive the proceeds.

The sales process is a series of steps that you and your agent will take together.
Knowing what to expect, and when, can alleviate the uncertainty you might feel
as a seller.

 

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Four Reasons to Sell this Fall

Traditional lore says that the best time to list your home for sale is spring and if it
hasn’t sold by the end of summer, you’re out of luck. Along the same lines,
homeowners across the country are often advised not to list in the fall and wait
until after the holidays to list. The truth is that a great home will sell at any time
of year and in fact there are some very good reasons to list in the fall, while
everyone else is busy doing other activities.

4 Reasons to Sell this Fall

1. Less Competition – As mentioned above, most sellers list in spring, so as a
seller fall provides you less competition which increases the opportunity
for buyers to view your home.
2. Serious Buyers – Home buyers in fall often have a timeline to move before
the holidays. They tend to take the home search seriously and move to
write offers faster and avoid wasting time.
3. Curb Appeal – Fall is a beautiful time of year and homes always seem cozier
as the weather turns. Fall colors in the trees and the scent of baking entice
buyers to feel “at home” which encourages offers.
4. Closing is Easier – The pace of home sales slows during the fall; as such
lenders can move faster and the process tends to take less time.

The last and best reason to sell this fall is that it’s the right time for you and your
plans. Regardless of whether you are relocating, moving up or scaling down, if this
is the right time to sell, then this is the best time to sell.

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Should I Consider Selling My Short-Term Rental Property?

The travel industry has changed significantly over the past decade. With the popularity of vacation rentals advertised by such sites as Airbnb, VRBO, and Home Away, travelers have more options than ever for lodging during their vacation. Unfortunately, 2020 has seen a serious decline in travel due to the COVID-19 crisis and many owners of these short-term rental properties are wondering what to do.

If you have a short-term rental property, you might be wondering if this is the right time to sell. Here are a few considerations as you weigh your options:

Long-Term Goals – While travel is down significantly right now, this slump won’t last forever. If this property is part of your overall investment portfolio which makes sense for the long run, consider other strategies to keep the rental. If you have a mortgage, speak to your lender about payment options during this time.
Housing Inventory and Local Home Prices – Housing inventory is down about 20% year over-year according to the National Association of Realtors®. Lower inventory has also prevented home prices from falling in most areas.
Historically Lower Interest Rates – Interest rates have dropped significantly since the beginning of the year. It might be time to refinance the property. In addition, if you do decide to sell, buyers are better positioned to buy.

This is a confusing time for everyone. The robust business of short-term rentals has certainly been affected over the past few months and the travel industry will suffer this summer. If you own a short-term rental, consider all your options as you decide whether it’s the right time to sell your property.

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Your Starter Home vs. Your Forever Home

 

Buying a home is exciting. Most people have visualized their dream home—large,
inviting kitchen; multiple bedrooms for family and guests; perhaps a backyard
with built-in BBQ, pool, and fireplace. Yet this dream is often out of reach
financially for first-time homebuyers. These buyers are ready to find a starter
home and perhaps are wondering if saving for a forever home makes more
financial sense.

Before making this decision, it’s important to consult with a professional financial
advisor about your unique situation; more often than not, getting a starter home
makes the most sense.

Things to Look For in a Starter Home vs. a Forever Home

As we already mentioned, a starter home probably won’t have all the features
you dream about, so it’s important to understand the difference between “want”
features and “need” features. For instance, the number of bedrooms might be
more critical than the huge, eat-in kitchen. Finding a home near a park for the
kids might take precedence over the expansive view of the water.

Focus on affordability and find a home that suits not only your immediate needs
but offers the ability to grow in equity. Your starter home should be viewed as a
financial tool to build wealth and position you to move up to your forever home.
Building wealth through homeownership is a great way to ensure you’ll be able to
buy that dream home when you’re ready.

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Real Estate Home Inspections and Appraisals in the New Normal

Even during the COVID-19 outbreak, real estate transactions go on. Buyers and sellers still need to move, and the industry is looking for new ways to accommodate both the needs of the transaction and, of course, the safety of everyone.

Many traditional real estate activities can be performed virtually. While no one is suggesting that a buyer will be comfortable buying a home they have only seen during a Zoom visit, they can minimize the number of homes they physically visit by pre-screening these homes ahead of time through virtual tours.

There are a few vital pieces of the transaction that require in-person visits, however. Among these are home inspections and appraisals. Both of these professionals need access to the property to properly perform their duties, and it leaves some potential home sellers and buyers wondering if it’s even possible to conclude a real estate transaction right now.

While everyone should cautiously move forward according to their personal sense of comfort, there are a few things you can do to protect yourself, your family, and the professionals while they are in your home. Before setting the appointments, think through the parts of your home the inspector or appraiser will need to access and think through the process.

Contact the home inspector and appraiser and work out a plan together to keep everyone safe:
• Communicate with them about off-limit areas, and what parts of the home they can access.
• Have a notepad in which they can communicate what parts of the home they came in contact with, and offer hand sanitizer and wipes for them to use before and after touching parts of the home.
• Finally, leave the home during the appointments, and clean properly once you return home.

Life does move on – if you are trying to buy or sell a home during this challenging time, it might take extra effort. However, working with your real estate team, you can conclude a successful real estate transaction amid the COVID-19 outbreak.

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Keeping the Homeownership Dream Alive

Buying and owning your own home is no easy task, and there are moments on everyone’s journey when they feel like it’s impossible. However, there are plenty of resources available to help make your dream of becoming a homeowner a reality.

The first step you should take when you’re ready to consider buying a home is to check your credit score and/or start building your credit. Lenders want to see that you’ve been able to pay back borrowed money on time, and without missing payments or defaulting on the loan.

If you have a poor credit score, you’ll need to spend the next several months, or even years in some cases, improving it by paying off any debt you currently have and making sure to make all payments on time in the future. This is a great time to find a mortgage loan officer that you trust. They will periodically check in on your progress and make any suggestions to further improve your credit score.

Another way to keep your dream of homeownership alive is to start saving NOW, at whatever stage you’re at. Putting aside even a few dollars here and there will be a step toward that dream. When you’re ready to purchase your first home, you’ll need to make a down payment and you’ll be responsible for all the services and expenses required to finalize a mortgage at the time of closing. These typically cost between 2% to 5% of the total loan amount. So, get in the habit of putting some money aside from every paycheck to help fuel your dream of owning a home.

When the time comes for you to start looking at houses, tell your realtor your budget upfront. Contact your mortgage lender to get pre-approved for this amount. Remember to take into consideration your down payment and closing costs. This will make sure your realtor only shows you homes that you can afford, to avoid the stress of trying to figure out how to make payments on a home you love but can’t afford.

In the end, remember not to get discouraged. Even if you’re not able to become a homeowner right now, that doesn’t mean that you won’t in the future. Utilize your trusted loan officer and realtor to help you decide when you’re ready to buy a house and to help you stay within your desired price range.

Your dream of homeownership is closer to coming true than you might think!

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Is Your New Neighborhood Safe?

How to Research Your New Community Before You Buy

Finding the right home for you and your family involves more than the right number of bedrooms and a lovely front yard; the neighborhood in which it’s located can make a huge difference in the quality of your experience in the home. The most important consideration must be the safety of the community. Not only is it a critical component of a healthy lifestyle, but it can also have a drastic effect on resale values. Fortunately, there are some strategies and tools available to help you learn about the safety of your potential new home.

  • Talk to the Neighbors – The first step in researching your new location is to talk with the locals. Start with the neighbors next door if possible, but also spend time in the local shops and ask about the community.
  • Drive through the Neighborhood at Varying Times – One visit on a Saturday morning will never give you a sense of the neighborhood. Drive by on a Friday night and weekday afternoons to learn more about the community. Watch for children playing in the parks and older couples out for a walk.
  • Use Online Tools  – There are a variety of online tools available. Crime research sites such as CrimeReports, SpotCrime, and NeighborhoodScout offer crime statistics. The National Sex Offender Public Website is another good research tool. Each city will also have a published crime blotter report available to review.

The safety and security of your new community should be a top consideration as you search for your new home. Taking the time to research the area will ensure you make the best decision possible for you and your family