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It’s no secret that most of the country is currently experiencing a strong seller’s market. Yet even in this competitive environment, almost 25% of all escrows fall through before closing. Home inspections, appraisal surprises, and loan approvals are just a few of the issues which can arise, causing the buyer to pull out of the deal.

An essential component of any listing strategy should be a good backup offer, meaning that another buyer is willing to step in and close if escrow falls through. As you consider a backup offer, here are 4 things you need to know:

1. A Backup Offer Is Legally Binding – A backup offer is a fully executed offer, just like the original, so make sure the terms are acceptable. Typically, the buyer will include a contingency in the event they find another home.
2. Multiple Backup Offers – In a strong seller’s market, it is not unusual to accept multiple backup offers. Always clarify the position of each backup offer and whether you will continue to accept backup offers.
3. Leverage – Backup offers provide leverage during the escrow period as well as security for the seller. Use backup offers to discourage unreasonable requests for repairs or concessions during escrow.
4. Earnest Money – Backup offers do require the buyer to submit earnest money, just like the primary offer. This stays in an escrow account. Often this is smaller than a typical deposit with the condition to increase the amount if the offer becomes the primary one.

Backup offers should be an important consideration in any home sale. Not only do they protect the seller if an escrow fails to close, but the buyer can also have another opportunity to close on a home they love.

A well-equipped home tool kit is not just for weekend warriors and do-it-yourself types. Hanging a picture, tightening a cabinet door, or assembling a Swedish-built cabinet are all moments when one might reach for a tool kit. If your toolbox consists of duct tape and a hammer, a quick, inexpensive trip to the local hardware store can save you lots of time and headache later when you need your tool kit.

Essential Components of the Home Tool Kit

• Hammer – The hammer is the most used tool in any home. Choose one that feels comfortable in your hand and is light enough that you can use easily.
• Screwdrivers – While fancy ratcheting screwdrivers are comfortable, the plain old inexpensive ones work just fine. Make sure you have at least one flat head and one Philips head on hand.
• Nails and Screws – Of course, you’ll need these to go with the first two items on the list. Since these are inexpensive, choose a few sizes to have on hand for various projects.
• Measuring Tape – Alongside the hammer, you’d be surprised how often you’ll use this tool.
• Drill – Drills are versatile tools and useful to hang pictures or tighten screws. Decide whether your preference is cordless or corded.
• Duct Tape – Yes, duct tape does have a role in a well-stocked tool kit.
• Utility Knife – This will not substitute for a saw but small cuts and simple adjustments can be performed easily with this small tool. A box cutter would also work well here.
• Protection – Safety goggles and work gloves offer essential protection from flying debris and hand or eye injuries.

Feel free to add other fun items you find during your stroll through the hardware store. You may never be ready to remodel your entire kitchen, but the right tools will provide you what you need to keep your home in great condition.

Over the past couple of months, the news of rising inflation is fueling
concern across the country. Currently, inflation is at a 40-year high. This is
impacting household budgets the most as families try to make ends meet
with less buying power. For potential home buyers, rising interest rates may
cause worry that you will not be able to afford the home you want.

While these are all valid concerns, for those who are still able to finance a
home, homeownership is one of the best hedges against inflation and may
be worth stretching your budget to do.

The biggest advantage of owning a home in an inflationary period is a
fixed-rate mortgage stabilizes your largest household expense. Most
people budget 25-45% of their monthly income for housing. As costs
continue to rise, rental rates will rise right along with them. These costs can
far outpace salaries and increase the burden on families.

The second advantage is that home values historically outperform other
assets in appreciation. Owning a home builds equity for the future that is
based on a tangible asset. Even if the home loses value short-term, some
studies show that over 7-years, homeowners should gain more equity than
other investments.

The bottom line is that if you’ve been thinking about buying a home this
year, it makes sense to act, even if interest rates are rising. This allows you
to stabilize your monthly housing expense while potentially building equity
for the future.

Many people live where power outages occur quite often. Some neighborhoods have more problems than others. This can be caused by storms or simply an unreliable power grid. If you experience regular power outages, you may be wondering if you need a backup generator. Here are some considerations for you to think about before you buy.

You May Need a Back-up Generator if……

· You store large amounts of frozen/refrigerated food – Do you have a storage freezer or regularly keep large amounts of food on hand?

· You have life-saving medical equipment on-site – Are you or a loved one reliant on medical devices that require power?

· You need electricity to stay warm in winter – Do you  rely on power to generate heat?

· You have essential equipment on site – Do you have systems that must run constantly to prevent damage? A good example is a sump pump that prevents flooding.

If you do need a generator, there are still options you must investigate.

How much power do you need and for how long? Generators need fuel and regular maintenance. They also are loud and emit fumes, so placement is
very important. You can also choose from a permanent whole house backup generator or a portable version.

Power outages can cause serious issues and a home backup generator is a great way to safeguard from loss.

Do you need a backup generator? Consider why you want one and then do some homework. Generators are an expensive investment but may be important for your family.

Our military veterans have given so much to this country. To make it easier for these special families to qualify for and purchase a home, Veteran Affairs has a unique loan offer reserved only for retired and active military.

The VA loan offers mortgage options unavailable to the general public.

• No Down Payment – While zero down loans disappeared in the real estate bubble of the last decade, VA loans allow our military to buy a house without the stress of trying to save the down payment.
• Easier to Qualify – Most loans require a credit score of 650 or higher. Qualifying for a VA loan only requires a FICO score of 620.
• No PMI – PMI (private mortgage insurance) is required for any loan where the loan-to-value falls below 80%.
• Limits on Fees – VA borrowers are protected by strict limits to fees and closing costs. Lenders financing a VA loan cannot charge more than 1% for loan costs whereas typical financing can run as high as 2.4–3%.
• Appraisal Assistance – At times homebuyers run into problems when the appraisal does come back high enough to purchase the home at the agreed-upon price. When this happens, the VA can help by diligently reviewing the report and comparable properties and then asking the lender to adjust the appraisal if it determines that the value is not accurate.

The VA loan is a special loan program offered only to our active and retired military. These families have sacrificed so much for their country, the VA loan might be the only way these families can buy a home of their own.

Any kind of construction project is loud and dirty. For homeowners starting
their project, they have the anticipation of the finished product to look
forward to. But what if the project isn’t your own but your neighbor’s? You
have all the hassle with none of the excitement of the result. Having
construction going on next door is never fun, but you can mitigate the
negative aspects by following a few tips.

Talk to Your Neighbor, then Talk to the Contractor

In a perfect world, your neighbor will come to you first, but this isn’t always
the case. At the first sign of construction, get in touch with the owners and
discuss the scope and timeframe of the project. Discuss any specific issues
or occasions you have planned that the project could impact, such as
family illness, new baby, or backyard celebration

Noise and Dust

Plan to be away as much as possible during the project. Keep doors and
windows closed to prevent particles from entering your home, that can
cause health issues. Check with your local building department to
understand the hours that a construction company can work and work with
your neighbor to hold them accountable.

Finally, remember that this will end. You may need to live next door to the
owner for years to come and maintaining a good relationship with your
neighbors is more important than a few weeks of hassle.